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  • TSX: MAXR
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MDA reports full year and fourth quarter 2012 results

February 27, 2013

Richmond, BC - MacDonald, Dettwiler and Associates Ltd. ("MDA" or the "Company") (TSX: MDA), a provider of essential information solutions, today reported financial results for the full year and fourth quarter ended December 31, 2012.

Consolidated revenues for the full year 2012 increased to $880 million compared to $761 million for the year ended December 31, 2011. Revenues for the Communications segment were $387 million, up from $238 million for 2011. MDA completed the acquisition of Space Systems/Loral (“SSL”) on November 2, 2012 and the results of SSL are included in the Communications segment from the date of acquisition. Revenues for the Surveillance and Intelligence segment were $493 million compared to $523 million for 2011.

Operating earnings for the full year 2012 increased to $127 million ($3.98 per share) compared to $117 million ($2.99 per share) for last year. Operating earnings is a non-IFRS financial measure that provides a more meaningful way to compare the Company’s financial performance from period to period.

Net earnings under IFRS in 2012 were impacted by certain large, non-operational items that affected comparability of financial results to prior year. These items included transaction costs related to the acquisition of SSL, amortization expense of acquisition related intangible assets and unrealized mark-to-market adjustments on share-based compensation awards. After giving effect to these adjustments, net earnings from continuing operations for the full year 2012 were $86 million ($2.71 per share) compared to $130 million ($3.31 per share) for 2011.

With the acquisition of SSL, the Company ended the year with funded order backlog of $2.2 billion compared with $805 million at December 31, 2011. Order backlog at December 31, 2012 did not include the contract signed with the Canadian Space Agency in January 2013 and valued at $706 million to build, launch and provide initial operations for the RADARSAT Constellation Mission.

The Company has declared a semi-annual dividend of $0.65 per common share, payable on March 28, 2013 to common shareholders of record at the close of business on March 15, 2013.

Financial Highlights


($ millions, except per common share amounts)

Three months ended
December 31,

Twelve months ended
December 31,

2012

2011

2012

2011


Results from continuing operations

Communications revenues1

254.0

49.4

386.6

237.7

Surveillance and Intelligence revenues1

118.6

128.8

493.3

523.4


Consolidated revenues

372.6

178.2

879.9

761.1

Operating earnings2

40.6

31.3

126.8

117.2

Operating earnings per share2, diluted

1.27

0.97

3.98

2.99

Net earnings

12.6

29.2

86.3

129.6

Net earnings per share, diluted

0.40

0.91

2.71

3.31


Results from discontinued operations

Gain (loss) on sale of discontinued operations,
      net of income taxes

-

(22.9)

-

30.1


Weighted average number of common shares outstanding:

(millions)

Basic3

31.9

32.2

31.8

39.1

Diluted3

31.9

32.2

31.8

39.1


1 The Company re-evaluated its reportable segments in the fourth quarter of 2012. Prior period amounts have been reclassified to reflect the current presentation. You will find more information about the Company’s reportable segments in its most recent consolidated financial statements and management’s discussion and analysis.
2 See section “Non-IFRS Financial Measures” in this earnings release.
3 On October 4, 2011, the Company repurchased and cancelled 9,433,962 of its common shares at a price of $53.00 per common share under a substantial issuer bid. The shares repurchased represented approximately 22.9% of the common shares outstanding at October 4, 2011.




http://www.mdacorporation.com/corporate/investor/financial-highlights

About MDA

MDA is a global communications and information company providing operational solutions to commercial and government organizations worldwide.

MDA’s business is focused on markets and customers with strong repeat business potential. In addition, the Company conducts a significant amount of advanced technology development.

MDA’s well-established global customer base is served by more than 4,500 employees operating from 11 locations in the United States, Canada, and internationally.

The Company's common shares trade under the symbol TSX:MDA.

Investor/Analyst Conference Call

MDA President and CEO Daniel Friedmann and Executive Vice President and CFO Anil Wirasekara will be available on a Conference Call on February 28, 2013 at 7:00 a.m. Pacific (10:00 a.m. Eastern) to explain the financial results of the Company and to answer questions.

To participate, dial toll-free 1-888-231-8191
In Toronto, dial 1-647-427-7450

The Conference Call will also be Webcast live at:
http://www.mdacorporation.com/corporate/investor/events

Telephone replay will be available until March 14, 2013 at the following numbers:

Toll free, dial 1-855-859-2056
In Toronto, dial 1-416-849-0833
Pass Code: 72785756

Related Websites:
www.mdacorporation.com

Non-IFRS Financial Measures

In addition to results reported in accordance with IFRS, the Company discloses operating earnings and operating earnings per share as supplemental indicators of its financial performance.

The Company defines operating earnings as net earnings from continuing operations excluding the after-tax effects of specified items affecting comparability, including, where applicable, non-operational income and expenses, share-based compensation, fair value adjustments on financial instruments not subject to hedge accounting, and other gains or losses. The use of the term “non-operational income and expenses” is defined by the Company as those that do not impact operating decisions taken by the Company’s management and is based upon the way the Company’s management evaluates the performance of the Company’s business for use in the Company’s internal management reports. Operating earnings per share is calculated using diluted weighted average shares outstanding and does not represent actual earnings per share attributable to shareholders. The Company believes that the disclosure of operating earnings and operating earnings per share allows investors to evaluate the operational and financial performance of the Company’s ongoing business using the same evaluation measures that its management uses, and is therefore a useful indicator of the Company’s performance or expected performance of recurring operations.

Operating earnings and operating earnings per share do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. The Company cautions readers to consider these non-IFRS financial measures in addition to, and not as an alternative for, measures calculated in accordance with IFRS.


($ millions, except per common share amounts)

Three months ended
December 31,

Twelve months ended
December 31,

2012

2011

2012

2011


Operating earnings

40.6

31.3

126.8

117.2

Operating earnings per diluted share

1.27

0.97

3.98

2.99

Items affecting comparability:

Business acquisition costs

(10.8)

-

(15.5)

-

Amortization of acquisition related intangible assets

(4.8)

-

(4.8)

-

Loss on disposal of assets

(1.7)

-

(1.7)

-

Share-based compensation

(11.6)

(4.5)

(29.3)

3.9

Fair value adjustments on equity forward contracts

-

(0.1)

4.1

2.7

Foreign exchange timing differences on certain
project-related foreign exchange forward contracts
not subject to hedge accounting

(1.1)

(1.2)

1.4

0.6

Foreign exchange gain (loss) on translation of
intercompany balances

(0.7)

4.4

3.5

0.7

Foreign exchange gain (loss) on conversion and
translation of foreign cash and long-term
debt balances

2.1

(1.5)

(0.5)

4.0

Tax on items affecting comparability

0.6

0.8

2.3

0.5


Net earnings from continuing operations

12.6

29.2

86.3

129.6




Forward-Looking Statements






www.sedar.comwww.mdacorporation.com





MDA External Relations

info@mda.ca


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