Press Release Details

  • NYSE: MAXR
  • TSX: MAXR
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MDA reports second quarter 2013 results

July 31, 2013

Richmond, BC - MacDonald, Dettwiler and Associates Ltd. ("MDA" or the "Company") (TSX: MDA), a global communications and information company, today reported financial results for the quarter ended June 30, 2013.

Consolidated revenues this quarter were $450.4 million, resulting in operating earnings1 of $43.3 million ($1.20 per share). This is compared to consolidated revenues of $164.0 million and operating earnings of $28.6 million ($0.90 per share) for the second quarter of last year. Net earnings under IFRS for the second quarter of 2013 were $31.1 million compared to a net loss of $1.3 million for the same period of last year. The results for the current year period include the activities of SSL, which the Company acquired on November 2, 2012.

Funded order backlog at June 30, 2013 was $3.0 billion (March 31, 2013 - $3.0 billion; December 31, 2012 - $2.2 billion). Since April 1, 2013, the Company has booked four contracts to provide communications satellites. Two of these contracts were included in order backlog at June 30, 2013.

The Company has declared a semi-annual dividend of $0.65 per common share payable on September 30, 2013 to shareholders of record at the close of business on September 13, 2013.

Financial Highlights


($ millions, except per common share amounts)

Three months ended
June 30,

Six months ended
June 30,

2013

2012 2

2013

2012 2


Consolidated revenues

450.4

164.0

879.0

336.0

Operating earnings1

43.3

28.6

85.1

57.5

Operating earnings per share1

1.20

0.90

2.50

1.81

Net earnings (loss)

31.1

(1.3)

33.4

31.8

Net earnings (loss) per share, basic and diluted

0.86

(0.04)

0.98

1.00


Weighted average number of common shares outstanding:

(millions)

Basic and diluted3

36.0

31.8

34.1

31.8



1 See section "Non-IFRS Financial Measures" in this earnings release.
2 Comparative prior period information has been restated for retrospective application of amendments to IAS 19, Employee Benefits. The International Accounting Standards Board amended IAS 19 for annual accounting periods beginning January 1, 2013, with retrospective application.
3 On March 27, 2013, the Company closed a public offering of 4,145,750 common shares at a price of $69.40 per share for gross proceeds of $287.7 million.



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

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 offices located 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 today, July 31, 2013 at 2:30 p.m. Pacific (5:30 p.m. Eastern) to explain the financial results of the Company and to answer questions.

To participate, dial toll free 1-888-390-0546
In Toronto, dial 416-764-8688

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

Telephone replay will be available from July 31, 2013 5:30 p.m. (PDT), 8:30 p.m. (EDT) to August 14, 2013 11:59 p.m. (PDT), August 15, 2013 2:59 a.m. (EDT) at the following numbers:

Toll Free: 1-888-390-0541
Toronto: 416-764-8677
Password: 030395

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 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
June 30,

Six months ended
June 30,

2013

2012

2013

2012


Operating earnings

43.3

28.6

85.1

57.5

Operating earnings per share

1.20

0.90

2.50

1.81

Items affecting comparability:

Amortization of acquisition related intangible assets

(7.4)

-

(14.7)

-

Business acquisition costs

-

(1.9)

(1.9)

(1.9)

Write-off of bank facility fees

-

-

(3.1)

-

Share-based compensation

(6.3)

(31.9)

(36.8)

(28.7)

Fair value adjustments on equity forward contracts

-

6.0

-

5.1

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

1.9

0.0

2.2

(0.3)

Foreign exchange loss on translation of
intercompany balances

(1.2)

(4.1)

(1.5)

(0.7)

Foreign exchange loss on translation of foreign currency long-term debt and cash balances

(0.4)

0.0

(3.9)

(1.2)

Tax on items affecting comparability

1.2

2.0

8.0

2.0


Net earnings (loss)

31.1

(1.3)

33.4

31.8




Forward-Looking Statements






www.sedar.comwww.mdacorporation.com





Wendy Keyzer


wendy@mdacorporation.com


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