Richmond, B.C. - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today released financial results for the first quarter 2005.
MDA performed well in the first quarter.
Information Products performance in the U.S. property insurance sector was excellent and partially balanced the continued softness in other Products sectors. MDA continued to push forward and invest in the exciting Home Information Pack business opportunity in England and Wales.
Information Systems performance was strong as programs booked in 2004 gathered momentum. The Company continued to make good progress in positioning itself to access large ongoing revenue streams through strategic activities in the U.S. space program. One of the Company's key solutions in this area was launched as part of a military mission.
Results from Operations
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MDA achieved consolidated revenues of $201.4 million in the first quarter of 2005, an increase of 25% compared to $160.7 million for the same period of prior year. Information Products revenues increased by 23% to $112.5 million and Information Systems revenues increased by 29% to $88.9 million. The improvement in revenues was primarily due to the continued growth of core business areas and inclusion of the results of Marshall & Swift, which was acquired by MDA in June 2004. Backlog at March 31, 2005 totalled $830.4 million.
Earnings before interest, income tax and amortization ("EBITDA") increased by 34% to $32.1 million compared to $24.0 million for the same period in 2004. The higher EBITDA reflect the contribution from Marshall & Swift and improved operating efficiencies, despite unfavourable foreign exchange fluctuation and incremental spending on new business development activities.
Net earnings increased by 33% to $14.7 million, or $0.37 per diluted common share, compared to net earnings of $11.1 million, or $0.28 per diluted common share, for the first quarter of 2004.
Net cash earnings per diluted common share were $0.48 for the first quarter of 2005 compared to $0.32 for the same period of prior year. MDA defines net cash earnings as net earnings adjusted for stock option expense, notional imputed interest expense, amortization of intangible assets and reduction in notional cash taxes resulting from incremental tax deductions arising from acquisitions. This non-GAAP financial measure is calculated on a consistent basis from period to period.
The results for the Company's U.S.-based self-sustaining operations were unfavourably impacted by the significant appreciation of the Canadian dollar relative to the U.S. dollar in the three-month period, year-over-year, which in turn reduced reported results. Excluding the impact of this foreign exchange fluctuation, consolidated revenues and net earnings per diluted common share would have increased by an additional $3.4 million and one and a half cents, respectively, for the first quarter of 2005.
The Company repaid $28.5 million of long-term debt during the quarter, primarily using cash generated from operations and cash on hand.
About MacDonald, Dettwiler and Associates Ltd. (MDA)
MDA provides advanced information solutions that capture and process vast amounts of data, produce essential information, and improve the decision making and operational performance of business and government organizations worldwide.
Focused on markets and customers with strong repeat business potential, MDA delivers a broad spectrum of earth and space based information solutions, ranging from complex operational systems, to tailored information services, to electronic information products.
MDA employs more than 2,500 people in locations across the United States, Europe, and Canada. The Company's common shares trade on the Toronto Stock Exchange under the symbol TSX:MDA. Further information on MDA is available at www.mdacorporation.com
This report contains forward-looking statements and information, which reflect the current view of MacDonald, Dettwiler and Associates Ltd. with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and MDA's actual results of operations could differ materially from historical results or current expectations. MDA assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein do not materialize.
MDA's First Quarter 2005 unaudited Consolidated Financials are available at:
Investor/Analyst Conference Call Today
MDA President and CEO Daniel Friedmann and Executive Vice President and CFO Anil Wirasekara will be available on a Conference Call today, May 3, 2005 at 1:30PM Pacific (4:30PM Eastern) to explain the financial results of the Company and to answer questions.
To participate, dial 1-800-387-6216 in Canada or the United States. In Toronto, dial 416-405-9328.
The Conference Call will also be Webcast live at: http://www.mdacorporation.com/investor/events.shtml