Return to News Index | Open this page in new window for printing


For immediate release: July 28, 2005

MDA Reports Second Quarter 2005 Results

Richmond, B.C. - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA) today reported earnings of $16.4 million, or $0.41 per share, for the second quarter of 2005. The U.S. property insurance sector of Information Products continued to perform well. Revenues were also up from last quarter in British Columbia, Scotland, England and Wales. In addition, MDA completed its first phase of development for the Home Information Pack business opportunity in England and Wales. A similar business opportunity, referred to as the Property Information Pack, is expected to be introduced in Scotland. The Company also entered into a memorandum of understanding to set up a joint venture with a leading mortgage provider in Germany to enter the German property valuation market. Information Systems also attained solid revenues for the quarter, as the Company worked through its substantial contract backlog. The Company continued to make good progress in the defence and civilian surveillance and intelligence markets in the U.S. In addition, the recent 2005 Canadian federal budget makes it possible for the Canadian Space Agency to proceed with the first phase $200 million development of the next generation of advanced radar remote sensing missions. Results from Operations


Three months ended
June 30,
Six months ended
June 30,
2005
2004
2005
2004

($ thousands, except per common share amounts)
Consolidated revenues
217,245
191,963
418,613
352,653
EBITDA
35,281
28,030
67,411
52,064
Net earnings
16,419
13,441
31,158
24,548
Net earnings per diluted share
0.41
0.34
0.78
0.62
Net cash earnings (1)
20,706
15,654
39,802
28,020
Net cash earnings per diluted share (1)
0.51
0.40
0.99
0.71

(1) MDA defines net cash earnings as net earnings adjusted for stock option expense, notional imputed interest expense, amortization of intangible assets and reduction in cash taxes resulting from incremental tax deductions arising from acquisitions. This non-GAAP financial measure is calculated on a consistent basis period to period. Consolidated revenues in the second quarter amounted to $217.2 million, increasing 13% compared to the same period a year ago. Information Products revenues were $124.5 million and accounted for 57% of consolidated revenues. Information Systems revenues were $92.8 million. Firm and funded backlog at June 30, 2005 totalled $783 million. Net earnings for the second quarter increased by 22% to $16.4 million, or $0.41 per diluted common share, compared to $13.4 million, or $0.34 per diluted common share for the same period last year. The increase reflects higher contribution from both reporting units. Net cash earnings per diluted common share increased by 28% to $0.51, from $0.40 for the second quarter of 2004. The reported results were unfavourably impacted by the appreciation of the Canadian dollar relative to both the U.S. dollar and the pound sterling when comparing second quarter 2005 over second quarter 2004. Reported consolidated revenues would have increased by an additional $7.5 million and net earnings per diluted common share would have increased by an additional two cents if results were translated at second quarter 2004 exchange rates. On a year-to-date basis, consolidated revenues increased by 19% to $418.6 million. Information Products revenues increased by 15% to $236.9 million and Information Systems revenues increased by 24% to $181.7 million. Net earnings for the six months ended June 30, 2005 increased by 27% to $31.2 million, or $0.78 per diluted common share, compared to prior year's amount of $24.5 million, or $0.62 per diluted common share. Net cash earnings per diluted common share increased by 39% to $0.99 from $0.71 for the same prior year period. During the quarter, the Company repaid $43 million of long-term debt (six months ended June 30, 2005 - $71 million) using cash generated from operations. Since the acquisition of Marshall & Swift/Boeckh twelve months ago, the Company has reduced its long-term debt by $144 million.

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 Second Quarter 2005 unaudited Consolidated Financials are available at: http://www.mdacorporation.com/corporate/investor/financial-reports

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, July 28, 2005 at 1:30PM Pacific (4:30PM Eastern) to explain the financial results of the Company and to answer questions. To participate, dial 1-866-898-9626 in Canada or the United States. In Toronto, dial 416-340-2216. The Conference Call will also be Webcast live at: http://www.mdacorporation.com/corporate/investor/events



For more information, please contact:

Wendy Keyzer
MDA External Relations
Telephone: 604-231-2743
E-mail: wendy@mdacorporation.com


Return to News Index | Open this page in new window for printing