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


For immediate release: November 1, 2005

MDA Reports Third Quarter Results

Richmond, B.C. - MacDONALD, DETTWILER AND ASSOCIATES LTD. (TSX: MDA), a provider of essential information solutions, today reported financial results for the third quarter of 2005. Net earnings increased by 21% to $16.9 million, or $0.41 per diluted common share, on revenues of $209.5 million.

Information Products continued to grow and develop new solutions for its expanding customer base. Demand for the Company's U.S. and Canadian property information solutions remained strong while the property market in the U.K. continued to be soft. The Company further demonstrated its electronic HIP solution and has released a second enhanced version for actual precursor HIP production.

Information Systems performed well in the quarter and made significant progress on key programs, including completion of a major milestone for the civilian RapidEye mission and the definition study for a space-based information solution for the Canadian military. In addition, the Company continued to pursue new business opportunities and win strategic contracts.

Results from Operations

Three months ended
September 30,
Nine months ended
September 30,
2005
2004
2005
2004

($ thousands, except per common share amounts)
Consolidated revenues
209,480
198,656
628,093
551,309
EBITDA
35,110
32,425
102,521
84,489
Net earnings
16,898
13,943
48,056
38,491
Net earnings per diluted share
0.41
0.35
1.19
0.98
Net cash earnings(1)
20,783
17,728
60,584
45,729
Net cash earnings per diluted share(1)
0.51
0.45
1.50
1.16

(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 for the third quarter were $209.5 million, an increase of $10.8 million compared to the same period a year ago. Information Products revenues increased to $123.9 million and Information Systems revenues increased to $85.6 million. Firm and funded backlog at September 30, 2005 totalled $753 million.

Net earnings for the third quarter increased to $16.9 million, or $0.41 per diluted common share, compared to $13.9 million, or $0.35 per diluted common share, for the same period of last year.

The reported results continued to be unfavourably impacted by the appreciation of the Canadian dollar against the U.S. dollar and the pound sterling in the third quarter of 2005 compared to the third quarter of last year. Reported consolidated revenues would have increased by an additional $9.1 million and net earnings per diluted common share would have increased by an additional three cents if results for the Company's self-sustaining foreign operations were translated at third quarter 2004 exchange rates.

On a year-to-date basis, consolidated revenues increased to $628 million. Information Products revenues increased to $361 million and Information Systems revenues increased to $267 million. Net earnings increased to $48.1 million, or $1.19 per diluted common share, compared to $38.5 million, or $0.98 per diluted common share, for the nine months ended September 30, 2004.

During the quarter, the Company repaid $42 million of long-term debt and for the nine months ended September 30, 2005, the Company repaid $113 million using cash generated from operations. Since the acquisition of Marshall & Swift/Boeckh in June 2004, the Company has reduced its long-term debt by $189 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, the United Kingdom, and Canada. The Company's common shares trade on the Toronto Stock Exchange under the symbol TSX:MDA.

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 Third Quarter 2005 unaudited Consolidated Financials are available at: http://www.mdacorporation.com/investor/financial_reports.shtml

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, November 1, 2005 at 1:30 p.m. Pacific (4:30 p.m. 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/investor/events.shtml

Related Websites:
www.mdacorporation.com



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