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 third quarter ended September 30, 2013.
Operating earnings¹ this quarter were $46.6 million, or $1.29 per share, on consolidated revenues of $463.3 million. This is compared to operating earnings of $27.9 million, or $0.88 per share, and consolidated revenues of $171.4 million for the third quarter of 2012. Net earnings under IFRS for the third quarter of 2013 were $46.5 million compared to $41.0 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.
Order backlog at September 30, 2013 was $3.1 billion (June 30, 2013 - $3.0 billion; December 31, 2012 - $2.2 billion). Order booking activity remained strong as the Company signed two contracts to provide communications satellites during the quarter.
MDA’s condensed consolidated financial statements and management’s discussion and analysis for the three and nine months ended September 30, 2013 are available at:
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, November 4, 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 US/Canada: 1-888-390-0605
The Conference Call will also be Webcast live at:
Telephone replay will be available from November 4, 2013 5:30 p.m. (PST), 8:30 p.m. (EST) to November 18, 2013 11:59 p.m. (PST), November 19, 2013 2:59 a.m. (EST) at the following numbers:
Toll Free: 1-888-390-0541
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.
This earnings release and the associated conference call and webcast, which includes a business update, third quarter 2013 results, and question and answer session, may contain certain forward-looking statements and information, which reflect the current view of MacDonald, Dettwiler and Associates Ltd. (the “Company” or “MDA”) with respect to future events and financial performance. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "would", "could", "should", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of such terms or variations of them or similar terminology. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and represent management’s best judgment based on facts and assumptions that management considers reasonable.
Any such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from current expectations. MDA cautions readers that should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. The risks that could cause actual results to differ materially from current expectations include, but are not limited to: changes in government policies, priorities, funding levels, contracts or regulations; failure of third party subcontractors to complete contracts for which the Company is the prime contractor; risks of performance on firm fixed price construction contracts; changes in estimates of total revenues and costs on contracts; potential for product liability or the occurrence of defects in products or systems and resulting loss of revenue and harm to the Company’s reputation; quality issues and failure of systems to meet performance requirements; failure of the Company to manage its acquisitions and breaches of contracts and indemnities and related risks on divestitures; partial or complete satellite failure; dependence on electronic systems and data and system security threats; detrimental reliance on third parties for data; dependence on key employees, potential for work stoppages and lack of oversight over a U.S. proxy board and management; failure to anticipate changes in technology, technical standards and offerings or comply with the requisite standards; failure to maintain technological advances and market positions; significant competition; potential infringement of the intellectual property rights of others through licensed software or otherwise; inadequate protection of the Company’s intellectual property rights; exposure to foreign currency fluctuations; changes in law and economic and political conditions; inability of suppliers or subcontractors to effect technology transfer; changes in customer security requirements and the resulting cancellation of contracts; failure to maintain business alliances; uncertainty in financing arrangements; failure of counterparties in financing arrangements and financial derivative contracts and potential breach of financial covenants in credit agreements and note purchase agreements; wrongful call on letters of credit and performance bonds; insufficient insurance against material claims or losses; and exposure to fines and/or legal sanctions under anti-corruption laws.
The risks specific to the operation of MDA’s wholly-owned subsidiary Space Systems/Loral, LLC (“SSL”) that could cause actual results to differ materially from current expectations include, but are not limited to: significant competition in the satellite manufacturing market; unanticipated changes in SSL’s end-user markets; inclusion of satellite performance incentives in many of SSL’s customer contracts; failure to maintain technological advances that meet its customers’ changing requirements; potential that SSL’s satellites will not be successfully developed or manufactured; potential for component failure or performance issues on SSL’s on-orbit satellites and resulting loss of revenue and harm to SSL’s reputation; SSL’s future operating results are dependent on the growth in the businesses of its customers and on its ability to sell to new customers; SSL’s contracts are subject to adjustments, cost overruns and termination; certain of SSL’s customers are highly leveraged and may not fulfill their contractual payment obligations with SSL; many of SSL’s costs are fixed and SSL may not be able to cut costs sufficiently to maintain profitability in the event of a downturn in its business; the availability of facility space and qualified personnel may affect SSL’s ability to perform its contracts as efficiently as planned; SSL’s ability to obtain certain satellite construction contracts depends, in part, on its ability to provide the customer with financing; reliance on key suppliers to provide certain component parts; changes in regulations, telecommunication standards and laws due to political and economic instability in the countries in which SSL conducts business; reliance on patents and potential infringement of third party patents by SSL; and changes in U.S. and foreign laws and regulations, including U.S. export control and economic sanction laws, governing SSL’s business.
You are referred to the risk factors described in MDA's most recent annual Management's Discussion and Analysis, Annual Information Form and other documents on file with the Canadian securities regulatory authorities, available on SEDAR, www.sedar.com or www.mdacorporation.com. The forward-looking statements and information contained in this earnings release and the associated conference call and webcast represent MDA’s views only as of today’s date. MDA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law, rule or regulation. You should not place undue reliance on forward-looking statements.
The Toronto Stock Exchange has neither approved nor disapproved the form or content of the earnings release or the associated conference call and webcast.