MDA reports third quarter 2010 results
RICHMOND, BC, Oct. 27 /CNW/ - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today reported financial results for the third quarter ended September 30, 2010. Operating earnings(1) per share were $0.87, up 28% compared to $0.68 for the third quarter of last year as the Company's diversified businesses continued to deliver solid results. GAAP earnings per share were up 33% to $0.93 compared to $0.70 for the same period a year ago.
Financial Highlights ------------------------------------------------------------------------- Q3-2010 Q3-2009 YTD-2010 YTD-2009 ------------------------------------------------------------------------- ($ thousands, except per common share amounts) Consolidated revenues 263,086 245,600 767,319 763,364 Operating earnings 35,626 27,822 102,713 80,168 Operating earnings per common share, basic 0.87 0.69 2.51 1.98 Operating earnings per common share, diluted 0.87 0.68 2.51 1.97 Net earnings 38,318 28,509 94,893 78,217 Net earnings per common share, basic 0.94 0.70 2.32 1.93 Net earnings per common share, diluted 0.93 0.70 2.31 1.93 Weighted average number of common shares outstanding: (thousands) Basic 40,979 40,492 40,852 40,454 Diluted 41,064 40,697 41,001 40,605 Average exchange rates: 1 US dollar to Canadian dollar 1.039 1.097 1.036 1.170 1 British pound to Canadian dollar 1.612 1.800 1.590 1.798 ------------------------------------------------------------------------- -------------------------------------------------------------------------
Revenues from Information Systems increased to $142 million compared to $112 million for the third quarter of last year. Information Products revenues were $121 million, consistent with adjusted revenues(1) for the prior year period before foreign exchange fluctuations.
Order backlog at September 30, 2010 was $1,193 million (June 30, 2010 - $928 million), with the new order intake driven by the communication satellite and UAV surveillance sectors.
The Company's cash balances at September 30, 2010 were $165 million after paying off the revolver loan during the quarter. Long-term debt at September 30, 2010 was $203 million, consisting of two term loans maturing in 2013 and 2017.
MDA's unaudited consolidated financial statements and management's discussion and analysis for the three and nine months ended September 30, 2010 are available at:
http://www.mdacorporation.com/corporate/investor/financial_reports.cfm
About 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 information solutions, ranging from complex operational systems, to tailored information services, to electronic information products.
The Company's common shares trade on the Toronto Stock Exchange under the symbolTSX:MDA.
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, October 27, 2010 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 1-888-231-8191 in Canada or the United States
International: 1-647-427-7450
The Conference Call will also be Webcast live and archived at:
http://www.mdacorporation.com/investor/events.cfm
Telephone replay will be available until November 3, 2010 at the following numbers:
Toll free: 1-800-642-1687
Toronto: 1-416-849-0833
Pass Code: 94742634
Related Websites:
Non-GAAP Financial Measures
This earnings release includes certain non-GAAP financial measures. The Company uses non-GAAP financial measures as supplemental indicators of its operating performance and to assist readers in comparing operating results from period to period. These measures do not have any standardized meanings prescribed by Canadian GAAP and therefore may not be comparable to similar measures presented by other companies. Readers are cautioned not to view these non-GAAP financial measures as alternatives to financial measures calculated in accordance with GAAP. The non-GAAP financial measures are defined and reconciled to the most directly comparable Canadian GAAP measures in the following tables.
Operating earnings
The Company refers to net earnings adjusted for specified items affecting comparability as operating earnings.
------------------------------------------------------------------------- Q3-2010 Q3-2009 YTD-2010 YTD-2009 ------------------------------------------------------------------------- ($ thousands) Operating earnings 35,626 27,822 102,713 80,168 Items affecting comparability: Stock-based compensation (8,432) (4,792) (13,805) (9,827) Fair value adjustments on equity forward contracts 3,223 5,696 3,681 10,914 Fair value adjustments on foreign exchange forward contracts tied to certain projects not subject to hedge accounting 3,300 - (3,500) - Foreign exchange gain on translation of intercompany balances 5,374 - 7,482 - Fair value adjustments on interest rate swap contracts not subject to hedge accounting 414 - - - Restructuring expense - - (2,884) (3,549) Tax on items affecting comparability (1,187) (217) 1,206 511 ------------------------------------------------------------------------- Net earnings 38,318 28,509 94,893 78,217 ------------------------------------------------------------------------- -------------------------------------------------------------------------
Adjusted Information Products revenues
To derive adjusted Information Products revenues for prior periods, the Company retroactively applies certain changes to revenue recognition which, for GAAP purposes, were applied prospectively.
------------------------------------------------------------------------- Q3-2010 Q3-2009 YTD-2010 YTD-2009 ------------------------------------------------------------------------- ($ thousands) Adjusted Information Products revenues 120,745 127,849 350,393 383,405 Retroactive application of net revenue recognition to BC OnLine revenues - - - 25,809 Retroactive application of net revenue recognition to certain contracts for valuation-related solutions in the U.K. - 6,215 670 22,915 ------------------------------------------------------------------------- Information Products revenues 120,745 134,064 351,063 432,129 ------------------------------------------------------------------------- -------------------------------------------------------------------------
Forward-Looking Statements
This earnings release and the associated conference call and webcast, which includes a business update, third quarter 2010 results and question and answer session, contain certain forward-looking statements and information, which reflect the current view of MacDonald, Dettwiler and Associates Ltd. ("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", "expect", "intend", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of such terms or variations of them or similar terminology. Any such forward-looking statements are based on MDA's current expectations, estimates, projections and assumptions made in light of its experience and its perception of historical trends. 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. The risks that could cause actual results to differ from current expectations include, but are not limited to, inherent risks in the Information Systems market and in the Information Products market, including general economic, regulatory and competitor changes; changes in government priorities, funding levels, contracts and regulations; susceptibility of customers in property transaction-related industries; failure of third parties and subcontractors for long-term construction contracts on which the Company is the prime contractor; failure to recruit required management and employees; and other 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 this release.
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(1) See section "Non-GAAP Financial Measures" in this earnings release.
%SEDAR: 00014148E
For further information: Wendy Keyzer, MDA External Relations, (604) 231-2743, [email protected]
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