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MDA reports second quarter 2012 results
Jul 26, 2012 (04:07 PM EDT)
RICHMOND, BC, July 26, 2012 /CNW/ - MacDonald, Dettwiler and Associates Ltd. (TSX:MDA), a provider of essential information solutions, today reported financial results for the quarter ended June 30, 2012.
For continuing operations, second quarter operating earnings1 were $29 million ($0.91 per share) on revenues of $164 million. This is compared to operating earnings of $29 million ($0.70 per share) and revenues of $195 million for the second quarter of last year. Revenues in 2012 included lower volume of pass-through items.
Net earnings under IFRS for the second quarter were impacted by large, unrealized mark-to-market adjustments, primarily due to the effect of a sharp rise in the Company's share price at quarter-end on the revaluation of share-based compensation awards. Furthermore, a large portion of these non-cash fair value adjustments included in share-based compensation expense was non-deductible for income tax purposes, which significantly reduced the amount of related income tax recovery. After giving effect to these accounting adjustments, the Company reported a net loss under IFRS of $1.0 million, or ($0.03) per share, for the second quarter of 2012.
On June 26, 2012, the Company signed a definitive agreement to acquire 100% of Space Systems/Loral, Inc., the leading global provider of commercial communications satellites. The acquisition, subject to regulatory approvals, will transform MDA into a leading global communications and information company and provide MDA with critical mass in the U.S. market.
Funded backlog at June 30, 2012 was $656 million (March 31, 2012 - $765 million). Backlog at June 30, 2012 does not include the recently announced contracts valued at over $125 million to provide communications payload solutions.
MDA's unaudited consolidated financial statements and management's
discussion and analysis for the three and six months ended June 30,
2012 are available at:
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 symbol TSX: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, July 26, 2012 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
The Conference Call will also be Webcast live at:
Telephone replay will be available until August 9, 2012 at the following numbers:
Toll free, International, dial 1-855-859-2056
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 share-based compensation, fair value adjustments on financial instruments not subject to hedge accounting, write-downs and other gains or losses. Operating earnings per share is calculated using diluted weighted average shares outstanding. The Company uses operating earnings and operating earnings per share as a more meaningful way to compare financial results from one period to another.
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, second quarter 2012 results, and question and answer session, 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. Any such forward-looking statements are based on MDA's current expectations, estimates, projections and assumptions made in light of its experience and perception of historical trends. Forward-looking statements are subject to risks and uncertainties, many of which are beyond MDA's control and the effects of which can be difficult to predict. MDA's actual results of operations could differ materially from historical results or current expectations.
With regard to MDA's proposed acquisition of Space Systems/Loral, Inc. (SS/L) and related benefits, the risks include, but are not limited to: inability to complete the acquisition in the timeframe anticipated or at all; inability to obtain governmental approvals of the transaction or satisfy other conditions to the transaction on the proposed terms and timeframe; and the degree of competition in the geographic and business areas in which SS/L operates.
Other risks that could cause actual results to differ from current expectations include, but are not limited to: changes in government priorities, funding levels, contracts and regulations; failure of third parties and 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 software and other products and resulting loss of revenue and loss of 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; 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; 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; wrongful call on letters of credit and performance bonds; and insufficient insurance against material claims or losses.
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 this release.
SOURCE MacDonald, Dettwiler and Associates Ltd.