MDA reports full year and fourth quarter 2012 results

RICHMOND, BC, Feb. 27, 2013 /CNW/ - MacDonald, Dettwiler and Associates Ltd. 
("MDA" or the "Company") (TSX:MDA), a provider of essential information 
solutions, today reported financial results for the full year and fourth 
quarter ended December 31, 2012. 
Consolidated revenues for the full year 2012 increased to $880 million 
compared to $761 million for the year ended December 31, 2011. Revenues for 
the Communications segment were $387 million, up from $238 million for 2011. 
MDA completed the acquisition of Space Systems/Loral ("SSL") on November 2, 
2012 and the results of SSL are included in the Communications segment from 
the date of acquisition. Revenues for the Surveillance and Intelligence 
segment were $493 million compared to $523 million for 2011. 
Operating earnings for the full year 2012 increased to $127 million ($3.98 per 
share) compared to $117 million ($2.99 per share) for last year. Operating 
earnings is a non-IFRS financial measure that provides a more meaningful way 
to compare the Company's financial performance from period to period. 
Net earnings under IFRS in 2012 were impacted by certain large, 
non-operational items that affected comparability of financial results to 
prior year. These items included transaction costs related to the acquisition 
of SSL, amortization expense of acquisition related intangible assets and 
unrealized mark-to-market adjustments on share-based compensation awards. 
After giving effect to these adjustments, net earnings from continuing 
operations for the full year 2012 were $86 million ($2.71 per share) compared 
to $130 million ($3.31 per share) for 2011. 
With the acquisition of SSL, the Company ended the year with funded order 
backlog of $2.2 billion compared with $805 million at December 31, 2011. Order 
backlog at December 31, 2012 did not include the contract signed with the 
Canadian Space Agency in January 2013 and valued at $706 million to build, 
launch and provide initial operations for the RADARSAT Constellation Mission. 
The Company has declared a semi-annual dividend of $0.65 per common share, 
payable on March 28, 2013 to common shareholders of record at the close of 
business on March 15, 2013. 
Financial Highlights                                                    
                         Three months ended     Twelve months ended 
                               December 31,            December 31, 
($ millions, except per       2012         2011      2012          2011
common share amounts) 
Results from continuing
Communications revenues(1)   254.0         49.4     386.6         237.7 
Surveillance and
Intelligence revenues(1)     118.6        128.8     493.3         523.4 
Consolidated revenues        372.6        178.2     879.9         761.1 
Operating earnings(2)         40.6         31.3     126.8         117.2 
Operating earnings per share
(2), diluted                  1.27         0.97      3.98          2.99 
Net earnings                  12.6         29.2      86.3         129.6 
Net earnings per share,
diluted                       0.40         0.91      2.71          3.31 


Results from discontinued

Gain (loss) on sale of
discontinued operations,
    net of income taxes          -       (22.9)         -          30.1

Weighted average number of
common shares outstanding:                                             


Basic(3)                      31.9         32.2      31.8          39.1

Diluted(3)                    31.9         32.2      31.8          39.1

(1)    The Company re-evaluated its reportable segments in the fourth
       quarter of 2012. Prior period amounts have
       been reclassified to reflect the current presentation. You will
       find more information about the Company's
       reportable segments in its most recent consolidated financial
       statements and management's discussion and analysis.

(2)    See section "Non-IFRS Financial Measures" in this earnings

(3)    On October 4, 2011, the Company repurchased and cancelled
       9,433,962 of its common shares at a price of
       $53.00 per common share under a substantial issuer bid. The
       shares repurchased represented approximately
       22.9% of the common shares outstanding at October 4, 2011.

MDA's audited consolidated financial statements and management's discussion 
and analysis for the twelve months ended December 31, 2012 are available at:

About MDA

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 locations in the United States, Canada, and 

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 on February 28, 2013 at 
7:00 a.m. Pacific (10:00 a.m. Eastern) to explain the financial results of the 
Company and to answer questions.

To participate, dial toll-free 1-888-231-8191
In Toronto, dial 1-647-427-7450

The Conference Call will also be Webcast live at:

Telephone replay will be available until March 14, 2013 at the following 

Toll free, dial 1-855-859-2056
In Toronto, dial 1-416-849-0833
Pass Code: 72785756 

Related Websites:

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 from continuing 
operations 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.
                                 Three months ended Twelve months ended

                                   December 31,        December 31,
($ millions, except per common
share amounts)                     2012        2011   2012         2011 
Operating earnings                 40.6        31.3  126.8        117.2 
Operating earnings per diluted     1.27        0.97   3.98         2.99
Items affecting comparability:                                          
Business acquisition costs       (10.8)           - (15.5)            - 
Amortization of acquisition       (4.8)           -  (4.8)            -
related intangible assets 
Loss on disposal of assets        (1.7)           -  (1.7)            - 
Share-based compensation         (11.6)       (4.5) (29.3)          3.9 
Fair value adjustments on equity      -       (0.1)    4.1          2.7
forward contracts 
Foreign exchange timing
differences on certain 
project-related foreign
exchange forward contracts 
not subject to hedge
accounting                        (1.1)       (1.2)    1.4          0.6 
Foreign exchange gain (loss) on
translation of 
intercompany balances          (0.7)         4.4    3.5          0.7 
Foreign exchange gain (loss) on
conversion and 
translation of foreign cash
and long-term 
debt balances                    2.1       (1.5)  (0.5)          4.0 
Tax on items affecting              0.6         0.8    2.3          0.5
Net earnings from continuing       12.6        29.2   86.3        129.6
Forward-Looking Statements 
This earnings release and the associated conference call and webcast, which 
includes a business update, full year and fourth 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. 
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 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 
The risks specific to the operation of MDA's wholly-owned subsidiary Space 
Systems/Loral, LLC ("SSL") that could cause actual results to differ 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 
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, or 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. 
Wendy Keyzer MDA External Relations (604) 231-2743 
SOURCE: MacDonald, Dettwiler and Associates Ltd. 
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CO: MacDonald, Dettwiler and Associates Ltd.
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-0- Feb/27/2013 22:30 GMT
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