MDA reports first quarter 2013 results

RICHMOND, BC, May 2, 2013 /CNW/ - MacDonald, Dettwiler and Associates Ltd. 
("MDA" or the "Company") (TSX:MDA), a global communications and information 
company, today reported financial results for the quarter ended March 31, 2013. 
Operating earnings(1) this quarter were $41.8 million, or $1.30 per share, on 
consolidated revenues of $428.6 million. This is compared to operating 
earnings of $28.9 million ($0.91 per share) and consolidated revenues of 
$172.0 million for the first quarter of 2012. The results for this quarter 
included three months of activity from Space Systems/Loral ("SSL"), which the 
Company acquired on November 2, 2012. 
Order booking activity was strong, resulting in record order backlog of $3.0 
billion at March 31, 2013 (December 31, 2012 - $2.2 billion) with increases 
across all markets. Notably, the Company signed contracts with the Canadian 
Space Agency to build, launch and provide initial operations for the RADARSAT 
Constellation Mission and to support Canada's robotic elements on the 
International Space Station through to December 2015. As well, the Company 
signed a contract with a subsidiary of EchoStar Corporation to build Jupiter 
2/EchoStar XIX, a Ka-band satellite that will help meet the growing demand for 
the customer's high-speed satellite Internet service in North America. 
The Company's net earnings under IFRS for the first quarter of 2013 were 
impacted by certain large, non-operational expenses. As a result, net earnings 
this quarter were $2.2 million ($0.07 per share) compared to $33.2 million 
($1.04 per share) for the first quarter of 2012. 
On March 27, 2013, the Company closed its public offering of 4,145,750 common 
shares at a price of $69.40 per share for gross proceeds of $287.7 million. 
The offering included the exercise in full of the over-allotment option of 
540,750 common shares by the underwriters. Net proceeds have been used to 
reduce bank indebtedness, providing additional capacity to support future 
growth initiatives. 
Financial Highlights                                  
($ millions, except per common Three months ended   Three months ended
share amounts)                     March 31, 2013    March 31, 2012(2) 
                                                                   
Consolidated revenues                       428.6                172.0 
Operating earnings(1)                        41.8                 28.9 
Operating earnings per share                 1.30                 0.91
(1), basic and diluted 
Net earnings                                  2.2                 33.2 
Net earnings per share, basic                0.07                 1.04
and diluted 
                                                                   
Weighted average number of common shares                              
outstanding: 
(millions)                                                             
Basic and diluted                            32.1                 31.8 


                                                   

(1) See section "Non-IFRS Financial Measures" in this earnings release.

(2) Comparative prior period information has been restated for
    retrospective application of new amendments to IAS 19, Employee
    Benefits. The International Accounting Standards Board amended IAS
    19 for annual accounting periods beginning January 1, 2013, with
    retrospective application.

MDA's consolidated financial statements and management's discussion and 
analysis for the three months ended March 31, 2013 are available at: 
http://www.mdacorporation.com/corporate/investor/financial_reports.cfm

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 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 on Friday, May 3, 2013 
at 11:00 a.m. Pacific (2:00 p.m. Eastern) to explain the financial results of 
the Company and to answer questions.

To participate, dial toll-free 1-888-390-0605
In Toronto, dial 416-764-8609

The Conference Call will also be Webcast live at: 
http://www.mdacorporation.com/investor/events.cfm

Telephone replay will be available until May 17, 2013 at the following numbers:
Toll free, International, dial 1-888-390-0541
In Toronto, dial 416-764-8677
Password: 528442

Related Websites: www.mdacorporation.com

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.
                                                      

($ millions, except per common  Three months ended   Three months ended
share amounts)                      March 31, 2013       March 31, 2012
                                                                       

Operating earnings                            41.8                 28.9

Operating earnings per diluted                      
share                                         1.30                 0.91

Items affecting comparability:                                         

Business acquisition costs                   (1.9)                    -

Amortization of acquisition                         
related intangible assets                    (7.3)                    -

Write-off of bank facility fees              (3.1)                    -

Share-based compensation                    (30.5)                  3.3

Fair value adjustments on                           
equity forward contracts                         -                (0.9)

Foreign exchange timing                             
differences on certain project-
   related foreign exchange
forward contracts not subject
   to hedge accounting                         0.2                (0.2)

Foreign exchange gain (loss) on                     
translation of
  intercompany balances                      (0.4)                  3.4

Foreign exchange loss on                            
translation of foreign currency
   long-term debt and cash
balances                                     (3.5)                (1.3)

Tax on items affecting                              
comparability                                  6.9                  0.0

Net earnings                                   2.2                 33.2

Forward-Looking Statements

This earnings release and the associated conference call and webcast, which 
includes a business update, first 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. 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 
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 this release.

Wendy Keyzer MDA External Relations (604) 231-2743 wendy@mdacorporation.com

SOURCE: MacDonald, Dettwiler and Associates Ltd.

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CO: MacDonald, Dettwiler and Associates Ltd.
ST: British Columbia
NI: ARO SOF ERN 

-0- May/02/2013 21:30 GMT


 
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