MDA reports third quarter 2013 results

RICHMOND, BC, Nov. 4, 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 third quarter ended 
September 30, 2013. 
Operating earnings(1) 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 - $2.2 billion). Order booking activity remained 
strong as the Company signed two contracts to provide communications 
satellites during the quarter. 
 Financial Highlights 
                              Three months ended Nine months ended 
                                   September 30,     September 30,
($ millions, except per common
share amounts)                     2013      2012(2)    2013   2012(2) 
                                                                   
Consolidated revenues             463.3        171.4 1,342.3     507.4 
Operating earnings(1)              46.6         27.9   131.7      85.4 
Operating earnings per share(1)    1.29         0.88    3.79      2.68 
Net earnings                       46.5         41.0    79.9      72.8 
Net earnings per share, basic and  1.29         1.29    2.30      2.29
diluted 


                                                                      

Weighted average number of common                                     
shares outstanding:

(millions)                                                            

Basic and diluted(3)               36.0         31.8    34.7      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 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.

(3) On March 27, 2013, the Company closed a public offering of
    4,145,750 common shares at a price of $69.40 per share for gross
    proceeds of $287.7 million.

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: 
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 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 Toronto: 
416-764-8609

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

Telephone replay will be available from November 4, 20135:30 p.m. (PST), 8:30 
p.m. (EST) to November 18, 201311:59 p.m. (PST), November 19, 20132:59 a.m. 
(EST) at the following numbers:

Toll Free: 1-888-390-0541 Toronto: 416-764-8677
Password: 088195

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.
                                      Three months ended Nine months ended


                                    September 30,     September 30,
($ millions, except per common
share amounts)                       2013     2012(1)   2013    2012(1) 
                                                                    
Operating earnings                   46.6        27.9  131.7       85.4 
Operating earnings per share         1.29        0.88   3.79       2.68 
Items affecting comparability:                                          
Past service credits on pension
and other 
post-retirement plan amendments   40.1           -   40.1          - 
Foreign currency translation
adjustment reclassified 
to earnings on liquidation of
foreign operation                   (8.9)           -  (8.9)          - 
Amortization of acquisition         (7.9)           - (22.6)          -
related intangible assets 
Business acquisition costs              -       (2.7)  (1.9)      (4.6) 
Other acquisition related expenses  (3.0)           -  (3.0)          - 
Write-off of bank facility fees         -           -  (3.1)          - 
Share-based compensation           (29.1)        11.0 (65.9)     (17.7) 
Fair value adjustments on equity        -       (1.0)      -        4.1
forward contracts 
Foreign exchange gain (loss)          2.0         6.2  (1.2)        4.0 
Tax on items affecting                6.7       (0.4)   14.7        1.6
comparability 
Net earnings                         46.5        41.0   79.9       72.8 
(1) Comparative prior period information has been restated for 


    retrospective application of 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.

Forward-Looking Statements

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.





SOURCE  MacDonald, Dettwiler and Associates Ltd. 
Wendy Keyzer MDA External Relations (604) 231-2743 wendy@mdacorporation.com 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2013/04/c9672.html 
CO: MacDonald, Dettwiler and Associates Ltd.
ST: British Columbia
NI: ARO SOF ERN CONF  
-0- Nov/04/2013 21:30 GMT
 
 
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