MDA reports first quarter 2014 results

RICHMOND, BC, May 1, 2014 /CNW/ - MacDonald, Dettwiler and Associates Ltd. 
("MDA" or the "Company") (TSX: MDA), a global communications and information 
company, today reported financial results for the first quarter ended March 
31, 2014. 
Consolidated revenues this quarter were $492.6 million, up from $428.6 million 
for the first quarter of 2013. Operating earnings(1) increased to $49.4 
million, or $1.37 per share(1), compared to $41.8 million, or $1.30 per share, 
for the first quarter of last year. Net earnings under IFRS for the first 
quarter of 2014 were $25.0 million ($0.69 per share) compared to $2.2 million 
($0.07 per share) for the same period a year ago. 
The Company had total funded order backlog of $2.8 billion at March 31, 2014 
(December 31, 2013 - $3.0 billion). Subsequent to March 31, 2014, the Company 
booked contracts with: 


        --  SKY Perfect JSAT Corporation to provide the JCSAT-15 and
            JCSAT-16 communication satellites;
        --  PT. Bank Rakyat Indonesia (Persero) Tbk. to provide the BRIsat
            communication satellite; and
        --  EchoStar Corporation to provide the EchoStar XXIII
            communication satellite.

Financial Highlights
     
    ($ millions, except per common    Three months ended Three months ended
    share amounts)                        March 31, 2014     March 31, 2013
                                                                           
    Consolidated revenues                          492.6              428.6
    Operating earnings1                             49.4               41.8
    Operating earnings per share1                   1.37               1.30
    Net earnings                                    25.0                2.2
    Net earnings per share, basic and               0.69               0.07
    diluted
                                                                           
    Weighted average number of common shares                               
    outstanding:
    (millions)                                                             
    Basic and diluted2                              36.1              32.1 

(1)  See section "Non-IFRS Financial Measures" in this earnings release.
(2) On March 27, 2013, the Company completed 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 months ended March 31, 2014 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, primarily in the Communications sector and the Surveillance and 
Intelligence sector. In addition, the Company conducts a significant amount of 
advanced technology development.

MDA's established global customer base is served by more than 4,800 employees 
operating from 11 locations in the United States, Canada, and internationally.

The Company's common shares trade on the Toronto Stock Exchange under the 
symbol "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, May 1, 2014 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:  1-416-764-8609

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

Telephone replay will be available from May 1, 2014 5:30 p.m. (PDT), 8:30 p.m. 
(EDT) to May 15, 2014 11:59 p.m. (PDT), May 16, 2014 2:59 a.m. (EDT) at the 
following numbers:

Toll Free:  1-888-390-0541
Toronto:  1-416-764-8677
PIN:  552483

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, amortization of acquisition 
related intangible assets, share-based compensation, 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, 2014     March 31, 2013
                                                                           
    Operating earnings                              49.4               41.8
    Operating earnings per share                    1.37               1.30
    Items affecting comparability:                                         
    Share-based compensation                      (15.2)             (30.5)
    Amortization of acquisition                    (8.1)              (7.3)
    related intangible assets
    Pension and other post-retirement              (2.3)                  -
    plan amendments
    Foreign exchange loss                          (2.3)              (3.7)
    Business acquisition costs                         -              (1.9)
    Write-off of bank facility fees                    -              (3.1)
    Tax on items affecting                           3.5                6.9
    comparability
    Net earnings                                    25.0                2.2

Forward-Looking Statements
This earnings release and the associated conference call and webcast, which 
includes a business update, first quarter 2014 financial 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 and the failure to obtain necessary 
regulatory approvals and licenses; growth in the commercial satellite market 
is dependent on the growth in the businesses of the Company's customers and 
the ability of its customers to develop new services; failure of third party 
subcontractors to complete contracts for which the Company is the prime 
contractor and the limited number of suppliers for some components; risks of 
performance on firm fixed price construction contracts and termination of 
contracts by customers for convenience; changes in estimates of total revenues 
and costs on contracts and non-receipt of payments on failure of the Company's 
satellites and products to perform successfully; 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 or to be accepted by a 
customer; inclusion of construction performance incentives in many of the 
Company's customer contracts; potential for component failure or performance 
issues on the Company's on-orbit satellites and resulting loss of revenue and 
harm to MDA's reputation and failure of the Company to receive data for sales 
or of customers to purchase data; failure of the Company to manage its 
acquisitions and breaches of contract and indemnities and related risks on 
divestitures; certain customers are highly leveraged and may not fulfil their 
contractual payment obligations; MDA's ability to obtain certain satellite 
construction contracts depends, in part, on its ability to provide the 
customer with financing and any financing provided by the Company may not be 
repaid or the Company may be called upon to make payments; many of the 
Company's costs are fixed and MDA 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 MDA's 
ability to perform its contracts as efficiently as planned; dependence on 
electronic systems may be subject to 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 offer new products to retain customers and market 
position; significant competition with larger or greater resources; 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 
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 and failure to obtain required financing 
on acceptable terms; changes in regulations, telecommunication standards and 
laws due to political and economic instability in the countries in which MDA 
conducts business; changes in U.S. and foreign laws and regulations, including 
U.S. export control and economic sanction laws, governing MDA's business; 
wrongful call on letters of credit, guarantees and performance bonds; 
insufficient insurance against material claims or losses; exposure to fines 
and/or legal sanctions under anti-corruption laws; and failure to comply with 
environmental regulations.

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. 
CONTACT: 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/May2014/01/c6099.html 
CO: MacDonald, Dettwiler and Associates Ltd.
ST: British Columbia
NI: ARO SOF FIN ERN  
-0- May/01/2014 20:30 GMT
 
 
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