Posted: Tuesday, May 3, 2011
MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today reported financial results for the quarter ended March 31, 2011.
The Company continued to achieve solid results. For continuing operations, operating earnings1 increased to $27 million ($0.65 per share) on revenues of $206 million. This is compared to operating earnings of $23 million ($0.56 per share) and revenues of $152 million for the first quarter of last year. Net earnings per share for continuing operations were $0.69, up from $0.47 for the same period a year ago.
The Company completed the sale of its property information business on January 4, 2011. Results for the property information business have been reclassified as discontinued operations for all periods presented. Under IFRS, the sale resulted in an after-tax gain of $56 million, or $1.37 per share, in the first quarter of 2011.
Order backlog at March 31, 2011 was $877 million (December 31, 2010 - $998 million).
MDA's unaudited consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2011 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, May 3, 2011 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 and archived at:
Telephone replay will be available from May 3, 2011 6:00 p.m. PDT (9:00 p.m. EDT) to May 10, 2011 8:59 p.m. PDT (11:59 p.m. EDT) at the following numbers:
Toll free - International: 1-800-642-1687
Pass Code: 51179589
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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. Operating earnings is defined as net earnings adjusted for 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, first quarter 2011 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", "expect", "intend", "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. Any such forward-looking statements are subject to risks and uncertainties and MDA's actual results of operations could differ materially from historical results or current expectations. The risks that could cause actual results to differ from current expectations include: 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, loss of the Company's reputation; failure of systems to meet performance requirements; failure of the Company to manage its acquisitions and indemnities and related risks on divestitures; satellite failure; dependency on electronic systems including data corruption; detrimental reliance on third parties for data; failure to recruit required management and employees and potential for work stoppages; 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 economic and political conditions; inability of suppliers or subcontractors to effect technology transfer; 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.
For additional information with respect to certain of these risks or factors, reference should be made to 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.
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