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MDA Reports Third Quarter 2014 Results

Press Release From: MDA
Posted: Thursday, October 30, 2014

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, 2014.

Consolidated revenues this quarter were $506.6 million, up from $463.3 million for the third quarter of 2013. Operating earnings1 increased to $50.7 million, or $1.41 per share1, compared to $46.6 million, or $1.29 per share, for the third quarter of last year.

The Company had total funded order backlog of $3.0 billion as at September 30, 2014, consistent with the amount as at June 30, 2014.

Giving effect to the specified items affecting comparability, the Company reported net earnings of $21.5 million for the third quarter of 2014.

Financial Highlights
 
($ millions, except per common share amounts) Three months ended
September 30,
Nine months ended
September 30,
  2014 2013 2014 2013
         
Consolidated revenues 506.6 463.3 1,551.8 1,342.3
Operating earnings1 50.7 46.6 154.1 131.7
Operating earnings per share1 1.41 1.29 4.27 3.79
Net earnings 21.5 46.5 82.9 79.9
Net earnings per share, basic and diluted 0.60 1.29 2.30 2.30
         
Weighted average number of common shares outstanding:      
(millions)        
Basic and diluted2 36.1 36.0 36.1 34.7
         
 
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 (MD&A) for the three and nine months ended September 30, 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, October 30, 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 1-888-390-0546
In Toronto, dial 416-764-8688
 
The Conference Call will also be Webcast live at:
http://www.mdacorporation.com/corporate/investor/events.cfm
 
Telephone replay will be available from October 30, 2014, 5:00 p.m. (PDT), 8:00 p.m. (EDT) to 
November 14, 2014, 8:59 p.m. (PST)11:59 p.m. (EST) at the following numbers:
 
Toll Free:  1-888-390-0541
Toronto:  416-764-8677
PIN#:  972525
 
 
Related Websites:
www.mdacorporation.com
 
Non-IFRS Financial Measures
 
In addition to results reported in accordance with IFRS, the Company discloses operating earnings andoperating earnings per share as supplemental indicators of its financial performance.
 
The Company defines operating earnings as net earnings excluding the impact 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. Income tax expense on operating earnings is computed using an estimated annual tax rate, adjusted to account for the specified items affecting comparability. Operating earnings per shareis 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 share amounts) Three months ended
September 30,
Nine months ended
September 30,
  2014 2013 2014 2013
         
Operating earnings 50.7 46.6 154.1 131.7
Operating earnings per share 1.41 1.29 4.27 3.79
Items affecting comparability:        
Share-based compensation 0.0 (29.1) (21.3) (65.9)
Amortization of acquisition related intangible assets (8.0) (7.9) (24.2) (22.6)
Enterprise improvement costs (15.6) - (15.6) -
Litigation fees (2.5) - (5.0) -
Acquisition related expense (0.7) (3.0) (0.7) (4.9)
Pension and other post-retirement plan amendments (2.1) 40.1 (6.4) 40.1
Foreign exchange gain (loss) (3.1) 2.0 (5.3) (1.2)
Foreign currency translation adjustment reclassified
   to earnings on liquidation of foreign operation
- (8.9) - (8.9)
Write-off of bank facility fees - - - (3.1)
Income tax expense adjustment 2.8 6.7 7.3 14.7
Net earnings 21.5 46.5 82.9 79.9
 
The Company's MD&A for the three and nine months ended September 30, 2014 provides additional information regarding these financial metrics and the specified items affecting the comparability of net earnings.

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