MDA reports full year and fourth quarter 2012 results
RICHMOND, BC, Feb. 27, 2013 /CNW/ - MacDonald, Dettwiler and Associates Ltd. ("MDA" or the "Company") (TSX:MDA), a provider of essential information solutions, today reported financial results for the full year and fourth quarter ended December 31, 2012.
Consolidated revenues for the full year 2012 increased to $880 million compared to $761 million for the year ended December 31, 2011. Revenues for the Communications segment were $387 million, up from $238 million for 2011. MDA completed the acquisition of Space Systems/Loral ("SSL") on November 2, 2012 and the results of SSL are included in the Communications segment from the date of acquisition. Revenues for the Surveillance and Intelligence segment were $493 million compared to $523 million for 2011.
Operating earnings for the full year 2012 increased to $127 million ($3.98 per share) compared to $117 million ($2.99 per share) for last year. Operating earnings is a non-IFRS financial measure that provides a more meaningful way to compare the Company's financial performance from period to period.
Net earnings under IFRS in 2012 were impacted by certain large, non-operational items that affected comparability of financial results to prior year. These items included transaction costs related to the acquisition of SSL, amortization expense of acquisition related intangible assets and unrealized mark-to-market adjustments on share-based compensation awards. After giving effect to these adjustments, net earnings from continuing operations for the full year 2012 were $86 million ($2.71 per share) compared to $130 million ($3.31 per share) for 2011.
With the acquisition of SSL, the Company ended the year with funded order backlog of $2.2 billion compared with $805 million at December 31, 2011. Order backlog at December 31, 2012 did not include the contract signed with the Canadian Space Agency in January 2013 and valued at $706 million to build, launch and provide initial operations for the RADARSAT Constellation Mission.
The Company has declared a semi-annual dividend of $0.65 per common share, payable on March 28, 2013 to common shareholders of record at the close of business on March 15, 2013.
Three months ended
Twelve months ended
|($ millions, except per common share amounts)||2012||2011||2012||2011|
|Results from continuing operations|
|Surveillance and Intelligence revenues1||118.6||128.8||493.3||523.4|
|Operating earnings per share2, diluted||1.27||0.97||3.98||2.99|
|Net earnings per share, diluted||0.40||0.91||2.71||3.31|
|Results from discontinued operations|
Gain (loss) on sale of discontinued operations,
net of income taxes
|Weighted average number of common shares outstanding:|
The Company re-evaluated its reportable segments in the fourth quarter
of 2012. Prior period amounts have
been reclassified to reflect the current presentation. You will find more information about the Company's
reportable segments in its most recent consolidated financial statements and management's discussion and analysis.
|2||See section "Non-IFRS Financial Measures" in this earnings release.|
On October 4, 2011, the Company repurchased and cancelled 9,433,962 of
its common shares at a price of
$53.00 per common share under a substantial issuer bid. The shares repurchased represented approximately
22.9% of the common shares outstanding at October 4, 2011.
MDA's audited consolidated financial statements and management's
discussion and analysis for the twelve months ended December 31, 2012
are available at:
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 locations 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 February 28, 2013 at 7:00 a.m. Pacific (10:00 a.m. Eastern) to explain the financial results of the Company and to answer questions.
To participate, dial toll-free 1-888-231-8191
In Toronto, dial 1-647-427-7450
The Conference Call will also be Webcast live at:
Telephone replay will be available until March 14, 2013 at the following numbers:
Toll free, dial 1-855-859-2056
In Toronto, dial 1-416-849-0833
Pass Code: 72785756
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 from continuing operations 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 share amounts)||
Three months ended
Twelve months ended
|Operating earnings per diluted share||1.27||0.97||3.98||2.99|
|Items affecting comparability:|
|Business acquisition costs||(10.8)||-||(15.5)||-|
|Amortization of acquisition related intangible assets||(4.8)||-||(4.8)||-|
|Loss on disposal of assets||(1.7)||-||(1.7)||-|
|Fair value adjustments on equity forward contracts||-||(0.1)||4.1||2.7|
Foreign exchange timing differences on certain
project-related foreign exchange forward contracts
not subject to hedge accounting
Foreign exchange gain (loss) on translation of
Foreign exchange gain (loss) on conversion and
translation of foreign cash and long-term
|Tax on items affecting comparability||0.6||0.8||2.3||0.5|
|Net earnings from continuing operations||12.6||29.2||86.3||129.6|
This earnings release and the associated conference call and webcast, which includes a business update, full year and fourth quarter 2012 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", "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 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.
SOURCE MacDonald, Dettwiler and Associates Ltd.