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SOURCE MacDonald, Dettwiler and Associates Ltd.
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 $0.65 per common
share, payable on March 28, 2013 to common shareholders of record at
the close of business on March 15, 2013.
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Financial Highlights
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Three months ended
December 31,
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Twelve months ended
December 31,
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($ millions, except per common share amounts)
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2012
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2011
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2012
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2011
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Results from continuing operations
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Communications revenues1
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254.0
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49.4
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386.6
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237.7
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Surveillance and Intelligence revenues1
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118.6
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128.8
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493.3
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523.4
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Consolidated revenues
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372.6
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178.2
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879.9
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761.1
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Operating earnings2
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40.6
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31.3
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126.8
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117.2
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Operating earnings per share2, diluted
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1.27
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0.97
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3.98
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2.99
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Net earnings
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12.6
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29.2
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86.3
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129.6
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Net earnings per share, diluted
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0.40
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0.91
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2.71
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3.31
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Results from discontinued operations
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Gain (loss) on sale of discontinued operations,
net of income taxes
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-
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(22.9)
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-
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30.1
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Weighted average number of common shares outstanding:
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(millions)
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Basic3
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31.9
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32.2
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31.8
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39.1
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Diluted3
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31.9
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32.2
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31.8
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39.1
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1
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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.
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2
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See section "Non-IFRS Financial Measures" in this earnings release.
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3
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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.
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MDA's audited consolidated financial statements and management's
discussion and analysis for the twelve months ended December 31, 2012
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 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:
http://www.mdacorporation.com/investor/events.cfm
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
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 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.
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($ millions, except per common share amounts)
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Three months ended
December 31,
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Twelve months ended
December 31,
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2012
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2011
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2012
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2011
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Operating earnings
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40.6
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31.3
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126.8
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117.2
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Operating earnings per diluted share
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1.27
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0.97
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3.98
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2.99
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Items affecting comparability:
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Business acquisition costs
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(10.8)
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-
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(15.5)
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-
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Amortization of acquisition related intangible assets
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(4.8)
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-
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(4.8)
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-
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Loss on disposal of assets
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(1.7)
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-
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(1.7)
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-
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Share-based compensation
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(11.6)
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(4.5)
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(29.3)
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3.9
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Fair value adjustments on equity forward contracts
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-
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(0.1)
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4.1
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2.7
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Foreign exchange timing differences on certain
project-related foreign exchange forward contracts
not subject to hedge accounting
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(1.1)
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(1.2)
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1.4
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0.6
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Foreign exchange gain (loss) on translation of
intercompany balances
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(0.7)
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4.4
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3.5
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0.7
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Foreign exchange gain (loss) on conversion and
translation of foreign cash and long-term
debt balances
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2.1
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(1.5)
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(0.5)
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4.0
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Tax on items affecting comparability
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0.6
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0.8
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2.3
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0.5
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Net earnings from continuing operations
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12.6
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29.2
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86.3
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129.6
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Forward-Looking Statements
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.
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