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Press release from CNW Group

MDA reports third quarter 2011 results

Friday, October 28, 2011

MDA reports third quarter 2011 results16:00 EDT Friday, October 28, 2011RICHMOND, BC, Oct. 28, 2011 /CNW/ - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today reported financial results for the quarter ended September 30, 2011.For continuing operations, third quarter 2011 revenues increased to $182 million compared to $167 million for the same period of last year. Operating earnings1 were $30 million ($0.73 per diluted share), up from $23 million ($0.55 per diluted share) for the third quarter of 2010.Funded order backlog at September 30, 2011 was $856 million compared to $833 million at June 30, 2011. Third quarter booking activity was robust, with particular strength from U.S. operations and medical robotics. Order backlog does not include the substantial build phase of the RADARSAT Constellation Mission.Subsequent to September 30, 2011, the Company purchased for cancellation $500 million in value of its common shares (22.9% of outstanding shares) under a substantial issuer bid. The issuer bid will have an accretive effect on earnings per share going forward. After giving effect to the repurchase, 31.8 million common shares remained outstanding.Financial Highlights     ($ millions, except earnings per diluted common share amounts)Three months ended September 30,Nine months ended September 30,2011201020112010     From continuing operations    Revenues181.5166.5582.9479.6Operating earnings130.322.785.868.2Operating earnings per share1, diluted0.730.552.081.66     Net earnings       Continuing operations40.522.0100.455.9   Gain (loss) on sale of discontinued operations(1.2)-53.0-   Discontinued operations-18.6-37.7   Total39.340.6153.493.6     Net earnings per share, diluted        Continuing operations0.980.542.441.36    Gain (loss) on sale of discontinued operations(0.03)-1.29-    Discontinued operations-0.45-0.92    Total0.950.993.722.28         Weighted average number of common shares outstanding:    (millions)        Basic41.241.041.240.9    Diluted41.241.141.241.01 See section "Non-IFRS Financial Measures" in this earnings release.MDA's unaudited consolidated financial statements and management's discussion and analysis for the three and nine months ended September 30, 2011 are available at:http://www.mdacorporation.com/corporate/investor/financial_reports.cfmAbout MDAMDA 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 TodayMDA President and CEO Daniel Friedmann and Executive Vice President and CFO Anil Wirasekara will be available on a Conference Call today, October 28, 2011 at 1:30 p.m. Pacific (4:30 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 StatesInternational: 1-647-427-7450The Conference Call will also be Webcast live and archived at:http://www.mdacorporation.com/investor/events.cfmTelephone replay will be available from October 28, 2011 5:00 p.m. PDT (8:00 p.m. EDT) to November 11, 2011 8:59 p.m. PDT (11:59 p.m. EDT) at the following numbers:Toll free:  1-855-859-2056Toronto:  1-416-849-0833Pass Code:  92435654Related Websites:www.mdacorporation.comNon-IFRS Financial MeasuresIn 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.     ($ millions)Three months endedSeptember 30,Nine months endedSeptember 30,2011201020112010     Operating earnings from continuing operations30.322.785.868.2Items affecting comparability:    Share-based compensation13.7(6.9)8.4(16.3)Fair value adjustments on equity forward contracts(3.5)2.72.82.9Foreign exchange timing differences on certain   project-related foreign exchange forward contracts   not subject to hedge accounting3.13.31.8(3.5)Foreign exchange loss on translation of   intercompany balances(6.2)-(3.6)-Foreign exchange gain on conversion and   translation of foreign cash balances3.7-5.5-Tax on items affecting comparability(0.6)0.2(0.3)4.6Net earnings from continuing operations40.522.0100.455.9Forward-Looking StatementsThis earnings release and the associated conference call and webcast, which includes a business update, third 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.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.   For further information: Wendy Keyzer MDA External Relations (604) 231-2743 wendy@mdacorporation.com