MDA reports fourth quarter and full year 2013 results
RICHMOND, BC, Feb. 25, 2014 /CNW/ - MacDonald, Dettwiler and Associates Ltd. ("MDA" or the "Company") (TSX: MDA), a global communications and information company, today reported financial results for the fourth quarter and full year ended December 31, 2013.
For the fourth quarter of 2013, the Company reported consolidated revenues of $476.7 million compared to $372.6 million for the fourth quarter of 2012. Operating earnings1 this quarter increased to $48.3 million, or $1.34 per share1, from $39.0 million, or $1.22 per share, for the same period of 2012. Fourth quarter net earnings under IFRS were $25.2 million ($0.70 per share) compared to $11.0 million ($0.35 per share) for the same period of last year.
For the full year 2013, the Company reported consolidated revenues of $1.8 billion, up from $879.9 million for 2012 primarily due to the acquisition of SSL. Correspondingly, operating earnings increased to $180.0 million ($5.13 per share) from $124.4 million ($3.91 per share) for 2012. Net earnings under IFRS for 2013 were $105.0 million ($3.00 per share) compared to $83.9 million ($2.63 per share) for last year.
The Company ended the year with total funded order backlog of $3.0 billion, up from $2.2 billion at December 31, 2012. The increase reflects, among other items, an improvement in order intake for turnkey satellite solutions and the addition of the build phase of the RADARSAT Constellation Mission to order backlog in 2013.
The Company has declared a semi-annual dividend of $0.65 per common share payable on March 31, 2014 to shareholders of record at the close of business on March 14, 2014.
|($ millions, except per common share amounts)||
Three months ended
Twelve months ended
|Operating earnings per share1||1.34||1.22||5.13||3.91|
|Net earnings per share, basic and diluted||0.70||0.35||3.00||2.63|
|Weighted average number of common shares outstanding:|
|Basic and diluted3||36.0||31.9||35.1||31.8|
|1||See section "Non-IFRS Financial Measures" in this earnings release.|
|2||Comparative prior period information has been restated for retrospective application of amendments to IAS 19, Employee Benefits.|
|3||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 audited consolidated financial statements and management's discussion and analysis for the twelve months ended December 31, 2013 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 4,800 employees operating from 11 offices located 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 today, February 25, 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 US/Canada: 1-888-390-0546
The Conference Call will also be Webcast live at:
Telephone replay will be available from February 25, 2014 5:30 p.m. (PST), 8:30 p.m. (EST) to March 11, 2014 11:59 p.m. (PST), March 12, 2014 2:59 a.m. (EST) at the following numbers:
Toll Free: 1-888-390-0541
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 excluding the after-tax effects of specified items affecting comparability, including, where applicable, non-operational income and expenses, amortization of acquisition related intangible assets, 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 share||1.34||1.22||5.13||3.91|
|Items affecting comparability:|
Past service credits on pension and other
post-retirement plan amendments
Foreign currency translation adjustment reclassified
to earnings on liquidation of foreign operation
|Amortization of acquisition related intangible assets||(8.2)||(4.8)||(30.8)||(4.8)|
|Business acquisition costs||-||(10.8)||(1.9)||(15.5)|
|Other acquisition related expenses||0.3||-||(2.7)||-|
|Write-off of bank facility fees||-||-||(3.1)||-|
|Loss on disposal of assets||-||(1.7)||-||(1.7)|
|Fair value adjustments on equity forward contracts||-||-||-||4.1|
|Foreign exchange gain (loss)||(4.7)||0.3||(6.0)||4.4|
|Tax on items affecting comparability||3.8||0.6||18.5||2.3|
|1 Comparative prior period information has been restated for retrospective application of amendments to IAS 19, Employee Benefits.|
This earnings release and the associated conference call and webcast, which includes a business update, fourth quarter and full year 2013 results, and question and answer session, may 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. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and represent management's best judgment based on facts and assumptions that management considers reasonable.
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 materially from current expectations include, but are not limited to: changes in government policies, priorities, funding levels, contracts or regulations and the failure to obtain necessary regulatory approvals and licenses; growth in the commercial satellite market is dependent on the growth in the businesses of the Company's customers and the ability of its customers to develop new services; failure of third party subcontractors to complete contracts for which the Company is the prime contractor and the limited number of suppliers for some components; risks of performance on firm fixed price construction contracts and termination of contracts by customers for convenience; changes in estimates of total revenues and costs on contracts and non-receipt of payments on failure of the Company's satellites and products to perform successfully; 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 or to be accepted by a customer; inclusion of construction performance incentives in many of the Company's customer contracts; potential for component failure or performance issues on the Company's on-orbit satellites and resulting loss of revenue and harm to MDA's reputation and failure of the Company to receive data for sales or of customers to purchase data; failure of the Company to manage its acquisitions and breaches of contract and indemnities and related risks on divestitures; certain customers are highly leveraged and may not fulfil their contractual payment obligations; MDA's ability to obtain certain satellite construction contracts depends, in part, on its ability to provide the customer with financing and any financing provided by the Company may not be repaid or the Company may be called upon to make payments; many of the Company's costs are fixed and MDA 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 MDA's ability to perform its contracts as efficiently as planned; dependence on electronic systems may be subject to 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 offer new products to retain customers and market position; significant competition with larger or greater resources; 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 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 and failure to obtain required financing on acceptable terms; changes in regulations, telecommunication standards and laws due to political and economic instability in the countries in which MDA conducts business; changes in U.S. and foreign laws and regulations, including U.S. export control and economic sanction laws, governing MDA's business; wrongful call on letters of credit, guarantees and performance bonds; insufficient insurance against material claims or losses; exposure to fines and/or legal sanctions under anti-corruption laws; and failure to comply with environmental regulations.
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 the earnings release or the associated conference call and webcast.
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