MDA reports first quarter 2010 results

RICHMOND, BC, May 5 /CNW/ - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today reported financial results for the first quarter ended March 31, 2010. Operating earnings(1) per diluted share increased by 40% to $0.81 this quarter compared to $0.58 for the same period of last year. Net earnings on a GAAP basis were $29 million, or $0.71 per diluted share, compared to $24 million, or $0.60 per diluted share, for the same period of last year.

    
    Financial Highlights
    -------------------------------------------------------------------------
                                                 Three months   Three months
                                                        ended          ended
                                                     March 31,      March 31,
                                                         2010           2009
    -------------------------------------------------------------------------
    ($ thousands, except per common share amounts)

    Consolidated revenues                             245,883        271,970

    Operating earnings                                 33,020         23,593
    Operating earnings per common share, basic           0.81           0.58
    Operating earnings per common share, diluted         0.81           0.58

    Net earnings                                       29,081         24,422
    Net earnings per common share, basic                 0.71           0.60
    Net earnings per common share, diluted               0.71           0.60

    Weighted average number of common shares
     outstanding:
    (thousands)
      Basic                                            40,687         40,416
      Diluted                                          40,917         40,494

    Average exchange rates:
      1 US dollar to Canadian dollar                    1.041          1.245
      1 British pound to Canadian dollar                1.626          1.786
    ------------------------------------------------------------------------
    (1) Operating earnings was previously referred to as adjusted net
        earnings. See section "Non-GAAP Financial Measures" in this earnings
        release.
    (2) See section "Non-GAAP Financial Measures" in this earnings release.
    

The Company's continuing strong performance in Information Systems, diversification in the Information Products marketplace and success in responding to challenging market conditions combined to deliver solid results.

Information Systems revenues for the first quarter of 2010 increased to $133 million from $118 million for the same period a year ago, driven by strong organic growth. Adjusted Information Products revenues(2) this quarter were $113 million, down 10% year over year due to the effects of the strengthening Canadian dollar on foreign currency translations.

As at March 31, 2010, the Company's order backlog was $985 million (December 31, 2009 - $1,013 million). The Company made net debt repayments of $36 million during the quarter, reducing long-term debt, less cash and cash equivalents, to $285 million.

MDA's consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2010 are available at: http://www.mdacorporation.com/corporate/investor/financial_reports.cfm

About MDA

MDA 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 Today

Daniel Friedmann, president and CEO, and Anil Wirasekara, executive vice president and CFO, will host an earnings conference call and webcast today.

A slide presentation on the strategic progress in the past 12 months, along with the First Quarter results, will be available for viewing during the conference call and webcast. Following the presentation, there will be the normal interactive question and answer session. The event is scheduled to begin promptly at 5:30 p.m. EDT (2:30 p.m. PDT).

For those not able to access the webcast, the slide presentation is available to download from: http://www.mdacorporation.com/corporate/investor/events.cfm

To participate, dial 1-888-231-8191 in Canada or the United States International: 1-647-427-7450

The Conference Call will also be Webcast live and archived at: http://www.mdacorporation.com/investor/events.cfm

Telephone replay will be available from May 5, 2010 5:30 p.m. PDT (8:30 p.m. EDT) to May 12, 2010 8:59 p.m. PDT (11:59 p.m. EDT) at the following numbers:

    
    Toll free: 1-800-642-1687
    Toronto area: 1-416-849-0833
    Password: 66334682

    Related Websites:
    www.mdacorporation.com
    

Non-GAAP Financial Measures

This earnings release includes certain non-GAAP financial measures. The Company uses non-GAAP financial measures as supplemental indicators of its operating performance and to assist readers in comparing operating results from period to period. These measures do not have any standardized meanings prescribed by Canadian GAAP and therefore may not be comparable to similar measures presented by other companies. Readers are cautioned not to view these non-GAAP financial measures as alternatives to financial measures calculated in accordance with GAAP. The non-GAAP financial measures are defined and reconciled to the most directly comparable Canadian GAAP measures in the following tables.

Operating earnings

The Company refers to net earnings adjusted for specified items affecting comparability as operating earnings.

    
    -------------------------------------------------------------------------
                                                 Three months   Three months
                                                        ended          ended
                                                     March 31,      March 31,
                                                         2010           2009
    -------------------------------------------------------------------------
    ($ thousands)

    Operating earnings                                 33,020         23,593
    Items affecting comparability:
      Stock-based compensation                          5,804         (3,146)
      Fair value adjustments on equity forward
       contracts                                       (9,883)         5,915
      Fair value adjustments on interest rate
       swap contracts not subject to hedge accounting    (649)             -
      Restructuring expense                                 -         (1,133)
      Tax on items affecting comparability                789           (807)
    -------------------------------------------------------------------------
    Net earnings                                       29,081         24,422
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Adjusted Information Products revenues

To derive adjusted Information Products revenues for prior periods, the Company retroactively applies certain changes to revenue recognition which, for GAAP purposes, were prospectively applied.

    
    -------------------------------------------------------------------------
                                                 Three months   Three months
                                                        ended          ended
                                                     March 31,      March 31,
                                                         2010           2009
    -------------------------------------------------------------------------
    ($ thousands)

    Adjusted Information Products revenues            112,964        125,696
    Retroactive application of net revenue
     recognition to BC OnLine revenues                      -         19,693
    Retroactive application of net revenue
     recognition to certain contracts for
     valuation-related solutions in the U.K.                -          8,276
    -------------------------------------------------------------------------
    Information Products revenues                     112,964        153,665
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Forward-Looking Statements
    --------------------------
    

This release and the associated conference call and webcast, which includes a business update, first quarter 2010 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. ("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 its 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. 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 online at www.sedar.com or www.mdacorporation.com. Any forward-looking statements and information contained in this 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 review 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.

%SEDAR: 00014148E

SOURCE MacDonald, Dettwiler and Associates Ltd.

For further information: For further information: Wendy Keyzer, MDA External Relations, (604) 231-2743, wendy@mdacorporation.com


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