MDA reports fourth quarter and full year 2009 results

RICHMOND, BC, March 18 /CNW/ - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today reported financial results for the fourth quarter and year ended December 31, 2009. MDA posted net earnings this quarter of $30 million, or $0.74 per diluted share, compared to $8.8 million, or $0.22 per diluted share, for the same period of last year. For the year, net earnings increased to $108 million ($2.67 per diluted share) from $48 million ($1.19 per diluted share) for last year.

    
    Summary of consolidated results
    -------------------------------------------------------------------------
                                                             Year       Year
                                    Q4-2009    Q4-2008       2009       2008
    -------------------------------------------------------------------------
    ($ thousands, except per
     common share amounts)

    Consolidated revenues           237,526    278,327  1,000,890  1,168,491

    Net earnings                     30,169      8,750    108,386     48,490
    Net earnings per common
     share, basic                      0.74       0.22       2.68       1.20
    Net earnings per common
     share, diluted                    0.74       0.22       2.67       1.19

    Adjusted net earnings(1)         26,972     21,218    107,140     92,497
    Adjusted net earnings per
     common share, basic               0.67       0.53       2.65       2.30
    Adjusted net earnings per
     common share, diluted             0.66       0.52       2.64       2.28

    Weighted average number of
     common shares outstanding:
     (thousands)
      Basic                          40,536     40,363     40,475     40,284
      Diluted                        40,807     40,431     40,656     40,655

    Average exchange rates:
      1 US dollar to Canadian
       dollar                         1.056      1.213      1.142      1.067
      1 British pound to Canadian
       dollar                         1.727      1.898      1.780      1.961
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Adjusted net earnings and adjusted net earnings per common share are
        non-GAAP financial measures.
    

Net earnings per diluted share, adjusted for items affecting comparability as set forth in the table below, increased to $0.66 this quarter (Q4 2008 - $0.52) and $2.64 for the year (2008 - $2.28).

Consolidated revenues for the year were $1,001 million (2008 - $1,168 million). Information Systems revenues increased over last year on strong organic growth, but soft housing market conditions in the U.S. and the United Kingdom and accounting changes to revenue recognition in Information Products caused revenues to finish down for the year.

The Company ended the year with a solid order backlog of $1,013 million, up significantly from $745 million a year earlier. Total debt, less cash and cash equivalents, was $327 million at December 31, 2009, down from $460 million at December 31, 2008.

    
    Reconciliation of net earnings to adjusted net earnings

    -------------------------------------------------------------------------
                                                             Year       Year
                                    Q4-2009    Q4-2008       2009       2008
    -------------------------------------------------------------------------
    ($ thousands)

    Net earnings                     30,169      8,750    108,386     48,490

    Items affecting
     comparability:
      Stock-based compensation
       expense (recovery)            14,540        (41)    24,367       (828)
      Fair value loss (gain) on
       equity forward contracts     (18,535)    (1,354)   (29,449)    36,691
      Fair value loss (gain) on
       interest rate swap
       contracts not subject to
       hedge accounting                (337)     6,776       (337)     6,776
      Write-down of assets related
       to restructuring                   -      7,000      1,407      7,000
      Other restructuring expense         -      2,767      2,142      4,045
      Terminated divestiture costs        -          -          -      4,934
      Tax on items affecting
       comparability                  1,135     (2,680)       624    (14,611)
    -------------------------------------------------------------------------
    Adjusted net earnings            26,972     21,218    107,140     92,497
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

MDA's audited consolidated financial statements and management's discussion and analysis for the year ended December 31, 2009 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

MDA President and CEO Daniel Friedmann and Executive Vice President and CFO Anil Wirasekara will be available on a Conference Call today, March 18, 2010 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 (888) 231-8191 OR (647) 427-7450 in Canada or the United States.

The Conference Call will also be Webcast live and archived at:

http://www.mdacorporation.com/investor/events.cfm

Telephone replay will be available from March 18, 2010 6:00 p.m. PST (9:00 p.m. EST) to March 25, 2010 8:59 p.m. PST (11:59 p.m. EST) at the following numbers:

    
    Toll free: 1-800-642-1687
    Toronto area: 1-416-849-0833
    Password: 50482277

    Related Websites:
    www.mdacorporation.com

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

This earnings release and the associated earnings conference call and webcast which includes a business update, fourth quarter and full year 2009 financial review and question and answer session, contains 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. The forward-looking statements and information contained in this earnings release and the associated earnings 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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