MDA Reports Third Quarter 2007 Results



    RICHMOND, BC, Oct. 30 /CNW/ - MacDonald, Dettwiler and Associates Ltd.
(TSX: MDA), a provider of essential information solutions, today reported
financial results for the third quarter ended September 30, 2007.
    Consolidated revenues for the third quarter of 2007 amounted to
$292 million compared to $290 million for the third quarter of 2006.
Information Products revenues increased to $214 million from $196 million for
the same period last year. Strong organic growth in the U.K. had resulted in
an 18% increase of U.K. Information Products revenues. Information Systems had
a lower quarter due to certain program delays, resulting in revenues of $78
million compared to $94 million for the third quarter a year ago. Third
quarter net earnings were $24 million, or $0.54 per diluted share, an increase
of 13% compared to $21 million, or $0.49 per diluted share, for the same
period last year.
    For the year to date, consolidated revenues increased to $910 million
from $765 million for the first nine months of 2006. Information Products
revenues were $642 million, up 34% compared to the same period last year and
Information Systems revenues were $268 million compared to $286 million for
the same period of 2006. For the first nine months of 2007, net earnings
increased to $65 million, or $1.48 per diluted share, compared to $61 million,
or $1.44 per diluted share, for the prior year period. Results reported for
2007 have been and continue to be impacted by start-up expenses and other
one-time costs related to ramping up the Company's Home Information Pack
business and the strengthening Canadian dollar.

    
    -------------------------------------------------------------------------
                               Three months ended        Nine months ended
                                   September 30,           September 30,
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    ($ thousands, except per
    common share amounts)
    Consolidated revenues      $ 291,997   $ 290,170   $ 910,096   $ 764,831
    Earnings before income
     taxes                        31,337      28,860      87,521      86,551
    Net earnings                  23,502      20,779      64,697      61,451
    Net earnings per diluted
     common share                   0.54        0.49        1.48        1.44
    -------------------------------------------------------------------------
    All results are reported in Canadian dollars and are prepared in
    accordance with Canadian generally accepted accounting principles.
    

    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 earth and space based information solutions,
ranging from complex operational systems, to tailored information services, to
electronic information products.
    MDA employs more than 3,000 people in locations across the United States,
the United Kingdom, and Canada. The Company's common shares trade on the
Toronto Stock Exchange under the symbol TSX:MDA.
    MDA's Third Quarter 2007 unaudited consolidated financial statements are
available at:
    http://www.mdacorporation.com/investor/financial_reports.shtml

    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, October 30,
2007 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 1-888-575-8232 in Canada or the United States
    In Toronto, dial 416-406-6419

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

    Telephone replay will be available until November 6, 2007 at the
following numbers:

    Toll free, International, dial 1-800-408-3053
    In Toronto, dial 416-695-5800
    Pass Code 3238762

    Related Websites:
    www.mdacorporation.com

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

    This release contains forward-looking statements and information, which
reflect the current view of MacDonald, Dettwiler and Associates Ltd. with
respect to future events and financial performance. 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. Additional information on these and other potential factors that
could affect MDA's financial results are detailed in documents filed from time
to time with the applicable Canadian securities regulatory authorities.

    The Toronto Stock Exchange has neither approved nor disapproved the form
    or content of this release.


    
    MACDONALD, DETTWILER AND ASSOCIATES LTD.
    Consolidated Balance Sheets
    (In thousands of dollars)

    -------------------------------------------------------------------------
                                                 September 30,   December 31,
                                                         2007           2006
    -------------------------------------------------------------------------
                                                   (Unaudited)      (Audited)
    Assets

    Current assets:
      Cash and cash equivalents                   $    28,657    $    28,742
      Short-term investments                            7,988          3,269
      Accounts receivable                             203,355        175,721
      Prepaid expenses                                 19,732         25,137
      Future income taxes                              26,812         24,821
      -----------------------------------------------------------------------
                                                      286,544        257,690
    Other long-term assets                             14,321         20,730
    Capital assets                                     75,557         77,700
    Future income taxes                                 6,260         12,827
    Intangible assets                                 158,734        186,422
    Goodwill                                          612,329        688,436
    -------------------------------------------------------------------------

                                                  $ 1,153,745    $ 1,243,805
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity

    Current liabilities:
      Accounts payable and accrued liabilities    $   193,572    $   232,695
      Deferred revenues                                50,774         67,103
      Current portion of long-term debt                    97             75
      -----------------------------------------------------------------------
                                                      244,443        299,873
    Deferred revenues                                  17,247         22,065
    Long-term debt                                    377,911        370,397
    Future income taxes                                33,694         32,564
    Other long-term liabilities                        57,710         50,380
    -------------------------------------------------------------------------
                                                      731,005        775,279

    Shareholders' equity:
      Capital stock                                   239,966        229,504
      Contributed surplus                              22,937         17,034
      Retained earnings                               368,862        314,986
      Accumulated other comprehensive income         (209,025)       (92,998)
      -----------------------------------------------------------------------
                                                      422,740        468,526
    -------------------------------------------------------------------------

                                                 $  1,153,745    $ 1,243,805
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    MACDONALD, DETTWILER AND ASSOCIATES LTD.
    Consolidated Statements of Earnings
    (Unaudited)
    (In thousands of dollars, except per share amounts)

    -------------------------------------------------------------------------
                                 Three months ended      Nine months ended
                                   September 30,           September 30,
                               ----------------------  ----------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------

    Revenues                   $ 291,997   $ 290,170   $ 910,096   $ 764,831

    Direct costs, selling,
     general and administration  247,366     247,755     783,380     640,367
    Amortization of capital
     and intangible assets         7,542       7,801      23,519      23,042
    -------------------------------------------------------------------------
                                 254,908     255,556     806,899     663,409
    -------------------------------------------------------------------------

    Earnings before interest
     expense                      37,089      34,614     103,197     101,422

    Interest expense               5,752       5,754      15,676      14,871
    -------------------------------------------------------------------------

    Earnings before income
     taxes                        31,337      28,860      87,521      86,551

    Provision for income
     taxes                         7,835       8,081      22,824      25,100
    -------------------------------------------------------------------------

    Net earnings               $  23,502   $  20,779   $  64,697   $  61,451
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net earnings per common
     share:
      Basic                    $    0.57   $    0.50   $    1.56   $    1.50
      Diluted                       0.54        0.49        1.48        1.44
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    MACDONALD, DETTWILER AND ASSOCIATES LTD.
    Consolidated Statements of Cash Flows
    (Unaudited)
    (In thousands of dollars)

    -------------------------------------------------------------------------
                                 Three months ended      Nine months ended
                                   September 30,           September 30,
                               ----------------------  ----------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------

    Cash flows provided by
     (used in):

    Operating activities:
      Net earnings             $  23,502   $  20,779   $  64,697   $  61,451
      Items not affecting cash:
        Amortization of
         capital and intangible
         assets                    7,542       7,801      23,519      23,042
        Write-down of capital
         assets                        -           -         837           -
        Gain on disposal of
         investment                    -           -      (1,298)          -
        Future income taxes        4,877       4,295       9,541       8,321
        Stock-based
         compensation              2,262       2,264       6,942       6,883
        Imputed interest            (400)        184         115         696
      -----------------------------------------------------------------------
                                  37,783      35,323     104,353     100,393
      Change in operating
       assets and liabilities    (40,184)    (20,496)    (87,234)    (24,048)
      -----------------------------------------------------------------------
                                  (2,401)     14,827      17,119      76,345
      -----------------------------------------------------------------------

    Investing activities:
      Purchase of capital
       assets                     (5,095)     (3,984)    (19,850)    (16,001)
      Purchase of short-term
       investments                     -           -      (5,303)       (750)
      Proceeds from disposal
       of investment                   -           -       1,747           -
      Settlement of note
       receivable                      -           -         840           -
      Acquisition, net of
       cash acquired              (1,866)     (2,212)     (4,313)    (69,943)
      Settlement of
       acquisition
       consideration                   -           -           -     (98,177)
      -----------------------------------------------------------------------
                                  (6,961)     (6,196)    (26,879)   (184,871)
      -----------------------------------------------------------------------

    Financing activities:
      Issuance of long-term
       debt related to
       acquisitions                    -       2,035           -     167,943
      Borrowing (repayment)
       of long-term debt          15,991     (16,706)     18,525     (38,732)
      Proceeds from issue of
       capital stock               1,837       1,928       8,121      15,238
      Stock purchased for
       settlement of
       long-term incentive plan        -           -           -     (17,813)
      Repurchase and
       cancellation of common
       shares under normal course
       issuer bid                      -           -     (11,712)          -
      -----------------------------------------------------------------------
                                  17,828     (12,743)     14,934     126,636
      -----------------------------------------------------------------------

    Effect of changes in
     exchange rates on cash
     balances                     (1,856)        379      (5,259)        492
    -------------------------------------------------------------------------

    Increase (decrease) in cash    6,610      (3,733)        (85)     18,602

    Cash and cash equivalents,
     beginning of period          22,047      35,680      28,742      13,345
    -------------------------------------------------------------------------

    Cash and cash equivalents,
     end of period             $  28,657   $  31,947   $  28,657   $  31,947
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    MACDONALD, DETTWILER AND ASSOCIATES LTD.
    Schedule of Segmented Information
    (Unaudited)
    (In thousands of dollars)

    Three and nine month periods ended September 30, 2007 and 2006
    -------------------------------------------------------------------------

    The Company has two operating segments, Information Products and
    Information Systems.

    The accounting policies of the segments are the same as those described
    in the summary of significant accounting policies in the Company's annual
    consolidated financial statements.

    Three months ended September 30:
    -------------------------------------------------------------------------

                                   Consolidated              Corporate
                               ----------------------  ----------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Revenues                   $ 291,997   $ 290,170   $       -   $       -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings before
     undernoted                $  46,740   $  44,433   $       -   $       -
    Amortization of capital
     and intangible assets        (7,542)     (7,801)          -           -
    Corporate expenses            (2,109)     (2,018)     (2,109)     (2,018)
    -------------------------------------------------------------------------

    Earnings before other
     items                        37,089      34,614      (2,109)     (2,018)
    Interest expense              (5,752)     (5,754)     (5,752)     (5,754)
    -------------------------------------------------------------------------

    Earnings before income
     taxes                     $  31,337   $  28,860   $  (7,861)  $  (7,772)
    -------------------------------------------------------------------------


    Three months ended September 30:
    -------------------------------------------------------------------------
                                    Information             Information
                                      Systems                 Products
                               ----------------------  ----------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    Revenues                   $  78,442   $  93,941   $ 213,555   $ 196,229
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings before
     undernoted                $  13,207   $  15,475   $  33,533   $  28,958
    Amortization of capital
     and intangible assets        (1,924)     (1,939)     (5,618)     (5,862)
    Corporate expenses                 -           -           -           -
    -------------------------------------------------------------------------

    Earnings before other
     items                        11,283      13,536      27,915      23,096
    Interest expense                   -           -           -           -
    -------------------------------------------------------------------------

    Earnings before income
     taxes                     $  11,283   $  13,536   $  27,915   $  23,096
    -------------------------------------------------------------------------



    Nine months ended September 30:
    -------------------------------------------------------------------------

                                   Consolidated              Corporate
                               ----------------------  ----------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------

    Revenues                   $ 910,096   $ 764,831   $       -   $       -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings before
     undernoted                $ 133,483   $ 130,151   $       -   $       -
    Amortization of capital
     and intangible assets       (23,519)    (23,042)          -           -
    Corporate expenses            (6,767)     (5,687)     (6,767)     (5,687)
    -------------------------------------------------------------------------

    Earnings before other
     items                       103,197     101,422      (6,767)     (5,687)
    Interest expense             (15,676)    (14,871)    (15,676)    (14,871)
    -------------------------------------------------------------------------

    Earnings before income
     taxes                     $  87,521   $  86,551   $ (22,443)  $ (20,558)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Nine months ended September 30:
    -------------------------------------------------------------------------
                                    Information             Information
                                      Systems                 Products
                               ----------------------  ----------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------

    Revenues                   $ 268,385   $ 286,389   $ 641,711   $ 478,442
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings before
     undernoted                $  48,358   $  51,050   $  85,125   $  79,101
    Amortization of capital
     and intangible assets        (5,656)     (5,865)    (17,863)    (17,177)
    Corporate expenses                 -           -           -           -
    -------------------------------------------------------------------------

    Earnings before other
     items                        42,702      45,185      67,262      61,924
    Interest expense                   -           -           -           -
    -------------------------------------------------------------------------

    Earnings before income
     taxes                     $  42,702   $  45,185   $  67,262   $  61,924
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    As at September 30, 2007 and December 31, 2006:
    -------------------------------------------------------------------------

                                   Consolidated              Corporate
                               ----------------------  ----------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------

    Total assets              $1,153,745  $1,243,805  $        -  $        -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    As at September 30, 2007 and December 31, 2006:
    -------------------------------------------------------------------------
                                    Information             Information
                                      Systems                 Products
                               ----------------------  ----------------------
                                    2007        2006        2007        2006
    -------------------------------------------------------------------------

    Total assets              $  384,861  $  424,162  $  768,884  $  819,643
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00014148E




For further information:

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


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