MDA reports third quarter 2008 results



    RICHMOND, BC, Oct. 29 /CNW/ - MacDonald, Dettwiler and Associates Ltd.
(TSX: MDA), a provider of essential information solutions, today reported
financial results for the three and nine months ended September 30, 2008.
    Consolidated revenues for the third quarter of 2008 were $278 million
compared to $292 million for the same period last year. Revenues from
Information Products were $183 million, down from $214 million for the third
quarter of 2007 on lower market activity. The Information Systems business
remained solid, reporting revenues of $96 million compared to $78 million for
the third quarter of 2007.
    Diluted adjusted EPS for the third quarter of 2008 was 50 cents compared
to 59 cents for the same period last year. Reported on a GAAP basis, diluted
EPS for the third quarter of 2008 was one cent compared to 54 cents for the
same period a year ago. Adjusted net earnings exclude stock-based compensation
expense and mark-to-market adjustments on related hedges, which impacted EPS
by 47 cents this quarter. Adjusted net earnings this quarter also excluded
restructuring costs of 2 cents per share. The Company is right-sizing its
workforce and facilities in the United States and the United Kingdom to
achieve a lower operating cost base at current market activity.
    Consolidated revenues for the nine months ended September 30, 2008 were
$890 million compared to $910 million for the prior year period. Information
Products revenues were $594 million compared to $642 million for the same
period last year. Information Systems revenues were $296 million compared to
$268 million for the same period a year ago. Diluted adjusted EPS for the nine
months ended September 30, 2008 was $1.75, consistent with the same period in
2007. The cumulative impact in 2008 of the stock-based compensation expense
and mark-to-market adjustments on related hedges was 64 cents per share.
Adjusted EPS for the current year to date also excluded non-recurring costs
related to the terminated divestiture of the Information Systems business.
After accounting for all transactions, diluted EPS for the nine months ended
September 30, 2008 was 98 cents compared to $1.48 for the same period last
year.

    
    Results of Operations

    -------------------------------------------------------------------------
                                  Three months ended       Nine months ended
                                      September 30,           September 30,
                                    2008        2007        2008        2007
    -------------------------------------------------------------------------
    ($ thousands, except per
    common share amounts)
    Consolidated revenues      $ 278,282   $ 291,997   $ 890,164   $ 910,096
    Adjusted net earnings(1)      20,115      25,615      71,279      76,753
    Adjusted earnings per
     common share(1):
      Basic                         0.50        0.62        1.77        1.85
      Diluted                       0.50        0.59        1.75        1.75

    Net earnings                     242      23,502      39,740      64,697
    Earnings per common share:
      Basic                         0.01        0.57        0.99        1.56
      Diluted                       0.01        0.54        0.98        1.48

    Weighted average number
     of common shares
     (thousands):
      Basic                       40,318      41,352      40,262      41,406
      Diluted                     40,560      43,716      40,733      43,808
    Average exchange rates:
      1 US dollar to
       Canadian dollar             1.042       1.045       1.019       1.105
      1 British pound
       to Canadian dollar          1.967       2.111       1.981       2.195
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Adjusted net earnings and adjusted earnings per share are non-GAAP
        financial measures.


    Reconciliation of adjusted net earnings to net earnings

    -------------------------------------------------------------------------
                                  Three months ended       Nine months ended
                                      September 30,           September 30,
                                    2008        2007        2008        2007
    -------------------------------------------------------------------------
    ($ thousands)
    Net earnings                     242      23,502      39,740      64,697

    Non-recurring costs
     related to terminated
     divestiture, net of taxes         -           -       4,552           -
    Restructuring costs
     related to US and UK
     operations, net of taxes        906           -         906           -
    Stock-based compensation
     expense (recovery),
     net of taxes                 (1,191)      3,101        (254)     10,805
    Mark-to-market adjustments
     on equity hedge contracts,
     net of taxes                 20,158        (988)     26,335       1,251
    -------------------------------------------------------------------------
    Adjusted net earnings         20,115      25,615      71,279      76,753
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    MDA's unaudited consolidated financial statements and management's
discussion and analysis for the three and nine months ended September 30, 2008
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.
    MDA employs more than 3,300 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.

    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 29,
2008 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 1-888-789-9572 in Canada or the United States
    In Toronto, dial 416-695-7806
    Pass Code 3269936

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

    Telephone replay will be available until November 5, 2008 at the
    following numbers:

    Toll free, International, dial 1-800-408-3053
    In Toronto, dial 416-695-5800
    Pass Code 3269936

    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.
    

    %SEDAR: 00014148E




For further information:

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


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