MDA reports full year and fourth quarter 2011 results

Highlights of full year 2011 results

  • Revenues from continuing operations increased 11% to $761 million
  • Operating earnings from continuing operations increased 17% to $117 million, or $2.99 per share
  • Net earnings per share from continuing operations were $3.31 (2010 - $1.45)

RICHMOND, BC, Feb. 28, 2012 /CNW/ - MacDonald, Dettwiler and Associates Ltd. (TSX:MDA), a provider of essential information solutions, today reported financial results for the full year and fourth quarter ended December 31, 2011.

The Company continued to deliver solid financial performance. For continuing operations, revenues for the full year 2011 were $761 million, up 11% compared to $688 million for 2010. Operating earnings, or net earnings adjusted for items affecting comparability, increased to $117 million ($2.99 per diluted share) compared to $100 million ($2.44 per diluted share) for 2010.

On October 4, 2011, the Company repurchased for cancellation 9,433,962 of its common shares at a price of $53 per common share, for an aggregate purchase price of $500 million. The shares repurchased represented approximately 22.9% of the common shares outstanding at October 4, 2011.

The Company is pleased to announce that it has increased its cash dividend by $0.30 per common share, raising the annualized dividend to $1.30 per common share. A semi-annual dividend of $0.65 per common share is payable on March 30, 2012 to common shareholders of record at the close of business on March 15, 2012.

Financial Highlights


($ millions, except per common share amounts)
Three months ended
December 31,
Twelve months ended
December 31,
2011 2010 2011 2010
Results from continuing operations        
Revenues 178.2 208.4 761.1 688.0
Operating earnings1 31.3 31.7 117.2 99.9
Operating earnings per share1, diluted 0.97 0.77 2.99 2.44
Net earnings 29.2 3.6 129.6 59.5
Net earnings per share, diluted 0.91 0.09 3.31 1.45
Results from discontinued operations        
Gain (loss) on sale of discontinued operations (22.9) - 30.1 -
Discontinued operations - 33.5 - 71.2
Weighted average number of common shares outstanding:      
    Basic 32.2 41.0 39.1 40.8
    Diluted 32.2 41.1 39.1 40.9

1 See section "Non-IFRS Financial Measures" in this earnings release.

MDA's audited consolidated financial statements and management's discussion and analysis for the twelve months ended December 31, 2011 are available at:

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, February 28, 2012 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 1-888-231-8191 in Canada or the United States
International: 1-647-427-7450

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

Telephone replay will be available from February 28, 2012 6:00 p.m. PST (9:00 p.m. EST) to March 14, 2012 8:59 p.m. PST (11:59 p.m. EST) at the following numbers:

Toll free:  1-855-859-2056
Toronto:  1-416-849-0833
Pass Code:  28779546

Related Websites:

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. Operating earnings is defined as net earnings adjusted for specified items affecting comparability, including share-based compensation, fair value adjustments on financial instruments not subject to hedge accounting, write-downs and other gains or losses. Operating earnings per share is calculated using diluted weighted average shares outstanding. The Company uses operating earnings and operating earnings per share as a more meaningful way to compare financial results from one period to another.

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)
Three months ended
December 31,
Twelve months ended
December 31,
2011 2010 2011 2010
Operating earnings from continuing operations 31.3 31.7 117.2 99.9
Items affecting comparability:        
Share-based compensation (4.5) (14.6) 3.9 (30.8)
Fair value adjustments on equity forward contracts (0.1) 6.0 2.7 8.9
Foreign exchange timing differences on certain project-related foreign        
  exchange forward contracts not subject to hedge accounting (1.2) (6.4) 0.6 (9.9)
Foreign exchange gain on translation of intercompany balances 4.4 - 0.7 -
Foreign exchange gain (loss) on conversion and translation of foreign        
  cash balances (1.5) - 4.0 -
Tax on items affecting comparability 0.8 4.3 0.5 8.8
Foregone tax deductions on share-based compensation - (17.4) - (17.4)
Net earnings from continuing operations 29.2 3.6 129.6 59.5

Forward-Looking Statements

This earnings release and the associated conference call and webcast, which includes a business update, fourth quarter and full year 2011 results, and question and answer session, 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", "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 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. The risks that could cause actual results to differ from current expectations include: changes in government priorities, funding levels, contracts and regulations; failure of third parties and subcontractors to complete contracts for which the Company is the prime contractor; risks of performance on firm fixed price construction contracts; changes in estimates of total revenues and costs on contracts; potential for product liability or the occurrence of defects in software and other products and resulting loss of revenue and loss of the Company's reputation; quality issues and failure of systems to meet performance requirements; failure of the Company to manage its acquisitions and breaches of contracts and indemnities and related risks on divestitures; satellite failure; dependence on electronic systems and 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 market positions; significant competition; 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; failure of counterparties in financing arrangements and financial derivative contracts; wrongful call on letters of credit and performance bonds; and insufficient insurance against material claims or losses.

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, or 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 this release.

SOURCE MacDonald, Dettwiler and Associates Ltd.

For further information:

Wendy Keyzer
MDA External Relations
(604) 231-2743


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