MDA reports third quarter 2009 results

RICHMOND , BC, Oct. 28 /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, 2009 . MDA posted net earnings of $29 million , or 70 cents per diluted share. This is compared to net earnings of $242,000 , or one cent per diluted share, for the same period of last year.

    
    Summary of consolidated results
    -------------------------------------------------------------------------
                                                               YTD       YTD
                                       Q3-2009   Q3-2008   Q3-2009   Q3-2008
    -------------------------------------------------------------------------
    ($ thousands, except per
     common share amounts)

    Consolidated revenues              245,600   278,282   763,364   890,164

    Net earnings                        28,509       242    78,217    39,740
    Net earnings per common share,
     basic                                0.70      0.01      1.93      0.99
    Net earnings per common share,
     diluted                              0.70      0.01      1.93      0.98

    Adjusted net earnings(1)            27,822    20,115    80,168    71,279
    Adjusted net earnings per common
     share, basic                         0.69      0.50      1.98      1.77
    Adjusted net earnings per common
     share, diluted                       0.68      0.50      1.97      1.75

    Weighted average number of common
     shares outstanding:
     (thousands)
      Basic                             40,492    40,318    40,454    40,262
      Diluted                           40,697    40,560    40,605    40,733

    Average exchange rates:
      1 US dollar to Canadian dollar     1.097     1.042     1.170     1.019
      1 British pound to Canadian
         dollar                          1.800     1.967     1.798     1.981
    -------------------------------------------------------------------------
    (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 68 cents this quarter from 50 cents for the same period of last year.

Consolidated revenues were $246 million compared to $278 million for the third quarter of 2008. Revenues for the third quarter of 2009 reflect accounting changes to revenue recognition for the Company's property information business in British Columbia and a shift in sales mix towards higher margin, value-added information solutions.

Cash flows from operating activities this quarter increased significantly to $33 million from $15 million for the same period of last year. Total debt, less cash and cash equivalents, was $381 million at September 30, 2009 , down from $410 million at June 30, 2009 and $460 million at December 31, 2008 .

    
    Reconciliation of net earnings to adjusted net earnings

    -------------------------------------------------------------------------
                                                               YTD       YTD
                                       Q3-2009   Q3-2008   Q3-2009   Q3-2008
    -------------------------------------------------------------------------
    ($ thousands)

    Net earnings                        28,509       242    78,217    39,740

    Items affecting comparability:
      Stock-based compensation expense
       (recovery)                        4,792    (1,661)    9,827      (787)
      Fair value loss (gain) on equity
       forward contracts                (5,696)   29,121   (10,914)   38,045
      Restructuring expense                  -     1,278     3,549     1,278
      Costs related to terminated
       divestiture of Information
       Systems and Geospatial Services
       businesses                            -         -         -     4,934
      Tax on items affecting
       comparability                       217    (8,865)     (511)  (11,931)
    -------------------------------------------------------------------------
    Adjusted net earnings               27,822    20,115    80,168    71,279
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

MDA's unaudited consolidated financial statements and management's discussion and analysis for the three and nine months ended September 30, 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.

MDA employs more than 3,200 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 symbolTSX: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 28, 2009 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 1-800-766-6630 in Canada or the United States
    In Toronto, dial 416-695-6616

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

    Telephone replay will be available until November 5, 2009 at the
    following numbers:

    Toll free, International, dial 1-800-408-3053
    In Toronto, dial 416-695-5800
    Pass Code 8412131
    

Related Websites:

www.mdacorporation.com

Forward-Looking Statements

This earnings release and the associated earnings conference call and webcast 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 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.

%SEDAR: 00014148E

For further information: Wendy Keyzer, MDA External Relations, [phone], [email protected]