Press Release

MDA Announces Fourth Quarter and Full Year 2014 Results and Dividend Increase

By SpaceRef Editor
February 25, 2015
Filed under , ,
MDA Announces Fourth Quarter and Full Year 2014 Results and Dividend Increase

MacDonald, Dettwiler and Associates Ltd. (“MDA” or the “Company”) (TSX: MDA), a global communications and information company, today reported financial results for the fourth quarter and full year ended December 31, 2014.

The Company announced a 14% increase in the dividend rate for 2015 and changed its dividend policy to pay dividends quarterly instead of semi-annually. A quarterly dividend of $0.37 per share is payable on March 31, 2015 to shareholders of record at the close of business on March 16, 2015.

Consolidated revenues for the fourth quarter of 2014 were $547 million, up from $477 million for the same period of 2013. Operating earnings1 this quarter increased to $54 million, or $1.49 per share1, compared to $48 million, or $1.34 per share, for the same period of last year.

For the full year 2014, consolidated revenues increased to $2.1 billion compared to $1.8 billion for 2013. Operating earnings increased to $208 million ($5.76 per share) from $180 million ($5.13 per share) for 2013.

The Company ended the year with total funded order backlog of $3.1 billion compared to $3.0 billion as at December 31, 2013. The increase reflects solid bookings activity throughout 2014, which included new orders for nine communication satellites.

The Company’s net earnings under IFRS in 2014 were impacted by the inclusion and variability of certain large, non-operational items that affected the comparability of financial results to prior periods. These items included charges related to the settlement of the ViaSat litigation, enterprise improvement costs, and unrealized losses related to share-based compensation awards and certain long-term foreign exchange exposures that are either unhedged or not subject to hedge accounting. Including unusual and non-recurring items, net earnings for 2014 were $47 million.

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

2 On March 27, 2013, the Company completed a public offering of 4,145,750 common shares at a price of $69.40 per share for gross proceeds of $287.7 million

MDA’s audited consolidated financial statements and management’s discussion and analysis (MD&A) for the twelve months ended December 31, 2014 are available at:

About MDA

MDA is a global communications and information company providing operational solutions to commercial and government organizations worldwide.

MDA’s business is focused on markets and customers with strong repeat business potential, primarily in the Communications sector and the Surveillance and Intelligence sector. In addition, the Company conducts a significant amount of advanced technology development.

MDA’s established global customer base is served by more than 4,800 employees operating from 11 locations in the United States, Canada, and internationally.

The Company’s common shares trade on the Toronto Stock Exchange under the symbol MDA.

Investor/Analyst Conference Call

MDA President and CEO Daniel Friedmann and Executive Vice President and CFO Anil Wirasekara will be available on a Conference Call today, February 25, 2015 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 toll free US/Canada: 1-888-390-0546
Toronto: 1-416-764-8688

The Conference Call will also be Webcast live at:

Telephone replay will be available from February 25, 2015 5:00 p.m. (PDT), 8:00 p.m. (EDT) to
March 10, 2015 8:59 p.m. (PDT), 11:59 p.m. (EDT) at the following numbers:

Toll Free US/Canada: 1-888-390-0541
Toronto: 1-416-764-8677
Pass code: 352595#

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 and operating performance.

The Company defines operating earnings as net earnings excluding the impact of specified items affecting comparability, including, where applicable, non-operational income and expenses, amortization of acquisition related intangible assets, share-based compensation, and other gains or losses. The use of the term “non-operational income and expenses” is defined by the Company as those that do not impact operating decisions taken by the Company’s management and is based upon the way the Company’s management evaluates the performance of the Company’s business for use in the Company’s internal management reports. Income tax expense on operating earnings is computed using an estimated annual tax rate, adjusted to account for the specified items affecting comparability. Operating earnings per share is calculated using diluted weighted average shares outstanding and does not represent actual earnings per share attributable to shareholders. The Company believes that the disclosure of operating earnings and operating earnings per share allows investors to evaluate the operational and financial performance of the Company’s ongoing business using the same evaluation measures that its management uses, and is therefore a useful indicator of the Company’s performance or expected performance of recurring operations.

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.

The Company’s MD&A for the twelve months ended December 31, 2014 provides additional information regarding these financial metrics and the specified items affecting the comparability of net earnings.

SpaceRef staff editor.