MDA reports second quarter 2016 results, declares quarterly dividend
MacDonald, Dettwiler and Associates Ltd. (“MDA” or the “Company”) (TSX: MDA), a global communications and information company, today reported financial results for the second quarter ended June 30, 2016.
For the second quarter of 2016, consolidated revenues were $503 million compared with $524 million for the same period of 2015. The decrease reflected the variability in quarterly revenues inherent in long-term construction programs. Operating EBITDA1 increased to $96.4 million compared with $94.6 million for the same period of last year. Margins this quarter increased to 19% compared with 18% for the same period a year ago, attributable to the mix of programs in progress. Operating earnings1 were $57 million, or $1.57 per share1, on par with the same period of last year.
Net earnings under IFRS for the second quarter of 2016 were $25 million compared with $44 million for the corresponding period of 2015. Net earnings this quarter were impacted by the inclusion of a large non-operational, non-recurring item that affected the comparability of financial results to prior period.
The Company had total funded order backlog of $2.5 billion as at June 30, 2016, consistent with the balance at the end of March. The Company continued to advance its position in the low Earth orbit (“LEO”) satellite market with strategic bookings during the quarter. The Company signed a contract with OneWeb Satellites to develop and build communication antenna subsystems for the OneWeb Constellation. In addition, the Company signed contracts with Telesat and an undisclosed customer to build LEO satellites. In the commercial geostationary satellite market, the Company won the only contract that was awarded in the market in the second quarter, signing a contract with Intelsat S.A. to build the Intelsat 39 satellite. In the Surveillance and Intelligence segment, the Company signed a key contract with the Government of Canada to deliver an advanced broad-area maritime and Arctic surveillance solution (Polar Epsilon 2) to the Department of National Defence. This contract includes two years of in-service support to operate and maintain the delivered systems.
The Company continues to make substantive progress in its pursuit to obtain facility security clearance for its operations in Palo Alto, California, which is fundamental to the Company’s U.S. access plan.
The Company has declared a quarterly dividend of $0.37 per common share payable on September 30, 2016 to shareholders of record at the close of business on September 15, 2016.
