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, 2017.
Consolidated revenues for the second quarter of 2017 were $503.7 million, consistent with $502.5 million for the same period of last year. Revenues from the Communications segment were $332.4 million compared to $361.4 million for the same period of last year, as a lower number of new satellite contracts awarded in the geostationary communications satellite market resulted in fewer satellites under construction. Revenues from the Surveillance and Intelligence segment increased to $171.3 million compared to $141.2 million for the second quarter of 2016 on higher revenues from contracts with the U.S. government and other customers to perform design studies and supply spacecraft for scientific research and development missions.
Operating EBITDA1 for the second quarter of 2017 was $94.3 million compared to $96.4 million for the same period of last year. The Communications segment contributed operating EBITDA of $41.1 million (Q2 2016 – $56.2 million) and the Surveillance and Intelligence segment contributed operating EBITDA of $53.2 million (Q2 2016 – $40.3 million).
Operating earnings1 for the second quarter of 2017 were $47.0 million, or $1.29 per share1, compared to $57.2 million, or $1.57 per share, for the second quarter of 2016. The decrease reflected the addition of non-cash interest expense on the orbital securitization liability and a higher effective income tax rate on operating earnings.
Net earnings under IFRS for the second quarter of 2017 were $25.8 million, consistent with $25.3 million for the same period of last year. Net earnings this quarter were impacted by the inclusion and variability of certain large, non-operational items, including share-based compensation expense, restructuring costs, legal and other professional fees related to the acquisition of DigitalGlobe, Inc., and non-cash foreign exchange differences.
For the six months ended June 30, 2017, consolidated revenues were $998.1 million compared to $1,064.9 million for the same period of 2016 as higher activity levels in the Surveillance and Intelligence segment partially offset lower revenues from the Communications segment. Operating EBITDA and related margin percentage was $183.5 million and 18.4% compared to $193.6 million and 18.2% for the same period of last year. Operating earnings were $91.9 million ($2.52 per share) compared to $113.1 million ($3.10 per share) for the corresponding period of 2016. Net earnings for the first six months of 2017 were $31.7 million compared to $66.0 million in 2016.
The Company had total funded order backlog of $2.0 billion as at June 30, 2017, consistent with the balance as at March 31, 2017.
The Company has declared a quarterly dividend of $0.37 per common share payable on September 29, 2017 to shareholders of record at the close of business on September 15, 2017.
The Company continued to build out its government business development and management team to oversee the development of the Company’s strategic plans to increase access to the U.S. government market. During the second quarter of 2017, the Company increased its commitment to support U.S. government missions with the addition of key executives. The Company also received clearance sponsorship and submitted a facility clearance package for the offices of the Company’s subsidiary Space Systems/Loral, LLC in Palo Alto, California.
MDA’s condensed consolidated financial statements and management’s discussion and analysis (MD&A) for the three and six months ended June 30, 2017 are available at:
http://mdacorporation.com/corporate/investor/financial-reports
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 15 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 Howard Lance and Executive Vice President and CFO Anil Wirasekara will host a Conference Call on Friday, July 28, 2017 at 6:00 a.m. Pacific (9:00 a.m. Eastern) to discuss the financial results and to answer questions.
To participate, dial:
International: 1-416-764-8688
Toll free North America: 1-888-390-0546
The Conference Call will also be Webcast live at:
http://mdacorporation.com/corporate/investor/events
Telephone replay will be available from July 28, 2017, 9:00 a.m. Pacific (12:00 p.m. Eastern) to
August 4, 2017, 8:59 p.m. Pacific (11:59 p.m. Eastern) at the following numbers:
International: 1-416-764-8677
Toll free North America: 1-888-390-0541
Passcode: 515418#
Related Websites:
www.mdacorporation.com
