Canada: MacDonald, Dettwiler and Associates (MDA) reported its second quarter financial results on Thursday. The consolidated revenues reported for the second quarter were USD 503.7 million, consistent with USD 502.5 million for the same period of last year.
Revenues from the Communications segment were USD 332.4 million compared to USD 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.
Whereas, revenues from the Surveillance and Intelligence segment increased to USD 171.3 million compared to USD 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 EBITDA for the second quarter of 2017 was USD 94.3 million compared to USD 96.4 million for the same period of last year. The Communications segment contributed operating EBITDA of USD 41.1 million (Q2 2016 – USD 56.2 million) and the Surveillance and Intelligence segment contributed operating EBITDA of USD 53.2 million (Q2 2016 – USD 40.3 million).
Operating earnings for the second quarter of 2017 were USD 47.0 million, or USD 1.29 per share, compared to USD 57.2 million, or USD 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 USD 25.8 million, consistent with USD 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 USD 998.1 million compared to USD 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 USD 183.5 million and 18.4% compared to USD 193.6 million and 18.2% for the same period of last year.
Operating earnings were USD 91.9 million (USD 2.52 per share) compared to USD 113.1 million (USD 3.10 per share) for the corresponding period of 2016. Net earnings for the first six months of 2017 were USD 31.7 million compared to USD 66.0 million in 2016.
The company had total funded order backlog of USD 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 USD 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.
