Vancouver, BC-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, 2016.

For the full year 2016, consolidated revenues were $2.1 billion, operating EBITDA¹ was $370.7 million and operating earnings¹ were $211.0 million or $5.78 per share¹. This is comparable with fiscal year 2015, with consolidated revenues of $2.1 billion, operating EBITDA of $376.8 million and operating earnings of $221.1 million or $6.08 per share. Net earnings under IFRS for the full year 2016 were $139.6 million, consistent with $142.8 million for 2015.

For the fourth quarter of 2016, consolidated revenues were $502.9 million compared to $544.3 million for the same period of 2015. Revenues for the fourth quarter of 2016 decreased in the Communications segment because of lower geostationary communications satellite bookings over the past two years, and in the Surveillance and Intelligence segment due to lower pass-through revenues.

Operating EBITDA for the fourth quarter of 2016 was $92.9 million compared to $94.8 million for the same period of 2015, and operating earnings were $51.7 million, or $1.42 per share, compared to $54.9 million, or $1.51 per share, for the same period of last year.

The decrease in operating earnings, year over year and quarter over quarter, is due to increased corporate expenses relating to the Company's U.S. government access plan as well as higher interest expense attributed to the securitization of orbital receivables.

Net earnings under IFRS for the fourth quarter of 2016 were $31.9 million compared to $5.8 million for the corresponding period of 2015.

The Company ended the year with a total funded order backlog of $2.4 billion.

The Company has made substantive progress on its U.S. government access plan. On January 26, 2017, the Security Control Agreement with the U.S. Department of Defense was executed.

The Company has declared a quarterly dividend of $0.37 per common share payable on March 31, 2017 to shareholders of record at the close of business on March 15, 2017.

Financial Highlights

MDA's audited consolidated financial statements and management's discussion and analysis (MD&A) for the year ended December 31, 2016 are available at:
http://www.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, February 24, 2017 at 5:30 a.m. Pacific (8:30 a.m. Eastern) to discuss the financial results and to answer questions.

To participate, dial:

Toll free North America: 1-855-212-2368
International: 1-315-625-6886
Conference ID: 74632653

Related Websites
www.mdacorporation.com

Non-IFRS Financial Measures

In addition to results reported in accordance with IFRS, the Company discloses operating earnings, operating earnings per share and operating EBITDA 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 the substantively enacted income 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.

The Company defines operating EBITDA as earnings before interest, taxes, depreciation and amortization, and adjusted for certain corporate expenses and items affecting comparability as specified in the calculation of operating earnings. Operating EBITDA is presented on a basis consistent with the Company's internal management reports. The Company discloses operating EBITDA to capture the profitability of its business before the impact of items not considered in management's evaluation of operating unit performance.

Operating earnings, operating earnings per share and operating EBITDA 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 year ended December 31, 2016 provides additional information regarding these financial metrics and the specified items affecting the comparability of net earnings.

Forward-Looking Statements
This earnings release and the associated conference call and webcast, which includes a business update, discussion of fourth quarter and full year 2016 financial results, and question and answer session, may contain certain forward-looking statements and information, which reflect the current view of MacDonald, Dettwiler and Associates Ltd. ("MDA" or the "Company") 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", "would", "could", "should", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of such terms or variations of them or similar terminology. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and represent management's best judgment based on facts and assumptions that management considers reasonable.

Any such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from current expectations. MDA cautions readers that should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. The risks that could cause actual results to differ materially from current expectations include, but are not limited to: the Company's ability to generate a sustainable order rate for its satellite manufacturing operations in a market where the number of satellite construction contracts awarded varies annually; changes in government policies, priorities, regulations or government agency mandates, or funding levels through agency budget reductions, the imposition of budgetary constraints or a decline in government support or deferment of funding for programs in which the Company or its customers participate; the Company's ability to effectively execute its U.S. government access plan and realize anticipated benefits of contract awards from the U.S. government and failure by the Company to comply with U.S. regulations could result in penalties or suspension; certain U.S. subsidiaries of the Company are subject to the requirements of the National Industrial Security Program Operating Manual for their facility security clearance, which is a prerequisite for their ability to obtain and perform on classified contracts for the U.S. government; quality issues, failure of systems to meet performance requirements, potential for product liability, or the occurrence of defects in products or systems could result in lost revenue and harm to the Company's reputation; failure to anticipate changes in technology, technical standards and offerings or comply with the requisite standards, or failure to maintain technological advances and offer new products to retain customers and market position; significant competition with competitors that are larger or have greater resources, and where foreign currency fluctuations may increase competition from the Company's non-United States competitors; changes in regulations, telecommunication standards and laws in the countries in which the Company conducts business; export restrictions or the inability to obtain export approvals; failure to obtain necessary regulatory approvals and licenses, including those required by the United States government; a competitive advantage for competitors not subject to the same level of export control or economic sanctions laws and regulations faced by the Company; exposure to fines and/or legal penalties under Canadian securities regulations; exposure to fines and/or legal sanctions under anti-corruption laws; the Company's ability to attract and retain qualified personnel; reliance on information technology systems and threats of disruption from security breaches and cyber-attacks; the Company's ability to receive satellite imagery, including from third parties for resale and performance issues on the Company's on-orbit satellite; potential infringement of the intellectual property rights of others and inadequate protection of the Company's intellectual property rights; failure to identify, acquire, obtain the required regulatory approvals, or profitably manage additional businesses or successfully integrate any acquired businesses, products or technologies into the Company without substantial expenses, delays or other operational, regulatory, or financial problems; the Company's ability to obtain certain satellite construction contracts depends, in part, on its ability to provide the customer with partial financing of working capital and any financing provided by the Company may not be repaid or the Company may be called upon to make payments; uncertainty in financing arrangements and failure to obtain required financing on acceptable terms, or credit agreements may contain restrictive covenants which may be limiting; risks inherent with performance on fixed price contracts, particularly the ability to contain cost overruns and schedule delays; certain customers are highly leveraged and may not fulfil their contractual payment obligations, including vendor financing; the risk that the Company will not be able to access export credit financing to facilitate the sale of the Company's communication satellites and other products to non-Canadian and non-United States customers; exposure to foreign currency fluctuations; natural disasters or other disruptions affecting the Company's operations; and failure to comply with environmental regulations.

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 on SEDAR,www.sedar.comorwww.mdacorporation.com. The forward-looking statements and information contained in this earnings release and the associated 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 because 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.

The Toronto Stock Exchange has neither approved nor disapproved the form or content of the earnings release or the associated conference call and webcast.