- Q1 revenue increased 19.6% or
$20.2 million over Q1 2020 to$123.4 million - Adjusted EBITDA(1) increased 129.6% or
$22.0 million over Q1 2020 to$39.1 million - Backlog(2) increased 21.7% or
$122.5 million over Q4 2020 to$685 million - Selected to provide one of the critical technology sub-systems on Telesat Lightspeed
- Awarded the initial contract for the Canadian Surface Combatant program
- Subsequent to the conclusion of Q1, the Company successfully completed its IPO process raising
$460 million to fund MDA's robust growth agenda including execution of the recently awarded flagship programs – Canadarm3, Canadian Surface Combatant and Telesat Lightspeed
"Q1 2021 shows positive signs with strong financial performance across all three business areas over the same period last year. Our Satellite Systems segment in particular has returned to normal operating levels and that positions us well to deliver on our growth plans," said
Total revenue in the three month period ended
- GeoIntelligence revenue was
$49.0 million in Q1 2021,$4.7 million or 10.6% ahead of Q1 2020, primarily due to an increase in sales of satellite imagery and analytics services. - Robotics and Space Operations revenue was
$34.3 million in Q1 2021,$8.2 million or 31.4% ahead of Q1 2020, primarily due to the new Canadarm3 program and stronger program performance. - Satellite Systems revenue in Q1 2021 was
$40.1 million ,$7.2 million or 21.9% ahead of Q1 2020, primarily due to the ramp up of activities from new contract awards in the back half of 2020.
Gross margin for Q1 2021 was 31.1% compared to 22.5% in Q1 2020. The improvement in gross margin is due to revenue growth in satellite imagery and analytics services sales and newly awarded programs, combined with improved performance on existing programs.
Operating expenses for Q1 2021 were
Net research and development for Q1 2021 was
Adjusted EBITDA for Q1 2021 was
"We are pleased to announce our first set of quarterly results as a newly public company. With our IPO behind us, we are well capitalized to fund our strategic growth initiatives, and we see an increasing pipeline of business opportunities ahead. Our focus continues to be on successful program execution, including the three flagship programs, which will underpin our growth in the next number of years," added
LINKS
www.mda.space
https://mda-en.investorroom.com/
SOCIAL MEDIA
Twitter: www.twitter.com/MDA_space
Facebook: www.facebook.com/MDAspace
LinkedIn: www.linkedin.com/company/mdaspace
YouTube: https://www.youtube.com/c/mdaspace
Instagram: www.instagram.com/MDA_space
NON-IFRS FINANCIAL MEASURES
(1) EBITDA and Adjusted EBITDA
We define EBITDA as net income (loss) before: i) depreciation of property, plant and equipment and amortization of intangible assets, ii) provision for (recovery of) income taxes, and iii) interest expense and financing costs. Adjusted EBITDA is a supplemental measure used by management and other users of our financial statements including our lenders and the investors, to assess the financial performance of our business without regard to financing methods or capital structure.
Adjusted EBITDA is calculated by adding and deducting, as applicable, certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including i) unrealized foreign exchange loss on foreign currency forward contracts ii) unrealized loss on embedded derivatives iii) restructuring costs iv) impairment of investments, and vi) share based compensation.
Adjusted EBITDA as a percentage of revenue represents Adjusted EBITDA divided by revenue.
(2) Backlog
Backlog is the dollar sum of revenue that is expected to be recognized from firm customer contracts. Backlog is indicative of firm future revenue streams; however, it does not provide a guarantee of future net income and provides no information about the timing of future revenue.
ABOUT MDA
Serving the world from its Canadian home and global offices, MDA is an international space mission partner and a robotics, satellite systems and geointelligence pioneer with a 50-year story of firsts on and above the Earth. With over 2,000 employees across
FORWARD-LOOKING STATEMENTS
This press release may contain forward–looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events. Forward–looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward–looking information. Such risks and uncertainties include, but are not limited to, failure to complete the Offering and related transactions, and the factors discussed under "Risk Factors" in the final long form prospectus of the Company. MDA does not undertake any obligation to update such forward–looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Q1 2021 Conference Call
Conference Call Participant Numbers:
+1 (888) 390-0605 | ||
08006522435 | ||
Local ( | +1 (416) 754-8609 | |
Conference ID: | 09429414 |
Conference Call Replay:
+1 (888) 390-0541 | ||
Local: | +1 (416) 764-8677 | |
Passcode: | 429414 |
The conference call replay will be available after the call until
The webcast will also be archived on MDA's website beginning after the call for a period of 90 days.
FINANCIAL HIGHLIGHTS
Reconciliation of net income (loss) to EBITDA([1]) and Adjusted EBITDA(1)
Net loss | $ | (1.6) | $ | (12.3) |
Depreciation and amortization | 5.9 | 6.5 | ||
Amortization of intangible assets | 13.6 | - | ||
Income tax expense (recovery) | $ | 1.2 | $ | (3.7) |
Interest expense | 10.4 | 2.3 | ||
EBITDA(1) | $ | 29.5 | $ | (7.2) |
Unrealized foreign exchange loss | 4.0 | 6.5 | ||
Unrealized loss on embedded derivatives | 2.0 | - | ||
Restructuring costs | - | 0.4 | ||
Impairment | - | 16.4 | ||
Share-based compensation | 3.6 | 1.0 | ||
Adjusted EBITDA(1) | $ | 39.1 | $ | 17.1 |
Adjusted EBITDA(1) as % of revenue | 31.7% | 16.6% |
(1) | As defined above in ""Non-IFRS Financial Measures" |
Unaudited Interim Condensed Consolidated Statement of Operations and Comprehensive Loss
For the three months ended
(In millions of Canadian dollars except per share figures)
Revenue | $ | 123.4 | |
Cost of revenue | |||
Materials, labour and subcontractors | (79.1) | ||
Depreciation and amortization of assets | (5.9) | ||
Gross profit | 38.4 | ||
Operating expenses | |||
Selling, general and administration | (14.1) | ||
Research and development, net | (2.3) | ||
Amortization of intangible assets | (13.6) | ||
Share-based compensation | (3.6) | ||
Operating income | 4.8 | ||
Other income (expenses) | |||
Government grant income | 10.1 | ||
Unrealized loss on embedded derivative asset | (2.0) | ||
Foreign exchange loss | (2.9) | ||
Interest expense | (10.4) | ||
Loss before income taxes | (0.4) | ||
Income tax expense | (1.2) | ||
Net loss | (1.6) | ||
Other comprehensive loss | |||
Exchange differences on translation of foreign operations | (3.3) | ||
Total comprehensive loss | $ | (4.9) | |
Loss per share: | |||
Basic and Diluted | $ | (0.00) | |
Weighted-average common shares outstanding: | |||
Basic and Diluted | 498,809,667 | ||
Unaudited Interim Condensed Consolidated Statement of Financial Position
(In millions of Canadian dollars)
As at | ||||||
Assets | ||||||
Current assets: | ||||||
Cash and equivalents | $ | 90.9 | $ | 78.6 | ||
Trade and other receivables | 184.1 | 158.0 | ||||
Inventories | 6.3 | 6.5 | ||||
Income taxes receivable | 60.5 | 72.4 | ||||
Other current assets | 13.3 | 12.2 | ||||
355.1 | 327.7 | |||||
Non-current assets: | ||||||
Property, plant and equipment | 68.5 | 69.3 | ||||
Right-of-use assets | 20.0 | 22.0 | ||||
Intangible assets | 583.0 | 589.0 | ||||
419.9 | 419.9 | |||||
Deferred income tax assets | 10.6 | 11.2 | ||||
Other non-current assets | 16.2 | 16.1 | ||||
Total assets | $ | 1,473.3 | $ | 1,455.2 | ||
Liabilities and shareholders' equity | ||||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | $ | 68.6 | $ | 65.7 | ||
Income taxes payable | 22.8 | 22.7 | ||||
Contract liabilities | 84.1 | 73.3 | ||||
Provisions | 9.0 | 17.8 | ||||
Current portion of net employee benefit payable | 36.5 | 32.0 | ||||
Current portion of lease liabilities | 7.9 | 7.8 | ||||
Current portion of long-term debt | 21.8 | 22.0 | ||||
Other current liabilities | 0.7 | 1.1 | ||||
251.4 | 242.4 | |||||
Non-current liabilities: | ||||||
Provisions | 1.4 | 1.4 | ||||
Net employee defined benefit payable | 44.6 | 43.6 | ||||
Lease liabilities | 11.4 | 12.7 | ||||
Long-term debt | 529.4 | 537.7 | ||||
Deferred income tax liabilities | 147.0 | 158.7 | ||||
Other non-current liabilities | 1.4 | 1.3 | ||||
Total liabilities | 986.6 | 997.8 | ||||
Shareholders' equity | ||||||
Common shares | 511.0 | 480.4 | ||||
Contributed surplus | 8.5 | 4.9 | ||||
Accumulated other comprehensive loss | (13.9) | (10.6) | ||||
Deficit | (18.9) | (17.3) | ||||
Total equity | 486.7 | 457.4 | ||||
Total liabilities and equity | $ | 1,473.3 | $ | 1,455.2 | ||
Unaudited Interim Condensed Consolidated Statement of Changes in Shareholders' Equity
For the three months ended
(In millions of Canadian dollars)
Common | Contributed | Accumulated | Deficit | Total | |||||||
Number | Amount | ||||||||||
As at | 484,415,948 | $ | 480.4 | $ | 4.9 | $ | (10.6) | $ | (17.3) | $ | 457.4 |
Share capital issued | 30,590,500 | 30.6 | - | - | - | 30.6 | |||||
Net loss | - | - | - | - | (1.6) | (1.6) | |||||
Other comprehensive loss | - | - | - | (3.3) | - | (3.3) | |||||
Share-based compensation | - | - | 3.6 | - | - | 3.6 | |||||
As at | 515,006,448 | $ | 511.0 | $ | 8.5 | $ | (13.9) | $ | (18.9) | $ | 486.7 |
Unaudited Interim Condensed Consolidated Statement of Cash Flows
For the three months ended
(In millions of Canadian dollars)
Cash flows from operating activities | |||
Loss before income taxes | $ | (0.4) | |
Adjustments to reconcile net loss to net cash from operating activities: | |||
Depreciation of property, plant and equipment | 2.3 | ||
Depreciation of right-of-use assets | 2.6 | ||
Amortization of intangible assets | 14.6 | ||
Share-based compensation expense | 3.6 | ||
Investment tax credits accrued during the period | (2.4) | ||
Interest expense | 10.4 | ||
Unrealized loss on embedded derivative asset | 2.0 | ||
Changes in operating assets and liabilities | |||
Trade and other receivables | (29.2) | ||
Inventories | 0.2 | ||
Other assets | (3.2) | ||
Trade and other payables | 2.9 | ||
Contract liabilities | 10.8 | ||
Employee benefits | 5.5 | ||
Provisions | (8.8) | ||
Other liabilities | (0.3) | ||
10.6 | |||
Interest paid | (12.4) | ||
Income tax received | 1.9 | ||
Net cash used in operating activities | 0.1 | ||
Cash flows from investing activities | |||
Purchases of property and equipment | (1.5) | ||
Purchase/development of intangible assets | (8.6) | ||
Net cash used in investing activities | (10.1) | ||
Cash flows from financing activities | |||
Repayments of long-term debt | (5.4) | ||
Payment of lease liability (principal portion of lease liability) | (1.8) | ||
Proceeds from issuance of share capital, net of issuance costs | 30.0 | ||
Net cash provided by financing activities | 22.8 | ||
Net increase in cash and cash equivalents | 12.8 | ||
Net foreign exchange difference | (0.5) | ||
Cash and cash equivalents, beginning of period | 78.6 | ||
Cash and cash equivalents, end of period | $ | 90.9 |
SOURCE
© Canada Newswire, source