- Q2 2024 Highlights
- Record backlog of $4.6 billion
at quarter-end, up 318% YoY
- Strong top line growth with revenues of $242.0 million, up 23% YoY
- Solid profitability with adjusted EBITDA1 of
$48.7 million, up 21% YoY, and
adjusted EBITDA margin1 of 20.1%
- Strong operating cash flow of $149.0
million and healthy balance sheet with net debt to adjusted
EBITDA1 ratio of 2.0x
- Solid adjusted net income1 of $23.4 million, up 7% YoY, and adjusted diluted
earnings per share1 of $0.19, up 6% YoY
- Updated 2024 full-year financial outlook
- Raised revenue guidance, narrowed guidance for adjusted
EBITDA and capex
- Positive free cash flow1 expected in 2024, one
year ahead of plan
BRAMPTON, ON, Aug. 8, 2024
/PRNewswire/ - MDA Space Ltd. (TSX: MDA), a trusted space mission
partner to the rapidly expanding global space industry, today
announced its financial results for the second quarter ended
June 30, 2024.
"The MDA Space team delivered a solid Q2 driven by strong
execution as we continued to convert our backlog and deliver on our
customer commitments," said Mike
Greenley, Chief Executive Officer of MDA Space. "With robust
momentum in our end-markets, we also continue to grow our backlog,
which at quarter-end stood at a record $4.6
billion. Notable awards in Q2 included a $1 billion contract from the Canadian Space
Agency for the next phases of the Canadarm3 program that will see
us finalizing the design and carrying out the construction of the
robotic system and ground control segment."
"During the quarter we also continued to advance the
manufacturing of MDA CHORUS™, our next generation Earth Observation
constellation. We unveiled additional features including a new
vessel detection onboard processing demonstration capability to
enable future rapid delivery of data and actionable insights for
maritime customers," continued Mr. Greenley.
"Our teams were also busy advancing a number of programs
including Telesat Lightspeed where MDA Space is the prime
contractor to deliver 198 digital low earth orbit satellites. At
quarter-end, we had approximately 75% of the supplier base for the
program under contract, setting the stage for work volumes to
accelerate in the second half of 2024 consistent with our full year
plan."
"Given strong operational performance year-to-date, we are
updating our 2024 financial guidance and expect to be free cash
flow positive in 2024 as we look to deliver another successful
year."
__________________________________
1 As defined in the "Non-IFRS Financial
Measures" section
|
Q2 2024 HIGHLIGHTS
- Backlog of $4.6 billion at
quarter-end continued to build and was up 318% compared to Q2 2023.
The increase in backlog is driven by new order bookings including
the $1 billion award for Phases C/D
of the Canadarm3 program announced in Q2 2024 and $2.4 billion Telesat Lightspeed LEO constellation
award announced in Q3 2023.
- Revenues of $242.0 million in Q2
2024 were up 23% YoY driven by higher work volumes across our three
business areas, with strong contributions from the Robotics &
Space Operations and Satellite Systems businesses.
- Adjusted EBITDA of $48.7 million
in Q2 2024 compared to $40.4 million
in Q2 2023, representing an increase of $8.3
million (or 21%) YoY. Adjusted EBITDA margin of 20.1% in Q2
2024 is consistent with the Company's full year margin guidance of
19-20% and compares to adjusted EBITDA margin of 20.6% reported in
the second quarter of 2023.
- Adjusted net income for Q2 2024 was $23.4 million compared to $21.9 million in Q2 2023, representing an
increase of $1.5 million (or 7%) YoY
driven by higher operating income. Adjusted diluted earnings per
share of $0.19 in Q2 2024 compared to
$0.18 in Q2 2023.
- Operating cash flow was $149.0
million in Q2 2024 compared to $38.9
million in Q2 2023. The year-over-year increase in operating
cash flow was driven by positive working capital contributions
primarily related to the Telesat Lightspeed program.
- At quarter-end, net debt to adjusted EBITDA ratio was 2.0x
compared to 2.4x as of December 2023
(2.6x as of March 31, 2024) as the
Company utilized its strong operating cash flow in Q2 2024 to make
repayments to its revolving credit facility and deleverage the
balance sheet while continuing to invest in its growth
initiatives.
2024 FINANCIAL OUTLOOK
As a trusted mission partner and leading global space technology
provider, we are leveraging our capabilities and expertise to
execute on targeted growth strategies across our end markets and
business areas. Our strategic initiatives, which span across our
three businesses, include investing in next generation space
technology and services, expanding our presence in high growth
markets and geographies, scaling and expanding skills, talent and
operations to meet current and future market demand and leveraging
strategic M&A to complement organic growth. We continue to make
good progress against our long-term strategic plan.
MDA Space is well positioned to capitalize on strong customer
demand and robust market activity given our diverse and proven
technology offerings. Our growth pipeline is significant and
underpinned by existing and new programs and our book of business
is healthy. We see activities ramping up in line with our
expectations and are encouraged by the team's solid execution.
For fiscal 2024, we are raising our full year revenue guidance
to $1,020 – $1,060 million from $950 – $1,050
million previously, representing robust year-over-year
growth of approximately 30% at the mid-point of guidance compared
to 2023 levels. We continue to expect revenue growth to accelerate
in the second half of 2024 as we ramp up work volumes on a number
of programs. We are narrowing our 2024 adjusted EBITDA guidance to
$200 – $210
million from $190 –
$210 million previously, representing
approximately 19% – 20% adjusted EBITDA margin. We are narrowing
our 2024 capital expenditures range to $200 – $220 million
from $210 – $230 million previously, comprising primarily of
growth investments to support CHORUS and the previously outlined
growth initiatives across our three business areas. Additionally,
as a result of favourable working capital contributions related to
the Telesat Lightspeed program, we now expect to generate free cash
flow and continue to deleverage our balance sheet in 2024.
For Q3 2024, we expect revenues to be $270 – $280 million
as we continue to execute on our backlog.
FINANCIAL OVERVIEW
KEY INDICATORS SUMMARY
|
Second Quarters
Ended
|
Six Months
Ended
|
(in millions of
Canadian dollars,
except per share data)
|
June 30,
2024
|
June 30,
2023
|
June 30,
2024
|
June 30,
2023
|
Revenues
|
$
|
242.0
|
$
|
196.0
|
$
|
451.1
|
$
|
397.9
|
Gross profit
|
$
|
66.2
|
$
|
61.3
|
$
|
124.1
|
$
|
128.5
|
Gross margin
|
27.4 %
|
31.3 %
|
27.5 %
|
32.3 %
|
Adjusted
EBITDA[2]
|
$
|
48.7
|
$
|
40.4
|
$
|
90.7
|
$
|
89.3
|
Adjusted EBITDA
margin2
|
20.1 %
|
20.6 %
|
20.1 %
|
22.4 %
|
Adjusted Net
Income2
|
$
|
23.4
|
$
|
21.9
|
$
|
41.9
|
$
|
48.3
|
Adjusted Diluted
EPS2
|
$
|
0.19
|
$
|
0.18
|
$
|
0.34
|
$
|
0.40
|
|
As at
|
(in millions of
Canadian dollars, except for ratios)
|
June 30,
2024
|
December 31,
2023
|
Backlog
|
$
|
4,596.0
|
$
|
3,097.0
|
Net debt2 to
Adjusted TTM3 EBITDA ratio
|
|
2.0x
|
|
2.4x
|
REVENUES BY BUSINESS AREA
|
Second Quarters
Ended
|
Six Months
Ended
|
(in millions of
Canadian dollars)
|
June 30,
2024
|
June 30,
2023
|
June 30,
2024
|
June 30,
2023
|
Geointelligence
|
$
|
54.9
|
$
|
47.9
|
$
|
106.4
|
$
|
99.2
|
Robotics & Space
Operations
|
|
78.3
|
|
58.7
|
|
148.6
|
|
121.6
|
Satellite
Systems
|
|
108.8
|
|
89.4
|
|
196.1
|
|
177.1
|
Consolidated
revenues
|
$
|
242.0
|
$
|
196.0
|
$
|
451.1
|
$
|
397.9
|
________________________________ 2 As
defined in the "Non-IFRS Financial Measures"
section 3 TTM: Trailing twelve
months
|
Revenues
Consolidated revenues for the second quarter of 2024 were
$242.0 million, representing an
increase of $46.0 million (or 23.5%)
from the second quarter of 2023. The year-over-year increase in
revenues was driven by higher work volumes across our three
business areas, with strong contributions from our Robotics &
Space Operations and Satellite Systems businesses.
By business area, revenues in Geointelligence for the second
quarter of 2024 were $54.9 million,
which represents an increase of $7.0
million (or 14.6%) from the same period in 2023 reflecting
higher work volume on the CSC program. Revenues in Robotics &
Space Operations for the second quarter of 2024 were $78.3 million, which represents an increase of
$19.6 million (or 33.4%) from the
same period in 2023. The year-over-year increase is primarily
driven by higher volume of work performed on the Canadarm3 program.
Revenues in Satellite Systems for the second quarter of 2024 were
$108.8 million, which represents an
increase of $19.4 million (or 21.7%)
from the same period in 2023 driven by higher contributions from
new programs including Telesat Lightspeed in Q2 2024.
Consolidated revenues for the six months ended June 30, 2024 were $451.1
million, representing an increase of $53.2 million (or 13.4%) from the same period of
2023. The year-over-year increase in revenues was primarily driven
by increased volume from our Robotics & Space Operations and
Satellite Systems businesses.
By business area, revenues in Geointelligence for the first six
months of 2024 were $106.4 million,
which represents an increase of $7.2
million (or 7.3%) from the same period in 2023 reflecting
higher work volume on the CSC program. Revenues in Robotics &
Space Operations for the first six months of 2024 were $148.6 million, which represents an increase of
$27.0 million (or 22.2%) from the
same period in 2023. The year-over-year increase is primarily
driven by the higher volume of work performed on the Canadarm3
program. Revenues in Satellite Systems for the first six months of
2024 were $196.1 million, which
represents an increase of $19.0
million (or 10.7%) from the same period in 2023 driven by
higher contributions from new programs including the Telesat
Lightspeed program.
Gross Profit and Gross Margin
Gross profit reflects our revenues less cost of revenues. Q2
2024 gross profit of $66.2 million
represents a $4.9 million (or 8.0%)
increase over Q2 2023 driven by higher work volume in the current
quarter. Gross margin in Q2 2024 was 27.4%, which is in line with
the Company's expectations and compares to gross margin of 31.3% in
Q2 2023. The year- over-year change in gross margin is driven by
evolving program mix and higher depreciation expense as new assets
come into service.
For the six months ended June 30,
2024, gross profit of $124.1
million represents a $4.4
million (or 3.4%) decrease over 2023 levels. Gross margin
for the six months ended June 30,
2024 was 27.5% which is in line with the Company's
expectations and compares to 32.3% in Q2 2023. The year-over-year
change in gross profit and gross margin metrics is driven by
evolving program mix and higher depreciation expense as new assets
come into service.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA for the second quarter of 2024 was $48.7 million compared with $40.4 million for the second quarter of 2023,
representing an increase of $8.3
million (or 20.5%) year-over-year driven by higher volume of
work and steady operating expenses. Adjusted EBITDA margin of 20.1%
for the second quarter of 2024 is consistent with the Company's
full year margin guidance of 19-20% and compares to adjusted EBITDA
margin of 20.6% reported in the second quarter of 2023.
Adjusted EBITDA for the six months ended June 30, 2024 was $90.7
million compared with $89.3
million for the same period in 2023, representing an
increase of $1.4 million (or 1.6%)
year-over-year. The improvement was driven by higher volumes of
work performed year-over-year somewhat offset by program mix.
Adjusted EBITDA margin was 20.1% for the six months ended
June 30, 2024 compared with 22.4% in
2023.
Adjusted Net Income
Adjusted net income for the second quarter of 2024 was
$23.4 million compared with
$21.9 million for the second quarter
of 2023, representing an increase of $1.5
million (or 6.8%) year-over-year driven by higher operating
income in the latest quarter.
Adjusted net income for the six months ended June 30, 2024 was $41.9
million compared with $48.3
million for the same period in 2023, representing a decrease
of $6.4 million (or 13.3%)
year-over-year driven by the aforementioned gross profit
variance.
Backlog
Backlog is comprised of our remaining performance obligations
which represent the transaction price of firm orders less inception
to date revenue recognized and excludes unexercised contract
options and indefinite delivery or indefinite quantity contracts.
Backlog as at June 30, 2024 was $4,596.0 million, an increase of $3,497.7 million compared with the backlog at
June 30, 2023 driven by new order
bookings, partially offset by continued conversion of our backlog
into revenue. The following table shows the build up of backlog for
Q2 2024 as compared with the same period in 2023.
|
Second Quarters
Ended
|
Six Months
Ended
|
(in millions of
Canadian dollars)
|
June 30,
2024
|
June 30,
2023
|
June 30,
2024
|
June 30,
2023
|
Opening
Backlog
|
$
|
3,312.2
|
$
|
1,232.4
|
$
|
3,097.0
|
$
|
1,378.2
|
Less: Revenue
recognized
|
|
(242.0)
|
|
(196.0)
|
|
(451.1)
|
|
(397.9)
|
Add: Order
Bookings
|
|
1,525.8
|
|
61.9
|
|
1,950.1
|
|
118.0
|
Ending
Backlog
|
$
|
4,596.0
|
$
|
1,098.3
|
$
|
4,596.0
|
$
|
1,098.3
|
CONFERENCE CALL AND WEBCAST
MDA will host a conference call and webcast to discuss these
financial results on Thursday, August
8, 2024 at 8:30 a.m. ET.
Interested parties can join the call by dialing 416-764-8609
(Toronto area) or 1-888-390-0605
(toll-free North America) or
+44-800-652-2435 (toll-free international) and entering the
conference ID 88012706. A live webcast of the conference call and
an accompanying slide presentation will be available at
https://mda-en.investorroom.com/events-presentations.
A replay of the conference will be archived on the MDA website
following the call. Parties may also access a recording of the call
which will be available until August 15,
2024, by dialing 1-888-390-0541 and entering the passcode
12706 #.
NON-IFRS FINANCIAL MEASURES
This press release refers to certain non-IFRS measures. These
measures are not recognized measures under IFRS, do not have a
standardized meaning prescribed by IFRS and therefore may not be
comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding
of our results of operations from management's perspective.
Accordingly, the measures should not be considered in isolation nor
as a substitute for analysis of our financial information reported
under IFRS. We use non-IFRS measures, including EBITDA, Adjusted
EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted
Earnings per Share, Order Bookings, Net Debt and Free Cash Flow, to
provide investors with supplemental measures of our operating
performance and thus highlight trends in our core business that may
not otherwise be apparent when relying solely on IFRS measures. We
define EBITDA as net income (loss) before: i) depreciation and
amortization expenses, ii) provision for (recovery of) income
taxes, and iii) finance costs. Adjusted EBITDA is calculated by
adding to and deducting from EBITDA, 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 gain or loss ii) unrealized gain or loss on financial
instruments and iii) share-based compensation expenses, and iv)
other items that may arise from time to time. Adjusted EBITDA
margin represents Adjusted EBITDA divided by revenue. Order
Bookings is the dollar sum of contract values of firm customer
contracts. Adjusted Net Income is calculated by adding to and
deducting from net income, 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) amortization of intangible assets related to
business combinations, ii) unrealized foreign exchange gain or
loss, iii) unrealized gain or loss on financial instruments, and
iv) share-based compensation expenses, and iv) other items that may
arise from time to time. Adjusted Earnings per Share represents
Adjusted Net Income divided by the weighted average number of
shares outstanding. Order Bookings is indicative of firm future
revenues; however, it does not provide a guarantee of future net
income and provides no information about the timing of future
revenue. Net Debt is the total carrying amount of long-term debt
including current portions, as presented in the Q2 2024 Financial
Statements, less cash (or plus bank indebtedness) and excluding any
lease liabilities. Net Debt is a liquidity metric used to determine
how well the Company can pay all of its debts if they were due
immediately. Free Cash Flow is a supplemental measure used to
monitor the availability of discretionary cash generated, and
available to the Company to repay debt, make strategic investments,
and meet other payment obligations. We define Free Cash Flow as
operating cash flows less net capital expenditures.
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 the factors
discussed under "Risk Factors" in the Company's Annual Information
Form (AIF) dated February 28, 2024
and available on SEDAR+ at www.sedarplus.com. MDA Space 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.
ABOUT MDA SPACE
Building the space between proven and possible, MDA Space
(TSX: MDA) is a trusted mission partner to the global space
industry. A robotics, satellite systems and geointelligence pioneer
with a 55-year+ story of world firsts and more than 450 missions,
MDA Space is a global leader in communications satellites, Earth
and space observation, and space exploration and infrastructure.
The MDA Space team of more than 3,000 space experts in Canada, the US and the UK has the knowledge
and know-how to turn an audacious customer vision into an
achievable mission – bringing to bear a one-of-a-kind mix of
experience, engineering excellence and wide-eyed wonder that's been
in our DNA since day one. For those who dream big and push
boundaries on the ground and in the stars to change the world for
the better, we'll take you there. For more information, visit
www.mda.space.
MDA Space Ltd.
Unaudited Interim Condensed Statement of Comprehensive Income
For the three and six months ended June 30,
2024 and 2023
(In millions of Canadian dollars except per share
figures)
|
|
Three months
ended June 30,
|
Three months
ended June 30,
|
Six months
ended June 30,
|
Six months
ended June 30,
|
|
|
2024
|
2023
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
242.0
|
$
|
196.0
|
$
|
451.1
|
$
|
397.9
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
Materials, labour and
subcontractors
|
|
|
(164.9)
|
|
(127.7)
|
|
(305.6)
|
|
(255.8)
|
Depreciation and
amortization of assets
|
|
(10.9)
|
|
(7.0)
|
|
(21.4)
|
|
(13.6)
|
Gross
profit
|
|
|
66.2
|
|
61.3
|
|
124.1
|
|
128.5
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
|
|
(20.6)
|
|
(17.8)
|
|
(39.5)
|
|
(34.4)
|
Research and
development, net
|
|
|
(8.8)
|
|
(10.3)
|
|
(17.8)
|
|
(20.4)
|
Amortization of
intangible assets
|
|
|
(11.6)
|
|
(11.0)
|
|
(23.9)
|
|
(23.8)
|
Share-based
compensation
|
|
|
(3.1)
|
|
(2.9)
|
|
(5.6)
|
|
(4.1)
|
Operating
income
|
|
|
22.1
|
|
19.3
|
|
37.3
|
|
45.8
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss)
on financial
instruments
|
|
|
0.3
|
|
(0.6)
|
|
1.2
|
|
(1.1)
|
Foreign exchange gain
(loss)
|
|
|
(0.8)
|
|
(1.8)
|
|
1.5
|
|
(1.4)
|
Finance
income
|
|
|
0.7
|
|
0.3
|
|
1.4
|
|
0.3
|
Finance
costs
|
|
|
(7.9)
|
|
(2.4)
|
|
(14.0)
|
|
(4.6)
|
Other income
|
|
|
0.1
|
|
—
|
|
6.6
|
|
—
|
Income before income
taxes
|
|
14.5
|
|
14.8
|
|
34.0
|
|
39.0
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(3.5)
|
|
(4.9)
|
|
(9.2)
|
|
(13.0)
|
Net
income
|
|
|
11.0
|
|
9.9
|
|
24.8
|
|
26.0
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
Gain (loss) on
translation of foreign
operations
|
|
1.0
|
|
(0.1)
|
|
(0.2)
|
|
(0.3)
|
Gain (loss) on cash
flow hedges
|
|
|
(0.7)
|
|
3.6
|
|
1.9
|
|
1.9
|
Remeasurement gain
(loss) on defined
benefit plans
|
|
|
(8.9)
|
|
—
|
|
(0.6)
|
|
1.7
|
Total comprehensive
income
|
$
|
2.4
|
$
|
13.4
|
$
|
25.9
|
$
|
29.3
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
$
|
0.08
|
$
|
0.21
|
$
|
0.22
|
Diluted
|
|
|
0.09
|
|
0.08
|
|
0.20
|
|
0.22
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
120,058,063
|
119,168,507
|
119,756,782
|
119,121,502
|
Diluted
|
|
123,516,192
|
120,254,778
|
123,271,143
|
119,837,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MDA Space Ltd.
Unaudited Interim Condensed Statement of Financial Position
June 30, 2024
(In millions of Canadian dollars)
As at
|
|
June 30,
2024
|
December 31,
2023
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash
|
|
|
$
|
46.4
|
|
$
|
22.5
|
Trade and other
receivables
|
|
|
|
119.4
|
|
|
169.5
|
Unbilled
receivables
|
|
|
|
297.1
|
|
|
183.1
|
Inventories
|
|
|
|
10.2
|
|
|
9.9
|
Income taxes
receivable
|
|
|
|
57.4
|
|
|
47.3
|
Other current
assets
|
|
|
|
56.0
|
|
|
24.3
|
|
|
|
|
586.5
|
|
|
456.6
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
412.9
|
|
|
369.1
|
Right-of-use
assets
|
|
|
|
87.4
|
|
|
71.8
|
Intangible
assets
|
|
|
|
577.7
|
|
|
582.5
|
Goodwill
|
|
|
|
440.3
|
|
|
439.8
|
Deferred income tax
assets
|
|
|
|
14.4
|
|
|
14.9
|
Other non-current
assets
|
|
|
|
260.2
|
|
|
227.0
|
Total
assets
|
|
|
$
|
2,379.4
|
|
$
|
2,161.7
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
|
$
|
215.6
|
|
$
|
219.1
|
Income taxes
payable
|
|
|
|
3.5
|
|
|
4.4
|
Contract
liabilities
|
|
|
|
300.4
|
|
|
76.9
|
Current portion of net
employee benefit payable
|
|
|
|
48.6
|
|
|
57.4
|
Current portion of
lease liabilities
|
|
|
|
12.9
|
|
|
10.9
|
Other current
liabilities
|
|
|
|
3.5
|
|
|
4.5
|
|
|
|
|
584.5
|
|
|
373.2
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Net employee defined
benefit payable
|
|
|
|
22.0
|
|
|
22.8
|
Lease
liabilities
|
|
|
|
91.0
|
|
|
75.2
|
Long-term
debt
|
|
|
|
398.7
|
|
|
438.9
|
Deferred income tax
liabilities
|
|
|
|
182.1
|
|
|
180.8
|
Other non-current
liabilities
|
|
|
|
3.6
|
|
|
6.1
|
Total
liabilities
|
|
|
|
1,281.9
|
|
|
1,097.0
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Common
shares
|
|
|
|
960.5
|
|
|
956.1
|
Contributed
surplus
|
|
|
|
33.8
|
|
|
31.3
|
Accumulated other
comprehensive income
|
|
|
|
19.7
|
|
|
18.6
|
Retained
earnings
|
|
|
|
83.5
|
|
|
58.7
|
Total
equity
|
|
|
|
1,097.5
|
|
|
1,064.7
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
|
$
|
2,379.4
|
|
$
|
2,161.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MDA Space Ltd.
Unaudited Interim Condensed
Consolidated Statement of Cash Flows
For the three and six months ended June 30,
2024 and 2023
(In millions of Canadian dollars)
|
|
Three months
ended June 30,
|
Three months
ended June 30,
|
Six months
ended June 30,
|
Six months
ended June 30,
|
|
|
2024
|
2023
|
2024
|
2023
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
11.0
|
$
|
9.9
|
$
|
24.8
|
$
|
26.0
|
|
Items not affecting
cash:
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
3.5
|
|
4.9
|
|
9.2
|
|
13.0
|
|
Depreciation of
property, plant and equipment
|
|
|
5.9
|
|
3.1
|
|
10.1
|
|
5.9
|
|
Depreciation of
right-of-use assets
|
|
|
2.2
|
|
2.3
|
|
5.7
|
|
4.3
|
|
Amortization of
intangible assets
|
|
|
14.4
|
|
12.6
|
|
29.5
|
|
27.2
|
|
Gain on disposal of
assets
|
|
|
—
|
|
—
|
|
(5.8)
|
|
—
|
|
Share-based
compensation expense
|
|
|
3.0
|
|
2.9
|
|
5.5
|
|
4.1
|
|
Investment tax credits
accrued
|
|
|
(11.0)
|
|
(5.6)
|
|
(19.2)
|
|
(12.7)
|
|
Finance costs,
net
|
|
|
7.2
|
|
2.1
|
|
12.6
|
|
4.3
|
|
Unrealized (gain) loss
on financial instruments
|
|
(0.3)
|
|
0.6
|
|
(1.2)
|
|
1.1
|
|
Changes in operating
assets and liabilities
|
|
|
117.6
|
|
12.0
|
|
114.7
|
|
21.1
|
|
|
|
|
153.5
|
|
44.8
|
|
185.9
|
|
94.3
|
|
Interest
paid
|
|
|
(4.4)
|
|
(4.0)
|
|
(12.5)
|
|
(8.0)
|
|
Income tax received
(paid)
|
|
|
(0.1)
|
|
(1.9)
|
|
0.3
|
|
(1.6)
|
|
Net cash from
operating activities
|
|
|
149.0
|
|
38.9
|
|
173.7
|
|
84.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(22.6)
|
|
(33.9)
|
|
(49.6)
|
|
(63.6)
|
|
Purchase/development
of intangible assets
|
|
|
(16.3)
|
|
(11.8)
|
|
(29.5)
|
|
(22.6)
|
|
Proceeds from disposal
of assets
|
|
|
—
|
|
—
|
|
7.4
|
|
—
|
|
Investment in equity
securities
|
|
|
(9.2)
|
|
—
|
|
(9.2)
|
|
—
|
|
Acquisition of
subsidiary, net of cash
|
|
|
(11.7)
|
|
—
|
|
(23.3)
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(59.8)
|
|
(45.7)
|
|
(104.2)
|
|
(86.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
Borrowings from
senior credit facility
|
|
|
(70.0)
|
|
(20.0)
|
|
(40.0)
|
|
5.0
|
|
Payment of lease
liability (principal portion)
|
|
|
(1.4)
|
|
(2.0)
|
|
(4.5)
|
|
(3.9)
|
|
Proceeds from
stock options exercised
|
|
|
—
|
|
—
|
|
0.8
|
|
0.4
|
|
Net cash provided by
financing activities
|
|
|
(71.4)
|
|
(22.0)
|
|
(43.7)
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in
cash
|
|
|
17.8
|
|
(28.8)
|
|
25.8
|
|
—
|
|
Net foreign exchange
differences on cash
|
|
|
(0.7)
|
|
(0.1)
|
|
(1.9)
|
|
(0.3)
|
|
Cash, beginning of
period
|
|
|
29.3
|
|
67.9
|
|
22.5
|
|
39.3
|
|
Cash, end of
period
|
|
$
|
46.4
|
$
|
39.0
|
$
|
46.4
|
$
|
39.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-IFRS MEASURES
The following tables provide a reconciliation of net income to
EBITDA, adjusted EBITDA, and adjusted net income:
|
Second Quarters
Ended
|
Six Months
Ended
|
(in millions of
Canadian dollars)
|
June 30,
2024
|
June 30,
2023
|
June 30,
2024
|
June 30,
2023
|
Net income
|
$
|
11.0
|
$
|
9.9
|
$
|
24.8
|
$
|
26.0
|
Depreciation and
amortization of
assets
|
|
10.9
|
|
7.0
|
|
21.4
|
|
13.6
|
Amortization of
intangible assets
related to business combination
|
|
11.6
|
|
11.0
|
|
23.9
|
|
23.8
|
Income tax
expense
|
|
3.5
|
|
4.9
|
|
9.2
|
|
13.0
|
Finance
income
|
|
(0.7)
|
|
(0.3)
|
|
(1.4)
|
|
(0.3)
|
Finance
costs
|
|
7.9
|
|
2.4
|
|
14.0
|
|
4.6
|
EBITDA
|
$
|
44.2
|
$
|
34.9
|
$
|
91.9
|
$
|
80.7
|
Unrealized foreign
exchange loss (gain)
|
|
1.8
|
|
2.0
|
|
0.3
|
|
3.4
|
Unrealized (gain) loss
on financial
instruments
|
|
(0.3)
|
|
0.6
|
|
(1.2)
|
|
1.1
|
Gain on disposal of
assets
|
|
—
|
|
—
|
|
(5.8)
|
|
—
|
Share-based
compensation
|
|
3.0
|
|
2.9
|
|
5.5
|
|
4.1
|
Adjusted
EBITDA
|
$
|
48.7
|
$
|
40.4
|
$
|
90.7
|
$
|
89.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarters
Ended
|
Six Months
Ended
|
|
(in millions of
Canadian dollars)
|
June 30,
2024
|
June 30,
2023
|
June 30,
2024
|
June 30,
2023
|
|
Net Income
|
|
$
11.0
|
|
$
9.9
|
|
$
24.8
|
|
$
26.0
|
|
Amortization of
intangible
assets related to business
combination
|
|
11.6
|
|
11.0
|
|
23.9
|
|
23.8
|
|
Gain on disposal of
assets
|
|
—
|
|
—
|
|
(5.8)
|
|
—
|
|
Unrealized (gain) loss
on
financial instruments
|
|
(0.3)
|
|
0.6
|
|
(1.2)
|
|
1.1
|
|
Net foreign exchange
(gain)
loss
|
|
0.8
|
|
1.8
|
|
(1.5)
|
|
1.4
|
|
Embedded derivative
effects
|
|
1.3
|
|
—
|
|
1.7
|
|
—
|
|
Share-based
compensation
|
|
3.0
|
|
2.9
|
|
5.5
|
|
4.1
|
|
Income taxes related
to the
above items
|
|
(4.0)
|
|
(4.3)
|
|
(5.5)
|
|
(8.1)
|
|
Adjusted Net
income
|
|
$
23.4
|
|
$
21.9
|
|
$
41.9
|
|
$
48.3
|
|
Weighted average
number of
shares outstanding - diluted
|
123,516,192
|
120,254,778
|
123,271,143
|
119,837,462
|
|
Adjusted earnings per
share -
diluted
|
|
$
0.19
|
|
$
0.18
|
|
$
0.34
|
|
$
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/mda-space-reports-second-quarter-2024-results-302217427.html
SOURCE MDA Space