- Q2 2023 Highlights
-
- Strong top line growth with revenues of $196.0 million, up 27% YoY
- Solid profitability with adjusted EBITDA of $40.4 million, up 16% YoY
- Robust adjusted EBITDA margin of 20.6%
- Strong operating cash flow of $38.9
million
- Healthy backlog of $1.1
billion at quarter end
- Subsequent to quarter end, announced approximately
$2.1 billion contract award
from Telesat for prime satellite contractor role on Telesat
Lightspeed LEO constellation
- Raised 2023 full-year financial outlook
BRAMPTON, ON, Aug. 11,
2023 /CNW/ - MDA Ltd. (TSX: MDA), a leading provider
of advanced technology and services to the rapidly expanding global
space industry, today announced its financial results for the
second quarter ended June 30, 2023.
"Q2 marked another strong quarter for MDA with our team
delivering double digit revenue and adjusted EBITDA growth while
maintaining solid profitability, strong operating cash flow
generation and delivering on our customer commitments," said
Mike Greenley, Chief Executive
Officer of MDA. "And this morning we announced that MDA was awarded
an approximately $2.1 billion
contract from Telesat to act as the prime satellite contractor on
the Telesat Lightspeed LEO constellation. This award, MDA's second
selection as prime satellite contractor in 18 months, reflects the
ongoing growth in the LEO constellation market to meet increasing
demand for space-based connectivity and communication services. Our
selection is also a testament to MDA's innovative technology and
manufacturing capabilities in this market. We look forward to
working with the Telesat team on this strategic program and to
bringing enhanced digital connectivity in Canada and elsewhere."
"Given the strong execution in the first half of the year and
forecasted contributions from the Telesat Lightspeed award, we are
raising our 2023 financial guidance. With healthy demand trends
across our end markets, we are seeing our opportunity funnel
expand, boding well for MDA and our future growth."
Q2 2023
HIGHLIGHTS
- Q2 revenues of $196.0 million
were up 26.7% YoY driven by higher revenues across our three
business areas with strong contributions from Satellite Systems and
Robotics & Space Operations businesses.
- Adjusted EBITDA of $40.4 million
in Q2 2023 was up 16.4% YoY driven by higher volumes of work across
our businesses.
- Adjusted EBITDA margin was 20.6% in Q2 2023 compared to 22.4%
in Q2 2022. Adjusted EBITDA margin in the latest quarter was in
line with the variance in gross margin year over year.
- Backlog of $1.1 billion at
quarter end was at a healthy level following a year of strong
contract awards in 2022.
- Operating cash flow of $38.9
million in Q2 2023 compared to ($5.0)
million in Q2 2022. The YoY increase was driven by positive
working capital contributions and higher adjusted EBITDA in Q2 2023
versus the same period last year.
- Healthy financial position with net debt to adjusted EBITDA
ratio of 1.2x at quarter end.
- Subsequent to quarter end, the Company announced an
approximately $2.1 billion contract
award from Telesat for the the design, manufacture, assembly and
test of 198 satellites with options for Telesat to purchase up to
100 additional satellites. The Telesat award will leverage MDA's
new digital satellite product line to deliver significant
technology advancements as well as cost and schedule improvements.
The contract will be added to MDA's backlog in the third quarter of
fiscal 2023.
2023 FINANCIAL OUTLOOK
As a 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
expanding our share of the growing constellation market, leveraging
our leading robotics technology platform to capitalize on emerging
commercial opportunities, and further strengthening our positioning
in Geointelligence through the development of our CHORUS Earth
observation constellation. We continue to make good progress
against our long term strategic plan.
MDA 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. We continue to closely
monitor developments related to supply chain disruptions, and are
taking pro-active measures across our three business areas to
mitigate the impact on our operations to the extent
possible.
For fiscal 2023, we are raising our financial outlook to reflect
strong execution in the first half of the year and contributions
from the recently announced Telesat Lightspeed program. We now
expect full year revenues to be $785
– $810 million, representing robust
year over year growth of approximately 25% at the mid-point of
guidance. For the full year, we now expect adjusted EBITDA to be
$155 – $165
million, representing approximately 19% – 20% adjusted
EBITDA margin. We now expect capital expenditures to be
$200 – $220
million in 2023, primarily comprising of growth investments
to support CHORUS and the previously outlined growth initiatives
across our three business areas. We expect Q3 2023 revenues to grow
by approximately 10-15% compared to Q3 2022 levels as we continue
to execute on our backlog.
FINANCIAL OVERVIEW
KEY INDICATORS SUMMARY
|
Second Quarters
Ended
|
Six Months
Ended
|
(in millions of
Canadian dollars)
|
June 30,
2023
|
June 30,
2022
|
June 30,
2023
|
June 30,
2022
|
Revenues
|
$
|
196.0
|
$
|
154.7
|
$
|
397.9
|
$
|
283.1
|
Gross profit
|
$
|
61.3
|
$
|
51.4
|
$
|
128.5
|
$
|
113.1
|
Gross margin
|
31.3 %
|
33.2 %
|
32.3 %
|
40.0 %
|
EBITDA(1]
|
$
|
34.9
|
$
|
31.3
|
$
|
80.7
|
$
|
66.9
|
Adjusted
EBITDA(1)
|
$
|
40.4
|
$
|
34.7
|
$
|
89.3
|
$
|
79.2
|
Adjusted EBITDA
margin
|
20.6 %
|
22.4 %
|
22.4 %
|
28.0 %
|
|
As at
|
(in millions of
Canadian dollars, except for ratios)
|
June 30,
2023
|
December 31,
2022
|
Backlog
|
$
|
1,098.3
|
$
|
1,378.2
|
Net debt(1)
to Adjusted TTM(1) EBITDA ratio
|
|
1.2x
|
|
1.3x
|
REVENUES BY BUSINESS AREA
|
Second Quarters
Ended
|
Six Months
Ended
|
(in millions of
Canadian dollars)
|
June 30,
2023
|
June 30,
2022
|
June 30,
2023
|
June 30,
2022
|
Geointelligence
|
$
|
47.9
|
$
|
47.0
|
$
|
99.2
|
$
|
95.9
|
Robotics & Space
Operations
|
|
58.7
|
|
48.8
|
|
121.6
|
|
91.2
|
Satellite
Systems
|
|
89.4
|
|
58.9
|
|
177.1
|
|
96.0
|
Consolidated
revenues
|
$
|
196.0
|
$
|
154.7
|
$
|
397.9
|
$
|
283.1
|
______________________________________
|
1 As defined
in the "Non-IFRS Financial Measures" section
|
|
Revenues
Consolidated revenues for the second quarter of 2023 were
$196.0 million, representing an
increase of $41.3 million (or 26.7%)
from the second quarter of 2022. The year over year increase in
revenues was primarily driven by strong contributions from our
Satellite Systems and Robotics & Space Operations
businesses.
By business area, revenues in Geointelligence for the second
quarter of 2023 were $47.9 million,
which represents an increase of $0.9
million (or 1.9%) from the same period in 2022 due to
slightly higher volume of work. Revenues in Robotics & Space
Operations for the second quarter of 2023 were $58.7 million, which represents an increase of
$9.9 million (or 20.3%) from the same
period in 2022. This year over year increase is primarily driven by
the higher volume of work performed on the Canadarm3 program.
Revenues in Satellite Systems for the second quarter of 2023 were
$89.4 million, which represents an
increase of $30.5 million (or 51.8%)
from the same period in 2022 driven by higher volumes on new
programs including the Globalstar program which was awarded in Q1
2022.
Consolidated revenues for the six months ended June 30, 2023 were $397.9
million, which were $114.8
million (or 40.6%) higher than the same period in 2022. The
year over year increase in revenues was primarily driven by strong
contributions from our Satellite Systems and Robotics & Space
Operations businesses.
By business area, revenues in Geointelligence for the first six
months of 2023 were $99.2 million,
which represents an increase of $3.3
million (or 3.4%) from the same period in 2022 reflecting
slightly higher volume of work. Revenues in Robotics & Space
Operations for the first six months of 2023 were $121.6 million, which represents an increase of
$30.4 million (or 33.3%) from the
same period in 2022. The year over year revenue 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 2023 were $177.1 million,
which represents an increase of $81.1
million (or 84.5%) from the same period in 2022 primarily
driven by higher volumes on new programs including the Globalstar
program which was awarded in Q1 2022.
Gross Profit and Gross Margin
Gross profit reflects our revenues less cost of revenues. Q2
2023 gross profit of $61.3 million
represents a $9.9 million (or 19.3%)
increase over Q2 2022 driven by higher volume of work performed
year over year. Gross margin in Q2 2023 was 31.3%, which is in line
with our expectations as the Company's program mix evolves.
Comparatively, gross margin in Q2 2022 was 33.2%.
For the six months ended June 30,
2023, gross profit of $128.5
million represents a $15.4
million (or 13.6%) increase over 2022 driven by higher
volume of work performed year over year, partially offset by
$16.8 million of higher ITCs recorded
in Q1 2022 related to the resolution of historical claims. Gross
margin for the six months ended June 30,
2023 was 32.3%, which is in line with our expectations as
the Company's program mix evolves. Comparatively, gross margin in
2022 was 34.0% excluding the aforementioned impact of the
historical ITC claims recognized in Q1 2022.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA for the second quarter of 2023 was $40.4 million compared with $34.7 million in Q2 2022, representing an
increase of $5.7 million (or 16.4%)
year over year driven by higher gross profit as we continue to
execute on our backlog. Adjusted EBITDA margin was 20.6% in Q2 2023
compared with 22.4% in Q2 2022, which is in line with the variance
in gross margin year over year.
Adjusted EBITDA for the six months ended June 30, 2023 was $89.3
million compared with $79.2
million for the same period in 2022, representing an
increase of $10.1 million (or 12.8%)
year over year. Adjusted EBITDA for the six months ended
June 30, 2022 included $16.8 million of income from the aforementioned
resolution of historical ITC claims. When excluding the impact of
the $16.8 million related to
historical ITC claims, Adjusted EBITDA increased $26.9 million (or 43.1%) year over year. The
improvement was driven by higher volumes of work performed year
over year. Adjusted EBITDA margin was 22.4% for the six months
ended June 30, 2023 compared with
22.0% in 2022, excluding the previously noted historical ITC claims
resolution.
Adjusted EBITDA, excluding historical ITCs claims resolution, is
summarized below
|
Second Quarters
Ended
|
Six Months
Ended
|
(in millions of
Canadian dollars)
|
June 30,
2023
|
June 30,
2022
|
June 30,
2023
|
June 30,
2022
|
Adjusted
EBITDA
|
$
|
40.4
|
$
|
34.7
|
$
|
89.3
|
$
|
79.2
|
|
ITCs claims
resolution
|
|
—
|
|
—
|
|
—
|
|
(16.8)
|
|
Adjusted EBITDA,
excluding ITCs claims resolution
|
$
|
40.4
|
$
|
34.7
|
$
|
89.3
|
$
|
62.4
|
|
Adjusted EBITDA margin,
excluding ITCs claims resolution
|
20.6 %
|
22.4 %
|
|
22.4 %
|
|
22.0 %
|
|
Backlog
Backlog as at June 30, 2023 was
$1,098.3 million, a decrease of
$422.5 million compared with the
backlog at June 30, 2022 driven by
continued conversion of backlog into revenue, partially offset by
new order bookings. The following table shows the build up of
backlog for Q2 and the six months ended June
30, 2023 as compared with the same periods in
2022.
|
Second Quarters
Ended
|
Six Months
Ended
|
(in millions of
Canadian dollars)
|
June 30,
2023
|
June 30,
2022
|
June 30,
2023
|
June 30,
2022
|
Opening
Backlog
|
$
|
1,232.4
|
$
|
1,516.8
|
$
|
1,378.2
|
$
|
864.3
|
Less: Revenue
recognized
|
|
(196.0)
|
|
(154.7)
|
|
(397.9)
|
|
(283.1)
|
Add: Order
Bookings
|
|
61.9
|
|
158.7
|
|
118.0
|
|
939.6
|
Ending
Backlog
|
$
|
1,098.3
|
$
|
1,520.8
|
$
|
1,098.3
|
$
|
1,520.8
|
CONFERENCE CALL AND
WEBCAST
MDA will host a conference call and webcast to discuss these
financial results on Friday, August 11, 2023 at
11:00 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 080-0652-2435 (toll-free international) and
entering the conference ID 29464883. 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 18, 2023, by dialing
1-888-390-0541 and entering the passcode 464883 #.
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, Order Bookings and Net Debt, 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. 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 2023 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.
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 March 23, 2023 and
available on SEDAR at www.sedar.com. 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.
ABOUT MDA
Serving the world from its Canadian home and global offices, MDA
(TSX: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 2,800 staff across
Canada, the US and the UK, MDA is
a leading partner in the pursuit of viable Moon colonies, enhanced
Earth observation, communication in a hyper-connected world, and
more. MDA has a track record of making space ambitions come true,
and enables highly skilled people to continually push boundaries,
tackle big challenges, and imagine solutions that inspire and
endure to change the world for the better, on the ground and in the
stars. For more information about the Company, please visit
www.mda.space.
MDA Ltd.
Unaudited Interim Condensed Statement of Comprehensive Income
For the three and six months ended June 30,
2023 and 2022
(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,
|
|
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
196.0
|
$
|
154.7
|
$
|
397.9
|
$
|
283.1
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
Materials, labour and
subcontractors
|
|
|
(127.7)
|
|
(97.5)
|
|
(255.8)
|
|
(158.4)
|
Depreciation and
amortization of assets
|
|
(7.0)
|
|
(5.8)
|
|
(13.6)
|
|
(11.6)
|
Gross
profit
|
|
|
61.3
|
|
51.4
|
|
128.5
|
|
113.1
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
|
|
(17.8)
|
|
(13.8)
|
|
(34.4)
|
|
(28.1)
|
Research and
development, net
|
|
|
(10.3)
|
|
(8.7)
|
|
(20.4)
|
|
(17.2)
|
Amortization of
intangible assets
|
|
|
(11.0)
|
|
(12.9)
|
|
(23.8)
|
|
(26.9)
|
Share-based
compensation
|
|
|
(2.9)
|
|
(1.4)
|
|
(4.1)
|
|
(3.0)
|
Operating
income
|
|
|
19.3
|
|
14.6
|
|
45.8
|
|
37.9
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
Unrealized loss on
financial instruments
|
|
|
(0.6)
|
|
(4.1)
|
|
(1.1)
|
|
(9.4)
|
Foreign exchange gain
(loss)
|
|
|
(1.8)
|
|
2.1
|
|
(1.4)
|
|
(0.1)
|
Finance costs
(net)
|
|
|
(2.1)
|
|
(24.7)
|
|
(4.3)
|
|
(29.0)
|
Income (loss) before income taxes
|
|
14.8
|
|
(12.1)
|
|
39.0
|
|
(0.6)
|
|
|
|
|
|
|
|
|
|
|
Income tax recovery
(expense)
|
|
|
(4.9)
|
|
3.3
|
|
(13.0)
|
|
0.2
|
Net income
(loss)
|
|
|
9.9
|
|
(8.8)
|
|
26.0
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Gain (loss) on
translation of foreign operations
|
|
(0.1)
|
|
0.1
|
|
(0.3)
|
|
0.5
|
Gain on cash flow
hedges
|
|
|
3.6
|
|
—
|
|
1.9
|
|
—
|
Remeasurement gain on
defined benefit plans
|
|
|
—
|
|
17.8
|
|
1.7
|
|
17.8
|
Total comprehensive
income
|
$
|
13.4
|
$
|
9.1
|
$
|
29.3
|
$
|
17.9
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
$
|
(0.07)
|
$
|
0.22
|
$
|
(0.00)
|
Diluted
|
|
|
0.08
|
|
(0.07)
|
|
0.22
|
|
(0.00)
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
119,168,507
|
118,691,628
|
119,121,502
|
118,691,628
|
Diluted
|
|
120,254,778
|
118,691,628
|
119,837,462
|
118,691,628
|
MDA Ltd.
Unaudited Interim Condensed Statement of Financial Position
June 30, 2023
(In millions of Canadian dollars)
As at
|
|
June 30,
2023
|
December 31,
2022
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash
|
|
|
$
|
39.0
|
|
$
|
39.3
|
Trade and other
receivables
|
|
|
|
87.8
|
|
|
155.5
|
Unbilled
receivables
|
|
|
|
165.3
|
|
|
121.0
|
Inventories
|
|
|
|
11.3
|
|
|
7.5
|
Income taxes
receivable
|
|
|
|
27.1
|
|
|
35.1
|
Other current
assets
|
|
|
|
21.8
|
|
|
19.8
|
|
|
|
|
352.3
|
|
|
378.2
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
292.4
|
|
|
235.1
|
Right-of-use
assets
|
|
|
|
6.8
|
|
|
7.1
|
Intangible
assets
|
|
|
|
546.5
|
|
|
552.4
|
Goodwill
|
|
|
|
419.9
|
|
|
419.9
|
Deferred income tax
assets
|
|
|
|
14.1
|
|
|
19.1
|
Other non-current
assets
|
|
|
|
177.2
|
|
|
139.0
|
Total
assets
|
|
|
$
|
1,809.2
|
|
$
|
1,750.8
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
|
$
|
150.0
|
|
$
|
124.3
|
Income taxes
payable
|
|
|
|
15.1
|
|
|
11.9
|
Contract
liabilities
|
|
|
|
111.9
|
|
|
110.8
|
Current portion of net
employee benefit payable
|
|
|
|
48.4
|
|
|
54.1
|
Current portion of
lease liabilities
|
|
|
|
7.8
|
|
|
6.7
|
Other current
liabilities
|
|
|
|
9.7
|
|
|
10.8
|
|
|
|
|
342.9
|
|
|
318.6
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Net employee defined
benefit payable
|
|
|
|
23.0
|
|
|
21.5
|
Lease
liabilities
|
|
|
|
0.6
|
|
|
1.6
|
Long-term
debt
|
|
|
|
248.7
|
|
|
243.6
|
Deferred income tax
liabilities
|
|
|
|
158.7
|
|
|
163.8
|
Other non-current
liabilities
|
|
|
|
1.0
|
|
|
1.1
|
Total
liabilities
|
|
|
|
774.9
|
|
|
750.2
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Common
shares
|
|
|
|
953.6
|
|
|
951.6
|
Contributed
surplus
|
|
|
|
27.4
|
|
|
25.0
|
Accumulated other
comprehensive income
|
|
|
|
17.4
|
|
|
14.1
|
Retained
earnings
|
|
|
|
35.9
|
|
|
9.9
|
Total
equity
|
|
|
|
1,034.3
|
|
|
1,000.6
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
|
$
|
1,809.2
|
|
$
|
1,750.8
|
MDA Ltd.
Unaudited Interim Condensed
Consolidated Statement of Cash Flows
For the three and six months ended June 30,
2023 and 2022
(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,
|
|
|
2023
|
2022
|
2023
|
2022
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
9.9
|
$
|
(8.8)
|
$
|
26.0
|
$
|
(0.4)
|
Items not affecting
cash:
|
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
4.9
|
|
(3.3)
|
|
13.0
|
|
(0.2)
|
Depreciation of
property, plant and equipment
|
|
|
3.1
|
|
2.4
|
|
5.9
|
|
4.9
|
Depreciation of
right-of-use assets
|
|
|
2.3
|
|
2.0
|
|
4.3
|
|
4.1
|
Amortization of
intangible assets
|
|
|
12.6
|
|
14.3
|
|
27.2
|
|
29.5
|
Share-based
compensation expense
|
|
|
2.9
|
|
1.4
|
|
4.1
|
|
3.0
|
Investment tax credits
accrued
|
|
|
(5.6)
|
|
(8.9)
|
|
(12.7)
|
|
(31.6)
|
Finance
costs
|
|
|
2.1
|
|
24.7
|
|
4.3
|
|
29.0
|
Unrealized loss on
financial instruments
|
|
0.6
|
|
4.1
|
|
1.1
|
|
9.4
|
Changes in operating
assets and liabilities
|
|
|
12.0
|
|
(20.9)
|
|
21.1
|
|
(26.0)
|
|
|
|
44.8
|
|
7.0
|
|
94.3
|
|
21.7
|
Interest
paid
|
|
|
(4.0)
|
|
(10.4)
|
|
(8.0)
|
|
(11.0)
|
Income tax
paid
|
|
|
(1.9)
|
|
(1.6)
|
|
(1.6)
|
|
(1.0)
|
Net cash from (used
in) operating activities
|
|
|
38.9
|
|
(5.0)
|
|
84.7
|
|
9.7
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(33.9)
|
|
(42.8)
|
|
(63.6)
|
|
(67.7)
|
Purchase/development
of intangible assets
|
|
|
(11.8)
|
|
(12.2)
|
|
(22.6)
|
|
(24.4)
|
Net cash used in
investing activities
|
|
|
(45.7)
|
|
(55.0)
|
|
(86.2)
|
|
(92.1)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
Repayment of long-term
debt
|
|
|
—
|
|
(150.0)
|
|
—
|
|
(150.0)
|
Borrowings from
(repayments of) senior credit facility
|
|
|
(20.0)
|
|
170.0
|
|
5.0
|
|
170.0
|
Transaction costs
incurred on debt refinancing
|
|
|
—
|
|
(8.9)
|
|
—
|
|
(8.9)
|
Payment of lease
liability (principal portion)
|
|
|
(2.0)
|
|
(1.9)
|
|
(3.9)
|
|
(4.0)
|
Proceeds from stock
options exercised
|
|
|
—
|
|
—
|
|
0.4
|
|
—
|
Net cash provided by
(used in) financing activities
|
|
|
(22.0)
|
|
9.2
|
|
1.5
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
|
(28.8)
|
|
(50.8)
|
|
—
|
|
(75.3)
|
Net foreign exchange
differences on cash
|
|
|
(0.1)
|
|
0.1
|
|
(0.3)
|
|
0.5
|
Cash, beginning of
period
|
|
|
67.9
|
|
59.5
|
|
39.3
|
|
83.6
|
Cash, end of
period
|
|
$
|
39.0
|
$
|
8.8
|
$
|
39.0
|
$
|
8.8
|
RECONCILIATON OF NON-IFRS
MEASURES
The following table provides a reconciliation of net income to
EBITDA and adjusted EBITDA:
|
Second Quarters
Ended
|
Six Months
Ended
|
(in millions of
Canadian dollars)
|
June 30,
2023
|
June 30,
2022
|
June 30,
2023
|
June 30,
2022
|
Net income
(loss)
|
$
|
9.9
|
$
|
(8.8)
|
$
|
26.0
|
$
|
(0.4)
|
Depreciation and
amortization
|
|
7.0
|
|
5.8
|
|
13.6
|
|
11.6
|
Amortization of
intangible assets
|
|
11.0
|
|
12.9
|
|
23.8
|
|
26.9
|
Income tax expense
(recovery)
|
|
4.9
|
|
(3.3)
|
|
13.0
|
|
(0.2)
|
Finance
costs
|
|
2.1
|
|
24.7
|
|
4.3
|
|
29.0
|
EBITDA
|
$
|
34.9
|
$
|
31.3
|
$
|
80.7
|
$
|
66.9
|
Unrealized foreign
exchange loss (gain)
|
|
2.0
|
|
(2.1)
|
|
3.4
|
|
(0.1)
|
Unrealized loss on
financial instruments
|
|
0.6
|
|
4.1
|
|
1.1
|
|
9.4
|
Share based
compensation
|
|
2.9
|
|
1.4
|
|
4.1
|
|
3.0
|
Adjusted
EBITDA
|
$
|
40.4
|
$
|
34.7
|
$
|
89.3
|
$
|
79.2
|
SOURCE MDA Ltd.