- Q3 2023 Highlights
- Strong top line growth with revenues of $204.7 million, up 19% YoY
- Solid profitability with adjusted EBITDA of $42.8 million, up 10% YoY
- Robust adjusted EBITDA margin of 20.9%
- Record backlog of $3.1 billion
at quarter end including the recently announced Telesat
Lightspeed LEO constellation contract award of $2.1 billion
- Announced and subsequent to quarter end closed acquisition
of SatixFy Space Systems UK Ltd., the digital payload division
of SatixFy Communications Ltd.
- Updated 2023 full-year financial outlook
BRAMPTON, ON, Nov. 8, 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 third
quarter ended September 30, 2023.
"MDA delivered another solid quarter in Q3 showcasing the team's
continued strong execution and the momentum we are seeing in our
business and end markets," said Mike
Greenley, Chief Executive Officer of MDA. "We continue to
focus on our growth strategy and growing our book of business. In
Q3 we announced that MDA was awarded a $2.1
billion contract from Telesat to act as the prime satellite
contractor on the Telesat Lightspeed LEO constellation; this is our
second prime satellite contract in 18 months and a testament to
MDA's innovative technology and advanced manufacturing capabilities
in this market."
"We also recently closed our acquisition of the digital payload
division of SatixFy Communications, announced in Q3, as we continue
to invest in our digital satellite technology and talent to
maximize our market opportunity. Additionally, we are on pace with
the development of CHORUS, our next generation Earth observation
constellation. Elements of CHORUS are now in production at our
Montreal facility and we recently
announced the selection of SpaceX as our launch partner with a
confirmed launch window of Q4 2025," continued Mr. Greenley.
"With our backlog at a record level, our teams are laser focused
on execution and delivering on our customer commitments. Given the
strong execution year to date, we are raising our 2023 financial
guidance."
Q3 2023 HIGHLIGHTS
- Q3 revenues of $204.7 million
were up 19% YoY driven by higher revenues across our three business
areas with strong contributions from Satellite Systems and Robotics
& Space Operations businesses.
- Adjusted EBITDA of $42.8 million
in Q3 2023 was up 10% YoY driven by higher volumes of work across
our businesses.
- Adjusted EBITDA margin was 20.9% in Q3 2023 compared with 22.6%
in Q3 2022. The year over year change in adjusted EBITDA margin was
largely in line with the variance in gross margin over the same
period driven by evolving program mix.
- Backlog grew to $3.1 billion at
quarter end which includes the recently announced Telesat
Lightspeed LEO constellation award valued at $2.1 billion where MDA will be responsible for
the design, manufacture, assembly and test of 198 satellites. This
compares to a backlog of $1.4 billion
at the end of 2022.
- Operating cash flow was a use of $30.0
million in Q3 2023 compared with an inflow of $7.0 million in Q3 2022. The year over year
decrease in operating cash flow was primarily driven by higher
working capital requirements in Q3 2023 as a result of the timing
of certain milestone payments versus the same period last
year.
- Healthy financial position with net debt to adjusted EBITDA
ratio of 1.7x at quarter end.
- Company announced and subsequent to quarter end closed the
acquisition of SatixFy Space Systems UK Ltd., the digital payload
division of SatixFy Communications Ltd. The transaction, valued at
US$40 million, will help further
strengthen MDA's global leadership position in the growing market
for digital satellite communications solutions.
- Subsequent to quarter end, MDA announced that it has selected
SpaceX as the launch partner for its CHORUS constellation, which is
scheduled to launch on the Falcon 9 rocket in Q4 2025 from
Florida.
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 narrowing our full year revenue guidance
to $790 – $810
million from $785 –
$810 million previously, representing
robust year over year growth of approximately 25% at the mid-point
of guidance. We are raising our 2023 adjusted EBITDA guidance to
$165 – $170
million from $155 –
$165 million previously, representing
approximately 20% – 21% adjusted EBITDA margin. We are narrowing
our 2023 capital expenditures range to $200 – $210 million
from $200 – $220 million previously, comprising primarily of
growth investments to support CHORUS and the previously outlined
growth initiatives across our three business areas.
FINANCIAL OVERVIEW
KEY INDICATORS SUMMARY
|
Third Quarters
Ended
|
Nine Months
Ended
|
(in millions of
Canadian dollars)
|
September 30,
2023
|
September 30,
2022
|
September
30, 2023
|
September
30, 2022
|
Revenues
|
$
|
204.7
|
$
|
172.0
|
$
|
602.6
|
$
|
455.1
|
Gross profit
|
$
|
57.7
|
$
|
56.4
|
$
|
186.2
|
$
|
169.5
|
Gross margin
|
28.2 %
|
32.8 %
|
30.9 %
|
37.2 %
|
Adjusted
EBITDA([1])
|
$
|
42.8
|
$
|
38.8
|
$
|
132.1
|
$
|
118.0
|
Adjusted EBITDA
margin
|
20.9 %
|
22.6 %
|
21.9 %
|
25.9 %
|
|
As at
|
(in millions of
Canadian dollars, except for ratios)
|
September 30,
2023
|
December 31,
2022
|
Backlog
|
$
|
3,068.7
|
$
|
1,378.2
|
Net debt(1)
to Adjusted TTM(1) EBITDA ratio
|
|
1.7x
|
|
1.3x
|
REVENUES BY BUSINESS AREA
|
Third Quarters
Ended
|
Nine Months
Ended
|
(in millions of
Canadian dollars)
|
September 30,
2023
|
September
30, 2022
|
September 30,
2023
|
September
30, 2022
|
Geointelligence
|
$
|
48.4
|
$
|
45.5
|
$
|
147.6
|
$
|
141.4
|
Robotics & Space
Operations
|
|
61.9
|
|
54.6
|
|
183.5
|
|
145.8
|
Satellite
Systems
|
|
94.4
|
|
71.9
|
|
271.5
|
|
167.9
|
Consolidated
revenues
|
$
|
204.7
|
$
|
172.0
|
$
|
602.6
|
$
|
455.1
|
_______________________________________
|
1 As defined
in the "Non-IFRS Financial Measures" section
|
Revenues
Consolidated revenues for the third quarter of 2023 were
$204.7 million, representing an
increase of $32.7 million (or 19.0%)
from the third 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 third
quarter of 2023 were $48.4 million,
which represents an increase of $2.9
million (or 6.4%) from the same period in 2022 due to
slightly higher volume of work. Revenues in Robotics & Space
Operations for the third quarter of 2023 were $61.9 million, which represents an increase of
$7.3 million (or 13.4%) 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 third quarter of 2023 were
$94.4 million, which represents an
increase of $22.5 million (or 31.3%)
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 nine months ended September 30, 2023 were $602.6 million, which were $147.5 million (or 32.4%) 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 nine
months ended September 30, 2023 were
$147.6 million, which represents an
increase of $6.2 million (or 4.4%)
from the same period in 2022 reflecting slightly higher volume of
work. Revenues in Robotics & Space Operations for the nine
months ended September 30, 2023 were
$183.5 million, which represents an
increase of $37.7 million (or 25.9%)
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 nine
months ended September 30, 2023 were
$271.5 million, which represents an
increase of $103.6 million (or 61.7%)
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. Q3
2023 gross profit of $57.7 million
represents a $1.3 million (or 2.3%)
increase over Q3 2022 driven by higher volume of work performed
year over year. Gross margin in Q3 2023 was 28.2%, which is in line
with our expectations as the Company's program mix evolves.
Comparatively, gross margin in Q3 2022 was 32.8%.
For the nine months ended September 30,
2023, gross profit of $186.2
million represents a $16.7
million (or 9.9%) 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 nine months ended September 30,
2023 was 30.9%, which is in line with our expectations as
the Company's program mix evolves. Comparatively, gross margin in
2022 was 33.6% excluding the aforementioned impact of the
historical ITC claims recognized in Q1 2022.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA for the third quarter of 2023 was $42.8 million compared with $38.8 million for the third quarter of
2022, representing an increase of $4.0
million (or 10.3%) year over year driven by higher gross
profit as we continue to execute on our backlog. Adjusted EBITDA
margin was 20.9% for the third quarter of 2023 compared with 22.6%
for the third quarter of 2022, which is generally in line
with the variance in gross margin year over year.
Adjusted EBITDA for the nine months ended September 30, 2023 was $132.1 million compared with $118.0 million for the same period in 2022,
representing an increase of $14.1
million (or 11.9%) year over year. Adjusted EBITDA for the
nine months ended September 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 $30.9 million (or 30.5%)
year over year. The improvement was driven by higher volumes of
work performed year over year. Adjusted EBITDA margin was 21.9% for
the nine months ended September 30,
2023 compared with 22.2% in 2022, excluding the previously
noted historical ITC claims resolution.
Adjusted EBITDA, excluding historical ITCs claims resolution, is
summarized below.
|
|
Third Quarters
Ended
|
Nine Months
Ended
|
(in millions of
Canadian dollars)
|
|
September
30, 2023
|
September
30, 2022
|
September
30, 2023
|
September
30, 2022
|
Adjusted
EBITDA
|
|
$
|
42.8
|
$
|
38.8
|
$
|
132.1
|
$
|
118.0
|
ITCs claims
resolution
|
|
|
—
|
|
—
|
|
—
|
|
(16.8)
|
Adjusted EBITDA,
excluding ITCs
claims resolution
|
|
$
|
42.8
|
$
|
38.8
|
$
|
132.1
|
$
|
101.2
|
Adjusted EBITDA margin,
excluding ITCs
claims
resolution
|
|
20.9 %
|
22.6 %
|
21.9 %
|
22.2 %
|
Backlog
Backlog as at September 30, 2023 was $3,068.7 million, an increase of $1,663.6 million compared with the backlog at
September 30, 2022 driven by new
order bookings including the recently announced Telesat Lightspeed
LEO constellation, partially offset by continued conversion of our
backlog into revenue. The following table shows the build up of
backlog for Q3 and the nine months ended September 30, 2023 as compared with the same
periods in 2022.
|
Third Quarters
Ended
|
Nine Months
Ended
|
(in millions of
Canadian dollars)
|
September
30, 2023
|
September
30, 2022
|
September
30, 2023
|
September
30, 2022
|
Opening
Backlog
|
$
|
1,098.3
|
$
|
1,520.8
|
$
|
1,378.2
|
$
|
864.3
|
Less: Revenue
recognized
|
|
(204.7)
|
|
(172.0)
|
|
(602.6)
|
|
(455.1)
|
Add: Order
Bookings
|
|
2,175.1
|
|
56.3
|
|
2,293.1
|
|
995.9
|
Ending
Backlog
|
$
|
3,068.7
|
$
|
1,405.1
|
$
|
3,068.7
|
$
|
1,405.1
|
CONFERENCE CALL AND WEBCAST
MDA will host a conference call and webcast to discuss these
financial results on Wednesday, November
8, 2023 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
080-0652-2435 (toll-free international) and entering the conference
ID 10181404. 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 November 15,
2023, by dialing 1-888-390-0541 and entering the passcode
181404 #.
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.sedarplus.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 2,900 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 nine months ended September 30, 2023 and 2022
(In millions of Canadian dollars except per share
figures)
|
|
Three months
ended Sept 30,
|
Three months
ended Sept 30,
|
Nine months
ended Sept 30,
|
Nine months
ended Sept 30,
|
|
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
204.7
|
$
|
172.0
|
$
|
602.6
|
$
|
455.1
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
Materials, labour and
subcontractors
|
|
|
(138.2)
|
|
(109.8)
|
|
(394.0)
|
|
(268.2)
|
Depreciation and
amortization of assets
|
|
(8.8)
|
|
(5.8)
|
|
(22.4)
|
|
(17.4)
|
Gross
profit
|
|
|
57.7
|
|
56.4
|
|
186.2
|
|
169.5
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration
|
|
|
(17.8)
|
|
(15.5)
|
|
(52.2)
|
|
(43.6)
|
Research and
development, net
|
|
|
(10.4)
|
|
(7.8)
|
|
(30.8)
|
|
(25.0)
|
Amortization of
intangible assets
|
|
|
(11.0)
|
|
(12.8)
|
|
(34.8)
|
|
(39.7)
|
Share-based
compensation
|
|
|
(2.8)
|
|
(2.5)
|
|
(6.9)
|
|
(5.5)
|
Operating
income
|
|
|
15.7
|
|
17.8
|
|
61.5
|
|
55.7
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
Unrealized (gain) loss
on financial
instruments
|
|
|
1.0
|
|
0.3
|
|
(0.1)
|
|
(9.1)
|
Foreign exchange gain
(loss)
|
|
|
0.6
|
|
5.6
|
|
(0.8)
|
|
5.5
|
Finance costs,
net
|
|
|
(2.4)
|
|
(2.4)
|
|
(6.7)
|
|
(31.4)
|
Income before income taxes
|
|
14.9
|
|
21.3
|
|
53.9
|
|
20.7
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(5.6)
|
|
(3.4)
|
|
(18.6)
|
|
(3.2)
|
Net
income
|
|
|
9.3
|
|
17.9
|
|
35.3
|
|
17.5
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
Gain on translation of
foreign operations
|
|
0.3
|
|
0.5
|
|
—
|
|
1.0
|
Gain (loss) on cash
flow hedges
|
|
|
2.2
|
|
—
|
|
4.1
|
|
—
|
Remeasurement gain
(loss) on defined
benefit plans
|
|
|
4.7
|
|
(1.2)
|
|
6.4
|
|
16.6
|
Total comprehensive
income
|
$
|
16.5
|
$
|
17.2
|
$
|
45.8
|
$
|
35.1
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
$
|
0.15
|
$
|
0.30
|
$
|
0.15
|
Diluted
|
|
|
0.08
|
|
0.15
|
|
0.29
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
119,329,839
|
118,942,451
|
119,191,837
|
118,776,154
|
Diluted
|
|
121,912,873
|
122,528,404
|
120,546,321
|
122,085,504
|
MDA Ltd.
Unaudited Interim Condensed Statement of Financial Position
September 30, 2023
(In millions of Canadian dollars)
As at
|
|
September 30,
2023
|
December 31,
2022
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash
|
|
|
$
|
13.4
|
|
$
|
39.3
|
Trade and other
receivables
|
|
|
|
75.2
|
|
|
155.5
|
Unbilled
receivables
|
|
|
|
221.1
|
|
|
121.0
|
Inventories
|
|
|
|
10.7
|
|
|
7.5
|
Income taxes
receivable
|
|
|
|
29.3
|
|
|
35.1
|
Other current
assets
|
|
|
|
22.6
|
|
|
19.8
|
|
|
|
|
372.3
|
|
|
378.2
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
325.6
|
|
|
235.1
|
Right-of-use
assets
|
|
|
|
5.0
|
|
|
7.1
|
Intangible
assets
|
|
|
|
540.5
|
|
|
552.4
|
Goodwill
|
|
|
|
419.9
|
|
|
419.9
|
Deferred income tax
assets
|
|
|
|
12.3
|
|
|
19.1
|
Other non-current
assets
|
|
|
|
196.3
|
|
|
139.0
|
Total
assets
|
|
|
$
|
1,871.9
|
|
$
|
1,750.8
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
|
$
|
186.2
|
|
$
|
124.3
|
Income taxes
payable
|
|
|
|
15.8
|
|
|
11.9
|
Contract
liabilities
|
|
|
|
65.9
|
|
|
110.8
|
Current portion of net
employee benefit
payable
|
|
|
|
48.2
|
|
|
54.1
|
Current portion of
lease liabilities
|
|
|
|
6.3
|
|
|
6.7
|
Other current
liabilities
|
|
|
|
9.9
|
|
|
10.8
|
|
|
|
|
332.3
|
|
|
318.6
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Net employee defined
benefit payable
|
|
|
|
21.8
|
|
|
21.5
|
Lease
liabilities
|
|
|
|
1.1
|
|
|
1.6
|
Long-term
debt
|
|
|
|
303.8
|
|
|
243.6
|
Deferred income tax
liabilities
|
|
|
|
158.1
|
|
|
163.8
|
Other non-current
liabilities
|
|
|
|
0.9
|
|
|
1.1
|
Total
liabilities
|
|
|
|
818.0
|
|
|
750.2
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Common
shares
|
|
|
|
955.1
|
|
|
951.6
|
Contributed
surplus
|
|
|
|
29.0
|
|
|
25.0
|
Accumulated other
comprehensive income
|
|
|
|
24.6
|
|
|
14.1
|
Retained
earnings
|
|
|
|
45.2
|
|
|
9.9
|
Total
equity
|
|
|
|
1,053.9
|
|
|
1,000.6
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
|
$
|
1,871.9
|
|
$
|
1,750.8
|
MDA Ltd.
Unaudited Interim Condensed
Consolidated Statement of Cash Flows
For the three and nine months ended September 30, 2023 and 2022
(In millions of Canadian dollars)
|
|
Three months
ended
September 30,
|
Three months
ended
September
30,
|
Nine months
ended
September 30,
|
Nine
months
ended
September 30,
|
|
|
2023
|
2022
|
2023
|
2022
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
9.3
|
$
|
17.9
|
$
|
35.3
|
$
|
17.5
|
Items not affecting
cash:
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
5.6
|
|
3.4
|
|
18.6
|
|
3.2
|
Depreciation of
property, plant and
equipment
|
|
|
3.5
|
|
2.3
|
|
9.4
|
|
7.2
|
Depreciation of
right-of-use assets
|
|
|
2.5
|
|
2.1
|
|
6.8
|
|
6.2
|
Amortization of
intangible assets
|
|
|
13.8
|
|
14.2
|
|
41.0
|
|
43.7
|
Write-down of
assets
|
|
|
4.8
|
|
—
|
|
4.8
|
|
—
|
Share-based
compensation expense
|
|
|
2.8
|
|
2.5
|
|
6.9
|
|
5.5
|
Investment tax credits
accrued
|
|
|
(6.0)
|
|
(10.7)
|
|
(18.7)
|
|
(42.3)
|
Finance
costs
|
|
|
2.4
|
|
2.4
|
|
6.7
|
|
31.4
|
Unrealized loss (gain)
on financial instruments
|
|
(1.0)
|
|
(0.3)
|
|
0.1
|
|
9.1
|
Changes in operating
assets and liabilities
|
|
|
(59.9)
|
|
(21.9)
|
|
(38.8)
|
|
(47.9)
|
|
|
|
(22.2)
|
|
11.9
|
|
72.1
|
|
33.6
|
Interest
paid
|
|
|
(4.9)
|
|
(2.9)
|
|
(12.9)
|
|
(13.9)
|
Income tax
paid
|
|
|
(2.9)
|
|
(2.0)
|
|
(4.5)
|
|
(3.0)
|
Net cash from (used
in) operating activities
|
|
|
(30.0)
|
|
7.0
|
|
54.7
|
|
16.7
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(37.1)
|
|
(32.9)
|
|
(100.7)
|
|
(100.6)
|
Purchase/development
of intangible assets
|
|
|
(12.3)
|
|
(8.0)
|
|
(34.9)
|
|
(32.4)
|
Net cash used in
investing activities
|
|
|
(49.4)
|
|
(40.9)
|
|
(135.6)
|
|
(133.0)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
Repayment of second
lien notes
|
|
|
—
|
|
—
|
|
—
|
|
(150.0)
|
Borrowings from senior
credit facility
|
|
|
55.0
|
|
25.0
|
|
60.0
|
|
195.0
|
Transaction costs
incurred on debt refinancing
|
|
|
—
|
|
—
|
|
—
|
|
(8.9)
|
Payment of lease
liability (principal portion)
|
|
|
(1.7)
|
|
(1.9)
|
|
(5.6)
|
|
(5.9)
|
Proceeds from stock
options exercised
|
|
|
0.2
|
|
0.4
|
|
0.6
|
|
0.4
|
Net cash provided by
financing activities
|
|
|
53.5
|
|
23.5
|
|
55.0
|
|
30.6
|
|
|
|
|
|
|
|
|
|
|
Net decrease in
cash
|
|
|
(25.9)
|
|
(10.4)
|
|
(25.9)
|
|
(85.7)
|
Net foreign exchange
differences on cash
|
|
|
0.3
|
|
0.5
|
|
—
|
|
1.0
|
Cash, beginning of
period
|
|
|
39.0
|
|
8.8
|
|
39.3
|
|
83.6
|
Cash (bank
indebtedness), end of period
|
|
$
|
13.4
|
$
|
(1.1)
|
$
|
13.4
|
$
|
(1.1)
|
RECONCILIATION OF NON-IFRS MEASURES
The following table provides a reconciliation of net income to
EBITDA and adjusted EBITDA:
|
Third Quarters
Ended
|
Nine Months
Ended
|
(in millions of
Canadian dollars)
|
September
30, 2023
|
September
30, 2022
|
September
30, 2023
|
September
30, 2022
|
Net income
|
$
|
9.3
|
$
|
17.9
|
$
|
35.3
|
$
|
17.5
|
Depreciation and
amortization
|
|
8.8
|
|
5.8
|
|
22.4
|
|
17.4
|
Amortization of
intangible assets
|
|
11.0
|
|
12.8
|
|
34.8
|
|
39.7
|
Income tax
expense
|
|
5.6
|
|
3.4
|
|
18.6
|
|
3.2
|
Finance
costs
|
|
2.4
|
|
2.4
|
|
6.7
|
|
31.4
|
EBITDA
|
$
|
37.1
|
$
|
42.3
|
$
|
117.8
|
$
|
109.2
|
Unrealized foreign
exchange loss
(gain)
|
|
(0.9)
|
|
(5.7)
|
|
2.5
|
|
(5.8)
|
Unrealized loss (gain)
on financial
instruments
|
|
(1.0)
|
|
(0.3)
|
|
0.1
|
|
9.1
|
Write-down of
assets
|
|
4.8
|
|
—
|
|
4.8
|
|
—
|
Share based
compensation
|
|
2.8
|
|
2.5
|
|
6.9
|
|
5.5
|
Adjusted
EBITDA
|
$
|
42.8
|
$
|
38.8
|
$
|
132.1
|
$
|
118.0
|
SOURCE MDA Ltd.