MDA SPACE REPORTS THIRD QUARTER 2024 RESULTS
PR Newswire
BRAMPTON, ON, Nov. 15, 2024
-- Q3 2024 Highlights
-- Significant backlog of $4.6 billion at quarter-end, up 49% YoY
-- Strong top line growth with revenues of $282.4 million, up 38% YoY
-- Solid profitability with adjusted EBITDA1 of $55.5 million, up 30%
YoY, and adjusted EBITDA margin1 of 19.7%
-- Solid adjusted net income1 of $34.7 million, up 60% YoY, and
adjusted diluted earnings per share1 of $0.28, up 56% YoY
-- Strong operating cash flow of $258.8 million
-- Net debt to adjusted EBITDA1 ratio of 0.8x at quarter-end
-- Updated 2024 full-year financial outlook
-- Raised revenue guidance, narrowed adjusted EBITDA guidance and
reaffirmed capital expenditures guidance
-- Reaffirmed positive free cash flow in 2024
BRAMPTON, ON, Nov. 15, 2024 /PRNewswire/ - MDA Space Ltd. (TSX: MDA), a trusted space mission partner to the rapidly expanding global space industry, today announced its financial results for the third quarter ended September 30, 2024.
"In Q3, the MDA Space team delivered another strong quarter with double digit growth in our top and bottom lines as we continued to execute and convert our backlog," said Mike Greenley, Chief Executive Officer of MDA Space.
"The team continued to execute on our major programs, successfully conducting the preliminary design review for the Canadarm3 program, a critical milestone for the program. We also made significant progress on MDA CHORUS$(TM)$, our next generation Earth Observation constellation, completing the spacecraft assembly and commencing spacecraft integration and testing. And in our Satellite Systems business, the team made solid progress advancing the engineering work for the Telesat Lightspeed program. In Q3, we also broke ground on our Satellite Systems facility expansion in Quebec which will add 185,000 square feet of advanced manufacturing capacity," continued Mr. Greenley.
"I am also pleased to welcome Guillaume Lavoie to the MDA Space Team as Chief Financial Officer. Guillaume brings a wealth of financial leadership experience and will be instrumental in supporting our long-term growth plans and helping us deliver successfully for our customers and shareholders."
Q3 2024 HIGHLIGHTS
-- Backlog of $4.6 billion at quarter-end provides good revenue visibility
for 2025 and beyond and was up 49% compared to Q3 2023. The
year-over-year 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.
-- Revenues of $282.4 million in Q3 2024 were up 38.0% year-over-year driven
by higher work volumes across the business with strong contributions from
the Satellite Systems and Robotics & Space Operations businesses.
-- Adjusted EBITDA of $55.5 million in Q3 2024 compared to $42.8 million in
Q3 2023, representing an increase of $12.7 million (or 29.7%)
year-over-year. Adjusted EBITDA margin of 19.7% in Q3 2024 is consistent
with the Company's full year margin guidance of 19-20% and compares to
adjusted EBITDA margin of 20.9% reported in the third quarter of 2023.
-- Adjusted net income for Q3 2024 was $34.7 million compared to $21.7
million in Q3 2023, representing an increase of $13.0 million (or 59.9%)
year-over-year driven by higher operating income. Adjusted diluted
earnings per share of $0.28 in Q3 2024 compared to $0.18 in Q3 2023,
representing an increase of 55.6% year-over-year.
-- Operating cash flow was $258.8 million in Q3 2024 compared to $(30.0)
million in Q3 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 0.8x compared to
2.4x as of December 2023 (2.0x as of June 30, 2024) as the Company
utilized its strong operating cash flow in Q3 2024 to make repayments to
its revolving credit facility and deleverage the balance sheet while
continuing to invest in its growth initiatives.
_______________________
(1) As defined in the "Non-IFRS Financial Measures" section
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 $1,045 -- $1,065 million from $1,020 -- $1,060 million previously, representing robust year-over-year growth of approximately 30% at the mid-point of guidance compared to 2023 levels. We are narrowing our full year adjusted EBITDA range to $205 -- $210 million from $200 -- $210 million previously, representing approximately 19% -- 20% adjusted EBITDA margin. We reaffirm our expectations that capital expenditures will be $200 -- $220 million, comprising primarily growth investments to support CHORUS and the previously outlined growth initiatives across our three business areas. We continue to expect favourable working capital contributions related to the Telesat Lightspeed program to result in positive free cash flow in 2024 allowing us to continue to deleverage our balance sheet
FINANCIAL OVERVIEW
KEY INDICATORS SUMMARY
Third Quarters Ended Nine Months Ended
----------------------------- ------------------------------
(in millions of
Canadian
dollars, except Sept. 30,
per share data) Sept. 30, 2024 2023 Sept. 30, 2024 Sept. 30, 2023
---------------- -------------- ------------- -------------- --------------
Revenues $ 282.4 $ 204.7 $ 733.5 $ 602.6
Gross profit $ 75.7 $ 57.7 $ 199.8 $ 186.2
Gross margin 26.8 % 28.2 % 27.2 % 30.9 %
Adjusted
EBITDA(2) $ 55.5 $ 42.8 $ 146.2 $ 132.1
Adjusted EBITDA
margin(2) 19.7 % 20.9 % 19.9 % 21.9 %
Adjusted Net
Income(2) $ 34.7 $ 21.7 $ 76.0 $ 70.1
Adjusted Diluted
EPS(2) $ 0.28 $ 0.18 $ 0.61 $ 0.58
---------------- -------------- ------------- -------------- --------------
As at
---------------------------------- ------------------------------------------
(in millions of Canadian dollars,
except for ratios) September 30, 2024 December 31, 2023
---------------------------------- -------------------- --------------------
Backlog $ 4,578.1 $ 3,097.0
Net debt(2) to Adjusted TTM(3) 0.8x 2.4x
EBITDA ratio
---------------------------------- --- --------------- --- ---------------
REVENUES BY BUSINESS AREA
Third Quarters Ended Nine Months Ended
---------------------------- ------------------------------
(in millions of
Canadian Sept. 30, Sept. 30,
dollars) 2024 2023 Sept. 30, 2024 Sept. 30, 2023
---------------- ------------- ------------- -------------- --------------
Geointelligence $ 48.3 $ 48.4 $ 154.7 $ 147.6
Robotics & Space
Operations 66.5 61.9 215.1 183.5
Satellite
Systems 167.6 94.4 363.7 271.5
---------------- --- -------- --- -------- --- --------- --- ---------
Consolidated
revenues $ 282.4 $ 204.7 $ 733.5 $ 602.6
---------------- --- -------- --- -------- --- --------- --- ---------
Revenues
Consolidated revenues for the third quarter of 2024 were $282.4 million, representing an increase of $77.7 million (or 38.0%) from the third quarter of 2023. The year-over-year increase in revenues was driven by higher work volumes across our business, with strong contributions from our Satellite Systems and Robotics & Space Operations businesses.
(MORE TO FOLLOW) Dow Jones Newswires
November 15, 2024 05:45 ET (10:45 GMT)
Comments