MDA has released its first earnings report since the company went public in April of this year. The report states in part that revenue from Q1 increased 19.6% over Q1 2020 to $123.4 million.
In the earnings call MDA CEO Mike Greenley said “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 we’ve we’ve discussed to our IPO, which will underpin our growth over the next number of years.”
Those flagship programs include the Canadian Space Agency Canadarm3, the Canadian Surface Combatant program and the Telesat LEO Constellation.
Vito Culmone, MDA’s Chief Financial Officer, reiterated what was in the MDA IPO prospectus with regards to near-term future revenue growth saying “we believe an opportunity exists to grow our revenues from approximately $411 million in fiscal 2020 to between $800 and $900 million in fiscal 2022.”
In the press release on the earnings, Greenley also stated that “our Satellite Systems segment in particular has returned to normal operating levels and that positions us well to deliver on our growth plans.”
With respect to the COVID-19 pandemic and lockdowns, Greenley said the company had adjusted to new work environment and it was not an issue at this point.
One of the questions from an analyst related to component shortages from Honeywell. The analyst asked how it would affect MDA. Greenley said it was not impacting them at this time.
“It could affect our business in terms of like the overall, you know, satellite programs that are relying on those components, but in terms of us having our orders and delivering into them? We’re, you know, that does not get in the way of our systems and subsystems and what we’re delivering. So right now we’re not impacted by that in any material way.”
Other highlights from the fiscal quarter included;
- Adjusted EBITDA increased 129.6% or $22.0 million over Q1 2020 to $39.1 million
- Backlog 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 and;
- 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.