Macdonald Dettweiler and Associates Ltd. (MDDWK.PK)
Q1 2010 Earnings Call
May 5, 2010 5:30 pm ET
Wendy Keyser – External Relations
Daniel Freedman – President, Chief Executive Officer
Anil Wirasekara – Executive Vice President, Chief Financial Officer
I would like to welcome everyone to the Macdonald Dettweiler and Associates Ltd. Q1 earnings conference call. (Operator Instructions)
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This conference call and webcast, which includes the business update first quarter 2010 results and the question and answer session, may contain certain forward-looking statements and information, which reflects the current view of Macdonald Dettweiler and Associates Ltd., MDA with respect to future events and financial performance.
Forward-looking statements generally can be identified by the use of forward-looking terminology such as may, will, expect, intend, anticipate, plan, foresee, believe or continue, or the negative of such term or variations or similar terminology. Any such forward-looking statements are based on MDA’s current expectations, estimates, projections and assumptions made in light of its experience and its perception of historical trends.
Any such forward-looking statements are subject to risks and uncertainties and MDA’s actual results of operations could differ materially from historical results or current expectations. You are referred to the risk factors described in the MDA’s most recent management discussion and analysis, annual information form and other documents on file with the Canadian Securities Regulatory Authorities, available online at
And forward-looking statements and information contained in this release and the associated conference call and webcast represent MDA’s views only as of today’s date. MDA disclaims any intention or obligation to update or review any forward-looking statements whether as a result of new information, future events or otherwise, other than as required by law, rule or regulation. You should not place undue reliance on forward-looking statements.
Mr. Freedman, you may begin your conference.
Good afternoon, ladies and gentlemen and thank you for joining us today for MDA’s first quarter 2010 conference call. With me is Anil Wirasekara, our Chief Financial Officer.
I’d like to take this opportunity to discuss the strategic progress of the company since this time last year. Anil will then review our long-term financial performance and the Q1 results, and then we will open the line to answer your questions.
We will be using a Power Point presentation during our discussion that can be found on our website under events in the investor section. This presentation follows last year’s annual general meeting presentation that we gave in Toronto. The black text represents words that have not changed since last year’s presentation and the blue text represents all the updated information.
As we explained last year, through the economic slowdown we managed the business that were largely unaffected as we always have and those that were affected, we managed very differently. The presentation color-code unaffected businesses in green. These are our System business, and our Information Products Geospatial and Insurance businesses.
The presentation color-codes the effected businesses in yellow, which include the Information Products Lending and Conveyancing businesses. We maintain this color scheme to report progress although we are now returning to manage all our businesses including the yellow business as we always have. Business as usual.
Turning now to the presentation and Slide 1, for those of you who are on our website, you’re going to have to flip the slides. Those of you on the webcast, we’ll do that for you. Slide 1 has not changed significantly from last year. It shows Systems and Geospatial and Insurance as green which are businesses that were not dramatically affected by the recession and the Conveyancing and Lending as I mentioned in yellow.
On the right hand side, you can see our operating and earnings. Anil of course is going to show you real numbers. I’m just showing you trends up. Up to 2009, you can see that we have a healthy trend on all the unaffected businesses for a long time including of course the last couple of years, and in particular 2009, and even better on Q1 2010.
The Lending and Conveyancing business however, took a reset in 2008 during the year and came down as the conveyancing transactions in the markets we operate were decreased and since then we’ve stabilized and are moving ahead again.
What I said last year was that we kept on managing the unaffected or green businesses the same way that we have in the past; namely with long term plans, long term strategic investment to deliver strong organic, predictable growth over a period of time and that has continued to happen although the growth as we’ll see later, is picking up quite nicely in that area.
On the affected businesses to what I called last year managing through turbulent times. We focused on long-term goals, but we took a very significant sizing to the market reality, which was about half the volume. Having said that, we did continue to make significant investments in new opportunities and positioning ourselves for future rebound and you’ll see how that is playing out and will lead to growth once again in the yellow affected areas.
All of those managing through turbulent times objectives have been met and as I just recently said, we’re kind of returning back to the normal mode of managing the business in the yellow area also.
So what I’d like to do now is just walk through each of the businesses, go over the strategic position and strategy that I went over last year which is still in black because I haven’t changed it. I may modify it a little bit, as we go along, and then show you the progress against that strategy for each area.