Chorus Aviation announces strong fourth quarter and year-end 2016 earnings
Delivering regional aviation to the world
Selected Q4 2016 information:
- Adjusted EBITDA1, excluding other items of $69.3 million, up 5.6%.
- Adjusted net income1, excluding other items of $31.2 million, down 7.5%.
- Adjusted net income1, excluding other items per basic share of $0.26 down 7.1%.
- Net income of $12.7 million, up 1.2%.
- Net income per basic share of $0.10, consistent with Q4 2015.
Selected annual information:
Adjusted EBITDA1, excluding other items of $248.1 million, up 8.7%.
Adjusted net income1, excluding other items of $102.0 million, down 11.6%.
Adjusted net income1, excluding other items per basic share of $0.83, down 12.6%
Net income of $111.8 million, up 338.4%.
Net income per basic share of $0.91, up 333.3%.
HALIFAX, Feb. 16, 2017 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (CHR.TO) today announced strong financial results for the fourth quarter and fiscal year ended December 31, 2016.
“Our achievements in 2016 significantly advanced Chorus’ vision of delivering a diversified suite of regional aviation solutions to the world,” said Joe Randell, President and Chief Executive Officer, Chorus. “Our overall fiscal results were in line with our expectations. The Capacity Purchase Agreement (‘CPA’) with Air Canada continues to successfully deliver strong and stable financial results, as we modernize our fleet and improve our cost competitiveness.”
“We achieved a 44.0% increase year-over-year in our aircraft leasing revenue under the CPA, to $99.0 million. The creation of Jazz Technical Services and its improving efficiency and success in growing third-party business, provides a platform for future growth. Voyageur’s new structure, with renewed focus on its core businesses, including the establishment of Voyageur Avparts, generated positive returns in support of our corporate objectives.”
“We finished 2016 with a significant milestone, the establishment of Chorus Aviation Capital Corp. (‘CAC’) as a regional aircraft leasing company. CAC has the potential to become one of the leading players in this growing industry sector on a global level. The private placement of convertible debt units with Fairfax Financial will provide us with cost effective and flexible capital, that will enable us to accelerate the execution of our regional aircraft leasing plan,” continued Mr. Randell.
“For fiscal year 2016, we achieved increases in operating income and adjusted EBITDA, excluding other items of 1.3% and 8.7%, respectively. I’m very proud of our team’s accomplishments. The momentum achieved in 2016 positions us well for ongoing, long-term profitability and success,” Mr. Randell concluded.
2016 STRATEGIC ACCOMPLISHMENTS
In 2016, Chorus strengthened its core businesses and executed on its diversification and growth objective by:
Announcing the establishment of Chorus Aviation Capital Corp., with a view to building a global regional aircraft leasing business.
- Securing $200.0 million in capital through a private placement of convertible debt units with Fairfax Financial; closing expected by March 31, 2017.
- Executing on its first significant non-CPA aircraft leasing agreement with Air Nostrum for four new CRJ1000s with two already delivered in 2016.
- Growing aircraft leasing revenue under the CPA to $99.0 million or by 44.0%; bringing the total Q400s under lease to 34 aircraft by year end.
- Strengthening Voyageur through a new corporate structure and re-branding, including the establishment of Voyageur Avparts and Voyageur Aerotech.
- Redeploying former CPA Dash 8-100s via third-party leases and new Voyageur contract flying activity.
- Building inventory for the Voyageur Avparts business with three Dash 8-100s for disassembly / part out thereby maximizing the end of life value of the fleet.
- Doubling the hangar floor capacity at the Voyageur facility in North Bay to enable growth in the specialty MRO market.
- Establishing Jazz Technical Services and securing two third-party maintenance contracts.
- Executing on the fleet modernization strategy by adding 12 larger, more efficient Q400s, and retiring 16 older smaller gauge Dash 8-100s and CRJ200s.
- Improving market competitiveness under the CPA through fleet modernization, flowing more than 300 pilots (since January 2015) to Air Canada through the pilot mobility program, and achieving a new, long-term collective agreement with maintenance and engineering employees until 2025.
- Investing $6.0 million in employee separation programs to change workforce demographic and reduce ongoing costs.
Posted on February 16, 2017, in Chorus Aviation, Jazz Air LP, Uncategorized, Voyageur Airways and tagged Chorus Aviation reports 2016 financial results, Chorus building global regional aircraft leasing business. Bookmark the permalink. Leave a comment.