MONTRÉAL, May 03, 2021 (GLOBE NEWSWIRE) — Bombardier (TSX: BBD.B) today announced preliminary financial results and select operating metrics for the first quarter ended March 31, 2021.
First Quarter 2021 Preliminary Results and Select Operating Metrics
- Business jet revenues are expected to be $1.3 billion, an increase of 18% year-over-year.
- EBIT and adjusted EBITDA(1) from continuing operations are expected to be $19 million and $123 million, respectively.
- Free cash flow usage(1) from continuing operations is expected to be $405 million including ~$100 million of non-recurring cash items(2). Cash flows from operating activities (continuing operations) expected to be $372 million and net additions to PP&E and intangible assets (continuing operations) expected to be $33 million.
- Expected pro-forma liquidity(3) of $2.6 billion remaining after ~$2.4 billion expected to be deployed toward balance sheet deleveraging year-to-date.
- Business aircraft deliveries for the first quarter expected to be 26 units.
- Remains on track to deliver an expected 110-120 business aircrafts in 2021(4).
“The preliminary financial results we are sharing today validate the actions we have taken to reposition our business and reflect the progress we are making on our strategic priorities,” said Éric Martel, President and Chief Executive Officer of Bombardier. “The first quarter was a strong start to the year, with our cost reduction initiatives beginning to contribute to the bottom line, continued progress of our Global 7500 learning curve and robust demand supporting significant year-over-year margin expansion. Looking ahead, our markets are continuing to show signs of improvement and our plans and financial performance for the year remain on track.”
The preliminary financial results and selected operating metrics included in this press release are based on information available as of May 3, 2021, and management’s initial review of operations for the first quarter ended March 31, 2021. As previously announced, the Corporation will disclose its final financial results on May 6, 2021.
In a separate press release, Bombardier announced that it has launched consent solicitations with respect to its outstanding senior notes or debentures (with respect to any individual series, a “Consent Solicitation” and collectively, the “Consent Solicitations”). On April 22, 2021, Bombardier received a letter from counsel to a holder of 2034 Notes, claiming that the Corporation breached certain covenants under the indenture governing the 2034 Notes. The Corporation believes that these allegations are without merit and that the Corporation has not breached any covenant under the indenture. With the assistance of external advisors, the Corporation evaluated a range of options and determined that initiating the Consent Solicitations is the most expedient and efficient path to maintain value and protect the Corporation and its stakeholders.
Bombardier is a global leader in aviation, creating innovative and game-changing planes. Our products and services provide world-class experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.
Headquartered in Montréal, Canada, Bombardier is present in more than 12 countries including its production/engineering sites and its customer support network. The Corporation supports a worldwide fleet of approximately 4,900 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments and private individuals.