CAE reports fourth quarter and full fiscal year 2021 results

All financial information is in Canadian dollars.

Montreal, 19 May 2021 – CAE today reported annual revenue of $3.0 billion, compared to $3.6 billion last year. Annual operating income was $48.4 million and adjusted segment operating income was $280.6 million compared to $590.4 million last year. Adjusted segment operating income excluding COVID-19 government support programs was $153.2 million this year. Annual net loss attributable to equity holders was $47.2 million (negative $0.17 per share) compared to net income of $311.4 million ($1.16 diluted earnings per share) in fiscal year 2020. Adjusted net income was $127.1 million ($0.47 per share) this year, compared to $359.7 million ($1.34 per share) last year. Adjusted net income excluding COVID-19 government support programs was $33.6 million ($0.12 per share) this year.

Fourth quarter fiscal 2021 revenue was $894.3 million, compared with $977.3 million last year. Fourth quarter net income attributable to equity holders was $19.8 million ($0.07 per share) compared to $78.4 million ($0.29 per share) last year. Adjusted net income in the fourth quarter was $63.2 million ($0.22 per share), compared to $122.3 million ($0.46 per share) last year. Adjusted net income excluding COVID-19 government support programs was $35.9 million ($0.12 per share) this quarter.

“CAE demonstrated mettle and resiliency during the fiscal year by successfully confronting the challenges of COVID-19, and at the same time, seizing on opportunities to fundamentally strengthen the Company for the future,” said Marc Parent, CAE’s President and Chief Executive Officer. “We harnessed our One CAE culture and secured highly strategic growth opportunities, launched new digitally-enabled services and software solutions, innovated business processes, structurally lowered our cost base, and bolstered key talent – all of which give us greater potential than ever before for higher growth and profitability in the years ahead.”

Marc Parent added, “Turning to our results, given the magnitude of COVID-19 impacts, I am especially pleased with what we have been able to deliver in fiscal 2021. In the face of the biggest-ever shock in the history of civil aviation and major disruptions across the defence and healthcare markets, CAE rebounded to quarterly profitability and positive free cash flow(9) after only our first quarter. Our recovery momentum has continued into the fourth quarter with average training network utilization of 55% and sequentially higher margins in Civil, order bookings to sales breaking above 1.1x in Defence, and record quarterly revenue in Healthcare. For CAE overall, we generated $0.22 adjusted EPS in the quarter and $0.47 adjusted EPS for the year. We also generated strong annual free cash flow of $347 million, serving as a testament to CAE’s resiliency as a good port in a storm.”    

On CAE’s outlook, Marc Parent added, “we are making important progress to galvanize CAE as an industrial technology leader and position the Company for higher growth. This includes the integration of our four recent acquisitions in Civil that will strengthen our offering and expand our addressable market with highly innovative software solutions. In Defence, the opportunity to acquire L3Harris’ Military Training business will significantly accelerate our Defence growth strategy and align us more closely with national defence priorities. In addition, we maintain the financial flexibility and bandwidth to continue to cultivate a pipeline of sustainable growth opportunities, including the deployment of expansion capital and customer outsourcings. We expect strong growth in fiscal year 2022, with the slope of recovery continuing to depend on the timing and rate at which travel restrictions and quarantines can be safely lifted in our various geographies and normal activities resume in our end markets. For the long-term, we are more confident than ever that CAE will emerge from this period in a position of even greater strength.”

Civil Aviation Training Solutions (Civil)

Fourth quarter Civil revenue was $388.2 million, down 6% compared to the preceding quarter, and down 36% compared to the same quarter last year. Operating income was $40.5 million compared to $48.4 million in the third quarter and $151.5 million in the fourth quarter last year. Fourth quarter Civil adjusted segment operating income was $66.6 million (17.2% of revenue), compared to $62.0 million (15.0% of revenue) in the third quarter and $153.6 million (25.5% of revenue) in the fourth quarter last year. Adjusted segment operating income excluding COVID-19 government support programs was $46.9 million (12.1% of revenue) this quarter and $58.4 million (14.2% of revenue) in the third quarter. Fourth quarter Civil training centre utilization(10) was 55% and has trended at a similar level since the end of the quarter.

Annual Civil revenue was $1,412.9 million, down 35% compared to last year. Annual operating income was $6.5 million compared to $473.3 million last year, and annual adjusted segment operating income was $164.3 million (11.6% of revenue) compared to $479.4 million (22.1% of revenue) last year. Adjusted segment operating income excluding COVID-19 government support programs was $100.7 million this year (7.1% of revenue). Annual Civil training centre utilization was 47%.

During the quarter, Civil signed training solutions contracts valued at $385.8 million, including long-term training services agreements and the sale of 4 full-flight simulators (FFSs)(11). For the year, Civil booked orders for $1.3 billion, demonstrating CAE’s continued momentum as the training partner of choice for airlines, business jet operators and pilots worldwide. These included 11 FFS sales and comprehensive, long-term training agreements with customers worldwide, including Iberia, Líneas Aéreas de España, Azul Brazilian Airlines, Bundeswehr in Germany, Virgin Atlantic, Alitalia and Air France. In fiscal year 2022, Civil expects to maintain its leading share of the available FFS sales and expects to deliver upwards of 30 FFSs to customers worldwide.

The Civil book-to-sales(8) ratio was 0.99x for the quarter and 0.89x for the last 12 months. The Civil backlog at the end of the year was $4.3 billion, which is down 20% from the prior year period.

Since the end of the quarter, in the Advanced Air Mobility market, CAE announced that it has been selected by Jaunt Air Mobility to lead the design and development of the Jaunt Aircraft Systems Integration Lab (JASIL) for the company’s new all-electric vertical take-off and landing (eVTOL) aircraft, the Journey aircraft. By leveraging CAE’s 70+ years of experience in high-fidelity simulation, CAE will work hand-in-hand with Jaunt to bring best-in-class simulation and modeling to the aircraft development program from inception.

Link to full Press Release