CAE reports first quarter fiscal 2022 results

  • Revenue of $752.7 million up 37% vs. $550.5 million in prior year
  • EPS of $0.16 vs. negative $0.42 in prior year
  • Adjusted EPS(1) of $0.19 ($0.15 excluding COVID-19 government support programs(2)) vs. negative $0.11 (negative $0.24 excluding COVID-19 government support programs) in prior year
  • Operating income(3) of $86.2 million vs. loss of $110.3 million in prior year
  • Adjusted segment operating income(4) of $98.4 million ($84.8 million excluding COVID-19 government support programs(5)) vs. loss of $2.1 million (loss of $46.5 million excluding COVID-19 government support programs) in prior year
  • Concluded US$1.05 billion acquisition of L3Harris Technologies’ Military Training business post quarter

Montreal, Canada, August 11, 2021

CAE today reported revenue of $752.7 million for the first quarter of fiscal 2022, compared with $550.5 million in the first quarter last year. First quarter net income attributable to equity holders was $46.4 million ($0.16 per share) compared to a loss of $110.6 million (negative $0.42 per share) last year. Adjusted net income(6) in the first quarter of fiscal 2022 was $55.6 million ($0.19 per share) compared to a loss of $30.3 million (negative $0.11 per share) last year.

Operating income this quarter was $86.2 million (11.5% of revenue), compared to a loss of $110.3 million in the first quarter of fiscal 2021. First quarter adjusted segment operating income was $98.4 million (13.1% of revenue) compared to a loss of $2.1 million last year. Adjusted segment operating income excluding COVID-19 government support programs was $84.8 million (11.3% of revenue) compared to a loss of $46.5 million last year. All financial information is in Canadian dollars unless otherwise indicated.Summary of consolidated results

(amounts in millions, except per share amounts)Q1-2022Q1-2021Variance %
Revenue$ 752.7 $ 550.5 37 %
Operating income (loss)$ 86.2 $ (110.3)178 %
Adjusted segment operating income (loss) (SOI)$ 98.4 $ (2.1)4,786 %
As a % of revenue% 13.1 % — 
Adjusted SOI excluding COVID-19 government support programs$ 84.8 $ (46.5)282 %
As a % of revenue% 11.3 % — 
Net income (loss)$ 47.3 $ (110.0)143 %
Net income (loss) attributable to equity holders of the Company46.4 $ (110.6)142 %
Basic and diluted earnings per share (EPS)0.16 $ (0.42)138 %
Adjusted net income (loss)55.6 $ (30.3)283 %
Adjusted EPS0.19 $ (0.11)273 %
Adjusted net income (loss) excluding COVID-19 government support programs (7)$ 45.6 $ (62.9)172 %
Adjusted EPS excluding COVID-19 government support programs0.15 $ (0.24)163 %
Order intake(8)521.5 $ 417.1 25 %
Total backlog(8)7,934.1 $ 8,550.9 (7 %)

“Our positive momentum continued into the new fiscal year and I am pleased with our strong first quarter performance, punctuated by 37% year over year revenue growth and $0.19 of adjusted earnings per share,”  said Marc Parent, CAE’s President and Chief Executive Officer. “We made important strategic progress during the quarter, penetrating more share in the Civil training market with two new ten-year exclusive airline training agreements, and two new partnerships with OEMs in the emerging Advanced Air Mobility market. In Defence, we won prime contracts and key positions on major IDIQs that significantly expand CAE’s customer base and market reach. Subsequent to the end of the quarter, we announced our $1 billion, five-year research and development program, Project Resilience, to develop the technologies of tomorrow, including digitally immersive solutions using data ecosystems and artificial intelligence in civil aviation, defence and security and healthcare.”    
On CAE’s outlook, Marc Parent added, “we expect continued strong year over year growth in fiscal year 2022, as recovery takes hold in our end markets, we integrate our recent acquisitions and ramp up our cost savings initiatives. The slope of recovery to pre-pandemic levels and beyond continues to depend on the timing and rate at which border restrictions can be safely lifted and normal activities resume in our end markets and in the geographies where we operate. Notwithstanding disparate global vaccination rates and volatile border rules which obscure normal market visibility, we still expect strong growth in Civil, weighted more to the second half. In Defence, we are extremely pleased to have concluded the L3Harris Technologies Military Training business acquisition as early as we did, thereby creating the world’s leading platform-agnostic, global training and simulation defence pure play business. COVID-related headwinds persist for international defence business; however, we view them as temporary, and we also expect strong growth in Defence this fiscal year, similarly weighted to the back half. In Healthcare, our outlook is for continued growth involving our core Healthcare training and simulation products. We made several highly strategic moves over the last year-and-a-half to expand CAE’s position and further strengthen the Company. The multi-year outlook for CAE is more compelling than ever, and we expect to deliver superior and sustainable growth and strong free cash flow(9) over the long-term.”Civil Aviation Training Solutions (Civil)

First quarter Civil revenue was $432.9 million, up 75% compared to the first quarter last year. Operating income was $59.0 million compared to a loss of $97.9 million in the same quarter last year. Adjusted segment operating income was $69.7 million (16.1% of revenue) compared to a loss of $16.2 million in the first quarter last year. Adjusted segment operating income excluding COVID-19 government support programs was $64.5 million (14.9% of revenue) compared to a loss of $38.8 million in the same quarter last year. During the quarter, Civil delivered 11 full-flight simulators (FFSs)(10) to customers and first quarter Civil training centre utilization(11) was 56%.

During the quarter, Civil signed training solutions contracts valued at $338.1 million, including contracts for five FFSs sales. Notable training contracts for the quarter include ten-year exclusive aviation training agreements with Scandinavian Airlines (SAS) and WestJet, four-year business aviation training agreements with Journey Aviation and GAMA Aviation and a three-year business aviation training agreement with Avcon Jet AG. 

Civil also made progress in the Advanced Air Mobility market with its selection 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. Civil also announced a strategic partnership with Volocopter to develop, certify and deploy an innovative pilot training program and courseware development for eVTOL operations. 

The Civil book-to-sales ratio(8) was 0.78x for the quarter and 0.88x for the last 12 months. The Civil backlog at the end of the quarter was $4.2 billion.

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