Category: CAE

CAE awards remaining two scholarships of its 2019 CAE Women in Flight program

Provided by CAE Inc

  • CAE announces scholarship recipients of AirAsia’s cadet pilot program and American Airlines’ Cadet Academy.
  • Discover the winners of the 2019 CAE Women in Flight Scholarship by clicking here.

Montreal, Canada, September 3, 2019 (NYSE: CAE; TSX: CAE) – CAE unveiled today the winners of AirAsia’s cadet pilot program and the American Airlines’ Cadet Academy for its 2019 CAE Women in Flight scholarship program. The two recipients now join the ranks of CAE’s Women in Flight ambassadors, marking the successful launch of a unique annual program tailored to create role models for the next generation of professional pilots.

“We are proud to complete the first edition of the CAE Women in Flight scholarship program with our five airline partners. These brand ambassadors will help drive awareness, promote the pilot profession among women, and encourage diversity in aviation. We want to help young women identify themselves as future pilots by proactively promoting a better gender balance, and  encouraging the industry to engage on gender diversity in aviation and share ideas for making scalable changes,” said Nick Leontidis, CAE’s Group President, Civil Aviation Training Solutions. “We congratulate the winners and look forward to accompanying our new ambassadors as professional pilots with our airline partners.”

CAE is proud to welcome its two new CAE Women in Flight ambassadors:

  • Cindy Yoke Cheng Wong, winner of the AirAsia cadet pilot program
  • Alicia Hunt, winner of the American Airlines Cadet Academy

“Becoming a pilot can be challenging. As a CAE Women in Flight ambassador, I can be a role model for women who want to become pilots and show them what to expect,” said Cindy, aged 24, from Kuala Lumpur, Malaysia.

“Nothing in the world will build your confidence like flying. The sky isn’t the limit,” said Alicia, aged 32, from California, United States.

About CAE Women in Flight

CAE’s Women in Flight scholarship program is an annual competitive program for female ambassadors who demonstrate leadership skills, perseverance and who are passionate about aviation. The CAE Women in Flight scholarship recipients will receive a full tuition scholarship that will cover the entire cost of training at CAE, including accommodation and travel. The CAE Women in Flight scholarship program was presented at the 2018 Farnborough Airshow. CAE partnered with five global airlines for this first edition. CAE unveiled Aeromexico, CityJet, easyJet, American Airlines and AirAsia as airline partners for the 2019 edition and announced the first three winners during the 2019 Paris Airshow. More details about the first edition of the program are available here. The CAE Women in Flight ambassadors will begin sharing their journey on social media in the coming weeks. Follow @CAEpilot on Instagram for the latest updates.

CAE to open new training centres in Bangkok and New Delhi to meet growing need for pilots in the region

Provided by CAE Inc.

Singapore, September 3, 2019(NYSE: CAE; TSX: CAE) – CAE announced today at the Asia Pacific Airline Training Summit (APATS) that it’s expanding its training capacity in Asia with a brand-new training centre in Bangkok, Thailand, to support Thai AirAsia’s growth in the region. In addition, CAE will open a brand-new training centre in Gurugram, National Capital Region (NCR) to support pilot training needs in India.

“These new training centres will provide local training solutions to meet the growing needs of our customers in Asia,” said Nick Leontidis, CAE’s Group President, Civil Aviation Training Solutions. “Asia is set to have the strongest demand for pilots over the next two decades, and CAE will be there to support growth in the region with the most comprehensive training solutions.”

As part of CAE’s existing long-term agreement with Thai AirAsia, the brand-new CAE Bangkok training centre will be located minutes away from Don Mueang International Airport and will provide a local solution to Thai AirAsia and support third party regional airline operators. CAE will begin with the deployment of two new CAE 7000XR Series Airbus A320 full-flight simulators, equipped with the innovative CAE Tropos™ 6000XR visual system. This new training centre in Bangkok will have a training capacity of up to six full-flight simulators and will be operational in 2020, subject to regulatory approvals. CAE has been providing training to Thai AirAsia at CAE Kuala Lumpur for more than 10 years.

CAE New Delhi Gurugram – CAE Simulation Training Private Limited (CSTPL) training centre is a joint venture between InterGlobe Enterprises and CAE. The brand-new training centre located near the Indira Gandhi International Airport in Gurugram, National Capital Region (NCR), will provide a local solution to pilot training for its airline partners and regional third-party operators. This new training centre will have two new CAE 7000XR Series Airbus A320 FFSs equipped with the CAE Tropos™ 6000XR visual system and will be deployed in 2020. CAE’s current joint venture training centre, is located in Greater Noida near New Delhi.

CAE signs commercial aviation training contracts in Asia

Provided by CAE Inc

  • A brand-new Korean low-cost carrier, Fly Gangwon, joins CAE’s global network of training customers in Asia
  • CAE and Philippine Airlines sign new agreements for pilot training services

Singapore, September 3, 2019 (NYSE: CAE; TSX: CAE) – CAE announced today at the Asia Pacific Airline Training Summit (APATS) the signing of a commercial aviation training contract with a brand-new Korean low-cost carrier in South Korea, Fly Gangwon. Philippine Airlines, an existing CAE training customer, also signed a new two-year agreement for pilot training with CAE Singapore – Singapore CAE Flight Training (SCFT) and CAE Tokyo – JAL CAE Flight Training (JCFT) joint ventures.

“We are excited to welcome a brand-new Korean carrier to CAE’s training network and we are proud to build on our existing relationships in Asia,” said Nick Leontidis, CAE’s Group President, Civil Aviation Training Solutions. “We are witnessing rapid growth in South Korea’s aviation market driven by low-cost carriers, and CAE’s comprehensive suite of training services will ensure their pilots are trained to the highest standards in the region.”

Fly Gangwon

Fly Gangwon, a new Korean low-cost carrier, based in Yangyang, has signed a five-year exclusive pilot training agreement with CAE for the Boeing 737 aircraft platform at CAE Seoul. Later this year, pilots will begin their initial type-rating training with CAE instructors at the centre.

Philippine Airlines

Philippine Airlines has signed a new two-year pilot training agreement with CAE Singapore – SCFT on the Boeing 777 FFS and with CAE Tokyo – JCFT on the Airbus A350 FFS.

CAE to enter 15-year exclusive business aviation training services agreement with Directional Aviation Capital affiliates and acquire fifty-percent of SIMCOM

Provided by CAE Inc/CNW

Flexjet, Flight Options, Flairjet, Sirio, Nextant Aerospace and Corporate Wings to train exclusively with SIMCOM and CAE 

MONTREAL, Aug. 29, 2019 /CNW Telbec/ – (NYSE: CAE) (TSX: CAE) CAE announced today that it has entered into a strategic partnership with Directional Aviation Capital (DAC), one of the largest, fastest growing, and most innovative corporate aviation service companies globally.

As part of this transaction, CAE will form a joint venture with DAC’s affiliate, Volo Sicuro, LLC and acquire for approximately US$85 million a fifty-percent stake in SIMCOM Holdings, Inc. In addition, DAC’s affiliated business aircraft operators, which include Flexjet, Flight Options, Flairjet, Sirio, Nextant Aerospace and Corporate Wings will enter into a 15-year exclusive training services agreement with SIMCOM and with CAE. Together, these aircraft operators have a rapidly growing fleet of approximately 175 business aircraft. In addition, to enhance its training offering, SIMCOM will purchase equipment from CAE’s latest product offering, including five full flight simulators. The transaction is subject to customary closing conditions.

“We are very pleased that Directional Aviation has chosen CAE to be its training partner of choice. Our investment in SIMCOM is another step in the expansion of CAE’s business aviation training business that gives us access to a rapidly growing customer base as Directional Aviation affiliates’ exclusive training partner for the next 15 years,” said Marc Parent, CAE’s President and CEO. “Both CAE and Directional are recognized for their innovative approach to business aviation, and we look forward to working with Directional affiliates and business partners and providing them with the most technologically enriched training programs, including our state-of-the-art simulation products and advanced digital solutions.”

“Directional Aviation is charting the course of private aviation, worldwide.  Today, we operate one of the largest business aviation fleets globally, and we plan on having significant growth in the future,” said Kenn Ricci, Principal of Directional Aviation Capital. “With this partnership with CAE, our operators will have access to the latest solutions in aviation training from the industry leader.”

“We have a clear vision for SIMCOM’s future as an innovative training provider focused on the owner-flown market as well as fleet operators,” said Eric Hinson, President and CEO, of SIMCOM.  “We are extremely pleased to partner with CAE and leverage their industry leading technology and training expertise to better serve our customers.”

CAE reports first quarter fiscal 2020 results and 10% dividend increase

Provided by CAE Inc

  • Revenue of $825.6 million vs. $722.0 million in prior year
  • EPS of $0.23 ($0.24 before specific items(1)) vs. $0.26 in prior year
  • Order intake(2) of $940.8 million for 1.14x book-to-sales(2) and $9.4 billion backlog(2)
  • Board of Directors approves 10% quarterly dividend increase from $0.10 to $0.11 per share
  • Current year results on IFRS 16 basis

Montreal, Canada, August 14, 2019

CAE today reported revenue of $825.6 million for the first quarter of fiscal 2020, compared with $722.0 million in the first quarter last year. First quarter net income attributable to equity holders was $61.5 million ($0.23 per share) compared to $69.4 million ($0.26 per share) last year. Net income before specific items(3) in the first quarter of fiscal 2020 was $63.2 million ($0.24 per share).

First quarter segment operating income(4) was $110.9 million (13.4% of revenue) compared with $98.5 million (13.6% of revenue) in the first quarter of last year. Segment operating income before specific items(5) in the first quarter of fiscal 2020 was $113.3 million (13.7% of revenue). All financial information is in Canadian dollars unless otherwise indicated.

“CAE had a good start to the fiscal year with 14 percent revenue growth, 15 percent higher operating income, and over $940 million of orders for a $9.4 billion backlog,” said Marc Parent, CAE’s President and Chief Executive Officer. “Performance was led by Civil, which delivered 29 percent operating income growth and showed continued strong demand for CAE’s innovative training solutions. The Bombardier Business Aircraft Training Business integration is progressing well, and we signed long-term training contracts with airline partners including LATAM, SAS and Air Europa. In Defence, we had strong top-line growth and lower operating income, which reflect quarterly variability and an income growth profile more heavily weighted to the second-half of the year. The Defence pipeline remained strong with over $4.2 billion of bids and proposals pending customer decisions. In Healthcare, revenue momentum from new products and an expanded salesforce continued into the first quarter. As we look to the remainder of the fiscal year, our outlook for CAE’s annual growth remains unchanged. In keeping with our capital allocation priorities, and underscoring our positive long-term view, I am pleased to announce that CAE’s Board of Directors has approved a one cent or 10% increase to CAE’s quarterly dividend, which becomes 11 cents per share, effective September 30, 2019. This represents CAE’s ninth consecutive dividend increase in as many years.”Summary of consolidated results

(amounts in millions, except operating margins and per share amounts) Q1-2020 Q1-2019Variance %
Revenue$825.6$722.014%
Segment operating income (SOI)$110.9$98.513%
Operating margins%13.4%13.6 
SOI before specific items$113.3$98.515%
Operating margins before specific items%13.7%13.6 
Net income$63.0$71.6(12%)
Net income attributable to equity holders of the Company$61.5$69.4(11%)
Earnings per share (EPS)$0.23$0.26(12%)
Net income before specific items$63.2$69.4(9%)
EPS before specific items$0.24$0.26(8%)
Total backlog$9,362.2$8,046.316%

Civil Aviation Training Solutions (Civil)

First quarter Civil revenue was $477.6 million, up 11% compared to the same quarter last year. Segment operating income was $98.6 million (20.6% of revenue) compared to $78.3 million (18.2% of revenue) in the first quarter last year. First quarter segment operating income before specific items was $101.0 million (21.1% of revenue), up 29% compared to the first quarter last year. First quarter Civil training centre utilization(6) was 76%.

During the quarter, Civil signed training solutions contracts valued at $693.8 million, including multi-year pilot training agreements with airlines including LATAM, SAS and Air Europa; and a new 5-year pilot training contract with Philippines AirAsia, which incorporates the highly innovative and data-driven CAE RiseTM Training System. Civil sold nine full-flight simulators (FFSs) during the quarter, including three to Southwest Airlines for the Boeing 737MAX, one to Korean Air for the Airbus A330, and one to Hawaiian Airlines for the Boeing 787.

The Civil book-to-sales ratio was 1.45x for the quarter and 1.54x for the last 12 months. The Civil backlog at the end of the quarter was a $5.1 billion.Summary of Civil Aviation Training Solutions results

(amounts in millions, except operating margins, SEU and FFSs deployed) Q1-2020 Q1-2019Variance %
Revenue$477.6$430.911%
Segment operating income$98.6$78.326%
Operating margins%20.6%18.2 
SOI before specific items$101.0$78.329%
Operating margins before specific items%21.1%18.2 
Total backlog$5,090.3$4,148.223%
Simulator equivalent unit (SEU)(7) 242 21314%
FFSs deployed 294 26013%

Defence and Security (Defence)

First quarter Defence revenue was $320.5 million, up 19% compared to the same quarter last year and segment operating income was $15.1 million (4.7% of revenue), down 30% compared to the first quarter last year, reflecting quarterly variability and an income growth profile more heavily weighted to the second-half of the year.

During the quarter, Defence booked orders for $219.5 million, including contracts with Lockheed Martin for C-130J simulators for the U.S. Air Force and U.S. Marine Corps. Other notable orders include a contract with L3 MAS to continue providing in-service support for the Royal Canadian Air Force’s CF-18 aircraft, and contracts to upgrade the German Eurofighter and Tornado aircraft simulators. New awards also included contracts for Naval training solutions for the Canadian Surface Combatant program and upgrades to the Swedish Navy’s Naval Warfare Training System.

The Defence book-to-sales ratio was 0.68x for the quarter and 0.83x for the last 12 months (excluding contract options). The Defence backlog, including options and CAE’s interest in joint ventures, at the end of the quarter was $4.3 billion. The Defence pipeline remains strong with over $4.2 billion of bids and proposals pending customer decisions.Summary of Defence and Security results

(amounts in millions, except operating margins) Q1-2020 Q1-2019Variance %
Revenue$320.5$268.319%
Segment operating income$15.1$21.5(30%)
Operating margins%4.7%8.0 
Total backlog$4,271.9$3,898.110%

Healthcare

First quarter Healthcare revenue was $27.5 million compared to $22.8 million in the same quarter last year, and first quarter segment operating loss was $2.8 million, compared to a loss of $1.3 million in the first quarter last year.

Healthcare announced a new CAE Centre of Excellence for simulation-based education at ESPA-Montreal, the first healthcare education and industry partnership devised to impact patient care in Quebec, Canada. As well, during the quarter, Healthcare delivered a custom simulator to Baylis Medical to support its cardiovascular transseptal puncture systems for physicians. As well, it collaborated with the Canadian Association of Schools of Nursing to develop courseware packages for student nurses that can be practiced with the CAE Juno manikin.Summary of Healthcare results

(amounts in millions, except operating margins) Q1-2020 Q1-2019Variance %
Revenue$27.5$22.821%
Segment operating loss$(2.8)$(1.3)(115%)
Operating margins%% 

Additional financial highlights

Free cash flow(8) was negative $102.1 million for the quarter compared to negative $85.8 million in the first quarter last year. The decrease in free cash flow results mainly from a higher investment in non-cash working capital, partially offset by an increase in cash provided by operating activities and lower maintenance capital expenditures. CAE usually sees a higher level of investment in non-cash working capital accounts during the first half of the fiscal year and tends to see a portion of these investments reverse in the second half.

Income taxes this quarter were $13.0 million, representing an effective tax rate of 17%, compared to 13% for the first quarter last year. The tax rate was higher due to the impact of tax audits in Canada last year, partially offset by a change in the mix of income from various jurisdictions.

Net finance expense this quarter was $34.9 million, $18.9 million higher than the first quarter of fiscal 2019, mainly from higher interest on long-term debt due to the issuance of unsecured senior notes in the fourth quarter of fiscal 2019 to fund the acquisition of the Bombardier BAT business, and higher interest on lease liabilities as a result of the adoption of IFRS 16.

Growth and maintenance capital expenditures(9) totaled $89.0 million this quarter.

Net debt(10) at the end of the quarter was $2,312.7 million for a net debt-to-capital ratio(11) of 49.4%. This compares to net debt of $1,882.2 million and a net debt-to-capital ratio of 43.9% at the end of the preceding quarter. Excluding the impacts of the adoption of IFRS 16, net debt would have been $2,058.4 million this quarter for a net debt-to-capital ratio of 46.3%.

Return on capital employed (ROCE)(12) was 11.9% this quarter compared to 12.6% in the first quarter last year, before specific items. Excluding the impacts of the adoption of IFRS 16, ROCE before specific items would have been 12.0% this quarter.

CAE will pay a dividend of 11 cents per share effective September 30, 2019 to shareholders of record at the close of business on September 13, 2019.

During the three months ended June 30, 2019, CAE repurchased and cancelled a total of 58,131 common shares under the Normal Course Issuer Bid (NCIB), at a weighted average price of $34.41 per common share, for a total consideration of $2.0 million.Management outlook for fiscal year 2020 unchanged

CAE’s core markets benefit from secular growth and the Company expects to continue exceeding underlying market growth in fiscal year 2020. In Civil, the Company expects to continue building on its positive momentum in training, increasing market share and securing new customer partnerships with its innovative training solutions. Civil expects operating income to grow in the upper 20 percent range on continued strong demand for its training solutions, including maintaining a leading share of FFS sales, and the integration of the recently acquired Bombardier BAT business. In Defence, the Company expects mid to high single-digit percentage operating income growth as it delivers from backlog and continues to win opportunities from a large pipeline. CAE expects Healthcare to achieve double-digit growth under its new leadership, expanded salesforce, and the continued launch of innovative products. Funding growth opportunities remains CAE’s top capital allocation priority and continues to be driven by and supportive of growing customer training outsourcings in its large core markets. The Company prioritizes market-led capital investments that offer sustainable and profitable growth and accretive returns and support its strategy to be the recognized worldwide training partner of choice. CAE currently expects total annual capital expenditures to increase modestly, by approximately 10 to 15 percent, in fiscal 2020, primarily to keep pace with growing demand for training services from its existing customers and to secure new long-term customer contracts. Management’s expectations are based on the prevailing positive market conditions and customer receptivity to CAE’s training solutions as well as material assumptions contained in this press release, quarterly MD&A and in CAE’s fiscal year 2019 MD&A.Corporate Social Responsibility

CAE creates significant value for customers, shareholders, and its employees. CAE products and services contribute to improvements in aviation safety, ensure defence forces are mission-ready, and help medical professionals save lives-a noble purpose that is a source of pride for CAE’s more than 10,000 employees worldwide. As the largest civil aviation training company in the world, and the only pure‑play aviation training company, it has an unwavering customer focus and commitment to innovation. CAE also plays an important role developing talent in its industry. “Women account for less than 5 percent of the global pilot pool and yet over 300,000 new pilots will be needed in civil aviation over the next decade,” said Marc Parent. “As the aviation training leader, we take it upon ourselves to ensure the industry accesses the full available talent pool. Among several exciting CAE initiatives, we launched the CAE Women in Flight scholarship to encourage more women to consider becoming pilots.” Bolstering talent is one of CAE’s top strategic priorities and the Company continually strives to be an employer of choice, ensuring that it engages and attracts the best people. Among several programs, CAE launched a Diversity and Inclusion initiative aimed firstly at gender balance. The objective is to ensure that women at CAE can realize their full potential as equal partners with men in the workforce and have every opportunity for advancement. CAE was selected for the 2019 Bloomberg Gender-Equality Index, which highlights 230 firms globally that are considered trailblazers in their commitment to transparency in workplace gender reporting.

CAE’s full report can be accessed here: 2019 Annual Activity and Corporate Social Responsibility Report.

CAE and LATAM Airlines Group extend training agreement

Provided by CAE Inc

Montreal, Québec, August 12, 2019

CAE and LATAM Airlines Group (LATAM) announced today another extension of their existing training agreement, adding six years to this longstanding training partnership. Over the terms of this renewed agreement, CAE will continue to train LATAM Airlines Group pilots and cabin crew at training centres throughout CAE’s network in South America, including at the recently inaugurated CAE Bogota training centre.

“We are pleased to extend our longstanding partnership with LATAM Airlines Group until the end of 2030 and we thank them for their continued trust in CAE to provide pilot and cabin crew training at CAE centres located throughout South America,” said Nick Leontidis, CAE’s Group President, Civil Aviation Training Solutions. “To meet the needs of our airline partners in the region, we have increased our training capacity by 40% over the past two years, and we now operate more than 25 full-flight simulators at CAE training centres in four South American countries.”

“CAE has been a valued partner over the past 18 years, providing initial and recurrent training for our pilots and cabin crew,” said Dario Pavez, Senior Director of Operations, LATAM Airlines Group. “With this extended agreement, our crew members will continue to benefit from world-class training.”

CAE trains more than 4,000 pilots and 9,000 cabin crew members per year for LATAM Airlines Group at CAE’s training centres located in the region.

CAE offers pilot training capacity on Airbus A320, A330/340, A350; ATR 72; Boeing 737, 767, 777, 787; Sikorsky S-76, S-92, Embraer Phenom 100/300 and AgustaWestland AW139 platforms in Bogota, Colombia; Santiago, Chile; Sao Paulo, Brazil; and Lima, Peru.

CAE to train over 700 new pilots for Southwest Airlines’ Destination 225° program

Provided by CAE Inc/CNW

CAE and Southwest Airlines sign 10-year cadet pilot training program

LOS ANGELES, Aug. 1, 2019 /CNW Telbec/ – (NYSE: CAE) (TSX: CAE) – CAE announced today the launch of a cadet pilot training program where CAE will train more than 700 new professional pilots over the next 10 years for Southwest Airlines’ Destination 225° program at CAE’s aviation academy in Phoenix, Arizona.

CAE cadet in training (CNW Group/CAE INC.)
CAE cadet in training (CNW Group/CAE INC.)

“Destination 225° will support Southwest Airlines by developing world-class pilots who are ready to fly ‘The Southwest Way’,” said Alan Kasher, Southwest Airlines’ Vice President of Flight Operations. “We’re proud to partner with CAE in this comprehensive pilot development mission designed to make a pathway to becoming a Southwest Pilot an attainable goal for passionate, qualified individuals. CAE is an experienced, global leader in pilot training programs, and we look forward to working together for years to come.”

“This is another important step in our long-term relationship with Southwest, we look forward to training the next generation of Southwest pilots at our aviation academy in Phoenix,” said Nick Leontidis, CAE’s Group President, Civil Aviation Training Solutions. “There is a growing need for airline pilots, and this program will set a new standard in initial pilot training and in the transition to a professional pilot career in the United States. We are committed to ensuring that our industry has the qualified pilots it requires, and this collaboration with Southwest, the largest U.S domestic carrier, is another great example of this commitment.”

Since 2002, CAE has been providing training equipment to Southwest Airlines in Dallas, where it currently operates more than 15 CAE Boeing 737NG full-flight simulators (FFS) including CAE’s 7000XR Series and more than 20 CAE flight training devices including, the latest XR Series suite. All devices are equipped with CAE Tropos™ 6000XR visual system and the latest Boeing 737 MAX FFS is scheduled to be delivered by the end of 2019 at Southwest Airlines’ training facility in Dallas.

CAE’s cadet pilot training program and Destination 225° 
CAE will screen, assess and train cadets selected by Southwest Airlines. Starting in January 2020, the selected cadets will begin FAA pilot licensing ground school followed by flight training at CAE. To join Southwest Airlines, the pilots can choose between two pathways to gain the Federal Aviation Administration (FAA) Airline Transport Pilot (ATP) requirements. In the first pathway, pilots can accumulate 1,500 hours as flight instructors at CAE Phoenix; in the second pathway, they have the opportunity to apply for First Officer positions with Destination 225° exclusive launch partners XOJET Aviation and Jet Linx. The business-jet pathway allows pilots to build their flying experience operating state-of-the-art business jets while enjoying the quality of life, compensation and benefits of being an XOJET Aviation or Jet Linx pilot, including the opportunity to upgrade to Captain.   

CAE, XOJET Aviation and Jet Linx, as well as global business aviation benchmarking organization ARGUS, were selected as exclusive partners for the Destination 225° cadet program because of their cultural alignment with Southwest Airlines, commitment to safety, and dedication to setting a new, enhanced standard for pilot training.

This training program is enabled by enhanced training, safety and operational reporting measures endorsed by Southwest Airlines and its exclusive partners. Both pathways lead to a transition Transport training program that bridges experience from flight instruction to commercial transport operations. Once completed, pilots with the required experience can apply to Southwest Airlines as First Officer candidates and undergo Southwest’s rigorous new-hire pilot training and Boeing 737NG type-rating training at the airline’s state-of-the-art training facility in Dallas. 

CAE accelerates digital transformation to enhance business aircraft pilot training experience

Provided by CAE Inc

Geneva, Switzerland, May 21, 2019 –

CAE announced today at the 2019 European Business Aviation Convention and Exhibition (EBACE) that new cutting-edge digital solutions are currently being deployed to deliver a superior training experience for the business aircraft pilot training market.

“Our digital team is dedicated to revolutionizing and elevating the training experience of pilots with the use of new and emerging technologies. We are making the training process much easier, allowing pilots to go back to flying much faster,” said Nick Leontidis, CAE’s Group President, Civil Aviation Training Solutions. “In a few simple clicks, using web tools or mobile devices, our customers can now plan training sessions at their convenience, submit training requests in an instant, and prepare in advance for their training event.”    

CAE is continuously rolling out integrated technologies and services to reduce the complexity of managing pilot training before, during, and after full-flight simulator sessions. New digital solutions are improving the training experience at key customer interactions – from scheduling training events to preparing for ground school and simulator sessions, and from submitting training requests to viewing training records.

CAE recently launched an electronic training and checking authorization (eTCA) application to better manage booking requests for training centres dedicated to business aviation. The CAE eTCA is a digital solution that has simplified the process for pilots booking their training requests, which they can now complete in a few simple clicks. The eTCA form is sent to customers upon receiving their training request and changes to an eTCA can be submitted remotely. This new application can be accessed via desktop, tablet or mobile device.

This eTCA is available for booking requests at CAE Amsterdam and CAE London Burgess Hill and will soon be offered at CAE Dubai. Further deployment to additional CAE training centres that are part of the European Aviation Safety Agency (EASA) network will follow in the upcoming months.

The CAE eTCA is the latest of CAE’s digital solutions such as the CAE Terminal™, an online customer portal that provides instant access to training requests, documentation, training records and reservation details. CAE also offers online reference materials which are accessible prior to training at CAE Dallas and CAE London Burgess Hill. Deployment of pre-course materials for other CAE training centres will be conducted starting next month.

CAE reports record fourth quarter and full fiscal year 2019 results

Provided by CAE Inc/CNW

  • Q4 revenue up 42% to $1.0 billion and annual revenue up 17% to $3.3 billion
  • Q4 and annual net income before specific items(1) up 55% and 13% vs. prior year periods
  • Q4 EPS of $0.46 ($0.48 before specific items(2)) up from $0.31 in prior year
  • Annual EPS of $1.23 ($1.25 before specific items) vs. $1.28 ($1.11 before specific items) in prior year
  • Record $4.0 billion annual order intake(3), including 78 Civil FFSs, and $9.5 billion order backlog(3)
  • Annual free cash flow(4) of $323.8 million for 98% cash conversion(5)
  • Return on capital employed(6) before specific items of 12.9% vs. 12.7% last year

MONTREAL, May 17, 2019 (GLOBE NEWSWIRE) — (NYSE: CAE; TSX: CAE) – CAE today reported revenue of $1.0 billion for the fourth quarter of fiscal year 2019, up 42% from the fourth quarter last year. Fourth quarter net income attributable to equity holders was $122.3 million ($0.46 per share) compared to $82.3 million ($0.31 per share) last year. Net income before specific items in the fourth quarter was $127.5 million ($0.48 per share), which represents a 55% EPS increase over the same period last year.

Annual fiscal 2019 revenue was $3.3 billion, up 17% from the prior year. Annual net income attributable to equity holders was $330.0 million ($1.23 per share) compared to $346.0 million ($1.28 per share) in fiscal year 2018. Before specific items, net income was $335.2 million ($1.25 per share) this year, compared to $297.9 million ($1.11 per share) last year, which represents a 13% EPS increase over the same period last year. All financial information is in Canadian dollars.

Summary of consolidated results

(amounts in millions, except operating margins and per share amounts) FY2019FY2018Variance %Q4-2019Q4-2018Variance %
   Restated*  Restated* 
Revenue$3,304.12,823.517%1,022.0720.942%
Operating profit(7)$480.6462.84%170.4117.545%
Operating margins%14.516.4 16.716.3 
Net income$340.1354.7(4%)125.485.646%
Net income attributable to equity holders of the Company$330.0346.0(5%)122.382.349%
Earnings per share (EPS)$1.231.28(4%)0.460.3148%
Net income before specific items$335.2297.913%127.582.355%
EPS before specific items$1.251.1113%0.480.3155%
Total backlog$9,494.98,068.318%9,494.98,068.318%

* Financial results reported were restated to reflect the accounting changes required by IFRS 15.

Specific items for fiscal 2019 include the costs arising from the acquisition and integration of Bombardier’s Business Aircraft Training (BAT) Business.

Specific items for fiscal 2018 include the net gains on disposal of our equity interest in the joint venture Zhuhai Xiang Yi Aviation Technology Company Limited (ZFTC) and the remeasurement of the previously held Asian Aviation Centre of Excellence Sdn. Bhd. (AACE) investment upon acquisition and the impacts of the enactment of the U.S. tax reform.

“We had a strong finish to fiscal year 2019, with fourth quarter revenue up 42% and earnings per share up 55% compared to last year; and for the year as a whole, CAE delivered a record performance, meeting our annual outlook, and further establishing itself as the worldwide leader in aviation training,” said Marc Parent, CAE’s President and Chief Executive Officer. “Annual revenue grew 17% and earnings per share grew 13% compared to last year, and we generated strong free cash flow. I am especially pleased with our record $4 billion in annual orders and $9.5 billion order backlog. Our continued success winning our customers’ trust further validates our training strategy and adds to the highly recurring profile of CAE’s business. In Civil, we delivered over one million hours of aviation training during the year and grew operating income by 13%. We also greatly expanded CAE’s position in business aviation training with the company’s largest-ever acquisition, making CAE the world’s leading provider of civil aviation training. Annual Civil orders totalled a record $2.8 billion, including additional airline training outsourcings and 78 full-flight simulator sales. In Defence, we grew annual operating income by 9% and booked $1.1 billion in orders, including training systems integration programs, for a record $4.5 billion Defence backlog. As well, we acquired AOCE, which together with our enhanced structure in the U.S., expands our market to include higher-level security programs. And in Healthcare, our new simulation products and expanded salesforce led to accelerated revenue growth toward the end of the fiscal year. We recently appointed a new Healthcare leader, with deep commercial experience in the healthcare field, to leverage our current progress and take the business to the next level of scale. As we look to the fiscal year ahead, we expect CAE to build on the positive momentum in training and to continue to deliver superior and profitable growth.”

Civil Aviation Training Solutions (Civil)
Fourth quarter Civil revenue was $593.4 million, up 50% compared to the same quarter last year, and segment operating income(8) was $115.5 million (19.5% of revenue) compared to $74.5 million in the fourth quarter last year. Fourth quarter Civil segment operating income before specific items(9) was $122.3 million (20.6% of revenue), up 64% compared to the fourth quarter last year. Fourth quarter Civil training centre utilization(10) was 75%.

Annual Civil revenue was $1.9 billion, up 15% compared to last year, and segment operating income was $344.3 million (18.4% of revenue). Annual segment operating income before specific items was $351.1 million (18.7% of revenue) this year and $311.8 million (19.2% of revenue) last year, representing a 13% increase. Annual Civil training centre utilization was 76%, reflecting continued strong usage of existing simulators and the recent deployment of additional simulator capacity to meet new demand from customers.

During the quarter, Civil signed training solutions contracts valued at a record $1.1 billion, including a 15-year exclusive pilot training contract with Avianca, and the sale of 28 full-flight simulators (FFSs). For the year, Civil booked orders for a record $2.8 billion, demonstrating CAE’s increased momentum as training partner of choice. These included 78 FFS sales and comprehensive, long-term training agreements with airlines including easyJet, CityJet, Endeavor, Air Asia and Volaris. In business aviation, Civil won long-term training contracts with customers worldwide, including OJets, Icon Aviation and Windsor Jets.

The Civil book-to-sales(3) ratio was 1.87x for the quarter and 1.48x for the last 12 months. The Civil backlog at the end of the year was a record $5.0 billion, which is up 22% from the prior year period.

Summary of Civil Aviation Training Solutions results

(amounts in millions except operating margins, SEU and FFSs deployed) FY2019FY2018Variance %Q4-2019Q4-2018Variance %
   Restated  Restated 
Revenue$1,875.81,625.315%593.4395.350%
Segment operating income (SOI)$344.3330.14%115.574.555%
Operating margins%18.420.3 19.518.8 
SOI before specific items$351.1311.813%122.374.564%
Operating margins%18.719.2 20.618.8 
Total backlog$5,039.64,131.122%5,039.64,131.122%
SEU(11) 2182066%2242126%
FFSs deployed 28625512%28625512%

Defence and Security (Defence)
Fourth quarter Defence revenue was $387.9 million, up 34% compared to the same quarter last year and segment operating income was $50.7 million (13.1% of revenue) compared to $36.3 million (12.5% of revenue) in the fourth quarter last year. Before expenses related to the acquisition and integration of Alpha-Omega Change Engineering (AOCE), Defence segment operating income for the quarter would have been $51.7 million (13.3% of revenue), up 42% compared to the fourth quarter last year. Annual Defence revenue was $1,306.7 million, up 21% over last year, and annual segment operating income was $131.5 million (10.1% of revenue). Before the AOCE-related expenses, annual Defence segment operating income would have been $134.8 million (10.3% of revenue), up 9% compared to last year.

During the quarter, Defence booked orders for $265.0 million. Notable wins include a contract with Boeing to provide a P-8A aircraft simulator for the Royal Air Force and simulator upgrade programs with the U.S. Navy as part of a U.S. foreign military sale on the Royal Australian Navy’s MH-60R helicopter training systems, the Royal Canadian Air Force for their C-130J simulators, the German Air Force for their Eurofighter simulators, and with Lockheed Martin for C-130J full-mission simulators for the U.S. Air Force.

For the year, Defence booked $1.1 billion in orders including a contract for the U.S. Air Force C-130H Aircrew Training Services program and the U.S. Navy CNATRA CIS program involving instruction at five Naval Air Stations to support primary, intermediate and advanced pilot training. Defence also won a contract to provide a comprehensive training solution and long-term training services for the Royal New Zealand Air Force NH90 helicopter program, and a contract from General Atomics to develop the synthetic training system for the UK Protector remotely piloted aircraft system. In addition, through CAE USA Mission Solutions and the acquisition of AOCE during the year, Defence obtained several U.S. Defense contracts to provide training and engineering support services on higher-level security programs.

The Defence book-to-sales ratio was 0.68x for the quarter and 0.83x for the last 12 months. Defence contracts often include contract options that extend beyond the initial funded year of these contracts. The Defence book-to-sales ratio including options was 1.28x for the quarter and 1.03x for the last 12 months. The Defence backlog, including options and CAE’s interest in joint ventures, at the end of the year was a record $4.5 billion.

Summary of Defence and Security results

(amounts in millions except operating margins) FY2019FY2018Variance %Q4-2019Q4-2018Variance %
   Restated  Restated 
Revenue$1,306.71,083.021%387.9290.534%
Segment operating income$131.5123.96%50.736.340%
Operating margins%10.111.4 13.112.5 
Total backlog$4,455.33,937.213%4,455.33,937.213%

Healthcare
Fourth quarter Healthcare revenue was a record $40.7 million, up 16% compared to the same quarter last year, and fourth quarter segment operating income was $4.2 million (10.3% of revenue), compared to $6.7 million (19.1% of revenue) in the fourth quarter last year. Annual Healthcare revenue was $121.6 million compared to $115.2 million last year, and annual segment operating income was $4.8 million (3.9% of revenue), compared to $8.8 million (7.6% of revenue) last year.

CAE Healthcare reached several strategic milestones during the year, strengthening its position as the innovation leader in simulation-based healthcare education and training. Innovative product launches include, CAE Ares, an emergency care manikin; Anesthesia SimSTAT Appendectomy and Robotic Surgery modules, screen-based simulation approved by the American Board of Anesthesiology for maintenance of certification credits; two new Blue Phantom skills trainers for ultrasound simulation training; and CAE Luna, an innovative infant simulator. Healthcare broadened its market reach by expanding its sales force and entered into several new distributor agreements across the U.S. and internationally. On April 1, 2019, CAE appointed Rekha Ranganathan, an experienced healthcare industry executive, as the new CAE Healthcare group president, to achieve greater scale and return on investment.

Summary of Healthcare results

(amounts in millions except operating margins) FY2019FY2018Variance %Q4-2019Q4-2018Variance %
   Restated  Restated 
Revenue$121.6115.26%40.735.116%
Segment operating income$4.88.8(45%)4.26.7(37%)
Operating margins%3.97.6 10.319.1 

Additional financial highlights
Free cash flow from continuing operations was $116.8 million for the quarter compared to $117.3 million in the fourth quarter last year. Free cash flow for the year was $323.8 million, compared to $288.9 million in the same period last year. The cash conversion ratio for fiscal year 2019 was 98%.

Income taxes this quarter were $19.3 million, representing an effective tax rate of 13%, compared to 8% for the fourth quarter last year. The tax rate this quarter was higher due to the change in the mix of income from various jurisdictions and due to a lower recognition of deferred tax assets in Europe. Also this quarter, the company recognized deferred tax assets in Canada that were mostly offset by tax audits. Excluding the effect of the net deferred tax assets and the tax audits in Canada, the income tax rate would have been 20% this quarter. On the same basis, the income tax rate for the year would have been 19%.

Growth and maintenance capital expenditures(12) totaled $96.2 million this quarter and $251.8 million for the year.

Net debt(13) at the end of the year was $1,882.2 million for a net debt-to-capital ratio(14) of 43.9%. This compares to net debt of $649.4 million and a net debt-to-total capital ratio of 22.0% at the end of the last year. CAE issued US$450 million of unsecured senior notes and US$150 million term loans to fund the acquisition of Bombardier’s BAT Business and to monetize its existing future royalty obligations to the aircraft manufacturer.

Return on capital employed was 11.9% or 12.9% before the impacts of the recently acquired Bombardier BAT Business, compared to 14.7% last year or 12.7% before specific items.

CAE will pay a dividend of 10 cents per share effective June 28, 2019 to shareholders of record at the close of business on June 14, 2019. During fiscal year 2019, CAE paid $99.9 million in dividends to shareholders and repurchased and cancelled a total of 3,671,900 common shares at a weighted average price of $25.70 per common share for a total consideration of $94.4 million.

Management outlook for fiscal year 2020
CAE’s core markets benefit from secular growth and the Company expects to continue exceeding underlying market growth in fiscal year 2020. In Civil, the Company expects to continue building on its positive momentum in training, increasing market share and securing new customer partnerships with its innovative training solutions. Civil expects operating income to grow in the upper 20 percent range on continued strong demand for its training solutions, including maintaining a leading share of FFS sales, and the integration of the recently acquired Bombardier BAT Business. In Defence, the Company expects mid to high single-digit percentage operating income growth as it delivers from backlog and continues to win opportunities from a large pipeline. CAE expects Healthcare to achieve double-digit growth under its new leadership, expanded salesforce, and the continued launch of innovative products. Funding growth opportunities remains CAE’s top capital allocation priority and continues to be driven by and supportive of growing customer training outsourcings in its large core markets. The Company prioritizes market-led capital investments that offer sustainable and profitable growth and accretive returns and support its strategy to be the recognized worldwide training partner of choice. CAE currently expects total annual capital expenditures to increase modestly, by approximately 10 to 15 percent, in fiscal 2020, primarily to keep pace with growing demand for training services from its existing customers and to secure new long-term customer contracts. Management’s expectations are based on the prevailing positive market conditions and customer receptivity to CAE’s training solutions as well as material assumptions contained in this press release, quarterly MD&A and in CAE’s fiscal year 2019 MD&A.

IFRS 15 – Revenue from Contracts with Customers
Effective April 1, 2018, CAE adopted IFRS 15 – Revenue from Contracts with Customers, which changes the way the Company recognizes revenue for certain of its customer contracts. The main impact of IFRS 15 to CAE is the timing of revenue recognized for certain training devices that were previously accounted for using the percentage-of-completion method that no longer meet the requirements for revenue recognition over time. Revenue for these training devices are instead recognized upon completion. While this change impacts the timing of contract revenue and profit recognition, there are no changes to cash flows from the contract. The financial results reported in the press release for the fiscal year ended March 31, 2018 have been restated to reflect the accounting changes required by IFRS 15 as the Company adopted the standard retrospectively this fiscal year.  For more detailed information, including the impact on CAE’s fiscal 2018 results, refer to Note 2 of the annual consolidated financial statements for the year ended March 31, 2019.

IFRS 16 – Leases
Effective April 1, 2019, CAE adopted IFRS 16 – Leases, which introduces a single lessee accounting model and eliminates the classification of leases as either operating or finance leases. The main impact of IFRS 16 to CAE is the recognition of a right-of-use asset and a lease liability for substantially all leases. This will result in a decrease of our operating lease expense and an increase of our finance and depreciation expenses. The financial results reported in the press release for fiscal years ended March 31, 2018 and 2019 do not reflect the accounting changes required by IFRS 16 as the Company adopted the standard as of April 1, 2019. For more detailed information, including the expected impacts of the transition to IFRS 16, refer to Note 2 of the annual consolidated financial statements for the year ended March 31, 2019, and Supplemental Q4 FY2019 Presentation.

Detailed information
Readers are strongly advised to view a more detailed discussion of our results by segment in the Management’s Discussion and Analysis (MD&A) and CAE’s consolidated financial statements which are posted on our website at www.cae.com/investors.

CAE’s consolidated financial statements and MD&A for the year ended March 31, 2019 have been filed with the Canadian Securities Administrators on SEDAR (www.sedar.com) and are available on our website (www.cae.com). They have also been filed with the U.S. Securities and Exchange Commission and are available on their website (www.sec.gov). Holders of CAE’s securities may also request a printed copy of the Company’s consolidated financial statements and MD&A free of charge by contacting Investor Relations (investor.relations@cae.com).

Conference call Q4 and full FY2019
Marc Parent, CAE President and CEO; Sonya Branco, Vice President, Finance, and CFO; and Andrew Arnovitz, Vice President, Strategy and Investor Relations will conduct an earnings conference call today at 1:00 p.m. ET. The call is intended for analysts, institutional investors and the media. Participants can listen to the conference by dialling + 1 877 586 3392 or +1 416 981 9024. The conference call will also be audio webcast live for the public at www.cae.com. The “Supplemental Q4 FY2019 Presentation” to accompany management’s discussion of CAE’s fourth quarter and full fiscal year 2019 results can be downloaded from our website at www.cae.com/investors.

CAE is a global leader in training for the civil aviation, defence and security, and healthcare markets. Backed by a record of more than 70 years of industry firsts, we continue to help define global training standards with our innovative virtual-to-live training solutions to make flying safer, maintain defence force readiness and enhance patient safety. We have the broadest global presence in the industry, with over 10,000 employees, 160 sites and training locations in over 35 countries. Each year, we train more than 220,000 civil and defence crewmembers, including more than 135,000 pilots, and thousands of healthcare professionals worldwide.

JetBlue Airways readies for new Airbus A220 entry-into-service with training partner CAE

Provided by CAE Inc

Montreal, Canada, April 30, 2019

CAE announced at the World Aviation Training Symposium the sale of two Airbus A220-300 CAE 7000XR Series full-flight simulators (FFSs) and two CAE 500XR flight training devices (FTDs) to JetBlue Airways, which is preparing the entry-into-service of its new aircraft.

“We are pleased to extend our long-standing partnership with CAE,” said Steve Forte, Vice President JetBlue University. “These state-of-the-art training devices will help us develop industry leading training programs to ensure a smooth launch of the A220.”

“The Airbus A220 is a key component of JetBlue’s growth strategy and we are thrilled to be part of this airline’s journey,” said Nick Leontidis, CAE’s Group President Civil Aviation Training Solutions. “We have been partners with JetBlue for over 15 years, and the purchase of these new FFSs and FTDs is yet another testament to the value CAE brings to its airline partners.”

The two CAE 7000XR Series FFSs will be equipped with the innovative CAE Tropos™ 6000XR visual system. The first FFS and FTD will be delivered in the first half of 2020 at JetBlue University, located in Orlando, Florida.

With this addition, CAE has sold a total of eight A220 full-flight simulators to operators worldwide.

CAE and JetBlue Airways share a training relationship with the Gateway Select pilot provisioning program. To date, more than 60 aspiring pilots have started training in the Gateway Select Program. CAE also holds an exclusive training centre operations services agreement to support the airline’s growth at JetBlue’s University in Orlando.