HALIFAX, NS, March 7, 2023 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) is proud to announce that subsidiary Jazz Aviation LP (‘Jazz’) is named one of Canada’s Best Diversity Employers 2023 by Mediacorp Canada Inc. This is the twelfth year Jazz has been recognized in this category.
“We’re committed to creating workplaces that empower each individual employee to be their authentic self,” said Randolph deGooyer, President, Jazz. “Being recognized for our culture of inclusiveness and the diversity programs we offer is an honour we’re incredibly proud of.”
Canada’s Best Diversity Employers recognizes the nation’s top employers who have exceptional workplace diversity and inclusiveness programs. The competition recognizes successful diversity initiatives in a variety of areas, including programs for employees from five groups: women; members of visible minorities; persons with disabilities; Indigenous peoples; and lesbian, gay, bisexual and transgender/transsexual (LGBT) people.
About Jazz
Jazz Aviation LP is the largest regional carrier in Canada and the sole operator of Air Canada Express flights to 80 destinations across North America. Jazz is one of Canada’s Top Employers for Young People and a Best Diversity Employer with an award-winning safety culture. These strengths, along with Jazz’s proven track record of industry leadership and exceptional customer service, create and deliver value to stakeholders. flyjazz.ca
About Chorus Aviation Inc.
Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services. Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services under the Air Canada Express brand; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world. Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning.
HALIFAX, NS, March 6, 2023 /CNW/ – Chorus Aviation Inc. (“Chorus”) (TSX: CHR) is pleased to announce that Colin Copp has officially begun his tenure as President and Chief Executive Officer of Chorus following the retirement of Joseph Randell. Mr. Copp has also been appointed to the Chorus Board of Directors in place of Mr. Randell who stepped down from the board concurrent with his retirement.
“Colin has been an integral and proven member of the Chorus leadership team for many years. Over the course of his career, he has led numerous complex, multi-stakeholder initiatives to successful outcomes. He is a strategic thinker with a track record for results and strong operational execution. The Board is thankful to be able to promote internally and delighted Colin will be leading Chorus’ next chapter of growth,” said Paul Rivett, Chair of the Chorus Board of Directors.
“It is a privilege to assume the Chorus CEO role,” said Mr. Copp. “We have a bright future ahead. I look forward to working with the Board, the leadership team and our over five thousand employees worldwide as we embark on Chorus’ next chapter.”
Mr. Copp has been the Chief Operating Officer of Chorus and President of Chorus Aviation Services since March of 2019. Previously, he was the President of Jazz Aviation. He has over 30 years of aviation experience having held key executive roles in operations, administration, and labor relations. He holds a Masters’ Degree in Business Administration, is a Certified Negotiator and Chartered Mediator and holds a designation from the Institute of Corporate Directors (ICD.D). He is currently a board member of the Aerospace Industries Association of Canada.
About Chorus Aviation Inc.
Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services. Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services under the Air Canada Express brand; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world. Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning.
Net income of $45.9 million, a quarter-over-quarter increase of $35.7 million.
Adjusted earnings available to Common Shareholders of $22.3 million, or $0.11 per Common Share, an increase of $0.8 million quarter-over-quarter, net of dividends declared on the Preferred Shares and non-controlling interest.
Adjusted net income of $31.8 million, an increase of $10.4 million quarter-over-quarter primarily related to Falko’s earnings and increased lease revenue from CACIL’s re-leased aircraft.
Adjusted EBITDA of $129.5 million, an increase of $39.1 million quarter-over-quarter.
Annual Financial Highlights:
Net income of $51.9 million, a year-over-year increase of $72.4 million.
Adjusted earnings available to Common Shareholders of $92.9 million, or $0.48 per Common Share, an increase of $29.0 million year-over-year, net of dividends declared on the Preferred Shares and non-controlling interest.
Adjusted net income of $118.8 million, an increase of $55.0 million year-over-year primarily due to eight months of Falko’s earnings in 2022.
Adjusted EBITDA of $441.0 million, an increase of $111.6 million year-over-year.
Annual Highlights:
Completed the Falko Acquisition for US $843.7 million in the second quarter of 2022, establishing Chorus as the world’s largest asset manager and aircraft lessor focused solely on regional aircraft leasing.
Issued US $300.0 million of Series 1 Preferred Shares and US $74.0 million of Common Shares and Common Share purchase warrants to an affiliate of Brookfield Special Investments Fund L.P. in connection with the Falko Acquisition.
Began transitioning to an asset light leasing model with opportunistic asset sales that generated proceeds, net of related debt repayments, of USD $152.3 million.
Generated Free Cash Flow (formerly described as Adjusted Cash Provided by Operating Activities) of $371.3 million for the year ended December 31, 2022, an increase of $208.6 million from the prior year primarily related to strong operating cash flows due to Falko’s earnings and improvement in RAS’ operating income, and net proceeds on asset sales which was partially offset by capital expenditures.
Repurchased and cancelled 1,718,972 Common Shares to December 31, 2022 under Chorus’ Normal Course Issuer Bid which commenced on November 14, 2022.
Improved leverage to 4.4 at December 31, 2022 from 5.4 at December 31, 2021, the second consecutive quarter of improved leverage.
HALIFAX, NS, Feb. 15, 2023 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced fourth quarter and year-end 2022 financial results.
“The 2022 year was truly transformational for Chorus. With the acquisition of Falko, Chorus became the world’s largest aircraft lessor focused on regional aviation and further diversified its earnings through the addition of asset management services, including fund management on behalf of third-party investors. Falko provides a proven aircraft trading platform which enables us to more readily monetize our on-balance sheet assets. Fund management is a far more efficient strategy for our leasing business and allows Chorus to deleverage its balance sheet and free up embedded capital. Brookfield’s investment in Chorus is an endorsement of our strategy,” said Joe Randell, President and CEO, Chorus Aviation.
“Our transition to an asset light leasing model continued in the fourth quarter as we executed on several opportunistic aircraft sales. The incremental cash flows generated from the aircraft dispositions allowed us to complete the early redemption of $115 million in the 6.00% Debentures to accelerate our deleveraging. In the fourth quarter we announced a Normal Course Issuer Bid allowing the purchase for cancellation of up to 10% of the public float of Common Shares with over 1.7 million shares being purchased and cancelled at year-end.”
“The aviation industry recovery is evident and continuing as we see the return of strong travel demand world-wide. Jazz increased flying activity in 2022 throughout Canada and the U.S. on behalf of Air Canada and Voyageur continued to grow its specialty aviation offerings. The Falko team also did an exemplary job capitalizing on the strengthening environment to place aircraft and trade assets. Our team has delivered and our culture is strong” continued Mr. Randell.
“Over the past few months, I have worked closely with Colin Copp to transition the CEO duties and the process has progressed smoothly. Colin’s depth of knowledge across all aspects of our business is impressive and will serve him very well as he capably leads Chorus through 2023 and beyond.”
“I offer my sincere appreciation to all employees for their continued hard work and dedication. Chorus is extremely well positioned for the future,” concluded Mr. Randell.
Fourth Quarter Summary
In the fourth quarter of 2022, Chorus reported Adjusted EBITDA of $129.5 million, an increase of $39.1 million over the fourth quarter of 2021.
The RAL segment’s Adjusted EBITDA was $67.5 million, an increase of $36.3 million primarily due to Falko’s earnings inclusive of the net gain on sale of assets as well as increased lease revenue from CACIL’s re-leased aircraft.
The RAS segment’s Adjusted EBITDA was $67.5 million, an increase of $4.6 million. Fourth quarter results were impacted by:
an increase in other revenue of $5.5 million due to an increase in parts sales and contract flying partially offset by a decrease in third-party MRO activity; and
an increase in aircraft leasing revenue under the CPA of $2.7 million primarily due to a higher US dollar exchange rate; offset by
a decrease in capitalization of major maintenance overhauls on owned aircraft of $0.4 million; and
an increase in general administrative expenses attributable to increased operations.
In the fourth quarter of 2022, Chorus began disclosing corporate head-office expenses separate from RAS, enabling a clearer assessment of RAS’ operating performance. Corporate Adjusted EBITDA or net expenses of $5.4 million was higher than the fourth quarter 2021 by $1.8 million, due to:
an increase in general administrative expenses related to professional fees associated with the Falko Acquisition, higher salaries, wages and benefits and travel expenses than the prior quarter year due to the impact of COVID-19 in 2021; offset by
a decrease in stock-based compensation of $0.4 million due to the change in fair value of the Total Return Swap offset by an increase in the Common Share price.
Adjusted net income was $31.8 million for the quarter, an increase of $10.4 million over the fourth quarter of 2021 due to:
a $39.1 million increase in Adjusted EBITDA as previously described; partially offset by
an increase in depreciation expense of $14.9 million primarily attributable to Falko;
an increase of $7.4 million in income tax expense;
an increase in net interest costs of $4.2 million primarily related to interest on long-term debt assumed as part of the Falko Acquisition, partially offset by the repayment of certain aircraft financings and the partial redemption of the 6.00% Debentures in December 2021; and
a change in net foreign exchange of $1.3 million.
Net income increased $35.7 million over the fourth quarter of 2021 primarily due to:
the previously noted increase in Adjusted net income of $10.4 million;
an increase in net unrealized foreign exchange gains of $14.6 million;
a decrease in impairment provision of $14.6 million; and
a decrease in inventory provision of $1.0 million; partially offset by
an increase in lease repossession costs of $2.5 million; and
a decrease in income tax recoveries on adjusted items of $2.1 million.
Annual Summary
Chorus reported Adjusted EBITDA of $441.0 million for 2022, an increase of $111.6 million over the same prior year period.
The RAL segment’s Adjusted EBITDA was $219.5 million, an increase of $108.2 million primarily due to the inclusion of eight months of earnings from Falko, net gain on sale of assets, the claims recoveries in the Virgin Australia and Aeromexico bankruptcies and increased lease revenue from CACIL’s re-leased aircraft.
The RAS segment’s Adjusted EBITDA was $248.8 million an increase of $14.0 million due to:
an increase in other revenue of $15.2 million due to an increase in parts sales and contract flying and the sale of four Dash 8-100s that were held for resale partially offset by a decrease in third-party MRO activity;
an increase in aircraft leasing revenue under the CPA of $5.6 million primarily due to a higher US dollar exchange rate; and
an increase in capitalization of major maintenance overhauls on owned aircraft of $2.0 million; partially offset by
an increase in general administrative expenses attributable to increased operations.
The Corporate Adjusted EBITDA or net expenses of $27.2 million was higher than the 2021 by $10.6 million due to:
an increase in stock-based compensation of $6.4 million due to one-time restructuring grants and an increase in the Common Share price, offset by the change in fair value of the Total Return Swap; and
an increase in general administrative expenses related to professional fees associated with the Falko Acquisition, higher salaries, wages and benefits and higher travel expenses due to the impact of COVID-19 in 2021.
Adjusted net income of $118.8 million, an increase of $55.0 million over the same prior year period primarily due to:
a $111.6 million increase in Adjusted EBITDA as previously described; partially offset by
an increase in depreciation expense of $35.6 million primarily attributable to Falko;
a $13.2 million increase in income tax expense offset by lower income tax recoveries on adjusted items;
an increase in net interest costs of $4.5 million primarily related to interest on long-term debt assumed as part of the Falko Acquisition and interest on the Series B Debentures and Series C Debentures partially offset by the repayment of certain aircraft financings and the partial redemption of the 6.00% Debentures in December 2021;
a decrease in gain on property and equipment of $1.6 million; and
a loss on fair value of investments of $1.1 million.
Net income of $51.9 million, an increase of $72.4 million over the same prior year period primarily due to:
the previously noted increase in Adjusted net income of $55.0 million; and
one-time restructuring costs of $80.7 million in 2021 related to the 2021 CPA Amendments; offset by
an increase in lease repossession costs of $19.1 million;
a decrease in income tax recoveries on adjusted items of $16.1 million;
an increase in restructuring credit loss provision of $10.4 million;
a change in net foreign exchange of $8.7 million;
strategic advisory fees related to the Falko Acquisition of $8.5 million;
an increase in impairment provisions of $2.1 million in the RAL segment; and
an increase in employee separation program costs, exclusive of the cost attributable to the pilot early retirement program and signing bonuses, of $1.9 million.
Outlook
Chorus has the key elements to successfully execute on its strategy to transition to an asset light leasing model while growing its contractual fund management business and its RAS segment. The key elements include:
Strong and predictable core earnings from the RAS segment, with the potential to expand into adjacent and complementary business lines;
Significant wholly-owned or majority-owned aviation assets that can be monetized to reduce debt and return capital to Common Shareholders while also providing funding to improve the growth and return profile of the business over time through accretive investments; and
Growing the Falko series of funds from which Chorus can generate attractive returns via asset management fees, co-investment returns and incentive payments.
The asset light leasing model will enable Chorus to achieve greater scale in its leasing business by co-investing alongside third-party equity investors in Falko-managed funds, while decreasing risk to Chorus by reducing the use of recourse debt financing. As Chorus transitions to an asset light leasing model, asset sales will generate Free Cash Flow that can be deployed to pursue accretive investment opportunities and/or return capital to Common Shareholders. As part of this asset light transformation, Chorus is targeting:
Aircraft asset sales: Chorus intends to opportunistically trade RAL’s wholly-owned or majority-owned aircraft including in connection with the expected windup of its 67.45% ownership in Ravelin Holdings LP by its tenth anniversary in 2025. As of December 31, 2022, Ravelin Holdings LP held an interest in 39 aircraft with a net book value of US $405.4 million and secured debt of US $228.6 million. As asset sales occur, the related leasing revenues in RAL will decrease, which will be partially offset by lower depreciation and debt servicing costs and earnings from Falko managed funds.
Reduced leverage: Chorus anticipates its Leverage Ratio will be between 2.5 to 3.5 by December 31, 2024, given the contractual nature of Chorus’ earnings, amortizing debt repayments, and the expectation for asset sales. Deleveraging amounts will vary from quarter-to-quarter depending on the timing and quantum of asset sales.
Growth: The expansion of Falko managed funds and the RAS business into adjacent and complimentary specialty aviation business lines.
About Chorus Aviation Inc.
Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services. Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services under the Air Canada Express brand; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world. Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning. www.chorusaviation.com.
HALIFAX, NS, Jan. 24, 2023 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) is proud to announce that subsidiary Jazz Aviation LP (‘Jazz’) is named one of Canada’s Top Employers for Young People 2023 by Mediacorp Canada Inc. This is the eleventh year Jazz has been recognized in this category.
“We’re proud of our commitment to creating a supportive workplace where young people can learn and thrive,” said Randolph deGooyer, President, Jazz. “They are the leaders of tomorrow who offer valuable perspectives as we look to the future of Jazz.”
This special designation recognizes the employers that offer the nation’s best workplaces and programs for young people just starting their careers. These organizations are Canada’s leaders in attracting and retaining younger employees. Areas examined when evaluating each employer include, mentorship and training programs as well as career management programs.
About Chorus Aviation Inc.
Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services. Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services under the Air Canada Express brand; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world. Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning. www.chorusaviation.com
About Jazz Aviation LP
Jazz Aviation LP has a strong history in Canadian aviation with its roots going back to the 1930s. As the largest regional carrier in Canada and the sole operator of Air Canada Express flights, Jazz has a proven track record of industry leadership and exceptional customer service and has leveraged that strength to deliver value to all its stakeholders. flyjazz.ca
HALIFAX, NS, Jan. 19, 2023 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) is proud to announce that subsidiary Jazz Aviation LP (‘Jazz’) is named a Top Employer in Atlantic Canada and Nova Scotia by Mediacorp Canada Inc. for the twelfth consecutive year.
“We’re proud of our long history in this region and being an employer of choice for Nova Scotians and Atlantic Canadians,” said Randolph deGooyer, President, Jazz. “We’re very honoured to be recognized for providing a safe and inclusive work environment where employees have the tools they need to succeed.”
These special designations recognize employers in Nova Scotia and Atlantic Canada that lead their industries in offering exceptional places to work. Employers are evaluated on their physical workplaces; work and social atmospheres; health; financial and family benefits; vacation and time off; employee communications; performance management; training and skills development; and community involvement.
About Chorus Aviation Inc.
Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services. Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services under the Air Canada Express brand; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world. Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning. www.chorusaviation.com
About Jazz Aviation LP
Jazz Aviation LP has a strong history in Canadian aviation with its roots going back to the 1930s. As the largest regional carrier in Canada and the sole operator of Air Canada Express flights, Jazz has a proven track record of industry leadership and exceptional customer service and has leveraged that strength to deliver value to all its stakeholders. flyjazz.ca
Net income of $23.6 million, a quarter-over-quarter increase of $37.6 million due to the impact of Falko’s earnings and decreased unrealized foreign exchange losses of $10.4 million.
Adjusted net income of $41.7 million, an increase of $26.4 million quarter-over-quarter.
Earnings available to Common Shareholders of $13.1 million, or $0.06 per basic Common Share, inclusive of dividends declared on the Preferred Shares and non-controlling interest.
Adjusted earnings available to Common Shareholders of $31.2 million, or $0.15 per Common Share an increase of $15.9 million quarter-over-quarter inclusive of dividends declared on the Preferred Shares and non-controlling interest.
Adjusted EBITDA of $123.4 million, an increase of $45.3 million quarter-over-quarter.
Accomplishments
Chorus continued to generate strong cash flows and execute on its strategy to transition to an asset light leasing model in the quarter.
Chorus generated $100.9 million of cash during the third quarter 2022, largely due to asset sales net of debt repayments and the release of security over previously restricted cash. Chorus had cash flows from operations of $91.3 million in the third quarter, an increase of $8.5 million over third quarter 2021.
Chorus repaid $219.7 million of debt in the third quarter of 2022, which included scheduled repayments of $81.1 million, $112.0 million of repayments on loans related to the eight CRJ900s sold in the quarter and a $26.6 million discretionary repayment on the Operating Credit Facility. On October 6, 2022, Chorus repaid the remaining balance on its Operating Credit Facility of US $19.0 million.
As a result of increased earnings and significantly lower debt balances, Chorus’ leverage ratio (Net debt to trailing 12-month Adjusted EBITDA) improved to 5.1 from 6.4 as at June 30, 2022.
HALIFAX, NS, Nov. 9, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced third quarter 2022 financial results.
“With our first full quarter since the Falko acquisition now complete, I am pleased to report both the continued seamless integration of our leasing business under Falko and the achievement of its expected financial performance,” said Joe Randell, President and Chief Executive Officer, Chorus.
“We will continue to transition to an asset light model and will opportunistically explore asset sales, thereby creating additional shareholder value by generating incremental cash flows and paying down debt. In addition, we look forward to the closing of Falko’s next fund in the first half of 2023.”
“With the announcement of my planned retirement, I am working actively with incoming President and Chief Executive Officer, Colin Copp, to ensure a smooth transition in the first quarter of 2023. Colin has been an integral member of the Chorus leadership team for over two decades and his depth of knowledge across all aspects of our business will serve him well as he leads Chorus through 2023 and beyond.”
“I’d like to express my appreciation to all our employees for their tireless efforts as the aviation industry continued to rebuild capacity and I am confident that we are very well positioned to execute on new growth opportunities that will deliver positive returns to our shareholders and fund investors, and make Chorus an even more attractive company for customers, partners and employees,” concluded Mr. Randell.
Third Quarter Summary
In the third quarter of 2022, Chorus reported Adjusted EBITDA of $123.4 million, an increase of $45.3 million over the third quarter of 2021.
The RAL segment’s Adjusted EBITDA was $69.8 million, an increase of $43.7 million primarily due to Falko’s earnings, the recovered claims in the Virgin Australia bankruptcy, net gain on sale of assets as well as increased lease revenue from CACIL’s re-leased aircraft.
The RAS segment’s Adjusted EBITDA was $53.5 million, an increase of $1.6 million. Third quarter results were impacted by:
an increase in other revenue due to the sale of four Dash 8-100s that were held for resale and an increase in parts sales and contract flying partially offset by a decrease in third-party MRO activity; and
an increase in aircraft leasing revenue under the CPA of $1.2 million primarily due to a higher US dollar exchange rate; offset by
a decrease in capitalization of major maintenance overhauls on owned aircraft of $2.2 million;
an increase in stock-based compensation of $1.8 million due to the change in fair value of the Total Return Swap and one-time restructuring grants offset by a decrease in the Common Share price; and
an increase in general administrative expenses attributable to increased operations.
Adjusted net income was $41.7 million for the quarter, an increase of $26.4 million over the third quarter of 2021 due to:
a $45.3 million increase in Adjusted EBITDA as previously described; partially offset by
an increase in depreciation expense of $12.5 million primarily attributable to Falko;
an increase of $2.7 million in income tax expense; and
an increase in net interest costs of $4.0 million primarily related to interest on long-term debt assumed as part of the Falko Acquisition and interest on the Series C Debentures partially offset by the repayment of certain aircraft financings and the partial redemption of the 6.00% Debentures in December 2021.
Net income increased $37.6 million over the third quarter of 2021 due to:
the previously noted increase in Adjusted net income of $26.4 million;
a decrease in net unrealized foreign exchange losses of $10.4 million; and
a decrease in impairment provision of $6.3 million; partially offset by
an increase in lease repossession costs of $4.9 million; and
an increase in employee separation program costs of $0.4 million.
Year-to-Date Summary
Chorus reported Adjusted EBITDA of $311.5 million for 2022, an increase of $72.5 million over the same prior year period.
The RAL segment’s Adjusted EBITDA was $152.0 million, an increase of $71.9 million primarily due to the inclusion of five months of earnings from Falko, the recovered claims in the Virgin Australia and Aeromexico bankruptcies, net gain on sale of assets and increased lease revenue from CACIL’s re-leased aircraft.
The RAS segment’s Adjusted EBITDA was $159.5 million an increase of $0.6 million due to:
an increase in other revenue due to the sale of four Dash 8-100s that were held for resale and an increase in parts sales and contract flying partially offset by a decrease in third-party MRO activity;
an increase in aircraft leasing revenue under the CPA of $2.9 million primarily due to a higher US dollar exchange rate; and
an increase in capitalization of major maintenance overhauls on owned aircraft of $2.4 million; partially offset by
an increase in stock-based compensation of $6.2 million due to the change in fair value of the Total Return Swap and one-time restructuring grants offset by a decrease in the Common Share price; and
an increase in general administrative expenses attributable to increased operations.
Adjusted net income of $87.0 million, an increase of $44.6 million over the same prior year period due to:
a $72.5 million increase in Adjusted EBITDA as previously described; partially offset by
an increase in depreciation expense of $20.6 million primarily attributable to Falko;
a $5.9 million increase in income tax expense offset by lower income tax recoveries on adjusted items;
a decrease in gain on property and equipment of $1.6 million; and
a loss on fair value of investments of $0.6 million.
Net income of $6.1 million, an increase of $36.7 million over the same prior year period due to:
the previously noted increase in Adjusted net income of $44.6 million; and
one-time restructuring costs of $80.7 million in 2021 related to the 2021 CPA Amendments; offset by
a change in net unrealized foreign exchange of $23.2 million;
an increase in lease repossession costs of $16.6 million;
an increase in impairment provisions of $14.2 million in the RAL segment;
a decrease in income tax recoveries on adjusted items of $14.0 million;
an increase in restructuring credit loss provision of $10.4 million;
strategic advisory fees related to the Falko Acquisition of $8.5 million; and
an increase in employee separation program costs, exclusive of the cost attributable to the pilot early retirement program and signing bonuses of $1.7 million.
Outlook Chorus completed the Falko Acquisition in the second quarter of 2022. This transformative transaction creates new opportunities for growth, through increased access to growth capital and a differentiated business model to maximize returns on aircraft assets.
Key Economic Assumptions:
The forecast assumes the launch in the first half of 2023 of a new investment fund managed by Falko with (i) a minimum of US $500.0 million in capital commitments and (ii) management fees and economic terms commensurate with those in Falko’s prior funds.
The forecast revenue is based on current contracted lease revenue and forecasted revenues for leased aircraft and asset management fees. Aircraft leasing revenue under the CPA and Fixed Margin revenue is expected to be US $114.7 million and $66.3 million, respectively in 2022.
The forecast uses weighted average statutory tax rates for each of the individual entities based on the jurisdiction in which the entity is taxable. The forecast uses a weighted average income tax rate of 20.0% based on average statutory tax rates of 26.5%, 12.5% and 19.0% in Canada, Ireland and United Kingdom, respectively. The actual weighted average income tax rates may vary due to the actual income in each country and foreign exchange rates.
The forecast assumes no disposals in 2022 of aircraft leased under the CPA and no disposals in the RAL segment in the fourth quarter of 2022.
The forecast uses a foreign exchange rate of 1.35 for the fourth quarter of 2022 to translate USD to CAD revenue and expenses.
Regional Aircraft Leasing
Following the onset of the COVID-19 pandemic, RAL received requests from many of its customers for some form of temporary rent relief, as they coped with an unprecedented reduction in demand for passenger air travel. Under rent relief arrangements, certain of which include lease term extensions, the repayment of the deferred amounts typically coincides with the lease term extensions. The gross lease receivable may decrease from the September 30, 2022 balance of US $97.4 million to approximately US $91.3 million by the end of 2022 due to rent relief arrangements and repayment expectations.
RAL’s lease deferral receivable exposure is also partially mitigated by security packages held of approximately US $19.0 million (December 31, 2021 – US $21.1 million).
About Chorus Aviation Inc. Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services. Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services under the Air Canada Express brand; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world. Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning.
HALIFAX, NS, Oct. 21, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) is proud to announce that subsidiary Jazz Aviation LP (‘Jazz’) was named among Canada’s Safest Employers 2022, winning the Public Transportation category. Canada’s Safest Employers awards were announced at a gala event in Toronto last evening.
“The foundation of Jazz’s award-winning safety culture is our employees,” said Randolph deGooyer, President, Jazz. “We value feedback and have strong reporting principles – both of which demonstrate our collective focus on safety as core to our business every day.”
At Jazz, safety is our top priority, and we continue to challenge ourselves to further advance safety. Recent achievements include improved data collection and investigation using smart form technology for a streamlined response and investigation process. Additionally, we have enhanced the use of our historical safety data to support extended analysis of safety trends for improved management of hazards.
This is Jazz’s sixth consecutive year accepting awards at the Canada’s Safest Employers event. Last year, Jazz received an Excellence award, and in 2020 and 2019, Jazz won gold – all for the Public Transportation category. In 2018, Jazz was awarded silvers in the Transportation and Psychological Safety categories; and in 2017, Jazz won gold in the Transportation category.
Launched in 2011, Canada’s Safest Employers awards recognize companies from across Canada with outstanding accomplishments in promoting the health and safety of their employees. Companies are evaluated on a wide range of occupational safety and health (‘OSH’) elements, including employee training, OSH management systems, incident investigation, emergency preparedness, and innovative health and safety initiatives.
About Chorus Aviation Inc.
Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services. Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services to Air Canada; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world. Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning. www.chorusaviation.com.
About Jazz
Jazz Aviation LP has a strong history in Canadian aviation with its roots going back to the 1930s. As the largest regional carrier in Canada and the sole operator of Air Canada Express flights, Jazz has a proven track record of industry leadership and exceptional customer service and has leveraged that strength to deliver value to all its stakeholders. flyjazz.ca
HALIFAX, NS, Sept. 14, 2022 /CNW/ – The Board of Directors of Chorus Aviation Inc. (‘Chorus’ or the ‘Company’) (TSX: CHR) announced today that Joseph (Joe) Randell plans to retire as President and Chief Executive Officer, in the first quarter of 2023, following the Company’s reporting of its 2022 year-end results. His retirement will follow a 37-year leadership career in regional aviation. Upon Mr. Randell’s retirement, Colin Copp, currently the Chief Operating Officer, Chorus and President, Chorus Aviation Services, will be appointed President and Chief Executive Officer of Chorus.
“I am delighted to announce Colin Copp as our next CEO,” said Paul Rivett, Chair of the Chorus Board of Directors. Mr. Rivett continued, “Chorus is fortunate to have a CEO successor in Colin Copp, with such an in-depth knowledge of the business and its culture. Colin has played an instrumental role in Chorus’ evolution, displaying a proven ability to think strategically, to communicate his vision and to successfully execute on the intended plans. The Board looks forward to working with Colin and is confident in Colin’s ability to guide Chorus through the next exciting chapter of growth and diversification.”
Mr. Copp has been the Chief Operating Officer of Chorus and President of Chorus Aviation Services, including Jazz Aviation and Voyageur Aviation, since March 2019. Previously, he was the President of Jazz Aviation. He has been with the Company and its predecessors for over 30 years, with leadership experience in key roles across operations, administration, and labour relations. Colin holds a Masters’ Degree in Business Administration, is a Certified Negotiator and Chartered Mediator and holds a designation from the Institute of Corporate Directors (ICD.D). He is currently a Board member of the Air Transport Association of Canada and the Aerospace Industries Association of Canada.
“Colin has been an integral member of my leadership team for almost two decades and has proven to be an exemplary leader with demonstrated skills in handling complicated change management issues and multi-stakeholder negotiations,” said Joe Randell. “He has built strong relationships across the aviation industry and elevated Jazz and Voyageur to new levels of performance. I am confident Colin will adeptly and successfully lead Chorus through the next transformative phase, and I look forward to working closely with Colin, and the rest of the executive team, as he transitions to the CEO role.”
Mr. Randell’s regional aviation career spans four decades. He was the founding President of Air Nova, having started the Atlantic Canada-based airline in 1986 with two aircraft serving five destinations. He will retire having built a global company with approximately 5,000 employees, which includes the largest regional airline in Canada, a market leading aircraft asset management company and the world’s largest aircraft lessor solely focused on the regional segment. Mr. Randell has provided stable leadership and successfully executed a long-term vision for Chorus through the most challenging periods for the aviation industry. In 2020, he was inducted into the Canadian Aviation Hall of Fame in recognition of his significant contribution in advancing Canadian aviation.
“Joe is widely recognized as the founder and builder of regional aviation in Canada,” said Mr. Rivett. “He has been a true visionary, continuing to re-invent the business through various cycles and trends in the industry. Joe is equally respected for his ethics and integrity, which has resulted in many strong industry and community relationships and partnerships. His own personal values have shaped an award-winning corporate culture. On behalf of the Board and the employees of the Chorus companies, I thank Joe for his long-standing dedication and commitment, including his support through the upcoming transition.”
About Chorus Aviation Inc.
Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services. Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services to Air Canada; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world. Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning.
HALIFAX, NS, Aug. 29, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced that its subsidiary, Falko Regional Aircraft Limited (‘Falko’) has executed agreements to sell 8 wholly owned aircraft that had previously been on lease, for net proceeds of approximately USD $45 million after related debt repayments and estimated tax provisions. The Falko team has an extensive track record of opportunistically selling aircraft, having completed over 160 aircraft sales.
“I’m pleased to report that the first trading transaction of the Chorus/Falko era is taking place. This deal is transacting at one time book value and will generate net free cash flow of approximately USD $45 million,” stated Joe Randell, President and Chief Executive Officer, Chorus.
Mr. Randell continued, “The recent Falko acquisition has made Chorus a market leading regional aircraft asset manager and the world’s largest aircraft lessor focused solely on the regional aircraft leasing space, significantly advancing our growth and diversification strategy.”
“The sale of these Chorus owned aircraft decreases debt and leverage while generating cash flows from trading. We will continue to look for opportunistic asset sale transactions to increase shareholder value,” concluded Mr. Randell.
This transaction is expected to close before the end of the third quarter of 2022 and is not expected to materially change the financial forecast set out in Chorus’ news release dated August 4, 2022.
About Chorus Aviation Inc. Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services. Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services to Air Canada; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world. Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning.
Net loss of $40.4 million, a quarter-over-quarter decrease of $61.9 million primarily due to anticipated aircraft repossessions and lease restructurings resulting in provisions of $45.6 million on CACIL’s aircraft portfolio, unrealized foreign exchange losses of $34.3 million and strategic advisory fees of $5.7 million, offset by an increase in Adjusted net income of $16.2 million.
Net loss available to Common Shareholders of $46.3 million, or $0.24 loss per basic Common Share, inclusive of dividends declared on Preferred Shares and non-controlling interest.
Adjusted net income available to Common Shareholders of $21.7 million, or $0.11 per Common Share an increase of $10.3 million quarter-over-quarter inclusive of dividends declared on Preferred Shares and non-controlling interest.
Adjusted net income of $27.6 million, an increase of $16.2 million quarter-over-quarter primarily due to an increase in earnings in the RAL segment related to the Falko Business.
Adjusted EBITDA of $104.9 million, an increase of $28.0 million quarter-over-quarter.
Accomplishments
Completed the Falko acquisition for US $843.7 million, inclusive of assumed debt.
Second quarter results included two months of earnings from the Falko Business, increasing net income by $5.7 million and Adjusted EBT by $9.5 million.
Integration of the Falko Business progressing as anticipated.
Expanded owned, managed and/or operated fleet to 381 aircraft (including 35 aircraft in a servicing capacity).
HALIFAX, NS, Aug. 4, 2022 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced second quarter 2022 financial results.
“With our first quarter since the Falko acquisition now complete, I am happy to see Falko delivering the expected results. In addition, the integration of Falko is progressing very well as both organizations share similar leadership styles and cultures.
We have already begun to see the Falko asset management platform demonstrate its contribution to the diversification and flexibility of our business. In June we announced the addition of 35 turboprop aircraft in a servicing capacity on behalf of a syndicate of banks further expanding our asset management business and demonstrating Falko’s ability to broaden its customer base,” stated Joe Randell, President and Chief Executive Officer, Chorus.
Mr. Randell continued: “The Falko acquisition has made Chorus a market leading regional aircraft asset manager and the world’s largest aircraft lessor focused solely on the regional aircraft leasing space thereby significantly advancing our growth and diversification strategy. We now expect to derive approximately 50% of our 2022 annual Adjusted EBITDA from the Regional Aviation Leasing (RAL) segment of our business. We have begun the process of launching Falko’s next fund and are pleased with the early response. We will continue to transition our focus to an asset light model and will opportunistically explore asset sales, where appropriate, to create additional shareholder value through paying down debt and generating incremental cash flows.”
“In the second quarter we recorded a $45.6 million provision related to anticipated aircraft repossessions and lease restructurings. All our other customers are operating in compliance with lease agreements. This provision does not impact our longer-term outlook for the business,” added Mr. Randell.
“I sincerely thank the Chorus group of employees for all their hard work and dedication, and in particular our frontline employees, for their continued focus on the safety and well-being of passengers in what has been a challenging environment. Our Jazz operation continues to ramp up, and Voyageur’s parts provisioning and sales continue to hit new milestones as larger contracts won in 2021 progress as planned. We remain optimistic that these trends will continue to build momentum and we are very well positioned to execute on new growth opportunities that will deliver positive returns to our shareholders, fund investors, customers, and employees,” Mr. Randell concluded.
Canadian Aviation News 
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