Montreal, Canada, September 7, 2021 (NYSE: CAE; TSX: CAE) – CAE and Air Canada announced the signing of an exclusive five-year aircraft maintenance training partnership agreement. As a result, CAE is now Air Canada’s embedded Transport Canada Approved Training Organization for Aircraft Maintenance and Engineering.
The agreement includes the development, management and delivery of all of Air Canada’s maintenance and engineering training, including all regulatory approved training. CAE will implement many of its state-of-the-art digital training technologies, including training and qualifications management, virtual 360 aircraft environments and a new digital solution that will enable Air Canada to explore modern training environments such as evidence-based training.
“Throughout the years, several manufacturers have entrusted CAE with its excellent training and technology,” said Nick Leontidis, CAE’s Group President Civil Aviation Training Solutions. “This first of its kind training agreement between two Canadian companies will provide a training experience true to the aircraft platforms with high level of instruction, service, courseware and technology. I’m confident that this partnership will allow us to work closely by developing and fine-tuning specific training programs for Air Canada.”
“This first of its kind, industry leading agreement will bring together Air Canada’s technical aircraft maintenance excellence with CAE’s focus and excellence in training environment,” said Richard Steer, Air Canada’s Senior Vice President of Operations. “I look forward to the implementation of Air Canada’s Aircraft Maintenance Training Center of Excellence, which will bring two world class, Canadian companies together.”
About Air Canada
Air Canada is Canada’s largest domestic and international airline. Canada’s flag carrier is among the 20 largest airlines in the world and in 2019 served over 51 million customers. Air Canada is a founding member of Star Alliance, the world’s most comprehensive air transportation network. Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax, which also named Air Canada the 2019 Best Airline in North America. For more information, please visit: aircanada.com/media, follow Air Canada on Twitter and LinkedIn, and join Air Canada on Facebook.
CAE is a high technology company, at the leading edge of digital immersion, providing solutions to make the world a safer place. Backed by a record of more than 70 years of industry firsts, we continue to reimagine the customer experience and revolutionize training and operational support solutions in civil aviation, defence and security, and healthcare. We are the partner of choice to customers worldwide who operate in complex, high-stakes and largely regulated environments, where successful outcomes are critical. As testament to our customers’ ongoing needs for our solutions, over 60 percent of CAE’s revenue is recurring in nature. We have the broadest global presence in our industry, with more than 11,000 employees, 180 sites, and training locations in over 35 countries. http://www.cae.com
Revenue of $752.7 million up 37% vs. $550.5 million in prior year
EPS of $0.16 vs. negative $0.42 in prior year
Adjusted EPS(1) of $0.19 ($0.15 excluding COVID-19 government support programs(2)) vs. negative $0.11 (negative $0.24 excluding COVID-19 government support programs) in prior year
Operating income(3) of $86.2 million vs. loss of $110.3 million in prior year
Adjusted segment operating income(4) of $98.4 million ($84.8 million excluding COVID-19 government support programs(5)) vs. loss of $2.1 million (loss of $46.5 million excluding COVID-19 government support programs) in prior year
Concluded US$1.05 billion acquisition of L3Harris Technologies’ Military Training business post quarter
Montreal, Canada, August 11, 2021
CAE today reported revenue of $752.7 million for the first quarter of fiscal 2022, compared with $550.5 million in the first quarter last year. First quarter net income attributable to equity holders was $46.4 million ($0.16 per share) compared to a loss of $110.6 million (negative $0.42 per share) last year. Adjusted net income(6) in the first quarter of fiscal 2022 was $55.6 million ($0.19 per share) compared to a loss of $30.3 million (negative $0.11 per share) last year.
Operating income this quarter was $86.2 million (11.5% of revenue), compared to a loss of $110.3 million in the first quarter of fiscal 2021. First quarter adjusted segment operating income was $98.4 million (13.1% of revenue) compared to a loss of $2.1 million last year. Adjusted segment operating income excluding COVID-19 government support programs was $84.8 million (11.3% of revenue) compared to a loss of $46.5 million last year. All financial information is in Canadian dollars unless otherwise indicated.Summary of consolidated results
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“Our positive momentum continued into the new fiscal year and I am pleased with our strong first quarter performance, punctuated by 37% year over year revenue growth and $0.19 of adjusted earnings per share,” said Marc Parent, CAE’s President and Chief Executive Officer. “We made important strategic progress during the quarter, penetrating more share in the Civil training market with two new ten-year exclusive airline training agreements, and two new partnerships with OEMs in the emerging Advanced Air Mobility market. In Defence, we won prime contracts and key positions on major IDIQs that significantly expand CAE’s customer base and market reach. Subsequent to the end of the quarter, we announced our $1 billion, five-year research and development program, Project Resilience, to develop the technologies of tomorrow, including digitally immersive solutions using data ecosystems and artificial intelligence in civil aviation, defence and security and healthcare.” On CAE’s outlook, Marc Parent added, “we expect continued strong year over year growth in fiscal year 2022, as recovery takes hold in our end markets, we integrate our recent acquisitions and ramp up our cost savings initiatives. The slope of recovery to pre-pandemic levels and beyond continues to depend on the timing and rate at which border restrictions can be safely lifted and normal activities resume in our end markets and in the geographies where we operate. Notwithstanding disparate global vaccination rates and volatile border rules which obscure normal market visibility, we still expect strong growth in Civil, weighted more to the second half. In Defence, we are extremely pleased to have concluded the L3Harris Technologies Military Training business acquisition as early as we did, thereby creating the world’s leading platform-agnostic, global training and simulation defence pure play business. COVID-related headwinds persist for international defence business; however, we view them as temporary, and we also expect strong growth in Defence this fiscal year, similarly weighted to the back half. In Healthcare, our outlook is for continued growth involving our core Healthcare training and simulation products. We made several highly strategic moves over the last year-and-a-half to expand CAE’s position and further strengthen the Company. The multi-year outlook for CAE is more compelling than ever, and we expect to deliver superior and sustainable growth and strong free cash flow(9) over the long-term.”Civil Aviation Training Solutions (Civil)
First quarter Civil revenue was $432.9 million, up 75% compared to the first quarter last year. Operating income was $59.0 million compared to a loss of $97.9 million in the same quarter last year. Adjusted segment operating income was $69.7 million (16.1% of revenue) compared to a loss of $16.2 million in the first quarter last year. Adjusted segment operating income excluding COVID-19 government support programs was $64.5 million (14.9% of revenue) compared to a loss of $38.8 million in the same quarter last year. During the quarter, Civil delivered 11 full-flight simulators (FFSs)(10) to customers and first quarter Civil training centre utilization(11) was 56%.
During the quarter, Civil signed training solutions contracts valued at $338.1 million, including contracts for five FFSs sales. Notable training contracts for the quarter include ten-year exclusive aviation training agreements with Scandinavian Airlines (SAS) and WestJet, four-year business aviation training agreements with Journey Aviation and GAMA Aviation and a three-year business aviation training agreement with Avcon Jet AG.
Civil also made progress in the Advanced Air Mobility market with its selection by Jaunt Air Mobility to lead the design and development of the Jaunt Aircraft Systems Integration Lab (JASIL) for the company’s new all-electric vertical take-off and landing (eVTOL) aircraft, the Journey aircraft. Civil also announced a strategic partnership with Volocopter to develop, certify and deploy an innovative pilot training program and courseware development for eVTOL operations.
The Civil book-to-sales ratio(8) was 0.78x for the quarter and 0.88x for the last 12 months. The Civil backlog at the end of the quarter was $4.2 billion.
Montreal, Quebec, Canada, August 4, 2021 (NYSE: CAE; TSX: CAE) – CAE announced today the expansion of its maintenance training capabilities with the addition of GlobalJet Services, a proven leader in aviation maintenance training. Headquartered in Avon Connecticut, United States, GlobalJet Services is recognized around the world for its services for both the business and helicopter segments.
This move expands CAE’s capabilities by increasing its aircraft platform addressability for maintenance training through world-class, regulatory approved training programs. CAE will also leverage its experience in pilot training to enable its rapid growth in the maintenance training market.
“We are thrilled to integrate GlobalJet Services’ capabilities and expertise in maintenance training,” said Nick Leontidis, CAE’s Group President, Civil Aviation Training Solutions. “This tuck-in acquisition is a great addition. Moving forward, CAE will be able to better serve global operators as they look for a one-stop-shop provider that can support their various aircraft fleet types.”
Moreover, the acquisition will provide CAE with approved training solutions on key programs and bring in a highly experienced team. Well-aligned with the culture of CAE, GlobalJet Services is known for its strong customer service culture and high degree of quality.
CAE is committed to meeting the changing needs of its aviation customers around the world with services, technologies and a digital ecosystem solution that provide greater efficiencies and productivity.
About GlobalJet Services
Founded in 1992, GlobalJet Services is the leading on-location training provider of maintenance, avionics, professional development, and safety instruction for the business aviation industry. Privately-held, GlobalJet Services provides on-location, interactive training using its instructors’ extensive aviation experience and quality, in-depth course materials. GlobalJet Services is dedicated to delivering world-class customer service while maintaining the highest degree of quality flexibility, value and safety.
CAE is a high technology company, at the leading edge of digital immersion, providing solutions to make the world a safer place. Backed by a record of more than 70 years of industry firsts, we continue to reimagine the customer experience and revolutionize training and operational support solutions in civil aviation, defence and security, and healthcare. We are the partner of choice to customers worldwide who operate in complex, high-stakes and largely regulated environments, where successful outcomes are critical. As testament to our customers’ ongoing needs for our solutions, over 60 percent of CAE’s revenue is recurring in nature. We have the broadest global presence in our industry, with approximately 11,000 employees, 160 sites, and training locations in over 35 countries. http://www.cae.com
Positioning CAE as a leader in Advanced Air Mobility (air taxis) and green light aircraft technologies
Creating digitally immersive solutions using data ecosystems and artificial intelligence
MONTRÉAL, July 15, 2021 /CNW Telbec/ – (NYSE: CAE) (TSX: CAE) – CAE today announced that it will be investing C$1 billion over the next five years in innovation. The investment will fund Project Resilience, a transformation project to develop the technologies of tomorrow, including digitally immersive solutions using data ecosystems and artificial intelligence in civil aviation, defence & security and healthcare. The project will also allow CAE to position itself as a leader in end-to-end technology, operational support and training solutions for Advanced Air Mobility, as well as develop green light aircraft technologies.
In partnership with the Government of Canada and the Government of Québec, the project will allow CAE to play a key role in making air travel safer, defence forces mission ready, and helping medical personnel save lives.
The Government of Canada and the Government of Québec will provide a combined investment of C$340 million over the next five years (C$190 million for Canada and C$150 million for Québec).
Executives and employees of CAE joined the Right Honourable Justin Trudeau, Prime Minister of Canada, the Honourable François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry as well as Mr. François Legault, Premier of Quebec, and Mr. Éric Girard, Québec’s Minister of Finance and Minister of Economy and Innovation for the announcement.
“CAE is launching a major five-year Research and Development investment program which will reinforce CAE’s position as a global technology leader, create high-value jobs and collaborations, and contribute to a greener, safer, and more inclusive world,” said Marc Parent, CAE’s President and Chief Executive Officer. “CAE is a Canadian innovation powerhouse, and our Research and Development will allow us to reinforce our leadership in training by creating digitally immersive solutions across many sectors and markets to make the world a safer place. The project will also allow us to expand into exciting new markets such as advanced air mobility, green light aircraft technologies and next generation healthcare equipment and services. We thank the government of Canada and the government of Quebec who will be partnering with us to open up these new markets for CAE and Quebec and Canada.”
“With advanced air mobility, we are on the cusp of a new era of aviation,” Parent added. “Disruptive aerospace companies are building cutting edge aircraft and creating a new sector within the industry from the ground up. We are investing to position CAE to be one of the leaders in defining this emerging industry, supporting OEMs with the development, testing and certification of aircraft programs, simulation equipment and the delivery of training to the next generation of pilots and maintenance technicians. It is expected that close to 60,000 uniquely trained professional pilots will be needed to safely fly passengers and cargo in these electric Vertical Take-off and Landing vehicles, and CAE has the expertise to help make it happen.”
CAE will harness its unique technological capabilities, long-standing expertise in supporting airworthiness test programs as well as its latest innovations in simulation, virtual/mixed reality (VR/MR) and data analytics to be at the forefront of disruptive mobility technologies such as eVTOL vehicles.
Through the project, CAE will invest in the development of electric aircraft technologies and solutions, including retrofitting its large fleet of light trainer aircraft to reduce its carbon footprint. CAE announced on Sept 28, 2020 that it became the first Canadian aerospace company to reach carbon neutrality.
Creating jobs and investing in future talent CAE will carry out Project Resilience in Canada, utilizing its R&D laboratories, as well as its test and integration, and training facilities. Throughout Project Resilience, CAE will collaborate and co-develop technology solutions with small and medium companies from across Canada and will create 700 new highly skilled jobs at CAE in Canada, including 600 in Quebec. Through this project, CAE will work with post-secondary institutions, research centres and STEM institutions and create 5,000 Work Integrated Learning (WIL) opportunities for students and 100 new scholarship positions.
CAE employs more than 11,000 people globally, with approximately half of them working in 18 locations across Canada.
The government investments are subject to the finalization of definitive agreements.
The investments in Project Resilience are in line with CAE’s current pace of R&D investment.
Quotes from today’s government announcement regarding investments in the aerospace industry “The aerospace sector is a pillar of the Canadian economy, providing good jobs for Canadian workers from coast to coast to coast. It’s essential that we support the long-term growth of the sector and help make Canada a world leader in greener, more innovative technologies. The investments announced today will help the aerospace sector increase its research and development efforts so that innovative, greener, more sustainable aircraft can be built right here in Canada for decades to come, creating good jobs for hard-working Canadians.” – The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry of Canada
“These are major projects that will drive Quebec towards the future! We will design the helicopters and planes of tomorrow here, in Quebec. These devices will generate wealth, all while reducing greenhouse gas emissions all over the planet. The aerospace industry will start up again stronger. Your government will be there to solidify our status as a leader and to ensure a bright future for the Quebec aerospace industry.” – Mr. François Legault, Premier of Quebec
About CAE CAE is a high technology company, at the leading edge of digital immersion, providing solutions to make the world a safer place. Backed by a record of more than 70 years of industry firsts, we continue to reimagine the customer experience and revolutionize training and operational support solutions in civil aviation, defence and security, and healthcare. We are the partner of choice to customers worldwide who operate in complex, high-stakes and largely regulated environments, where successful outcomes are critical. As testament to our customers’ ongoing needs for our solutions, over 60 percent of CAE’s revenue is recurring in nature. We have the broadest global presence in our industry, with more than 11,000 employees, 160 sites, and training locations in over 35 countries. www.cae.com
Ground-breaking training program to focus on safety and operationalization of eVTOL urban air mobility
Volocopter, urban air mobility pioneer, teams up with CAE, global leader in aviation training, to develop an electric vertical takeoff and landing (eVTOL) pilot training program in preparation for Volocopter’s first eVTOL aircraft upcoming entry-into-service
CAE commits to expanding its international training network to support Volocopter’s growth and global pilot training with a forecasted investment of up to US$40 million
Montreal, Canada/ Bruchsal, Germany, July 8, 2021 (NYSE: CAE; TSX: CAE) – CAE, a global leader in aviation training, and Volocopter, a leading pioneer of urban air mobility (UAM), announced today the signing of a strategic partnership, subject to definitive agreement, to develop, certify, and deploy an innovative pilot training program for electric vertical takeoff and landing (eVTOL) operations. A first in the industry, this eVTOL pilot training program will develop the pilot workforce of the future and ensure safe introduction of eVTOL operations globally by leveraging CAE’s advanced technologies such as Artificial Intelligence (AI), Virtual Reality (VR), Mixed Reality (MR), as well as data analytics and Volocopter’s leading understanding of requirements for integration into the UAM ecosystem.
UAM is an emerging part of the aviation industry focused on aerial connectivity in and around cities. Volocopter’s family of electric aircraft are designed to relieve today’s heavily fossil-fueled, inner-city traffic for both people (VoloCity, VoloConnect) and goods (VoloDrone) . The company’s first commercial eVTOL aircraft, the VoloCity, is well into its certification program with the European Union Aviation Safety Agency (EASA) and is positioned to launch first services in time for the 2024 Olympics in Paris. Through existing agreements and partnerships with global leaders, such as Daimler, Aéroports de Paris, Microsoft Azure, and now CAE, Volocopter plans to launch its services in a number of cities globally within the next five years. Volocopter is committed to seeking certification with the highest global safety standards for aircraft and operations.
CAE commits to expanding its worldwide training network with a forecasted investment of up to US$40 million to meet Volocopter’s projected pilot demand in the early years of operation. CAE will be deploying training equipment and instructors in lockstep with Volocopter’s growth. As part of the agreement, Volocopter will purchase a simulator from CAE to be used in its pilot training program certification. CAE will create new, student-centric courseware, specifically designed for the pilots of the future as Volocopter’s courseware provider and will also offer pilot trainees customized resources that enable faster, more efficient pilot training.
“As we scale our UAM services in cities around the world, specific pilot training and qualification for our Volocopters will be an important element. We are proud to be partnering with CAE, who have a track record in developing best-in-class, innovative pilot training solutions for new aircraft programs. It will greatly benefit Volocopter’s entry-into-service timeline and scale,” says Florian Reuter, CEO of Volocopter. “We are excited about CAE’s endorsement and look forward to collaborate as partners focused on combining future-oriented technologies to ensure aviation safety.” “As a high-technology company and the industry leader in pilot training, we continuously look at providing solutions that make the world a safer place,” said Nick Leontidis, CAE’s Group President, Civil Aviation Training Solutions. “We are committed to supporting Volocopter’s inspiring vision and we look forward to leading in the design of UAM pilot training that prioritizes safety of operations through our data-driven solutions, world-class pilot training experience, and longstanding relationships with civil aviation authorities across the globe.”
As outlined in CAE’s Advanced Air Mobility white-paper published this month (link), advanced air mobility will create an additional surge in the demand for pilots, with an estimated 60,000 pilots needed within the first decade of operation. Volocopter and CAE will work closely together to obtain regulatory approval for their pilot training program of the future.
Volocopter is building the world’s first sustainable and scalable urban air mobility business to bring affordable air taxi services to megacities worldwide. With the VoloCity, the company is developing the first fully electric “eVTOL” aircraft in certification to transport passengers safely and quietly within cities. Volocopter leads and cooperates with partners in infrastructure, operations, and air traffic management to build the ecosystem necessary to ‘Bring Urban Air Mobility to Life’.
In 2011, Volocopter performed the first-ever crewed flight of a purely electric multicopter and has since showcased numerous public flights with its full-scale aircraft. The most notable have been the public test flights at Singapore’s Marina Bay in October 2019 and the world’s first autonomous eVTOL flight in Dubai 2017. Volocopter is also developing products for the logistics space with their heavy-lift cargo variant, the VoloDrone.
Founded in 2011 by Stephan Wolf and Alexander Zosel, Volocopter has 400 employees in offices in Bruchsal, Munich, and Singapore. The company has raised a total of €322 million in equity. Volocopter’s investors include Daimler, Geely, DB Schenker, BlackRock, and Intel Capital amongst others.
CAE is a high technology company, at the leading edge of digital immersion, providing solutions to make the world a safer place. Backed by a record of more than 70 years of industry firsts, we continue to reimagine the customer experience and revolutionize training and operational support solutions in civil aviation, defence and security, and healthcare. We are the partner of choice to customers worldwide who operate in complex, high-stakes and largely regulated environments, where successful outcomes are critical. As testament to our customers’ ongoing needs for our solutions, over 60 percent of CAE’s revenue is recurring in nature. We have the broadest global presence in our industry, with approximately 10,000 employees, 160 sites, and training locations in over 35 countries. http://www.cae.com
Canadian pilot training company CAE has received required regulatory approvals for its planned purchase of L3Harris Technologies’ military training business and now expects the acquisition will close on 2 July.
News of the regulatory approvals, disclosed by Montreal-based CAE on 28 June, means the company is on track within days to become a military training powerhouse.
The deal calls for CAE to pay $1.05 billion to purchase the L3Harris business, which includes Doss Aviation, a provider of initial flight training to the US Air Force (USAF), AMI, a flight simulator manufacturing operation, and Link Simulation & Training, which provides training to the US military.
The acquisition will “approximately double CAE’s core military training business in the United States”, CAE says. “L3Harris military training will bring significant experience in the development and delivery of training systems for fighter and bomber aircraft, army rotary-wing platforms, submarines and remotely piloted aircraft.”
With the deal, CAE will gain a training position on programmes including the USAF Lockheed Martin F-16, the US Navy and US Marine Corps Boeing F/A-18 and USAF Northrop Grumman B-2 bombers, it says.
CAE disclosed its planned acquisition of the L3Harris business, which generated $500 million in 2020 revenue, in March.
CAE has been heavily dependent on the civil aviation industry. In fiscal year 2020, 60% of CAE’s revenue came from civil aviation training products and services, with the military aviation sector accounting for 37%, regulatory documents show.
“This represents the largest acquisition in our history and clearly demonstrates our strategy to strengthen and expand our position in all the markets CAE serves,” says CAE chief executive Marc Parent. “We will be emerging from the pandemic much stronger and more ready to meet the growing demands of our customers.”
CAE has been on a recent acquisition kick, with particular focus on expanding its commercial-aviation footprint – a segment that significantly declined amid the Covid-19 pandemic. In January, CAE acquired the Canadian division of Textron’s Tru Simulation and Training. It purchased New Zealand crew services provider Merlot Aero in December 2020 and Dutch training provider Flight Simulation Company in November 2020.
CAE deploys a Boeing 767 simulator to support pilot training for MasAir Cargo. From left to right: Tereza Paredes (Training Manager, MasAir Cargo), Capt. Victor Peña (Head of Pilot Training, MasAir Cargo), Capt. Guillermo (Training Centre Manager, CAE), Roberto Navarro (Operations Director, Mas Air Cargo), Capt. Cynthia Cano (Chief Pilot, MasAir Cargo), Patrick McCarthy (Strategic Planning Director, MasAir Cargo), Luis Sierra (MasAir CEO), F.O Orlando Cruz (Crew, MasAir)
CAE and MasAir Cargo (MasAir) signed an exclusive five-year aircraft pilot training agreement. As part of this agreement, CAE is providing instructors and flight training equipment to train MasAir’s cargo pilots on the Boeing 767 platform and is deploying a full-flight simulator to CAE’s Mexico training centre in Toluca, southwest of Mexico City.
“Throughout the years, airlines around the world have entrusted CAE to provide the highest level of pilot training and flight simulation technology,” said Nick Leontidis, CAE’s Group President Civil Aviation Training Solutions. “The pandemic has fueled growth in the cargo airline business in the recent months and CAE is thrilled to support MasAir as the airline is further developing its ACMI and Scheduled cargo flight services. Our instructors will be delivering our world-class training experience and we are looking forward to welcoming MasAir’s pilots to our CAE Mexico training centre.”
“Despite the recent significant demand for our Scheduled Cargo and ACMI services, MasAir continues to deliver operational excellence, flight after flight. This strategic agreement with CAE, a leader in pilot training, will enable us to keep an accelerated growth, while maintaining our continuous commitment to achieving the highest standards of safety in the industry,” said Patrick McCarthy, Strategic Planning Director, MasAir Cargo. “Our joint focus on pilot training excellence will help us grow our operations safely and achieve our vision, and we look forward to starting our pilot training program with CAE later this year.”
MasAir pilot training at CAE Mexico is expected to start in July 2021.
Aerotransportes Mas de Carga, SA de CV (dba MasAir Cargo Airline) is a Mexico City-based cargo airline, operating freighter aircraft since 1992. Since 2001, MasAir has been a B767-300Fs operator. An IATA member, MasAir holds IOSA, ISAGO, TCO-EASA, CCAR-129 and IATA-CEIV Pharma certifications. Since December 2018 MasAir is under a new ownership structure and management, with Discovery Americas -a leading Mexican Private Equity Fund- as majority shareholder. MasAir has a scheduled and charter network that spans along the Americas and Europe and is now expanding its new ACMI division with additional freighter aircraft. www.masair.com
Montreal, 19 May 2021 – CAE today reported annual revenue of $3.0 billion, compared to $3.6 billion last year. Annual operating income was $48.4 million and adjusted segment operating income was $280.6 million compared to $590.4 million last year. Adjusted segment operating income excluding COVID-19 government support programs was $153.2 million this year. Annual net loss attributable to equity holders was $47.2 million (negative $0.17 per share) compared to net income of $311.4 million ($1.16 diluted earnings per share) in fiscal year 2020. Adjusted net income was $127.1 million ($0.47 per share) this year, compared to $359.7 million ($1.34 per share) last year. Adjusted net income excluding COVID-19 government support programs was $33.6 million ($0.12 per share) this year.
Fourth quarter fiscal 2021 revenue was $894.3 million, compared with $977.3 million last year. Fourth quarter net income attributable to equity holders was $19.8 million ($0.07 per share) compared to $78.4 million ($0.29 per share) last year. Adjusted net income in the fourth quarter was $63.2 million ($0.22 per share), compared to $122.3 million ($0.46 per share) last year. Adjusted net income excluding COVID-19 government support programs was $35.9 million ($0.12 per share) this quarter.
“CAE demonstrated mettle and resiliency during the fiscal year by successfully confronting the challenges of COVID-19, and at the same time, seizing on opportunities to fundamentally strengthen the Company for the future,” said Marc Parent, CAE’s President and Chief Executive Officer. “We harnessed our One CAE culture and secured highly strategic growth opportunities, launched new digitally-enabled services and software solutions, innovated business processes, structurally lowered our cost base, and bolstered key talent – all of which give us greater potential than ever before for higher growth and profitability in the years ahead.”
Marc Parent added, “Turning to our results, given the magnitude of COVID-19 impacts, I am especially pleased with what we have been able to deliver in fiscal 2021. In the face of the biggest-ever shock in the history of civil aviation and major disruptions across the defence and healthcare markets, CAE rebounded to quarterly profitability and positive free cash flow(9) after only our first quarter. Our recovery momentum has continued into the fourth quarter with average training network utilization of 55% and sequentially higher margins in Civil, order bookings to sales breaking above 1.1x in Defence, and record quarterly revenue in Healthcare. For CAE overall, we generated $0.22 adjusted EPS in the quarter and $0.47 adjusted EPS for the year. We also generated strong annual free cash flow of $347 million, serving as a testament to CAE’s resiliency as a good port in a storm.”
On CAE’s outlook, Marc Parent added, “we are making important progress to galvanize CAE as an industrial technology leader and position the Company for higher growth. This includes the integration of our four recent acquisitions in Civil that will strengthen our offering and expand our addressable market with highly innovative software solutions. In Defence, the opportunity to acquire L3Harris’ Military Training business will significantly accelerate our Defence growth strategy and align us more closely with national defence priorities. In addition, we maintain the financial flexibility and bandwidth to continue to cultivate a pipeline of sustainable growth opportunities, including the deployment of expansion capital and customer outsourcings. We expect strong growth in fiscal year 2022, with the slope of recovery continuing to depend on the timing and rate at which travel restrictions and quarantines can be safely lifted in our various geographies and normal activities resume in our end markets. For the long-term, we are more confident than ever that CAE will emerge from this period in a position of even greater strength.”
Civil Aviation Training Solutions (Civil)
Fourth quarter Civil revenue was $388.2 million, down 6% compared to the preceding quarter, and down 36% compared to the same quarter last year. Operating income was $40.5 million compared to $48.4 million in the third quarter and $151.5 million in the fourth quarter last year. Fourth quarter Civil adjusted segment operating income was $66.6 million (17.2% of revenue), compared to $62.0 million (15.0% of revenue) in the third quarter and $153.6 million (25.5% of revenue) in the fourth quarter last year. Adjusted segment operating income excluding COVID-19 government support programs was $46.9 million (12.1% of revenue) this quarter and $58.4 million (14.2% of revenue) in the third quarter. Fourth quarter Civil training centre utilization(10) was 55% and has trended at a similar level since the end of the quarter.
Annual Civil revenue was $1,412.9 million, down 35% compared to last year. Annual operating income was $6.5 million compared to $473.3 million last year, and annual adjusted segment operating income was $164.3 million (11.6% of revenue) compared to $479.4 million (22.1% of revenue) last year. Adjusted segment operating income excluding COVID-19 government support programs was $100.7 million this year (7.1% of revenue). Annual Civil training centre utilization was 47%.
During the quarter, Civil signed training solutions contracts valued at $385.8 million, including long-term training services agreements and the sale of 4 full-flight simulators (FFSs)(11). For the year, Civil booked orders for $1.3 billion, demonstrating CAE’s continued momentum as the training partner of choice for airlines, business jet operators and pilots worldwide. These included 11 FFS sales and comprehensive, long-term training agreements with customers worldwide, including Iberia, Líneas Aéreas de España, Azul Brazilian Airlines, Bundeswehr in Germany, Virgin Atlantic, Alitalia and Air France. In fiscal year 2022, Civil expects to maintain its leading share of the available FFS sales and expects to deliver upwards of 30 FFSs to customers worldwide.
The Civil book-to-sales(8) ratio was 0.99x for the quarter and 0.89x for the last 12 months. The Civil backlog at the end of the year was $4.3 billion, which is down 20% from the prior year period.
Since the end of the quarter, in the Advanced Air Mobility market, CAE announced that it has been selected by Jaunt Air Mobility to lead the design and development of the Jaunt Aircraft Systems Integration Lab (JASIL) for the company’s new all-electric vertical take-off and landing (eVTOL) aircraft, the Journey aircraft. By leveraging CAE’s 70+ years of experience in high-fidelity simulation, CAE will work hand-in-hand with Jaunt to bring best-in-class simulation and modeling to the aircraft development program from inception.
Receives Silver Parity Certification from Women in Governance
Included in Bloomberg Gender Equality 2021 Index for third consecutive year
Montreal, Quebec, Canada, May 6, 2021
CAE was awarded the Silver-level certification by Women in Governance for its efforts in promoting gender parity in the workplace. The company was also included in the Bloomberg Gender Equality Index for the third consecutive year.
CAE received its certification at Women in Governance’s 2021 Annual Recognition Gala which was held today and featured, as honorary co-presidents, Marc Parent, CAE’s President and Chief Executive Officer, and Maria Della Posta, President of Pratt & Whitney Canada.
“Diversity and inclusion is part of our values and a strategic priority for CAE,” said Marc Parent. “We are committed to advancing equality between women and men in the workplace and to encourage other business leaders to make a similar commitment. In the past few years, CAE has made progress in the attraction, development and retention of female talent and in promoting gender parity within our organization. We have launched unconscious bias training for all employees as well as a series of internal programs to equip and inspire women to take ownership of their careers within the company. In addition to our Professional Women’s Network, we launched another employee resource group (ERG), voted by employees and focused on Women in Aviation and Technology. Externally, our CAE Women in Flight scholarship program encourages more women to aspire to become professional pilots.”
The Women in Governance Parity Certification serves to recognize organizations that have achieved results by articulating a commitment to gender parity in the workplace, integrating it to the ecosystem of the organization and implementing mechanisms to achieve that commitment and sustain it over time. CAE was awarded the Bronze-level certification in September 2019.
This award follows the recognition CAE received earlier this year as one of 380 firms worldwide selected for inclusion in Bloomberg’s 2021 Gender-Equality Index (GEI). The GEI tracks the performance of public companies committed to disclosing their efforts to support gender equality through policy development, representation and transparency.
CAE is a signatory of the United Nations Women Empowerment Principles as part of its ongoing commitment to promoting gender equality and the empowerment of women in the workplace.
CAE is a high-tech company at the forefront of digital immersion, providing solutions to make the world safer. Backed by more than 70 years of innovation, we continue to reinvent the customer experience and revolutionize training and operational support solutions in the civil aviation, defence and security, and healthcare industries. We are the partner of choice for customers around the world who operate in complex, often dangerous and highly regulated environments where success is critical. As a result of our customers’ ongoing need for our solutions, more than 60% of CAE’s revenue is generated from recurring business. We have the largest global presence in the industry, with approximately 10,000 employees in 160 locations and training centres in more than 35 countries. www.cae.com
CAE announced today the appointment of Mary Lou Maher, FCPA, FCA, as a new member of CAE’s Board of Directors.
“We are very pleased to welcome Mary Lou Maher to CAE’s Board of Directors, she brings with her over 35 years of experience in finance, risk management, risk governance, diversity and inclusion, and human resources management,” said the Honourable John Manley, Chair of CAE’s Board of Directors.
Mary Lou Maher was Canadian Managing Partner, Quality and Risk for KPMG Canada and Global Head of Inclusion and Diversity for KPMG International from 2017 to February 2021. Over her 38 years at KPMG she has held various executive and governance roles including Chief Financial Officer and Chief Human Resources Officer.
Ms. Maher created KPMG Canada’s first ever National Diversity Council and was the 2019 recipient of the Wayne C. Fox Award for Distinguished Alumni from McMaster University in recognition of her work on diversity and inclusion. She was inducted into the WXN Top 100 Most Powerful Women in Canada, received a Lifetime Achievement Award from Out on Bay Street (Proud Strong), and the Senior Leadership Award for Diversity from the Canadian Centre for Diversity and Inclusion.
She is a member of the World Economic Forum focused on Human Rights – the business perspective, the Alzheimer’s Society of Toronto, and has served on other not-for-profit boards including as Chair of Women’s College Hospital and member of the CPA Ontario Council.
Ms. Maher holds a Bachelor of Commerce degree from McMaster University and holds the designation of FCPA, FCA.
CAE is a high technology company, at the leading edge of digital immersion, providing solutions to make the world a safer place. Backed by a record of more than 70 years of industry firsts, we continue to reimagine the customer experience and revolutionize training and operational support solutions in civil aviation, defence and security, and healthcare. We are the partner of choice to customers worldwide who operate in complex, high-stakes and largely regulated environments, where successful outcomes are critical. As testament to our customers’ ongoing needs for our solutions, over 60 percent of CAE’s revenue is recurring in nature. We have the broadest global presence in our industry, with approximately 10,000 employees, 160 sites, and training locations in over 35 countries. www.cae.com