Q1 2021 Key Metrics
- Net loss of $38.1 million, or $0.24 per basic share; a period-over-period decrease of $20.8 million due to one-time restructuring costs related to the 2021 capacity purchase agreement (‘CPA’) amendments of $81.8 million as outlined below, offset by the changes in unrealized foreign exchange of $45.4 million and income taxes.
- Adjusted net income1 of $15.7 million, or $0.10 per basic share; a decrease of $8.1 million quarter-over-quarter primarily due to the impact of COVID-19.
- Adjusted EBITDA1 of $84.0 million; a decrease of $4.5 million over first quarter 2020.
- Liquidity of $171.3 million.
- Collected approximately 62% of lease revenue billed in the first quarter consistent with fourth quarter 2020 collections.
- Revised CPA with Air Canada, enhancing Jazz’s position as the exclusive Air Canada Express operator of 70-78 seat regional capacity until the end of 2025 and is currently the sole provider of Air Canada Express services.
- Completed a public offering and concurrent private placement for gross proceeds of $145.1 million.
- Remarketed three Dash 8-400s to two new leasing customers, Sky Alps of Italy (two aircraft) and one Dash 8-400 to National Jet Express, a subsidiary of Australian aviation operator, Cobham Aviation Services.
- Secured a three-year contract with Purolator for air cargo charter services, executing on Chorus’ growing capabilities in this market segment.
- Awarded a 3-year contract to upgrade and modify Transport Canada’s National Aerial Surveillance Program fleet of Dash 8-100 and Dash 7 aircraft with new surveillance equipment.
- Awarded a new five-year contract to provide fixed-wing air ambulance service for Ambulance New Brunswick further extending its 25-year relationship.
HALIFAX, NS, May 12, 2021 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced first quarter 2021 financial results and an update on the impact of COVID-19.
“I am proud and encouraged by our accomplishments so far this year,” commented Joe Randell, President and Chief Executive Officer, Chorus. “While our industry continues to be challenged by the negative effects of COVID-19, we have made considerable progress towards ensuring we emerge from the pandemic in the strongest position possible.”
“In March we revised our CPA with Air Canada to our mutual benefit. The two primary highlights are the transfer of 25 Embraer 175 aircraft to Jazz, and the introduction of a cap on the controllable cost guardrail receivable. With the transfer of the aircraft, Jazz is currently the sole operator of Air Canada Express flights and has the exclusive right to operate 70 – 78 seat regional capacity until 2025. As our work with Air Canada on recovery plans continues, these revisions further strengthen our relationship and provides significant network efficiencies and planning flexibility – elements that are vital as service resumptions are implemented. The new cap on the controllable cost guardrail reduces our financial exposure and minimizes draws on our working capital. Finally, the recent support of the Canadian government to Air Canada was a welcomed announcement as it helped preserve regional services across our nation.”
“While there remains uncertainty, our industry is starting to experience some encouraging signs of renewed travel demand, most particularly in regional and short-haul markets. This was evidenced by our recent long-term lease agreements with two new leasing customers, Sky Alps of Italy, and Cobham Aviation Services of Australia. The aircraft, three Dash 8-400s, were repossessed by Chorus in 2020 and underwent reconfiguration and return-to-service work at Voyageur and Jazz Technical Services. This is what differentiates Chorus from the competition – not only are we an airline operator, we offer a broad range of solutions to remarket aircraft in the midst of one of the most challenging periods in aviation history.”
“Although we paused our growth and diversification strategy in 2020 to focus on liquidity, it remains a corporate priority. Our capital raise in April was over-subscribed and generated gross proceeds of $145.1 million, thus enabling us to improve our balance sheet and prudently seek growth opportunities.”
“The recent contracts awarded to Voyageur by Purolator, Transport Canada and Ambulance New Brunswick are a testament to the incredible skill and ingenuity of the team and clearly position us as a premiere special mission service provider. We are pleased to grow our relationships with these important customers and are very excited to be expanding our capabilities to include cargo contract flying on behalf of Purolator. We view the cargo market as a growth opportunity that is benefiting from the successes of e-commerce and look forward to participating in this evolving sector.”
“We are proud of the way we are managing through this pandemic and have centered our attention on the future. I’m very grateful to our employees for delivering terrific accomplishments despite all the challenges associated with the global pandemic. We are well positioned to take advantage of future opportunities,” concluded Mr. Randell.Continue reading