CIBC: Ahead of expectations2022 Preliminary Results Ahead Of Expectations; Issuing 2029 Notes Further De-risks Balance Sheet
Key Takeaway:
Positive impact. BBD released preliminary 2022 results that are ahead of expectations and its guidance. The company also announced the issuance of 2029 notes to take out all of its outstanding 2024 notes and some of its 2025 notes. We view this move positively as it further de-risks the balance sheet by pushing out debt maturities. Net-net, we continue to see BBD tracking ahead of its 2025 targets in terms of free cash flow (FCF) generation and deleveraging.
Preliminary 2022 Results Ahead Of Expectations: BBD released its preliminary 2022 results and they are ahead of expectations. The company expects:
• Deliveries of 123 planes (we estimate 121 and guidance is more than 120);
• Revenue of $6.9B (we forecast $6.7B, consensus is $6.6B and guidance is >$6.5B);
• Adjusted EBITDA of $930MM (we estimate $891MM, consensus is $889MM and guidance is >$825MM);
• Adjusted EBIT of $510MM (we’re at $450MM, consensus is $480MM and guidance is >$375MM);
• FCF of $735MM (our estimate is $710MM, consensus is $670MM and guidance is >$515MM);
• CFO of $1.07B (we forecast $980MM and consensus is $966MM); and,
• Net capex of $335MM (our estimate is $261MM and consensus is $260MM).