Here it is!Bombardier Reports Fourth Quarter and Full Year 2016 Results
- Consolidated earnings and cash performance(1) exceeded 2016 guidance - Full-year margin(1) targets exceeded at Transportation, Business and Commercial Aircraft - All new program milestones met; CS100 and CS300 in service, Global 7000 in flight testing - 2017 guidance affirmed, on track to achieve all 2018 and 2020 targets - Liquidity(2) secured, turnaround plan in full motion
MONTREAL, QUEBEC--(Marketwired - Feb 16, 2017) - Bombardier (TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF) today reported its fourth quarter and full year 2016 results. The Company also affirmed its guidance for 2017 and highlighted another quarter of solid performance as it executes its turnaround plan.
"Our turnaround plan is in full motion," said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. "In 2016, Bombardier delivered on its financial commitments. We met our program milestones and we've positioned the Company to achieve all of the financial goals in our five-year turnaround plan, including being cash flow break-even in 2018."
On a consolidated basis, Bombardier exceeded its 2016 guidance range for EBIT before special items(3) ; improved its year-over-year cash performance by $778 million; and delivered approximately 200 basis points of margin improvement at its Transportation, Business Aircraft and Aerostructures segments. With the successful refinancing of $1.4 billion of senior notes in the fourth quarter, the Company also successfully completed the de-risking phase of its turnaround plan in 2016, securing the liquidity necessary to fully execute the final two phases of the plan: building earnings and cash flow and de-leveraging its balance sheet.
Further highlighting the Company's progress in the fourth quarter was the successful entry-into-service of the CS300 aircraft with airBaltic, which followed the strong performance of the CS100 aircraft with SWISS since starting commercial operations over six months ago. Bombardier's all-new, class-defining, ultra-long range business jet, the Global 7000, also began flight testing in the fourth quarter and remains on schedule to enter service in the second half of 2018.
"As we begin 2017, we are confident in our strategy, our turnaround plan and in our ability to unleash the full value of the Bombardier portfolio, " Bellemare continued. "We remain focused on improving operational efficiency, flawlessly ramping up our new programs and maintaining a disciplined and proactive approach to deliver value to customers and shareholders in any market environment."
For 2017, as per guidance introduced in December 2016, the Company expects to resume revenue growth in the low-single digits, driven by an increase in Transportation revenues and an acceleration of C Series aircraft deliveries. EBIT before special items for 2017 is forecast to increase by 35% at the mid-point of the $530 million to $630 million range, with margins improving across all business segments. Free cash flow usage should continue to improve by up to $300 million, falling in the range of $750 million to $1.0 billion as the Company continues to come down the learning curve on the C Series aircraft.
Selected results
For the fiscal years ended December 31 2016 2015
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Revenues $16,339 $18,172
EBIT $ (58) $(4,838)
EBIT margin (0.4)% (26.6)%
EBIT before special items $ 427 $ 554
EBIT margin before special items(3) 2.6% 3.0%
EBITDA before special items(3) $ 798 $ 992
EBITDA margin before special items(3) 4.9% 5.5%
Net loss $ (981) $(5,340)
Diluted EPS (in dollars) $ (0.48) $ (2.58)
Adjusted net income (loss)(3) $ (268) $ 326
Adjusted EPS (in dollars)(3) $ (0.15) $ 0.14
Net additions to PP&E and intangible assets $ 1,201 $ 1,862
Free cash flow usage(3) $(1,064) $(1,842)
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As at December 31 2016 2015
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Available short-term capital resources(2) $ 4,477 $ 4,014
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For the fourth quarters ended December 31 2016 2015
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Revenues $4,380 $5,017
EBIT $ 74 $ (657)
EBIT margin 1.7% (13.1)%
EBIT before special items $ 104 $ 16
EBIT margin before special items 2.4% 0.3%
EBITDA before special items $ 203 $ 139
EBITDA margin before special items 4.6% 2.8%
Net loss $ (259) $ (677)
Diluted EPS (in dollars) $(0.12) $(0.31)
Adjusted net income (loss) $ (141) $ 9
Adjusted EPS (in dollars) $(0.07) $ 0.00
Net additions to PP&E and intangible assets $ 327 $ 543
Free cash flow(3) $ 496 $ 527
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All amounts in this press release are in U.S. dollars,
unless otherwise indicated.
Amounts in tables are in millions except per share
amounts, unless otherwise indicated.
SEGMENTED RESULTS AND HIGHLIGHTS
Business Aircraft
For the fiscal years ended December
31 2016 2015 Variance
----------------------------------- ----- ------ --------
Revenues $5,741 $ 6,996 (18)%
Aircraft deliveries (in units) 163 199 (36)
Net orders (in units) 114 (24) 138
Book-to-bill ratio(4) 0.7 nmf nmf
EBIT $ 477 $(1,252) nmf
EBIT margin 8.3% (17.9)% nmf
EBIT before special items $ 369 $ 308 20%
EBIT margin before special items 6.4% 4.4% 200 bps
EBITDA before special items $ 528 $ 492 7%
EBITDA margin before special items 9.2% 7.0% 220 bps
Net additions to PP&E and
intangible assets $ 721 $ 722 -%
----------------------------------- ----- ------ --------
As at December 31 2016 2015
----------------------------------- ----- ------ --------
Order backlog (in billions of
dollars) $ 15.4 $ 17.2 (10)%
----------------------------------- ----- ------ --------
-- Business Aircraft's 2016 financial performance exceeded guidance on all
fronts, delivering a total of 163 aircraft, while reaching revenues of
$5.7 billion and EBIT margins before special items of 6.4%, a 200-basis
point improvement over the prior year.
-- Financial results for 2016 demonstrated our continued focus on driving
sustainable margin expansion through increasing production efficiency,
transforming our cost structure, improving our production agility and the
enhancement to our pre-owned aircraft business.
-- We also made significant progress on the development of the Global 7000
and Global 8000 aircraft program, setting the standard for a new category
of large business jets. We successfully completed, on November 4, 2016,
the maiden flight of the first Global 7000 FTV, dedicated to testing
basic system functionality and assessing the handling and flying
qualities of the aircraft. The Global 7000 aircraft is the first and only
clean-sheet business jet with four living spaces. Engineered with a
next-generation transonic wing design, the aircraft offers a steep
approach capability and short field performance, coupled with highly
efficient engines, the largest cabin in this category and a highly
advanced cockpit.(5)
Commercial Aircraft
For the fiscal years ended
December 31 2016 2015 Variance
--------------------------------- ----- ------ ----------
Revenues $2,617 $ 2,395 9%
Aircraft deliveries (in units) 86 76 10
Net orders (in units) 161 51 110
Book-to-bill ratio(4) 1.9 0.7 1.2
EBIT $ (903) $(3,970) nmf
EBIT margin (34.5)% nmf nmf
EBIT before special items $ (417) $ (170) (145)%
EBIT margin before special items (15.9)% (7.1)% (880) bps
EBITDA before special items $ (353) $ (66) nmf
EBITDA margin before special
items (13.5)% (2.8)% (1070) bps
Net additions to PP&E and
intangible assets $ 392 $ 963 (59)%
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As at December 31 2016 2015
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Order backlog (in units) 436 361 75
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-- Commercial aircraft's financial performance for 2016 was marked by the
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