MONTRÉAL, QUÉBEC--(Marketwired - Oct. 30, 2014) - Bombardier Inc. (TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF)
(All amounts in this press release are in U.S. dollars unless otherwise indicated. This press release contains both IFRS and non-GAAP measures. Non-GAAP measures are defined and reconciled to the most comparable IFRS measures in the Corporation's MD&A. See Caution regarding non-GAAP measures at the end of this press release.)
- Revenues of $4.9 billion, compared to $4.1 billion for the same period last fiscal year
- EBIT before special items(1) of $291 million, or 5.9% of revenues, compared to $210 million, or 5.2%, for the same period last fiscal year
- Adjusted net income(1) of $222 million (adjusted EPS(1) of $0.12), compared to $165 million (adjusted EPS of $0.09) for the same period last fiscal year
- Free cash flow usage(1) of $368 million, compared to a usage of $522 million for the same period last fiscal year, including a net investment of $444 million in PP&E and intangible assets
- Available short-term capital resources of $3.3 billion, including cash and cash equivalents of $1.9 billion as at September 30, 2014, compared to $4.8 billion and $3.4 billion, respectively, as at December 31, 2013
- Backlog of $72.4 billion as at September 30, 2014, compared to $69.7 billion as at December 31, 2013
| 1 |
See Caution regarding non-GAAP measures at the end of this press release. |
Bombardier today reported its financial results for the third quarter ended September 30, 2014. Revenues totalled $4.9 billion for the quarter, compared to $4.1 billion for the same period last fiscal year, an increase of 20% excluding currency impacts.
For the third quarter ended September 30, 2014, earnings before financing expense, financing income and income taxes (EBIT) totalled $171 million, or 3.5% of revenues, compared to $210 million or 5.2% for the same period last fiscal year. EBIT before special items totalled $291 million, or 5.9% of revenues, compared to $210 million or 5.2% for the same period last fiscal year.
Net income totalled $74 million, or earnings per share (EPS) of $0.03, compared to $147 million or $0.08 for the same period the previous year. On an adjusted basis, net income amounted to $222 million, or EPS of $0.12, for the third quarter ended September 30, 2014, compared to $165 million, or $0.09, for the same period the previous year.
For the three-month period ended September 30, 2014, free cash flow usage (cash flows from operating activities less net additions to property, plant and equipment (PP&E) and intangible assets) amounted to $368 million, compared to a usage of $522 million for the same period last year. As at September 30, 2014, available short-term capital resources of $3.3 billion included cash and cash equivalents of $1.9 billion, compared to $4.8 billion and $3.4 billion, respectively as at December 31, 2013. The overall backlog reached $72.4 billion as at September 30, 2014, compared to $69.7 billion as at December 31, 2013.
"During the third quarter, we saw good momentum at Aerospace with improvement on all fronts. The CSeries flight test program resumed in September and is progressing well. Transportation also had good results in the quarter. Its backlog continued to increase with several small and medium orders won across various regions and product segments, thus maintaining its leading position in the rail industry," said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc.
"The major restructuring plan announced in July was deployed at Aerospace, while Transportation continued to execute on OneBT, setting the right conditions to continue on our path to profitable growth. Our new lighter structure will result in a more nimble organization with the added benefit of reduced costs. This, in combination with our investments in new products, will ensure our market leadership and improved execution on our strong order backlog of $72.4 billion," concluded Mr. Beaudoin.
Bombardier also announced the resignation of Mr. Thierry Desmarest from its Board of Directors. Following the recent death of Christophe de Margerie, Chairman and Chief Executive Officer of French energy company Total S.A., Mr. Desmarest was appointed the company's Chairman of the Board. As a result, Mr. Desmarest was required to reduce the number of his board memberships in order to respect the French Corporate Governance Code of Listed Corporations. The Board of Directors of Bombardier accepted Mr. Desmarest's resignation with regret.
Bombardier Aerospace
Bombardier Aerospace's revenues increased by 29% to reach $2.6 billion for the three-month period ended September 30, 2014, compared to $2.0 billion for the same period last fiscal year. EBIT totalled $74 million, or 2.9% of revenues, for the third quarter, compared to $86 million, or 4.3%, for the same period last fiscal year. EBIT before special items totalled $137 million, or 5.3% of revenues, compared to $86 million, or 4.3%, for the same period last fiscal year. Free cash flow usage amounted to $180 million (including net investments to PP&E and intangible assets of $415 million) for the third quarter ended September 30, 2014, compared to a usage of $406 million (including net investments to PP&E and intangible assets of $585 million) for the same period last fiscal year.
Bombardier Aerospace delivered a total of 71 aircraft during the third quarter ended September 30, 2014, compared to 45 for the same period last fiscal year, and received 76 net orders, compared to 26 for the same period last fiscal year. Bombardier Aerospace's backlog reached a level of $37.9 billion as at September 30, 2014, compared to $37.3 billion as at December 31, 2013.
In September, the CSeries aircraft resumed flight testing and the program is progressing well. More than 120 hours of flight were recorded since then by two Flight Test Vehicles (FTV), bringing the total number of flight hours to 450. FTV2 is now operating its fly-by-wire in normal mode and flight testing continues as planned. The entry-into-service (EIS) for the CS100 aircraft is targeted for the second half of 2015 and the CS300 aircraft's EIS will follow approximately six months afterwards.
Commercial aircraft received a firm order for 40 CS300 aircraft with options for an additional 10 CS300 aircraft from a wholly owned affiliate of Macquarie AirFinance. The firm order is valued at $3.1 billion based on list price. This order brings the total CSeries firm orders and other commitments to 563, with 21 customers in 18 countries, including 243 firm orders.
As part of the new organizational structure announced on July 23, 2014, a workforce reduction took place over the past weeks and a restructuring charge of $63 million was recorded as a special item. This workforce reduction is expected to generate approximately $200 million in annual cost savings.
Subsequent to the end of the quarter, Bombardier Aerospace launched the new Challenger 650 aircraft, the evolution of the Challenger 605 aircraft. The Challenger 650 aircraft will offer increased performance capabilities from enhanced engines, an entirely new interior and the Bombardier Vision flight deck technology. Its EIS is scheduled for 2015.
Bombardier Transportation
Bombardier Transportation's revenues amounted to $2.3 billion for the three-month period ended September 30, 2014, compared to $2.1 billion for the same period last year, an increase of 12% excluding currency impacts. EBIT totalled $97 million, or 4.2% of revenues, compared to $124 million, or 6.0%, for the same quarter the previous year. EBIT before special items amounted to $154 million, or 6.6% of revenues, compared to $124 million, or 6.0%, for the same quarter the previous year. Free cash flow usage totalled $81 million for the quarter ended September 30, 2014, compared to a usage of $5 million for the same period last fiscal year.
New orders reached $1.1 billion (book-to-bill ratio of 0.5), bringing the total orders to $10.8 billion for the first nine months of the year (book-to-bill ratio of 1.6). This translates into an order backlog of $34.5 billion as at September 30, 2014, compared to $32.4 billion as at December 31, 2013.
Among the significant orders won during the third quarter, Société Nationale des Chemins de fer Français (SNCF) exercised an option for 22 additional Francilien trains. The order is valued at approximately $218 million and is part of the initial 2006 contract with SNCF for up to 372 trains for the Île-de-France. With this order, a total of 194 Francilien trains have been ordered. Bombardier Transportation also signed a new contract with New Jersey Transit Corporation (NJ TRANSIT) to provide operations and maintenance services for NJ TRANSIT's River Line Light Rail system. The contract is valued at approximately $296 million and covers a period of 15 years. The agreement includes an option for an additional five years.
Following the reorganization initiatives announced last July, a restructuring charge of $57 million related to headcount reduction has been recorded as a special item. These measures are expected to generate approximately $68 million of annual cost savings.
| FINANCIAL HIGHLIGHTS |
| (in millions of U.S. dollars, except per share amounts) |
| Three-month periods ended September 30 |
2014 |
|
|
2013 |
| |
BA |
BT |
Total |
BA |
BT |
Total |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Results of operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
$ |
2,572 |
|
$ |
2,334 |
|
$ |
4,906 |
|
$ |
1,999 |
|
$ |
2,059 |
|
$ |
4,058 |
|
| Cost of sales |
|
2,217 |
|
|
2,009 |
|
|
4,226 |
|
|
1,710 |
|
|
1,769 |
|
|
3,479 |
|
| Gross margin |
|
355 |
|
|
325 |
|
|
680 |
|
|
289 |
|
|
290 |
|
|
579 |
|
| SG&A |
|
162 |
|
|
153 |
|
|
315 |
|
|
176 |
|
|
164 |
|
|
340 |
|
| R&D |
|
51 |
|
|
29 |
|
|
80 |
|
|
39 |
|
|
26 |
|
|
65 |
|
| Share of income of joint ventures and associates |
|
- |
|
|
(14 |
) |
|
(14 |
) |
|
- |
|
|
(24 |
) |
|
(24 |
) |
| Other expense (income) |
|
5 |
|
|
3 |
|
|
8 |
|
|
(12 |
) |
|
- |
|
|
(12 |
) |
| EBIT before special items(1) |
|
137 |
|
|
154 |
|
|
291 |
|
|
86 |
|
|
124 |
|
|
210 |
|
| Special items(2) |
|
63 |
|
|
57 |
|
|
120 |
|
|
- |
|
|
- |
|
|
- |
|
| EBIT |
$ |
74 |
|
$ |
97 |
|
|
171 |
|
$ |
86 |
|
$ |
124 |
|
|
210 |
|
| Financing expense |
|
|
|
|
|
|
|
66 |
|
|
|
|
|
|
|
|
58 |
|
| Financing income |
|
|
|
|
|
|
|
(15 |
) |
|
|
|
|
|
|
|
(22 |
) |
| EBT |
|
|
|
|
|
|
|
120 |
|
|
|
|
|
|
|
|
174 |
|
| Income taxes |
|
|
|
|
|
|
|
46 |
|
|
|
|
|
|
|
|
27 |
|
| Net income |
|
|
|
|
|
|
$ |
74 |
|
|
|
|
|
|
|
$ |
147 |
|
| EPS (basic and diluted; in dollars) |
|
|
|
|
|
|
$ |
0.03 |
|
|
|
|
|
|
|
$ |
0.08 |
|
| Supplemental information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBIT before special items(1) |
$ |
137 |
|
$ |
154 |
|
$ |
291 |
|
$ |
86 |
|
$ |
124 |
|
$ |
210 |
|
| Amortization |
|
76 |
|
|
29 |
|
|
105 |
|
|
61 |
|
|
31 |
|
|
92 |
|
| EBITDA before special items(1) |
$ |
213 |
|
$ |
183 |
|
$ |
396 |
|
$ |
147 |
|
$ |
155 |
|
$ |
302 |
|
| On an adjusted basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income(1) |
|
|
|
|
|
|
$ |
222 |
|
|
|
|
|
|
|
$ |
165 |
|
| Adjusted EPS (in dollars)(1) |
|
|
|
|
|
|
$ |
0.12 |
|
|
|
|
|
|
|
$ |
0.09 |
|
| Cash flows from operating activities |
$ |
235 |
|
$ |
(52 |
) |
|
|
|
$ |
179 |
|
$ |
6 |
|
|
|
|
| Net additions to PP&E and intangible assets |
|
(415 |
) |
|
(29 |
) |
|
|
|
|
(585 |
) |
|
(11 |
) |
|
|
|
| Segmented free cash flow usage(1) |
$ |
(180 |
) |
$ |
(81 |
) |
$ |
(261 |
) |
$ |
(406 |
) |
$ |
(5 |
) |
$ |
(411 |
) |
| Net income taxes and net interest paid |
|
|
|
|
|
|
|
(107 |
) |
|
|
|
|
|
|
|
(111 |
) |
| Free cash flow usage(1) |
|
|
|
|
|
|
$ |
(368 |
) |
|
|
|
|
|
|
$ |
(522 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BA: Bombardier Aerospace; BT: Bombardier Transportation |
| (1) |
Non-GAAP financial measure. Refer to the Non-GAAP financial measures and Liquidity and capital resources sections of the Corporation's MD&A for definitions of these metrics and reconciliation to the most comparable IFRS measures. |
| (2) |
The special items for the three-month period ended September 30, 2014 relate to a $63 million expense for the workforce reduction of approximately 2,000 positions at BA, located mostly in Canada, the U.S. and the U.K., related to the new organizational structure announced in July 2014, and to a $57 million expense related to the reduction of worldwide direct and indirect personnel by approximately 900 employees at BT. |
| |
|
| |
|
| |
|
| Nine-month periods ended September 30 |
2014 |
|
|
2013 |
| |
BA |
BT |
Total |
BA |
BT |
Total |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Results of operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
$ |
7,173 |
|
$ |
6,978 |
|
$ |
14,151 |
|
$ |
6,512 |
|
$ |
6,315 |
|
$ |
12,827 |
|
| Cost of sales |
|
6,175 |
|
|
6,045 |
|
|
12,220 |
|
|
5,583 |
|
|
5,377 |
|
|
10,960 |
|
| Gross margin |
|
998 |
|
|
933 |
|
|
1,931 |
|
|
929 |
|
|
938 |
|
|
1,867 |
|
| SG&A |
|
490 |
|
|
517 |
|
|
1,007 |
|
|
523 |
|
|
543 |
|
|
1,066 |
|
| R&D |
|
138 |
|
|
97 |
|
|
235 |
|
|
126 |
|
|
84 |
|
|
210 |
|
| Share of income of joint ventures and associates |
|
- |
|
|
(64 |
) |
|
(64 |
) |
|
- |
|
|
(102 |
) |
|
(102 |
) |
| Other income |
|
(13 |
) |
|
(1 |
) |
|
(14 |
) |
|
(14 |
) |
|
- |
|
|
(14 |
) |
| EBIT before special items(1) |
|
383 |
|
|
384 |
|
|
767 |
|
|
294 |
|
|
413 |
|
|
707 |
|
| Special items(2) |
|
75 |
|
|
57 |
|
|
132 |
|
|
(31 |
) |
|
- |
|
|
(31 |
) |
| EBIT |
$ |
308 |
|
$ |
327 |
|
$ |
635 |
|
$ |
325 |
|
$ |
413 |
|
$ |
738 |
|
| Financing expense |
|
|
|
|
|
|
|
185 |
|
|
|
|
|
|
|
|
209 |
|
| Financing income |
|
|
|
|
|
|
|
(59 |
) |
|
|
|
|
|
|
|
(102 |
) |
| EBT |
|
|
|
|
|
|
|
509 |
|
|
|
|
|
|
|
|
631 |
|
| Income taxes |
|
|
|
|
|
|
|
165 |
|
|
|
|
|
|
|
|
156 |
|
| Net income |
|
|
|
|
|
|
$ |
344 |
|
|
|
|
|
|
|
$ |
475 |
|
| EPS (basic and diluted; in dollars) |
|
|
|
|
|
|
$ |
0.18 |
|
|
|
|
|
|
|
$ |
0.26 |
|
| Supplemental information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBIT before special items(1) |
$ |
383 |
|
$ |
384 |
|
$ |
767 |
|
$ |
294 |
|
$ |
413 |
|
$ |
707 |
|
| Amortization |
|
213 |
|
|
88 |
|
|
301 |
|
|
193 |
|
|
92 |
|
|
285 |
|
| EBITDA before special items(1) |
$ |
596 |
|
$ |
472 |
|
$ |
1,068 |
|
$ |
487 |
|
$ |
505 |
|
$ |
992 |
|
| On an adjusted basis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income(1) |
|
|
|
|
|
|
$ |
565 |
|
|
|
|
|
|
|
$ |
479 |
|
| Adjusted EPS (in dollars)(1) |
|
|
|
|
|
|
$ |
0.31 |
|
|
|
|
|
|
|
$ |
0.26 |
|
| Cash flows from operating activities |
$ |
320 |
|
$ |
(323 |
) |
|
|
|
$ |
296 |
|
$ |
(61 |
) |
|
|
|
| Net additions to PP&E and intangible assets |
|
(1,408 |
) |
|
(61 |
) |
|
|
|
|
(1,622 |
) |
|
(38 |
) |
|
|
|
| Segmented free cash flow usage(1) |
$ |
(1,088 |
) |
$ |
(384 |
) |
$ |
(1,472 |
) |
$ |
(1,326 |
) |
$ |
(99 |
) |
$ |
(1,425 |
) |
| Net income taxes and net interest paid |
|
|
|
|
|
|
|
(235 |
) |
|
|
|
|
|
|
|
(253 |
) |
| Free cash flow usage(1) |
|
|
|
|
|
|
$ |
(1,707 |
) |
|
|
|
|
|
|
$ |
(1,678 |
) |
| BA: Bombardier Aerospace; BT: Bombardier Transportation |
| (1) |
Non-GAAP financial measure. Refer to the Non-GAAP financial measures and Liquidity and capital resources sections of the Corporation's MD&A for definitions of these metrics and reconciliation to the most comparable IFRS measures. |
| (2) |
The special items for the nine-month period ended September 30, 2014 relate to a $63 million expense for the workforce reduction of approximately 2,000 positions at BA, located mostly in Canada, the U.S. and the U.K., related to the new organizational structure announced in July 2014, to a $57 million expense related to the reduction of worldwide direct and indirect personnel by approximately 900 employees at BT, and to a $22 million expense for the workforce reduction announced in January 2014 for approximately 1,700 positions at BA, located mostly in Canada and the U.S. |
| |
|
| |
|
| |
|
| SELECTED FINANCIAL INFORMATION |
| |
| Bombardier Aerospace |
| |
| Total aircraft deliveries |
| |
Three-month periods ended September 30 |
Nine-month periods
ended September 30 |
| (in units) |
2014 |
2013 |
2014 |
2013 |
| Business aircraft |
45 |
36 |
126 |
120 |
| Commercial aircraft |
26 |
9 |
62 |
34 |
| Amphibious aircraft |
- |
- |
1 |
1 |
| |
71 |
45 |
189 |
155 |
| |
| |
| |
| Total aircraft net orders |
| |
|
September 30, 2014 |
|
September 30, 2013 |
| (in units) |
Gross
orders |
Cancellations |
Net
orders |
Gross
orders |
Cancellations |
Net
orders |
| Three-month periods ended |
|
|
|
|
|
|
|
|
| Business aircraft |
36 |
(15 |
) |
21 |
37 |
(14 |
) |
23 |
| Commercial aircraft |
55 |
- |
|
55 |
3 |
- |
|
3 |
| |
91 |
(15 |
) |
76 |
40 |
(14 |
) |
26 |
| Nine-month periods ended |
|
|
|
|
|
| Business aircraft |
132 |
(35 |
) |
97 |
138 |
(41 |
) |
97 |
| Commercial aircraft |
117 |
(1 |
) |
116 |
50 |
(11 |
) |
39 |
| Amphibious aircraft |
2 |
- |
|
2 |
- |
- |
|
- |
| |
251 |
(36 |
) |
215 |
188 |
(52 |
) |
136 |
| |
| |
| |
| Book-to-bill ratio(1) |
| |
Three-month periods ended September 30 |
Nine-month periods
ended September 30 |
| |
2014 |
2013 |
2014 |
2013 |
| Business aircraft |
0.5 |
0.6 |
0.8 |
0.8 |
| Commercial aircraft |
2.1 |
0.3 |
1.9 |
1.1 |
| |
1.1 |
0.6 |
1.1 |
0.9 |
| (1) |
Defined as net orders received over aircraft deliveries, in units. |
| |
| |
| |
| Order backlog |
| |
|
As at |
| (in billions of dollars) |
September 30, 2014 |
December 31, 2013 |
| Aircraft programs |
$ |
34.7 |
$ |
33.9 |
| Long-term maintenance and spares support agreements |
|
2.8 |
|
2.9 |
| Military Aviation Training |
|
0.4 |
|
0.5 |
| |
$ |
37.9 |
$ |
37.3 |
| |
| |
| |
| Bombardier Transportation |
| |
| Revenues by geographic region |
|
|
|
|
|
|
|
|
|
| |
Three-month periods ended September 30 |
Nine-month periods ended September 30 |
| |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
| Europe(1) |
$ |
1,621 |
69 |
% |
$ |
1,352 |
66 |
% |
$ |
4,743 |
68 |
% |
$ |
4,197 |
67 |
% |
| North America |
|
310 |
13 |
% |
|
387 |
19 |
% |
|
1,134 |
16 |
% |
|
1,152 |
18 |
% |
| Asia-Pacific(1) |
|
251 |
11 |
% |
|
173 |
8 |
% |
|
675 |
10 |
% |
|
581 |
9 |
% |
| Rest of world(1) (2) |
|
152 |
7 |
% |
|
147 |
7 |
% |
|
426 |
6 |
% |
|
385 |
6 |
% |
| |
$ |
2,334 |
100 |
% |
$ |
2,059 |
100 |
% |
$ |
6,978 |
100 |
% |
$ |
6,315 |
100 |
% |
| (1) |
For the three- and nine-month periods ended September 30, 2014, the increases in Europe reflect positive currency impacts of $34 million and $184 million, respectively, while the increases in Asia-Pacific reflect no currency impact and a negative currency impact of $26 million, respectively, and the increases in the Rest of world region reflect negative currency impacts of $1 million and $17 million, respectively. |
| (2) |
The Rest of world region includes South America, Central America, Africa, the Middle East and the CIS. |
| |
| |
| |
| Order intake and book-to-bill ratio |
| |
Three-month periods ended September 30 |
Nine-month periods
ended September 30 |
| Order intake (in billions of dollars) |
2014 |
2013 |
2014 |
2013 |
| Rolling stock |
$ |
0.2 |
$ |
0.7 |
$ |
5.9 |
$ |
4.0 |
| Services |
|
0.7 |
|
0.2 |
|
3.9 |
|
1.5 |
| System and signalling |
|
0.2 |
|
0.8 |
|
1.0 |
|
1.4 |
| |
$ |
1.1 |
$ |
1.7 |
$ |
10.8 |
$ |
6.9 |
| Book-to-bill ratio(1) |
|
0.5 |
|
0.8 |
|
1.6 |
|
1.1 |
| (1) |
Ratio of new orders over revenues. |
| |
| |
| |
| Order backlog |
| |
|
As at |
| (in billions of dollars) |
September 30, 2014 |
December 31, 2013 |
| Rolling stock |
$ |
21.2 |
$ |
21.1 |
| Services |
|
9.6 |
|
7.4 |
| System and signalling |
|
3.7 |
|
3.9 |
| |
$ |
34.5 |
$ |
32.4 |
DIVIDENDS ON COMMON SHARES
Class A and Class B Shares
A quarterly dividend of $0.025 Cdn per share on Class A Shares (Multiple Voting) and of $0.025 Cdn per share on Class B Shares (Subordinate Voting) is payable on December 31, 2014 to the shareholders of record at the close of business on December 12, 2014.
Holders of Class B Shares (Subordinate Voting) of record at the close of business on December 12, 2014 also have a right to a priority quarterly dividend of $0.000390625 Cdn per share.
DIVIDENDS ON PREFERRED SHARES
Series 2 Preferred Shares
A monthly dividend of $0.0625 Cdn per share on Series 2 Preferred Shares was paid on August 15, September 15 and October 15, 2014.
Series 3 Preferred Shares
A quarterly dividend of $0.195875 Cdn per share on Series 3 Preferred Shares is payable on October 31, 2014 to the shareholders of record at the close of business on October 17, 2014.
Series 4 Preferred Shares
A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred Shares is payable on October 31, 2014 to the shareholders of record at the close of business on October 17, 2014.
About Bombardier
Bombardier is the world's only manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.
Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability World and North America indexes. In the fiscal year ended December 31, 2013, we posted revenues of $18.2 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
Bombardier, Bombardier Vision, Challenger, Challenger 605, Challenger 650, CS100, CS300, CSeries andThe Evolution of Mobility are trademarks of Bombardier Inc. or its subsidiaries.
The Management's Discussion and Analysis and the interim consolidated financial statements are available at ir.bombardier.com.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, guidance, targets, goals, priorities, our market and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; our competitive position; and the expected impact of the legislative and regulatory environment and legal proceedings on our business and operations. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "plan", "foresee", "believe", "continue", "maintain" or "align", the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require us to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. While we consider our assumptions to be reasonable and appropriate based on information currently available, there is a risk that they may not be accurate. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release refer to the respective Guidance and forward-looking statements sections in Overview, Bombardier Aerospace and Bombardier Transportation sections in the Management's Discussion and Analysis ("MD&A") in the Corporation's financial report for the fiscal year ended December 31, 2013.
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include risks associated with general economic conditions, risks associated with our business environment (such as risks associated with the financial condition of the airline industry and rail industry, political instability and force majeure), operational risks (such as risks related to developing new products and services; fixed-price commitments and production and project execution; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; the environment; dependence on certain customers and suppliers; human resources), financing risks (such as risks related to liquidity and access to capital markets, retirement benefit plan risk, exposure to credit risk, certain restrictive debt covenants, financing support provided for the benefit of certain customers and reliance on government support) and market risks (such as risks related to foreign currency fluctuations, changing interest rates, decreases in residual values and increases in commodity prices). For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation's financial report for the fiscal year ended December 31, 2013. Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statements set forth herein reflect our expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
CAUTION REGARDING NON-GAAP MEASURES
This press release is based on reported earnings in accordance with International Financial Reporting Standards (IFRS). Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, EBIT and EBITDA before special items, adjusted net income, adjusted earnings per share and free cash flow. These non-GAAP measures are mainly derived from the interim consolidated financial statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our financial reports with enhanced understanding of our results and related trends and increases transparency and clarity into the core results of our business. Refer to the Non-GAAP financial measures and Liquidity and capital resources sections in Overview and Analysis of results sections in Aerospace and Transportation in the Corporation's MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.