TORONTO, Dec. 8, 2016 /CNW/ - Discovery Air Inc. (the
"Corporation") announced its financial and operating results for the quarter ended October 31,
2016. The unaudited interim consolidated financial statements and management discussion and analysis ("MD&A") will
be available on SEDAR at www.sedar.com and on the
Corporation's website at www.discoveryair.com.
|
|
|
|
|
Selected Financial Information
|
Three months ended October 31
|
|
Nine months ended October 31
|
|
(thousands of Canadian dollars, except per share
amounts)
|
|
2016
|
|
|
2015
|
|
% change
|
|
|
2016
|
|
|
2015
|
|
% change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of continuing operations*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
42,915
|
|
$
|
54,836
|
|
-22%
|
|
$
|
139,098
|
|
$
|
152,508
|
|
-9%
|
|
EBITDA**
|
$
|
6,190
|
|
$
|
13,176
|
|
-53%
|
|
$
|
25,157
|
|
$
|
33,163
|
|
-24%
|
|
Income (loss)
|
$
|
(3,897)
|
|
$
|
1,716
|
|
|
|
$
|
(5,865)
|
|
$
|
(1,428)
|
|
-311%
|
|
Basic and diluted income (loss) per share
|
$
|
(0.05)
|
|
$
|
0.02
|
|
|
|
$
|
(0.07)
|
|
$
|
(0.02)
|
|
-250%
|
|
Cash provided by operations
|
$
|
9,585
|
|
$
|
6,389
|
|
50%
|
|
$
|
6,738
|
|
$
|
6,720
|
|
0%
|
|
Working Capital**
|
$
|
67,225
|
|
$
|
64,071
|
|
5%
|
|
$
|
67,225
|
|
$
|
64,071
|
|
5%
|
|
|
* The results have been presented to show continuing operations for all
periods. This excludes discontinued operations of Discovery Air Technical Services Inc.
|
|
** See "Non-IFRS measures" below
|
Financial Highlights
- Consolidated revenues for the three months ended October 31, 2016 ("Current Quarter")
decreased 22%, in comparison to the three months ended October 31, 2015 ("Comparative
Period") due to decreased fire suppression activity across Canada and timing related
variances in airborne training services.
- EBITDA for the Current Quarter decreased by 53% in comparison to the same period in the prior year, primarily due to
decreased revenue.
- Loss for the Current Quarter was $3.9 million compared to Income of $1.7
million for the Comparative Period. The variance was mainly attributable to decreased EBITDA and increased losses on
disposal of assets in the Current Quarter.
- Consolidated revenues for the nine months ended October 31, 2016 ("Year-to-date")
decreased 9%, in comparison to the nine months ended October 31, 2015 ("Year-to-date Comparative
Period") primarily due to decreased fire suppression activity.
- Year-to-date EBITDA decreased by 24% in comparison to the same period in the prior year, primarily due to decreased
revenue.
- Year-to-date loss was $5.9 million compared to $1.4 million for
the Year-to-date Comparative Period. The variance was mainly attributable to losses in the Comparative period, partially offset
by decreased EBITDA in the Current Quarter.
"Third quarter revenues were lower than planned" reported Jacob (Koby) Shavit, the Corporation's
President and Chief Executive Officer. "The continuous severe downturn in the oil and gas and mining industries coupled with a very
short firefighting season and the shift in the timing of airborne training deployments, has resulted in lower revenues than the
prior year. At the same time, a continued rigorous emphasis on cost containment measures has mitigated the impact of
declining revenues on the bottom line. We continue to remain very focused on specific growth opportunities, while undertaking these
long term organizational cost containment initiatives."
Recent Developments
- On September 8, 2016, the Corporation entered into a definitive agreement with MAG Aerospace
Corp., and certain of its subsidiaries and with certain Clairvest Group Inc. affiliates to sell 100% of its shares in Fire
Services for $15.4 million (subject to certain post-closing purchase price adjustments and Canadian
Transport Agency approval).
Forward-Looking Statements
Forward-looking information and statements are included in this earnings release. Please refer to the statement regarding
forward-looking statements contained in the Corporation's MD&A for the quarter ended October 31,
2016, which are incorporated herein by reference. That statement provides an explanation as to what forward-looking
statements are, and the specific factors, uncertainties and potential events that the Corporation has identified for the attention
of readers. When relying on forward-looking information and statements to make decisions, investors and others should
carefully consider these factors and other uncertainties and potential events.
The Corporation's unaudited interim consolidated financial statements and MD&A for the quarter ended October 31, 2016, have been filed concurrently and are available on the Corporation's website at www.discoveryair.com and on SEDAR at www.sedar.com. The reader is encouraged to review the unaudited interim
consolidated financial statements and MD&A for the quarter ended October 31, 2016 for more
complete disclosure on the Corporation's financial condition and results of operations.
The Corporation's Class A common voting shares and unsecured convertible debentures trade on the Toronto Stock Exchange under
the symbols DA.A and DA.DB.A, respectively.
Non-IFRS Measures
References to "EBITDA" are to net profit (loss) before finance costs, income taxes, depreciation of property and
equipment and intangible assets, gains and losses on disposal of assets and extinguishment of debt, gains on acquisition and
disposals, impairment losses, and gains and losses resulting from the change in fair value of financial liabilities. Management
believes EBITDA to be an important metric in measuring the performance of the Corporation's day-to-day operations. This measurement
is useful in assessing the Corporation's ability to service debt and to meet other payment obligations, and as a basis for
valuation. "Working Capital" is current assets less current liabilities excluding current portion of loans and
borrowings and operating line of credit.
SOURCE Discovery Air Inc.
