Discovery Air announces non-cash impairment charges affecting fiscal year 2014
TORONTO, April 24, 2014 /CNW/ - Discovery Air Inc. (DA.A) ("Discovery Air" or the "Corporation") announced today that it expects to take non-cash income statement charges in the fourth quarter of fiscal year 2014 of approximately $8.3 million ($6.3 million after tax). The impairment primarily relates to the realization of a $5.2 million loss on the disposal of five aircraft subsequent to year end; a $2.1 million impairment of goodwill and other intangible assets related to the Corporation's helicopter operations in Chile as a result of its annual intangible asset impairment assessment for each of its business units; and a $0.9 million impairment of other long-lived assets.
Taking these non-cash accounting charges into account, the Corporation expects its net loss for fiscal year 2014 to be in the range of $17 million to $18 million. The Corporation expects to release and file its financial results for fiscal year 2014 on May 1, 2014.
The Corporation does not expect these accounting charges to affect its ongoing business, financial performance or cash flows.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This news release includes forward-looking statements (as defined in applicable securities laws) regarding Discovery Air and/or its subsidiaries. Forward-looking statements by definition are based on assumptions and, as a result, are subject to risks and uncertainties. As a result of such risks and uncertainties, actual results may differ materially from those discussed in forward looking statements, and readers should not place undue reliance on such statements.
With respect to the matters described in this news release, specific risks include the risk that the accounting charges and net loss referenced herein may be larger once the Corporation's financial statements for fiscal year 2014 are finalized and/or that the disposal of the five aircraft may not be completed at the price indicated in this news release or at all.
Forward-looking statements represent expectations as of the date they are made, and Discovery Air disclaims any intention or obligation to update or revise any forward-looking statements it may make, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
ABOUT DISCOVERY AIR AND ITS SUBSIDIARIES
Discovery Air is a Canadian specialty aviation company operating over 160 aircraft with approximately 850 team members. Its subsidiaries provide airborne training to the Canadian military, helicopter operations, air ambulance services, airborne fire services, fixed-wing air charter services, expediting and logistics support, and a range of maintenance, repair, overhaul, modification, engineering and certification services.
Discovery Air's Class A common voting shares, unsecured convertible debentures and rights trade on the Toronto Stock Exchange (symbols DA.A, DA.DB.A and DA.RT, respectively).
SOURCE Discovery Air Inc.For further information: Sheila Venman, Investor Relations, email@example.com, (866) 903-3247