Revenue of $54.2 million, versus $62.5 million last year, reflecting the
end of the Ornge contract
EBITDA margin at 23.6% compared to 23.4% a year ago
Net income of $6.5 million or $0.50 per share
Strong financial position with working capital of $46.4 million and
long-term debt-to-equity ratio of 0.21
Credit facility of $125 million extended to January 31, 2017 with option
to be increased to $175 million
MONTREAL, May 14, 2013 /CNW Telbec/ - HNZ Group Inc. (TSX: HNZ.A, HNZ.B)
("the Corporation"), an international provider of helicopter
transportation and related support services, today announced its
financial and operating results for the first quarter ended March 31,
Quarters ended March 31,
(in thousands of dollars, except per share data)
Net income (2)
Per share - basic and diluted ($)
Cash flows related to operating activities (3)
Weighted-average shares outstanding (all classes)
Net income before net financing charges, income taxes, depreciation and
amortization and gain or loss on
disposal of property, plant and equipment
Attributable to the shareholders of the Corporation
Before net changes in non-cash working capital balances and deferred
FIRST QUARTER RESULTS
The Corporation generated revenue of $54.2 million, compared with
revenue of $62.5 million in the first quarter of 2012. This net
decrease is mainly due to the completion of the Ornge contract in the
first quarter of 2012 and a decrease in revenues from the northern and
southern hemisphere markets due to the current challenging economy. The
contracts in Afghanistan, in aggregate, are experiencing a level of
activity not significantly different from those anticipated and
previously announced. For the quarter, the Corporation flew 9,272 hours
compared to 12,544 hours in the first quarter of 2012.
Visual Flight Rules (VFR) revenue decreased by $3.4 million primarily
due to a decrease in revenues from the Canadian and Australian markets.
Instrument Flight Rules (IFR) revenue declined by $4.1 million mainly
due to the completion of the EMS contract with Ornge in Ontario in
March 2012 partially offset by the increase in mining revenues in
Australia. Ancillary revenue, including the Contracted Flying Training
and Support contract with the Canadian military, decreased by $0.8
million due to a reduction of aircraft lease revenue in its southern
EBITDA for the first quarter of 2013 reached $12.8 million, versus $14.6
million a year earlier. The EBITDA decline is primarily attributable to
lower revenues experienced in 2013 while maintaining the same overall
As a result, net income attributable to the shareholders of the
Corporation amounted to $6.5 million, or $0.50 per share, compared with
$8.2 million, or $0.63 per share in the first quarter of 2012.
Reflecting the variation in net income, cash flows related to operating
activities before net change in non-cash working capital balances and
deferred revenues were $11.4 million in the first quarter of 2013,
versus $12.2 million in the corresponding period a year earlier.
"We are pleased with HNZ's performance during the quarter, in view of
the termination and non-renewal of some large contracts as well as
challenging economic conditions," said Don Wall, President and CEO of
the Corporation. "The seasonal weak first quarter in the northern
hemisphere was partially compensated for in the southern hemisphere.
For example, on a year-over-year basis we experienced less demand for
our firefighting services."
As at March 31, 2013, the Corporation's financial position remains
strong with working capital of $46.4 million and debt, net of cash and
cash equivalents and bank indebtedness, of $45.5 million, with $53
million drawn under the Corporation revolving operating credit facility
of $125 million. The credit facility maturity has been extended from
January 31, 2014 to January 31, 2017.The Corporation also has an option
to increase the credit facility to $175 million subject to certain
conditions. For the first quarter, the long-term debt-to-equity ratio
was 0.21, compared to 0.23 a year ago.
"The effort to align expenses with revenues, and maximize margins given
the business we have, will always be a priority at HNZ. One of the
principal strengths of our Company has been its ability to adapt to
changing circumstances in the marketplace. In the year ahead, we will
stay focused on network optimization and sharing of best practices,"
concluded Mr. Wall.
The Corporation will hold a conference call to discuss these results on
May 15, 2013 at 2:30 PM (ET). Interested parties can join the call by
dialing 514-807-9895 (Montreal) or 1-888-231-8191 (toll free). If you
are unable to call at this time, you may access a tape recording of the
conference call by dialing 416-849-0833 (Toronto), 514-807-9274
(Montreal), or 1-855-859-2056 (toll free) followed by access code:
65162419. This tape recording will be available until May 16, 2013.
ABOUT HNZ GROUP INC.
The Corporation is an international provider of helicopter
transportation and related support services with operations in Canada,
Australia, New Zealand, Afghanistan, Antarctica and Southeast Asia. The
Corporation operates in excess of 130 helicopters in support of a range
of multinational companies and government agencies, including onshore
and offshore oil and gas, mineral exploration, military support, hydro
and utilities, forest management, construction, air ambulance and
search and rescue. In addition to charter services, the Corporation
provides flight training and third-party repair and maintenance
services. The Corporation is headquartered near Montreal, Canada and
employs approximately 800 personnel from 35 locations around the world.
The Corporation operates from fixed-base locations as well as from
temporary locations, commonly referred to as "pool locations", and
provides helicopters in a wide variety of climatic conditions and
terrain across Canada, Australia, New Zealand Afghanistan, Antarctica
and Southeast Asia.
Certain statements in this press release may
constitute "forward-looking" statements which involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Corporation, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Examples of such statements include, but
are not limited to, statements regarding the HNZ Global acquisition,
the integration of HNZ Global and the realization of expected
synergies, the financial position, results of operations, objectives,
dividend policy, participation in bidding processes, continuing
business relationship with actual or potential key clients (in
particular USTRANSCOM in Afghanistan, Rio Tinto and Shell), expected
revenues from contracts with key clients, seasonal levels of activity,
maintenance of contractual relationships, impact of any economic
uncertainty, expected competition, use of available funds, maintenance
of strategic relationships with aboriginal groups and regulations (in
particular environmental and transportation regulations) and
legislation (including tax legislation) applicable to the Corporation.
Although the forward-looking statements contained in this press release
are based upon what management of the Corporation believes are
reasonable assumptions, the Corporation cannot assure investors that
actual results will be consistent with these forward-looking
statements. The assumptions on which the forward-looking statements are
based include, but are not limited to, general economic trends,
industry trends, current contractual and business relationships,
capital markets and current competitive, governmental, regulatory and
These statements are not based on historical facts but instead reflect
current expectations of management regarding future events and
operating performance and speak only as of the date of this press
release. Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future performance
or results, and will not necessarily be accurate indications of whether
or not such results will be achieved. A number of factors could cause
actual results to differ materially from the results discussed in the
forward-looking statements, including, but not limited to, the factors
discussed in this press release or referred to under "Risk Factors".
These forward-looking statements are made as of the date of this press
release, and the Corporation assumes no obligation to update or revise
them to reflect new events or circumstances, unless required by
DEFINITION OF NON-IFRS MEASURES: EBITDA
References to "EBITDA" are to net income before net financing charges,
income taxes, depreciation and amortization, gain or loss on disposal
of property, plant and equipment and change in fair value of the
obligation to purchase the shares of non-controlling interests. Since
EBITDA is a metric used by many investors to compare issuers on the
basis of the ability to generate cash from operations, management
believes that in addition to net income or loss, EBITDA is a useful
EBITDA is not an earnings measure recognized under IFRS and does not
have a standardized meaning prescribed by IFRS. Therefore, EBITDA may
not be comparable with similar measures presented by other entities.
Investors are cautioned that EBITDA should not be construed as an
alternative to net income determined in accordance with IFRS as an
indicator of the Corporation's performance, or to cash flows from
operating, investing and financing activities as measures of liquidity
and cash flows.
Note to readers: Complete consolidated financial statements and Management's Discussion &
Analysis of Operating Results and Financial Position are available on
the Corporation's website at www.hnz.com and on SEDAR at www.sedar.com.
SOURCE: HNZ Group Inc.
For further information:
HNZ Group Inc.
President and Chief Executive Officer