Discovery Air Inc. Announces Results for the Quarter and Year Ended January 31, 2016

TORONTO, April 28, 2016 /CNW/ - Discovery Air Inc. (the "Corporation") announced its financial and operating results for the quarter and year ended January 31, 2016.  The audited 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 January 31


Years ended January 31

(thousands of Canadian dollars, except per share amounts)


2016


2015


% change


2016


2015


% change


















Results of continuing operations

















Revenue


$

29,904


$

27,167


10%


$

182,181


$

163,242


12%


EBITDA*


$

(6,394)


$

(6,849)


7%


$

26,652


$

15,853


68%


Loss


$

(13,854)


$

(14,246)


3%


$

(14,827)


$

(18,367)


19%


Basic and diluted income (loss) per share


$

(0.17)


$

(0.41)


59%


$

(0.19)


$

(0.57)


67%



















Cash provided by (used in) operations


$

10,886


$

5,750


89%


$

12,814


$

(255)




Working Capital*










$

41,689


$

38,968


7%


















Results of discontinued operations

















Revenue


$

5,732


$

7,156


-20%


$

18,391


$

27,538


-33%


Profit (loss)


$

989


$

(938)




$

(1,184)


$

(514)


-130%


Basic and diluted income (loss) per share


$

0.01


$

(0.03)




$

(0.02)


$

(0.02)


0%


Cash provided by operations


$

1,852


$

6,001


-69%


$

1,179


$

5,405


-78%


















* See "Non-IFRS measures" below










 

Financial Highlights

  • Consolidated revenues for the three months ended January 31, 2016 ("Current Quarter") increased 10%, in comparison to the three months ended January 31, 2015. The Aviation segment experienced increased revenue (a 10% increase from the comparative period) primarily due to increased activity in Northern Canada and increased airborne training in Canada and Germany. 

  • Consolidated revenues for the year ended January 31, 2016 ("Year-to-date") increased 12%, in comparison to the year ended January 31, 2015. The Aviation segment experienced increased revenue (a 12% increase from the comparative period) primarily due to increased forest fire suppression operations in North and South America, increased airborne training in Canada and Germany, partially offset by a decline in resource industry activity.

  • EBITDA for the Current Quarter improved $0.5 million in comparison to the same period in the prior year, primarily due to increased revenue.

      
  • Year-to-date EBITDA increased $10.8 million in comparison to the same period in the prior year, primarily due to increased revenue coupled with continuous emphasis on operational efficiencies.

  • Loss for the Current Quarter was $13.9 million compared to $14.2 million for the same period in the prior year. The variance was mainly attributable to increased EBITDA.

  • Year-to-date loss was $14.8 million compared to $18.4 million for the same period in the prior year. The variance was mainly attributable to increased EBITDA of $10.8 million partially offset by a $4.1 million increase in losses on equipment and a $2.6 million reduction in income tax recovery, as compared to the comparative period.

"The fourth quarter results were significantly improved over the prior year "reported Jacob (Koby) Shavit, the Corporation's President and Chief Executive Officer. "During the year the Corporation continued to streamline its services in currently depressed industries like the Resources sector with a continued emphasis on cost containment efforts.  At the same time, the Corporation worked diligently and seized opportunities to improve revenues in other core services, resulting in improved EBITDA for the quarter and year-to-date."

"As we enter a new fiscal year the Corporation will continue to look for operating efficiencies in our traditional markets while targeting and being focused on specific growth opportunities."

Recent Developments

  • In April 2015, Fire Services renewed its fire services contract with the Ontario Ministry of Natural Resources and Forestry for a period of seven years.

  • In May 2015, GSH was awarded a seven year contract, with a three year renewal option, with Pacific Pilotage Authority ("PPA"). GSH has commenced providing helicopter services for the PPA's marine pilot transfers on the west coast of Canada as part of this award.

  • In May 2015, the Corporation renewed its operating line of credit.

  • In January 2016, the Corporation sold substantially all the non-financial assets of Discovery Air Technical Services Inc. For the year ended January 31, 2016 the Corporation has classified the results as discontinued operations. 

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 year ended January 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 audited consolidated financial statements and MD&A for the year ended January 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 audited consolidated financial statements and MD&A for the year ended January 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. The EBITDA margin is EBITDA as a percentage of revenue. 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. "Adjusted profit (loss)" is net profit (loss) attributable to shareholders of the Corporation excluding non-recurring gain on extinguishment of debt, gains and losses on disposal of property and equipment, gains on acquisitions and disposals, and gains and losses resulting from the change in fair value of financial liabilities and impairment loss, net of taxes. "Working Capital" is current assets less current liabilities excluding current portion of loans and borrowings and operating line of credit. 

SOURCE Discovery Air Inc.

For further information: Sheila Venman, VP Human Resources & Communications, sheila.venman@discoveryair.com, 1-866-903-3247

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