YELLOWKNIFE, NT, April 23, 2013 /CNW/ - Discovery Air Inc. (the "Corporation"), announced its financial and operating results for the year ended January 31, 2013. 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 Janaury 31||Year ended January 31|
|(thousands of dollars, except per share amounts)||2013||2012||% change||2013||2012||% change|
|Basic earnings per common share||$||(0.75)||$||(0.67)||12%||$||0.04||$||0.82||-95%|
|Diluted earnings per common share||$||(0.75)||$||(0.67)||12%||$||0.04||$||0.72||-94%|
|Adjusted Profit (loss)*||$||(11,547)||$||(11,583)||0%||$||342||$||3,849||-91%|
|Basic and diluted adjusted earnings per common share||$||(0.79)||$||(0.80)||-1%||$||0.02||$||0.27||-93%|
|Cash from operations||$||5,521||$||9,635||-43%||$||27,611||$||24,951||11%|
|* See "Non-IFRS measures" below|
- Revenues for the year ended January 31, 2013 ("Fiscal 2013"), increased by 20% to $229.4 million, with the Aviation segment and Corporate Support and Other segment reflecting an increase of 17% and 39% respectively over the comparative period. The Corporation realized incremental revenues from two rotary-wing operations acquired during the year, expansion of fleet size and increased maintenance, repair and overhaul ("MRO") activity. Increase in fleet capacity and MRO activity resulted in a 30% increase in fourth quarter revenues over the comparative period.
- Fiscal 2013 EBITDA decreased by 7% to $41.4 million. Decreased margins were attributable to lower than expected utilization on new aircraft, higher fixed-wing costs, and higher infrastructure and administrative costs to support expanded operations. EBITDA loss for the quarter increased to $6.8 million, compared to a $6.2 million loss in the same quarter last year reflecting the impact of unfavourable weather conditions and higher operating costs from expanded operations.
- Fiscal 2013 net profit was $0.6 million or $0.04 per share (basic and diluted) compared to $11.8 million or $0.82 per share ($0.72 diluted) in the comparative period. Fiscal 2013 profit was impacted by lower EBITDA ($3.0 million), higher depreciation ($1.8 million), and lower non-cash net gains ($9.9 million) offset by lower income tax expense ($3.4 million).
- Net loss for the current quarter was $10.9 million or $0.75 loss per share (basic and diluted) compared to $9.8 million or $0.67 loss per share (basic and diluted) for the same period last year. The fourth quarter is traditionally the Corporation's slowest season in revenue activity.
- Fiscal 2013 adjusted profit, which excludes the non-cash gains and losses, was $0.3 million or $0.02 per share (basic and diluted), compared to $3.8 million or $0.27 per share (basic and diluted) in the comparative period. The difference is primarily due to the $3.0 million shortfall in EBITDA for the year.
- Despite the lower earnings in Fiscal 2013, the Corporation was able to generate increased cash flow from operations, up $2.7 million or 11% over Fiscal 2012, due to lower interest paid and a reduction in working capital. The lower interest paid reflects the impact of lower interest rates on the recent financing transactions and a full year benefit of the non-cash interest expense from the secured convertible debentures.
Commenting on the financial results, Mr. Jacob (Koby) Shavit, the Corporation's recently appointed President and Chief Executive Officer of Discovery Air stated, "Four of our six businesses performed well. This was offset by operating challenges in our fixed wing business and our MRO business (in the first six months of the year). The fourth quarter, which is our seasonal low period, was also negatively impacted by poor weather conditions. Overall, the business generated strong top line results with lower than expected margins in Fiscal 2013."
"Management is focused on fixing the operational issues in our fixed wing business and bringing our technical services business to the point where it can deliver on its strategic and profit contribution objectives."
"The Corporation accomplished several revenue generating initiatives in Fiscal 2013, including the acquisition of two helicopter operations and securing a three year extension to June 2016 on the Standing Offer arrangements with the Government of Canada. To succeed, we will need to constantly develop new revenue sources both domestically and internationally, sustain our commitment to high quality and safe operations, and continually improve the efficiencies of our businesses. I am confident that the capabilities of our entire team can be utilized to make this happen."
A conference call with analysts and other interest parties to review results of the fourth quarter of fiscal 2013 will be held on Wednesday, April 24, 2013 at 10:00 a.m. (Eastern Time). The conference call may be attended by calling 1-888-231-8191. Please dial in 15 minutes prior to the call start time to secure a line. The conference call will be archived for replay approximately three hours following its conclusion on Discovery Air's website at www.discoveryair.com/investors.
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 Management's Discussion and Analysis for the year ended January 31, 2013, 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, 2013, 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 financial statements and MD&A for the year ended January 31, 2013 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.
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, impairment losses, and gains and losses resulting from the change in fair value of financial liabilities. Beginning February 1, 2012, the Corporation changed the definition of EBITDA and EBITDAR to exclude gains and losses on disposal of property. EBITDA for prior periods is restated to reflect this change. The EBITDA margin is EBITDA as a percentage of revenue. Management believes EBITDA is an important measure as it excludes the effects of items which primarily reflect the impact of long-term investment decisions from the results of the Corporation's day-to-day operations. "Adjusted profit (loss)" is net profit (loss) attributable to shareholders of Discovery Air Inc. excluding non-cash gain on extinguishment of debt gains and losses on disposal of property and equipment, gains on acquisitions, and gains and losses resulting from the change in fair value of financial liabilities and impairment loss, net of taxes. Management believes these measurements are useful in assessing the Corporation's ability to service debt and to meet other payment obligations, and as a basis for valuation.
SOURCE: Discovery Air Inc.
For further information:
Sheila Venman, Investor Relations