TORONTO, June 11, 2014 /CNW/ - Discovery Air Inc. (the "Corporation") announced its financial and operating results for the quarter ended April 30, 2014 ("Current Quarter"). The interim condensed 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 April 30|
(thousands of Canadian dollars, except per share amounts)
| $ 41,083 |
| $ (959)|
| $ (7,736)|
Basic and diluted loss per share
| $ (0.52)|
Adjusted profit (loss) *
| $ (7,748)|
Basic and diluted adjusted profit (loss) per share *
| $ (0.52)|
Cash from operations
| $ (10,102)|
Adjusted Working Capital*
| $ 39,774 |
* See "Non-IFRS measures" below
•Consolidated revenues decreased 6% for the Current Quarter
, in comparison to the three months ended April 30
, 2013. The decline was largely attributable to lower resourced-based activity in our primary markets.
•EBITDA loss for the Current Quarter
improved 56% in comparison to the same quarter in the prior year, stemming from improved fixed cost management. In particular, the fixed wing operation benefited from lower infrastructure cost associated with the cessation of the executive jet service in late Fiscal 2014.
•Loss for the Current Quarter
improved 12% to $7.7 million
basic and diluted loss per Share) compared to $8.8 million
basic and diluted loss per Share) in the same quarter in the prior year. The difference is largely attributable to improved EBITDA ($1.2 million
On April 28, 2014
, the Corporation completed the rights offering announced on February 24, 2014
raising approximately $1.7 million
in gross proceeds from the issuance of 1,952,009 Class A common voting shares. Subsequent to the quarter end, on May 2, 2014
, the Corporation issued a further 15,047,284 Class A common voting shares and 442,567 Class B common variable voting shares, for aggregate gross proceeds of $13.3 million
per Share) to certain of funds and co-investors of Clairvest Group Inc. ("Clairvest
") pursuant to a certain standby purchase agreement between the Corporation and Clairvest.
On March 31, 2014
, the Corporation entered into a loan agreement with Element Financial Corporation in the principal amount of $21.5 million
. The proceeds from the loan were used to refinance approximately $20.5 million
in existing term indebtedness.
Commenting on the financial results, Jacob (Koby) Shavit
, the Corporation's President and Chief Executive Officer stated, "Our recent equity raise and debt refinancing have improved our liquidity position, and more importantly, provided stability to support our growth opportunities in the international airborne training market. I am pleased with our progress in streamlining our operations without compromising the high level of service demanded by our customers. The improvement in EBITDA despite lower revenues highlights the results of the corporate wide mandate to streamline our operations. We also continue to assess our aircraft from a strategic and long term utilization perspective, which will result in recalibrating our fleet to support optimal growth and return on our assets.As we look ahead to our peak season, we remain vigilant in monitoring and reacting swiftly to changes in the demand for our services in resource-based markets we serve as well as the Canadian government's demand for our airborne training services. At the same time, we are applying a more focussed business development and sales effort with the objective of creating and winning new opportunities for our fleet." 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 April 30, 2014
, 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 condensed consolidated financial statements and MD&A for the quarter ended April 30, 2014
, 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 condensed consolidated financial statements and MD&A for the quarter ended April 30, 2014
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 Discovery Air Inc.
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. "Adjusted Working Capital
" is current assets less current liabilities excluding current portion of loans and borrowings and operating line of credit.
SOURCE Discovery Air Inc.