Non-GAAP Financial Measures:
This earnings release includes non-GAAP financial measures, segment earnings before interest, taxes, depreciation, amortization and aircraft lease rent and associated costs ("segment EBITDAR (adjusted)") referred to above as EBITDAR and earnings before interest, taxes, depreciation and amortization ("EBITDA") that are not required by, or presented in accordance with GAAP. These non-GAAP measures are not performance measures under U.S. generally accepted accounting principles and should not be considered as alternatives to net earnings (loss) or any other performance or liquidity measures derived in accordance with GAAP. In addition, these measures may not be comparable to similarly titled measures of other companies. CHC has provided a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure. CHC has chosen to include segment EBITDAR (adjusted) as we consider this to be a significant indicator of our financial performance and use this measure to assist us in allocating available capital resources. We have also included EBITDA as this measure is useful to our debt holders as it is a proxy of Adjusted EBITDA, a non-GAAP measure. Adjusted EBITDA provides useful information to investors as it is a measure to calculate certain financial covenants related to our revolving credit facility and certain covenants in the indenture. CHC has provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure below and has presented a detailed discussion of its reasons for including non-GAAP financial measures and the limitations associated with those measures as part of the "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained in the Quarterly Report on Form 10-Q. CHC encourages investors to review the reconciliation and the non-GAAP discussion in conjunction with our presentation of these non-GAAP financial measures.
Reconciliation of Non-GAAP Financial Measures(U.S.$ in thousands)---------------------------------------------------------------------------- For the three months ended For the six months ended October 31, October 31, ---------------------------------------------------- 2012 2011 2012 2011 ---------------------------------------------------- Helicopter Services $ 120,931 $ 107,000 $ 223,554 $ 202,688 MRO 28,082 18,935 41,746 39,949 Corporate and Other (22,916) (18,473) (38,304) (35,106) ----------------------------------------------------Consolidated EBITDAR 126,097 107,462 226,996 207,531Less: aircraft lease and associated costs (48,797) (42,604) (97,227) (83,100) ----------------------------------------------------Consolidated EBITDA 77,300 64,858 129,769 124,431 Amortization (27,635) (25,429) (55,945) (52,532) Restructuring costs (1,797) (7,080) (3,727) (11,884) Recovery (impairment) of receivables and funded residual value guarantees 143 63 (572) 47 Impairment of intangible assets (6,339) (1,717) (5,818) (1,825) Impairment of assets held for sale (3,650) (4,251) (9,297) (11,632) Impairment of assets held for use - - (660) - Gain (loss) on disposal of assets (3,026) (316) (4,617) 3,741----------------------------------------------------------------------------Operating income 34,996 26,128 49,133 50,346Interest on long-term debt (30,075) (29,516) (59,958) (60,186)Foreign exchange gain 10,562 2,446 3,161 2,639Other financing charges (3,449) (6,491) (11,603) (6,235)----------------------------------------------------------------------------Income (loss) from continuing operations before tax 12,034 (7,433) (19,267) (13,436)Income tax recovery (expense) (5,022) 8,638 (6,303) 12,485----------------------------------------------------------------------------Income (loss) from continuing operations 7,012 1,205 (25,570) (951)Earnings (loss) from discontinued operations, net of tax 467 (7,526) 812 (8,312)----------------------------------------------------------------------------Net earnings (loss) $ 7,479 $ (6,321) $ (24,758) $ (9,263)--------------------------------------------------------------------------------------------------------------------------------------------------------
Cautionary Note on Forward-Looking Statements:
This press release contains forward-looking statements and information within the meaning of certain securities laws, including the "safe harbor" provision of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. All statements, other than statements of historical fact included in this presentation, regarding our strategy, future operations, projections, conclusions, forecasts and other statements are "forward-looking statements". While these forward-looking statements represent our best current judgment, the actual results could differ materially from the conclusions, forecasts or projections contained in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection in the forward-looking information contained herein. Such factors include, but are not limited to, the following: exchange rate fluctuations, industry exposure, inflation, inability to enter into new contracts or the loss of existing contracts, inability to maintain government issued licenses, inability to obtain necessary aircraft or insurance, competition, political, economic and regulatory uncertainty, loss of key personnel, work stoppages due to labor disputes, accidents, mechanical failures, regulatory actions and future material acquisitions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. The Company disclaims any intentions or obligations to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Please refer to our annual report on Form 10-K, our quarterly reports on Form 10-Q, and other filings, in particular any discussion of risk factors or forward-looking statements, which are filed with the SEC and available at the SEC's website (www.sec.gov), for a full discussion of the risks and other factors that may impact any estimates or forward-looking statements made herein.
Contacts:
CHC Helicopter
Shirley Zhou
Director, Investor Relations
Direct: +1.604.279.2461 or Mobile: +1.778.999.2771
Shirley.Zhou@chc.ca
www.chc.ca
