Q2 2021 Key Metrics
- Net income of $21.5 million, or
$0.12 per basic share; a
quarter-over-quarter decrease of $7.6
million primarily due to the continued impact of COVID-19 on
results related to off-lease aircraft, negotiated amendments to
certain lease agreements including extensions, the 2021 CPA
amendments and lower unrealized foreign exchange gains of
$10.7 million.
- Adjusted net income1 of $11.4
million, or $0.06 per basic
share; a decrease of $10.3 million
quarter-over-quarter primarily due to the previously noted impact
of COVID-19 on results and a reduction in earnings due to a lower
US dollar foreign exchange rate.
- Adjusted EBITDA1 of $76.9
million; a decrease of $14.2
million over second quarter 2020.
- Liquidity of $177.9 million.
- Collected approximately 67.0% of the Regional Aircraft Leasing
segment's lease revenue in the second quarter.
Recent Accomplishments
- Revised capacity purchase agreement ('CPA') with Air Canada,
enhancing Jazz's position as the exclusive Air Canada Express
operator of 70-78 seat regional capacity until the end of 2025 with
the addition of 25 Embraer 175s to the Covered Fleet, and is
currently the sole provider of Air Canada Express services.
- Completed a public offering and concurrent private placement
for gross proceeds of $145.1
million.
- Remarketed three Dash 8-400s to two new leasing customers, Sky
Alps of Italy (two aircraft) and
one Dash 8-400 to National Jet Express, a subsidiary of Australian
aviation operator, Cobham Aviation Services.
- Secured a three-year contract with Purolator for air cargo
charter services, executing on Chorus' growing capabilities in this
market segment.
- Awarded a three-year contract to upgrade and modify Transport
Canada's National Aerial Surveillance Program fleet of three Dash
8-100 and one Dash 7-100 aircraft with new surveillance
equipment.
- Awarded a new five-year contract to provide fixed-wing air
ambulance service for Ambulance New Brunswick further extending its
25-year relationship.
- Awarded, in partnership with General Dynamics Mission Systems –
Canada, an eight-year contract for
the in-service support of the Canadian Armed Forces manned airborne
intelligence surveillance and reconnaissance program.
- Executed long-term leases with Connect Airlines for two
off-lease Dash 8-400s, marking the successful placement of all Dash
8-400s repossessed in 2020 and reducing the number of off-lease
aircraft from 13 to eight.
HALIFAX, NS, Aug. 11, 2021 /CNW/ - Chorus Aviation Inc.
('Chorus') (TSX: CHR) today announced second quarter 2021
financial results.
"Our second quarter delivered net earnings of $0.12 per basic share or $0.06 on an adjusted basis. We are managing our
business well through these unprecedented times and continue to
report positive financial results. While our second quarter
earnings were negatively impacted by certain aircraft being
off-lease, negotiation of certain lease amendments including
extensions, the 2021 CPA amendments, and a lower US dollar exchange
rate, I am pleased with the progress made in reducing debt and the
stability we are seeing in lease rent collections," stated
Joe Randell, President and Chief
Executive Officer, Chorus Aviation Inc.
"On the leasing front, with the addition of Connect Airlines of
Boston as a new leasing customer,
we've now remarketed all of our off-lease Dash 8-400 aircraft. We
repossessed these aircraft in 2020 and reconfigured them for
return-to-service at our facilities in North Bay and Halifax. I'm proud of our team's collaborative
efforts in finding opportunities and delivering integrated
solutions to place these assets with new customers in this very
challenging environment.
"Our recent contract awards at Voyageur have expanded our reach
into cargo operations and special mission work in the aerospace and
defense sectors. Work under our new contract with Transport
Canada has begun and we anticipate beginning to generate revenue at
the end of the third quarter. Our new partnership with General
Dynamics Mission Systems – Canada
is in the initial stages as we prepare for the first aircraft
arrival scheduled in September with the expectation of being fully
operational by the third quarter of 2022.
"The transition of the E175s into the Air Canada Express fleet
is progressing very well, and we anticipate completing the
induction of these 25 aircraft by the end of this month. We're very
pleased to be recalling employees as regional flying resumes.
"Overall, I'm pleased with how we're navigating through this
ongoing crisis. We've created additional balance sheet flexibility
by significantly reducing our adjusted net debt, and we're
successfully remarketing off-lease aircraft by putting these assets
to good work with new customers," concluded Mr. Randell.
Liquidity
As of June 30, 2021, Chorus' liquidity was $177.9 million including cash of
$142.4 million and $35.5 million of available room on its
operating credit facility. Liquidity increased from the first
quarter of 2021 by $6.6 million due
to:
- positive cash flows from operations of $15.0 million;
- receipt of the net proceeds from the 2021 capital raise of
$138.1 million;
- increase in cash due to changes in both restricted cash and
security deposits and maintenance reserves of $18.8 million; offset by
- additions to property and equipment of $10.6 million primarily arising from investments
in the reconfiguration of off-lease and re-leased aircraft;
- debt repayments of $154.7 million
related to scheduled repayments of $49.1
million, early repayments of amortizing term loans on six
aircraft totaling $71.7 million and
the repayment of all deferred amounts owing under aircraft loans
with its largest lender in the amount of $33.9 million.
Repayment under these secured debt facilities brought the
carrying value of Regional Aircraft Leasing segment's ('RAL') nine
unencumbered aircraft to approximately $140.0 million (US $110.0
million).
At June 30, 2021, the Controllable
Cost Guardrail receivable was $10.2
million over the agreed cap of $20.0
million and was paid in July
2021 in accordance with the 2021 CPA Amendments.
Second Quarter Summary
In the second quarter of 2021, Chorus reported adjusted EBITDA
of $76.9 million, a decrease of
$14.2 million relative to the second
quarter of 2020.
The RAL segment's adjusted EBITDA decreased by $9.4 million primarily due to lower lease revenue
attributable to the continued impact of COVID-19 on results related
to off-lease aircraft, negotiated amendments to certain lease
agreements including extensions, and lower earnings due to a lower
US dollar exchange rate partially offset by additional aircraft
earning lease revenue.
The Regional Aviation Services ('RAS') segment's adjusted EBITDA
decreased by $4.8 million. The second
quarter results were impacted by:
- a decrease in Fixed Margin of $2.4
million in accordance with the CPA;
- a decrease in capitalization of major maintenance overhauls on
owned Covered Aircraft operated under the CPA of $0.5 million; and
- an increase in general administrative expenses; offset by
- an increase in other revenue due to an increase in third-party
maintenance, repair and overhaul ('MRO') activity and contract
flying; and
- an increase in aircraft leasing revenue under the CPA of
$0.3 million primarily due to nine
incremental CRJ900s offset by the removal of the Dash 8-300 fleet
and lower earnings of $3.7 million
due to a lower US dollar exchange rate.
Adjusted net income was $11.4
million for the quarter, a decrease of $10.3 million due to:
- a $14.2 million decrease in
adjusted EBITDA as previously described;
- an increase in net interest costs of $2.6 million primarily related to the 6.00%
Unsecured Convertible Debentures issued in April 2021 and increased indebtedness under
credit facilities added in the second quarter of 2020; and
- a $1.4 million increase in
adjusted income tax expense; offset by
- a decrease in depreciation expense of $3.7 million;
- a decrease of $2.2 million in
realized foreign exchange and unrealized foreign exchange losses on
working capital; and
- an increase in gain on property and equipment of $2.1 million.
Net income decreased $7.6 million
over the prior period due to:
- the previously noted decrease in adjusted net income of
$10.3 million;
- a reduction in net unrealized foreign exchange gains on
long-term debt of $10.7 million;
and
- a decrease in income tax recoveries on adjusted items of
$3.0 million; offset by
- a decrease in impairment provisions of $9.5 million in the RAL segment;
- a reduction in net lease repossession costs of $5.3 million;
- a reduction to the one-time restructuring costs related to the
2021 CPA Amendments of $1.1 million;
and
- decreased employee separation program costs of $0.4 million.
Year-to-date Summary
Chorus reported adjusted EBITDA of $160.9
million for 2021, a decrease of $18.7
million relative to the same prior year period.
The RAL segment's adjusted EBITDA decreased by $18.9 million primarily due to lower lease
revenue attributable to the continued impact of COVID-19 on results
related to off-lease aircraft, negotiated amendments to certain
lease agreements including extensions, an increase in the expected
credit loss provision of $3.4 million
and lower earnings due to a lower US dollar exchange rate partially
offset by additional aircraft earning lease revenue.
The RAS segment's adjusted EBITDA was consistent with the same
period last year. The period-over-period results were impacted
by:
- a decrease in stock-based compensation of $7.0 million due to a decrease in the Share price
inclusive of the change in fair value of the Total Return
Swap;
- an increase in aircraft leasing revenue under the CPA of
$2.7 million primarily due to nine
incremental CRJ900s, partially offset by the removal of the Dash
8-300 fleet and lower earnings of $5.5
million due to a lower US dollar exchange rate;
- an increase in other revenue due to an increase in third-party
MRO activity and contract flying; offset by
- an increase in general administrative expenses;
- a decrease in Fixed Margin of $4.8
million in accordance with the CPA; and
- a decrease in capitalization of major maintenance overhauls on
owned Covered Aircraft operated under the CPA of $3.0 million.
Adjusted net income was $27.1
million year-to-date, a decrease over 2020 of $18.3 million due to:
- a $18.7 million decrease in
adjusted EBITDA as previously described; and
- an increase in net interest costs of $7.3 million primarily related to the 6.00%
Unsecured Convertible Debentures issued in April 2021, increased indebtedness under credit
facilities added in the second quarter of 2020 and additional debt
related to aircraft purchased since the second quarter of 2020;
offset by
- a decrease in depreciation expense of $4.0 million;
- an increase in gain on property and equipment of $2.1 million;
- a decrease of $1.0 million in
realized foreign exchange and unrealized foreign exchange losses on
working capital; and
- a $0.6 million decrease in
adjusted income tax expense.
Net income decreased by $28.4
million over the prior period due to:
- the previously noted decrease in adjusted net income of
$18.3 million;
- one-time restructuring costs related to the 2021 CPA Amendments
of $80.7 million; and
- an increase in net lease repossession costs of $1.8 million; offset by
- a change in net unrealized foreign exchange on long-term debt
of $34.8 million;
- an increase in income tax recoveries on adjusted items of
$18.3 million;
- a decrease in impairment provisions of $15.5 million in the RAL segment; and
- decreased employee separation program costs of $3.8 million, exclusive of the cost attributable
to the pilot early retirement program.
Consolidated Financial Analysis
(unaudited) (expressed in thousands of Canadian
dollars)
|
Three months ended
June 30,
|
Six months ended
June 30,
|
2021
|
2020
|
Change
|
Change
|
2021
|
2020
|
Change
|
Change
|
$
|
$
|
$
|
%
|
$
|
$
|
$
|
%
|
|
|
|
|
|
|
|
|
|
Operating
revenue
|
199,873
|
184,006
|
15,867
|
8.6
|
402,360
|
533,937
|
(131,577)
|
(24.6)
|
Operating
expenses
|
160,460
|
150,323
|
10,137
|
6.7
|
399,843
|
453,562
|
(53,719)
|
(11.8)
|
|
|
|
|
|
|
|
|
|
Operating
income
|
39,413
|
33,683
|
5,730
|
17.0
|
2,517
|
80,375
|
(77,858)
|
(96.9)
|
Net interest
expense
|
(24,017)
|
(21,368)
|
(2,649)
|
(12.4)
|
(48,873)
|
(41,575)
|
(7,298)
|
(17.6)
|
Foreign exchange gain
(loss)
|
10,018
|
18,467
|
(8,449)
|
(45.8)
|
14,772
|
(20,965)
|
35,737
|
170.5
|
Gain (loss) on
property and equipment
|
1,716
|
(390)
|
2,106
|
540.0
|
1,716
|
(374)
|
2,090
|
558.8
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income tax
|
27,130
|
30,392
|
(3,262)
|
(10.7)
|
(29,868)
|
17,461
|
(47,329)
|
271.1
|
Income tax (expense)
recovery
|
(5,613)
|
(1,227)
|
(4,386)
|
(357.5)
|
13,306
|
(5,590)
|
18,896
|
338.0
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
21,517
|
29,165
|
(7,648)
|
(26.2)
|
(16,562)
|
11,871
|
(28,433)
|
239.5
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
76,855
|
91,042
|
(14,187)
|
(15.6)
|
160,896
|
179,622
|
(18,726)
|
(10.4)
|
Adjusted
EBT(1)
|
17,042
|
25,914
|
(8,872)
|
(34.2)
|
36,172
|
55,152
|
(18,980)
|
(34.4)
|
Adjusted net
income(1)
|
11,380
|
21,644
|
(10,264)
|
(47.4)
|
27,124
|
45,465
|
(18,341)
|
(40.3)
|
|
|
(1)
|
These are non-GAAP
financial measures.
|
Outlook
(See cautionary statement regarding
forward-looking information below)
The COVID-19 pandemic and resulting government restrictions have
created unprecedented challenges for the passenger aviation
industry around the world. Although Chorus' business model does not
directly expose it to the market risks ordinarily faced by
airlines, substantially all its source revenue is derived from
airline customers, through its CPA and its leasing of aircraft to
airline customers globally. The full extent of the duration and
therefore the impact of this pandemic are unknown. Chorus continues
to work with its leasing customers to help them manage the economic
pressures they are facing as a consequence of the sustained
reduction in demand for passenger air travel.
Regional Aviation Services:
Jazz earns a Fixed Margin under the CPA based on the number of
Covered Aircraft, subject to a minimum of $65.6 million for 2021. The Fixed Margin does not
vary based on flight activity.
In the second quarter of 2021, Jazz operated at approximately
22% of its second quarter 2019 (pre-COVID-19) flying levels. Jazz
expects to operate between approximately 55% to 65% of its third
quarter 2019 (pre-COVID-19) flying levels. Provided vaccination
numbers in Canada increase and the
spread of COVID-19 subsides, Jazz's flying is expected to increase
in the second half of the year. With the expected increase in
flying, Jazz started to recall some of its front-line and
administrative employees and will continue to do so as operations
increase.
Chorus estimates the carrying value of its 19 owned Dash 8-300s,
removed from the Covered Aircraft fleet in accordance with the 2021
CPA Amendments, to be approximately $65.0
million. Chorus can sell, lease, part-out, or convert these
aircraft for cargo operations.
On August 4, 2021, Jazz entered an
annuity purchase transaction for its defined benefit pension plan
for pilots in the amount of $67.4
million thereby reducing the pension assets and liabilities
by $67.4 million or approximately
10%. This transaction reduces the future pension liability growth
and the funding volatility risk.
Voyageur continues to perform overseas humanitarian flights and
cargo services, and the air ambulance operation in New Brunswick. Voyageur's contract flying,
charter sales and MRO services revenues improved over the first
quarter of 2021. The momentum is expected to be sustained with the
impact of the new long-term contracts which will begin to
positively impact Voyageur's earnings throughout the second half of
2021 and beyond. Voyageur represents less than 10% of Chorus'
consolidated revenue and net income.
Regional Aircraft Leasing:
Chorus Aviation Capital ('CAC') has received requests from
substantially all of its RAL segment customers for some form of
temporary rent relief as they cope with an unprecedented reduction
in demand for passenger air travel. In connection with the
rent relief arrangements, that include lease term extensions,
the repayment terms vary but typically coincide with the lease
term extensions. CAC's gross lease receivable was $70.3 million (US $56.7
million) as of June 30, 2021 (December 31, 2020 - $56.3
million; US $44.2 million).
The gross lease receivable may increase to approximately
$75.0 million (US $60.0 million) by the end of 2021.
The net lease receivable, after an expected credit loss
provision, was $64.2 million (US
$51.8 million) as at June 30,
2021 (December 31, 2020 -
$48.3 million (US $38.0 million)). CAC's lease deferral receivable
exposure is also partially mitigated by security packages held of
approximately $24.0 million (US
$19.0 million). Chorus collected
approximately 67% of its lease revenue recognized in the second
quarter from its lessees. Consistent with market norms, these
leases are generally for a fixed term, contain an absolute payment
obligation on the part of the lessee, and cannot be terminated
early for convenience.
The following table provides the number of aircraft that earn
leasing revenue for completed transactions:
|
|
|
|
|
(unaudited)
|
|
Completed
Transactions
|
Customer
|
Aircraft
type
|
Q1 2021
|
Q2 2021
|
Total
|
|
|
|
|
|
Aeromexico
|
E190
|
3
|
|
3
|
Air
Nostrum
|
CRJ1000
|
4
|
|
4
|
airBaltic
|
A220-300
|
5
|
|
5
|
Azul
Airlines(1)
|
ATR72-600/E195
|
5
|
|
5
|
Cobham
|
Dash 8-400
|
—
|
1
|
1
|
Croatia
Airlines
|
Dash 8-400
|
2
|
|
2
|
Ethiopian
Airlines
|
Dash 8-400
|
5
|
|
5
|
Indigo
|
ATR72-600
|
8
|
|
8
|
Jambojet
|
Dash 8-400
|
3
|
|
3
|
KLM
Cityhopper
|
E190
|
1
|
|
1
|
Malindo
Air
|
ATR72-600
|
4
|
|
4
|
Philippine
Airlines
|
Dash 8-400
|
3
|
|
3
|
Sky Alps
|
Dash 8-400
|
—
|
2
|
2
|
SpiceJet
|
Dash 8-400
|
5
|
|
5
|
Wings Air
|
ATR72-600
|
1
|
|
1
|
|
|
|
|
|
Total Regional
Aircraft Leasing(2)
|
|
49
|
3
|
52
|
|
|
|
|
|
Total Regional
Aviation Services(2)(3)
|
Dash
8-400/CRJ900
|
48
|
—
|
48
|
|
|
|
|
|
Chorus Total
Aircraft(2)
|
|
97
|
3
|
100
|
|
|
|
|
|
|
|
(1)
|
Consists of three
ATR72-600s and two E195s.
|
(2)
|
As of June 30, 2021,
the RAL segment had 10 off-lease aircraft repossessed in 2020 which
it is currently in the process of remarketing, and the RAS segment
had 18 Dash 8-300s which exited the Covered Aircraft fleet under
the CPA. Of the 10 off-lease aircraft in the RAL segment, eight
aircraft have amortizing debt obligations outstanding against them.
All 18 Dash 8-300s in the RAS segment are pledged as security for
the 6.00% Debentures but do not have amortizing debt obligations
outstanding against them.
|
(3)
|
RAS segment aircraft
breakdown: 34 Dash 8-400s and 14 CRJ900s.
|
Capital expenditures in 2021, including capitalized major
maintenance overhauls but excluding expenditures for the
acquisition of aircraft and the Extended Service Program ('ESP'),
are expected to be between $19.0
million and $29.0 million.
Aircraft related acquisitions and ESP capital expenditures in 2021
are expected to be between $41.0
million and $50.0
million.(1)
(unaudited) (expressed in thousands of Canadian
dollars)
|
Planned
2021(1)
$
|
Actual
|
Six months
ended June 30,
2021 $
|
Year
ended
|
December 31,
2020 $
|
Capital expenditures,
excluding aircraft acquisitions and ESP
|
7,000 to
11,000
|
886
|
11,727
|
Capitalized major
maintenance overhauls(2)
|
12,000 to
18,000
|
5,729
|
7,529
|
Aircraft related
acquisitions and ESP
|
41,000 to
50,000
|
40,625
|
386,881
|
|
60,000 to
79,000
|
47,240
|
406,137
|
|
|
(1)
|
The 2021 plan
includes one CRJ900 in the RAS segment and reconfiguration costs on
off-lease and re-leased aircraft in the RAL segment which have been
converted using a foreign exchange rate of 1.2394, the
June 30, 2021 closing day rate from the Bank of
Canada.
|
(2)
|
The 2021 plan
includes between $8.0 million to $12.0 million of costs that are
expected to be included in Controllable Costs. Actual 2021 and 2020
costs includes $1.4 million and $6.1 million, respectively which
were included in Controllable Costs.
|
Use of Defined Terms
Capitalized terms used but not defined in this news release have
the meanings given to them in the MD&A which is available on
Chorus' website (www.chorusaviation.com) and SEDAR
(www.sedar.com).
Investor Conference Call / Audio Webcast
Chorus will hold an analyst call at 9:00 a.m. ET on Thursday, August 12, 2021 to discuss the second
quarter 2021 financial results. The call may be accessed by dialing
1-888-231-8191. The call will be simultaneously audio webcast
via:
https://produceredition.webcasts.com/starthere.jsp?ei=1479498&tp_key=53d42aa091
This is a listen-in only audio webcast.
The conference call webcast will be archived on Chorus' website
at www.chorusaviation.com under Investors > Reports >
Executive Management Presentations. A playback of the call can also
be accessed until midnight ET,
August 19, 2021 by dialing
toll-free1-888-390-0541, and using passcode 535466 #.
1NON-GAAP FINANCIAL MEASURES
This news
release references several non-GAAP financial measures to
supplement the analysis of Chorus' results. Chorus uses
certain non-GAAP financial measures, described below, to evaluate
and assess performance. These non-GAAP measures are generally
numerical measures of a company's financial performance, financial
position, or cash flows, that include or exclude amounts from the
most comparable GAAP measure. As such, these measures are not
recognized for financial statement presentation under GAAP, do not
have a standardized meaning, and are therefore not likely to be
comparable to similar measures presented by other public
entities.
Adjusted Net Income, Adjusted EBT and Adjusted EBITDA
Chorus revised its definition of Adjusted net income in the
first quarter of 2021 to include the Dash 8-300 inventory
provision, the defined benefit pension curtailment resulting from
the pilot early retirement program and integration costs related to
the 2021 CPA Amendments to facilitate comparability of its
results.
Adjusted net income and Adjusted net income per Share are used
by Chorus to assess performance without the effects of unrealized
foreign exchange gains or losses on long-term debt and lease
liability related to aircraft, signing bonuses, employee separation
program costs, impairment provisions, lease repossession costs net
of security packages realized, Dash 8-300 inventory provision,
defined benefit pension curtailment, integration costs, strategic
advisory fees and the applicable tax expense (recovery). Chorus
manages its exposure to currency risk on such long-term debt by
billing the lease payments within the CPA in the underlying
currency (US dollars) related to the aircraft debt. These items are
excluded because they affect the comparability of Chorus' financial
results, period-over-period, and could potentially distort the
analysis of trends in business performance. Excluding these items
does not imply they are non-recurring due to ongoing currency
fluctuations between the Canadian and US dollar.
Chorus revised its definition of Adjusted EBT and Adjusted
EBITDA in the first quarter of 2021 to include the Dash 8-300
inventory provision, the defined benefit pension curtailment
resulting from the pilot early retirement program and integration
costs related to the 2021 CPA Amendments to facilitate
comparability of its results. Adjusted EBT and EBITDA should not be
used as an exclusive measure of cash flow because it does not
account for the impact of working capital growth, capital
expenditures, debt repayments and other sources and uses of cash,
which are disclosed in the statements of cash flows, forming part
of Chorus' financial statements.
EBT is defined as earnings before income tax. Adjusted EBT (EBT
before signing bonuses, employee separation program costs,
impairment provisions, lease repossession costs net of security
packages realized, Dash 8-300 inventory provision, defined benefit
pension curtailment, integration costs, strategic advisory fees and
other items such as foreign exchange gains and losses) is a
non-GAAP financial measure used by Chorus as a supplemental
financial measure of operational performance. Management believes
Adjusted EBT assists investors in comparing Chorus' performance by
excluding items, which it does not believe will re-occur over the
longer-term (such as signing bonuses, employee separation program
costs, impairment provisions, lease repossession costs net of
security packages realized, Dash 8-300 inventory provision, defined
benefit pension curtailment, integration costs and strategic
advisory fees) as well as items that are non-cash in nature such as
foreign exchange gains and losses.
EBITDA is defined as earnings before net interest expense,
income taxes, depreciation and amortization, and impairment and is
a non-GAAP financial measure that is used frequently by companies
in the aviation industry as a measure of performance. Adjusted
EBITDA (EBITDA before signing bonuses, employee separation program
costs, strategic advisory fees, impairment provisions, lease
repossession costs net of security packages realized, Dash 8-300
inventory provision, defined benefit pension curtailment and
integration costs, and other items such as foreign exchange gains
or losses) is a non-GAAP financial measure used by Chorus as a
supplemental financial measure of operational performance.
Management believes Adjusted EBITDA assists investors in comparing
Chorus' performance by excluding items, which it does not believe
will re-occur over the longer-term (such as signing bonuses,
employee separation program costs, impairment provisions, lease
repossession costs net of security packages realized, Dash 8-300
inventory provision, defined benefit pension curtailment,
integration costs and strategic advisory fees) as well as items
that are non-cash in nature such as foreign exchange gains and
losses. Adjusted EBITDA should not be used as an exclusive measure
of cash flow because it does not account for the impact of working
capital growth, capital expenditures, debt repayments and other
sources and uses of cash, which are disclosed in the statements of
cash flows, forming part of Chorus' financial statements.
Forward-Looking Information
This news release includes
'forward-looking information'. Forward-looking information is
identified by the use of terms and phrases such as "anticipate",
"believe", "could", "estimate", "expect", "intend", "may", "plan",
"predict", "project", "will", "would", and similar terms and
phrases, including references to assumptions. Such information may
involve but is not limited to comments with respect to strategies,
expectations, planned operations or future actions. Forward-looking
information relates to analyses and other information that are
based on forecasts of future results, estimates of amounts not yet
determinable and other uncertain events. Forward-looking
information, by its nature, is based on assumptions, including
those referenced below, and is subject to important risks and
uncertainties. Any forecasts or forward-looking predictions or
statements cannot be relied upon due to, among other things,
external events, changing market conditions and general
uncertainties of the business. Such statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to differ materially
from those indicated in the forward-looking information.
Examples of forward-looking information in this news
release include the discussion in the Outlook section, as well as
statements regarding expectations as to Chorus' future liquidity
and financial strength and contracted revenues, the recovery of
domestic air traffic in Canada and
around the world, Chorus' future growth and the completion of
pending transactions (including the delivery of the Dash 8-400
aircraft to Connect Airlines) referenced in this news release.
Actual results may differ materially from results indicated in
forward-looking information for a number of reasons, including a
prolonged duration of the COVID-19 pandemic and/or further
restrictive measures to contain its spread, the evolving impact of
the COVID-19 pandemic on Chorus' contractual counterparties,
changes in aviation industry and general economic conditions, the
continued payment (in whole or in part) of amounts due under the
CPA, the risk of disputes under the CPA and other significant
contracts, Chorus' ability to pay its indebtedness and otherwise
remain in compliance with its debt covenants, the risk of cross
defaults under debt agreements and other significant contracts, the
risk of asset impairments and provisions for expected credit
losses, as well as the factors identified in the Risk Factors
section of Chorus' Annual Information Form dated February 18, 2021, and in Chorus' public
disclosure record available at www.sedar.com. The forward-looking
statements contained in this news release represent Chorus'
expectations as of the date of this news release (or as of the date
they are otherwise stated to be made) and are subject to change
after such date. Chorus disclaims any intention or obligation to
update or revise such statements to reflect new information,
subsequent events or otherwise, except as required by applicable
securities laws. Readers are cautioned that the foregoing factors
and risks are not exhaustive.
About Chorus Aviation Inc.
Chorus is a global provider of integrated regional aviation
solutions. Chorus' vision is to deliver regional aviation to
the world. Headquartered in Halifax, Nova
Scotia, Chorus is comprised of Chorus Aviation Capital a
leading, global lessor of regional aircraft, and Jazz Aviation and
Voyageur Aviation - companies that have long histories of safe
operations with excellent customer service. Chorus provides a full
suite of regional aviation support services that
encompasses every stage of an aircraft's lifecycle,
including aircraft acquisitions and leasing; aircraft
refurbishment, engineering, modification, repurposing and
preparation; contract flying; aircraft and component maintenance,
disassembly, and parts provisioning.
Chorus Class A Variable Voting Shares and Class B Voting Shares
trade on the Toronto Stock Exchange under the trading symbol 'CHR'.
Chorus 6.00% Senior Debentures, 5.75% Senior Unsecured Debentures,
and 6.00% Convertible Senior Unsecured Debentures trade on the
Toronto Stock Exchange under the trading symbols 'CHR.DB',
'CHR.DB.A', and 'CHR.DB.B', respectively.
www.chorusaviation.com
SOURCE Chorus Aviation Inc.