Bombardier Inc. (TSX: BBD.B) reported today its financial results
for the first quarter of 2024, marked by a robust increase in
service revenues and order activity. The company sold 60% more jets
in the first quarter of 2024 compared to 2023, bringing backlog(5)
up to $14.9 billion. Bombardier’s production plan remains on track
to meet full-year 2024 delivery guidance(7).
“Our team came flying out of the gates in 2024 on soaring
aircraft orders and service revenues. The unit book-to-bill(6) of
1.6 and $700 million backlog(5) increase are even more meaningful
when you take stock of solid activity across traditional customers,
fleets and new opportunities materializing for Bombardier Defense,”
said Éric Martel, President and Chief Executive Officer,
Bombardier. “Building our backlog, growing recurring income
streams, and retiring debt have all been staples of Bombardier’s
solid performance and our first quarter of 2024 delivered on all
three very positively. This level of focused execution continues to
provide solid ground for our team and balance sheet to stand
on.”
Martel added, “I also want to commend the teams working hard to
keep our delivery plan and profile on track toward our full-year
guidance(7). We continue to be flexible and proactive, all while
keeping an eye on the bottom line and our commitments. On that
front, achieving a 16% adjusted EBITDA margin(2) for the quarter in
this landscape is nothing short of exceptional and speaks to the
tremendous collective effort to stay focused on our fundamentals
and work to our plan.”
Robust Order Intake and Aftermarket Revenues Increase,
Profitability Growth
Bombardier reported first quarter of 2024 revenues at $1.3
billion, down year-over-year compared to the same quarter last year
due to the delivery profile. The company recorded 20 aircraft
deliveries and remains on track to reach its planned guidance for
2024(7). The Services business continued its upward trend by
reaching revenues of $477 million, a 13% increase year-over-year.
The company continued on its path to drive sustainable and
profitable growth and closed the first quarter of 2024 with an
adjusted EBITDA(1) of $205 million. This resulted in an adjusted
EBITDA margin(2) of 16%, up 140 basis points year-over-year, driven
by strong conversion on incremental revenues and continued margin
expansion on aircraft. The adjusted EBIT(1) totaled $142 million in
the first three months of the year, up 3% from the same quarter
last year. The adjusted EBIT margin(2) rose by 160 basis points
year-over-year, landing at 11.1%. Adjusted EPS(2) for the
first quarter of 2024 was firmly positive at $0.36.
Orders remained strong across Bombardier’s portfolio of
aircraft, recording a 60% increase compared to the same quarter
last year. This sustained demand for Bombardier aircraft led to a
vigorous unit book-to-bill(6) of 1.6. The backlog(5) also remained
healthy and increased by $700 million to $14.9 billion, continuing
to provide significant operational predictability.
Progress on Debt Reduction Continues, Contributes to
Favorable Positioning for Future Growth
Bombardier continued to make progress on debt reduction with a
$100 million debt redemption announced on March 14th and closed on
April 15th, 2024, using cash from its balance sheet and helping the
company remain ahead of plan on deleveraging. Earlier this month,
Bombardier announced the successful closing of a new issuance of
$750 million aggregate principal of Senior Notes due 2031, with a
rate of 7.25% per annum and were sold at 99.75% of par, the
proceeds of which, together with cash on hand, will be used to
repay existing outstanding debt.
Bombardier continues to proactively improve its balance sheet,
providing a strong foundation for future growth. Bombardier
will provide more information on its strategic pillars and path to
future growth during its Investor Day event, to be held on May 1st,
2024, at its new Aircraft Assembly Centre in Toronto. The new
ultra-modern facility, which will be inaugurated later that day,
demonstrates the company’s commitment to continuously raising the
bar through innovation and sustainability. The layout of the new
facility is designed to improve processes and will allow for better
and safer movement of material, personnel, and aircraft.
bps: basis points |
|
|
(1) |
Non-GAAP financial measure. A
non-GAAP financial measure is not a standardized financial measure
under the financial reporting framework used to prepare our
financial statements and might not be comparable to similar
financial measures used by other issuers. Refer to the section
entitled Caution regarding non-GAAP and other financial measures of
this press release and to the Non-GAAP and other financial measures
section in the Management Discussion & Analysis of the
Corporation’s financial report for the quarter ended March 31, 2024
("MD&A") for definitions of these metrics and reconciliations
to the most comparable IFRS measures. |
(2) |
Non-GAAP financial ratio. A
non-GAAP financial ratio is not a standardized financial measure
under the financial reporting framework used to prepare our
financial statements and might not be comparable to similar
financial measures used by other issuers. Refer to the section
entitled Caution regarding non-GAAP and other financial measures of
this press release and to the Non-GAAP and other financial measures
section in the MD&A for definitions of these metrics and
reconciliations to the most comparable IFRS measures. |
(3) |
Only from continuing
operations. |
(4) |
Unit order intake represents unit
orders net of cancellations for the period. |
(5) |
Represents order backlog for both
manufacturing and services. |
(6) |
Defined as net new aircraft
orders in units over aircraft deliveries in units. |
(7) |
Forward-looking statement. See
the forward-looking statements disclaimer herein and see the
forward-looking statements assumptions on which the 2024 guidance
is based in the Corporation's financial report for the fiscal year
ended December 31, 2023. |
SELECTED RESULTS
Results of the quarter |
|
|
Three-month periods ended March 31 |
|
|
2024 |
|
|
|
2023 |
|
|
|
Variance |
|
|
Revenues |
|
$ |
1,281 |
|
|
$ |
1,453 |
|
|
(12 |
)% |
|
Adjusted EBITDA(1) |
|
$ |
205 |
|
|
$ |
212 |
|
|
(3 |
)% |
|
Adjusted EBITDA margin(2) |
|
|
16.0 |
% |
|
|
14.6 |
% |
|
140 bps |
|
Adjusted EBIT(1)(3) |
|
$ |
142 |
|
|
$ |
138 |
|
|
|
3 |
% |
|
Adjusted EBIT margin(2) |
|
|
11.1 |
% |
|
|
9.5 |
% |
|
160 bps |
|
EBIT |
|
$ |
144 |
|
|
$ |
140 |
|
|
|
3 |
% |
|
EBIT margin(4) |
|
|
11.2 |
% |
|
|
9.6 |
% |
|
160 bps |
|
Net income |
|
$ |
110 |
|
|
$ |
302 |
|
|
$ |
(192 |
) |
|
Diluted EPS (in dollars)(5) |
|
$ |
1.02 |
|
|
$ |
2.98 |
|
|
$ |
(1.96 |
) |
|
Adjusted net income(1)(3) |
|
$ |
44 |
|
|
$ |
113 |
|
|
$ |
(69 |
) |
|
Adjusted EPS (in dollars)(2)(3) |
|
$ |
0.36 |
|
|
$ |
1.06 |
|
|
$ |
(0.70 |
) |
|
Cash flows from operating activities(5) |
|
$ |
(343 |
) |
|
$ |
(162 |
) |
|
$ |
(181 |
) |
|
Net additions to PP&E and intangible assets |
|
$ |
(44 |
) |
|
$ |
(85 |
) |
|
$ |
41 |
|
|
Free cash flow usage(1) |
|
$ |
(387 |
) |
|
$ |
(247 |
) |
|
$ |
(140 |
) |
|
|
|
|
|
|
|
|
|
As at |
March 31, 2024 |
|
December 31, 2023 |
|
|
Variance |
|
|
Cash and cash equivalents |
|
$ |
1,181 |
|
|
$ |
1,594 |
|
|
(26 |
)% |
|
Available liquidity(1) |
|
$ |
1,417 |
|
|
$ |
1,845 |
|
|
(23 |
)% |
|
Order backlog (in billions of dollars)(6) |
|
$ |
14.9 |
|
|
$ |
14.2 |
|
|
|
5 |
% |
|
bps: basis points |
|
|
(1) |
Non-GAAP financial measure. A
non-GAAP financial measure is not a standardized financial measure
under the financial reporting framework used to prepare our
financial statements and might not be comparable to similar
financial measures used by other issuers. Refer to the section
entitled Caution regarding non-GAAP and other financial measures of
this press release and to the Non-GAAP and other financial measures
section in the MD&A for definitions of these metrics and
reconciliations to the most comparable IFRS measures. |
(2) |
Non-GAAP financial ratio. A
non-GAAP financial ratio is not a standardized financial measure
under the financial reporting framework used to prepare our
financial statements and might not be comparable to similar
financial measures used by other issuers. Refer to the section
entitled Caution regarding non-GAAP and other financial measures of
this press release and to the Non-GAAP and other financial measures
section in the MD&A for definitions of these metrics and
reconciliations to the most comparable IFRS measures. |
(3) |
Special items and certain items
of other expense (income) were mainly reclassified to gain related
to disposal of business, impairment and program termination
(reversals), and restructuring charges (reversals), for the
comparative period. See Note 20 - Reclassification, to the
Corporation’s Interim consolidated financial statements for the
three-month period ended March 31, 2024, for more information. |
(4) |
Supplementary financial measure.
Refer to the section entitled Caution regarding non-GAAP and other
financial measures of this press release and to the Non-GAAP and
other financial measures section in the MD&A for definition of
this metric. |
(5) |
Only from continuing
operations. |
(6) |
Represents order backlog for both
manufacturing and services. |
About Bombardier
At Bombardier (BBD-B.TO), we design, build, modify and maintain
the world’s best-performing aircraft for the world’s most
discerning people and businesses, governments and militaries. That
means not simply exceeding standards, but understanding customers
well enough to anticipate their unspoken needs.
For them, we are committed to pioneering the future of
aviation—innovating to make flying more reliable, efficient and
sustainable. And we are passionate about delivering unrivaled
craftsmanship and care, giving our customers greater confidence and
the elevated experience they deserve and expect. Because people who
shape the world will always need the most productive and
responsible ways to move through it.
Bombardier customers operate a fleet of approximately 5,000
aircraft, supported by a vast network of Bombardier team members
worldwide and 10 service facilities across six countries.
Bombardier’s performance-leading jets are proudly manufactured in
aerostructure, assembly and completion facilities in Canada, the
United States and Mexico.
For Information
For corporate news and information, including Bombardier’s
Environmental, Social and Governance report, as well as the
company’s plans to cover all its flight operations with a
Sustainable Aviation Fuel (SAF) blend utilizing the Book and Claim
system visit bombardier.com. Follow us on X @Bombardier.
Media Resources
Francis Richer de La Flèche Vice President, Financial Planning and
Investor Relations Bombardier+1 514 240-9649 |
Mark Masluch Senior Director,
Communications Bombardier +1
514 855-7167 |
The Management’s Discussion and Analysis and the Interim
Consolidated Financial Statements are available at
ir.bombardier.com.
CAUTION REGARDING NON-GAAP AND OTHER FINANCIAL
MEASURES
This press release is based on reported earnings in accordance
with IFRS and on the following non-GAAP and other financial
measures:
Non-GAAP and other financial measures |
Non-GAAP Financial Measures |
Adjusted EBIT |
|
EBIT excluding certain items which do not reflect the Corporations
core performance or where their separate presentation will assist
users of the consolidated financial statements in understanding the
Corporation’s results for the period. Such items include
restructuring charges (reversals), (gain) loss related to disposal
of business, impairment and program termination (reversals),
certain one-time pension related items included in other (income)
expense such as (gain) loss on pension annuity purchases, and
non-commercial legal claims. |
Adjusted EBITDA |
|
Adjusted EBIT plus amortization charges on PP&E and intangible
assets. |
Adjusted net income (loss) |
|
Net income (loss) from continuing operations excluding
restructuring charges (reversals), (gain) loss related to disposal
of business, impairment and program termination (reversals),
certain one-time pension related items included in other (income)
expense such as (gain) loss on pension annuity purchases,
non-commercial legal claims, certain net gains and losses arising
from changes in measurement of provisions and of financial
instruments carried at FVTP&L, accretion on net retirement
benefit obligation, losses (gains) on repayment of long-term debt,
changes in discount rates of provisions and the related tax impacts
of these items. |
Free cash flow (usage) |
|
Cash flows from operating activities - continued operations less
net additions to PP&E and intangible assets. |
Available liquidity |
|
Cash and cash equivalents, plus undrawn amounts under credit
facilities. |
Non-GAAP Financial Ratios |
Adjusted EPS |
|
EPS calculated based on adjusted net income attributable to equity
holders of Bombardier Inc., using the treasury stock method, giving
effect to the exercise of all dilutive elements. |
Adjusted EBIT margin |
|
Adjusted EBIT, as a percentage of total revenues. |
Adjusted EBITDA margin |
|
Adjusted EBITDA, as a percentage of total revenues. |
Supplementary Financial Measure |
EBIT margin |
|
EBIT, as a percentage of total revenues. |
Non-GAAP and other financial measures are measures mainly
derived from the consolidated financial statements but are not
standardized financial measures under the financial reporting
framework used to prepare the Corporation’s financial statements.
Therefore, these might not be comparable to similar non-GAAP and
other financial measures used by other issuers. The exclusion of
certain items from non-GAAP or other financial measures does not
imply that these items are necessarily non-recurring.
Adjusted EBIT Adjusted EBIT is defined as the
EBIT excluding certain items which do not reflect the Corporations
core performance or where their separate presentation will assist
users of the consolidated financial statements in understanding the
Corporation’s results for the period. Such items include
restructuring charges (reversals)(1)(2), (gain) loss related to
disposal of business(1)(3), impairment and program termination
(reversals)(1)(4), certain one-time pension related items included
in other (income) expense such as (gain) loss on pension annuity
purchases(1), and non-commercial legal claims(1). Management uses
adjusted EBIT for purposes of evaluating underlying business
performance. Management believes presentation of this non-GAAP
operating earnings measure in addition to IFRS measures provides
users of our Financial Report with enhanced understanding of our
results and related trends and increases the transparency and
clarity of the core results of our business. For these reasons, a
significant number of users of the MD&A analyze our results
based on this financial measure. Management believes this measure
helps users of the MD&A to better analyze results, enabling
better comparability of our results from one period to another and
with peers.
Adjusted EBITDA Adjusted EBITDA is defined as
the EBIT excluding restructuring charges (reversals)(1)(2), (gain)
loss related to disposal of business(1)(3), impairment and program
termination (reversals)(1)(4), certain one-time pension related
items included in other (income) expense such as (gain) loss on
pension annuity purchases(1), non-commercial legal claims(1), and
amortization charges on PP&E and intangible assets. Management
uses adjusted EBITDA for purposes of evaluating underlying business
performance. Management believes this non-GAAP operating earnings
measure in addition to IFRS measures provides users of our
Financial Report with enhanced understanding of our results and
related trends and increases the transparency and clarity of the
core results of our business, since it excludes the effects of
items that are usually associated with investing or financing
activities and items that do not reflect our core performance or
where their exclusion will assist users in understanding our
results for the period. For these reasons, a significant number of
users of the MD&A analyze our results based on this financial
measure. Management believes this measure helps users of the
MD&A to better analyze results, enabling better comparability
of our results from one period to another and with peers.
Adjusted net income (loss) Adjusted net income
(loss) is defined as the net income (loss) from continuing
operations adjusted for certain specific items that are significant
but are not, based on management’s judgment, reflective of the
Corporation’s underlying operations. These include adjustments
related to restructuring charges (reversals)(1)(2), (gain) loss
related to disposal of business(1)(3), impairment and program
termination (reversals)(1)(4), certain one-time pension related
items included in other (income) expense such as (gain) loss on
pension annuity purchases(1), non-commercial legal claims(1),
certain net gains and losses arising from changes in measurement of
provisions and of financial instruments carried at FVTP&L,
accretion on net retirement benefit obligation, losses (gains) on
repayment of long-term debt, changes in discount rates of
provisions and the related tax impacts of these items. Management
uses adjusted net income (loss) for purposes of evaluating
underlying business performance. Management believes this non-GAAP
earnings measure in addition to IFRS measures provides users of our
Financial Report with enhanced understanding of our results and
related trends and increase the transparency and clarity of the
core results of our business. Adjusted net income (loss) excludes
items that do not reflect our core performance or where their
exclusion will assist users in understanding our results for the
period. For these reasons, a significant number of users of the
MD&A analyze our results based on this financial measure.
Management believes this measure helps users of the MD&A to
better analyze results, enabling better comparability of our
results from one period to another and with peers.
(1) |
Special items and certain items of other expense (income) were
mainly reclassified to gain related to disposal of business,
impairment and program termination (reversals), and restructuring
charges (reversals), for the comparative period. See Note 20 -
Reclassification, to the Corporation’s Interim consolidated
financial statements, for more information. |
(2) |
Includes severance charges or
related reversal, as well as curtailment losses (gains), if
any. |
(3) |
Includes changes in provisions
related to past divestitures. |
(4) |
Includes impairment or reversal
of impairment of PP&E and intangible assets, as well as
provisions related to program termination or their related
reversal, if any. |
Free cash flow (usage)Free cash flow (usage) is
defined as cash flows from operating activities - continued
operations less net additions to PP&E and intangible assets.
Management believes that this non-GAAP cash flow measure provides
investors with an important perspective on the Corporation’s
generation of cash available for shareholders, debt repayment, and
acquisitions after making the capital investments required to
support ongoing business operations and long-term value creation.
This non-GAAP cash flow measure does not represent the residual
cash flow available for discretionary expenditures as it excludes
certain mandatory expenditures such as repayment of maturing debt.
Management uses free cash flow (usage) as a measure to assess both
business performance and overall liquidity generation.
Available liquidity Available liquidity is
defined as cash and cash equivalents plus undrawn amounts under
credit facilities. Management believes that this non-GAAP financial
measure provides investors with an important perspective on the
Corporation’s ability to meet expected liquidity requirements,
including the support of product development initiatives and to
ensure financial flexibility. This measure does not have any
standardized meaning prescribed by IFRS and therefore, may not be
comparable to similar measures presented by other companies.
Adjusted EPS Adjusted EPS is defined as the
adjusted net income (loss) attributable to equity shareholders of
Bombardier Inc., divided by the weighted-average diluted number of
common shares for the period. Management uses adjusted EPS for
purposes of evaluating underlying business performance. Management
believes this non-GAAP financial ratio in addition to IFRS measures
provides users of our Financial Report with enhanced understanding
of our results and related trends and increases the transparency
and clarity of the core results of our business. Adjusted EPS
excludes items that do not reflect our core performance or where
their exclusion will assist users in understanding our results for
the period. For these reasons, a significant number of users of the
MD&A analyze our results based on this financial measure.
Management believes this measure helps users of the MD&A to
better analyze results, enabling better comparability of our
results from one period to another and with peers.
Adjusted EBIT margin Adjusted EBIT margin is
defined as the adjusted EBIT expressed as a percentage of total
revenues. Management uses adjusted EBIT margin for purposes of
evaluating underlying business performance. Management believes
this non-GAAP financial ratio in addition to IFRS measures provides
users of our Financial Report with enhanced understanding of our
results and related trends and increase the transparency and
clarity of the core results of our business. Adjusted EBIT margin
excludes items that do not reflect our core performance or where
their exclusion will assist users in understanding our results for
the period. For these reasons, a significant number of users of the
MD&A analyze our results based on this financial measure.
Management believes this measure helps users of the MD&A to
better analyze results, enabling better comparability of our
results from one period to another and with peers.
Adjusted EBITDA margin Adjusted EBITDA margin
is defined as the adjusted EBITDA expressed as a percentage of
total revenues. Management uses adjusted EBITDA margin for purposes
of evaluating underlying business performance. Management believes
this non-GAAP financial ratio in addition to IFRS measures provides
users of our Financial Report with enhanced understanding of our
results and related trends and increase the transparency and
clarity of the core results of our business. Adjusted EBITDA margin
excludes items that do not reflect our core performance or where
their exclusion will assist users in understanding our results for
the period. For these reasons, a significant number of users of the
MD&A analyze our results based on this financial measure.
Management believes this measure helps users of the MD&A to
better analyze results, enabling better comparability of our
results from one period to another and with peers.
Reconciliation of adjusted EBIT to EBIT and computation of
adjusted EBIT margin |
|
|
Three-month periods ended March 31 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
EBIT |
$ |
144 |
|
|
$ |
140 |
|
|
Restructuring charges (reversals)(1)(2) |
|
(1 |
) |
|
|
— |
|
|
Gain related to disposal of business(1)(3) |
|
— |
|
|
|
(1 |
) |
|
Impairment and program termination (reversals)(1)(4) |
|
(1 |
) |
|
|
(1 |
) |
|
Adjusted EBIT |
$ |
142 |
|
|
$ |
138 |
|
|
Total revenues |
$ |
1,281 |
|
|
$ |
1,453 |
|
|
Adjusted EBIT margin |
|
11.1 |
% |
|
|
9.5 |
% |
|
Reconciliation of adjusted EBITDA to EBIT and computation
of adjusted EBITDA margin |
|
|
Three-month periods ended March 31 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
EBIT |
$ |
144 |
|
|
$ |
140 |
|
|
Amortization |
|
63 |
|
|
|
74 |
|
|
Restructuring charges (reversals)(1)(2) |
|
(1 |
) |
|
|
— |
|
|
Gain related to disposal of business(1)(3) |
|
— |
|
|
|
(1 |
) |
|
Impairment and program termination (reversals)(1)(4) |
|
(1 |
) |
|
|
(1 |
) |
|
Adjusted EBITDA |
$ |
205 |
|
|
$ |
212 |
|
|
Total revenues |
$ |
1,281 |
|
|
$ |
1,453 |
|
|
Adjusted EBITDA margin |
|
16.0 |
% |
|
|
14.6 |
% |
|
Reconciliation of adjusted net income to net income and
computation of adjusted EPS |
|
Three-month periods ended March 31 |
|
|
|
|
2024 |
|
|
2023 |
|
|
|
(per share) |
|
|
(per share) |
|
|
Net income |
$ |
110 |
|
|
|
$ |
302 |
|
|
|
|
Adjustments to EBIT related to: |
|
|
|
|
|
|
|
Restructuring charges (reversals)(1)(2) |
|
(1 |
) |
|
(0.01 |
) |
|
— |
|
|
— |
|
|
Gain related to disposal of business(1)(3) |
|
— |
|
|
— |
|
|
(1 |
) |
|
(0.01 |
) |
|
Impairment and program termination (reversals)(1)(4) |
|
(1 |
) |
|
(0.01 |
) |
|
(1 |
) |
|
(0.01 |
) |
|
Adjustments to net financing expense (income) related to: |
|
|
|
|
|
|
|
Net gain on certain financial instruments |
|
(72 |
) |
|
(0.72 |
) |
|
(232 |
) |
|
(2.35 |
) |
|
Accretion on net retirement benefit obligations |
|
8 |
|
|
0.08 |
|
|
6 |
|
|
0.06 |
|
|
Losses on repayment of long-term debt |
|
— |
|
|
— |
|
|
38 |
|
|
0.38 |
|
|
Changes in discount rates of provisions |
|
— |
|
|
— |
|
|
1 |
|
|
0.01 |
|
|
Adjusted net income |
|
44 |
|
|
|
|
113 |
|
|
|
|
Preferred share dividends, including taxes |
|
(8 |
) |
|
|
|
(8 |
) |
|
|
|
Adjusted net income attributable to equity holders
of Bombardier Inc. |
$ |
36 |
|
|
|
$ |
105 |
|
|
|
|
Weighted-average diluted number of common shares
(in thousands) |
|
99,706 |
|
|
|
|
98,830 |
|
|
|
|
Adjusted EPS (in dollars) |
$ |
0.36 |
|
|
|
$ |
1.06 |
|
|
|
|
Reconciliation of adjusted EPS to diluted EPS (in
dollars) |
|
|
|
|
Three-month
periods ended March 31 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Diluted EPS from continuing operations |
$ |
1.02 |
|
|
$ |
2.98 |
|
|
Impact of adjustments to EBIT related to: |
|
|
|
|
Restructuring charges (reversals)(1)(2) |
|
(0.01 |
) |
|
|
— |
|
|
Gain related to disposal of business(1)(3) |
|
— |
|
|
|
(0.01 |
) |
|
Impairment and program termination (reversals)(1)(4) |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
Adjustments to net financing expense (income) related to: |
|
|
|
|
Net gain on certain financial instruments |
|
(0.72 |
) |
|
|
(2.35 |
) |
|
Accretion on net retirement benefit obligations |
|
0.08 |
|
|
|
0.06 |
|
|
Losses on repayment of long-term debt |
|
— |
|
|
|
0.38 |
|
|
Changes in discount rates of provisions |
|
— |
|
|
|
0.01 |
|
|
Adjusted EPS |
$ |
0.36 |
|
|
$ |
1.06 |
|
|
Reconciliation of free cash flow (usage) to cash flows from
operating activities |
|
Three-month periods ended March 31 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Cash flows from operating activities - continuing
operations |
$ |
(343 |
) |
|
$ |
(162 |
) |
|
Net additions to PP&E and intangible assets |
|
(44 |
) |
|
|
(85 |
) |
|
Free cash flow usage |
$ |
(387 |
) |
|
$ |
(247 |
) |
|
Reconciliation of available liquidity to cash and cash
equivalents |
As at |
March 31, 2024 |
|
|
December 31, 2023 |
|
|
Cash and cash equivalents |
$ |
1,181 |
|
|
$ |
1,594 |
|
|
Undrawn amounts under available revolving credit facility(5) |
|
236 |
|
|
|
251 |
|
|
Available liquidity |
$ |
1,417 |
|
|
$ |
1,845 |
|
|
(1) |
Special items and certain items of other expense (income) were
mainly reclassified to gain related to disposal of business,
impairment and program termination (reversals), and restructuring
charges (reversals), for the comparative period. See Note 20 -
Reclassification, to the Corporation’s Interim consolidated
financial statements, for more information. |
(2) |
Includes severance charges or
related reversal, as well as curtailment losses (gains), if
any. |
(3) |
Includes changes in provisions
related to past divestitures. |
(4) |
Includes impairment or reversal
of impairment of PP&E and intangible assets, as well as
provisions related to program termination or their related
reversal, if any. |
(5) |
A committed secured revolving
credit facility of $300 million which matures in 2027 and is
available for cash drawings for the ongoing working capital needs
of the Corporation and for issuance of performance letters of
credit. This facility was undrawn as at March 31, 2024 and the
availability as at such date was $236 million based on the
collateral, which may vary from time to time. |
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which
may involve, but are not limited to: statements with respect to our
objectives, anticipations and outlook or guidance in respect of
various financial and global metrics and sources of contribution
thereto, targets, goals, priorities, market and strategies,
financial position, financial performance, market position,
capabilities, competitive strengths, credit ratings, beliefs,
prospects, plans, expectations, anticipations, estimates and
intentions; general economic and business outlook, prospects and
trends of an industry; customer value; expected demand for products
and services; growth strategy; product development, including
projected design, characteristics, capacity or performance;
expected or scheduled entry-into-service of products and services,
orders, deliveries, testing, lead times, certifications and
execution of orders in general; competitive position; expectations
regarding revenue and backlog mix; the expected impact of the
legislative and regulatory environment and legal proceedings;
strength of capital profile and balance sheet, creditworthiness,
available liquidities and capital resources, expected financial
requirements, and ongoing review of strategic and financial
alternatives; the introduction of productivity enhancements,
operational efficiencies, cost reduction and restructuring
initiatives, and anticipated costs, intended benefits and timing
thereof; the ability to continue business growth and cash
generation; expectations, objectives and strategies regarding debt
repayment, refinancing of maturities and interest cost reduction;
compliance with restrictive debt covenants; expectations regarding
the declaration and payment of dividends on our preferred shares;
intentions and objectives for our programs, assets and operations;
expectations regarding the availability of government assistance
programs; the impact of new, or exacerbation of existing global
health, geopolitical or military events on the foregoing and the
effectiveness of our plans and measures in response thereto; and
expectations regarding the strength of markets, economic downturns
or recession, and inflationary and supply chain pressures.
In addition, statements that “we believe” and similar statements
reflect our beliefs and opinions on the relevant subject. These
statements are based on information available to us as of the date
of this press release. While we believe that information provides a
reasonable basis for these statements, that information may be
limited or incomplete. Our statements should not be read to
indicate that we have conducted an exhaustive inquiry into, or
review of all relevant information. These statements are inherently
uncertain, and investors are cautioned not to unduly rely on these
statements.
Forward-looking statements can generally be identified by the
use of forward-looking terminology such as “may”, “will”, “shall”,
“can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”,
“foresee”, “believe”, “continue”, “maintain” or “align”, the
negative of these terms, variations of them or similar terminology.
Forward-looking statements are presented for the purpose of
assisting investors and others in understanding certain key
elements of our current objectives, strategic priorities,
expectations, guidance, outlook and plans, and in obtaining a
better understanding of our business and anticipated operating
environment. Readers are cautioned that such information may not be
appropriate for other purposes.
By their nature, forward-looking statements require management
to make assumptions and are subject to important known and unknown
risks and uncertainties, which may cause our actual results in
future periods to differ materially from forecast results set forth
in forward-looking statements. While management considers these
assumptions to be reasonable and appropriate based on information
currently available, there is risk that they may not be accurate.
The assumptions underlying the forward-looking statements made in
this press release include the following material assumptions:
growth of the business aviation market and the Corporation’s share
of such market; proper identification and continued management of
recurring cost saving; optimization of our real estate portfolio;
and access to working capital facilities on market terms. For
additional information, including with respect to other assumptions
underlying the forward-looking statements made in this press
release, refer to the Forward-looking statements - Assumptions
section in the MD&A of the Corporation’s financial report for
the fiscal year ended December 31, 2023. Given the impact
of the changing circumstances surrounding new or continuing global
health, geopolitical and military events, and the related response
from the Corporation, governments (federal, provincial and
municipal, both domestic, foreign and multinational
inter-governmental organizations), regulatory authorities,
businesses, suppliers, customers, counterparties and third-party
service providers, there is an inherently higher degree of
uncertainty associated with the Corporation’s assumptions.
Certain factors that could cause actual results to differ
materially from those anticipated in the forward-looking statements
include, but are not limited to: operational risks (such as risks
related to business development and growth; order backlog;
deployment and execution of our strategy, including cost reductions
and working capital improvements and manufacturing and productivity
enhancement initiatives; developing new products and services,
including technological innovation and disruption; the
certification of products and services; pressures on cash flows and
capital expenditures, including due to seasonality and cyclicality;
doing business with partners; product performance warranty and
casualty claim losses; environmental, health and safety concerns
and regulations; dependence on limited number of contracts,
customers and suppliers, including supply chain risks; human
resources including the global availability of a skilled workforce;
reliance on information systems (including technology
vulnerabilities, cybersecurity threats and privacy breaches);
reliance on and protection of intellectual property rights;
reputation risks; scrutiny and perception gaps regarding
environmental, social and governance matters; adequacy of insurance
coverage; risk management; and tax matters); financing risks (such
as risks related to liquidity and access to capital markets;
substantial debt and interest payment requirements, including
execution of debt management and interest cost reduction
strategies; restrictive and financial debt covenants; retirement
benefit plan risk; exposure to credit risk; and availability of
government support); risks related to regulatory and legal
proceedings; risks associated with general economic conditions and
disruptions, both regionally and globally, that may impact our
sales and operations; business environment risks (such as risks
associated with the financial condition of business aircraft
customers; trade policy; increased competition; political
instability and geopolitical tensions; financial and economic
sanctions and export control limitations; global climate change;
and force majeure events); market risks (such as foreign currency
fluctuations; changing interest rates; increases in commodity
prices; and inflation rate fluctuations); and other unforeseen
adverse events. For more details, see the Risks and uncertainties
section in Other in the MD&A of the Corporation’s financial
report for the first quarter ended March 31, 2024 and in the
MD&A of the Corporation’s financial report for the fiscal year
ended December 31, 2023. Any one or more of the foregoing factors
may be exacerbated by new or continuing global health, geopolitical
or military events, which may have a significantly more severe
impact on the Corporation’s business, results of operations and
financial condition than in the absence of such events.
Readers are cautioned that the foregoing list of factors that
may affect future growth, results and performance is not exhaustive
and undue reliance should not be placed on forward-looking
statements. Other risks and uncertainties not presently known to us
or that we presently believe are not material could also cause
actual results or events to differ materially from those expressed
or implied in our forward-looking statements. The forward-looking
statements set forth herein reflect management’s expectations as at
the date of this report and are subject to change after such date.
Unless otherwise required by applicable securities laws, we
expressly disclaim any intention, and assume no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. The
forward-looking statements contained in this press release are
expressly qualified by this cautionary statement.