Q1 2021 Key Metrics
- Net loss of $38.1 million, or
$0.24 per basic share; a
period-over-period decrease of $20.8
million due to one-time restructuring costs related to the
2021 capacity purchase agreement ('CPA') amendments of $81.8 million as outlined below, offset by the
changes in unrealized foreign exchange of $45.4 million and income taxes.
- Adjusted net income1 of $15.7
million, or $0.10 per basic
share; a decrease of $8.1 million
quarter-over-quarter primarily due to the impact of COVID-19.
- Adjusted EBITDA1 of $84.0
million; a decrease of $4.5
million over first quarter 2020.
- Liquidity of $171.3 million.
- Collected approximately 62% of lease revenue billed in the
first quarter consistent with fourth quarter 2020 collections.
Year-to-date Highlights
- Revised 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 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 3-year contract to upgrade and modify Transport
Canada's National Aerial Surveillance Program fleet of Dash 8-100
and Dash 7 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.
HALIFAX, NS, May 12, 2021 /CNW/ - Chorus Aviation Inc.
('Chorus') (TSX: CHR) today announced first quarter 2021
financial results and an update on the impact of COVID-19.
"I am proud and encouraged by our accomplishments so far this
year," commented Joe Randell,
President and Chief Executive Officer, Chorus. "While our industry
continues to be challenged by the negative effects of COVID-19, we
have made considerable progress towards ensuring we emerge from the
pandemic in the strongest position possible."
"In March we revised our CPA with Air Canada to our mutual
benefit. The two primary highlights are the transfer of 25 Embraer
175 aircraft to Jazz, and the introduction of a cap on the
controllable cost guardrail receivable. With the transfer of the
aircraft, Jazz is currently the sole operator of Air Canada Express
flights and has the exclusive right to operate 70 - 78 seat
regional capacity until 2025. As our work with Air Canada on
recovery plans continues, these revisions further strengthen our
relationship and provides significant network efficiencies and
planning flexibility – elements that are vital as service
resumptions are implemented. The new cap on the controllable cost
guardrail reduces our financial exposure and minimizes draws on our
working capital. Finally, the recent support of the Canadian
government to Air Canada was a welcomed announcement as it helped
preserve regional services across our nation."
"While there remains uncertainty, our industry is starting to
experience some encouraging signs of renewed travel demand, most
particularly in regional and short-haul markets. This was evidenced
by our recent long-term lease agreements with two new leasing
customers, Sky Alps of Italy, and
Cobham Aviation Services of Australia. The aircraft, three Dash 8-400s,
were repossessed by Chorus in 2020 and underwent reconfiguration
and return-to-service work at Voyageur and Jazz Technical Services.
This is what differentiates Chorus from the competition – not only
are we an airline operator, we offer a broad range of solutions to
remarket aircraft in the midst of one of the most challenging
periods in aviation history."
"Although we paused our growth and diversification strategy in
2020 to focus on liquidity, it remains a corporate priority. Our
capital raise in April was over-subscribed and generated gross
proceeds of $145.1 million, thus
enabling us to improve our balance sheet and prudently seek growth
opportunities."
"The recent contracts awarded to Voyageur by Purolator,
Transport Canada and Ambulance New Brunswick are a testament to the
incredible skill and ingenuity of the team and clearly position us
as a premiere special mission service provider. We are
pleased to grow our relationships with these important customers
and are very excited to be expanding our capabilities to include
cargo contract flying on behalf of Purolator. We view the cargo
market as a growth opportunity that is benefiting from the
successes of e-commerce and look forward to participating in this
evolving sector."
"We are proud of the way we are managing through this pandemic
and have centered our attention on the future. I'm very grateful to
our employees for delivering terrific accomplishments despite all
the challenges associated with the global pandemic. We are well
positioned to take advantage of future opportunities," concluded
Mr. Randell.
Liquidity
As of March 31, 2021, Chorus' liquidity was $171.3 million including cash of
$136.0 million and $35.3 million of available room on its
operating credit facility. Liquidity decreased from the fourth
quarter of 2020 by $29.7 million
primarily due to certain payments related to the 2021 CPA
amendments of approximately $17.0
million and debt repayments of $56.0
million, offset by the collection of the 2020 Controllable
Cost Guardrail receivable of $44.2
million.
On April 6, 2021, Chorus completed
a concurrent public offering and private placement of Equity Units
and 6.00% Unsecured Convertible Debentures for gross proceeds of
$145.1 million. The net proceeds,
after transaction costs, were $138.0
million.
In connection with the issuance of the 6.00% Unsecured
Convertible Debentures, Chorus repaid deferred amounts outstanding
under secured aircraft loans in the amount of $33.9 million.
First Quarter Summary
In the first quarter of 2021, Chorus reported adjusted EBITDA of
$84.0 million, a decrease of
$4.5 million relative to the first
quarter of 2020.
The Regional Aircraft Leasing segment's adjusted EBITDA
decreased by $9.5 million primarily
due to lower lease margins attributable to off-lease aircraft, a
$2.5 million expected credit loss
provision and a lower US dollar exchange rate partially offset by
additional aircraft earning leasing revenue.
The Regional Aviation Services segment's adjusted EBITDA
increased by $4.9 million. The first
quarter results were impacted by:
- a decrease in stock-based compensation of $7.1 million due to the change 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
$2.5 million primarily due to nine
incremental CRJ900s, partially offset by the removal of the Dash
8-300s and a lower US dollar exchange rate;
- an increase in other revenue due to an increase in third-party
maintenance, repair and overhaul activity and contract flying;
and
- a decrease in general administrative expenses; offset by
- a decrease in fixed margin of $2.4
million in accordance with the CPA contract; and
- a decrease in capitalization of major maintenance overhauls on
owned aircraft operated under the CPA of $2.4 million.
Adjusted net income was $15.7
million for the quarter, a decrease of $8.1 million due to:
- a $4.5 million decrease in
adjusted EBITDA as previously described;
- an increase in net interest costs of $4.6 million primarily related to new credit
facilities added in April 2020 and
additional aircraft debt; and
- an increase of $1.2 million in
realized foreign exchange and unrealized foreign exchange losses on
working capital; offset by
- a $2.0 million decrease in
adjusted income tax expense resulting from a reduction in EBT of
$23.3 million offset by tax recovery
on adjusted items of $21.3 million;
and
- a decrease in depreciation of $0.3
million.
Net loss increased $20.8 million
due to the previously noted decrease in Adjusted net income of
$8.1 million, one-time restructuring
costs related to the 2021 CPA Amendments of $81.8 million and a change in net lease
repossession costs of $7.0 million;
offset by the change in net unrealized foreign exchange on
long-term debt of $45.4 million, tax
recovery on adjusted items of $21.3
million, decreased impairment of $5.9
million in the RAL segment and decreased employee separation
program costs of $3.5 million,
exclusive of the cost attributable to the pilot early retirement
program.
One-time restructuring costs related to the 2021 CPA amendments
of $81.8 million are as follows:
- Non-cash impairment and inventory provisions on the Dash 8-300s
of $42.8 million;
- Early retirement program costs of $26.3
million to incentivize early departure of senior Jazz pilots
enrolled in the defined benefit pension plan;
- Non-cash defined benefit pension plan curtailment provision of
$10.0 million;
- Integration and E175 aircraft related transition costs of
$2.0 million; and a
- Signing bonuses of $0.7 million
for Jazz pilots.
Consolidated Financial Analysis
(unaudited)
(expressed in
thousands of Canadian dollars)
|
Three months ended
March 31,
|
2021
|
2020
|
Change
|
Change
|
$
|
$
|
$
|
%
|
|
|
|
|
|
Operating
revenue
|
202,487
|
349,931
|
(147,444)
|
(42.1)
|
Operating
expenses
|
239,383
|
303,239
|
(63,856)
|
(21.1)
|
|
|
|
|
|
Operating (loss)
income
|
(36,896)
|
46,692
|
(83,588)
|
(179.0)
|
Net interest
expense
|
(24,856)
|
(20,207)
|
(4,649)
|
(23.0)
|
Foreign exchange gain
(loss)
|
4,754
|
(39,432)
|
44,186
|
112.1
|
Gain on property and
equipment
|
—
|
16
|
(16)
|
100.0
|
|
|
|
|
|
Loss before income
tax
|
(56,998)
|
(12,931)
|
(44,067)
|
(340.8)
|
Income tax recovery
(expense)
|
18,919
|
(4,363)
|
23,282
|
533.6
|
|
|
|
|
|
Net loss
|
(38,079)
|
(17,294)
|
(20,785)
|
(120.2)
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
84,041
|
88,581
|
(4,540)
|
(5.1)
|
Adjusted
EBT(1)
|
19,130
|
29,239
|
(10,109)
|
(34.6)
|
Adjusted net
income(1)
|
15,744
|
23,822
|
(8,078)
|
(33.9)
|
|
|
(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 Air Canada and 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:
On March 15, 2021, Jazz amended
the CPA with Air Canada on a retroactive basis to January 1, 2021. The principal changes
include:
- 25 E175s will be added to the Covered Aircraft fleet in 2021,
increasing the Fixed Margin over the remaining term of the CPA by
$46.0 million;
- Jazz will be the exclusive Air Canada Express operator of 70 –
78 seat regional capacity until the end of 2025;
- 19 Dash 8-300s were removed from the Covered Aircraft fleet
effective January 1, 2021, thereby
reducing aircraft leasing revenue under the CPA by $56.0 million over the remaining term of the CPA;
and
- The Controllable Cost Guardrail receivable is now capped at
$20.0 million, improving working
capital with no change to the $2.0
million Controllable Cost Guardrail exposure.
All other material components of the CPA, including the
December 31, 2035 expiry date, are
unchanged.
The Fixed Margin under the CPA for 2021 is based on the number
of Covered Aircraft which will be no less than $65.7 million.
Chorus estimates the carrying value of the owned Dash 8-300sto
be approximately $65.0 million, and
can sell, lease, or convert them for cargo operations.
In the first quarter of 2021, Jazz operated approximately 15% of
its first quarter 2019 pre-COVID-19 flying levels. In the
second quarter of 2021, Jazz expects to operate approximately 20%
to 25% of its second quarter pre-COVID-19 flying levels.
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 all improved over the
fourth quarter of 2020 and the momentum is expected to be sustained
in 2021.
Regional Aircraft Leasing:
Chorus has received requests from substantially all its Regional
Aircraft Leasing 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.
Chorus Aviation Capital's gross lease receivable was
$67.7 million (US $53.8 million) as of March
31, 2021 (December 31, 2020 -
$56.3 million; US $44.2 million). The gross receivable may increase
to approximately $75.0 million (US
$60.0 million) by the end of 2021.
The increase over previous estimates is due to additional and
anticipated rent relief requests from certain customers resulting
from continued travel restrictions as the number of COVID-19
variants and cases continue to climb.
The net lease receivable, after the expected credit loss
provision, was $57.4 million (US
$45.6 million) as at March 31, 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).
The net lease receivable, after the expected credit loss provision,
is $57.3 million (US $45.6 million) as at March
31, 2021 (December 31, 2020
million $7.9 million (US $6.2 million). Chorus collected approximately 62%
of lease revenue billed in the first quarter from its lessees,
excluding repossessed aircraft which is consistent with fourth
quarter 2020 collections. 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.
Capital:
On April 6, 2021, Chorus completed
a concurrent public offering and private placement of Equity Units
and 6.00% Unsecured Convertible Debentures for aggregate gross
proceeds of $145.1 million. A portion
of the net proceeds has been used to pay down secured
indebtedness.
In connection with the issuance of the 6.00% Unsecured
Convertible Debentures, Chorus repaid deferred amounts outstanding
under secured aircraft loans in the amount of $33.9 million. Chorus also plans to pay down
additional secured indebtedness by approximately $75.0 million. Repayment on these secured
debt facilities will bring the carrying value of CAC's unencumbered
fleet to approximately $140.0 million
(US $110.0 million) and will also
reduce Chorus' restricted cash requirements by approximately
$10.0 million.
The remaining net proceeds will be used to position
Chorus to prudently pursue growth opportunities (including
purchasing additional aircraft to continue expanding Chorus'
regional aircraft leasing business and expanding into additional
contracted flying operations), provide additional balance sheet
flexibility, and for general corporate purposes.
The following table provides the number of aircraft that earn or
will earn leasing revenue for closed and pending
transactions(1) announced to-date:
|
|
|
|
|
(unaudited)
|
|
Completed
Transactions
|
Pending
Transactions(1)
|
Closed and
Pending
Transactions
|
Customer
|
Aircraft
type
|
Q4 2020
|
Q1 2021
|
Total
|
Q2 2021
|
Q2
2021(2)
|
|
|
|
|
|
|
|
Aeromexico
|
Embraer
|
3
|
|
3
|
|
3
|
Air
Nostrum
|
CRJ
|
4
|
|
4
|
|
4
|
airBaltic
|
A220-300
|
5
|
|
5
|
|
5
|
Azul
Airlines(3)
|
ATR/Embraer
|
5
|
|
5
|
|
5
|
Cobham(4)
|
Dash 8-400
|
—
|
|
—
|
1
|
1
|
Croatia
Airlines
|
Dash 8-400
|
2
|
|
2
|
|
2
|
Ethiopian
Airlines
|
Dash 8-400
|
5
|
|
5
|
|
5
|
Indigo
|
ATR
|
8
|
|
8
|
|
8
|
Jambojet
|
Dash 8-400
|
3
|
|
3
|
|
3
|
KLM
Cityhopper
|
Embraer
|
1
|
|
1
|
|
1
|
Malindo
Air
|
ATR
|
4
|
|
4
|
|
4
|
Philippine
Airlines
|
Dash 8-400
|
3
|
|
3
|
|
3
|
Sky
Alps(5)
|
Dash 8-400
|
—
|
|
—
|
2
|
2
|
SpiceJet
|
Dash 8-400
|
5
|
|
5
|
|
5
|
Wings Air
|
ATR
|
1
|
|
1
|
|
1
|
|
|
|
|
|
|
|
Total Regional
Aircraft Leasing(6)
|
|
49
|
—
|
49
|
3
|
52
|
|
|
|
|
|
|
|
Total Regional
Aviation Services(6)(7)(8)
|
Dash
8-400/CRJ
|
62
|
(14)
|
48
|
—
|
48
|
|
|
|
|
|
|
|
Chorus Total
Aircraft(6)
|
|
111
|
(14)
|
97
|
3
|
100
|
|
|
(1)
|
All pending
transactions are subject to the satisfaction of customary
conditions precedent to closing.
|
(2)
|
Total announced
transactions as of May 12, 2021.
|
(3)
|
Consists of three
ATR72-600s and two E195s.
|
(4)
|
In April 2021, CAC
delivered one Dash 8-400 under lease to National Jet Express, a
subsidiary of Cobham Aviation Services.
|
(5)
|
In April 2021, CAC
executed leases for two Dash 8-400s with Sky Alps with deliveries
expected in the second quarter of 2021.
|
(6)
|
As of May 12, 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.
|
(7)
|
The RAS segment
changes includes 2021 CPA Amendments resulting in the removal of
the Dash 8-300s. In addition, the table has also been changed to
reflect only actual owned aircraft earning leasing revenue under
the CPA thereby resulting in the removal of the five to be
determined 75-78 seat aircraft transactions.
|
(8)
|
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 ESP, are expected to be between
$26.0 million and $35.0 million. Aircraft related acquisitions and
ESP capital expenditures in 2021 are expected to be between
$35.0 million and $45.0 million.(1)
(unaudited) (expressed in thousands of Canadian
dollars)
|
|
Actual
|
|
Three months
ended
|
Year
ended
|
Planned
2021(1)
|
March 31,
2021
|
December 31,
2020
|
$
|
$
|
$
|
Capital expenditures,
excluding aircraft acquisitions and ESP
|
8,000 to
12,000
|
430
|
11,727
|
Capitalized major
maintenance overhauls(2)
|
18,000 to
23,000
|
3,622
|
7,529
|
Aircraft related
acquisitions and ESP
|
35,000 to
45,000
|
32,576
|
386,881
|
|
61,000 to
80,000
|
36,628
|
406,137
|
|
|
(1)
|
The 2021 plan
includes one CRJ900 in the RAS segment and reconfiguration costs on
off-lease aircraft in the RAL segment which have been converted
using a foreign exchange rate of 1.2575, the March 31, 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 the Controllable Costs. Actual 2021 and
2020 cost 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 8:30
a.m. ET on Thursday, May 13, 2021 to discuss the first
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=1450693&tp_key=68bb5cef3a
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,
May 20, 2021 by dialing toll-free
1-855-859-2056, and using passcode 1552856#.
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, 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 Sky Alps) 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 outbreak and/or further
restrictive measures to contain its spread, the evolving impact of
COVID-19 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, 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.