Q2 2022 Financial Highlights
- Net loss of $40.4 million, a
quarter-over-quarter decrease of $61.9
million primarily due to anticipated aircraft repossessions
and lease restructurings resulting in provisions of $45.6 million on CACIL's aircraft portfolio,
unrealized foreign exchange losses of $34.3
million and strategic advisory fees of $5.7 million, offset by an increase in Adjusted
net income of $16.2 million.
- Net loss available to Common Shareholders of $46.3 million, or $0.24 loss per basic Common Share, inclusive of
dividends declared on Preferred Shares and non-controlling
interest.
- Adjusted net income available to Common Shareholders of
$21.7 million, or $0.11 per Common Share an increase of
$10.3 million quarter-over-quarter
inclusive of dividends declared on Preferred Shares and
non-controlling interest.
- Adjusted net income of $27.6
million, an increase of $16.2
million quarter-over-quarter primarily due to an increase in
earnings in the RAL segment related to the Falko Business.
- Adjusted EBITDA of $104.9
million, an increase of $28.0
million quarter-over-quarter.
Accomplishments
- Completed the Falko acquisition for US $843.7 million, inclusive of assumed debt.
- Second quarter results included two months of earnings from the
Falko Business, increasing net income by $5.7 million and Adjusted EBT by $9.5 million.
- Integration of the Falko Business progressing as
anticipated.
- Expanded owned, managed and/or operated fleet to 381 aircraft
(including 35 aircraft in a servicing capacity).
HALIFAX,
NS, Aug. 4, 2022 /CNW/ - Chorus Aviation Inc.
('Chorus') (TSX: CHR) today announced second quarter 2022 financial
results.
"With our first quarter since the Falko acquisition now
complete, I am happy to see Falko delivering the expected results.
In addition, the integration of Falko is progressing very well as
both organizations share similar leadership styles and
cultures.
We have already begun to see the Falko asset management platform
demonstrate its contribution to the diversification and flexibility
of our business. In June we announced the addition of 35
turboprop aircraft in a servicing capacity on behalf of a syndicate
of banks further expanding our asset management business and
demonstrating Falko's ability to broaden its customer base," stated
Joe Randell, President and Chief
Executive Officer, Chorus.
Mr. Randell continued: "The Falko acquisition has made Chorus a
market leading regional aircraft asset manager and the world's
largest aircraft lessor focused solely on the regional aircraft
leasing space thereby significantly advancing our growth and
diversification strategy. We now expect to derive approximately 50%
of our 2022 annual Adjusted EBITDA from the Regional Aviation
Leasing (RAL) segment of our business. We have begun the process of
launching Falko's next fund and are pleased with the early
response. We will continue to transition our focus to an asset
light model and will opportunistically explore asset sales, where
appropriate, to create additional shareholder value through paying
down debt and generating incremental cash flows."
"In the second quarter we recorded a $45.6 million provision related to anticipated
aircraft repossessions and lease restructurings. All our other
customers are operating in compliance with lease agreements. This
provision does not impact our longer-term outlook for the
business," added Mr. Randell.
"I sincerely thank the Chorus group of employees for all their
hard work and dedication, and in particular our frontline
employees, for their continued focus on the safety and well-being
of passengers in what has been a challenging environment. Our Jazz
operation continues to ramp up, and Voyageur's parts provisioning
and sales continue to hit new milestones as larger contracts won in
2021 progress as planned. We remain optimistic that these trends
will continue to build momentum and we are very well positioned to
execute on new growth opportunities that will deliver positive
returns to our shareholders, fund investors, customers, and
employees," Mr. Randell concluded.
Second Quarter Summary
In the second quarter of 2022, Chorus reported Adjusted EBITDA
of $104.9 million, an increase of
$28.0 million over the second quarter
of 2021.
The RAL segment's Adjusted EBITDA increased by $25.4 million due to the inclusion of two months
of earnings from the Falko Business as well as increased lease
revenue from re-leased aircraft in CACIL's aircraft portfolio.
The RAS segment's Adjusted EBITDA increased by $2.6 million. Second quarter results were
impacted by:
- an increase in other revenue due to an increase in parts sales
and contract flying partially offset by a decrease in third-party
MRO activity;
- an increase in capitalization of major maintenance overhauls on
owned aircraft of $3.2 million;
and
- an increase in aircraft leasing revenue under the CPA of
$1.3 million primarily due to a
higher US dollar exchange rate; offset by
- an increase in general administrative expenses attributable to
increased operations.
Adjusted net income was $27.6
million for the quarter, an increase of $16.2 million over the second quarter of 2021 due
to:
- a $28.0 million increase in
Adjusted EBITDA as previously described; and
- a decrease of $1.9 million
primarily due to unrealized foreign exchange changes on working
capital; partially offset by
- an increase in depreciation expense of $9.3 million primarily attributable to the Falko
Business;
- an increase of $0.9 million in
income tax expense on adjusted items;
- a decrease in gain on property and equipment of $1.6 million;
- an increase in net interest costs of $1.1 million primarily related to interest on
long-term debt assumed as part of the Falko Acquisition and
interest on the Series B Debentures and Series C Debentures
partially offset by the repayment of certain aircraft financings
and the partial redemption of the 6.00% Debentures; and
- a loss on fair value of investments of $0.8 million.
Net loss increased $61.9 million
over the second quarter of 2021 due to:
- an increase in impairment provision of $20.5 million;
- an increase in net unrealized foreign exchange losses primarily
on long-term debt of $34.3
million;
- a restructuring expected credit loss provision of $10.4 million;
- an increase in lease repossession costs of $12.0 million;
- strategic advisory fees related to the Falko Acquisition of
$5.7 million; and
- an increase in employee separation program costs of
$1.7 million; partially offset
by
- the previously noted increase in Adjusted net income of
$16.2 million; and
- an increase in income tax recoveries on adjusted items of
$7.5 million.
Year-to-Date Summary
Chorus reported Adjusted EBITDA of $188.2
million for 2022, an increase of $27.3 million over the same prior year
period.
The RAL segment's Adjusted EBITDA increased by $28.3 million primarily due to the inclusion of
two months of earnings related to the Falko Business, the
recognition of the expected recovery of Chorus' claim in the
Aeromexico bankruptcy and increased lease revenue from re-leased
aircraft partially in CACIL's aircraft portfolio.
The RAS segment's Adjusted EBITDA decreased by $1.0 million due to:
- an increase in general administrative expenses attributable to
increased operations; and
- an increase in stock-based compensation of $4.4 million due to a decrease in the Common
Share price inclusive of the change in fair value of the Total
Return Swap; partially offset by
- an increase in capitalization of major maintenance overhauls on
owned aircraft of $4.6 million;
- an increase in other revenue due to an increase in parts sales
and contract flying partially offset by third-party MRO activity;
and
- an increase in aircraft leasing revenue under the CPA of
$1.6 million primarily due to a
higher US dollar exchange rate.
Adjusted net income of $45.3
million an increase of $18.2
million over 2021 due to:
- a $27.3 million increase in
Adjusted EBITDA as previously described;
- a decrease in net interest costs of $3.7
million primarily related to the repayment of certain
aircraft financing and the partial redemption of the 6.00%
Debentures partially offset by interest on long-term debt assumed
as part of the Falko Acquisition and interest on the Series B
Debentures and Series C Debentures; and
- a decrease of $0.9 million in
realized foreign exchange losses and increased unrealized foreign
exchange gains on working capital; partially offset by
- an increase in depreciation expense of $8.2 million primarily attributable to the Falko
Business;
- a $3.2 million increase in income
tax expense on adjusted items;
- a decrease in gain on property and equipment of $1.6 million; and
- a loss on fair value of investments of $0.8 million.
Net loss of $17.5 million, an
increase of $0.9 million over the
prior period due to:
- an increase in impairment provisions of $20.5 million in the RAL segment;
- a change in net unrealized foreign exchange primarily on
long-term debt of $33.7 million;
- an increase in lease repossession costs of $11.6 million;
- an increase in restructuring credit loss provision of
$10.4 million;
- a decrease in income tax recoveries on adjusted items of
$14.0 million;
- strategic advisory fees related to the Falko Acquisition of
$8.4 million; and
- an increase in employee separation program costs, exclusive of
the cost attributable to the pilot early retirement program and
signing bonuses of $1.2 million;
offset by
- the previously noted increase in Adjusted net income of
$18.2 million; and
- one-time restructuring costs of $80.7
million in 2021 related to the 2021 CPA Amendments.
Consolidated Financial
Analysis
This section provides detailed information and analysis about
Chorus' performance for the three and six months ended
June 30, 2022 compared to the three and six months ended
June 30, 2021. It focuses on Chorus' consolidated operating
results and provides financial information for Chorus' operating
segments.
(unaudited)
(expressed in
thousands of Canadian dollars)
|
Three months ended
June 30,
|
Six months ended
June 30,
|
2022
|
2021
|
Change
|
Change
|
2022
|
2021
|
Change
|
Change
|
$
|
$
|
$
|
%
|
$
|
$
|
$
|
%
|
|
|
|
|
|
|
|
|
|
Operating
revenue
|
392,343
|
199,873
|
192,470
|
96.3
|
734,723
|
402,360
|
332,363
|
82.6
|
Operating
expenses
|
385,529
|
160,460
|
225,069
|
140.3
|
684,597
|
399,843
|
284,754
|
71.2
|
|
|
|
|
|
|
|
|
|
Operating
income
|
6,814
|
39,413
|
(32,599)
|
(82.7)
|
50,126
|
2,517
|
47,609
|
1,891.5
|
Net interest
expense
|
(25,105)
|
(24,017)
|
(1,088)
|
4.5
|
(45,159)
|
(48,873)
|
3,714
|
(7.6)
|
Foreign exchange (loss)
gain
|
(22,441)
|
10,018
|
(32,459)
|
(324.0)
|
(17,992)
|
14,772
|
(32,764)
|
(221.8)
|
Gain on property and
equipment
|
156
|
1,716
|
(1,560)
|
(90.9)
|
156
|
1,716
|
(1,560)
|
(90.9)
|
Loss on fair value of
investments
|
(797)
|
—
|
(797)
|
(100.0)
|
(797)
|
—
|
(797)
|
(100.0)
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income tax
|
(41,373)
|
27,130
|
(68,503)
|
(252.5)
|
(13,666)
|
(29,868)
|
16,202
|
54.2
|
Income tax (expense)
recovery
|
970
|
(5,613)
|
6,583
|
117.3
|
(3,830)
|
13,306
|
(17,136)
|
(128.8)
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
(40,403)
|
21,517
|
(61,920)
|
(287.8)
|
(17,496)
|
(16,562)
|
(934)
|
(5.6)
|
Net income attributable
to non-controlling interest
|
439
|
—
|
439
|
100.0
|
439
|
—
|
439
|
100.0
|
Net (loss) income
attributable to Shareholders
|
(40,842)
|
21,517
|
(62,359)
|
(289.8)
|
(17,935)
|
(16,562)
|
(1,373)
|
(8.3)
|
Preferred share
dividends
|
(5,426)
|
—
|
(5,426)
|
100.0
|
(5,426)
|
—
|
(5,426)
|
100.0
|
Net (loss) income
attributable to Common Shareholders
|
(46,268)
|
21,517
|
(67,785)
|
(315.0)
|
(23,361)
|
(16,562)
|
(6,799)
|
41.1
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
104,871
|
76,855
|
28,016
|
36.5
|
188,151
|
160,896
|
27,255
|
16.9
|
Adjusted
EBT(1)
|
34,189
|
17,042
|
17,147
|
100.6
|
57,535
|
36,172
|
21,363
|
59.1
|
Adjusted net
income(1)
|
27,586
|
11,380
|
16,206
|
142.4
|
45,330
|
27,124
|
18,206
|
67.1
|
|
(1) These are non-GAAP
financial measures
|
Liquidity
As of June 30, 2022, Chorus' liquidity was $148.6 million including cash of $70.7 million and $77.9
million of available room on its Operating Credit Facility
and Unsecured Revolving Operating Credit Facility. Liquidity
decreased from the first quarter of 2022 by $51.1 million primarily due to payment for the
Falko Acquisition, offset partially by strong cash flows from
operations.
In addition, in July 2022 Chorus
securitized the beneficial interests in five aircraft trusts and as
a result, was able to remove restrictions on US $27.6 million of cash that had been held as
security for a loan.
Chorus anticipates having total liquidity in excess of
$100.0 million for the remainder of
2022. This will provide it with sufficient liquidity to fund
ongoing operations, planned capital expenditures and principal and
interest payments related to long-term borrowings
Outlook
(See cautionary statement regarding forward-looking information
below)
Chorus completed the Falko Acquisition in the second quarter of
2022. This transformative transaction creates new opportunities for
growth, through increased access to growth capital and a
differentiated business model to maximize returns on aircraft
assets.
Chorus' forecast(1) for the year ended December 31, 2022 has been updated from the first
quarter 2022 forecast due to i) the impact of anticipated aircraft
repossessions in the CACIL portfolio, and ii) the initial closing
of the new Falko managed fund anticipated to occur in the fourth
quarter of 2022 (versus concurrent with the fund launch in the
second quarter of 2022). The revised forecast is as follows:
|
RAL
|
RAS
|
Consolidated
|
(unaudited)
(expressed in
thousands of Canadian dollars)
|
|
Excluding Pass-
Through and
Controllable Costs
(included in revenue
and expenses)
|
Pass-Through and
Controllable Costs
(included in revenue
and expenses)
|
|
From
|
To
|
From
|
To
|
From
|
To
|
From
|
To
|
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
|
|
|
|
|
|
|
|
|
Revenue
|
240,000
|
250,000
|
310,000
|
330,000
|
950,000
|
1,150,000
|
1,500,000
|
1,730,000
|
Adjusted
EBITDA(2)
|
205,000
|
220,000
|
210,000
|
220,000
|
—
|
—
|
415,000
|
440,000
|
Adjusted
EBT(2)
|
61,000
|
71,000
|
78,000
|
88,000
|
—
|
—
|
139,000
|
159,000
|
Adjusted Net Income
available to Common Shareholders(2)(3)
|
|
|
|
|
|
|
88,000
|
103,000
|
Adjusted EPS available
to Common Shareholders(2)(4)
|
|
|
|
|
|
|
0.45
|
0.53
|
Net debt to Adjusted
EBITDA(2)
|
|
|
|
|
|
|
4.7x
|
5.0x
|
Return on Invested
Capital (%)
|
|
|
|
|
|
|
5.4 %
|
6.4 %
|
Cash from
operations(5)
|
|
|
|
|
|
|
250,000
|
290,000
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The forecast includes
the impact of the preliminary purchase price allocation ("PPA
Adjustments") for the Falko Acquisition as required under
IFRS 3 Business Combinations ("IFRS 3"). The initial
accounting has been determined provisionally for this reporting
period. The PPA Adjustments must be completed within 12 months from
the acquisition close date. Under IFRS 3, when an acquirer
takes control of a business through an acquisition the
consideration paid is allocated to the fair value of the assets and
liabilities, at the acquisition date, inclusive of the fair value
assessment of intangibles. Intangibles include the fair value
assessment of: asset management contracts and performance
entitlements for existing or future funds, investor/customer
relationships and goodwill for the assembled workforce.
|
(2)
|
These are non-GAAP
financial measures.
|
(3)
|
Preferred Share
dividends and non-controlling interest income are deducted from
Adjusted net income to determine Net income available to Common
Shareholders and for Adjusted EPS available to Common
Shareholders.
|
(4)
|
Weighted average Common
Shares of 194,561,000 was used in the calculation of Adjusted
EPS.
|
(5)
|
Cash from operations
exclude dividends paid to non-controlling interest Shareholders and
net changes in non-cash balances related to operations.
|
Key Economic Assumptions:
- The forecast assumes the launch in the fourth quarter of 2022
of a new investment fund managed by Falko with (i) a minimum of US
$500.0 million in capital commitments
and (ii) management fees and economic terms commensurate with those
in Falko's prior funds.
- The forecast revenue is based on current contracted lease
revenue and forecasted revenues for leased aircraft and asset
management fees. Aircraft leasing revenue under the CPA and Fixed
Margin revenue is expected to be US $114.7
million and $66.3 million,
respectively in 2022.
- The forecast uses weighted average statutory tax rates for each
of the individual entities based on the jurisdiction in which the
entity is taxable. The forecast uses a weighted average income tax
rate of 20.0% based on average statutory tax rates of 26.5%, 12.5%
and 19.0% in Canada, Ireland and United
Kingdom, respectively. The actual weighted average income
tax rates may vary due to the actual income in each country and
foreign exchange rates.
- The forecast assumes no disposals in 2022 of aircraft leased
under the CPA or in the RAL segment.
- The forecast uses a foreign exchange rate of 1.28 a change from
the initial forecasted rate of 1.25 to translate USD to CAD revenue
and expenses.
Regional Aircraft
Leasing
Following the onset of the COVID-19 pandemic, RAL received
requests from many of its customers for some form of temporary rent
relief, as they coped with an unprecedented reduction in demand for
passenger air travel. Under rent relief arrangements, certain of
which include lease term extensions, the repayment of the deferred
amounts typically coincides with the lease term extensions. RAL
collected approximately 88% of lease revenue billed in the second
quarter of 2022. The gross lease receivable may decrease to
approximately $119.0 million (US
$92.3 million) (June 30, 2022 $122.0
million (US $94.6 million)) by
the end of 2022 due to rent relief arrangements and repayment
expectations.
RAL's lease deferral receivable exposure is also partially
mitigated by security packages held of approximately $23.4 million (US $18.2 million) (December 31, 2021 - $26.8
million (US $21.1
million)).
Capital Expenditures
Capital expenditures in 2022, including capitalized major
maintenance overhauls but excluding expenditures for the
acquisition of aircraft are expected to be between $21.0 million and $33.0
million. Aircraft acquisitions and improvements in 2022 are
expected to be between $22.0 million
and $27.0 million.(1)
(unaudited)
(expressed in
thousands of Canadian dollars)
|
|
Actual
|
|
Six months
ended
|
Year
ended
|
Planned
2022(1)
|
June 30,
2022
|
December 31,
2021(2)
|
$
|
$
|
$
|
Capital expenditures,
excluding aircraft acquisitions
|
11,000 to
17,000
|
3,836
|
7,019
|
Capitalized major
maintenance overhauls(3)
|
10,000 to
16,000
|
10,203
|
20,296
|
Aircraft acquisitions
and improvements
|
22,000 to
27,000
|
17,780
|
47,392
|
|
43,000 to
60,000
|
31,819
|
74,707
|
|
|
(1)
|
The 2022 plan includes
reconfiguration costs on re-leased aircraft in the RAL segment
which have been converted to Canadian from US dollars using a
foreign exchange rate of 1.2886, the June 30, 2022 closing day rate
from the Bank of Canada.
|
(2)
|
The 2021 actual
includes the acquisition of one CRJ900 and reconfiguration costs on
certain off-lease and re-leased aircraft.
|
(3)
|
The 2022 plan includes
between $5.9 million to $8.4 million of costs that are expected to
be included in Controllable Costs. Actual 2022 and 2021 costs
include $5.9 million and $8.1 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 under Chorus' profile
on SEDAR (www.sedar.com).
Investor Conference Call / Audio
Webcast
Chorus will hold an analyst call at 9:00
ET on August 5, 2022, to
discuss the second quarter 2022 financial results. The call may be
accessed by dialing 1-888-664-6392. The call will be simultaneously
audio webcast via: https://app.webinar.net/oD09eP4ekY8.
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 12, 2022, by
dialing toll-free1-888-390-0541, and using passcode 368433#.
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
second quarter of 2022 to include expected credit loss provision
related to anticipated aircraft repossessions ("restructuring
expected credit loss provision") 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, restructuring expected credit loss
provision, 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 second quarter of 2022 to include the expected credit
loss provision related to anticipated aircraft repossession
("restructuring expected credit loss provision") 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, restructuring expected credit loss provision,
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, restructuring expected credit loss provision,
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, restructuring
expected credit loss provision, 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, restructuring expected credit loss
provision, 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' and
statements. Forward-looking information and statements are
identified by the use of terms and phrases such as "anticipate",
"believe", "could", "estimate", "expect", "intend", "may", "plan",
"potential", "predict", "project", "will", "would", and similar
terms and phrases, including references to assumptions. Such
information and statements may involve but are not limited to
comments with respect to strategies, expectations, planned
operations or future actions. Forward-looking information and
statements relate 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 and statements, by their nature, are based on
assumptions, including those referenced below, and are 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 information and 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 and statements.
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 air
traffic in Canada and around the
world, Chorus' future growth and competitive position, Chorus'
ability to grow Falko's asset management business and realize the
benefit of synergies among its subsidiaries, and the completion of
pending or planned transactions (including the successful close of
a new Falko-managed fund). Actual results may differ materially
from results indicated in forward-looking information for a number
of reasons, including Chorus' ability to successfully integrate
Falko's operations and employees and realize the anticipated
benefits of the acquisition transaction; the potential impact of
the completion of the acquisition transaction on relationships,
including with employees, suppliers, customers, investors and other
providers of capital; Falko's ability to successfully launch a new
fund in 2022 on the terms currently contemplated or at all;
deviations from the key economic assumptions described in the
Outlook section; a prolonged duration of the COVID-19 outbreak
(including as a result of the emergence of new COVID-19 variants)
and/or further restrictive measures to minimize its public health
impacts, the evolving impact of COVID-19 on Chorus' contractual
counterparties, changes in aviation industry and general economic
conditions, including inflationary pressures, the continued payment
(in whole or in part) of amounts due under the CPA and/or aircraft
lease agreements with CAC's customers, the risk of disputes under
the CPA and/or under aircraft lease agreements, 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, a failure to conclude
transactions (including potential financings) referenced in this
news release 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' vision is to deliver regional aviation to the world.
Headquartered in Halifax, Nova
Scotia, Chorus is an integrated provider of regional
aviation solutions, including asset management services. Its
principal subsidiaries are: Falko Regional Aircraft, the world's
largest asset manager and aircraft lessor focused solely on the
regional aircraft leasing segment; Jazz Aviation, the sole provider
of regional air services to Air Canada; and Voyageur Aviation, a
provider of specialty air charter, aircraft modification, and parts
provisioning services to regional aviation customers around the
world. Together, Chorus' subsidiaries provide support services that
encompass every stage of a regional aircraft's lifecycle,
including: aircraft acquisition and leasing; aircraft
refurbishment, engineering, modification, repurposing and
transition; 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 due December
31, 2024, 5.75% Senior Unsecured Debentures due December 31, 2024, 6.00% Convertible Senior
Unsecured Debentures due June 30,
2026, and 5.75% Senior Unsecured Debentures due June 30, 2027 trade on the Toronto Stock Exchange
under the trading symbols 'CHR.DB', 'CHR.DB.A', 'CHR.DB.B', and
'CHR.DB.C' respectively. www.chorusaviation.com.
SOURCE Chorus Aviation Inc.