CHC announces record second quarter earnings
ST. JOHN'S, NF, Dec. 2 /CNW/ - CHC Helicopter Corporation ("CHC")
(TSX: FLY.A and FLY.B; NYSE: FLI) today announced financial results for the
quarter ended October 31, 2002.
<<
Financial Highlights
(in millions of Canadian dollars except per share amounts)
-------------------------------------------------------------------------
Three Months Ended Six Months Ended
-------------------------------------------------------------------------
(Restated)(1) (Restated)(1)
October 31, October 31, October 31, October 31,
2002 2001 2002 2001
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
-------------------------------------------------------------------------
Revenue $ 190.7 $ 160.1 $ 366.7 $ 306.5
EBITDA (2) 37.3 30.4 70.9 58.4
Net earnings from
operations (2) 18.7 12.0 35.5 23.1
Net earnings 18.7 12.0 27.6 23.1
Cash flow from operations 29.2 16.5 55.4 31.2
Per Share Information
Net earnings
from operations: (2)
Basic 0.90 0.74 1.72 1.42
Diluted 0.83 0.67 1.58 1.29
-------------------------------------------------------------------------
1. See Note 2 to the Unaudited Consolidated Interim Financial Statements
2. See definitions under Non-GAAP Earnings Measures in Management's
Discussion and Analysis
Highlights
- Revenue was $190.7 million, an increase of $30.6 million (19%) over
last year.
- EBITDA was $37.3 million, an increase of $6.9 million (23%) over last
year.
- Net earnings for the quarter ended October 31, 2002 were $18.7 million
($0.83 per share), a 56% increase over last year.
- This is the 12th consecutive quarter of record year-over-year earnings
growth.
- On October 11, 2002, the Company began trading its Class A subordinated
voting shares on the New York Stock Exchange (NYSE).
Investor Conference Call
A quarterly investor conference call will take place at 10:30 a.m.
(Eastern Standard Time) on December 3, 2002. To listen to the conference call
interested parties should dial 1-888-881-4892 (1-416-640-4127 International)
and request CHC Helicopter Corporation. A replay service will be available
immediately following the conference call until midnight Friday, December 6,
and is accessible at 1-416-640-1917 with reservation number 221402(pound key).
The conference call will also be Webcast through Canada NewsWire at:
newswire.ca
CHC Helicopter Corporation is the world's leading provider of heavy and
medium helicopter services to the global offshore oil and gas industry, with
aircraft operating in 23 countries and a team of approximately 2,500
professionals worldwide.
-------------------------------------------------------------------------
This press release and management's discussion and analysis may contain
projections and other forward-looking statements within the meaning of
the "safe harbour" provision of the United States Private Securities
Litigation Reform Act of 1995. While these projections and other
statements represent our best current judgment, they are subject to risks
and uncertainties that could cause actual results to vary. These
statements may involve risks and uncertainties including, but not limited
to, factors detailed in CHC's Annual Report on Form 20-F and in other
filings with the United States Securities and Exchange Commission. Should
one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual outcomes may vary
materially from those indicated.
-------------------------------------------------------------------------
Management's Discussion and Analysis of Financial Condition and Results
of Operations - Three months ended October 31, 2002
Overview
The following information should be read in conjunction with the
Unaudited Consolidated Interim Financial Statements and related notes included
in this interim report and in conjunction with the Company's 2002 Annual
Audited Financial Statements, related notes and Management's Discussion and
Analysis.
The Company continued to produce strong financial results despite a
reduction in activity levels in some of the Company's markets during the
quarter.
Net earnings during the quarter were $18.7 million ($0.83 diluted
earnings per share) on revenue of $190.7 million, compared to net earnings of
$12.0 million ($0.67 diluted earnings per share) on revenue of $160.1 million
in the same quarter last year. Total net earnings improved quarter over
quarter due to higher contract rates and lower interest costs, offset by
losses recorded in the current quarter of $1.6 million by the Company's wholly
owned composites manufacturing company ("Composites"). Revenue increased by
$30.6 million (19%) in the second quarter compared to last year.
Non-GAAP Earnings Measures
The Company uses certain earnings measures that do not have standard
definitions prescribed by generally accepted accounting principles. The
Company has included these measures because it believes they are used by
certain investors as measures of the Company's financial performance. These
measures as used by CHC are defined as follows:
EBITDA is defined as earnings before interest, taxes, depreciation, and
amortization.
Net earnings from operations are defined as net earnings excluding large
non-recurring items including gains (losses) on the sale of operations and
debt settlement costs, net of applicable income tax.
Reconciliation of Non-GAAP Earnings Measures to GAAP Net Earnings
(In thousands of Canadian Dollars)
Three Months Ended Six Months Ended
-------------------------------------------------
(Restated) (Restated)
(1) (1)
October October October October
31, 2002 31, 2001 31, 2002 31, 2001
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
-------------------------------------------------
Earnings from operations
before taxes and debt
settlement costs
(from statement
of earnings) $23,151 $14,223 $45,472 $27,426
Applicable income
taxes on operations (4,445) (2,200) (9,959) (4,298)
-------------------------------------------------
Net earnings from
operations 18,706 12,023 35,513 23,128
After-tax debt-
settlement costs - - (7,916) -
-------------------------------------------------
Net earnings $18,706 $12,023 $27,597 $23,128
-------------------------------------------------
1. See Note 2 to the Unaudited Consolidated Interim Financial Statements
Revenue
Total revenue for the quarter was $190.7 million compared to revenue of
$160.1 million for the same quarter last year. The following factors account
for the change:
- Increased revenue of $11.8 million (7.4%) primarily as a result of new
contracts and higher rates in all of the Company's markets despite a 7%
decrease in activity in our European operations.
- Increased third-party repair and overhaul revenue of $3.1 million
primarily from special projects for new and existing customers.
- A net revenue increase of $15.7 million on the translation of foreign
subsidiary results to the Company's reporting currency, the Canadian
dollar.
Revenue Summary by Quarter
(in millions of Canadian dollars)
-------------------------------------------------------------------------
Total Repair Corporate
Intern- Helicopter and and
Period Europe ational Operations Overhaul Other Total
-------------------------------------------------------------------------
Q3-F2001 $ 84.5 $ 37.9 $122.4 $ 9.2 $ - $ 131.6
Q4-F2001 89.8 37.3 127.1 9.2 - 136.3
Q1-F2002 101.3 36.9 138.2 8.2 - 146.4
Q2-F2002 107.8 38.9 146.7 13.4 - 160.1
Q3-F2002 95.6 44.9 140.5 11.1 - 151.6
Q4-F2002 102.1 46.7 148.8 10.9 - 159.7
Q1-F2003 118.0 45.8 163.8 10.9 1.3 176.0
Q2-F2003 125.4 44.5 169.9 19.6 1.2 190.7
------------------------------------------------------------------------- |
