Below is the press release on revenues for quarter. Too bad income per share has taken a dip. But it sounds positive for next quarter. Let's hope this gives the stock price a boost.
TRANSAT A.T. INC. ANNOUNCES STRONG GROWTH IN REVENUES
MONTREAL, QUEBEC--
During the quarter ended April 30, 1997, the revenues of Transat
A.T. inc. (the Corporation) rose to 348.2 million dollars
compared to 163.6 million dollars for the corresponding quarter
of the previous year. Specifically, 114.6 million dollars of this
increase in revenues is due to the acquisitions, mainly Look
Voyages and World of Vacations (formerly known as Canadian
Holidays). The other subsidiaries of the Corporation improved
their revenues by 70 million dollars, or 43%. For the quarter
ended April 30, the Corporation posted net income of $3,335,000,
or $0.12 per share, compared to net income of $3,035,000, or
$0.14 per share, for the corresponding period of the previous
year.
For the six month period ended April 30, 1997, the Corporation's
revenues were 628 million dollars compared to 302.2 million
dollars for the same period of the previous year. The Corporation
posted a net loss of $1,617,000, or $0.05 per share, compared to
net income of 2,654,000 $, or $0.12 per share, for the same
period last year. These results per share should be considered
on the basis of an average weighted number of outstanding shares
of 31,337,296 for the first half of 1997 and 20,930,823 (after
the stock split) for 1996.
This quarter marks the end of the winter season for Transat's
tour operators. During this period, which runs from the beginning
of November to the end of April, revenues rose by 325.8 million
dollars; 205 milllion dollars of this amount was generated by
companies acquired during 1996, while 83 million dollars resulted
from the increase in activities of the other tour operators
within the group. Air Transat's revenues, including revenues
generated within the group, improved by 74 million dollars during
the same period, following the addition of new aircraft which
were needed in order to respond to increased capacity demand by
the group's tour operators. At the end of this quarter, Air
Transat's fleet comprised ten Lockheed L-1011-150s (seven in
1996), two Lockheed L-1011-500s (none in 1996) and five Boeing
757s, following the return to lessors of two aircraft rented for
the winter season (four in 1996).
Excluding the loss incurred by Look Voyages, which resulted,
among other things, from seasonal variations in consumer demand
which is at its peak in the summer, profitability for this
quarter improved in comparison to the corresponding period of the
preceeding year, as well as with respect to the entire winter
season. Increase in sales volume is the important factor in the
improvement in results.
The Corporation's cash position stood at $124,681,000 as at April
30, 1997, compared to $153,350,000 as at January 31, 1997. During
the quarter, the Corporation generated operating cash flow of
$6,565,000 compared to $5,895,000 during the same period of the
previous year. The positive effect of the net change in non-cash
working capital balances related to operations of the first
quarter was partly reversed during the second quarter, reflecting
the seasonality of activities. During this quarter, the
Corporation acquired capital assets amounting to 9.5 million
dollars, including one Lockheed L-1011-150 which will be added to
its operating fleet. Two aircraft were refinanced; a third
aircraft will be financed on a long term basis during the third
quarter. On April 30, 1997, the Corporation has acquired the
residual 50% balance of Regent Holidays participating shares. The
final purchase price of this acquisition is based on a pre-determined method of calculation; the payment will be made on
December 31, 1999. During the quarter, the Corporation issued
common shares after the exercise of stock options and in
consideration of the acquisition of a portion of the residual 50%
of Regent Holidays' participating shares.
The Corporation now embarks on its most active period of
activities of the year, the summer travel season, which runs from
the beginning of May until the end of October. During this
period, the Corporation will experience an increase in revenues
in comparison to those of the previous year. As for Look Voyages,
the summer season will be significant to its financial results.
Management continues to work hard to improve Look's
profitability. Even if progress has been made, it is anticipated
that Look will incur a loss for the year ending October 31, 1997.
Transat, a leader in the Canadian travel and tourism industry, is
a publicly traded corporation listed on The Montr,al Exchange and
The Toronto Stock Exchange. Through its subsidiaries and
affiliates, it is involved at all levels of the distribution of
travel services and air transportation. Transat is the sole
owner of the airline Air Transat, tour operators Vacances Air
Transat/Air Transat Holidays (Montr,al, Qu,bec City, Toronto,
Vancouver and Fort Lauderdale), Vacances Air Transat (France),
Nolitour (Montr,al), Regent Holidays (Toronto) and the Tourbec
travel agency chain. It also holds a 68% interest in the French
tour operator Look Voyages, which in turn owns 49% of the France-based airline STAR Europe. Vacances Air Transat holds a 66 2/3%
interest in incoming tour operators DMC-Transat and tour operator
KilomStre Voyages. Transat also owns 50% of the Consultour/Club
Voyages franchisor travel agency group and airport handling
corporation Services Haycot. Transat also holds a 35% interest
in tour operator World of Vacations Ltd.
- 30 -
Source : Lorraine Maheu
Vice President, Finance and administration,
and Chief Financial Officer
Transat A.T. inc.
(514) 476-1011 extension 3200
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