To all Transaters,
Read this morning in The Financial Post:
September 26, 1997
Transat sees profit soar 49%
By ROBERT GIBBENS
For The Financial Post
ÿMONTREAL - Transat A.T. Inc., a charter airline and tour operator, caught the updraft of vacation travel in its third quarter ended July 31.
ÿNet income was $12.8 million (40› a share), up 49% from $8.6 million (39› on fewer shares) for the same period a year earlier. Revenue was $345 million, up 47.5% from $234 million.
ÿNearly half the increase in revenue was from acquisitions made in fiscal 1996. The 84%-held Look Voyages unit in France improved significantly. The third quarter is normally Transat's strongest.
ÿFor the first nine months of fiscal 1997, which is ending Oct. 31, profit was $11.2 million (35›) compared with $11.3 million (51›) a year earlier. The average number of shares outstanding in the latest period was 32.2 million, up from 21.7 million a year earlier, mainly because of acquisitions for stock.
ÿNine-month revenue was $973 million, up 81% from $536 million. Transat held $153 million in cash at July 31, up from $125 million at April 30.
ÿTransat shares (TRZ/TSE/ME) dipped 65› yesterday to close at $11.05. The 52-week range is $13.20 to $8.25.
ÿTransat said the third-quarter profit growth reflected higher sales, higher prices, lower fuel costs (offset by higher maintenance costs), and a better performance by most subsidiaries.
ÿ"Margins were impressive in the latest quarter," said Jacques Kafavian, analyst with Research Capital Corp. in Toronto.
ÿ"Revenue for fiscal 1997 will total about $1.3 billion, up from $779 million in fiscal 1996 and Look could be in the black in fiscal 1998." He estimated fiscal 1997 profit at 90› a share, with $1.45 in fiscal 1998.
ÿRon Schwarz, analyst with CIBC Wood Gundy Securities Inc. in Montreal, was more cautious, estimating 80› a share profit for this year and $1.15, fully diluted, for fiscal 1998.
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Best regards to all,
Marc |
