With Marc and Charles having sold, is there anybody out there still interested in TRZ. (It feels kind of lonely on one's own.) In case there is, I am posting the company's earnings report. The earnings of $1.3 billion are really not bad at all. Too bad about the earnings per share dropping somewhat. Maybe that can be fixed by working on expenses.
Greg
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Year end results
Transat A.T. Inc TRZ
Shares issued 33,876,617 Feb 11 close $11.00
Thu 12 Feb 98 News Release
Mr Jean-Marc Eustache reports
Net earnings were $25.4 million or $0.78 per share for the year ended
October 31 1997, compared with $22.2 million or $0.98 per share for the
previous year. Revenues for fiscal 1997 totalled $1.3 billion, up 69% from
$779.2 million reported a year ago.
For the first time, the Transat group has posted annual revenues which
exceed $1 billion. The acquisition in fiscal 1996 of interests in Look
Voyages, Brok'Air and World of Vacations provided an additional $342.3
million in revenues, while consolidated sales of the company's other
subsidiaries increased by $195.3 million, which is 29% higher than the
previous year's results.
Despite a 14.2% increase in net earnings, earnings per share declined due
to a higher number of outstanding shares resulting from the issue of common
shares at the beginning of fiscal 1997, the proceeds of which are in
short-term investments.
FINANCIAL HIGHLIGHTS
Year ended October 31
($ 000's)
1997 1996
Revenues $1,316,740 $779,157
Operating profit 46,942 42,826
Net earnings 25,364 22,202
Operating cash flow 46,117 37,742
Net earnings per
share $0.78 $0.98
OPERATING ACTIVITIES
The group's improved results are due in large part to the stronger position
achieved by each of the company's tour operators in their respective
markets. The company is seeing strong growth in sales volume, particularly
in Toronto, Vancouver and France. Combined with the price increases, this
has led to a significant improvement in gross margin.
To maintain sales growth and better serve its markets, Air Transat has made
additions to its fleet. During fiscal 1997, the company added two Lockheed
L-1011-150 and two Lockheed L-1011-500 aircraft to the eight Lockheed
L-1011-150 and five Boeing 757 aircraft already in operation. In December
1997, a third Lockheed L-1011-500 was added, and two Boeing 737-400 were
leased for three winter seasons.
Air Transat has also begun the process of renewing its fleet. Two new
Airbus A330-200 aircraft, fitted to its specifications, are scheduled for
delivery in 1999, one in February and the other in April.
The 1997 results reflect the impact of the devaluated French franc against
the Canadian dollar, mainly in the fourth quarter. Other factors affecting
the results include higher fuel and aircraft maintenance costs and the loss
recorded by French subsidiary, Look Voyages.
Although Look Voyages posted a loss before income taxes for fiscal 1997 of
approximately $9.8 million, its results for the summer season were
encouraging and this tour operator will continue its restructuring in order
to move closer to profitability by the end of fiscal 1998.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com |
