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Gold/Mining/Energy : Transat A.T. (TRZ/TSE) -- Ignore unavailable to you. Want to Upgrade?

To: Greg Spendjian who wrote (84)	1/29/1998 9:38:00 AM
From: Marc Fortier	Respond to of 88

Hi Greg, I have said 'Bon voyage!' at 11,70$. Thought you would quit too after what you said in your last message. Obviously, the market did not like the deal at all. My supposition is that the outlook about Look's profitability seemed too unsecure... You have to take into consideration, also, that TRZ may be affected in the current quarterly by the ice storm effects on its business. I cashed in because I feared that the stock would drop under 10$, like last year after the departure of one the top executives, Mr. Legault. I thought it was better to raise some cash, given the volatility of the overall market and TRZ prospects for the near future. I still believe that TRZ is a good company to invest in, and thus will keep it on my radar screen. If the stock goes under 10$, there is a strong possibility I buy back a few hundred shares. Amicalement, Marc

To: Greg Spendjian who wrote (84)	2/12/1998 12:17:00 PM
From: Greg Spendjian	Read Replies (1) \| Respond to of 88

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 -------------------------------------------------- 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