- Revenues of $1.3 billion for the first quarter reflect 13% year-over-year aftermarket growth and 20 aircraft deliveries, in line with production plan and full year delivery guidance of 150 to 155 aircraft.
- Adjusted EBITDA(1) of $205 million for the first quarter. Adjusted EBITDA margin(2) rose 140 bps year-over-year to 16%. Reported EBIT for the first quarter was $144 million. Adjusted EPS(2) positive at $0.36 for the first quarter, with diluted EPS(3) at $1.02.
- Free cash flow usage(1) of $387 million reflects expected working capital build in inventories supporting production ramp-up. Reported cash flow usage from operating activities and net additions to PP&E and intangible assets were at $343 million and $44 million respectively.
- Focus on deleveraging continued with $100 million debt redemption announced on March 14th and closed in April; available liquidity(1) remained strong at $1.4 billion. Cash and cash equivalents were $1.2 billion as at March 31, 2024.
- First quarter unit order intake(4) up 60% year-over-year reflecting solid demand; backlog(5) increased by $700 million since the beginning of the year to $14.9 billion on unit book-to-bill(6)
of 1.6. - Bombardier’s new Aircraft Assembly Centre in the Greater-Toronto Area will play host to the company’s 2024 Investor Day on May 1st, 2024, preceding the site’s inauguration ceremony taking place the same day. All amounts in this press release are in U.S. dollars, unless otherwise indicated.
Amounts in tables are in millions except per share amounts, unless otherwise indicated.
MONTRÉAL, April 25, 2024 (GLOBE NEWSWIRE) — Bombardier Inc. (TSX: BBD.B) reported today its financial results for the first quarter of 2024, marked by a robust increase in service revenues and order activity. The company sold 60% more jets in the first quarter of 2024 compared to 2023, bringing backlog(5) up to $14.9 billion. Bombardier’s production plan remains on track to meet full-year 2024 delivery guidance(7).
“Our team came flying out of the gates in 2024 on soaring aircraft orders and service revenues. The unit book-to-bill(6) of 1.6 and $700 million backlog(5) increase are even more meaningful when you take stock of solid activity across traditional customers, fleets and new opportunities materializing for Bombardier Defense,” said Éric Martel, President and Chief Executive Officer, Bombardier. “Building our backlog, growing recurring income streams, and retiring debt have all been staples of Bombardier’s solid performance and our first quarter of 2024 delivered on all three very positively. This level of focused execution continues to provide solid ground for our team and balance sheet to stand on.”
Martel added, “I also want to commend the teams working hard to keep our delivery plan and profile on track toward our full-year guidance(7). We continue to be flexible and proactive, all while keeping an eye on the bottom line and our commitments. On that front, achieving a 16% adjusted EBITDA margin(2) for the quarter in this landscape is nothing short of exceptional and speaks to the tremendous collective effort to stay focused on our fundamentals and work to our plan.”
Robust Order Intake and Aftermarket Revenues Increase, Profitability Growth
Bombardier reported first quarter of 2024 revenues at $1.3 billion, down year-over-year compared to the same quarter last year due to the delivery profile. The company recorded 20 aircraft deliveries and remains on track to reach its planned guidance for 2024(7). The Services business continued its upward trend by reaching revenues of $477 million, a 13% increase year-over-year. The company continued on its path to drive sustainable and profitable growth and closed the first quarter of 2024 with an adjusted EBITDA(1) of $205 million. This resulted in an adjusted EBITDA margin(2) of 16%, up 140 basis points year-over-year, driven by strong conversion on incremental revenues and continued margin expansion on aircraft. The adjusted EBIT(1) totaled $142 million in the first three months of the year, up 3% from the same quarter last year. The adjusted EBIT margin(2) rose by 160 basis points year-over-year, landing at 11.1%. Adjusted EPS(2) for the first quarter of 2024 was firmly positive at $0.36.
Orders remained strong across Bombardier’s portfolio of aircraft, recording a 60% increase compared to the same quarter last year. This sustained demand for Bombardier aircraft led to a vigorous unit book-to-bill(6) of 1.6. The backlog(5) also remained healthy and increased by $700 million to $14.9 billion, continuing to provide significant operational predictability.
Progress on Debt Reduction Continues, Contributes to Favorable Positioning for Future Growth
Bombardier continued to make progress on debt reduction with a $100 million debt redemption announced on March 14th and closed on April 15th, 2024, using cash from its balance sheet and helping the company remain ahead of plan on deleveraging. Earlier this month, Bombardier announced the successful closing of a new issuance of $750 million aggregate principal of Senior Notes due 2031, with a rate of 7.25% per annum and were sold at 99.75% of par, the proceeds of which, together with cash on hand, will be used to repay existing outstanding debt.
Bombardier continues to proactively improve its balance sheet, providing a strong foundation for future growth. Bombardier will provide more information on its strategic pillars and path to future growth during its Investor Day event, to be held on May 1st, 2024, at its new Aircraft Assembly Centre in Toronto. The new ultra-modern facility, which will be inaugurated later that day, demonstrates the company’s commitment to continuously raising the bar through innovation and sustainability. The layout of the new facility is designed to improve processes and will allow for better and safer movement of material, personnel, and aircraft.
| bps: basis points | |
| (1) | Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the Management Discussion & Analysis of the Corporation’s financial report for the quarter ended March 31, 2024 (“MD&A”) for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (2) | Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (3) | Only from continuing operations. |
| (4) | Unit order intake represents unit orders net of cancellations for the period. |
| (5) | Represents order backlog for both manufacturing and services. |
| (6) | Defined as net new aircraft orders in units over aircraft deliveries in units. |
| (7) | Forward-looking statement. See the forward-looking statements disclaimer herein and see the forward-looking statements assumptions on which the 2024 guidance is based in the Corporation’s financial report for the fiscal year ended December 31, 2023. |
SELECTED RESULTS
| Results of the quarter | |||||||||||||
| Three-month periods ended March 31 | 2024 | 2023 | Variance | ||||||||||
| Revenues | $ | 1,281 | $ | 1,453 | (12 | )% | |||||||
| Adjusted EBITDA(1) | $ | 205 | $ | 212 | (3 | )% | |||||||
| Adjusted EBITDA margin(2) | 16.0 | % | 14.6 | % | 140 bps | ||||||||
| Adjusted EBIT(1)(3) | $ | 142 | $ | 138 | 3 | % | |||||||
| Adjusted EBIT margin(2) | 11.1 | % | 9.5 | % | 160 bps | ||||||||
| EBIT | $ | 144 | $ | 140 | 3 | % | |||||||
| EBIT margin(4) | 11.2 | % | 9.6 | % | 160 bps | ||||||||
| Net income | $ | 110 | $ | 302 | $ | (192 | ) | ||||||
| Diluted EPS (in dollars)(5) | $ | 1.02 | $ | 2.98 | $ | (1.96 | ) | ||||||
| Adjusted net income(1)(3) | $ | 44 | $ | 113 | $ | (69 | ) | ||||||
| Adjusted EPS (in dollars)(2)(3) | $ | 0.36 | $ | 1.06 | $ | (0.70 | ) | ||||||
| Cash flows from operating activities(5) | $ | (343 | ) | $ | (162 | ) | $ | (181 | ) | ||||
| Net additions to PP&E and intangible assets | $ | (44 | ) | $ | (85 | ) | $ | 41 | |||||
| Free cash flow usage(1) | $ | (387 | ) | $ | (247 | ) | $ | (140 | ) | ||||
| As at | March 31, 2024 |
December 31, 2023 | Variance | ||||||||||
| Cash and cash equivalents | $ | 1,181 | $ | 1,594 | (26 | )% | |||||||
| Available liquidity(1) | $ | 1,417 | $ | 1,845 | (23 | )% | |||||||
| Order backlog (in billions of dollars)(6) | $ | 14.9 | $ | 14.2 | 5 | % | |||||||
| bps: basis points | |
| (1) | Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (2) | Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (3) | Special items and certain items of other expense (income) were mainly reclassified to gain related to disposal of business, impairment and program termination (reversals), and restructuring charges (reversals), for the comparative period. See Note 20 – Reclassification, to the Corporation’s Interim consolidated financial statements for the three-month period ended March 31, 2024, for more information. |
| (4) | Supplementary financial measure. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A for definition of this metric. |
| (5) | Only from continuing operations. |
| (6) | Represents order backlog for both manufacturing and services. |
About Bombardier
At Bombardier (BBD-B.TO), we design, build, modify and maintain the world’s best-performing aircraft for the world’s most discerning people and businesses, governments and militaries. That means not simply exceeding standards, but understanding customers well enough to anticipate their unspoken needs.
For them, we are committed to pioneering the future of aviation—innovating to make flying more reliable, efficient and sustainable. And we are passionate about delivering unrivaled craftsmanship and care, giving our customers greater confidence and the elevated experience they deserve and expect. Because people who shape the world will always need the most productive and responsible ways to move through it.
Bombardier customers operate a fleet of approximately 5,000 aircraft, supported by a vast network of Bombardier team members worldwide and 10 service facilities across six countries. Bombardier’s performance-leading jets are proudly manufactured in aerostructure, assembly and completion facilities in Canada, the United States and Mexico.
For Information
For corporate news and information, including Bombardier’s Environmental, Social and Governance report, as well as the company’s plans to cover all its flight operations with a Sustainable Aviation Fuel (SAF) blend utilizing the Book and Claim system visit bombardier.com. Follow us on X @Bombardier.
Media Resources
| Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier +1 514 240-9649 |
Mark Masluch Senior Director, Communications Bombardier +1 514 855-7167 |
The Management’s Discussion and Analysis and the Interim Consolidated Financial Statements are available at ir.bombardier.com.
CAUTION REGARDING NON-GAAP AND OTHER FINANCIAL MEASURES
This press release is based on reported earnings in accordance with IFRS and on the following non-GAAP and other financial measures:
| Non-GAAP and other financial measures | ||
| Non-GAAP Financial Measures | ||
| Adjusted EBIT | EBIT excluding certain items which do not reflect the Corporations core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include restructuring charges (reversals), (gain) loss related to disposal of business, impairment and program termination (reversals), certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases, and non-commercial legal claims. | |
| Adjusted EBITDA | Adjusted EBIT plus amortization charges on PP&E and intangible assets. | |
| Adjusted net income (loss) | Net income (loss) from continuing operations excluding restructuring charges (reversals), (gain) loss related to disposal of business, impairment and program termination (reversals), certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases, non-commercial legal claims, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L, accretion on net retirement benefit obligation, losses (gains) on repayment of long-term debt, changes in discount rates of provisions and the related tax impacts of these items. | |
| Free cash flow (usage) | Cash flows from operating activities – continued operations less net additions to PP&E and intangible assets. | |
| Available liquidity | Cash and cash equivalents, plus undrawn amounts under credit facilities. | |
| Non-GAAP Financial Ratios | ||
| Adjusted EPS | EPS calculated based on adjusted net income attributable to equity holders of Bombardier Inc., using the treasury stock method, giving effect to the exercise of all dilutive elements. | |
| Adjusted EBIT margin | Adjusted EBIT, as a percentage of total revenues. | |
| Adjusted EBITDA margin | Adjusted EBITDA, as a percentage of total revenues. | |
| Supplementary Financial Measure | ||
| EBIT margin | EBIT, as a percentage of total revenues. | |
Non-GAAP and other financial measures are measures mainly derived from the consolidated financial statements but are not standardized financial measures under the financial reporting framework used to prepare the Corporation’s financial statements. Therefore, these might not be comparable to similar non-GAAP and other financial measures used by other issuers. The exclusion of certain items from non-GAAP or other financial measures does not imply that these items are necessarily non-recurring.
Adjusted EBIT
Adjusted EBIT is defined as the EBIT excluding certain items which do not reflect the Corporations core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include restructuring charges (reversals)(1)(2), (gain) loss related to disposal of business(1)(3), impairment and program termination (reversals)(1)(4), certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases(1), and non-commercial legal claims(1). Management uses adjusted EBIT for purposes of evaluating underlying business performance. Management believes presentation of this non-GAAP operating earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBITDA
Adjusted EBITDA is defined as the EBIT excluding restructuring charges (reversals)(1)(2), (gain) loss related to disposal of business(1)(3), impairment and program termination (reversals)(1)(4), certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases(1), non-commercial legal claims(1), and amortization charges on PP&E and intangible assets. Management uses adjusted EBITDA for purposes of evaluating underlying business performance. Management believes this non-GAAP operating earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business, since it excludes the effects of items that are usually associated with investing or financing activities and items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted net income (loss)
Adjusted net income (loss) is defined as the net income (loss) from continuing operations adjusted for certain specific items that are significant but are not, based on management’s judgment, reflective of the Corporation’s underlying operations. These include adjustments related to restructuring charges (reversals)(1)(2), (gain) loss related to disposal of business(1)(3), impairment and program termination (reversals)(1)(4), certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases(1), non-commercial legal claims(1), certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L, accretion on net retirement benefit obligation, losses (gains) on repayment of long-term debt, changes in discount rates of provisions and the related tax impacts of these items. Management uses adjusted net income (loss) for purposes of evaluating underlying business performance. Management believes this non-GAAP earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted net income (loss) excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
| (1) | Special items and certain items of other expense (income) were mainly reclassified to gain related to disposal of business, impairment and program termination (reversals), and restructuring charges (reversals), for the comparative period. See Note 20 – Reclassification, to the Corporation’s Interim consolidated financial statements, for more information. |
| (2) | Includes severance charges or related reversal, as well as curtailment losses (gains), if any. |
| (3) | Includes changes in provisions related to past divestitures. |
| (4) | Includes impairment or reversal of impairment of PP&E and intangible assets, as well as provisions related to program termination or their related reversal, if any. |
Free cash flow (usage)
Free cash flow (usage) is defined as cash flows from operating activities – continued operations less net additions to PP&E and intangible assets. Management believes that this non-GAAP cash flow measure provides investors with an important perspective on the Corporation’s generation of cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. This non-GAAP cash flow measure does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow (usage) as a measure to assess both business performance and overall liquidity generation.
Available liquidity
Available liquidity is defined as cash and cash equivalents plus undrawn amounts under credit facilities. Management believes that this non-GAAP financial measure provides investors with an important perspective on the Corporation’s ability to meet expected liquidity requirements, including the support of product development initiatives and to ensure financial flexibility. This measure does not have any standardized meaning prescribed by IFRS and therefore, may not be comparable to similar measures presented by other companies.
Adjusted EPS
Adjusted EPS is defined as the adjusted net income (loss) attributable to equity shareholders of Bombardier Inc., divided by the weighted-average diluted number of common shares for the period. Management uses adjusted EPS for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Adjusted EPS excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBIT margin
Adjusted EBIT margin is defined as the adjusted EBIT expressed as a percentage of total revenues. Management uses adjusted EBIT margin for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted EBIT margin excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBITDA margin
Adjusted EBITDA margin is defined as the adjusted EBITDA expressed as a percentage of total revenues. Management uses adjusted EBITDA margin for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted EBITDA margin excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
| Reconciliation of adjusted EBIT to EBIT and computation of adjusted EBIT margin | ||||||||
| Three-month periods ended March 31 |
||||||||
| 2024 | 2023 | |||||||
| EBIT | $ | 144 | $ | 140 | ||||
| Restructuring charges (reversals)(1)(2) | (1 | ) | — | |||||
| Gain related to disposal of business(1)(3) | — | (1 | ) | |||||
| Impairment and program termination (reversals)(1)(4) | (1 | ) | (1 | ) | ||||
| Adjusted EBIT | $ | 142 | $ | 138 | ||||
| Total revenues | $ | 1,281 | $ | 1,453 | ||||
| Adjusted EBIT margin | 11.1 | % | 9.5 | % | ||||
| Reconciliation of adjusted EBITDA to EBIT and computation of adjusted EBITDA margin | ||||||||
| Three-month periods ended March 31 |
||||||||
| 2024 | 2023 | |||||||
| EBIT | $ | 144 | $ | 140 | ||||
| Amortization | 63 | 74 | ||||||
| Restructuring charges (reversals)(1)(2) | (1 | ) | — | |||||
| Gain related to disposal of business(1)(3) | — | (1 | ) | |||||
| Impairment and program termination (reversals)(1)(4) | (1 | ) | (1 | ) | ||||
| Adjusted EBITDA | $ | 205 | $ | 212 | ||||
| Total revenues | $ | 1,281 | $ | 1,453 | ||||
| Adjusted EBITDA margin | 16.0 | % | 14.6 | % | ||||
| Reconciliation of adjusted net income to net income and computation of adjusted EPS |
|||||||||||||
| Three-month periods ended March 31 |
|||||||||||||
| 2024 | 2023 | ||||||||||||
| (per share) |
(per share) | ||||||||||||
| Net income | $ | 110 | $ | 302 | |||||||||
| Adjustments to EBIT related to: | |||||||||||||
| Restructuring charges (reversals)(1)(2) | (1 | ) | (0.01 | ) | — | — | |||||||
| Gain related to disposal of business(1)(3) | — | — | (1 | ) | (0.01 | ) | |||||||
| Impairment and program termination (reversals)(1)(4) | (1 | ) | (0.01 | ) | (1 | ) | (0.01 | ) | |||||
| Adjustments to net financing expense (income) related to: | |||||||||||||
| Net gain on certain financial instruments | (72 | ) | (0.72 | ) | (232 | ) | (2.35 | ) | |||||
| Accretion on net retirement benefit obligations | 8 | 0.08 | 6 | 0.06 | |||||||||
| Losses on repayment of long-term debt | — | — | 38 | 0.38 | |||||||||
| Changes in discount rates of provisions | — | — | 1 | 0.01 | |||||||||
| Adjusted net income | 44 | 113 | |||||||||||
| Preferred share dividends, including taxes | (8 | ) | (8 | ) | |||||||||
| Adjusted net income attributable to equity holders of Bombardier Inc. |
$ | 36 | $ | 105 | |||||||||
| Weighted-average diluted number of common shares (in thousands) |
99,706 | 98,830 | |||||||||||
| Adjusted EPS (in dollars) | $ | 0.36 | $ | 1.06 | |||||||||
| Reconciliation of adjusted EPS to diluted EPS (in dollars) | ||||||||
| Three-month periods ended March 31 |
||||||||
| 2024 | 2023 | |||||||
| Diluted EPS from continuing operations | $ | 1.02 | $ | 2.98 | ||||
| Impact of adjustments to EBIT related to: | ||||||||
| Restructuring charges (reversals)(1)(2) | (0.01 | ) | — | |||||
| Gain related to disposal of business(1)(3) | — | (0.01 | ) | |||||
| Impairment and program termination (reversals)(1)(4) | (0.01 | ) | (0.01 | ) | ||||
| Adjustments to net financing expense (income) related to: | ||||||||
| Net gain on certain financial instruments | (0.72 | ) | (2.35 | ) | ||||
| Accretion on net retirement benefit obligations | 0.08 | 0.06 | ||||||
| Losses on repayment of long-term debt | — | 0.38 | ||||||
| Changes in discount rates of provisions | — | 0.01 | ||||||
| Adjusted EPS | $ | 0.36 | $ | 1.06 | ||||
| Reconciliation of free cash flow (usage) to cash flows from operating activities | ||||||||
| Three-month periods ended March 31 |
||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities – continuing operations | $ | (343 | ) | $ | (162 | ) | ||
| Net additions to PP&E and intangible assets | (44 | ) | (85 | ) | ||||
| Free cash flow usage | $ | (387 | ) | $ | (247 | ) | ||
| Reconciliation of available liquidity to cash and cash equivalents | ||||||||
| As at | March 31, 2024 |
December 31, 2023 |
||||||
| Cash and cash equivalents | $ | 1,181 | $ | 1,594 | ||||
| Undrawn amounts under available revolving credit facility(5) | 236 | 251 | ||||||
| Available liquidity | $ | 1,417 | $ | 1,845 | ||||
| (1) | Special items and certain items of other expense (income) were mainly reclassified to gain related to disposal of business, impairment and program termination (reversals), and restructuring charges (reversals), for the comparative period. See Note 20 – Reclassification, to the Corporation’s Interim consolidated financial statements, for more information. |
| (2) | Includes severance charges or related reversal, as well as curtailment losses (gains), if any. |
| (3) | Includes changes in provisions related to past divestitures. |
| (4) | Includes impairment or reversal of impairment of PP&E and intangible assets, as well as provisions related to program termination or their related reversal, if any. |
| (5) | A committed secured revolving credit facility of $300 million which matures in 2027 and is available for cash drawings for the ongoing working capital needs of the Corporation and for issuance of performance letters of credit. This facility was undrawn as at March 31, 2024 and the availability as at such date was $236 million based on the collateral, which may vary from time to time. |
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, anticipations and outlook or guidance in respect of various financial and global metrics and sources of contribution thereto, targets, goals, priorities, market and strategies, financial position, financial performance, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; customer value; expected demand for products and services; growth strategy; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and execution of orders in general; competitive position; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings; strength of capital profile and balance sheet, creditworthiness, available liquidities and capital resources, expected financial requirements, and ongoing review of strategic and financial alternatives; the introduction of productivity enhancements, operational efficiencies, cost reduction and restructuring initiatives, and anticipated costs, intended benefits and timing thereof; the ability to continue business growth and cash generation; expectations, objectives and strategies regarding debt repayment, refinancing of maturities and interest cost reduction; compliance with restrictive debt covenants; expectations regarding the declaration and payment of dividends on our preferred shares; intentions and objectives for our programs, assets and operations; expectations regarding the availability of government assistance programs; the impact of new, or exacerbation of existing global health, geopolitical or military events on the foregoing and the effectiveness of our plans and measures in response thereto; and expectations regarding the strength of markets, economic downturns or recession, and inflationary and supply chain pressures.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of our current objectives, strategic priorities, expectations, guidance, outlook and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this press release include the following material assumptions: growth of the business aviation market and the Corporation’s share of such market; proper identification and continued management of recurring cost saving; optimization of our real estate portfolio; and access to working capital facilities on market terms. For additional information, including with respect to other assumptions underlying the forward-looking statements made in this press release, refer to the Forward-looking statements – Assumptions section in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2023. Given the impact of the changing circumstances surrounding new or continuing global health, geopolitical and military events, and the related response from the Corporation, governments (federal, provincial and municipal, both domestic, foreign and multinational inter-governmental organizations), regulatory authorities, businesses, suppliers, customers, counterparties and third-party service providers, there is an inherently higher degree of uncertainty associated with the Corporation’s assumptions.
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: operational risks (such as risks related to business development and growth; order backlog; deployment and execution of our strategy, including cost reductions and working capital improvements and manufacturing and productivity enhancement initiatives; developing new products and services, including technological innovation and disruption; the certification of products and services; pressures on cash flows and capital expenditures, including due to seasonality and cyclicality; doing business with partners; product performance warranty and casualty claim losses; environmental, health and safety concerns and regulations; dependence on limited number of contracts, customers and suppliers, including supply chain risks; human resources including the global availability of a skilled workforce; reliance on information systems (including technology vulnerabilities, cybersecurity threats and privacy breaches); reliance on and protection of intellectual property rights; reputation risks; scrutiny and perception gaps regarding environmental, social and governance matters; adequacy of insurance coverage; risk management; and tax matters); financing risks (such as risks related to liquidity and access to capital markets; substantial debt and interest payment requirements, including execution of debt management and interest cost reduction strategies; restrictive and financial debt covenants; retirement benefit plan risk; exposure to credit risk; and availability of government support); risks related to regulatory and legal proceedings; risks associated with general economic conditions and disruptions, both regionally and globally, that may impact our sales and operations; business environment risks (such as risks associated with the financial condition of business aircraft customers; trade policy; increased competition; political instability and geopolitical tensions; financial and economic sanctions and export control limitations; global climate change; and force majeure events); market risks (such as foreign currency fluctuations; changing interest rates; increases in commodity prices; and inflation rate fluctuations); and other unforeseen adverse events. For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the first quarter ended March 31, 2024 and in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2023. Any one or more of the foregoing factors may be exacerbated by new or continuing global health, geopolitical or military events, which may have a significantly more severe impact on the Corporation’s business, results of operations and financial condition than in the absence of such events.
Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in our forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this report and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
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