VANCOUVER, British Columbia--(BUSINESS WIRE)--CHC Group Ltd. (NYSE:HELI), the parent company of CHC Helicopter, today reported its financial performance for the fiscal-2014 third quarter, which ended Jan. 31.
Revenue for the quarter was $454 million, up 3 percent. (Unless otherwise noted, all comparisons are year-over-year.) The company had a quarterly net loss of $60 million, compared to a net loss of $59 million in the same quarter last year. Through the first three quarters of the fiscal year, CHC reported revenue of $1.31 billion, up less than 1 percent, and a net loss of $149 million, compared to a net loss of $85 million a year ago.
CHC’s third-quarter adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rental costs, excluding special items) was $119 million, down 1 percent. CHC had a quarterly adjusted net loss of $25 million, compared with a loss of $46 million in the year-ago quarter.
| (Periods ending Jan. 31; | Quarter | Year-to-Date | ||||||||||
| U.S.$, in millions, except margin, shares, EPS data) | FY13 | FY14 | Change | FY13 | FY14 | Change | ||||||
| As reported: | ||||||||||||
| Revenue | 442 | 454 | 3% | 1,305 | 1,312 | 1% | ||||||
| Operating Revenue1 | 400 | 412 | 3% | 1,180 | 1,188 | 1% | ||||||
| Operating income | 23 | 6 | -74% | 71 | 16 | -77% | ||||||
| Net income (loss) | (63) | (58) | 8 % | (88) | (145) | -65% | ||||||
| Controlling interest | (59) | (60) | -2% | (85) | (149) | -75% | ||||||
| Non-controlling interest | (4) | 2 | 150% | (3) | 5 | 266% | ||||||
| Net income (loss) per ordinary share2 | (1.26) | (1.16) | 8% | (1.82) | (3.10) | -70% | ||||||
| Weighted average number of ordinary stock outstanding - basic and diluted | 46,519,484 | 51,573,832 | 11% | 46,519,484 | 48,204,267 | 4% | ||||||
| Adjusted3: | ||||||||||||
| EBITDAR excluding special items4 | 120 | 119 | -1% | 347 | 339 | -2% | ||||||
| Margin5 | 30% | 29% | -130 bps | 29% | 29% | -90 bps | ||||||
| Net loss | (46) | (25) | 46% | (51) | (83) | -63% | ||||||
| Net loss per ordinary share6 | ($0.59) | ($0.32) | 46% | ($0.66) | ($1.07) | -62% | ||||||
| Share count7 | 77,519,484 | 77,519,484 | - | 77,519,484 | 77,519,484 | - | ||||||
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1. |
Operating revenue is total revenue less reimbursable revenue which is costs reimbursed from customers. |
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2. |
Net income (loss) per ordinary share is calculated by net income (loss) attributable to controlling interest divided by weighted average number of ordinary stock outstanding - basic and diluted. |
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3. |
See a description of non-GAAP calculations and reconciliation to comparable GAAP measures on Pages 9 and 10. |
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4. |
For the third quarter of fiscal 2014, the impact of items related to the IPO was excluded from adjusted EBITDAR. See a description of non-GAAP calculations and reconciliation to comparable GAAP measures on Pages 9 and 10. |
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5. |
Adjusted EBITDAR margin is calculated as a percentage of operating revenue. |
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6. |
Net loss per share is calculated by dividing adjusted net loss by adjusted share count. |
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7. |
Adjusted Share Count is the number of ordinary shares outstanding at Jan. 31, 2014. |
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William Amelio, CHC president and chief executive officer:
“Long-term trends for oil-and-gas investments in deep and ultra-deep discovery and production – where the need for our services is greatest – remain robust. We are pursuing our financial priorities by focusing on disciplined capital allocation, reduced leverage and positive free cash flow – with safety leadership in the air and on the ground.”
Joan Hooper, CHC chief financial officer:
“The changes we are making to CHC are further enhancing safety, service and efficiency. We are applying the same resolve to financial discipline as we do to operating standards. Our financial priorities – profitable growth, expanding adjusted EBITDAR margins and strengthening the balance sheet – are guiding all of our decisions and actions.”
FINANCIAL PRIORITIES
Growth:
- A 1-percent increase in overall revenue from flying services was attributable to growth in CHC’s business in the Western North Sea region. Third-party sales by Heli-One – which provides helicopter maintenance, repair and overhaul services (MRO) – were up 25 percent.
Adjusted EBITDAR:
- CHC’s consolidated Q3 adjusted EBITDAR margin, excluding special items, was 29 percent.
- EBITDAR for Helicopter Services, CHC’s oil-and-gas and search-and-rescue flying business, declined 3 percent to $118 million, driven in part by costs associated with returning Airbus EC225 aircraft to service, as well as expenses to initiate new operations in Nigeria, a key growth area for CHC.
- Heli-One’s EBITDAR declined 11 percent to $16 million, mostly as a result of the timing of helicopter maintenance projects, increased maintenance expenses for EC225 aircraft as they returned to service, and costs to improve the efficiency of the company’s supply chain.
Balance Sheet:
- Proceeds from CHC Group’s initial public offering of its ordinary shares were $322 million (net of underwriting fees). This is composed of $294 million from the base offering in January, and $28 million from the underwriters’ February exercise of an over-allotment option to purchase additional ordinary shares.
- Those net proceeds, along with existing cash, were used in January to pay down all of CHC Helicopter’s outstanding revolver balance of $225 million, and in February to redeem $130 million of senior secured notes. Liquidity at the end of the quarter was $775 million.
BUSINESS HIGHLIGHTS
Helicopter Services (flying):
- Third-quarter contract wins from oil-and-gas customers illustrated the leading global reach of CHC’s flying operations. The agreements were for services in places as wide-ranging as Azerbaijan, Australia, Brazil, Kenya, Malaysia, Mozambique and Norway.
- CHC’s retention rate of existing contracts continues to exceed 90 percent.
- The company’s return to strategically important Nigeria took a significant step forward in February when Atlantic Aviation, CHC’s joint-venture partner, initiated regular commercial flights for Shell.
Heli-One (MRO):
- New contracts recorded during the quarter included agreements with Lufttransport (Norway) to upgrade and modify Airbus (formerly Eurocopter) AS332L1 aircraft for all-weather search-and-rescue services, and with Erickson Helicopters (United States) to maintain specific Airbus and Sikorsky aircraft.
- In February, the U.K. Ministry of Defence’s Military Aviation Authority certified Heli-One to provide maintenance support services for the agency’s Makila 1A1 engines.
Full-Year Fiscal-2014 Guidance
The company anticipates revenue to be flat to slightly up from fiscal 2013, and adjusted EBITDAR to be flat to slightly down, reflecting the negative effect of the suspension and subsequent return to service of EC225 aircraft. Interest expense is expected to be $150 to $160 million, tax expense to be $25 to $35 million, and adjusted share count to be 78 million shares. Capital expenditures are anticipated to be $140 to $190 million, and depreciation and amortization to be $135 to $145 million.
About CHC
CHC Helicopter is a leader in enabling customers to go further, do more and come home safely, including oil and gas companies, government search-and-rescue agencies and organizations requiring helicopter maintenance, repair and overhaul services through the Heli-One segment. The company operates about 240 aircraft in approximately 30 countries around the world.
Cautionary Note on Forward-Looking Statements:
This press release contains forward-looking statements and information within the meaning of certain securities laws, including the “safe harbor” provision of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, projections, conclusions, forecasts and other statements are “forward-looking statements.” While these forward-looking statements represent our best current judgment, the actual results could differ materially from the conclusions, forecasts or projections contained in the forward-looking statements. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection in the forward-looking information contained herein. Such factors include, but are not limited to, the following: competition in the markets we serve, long-term support contracts, failure to maintain standards of acceptable safety performance, political, economic, and regulatory uncertainty, problems with our non-wholly owned entities, including potential conflicts with the other owners of such entities, exposure to credit risks, inability to fund our working capital requirement, risks inherent in the operation of helicopters, unanticipated costs or cost increases associated with our business operations, exchange rate fluctuations, trade industry exposure, inflation, inability to maintain government issued licenses, inability to obtain necessary aircraft or insurance, loss of key personnel, work stoppages due to labor disputes, and future material acquisitions or dispositions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. The Company disclaims any intentions or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Please refer to our annual report on Form 10-K, our quarterly reports on Form 10-Q, and our other filings, in particular any discussion of risk factors or forward-looking statements, which are filed with the SEC and available free of charge at the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any estimates or forward-looking statements made herein.
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Consolidated Statements of Operations |
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(Expressed in thousands of United States dollars) |
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(Unaudited) |
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| Three months ended | Nine months ended | |||||||||||||||
| January 31, 2013 | January 31, 2014 | January 31, 2013 | January 31, 2014 | |||||||||||||
| Operating revenue | $ | 399,974 | $ | 412,041 | $ | 1,179,764 | $ | 1,188,317 | ||||||||
| Reimbursable revenue | 41,865 | $ | 41,853 | 124,930 | 123,880 | |||||||||||
| Revenue | 441,839 | 453,894 | 1,304,694 | 1,312,197 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Direct costs | (355,645 | ) | (378,013 | ) | (1,053,129 | ) | (1,092,913 | ) | ||||||||
| Earnings from equity accounted investees | 850 | 2,072 | 2,687 | 5,990 | ||||||||||||
| General and administration costs | (18,729 | ) | (39,182 | ) | (56,299 | ) | (77,839 | ) | ||||||||
| Depreciation | (28,701 | ) | (35,407 | ) | (84,646 | ) | (106,158 | ) | ||||||||
| Restructuring costs | (4,890 | ) | — | (8,617 | ) | — | ||||||||||
| Asset impairments | (7,813 | ) | 58 | (24,218 | ) | (22,956 | ) | |||||||||
| Gain (loss) on disposal of assets | (4,402 | ) | 2,478 | (9,019 | ) | (1,943 | ) | |||||||||
| (419,330 | ) | (447,994 | ) | (1,233,241 | ) | (1,295,819 | ) | |||||||||
| Operating income | 22,509 | 5,900 | 71,453 | 16,378 | ||||||||||||
| Interest on long-term debt | (33,991 | ) | (39,782 | ) | (93,949 | ) | (117,636 | ) | ||||||||
| Foreign exchange gain (loss) | 3,731 | (11,573 | ) | 6,982 | (24,476 | ) | ||||||||||
| Other financing charges | (10,852 | ) | (5,730 | ) | (22,435 | ) | (1,615 | ) | ||||||||
| Loss from continuing operations before income tax | (18,603 | ) | (51,185 | ) | (37,949 | ) | (127,349 | ) | ||||||||
| Income tax expense | (44,303 | ) | (6,689 | ) | (50,606 | ) | (17,489 | ) | ||||||||
| Loss from continuing operations | (62,906 | ) | (57,874 | ) | (88,555 | ) | (144,838 | ) | ||||||||
| Earnings from discontinued operations, net of tax | 212 | — | 1,024 | — | ||||||||||||
| Net loss | $ | (62,694 | ) | $ | (57,874 | ) | $ | (87,531 | ) | $ | (144,838 | ) | ||||
| Net earnings (loss) attributable to: | ||||||||||||||||
| Controlling interest | $ | (58,421 | ) | $ | (60,003 | ) | $ | (84,606 | ) | $ | (149,324 | ) | ||||
| Non-controlling interest | (4,273 | ) | 2,129 | (2,925 | ) | 4,486 | ||||||||||
| Net loss | $ | (62,694 | ) | $ | (57,874 | ) | $ | (87,531 | ) | $ | (144,838 | ) | ||||
| Net loss per ordinary share attributable to controlling interest - basic and diluted: | ||||||||||||||||
| Continuing operations | $(1.26) | $(1.16) | $(1.84) | $(3.10) | ||||||||||||
| Discontinued operations | $0.00 | $0.00 | $0.02 | $0.00 | ||||||||||||
| Net loss per ordinary share(1) | $(1.26) | $(1.16) | $(1.82) | $(3.10) | ||||||||||||
| Weighted average number of shares outstanding - basic and diluted: | 46,519,484 | 51,573,832 | 46,519,484 | 48,204,267 | ||||||||||||
| (1) | Net loss per ordinary share is calculated by net loss attributable to controlling interest divided by weighted average number of ordinary stock outstanding - basic and diluted. | |
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Consolidated Balance Sheets |
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(Expressed in thousands of United States dollars) |
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| (Unaudited) | April 30, 2013 | January 31, 2014 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 123,801 | $ | 417,145 | ||||
| Receivables, net of allowance for doubtful accounts of $4.3 million and $2.6 million, respectively | 317,302 | 267,461 | ||||||
| Income taxes receivable | 25,871 | 25,003 | ||||||
| Deferred income tax assets | 49 | 79 | ||||||
| Inventories | 105,794 | 124,564 | ||||||
| Prepaid expenses | 22,219 | 28,502 | ||||||
| Other assets | 56,083 | 49,571 | ||||||
| 651,119 | 912,325 | |||||||
| Property and equipment, net | 1,075,254 | 1,039,212 | ||||||
| Investments | 26,896 | 30,817 | ||||||
| Intangible assets | 197,810 | 179,746 | ||||||
| Goodwill | 430,462 | 424,502 | ||||||
| Restricted cash | 29,639 | 22,689 | ||||||
| Other assets | 439,789 | 547,150 | ||||||
| Deferred income tax assets | 10,752 | 10,782 | ||||||
| Assets held for sale | 32,047 | 32,637 | ||||||
| $ | 2,893,768 | $ | 3,199,860 | |||||
| Liabilities and Shareholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Payables and accruals | $ | 420,406 | $ | 375,648 | ||||
| Deferred revenue | 27,652 | 31,855 | ||||||
| Income taxes payable | 48,073 | 45,627 | ||||||
| Deferred income tax liabilities | 618 | 522 | ||||||
| Current facility secured by accounts receivable | 53,512 | 46,876 | ||||||
| Other liabilities | 47,791 | 29,300 | ||||||
| Current portion of long-term debt obligations | 2,138 | 132,792 | ||||||
| 600,190 | 662,620 | |||||||
| Long-term debt obligations | 1,475,087 | 1,545,761 | ||||||
| Deferred revenue | 55,990 | 79,835 | ||||||
| Other liabilities | 246,455 | 279,939 | ||||||
| Deferred income tax liabilities | 10,627 | 10,168 | ||||||
| Total liabilities | 2,388,349 | 2,578,323 | ||||||
| Redeemable non-controlling interest | (8,262 | ) | (5,612 | ) | ||||
| Capital stock: Par value $0.0001: | ||||||||
| Authorized: 2,000,000,000 | ||||||||
| Issued: 46,519,484 and 77,519,484 | 5 | 8 | ||||||
| Contributed surplus | 1,696,066 | 2,007,445 | ||||||
| Deficit | (1,092,555 | ) | (1,241,879 | ) | ||||
| Accumulated other comprehensive loss | (89,835 | ) | (138,425 | ) | ||||
| 513,681 | 627,149 | |||||||
| $ | 2,893,768 | $ | 3,199,860 | |||||
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Consolidated Statements of Cash Flows |
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(Expressed in thousands of United States dollars) |
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| (Unaudited) | Nine months ended | |||||||
| January 31, 2013 | January 31, 2014 | |||||||
| Cash provided by (used in): | ||||||||
| Operating activities: | ||||||||
| Net loss | $ | (87,531 | ) | $ | (144,838 | ) | ||
| Earnings from discontinued operations, net of tax | 1,024 | — | ||||||
| Loss from continuing operations | (88,555 | ) | (144,838 | ) | ||||
| Adjustments to reconcile net loss to cash flows provided by (used in) operating activities: | ||||||||
| Depreciation | 84,646 | 106,158 | ||||||
| Loss on disposal of assets | 9,019 | 1,943 | ||||||
| Asset impairments | 24,218 | 22,956 | ||||||
| Earnings from equity accounted investees | (2,687 | ) | (5,990 | ) | ||||
| Deferred income taxes | 22,944 | (378 | ) | |||||
| Non-cash stock-based compensation expense | 334 | 23,148 | ||||||
| Amortization of unfavorable contract credits | (2,842 | ) | — | |||||
| Amortization of lease related fixed interest rate obligations | (2,136 | ) | (1,135 | ) | ||||
| Amortization of long-term debt and lease deferred financing costs | 7,511 | 10,246 | ||||||
| Non-cash accrued interest income on funded residual value guarantees | (5,329 | ) | (4,800 | ) | ||||
| Mark to market loss (gain) on derivative instruments | 6,884 | (8,231 | ) | |||||
| Non-cash defined benefit pension expense | 5,277 | 344 | ||||||
| Defined benefit contributions and benefits paid | (34,215 | ) | (35,559 | ) | ||||
| Increase to deferred lease financing costs | (2,751 | ) | (4,228 | ) | ||||
| Unrealized loss (gain) on foreign currency exchange translation | (8,780 | ) | 24,843 | |||||
| Other | 6,480 | 4,029 | ||||||
| Increase (decrease) in cash resulting from changes in operating assets and liabilities | (46,306 | ) | 29,977 | |||||
| Cash provided by (used in) operating activities | (26,288 | ) | 18,485 | |||||
| Financing activities: | ||||||||
| Sold interest in accounts receivable, net of collections | (6,021 | ) | (5,173 | ) | ||||
| Proceeds from issuance of capital stock | — | 291,313 | ||||||
| Proceeds from issuance of senior secured notes | 202,000 | — | ||||||
| Proceeds from issuance of senior unsecured notes | — | 300,000 | ||||||
| Long-term debt proceeds | 812,449 | 760,000 | ||||||
| Long-term debt repayments | (817,594 | ) | (888,656 | ) | ||||
| Increase in deferred financing costs | (3,793 | ) | (14,034 | ) | ||||
| Related party loans | — | (25,148 | ) | |||||
| Cash provided by financing activities | 187,041 | 418,302 | ||||||
| Investing activities: | ||||||||
| Property and equipment additions | (318,558 | ) | (474,158 | ) | ||||
| Proceeds from disposal of property and equipment | 207,896 | 444,570 | ||||||
| Aircraft deposits net of lease inception refunds | (49,517 | ) | (102,388 | ) | ||||
| Restricted cash | 2,407 | 8,184 | ||||||
| Distribution from equity investments | 745 | 2,306 | ||||||
| Cash used in investing activities | (157,027 | ) | (121,486 | ) | ||||
| Cash provided by continuing operations | 3,726 | 315,301 | ||||||
| Cash flows provided by (used in) discontinued operations: | ||||||||
| Cash flows provided by operating activities | 1,024 | — | ||||||
| Cash flows used in financing activities | (1,024 | ) | — | |||||
| Cash provided by (used in) discontinued operations | — | — | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 42 | (21,957 | ) | |||||
| Change in cash and cash equivalents during the period | 3,768 | 293,344 | ||||||
| Cash and cash equivalents, beginning of period | 55,639 | 123,801 | ||||||
| Cash and cash equivalents, end of period | $ | 59,407 | $ | 417,145 | ||||
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Segment Performance |
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(Expressed in thousands of United States dollars) |
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(Unaudited) |
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Segment Third-party Revenue |
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| Three months ended | Nine months ended | |||||||||||||||
| January 31, 2013 | January 31, 2014 | January 31, 2013 | January 31, 2014 | |||||||||||||
| Helicopter Services operating revenue | $ | 370,505 | $ | 375,343 | $ | 1,083,261 | $ |
1,088,681 |
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| Reimbursable revenue | 41,865 | 41,853 | 124,930 | 123,880 | ||||||||||||
| Helicopter Services total external revenue | 412,370 | 417,196 | 1,208,191 | 1,212,561 | ||||||||||||
| Heli-One external revenue | 29,469 | 36,698 | 96,503 | 99,636 | ||||||||||||
| Consolidated external revenue | $ | 441,839 | $ | 453,894 | $ | 1,304,694 | $ | 1,312,197 | ||||||||
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EBITDAR Summary |
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| Three months ended | Nine months ended | |||||||||||||||
| January 31, 2013 | January 31, 2014 | January 31, 2013 | January 31, 2014 | |||||||||||||
| Helicopter Services | $ | 121,414 | $ | 117,709 | $ | 344,103 | $ | 359,276 | ||||||||
| Heli-One | 18,397 | 16,459 | 61,311 | 34,046 | ||||||||||||
| Corporate | (18,729 | ) | (39,182 | ) | (56,299 | ) | (77,839 | ) | ||||||||
| Eliminations | (604 | ) | 1 | (1,772 | ) | (1,387 | ) | |||||||||
| Adjusted EBITDAR(1) | $ | 120,478 | $ | 94,987 | $ | 347,343 | $ | 314,096 | ||||||||
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(1) See a description of non-GAAP calculations and reconciliation to comparable GAAP measures below. |
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Non-GAAP Financial Measures:
This press release includes non-GAAP financial measures, including: adjusted net earnings (loss); earnings before interest, taxes, depreciation, amortization and aircraft lease rent and associated costs (“Adjusted EBITDAR”) referred to above as EBITDAR; and adjusted net loss per ordinary share, which is calculated by dividing adjusted net loss by the number of ordinary shares outstanding at the end of the period, that are not required by, or presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDAR also excludes special items related to the IPO in the third quarter of fiscal 2014. These non-GAAP measures are not performance measures under GAAP and should not be considered as alternatives to net earnings (loss) or any other performance or liquidity measures derived in accordance with GAAP. In addition, these measures may not be comparable to similarly titled measures of other companies. CHC has provided a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure below and above. CHC has chosen to include adjusted net earnings (loss) as we consider this to be a useful measure of our results before asset impairments, gain or loss on the disposal of assets and foreign exchange gains or losses. We have chosen to include Adjusted EBITDAR and Adjusted EBITDAR excluding special items, as we consider these to be significant indicators of our financial performance and we use these measures to assist us in allocating available capital resources. CHC has provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure below and has presented a detailed discussion of its reasons for including non-GAAP financial measures and the limitations associated with those measures as part of the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Quarterly Reports on Form 10-Q. CHC encourages investors to review the reconciliation and the non-GAAP discussion in conjunction with our presentation of these non-GAAP financial measures.
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EBITDAR - Non-GAAP Reconciliation |
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(Expressed in thousands of United States dollars) |
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(Unaudited) |
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| Three months ended | Nine months ended | |||||||||||||||
| January 31, 2013 | January 31, 2014 | January 31, 2013 | January 31, 2014 | |||||||||||||
| Helicopter Services | $ | 121,414 | $ | 117,709 | $ | 344,103 | $ | 359,276 | ||||||||
| Heli-One | 18,397 | 16,459 | 61,311 | 34,046 | ||||||||||||
| Corporate | (18,729 | ) | (39,182 | ) | (56,299 | ) | (77,839 | ) | ||||||||
| Eliminations | (604 | ) | 1 | (1,772 | ) | (1,387 | ) | |||||||||
| Adjusted EBITDAR | 120,478 | 94,987 | 347,343 | 314,096 | ||||||||||||
| Aircraft lease costs & related costs | (52,163 | ) | (56,216 | ) | (149,390 | ) | (166,661 | ) | ||||||||
| Depreciation | (28,701 | ) | (35,407 | ) | (84,646 | ) | (106,158 | ) | ||||||||
| Restructuring | (4,890 | ) | — | (8,617 | ) | — | ||||||||||
| Asset impairments | (7,813 | ) | 58 | (24,218 | ) | (22,956 | ) | |||||||||
| Gain (loss) on disposal of assets & investments | (4,402 | ) | 2,478 | (9,019 | ) | (1,943 | ) | |||||||||
| Operating income | 22,509 | 5,900 | 71,453 | 16,378 | ||||||||||||
| Interest on long-term debt | (33,991 | ) | (39,782 | ) | (93,949 | ) | (117,636 | ) | ||||||||
| Foreign exchange gain (loss) | 3,731 | (11,573 | ) | 6,982 | (24,476 | ) | ||||||||||
| Other financing charges | (10,852 | ) | (5,730 | ) | (22,435 | ) | (1,615 | ) | ||||||||
| Loss from continuing operations before income tax | (18,603 | ) | (51,185 | ) | (37,949 | ) | (127,349 | ) | ||||||||
| Income tax expense | (44,303 | ) | (6,689 | ) | (50,606 | ) | (17,489 | ) | ||||||||
| Loss from continuing operations | (62,906 | ) | (57,874 | ) | (88,555 | ) | (144,838 | ) | ||||||||
| Earnings from discontinued operations, net of tax | 212 | — | 1,024 | — | ||||||||||||
| Net loss | $ | (62,694 | ) | $ | (57,874 | ) | $ | (87,531 | ) | $ | (144,838 | ) | ||||
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EBITDAR excluding special items - Non-GAAP Reconciliation |
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(Expressed in thousands of United States dollars) |
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(Unaudited) |
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| Three months ended | Nine months ended | |||||||||||||||
| January 31, 2013 | January 31, 2014 | January 31, 2013 | January 31, 2014 | |||||||||||||
| Adjusted EBITDAR | $ | 120,478 | $ | 94,987 | $ | 347,343 | $ |
314,096 |
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| Stock-based compensation1 | — | 22,518 | — | 22,518 | ||||||||||||
| Expenses related to the initial public offering2 | — | 1,251 | — | 2,563 | ||||||||||||
| Adjusted EBITDAR excluding special items | $ | 120,478 | $ | 118,756 | $ | 347,343 | $ | 339,177 | ||||||||
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Adjusted net earnings (loss) - Non-GAAP Reconciliation |
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(Expressed in thousands of United States dollars) |
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(Unaudited) |
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| Three months ended | Nine months ended | |||||||||||||||
| January 31, 2013 | January 31, 2014 | January 31, 2013 | January 31, 2014 | |||||||||||||
| Net loss attributable to controlling interest | $ | (58,421 | ) | $ | (60,003 | ) | $ | (84,606 | ) | $ | (149,324 | ) | ||||
| Stock-based compensation1 | — | 22,518 | — | 22,518 | ||||||||||||
| Expenses related to the initial public offering2 | — | 1,251 | — | 2,563 | ||||||||||||
| Asset impairments | 7,813 | (58 | ) | 24,218 | 22,956 | |||||||||||
| Loss (gain) on disposal of assets | 4,402 | (2,478 | ) | 9,019 | 1,943 | |||||||||||
| Foreign exchange loss (gain) | (3,731 | ) | 11,573 | (6,982 | ) | 24,476 | ||||||||||
| Unrealized loss (gain) on derivatives | 3,920 | 2,109 | 6,884 | (8,231 | ) | |||||||||||
| Adjusted net loss | $ | (46,017 | ) | $ | (25,088 | ) | $ | (51,467 | ) | $ | (83,099 | ) | ||||
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(1) Stock-based compensation relates to the expense of prior equity plans triggered by the initial public offering. |
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(2) Expenses related to the initial public offering, including costs related to restructuring our compensation plan. |
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Reconciliation of Adjusted EBITDAR excluding special items to Adjusted Net Loss |
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(Expressed in thousands of United States dollars, except share and per share amounts) |
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(Unaudited) |
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| Three months ended | Nine months ended | |||||||||||||||
| January 31, 2013 | January 31, 2014 | January 31, 2013 | January 31, 2014 | |||||||||||||
| Adjusted EBITDAR excluding special items | $ | 120,478 | $ | 118,756 | $ | 347,343 | $ | 339,177 | ||||||||
| Aircraft lease costs and related costs | (52,163 | ) | (56,216 | ) | (149,390 | ) | (166,661 | ) | ||||||||
| Depreciation | (28,701 | ) | (35,407 | ) | (84,646 | ) | (106,158 | ) | ||||||||
| Restructuring | (4,890 | ) | — | (8,617 | ) | — | ||||||||||
| Unrealized gain (loss) on derivatives | 3,920 | 2,109 | 6,884 | (8,231 | ) | |||||||||||
| Interest on long-term debt | (33,991 | ) | (39,782 | ) | (93,949 | ) | (117,636 | ) | ||||||||
| Other financing charges | (10,852 | ) | (5,730 | ) | (22,435 | ) | (1,615 | ) | ||||||||
| Income tax expense | (44,303 | ) | (6,689 | ) | (50,606 | ) | (17,489 | ) | ||||||||
| Earnings from discontinued operations, net of tax | 212 | — | 1,024 | — | ||||||||||||
| Earnings (loss) attributable to non-controlling interest | $ | 4,273 | $ | (2,129 | ) | $ | 2,925 | $ | (4,486 | ) | ||||||
| Adjusted net loss | $ | (46,017 | ) | $ | (25,088 | ) | $ | (51,467 | ) | $ | (83,099 | ) | ||||
| Share count at January 31, 2014 | 77,519,484 | 77,519,484 | 77,519,484 | 77,519,484 | ||||||||||||