- The company remains on track toward full-year guidance(1).
- Third quarter 2023 revenues grew to $1.9 billion, an impressive 28% year-over-year increase, driven by higher deliveries and continued momentum in aftermarket business that generated $414 million in revenue for the quarter, an 11% year-over-year increase.
- Year-over-year operating profitability for the quarter rose on favorable margin performance and higher aftermarket contributions, with adjusted EBITDA(2) increasing by 36% to $285 million and an adjusted EBITDA margin(3) of 15.4%. Third quarter 2023 reported EBIT reached $197 million.
- Increased adjusted EBITDA(2) drove positive free cash flow(2) generation of $80 million. Available liquidity(2) stood strong at $1.2 billion. Reported cash flows from operating activities for the quarter were $179 million and net additions to PP&E and intangible assets for the quarter were $99 million. Cash and cash equivalents as at September 30, 2023 were $1.0 billion.
- Third quarter 2023 ended with a backlog(4) of $14.7 billion, unit book-to-bill(5) of 1.1 reflecting healthy demand environment.
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, Nov. 02, 2023 (GLOBE NEWSWIRE) -- Bombardier (BBD.B TO) today reported solid financial results for the third quarter 2023, reflecting continued progress towards reaching its 2023 targets(1) on all guided metrics.
“Bombardier’s third quarter results are nothing short of impressive, whether you look at margins, cash generation, overall revenues, order activity and more,” said Éric Martel, President and Chief Executive Officer, Bombardier.
“When we reshaped Bombardier, we set out to build a resilient business that performs in any marketplace. Today, our results demonstrate we are there,” added Martel. “Quarter after quarter, Bombardier has delivered convincing results and we are well on our way to meet 2023 deliveries target and further increase delivery output in the future.”
Strong deliveries and aftermarket growth drive remarkable revenue growth
Bombardier reported a revenue of $1.9 billion in the third quarter 2023, an impressive 28% year-over-year increase, fueled primarily by strong aircraft sales and aftermarket growth. The company delivered 31 aircraft in the third quarter 2023, up six aircraft compared to the same quarter last year, bringing it to a total of 82 deliveries for the year. This included the delivery of the 150th Global 7500 aircraft, the industry flagship that continues to impress and contribute to improved margins for the company. The backlog(4) remains strong at $14.7 billion, and the continued healthy demand resulted in a unit book-to-bill(5) of 1.1 for the quarter. Overall, the company is on track to reach its guidance(1) on deliveries for the year.
Revenues from Bombardier’s aftermarket business continued on their positive trajectory in the third quarter 2023 and grew 11% year-over-year to $414 million. The company has been reaping benefits from the significant expansion of its service centre footprint in 2022 and remains focused on increasing its share of this growing market.
Increased operating profitability and solid cash flow
In terms of profitability, total adjusted EBITDA(2) for the quarter reached $285 million, representing an adjusted EBITDA margin(3) of 15.4% and an impressive 100 basis points margin expansion over the same quarter last year. This growth continues to be underpinned by improving operating margins, including diligent cost management, and growing the aftermarket business.
Adjusted EBIT(2) totaled $193 million, a 54% year-over-year increase. Adjusted net income(2) has also significantly improved to a gain of $80 million compared with a loss of $2 million in the same quarter last year. Adjusted EPS(3) came in at $0.73 for the quarter, an improvement compared with a $0.10 loss in the same quarter last year.
The 36% year-over-year increase in adjusted EBITDA(2) on the back of more deliveries in the third quarter 2023 and a growing aftermarket also contributed to $80 million in free cash flow(2)(6) the company generated in this quarter, in line with expectations(1) to reach more than $250 million by the end of 2023.
| (1) | Forward-looking statement. See the forward-looking statements disclaimer herein and see the forward-looking statements assumptions on which the 2023 guidance is based in the Management Discussion & Analysis of the Corporation’s financial report for the fiscal year ended December 31, 2022 for further details on our 2023 guidance. | |
| (2) | 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 September 30, 2023 (Q3-2023 MD&A), for definitions of these metrics and reconciliations to the most comparable IFRS measures. | |
| (3) | 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 Q3-2023 MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures. | |
| (4) | Represents order backlog for both manufacturing and services. | |
| (5) | Defined as net new aircraft orders in units over aircraft deliveries in units. | |
| (6) | Only from continuing operations. | |
SELECTED RESULTS
| Results of the quarter | ||||||||||||
| Three-month periods ended September 30 | 2023 | 2022 | Variance | |||||||||
| Revenues | $ | 1,856 | $ | 1,455 | 28 | % | ||||||
| Adjusted EBITDA(1) | $ | 285 | $ | 210 | 36 | % | ||||||
| Adjusted EBITDA margin(2) | 15.4 | % | 14.4 | % | 100 bps | |||||||
| Adjusted EBIT(1) | $ | 193 | $ | 125 | 54 | % | ||||||
| Adjusted EBIT margin(2) | 10.4 | % | 8.6 | % | 180 bps | |||||||
| EBIT | $ | 197 | $ | 145 | 36 | % | ||||||
| EBIT margin(3) | 10.6 | % | 10.0 | % | 60 bps | |||||||
| Net income (loss) from continuing operations | $ | (37 | ) | $ | 27 | nmf | ||||||
| Net income (loss) | $ | (37 | ) | $ | 27 | nmf | ||||||
| Diluted EPS from continuing operations (in dollars) | $ | (0.47 | ) | $ | 0.20 | $ | (0.67 | ) | ||||
| Adjusted net income (loss)(1) | $ | 80 | $ | (2 | ) | nmf | ||||||
| Adjusted EPS (in dollars)(2) | $ | 0.73 | $ | (0.10 | ) | $ | 0.83 | |||||
| Cash flows from operating activities(4) | $ | 179 | $ | 122 | $ | 57 | ||||||
| Net additions to PP&E and intangible assets(4) | $ | 99 | $ | 70 | $ | 29 | ||||||
| Free cash flow(1)(4) | $ | 80 | $ | 52 | $ | 28 | ||||||
| As at | September 30, 2023 | December 31, 2022 | Variance | |||||||||
| Cash and cash equivalents | $ | 987 | $ | 1,291 | (24 | )% | ||||||
| Available liquidity(1) | $ | 1,249 | $ | 1,499 | (17 | )% | ||||||
| Order backlog (in billions of dollars)(5) | $ | 14.7 | $ | 14.8 | (1 | )% | ||||||
| bps: basis points | ||
| nmf: information not meaningful | ||
| (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 section of this press release and to the Non-GAAP and other financial measures section in the Q3-2023 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 Q3-2023 MD&A, for definitions of these metrics and reconciliations to the most comparable IFRS measures. | |
| (3) | Supplementary financial measure. Refer to the section entitled Caution regarding non-GAAP and other financial measures section of this press release for definitions of these metrics and to the Non-GAAP and other financial measures section of the Q3-2023 MD&A. | |
| (4) | Only from continuing operations. | |
| (5) | Represents order backlog for both manufacturing and services. | |
About Bombardier
Bombardier (BBD-B.TO) is a global leader in aviation, focused on designing, manufacturing, and servicing the world’s most exceptional business jets. Bombardier’s Challenger and Global aircraft families are renowned for their cutting-edge innovation, cabin design, performance, and reliability. Bombardier has a worldwide fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments, and private individuals. Bombardier aircraft are also trusted around the world in government and military special-mission roles leveraging Bombardier Defense’s proven expertise.
Headquartered in Greater Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, the UAE, Singapore, China and Australia.
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 Sustainable Aviation Fuel (SAF) utilizing the Book and Claim system visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com. Follow us on X (Twitter) @Bombardier.
Bombardier, Global, Global 7500, Challenger and Learjet are registered or unregistered trademarks of Bombardier Inc. or its subsidiaries.
For information
| 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 special items. Special items comprise items which do not reflect the Corporation’s 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, among others, the impact of restructuring charges, impact of business disposals and significant impairment charges and reversals. |
| Adjusted EBITDA | Adjusted EBIT plus amortization and impairment charges on PP&E and intangible assets. |
| Adjusted net income (loss) | Net income (loss) from continuing operations excluding special items, accretion on net retirement benefit obligations, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L 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 our 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 special items(1) which comprise items that do not reflect our core performance or where their separate presentation will assist users in understanding our results for the period. 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.
(1) Refer to the Consolidated results of operations section in the Q3-2023 MD&A for details regarding special items.
Adjusted EBITDA
Adjusted EBITDA is defined as the EBIT excluding special items(1), amortization and impairment 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.
(1) Refer to the Consolidated results of operations section in the Q3-2023 MD&A for details regarding special items.
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 to EBIT related to special items(1), net financing expense (income) and other adjusting items for the period. 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) Refer to the Consolidated results of operations section in the Q3-2023 MD&A for details regarding special items.
Free cash flow (usage)
Free cash flow 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 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 September 30 | Nine-month periods ended September 30 | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| EBIT | $ | 197 | $ | 145 | $ | 582 | $ | 331 | |||||||
| Special items(1) | (4 | ) | (20 | ) | (61 | ) | (30 | ) | |||||||
| Adjusted EBIT | $ | 193 | $ | 125 | $ | 521 | $ | 301 | |||||||
| Total revenues | $ | 1,856 | $ | 1,455 | $ | 4,984 | $ | 4,258 | |||||||
| Adjusted EBIT margin | 10.4 | % | 8.6 | % | 10.5 | % | 7.1 | % | |||||||
(1) Refer to the Consolidated results of operations section in the Q3-2023 MD&A for details regarding special items.
| Reconciliation of adjusted EBITDA to EBIT and computation of adjusted EBITDA margin | |||||||||||||||
| Three-month periods ended September 30 | Nine-month periods ended September 30 | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| EBIT | $ | 197 | $ | 145 | $ | 582 | $ | 331 | |||||||
| Amortization | 92 | 85 | 251 | 275 | |||||||||||
| Impairment charges on PP&E and intangible assets(1) | — | — | 3 | 2 | |||||||||||
| Special items excluding impairment charges on PP&E and intangible assets(1) | (4 | ) | (20 | ) | (64 | ) | (30 | ) | |||||||
| Adjusted EBITDA | $ | 285 | $ | 210 | $ | 772 | $ | 578 | |||||||
| Total revenues | $ | 1,856 | $ | 1,455 | $ | 4,984 | $ | 4,258 | |||||||
| Adjusted EBITDA margin | 15.4 | % | 14.4 | % | 15.5 | % | 13.6 | % | |||||||
(1) Refer to the Consolidated results of operations section in the Q3-2023 MD&A for details regarding special items.
| Reconciliation of adjusted net income (loss) to net income (loss) and computation of adjusted EPS | |||||||||||||||
| Three-month periods ended September 30 | |||||||||||||||
| 2023 | 2022 | ||||||||||||||
| (per share) | (per share) | ||||||||||||||
| Net income (loss) from continuing operations | $ | (37 | ) | $ | 27 | ||||||||||
| Adjustments to EBIT related to special items(1) | (4 | ) | $ | (0.04 | ) | (20 | ) | $ | (0.21 | ) | |||||
| Adjustments to net financing expense related to: | |||||||||||||||
| Net gain (loss) on certain financial instruments | 114 | 1.16 | (13 | ) | (0.14 | ) | |||||||||
| Accretion on net retirement benefit obligations | 7 | 0.08 | 8 | 0.09 | |||||||||||
| Changes in discount rates of provisions | — | — | (2 | ) | (0.02 | ) | |||||||||
| Gains on repayment of long-term debt(1) | — | — | (1 | ) | (0.01 | ) | |||||||||
| Other adjusting items | — | — | (1 | ) | (0.01 | ) | |||||||||
| Adjusted net income (loss) | 80 | (2 | ) | ||||||||||||
| Preferred share dividends, including taxes | (7 | ) | (8 | ) | |||||||||||
| Adjusted net income (loss) attributable to equity holders of Bombardier Inc. | $ | 73 | $ | (10 | ) | ||||||||||
| Weighted-average diluted number of common shares (in thousands) | 99,527 | 94,113 | |||||||||||||
| Adjusted EPS (in dollars) | $ | 0.73 | $ | (0.10 | ) | ||||||||||
(1) Refer to the Consolidated results of operations section in the Q3-2023 MD&A for details regarding special items.
| Reconciliation of adjusted EPS to diluted EPS (in dollars) | |||||||
| Three-month periods ended September 30 | |||||||
| 2023 | 2022 | ||||||
| Diluted EPS | $ | (0.47 | ) | $ | 0.20 | ||
| Impact of special(1) and other adjusting items | 1.20 | (0.30 | ) | ||||
| Adjusted EPS | $ | 0.73 | $ | (0.10 | ) | ||
(1) Refer to the Consolidated results of operations section in the Q3-2023 MD&A for details regarding special items.
| Reconciliation of adjusted net income (loss) to net income (loss) and computation of adjusted EPS | |||||||||||||||
| Nine-month periods ended September 30 | |||||||||||||||
| 2023 | 2022 | ||||||||||||||
| (per share) | (per share) | ||||||||||||||
| Net income (loss) from continuing operations | $ | 275 | $ | (369 | ) | ||||||||||
| Adjustments to EBIT related to special items(1) | (61 | ) | $ | (0.61 | ) | (30 | ) | $ | (0.32 | ) | |||||
| Adjustments to net financing expense related to: | |||||||||||||||
| Net loss on certain financial instruments | 2 | 0.02 | 272 | 2.87 | |||||||||||
| Accretion on net retirement benefit obligations | 19 | 0.19 | 23 | 0.24 | |||||||||||
| Changes in discount rates of provisions | — | — | (2 | ) | (0.02 | ) | |||||||||
| Losses (gains) on repayment of long-term debt(1) | 38 | 0.38 | (4 | ) | (0.04 | ) | |||||||||
| Adjusted net income (loss) | 273 | (110 | ) | ||||||||||||
| Preferred share dividends, including taxes | (23 | ) | (22 | ) | |||||||||||
| Adjusted net income (loss) attributable to equity holders of Bombardier Inc. | $ | 250 | $ | (132 | ) | ||||||||||
| Weighted-average diluted number of common shares (in thousands) | 99,295 | 94,650 | |||||||||||||
| Adjusted EPS (in dollars) | $ | 2.52 | $ | (1.39 | ) | ||||||||||
(1) Refer to the Consolidated results of operations section in the Q3-2023 MD&A for details regarding special items.
| Reconciliation of adjusted EPS to diluted EPS (in dollars) | |||||||
| Nine-month periods ended September 30 | |||||||
| 2023 | 2022 | ||||||
| Diluted EPS | $ | 2.54 | $ | (4.13 | ) | ||
| Impact of special(1) and other adjusting items | (0.02 | ) | 2.74 | ||||
| Adjusted EPS | $ | 2.52 | $ | (1.39 | ) | ||
(1) Refer to the Consolidated results of operations section in the Q3-2023 MD&A for details regarding special items.
| Reconciliation of free cash flow (usage) to cash flows from operating activities | |||||||||||||||
| Three-month periods ended September 30 | Nine-month periods ended September 30 | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Cash flows from operating activities - continuing operations | $ | 179 | $ | 122 | $ | (117 | ) | $ | 761 | ||||||
| Net additions to PP&E and intangible assets | (99 | ) | (70 | ) | (272 | ) | (195 | ) | |||||||
| Free cash flow (usage) from continuing operations | $ | 80 | $ | 52 | $ | (389 | ) | $ | 566 | ||||||
| Reconciliation of available liquidity to cash and cash equivalents | |||||||
| As at | September 30, 2023 | December 31, 2022 | |||||
| Cash and cash equivalents | $ | 987 | $ | 1,291 | |||
| Undrawn amounts under available revolving credit facility(1) | 262 | 208 | |||||
| Available liquidity | $ | 1,249 | $ | 1,499 | |||
| (1) | 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 September 30, 2023 and the availability as at such date was $262 million based on the collateral available, 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 transition to growth cycle 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; both the repercussions of the COVID-19 pandemic and the impact of the ongoing military conflict between Ukraine and Russia on the foregoing and the effectiveness of plans and measures we have implemented in response thereto; and expectations regarding the strength of the market, inflationary and supply chain pressures, and ongoing economic recovery in the aftermath of the
COVID-19 pandemic.
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 of recurring cost savings and executing on our cost reduction plan; optimization of our real estate portfolio, including through the sale or other transactions in respect of real estate assets on favorable terms; 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 quarter ended March 31, 2023. Given the impact of the changing circumstances surrounding both the repercussions of the COVID-19 pandemic and the ongoing military conflict between Ukraine and Russia, including because of the emergence of COVID-19 variants and the imposition of financial and economic sanctions and export control limitations, 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 inherently more uncertainty associated with the Corporation’s assumptions as compared to prior years.
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: risks associated with general economic conditions; operational risks (such as risks related to development of new business; 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; 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; 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 reliance on government support); risks related to regulatory and legal proceedings; business environment risks (such as risks associated with the financial condition of business aircraft customers; trade policy; increased competition; political instability; 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 third quarter ended September 30, 2023 and in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2022. Any one or more of the foregoing factors may be exacerbated by the repercussions of the COVID-19 pandemic and the ongoing military conflict between Ukraine and Russia, and 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.
