Chorus Aviation Announces Second Quarter 2021 Financial Results

"Overall, I'm pleased with how we're navigating through this ongoing crisis. We've created additional balance sheet flexibility by significantly reducing our adjusted net debt, and we're successfully remarketing off-lease aircraft by putting these assets to good work with new customers," concluded Mr. Randell.

Liquidity

As of June 30, 2021, Chorus' liquidity was $177.9 million including cash of $142.4 million and $35.5 million of available room on its operating credit facility. Liquidity increased from the first quarter of 2021 by $6.6 million due to:

• positive cash flows from operations of $15.0 million;
• receipt of the net proceeds from the 2021 capital raise of $138.1 million;
• increase in cash due to changes in both restricted cash and security deposits and maintenance reserves of $18.8 million; offset by
• additions to property and equipment of $10.6 million primarily arising from investments in the reconfiguration of off-lease and re-leased aircraft;
• debt repayments of $154.7 million related to scheduled repayments of $49.1 million, early repayments of amortizing term loans on six aircraft totaling $71.7 million and the repayment of all deferred amounts owing under aircraft loans with its largest lender in the amount of $33.9 million.

Repayment under these secured debt facilities brought the carrying value of Regional Aircraft Leasing segment's ('RAL') nine unencumbered aircraft to approximately $140.0 million (US $110.0 million).

At June 30, 2021, the Controllable Cost Guardrail receivable was $10.2 million over the agreed cap of $20.0 million and was paid in July 2021 in accordance with the 2021 CPA Amendments.

Second Quarter Summary

In the second quarter of 2021, Chorus reported adjusted EBITDA of $76.9 million, a decrease of $14.2 million relative to the second quarter of 2020.

The RAL segment's adjusted EBITDA decreased by $9.4 million primarily due to lower lease revenue attributable to the continued impact of COVID-19 on results related to off-lease aircraft, negotiated amendments to certain lease agreements including extensions, and lower earnings due to a lower US dollar exchange rate partially offset by additional aircraft earning lease revenue.

The Regional Aviation Services ('RAS') segment's adjusted EBITDA decreased by $4.8 million. The second quarter results were impacted by:

• a decrease in Fixed Margin of $2.4 million in accordance with the CPA;
• a decrease in capitalization of major maintenance overhauls on owned Covered Aircraft operated under the CPA of $0.5 million; and
• an increase in general administrative expenses; offset by
• an increase in other revenue due to an increase in third-party maintenance, repair and overhaul ('MRO') activity and contract flying; and
• an increase in aircraft leasing revenue under the CPA of $0.3 million primarily due to nine incremental CRJ900s offset by the removal of the Dash 8-300 fleet and lower earnings of $3.7 million due to a lower US dollar exchange rate.

Adjusted net income was $11.4 million for the quarter, a decrease of $10.3 million due to:

• a $14.2 million decrease in adjusted EBITDA as previously described;
• an increase in net interest costs of $2.6 million primarily related to the 6.00% Unsecured Convertible Debentures issued in April 2021 and increased indebtedness under credit facilities added in the second quarter of 2020; and
• a $1.4 million increase in adjusted income tax expense; offset by
• a decrease in depreciation expense of $3.7 million;
• a decrease of $2.2 million in realized foreign exchange and unrealized foreign exchange losses on working capital; and
• an increase in gain on property and equipment of $2.1 million.

Net income decreased $7.6 million over the prior period due to:

• the previously noted decrease in adjusted net income of $10.3 million;
• a reduction in net unrealized foreign exchange gains on long-term debt of $10.7 million; and
• a decrease in income tax recoveries on adjusted items of $3.0 million; offset by
• a decrease in impairment provisions of $9.5 million in the RAL segment;
• a reduction in net lease repossession costs of $5.3 million;
• a reduction to the one-time restructuring costs related to the 2021 CPA Amendments of $1.1 million; and
• decreased employee separation program costs of $0.4 million.

Year-to-date Summary

Chorus reported adjusted EBITDA of $160.9 million for 2021, a decrease of $18.7 million relative to the same prior year period.

The RAL segment's adjusted EBITDA decreased by $18.9 million primarily due to lower lease revenue attributable to the continued impact of COVID-19 on results related to off-lease aircraft, negotiated amendments to certain lease agreements including extensions, an increase in the expected credit loss provision of $3.4 million and lower earnings due to a lower US dollar exchange rate partially offset by additional aircraft earning lease revenue.

The RAS segment's adjusted EBITDA was consistent with the same period last year. The period-over-period results were impacted by:

• a decrease in stock-based compensation of $7.0 million due to a decrease in the Share price inclusive of the change in fair value of the Total Return Swap;
• an increase in aircraft leasing revenue under the CPA of $2.7 million primarily due to nine incremental CRJ900s, partially offset by the removal of the Dash 8-300 fleet and lower earnings of $5.5 million due to a lower US dollar exchange rate;
• an increase in other revenue due to an increase in third-party MRO activity and contract flying; offset by
• an increase in general administrative expenses;
• a decrease in Fixed Margin of $4.8 million in accordance with the CPA; and
• a decrease in capitalization of major maintenance overhauls on owned Covered Aircraft operated under the CPA of $3.0 million.

Adjusted net income was $27.1 million year-to-date, a decrease over 2020 of $18.3 million due to:

• a $18.7 million decrease in adjusted EBITDA as previously described; and
• an increase in net interest costs of $7.3 million primarily related to the 6.00% Unsecured Convertible Debentures issued in April 2021, increased indebtedness under credit facilities added in the second quarter of 2020 and additional debt related to aircraft purchased since the second quarter of 2020; offset by
• a decrease in depreciation expense of $4.0 million;
• an increase in gain on property and equipment of $2.1 million;
• a decrease of $1.0 million in realized foreign exchange and unrealized foreign exchange losses on working capital; and
• a $0.6 million decrease in adjusted income tax expense.

Net income decreased by $28.4 million over the prior period due to:

• the previously noted decrease in adjusted net income of $18.3 million;
• one-time restructuring costs related to the 2021 CPA Amendments of $80.7 million; and
• an increase in net lease repossession costs of $1.8 million; offset by
• a change in net unrealized foreign exchange on long-term debt of $34.8 million;
• an increase in income tax recoveries on adjusted items of $18.3 million;
• a decrease in impairment provisions of $15.5 million in the RAL segment; and
• decreased employee separation program costs of $3.8 million, exclusive of the cost attributable to the pilot early retirement program.

Consolidated Financial Analysis

(unaudited) (expressed in thousands of Canadian dollars)	Three months ended June 30,				Six months ended June 30,
	2021	2020	Change	Change	2021	2020	Change	Change
	$	$	$	%	$	$	$	%
Operating revenue	199,873	184,006	15,867	8.6	402,360	533,937	(131,577)	(24.6)
Operating expenses	160,460	150,323	10,137	6.7	399,843	453,562	(53,719)	(11.8)
Operating income	39,413	33,683	5,730	17.0	2,517	80,375	(77,858)	(96.9)
Net interest expense	(24,017)	(21,368)	(2,649)	(12.4)	(48,873)	(41,575)	(7,298)	(17.6)
Foreign exchange gain (loss)	10,018	18,467	(8,449)	(45.8)	14,772	(20,965)	35,737	170.5
Gain (loss) on property and equipment	1,716	(390)	2,106	540.0	1,716	(374)	2,090	558.8 Werbung Mehr Nachrichten zum SCHWAB INTERMEDIATE US TRSRY E kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 26.04.24 - PR Newswire Datang Intnl Pwr Gen - CONNECTED TRANSACTION ANNOUNCEMENT 26.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Shanta Gold Ltd Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59