CHC Posts Seventh Consecutive Quarter of Increased Revenue, EBITDAR in Fiscal Q2
Vancouver, British Columbia, Canada ()
Revenue and earnings were up in CHC Helicopter's fiscal second-quarter 2013, as the company continues to transform itself into the most capable and efficient global helicopter-services operator.
CHC's revenue for the quarter, which ended Oct. 31, increased 6 percent from the same period a year ago, to $447 million. It was the seventh straight quarter of higher revenue and earnings since the company started its ambitious transformation. Net earnings were $7 million, compared with a net loss of $6 million in the FY12 second quarter.
Earnings before interest, taxes, depreciation, amortization and aircraft rental costs (EBITDAR), were $126 million, up 17 percent from the year-ago quarter. EBITDAR is CHC's primary measure of operational profitability.
|(U.S.$ in millions)||FY13||FY12||Change(ii)||FY12||FY11||Change(ii)|
(i) Non-GAAP financial measure. See reconciliation to applicable GAAP measure below.
(ii) All growth rates in this release are year-over-year unless otherwise noted.
The continued improvement spanned both CHC's flying and Heli-One business segments. Flying revenue rose 5 percent and EBITDAR grew 13 percent. For Heli-One, which provides maintenance, repair and overhaul (MRO) services, third-party customers sales were 11 percent higher and EBITDAR increased 48 percent.
William Amelio, CHC's president and chief executive officer, said the second quarter showed how the company is transforming its tools, systems and processes. Those changes are contributing to improving operating performance.
"Our people are also making sure we deliver on our purpose: to provide unmatched helicopter services that enable customers to go further, do more and come home safely," said Mr. Amelio. "The second quarter provided two vivid illustrations – one involving superb in-flight management of a crippled aircraft, the other an extraordinary evacuation of more than 270 customers from a North Sea oil-production platform that was in distress.
"Our objective isn't simply for CHC to be the largest and most profitable helicopter-services company. We're determined to be the best at all that we do for our customers."
Helicopter Services (flying):
- Flying results were driven by revenue and EBITDAR gains in the Americas (mainly Brazil), Western North Sea (United Kingdom) and Africa Euro-Asia. Sales were also up in Asia-Pacific.
- Significant wins in the period included new contracts with Marathon in the U.K., Eni in Australia and Petronas in Mozambique.
- During the quarter, Atlantic Aviation—a partnership between Jagal Group and CHC—received its long-awaited Air Operating Certificate in Nigeria. Atlantic Aviation has twin-engine Sikorsky S76C+ medium-lift helicopters to begin its support of Nigeria's fast-growing oil-and-gas industry.
- Among notable contracts secured in the second quarter, AAR, a global aerospace and defense supplier, selected Heli-One to complete 20 engine overhauls.
- During the quarter the company delivered the first of three customized Super Puma aircraft commissioned by the Los Angeles County Sheriff's Department.
- Heli-One further broadened its range of services by adding four-year inspections of AW139s to capabilities at the Stavanger, Norway, operation.
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 division. The company is headquartered in Vancouver and operates more than 240 aircraft in about 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 presentation, 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 information. 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: exchange rate fluctuations, industry exposure, inflation, inability to enter into new contracts or the loss of existing contracts, inability to maintain government issued licenses, inability to obtain necessary aircraft or insurance, competition, political, economic and regulatory uncertainty, loss of key personnel, work stoppages due to labor disputes, accidents, mechanical failures, regulatory actions and future material acquisitions. 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 information, 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 other filings, in particular any discussion of risk factors or forward-looking statements, which are filed with the SEC and available 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.