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12 Aug 15. CAE reported revenue of $557.0m for the first quarter of fiscal year 2016, representing a 6% increase from the first quarter last year. First quarter net income attributable to equity holders from continuing operations was $44.9m ($0.17 per share) vs. $43.8m ($0.17 per share) last year.
Excluding $5.7m (net after-tax) restructuring costs incurred this quarter related to the transformation of CAE’s production processes and product offering currently underway, net income before restructuring costs was $50.6m ($0.19 per share), up 16% from the same period last year. All financial information is in Canadian dollars.
“We’re off to a solid start to the fiscal year with a good first quarter performance and a new process improvement program underway to further strengthen our competitive position,” said Marc Parent, CAE’s President and Chief Executive Officer. “In Civil we had a higher margin on higher utilization of our training network and we had a double-digit increase in operating income over last year. We also had higher operating income in Defence, with robust order activity supporting our outlook for growth. We maintained our strong financial position, and I am pleased to announce that CAE’s Board of Directors has approved a half cent increase to CAE’s quarterly dividend, which becomes 7.5 cents per share, effective September 30, 2015. This marks our fifth increase in as many years and underscores our confidence in the business.”
Civil Aviation Training Solutions (Civil)
First quarter Civil revenue was $336.2m, up 9% compared to the same quarter last year. First quarter operating income was $57.0m (17.0% of revenue), up 15% compared to the first quarter last year. Training centre utilization was 73% for the quarter.
During the quarter Civil signed training solutions agreements with customers including Southwest Airlines to re-equip its entire full-flight simulator (FFS) fleet with CAE Tropos™ 6000XR visual systems and it sold eight FFSs to airlines worldwide involving a range of Airbus, Boeing and Bombardier aircraft types. Civil extended its Multi-crew Pilot License (MPL) First Officer Program with Japan Airlines for cadet training, and also signed and renewed long term agreements with airlines including EasyJet, EVA Air and Air China for First Officer and Commercial Pilot License training. In total, Civil received $288.3m in orders this quarter for a book-to-sales ratio of 0.86x. The ratio for the last 12 months was 1.09x. First quarter Civil backlog was $2.8bn, including CAE’s share of joint ventures.
Defence and Security (Defence)
Revenue for Defence in the first quarter was $196.9m, stable compared to the first quarter last year. First quarter operating income was $23.6m (12.0% of revenue), up 8% compared to $21.9m (11.1% of revenue) last year.
During the quarter, Defence signed notable contracts involving enduring platforms and integrated training systems. They include a comprehensive solution to train all future U.S. Army fixed-wing pilots, a contract from Boeing to build P-8A Poseidon operational flight trainers for the U.S. Navy, and a contract from Airbus Defence and Space for UH-72A Lakota flight training devices for the U.S. Army. As part of the U.S. foreign military sale program, Defence was also awarded a contract by the U.S. Navy for MH-60R Seahawk helicopter trainers for the Royal Australian Navy. In total, Defence received $207.3m in orders this quarter, representing a book-to-sales ratio of 1.05x. The ratio for the last 12 months was 0.95x. First quarter Defence backlog was $2.6bn, including CAE’s share of joint ventures and unfunded backlog.
Healthcare
Revenue for Healthcare was $23.9m in the first quarter, up 23% compared to the same