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10 Aug 16. CAE today reported revenue of $651.6m for the first quarter of fiscal year 2017, representing 17% growth over the first quarter last year. First quarter net income attributable to equity holders from continuing operations was $68.7m ($0.25 per share) compared to $44.9m ($0.17 per share) last year. First quarter net income before specific items(4) was $70.9m, or $0.26 per share, which on the same basis, compares to $50.6m ($0.19 per share) last year. Specific items this quarter of $2.2m (net after-tax) mainly involve restructuring, integration and acquisition costs related to the purchase of Lockheed Martin Commercial Flight Training (LMCFT). All financial information is in Canadian dollars.
“We had a good performance in the first quarter, with double-digit revenue and operating income growth in both Civil and Defence segments, and strong order intake contributing to a new record $6.5bn backlog,” said Marc Parent, CAE’s President and Chief Executive Officer. “Underscoring our confidence in CAE’s outlook for long term sustainable growth and our commitment to enhancing shareholder returns, I am pleased to announce that CAE’s Board of Directors has approved a half cent increase to CAE’s quarterly dividend, which becomes 8 cents per share, effective September 30, 2016.”
Civil Aviation Training Solutions (Civil)
First quarter Civil revenue was $371.6m, up 11% compared to the same quarter last year, and segment operating income was $63.8m (17.2% of revenue), up 12% compared to the first quarter last year. First quarter Civil training centre utilization(6) was 79%.
During the quarter Civil signed a series of training solutions contracts valued at $397.2 m, including the sale of nine full-flight simulators. Also during the quarter, CAE concluded the acquisition of LMCFT, including the integration of training assets and manufacturing operations. We also reached a strategic milestone with the launch of the validation phase of our Next Generation Training System, which is expected to improve training quality and efficiency through the integration of untapped data-driven insights into training.
The Civil book-to-sales(ratio was 1.07x for the quarter and 1.22x for the last 12 months. The Civil backlog at the end of the quarter was $3.2bn.
Defence and Security (Defence)
First quarter Defence revenue was $257.3m, up 31% compared to the same quarter last year, and segment operating income was $28.4m (11.0% of revenue), up 20% compared to the first quarter last year.
During the quarter, Defence won training solutions contracts including a Training Systems Integration (TSI) program to provide a comprehensive Naval Training Centre for the United Arab Emirates (UAE) Navy and another to provide the UAE Joint Aviation Command with a suite of helicopter simulators and training devices. These programs underscore CAE’s ability to lead comprehensive TSI programs in both the Naval and Air domains. In total, Defence received $283.1 m in orders this quarter, representing a book-to-sales ratio of 1.10x. The ratio for the last 12 months was 1.03x. The Defence backlog at the end of the quarter was $3.3 billion.
First quarter Healthcare revenue was $22.7m compared to $23.9m in the same quarter last year, and segment operating loss was $0.1m compared to segment operating income $0.6m in the first quarter last year.
During the quarter, CAE Healthcare extended a customized training solution in the medical device segment and it sold a range of patient, ultrasound and interventional (surgical) simulators to educational and medical device customers in North America, Africa and Asia. Healthcare also signed a distribution agreement with Simulaids to distribute CAE’s line of Blue Ph