Magellan Aerospace Corporation Announces Financial Results
|
Three month period ended
|
Twelve month period ended
|
||||||||||
Expressed in thousands of Canadian dollars, except per share amounts |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
||||||
Revenues |
223,581 |
193,110 |
15.8% |
879,617 |
764,580 |
15.0% |
||||||
Gross Profit (Loss) |
23,776 |
(893) |
nm |
88,991 |
35,065 |
153.8% |
||||||
Net (Loss) Income |
(266) |
(20,770) |
nm |
9,247 |
(21,692) |
nm |
||||||
Net (Loss) Income per Share |
(0.00) |
(0.36) |
nm |
0.16 |
(0.38) |
nm |
||||||
Adjusted EBITDA |
16,396 |
(4,772) |
nm |
72,983 |
35,540 |
105.4% |
||||||
Adjusted EBITDA per Share |
0.29 |
(0.08) |
nm |
1.27 |
0.62 |
104.8% |
This news release contains certain forward-looking statements that reflect the current views and/or expectations of the Corporation with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions, which may cause actual results to be materially different from those expressed or implied. The Corporation assumes no future obligation to update these forward-looking statements except as required by law.
This news release presents certain non-IFRS financial measures to assist readers in understanding the Corporation's performance. Non-IFRS financial measures are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”). Throughout this news release, reference is made to EBITDA (defined as earnings before interest, income taxes, depreciation and amortization) and Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, goodwill impairment and restructuring), which the Corporation considers to be indicative measures of operating performance and a metric to evaluate profitability. EBITDA and Adjusted EBITDA are not generally accepted earnings measures and should not be considered as alternatives to net income (loss) or cash flows as determined in accordance with IFRS. As there is no standardized method of calculating this measure, the Corporation’s EBITDA and Adjusted EBITDA may not be directly comparable with similarly titled measures used by other companies.
1. Overview
A summary of Magellan’s business and significant updates
Magellan is a diversified supplier of components to the aerospace industry. Through its wholly owned subsidiaries, controlled entity and joint venture, Magellan designs, engineers and manufactures aeroengine and aerostructure components for aerospace markets, including advanced products for defence and space markets, and complementary specialty products. The Corporation also supports the aftermarket through supply of spare parts as well as performing repair and overhaul services.
Magellan operates substantially all of its activities in one reportable segment, Aerospace, which is viewed as one segment by the chief operating decision-makers for the purpose of resource allocations, assessing performance and strategic planning. The Aerospace segment includes the design, development, manufacture, repair and overhaul, and sale of systems and components for defence and civil aviation.
Business Update
On
For additional information, please refer to the “Management’s Discussion and Analysis” section of the Corporation’s 2023 Annual Report available on www.sedarplus.ca.
2. Results of Operations
A discussion of Magellan’s operating results for the fourth quarter ended
The Corporation reported revenue in the fourth quarter of 2023 of
Consolidated Revenue
|
Three month period |
Twelve month period |
||||||||||
|
ended |
ended |
||||||||||
Expressed in thousands of dollars |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
||||||
|
90,261 |
81,953 |
10.1% |
364,275 |
329,638 |
10.5% |
||||||
|
59,309 |
48,932 |
21.2% |
234,234 |
190,011 |
23.3% |
||||||
|
74,011 |
62,225 |
18.9% |
281,108 |
244,931 |
14.8% |
||||||
Total revenue |
223,581 |
193,110 |
15.8% |
879,617 |
764,580 |
15.0% |
Revenue in
Revenue in
European revenue in the fourth quarter of 2023 increased 18.9% compared to the corresponding period in 2022 driven by higher narrow body aircraft revenues.
Gross Profit (Loss)
|
Three month period |
Twelve month period |
||||||||||
|
ended |
ended |
||||||||||
Expressed in thousands of dollars |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
||||||
Gross profit (loss) |
23,776 |
(893) |
nm |
88,991 |
35,065 |
153.8% |
||||||
Percentage of revenue |
10.6% |
(0.5%) |
|
10.1% |
4.6% |
|
Gross profit of
Administrative and General Expenses
|
Three month period |
Twelve month period |
||||||||||
|
ended |
ended |
||||||||||
Expressed in thousands of dollars |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
||||||
Administrative and general expenses |
14,967 |
11,140 |
34.4% |
57,296 |
48,690 |
17.7% |
||||||
Percentage of revenue |
6.7% |
5.8% |
|
6.5% |
6.4% |
|
Administrative and general expenses as a percentage of revenue was 6.7% for the fourth quarter of 2023, higher than the same period of 2022 percentage of revenue of 5.8% due to higher salary and benefit costs and information technology spending.
Restructuring
|
Three month period |
Twelve month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
2023 |
2022 |
2023 |
2022 |
||||
Workforce reduction |
18 |
1,930 |
458 |
1,930 |
||||
Closure costs |
400 |
(5) |
1,280 |
199 |
||||
Impairment of property, plant and equipment |
− |
1,772 |
− |
1,772 |
||||
Restructuring |
418 |
3,697 |
1,738 |
3,901 |
Restructuring costs of
Other
|
Three month period |
Twelve month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
2023 |
2022 |
2023 |
2022 |
||||
Foreign exchange loss (gain) |
3,048 |
3,817 |
4,865 |
(2,251) |
||||
Loss on disposal of property, plant and equipment |
54 |
322 |
17 |
22 |
||||
Gain on disposal of investment properties |
(20) |
− |
(20) |
− |
||||
(Gain) loss on pension settlement |
(211) |
631 |
433 |
631 |
||||
Other |
39 |
(162) |
39 |
(162) |
||||
Total Other |
2,910 |
4,608 |
5,334 |
(1,760) |
Other for the fourth quarter of 2023 included a
Interest Expense
|
Three month period |
Twelve month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
2023 |
2022 |
2023 |
2022 |
||||
Interest expense on bank indebtedness and long-term debt |
542 |
76 |
1,237 |
423 |
||||
Accretion charge for borrowings, lease liabilities and long-term debt |
424 |
488 |
2,221 |
2,314 |
||||
Discount on sale of accounts receivable |
58 |
3 |
231 |
101 |
||||
Total interest expense |
1,024 |
567 |
3,689 |
2,838 |
Total interest expense of
Provision for Income Taxes
|
Three month period |
Twelve month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
2023 |
2022 |
2023 |
2022 |
||||
Current income tax expense (recovery) |
1,546 |
(1,166) |
11,974 |
5,780 |
||||
Deferred income tax expense (recovery) |
3,177 |
1,031 |
(287) |
(2,692) |
||||
Income tax expense (recovery) |
4,723 |
(135) |
11,687 |
3,088 |
||||
Effective tax rate |
106.0% |
0.6% |
55.8% |
(16.6%) |
Income tax expense for the fourth quarter ended
3. Selected Quarterly Financial Information
A summary view of Magellan’s quarterly financial performance
|
|
2023 |
|
|
|
2022 |
||||||||||
Expressed in millions of dollars, except per share amounts |
|
|
|
|
|
|
|
|
||||||||
Revenues |
223.5 |
213.0 |
219.7 |
223.4 |
193.1 |
191.1 |
192.7 |
187.7 |
||||||||
Income (loss) income before taxes |
4.4 |
4.7 |
6.1 |
5.7 |
(20.9) |
2.5 |
1.2 |
(1.4) |
||||||||
Net (loss) income |
(0.3) |
3.7 |
1.9 |
3.9 |
(20.8) |
0.6 |
0.5 |
(2.0) |
||||||||
Net (loss) income per share |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted |
(0.00) |
0.06 |
0.03 |
0.07 |
(0.36) |
0.01 |
0.01 |
(0.04) |
||||||||
EBITDA1 |
15.9 |
17.7 |
19.3 |
18.3 |
(8.5) |
14.7 |
14.0 |
11.4 |
||||||||
Adjusted EBITDA1 |
16.4 |
18.5 |
19.5 |
18.6 |
(4.8) |
14.8 |
14.0 |
11.5 |
||||||||
1 EBITDA and Adjusted EBITDA are not IFRS financial measures. Please see Section 4 the “Reconciliation of Net Income to EBITDA and Adjusted EBITDA” section for more information. |
Revenues and net loss in the quarter were impacted by the movements of the Canadian dollar relative to
Revenues and net income in 2022 were largely impacted by the continued effects from the COVID-19 pandemic, driving reduced volumes and supply chain disruptions. In addition, continued high inflation on material, supplies, utilities and labour impacted the results in 2022 and still had an impact in 2023. Since the first quarter of 2022, the Corporation has had a modest upward trend in revenue as global domestic air travel continues to recover to pre COVID-19 levels. In the fourth quarter of 2022, the Corporation continued the restructuring efforts in
4. Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
A description and reconciliation of certain non-IFRS measures used by management
In addition to the primary measures of earnings and earnings per share (basic and diluted) in accordance with IFRS, the Corporation includes EBITDA (earnings before interest, income taxes and depreciation and amortization) and Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, goodwill impairment and restructuring) in this news release. The Corporation has provided this measure because it believes this information is used by certain investors to assess financial performance and that EBITDA and Adjusted EBITDA are useful supplemental measures as they provide an indication of the results generated by the Corporation’s principal business activities prior to consideration of how these activities are financed and how the results are taxed in the various jurisdictions. Each component of this measure is calculated in accordance with IFRS, but EBITDA and Adjusted EBITDA are not recognized measures under IFRS, and the Corporation’s method of calculation may not be comparable with that of other companies. Accordingly, EBITDA and Adjusted EBITDA should not be used as alternatives to net income as determined in accordance with IFRS or as alternatives to cash provided by or used in operations.
|
Three month period |
Twelve month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
2023 |
2022 |
2023 |
2022 |
||||
Net (loss) income |
(266) |
(20,770) |
9,247 |
(21,692) |
||||
Add back: |
|
|
|
|
||||
Interest |
1,024 |
567 |
3,689 |
2,838 |
||||
Taxes |
4,723 |
(135) |
11,687 |
3,088 |
||||
Depreciation and amortization |
10,497 |
11,869 |
46,622 |
47,405 |
||||
EBITDA |
15,978 |
(8,469) |
71,245 |
31,639 |
||||
Add back: |
|
|
|
|
||||
Restructuring |
418 |
3,697 |
1,738 |
3,901 |
||||
Adjusted EBITDA |
16,396 |
(4,772) |
72,983 |
35,540 |
Adjusted EBITDA in the fourth quarter of 2023 increased
5. Liquidity and Capital Resources
A discussion of Magellan’s cash flow, liquidity, credit facilities and other disclosures
The Corporation’s liquidity needs can be met through a variety of sources including cash on hand, cash provided by operations, short-term borrowings from its credit facility and accounts receivable securitization program, and long-term debt and equity capacity. Principal uses of cash are for operational requirements, capital expenditures, common share repurchases and dividend payments. Based on current funds available and expected cash flow from operating activities, management believes that the Corporation has sufficient funds available to meet its liquidity requirements at any point in time. However, if cash from operating activities is lower than expected or capital projects exceed current estimates, or if the Corporation incurs major unanticipated expenses, it may be required to seek additional capital in the form of debt or equity or a combination of both.
Cash Flow from Operations
|
Three month period |
Twelve month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
2023 |
2022 |
2023 |
2022 |
||||
(Increase) decrease in accounts receivable |
(10,507) |
30,282 |
(41,962) |
(3,223) |
||||
Decrease (increase) in contract assets |
6,113 |
(920) |
(4,120) |
2,437 |
||||
Increase in inventories |
(445) |
(4,203) |
(32,020) |
(15,789) |
||||
(Increase) decrease in prepaid expenses and other |
(111) |
524 |
(382) |
(437) |
||||
Increase (decrease) in accounts payable, accrued liabilities and provisions |
6,444 |
(913) |
9,502 |
28,727 |
||||
Increase (decrease) in contract liabilities |
1,593 |
(2,155) |
(8,242) |
18,503 |
||||
Changes in non-cash working capital balances |
3,087 |
22,613 |
(77,224) |
30,218 |
||||
Cash provided by (used in) operating activities |
18,766 |
18,784 |
(17,300) |
58,540 |
For the three months ended
Investing Activities
|
Three month period |
Twelve month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
2023 |
2022 |
2023 |
2022 |
||||
Purchase of property, plant and equipment |
(9,616) |
(8,691) |
(19,166) |
(23,494) |
||||
Proceeds from disposal of property, plant and equipment |
27 |
117 |
212 |
607 |
||||
Proceeds from disposal of investment property |
354 |
─ |
354 |
─ |
||||
Increase in intangibles and other assets |
(2,374) |
(588) |
(5,094) |
(969) |
||||
Cash used in investing activities |
(11,609) |
(9,162) |
(23,694) |
(23,856) |
Investing activities used
Financing Activities
|
Three month period |
Twelve month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
2023 |
2022 |
2023 |
2022 |
||||
(Decrease) increase in bank indebtedness |
(3,087) |
─ |
15,463 |
─ |
||||
Decrease in long-term debt |
(540) |
(539) |
(2,136) |
(2,047) |
||||
Lease liability payments |
(1,379) |
(1,376) |
(5,637) |
(5,619) |
||||
Increase (decrease) in long-term liabilities and provisions |
153 |
401 |
(16) |
(225) |
||||
Increase (decrease) in borrowings subject to specific conditions, net |
464 |
─ |
691 |
(1,327) |
||||
Common share repurchases |
(569) |
(828) |
(1,622) |
(2,062) |
||||
Common share dividends |
(1,431) |
(1,437) |
(5,734) |
(14,994) |
||||
Cash (used in) provided by financing activities |
(6,389) |
(3,779) |
1,009 |
(26,274) |
The Corporation used
On
As at
Dividends
For the year ended
Subsequent to
Normal Course Issuer Bid
On
In 2023, 214,937 shares were purchased for cancellation for
Outstanding Share Information
The authorized capital of the Corporation consists of an unlimited number of preference shares, issuable in series, and an unlimited number of common shares. As at
6. Financial Instruments
A summary of Magellan’s financial instruments
Derivative Contracts
The Corporation operates internationally, which gives rise to a risk that its income, cash flows and shareholders’ equity may be adversely impacted by fluctuations in foreign exchange rates. Currency risk arises because the amount of the local currency receivable or payable for transactions denominated in foreign currencies may vary due to changes in exchange rates and because the non-Canadian dollar denominated financial statements of the Corporation’s subsidiaries may vary on consolidation into the reporting currency of Canadian dollars. The Corporation from time to time may use derivative financial instruments to help manage foreign exchange risk with the objective of reducing transaction exposures and the resulting volatility of the Corporation’s earnings. The Corporation does not trade in derivatives for speculative purposes. Under these contracts, the Corporation is obligated to purchase specified amounts at predetermined dates and exchange rates. These contracts are matched with anticipated cash flows in
Maturity |
Notional amount |
Floor |
Ceiling |
Carrying value |
Line item in the statement of financial position |
|||||
|
|
1.2500 |
1.3245 |
|
Accounts payable, accrued liabilities and provisions |
|||||
|
|
1.2500 |
1.3300 |
|
Accounts payable, accrued liabilities and provisions |
Off-Balance Sheet Arrangements
The Corporation does not have any off-balance sheet arrangements that have or reasonably are likely to have a material effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. As a result, the Corporation is not exposed materially to any financing, liquidity, market or credit risk that could arise if it had engaged in these arrangements.
7. Related Party Transactions
A summary of Magellan’s transactions with related parties
For the three month period ended
8. Risk Factors
A summary of risks and uncertainties facing Magellan
The Corporation manages a number of risks in each of its businesses in order to achieve an acceptable level of risk without hindering the ability to maximize returns. Management has procedures to help identify and manage significant operational and financial risks.
For more information in relation to the risks inherent in Magellan’s business, reference is made to the information under “Risk Factors” in the Corporation’s Management’s Discussion and Analysis for the year ended
9. Outlook
The outlook for Magellan’s business in 2024
Airbus delivered 247 aircraft in the last quarter of 2023, received net orders of 853 aircraft and closed the year with an order backlog of 8,598 aircraft. Comparatively, Boeing delivered 157 aircraft, received net orders of 590 aircraft and closed the year with an order backlog of 6,216. Both companies logged over two new firm orders in 2023 for every aircraft delivered. This allowed them both to set new industry records, for order backlogs, and for Airbus, record gross and net orders.
In the defence market, numerous countries are increasing their military expenditures due to rising geopolitical tensions. The US defence budget request for fiscal year 2024 compared to fiscal year 2022, is nearly
In the fighter segment of this market, Lockheed Martin’s F-35 aircraft dominates production as it represents a 40% share of global fighter deliveries. Lockheed delivered 18 F-35 aircraft in the last quarter of 2023, for a total of 98 aircraft delivered during the year. This compares to 141 aircraft delivered in 2022. The reduced numbers were due to a decision by the
The defence rotorcraft segment is forecast to grow at a 4.1% CAGR from 2025 to 2030. The light military segment of this market is expected to be the fastest growing. New programs such as the US Army’s Future Long Range Assault Aircraft (“FLRAA”) program and the Future Attack Reconnaissance Aircraft (“FARA”) program, were both expected to contribute to this growth track. However, the latter FARA program was cancelled in
In 2023, commercial and defence aerospace manufacturers witnessed a revival in demand. Domestic commercial passenger air travel surpassed pre-pandemic levels while Boeing and Airbus set new records for aircraft order activity and order backlogs. Despite the various setbacks, commercial aircraft production rates continue to rise over the long term, supporting a positive outlook for the future. In the defence market, geopolitical challenges combined with the prioritization to modernize fleets, is driving robust demand. Legacy fighter aircraft and rotorcraft are maintaining a robust momentum through this decade while new advanced programs are being developed to enter production in the next decade. It is unusual that both commercial and defence aerospace markets are in a growth cycle simultaneously, and since the OEM’s tend to be the same companies participating in both markets, the combined opportunity for growth is clearly positive.
Additional Information
Additional information relating to
Forward Looking Statements
This news release contains certain forward-looking statements that reflect the current views and/or expectations of the Corporation with respect to its performance, business and future events. Such statements are subject to a number of uncertainties and assumptions, which may cause actual results to be materially different from those expressed or implied. These forward looking statements can be identified by the words such as "anticipate", "continue", "estimate", "forecast", “expect”, "may", "project", "could", "plan", "intend", "should", "believe" and similar words suggesting future events or future performance. In particular there are forward looking statements contained under the heading "Overview" which outlines certain expectations for future operations. These statements assume the continuation of the current regulatory and legal environment; the continuation of trends for passenger airliner and defence production and are subject to the risks contained herein and outlined in our annual information form. The Corporation assumes no future obligation to update these forward-looking statements except as required by law.
|
||||||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) |
||||||||
|
||||||||
(unaudited) |
Three month period
ended |
Twelve month period
ended |
||||||
(expressed in thousands of Canadian dollars, except per share amounts) |
2023 |
2022 |
2023 |
2022 |
||||
|
|
|
|
|
||||
Revenues |
223,581 |
193,110 |
879,617 |
764,580 |
||||
Cost of revenues |
199,805 |
194,003 |
790,626 |
729,515 |
||||
Gross profit (loss) |
23,776 |
(893) |
88,991 |
35,065 |
||||
|
|
|
|
|
||||
Administrative and general expenses |
14,967 |
11,140 |
57,296 |
48,690 |
||||
Restructuring |
418 |
3,697 |
1,738 |
3,901 |
||||
Other |
2,910 |
4,608 |
5,334 |
(1,760) |
||||
Income (loss) before interest and income taxes |
5,481 |
(20,338) |
24,623 |
(15,766) |
||||
|
|
|
|
|
||||
Interest expense |
1,024 |
567 |
3,689 |
2,838 |
||||
Income (loss) before income taxes |
4,457 |
(20,905) |
20,934 |
(18,604) |
||||
|
|
|
|
|
||||
Income tax expense (recovery): |
|
|
|
|
||||
Current |
1,546 |
(1,166) |
11,974 |
5,780 |
||||
Deferred |
3,177 |
1,031 |
(287) |
(2,692) |
||||
|
4,723 |
(135) |
11,687 |
3,088 |
||||
Net (loss) income |
(266) |
(20,770) |
9,247 |
(21,692) |
||||
|
|
|
|
|
||||
Other comprehensive income (loss): |
|
|
|
|
||||
Other comprehensive income (loss) that may be reclassified to profit and loss in subsequent periods: |
|
|
|
|
||||
Foreign currency translation |
(572) |
14,429 |
420 |
7,385 |
||||
Unrealized gain (loss) on foreign exchange hedges, net of tax |
1,509 |
2,899 |
2,251 |
(3,255) |
||||
Items not to be reclassified to profit and loss |
|
|
|
|
||||
In subsequent periods: |
|
|
|
|
||||
Actuarial income on defined benefit plans, net of tax |
866 |
1,763 |
1,125 |
1,402 |
||||
Comprehensive income (loss) |
1,537 |
(1,679) |
13,043 |
(16,160) |
||||
|
|
|
|
|
||||
Net (loss) income per share |
|
|
|
|
||||
Basic and diluted |
(0.00) |
(0.36) |
0.16 |
(0.38) |
|
||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
||||
|
|
|
||
(unaudited) |
|
|
||
(expressed in thousands of Canadian dollars) |
2023 |
2022 |
||
|
|
|
||
Current assets |
|
|
||
Cash |
1,494 |
40,940 |
||
Trade and other receivables |
211,364 |
169,562 |
||
Contract assets |
69,052 |
65,456 |
||
Inventories |
258,448 |
226,359 |
||
Prepaid expenses and other |
10,441 |
9,967 |
||
|
550,799 |
512,284 |
||
Non-current assets |
|
|
||
Property, plant and equipment |
359,722 |
384,084 |
||
Right-of-use assets |
26,857 |
30,825 |
||
Investment properties |
6,632 |
1,621 |
||
Intangible assets |
37,402 |
41,423 |
||
|
22,159 |
22,181 |
||
Other assets |
13,126 |
9,745 |
||
Deferred tax assets |
8,376 |
8,731 |
||
|
474,274 |
498,610 |
||
Total assets |
1,025,073 |
1,010,894 |
||
|
|
|
||
Current liabilities |
|
|
||
Bank indebtedness |
15,534 |
─ |
||
Accounts payable, accrued liabilities and provisions |
142,713 |
133,816 |
||
Contract liabilities |
27,960 |
36,096 |
||
Debt due within one year |
9,439 |
11,647 |
||
|
195,646 |
181,559 |
||
Non-current liabilities |
|
|
||
Long-term debt |
─ |
634 |
||
Lease liabilities |
24,314 |
27,761 |
||
Borrowings subject to specific conditions |
24,166 |
23,300 |
||
Other long-term liabilities and provisions |
6,089 |
7,203 |
||
Deferred tax liabilities |
37,441 |
38,707 |
||
|
92,010 |
97,605 |
||
|
|
|
||
Equity |
|
|
||
Share capital |
250,147 |
251,104 |
||
Contributed surplus |
2,044 |
2,044 |
||
Other paid in capital |
13,565 |
13,565 |
||
Retained earnings |
446,952 |
442,979 |
||
Accumulated other comprehensive income |
21,332 |
18,661 |
||
Equity attributable to equity holders of the Corporation |
734,040 |
728,353 |
||
Non-controlling interest |
3,377 |
3,377 |
||
Total equity |
737,417 |
731,730 |
||
Total liabilities and equity |
1,025,073 |
1,010,894 |
|
||||||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(unaudited) |
Three month period
ended |
Twelve month period
ended |
||||||
(expressed in thousands of Canadian dollars) |
2023 |
2022 |
2023 |
2022 |
||||
|
|
|
|
|
||||
Cash flow from operating activities |
|
|
|
|
||||
Net (loss) income |
(266) |
(20,770) |
9,247 |
(21,692) |
||||
Amortization / depreciation of intangible assets, right-of-use assets and property, plant and equipment |
10,497 |
11,869 |
46,622 |
47,405 |
||||
Impairment of intangibles |
555 |
711 |
555 |
711 |
||||
Impairment of property, plant and equipment |
600 |
1,772 |
600 |
1,772 |
||||
Loss on disposal of property, plant and equipment |
54 |
322 |
17 |
22 |
||||
Gain on disposal of investment properties |
(20) |
─ |
(20) |
─ |
||||
Increase in defined benefit plans |
347 |
994 |
2,130 |
1,249 |
||||
Accretion of financial liabilities |
422 |
324 |
2,221 |
2,146 |
||||
Deferred taxes |
3,138 |
1,042 |
(1,378) |
(3,022) |
||||
Income on investments in joint venture |
(116) |
(93) |
(363) |
(269) |
||||
Other |
468 |
─ |
293 |
─ |
||||
Changes to non-cash working capital |
3,087 |
22,613 |
(77,224) |
30,218 |
||||
Net cash provided by (used in) operating activities |
18,766 |
18,784 |
(17,300) |
58,540 |
||||
|
|
|
|
|
||||
Cash flow from investing activities |
|
|
|
|
||||
Purchase of property, plant and equipment |
(9,616) |
(8,691) |
(19,166) |
(23,494) |
||||
Proceeds from disposal of property, plant and equipment |
27 |
117 |
212 |
607 |
||||
Proceeds from disposal of investment properties |
354 |
─ |
354 |
─ |
||||
Increase in intangible and other assets |
(2,374) |
(588) |
(5,094) |
(969) |
||||
Net cash used in investing activities |
(11,609) |
(9,162) |
(23,694) |
(23,856) |
||||
|
|
|
|
|
||||
Cash flow from financing activities |
|
|
|
|
||||
(Decrease) increase in bank indebtedness |
(3,087) |
─ |
15,463 |
─ |
||||
Decrease in debt |
(540) |
(539) |
(2,136) |
(2,047) |
||||
Lease liability payments |
(1,379) |
(1,376) |
(5,637) |
(5,619) |
||||
Increase (decrease) in borrowings subject to specific conditions, net |
464 |
─ |
691 |
(1,327) |
||||
Increase (decrease) in long-term liabilities and provisions |
153 |
401 |
(16) |
(225) |
||||
Common share repurchases |
(569) |
(828) |
(1,622) |
(2,062) |
||||
Common share dividends |
(1,431) |
(1,437) |
(5,734) |
(14,994) |
||||
Net cash (used in) provided by financing activities |
(6,389) |
(3,779) |
1,009 |
(26,274) |
||||
|
|
|
|
|
||||
Increase (decrease) in cash during the period |
768 |
5,843 |
(39,985) |
8,410 |
||||
Cash at beginning of the period |
666 |
34,395 |
40,940 |
32,482 |
||||
Effect of exchange rate differences |
60 |
702 |
539 |
48 |
||||
Cash at end of the period |
1,494 |
40,940 |
1,494 |
40,940 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240311861679/en/
President & Chief Executive Officer
(905) 677-1889
phil.underwood@magellan.aero
Chief Financial Officer
(905) 677-1889
elena.milantoni@magellan.aero
Source: