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    Headquartered in Yellowknife, Northwest Territories, GSH and its group of companies is one of the largest helicopter operators in Canada.

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    Discovery Mining Services is a mining service and expediting company serving the needs of companies operating throughout Canada.

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    Air Tindi operates a diversified fleet of fixed-wing aircraft and offers medevac equipped air services, tourism, cargo transport, charter flying and scheduled service across Canada’s north.

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    Discovery Air Defence Services is the prime supplier of Airborne Training services to the Canadian Army, Navy and Air Force.

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    Discovery Air Inc.’s Class A common voting shares and unsecured debentures trade on the Toronto Stock Exchange (symbols DA.A and DA.DB.A, respectively). 

Discovery Air Inc. Announces Results for the Quarter and Year Ended January 31, 2017

Toronto, ON, April 13, 2017 – Discovery Air Inc. (the “Corporation”) announced its financial and operating results for the quarter and year ended January 31, 2017.  The audited consolidated financial statements and management discussion and analysis (“MD&A”) will be available on SEDAR at www.sedar.com and on the Corporation’s website at www.discoveryair.com. 

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Financial Highlights

Consolidated revenues for the three months ended January 31, 2017 (“Current Quarter”) increased 7%, in comparison to the three months ended January 31, 2016 (“Comparative Period”) due to increased fire suppression activity in South America.

EBITDA loss for the Current Quarter decreased by 47% in comparison to the Comparative Period, primarily due to increased revenue with decreased operating expenses due to continued cost containment efforts.        

Loss for the Current Quarter was $12.2 million compared to $13.4 million for the Comparative Period. The variance was mainly attributable to increased EBITDA. 

Consolidated revenues for the year ended January 31, 2017 (“Year-to-date”) decreased 6%, in comparison to the year ended January 31, 2016 (“Comparative Year”) primarily due to decreased fire suppression activity in Northern Canada and South America, as well as the continued decline in mining exploration industry.

Year-to-date EBITDA decreased by 18% in comparison to the Comparative Year, primarily due to decreased revenue.         

Year-to-date loss was $18.1 million compared to $14.8 million for the Comparative Year. The variance was mainly attributable to decreased EBITDA.

“Fourth quarter revenues showed improvement over prior year” reported Jacob (Koby) Shavit, the Corporation’s President and Chief Executive Officer. “The increased fire suppression activity in South America for the fourth quarter, along with continued emphasis on cost containment helped mitigate the impact of the ongoing downturn in the oil and gas and mining industries.  As we enter into a new fiscal year we continue to remain focused on specific growth opportunities, while continuing to streamline operations with an emphasis on efficient use of resources and assets.”

Recent Development

In March 2017, DA Defence along with Air Affairs Australia Pty Ltd., was awarded a two-year trial contract by the Commonwealth of Australia to provide Red Air and fighter support to the Australian Defence Force. 

On January 31, 2017, the Corporation completed the sale of Fire Services for total proceeds of $16.0 which resulted in a pre-tax gain on disposal of $0.3 million.

In January 2017, GSH was awarded a five year contract for two aircraft with the government of Alberta.  During the contract period, GSH will be performing fire suppression activities.

In January 2017, GSH was hired as the prime helicopter contractor to service a resource development project in Bolivia.  The contract is for two aircraft and a minimum of one year.

In December 2016, Air Tindi was awarded a three year contract in northern Canada to transport personnel and equipment to remote worksites.

On December 20, 2016, DA Defence entered into a $25.0 million secured revolving loan agreement with certain Clairvest Group Inc. affiliates (“Clairvest”) that matures on June 30, 2017.

On March 24, 2017, the Corporation announced that certain funds managed by Clairvest Group Inc. have entered into a definitive agreement which will result in Clairvest, along with certain management shareholders of the Corporation, holding all of the issued and outstanding shares in the capital of the Corporation by way of a plan of arrangement pursuant to the Canada Business Corporations Act. This transaction would not constitute a change of control, as it relates to the convertible unsecured subordinated debentures.

Forward-Looking Statements

Forward-looking information and statements are included in this earnings release.  Please refer to the statement regarding forward-looking statements contained in the Corporation’s MD&A for the year ended January 31, 2017, which are incorporated herein by reference.  That statement provides an explanation as to what forward-looking statements are, and the specific factors, uncertainties and potential events that the Corporation has identified for the attention of readers.  When relying on forward-looking information and statements to make decisions, investors and others should carefully consider these factors and other uncertainties and potential events.

The Corporation’s audited consolidated financial statements and MD&A for the year ended January 31, 2017, have been filed concurrently and are available on the Corporation’s website at www.discoveryair.com and on SEDAR at www.sedar.com.  The reader is encouraged to review the audited consolidated financial statements and MD&A for the year ended January 31, 2017 for more complete disclosure on the Corporation’s financial condition and results of operations. 

The Corporation’s Class A common voting shares and unsecured convertible debentures trade on the Toronto Stock Exchange under the symbols DA.A and DA.DB.A, respectively.

Non-IFRS Measures

References to “EBITDA” are to net profit (loss) before finance costs, income taxes, depreciation of property and equipment and intangible assets, gains and losses on disposal of assets and extinguishment of debt, gains on acquisition and disposals, impairment losses, and gains and losses resulting from the change in fair value of financial liabilities. Management believes EBITDA to be an important metric in measuring the performance of the Corporation’s day-to-day operations. This measurement is useful in assessing the Corporation’s ability to service debt and to meet other payment obligations, and as a basis for valuation.  “Working Capital” is current assets less current liabilities excluding current portion of loans and borrowings and operating line of credit.  

For further information please contact:

Sheila Venman
Discovery Air Inc.
VP, HR & Communications
Sheila.Venman@discoveryair.com
866-903-3247

To download a PDF version of this press release, please click here.

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    Every year, residents of the Northwest Territories and Nunavut pursuing an aviation-related career in the North can each receive one of 16 $5,000 scholarships from a fund sponsored by the NWT Department of Transportation, Nunavut Department of Economic Development and Transportation, Discovery Air, Keewatin Air, North-Wright Airways, and First Air. The scholarships are offered to full-time residents of the Northwest Territories and Nunavut (two year minimum residency - a combination of continuous residency in both territories would be accepted to meet the residency requirement) pursuing full-time aviation-related studies. The studies can be related to airline or airport operations or management, aircraft maintenance, and pilot training.

    If you would like to concentrate on flying aircraft while knowing you are in the safest hands around, our team of maintainers will take care of all aspects of managing your fleet.

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    Discovery Air is committed to recruiting and retaining the best talent in aviation industry. By joining Discovery Air you will have the opportunity to participate in a unique and dynamic environment focused on growth, entrepreneurship, innovation and teamwork.

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    The Northlinx Network brings together many of the GSH Aboriginal Joint-Venture Partnerships allowing all participants to benefit from pan-territorial mega-projects requiring helicopter services in the North. Presently there are twelve partnerships operating in this profitable model around the NWT and Nunavut. On top of that, Air Tindi has an additional four Aboriginal partnerships and Discovery Mining Services has two.

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    We are committed to providing our customers with specialty aviation solutions whenever and wherever they are required. Our pilots, maintainers, logisticians and administrators operate with precision and pride in some of the most challenging environments in the world.

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    Discovery Air is committed to recruiting and retaining the best talent in aviation industry. By joining Discovery Air you will have the opportunity to participate in a unique and dynamic environment focused on growth, entrepreneurship, innovation and teamwork.