Discovery Air Inc. Announces Results for the Quarter Ended April 30, 2017
Toronto, ON, June 14, 2017 – Discovery Air Inc. (the “Corporation”) announced its financial and operating results for the quarter ended April 30, 2017. The interim condensed 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.
Consolidated revenues for the three months ended April 30, 2017 (“Current Quarter”) decreased 23%, in comparison to the three months ended April 30, 2016 (“Comparative Period”) due to end of fiscal year government budget cuts resulting in reduced airborne training in Canada, the sale of Discovery Air Fire Services Inc., and a shorter fire suppression season in Chile.
EBITDA loss for the Current Quarter decreased by $5.7 million in comparison to the Comparative Period, primarily due to decreased revenue, due to reduced flight hours partially offset by decreased operating expenses and continued cost containment efforts.
Loss for the Current Quarter was $8.3 million compared to $3.9 million for the Comparative Period. The variance was mainly attributable to decreased EBITDA.
On June 5, 2017, DA Defence entered into a $13.0 million convertible revolving credit agreement with certain Clairvest Group Inc. affiliates. The loan bears interest at 12% and the lender has committed to extend the maturity date to December 15, 2017.
On May 31, 2017, Discovery Air Defence (“DA Defence”) successfully completed its first training exercise with the Austrian Air Force in connection with services it provides in Germany. DA Defence’s training qualified the Austrian pilots in air-to-air weapons and tactics.
During the Current Quarter, DA Defence signed a two year contract with the Australian Air Force to provide adversary and related combat support services, similar to those provided in Canada and Germany. The Company is currently setting up operations and expects to commence revenue flying in the third quarter.
During the Current Quarter, Great Slave Helicopters Ltd. mobilized two aircraft to Bolivia operating under a long term contract to service a resource development project.
May 26, 2017, the Corporation announced the closing of the definitive agreement announced on March 24, 2017, resulting 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. The Corporation’s common shares were de-listed from the Toronto Stock Exchange on May 29, 2017.
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 three months ended April 30, 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 interim condensed consolidated financial statements and MD&A for the three months ended April 30, 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 interim condensed consolidated financial statements and MD&A for quarter ended April 30, 2017 for more complete disclosure on the Corporation’s financial condition and results of operations.
The Corporation’s unsecured convertible debentures trade on the TSX under the symbol DA.DB.A.
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:
Discovery Air Inc.
VP, HR & Communications