Discovery Air Inc. Announces Results for the Quarter Ended July 31, 2017
Toronto, ON, September 14, 2017 – Discovery Air Inc. (the “Corporation”) announced its financial and operating results for the quarter ended July 31, 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 July 31, 2017 (“Current Quarter”) decreased 17%, in comparison to the three months ended July 31, 2016 (“Comparative Period”) with the majority of the decrease related to the sale of Discovery Air Fire Services (“Fire Services”) and reduced airborne training services. Cyclical airborne training flight hours from one period to another typically balance out during the course of the fiscal year. Excluding revenues from Fire Services in the comparative period quarterly revenues decreased 6% when compared to the comparative period.
EBITDA for the Current Quarter decreased by $5.8 million in comparison to the Comparative Period, primarily due to the sale Fire Services and decreased revenue.
Loss for the Current Quarter was $2.4 million compared to income of $2.0 million for the Comparative Period. The variance was mainly attributable to decreased EBITDA.
Consolidated revenues for the six months ended July 31, 2017 (“Year-to-date”) decreased 20%, in comparison to the six months ended July 31, 2016 (“Year-to-date Comparative Period”) with the majority of the decrease in revenue related to the sale of Fire Services, decreased airborne training in Canada, and an early conclusion to the fire suppression season in Chile.
Year-to-date EBITDA decreased by $11.5 million in comparison to the Year-to-date Comparative Period, primarily due to the sale Fire Services and decreased revenue.
Year-to-date loss was $10.8 million compared to $1.9 million for the Year-to-date Comparative Period. The variance was mainly attributable to decreased EBITDA.
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 and six months ended July 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 interim condensed consolidated financial statements and MD&A for the three and six months ended July 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 interim condensed consolidated financial statements and MD&A for quarter ended July 31, 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.
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