Quarters ended July 31
Nine-month periods ended July 31
(in thousands of Canadian dollars,
2015
2014
Difference
Difference
2015
2014
Difference
Difference
except per share amounts)
$
$
$
%
$
$
$
%
Consolidated Statements of Income
Revenues
920,123
941,702
(21,579)
(2.3)
2,727,202
2,907,544
(180,342)
(6.2)
Adjusted operating income(1)
46,472
47,789
(1,317)
(2.8)
14,114
23,901
(9,787)
(40.9)
Net income (loss) attributable to
shareholders
13,067
25,820
(12,753)
(49.4)
(26,543)
(7,732)
(18,811)
(243.3)
Basic earnings (loss) per share
0.34
0.67
(0.33)
(49.3)
(0.69)
(0.20)
(0.49)
(245.0)
Diluted earnings (loss) per share
0.34
0.66
(0.32)
(48.5)
(0.69)
(0.20)
(0.49)
(245.0)
Adjusted net income (loss)(1)
27,216
26,730
486
1.8
(11,854)
(4,111)
(7,743)
(188.3)
Adjusted net income (loss) per share(1)
0.71
0.69
0.02
2.9
(0.31)
(0.11)
(0.20)
(181.8)
Consolidated Statements of Cash Flows
Operating activities
83,468
111,641
(28,173)
(25.2)
257,762
275,594
(17,832)
(6.5)
Investing activities
(5,126)
(14,198)
9,072
63.9
(43,130)
(44,056)
926
2.1
Financing activities
(4,751)
(637)
(4,114)
(645.8)
(7,489)
(81)
(7,408)
(9,145.7)
Effect of exchange rate changes on
cash and cash equivalents
425
(4,288)
4,713
109.9
(478)
(203)
(275)
(135.5)
Net change in cash and cash
equivalents
74,016
92,518
(18,502)
(20.0)
206,665
231,254
(24,589)
(10.6)
Quarters ended July 31
Nine-month periods ended July 31
2015
2014
Difference
Difference
2015
2014
Difference
Difference
(in thousands of dollars)
$
$
$
%
$
$
$
%
Costs of providing tourism services
431,342
429,361
1,981
0.5
1,475,042
1,689,645
(214,603)
(12.7)
Aircraft fuel
130,511
151,049
(20,538)
(13.6)
326,079
315,693
10,386
3.3
Salaries and employee benefits
97,720
100,185
(2,465)
(2.5)
279,243
272,113
7,130
2.6
Commissions
26,470
31,718
(5,248)
(16.5)
113,237
143,302
(30,065)
(21.0)
Aircraft maintenance
37,897
32,553
5,344
16.4
109,695
87,308
22,387
25.6
Airport and navigation fees
33,734
33,993
(259)
(0.8)
83,730
69,541
14,189
20.4
Aircraft rent
24,702
23,350
1,352
5.8
72,553
62,373
10,180
16.3
Other
92,840
92,695
145
0.2
259,375
248,597
10,778
4.3
Share of net income of an associate
(1,565)
(991)
(574)
57.9
(5,866)
(4,929)
(937)
19.0
Amortization
11,559
11,698
(139)
(1.2)
36,436
32,227
4,209
13.1
Restructuring charge
-
-
-
-
-
2,226
(2,226)
(100.0)
Total
885,210
905,611
(20,401)
(2.3)
2,749,524
2,918,096
(168,572)
(5.8)
Americas
Quarters ended July 31
Nine-month periods ended July 31
2015
2014
Difference
Difference
2015
2014
Difference
Difference
(in thousands of dollars)
$
$
$
%
$
$
$
%
Revenues
675,247
660,191
15,056
2.3
2,223,891
2,322,843
(98,952)
(4.3)
Operating expenses
648,923
639,401
9,522
1.5
2,229,548
2,338,768
(109,220)
(4.7)
Operating income (loss)
26,324
20,790
5,534
26.6
(5,657)
(15,925)
10,268
64.5
Operating income (loss) (%)
3.9
3.1
0.7
23.8
(0.3)
(0.7)
0.4
62.9
Europe
Quarters ended July 31
Nine-month periods ended July 31
2015
2014
Difference
Difference
2015
2014
Difference
Difference
(in thousands of dollars)
$
$
$
%
$
$
$
%
Revenues
244,876
281,511
(36,635)
(13.0)
503,311
584,701
(81,390)
(13.9)
Operating expenses
236,287
266,210
(29,923)
(11.2)
519,976
579,328
(59,352)
(10.2)
Operating income (loss)
8,589
15,301
(6,712)
(43.9)
(16,665)
5,373
(22,038)
(410.2)
Operating income (loss) (%)
3.5
5.4
(1.9)
(35.5)
(3.3)
0.9
(4.2)
(460.3)
As at As at
July 31, 2015
October 31, 2014
(in thousands of Canadian dollars)
$
$
ASSETS
Cash and cash equivalents
515,552
308,887
Cash and cash equivalents in trust or otherwise reserved [note 5]
266,700
340,704
Trade and other receivables
145,899
123,489
Income taxes receivable
15,565
3,329
Inventories
9,350
10,434
Prepaid expenses
75,049
74,932
Derivative financial instruments
47,195
16,596
Current portion of deposits
38,819
17,833
Current assets
1,114,129
896,204
Cash and cash equivalents reserved [note 5]
44,900
39,480
Deposits
29,831
26,099
Income taxes receivable
15,850
-
Deferred tax assets
38,774
30,051
Property, plant and equipment
133,224
128,560
Goodwill
99,563
95,601
Intangible assets
77,259
72,769
Derivative financial instruments
1,329
-
Investment in an associate [note 6]
96,453
83,949
Other assets
1,158
2,317
Non-current assets
538,341
478,826
1,652,470
1,375,030
LIABILITIES
Trade and other payables
466,644
338,633
Current portion of provision for overhaul of leased aircraft
21,949
10,674
Income taxes payable
6,383
1,721
Customer deposits and deferred revenues
527,868
424,468
Derivative financial instruments
48,920
24,679
Current liabilities
1,071,764
800,175
Provision for overhaul of leased aircraft [note 8]
28,627
25,638
Other liabilities [note 10]
51,525
53,926
Derivative financial instruments
473
-
Deferred tax liabilities
12,380
12,345
Non-current liabilities
93,005
91,909
EQUITY
Share capital [note 11]
221,297
224,679
Share-based payment reserve
16,779
15,444
Retained earnings
200,382
227,872
Unrealized gain on cash flow hedges
25,384
11,712
Cumulative exchange differences
23,859
3,239
487,701
482,946
1,652,470
1,375,030
Quarters ended July 31
Nine-month periods ended July 31
2015
2014
2015
2014
(in thousands of Canadian dollars, except per share amounts)
$
$
$
$
Revenues
920,123
941,702
2,727,202
2,907,544
Operating expenses
Costs of providing tourism services
431,342
429,361
1,475,042
1,689,645
Aircraft fuel
130,511
151,049
326,079
315,693
Salaries and employee benefits
97,720
100,185
279,243
272,113
Commissions
26,470
31,718
113,237
143,302
Aircraft maintenance
37,897
32,553
109,695
87,308
Aircraft rent
24,702
23,350
72,553
62,373
Airport and navigation fees
33,734
33,993
83,730
69,541
Other
92,840
92,695
259,375
248,597
Share of net income of an associate
(1,565)
(991)
(5,866)
(4,929)
Depreciation and amortization
11,559
11,698
36,436
32,227
Restructuring
-
-
-
2,226
885,210
905,611
2,749,524
2,918,096
Operating results
34,913
36,091
(22,322)
(10,552)
Financing costs
546
550
1,561
1,491
Financing income
(1,924)
(2,019)
(5,942)
(6,079)
Change in fair value of derivative financial instruments used for
aircraft fuel purchases
19,374
1,237
20,039
2,717
Foreign exchange gain on non-current monetary items
(1,215)
132
(2,328)
(547)
Income (loss) before income tax expense
18,132
36,191
(35,652)
(8,134)
Income taxes (recovery)
Current
11,633
10,128
1,047
1,562
Deferred
(7,321)
(233)
(13,698)
(4,526)
4,312
9,895
(12,651)
(2,964)
Net income (loss) for the period
13,820
26,296
(23,001)
(5,170)
Net income (loss) attributable to:
Shareholders
13,067
25,820
(26,543)
(7,732)
Non-controlling interests
753
476
3,542
2,562
13,820
26,296
(23,001)
(5,170)
Earnings (loss) per share [note 11]
Basic
0.34
0.67
(0.69)
(0.20)
Diluted
0.34
0.66
(0.69)
(0.20)
Unrealized
Share-based
gain (loss) on
Cumulative
Non-
payment
Retained
cash flow
exchange
controlling
Share capital
reserve
earnings
hedges
differences
Total
interests
Total equity
(in thousands of Canadian dollars)
$
$
$
$
$
$
$
$
Balance as at October 31, 2013
221,706
15,391
206,835
2,380
(4,919)
441,393
-
441,393
Net income (loss) for the period
-
-
(7,732)
-
-
(7,732)
2,562
(5,170)
Other comprehensive income (loss)
-
-
-
(5,333)
8,892
3,559
(331)
3,228
Comprehensive income (loss) for the period
-
-
(7,732)
(5,333)
8,892
(4,173)
2,231
(1,942)
Issued from treasury
662
-
-
-
-
662
-
662
Exercise of options
1,909
(613)
-
-
-
1,296
-
1,296
Share-based payment expense
-
1,395
-
-
-
1,395
-
1,395
Reclassification of non-controlling interest
liabilities
-
-
-
-
-
-
(2,562)
(2,562)
Reclassification of non-controlling interest
exchange difference
-
-
-
-
(331)
(331)
331
-
2,571
782
-
-
(331)
3,022
(2,231)
791
Balance as at July 31, 2014
224,277
16,173
199,103
(2,953)
3,642
440,242
-
440,242
Net income (loss) for the period
-
-
30,607
-
-
30,607
629
31,236
Other comprehensive income (loss)
-
-
(2,519)
14,665
(2,106)
10,040
1,703
11,743
Comprehensive income (loss) for the period
-
-
28,088
14,665
(2,106)
40,647
2,332
42,979
Issued from treasury
195
-
-
-
-
195
-
195
Exercise of options
207
(66)
-
-
-
141
-
141
Share-based payment expense
-
(663)
-
-
-
(663)
-
(663)
Dividends
-
-
-
-
-
-
(2,782)
(2,782)
Other changes in non-controlling interest
liabilities
-
-
681
-
-
681
(681)
-
Reclassification of non-controlling interest
liabilities
-
-
-
-
-
-
2,834
2,834
Reclassification of non-controlling interest
exchange difference
-
-
-
-
1,703
1,703
(1,703)
-
402
(729)
681
-
1,703
2,057
(2,332)
(275)
Balance as at October 31, 2014
224,679
15,444
227,872
11,712
3,239
482,946
-
482,946
Net income (loss) for the period
-
-
(26,543)
-
-
(26,543)
3,542
(23,001)
Other comprehensive income (loss)
-
-
-
13,672
21,988
35,660
(1,368)
34,292
Comprehensive income (loss) for the period
-
-
(26,543)
13,672
21,988
9,117
2,174
11,291
Issued from treasury
736
-
-
-
-
736
-
736
Share-based payment expense
-
1,335
-
-
-
1,335
-
1,335
Repurchase of shares
(4,118)
-
(947)
-
-
(5,065)
-
(5,065)
Dividends
-
-
-
-
-
-
(3,160)
(3,160)
Reclassification of non-controlling interest
liabilities
-
-
-
-
-
-
4,528
4,528
Reclassification of non-controlling interest
exchange difference
-
-
-
-
(1,368)
(1,368)
1,368
-
(3,382)
1,335
(947)
-
(1,368)
(4,362)
2,736
(1,626)
Balance as at July 31, 2015
221,297
16,779
200,382
25,384
23,859
487,701
4,910
492,611
Quarters ended July 31
Nine-month periods ended July 31
2015
2014
2015
2014
(in thousands of Canadian dollars)
$
$
$
$
OPERATING ACTIVITIES
Net income (loss) for the period
13,820
26,296
(23,001)
(5,170)
Operating items not involving an outlay (receipt) of cash:
Depreciation and amortization
11,559
11,698
36,436
32,227
Change in fair value of derivative financial instruments used for
aircraft fuel purchases
19,374
1,237
20,039
2,717
Foreign exchange gain on non-current monetary items
(1,215)
132
(2,328)
(547)
Share of net income of an associate
(1,565)
(991)
(5,866)
(4,929)
Deferred taxes
(7,321)
(233)
(13,698)
(4,526)
Employee benefits
600
563
1,800
1,690
Share-based payment expense
465
456
1,335
1,395
35,717
39,158
14,717
22,857
Net change in non-cash working capital balances related to operations
43,787
70,966
244,610
235,601
Net change in other assets and liabilities related to operations
(2,972)
(2,840)
(15,829)
8,011
Net change in provision for overhaul of leased aircraft
8,816
4,357
14,264
9,125
Cash flows related to operating activities
85,348
111,641
257,762
275,594
INVESTING ACTIVITIES
Additions to property, plant and equipment and other intangible assets
(13,712)
(15,074)
(44,416)
(47,932)
Increase in cash and cash equivalent reserved
-
876
(5,420)
876
Proceeds from disposal of subsidiary
-
-
-
3,000
Dividend received from an associate
6,706
-
6,706
-
Cash flows related to investing activities
(7,006)
(14,198)
(43,130)
(44,056)
FINANCING ACTIVITIES
Proceeds from issuance of shares
274
244
736
1,958
Repurchase of shares
(3,832)
-
(5,065)
-
Dividends paid by a subsidiary to a non-controlling shareholder
(1,193)
(881)
(3,160)
(2,039)
Cash flows related to financing activities
(4,751)
(637)
(7,489)
(81)
Effect of exchange rate changes on cash and cash equivalents
425
(4,288)
(478)
(203)
Net change in cash and cash equivalents
74,016
92,518
206,665
231,254
Cash and cash equivalents, beginning of period
441,536
404,554
308,887
265,818
Cash and cash equivalents, end of period
515,552
497,072
515,552
497,072
Supplementary information (as reported in operating activities)
Income taxes paid (recovered)
(1,608)
2,346
22,959
29,489
Interest paid
116
126
238
385