HALIFAX, NS, Oct. 20, 2023 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) is proud to announce that subsidiary Jazz Aviation LP (‘Jazz’) was named among Canada’s Safest Employers 2023, as an Award of Excellence winner in the Public Transportation category. Canada’s Safest Employers awards were announced at a gala event in Toronto last evening.
“Safety is and always will be our top priority,” said Randolph deGooyer, President, Jazz. “We are honoured to be recognized for this commitment and we’re proud to demonstrate growth in our safety programs with a seventh consecutive award.”
“Congratulations to the Jazz team on this safety excellence recognition,” said Colin Copp, President and Chief Executive Officer, Chorus. “This latest award reflects their sustained focus on a culture with safety at its core.”
The ease of mobile reporting has led to strong engagement among employees who are the true leaders of Jazz’s safety culture. Since introducing mobile reporting several years ago, its performance as a primary safety tool continues to grow. Employees and management see value in the reporting process through continuous improvement to the safety of Jazz’s operation and workplaces as a result of employee feedback.
This is Jazz’s seventh consecutive year accepting awards at the Canada’s Safest Employers event. Launched in 2011, Canada’s Safest Employers awards recognize organizations with outstanding accomplishments in promoting the health and safety of their employees. Companies are evaluated on a wide range of occupational safety and health (‘OSH’) elements, including employee training, OSH management systems, incident investigation, emergency preparedness, and innovative health and safety initiatives.
About Jazz Aviation LP
Jazz Aviation LP is the largest regional carrier in Canada and the primary operator of Air Canada Express flights to destinations across North America. Jazz is one of Canada’s Top Employers for Young People and a Best Diversity Employer with an award-winning safety culture. These strengths, along with Jazz’s proven track record of industry leadership and exceptional customer service, create and deliver value to stakeholders. Flyjazz.ca
About Chorus Aviation Inc.
Chorus is a leading, global aviation solutions provider and asset manager, focused on regional aviation. Our principal subsidiaries are: Falko Regional Aircraft, the leading pure play regional aircraft asset manager and lessor, managing investments on behalf of third-party fund investors; Jazz Aviation, the largest regional operator in Canada and provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a leading provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; and Cygnet Aviation Academy, an industry leading accredited training academy preparing pilots for direct entry into airlines. Together, Chorus’ subsidiaries provide services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning; and pilot training.
HALIFAX, NS, Aug. 28, 2023 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced that its subsidiary, Jazz Aviation LP (‘Jazz’), and Jazz pilots represented by the Air Line Pilots Association (‘ALPA’) ratified modifications to their collective agreement on August 28, 2023, with an effective date of September 1, 2023.
“I want to thank our Jazz and ALPA negotiating teams for their efforts in reaching this agreement that recognizes the changing pilot wage environment and provides Jazz with improved recruitment and training options,” said Randolph deGooyer, President, Jazz. “Through this modified agreement, we have shown a shared commitment to addressing industry challenges collaboratively,” Mr. deGooyer concluded.
Colin Copp, President and CEO, Chorus, acknowledged Jazz for its ability to collaborate with unions and its customer, Air Canada, to reach a progressive solution. “Jazz has an excellent track record of finding solutions and working well with its unions. These changes will further position Jazz as the leading regional operator in Canada,” said Mr. Copp.
The modified collective agreement will not have a financial impact on Chorus.
About Jazz Aviation LP
Jazz Aviation LP is the largest regional carrier in Canada and the primary operator of Air Canada Express flights to destinations across North America. Jazz is one of Canada’s Top Employers for Young People and a Best Diversity Employer with an award-winning safety culture. These strengths, along with Jazz’s proven track record of industry leadership and exceptional customer service, create and deliver value to stakeholders. flyjazz.ca
About Chorus Aviation Inc.
Chorus is a leading, global aviation solutions provider and asset manager, focused on regional aviation. Our principal subsidiaries are: Falko Regional Aircraft, the leading pure play regional aircraft asset manager and lessor, managing investments on behalf of third-party fund investors; Jazz Aviation, the largest regional operator in Canada and provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a leading provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; and Cygnet Aviation Academy, an industry leading accredited training academy preparing pilots for direct entry into airlines. Together, Chorus’ subsidiaries provide services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning; and pilot training.
Net income of $20.3 million, a quarter-over-quarter increase of $60.7 million.
Adjusted earnings available to Common Shareholders of $15.5 million, a decrease of $6.2 million quarter-over-quarter.
Adjusted earnings available to Common Shareholders of $0.08 per Common Share, basic, a decrease of $0.03 quarter-over-quarter.
Adjusted EBITDA of $110.7 million, an increase of $5.9 million quarter-over-quarter.
Free Cash Flow of $70.3 million, an increase of $36.0 million or approximately 105.0%.
Leverage Ratio improved to 3.8 at June 30, 2023 from 4.4 at December 31, 2022.
HALIFAX, NS, Aug. 3, 2023 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced second quarter 2023 financial results.
“I am pleased to report Chorus’ solid financial performance for the quarter, delivering improvements in Leverage Ratio and Free Cash Flow. Free Cash Flow has more than doubled year-over-year to $70.3 million, and our Leverage Ratio has improved to 3.8 at June 30, 2023, from 4.4 at December 31, 2022. As a result of our contractual earnings, we are on track to meet our guidance for 2023,” said Colin Copp, President and Chief Executive Officer, Chorus.
“We continue to have productive and advancing discussions on Fund III with our existing lead investors in Fund II and others. Due to market conditions over the past year, several of the larger, existing U.S.-based investors in Fund II have been limited from making certain investments due to regulatory limits on the composition of their portfolios. We have recently been informed that certain states have amended their regulatory limits, facilitating our discussions with potential investors,” stated Mr. Copp.
“The market for regional aviation remains strong. In the second quarter, Falko had 20 aircraft transactions with nine distinct airline customers across six continents. In addition, as of June 2023, regional current market values and lease rates have shown signs of recovery from pandemic lows, reflecting a positive forward outlook,” noted Mr. Copp. “We continue to see many opportunities to deploy funds in regional aircraft leasing to earn strong mid-teen returns and look forward to providing an update upon concluding discussions with our investors.”
“Capacity in our Jazz operation is currently constrained as the strong industry wide demand for pilots continues. Over the past year, more than 300 pilots have transferred to Air Canada through our pilot flow agreement in addition to attrition to other airlines,” Mr. Copp continued. “In the same period, we have successfully recruited and trained over 300 pilots and are collaborating with Air Canada to explore ways to increase flying capacity under the CPA. We continue to see a good supply of new hire pilots and are growing our pipeline of future pilots through our Jazz Pathways Program and our new flight training academy Cygnet Aviation.”
Second Quarter Summary
In the second quarter of 2023, Chorus reported Adjusted EBITDA of $110.7 million, an increase of $5.9 million over the second quarter of 2022.
The RAL segment’s Adjusted EBITDA was $57.3 million, an increase of $6.8 million primarily due to three months of Falko’s earnings in the second quarter of 2023 versus two months in the second quarter of 2022 partially offset by decreased revenue related to the sale of wholly-owned aircraft in the second half of 2022.
The RAS segment’s Adjusted EBITDA was $61.8 million and was in-line with the second quarter of 2022. Second quarter results were impacted by:
an increase in aircraft leasing revenue under the CPA of $1.5 million primarily due to a higher US dollar exchange rate; and
an increase in other revenue of $1.3 million due to an increase in parts sales, MRO activity and contract flying; offset by
a contracted decrease in Fixed Margin of $0.8 million;
a decrease in capitalization of major maintenance overhauls on owned aircraft of $0.8 million; and
an increase in general administrative expenses attributable to increased operations.
Corporate Adjusted EBITDA of $(8.4) million was higher than the second quarter of 2022 by $0.9 million due to:
an increase in general administrative expenses related to higher professional fees, salaries, wages and benefits and travel expenses; partially offset by
a decrease in stock-based compensation of $1.1 million due to a decrease in the Common Share price, offset by the change in fair value of the Total Return Swap.
Adjusted net income was $25.6 million for the quarter, a decrease of $2.0 million over the second quarter of 2022 due to:
an increase in depreciation expense of $4.4 million primarily attributable to Falko and capital expenditures in 2022;
an increase of $2.9 million in income tax expense; and
a change in net foreign exchange of $2.7 million; partially offset by
a $5.9 million increase in Adjusted EBITDA as previously described;
a decrease in net interest costs of $1.5 million primarily related to the redemption of the 6.00% Debentures in December 2022 and the recognition of income related to the discontinuance of hedge accounting on an interest rate swap; partially offset by interest on long-term debt assumed as part of the Falko Acquisition and the draw on the Operating Credit Facility; and
a change on fair value of investments of $0.8 million.
Net income increased $60.7 million over the second quarter of 2022 primarily due to:
a change in net unrealized foreign exchange of $27.9 million;
a decrease in impairment provisions of $20.5 million;
a decrease in lease repossession costs of $10.7 million;
a decrease in restructuring expected credit loss provision of $10.4 million; and
a decrease in strategic advisory fees of $5.7 million; partially offset by
the previously noted decrease in Adjusted net income of $2.0 million; and
an increase in income tax expense on adjusted items of $12.8 million.
Year-to-Date Summary
Chorus reported Adjusted EBITDA of $228.8 million for 2023, an increase of $40.7 million over the same prior year period.
The RAL segment’s Adjusted EBITDA was $118.9 million, an increase of $36.7 million primarily due to six months of Falko’s earnings versus two months in the first half of 2022; partially offset by decreased revenue related to the sale of aircraft in the second half of 2022.
The RAS segment’s Adjusted EBITDA was $125.7 million, an increase of $6.4 million due to:
an increase in other revenue of $8.0 million due to an increase in parts sales, MRO activity and contract flying; and
an increase in aircraft leasing revenue under the CPA of $3.9 million primarily due to a higher US dollar exchange rate; partially offset by
a decrease in capitalization of major maintenance overhauls on owned aircraft of $1.8 million;
a contracted decrease in Fixed Margin of $1.5 million; and
an increase in general administrative expenses attributable to increased operations.
Corporate Adjusted EBITDA of $(15.8) million was higher than the same period 2022 by $2.4 million due to:
an increase in general administrative expenses related to higher professional fees, salaries, wages and benefits and travel expenses; partially offset by
a decrease in stock-based compensation of $0.9 million due to a decrease in the Common Share price, offset by the change in fair value of the Total Return Swap.
Adjusted net income of $56.4 million, an increase of $11.1 million over the same prior year period primarily due to:
a $40.7 million increase in Adjusted EBITDA as previously described; partially offset by
an increase in depreciation expense of $17.4 million primarily attributable to Falko and capital expenditures in 2022;
an increase of $8.2 million in income tax expense; and
an increase in net interest costs of $4.0 million primarily related to interest on long-term debt assumed as part of the Falko Acquisition and the draw on the Operating Credit Facility partially offset by the redemption of the 6.00% Debentures in December 2022 and the recognition of income related to the discontinuance of hedge accounting on an interest rate swap.
Net income of $52.3 million, an increase of $69.8 million over the same prior year period primarily due to:
the previously noted increase in Adjusted net income of $11.1 million;
a change in net foreign exchange of $25.4 million;
a decrease in impairment provisions of $20.5 million;
a decrease in restructuring credit loss provision of $10.4 million;
a decrease in strategic advisory fees of $8.4 million;
a decrease in lease repossession costs of $7.1 million; partially offset by
an increase in income tax expenses on adjusted items of $13.0 million.
Outlook
Jazz’s capacity is currently constrained as the industry-wide demand for pilots intensifies. In the past 12-months, Jazz has seen over 300 captain or captain-eligible pilots flow to Air Canada under the existing pilot flow agreement, along with attrition to other mainline airlines. In that same time period, Jazz has successfully hired and trained over 300 first officers and continues to see a good supply of new hire pilots.
Jazz expects this trend on flow of pilots to Air Canada and attrition to other airlines to continue in the near term.
The CPA provides a Fixed Fee to Jazz regardless of flying levels; therefore, the reduction in flying is not expected to have any impact on Jazz’s earnings.
Falko continues to have positive and advancing discussions on its new fund (Fund III) with its existing lead investors in Fund II and others. Chorus is also routinely exploring opportunities to sell Falko’s wholly-owned or majority-owned aircraft in order to advance the implementation of its asset light leasing strategy.
Chorus has the key elements to successfully execute on its strategy to transition to an asset light leasing model while growing its contractual fund management business and its RAS segment. The key elements include:
Strong and predictable core earnings from the RAS segment, with the potential to expand into adjacent and complementary business lines;
Significant wholly-owned or majority-owned aviation assets that can be monetized to reduce debt and return capital to Common Shareholders while also providing funding to improve the growth and return profile of the business over time through accretive investments; and
Growth potential in the Falko series of funds from which Chorus can generate attractive returns via asset management fees, co-investment returns and incentive payments.
The asset light leasing model will enable Chorus to achieve greater scale in its leasing business by co-investing alongside third-party equity investors in Falko-managed funds, while decreasing risk to Chorus by reducing the use of recourse debt financing. As Chorus transitions to an asset light leasing model, asset sales will generate Free Cash Flow that can be deployed to pursue accretive investment opportunities and/or return capital to Common Shareholders. As part of this asset light transformation, Chorus is targeting:
Aircraft asset sales: Chorus intends to opportunistically trade RAL’s wholly-owned or majority-owned aircraft including in connection with the windup of its 67.45% ownership in Ravelin Holdings LP by its tenth anniversary in 2025. As of June 30, 2023, Ravelin Holdings LP held an interest in 39 aircraft with a net book value of US $397.9 million and secured debt of US $206.6 million. As asset sales occur, the related leasing revenues in RAL will decrease, which will be partially offset by lower depreciation and debt servicing costs and earnings from Falko managed funds.
Reduced leverage: Chorus anticipates its Leverage Ratio will be between 2.5 to 3.5 by December 31, 2024, given the contractual nature of Chorus’ earnings, amortizing debt repayments, and expected asset sales. Deleveraging amounts will vary from quarter-to-quarter depending on the timing and quantum of asset sales.
Growth: Chorus intends to expand the number of Falko managed funds and the RAS business into adjacent and complementary specialty aviation business lines.
HALIFAX, NS, Aug. 2, 2023 /CNW/ – “Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announces that its subsidiary, Voyageur Aviation Corp. (‘Voyageur’), will be expanding its air ambulance services in New Brunswick. This expansion results from an amendment to Voyageur’s contract with Ambulance New Brunswick.”
Voyageur operates two King Air 200 aircraft for Ambulance New Brunswick. The amendment enables broader usage of the secondary aircraft for air ambulance services to include Grand Manan Island. Both aircraft, maintained by Voyageur, are equipped with crucial medical and life-saving equipment.
“For over 25 years, Voyageur Aviation has served as the main air ambulance provider for New Brunswick,” said Cory Cousineau, President, Voyageur Aviation. “As we continue to collaborate with Ambulance New Brunswick and the Department of Health to enhance our services for the province, our team will maintain safe and reliable operations for the people of New Brunswick and the island of Grand Manan.”
About Voyageur Aviation Corp. Voyageur is an integrated provider of specialized aviation services, including contract flying operations both internationally and domestically, and offers advanced engineering and maintenance capabilities. Headquartered in North Bay, Ontario, Voyageur delivers innovative solutions to customers with unique aviation requirements and operates under the core principles of comprehensive safety management, quality assurance, and client-dedicated solutions. www.voyav.com
About Chorus Aviation Inc. Chorus is a leading, global aviation solutions provider and asset manager, focused on regional aviation. Our principal subsidiaries are: Falko Regional Aircraft, the leading pure play regional aircraft asset manager and lessor, managing investments on behalf of third-party fund investors; Jazz Aviation, the largest regional operator in Canada and provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a leading provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; and Cygnet Aviation Academy, an industry leading accredited training academy preparing pilots for direct entry into airlines. Together, Chorus’ subsidiaries provide services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning; and pilot training.
HALIFAX, NS, June 12, 2023 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) subsidiary, Jazz Aviation LP (‘Jazz’), is pleased to announce the expansion of its Jazz Aviation Pathways Program (‘Jazz APP’) to include Airmedic, based in Saint-Hubert, Que. Airmedic is the 21st participating industry organization in the Jazz APP.
“Welcoming Airmedic from Quebec is an important step in Jazz’s continued commitment to creating opportunities for pilots,” said Cal Purves, Vice President, Flight Operations, Jazz. “With a growing demand for pilots in Canada and around the world, expanding our pilot pathway program will help ensure that we are providing the next generation of pilots with the skills and experience needed to succeed in this exciting and challenging field.”
There are two pillars of this agreement. First, Jazz will refer to Airmedic top-performing graduates who have progressed through the Jazz APP at our affiliated aviation colleges, universities, and flight schools. These graduates will have the opportunity to transition to first officer positions at Airmedic.
Second, the agreement will provide a direct career path opportunity for qualifying Airmedic pilots to transition to first officer positions at Jazz. The career pathway could then continue for those Airmedic pilots interested in future opportunities to fly for Air Canada through Jazz’s pathway with the mainline carrier.
“We are delighted to work in collaboration with Jazz to develop the next generation. This collaboration demonstrates our shared commitment, which allows our personnel to develop their careers over the long term while facilitating their integration and transition into the commercial transportation sector. Airmedic is the first francophone Quebec carrier to develop this type of relationship with Jazz. Our safety results, the reality of our operations, and the calibre of our training are recognized and have established standards that adequately prepare the francophone succession of tomorrow,” said Nicolas Charette, Director, Aircraft Operations, Airmedic.
Since 2007, Jazz has been actively involved in shaping the curriculum and training of Canada’s future professional pilots through active engagement with aviation colleges, flight schools, and universities. To-date, the Jazz APP has announced agreements with 21 participating industry organizations.
About Jazz
Jazz Aviation LP is the largest regional carrier in Canada and the primary operator of Air Canada Express flights to 81 destinations across North America. Jazz is one of Canada’s Top Employers for Young People and a Best Diversity Employer with an award-winning safety culture. These strengths, along with Jazz’s proven track record of industry leadership and exceptional customer service, create and deliver value to stakeholders. flyjazz.ca
About Airmedic
Airmedic is the only company in Quebec operating its own fleet of planes and helicopters exclusively dedicated to emergency medical assistance and transfers between hospitals. The call center operates 24/7. Airmedic operates day and night owing to certification by Transport Canada that allows our pilots to use night vision goggles, and IFR (Instrument Flight Rules) certification. Airmedic is also the first privately-owned emergency medical transport company in Canada to be certified by Accreditation Canada. This certification is an eloquent demonstration of Airmedic’s commitment to providing high quality care in the safest environment.
About Chorus Aviation Inc.
Chorus is a leading, global aviation solutions provider and asset manager, focused on regional aviation. Our principal subsidiaries are: Falko Regional Aircraft, the leading pure play regional aircraft asset manager and lessor, managing investments on behalf of third-party fund investors; Jazz Aviation, the largest regional operator in Canada and provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a leading provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; and Cygnet Aviation Academy, an industry leading accredited training academy preparing pilots for direct entry into airlines. Together, Chorus’ subsidiaries provide services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning; and pilot training.
MONTREAL and HALIFAX, NS, May 30, 2023 /CNW/ – Air Canada (TSX: AC) and Chorus Aviation Inc. (TSX: CHR) (“Chorus”), parent company of Jazz Aviation LP (“Jazz”), are providing comment on Air Canada’s arrangement for additional flying capacity with another airline for up to six De Havilland Canada DHC-8 aircraft.
“Jazz is our long-term Air Canada Express partner, and we are working together to increase flying activity within the framework of our existing CPA given the current, industry wide pilot situation. As these efforts continue, and to help meet the needs and expectations of the travelling public, Air Canada has entered into a bridging arrangement with another airline to provide additional regional capacity on select routes in eastern Canada,” said Mr. Michael Rousseau, President and Chief Executive Officer of Air Canada.
“Chorus understands that Air Canada is increasing capacity to meet travel demand and that the addition of these aircraft is a bridging solution. We confirm that this agreement does not impact Chorus financially,” said Mr. Colin Copp, President and Chief Executive Officer of Chorus.
About Air Canada Air Canada is Canada’s largest airline, the country’s flag carrier and a founding member of Star Alliance, the world’s most comprehensive air transportation network. Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada’s Aeroplan program is Canada’s premier travel loyalty program, where members can earn or redeem points on the world’s largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental rewards. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada’s passenger and freighter aircraft. Air Canada has committed to a net zero emissions goal from all global operations by 2050.
About Chorus Aviation Inc. Chorus is a leading, global aviation solutions provider and asset manager, focused on regional aviation. Our principal subsidiaries are: Falko Regional Aircraft, the leading pure play regional aircraft asset manager and lessor, managing investments on behalf of third-party fund investors; Jazz Aviation, the largest regional operator in Canada and provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a leading provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; and Cygnet Aviation Academy, an industry leading accredited training academy preparing pilots for direct entry into airlines. Together, Chorus’ subsidiaries provide services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning; and pilot training.
HALIFAX, NS, May 24, 2023 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today published its 2022 Sustainability Report, which highlights Chorus’ environmental, social and governance (“ESG”) accomplishments in 2022.
“In 2022, we made good progress against our ESG objectives which, at their core, are concerned with safety, diversity and environmental performance,” said Colin Copp, President and Chief Executive Officer, Chorus. “Our ESG initiatives tie back to value creation by enhancing our competitive position and mitigating future risks to our business.”
The report includes disclosure of Chorus’ greenhouse gas emissions and an update on progress against our diversity targets. The report is available online at chorusaviation.com/sustainability.
About Chorus Aviation Inc.
Chorus is a leading, global aviation solutions provider and asset manager, focused on regional aviation. Our principal subsidiaries are: Falko Regional Aircraft, the leading pure play regional aircraft asset manager and lessor, managing investments on behalf of third-party fund investors; Jazz Aviation, the largest regional operator in Canada and the sole provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a leading provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; and Cygnet Aviation Academy, an industry leading accredited training academy preparing pilots for direct entry into airlines. Together, Chorus’ subsidiaries provide services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning; and pilot training.
Net income of $32.0 million, a quarter-over-quarter increase of $9.1 million.
Adjusted earnings available to Common Shareholders of $21.5 million, an increase of $3.7 million quarter-over-quarter.
Adjusted earnings available to Common Shareholders of $0.11 per Common Share, basic, an increase of $0.01 quarter-over-quarter.
Adjusted EBITDA of $118.1 million, an increase of $34.8 million quarter-over-quarter.
Free Cash Flow of $73.1 million, an increase of $24.6 million or approximately 51%.
Leverage Ratio improved to 4.0 at March 31, 2023 from 4.4 at December 31, 2022.
HALIFAX, NS, May 8, 2023 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced first quarter 2023 financial results.
“I am pleased to report strong first quarter results in-line with expectations, with Free Cash Flow of $73.1 million and Adjusted earnings available to Common Shareholders of $0.11 per Common Share representing increases of 51% and 10%, respectively. During the quarter, we continued the deleveraging of our balance sheet improving our Leverage Ratio to 4.0x, a 9% decrease since year end, bringing us closer to our targeted range of 2.5x to 3.5x.” said Colin Copp, President and Chief Executive Officer, Chorus.
Mr. Copp continued “We are laser-focused on transitioning our aircraft leasing business to an asset-light model and launching Falko’s new investment fund. With our strong core services cash flow and the anticipated proceeds from asset sales, we are progressing towards our targeted leverage level, which will offer considerable flexibility to execute on accretive capital allocation opportunities.”
“Last month, we officially launched Cygnet Aviation Academy introducing a first of its kind pilot academy to the Canadian market, with leading edge flight training that provides students direct access to career opportunities. We are proud of this initiative which will provide flight ready pilots to our operating companies and the wider industry.” concluded Mr. Copp.
First Quarter Summary
In the first quarter of 2023, Chorus reported Adjusted EBITDA of $118.1 million, an increase of $34.8 million over the first quarter of 2022.
The RAL segment’s Adjusted EBITDA was $61.6 million, a quarter-over-quarter increase of $29.9 million primarily due to Falko’s earnings inclusive of $6.7 million due to the recognition of non-reimbursable end-of-lease maintenance reserves.
The RAS segment’s Adjusted EBITDA was $63.9 million, an increase of $6.5 million over the first quarter of 2022. First quarter results were impacted by:
an increase in other revenue of $6.7 million due to an increase in parts sales, third-party MRO activity and contract flying; and
an increase in aircraft leasing revenue under the CPA of $2.4 million primarily due to a higher US dollar exchange rate; offset by
an increase in general administrative expenses attributable to increased operations;
a decrease in capitalization of major maintenance overhauls on owned aircraft of $0.9 million; and
a decrease in contracted Fixed Margin of $0.8 million.
Corporate Adjusted EBITDA or net expenses of $7.4 million were higher than the first quarter of 2022 by $1.6 million due to:
an increase in general administrative expenses related to higher professional fees, salaries, wages and benefits and travel expenses.
Adjusted net income was $30.8 million for the quarter, an increase of $13.1 million over the first quarter of 2022 due to:
a $34.8 million increase in Adjusted EBITDA as previously described; and
a change in net foreign exchange of $2.1 million; partially offset by
an increase in depreciation expense of $13.0 million primarily attributable to Falko and capital expenditures in 2022;
an increase of $5.4 million in income tax expense; and
an increase in net interest costs of $5.4 million primarily related to interest on long-term debt assumed as part of the Falko Acquisition and the draw on the Operating Credit Facility, partially offset by the redemption of the 6.00% Debentures in December 2022.
Net income increased $9.1 million over the first quarter of 2022 primarily due to:
the previously noted increase in Adjusted net income of $13.1 million; and
a decrease in strategic advisory fees of $2.7 million; partially offset by
an increase in lease repossession costs of $3.7 million;
a decrease in net unrealized foreign exchange gains of $2.5 million; and
a decrease in income tax recoveries on adjusted items of $0.2 million.
Consolidated Financial Analysis
This section provides detailed information and analysis about Chorus’ performance for the three months ended March 31, 2023 compared to the three months ended March 31, 2022. It focuses on Chorus’ consolidated operating results and provides financial information for Chorus’ operating segments.
(unaudited)(expressed in thousands of Canadian dollars)
Three months ended March 31,
2023
2022
Change
Change
$
$
$
%
Operating revenue
415,252
342,380
72,872
21.3
Operating expenses
353,349
299,068
54,281
18.2
Operating income
61,903
43,312
18,591
42.9
Net interest expense
(25,458)
(20,054)
(5,404)
26.9
Foreign exchange gain
4,031
4,449
(418)
(9.4)
Gain on fair value of investments
1,892
—
1,892
100.0
Income before income tax
42,368
27,707
14,661
52.9
Income tax expense
(10,349)
(4,800)
(5,549)
115.6
Net income
32,019
22,907
9,112
39.8
Net income attributable to non-controlling interest
HALIFAX, NS, March 29, 2023 /CNW/ – Chorus Aviation Inc. (“Chorus”) (TSX: CHR) announced that it is holding an Investor Day today, March 29, 2023. The presentation materials will be posted to the Chorus website prior to the start of the event. Please note a video recording will be made available on the website shortly following the event.
“Today marks Chorus’ first Investor Day conference, and we are excited to share our vison for the company,” said Colin Copp, President and Chief Executive Officer, Chorus. “There have been significant changes in our business over the past year, including a shift in strategic direction as we pursue an asset light leasing model. These changes are enabling us to significantly deleverage our business while improving the quality of our earnings. With $2.6 billion1 in future contracted revenues and US $700.0 million of embedded equity value2 in Falko’s on-balance sheet portfolio of leased aircraft, we are in a strong position to generate substantial cash flow that can be deployed to enhance shareholder returns and make accretive investments in future growth. I look forward to engaging further with our shareholders and demonstrating the value of our strategy as we execute in the months and years to come,” concluded Mr. Copp.
Investor Day Agenda
The Investor Day will include presentations by Mr. Copp on the company’s strategy and members of the Chorus executive team on their respective subsidiaries and corporate functions:
Introduction & Investment Highlights Colin Copp, President & CEO
Jazz, Sole Air Canada Express Operator Randolph deGooyer, President, Jazz
Falko, Leading Aircraft Asset Manager & Lessor Jeremy Barnes, CEO, Falko
Voyageur, Speciality Service Provider Gary Gilbert, Vice President, Avparts
Financial Performance & Outlook Gary Osborne, Chief Financial Officer
Key Takeaways Colin Copp, President & CEO
Question and Answer
Investor Day Content
The following content will be made available on Chorus’ website:
Presentations from the Investor Day will be posted prior to the start of the event
A video recording of the event will be posted following the Investor Day
The presentations include management’s views on the current value of Chorus’ common equity.
Complete details of Chorus’ previously communicated 2023 forecasts and key economic assumptions can be found in Management’s Discussion and Analysis of Operations and Financial Condition dated February 15, 2023 (the “2022 MD&A”) available at www.chorusaviation.com
HALIFAX, NS, March 28, 2023 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) subsidiary, Jazz Aviation LP (‘Jazz’), is pleased to celebrate the launch of Chorus’s Cygnet Aviation Academy (‘Cygnet’) and welcomes Cygnet as the 13th educational institution participating in its Jazz Aviation Pathways Program.
“We’re pleased to congratulate Cygnet and to be working with another Chorus company to provide opportunities for aspiring pilots,” said Steve Linthwaite, Vice President, Flight Operations, Jazz. “By supporting the next generation of pilots, we are not only shaping the future of our business, but also contributing to the growth and sustainability of the aviation industry as a whole.”
Jazz and Cygnet are collaborating to deliver Jazz Approach – a unique pilot training opportunity that offers an accelerated career path for aspiring professional pilots. After an extensive selection process, qualifying applicants receive a conditional letter of employment from Jazz contingent on their successful completion of the program. The program takes an all-in-one practical approach, whereby cadets will earn an Integrated Airline Transport Pilot License from Cygnet, with extensive use of flight simulators, and acquire a CRJ200 type rating, all within 20 months. This represents the fastest path to an airline First Officer position in Canada. Once hired, all candidates are required to successfully complete the same ground school, Transport Canada Pilot Proficiency Check, and safety requirements as all other Jazz First Officers. The first cohort of Jazz Approach cadets is now underway.
“Jazz provides a large number of skilled and competent pilots to Air Canada each year and we’re pleased with the continued innovation shown by our Air Canada Express partner through programs such as the Jazz Approach and Jazz Aviation Pathways Program,” said Murray Strom, Senior Vice President, Flight Operations and Maintenance, Air Canada.
Since 2007, Jazz has been actively involved in shaping the curriculum and training of Canada’s future professional pilots through active engagement with aviation colleges, flight schools, and universities. To-date, the Jazz Aviation Pathways Program has announced agreements with 20 participating industry organizations.
About Chorus Aviation Inc.
Chorus’ vision is to deliver regional aviation to the world. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services. Its principal subsidiaries are: Falko Regional Aircraft, the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment; Jazz Aviation, the sole provider of regional air services under the Air Canada Express brand; and Voyageur Aviation, a provider of specialty air charter, aircraft modification, and parts provisioning services to regional aviation customers around the world. Together, Chorus’ subsidiaries provide support services that encompass every stage of a regional aircraft’s lifecycle, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning.
