OTTAWA, ON, July 12, 2024 /CNW/ – NAV CANADA today released its financial results for the three and nine months ended May 31, 2024.
In the third quarter of fiscal 2024, the Company saw air traffic levels, as measured in weighted charging units(1), increase by 5.6% on a year over year basis. The Company’s revenue for the third quarter of fiscal 2024 was $433 million, compared to $436 million over the same period in fiscal 2023.
The Company had positive free cash flow(2) of $17 million in the third quarter of fiscal 2024 as compared to positive free cash flow of $32 million in the same period in fiscal 2023. The decrease in free cash flow is driven by higher capital expenditures, partially offset by higher operating cash inflows as compared to the third quarter of fiscal 2023. The Company ended the quarter with a cash balance of $571 million.
“Partnering for success is a foundational concept to how NAV CANADA will achieve its long-term goals, and this concept featured strongly in the third quarter,” said Raymond G. Bohn, President and CEO, NAV CANADA. “Our partnership with CAE brings two leading Canadian companies together to augment our training capacity, contributing to the future sustainability of operations and bringing more Canadians into our highly skilled workforce sooner. We celebrated the ground-breaking of our first LEED certified Control Tower with the Victoria Airport Authority and, more recently, have announced our technology partner that will support our Digital Aerodrome Air Traffic Services program. Our partners, customers and our people are at the heart of how we are building a resilient, innovative, and progressive organization which is ready to tackle future challenges.”
Operating expenses for the third quarter of fiscal 2024 were $418 million as compared to $386 million over the same period in fiscal 2023, primarily due to higher compensation costs driven by an increase in both wage and staffing levels.
Net other income and expenses for the third quarter of fiscal 2024 were a net expense of $19 million as compared to $24 million over the same period in fiscal 2023, as a result of lower net interest expense.
The Company had a net loss (before net movement in regulatory deferral accounts including rate stabilization) of $5 million in the third quarter of fiscal 2024 as compared to net income of $26 million for the third quarter of fiscal 2023.
The Company is subject to legislation that regulates its approach to setting charges. The timing of the recovery of certain revenue and expenses through customer service charges is managed through movements in regulatory deferral accounts. The net movement in regulatory deferral accounts for the third quarter of fiscal 2024 was an expense of $27 million as compared to an expense of $39 million over the same period in fiscal 2023. This change in regulatory deferrals is primarily due to a decrease in favourable rate stabilization adjustments of $9 million and a $3 million net increase in adjustments required to align the accounting recognition of certain transactions to the periods in which they will be considered for rate setting. As at May 31, 2024, the rate stabilization account had a balance of $220 million to be recovered from customers through future customer service charges.
Associated Links
The Company’s Financial Statements and Management’s Discussion and Analysis for the three and nine months ended May 31, 2024 can be found at:
Financial Statements
Management’s Discussion and Analysis
About NAV CANADA
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.
The Company is internationally recognized for its safety record and technology innovation.
