Safety & Training
Canadian Helicopters Reports Q3 and Nine-month 2007 results
Nov. 14, 2007 Montreal, Que. - Canadian Helicopters Income Fund, the largest helicopter transportation services company
operating in Canada, today announced its financial performance for the three and nine-month periods ended September 30, 2007.
Nov. 14, 2007 Montreal, Que. – Canadian Helicopters Income Fund,
the largest helicopter transportation services company
operating in Canada, today announced its financial performance for the three
and nine-month periods ended September 30, 2007.
Revenue for the third quarter reached $55.7 million, compared to
$51.3 million for the same period of 2006, a gain of $4.4 million or 8.6 per
cent, despite a slight decrease in the number of hours flown. Operating
expenses – comprising primarily of expenses related to crew, maintenance, cost
of goods sold and SG&A – increased to $33.0 million, from $30.8 million for
the third quarter of 2006, resulting in EBITDA increasing to $22.5 million,
from $20.5 million for the comparable period in 2006, a gain of $2.0 million
or 9.8 per cent.
Said Jean-Pierre Blais, President, Canadian Helicopters, "The significant
gain in third quarter revenue was achieved primarily through an increase in
VFR revenue associated with flying in resource-based activities and from an
increase in ancillary revenue associated with our activities in the Canadian
Forces Contracted Flying Training (CFTS) program, while IFR segment revenue
was stable. Overall, flying hours decreased slightly to 31,659 hours from
31,880 hours a year ago – a decrease of 0.7 per cent."
Nine Months Results
For the nine months ended September 30, 2007, Canadian Helicopters Income
Fund reported revenue of $119.2 million, compared to $111.5 million for the
same period of 2006, an increase of $7.7 million or 6.9 per cent. Operating
expenses increased to $87.5 million from $86.8 million in the first nine
months of 2006.
EBITDA for the nine months to September 30, 2007 increased to
$31.6 million from $24.7 million for the same period of 2006, a gain of
$6.9 million, or 27.9 per cent. EBITDA margins improved from 22.2% to 26.5%
EBITDA performance was attributed primarily to improvement in fleet rate
and slightly higher hours flown in the VFR segment, lower maintenance expenses
arising from timing differences, and lower insurance costs.
"The conclusion of the third quarter also marks the end of the busiest
period of flying activity in Canada, as daylight shortens and weather becomes
less favorable for flying. As we have previously announced, we will use the
balance of the year and the start of the new year to focus on training and
maintenance activities while maintaining IFR segment activities at near
year-round levels," Blais added.
Repair and maintenance expenses on flying assets are not incurred evenly
during a year and the timing of such expenses within a year may vary from one
year to another and is not representative of all quarters throughout the year.
As fuel costs are passed through to customers, increases in fuel prices
do not materially affect Canadian Helicopters' financial performance.
As a net buyer of U.S. dollars, Canadian Helicopters protects itself
against currency fluctuations with respect primarily to the purchase of
aircraft parts and insurance expenses through hedging.
We announced today that we will increase our annual cash distribution to
unitholders by five per cent to $1.1025, effective for the period from
November 1, 2007 to November 30, 2007. The November distribution will increase
to $0.091875 from $0.0875 per unit and will be paid on December 14, 2007 to
unitholders of record at the close of business on November 30, 2007.