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Canadian Helicopters reports strong first quarter
June 10, 2011 By Carey Fredericks
June 10, 2011, Montreal - Canadian Helicopters Group announced its financial and operating results for the first quarter ended March 31, 2011 on Thursday.
These results are the first presented by Canadian Helicopters following its conversion to a dividend-paying corporation on December 31, 2010 and the adoption, on January 1, 2011, of International Financial Reporting Standards ("IFRS"). Results for the prior year period have been restated, for comparability.
The Company generated revenue of $46.9 million, representing an increase of $18.4 million, or 64.6%, over revenue of $28.5 million in the first quarter of 2010. Visual Flight Rules (VFR) revenue increased $16.6 million primarily due to revenues from medium and heavy aircraft contracted in Afghanistan. Instrument Flight Rules (IFR) revenue decreased slightly by $0.3 million primarily resulting from reduced emergency medical services revenue, partially offset by a slight increase in customer activity in the oil and gas industry. Ancillary revenue, including the CFTS contract, grew $2.1 million, mainly due to the consolidation of maintenance revenues from Heli-Welders and Nampa Valley Helicopters. Revenue-flying hours increased 19.9% to 10,252 hours.
EBITDA for the first quarter of 2011 reached $8.9 million, up from $0.8 million a year earlier. This increase mainly reflects higher revenue and a more favourable mix resulting from increased activity in Afghanistan where revenues reflect the significantly higher level of effort to accomplish the work.
As a result, adjusted net income amounted to $4.8 million, or $0.37 per share, versus a loss of $0.2 million, or $0.01 per unit in 2010. Adjusted net income excludes certain significant impacts from classifying the Fund Units and Exchangeable Class B LP Units as financial liabilities before the Fund's conversion into an incorporated entity on December 31, 2010. These significant impacts, mostly of a non-cash nature, reduced net income by $20.1 million in the first quarter of 2010.
Reflecting higher net income, cash flows related to operating activities before net changes in non-cash working capital balances reached $7.8 million in the first quarter of 2011, up from $0.3 million in the corresponding period a year earlier.
