Bombardier Reports First Quarter 2017 Results
(Thomson Reuters ONE) -
Bombardier Inc. /
Bombardier Reports First Quarter 2017 Results
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The issuer is solely responsible for the content of this announcement.
- Reports EBIT margin(1) expansion led by strong performance at Transportation
and Business Aircraft
- Continued improvement in year-over-year cash performance(1)
- Full year guidance reaffirmed
- Pierre Beaudoin to assume role of Non-Executive Chairman, concluding smooth
transition of executive responsibilities
MONTREAL, QUEBEC--(Marketwired - May 11, 2017) - Bombardier
(TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF) today reported its first quarter 2017
results, demonstrating continued momentum executing its turnaround plan.
Highlighting the company's progress was strong organic growth at Transportation,
EBIT margin((1)) expansion at both Transportation and Business Aircraft, and
significantly improved year-over-year cash performance((1)).
Bombardier reported revenues of $3.6 billion and EBIT before special items was
$128 million. EBIT margins before special items grew to a robust 8.0% at
Transportation, 7.6% at Business Aircraft and 7.5% at Aerostructures, while
Commercial Aircraft recorded an EBIT loss in line with the prior year. Free cash
flow usage improved by $157 million to $593 million for the quarter.
"We continue to gain momentum as we execute our transformation plan and begin to
unleash the full value of the Bombardier portfolio," said Alain Bellemare,
President and Chief Executive Officer, Bombardier Inc. "Our continued margin
expansion and improving cash performance demonstrate both the early benefits of
our actions and the long-term potential of our company."
Bombardier also announced that Pierre Beaudoin intends to step down as Executive
Chairman of the Board effective June 30, 2017. Mr. Beaudoin will continue to
serve as Non-Executive Chairman.
"This change reflects the very successful transition of Bombardier's executive
leadership to Alain over the past two years," said Beaudoin. "As Chairman I look
forward to working with the Board of Directors to provide continuing support to
Alain and the leadership team. The Company is firmly on the right path, with a
very strong leadership team now in place to execute its turnaround plan and
return Bombardier to long-term, sustainable growth."
The change to Mr. Beaudoin's position is subject to the formal approval of
Bombardier's Board of Directors, which is expected following the Company's
Annual General Meeting later today.
SELECTED RESULTS
-------------------------------------------------------------------------------
Three-month periods ended
March 31 2017 2016 Variance
-------------------------------------------------------------------------------
Revenues $ 3,576 $ 3,914 (9 )%
EBIT $ 105 $ 56 88 %
EBIT margin 2.9 % 1.4 % 150 bps
EBIT before special
items((2)) $ 128 $ 130 (2 )%
EBIT margin before
special items((2)) 3.6 % 3.3 % 30 bps
EBITDA before special
items((2)) $ 206 $ 219 (6 )%
EBITDA margin before
special items((2)) 5.8 % 5.6 % 20 bps
Net loss $ (31 ) $ (138 ) nmf
Diluted EPS (in dollars) $ (0.02 ) $ (0.07 ) nmf
Adjusted net income
(loss)((2)) $ 2 $ (34 ) nmf
Adjusted EPS (in
dollars)((2)) $ 0.00 $ (0.03 ) nmf
Net additions to PP&E and
intangible assets $ 276 $ 294 (6 )%
Free cash flow usage((2)) $ (593 ) $ (750 ) 21 %
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As at March 31, 2017 December 31, 2016
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Available short-term
capital resources((3)) $ 3,867 $ 4,477 (14 )%
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All amounts in this press release are in U.S. dollars unless otherwise
indicated.
Amounts in tables are in millions except per share amounts, unless otherwise
indicated.
Bombardier reported consolidated revenues of $3.6 billion in the quarter, which
is in line with expectations and highlights renewed growth momentum in
Transportation. EBIT before special items was $128 million, up from $104 million
in the fourth quarter and in line with last year, as margins continue to
demonstrate the benefits of the transformation plan. EBIT margin before special
items grew to a robust 8.0% in Transportation and achieved 7.6% in Business
Aircraft and 7.5% in Aerostructures and Engineering Services. Free cash flow
usage improved to $593 million while Bombardier continued to invest in the
Global 7000 and Global 8000 aircraft program testing and certification phase as
well as inventories supporting the production ramp-up of the C Series aircraft
program and certain key Transportation projects. These results lead Bombardier
to reiterate its full year guidance of revenue growth in the low-single digits,
excluding currency impacts, EBIT before special items between $530 million and
$630 million and free cash flow usage between $1.0 billion and $750 million.
SEGMENTED RESULTS AND HIGHLIGHTS
Business Aircraft
Results of the quarter
-------------------------------------------------------------------------------
Three-month periods ended
March 31 2017 2016 Variance
-------------------------------------------------------------------------------
Revenues $ 1,007 $ 1,303 (23 )%
Aircraft deliveries (in
units) 29 31 (2 )
EBIT $ 74 $ 82 (10 )%
EBIT margin 7.3 % 6.3 % 100 bps
EBIT before special items $ 77 $ 87 (11 )%
EBIT margin before
special items 7.6 % 6.7 % 90 bps
EBITDA before special
items $ 97 $ 112 (13 )%
EBITDA margin before
special items 9.6 % 8.6 % 100 bps
Net additions to PP&E and
intangible assets $ 208 $ 153 36 %
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As at March 31, 2017 December 31, 2016
-------------------------------------------------------------------------------
Order backlog (in
billions of dollars) $ 15.2 $ 15.4 (1 )%
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* Deliveries and revenues for the first quarter reflect typical seasonal
patterns, achieving in excess of 20% of full year guidance of 135
deliveries.
* EBIT margin before special items improved by 90 bps from 6.7% to 7.6% in the
first quarter.
* Continued to make significant strides in the development of the Global 7000
and Global 8000 aircraft program, with two FTVs in flight testing
demonstrating a high degree of maturity. Subsequent to the end of the
quarter, the third FTV joined the flight test program. The two remaining
FTVs are in advanced stages of production. The Global 7000 aircraft is
expected to enter into service in the second half of 2018.
Commercial Aircraft
Results of the quarter
-------------------------------------------------------------------------------
Three-month periods
ended March 31 2017 2016 Variance
-------------------------------------------------------------------------------
Revenues $ 540 $ 616 (12 )%
Aircraft deliveries (in
units) 15 20 (5 )
Net orders (in units) 11 2 9
Book-to-bill ratio((4)) 0.7 0.1 0.6
EBIT $ (56 ) $ (66 ) 15 %
EBIT margin (10.4 )% (10.7 )% 30 bps
EBIT before special
items $ (55 ) $ (66 ) 17 %
EBIT margin before
special items (10.2 )% (10.7 )% 50 bps
EBITDA before special
items $ (37 ) $ (40 ) 8 %
EBITDA margin before
special items (6.9 )% (6.5 )% (40) bps
Net additions to PP&E
and intangible assets $ 75 $ 113 (34 )%
-------------------------------------------------------------------------------
As at March 31, 2017 December 31, 2016
-------------------------------------------------------------------------------
Order backlog (in
units) 432 436 (4 )
-------------------------------------------------------------------------------
* The C Series aircraft are performing well with now 10 C Series aircraft in
service with both Swiss International Air Lines (SWISS) and Air Baltic
Corporation AS (airBaltic).
* Significantly ramped-up C Series aircraft production in the first quarter in
preparation for an acceleration of deliveries in the second half of 2017,
which will be driven by the recently awarded London City Airport steep
approach certification for the CS100 aircraft as well as the anticipated
delivery of the first CS300 aircraft to SWISS and the entry into revenue
generating service of the CS300 aircraft in Korean Air's fleet.
* During the quarter, we received orders for 10 CRJ900 aircraft from CityJet,
increasing its CRJ Series fleet to 22 aircraft. Based on list price, the
firm orders are valued at $467 million.
* Subsequent to the end of the quarter, Transport Canada and the European
Aviation Safety Agency awarded the CS100 aircraft its steep approach
certifications, allowing the aircraft to operate at challenging airports
such as London City Airport.
Aerostructures and Engineering Services
Results of the quarter
-------------------------------------------------------------------------------
Three-month periods ended
March 31 2017 2016 Variance
-------------------------------------------------------------------------------
Revenues $ 388 $ 468 (17 )%
External order intake $ 103 $ 99 4 %
External book-to-bill
ratio((5)) 1.0 0.9 0.1
EBIT $ 29 $ 15 93 %
EBIT margin 7.5 % 3.2 % 430 bps
EBIT before special items $ 29 $ 35 (17 )%
EBIT margin before
special items 7.5 % 7.5 % -
EBITDA before special
items $ 45 $ 49 (8 )%
EBITDA margin before
special items 11.6 % 10.5 % 110 bps
Net additions to PP&E and
intangible assets $ 8 $ 4 100 %
-------------------------------------------------------------------------------
As at March 31, 2017 December 31, 2016
-------------------------------------------------------------------------------
External order backlog
(in millions of dollars) $ 38 $ 42 (10 )%
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Transportation
Results of the quarter
-------------------------------------------------------------------------------
Three-month periods ended
March 31 2017 2016 Variance
-------------------------------------------------------------------------------
Revenues $ 1,923 $ 1,880 2 %
Order intake (in billions
of dollars) $ 2.2 $ 1.2 83 %
Book-to-bill ratio((6)) 1.1 0.7 0.4
EBIT $ 134 $ 23 483 %
EBIT margin 7.0 % 1.2 % 580 bps
EBIT before special items $ 153 $ 115 33 %
EBIT margin before
special items 8.0 % 6.1 % 190 bps
EBITDA before special
items $ 177 $ 139 27 %
EBITDA margin before
special items 9.2 % 7.4 % 180 bps
Net additions to PP&E and
intangible assets $ 6 $ 23 (74 )%
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As at March 31, 2017 December 31, 2016
-------------------------------------------------------------------------------
Order backlog (in
billions of dollars) $ 30.9 $ 30.1 3 %
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* Revenue growth is gaining momentum as execution of key projects progresses,
increasing 5% compared to the same period last fiscal year excluding the
currency impact.
* EBIT margin before special items increased by 190 bps compared to the same
period last fiscal year, reaching 8.0%, including the positive impacts of
transformation initiatives.
* During the first quarter of 2017, we won several significant orders in
Europe, mainly in France, Germany and Switzerland, as well as in Malaysia,
resulting in a book-to-bill ratio of 1.1. The majority of our order intake
in the first quarter of 2017 is based on current product platforms,
supporting the re-use of existing technologies.
About Bombardier
Bombardier is the world's leading manufacturer of both planes and trains.
Looking far ahead while delivering today, Bombardier is evolving mobility
worldwide by answering the call for more efficient, sustainable and enjoyable
transportation everywhere. Our vehicles, services and, most of all, our
employees are what make us a global leader in transportation.
Bombardier is headquartered in Montréal, Canada. Our shares are traded on the
Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability
North America index. In the fiscal year ended December 31, 2016, we posted
revenues of $16.3 billion. News and information are available at
www.bombardier.com or follow us on Twitter (at)Bombardier.
Bombardier, CRJ900, CRJ Series, CS100, CS300, C Series, Global, Global 7000 and
Global 8000 are trademarks of Bombardier Inc. or its subsidiaries.
The Management's Discussion and Analysis and the Interim Consolidated Financial
Statements are available at ir.bombardier.com.
bps: basis points
nmf: information not meaningful
((1)) Margin refers to EBIT margin before special items. Cash performance
refers to free cash flow usage. Non-GAAP financial measures. See Caution
regarding non-GAAP measures at the end of this press release.
((2)) Non-GAAP financial measures. See Caution regarding non-GAAP measures at
the end of this press release.
((3)) Defined as cash and cash equivalents plus the amount available under the
revolving credit facilities.
((4)) Defined as net orders received over aircraft deliveries, in units.
((5)) Defined as new external orders over external revenues.
((6)) Defined as new orders over revenues.
CAUTION REGARDING NON-GAAP MEASURES
This press release is based on reported earnings in accordance with
International Financial Reporting Standards (IFRS). Reference to generally
accepted accounting principles (GAAP) means IFRS, unless indicated otherwise.
This press release is also based on non-GAAP financial measures including
EBITDA, EBIT before special items and EBITDA before special items, adjusted net
income, adjusted earnings per share and free cash flow. These non-GAAP measures
are mainly derived from the consolidated financial statements but do not have
standardized meanings prescribed by IFRS; therefore, others using these terms
may define them differently. Management believes that providing certain non-GAAP
performance measures, in addition to IFRS measures, provides users of our
Financial Report with enhanced understanding of our results and related trends
and increases the transparency and clarity of the core results of our business.
Refer to the Non-GAAP financial measures and Liquidity and capital resources
sections in Overview and each reporting segments' Analysis of results sections
in the Corporation's MD&A for definitions of these metrics and reconciliations
to the most comparable IFRS measures.
Reconciliation of segment to consolidated results
------------------------------------------------------------------------------
Three-month periods
ended March 31
------------------------------------------------------------------------------
2017 2016
------------------------------------------------------------------------------
Revenues
Business Aircraft $ 1,007 $ 1,303
Commercial Aircraft 540 616
Aerostructures and Engineering Services 388 468
Transportation 1,923 1,880
Corporate and Elimination (282 ) (353 )
------------------------------------------------------------------------------
$ 3,576 $ 3,914
------------------------------------------------------------------------------
EBIT before special items
Business Aircraft $ 77 $ 87
Commercial Aircraft (55 ) (66 )
Aerostructures and Engineering Services 29 35
Transportation 153 115
Corporate and Elimination (76 ) (41 )
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$ 128 $ 130
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Special Items
Business Aircraft $ 3 $ 5
Commercial Aircraft 1 -
Aerostructures and Engineering Services - 20
Transportation 19 92
Corporate and Elimination - (43 )
------------------------------------------------------------------------------
$ 23 $ 74
------------------------------------------------------------------------------
EBIT
Business Aircraft $ 74 $ 82
Commercial Aircraft (56 ) (66 )
Aerostructures and Engineering Services 29 15
Transportation 134 23
Corporate and Elimination (76 ) 2
------------------------------------------------------------------------------
$ 105 $ 56
------------------------------------------------------------------------------
Reconciliation of EBITDA before special items and EBITDA to EBIT
------------------------------------------------------------------------------
Three-month periods
ended March 31
------------------------------------------------------------------------------
2017 2016
------------------------------------------------------------------------------
EBIT $ 105 $ 56
Amortization 78 89
------------------------------------------------------------------------------
EBITDA 183 145
Special items((1)) 23 74
------------------------------------------------------------------------------
EBITDA before special items $ 206 $ 219
------------------------------------------------------------------------------
((1)) Refer to the Consolidated results of operations section in the
Corporation's MD&A for details regarding special items.
Reconciliation of adjusted net income (loss) to net loss and computation of
adjusted EPS
-------------------------------------------------------------------------------
Three-month periods ended March 31
-------------------------------------------------------------------------------
2017 2016
-------------------------------------------------------------------------------
(per share) (per share)
-------------------------------------------------------------------------------
Net loss $ (31 ) $ (138 )
Adjustments to EBIT related to
special items((1)) 23 $ 0.01 74 $ 0.03
Adjustments to net financing
expense related to:
Net change in provisions
arising from changes in
interest rates and net (gain)
loss on certain financial
instruments (8 ) 0.00 15 0.01
Accretion on net retirement
benefit obligations 19 0.01 17 0.01
Transaction costs related to
the conversion option
embedded in the CDPQ
investment((1)) - - 8 0.00
Tax impact of special((1)) and
other adjusting items (1 ) 0.00 (10 ) (0.01 )
-------------------------------------------------------------------------------
Adjusted net income (loss) 2 (34 )
Net loss (income) attributable to
NCI 3 (23 )
Preferred share dividends,
including taxes (6 ) (5 )
-------------------------------------------------------------------------------
Adjusted net loss attributable to
equity holders of Bombardier Inc. $ (1 ) $ (62 )
-------------------------------------------------------------------------------
Weighted-average diluted number
of common shares (in thousands) 2,194,840 2,221,787
-------------------------------------------------------------------------------
Adjusted EPS (in dollars) $ 0.00 $ (0.03 )
-------------------------------------------------------------------------------
((1)) Refer to the Consolidated results of operations section in the
Corporation's MD&A for details regarding special items.
Reconciliation of adjusted EPS to diluted EPS (in dollars)
-------------------------------------------------------------------------------
Three-month periods ended March 31
-------------------------------------------------------------------------------
2017 2016
-------------------------------------------------------------------------------
Diluted EPS $ (0.02 ) $ (0.07 )
Impact of special and other adjusting items 0.02 0.04
-------------------------------------------------------------------------------
Adjusted EPS $ 0.00 $ (0.03 )
-------------------------------------------------------------------------------
Reconciliation of free cash flow usage to cash flows from
operating activities
-------------------------------------------------------------------------------
Three-month
periods
ended March 31
-------------------------------------------------------------------------------
2017 2016
-------------------------------------------------------------------------------
Cash flows from operating activities $ (317 ) $ (456 )
Net additions to PP&E and intangible assets (276 ) (294 )
-------------------------------------------------------------------------------
Free cash flow usage $ (593 ) $ (750 )
-------------------------------------------------------------------------------
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which may involve, but
are not limited to: statements with respect to the Corporation's objectives,
guidance, targets, goals, priorities, market and strategies, financial position,
beliefs, prospects, plans, expectations, anticipations, estimates and
intentions; general economic and business outlook, prospects and trends of an
industry; expected growth in demand for products and services; product
development, including projected design, characteristics, capacity or
performance; expected or scheduled entry-into-service of products and services,
orders, deliveries, testing, lead times, certifications and project execution in
general; competitive position; the expected impact of the legislative and
regulatory environment and legal proceedings on the Corporation's business and
operations; available liquidities and ongoing review of strategic and financial
alternatives; the impact and expected benefits of the investment by the
Government of Québec in the C Series Aircraft Limited Partnership and of the
private placement of a minority stake in Transportation by the CDPQ on our
operations, infrastructure, opportunities, financial condition, access to
capital and overall strategy; and the impact of such investments on our balance
sheet and liquidity position.
Forward-looking statements can generally be identified by the use of forward-
looking terminology such as "may", "will","shall", "can", "expect", "estimate",
"intend", "anticipate", "plan", "foresee", "believe", "continue", "maintain" or
"align", the negative of these terms, variations of them or similar terminology.
By their nature, forward-looking statements require management to make
assumptions and are subject to important known and unknown risks and
uncertainties, which may cause our actual results in future periods to differ
materially from forecast results set forth in forward-looking statements. While
management considers these assumptions to be reasonable and appropriate based on
information currently available, there is risk that they may not be accurate.
Certain factors that could cause actual results to differ materially from those
anticipated in the forward-looking statements include, but are not limited to,
risks associated with general economic conditions, risks associated with our
business environment (such as risks associated with the financial condition of
the airline industry, business aircraft customers, and the rail industry; trade
policy; increased competition; political instability and force majeure),
operational risks (such as risks related to developing new products and
services; development of new business; the certification and homologation of
products and services; fixed-price and fixed-term commitments and production and
project execution; pressures on cash flows based on project-cycle fluctuations
and seasonality; our ability to successfully implement and execute our strategy
and transformation plan; doing business with partners; product performance
warranty and casualty claim losses; regulatory and legal proceedings; the
environment; dependence on certain customers and suppliers; human resources;
reliance on information systems; reliance on and protection of intellectual
property rights; and adequacy of insurance coverage), financing risks (such as
risks related to liquidity and access to capital markets; retirement benefit
plan risk; exposure to credit risk; substantial existing debt and interest
payment requirements; certain restrictive debt covenants and minimum cash
levels; financing support provided for the benefit of certain customers; and
reliance on government support), market risks (such as risks related to foreign
currency fluctuations; changing interest rates; decreases in residual values;
increases in commodity prices; and inflation rate fluctuations). For more
details, see the Risks and uncertainties section in Other in the Management's
Discussion and Analysis (MD&A) of the Corporation's financial report for the
fiscal year ended December 31, 2016. For additional information with respect to
the assumptions underlying the forward-looking statements made in this press
release, refer to the Guidance and forward-looking statements sections in the
MD&A of the Corporation's financial report for the fiscal year ended December
31, 2016.
Readers are cautioned that the foregoing list of factors that may affect future
growth, results and performance is not exhaustive and undue reliance should not
be placed on forward-looking statements. The forward-looking statements set
forth herein reflect management's expectations as at the date of this press
release and are subject to change after such date. Unless otherwise required by
applicable securities laws, the Corporation expressly disclaims any intention,
and assumes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. The forward-
looking statements contained in this press release are expressly qualified by
this cautionary statement.
The Global 7000 and Global 8000 aircraft program is currently in development,
and as such is subject to changes in family strategy, branding, capacity,
performance, design and/or systems. All specifications and data are approximate,
may change without notice and are subject to certain operating rules,
assumptions and other conditions. This document does not constitute an offer,
commitment, representation, guarantee or warranty of any kind.
Contact Information
Bombardier Inc.
Simon Letendre
Senior Advisor, Media Relations and Public Affairs
514 861 9481
Bombardier Inc.
Patrick Ghoche
Vice President, Investor Relations
514 861 5727
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bombardier Inc. via GlobeNewswire
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Datum: 11.05.2017 - 12:30 Uhr
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