Bombardier Reports Third Quarter 2017 Results
(Thomson Reuters ONE) -
Bombardier Inc. /
Bombardier Reports Third Quarter 2017 Results
. Processed and transmitted by Nasdaq Corporate Solutions.
The issuer is solely responsible for the content of this announcement.
- Game-changing, strategic partnership with Airbus to accelerate commercial
momentum for C Series program
- LOI for up to 61 C Series aircraft, including 31 firm from a European customer
- Execution of transformation plan continues to deliver margin(1) growth; full
year EBIT margin guidance for all business units reaffirmed(2)
- Consolidated full-year EBIT before special items(2) expected to be at least
$630M, the high end of guidance range
- Engine delivery delays to impact C Series program; with 20-22 deliveries now
expected for the year(2)
- Revenues and free cash flow usage(2)(3) for the full year expected to be
approximately$16.3B and $1B, respectively
MONTREAL, QUEBEC--(Marketwired - Nov 2, 2017) - Bombardier
(TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF) today reported its third quarter 2017
results, highlighting continued progress transforming the company and building
earnings power. The company now expects consolidated full-year EBIT before
special items to be at least $630 million, the high end of its previous
guidance.
"This was a very exciting quarter for Bombardier as we welcomed Airbus to the C
Series program," said Alain Bellemare, President and Chief Executive Officer,
Bombardier Inc. "This is a game-changing step for Bombardier. It positions the C
Series program for long-term commercial success and will generate new and
sustainable value for our customers, suppliers and shareholders."
"We also continue to make solid progress executing our turnaround plan, and are
very much on track to achieve the goals we set out in November 2015," Bellemare
continued. "We have clearly demonstrated our ability to reduce costs, improve
productivity and grow margins. We have executed on our growth programs and we
are taking big strategic steps necessary to unlock the full value of our
portfolio."
For the quarter, Bombardier reported revenues of $3.8 billion. EBIT before
special items grew to $165 million, nearly doubling the third quarter 2016
amount. EBIT margins before special items were 8.5% for Transportation; 8.8% for
Business Aircraft; and 9.3% for Aerostructures. Commercial Aircraft recorded
EBIT before special items in line with the C Series ramp-up plan. Free cash flow
usage was also in line with guidance at $495 million for the quarter.
Along with its third quarter results, Bombardier announced that a European
customer has signed a letter of intent (LOI) for up to 61 C Series, including
31 firm aircraft and options for an additional 30 aircraft. The LOI is subject
to the execution of a purchase agreement which is expected before year end.
Based on the list price, a firm order would be valued at approximately $2.4
billion. This amount would increase to nearly $4.8 billion should all 30 options
be exercised.
"This significant new order confirms the increasing confidence customers have in
the C Series," said Bellemare. "Looking forward, as Airbus joins the program,
and with the C Series continuing to prove itself in service, we expect sales
momentum to accelerate quickly."
Other highlights of the Company's performance in the third quarter include a
20% revenue growth at Transportation compared to the same period last year,
along with margin expansion and strong orders. Business Aircraft also delivered
margin expansion as it continues to improve productivity and operational
efficiency, demonstrating its ability to perform in any market environment. The
Global 7000 made progress toward its certification with the fourth test aircraft
entering flight-testing in the quarter. This new ultra-long range aircraft
remains on schedule to enter service in the second half of 2018.
Bombardier also announced the appointment of Douglas R. Oberhelman to its Board
of Directors. Mr. Oberhelman spent 41 years at Caterpillar Inc., where he held
various executive positions, including Executive Chairman, a role he held until
his retirement in March 2017. Mr. Oberhelman replaces Patrick Pichette, who
expressed his intention to resign from Bombardier's Board of Directors for
personal reasons. The Board accepted Mr. Pichette's resignation and thanks him
for his four years of dedicated service and the insight and energy he brought to
the Company during his tenure.
SELECTED RESULTS
RESULTS OF THE QUARTER
--------------------------------------------------------------------------------
Three-month periods ended September 30 2017 2016 Variance
--------------------------------------------------------------------------------
Revenues $ 3,835 $ 3,736 3 %
EBIT $ 115 $ 63 83 %
EBIT margin 3.0 % 1.7 % 130 bps
EBIT before special items $ 165 $ 87 90 %
EBIT margin before special items 4.3 % 2.3 % 200 bps
EBITDA before special items((3)) $ 236 $ 172 37 %
EBITDA margin before special items((3)) 6.2 % 4.6 % 160 bps
Net loss $ (117 ) $ (94 ) (24 )%
Diluted EPS (in dollars) $ (0.05 ) $ (0.04 ) (25 )%
Adjusted net loss((3)) $ (29 ) $ (10 ) (190 )%
Adjusted EPS (in dollars)((3)) $ (0.01 ) $ 0.00 nmf
Net additions to PP&E and intangible
assets $ 287 $ 248 16 %
Free cash flow usage $ (495 ) $ (320 ) (55 )%
--------------------------------------------------------------------------------
RESULTS YEAR-TO-DATE
--------------------------------------------------------------------------------
Nine-month periods ended September 30 2017 2016 Variance
--------------------------------------------------------------------------------
Revenues $ 11,503 $ 11,959 (4 )%
EBIT $ 97 $ (132 ) 173 %
EBIT margin 0.8 % (1.1 )% 190 bps
EBIT before special items $ 457 $ 323 41 %
EBIT margin before special items 4.0 % 2.7 % 130 bps
EBITDA before special items $ 689 $ 595 16 %
EBITDA margin before special items 6.0 % 5.0 % 100 bps
Net loss $ (444 ) $ (722 ) 39 %
Diluted EPS (in dollars) $ (0.19 ) $ (0.36 ) 47 %
Adjusted net income (loss) $ 12 $ (127 ) 109 %
Adjusted EPS (in dollars) $ 0.01 $ (0.09 ) 111 %
Net additions to PP&E and intangible
assets $ 952 $ 874 9 %
Free cash flow usage $ (1,658 ) $ (1,560 ) (6 )%
--------------------------------------------------------------------------------
As at September December
30, 2017 31, 2016
--------------------------------------------------------------------------------
Available short-term capital
resources((4)) $ 2,811 $ 4,477 (37 )%
--------------------------------------------------------------------------------
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 $3.8 billion in the quarter and
$11.5 billion in the nine-month period, relative to $3.7 billion and $12.0
billion for the same periods last year, mainly as a result of continued growth
in Transportation and previously announced adjusted volumes in Aerospace
segments, consistent with market demand. EBIT before special items was $165
million and $457 million respectively for the quarter and nine-month period, up
90% and 41% for the same periods last year. This growth was driven by continued
significant margin improvements at Transportation, Business Aircraft and
Aerostructures, which all reached 8.5% or above in the quarter. Free cash flow
usage was $495 million in the quarter and $1.7 billion in the nine-month period
as a result of an increase in Transportation's ramp-up in production ahead of
deliveries coupled with the production ramp-up in aerospace for the Global 7000
and C Series programs. The financial performance year-to-date supports
consolidated EBIT guidance before special items for the full year of at least
$630 million, the upper end of our previous guidance range. Consolidated revenue
and free cash flow usage guidance for the year are revised to approximately
$16.3 billion and $1.0 billion respectively to align with approximately 20 to
22 C Series deliveries due to engine delivery delays from Pratt & Whitney.
Certain engines originally designated for production aircraft in the fourth
quarter will be redirected to support spare engine requirements of current C
Series customers.
SEGMENTED RESULTS AND HIGHLIGHTS
Business Aircraft
Results of the quarter
--------------------------------------------------------------------------------
Three-month periods ended September 30 2017 2016 Variance
--------------------------------------------------------------------------------
Revenues $ 1,095 $ 1,314 (17 )%
Aircraft deliveries (in units) 31 36 (5 )
EBIT $ 93 $ 84 11 %
EBIT margin 8.5 % 6.4 % 210 bps
EBIT before special items $ 96 $ 84 14 %
EBIT margin before special items 8.8 % 6.4 % 240 bps
EBITDA before special items $ 117 $ 120 (3 )%
EBITDA margin before special items 10.7 % 9.1 % 160 bps
Net additions to PP&E and intangible
assets $ 242 $ 165 47 %
--------------------------------------------------------------------------------
As at September December
30, 2017 31, 2016
--------------------------------------------------------------------------------
Order backlog (in billions of dollars) $ 14.5 $ 15.4 (6 )%
--------------------------------------------------------------------------------
* Delivered 31 aircraft during the quarter. With year-to-date deliveries
totaling 96 aircraft, we are on track to reach our guidance of approximately
135 aircraft as we head into the seasonally strongest quarter of the
year.((2))
* Continued strong execution on our transformation plan and cost control
initiatives with EBIT margin before special items yielding another strong
quarter at 8.8%, or 8.5% year-to-date. On track to achieve margins of
approximately 8.0% for the full year.((2))
* The Global 7000 aircraft is on track for entry-into-service in the second
half of 2018. The fourth FTV successfully completed its maiden flight on
September 28 and will be used for interior validation testing. The four FTVs
have accumulated over 900 flight hours to date. The aircraft continue to
perform extremely well and to exhibit a high level of reliability. The
results show a maturity which is in full support of the planned
certification activities. Final preparations are under way for FTV5's
initial flight and multiple Global 7000 business jets are in final assembly.
* In line with our strategy to grow our aftermarket business, we expanded our
service center in Tucson, Arizona, opened parts depots in Miami, Florida and
Tianjin, China as well as introduced new subscription-based services
including Smart Services and Smart Training programs.
Commercial Aircraft
Results of the quarter
--------------------------------------------------------------------------------
Three-month periods ended September 30 2017 2016 Variance
--------------------------------------------------------------------------------
Revenues $ 525 $ 538 (2 )%
Aircraft deliveries (in units) 16 16 -
Net orders (in units) 25 (9 ) 34
Book-to-bill ratio((5)) 1.6 nmf nmf
EBIT $ (95 ) $ (107 ) 11 %
EBIT margin (18.1 )% (19.9 )% 180 bps
EBIT before special items $ (94 ) $ (107 ) 12 %
EBIT margin before special items (17.9 )% (19.9 )% 200 bps
EBITDA before special items $ (79 ) $ (96 ) 18 %
EBITDA margin before special items (15.0 )% (17.8 )% 280 bps
Net additions to PP&E and intangible
assets $ 16 $ 47 (66 )%
--------------------------------------------------------------------------------
As at September December
30, 2017 31, 2016
--------------------------------------------------------------------------------
Order backlog (in units) 433 436 (3 )
--------------------------------------------------------------------------------
- On October 16, 2017 we announced a partnership with Airbus SE (Airbus) for the
C Series, which should more than double the value of the program. The
combination of Airbus' global reach and scale with Bombardier's newest, state-
of-the-art jet aircraft family is expected to drive commercial momentum and
production cost savings. In addition, the partnership intends to manufacture C
Series aircraft from a second final assembly line in Mobile, Alabama, providing
U.S. airline customers with an optimized solution in the 100-150 seat single-
aisle segment. The transaction remains subject to regulatory approvals and is
expected to close in the second half of 2018.((6))
- We delivered 16 aircraft, including 4 CRJ Series, 7 Q400 and 5 C Series during
the quarter. With year-to-date deliveries of regional jets and turboprops
totaling 39 aircraft, we are on track to reach 50 aircraft for the year.((2))
- During the quarter, we received an order from SpiceJet for up to 50 Q400
turboprop aircraft. The purchase agreement, the largest Q400 turboprop order
ever, includes a firm order for 25 Q400 turboprops and purchase rights on an
additional 25 aircraft. Based on list price, the order is valued at up to $1.7
billion. This order will launch our new high-density 90-seat model.
- New engine delivery delays from Pratt & Whitney will impact full year C Series
aircraft deliveries. Furthermore, certain engines originally designated for
production aircraft in the fourth quarter will be redirected to support spare
engine requirements of current C Series customers. As a result, approximately 8
to 10 C Series aircraft are now expected to be delivered in the fourth quarter,
and approximately 20 to 22 aircraft for the full year. Commercial Aircraft's
revenue guidance for 2017 is therefore adjusted to approximately $2.5
billion.((2)) We have entered into a LOI whereby Pratt & Whitney has agreed to
support excess inventory generated by engine delays by providing us a supplier
advance starting in the fourth quarter. This advance will not be included in our
free cash flow, but will benefit overall liquidity and cash on hand. The LOI is
subject to the execution of definitive agreements between both parties, which is
expected before year end.
- C Series aircraft program continues to gain market acceptance with exceptional
performance:
* Subsequent to the end of the third quarter, we signed a Letter of Intent
with a European customer for up to 61 C Series aircraft, including a firm
order for 31 aircraft with options for an additional 30 aircraft. Based on
list price of the aircraft, the firm order would be valued at approximately
$2.4 billion. The LOI is subject to the execution of a purchase agreement,
which is expected before year end;
* The C Series aircraft is performing very well, with up to 3% better fuel
burn than first advertised, creating additional opportunities and improving
economics of the aircraft;
* The CS100 aircraft from Swiss International Air Lines (SWISS) completed its
first commercial flight into London City Airport in August, becoming the
largest passenger aircraft certified to operate from this challenging city
airport, offering new possibilities for airlines and the flying public; and
* The C Series aircraft received a second Environmental Product Declaration,
confirming its unmatched environmental performance. Bombardier CS300's
Environmental Product Declaration (EPD®) comes one year after the EPD® for
the CS100 aircraft.
- We released our 20-year Market Forecast for 2017-2036, the market for which we
are the only manufacturer with a complete range of solutions (CRJ Series, Q400
and C Series). We expect this segment of the market, currently at 6,900
aircraft, to double by 2036 to 14,250, driven by fleet retirement and market
growth.((7))
- With respect to the petition filed by The Boeing Company (Boeing) before the
U.S. Department of Commerce and the U.S. International Trade Commission
regarding the alleged threat caused by future exports of the C Series family of
aircraft to the U.S., we strongly disagree with the Commerce Department's
preliminary determinations of 300% duties on imports of 100-150 seat large civil
aircraft from Canada. We remain confident that, at the end of the processes, the
U.S. International Trade Commission will reach the right conclusion, which is
that Boeing suffered no injury. We expect the U.S. International Trade
Commission to issue in the first half of 2018 its final determination on the
threat of injury.
Aerostructures and Engineering Services
Results of the quarter
--------------------------------------------------------------------------------
Three-month periods ended September 30 2017 2016 Variance
--------------------------------------------------------------------------------
Revenues $ 343 $ 337 2 %
External order intake $ 96 $ 104 (8 )%
External book-to-bill ratio((8)) 0.9 1.0 (0.1 )
EBIT $ 38 $ 20 90 %
EBIT margin 11.1 % 5.9 % 520 bps
EBIT before special items $ 32 $ 29 10 %
EBIT margin before special items 9.3 % 8.6 % 70 bps
EBITDA before special items $ 43 $ 42 2 %
EBITDA margin before special items 12.5 % 12.5 % 0 bps
Net additions to PP&E and intangible
assets $ 4 $ 7 (43 )%
--------------------------------------------------------------------------------
As at September December
30, 2017 31, 2016
--------------------------------------------------------------------------------
External order backlog $ 88 $ 42 110 %
--------------------------------------------------------------------------------
* EBIT margin before special items was 9.3% for the quarter and 8.1% year-to-
date. On track to achieve margin of approximately 8% for the full year.((2))
* Significantly ramped-up operations in line with the expected program growth
for the C Series and Global 7000 aircraft.((2))
Transportation
Results of the quarter
--------------------------------------------------------------------------------
Three-month periods ended September 30 2017 2016 Variance
--------------------------------------------------------------------------------
Revenues $ 2,134 $ 1,782 20 %
Order intake (in billions of dollars) $ 1.8 $ 2.9 (38 )%
Book-to-bill ratio((9)) 0.9 1.6 (0.7 )
EBIT $ 129 $ 125 3 %
EBIT margin 6.0 % 7.0 % (100) bps
EBIT before special items $ 181 $ 140 29 %
EBIT margin before special items 8.5 % 7.9 % 60 bps
EBITDA before special items $ 204 $ 164 24 %
EBITDA margin before special items 9.6 % 9.2 % 40 bps
Net additions to PP&E and intangible
assets $ 18 $ 28 (36 )%
--------------------------------------------------------------------------------
As at September December
30, 2017 31, 2016
--------------------------------------------------------------------------------
Order backlog (in billions of dollars) $ 33.0 $ 30.1 10 %
--------------------------------------------------------------------------------
* Revenues in the third quarter increased by 20% to $2.1 billion, driven by
the ramp-up of key projects, which are gradually contributing to the
approximately $8.5 billion guidance for the year.((2))
* Order intake of $1.8 billion in the third quarter, primarily related to
contracts signed in Asia-Pacific and Europe, bringing our book-to-bill
ratio((9)) to 1.1 for the nine-month period. The majority of our order
intake is based on current platforms, supporting the re-use of existing
technologies.
* EBIT margin before special items of 8.5% in the third quarter and 8.2% for
the nine-month period, puts us on track to reach our guidance of
approximately 8% for the full year.
* Transformation initiatives continue to support margin expansion. In
September 2017, management and the General Works Council of Bombardier
Transportation GmbH formalized a general company agreement regarding the
transformation in Germany, paving the way for key milestones of the
transformation including the specialization of German sites.
Warrants in connection with the Airbus partnership
In connection with the private placement to Airbus of warrants to acquire up to
100,000,000 Class B shares (subordinate voting) of Bombardier, the TSX has
determined to accept notice of the private placement of such warrants and has
conditionally approved the listing of the Class B Shares issuable pursuant to
the terms of the warrants on the TSX. Listing will be subject to Bombardier
fulfilling all of the listing requirements of the TSX. Security holder approval
is required under TSX rules due to the fact that the warrants will be issued
later than 45 days from the date upon which the exercise price was established,
as set out in Section 607(f)(i) of the TSX Company Manual. Such approval has
been obtained, as agreed with the TSX and in reliance on the exemption
contemplated by Section 604(d) of the TSX Company Manual, by way of written
consent of shareholders holding more than 50% of the voting rights attached to
all of Bombardier's issued and outstanding shares.
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 and our shares are traded on the
Toronto Stock Exchange (BBD). 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, CRJ Series, CS100, CS300, C Series, Global, Global 7000, Q400 and
Smart Services 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 before special items or EBIT margin before special
items. Non-GAAP financial measures. See Caution regarding non-GAAP
measures at the end of this press release.
((2)) See the forward-looking statements disclaimer and each reportable
segment's Guidance and forward-looking statements section in the 2016
Financial Report for details regarding the assumptions on which the
guidance is based.
((3)) Non-GAAP financial measures. See Caution regarding non-GAAP measures at
the end of this press release.
((4)) Defined as cash and cash equivalents plus the amount available under the
revolving credit facilities.
((5)) Defined as net orders received over aircraft deliveries, in units.
((6) ) See the forward-looking statements disclaimer at the end of this press
release.
((7) ) Available on Bombardier's dedicated investor relations website at
ir.bombardier.com. Refer to the forward-looking statements disclaimer at
the end of this press release.
((8) ) Defined as new external orders over external revenues.
((9) ) 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 Nine-month periods
ended September 30 ended September 30
--------------------------------------------------------------------------------
2017 2016 2017 2016
--------------------------------------------------------------------------------
Revenues
Business Aircraft $ 1,095 $ 1,314 $ 3,488 $ 4,090
Commercial Aircraft 525 538 1,705 1,918
Aerostructures and
Engineering Services 343 337 1,157 1,230
Transportation 2,134 1,782 6,032 5,626
Corporate and Elimination (262 ) (235 ) (879 ) (905 )
--------------------------------------------------------------------------------
$ 3,835 $ 3,736 $ 11,503 $ 11,959
--------------------------------------------------------------------------------
EBIT before special items
Business Aircraft $ 96 $ 84 $ 296 $ 269
Commercial Aircraft (94 ) (107 ) (235 ) (276 )
Aerostructures and
Engineering Services 32 29 94 94
Transportation 181 140 495 379
Corporate and Elimination (50 ) (59 ) (193 ) (143 )
--------------------------------------------------------------------------------
$ 165 $ 87 $ 457 $ 323
--------------------------------------------------------------------------------
Special Items
Business Aircraft $ 3 $ - $ 34 $ (109 )
Commercial Aircraft 1 - 3 483
Aerostructures and
Engineering Services (6 ) 9 (6 ) (10 )
Transportation 52 15 284 144
Corporate and Elimination - - 45 (53 )
--------------------------------------------------------------------------------
$ 50 $ 24 $ 360 $ 455
--------------------------------------------------------------------------------
EBIT
Business Aircraft $ 93 $ 84 $ 262 $ 378
Commercial Aircraft (95 ) (107 ) (238 ) (759 )
Aerostructures and
Engineering Services 38 20 100 104
Transportation 129 125 211 235
Corporate and Elimination (50 ) (59 ) (238 ) (90 )
--------------------------------------------------------------------------------
$ 115 $ 63 $ 97 $ (132 )
--------------------------------------------------------------------------------
Reconciliation of EBITDA before special items and EBITDA to EBIT
--------------------------------------------------------------------------------
Three-month
periods
ended September Nine-month periods
30 ended September 30
--------------------------------------------------------------------------------
2017 2016 2017 2016
--------------------------------------------------------------------------------
EBIT $ 115 $ 63 $ 97 $ (132 )
Amortization 69 85 225 272
Impairment charges on PP&E and intangible
assets((1)) 2 - 45 -
--------------------------------------------------------------------------------
EBITDA 186 148 367 140
Special items excluding impairment
charges on PP&E and intangible
assets((1)) 50 24 322 455
--------------------------------------------------------------------------------
EBITDA before special items $ 236 $ 172 $ 689 $ 595
--------------------------------------------------------------------------------
((1)) Refer to the Consolidated results of operations section in the
Corporation's MD&A for details regarding special items.
Reconciliation of adjusted net loss to net loss and computation of adjusted EPS
--------------------------------------------------------------------------------
Three-month periods ended September 30
--------------------------------------------------------------------------------
2017 2016
--------------------------------------------------------------------------------
(per share) (per share)
--------------------------------------------------------------------------------
Net loss $ (117 ) $ (94 )
Adjustments to EBIT related to
special items((1)) 50 $ 0.02 24 $ 0.01
Adjustments to net financing
expense related to:
Accretion on net
retirement benefit
obligations 21 0.01 16 0.01
Interest related to tax
litigation((1)) 11 0.01 - -
Net change in
provisions arising from
changes in interest
rates and net loss on
certain financial
instruments 7 0.00 50 0.02
Tax impact of special((1)) and
other adjusting items (1 ) 0.00 (6 ) 0.00
--------------------------------------------------------------------------------
Adjusted net loss (29 ) (10 )
Net loss attributable to NCI 26 15
Preferred share dividends,
including taxes (7 ) (7 )
--------------------------------------------------------------------------------
Adjusted net loss attributable
to equity holders of Bombardier
Inc. $ (10 ) $ (2 )
--------------------------------------------------------------------------------
Weighted-average diluted number
of common shares (in thousands) 2,195,330 2,210,085
--------------------------------------------------------------------------------
Adjusted EPS (in dollars) $ (0.01 ) $ 0.00
--------------------------------------------------------------------------------
Reconciliation of adjusted net income (loss) to net loss and
computation of adjusted EPS
--------------------------------------------------------------------------------
Nine-month periods ended September 30
--------------------------------------------------------------------------------
2017 2016
--------------------------------------------------------------------------------
(per share) (per share)
--------------------------------------------------------------------------------
Net loss $ (444 ) $ (722 )
Adjustments to EBIT related to
special items((1)) 360 $ 0.16 455 $ 0.21
Adjustments to net financing
expense related to:
Accretion on net retirement
benefit obligations 59 0.03 50 0.02
Net change in provisions
arising from changes in
interest rates and net
(gain) loss on certain
financial instruments 38 0.02 75 0.03
Interest related to tax
litigation((1)) 11 0.00 26 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 (12 ) (0.01 ) (19 ) 0.00
--------------------------------------------------------------------------------
Adjusted net income (loss) 12 (127 )
Net loss (income) attributable
to NCI 36 (49 )
Preferred share dividends,
including taxes (19 ) (18 )
--------------------------------------------------------------------------------
Adjusted net income (loss)
attributable to equity holders
of Bombardier Inc. $ 29 $ (194 )
--------------------------------------------------------------------------------
Weighted-average diluted number
of common shares (in thousands) 2,254,047 2,217,102
--------------------------------------------------------------------------------
Adjusted EPS (in dollars) $ 0.01 $ (0.09 )
--------------------------------------------------------------------------------
Reconciliation of adjusted EPS to diluted EPS (in dollars)
--------------------------------------------------------------------------------
Three-month periods ended September 30
--------------------------------------------------------------------------------
2017 2016
--------------------------------------------------------------------------------
Diluted EPS $ (0.05 ) $ (0.04 )
Impact of special((1)) and other adjusting
items 0.04 0.04
--------------------------------------------------------------------------------
Adjusted EPS $ (0.01 ) $ 0.00
--------------------------------------------------------------------------------
Reconciliation of adjusted EPS to diluted EPS (in dollars)
--------------------------------------------------------------------------------
Nine-month periods ended September 30
--------------------------------------------------------------------------------
2017 2016
--------------------------------------------------------------------------------
Diluted EPS $ (0.19 ) $ (0.36 )
Impact of special((1)) and other
adjusting items 0.20 0.27
--------------------------------------------------------------------------------
Adjusted EPS $ 0.01 $ (0.09 )
--------------------------------------------------------------------------------
((1)) Refer to the Consolidated results of operations section in the
Corporation's MD&A for details regarding special items.
Reconciliation of free cash flow usage to cash flows from operating activities
--------------------------------------------------------------------------------
Three-month
periods
ended September Nine-month periods
30 ended September 30
--------------------------------------------------------------------------------
2017 2016 2017 2016
--------------------------------------------------------------------------------
Cash flows from operating activities $ (208 ) $ (72 ) $ (706 ) $ (686 )
Net additions to PP&E and intangible
assets (287 ) (248 ) (952 ) (874 )
--------------------------------------------------------------------------------
Free cash flow usage $ (495 ) $ (320 ) $ (1,658 ) $ (1,560 )
--------------------------------------------------------------------------------
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 completion, anticipated timing of the transaction with Airbus
described herein and the receipt of regulatory and other approvals required with
respect to this transaction and the anticipated timing thereof; the governance,
funding and liquidity of C Series Aircraft Limited Partnership (CSALP); the
impact and expected benefits of each of the transaction with Airbus described
herein, the investment by the Government of Québec in CSALP and the private
placement of a minority stake in Transportation by the Caisse de dépôt et
placement du Québec (CDPQ) on the Corporation's operations, infrastructure,
capabilities, development, growth and other opportunities, geographic reach,
scale, footprint, financial condition, access to capital and overall strategy;
and the impact of such transaction and investments on its 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,
as they relate to Bombardier and CSALP. Forward-looking statements are presented
for the purpose of assisting investors and others in understanding certain key
elements of the Corporation's current objectives, strategic priorities,
expectations and plans, and in obtaining a better understanding of the
Corporation's business and anticipated operating environment. Readers are
cautioned that such information may not be appropriate for other purposes.
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 Bombardier's and CSALP's 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. The assumptions underlying the forward-looking statements
made in this press release in relation to the transaction with Airbus discussed
herein include the following material assumptions: the satisfaction of all
conditions of closing and the successful completion of the transaction within
the anticipated timeframe, including receipt of regulatory (including antitrust)
and other approvals; the fulfillment and performance by each party of its
obligations pursuant to the transaction agreement and future commercial
agreements and absence of significant inefficiencies and other issues in
connection therewith; the realization of the anticipated benefits and synergies
of the transaction in the timeframe anticipated; the Corporation's ability to
continue with its current funding plan of CSALP and to fund, if required, any
cash shortfalls; adequacy of cash planning and management and project funding;
and the accuracy of its assessment of anticipated growth drivers and sector
trends. For additional information with respect to the assumptions underlying
the forward-looking statements made in this press release, refer to the
Strategic Priorities and Guidance and forward-looking statements sections in the
Management's Discussion and Analysis (MD&A) of the Corporation's financial
report for the fiscal year ended December 31, 2016.
With respect to the transaction with Airbus discussed herein specifically,
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 the failure to receive or delay in receiving regulatory
(including antitrust) or other approvals or otherwise satisfy the conditions to
the completion of the transaction or delay in completing the transaction and
uncertainty regarding the length of time required to complete the transaction;
changes in the terms of the transaction; the failure by either party to satisfy
and perform its obligations pursuant to the transaction agreement and future
commercial agreements and/or significant inefficiencies and other issues arising
in connection therewith; the impact of the announcement of the transaction on
the Corporation's relationships with third parties, including commercial
counterparties, employees and competitors, strategic relationships, operating
results and businesses generally; the failure to realize, in the timeframe
anticipated or at all, the anticipated benefits and synergies of the
transaction; the Corporation's inability to continue with its current funding
plan of CSALP and to fund, if required, the cash shortfalls; inadequacy of cash
planning and management and project funding.
Certain other 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 the
Corporation's business environment (such as risks associated with "Brexit", the
financial condition of the airline industry, business aircraft customers, and
the rail industry; trade policy; increased competition; political instability
and force majeure events or natural disasters), 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 and capital expenditures 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; environmental,
health and safety risks; 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 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. Other risks and uncertainties not
presently known to the Corporation or that it presently believes are not
material could also cause actual results or events to differ materially from
those expressed or implied in forward-looking statements. In addition, there can
be no assurance that the proposed transaction with Airbus will occur or that the
anticipated strategic benefits and operational, competitive and cost synergies
will be realized in their entirety, in part or at all. The forward-looking
statements set forth herein reflect management's expectations as at the date of
this report and are subject to change after such date. Unless otherwise required
by applicable securities laws, the Corporation expressly disclaim any intention,
and assume 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
Simon Letendre
Senior Advisor, Media Relations and Public Affairs
Bombardier Inc.
+514 861 9481
Patrick Ghoche
Vice President, Investor Relations
Bombardier Inc.
+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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