- סך הכנסות(1) של 3.5 מיליארד דולר, נמוכות ב-5%
לעומת השנה הקודמת בגלל שיבושים
שקשורים במגיפה ומכירות נכסים; ההכנסות ממטוסי מנהלים הגיעו ל-1.2 מיליארד
דולר עם 24 מסירות, גידול של 10% לעומת השנה הקודמת, בגלל האצת המסירות של Global
7500
- EBITDA
כולל מתואם(1)(2
של 176 מיליון דולר; EBIT כולל מדווח(1)(2) של 15
מיליון דולר
- שימוש בתזרים
המזומנים החופשי(2) של 0.7
מיליארד דולר, המטרה ממשיכה להיות נקודת האיזון במחצית השנייה של השנה; שימוש
בתזרים המזומנים החופשי התפעולי של 0.6 מיליארד דולר
- נזילות(4) פרו-פורמה(2) של בערך 3.0 מיליארד דולר, כולל
מזומנים בקופה של 1.9 מיליארד דולר
ו-275 מיליון דולר מהמכירה שנסגרה לאחרונה של עסקי מבני התעופה
- המכירה של בומברדייה
תחבורה לאלסטום עדיין צפויה להיסגר ברבעון הראשון של 2021
- מעבר לחברה שעוסקת
רק במטוסי מנהלים; טיפול במבנה העלויות כדי להגיע לרווחיות חזקה יותר בתנאי
השוק הנוכחיים
כל הסכומים בהודעה לעיתונות הזאת
הם בדולרים אמריקנים אלא אם מצוין אחרת. הסכומים בטבלאות הם במיליונים פרט לסכומים
למניה, אלא אם מצוין אחרת.
מונטריאול, 5 בנובמבר
2020, (GLOBE NEWSWIRE) :
בומברדייה (TSX:
BBD.B) פרסמה היום את התוצאות הכספיות שלה ברבעון השלישי של 2020. החברה
גם מסרה עדכון על ההתקדמות שלה להשגת העדיפויות שלה בטווח הקצר והמעבר שלה לחברה
שעוסקת רק במטוסי מנהלים.
"המגיפה שנמשכת ממשיכה
להציב אתגרים ללא תקדים, אבל בומברדייה נשארת ממוקדת בקידום העדיפויות החשובות
שלה, שהן לטפל היטב באנשים ובלקוחות שלנו, להבטיח נזילות מספיקה כדי להתגבר על
הסופה, ולהמשיך לנוע קדימה במיצוב מחדש האסטרטגי של בומברדייה כחברת תעופה רזה
יותר של מטוסי מנהלים", אמר אריק מרטל, נשיא ומנהל כללי, Bombardier Inc..
"ברבעון השלישי
הייתה התקדמות איתנה בכל אחת מהעדיפויות האלה. הבטחנו נזילות נוספת באמצעות אמצעי
אשראי מובטח עדיף חדש של 1.0 דולר, קידמנו את מכירות הנכסים שלנו לפי התוכנית,
וכשהמסירות גדלות בכל העסקים, המטרה היא עדיין תזרים מזומנים חופשי שיגיע לנקודת
האיזון במחצית השנייה של השנה, בהנחה שהמגיפה לא תפריע לפעילות".
ההכנסות של 35 מיליארד
דולר ברבעון השלישי משקפות את ההתאוששות ההדרגתית של הפעילות בתעופה ובתחבורה
מהשיבושים שקשורים בקוביד-19 במחצית הראשונה של 2020. ההכנסות ממטוסי מנהלים
ברבעון עלו ב-10% לעומת השנה הקודמת, בגלל מסירות שיא של 8 מטוסי Global 7500,
שיותר מקיזזו הכנסות נמוכות יותר בשירותים כי הגבלות בגבולות בינ"ל, קיטון
בפעילות העסקית ונסיעות ממשיכים ללחוץ על השימוש במטוסי מנהלים.
ה-EBITDA
המתואם הכולל היה 176 מיליון דולר ברבעון וה-EBIT
המתואם היה 51 מיליון דולר. התוצאות האלה משקפות תמהיל הכנסות שלילי ממטוסים
בתעופה, וגם את ההשפעה של כמה פרויקטי ציוד נייד עם שולי רווח נמוכים, וההשפעה
המתמשכת של המגיפה על הפעילות והלקוחות של התחבורה. ה-EBIT הכולל
היה 15 מיליון דולר ברבעון.
השימוש בתזרים המזומנים
החופשי היה 706 מיליון דולר ברבעון, שתמך בדרישות ההון החוזר של התעופה לרבעון
רביעי שצפוי להיות חזק מבחינה עונתית, כולל מסירות של בערך תריסר Global 7500 לפני
סוף השנה(3). תזרים המזומנים החופשי בתחבורה היה קרוב לנקודת האיזון ברבעון.
השימוש המאוחד בתזרים המזומנים החופשי מפעילות היה 644 מיליון דולר.
בומברדייה התחילה את
הרבעון הרביעי עם נזילות פרו-פורמה(4) חזקה של בערך 3.0 מיליארד דולר. זה כולל מזומנים בקופה של 1.9
מיליארד דולר, גישה לסכום שלא נמשך של בערך 600 מיליון דולר באמצעי האשראי המתגלגל
של התחבורה נכון ל-30 בספטמבר 2020, 250 מיליון דולר במסגרת אמצעי האשראי המובטח
העדיף החדש נכון ל-30 בספטמבר 2020 והכנסות של 275 מיליון דולר מהמכירה של עסקי
מבני התעופה. החברה מצפה לחזק עוד את הנזילות עם יצירת מזומנים חיובית ברבעון
הרביעי, בגלל שחרור של הון חוזר בתעופה ובתחבורה(3).
עם הסכם המכירה וקנייה
הסופי שנחתם בספטמבר והאישור של בעלי המניות של אלסטום בשבוע שעבר, בומברדייה
מאמינה שהיא במסלול יציב לסגור את המכירה של בומברדייה תחבורה ברבעון הראשון של
2021. כתוצאה מכך, התוצאות של עסקי התחבורה סווגו כפעילויות שהופסקו החל ב-30
בספטמבר 2020. בסגירה, החברה מצפה להכנסות נקיות במזומן של 4.0 מיליארד דולר,
שיופנו לפירעון חובות(3).
"אנחנו מאוד נרגשים
לגבי העתיד שלנו כחברה שמתמקדת במטוסי מנהלים, לגבי ההזדמנויות שלנו להגדיל את
עסקי השירותים ולמנף את תיק המוצרים המוביל בענף שלנו", הוסיף מרטל.
"אנחנו מצפים לשתף את הפרטים של התוכניות שלנו בעתיד הקרוב, כשנגבש סופית את
אסטרטגיית ניהול החוב שלנו ואת היוזמות להפחתת עלויות כדי להבטיח את הרווחיות שלנו
בשוק הנוכחי וצמיחה חזקה ברגע שהמגיפה תשכך".
אודות
בומברדייה
עם יותר מ-60,000 עובדים
על פני שני מגזרים עסקיים, בומברדייה היא מובילה גלובלית בענף התחבורה, שיוצרת
מטוסים ורכבות חדשניים שמשנים את השוק. המוצרים והשירותים שלנו מעניקים חוויות
נסיעה מהמעלה הראשונה שקובעות אמות מידה חדשות בנוחיות של הנוסעים, יעילות
אנרגטית, אמינות ובטיחות.
לבומברדייה,
שהמטה שלה במונטריאול, קנדה, יש אתרי ייצור והנדסה ב-25 מדינות וגם תיק רחב של
מוצרים ושירותים לשוקי התעופה העסקית, התעופה המסחרית והתחבורה המסילתית. המניות
של בומברדייה נסחרות בבורסה לניירות ערך של טורונטו (BBD).
בשנת הכספים שהסתיימה ב-31 בדצמבר 2019 בומברדייה רשמה הכנסות של 15.8 מיליארד
דולר. חדשות ומידע זמינים בכתובת bombardier.com או
תעקבו אחרינו בטוויטר @Bombardier
בומברדייה,
Global
7500 ו-Learjet 75 Liberty הם שמות מסחר של Bombardier Inc. או
החברות הבנות שלה.
SELECTED RESULTS
|
RESULTS
OF THE QUARTER |
||||||||||||||||||||||||
|
Three-month periods ended September 30 |
2020 |
|
|
2019 |
|
|
||||||||||||||||||
|
|
Continuing |
|
|
Discontinued |
|
|
Total |
|
|
Continuing |
|
|
Discontinued |
|
|
Total |
|
|
||||||
|
|
|
|
|
restated(5) |
|
|
restated(5) |
|
|
|
||||||||||||||
|
Revenues |
$ |
1,405 |
|
|
$ |
2,120 |
|
|
$ |
3,525 |
|
|
$ |
1,547 |
|
|
$ |
2,175 |
|
|
$ |
3,722 |
|
|
|
Gross margin |
$ |
168 |
|
|
$ |
161 |
|
|
$ |
329 |
|
|
$ |
220 |
|
|
$ |
220 |
|
|
$ |
440 |
|
|
|
Adjusted EBITDA |
$ |
84 |
|
|
$ |
92 |
|
|
$ |
176 |
|
|
$ |
111 |
|
|
$ |
144 |
|
|
$ |
255 |
|
|
|
Adjusted EBITDA margin(2) |
6.0 |
|
% |
4.3 |
|
% |
5.0 |
|
% |
7.2 |
|
% |
6.6 |
|
% |
6.9 |
|
% |
||||||
|
Adjusted EBIT |
$ |
(11 |
) |
|
$ |
62 |
|
|
$ |
51 |
|
|
$ |
49 |
|
|
$ |
110 |
|
|
$ |
159 |
|
|
|
Adjusted EBIT margin(2) |
(0.8 |
) |
% |
2.9 |
|
% |
1.4 |
|
% |
3.2 |
|
% |
5.1 |
|
% |
4.3 |
|
% |
||||||
|
EBIT |
$ |
(29 |
) |
|
$ |
44 |
|
|
$ |
15 |
|
|
$ |
55 |
|
|
$ |
88 |
|
|
$ |
143 |
|
|
|
EBIT margin |
(2.1 |
) |
% |
2.1 |
|
% |
0.4 |
|
% |
3.6 |
|
% |
4.0 |
|
% |
3.8 |
|
% |
||||||
|
Net income (loss) |
$ |
(24 |
) |
|
$ |
216 |
|
|
$ |
192 |
|
|
$ |
(168 |
) |
|
$ |
77 |
|
|
$ |
(91 |
) |
|
|
Diluted EPS (in dollars) |
$ |
(0.01 |
) |
|
$ |
0.06 |
|
|
$ |
0.05 |
|
|
$ |
(0.07 |
) |
|
$ |
0.01 |
|
|
$ |
(0.06 |
) |
|
|
Adjusted net income (loss)(2) |
$ |
(210 |
) |
|
$ |
(5 |
) |
|
$ |
(215 |
) |
|
$ |
(155 |
) |
|
$ |
100 |
|
|
$ |
(55 |
) |
|
|
Adjusted EPS (in dollars)(2) |
$ |
(0.09 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.06 |
) |
|
$ |
0.02 |
|
|
$ |
(0.04 |
) |
|
|
Net additions to PP&E and intangible assets |
$ |
36 |
|
|
$ |
26 |
|
|
$ |
62 |
|
|
$ |
77 |
|
|
$ |
48 |
|
|
$ |
125 |
|
|
|
Cash flows from operating activities |
$ |
(619 |
) |
|
$ |
(25 |
) |
|
(644 |
) |
|
$ |
(393 |
) |
|
$ |
(164 |
) |
|
$ |
(557 |
) |
|
|
|
Free cash flow usage |
$ |
(655 |
) |
|
$ |
(51 |
) |
|
$ |
(706 |
) |
|
$ |
(470 |
) |
|
$ |
(212 |
) |
|
$ |
(682 |
) |
|
|
As at |
|
September 30, 2020 |
|
|
|
December 31, 2019 |
|
|
||||||||||||||||
|
Cash and cash equivalents(6) |
|
|
$ |
1,870 |
|
|
|
|
$ |
2,629 |
|
|
||||||||||||
|
Available short-term capital resources(7) |
|
|
$ |
2,709 |
|
|
|
|
$ |
3,925 |
|
|
||||||||||||
|
Order backlog (in billions of dollars) |
|
|
|
|
|
|
||||||||||||||||||
|
Aviation |
|
|
|
|
|
|
||||||||||||||||||
|
Business aircraft |
|
|
$ |
12.2 |
|
|
|
|
$ |
14.4 |
|
|
||||||||||||
|
Other aviation(8) |
|
|
$ |
1.1 |
|
|
|
|
$ |
1.9 |
|
|
||||||||||||
|
Transportation |
|
|
$ |
34.1 |
|
|
|
|
$ |
35.8 |
|
|
||||||||||||
|
RESULTS OF THE NINE-MONTH PERIOD |
||||||||||||||||||||||||
|
Nine-month periods ended September 30 |
2020 |
|
|
2019 |
|
|
||||||||||||||||||
|
|
Continuing |
|
|
Discontinued |
|
|
Total |
|
|
Continuing |
|
|
Discontinued |
|
|
Total |
|
|
||||||
|
|
|
|
|
restated(5) |
|
|
restated(5) |
|
|
|
||||||||||||||
|
Revenues |
$ |
4,150 |
|
|
$ |
5,768 |
|
|
$ |
9,918 |
|
|
$ |
5,076 |
|
|
$ |
6,476 |
|
|
$ |
11,552 |
|
|
|
Gross margin |
$ |
427 |
|
|
$ |
17 |
|
|
$ |
444 |
|
|
$ |
738 |
|
|
$ |
654 |
|
|
$ |
1,392 |
|
|
|
Adjusted EBITDA |
$ |
201 |
|
|
$ |
(173 |
) |
|
$ |
28 |
|
|
$ |
425 |
|
|
$ |
408 |
|
|
$ |
833 |
|
|
|
Adjusted EBITDA margin |
4.8 |
|
% |
(3.0 |
) |
% |
0.3 |
|
% |
8.4 |
|
% |
6.3 |
|
% |
7.2 |
|
% |
||||||
|
Adjusted EBIT |
$ |
(46 |
) |
|
$ |
(270 |
) |
|
$ |
(316 |
) |
|
$ |
232 |
|
|
$ |
304 |
|
|
$ |
536 |
|
|
|
Adjusted EBIT margin |
(1.1 |
) |
% |
(4.7 |
) |
% |
(3.2 |
) |
% |
4.6 |
|
% |
4.7 |
|
% |
4.6 |
|
% |
||||||
|
EBIT |
$ |
(479 |
) |
|
$ |
(282 |
) |
|
$ |
197 |
|
|
$ |
940 |
|
|
$ |
258 |
|
|
$ |
1,198 |
|
|
|
EBIT margin |
11.5 |
|
% |
(4.9 |
) |
% |
2.0 |
|
% |
18.5 |
|
% |
4.0 |
|
% |
10.4 |
|
% |
||||||
|
Net income (loss) |
$ |
(155 |
) |
|
$ |
(76 |
) |
|
$ |
(231 |
) |
|
$ |
(13 |
) |
|
$ |
125 |
|
|
$ |
112 |
|
|
|
Diluted EPS (in dollars) |
$ |
(0.07 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.02 |
) |
|
|
Adjusted net income (loss) |
$ |
(640 |
) |
|
$ |
(375 |
) |
|
$ |
(1,015 |
) |
|
$ |
(417 |
) |
|
$ |
193 |
|
|
$ |
(224 |
) |
|
|
Adjusted EPS (in dollars) |
$ |
(0.27 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.52 |
) |
|
$ |
(0.18 |
) |
|
$ |
0.02 |
|
|
$ |
(0.16 |
) |
|
|
Net additions to PP&E and intangible assets |
$ |
170 |
|
|
$ |
70 |
|
|
$ |
240 |
|
|
$ |
290 |
|
|
$ |
112 |
|
|
$ |
402 |
|
|
|
Cash flows from operating activities |
$ |
(2,028 |
) |
|
$ |
(1,116 |
) |
|
$ |
(3,144 |
) |
|
$ |
(743 |
) |
|
$ |
(1,010 |
) |
|
$ |
(1,753 |
) |
|
|
Free cash flow usage |
$ |
(2,198 |
) |
|
$ |
(1,186 |
) |
|
$ |
(3,384 |
) |
|
$ |
(1,033 |
) |
|
$ |
(1,122 |
) |
|
$ |
(2,155 |
) |
|
SEGMENTED
RESULTS AND HIGHLIGHTS
Aviation
|
Results of the quarter |
|
|
|
||||||
|
Three-month periods ended September 30 |
2020 |
|
2019 |
|
Variance |
|
|
||
|
Revenues |
|
|
|
||||||
|
Business aircraft |
$ |
1,225 |
|
$ |
1,114 |
|
10 |
|
% |
|
Other aviation |
$ |
180 |
|
$ |
444 |
|
(59 |
) |
% |
|
Total Revenues |
$ |
1,405 |
|
$ |
1,558 |
|
(10 |
) |
% |
|
Aircraft deliveries (in units) |
|
|
|
||||||
|
Business aircraft |
24 |
|
31 |
|
(7 |
) |
|
||
|
Commercial aircraft(9) |
— |
|
6 |
|
(6 |
) |
|
||
|
Adjusted EBITDA |
$ |
114 |
|
$ |
154 |
|
(26 |
) |
% |
|
Adjusted EBITDA margin |
8.1 |
% |
9.9 |
% |
(180) bps |
|
|
||
|
Adjusted EBIT |
$ |
19 |
|
$ |
93 |
|
(80 |
) |
% |
|
Adjusted EBIT margin |
1.4 |
% |
6.0 |
% |
(460) bps |
|
|
||
|
EBIT |
$ |
9 |
|
$ |
96 |
|
(91 |
) |
% |
|
EBIT margin |
0.6 |
% |
6.2 |
% |
(560) bps |
|
|
||
|
Net additions to PP&E and intangible assets |
$ |
36 |
|
$ |
87 |
|
(59 |
) |
% |
|
As at |
September 30, 2020 |
|
December 31, 2019 |
|
Variance |
|
|
||
|
Order backlog (in billions of dollars) |
|
|
|
||||||
|
Business aircraft |
$ |
12.2 |
|
$ |
14.4 |
|
(15 |
) |
% |
|
Other aviation |
$ |
1.1 |
|
$ |
1.9 |
|
(42 |
) |
% |
- Revenues of $1.4
billion reflect a 22% year-over-year growth from business aircraft
manufacturing activities driven by stronger Global 7500
deliveries. This growth was offset by lower services and aerostructures
activities impacted by the COVID-19 pandemic and the wind-down of
commercial aviation activities following the completion of the sale of the
CRJ program in the second quarter.
- Aviation delivered 24 aircraft during the quarter, lower
year-over-year due to the realignment of production to the lower demand
environment caused by the COVID-19 pandemic. The third quarter featured an
unprecedented 8 class-defining Global 7500 aircraft deliveries,
in-line with the goal to double deliveries in the second half of the year,
relative to the first six months. Aircraft deliveries are expected to
seasonally peak in the fourth quarter supported by a $12.2 billion
business aircraft backlog.(3)
- Quarterly adjusted
EBITDA and adjusted EBIT margins of 8.1% and 1.4%, respectively, reflect
lower aircraft deliveries and services activities, combined with low
contribution of early Global 7500 units as the program continues
to progress on its production learning curve. Reported EBIT margin during
the quarter of 0.6%.
- Bombardier’s
service and support network continued to expand its worldwide presence by
entering into an agreement to establish a wholly-owned service centre in
Berlin following the completion of the acquisition of all the issued and
outstanding shares of Lufthansa Bombardier Aviation Services (LBAS) and
joining forces with Jetex to establish a world-class fixed-base operator
(FBO) experience in Singapore. Subsequent to the quarter, Bombardier also
announced the expansion of its service and support network footprint in
Asia-Pacific with a new service centre in Melbourne, Australia slated to
be operational in 2022.
- On October 6, 2020, the Corporation announced the
entry-into-service of the Learjet 75 Liberty light jet.
Delivering better performance at operating costs comparable to its
competitors, the aircraft offers an exceptional value proposition to light
jets customers and operators.
Transportation
|
Results
of the quarter (5) |
|
|
|
|
|||||||
|
Three-month periods ended September 30 |
2020 |
|
2019 |
|
Variance |
|
|
||||
|
Revenues |
$ |
2,120 |
|
$ |
2,175 |
|
(3 |
) |
% |
||
|
Order intake (in billions of dollars) |
$ |
1.5 |
|
$ |
4.5 |
|
(67 |
) |
% |
||
|
Book-to-bill ratio(10) |
0.7 |
|
2.1 |
|
(1.4 |
) |
|
||||
|
Adjusted EBITDA(11) |
$ |
92 |
|
$ |
144 |
|
(36 |
) |
% |
||
|
Adjusted EBITDA margin(11) |
4.3 |
% |
6.6 |
% |
(230) bps |
|
|
||||
|
Adjusted EBIT(11) |
$ |
62 |
|
$ |
110 |
|
(44 |
) |
% |
||
|
Adjusted EBIT margin(11) |
2.9 |
% |
5.1 |
% |
(220) bps |
|
|
||||
|
EBIT |
$ |
44 |
|
$ |
88 |
|
(50 |
) |
% |
||
|
EBIT margin |
2.1 |
% |
4.0 |
% |
(190) bps |
|
|
||||
|
Net additions to PP&E and intangible assets |
$ |
26 |
|
$ |
48 |
|
(46 |
) |
% |
||
|
As at |
September 30, 2020 |
|
December 31, 2019 |
|
|
|
|||||
|
Order backlog (in billions of dollars) |
$ |
34.1 |
|
$ |
35.8 |
|
(5 |
) |
% |
||
- Revenues during
the quarter totalled $2.1 billion, 5% lower year-over-year excluding
currency translation impact, as operations gradually recover from
disruptions across Europe and the Americas during the first half of 2020
due to the COVID-19 pandemic.
- Adjusted EBIT
margin of 2.9% in the third quarter reflects an unfavourable rolling stock
contract mix with approximately a third of revenues not contributing to
earnings. Reported EBIT margin during the quarter of 2.1%.
- Key projects in
the U.K. and Germany are gradually being homologated, moving into the
critical fleet acceptance process and towards regular delivery phase by
year end. The margin dilution from these contracts is expected to continue
through the end of 2020 as we progress on these contracts.(3)
- The outlook for Transportation remains positive and is supported by
a $34.1 billion backlog and strong industry fundamentals.(3)
- Order intake of $1.5 billion for the quarter reflects project wins
across geographies, with notable contract awards in Spain, India and the
U.S. With several contract awards having been delayed globally over the
past six months due to the COVID-19 pandemic, we now expect a strong
order recovery in the final months of 2020 with a healthy mix of options
being exercised as well as service contracts.(3)
The Management’s Discussion and Analysis
and the Interim Consolidated Financial Statements are available at
ir.bombardier.com.
|
bps: basis points |
|
|
(1) |
Includes the amounts from continuing and
discontinued operations. |
|
(2) |
Non-GAAP financial measures. Refer to the Non-GAAP
financial measures and Liquidity and capital resources section for
definitions of these metrics and the Analysis of results section hereafter
for reconciliations to the most comparable IFRS measures. |
|
(3) |
See the forward-looking statements disclaimer at the
end of this press release as well as the forward-looking statements section
and the assumptions following same in Overview in the MD&A of the
Corporation’s financial report for the three- and nine-month periods ended
September 30, 2020, as well as the Strategic Priorities and Guidance and
forward-looking statements sections in the applicable reportable segment in
the MD&A of the Corporation’s financial report for the fiscal year ended
December 31, 2019, for details regarding the assumptions on which the
forward-looking statements are based. |
|
(4) |
Non-GAAP financial measure. Pro-forma liquidity is
defined as cash and cash equivalents of $1,870 million plus access to the
undrawn amounts of $589 million on Transportation’s revolving credit facility
and $250 million under the new senior secured term loan facility as at
September 30, 2020, and $275 million of cash consideration from the sale of
the aerostructures businesses, received following quarter end. |
|
(5) |
Transportation was classified as discontinued
operations as of September 30, 2020. As a result, the results of operations
have been restated for comparative periods. Refer to Note 21 - Discontinued
operations to our Interim consolidated financial statements for more details. |
|
(6) |
Includes cash and cash equivalents from the
aerostructures businesses totalling $38 million and from Transportation
totalling $672 million presented under Assets held for sale as of September
30, 2020, $50 million from the aerostructures businesses as of June 30, 2020
and $51 million from the aerostructures businesses as of December 31, 2019,
respectively. Cash and cash equivalents from Transportation as of December
31, 2019 amounted to $540 million. Refer to Reshaping the portfolio section
in Aviation section and Sale of Transportation business section of the
MD&A for the three and nine month period ended September 30, 2020, Note 18
- Assets held for sale and Note 21 - Discontinued operations to the Interim
consolidated financial statements for more details on the transaction and the
accounting treatments. |
|
(7) |
Defined as cash and cash equivalents including cash
and cash equivalents from Transportation plus the undrawn amounts under
Transportation’s revolving credit facility and our senior secured term loan. |
|
(8) |
Includes the firm orders amounting to $1.1 billion
from the aerostructures businesses presented under Assets held for sale as of
September 30, 2020 and December 31, 2019. Also included 20 firm orders for
CRJ900 as of December 31, 2019. The backlog for the CRJ Series aircraft
program amounting to $0.4 billion was removed as a result of the closing of
the sale of the CRJ Series aircraft program to Mitsubishi Heavy Industries,
Ltd (MHI) on June 1, 2020. |
|
(9) |
On May 31, 2019, the Corporation completed the sale
of the Q Series aircraft program assets, including aftermarket operations and
assets, to De Havilland Aircraft of Canada Limited (formerly Longview Aircraft
Company of Canada Limited). On June 1, 2020, the Corporation completed the
sale of the regional jet program to (MHI). |
|
(10) |
Ratio of new orders over revenues. |
|
(11) |
Including share of income from joint ventures and
associates amounting to $29 million for the three-month period ended
September 30, 2020 ($20 million for the three-month period ended September
30, 2019). |
CAUTION
REGARDING NON-GAAP FINANCIAL MEASURES
This press release
is based on reported earnings in accordance with IFRS and on the following
non-GAAP financial measures:
|
Non-GAAP financial measures |
|
|
Adjusted EBIT |
EBIT excluding special items. Special items comprise
items which do not reflect the Corporation’s core performance or where
their separate presentation will assist users of the consolidated financial
statements in understanding the Corporation’s results for the period. Such
items include, among others, the impact of restructuring charges, impact of
business disposals and significant impairment charges and reversals. |
|
Adjusted EBITDA |
Adjusted EBIT plus amortization and impairment
charges on PP&E and intangible assets. |
|
Adjusted net income (loss) |
Net income (loss) excluding special items, accretion
on net retirement benefit obligations, certain net gains and losses arising
from changes in measurement of provisions and of financial instruments
carried at FVTP&L and the related tax impacts of these items. |
|
Adjusted EPS |
EPS calculated based on adjusted net income
attributable to equity holders of Bombardier Inc., using the treasury stock
method, giving effect to the exercise of all dilutive elements. |
|
Free cash flow (usage) |
Cash flows from operating activities less net
additions to PP&E and intangible assets. |
Non-GAAP financial
measures are mainly derived from the consolidated financial statements but do
not have standardized meanings prescribed by IFRS. The exclusion of certain
items from non-GAAP performance measures does not imply that these items are
necessarily non-recurring. Other entities in our industry may define the above
measures differently than we do. In those cases, it may be difficult to compare
the performance of those entities to ours based on these similarly-named
non-GAAP measures.
Adjusted
EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS
Management uses
adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS for
purposes of evaluating underlying business performance. Management believes
these non-GAAP earnings measures in addition to IFRS measures provide 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. Adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and
adjusted EPS exclude items that do not reflect our core performance or where
their exclusion will assist users in understanding our results for the period.
For these reasons, a significant number of users of the MD&A analyze our
results based on these financial measures. Management believes these measures
help users of MD&A to better analyze results, enabling better comparability
of our results from one period to another and with peers.
Free cash
flow (usage)
Free cash flow is
defined as cash flows from operating activities less net additions to PP&E and
intangible assets. Management believes that this non-GAAP cash flow measure
provides investors with an important perspective on the Corporation’s
generation of cash available for shareholders, debt repayment, and acquisitions
after making the capital investments required to support ongoing business
operations and long-term value creation. This non-GAAP cash flow measure does
not represent the residual cash flow available for discretionary expenditures
as it excludes certain mandatory expenditures such as repayment of maturing
debt. Management uses free cash flow as a measure to assess both business
performance and overall liquidity generation.
Reconciliations of
non-GAAP financial measures to the most comparable IFRS financial measures are
provided in the tables hereafter, except for the following reconciliations:
- adjusted EBIT to EBIT – see the
Results of operations tables in the reporting segments and Consolidated
results of operations section; and
- free cash flow usage to cash flows from operating
activities – see and the tables below and the Free cash flow usage table
in the Liquidity and capital resources section.
|
Reconciliation of segment to consolidated results |
||||||||||||||||
|
|
Three-month periods |
|
|
Nine-month periods |
|
|
||||||||||
|
2020 |
|
|
2019 |
|
(1) |
2020 |
|
|
2019 |
|
(1) |
|||||
|
Revenues |
|
|
|
|
|
|
|
|
||||||||
|
Aviation |
$ |
1,405 |
|
|
$ |
1,558 |
|
|
$ |
4,151 |
|
|
$ |
5,088 |
|
|
|
Transportation(1) |
2,120 |
|
|
2,175 |
|
|
5,768 |
|
|
6,476 |
|
|
||||
|
Corporate and Others |
— |
|
|
(11 |
) |
|
(1 |
) |
|
(12 |
) |
|
||||
|
|
3,525 |
|
|
3,722 |
|
|
9,918 |
|
|
11,552 |
|
|
||||
|
Reclassified(1) |
(2,120 |
) |
|
(2,175 |
) |
|
(5,768 |
) |
|
(6,476 |
) |
|
||||
|
|
$ |
1,405 |
|
|
$ |
1,547 |
|
|
$ |
4,150 |
|
|
$ |
5,076 |
|
|
|
Adjusted EBIT(2) |
|
|
|
|
|
|
|
|
||||||||
|
Aviation |
$ |
19 |
|
|
$ |
93 |
|
|
$ |
24 |
|
|
$ |
388 |
|
|
|
Transportation(1) |
62 |
|
|
110 |
|
|
(270 |
) |
|
304 |
|
|
||||
|
Corporate and Others(3) |
(30 |
) |
|
(44 |
) |
|
(70 |
) |
|
(156 |
) |
|
||||
|
|
$ |
51 |
|
|
$ |
159 |
|
|
$ |
(316 |
) |
|
$ |
536 |
|
|
|
Reclassified(1) |
(62 |
) |
|
(110 |
) |
|
270 |
|
|
(304 |
) |
|
||||
|
|
$ |
(11 |
) |
|
$ |
49 |
|
|
$ |
(46 |
) |
|
$ |
232 |
|
|
|
Special Items |
|
|
|
|
|
|
|
|
||||||||
|
Aviation |
$ |
10 |
|
|
$ |
(3 |
) |
|
$ |
(434 |
) |
|
$ |
(712 |
) |
|
|
Transportation(1) |
18 |
|
|
22 |
|
|
12 |
|
|
46 |
|
|
||||
|
Corporate and Others |
8 |
|
|
(3 |
) |
|
(91 |
) |
|
4 |
|
|
||||
|
|
$ |
36 |
|
|
$ |
16 |
|
|
$ |
(513 |
) |
|
$ |
(662 |
) |
|
|
Reclassified(1) |
(18 |
) |
|
(22 |
) |
|
(12 |
) |
|
(46 |
) |
|
||||
|
|
$ |
18 |
|
|
$ |
(6 |
) |
|
$ |
(525 |
) |
|
$ |
(708 |
) |
|
|
EBIT |
|
|
|
|
|
|
|
|
||||||||
|
Aviation |
$ |
9 |
|
|
$ |
96 |
|
|
$ |
458 |
|
|
$ |
1,100 |
|
|
|
Transportation(1) |
44 |
|
|
88 |
|
|
(282 |
) |
|
258 |
|
|
||||
|
Corporate and Others(3) |
(38 |
) |
|
(41 |
) |
|
21 |
|
|
(160 |
) |
|
||||
|
|
$ |
15 |
|
|
$ |
143 |
|
|
$ |
197 |
|
|
$ |
1,198 |
|
|
|
Reclassified(1) |
(44 |
) |
|
(88 |
) |
|
282 |
|
|
(258 |
) |
|
||||
|
|
$ |
(29 |
) |
|
$ |
55 |
|
|
$ |
479 |
|
|
$ |
940 |
|
|
|
Reconciliation of adjusted EBITDA to EBIT |
||||||||||||||
|
Three-month periods ended September 30 |
2020 |
2019 |
||||||||||||
|
|
Continuing |
|
Discontinued |
Total |
Continuing |
|
Discontinued |
Total |
||||||
|
|
|
|
|
restated(1) |
|
restated(1) |
|
|||||||
|
EBIT |
$ |
(29 |
) |
$ |
44 |
$ |
15 |
$ |
55 |
|
$ |
88 |
$ |
143 |
|
Amortization |
95 |
|
30 |
125 |
62 |
|
34 |
96 |
||||||
|
Impairment charges (reversals) on PP&E and
intangible assets(4) |
6 |
|
— |
6 |
— |
|
— |
— |
||||||
|
Special items excluding impairment charges
(reversals) on PP&E and intangible assets(4) |
12 |
|
18 |
30 |
(6 |
) |
22 |
16 |
||||||
|
Adjusted EBITDA |
$ |
84 |
|
$ |
92 |
$ |
176 |
$ |
111 |
|
$ |
144 |
$ |
255 |
(1) Transportation was classified as discontinued
operations as of September 30, 2020. As a result, the results of operations
have been restated for comparative periods. Refer to Note 21 -
Discontinued operations to our Interim consolidated financial statements for
more details.
(2) Refer to the Non-GAAP financial measures section for
definitions of these metrics and reconciliations to the most comparable IFRS
measures.
(3) Includes share of income (loss) from ACLP of $(12) million for
the third quarter of 2019 and $3 million and $(20) million for the nine-month
periods ended September 2020 and 2019, respectively. On February 12, 2020, Bombardier
transferred its remaining interest in ACLP to Airbus and the Government of
Québec.
(4) Refer to the Consolidated results of operations section
and Transportation section for details regarding special items.
|
Reconciliation of adjusted net loss to net income
(loss) and computation of adjusted EPS |
||||||||||||||||||
|
Three-month periods ended September 30, 2020 |
||||||||||||||||||
|
|
Continuing |
|
Discontinued |
|
Total |
|
||||||||||||
|
|
(per share) |
|
(per share) |
|
(per share) |
|
||||||||||||
|
Net income (loss) |
$ |
(24 |
) |
|
$ |
216 |
|
|
$ |
192 |
|
|
||||||
|
Adjustments to EBIT related to special items(2) |
|
18 |
|
$ |
0.01 |
|
|
18 |
|
$ |
0.01 |
|
|
36 |
|
$ |
0.02 |
|
|
Adjustments to net financing expense related to: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net change in provisions arising from changes in
interest rates and net loss (gain) on certain financial instruments |
|
6 |
|
— |
|
|
(242 |
) |
(0.11 |
) |
|
(236 |
) |
(0.11 |
) |
|||
|
Accretion on net retirement benefit obligations |
|
14 |
|
— |
|
|
4 |
|
— |
|
|
18 |
|
— |
|
|||
|
Tax impact of special(2) and other
adjusting items |
|
(224 |
) |
(0.09 |
) |
|
(1 |
) |
— |
|
|
(225 |
) |
(0.09 |
) |
|||
|
Adjusted net loss |
|
(210 |
) |
|
|
(5 |
) |
|
|
(215 |
) |
|
||||||
|
Net loss attributable to NCI |
|
— |
|
|
|
(81 |
) |
|
|
(81 |
) |
|
||||||
|
Preferred share dividends, including taxes |
|
(6 |
) |
|
|
— |
|
|
|
(6 |
) |
|
||||||
|
Adjusted net loss attributable to equity holders of
Bombardier Inc. |
$ |
(216 |
) |
|
$ |
(86 |
) |
|
$ |
(302 |
) |
|
||||||
|
Weighted-average diluted number of common
shares (in thousands) |
2,410,975 |
|
|
2,410,975 |
|
|
2,410,975 |
|
|
|||||||||
|
Adjusted EPS (in dollars) |
$ |
(0.09 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.13 |
) |
|
||||||
|
Reconciliation of adjusted net loss to net loss and
computation of adjusted EPS |
||||||||||||||||||
|
Nine-month periods ended September 30, 2020 |
||||||||||||||||||
|
|
Continuing |
|
Discontinued |
|
Total |
|
||||||||||||
|
|
(per share) |
|
(per share) |
|
(per share) |
|
||||||||||||
|
Net loss |
$ |
(155 |
) |
|
$ |
(76 |
) |
|
$ |
(231 |
) |
|
||||||
|
Adjustments to EBIT related to special items(2) |
|
(525 |
) |
$ |
(0.22 |
) |
|
12 |
|
$ |
— |
|
|
(513 |
) |
$ |
(0.22 |
) |
|
Adjustments to net financing expense related to: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net change in provisions arising from changes in
interest rates and net loss (gain) on certain financial instruments |
|
183 |
|
0.08 |
|
|
(333 |
) |
(0.13 |
) |
|
(150 |
) |
(0.05 |
) |
|||
|
Accretion on net retirement benefit obligations |
|
39 |
|
0.02 |
|
|
11 |
|
— |
|
|
50 |
|
0.02 |
|
|||
|
Tax impact of special(2) and other
adjusting items |
|
(182 |
) |
(0.08 |
) |
|
11 |
|
— |
|
|
(171 |
) |
(0.08 |
) |
|||
|
Adjusted net loss |
|
(640 |
) |
|
|
(375 |
) |
|
|
(1,015 |
) |
|
||||||
|
Net loss attributable to NCI |
|
— |
|
|
|
(214 |
) |
|
|
(214 |
) |
|
||||||
|
Preferred share dividends, including taxes |
|
(19 |
) |
|
|
— |
|
|
|
(19 |
) |
|
||||||
|
Adjusted net loss attributable to equity holders of Bombardier
Inc. |
$ |
(659 |
) |
|
$ |
(589 |
) |
|
$ |
(1,248 |
) |
|
||||||
|
Weighted-average diluted number of common shares (in
thousands) |
2,404,679 |
|
|
2,404,679 |
|
|
2,404,679 |
|
|
|||||||||
|
Adjusted EPS (in dollars) |
$ |
(0.27 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.52 |
) |
|
||||||
(1) Transportation was classified as discontinued
operations as of September 30, 2020. As a result, the results of operations
have been restated for comparative periods. Refer to Note 21 -
Discontinued operations to our Interim consolidated financial statements for
more details.
(2) Refer to the Consolidated results of operations section
and Transportation section for details regarding special items.
|
Reconciliation of adjusted EPS to diluted EPS (in
dollars) |
|||||||||||||||||
|
Three-month periods |
2020 |
|
2019 |
|
|||||||||||||
|
|
Continuing |
|
Discontinued |
|
Total |
|
Continuing |
|
Discontinued |
Total |
|
||||||
|
|
|
|
|
restated(1) |
|
restated(1) |
|
||||||||||
|
Diluted EPS |
$ |
(0.01 |
) |
$ |
0.06 |
|
$ |
0.05 |
|
$ |
(0.07 |
) |
$ |
0.01 |
$ |
(0.06 |
) |
|
Impact of special(2) and |
(0.08 |
) |
(0.10 |
) |
(0.18 |
) |
0.01 |
|
0.01 |
0.02 |
|
||||||
|
Adjusted EPS |
$ |
(0.09 |
) |
$ |
(0.04 |
) |
$ |
(0.13 |
) |
$ |
(0.06 |
) |
$ |
0.02 |
$ |
(0.04 |
) |
|
Reconciliation of adjusted EPS to diluted EPS (in
dollars) |
||||||||||||||||||
|
Nine-month periods |
2020 |
|
2019 |
|
||||||||||||||
|
|
Continuing |
|
Discontinued |
|
Total |
|
Continuing |
|
Discontinued |
|
Total |
|
||||||
|
|
|
|
|
restated(1) |
|
restated(1) |
|
|
||||||||||
|
Diluted EPS |
$ |
(0.07 |
) |
$ |
(0.12 |
) |
$ |
(0.19 |
) |
$ |
(0.01 |
) |
$ |
(0.01 |
) |
$ |
(0.02 |
) |
|
Impact of special(2) and |
(0.20 |
) |
(0.13 |
) |
(0.33 |
) |
(0.17 |
) |
0.03 |
|
(0.14 |
) |
||||||
|
Adjusted EPS |
$ |
(0.27 |
) |
$ |
(0.25 |
) |
$ |
(0.52 |
) |
$ |
(0.18 |
) |
$ |
0.02 |
|
$ |
(0.16 |
) |
|
Reconciliation of free cash flow usage to cash flows
from operating activities |
||||||||||||||||||
|
Three-month periods |
2020 |
|
2019 |
|
||||||||||||||
|
|
Continuing |
|
Discontinued |
|
Total |
|
Continuing |
|
Discontinued |
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
restated(1) |
|
restated(1) |
|
|
|
|
||
|
Cash flows from operating activities |
$ |
(619 |
) |
$ |
(25 |
) |
$ |
(644 |
) |
$ |
(393 |
) |
$ |
(164 |
) |
$ |
(557 |
) |
|
Minus: |
|
|
|
|
|
|
||||||||||||
|
Net additions to PP&E and intangible assets |
36 |
|
26 |
|
62 |
|
77 |
|
48 |
|
125 |
|
||||||
|
Free cash flow usage |
$ |
(655 |
) |
$ |
(51 |
) |
$ |
(706 |
) |
$ |
(470 |
) |
$ |
(212 |
) |
$ |
(682 |
) |
|
Reconciliation of free cash flow usage to cash flows
from operating activities |
||||||||||||||||||
|
Nine-month periods |
2020 |
|
2019 |
|
||||||||||||||
|
|
Continuing |
|
Discontinued |
|
Total |
|
Continuing |
|
Discontinued |
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
restated(1) |
|
restated(1) |
|
|
|
|
||
|
Cash flows from operating activities |
$ |
(2,028 |
) |
$ |
(1,116 |
) |
$ |
(3,144 |
) |
$ |
(743 |
) |
$ |
(1,010 |
) |
$ |
(1,753 |
) |
|
Minus: |
|
|
|
|
|
|
||||||||||||
|
Net additions to PP&E and intangible assets |
170 |
|
70 |
|
240 |
|
290 |
|
112 |
|
402 |
|
||||||
|
Free cash flow usage |
$ |
(2,198 |
) |
$ |
(1,186 |
) |
$ |
(3,384 |
) |
$ |
(1,033 |
) |
$ |
(1,122 |
) |
$ |
(2,155 |
) |
(1) Transportation was classified as discontinued
operations as of September 30, 2020. As a result, the results of operations
have been restated for comparative periods. Refer to Note 21 - Discontinued operations
to our Interim consolidated financial statements for more details.
(2) Refer to the Consolidated results of operations section
and Transportation section for details regarding special items.
FORWARD-LOOKING
STATEMENTS
This press
release includes forward-looking statements, which may involve, but are not
limited to: statements with respect to our objectives, anticipations and
outlook or guidance in respect of various financial and global metrics and
sources of contribution thereto, targets, goals, priorities, market and
strategies, financial position, market position, capabilities, competitive
strengths, credit ratings, beliefs, prospects, plans, expectations,
anticipations, estimates and intentions; general economic and business outlook,
prospects and trends of an industry; expected demand for products and services;
growth strategy; 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;
expectations regarding challenging Transportation projects and the release of
working capital therefrom; expectations regarding revenue and backlog mix; the
expected impact of the legislative and regulatory environment and legal
proceedings; strength of capital profile and balance sheet, creditworthiness,
available liquidities and capital resources and expected financial
requirements; productivity enhancements, operational efficiencies and
restructuring initiatives; expectations and objectives regarding debt
repayments and refinancing of bank facilities and maturities; expectations
regarding availability of government assistance programs, compliance with restrictive
debt covenants; expectations regarding the declaration and payment of dividends
on our preferred shares; intentions and objectives for our programs, assets and
operations; and the impact of the COVID-19 pandemic on the foregoing and the
effectiveness of plans and measures we have implemented in response thereto. As
it relates to the previously announced sale of the Transportation division to
Alstom (the “Pending Transaction”), this press release also contains
forward-looking statements with respect to the expected completion and timing
thereof in accordance with its terms and conditions; the respective anticipated
proceeds and use thereof, as well as the anticipated benefits of such a
transaction and its expected impact on our outlook, guidance and targets,
operations, infrastructure, opportunities, financial condition, business plan
and overall strategy.
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. Forward-looking statements are presented for the purpose of
assisting investors and others in understanding certain key elements of our
current objectives, strategic priorities, expectations, outlook and plans, and
in obtaining a better understanding of our 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 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. The
assumptions are set out throughout this press release (particularly, in the
assumptions below the Forward-looking statements in this press release). For
additional information, including with respect to other 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 applicable reportable segment in the MD&A of our financial report for
the fiscal year ended December 31, 2019. Given the impact of the changing
circumstances surrounding the COVID-19 pandemic and the related response from
the Corporation, governments (federal, provincial and municipal), regulatory
authorities, businesses and customers, there is inherently more uncertainty
associated with the Corporation’s assumptions as compared to prior
periods.
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 “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 global climate change), operational risks (such as risks
related to developing new products and services; development of new business
and awarding of new contracts; book-to-bill ratio and order backlog; the certification
and homologation of products and services; fixed-price and fixed-term
commitments and production and project execution, including challenges
associated with certain Transportation projects; pressures on cash flows and
capital expenditures based on project-cycle fluctuations and seasonality;
execution of our strategy, transformation plan, productivity enhancements,
operational efficiencies and restructuring initiatives; doing business with
partners; inadequacy of cash planning and management and project funding;
product performance warranty and casualty claim losses; regulatory and legal
proceedings; environmental, health and safety risks; dependence on certain
customers, contracts and suppliers; supply chain risks; human resources;
reliance on information systems; reliance on and protection of intellectual
property rights; reputation risks; risk management; tax matters; 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 debt and interest payment requirements; restrictive debt
covenants and minimum cash levels; financing support for the benefit of certain
customers; and reliance on government support), market risks (such as 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 for
the three and nine month period ended September 30, 2020 and in the MD&A of
our financial report for the fiscal year ended December 31, 2019. Any one or
more of the foregoing factors may be exacerbated by the ongoing COVID-19
outbreak and may have a significantly more severe impact on the Corporation’s
business, results of operations and financial condition than in the absence of
such outbreak. As a result of the current COVID-19 pandemic, additional factors
that could cause actual results to differ materially from those anticipated in
the forward-looking statements include, but are not limited to: risks related
to the impact and effects of the COVID-19 pandemic on economic conditions and
financial markets and the resulting impact on our business, operations, capital
resources, liquidity, financial condition, margins, prospects and results; uncertainty
regarding the magnitude and length of economic disruption as a result of the
COVID-19 outbreak and the resulting effects on the demand environment for our
products and services; emergency measures and restrictions imposed by public
health authorities or governments, fiscal and monetary policy responses by
governments and financial institutions; disruptions to global supply chain,
customers, workforce, counterparties and third-party service providers; further
disruptions to operations, production, project execution and deliveries;
technology, privacy, cyber security and reputational risks; and other
unforeseen adverse events.
With respect
to the Pending Transaction, certain factors that could cause actual results to
differ materially from those anticipated in the forward-looking statements
include, but are not limited to: the failure to satisfy closing conditions,
including regulatory approvals, or delay in completing such a transaction, and
the occurrence of a material adverse change; alternate sources of funding to
replace the anticipated proceeds from the Pending Transaction may not be
available when needed, or on desirable terms; the occurrence of an event which
would allow the parties to terminate their obligations or agreements in
principle; changes in the terms of the transaction; the failure by the parties
to fulfill their obligations; risks associated with the loss and replacement of
key management and personnel; and the impact of the transaction on our
relationships with third parties, including potentially resulting in the loss
of clients, employees, suppliers, business partners or other benefits and
goodwill of the business.
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. For more details, see the Risks and
uncertainties sections in Other in the MD&A of our financial report for the
three and nine month period ended September 30, 2020 and in the MD&A of our
financial report for the fiscal year ended December 31, 2019. Other risks and
uncertainties not presently known to us or that we presently believe are not
material could also cause actual results or events to differ materially from
those expressed or implied in our 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, we 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.
Forward-looking statements in the MD&A are based on and subject to the
following material assumptions:
Overall
business
- general economic conditions,
which include the impact on the economy and financial markets of the
COVID-19 pandemic and other health risks;
- the ability of our supply base
and third-party service providers to gradually resume support to product
development and planned production rates on commercially acceptable terms
in a timely manner;
- the effectiveness of our
mitigation measures taken in response to the COVID-19 pandemic to minimize
the resulting downward pressure on cash flow and manage liquidity;
- our ability to execute and
deliver additional effective mitigation initiatives in response to future
developments;
- the accuracy of our estimates
and judgments regarding the duration, scope and impacts of the ongoing
COVID-19 pandemic on our business, operations, liquidity, financial
condition, margins, cash flows, prospects and results in future periods;
- the ability to have sufficient
liquidity to execute the strategic plan, to meet financial and other
covenants contained in our credit facilities, letter of credit facilities,
outstanding senior notes and asset backed facilities, and to pay down
long-term debt or refinance revolving and term facilities and maturities;
- the expected impact of emergency
measures implemented by governments;
- the effectiveness of government
support programs, including wage subsidies, tax payment deferrals, pension
contribution holidays and other measures addressing liquidity needs of
corporations during the crisis and our ability to qualify for same;
- the effectiveness of COVID-19
containment efforts and gradual recovery of global environment and global
economic conditions;
- the time frames for the
ramp-down of current COVID-19 social distancing guidelines and other
mitigation-related requirements;
- retention of key employees and
management;
- our ability to successfully
defend ourselves against litigation matters;
- our ability to access the
capital markets as needed; and
- the availability of working
capital financing initiatives and ongoing provision of credit by financial
institutions to subject parties.
Aviation
- alignment of adjusted production
rates to reduced market demand and significant slowdown in order intake;
and
- our ability to make required
production rate adjustments as business aircraft operations gradually
resume.
Transportation
- closing of the sale of the
Transportation division to Alstom in the first quarter of 2021 in
accordance with negotiated terms; and
- our ability to reestablish new
contract schedules with customers and suppliers to optimize cash
generation as production gradually resumes.
The
assumptions underlying the forward-looking statements made in this press
release in relation to the Pending Transaction specifically include the
following material assumptions: the satisfaction of all closing conditions
(including regulatory approvals, and, as regards to the sale of the
Transportation division and absence of a material adverse change) and receipt
of expected proceeds within the anticipated timeframe; and fulfillment by the
parties of their obligations.
For additional
information, including with respect to other assumptions underlying the forward
looking statements made in this press release, refer to the Strategic
Priorities and Guidance and forward-looking statements sections in applicable
reportable segment in the MD&A of our financial report for the fiscal year
ended December 31, 2019. Given the impact of the changing circumstances
surrounding the COVID-19 pandemic and the related response from the
Corporation, governments (federal, provincial and municipal), regulatory
authorities, businesses and customers, there is inherently more uncertainty
associated with the Corporation’s assumptions as compared to prior periods.
For a
discussion of the material risk factors associated with the forward-looking
information, refer to the Risks and uncertainties section in Other.
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