(TSX:BBD.A)(TSX:BBD.B) (All amounts in this press release are in
U.S. dollars unless otherwise indicated. This press release
contains both IFRS and non-GAAP measures. Non-GAAP measures are
defined and reconciled to the most comparable IFRS measures in the
Corporation's MD&A. See Caution regarding Non-GAAP measures at
the end of this press release. Comparative figures have been
restated. See Accounting and reporting developments in the
Corporation's MD&A.)
-- Revenues of $4.3 billion, compared to $3.5 billion last fiscal year
-- EBIT before special items(1) of $240 million, or 5.5% of revenues,
compared to $188 million, or 5.4%, last fiscal year
-- EBIT of $240 million, or 5.5% of revenues, compared to $211 million, or
6.1%, last fiscal year
-- Adjusted net income(1) of $156 million, compared to $150 million last
fiscal year
-- Adjusted earnings per share(1) of $0.08, same as last fiscal year
-- Free cash flow usage(1) of $590 million, compared to a usage of $695
million last fiscal year
-- Available short-term capital resources of $5.1 billion including cash
and cash equivalents of $3.7 billion as at March 31, 2013, compared to
$4.0 billion and $2.6 billion respectively, as at December 31, 2012
-- Backlog of $63.0 billion as at March 31, 2013, compared to $64.9 billion
as at December 31, 2012
-- Issuance of $2 billion of unsecured Senior Notes
(1) See Caution regarding Non-GAAP measures at the end of this press
release.
Bombardier today reported its financial results for the first
quarter ended March 31, 2013. Revenues totalled $4.3 billion for
the first quarter ended March 31, 2013, compared to $3.5 billion
for the same period last fiscal year.
For the first quarter ended March 31, 2013, earnings before
financing expense, financing income and income taxes (EBIT) before
special items totalled $240 million, or 5.5% of revenues, compared
to $188 million, or 5.4%, for the same period last year.
On an adjusted basis, net income amounted to $156 million, or
earnings per share (EPS) of $0.08, for the first quarter ended
March 31, 2013, compared to $150 million, or EPS of $0.08, for the
same period the previous year.
For the three-month period ended March 31, 2013, free cash flow
usage (cash flows from operating activities less net additions to
property, plant and equipment and intangible assets) totalled $590
million, compared to a usage of $695 million for the same period
the previous year. Available short-term capital resources of $5.1
billion include cash and cash equivalents of $3.7 billion as at
March 31, 2013, compared to $4.0 billion and $2.6 billion
respectively as at December 31, 2012. The overall backlog reached
$63.0 billion as at March 31, 2013, compared to $64.9 billion as at
December 31, 2012.
"We had a good first quarter, with an overall increase in
revenues of 25%," said Pierre Beaudoin, President and Chief
Executive Officer, Bombardier Inc. "Aerospace is showing increased
deliveries, revenues and EBIT, and the CSeries tests are
progressing well with first flight next month."
"Transportation also saw an increase in revenues and EBIT, and
received a good level of new orders across all divisions and key
markets, totalling $2 billion. We expect an increase in revenues
over the course of the year, while making good progress towards the
group's EBIT target of 8% by 2014. With our strong overall backlog
of $63 billion and state-of-the-art products coming into service in
the next few years, we're very well positioned for solid future
growth," concluded Mr. Beaudoin.
Bombardier Aerospace
Bombardier Aerospace's revenues amounted to $2.3 billion for the
three-month period ended March 31, 2013, compared to $1.5 billion
for the same period last fiscal year. EBIT before special items
totalled $101 million or 4.5% of revenues for the first quarter
ended March 31, 2013, compared to $66 million, or 4.4%, last fiscal
year.
Free cash flow usage totalled $461 million (including net
additions to property, plant and equipment (PP&E) and
intangible assets of $503 million) for the first quarter ended
March 31, 2013, compared to a usage of $572 million (including net
additions to PP&E and intangible assets of $372 million) for
the same period last fiscal year.
A total of 53 aircraft were delivered during the first quarter
ended March 31, 2013, compared to 37 for the same period last
fiscal year, including 39 business aircraft, compared to 29 for the
same quarter last fiscal year.
Bombardier Aerospace signed a purchase agreement with Russia's
Ilyushin Finance Co. (IFC) to acquire 32 CS300 aircraft, with
options for an additional 10. This agreement is subject to approval
by the company's shareholders and follows a letter of intent signed
in 2011. Based on the list price, the conditional order for 32
aircraft is valued at $2.6 billion. Additionally, Danish lessor
Nordic Aviation Capital purchased four Q400 NextGen aircraft,
bringing its Q400 aircraft fleet to 43.
Subsequent to quarter-end, in April 2013 Porter Airlines was
identified as the previously unidentified Americas-based CSeries
aircraft customer when it announced the conversion of its letter of
intent to a conditional agreement for up to 30 CS100 aircraft. This
$2.08 billion-commitment, based on list price, makes Porter
Airlines the Canadian CSeries aircraft launch customer. As at March
31, 2013, commitments for the CSeries totalled 388, including 145
firm orders from nine customers in eight countries.
Bombardier Aerospace's backlog totalled $32 billion as at March
31, 2013, compared to $32.9 billion as at December 31, 2012.
Bombardier Transportation
Bombardier Transportation's revenues amounted to $2.1 billion
for the three-month period ended March 31, 2013, compared to $2.0
billion for the same period last year. EBIT totalled $139 million,
or 6.7% of revenues, compared to $122 million, or 6.2%, for the
same quarter the previous year. Free cash flow usage totalled $73
million for the quarter ended March 31, 2013, compared to a usage
of $85 million for the same period last fiscal year.
New orders reached $2.0 billion (book-to-bill ratio of 0.9),
compared to $1.2 billion for the same quarter last fiscal year. The
order backlog totalled $31.0 billion as at March 31, 2013, compared
to $32.0 billion as at December 31, 2012 (comparative numbers have
been restated to exclude Bombardier Transportation's proportionate
share of joint ventures' backlog). The $1 billion or 3% decrease in
order backlog is mainly due to the weakening of some foreign
currencies versus the U.S. dollar as at March 31, 2013 compared to
December 31, 2012, mainly the euro and pound sterling.
The group's new orders included a variation order for 170
additional cars under a framework agreement with Siemens AG to
develop and supply important components for the next ICx high speed
trains for Deutsche Bahn, valued at $440 million.
In January and April 2013, Bombardier Transportation's partner,
CSR Nanjing Puzhen Rolling Stock Co. Ltd from China, won orders for
18 low-floor trams and 15 catenary-free low-floor trams, which will
be built based on the group's FLEXITY 2 technology. The vehicles
will be equipped with the innovative FLEXX urban 3000 bogies and
MITRAC 500 propulsion and control system. Bombardier Transportation
will support the projects under a technology license agreement
signed in 2012. The latter is the first order worldwide for a
catenary-free tram equipped with the new light and long-life
Bombardier PRIMOVE battery.
After quarter-end, Bombardier Transportation signed agreements
with Russian rail manufacturer Uralvagonzavod (UVZ) establishing a
partnership for joint development of metros for the market in
Russia and the CIS.
FINANCIAL HIGHLIGHTS
(In millions of U.S. dollars, except per share amounts)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
For the three-month periods
ended March 31 2013 2012
----------------------------------------------------------------------------
BA BT Total BA BT Total
----------------------------------------------------------------------------
restated(1)
Results of
operations
Revenues $ 2,258 $ 2,081 $ 4,339 $ 1,499 $ 1,982 $ 3,481
Cost of sales 1,951 1,772 3,723 1,261 1,645 2,906
----------------------------------------------------------------------------
Gross margin 307 309 616 238 337 575
SG&A 158 186 344 162 202 364
R&D 42 28 70 31 34 65
Share of income
of joint
ventures and
associates - (44) (44) - (19) (19)
Other expense
(income) 6 - 6 (21) (2) (23)
----------------------------------------------------------------------------
EBIT before
special
items(2) 101 139 240 66 122 188
Special items - - - (23) - (23)
----------------------------------------------------------------------------
EBIT $ 101 $ 139 240 $ 89 $ 122 211
Financing
expense 75 82
Financing
income (40) (45)
----------------------------------------------------------------------------
EBT 205 174
Income taxes 57 19
----------------------------------------------------------------------------
Net income $ 148 $ 155
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EPS (basic and
diluted; in
dollars) $ 0.08 $ 0.08
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Supplemental
information
----------------------------------------------------------------------------
EBIT before
special
items(2) $ 101 $ 139 $ 240 $ 66 $ 122 $ 188
Amortization 61 30 91 50 31 81
----------------------------------------------------------------------------
EBITDA before
special
items(2) $ 162 $ 169 $ 331 $ 116 $ 153 $ 269
----------------------------------------------------------------------------
----------------------------------------------------------------------------
On an adjusted
basis
----------------------------------------------------------------------------
Adjusted net
income(2) $ 156 $ 150
Adjusted EPS
(in
dollars)(2) $ 0.08 $ 0.08
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash flows from
operating
activities $ 42 $ (62) $ (200)$ (74)
Net additions
to PP&E and
intangible
assets (503) (11) (372) (11)
----------------------------------------------------------------------------
Segmented free
cash flow(2) $ (461)$ (73)$ (534)$ (572)$ (85)$ (657)
Net income
taxes and net
interest paid (56) (38)
----------------------------------------------------------------------------
Free cash
flow(2) $ (590) $ (695)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
BA: Bombardier Aerospace; BT: Bombardier Transportation
(1) Certain comparative figures have been restated as a result of our
adoption of the amended IAS 19, Employee benefits, and IFRS 11, Joint
arrangements. The joint arrangement restatements relate to the
requirement to account for our investments in joint ventures using the
equity method under IFRS 11, instead of proportionate consolidation.
The employee benefit restatements mainly relate to the requirement
under amended IAS 19 to calculate interest expense and interest income
components on a net basis using the post-employment benefit obligation
discount rate. Comparative figures have also been restated due to the
change in methods of measurement of certain financial assets, as
described in the Accounting and reporting developments section of the
Corporation's MD&A.
(2) Non-GAAP financial measure. Refer to the Non-GAAP financial measures
and Liquidity and capital resources sections of the Corporation's MD&A
for definitions of these metrics and reconciliation to the most
comparable IFRS measures.
SELECTED FINANCIAL INFORMATION
Bombardier Aerospace
Total aircraft deliveries
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three-month periods ended March 31
(in units) 2013 2012
----------------------------------------------------------------------------
Business aircraft
Excluding those of the Flexjet fractional
ownership program 38 28
Flexjet fractional ownership program(1) 1 1
----------------------------------------------------------------------------
39 29
Commercial aircraft 13 7
Amphibious aircraft 1 1
----------------------------------------------------------------------------
53 37
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) An aircraft delivery is included in the above table when the
equivalent of 100% of the fractional shares of an aircraft model has
been sold to external customers through Flexjet, or when a whole
aircraft has been sold to external customers through the Flexjet One
program.
Total aircraft net orders
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three-month
periods
ended March 31, 2013 March 31, 2012
----------------------------------------------------------------------------
(in units) Gross Net Gross Net
orders Cancellations orders orders Cancellations orders
----------------------------------------------------------------------------
Business
aircraft
(including
those of
the Flexjet
fractional
ownership
program) 36 (9) 27 49 (9) 40
Commercial
aircraft 4 (3) 1 28 - 28
----------------------------------------------------------------------------
40 (12) 28 77 (9) 68
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Book-to-bill ratio(1)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three-month periods ended
March 31
----------------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------------
Business aircraft 0.7 1.4
Commercial aircraft 0.1 4.0
----------------------------------------------------------------------------
Total 0.5 1.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Defined as net orders received over aircraft deliveries, in units.
Order backlog
----------------------------------------------------------------------------
----------------------------------------------------------------------------
As at
----------------------------------------------------------------------------
(in billions of dollars) March 31, 2013 December 31, 2012
----------------------------------------------------------------------------
Aircraft programs $ 28.7 $ 29.5
Long-term maintenance and spares support
agreements 2.8 2.8
Military Aviation Training 0.5 0.6
----------------------------------------------------------------------------
$ 32.0 $ 32.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Bombardier Transportation
Revenues by geographic region
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three-month periods ended March 31
----------------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------------
restated
Europe $ 1,399 67% $ 1,349 68%
North America 371 18% 388 20%
Asia-Pacific 212 10% 69 3%
Rest of world(1) 99 5% 176 9%
----------------------------------------------------------------------------
$ 2,081 100% $ 1,982 100%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) The Rest of world region includes South America, Central America,
Africa, the Middle East and the CIS.
Order intake and book-to-bill ratio
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three-month periods ended March 31
----------------------------------------------------------------------------
Order intake (in billions of dollars)(1) 2013 2012
----------------------------------------------------------------------------
Rolling stock $ 1.1 $ 0.6
Services 0.6 0.3
System and signalling 0.3 0.3
----------------------------------------------------------------------------
$ 2.0 $ 1.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Book-to-bill ratio(2) 0.9 0.6
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Including any new orders between BT and its joint ventures, but
excluding the order intake of our joint ventures.
(2) Ratio of new orders over revenues.
Order backlog(1)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
As at
----------------------------------------------------------------------------
(in billions of dollars) March 31, 2013 December 31, 2012
----------------------------------------------------------------------------
restated
Rolling stock $ 19.9 $ 20.7
Services 6.9 7.0
System and signalling 4.2 4.3
----------------------------------------------------------------------------
$ 31.0 $ 32.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Including the order backlog for contracts between BT and its joint
ventures, but excluding our share of joint ventures' backlog, which
was $2.1 billion as at March 31, 2013 ($2.2 billion as at December 31,
2012).
DIVIDENDS ON COMMON SHARES
Class A and Class B Shares
A quarterly dividend of $0.025 Cdn per share on Class A Shares
(Multiple Voting) and of $0.025 Cdn per share on Class B Shares
(Subordinate Voting) is payable on June 30, 2013 to the
shareholders of record at the close of business on June 14,
2013.
Holders of Class B Shares (Subordinate Voting) of record at the
close of business on June 14, 2013 also have a right to a priority
quarterly dividend of $0.000390625 Cdn per share.
DIVIDENDS ON PREFERRED SHARES
Series 2 Preferred Shares
A monthly dividend of $0.0625 Cdn per share on Series 2
Preferred Shares has been paid on March 15 and April 15, 2013.
Series 3 Preferred Shares
A quarterly dividend of $0.195875 Cdn per share on Series 3
Preferred Shares is payable on July 31, 2013 to the shareholders of
record at the close of business on July 12, 2013.
Series 4 Preferred Shares
A quarterly dividend of $0.390625 Cdn per share on Series 4
Preferred Shares is payable on July 31, 2013 to the shareholders of
record at the close of business on July 12, 2013.
About Bombardier
Bombardier is the world's only 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 Montreal, Canada. Our shares are
traded on the Toronto Stock Exchange (BBD) and we are listed on the
Dow Jones Sustainability World and North America indexes. In the
fiscal year ended December 31, 2012, we posted revenues of $16.8
billion. News and information are available at bombardier.com or
follow us on Twitter: @Bombardier.
CS100, CS300, CSeries, FLEXITY, FLEXX, MITRAC, NextGen, PRIMOVE,
Q400, and The Evolution of Mobility 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.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which
may involve, but are not limited to: statements with respect to our
objectives, guidance, targets, goals, priorities, our 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; our competitive
position; and the expected impact of the legislative and regulatory
environment and legal proceedings on our business and operations.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "may", "will", "expect",
"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 us 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 forecasted results. While we consider our assumptions to be
reasonable and appropriate based on information currently
available, there is a risk that they may not be accurate. For
additional information with respect to the assumptions underlying
the forward-looking statements made in this press release refer to
the respective Guidance and forward-looking statements sections in
Overview, Bombardier Aerospace and Bombardier Transportation
sections in the Management's Discussion and Analysis ("MD&A")
in the Corporation's annual report for the fiscal year ended
December 31, 2012.
Certain factors that could cause actual results to differ
materially from those anticipated in the forward-looking statements
include risks associated with general economic conditions, risks
associated with our business environment (such as risks associated
with the financial condition of the airline industry and major rail
operators), operational risks (such as risks related to developing
new products and services; 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; fixed-price commitments and
production and project execution), financing risks (such as risks
related to liquidity and access to capital markets, exposure to
credit risk, certain restrictive debt covenants, financing support
provided for the benefit of certain customers and reliance on
government support) and market risks (such as risks related to
foreign currency fluctuations, changing interest rates, decreases
in residual values and increases in commodity prices). For more
details, see the Risks and uncertainties section in Other in the
MD&A of the Corporation's annual report for the fiscal year
ended December 31, 2012. 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 our 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.
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, EBIT margin before special items, adjusted net income,
adjusted earnings per share and free cash flow. These non-GAAP
measures are mainly derived from the interim consolidated financial
statements, but do not have a standardized meaning prescribed by
IFRS; therefore, others using these terms may calculate them
differently. Management believes that providing certain non-GAAP
performance measures, in addition to IFRS measures, provides users
of our interim consolidated financial statements with enhanced
understanding of our results and related trends and increases
transparency and clarity into the core results of our business.
Refer to the Non-GAAP financial measures and Liquidity and capital
resources sections in the Corporation's MD&A for definitions of
these metrics and reconciliations to the most comparable IFRS
measures.
Contacts: Isabelle Rondeau Director, Communications Bombardier
Inc. +514 861 9481 Shirley Chenier Senior Director, Investor
Relations Bombardier Inc. +514 861 9481 www.bombardier.com
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