Achieves first quarter targets, increases
guidance
Q1 2024 Highlights:
- Free Cash Flow of $102.1 million,
compared to $73.1 million for Q1
2023, primarily derived from operating cash flows and net proceeds
of $38.0 million related to the sale
of two A220-300s, one ATR72-500 and two engines.
- Leverage Ratio improved to 3.4 at March
31, 2024 from 3.6 at December 31,
2023, primarily through long-term debt repayments of
$134.6 million since December 31, 2023.
- Net income of $12.3 million,
compared to $32.0 million for Q1
2023.
- Adjusted Earnings available to Common Shareholders of
$11.8 million, compared to
$21.5 million for Q1 2023.
- Adjusted Earnings available to Common Shareholders of
$0.06 per Common Share, basic,
compared to $0.11 for Q1 2023.
- Adjusted EBITDA of $109.1
million, compared to $118.1
million for Q1 2023.
- Purchased and cancelled 938,216 Common Shares under the
current NCIB during the quarter.
- Purchased one King Air 350 in the first quarter of 2024 and
leased it to the Canadian Department of National Defence as an
addition to Voyageur's existing contract for in-service-support of
the manned airborne intelligence surveillance and reconnaissance
(MAISR) program.
- Falko executed a sale and purchase agreement with Nordic
Aviation Capital to acquire a portfolio of 24 Embraer aircraft on
behalf of Fund II.
HALIFAX,
NS, May 6, 2024 /CNW/ - Chorus Aviation
Inc. ('Chorus') (TSX: CHR) today announced its first quarter 2024
financial results.
"Throughout the first quarter, Chorus continued to perform well
and delivered results in line with our guidance. We made solid
progress on debt reduction and generation of cash flows from
operations and asset sales," said Colin
Copp, President and Chief Executive Officer, Chorus. "Chorus
generated Free Cash Flow of $102.1
million compared to $73.1
million in Q1 2023, and improved its Leverage Ratio to 3.4
at March 31, 2024 from 3.6 at
December 31, 2023."
"We expect continued strong cash generation and are increasing
our 2024 guidance for consolidated Adjusted EBITDA and Free
Cash Flow, as well as the majority of guidance for RAL, including
net proceeds from asset sales," commented Mr. Copp.
"Improving value for our shareholders is our top priority. We
acknowledge the pace of transitioning our leasing business to an
asset light model has been slow. As such, we have been working hard
for several months to explore options to accelerate the
monetization of the asset value in our leasing business," said Mr.
Copp.
"Between November 2022 and
March 2024, we repurchased and
cancelled 10.5 million shares, representing 5.2% of the outstanding
shares at the time of the NCIB launch in 2022," continued Mr. Copp.
"In the first quarter of 2024, the average price for shares we
purchased under the NCIB was $2.06.
At our current market price, we intend to continue to utilize
our NCIB."
First Quarter
Summary
In the first quarter of 2024, Chorus reported Adjusted EBITDA of
$109.1 million, a decrease of
$9.0 million compared to the first
quarter of 2023.
The RAL segment's Adjusted EBITDA was $55.0 million, a decrease of $6.6 million compared to the first quarter of
2023 primarily due to:
- a decrease in lease revenue of $9.9
million primarily due to lower market lease rates on
re-leased aircraft, lower maintenance reserve releases and the sale
of aircraft in 2024; and
- increased general administrative expense; partially offset
by
- a decrease in expected credit loss ("ECL") provisions of
$3.1 million due to improved credit
ratings on certain lessees; and
- an increase in the net gain on sale of assets of $3.0 million.
The RAS segment's Adjusted EBITDA was $62.4 million, a decrease of $1.5 million compared to the first quarter of
2023 primarily due to:
- a decrease in aircraft leasing revenue under the CPA of
$4.5 million primarily due to a
change in lease rates on certain aircraft; and
- a decrease in other revenue of $1.6
million primarily due to Voyageur's decreased revenue in
parts sales, contract flying and MRO activity; partially offset
by
- an improvement in the Controllable Cost Guardrail of
$2.0 million; and
- an increase in capitalization of major maintenance overhauls on
owned aircraft of $1.9 million.
Corporate Adjusted EBITDA was $(8.4)
million compared to $(7.4) million in the first quarter
of 2023 primarily due to an increase in stock-based compensation of
$1.2 million due to the change in
fair value of the Total Return Swap offset by a decrease in the
Common Share price.
Adjusted Net Income was $24.1
million for the quarter, a decrease of $6.7 million compared to the first quarter of
2023 primarily due to:
- a $9.0 million decrease in
Adjusted EBITDA as previously described;
- an increase in depreciation expense of $4.7 million primarily attributable to a change
in depreciation estimates on certain aircraft and capital
expenditures; and
- a negative change in foreign exchange of $2.0 million; partially offset by
- a decrease of $5.1 million in
income tax expense;
- a decrease in net interest costs of $3.0
million; and
- a positive change in the fair value on investments and
derivatives of $0.9 million.
Net income decreased $19.7 million
compared to the first quarter of 2023 primarily due to:
- the previously noted decrease in Adjusted Net Income of
$6.7 million; and
- a negative change in net unrealized foreign exchange of
$14.6 million; partially offset
by
- a decrease in lease repossession costs of $1.6 million.
Consolidated Financial
Analysis
This section provides detailed information about Chorus'
performance for the three months ended March 31, 2024 compared
to the three months ended March 31, 2023.
|
(unaudited)
(expressed in
thousands of Canadian dollars)
|
Three months ended
March 31,
|
|
2024
|
2023
|
Change
|
Change
|
|
$
|
$
|
$
|
%
|
|
|
|
|
|
|
Operating
revenue
|
426,184
|
415,252
|
10,932
|
2.6
|
|
Operating
expenses
|
376,348
|
353,349
|
22,999
|
6.5
|
|
|
|
|
|
|
Operating
income
|
49,836
|
61,903
|
(12,067)
|
(19.5)
|
|
Net interest
expense
|
(22,454)
|
(25,458)
|
3,004
|
(11.8)
|
|
Foreign exchange (loss)
gain
|
(12,652)
|
4,031
|
(16,683)
|
(413.9)
|
|
Gain on fair value of
investments and derivatives(1)
|
3,065
|
1,892
|
1,173
|
62.0
|
|
|
|
|
|
|
Income before income
tax
|
17,795
|
42,368
|
(24,573)
|
(58.0)
|
|
Income tax
expense
|
(5,485)
|
(10,349)
|
4,864
|
(47.0)
|
|
|
|
|
|
|
Net income
|
12,310
|
32,019
|
(19,709)
|
(61.6)
|
|
Net income attributable
to non-controlling interest
|
3,491
|
490
|
3,001
|
612.4
|
|
Net income attributable
to Shareholders
|
8,819
|
31,529
|
(22,710)
|
(72.0)
|
|
Preferred Share
dividends declared
|
(8,848)
|
(8,871)
|
23
|
(0.3)
|
|
(Loss) earnings
attributable to Common Shareholders
|
(29)
|
22,658
|
(22,687)
|
(100.1)
|
|
|
|
|
|
|
Adjusted
EBITDA(2)
|
109,061
|
118,056
|
(8,995)
|
(7.6)
|
|
Adjusted
EBT(2)
|
29,927
|
41,789
|
(11,862)
|
(28.4)
|
|
Adjusted Net
Income(2)
|
24,107
|
30,824
|
(6,717)
|
(21.8)
|
|
(1)
|
Includes fair value of
the New Notes received pursuant to the Azul
Restructuring.
|
|
(2)
|
These are non-GAAP
financial measures that are not recognized measures for financial
statement presentation under GAAP. As such, they do not have
standardized meanings, may not be comparable to similar measures
presented by other issuers and should not be considered a
substitute for or superior to GAAP results.
|
Outlook
(See cautionary statement regarding forward-looking information
below.)
The discussion that follows includes forward-looking
information. This outlook is provided for the purpose of providing
information about current expectations for 2024. Forecast
information has also been provided for 2025 and 2026 for Jazz. This
information may not be appropriate for other purposes.
Chorus' forecast for the year ending December 31, 2024 has been updated from the
fourth quarter 2023 forecast due to i) an expected increase in the
foreign exchange rate from 1.3200 to 1.3400; ii) reflect
actual maintenance reserve releases in the first quarter of 2024 of
$3.1 million and iii) additional
anticipated aircraft sales. The revised forecast improved as
follows:
Chorus Consolidated
|
2024 Annual
Forecast(1)
$
|
|
(unaudited)
(in thousands of
Canadian dollars)
|
|
|
|
|
|
Adjusted
EBITDA(2)(3)
|
360,000
|
to
|
410,000
|
|
Free Cash
Flow(2)(3)
|
300,000
|
to
|
350,000
|
|
Leverage
Ratio(2)(3)(4)
|
3.1
|
to
|
3.5
|
|
(1)
|
The forecast uses a
foreign exchange rate of 1.3400 for 2024 to translate USD to
CAD.
|
|
(2)
|
These are non-GAAP
financial measures or non-GAAP ratios that are not recognized
measures for financial statement presentation under GAAP. As such,
they do not have standardized meanings, may not be comparable to
similar measures presented by other issuers and should not be
considered a substitute for or superior to GAAP results.
|
|
(3)
|
The forecast is based
on projected earnings under existing contracts, expected asset
sales in 2024 and future market lease rates for lease renewals and
extensions.
|
|
(4)
|
The forecast is based
on the contractual nature of Chorus' earnings, amortizing debt
repayments and expected asset sales. Deleveraging amounts will vary
from quarter-to-quarter depending on the timing and quantum of
asset sales.
|
Jazz
The CPA provides a Fixed Margin to Jazz regardless of flying
levels; therefore, any variations in flying are not expected to
have any impact on Jazz's earnings. In addition, Jazz receives
compensation for aircraft leased under the CPA that generates
predictable Free Cash Flows. Jazz aircraft have amortizing debt
that will be fully paid-off at the end of the original lease term
under the CPA. At the end of each lease, Jazz will either extend
the lease, sell or part-out each aircraft. Subsequent aircraft
leases will continue to produce predictable Free Cash Flow at lower
rates as the aircraft will be unencumbered.
|
Annual
Forecast(1)
|
|
(unaudited)
(in thousands of
Canadian dollars)
|
2024
$
|
2025
$
|
2026(2)
$
|
|
Fixed
Margin
|
60,900
|
59,600
|
43,900
|
|
Aircraft leasing
under the CPA
|
|
|
|
|
Revenue
|
130,000
|
113,000
|
93,000
|
|
Payment on long-term
debt and interest
|
95,000
|
74,000
|
66,000
|
|
Total Fixed Margin
and Aircraft leasing under the CPA
less payment on long-term debt and
interest
|
95,900
|
98,600
|
70,900
|
|
Wholly-owned aircraft
leased under the CPA (end of
period)
|
48
|
39
|
39
|
|
Wholly-owned aircraft
leased under the CPA available for
re-lease (end of period)
|
nil
|
9
|
9
|
|
(1)
|
The forecast uses a
foreign exchange rate of 1.3400 for 2024 and 1.2700 for 2025 and
2026 to translate USD to CAD.
|
|
(2)
|
Includes estimates for
future market lease rates for 12 Q400's for 2026.
|
RAL
RAL continues to execute on its asset light leasing strategy
which consists of monetizing select on-balance sheet aircraft while
growing its contractual fund management business. Maximizing cash
flow generation from existing aircraft through lease term
extensions is also a key element of RAL's business model.
|
Annual 2024
Forecast(1)
$
|
|
(unaudited)
(in thousands of
Canadian dollars)
|
|
Operating
revenue(2)
|
220,000
|
to
|
240,000
|
|
Depreciation and
amortization excluding impairment(3)
|
102,000
|
to
|
112,000
|
|
Net interest
expense(3)
|
49,000
|
to
|
53,000
|
|
Gain on the fair value
of Fund II investment(4)
|
5,000
|
to
|
10,000
|
|
Gross proceeds on asset
sales(2)
|
150,000
|
to
|
200,000
|
|
Net proceeds on asset
sales(2)
|
60,000
|
to
|
80,000
|
|
(1)
|
The forecast uses a
foreign exchange rate of 1.3400 for 2024 to translate USD to
CAD.
|
|
(2)
|
The forecast reflects:
a) the expected sale of nine CRJ900 engines; b) the sale of two
A220-300's; c) additional anticipated aircraft sales; and d)
certain assumptions and estimates for future market lease rates
related to new and extended leases. The forecast does not include
end-of-lease compensation or maintenance reserve releases beyond
first quarter actual 2024.
|
|
(3)
|
The depreciation
excluding impairment and net interest expense forecast is based on
the normal amortization of aircraft and long-term debt and the
expected sale of assets in 2024.
|
|
(4)
|
The forecasted gain on
fair value of the Fund II investment is based on expectations
related to the trading and general financial condition of the
investment to compute the value of the discounted cash
flows.
|
Fund III is anticipated to close by the end of the 2024 year and
is expected to have (i) a minimum of US $500.0 million in capital commitments and (ii)
management fees and economic terms commensurate with those in
Falko's existing investment funds.
Chorus intends to opportunistically trade RAL's wholly-owned or
majority-owned aircraft including in connection with the windup of
its 67.45% ownership in Ravelin Holdings LP by the tenth
anniversary of the commencement of Fund I (2025). As of
March 31, 2024, Ravelin Holdings LP
held an interest in 38 aircraft with a net book value of US
$374.5 million and secured debt of US
$182.8 million. As asset sales occur,
the related leasing revenues in RAL will decrease, which will be
partially offset by lower depreciation and debt servicing costs and
earnings from Falko managed funds.
RAL Receivables
Chorus participated in the Azul S.A. ("Azul")
restructuring which was finalized on February 29, 2024. The transaction includes the
settlement of certain accounts receivable with a carrying value of
US $22.4 million at February 29, 2024 ("Existing AR"), held by
RAL and the granting of certain modifications related to the
operating leases with Azul ("Azul Restructuring").
In exchange for the Existing AR, RAL received new notes on
February 29, 2024 with a carrying
value of US $56.2 million
("New Notes"), inclusive of deferred revenue of US
$33.8 million related to lease
modifications, from Azul which are due at various dates beginning
in March 2024 and ending in
October 2027. In addition, certain of
the New Notes may be settled, at Azul's option, in cash or through
the issuance of Azul's publicly listed preferred shares.
RAL's gross receivable, excluding long-term New Notes, primarily
related to rent relief arrangements, may decrease from the
March 31, 2024 balance of US
$81.9 million to between US
$60.0 million and US $65.0 million by the end of 2024 based on
management's current repayment expectations.
RAL's gross receivable exposure is partially mitigated by
security packages held of approximately US $18.0 million (December 31, 2023 - US $20.4 million).
|
(unaudited)
(in thousands of US
dollars)
|
As at
|
|
March 31,
2024
|
December 31,
2023
|
|
$
|
$
|
|
RAL gross receivable,
excluding New Notes
|
68,992
|
108,226
|
|
Short-term New
Notes(1)
|
12,943
|
—
|
|
81,935
|
108,226
|
|
Long-term New
Notes(1)
|
43,931
|
—
|
|
125,866
|
108,226
|
|
Deferred revenue - Azul
restructuring
|
(32,470)
|
—
|
|
93,396
|
108,226
|
|
(1)
|
New Notes include US
$12.9 million which are repayable in equal monthly instalments over
the remainder of 2024 and US $43.9 million which may be settled,
at Azul's option, in cash or by the issuance of Azul's
publicly listed preferred shares in 12 quarterly instalments
beginning January 1, 2025.
|
Capital Expenditures
Capital expenditures in 2024 are expected to be as follows:
|
(unaudited)
(in thousands of
Canadian dollars)
|
Annual Forecast
2024
$
|
|
|
Capital expenditures,
excluding aircraft acquisitions
|
11,000
|
to
|
16,000
|
|
|
Capitalized major
maintenance overhauls(1)
|
11,000
|
to
|
16,000
|
|
|
Aircraft acquisitions
and improvements
|
17,500
|
to
|
22,500
|
|
|
39,500
|
to
|
54,500
|
|
|
(1)
|
The 2024 plan includes
between $7.0 million to $11.0 million of costs that are expected to
be included in Controllable Costs.
|
Use of Defined Terms
Capitalized terms used but not defined in this news release have
the meanings given to them in management's discussion and analysis
of results of operations and financial condition ("MD&A") dated
the date hereof, which is available on Chorus' website
(www.chorusaviation.com) and under Chorus' profile on SEDAR+
(www.sedarplus.ca).
Investor Conference Call / Audio
Webcast
Chorus will hold an analyst call at 9:00
AM ET on May 7, 2024 to
discuss the first quarter 2024 financial results. The call may be
accessed by dialing 1-888-664-6392. The call will be simultaneously
audio webcast via: https://app.webinar.net/N8kXnV73q21
This is a listen-in only audio webcast.
The conference call webcast will be archived on Chorus' website
at www.chorusaviation.com under Investors >
Reports. A playback of the call can also be accessed until
midnight ET, May 14, 2024, by dialing toll-free 1-888-390-0541
and using passcode 126041 # (pound key).
NON-GAAP FINANCIAL MEASURES
This news release
references several non-GAAP financial measures and ratios to
supplement the analysis of Chorus' results. Chorus uses these
non-GAAP measures to evaluate and assess performance. These
non-GAAP measures are generally numerical measures of Chorus'
financial performance, financial position, or cash flows, that
include or exclude amounts from the most comparable GAAP measure.
As such, these measures are not recognized for financial statement
presentation under GAAP, do not have standardized meanings, may not
be comparable to similar measures presented by other entities, and
should not be considered a substitute for or superior to GAAP
results. For further information on non-GAAP measures used in this
news release, please refer to Section 18 (Non-GAAP Financial
Measures) of the MD&A dated the date hereof, which is
available on Chorus' website (www.chorusaviation.com) and under
Chorus' profile on SEDAR+ (www.sedarplus.ca). Reconciliations of
non-GAAP measures to their nearest GAAP measures are provided
below.
Adjusted net income, Adjusted EBT,
Adjusted EBITDA
|
(unaudited)
(expressed in
thousands of Canadian dollars)
|
Three months ended
March 31,
|
|
2024
$
|
2023
$
|
Change
$
|
|
|
|
|
|
Net
income
|
12,310
|
32,019
|
(19,709)
|
|
Add (Deduct) items
to get to Adjusted Net Income
|
|
|
|
|
Employee separation
program(1)
|
7
|
290
|
(283)
|
|
Lease repossession
costs(1)
|
2,660
|
4,303
|
(1,643)
|
|
Unrealized foreign
exchange loss (gain)
|
9,465
|
(5,172)
|
14,637
|
|
Tax recovery on
adjusted items
|
(335)
|
(616)
|
281
|
|
11,797
|
(1,195)
|
12,992
|
|
Adjusted Net
Income
|
24,107
|
30,824
|
(6,717)
|
|
Add (Deduct) items
to get to Adjusted EBT
|
|
|
|
|
Income tax
expense
|
5,485
|
10,349
|
(4,864)
|
|
Tax recovery on
adjusted items
|
335
|
616
|
(281)
|
|
Adjusted
EBT
|
29,927
|
41,789
|
(11,862)
|
|
Add (Deduct) items
to get to Adjusted EBITDA
|
|
|
|
|
Net interest
expense
|
22,454
|
25,458
|
(3,004)
|
|
Depreciation and
amortization excluding impairment
|
54,380
|
49,659
|
4,721
|
|
Foreign exchange
loss
|
3,187
|
1,141
|
2,046
|
|
(Gain) loss on fair
value of investments and derivatives(2)
|
(887)
|
9
|
(896)
|
|
79,134
|
76,267
|
2,867
|
|
Adjusted
EBITDA
|
109,061
|
118,056
|
(8,995)
|
|
(1)
|
Included in operating
expenses.
|
|
(2)
|
Includes fair value of
the New Notes received pursuant to the Azul
Restructuring.
|
Adjusted earnings available to
Common Shareholders per Common Share
Adjusted earnings available to Common Shareholders per Common
Share is used by Chorus to assess performance and is calculated as
Adjusted net income less non-controlling interest and Preferred
Share dividends declared.
|
(unaudited)
(expressed in
thousands of Canadian dollars, except per Share
amounts)
|
Three months ended
March 31,
|
|
2024
$
|
2023
$
|
Change
$
|
|
Adjusted Net
Income
|
24,107
|
30,824
|
(6,717)
|
|
Add (Deduct) items
to get to Adjusted Earnings available to
Common Shareholders
|
|
|
|
|
Net income
attributable to non-controlling interest
|
(3,491)
|
(490)
|
(3,001)
|
|
Preferred Share
dividends declared
|
(8,848)
|
(8,871)
|
23
|
|
Adjusted Earnings
available to Common Shareholders
|
11,768
|
21,463
|
(9,695)
|
|
Adjusted Earnings
available to Common Shareholders per
Common Share - basic
|
0.06
|
0.11
|
(0.05)
|
Leverage Ratio
Leverage Ratio is used by Chorus as a means to measure financial
leverage. Leverage Ratio is calculated by dividing Net debt by
trailing 12-month Adjusted EBITDA. Management believes Leverage
Ratio to be a useful ratio when monitoring and managing debt
levels. In addition, as leverage is a measure frequently analyzed
for public companies, Chorus has calculated the amount to assist
readers in this review. Leverage Ratio should not be construed as a
measure of cash flows. Net debt is a key component of capital
management for Chorus and provides management with a measure of its
net indebtedness.
|
(unaudited)
(expressed in
thousands of Canadian dollars)
|
March 31,
2024
|
December 31,
2023
|
Change
|
|
$
|
$
|
$
|
|
Long-term debt and
lease liabilities (including current portion)
|
1,608,584
|
1,755,580
|
(146,996)
|
|
Less:
|
|
|
|
|
Cash
|
(81,171)
|
(85,985)
|
4,814
|
|
Net
debt
|
1,527,413
|
1,669,595
|
(142,182)
|
|
Adjusted
EBITDA
|
449,671
|
458,666
|
(8,995)
|
|
Leverage
Ratio
|
3.4
|
3.6
|
(0.2)
|
Free Cash Flow
Free Cash Flow is a non-GAAP measure used as an indicator of
financial strength and performance. Chorus believes that this
measurement is useful as an indicator of its ability to service its
debt, meet other ongoing obligations and reinvest in the
Corporation and return capital to Common Shareholders. Readers are
cautioned that Free Cash Flow does not represent residual cash flow
available for discretionary expenditures.
Free Cash Flow is defined as cash provided by operating
activities less net changes in non-cash balances related to
operations, capital expenditures excluding aircraft acquisitions
and improvements plus net proceeds on asset sales (proceeds on
disposal of property and equipment less the related debt repayments
for the assets sold).
The following table provides a reconciliation of Free Cash Flow
to cash flows from operating activities, which is the most
comparable financial measure calculated and presented in accordance
with GAAP:
|
(unaudited)
(expressed in
thousands of Canadian dollars)
|
Three months ended
March 31,
|
|
2024
|
2023
|
Change
|
|
$
|
$
|
$
|
|
Cash provided by
operating activities
|
93,071
|
67,253
|
25,818
|
|
Add
(Deduct)
|
|
|
|
|
Net changes in
non-cash balances related to operations
|
(21,148)
|
12,569
|
(33,717)
|
|
Capital expenditures,
excluding aircraft acquisitions
|
(3,037)
|
(3,161)
|
124
|
|
Capitalized major
maintenance overhauls
|
(4,768)
|
(3,599)
|
(1,169)
|
|
64,118
|
73,062
|
(8,944)
|
|
Net proceeds on asset
sales
|
38,001
|
—
|
38,001
|
|
Free Cash
Flow
|
102,119
|
73,062
|
29,057
|
Forward-Looking Information
This news release includes
forward-looking information and statements within the meaning of
applicable securities laws (collectively, "forward-looking
information"). Forward-looking information is identified by the use
of terms and phrases such as "anticipate", "believe", "could",
"estimate", "expect", "intend", "may", "plan", "potential",
"predict", "project", "will", "would", and similar terms and
phrases, including negative versions thereof. Such information may
involve but is not limited to comments with respect to assumptions,
strategies, expectations, planned operations or future actions.
Forward-looking information relates to analyses and other
information that are based on forecasts of future results,
estimates of amounts not yet determinable and other uncertain
events. Forward-looking information, by its nature, is based on
assumptions, including those referenced below, and are subject to
important risks and uncertainties. Any forecasts or forward-looking
predictions cannot be relied upon due to, among other things,
external events, changing market conditions and general
uncertainties of the business. Such information involves known and
unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to differ materially
from those indicated in the forward-looking information and
statements.
Examples of forward-looking information in this
news release include the discussion in the Outlook section, as well
as statements regarding expectations as to Chorus' future liquidity
and financial strength and contracted revenues, Chorus' future
growth and competitive position, the growth of Falko's asset
management business, the transition of Chorus' leasing business to
an asset light leasing model and efforts to accelerate value
realization in Chorus' leasing business, the generation of cash
flows from asset sales and potential deployment of those proceeds
to enhance returns to Shareholders and/or invest in accretive
growth opportunities, the completion of pending or planned
transactions (including the successful close of Falko's Fund III),
Jazz's efforts to increase flying capacity under the CPA, and
expectations with regard to Share purchases under the NCIB. Actual
results may differ materially from results indicated in
forward-looking information for a number of reasons, including if:
any one or more of the key assumptions described in the Outlook
section fails to materialize; Chorus is unable to realize the
anticipated benefits of the Falko Acquisition, including the
transition to an asset light leasing model; Falko is unable to
successfully launch Fund III on the terms currently contemplated or
at all; Chorus (including any of its subsidiaries) is unable to
attract and retain the type and number of human resources it needs
to operate its business; new COVID-19 variants and/or new pandemic
or endemic diseases emerge and restrictive measures are implemented
to minimize their public health impacts; the effects of the
COVID-19 pandemic continue to adversely impact the financial health
of Chorus' contractual counterparties; general economic conditions
(including inflation and interest rates) worsen, or general
conditions for the aviation industry deteriorate; payments cease
(in whole or in part) under the CPA and/or aircraft lease
agreements with Chorus' customers; disputes emerge under the CPA
and/or aircraft lease agreements; Chorus defaults under any of its
debt covenants; asset impairments and/or provisions for ECL are
required; changes in law are made (including regulations relating
to climate change) which adversely affect Chorus' business or
assets; transactions (including financings) referenced in this news
release or in Chorus' public disclosure record fail to conclude on
the terms currently contemplated or at all; and/or one or more of
the risk factors referenced in Chorus' most recent Annual
Information Form, the risk factors in Section 8 Capital Structure
and Section 10 Risk Factors of the MD&A and in the
Corporation's public disclosure record available under its profile
on SEDAR+ at www.sedarplus.ca materializes. The forward-looking
information contained in this news release represents Chorus'
expectations as of the date of this news release (or as of the date
they are otherwise stated to be made) and is subject to change
after such date. Chorus disclaims any intention or obligation to
update or revise any forward-looking information as a result of new
information, subsequent events or otherwise, except as required by
applicable securities laws. Readers are cautioned that the
foregoing factors and risks are not exhaustive.
About Chorus Aviation Inc.
Chorus is a global aviation
solutions provider and asset manager, focused on regional aviation.
Our principal subsidiaries are: Falko Regional Aircraft, the
leading pure play regional aircraft asset manager and lessor,
managing investments on behalf of third-party fund investors; Jazz
Aviation, the largest regional operator in Canada and provider of regional air services
under the Air Canada Express brand; Voyageur Aviation, a leading
provider of specialty charter, aircraft modifications, parts
provisioning and in-service support services; and Cygnet Aviation
Academy, an industry leading accredited training academy preparing
pilots for direct entry into airlines. Together, Chorus'
subsidiaries provide services that encompass every stage of a
regional aircraft's lifecycle, including: aircraft acquisition and
leasing; aircraft refurbishment, engineering, modification,
repurposing and transition; contract flying; aircraft and component
maintenance, disassembly, and parts provisioning; and pilot
training.
Chorus Class A Variable Voting Shares and Class B Voting Shares
trade on the Toronto Stock Exchange under the trading symbol 'CHR'.
Chorus 5.75% Senior Unsecured Debentures due December 31, 2024, 6.00% Convertible Senior
Unsecured Debentures due June 30,
2026, and 5.75% Senior Unsecured Debentures due June 30, 2027 trade on the Toronto Stock Exchange
under the trading symbols 'CHR.DB.A', 'CHR.DB.B', and 'CHR.DB.C'
respectively. www.chorusaviation.com.
SOURCE Chorus Aviation Inc.