Inclusion of Q4 Financial Tables - CAE reports fourth quarter and
full-year results - Restructuring plan on track - Net debt reduced
to $285.8M from $529.6M a year ago - Free cash flow for fiscal 2005
increased to $87.8M from $9.8M - Backlog from continuing operations
rose to $2.5B - Military order intake increased 34% MONTREAL, May
11 /PRNewswire-FirstCall/ -- (NYSE: CGT; TSX: CAE) - CAE today
released financial results for the fourth quarter and fiscal year
ended March 31, 2005. Fourth-quarter earnings from continuing
operations, excluding non-recurring items, were $14.1 million, or
$0.06 per share, compared to $16.1 million or $0.07 per share in
the corresponding year-earlier period. Also excluding non-recurring
items, earnings per share for fiscal year 2005 were $0.19, compared
to $0.21 the previous year. (All amounts are expressed in Canadian
dollars.) CAE reports earnings from continuing operations of $9.3
million for the fourth quarter, and a net loss from continuing
operations for the fiscal year totalling $304.7 million, or $1.23
per share. The full-year results reflect a significant
third-quarter loss, which included sizeable non-cash writedowns
related to impairment in the value of goodwill as well as tangible
and intangible assets and set the stage for implementation of a
comprehensive restructuring plan, announced in mid-February 2005,
to enhance the Company's long-term prospects. As part of that
restructuring plan, major elements of the sale of CAE's Marine
Controls business were completed during the fourth quarter. This
transaction has enabled the Company to significantly strengthen its
financial position. "We have made meaningful progress in the early
stages of our restructuring," stated President and CEO, Robert E.
Brown. "Our balance sheet is stronger; our cash flow has improved
significantly; and our businesses are in the process of being
reorganised with a view to driving performance improvement." CAE's
operations are being realigned into three reporting groups with
clearly defined responsibilities and enhanced accountability. The
restructuring plan also includes initiatives designed to
rationalize the Company's global manufacturing and training
footprint; reduce production costs for full-flight simulators; and
increase efficiency and productivity by introducing new best
practices and processes. The underlying aim is to improve the
quality of assets, strengthen the balance sheet and generate strong
free cash flow that will translate into sustained profitability and
improved returns on investment. "We made some tough decisions and
completed some difficult tasks in a short period of time during the
latter stages of fiscal 2005," Mr. Brown observed. "Major
challenges still await us," he added. "Fiscal 2006 will be a
pivotal transition year, as we focus relentlessly on the successful
execution of key elements of our program and build a solid
foundation to begin generating earnings growth in fiscal 2007. I am
confident that we have the right people and the right plan in
place." Since February, restructuring actions have included
consolidation of the Company's engineering and program-management
departments, respectively, to boost efficiency and eliminate
duplication. Several sites adjacent to CAE's main facility in
Montreal have been closed and most of the approximately 450 layoffs
announced in February have taken place. A number of other sites in
the Company's global network are slated for rationalization in the
period ahead. As well, a range of full-flight simulators will be
redistributed within the global training network in order to
optimize their utilization. Among its stated operating objectives,
CAE has targeted a reduction of its production costs and cycle
times for civil full-flight simulators. The newly formed Simulation
Products Group is well into the process of identifying
opportunities to reach these objectives. CAE had indicated total
expected restructuring charges in the range of $55 to $65 million
by the end of fiscal year 2006. With $24.5 million of expenses
before tax already incurred in fiscal year 2005 and a number of
major activities completed, the restructuring plan is tracking
within the lower end of that range. As of fiscal year 2006, CAE
will report its financial performance on a segmented basis in order
to improve disclosure and transparency with regard to its equipment
and training businesses. Marine Controls divestiture CAE completed
the divestiture of substantially the entire Marine Controls segment
to L-3 Communications ("L-3") during the fourth quarter in a
transaction valued at $238.6 million. In accordance with the
purchase agreement, L-3 will also acquire two other components of
the Marine Controls segment, including the assumption of the CAE's
guarantee of pnds stlg 23.0 million ($53 million) of
project-finance related debt for the UK Astute Class submarine
training program. Cash flow and financial position CAE's free cash
flow (defined as net cash provided by continuing operations, less
capital expenditures and dividends, plus sale and leaseback
proceeds) reached $87.8 million for the year, compared to $9.8
million in the prior year. This improved performance
notwithstanding, CAE maintains its previously indicated objective
to emerge from the current transition year - fiscal year 2006 -with
a solid foundation to begin generating meaningful earnings growth,
free cash flow and positive investment returns. Operating cash flow
totalled $207.6 million (including cash restructuring charges),
compared to $5.7 million the prior year. The increase resulted from
improved operating results, excluding non-cash items, and $85.6
million generated in non-cash working capital. CAE's net debt,
defined as long-term debt less cash and cash equivalents, was
reduced from $529.6 million to $285.8 million through the repayment
of $243.7 million, resulting in a debt-to-total-capitalization
ratio of approximately 35% (or approximately 50% including the net
present value of all off-balance sheet, recourse obligations), from
approximately 40% last year. Non-recurring items Reported
fourth-quarter results include a cash restructuring charge of $24.5
million (pre-tax), together with an additional $9.2 million charge
(pre- tax) in primarily non-cash, related to the early repayment of
a high-interest- rate loan in Brazil and the settlement of various
financial instruments. Also, the fourth quarter results included
other non-recurring charges amounting to $3.1 million (pre-tax),
representing mainly restructuring charges incurred prior to the
adoption of a formal "restructuring plan" as defined by GAAP. As a
result, this $3.1 million charge is included in earnings from
continued operations and not in the $24.5 million. Finally, the
fourth quarter was affected by the recognition of $23.5 million of
tax assets. Of the $23.5 million, $12.2 million is related to the
reduction in the valuation allowance on CAE's net operating losses
in the United States. The remaining amount relates to the
materialization of the net capital losses in the United States as a
result of the sale of Marine. The later recognition of the net
capital losses was not included in the gain on disposition of
Marine. In addition to these items, full-year reported results
include a one-time charge of approximately $3.8 million and a
non-cash charge of $443.3 million for impairment in the value of
goodwill, intangible and tangible assets recorded in the third
quarter. Also included are one-time benefits of $14.2 million from
additional investment tax credits ("ITC") recognized in the first
quarter. It should be noted that while ITCs are normal recurring
items for CAE, the one-time ITC contingency released in the first
quarter was non- recurring. Additional consolidated financial
results In the fourth quarter, consolidated revenues from
continuing operations reached $262.7 million, compared to $261.1
million in the corresponding, year- earlier quarter. Consolidated
revenues from continuing operations for the full fiscal year
reached $986.2 million, notwithstanding the appreciation of the
Canadian dollar over the course of the year. This compares to
$938.4 million in the prior fiscal year. The net increase in
consolidated revenue results from a $58.4 million (or 13%) increase
in Civil revenues, partially offset by a $10.6 million (or 2%)
decrease in Military revenues. Fourth-quarter consolidated earnings
before interest and taxes ("EBIT") from continuing operations, net
of one-time items, were $27.7 million, compared to $27.3 million in
the year-earlier period. On the same basis, consolidated EBIT for
the full fiscal year was $88.3 million, compared to $90.6 million
the previous year. The consolidated backlog from continuing
operations at March 31, 2005 was $2.5 billion, up from $2.3 billion
a year earlier. Capital expenditures for the latest year amounted
to $118.0 million, compared to $86.8 million in the prior year.
Capital expenditures are expected to be in the range of $135
million in fiscal year 2006, reflecting prior investment
commitments and maintenance expenditures. Civil business unit
highlights Civil concluded the year with 17 full-flight simulator
orders (compared to 16 orders in the prior year) for a competed
market share of 77%. Included in this order book were three
simulators for the Airbus A380, bringing to five the number of A380
simulator orders that CAE has won since the inception of the
super-jumbo aircraft program. CAE already has reached a critical
milestone with the delivery of the first A380 full-flight simulator
to Airbus. A second such device is on schedule for anticipated
delivery later this year. Training revenues increased 13% over the
previous year, reflecting the growth of the training network to 105
full-flight simulators as well as improved utilization, which
reached 73% for the year. Average revenue per simulator increased
slightly to approximately $3.1 million. Civil generated operating
earnings of $10.8 million in the fourth quarter of fiscal 2005,
compared to $6.0 million in the third quarter and $11.8 million in
fourth quarter of fiscal 2004. Consistent with third-quarter
results, training services represented the largest proportion of
margin. Profitability in the equipment segment improved modestly,
but the Company recognizes the fact that its Civil equipment
backlog will present challenges over the next several quarters.
With respect to Civil margins generally, the asset impairment
recognized in the third quarter has reduced amortization expenses
by approximately $9.3 million annually. Net of non-recurring items,
full-year operating earnings were $41.2 million, or 6% higher than
the prior year. Equipment and services revenues increased year over
year as the result of higher order intake, while continuing to
account for approximately 40% of the unit's total consolidated
revenues. Training services represented the balance of revenues.
Military business unit highlights Military concluded the fiscal
year with $681.4 million in new order bookings, a 34% increase over
the $506.7 million booked in the prior year. U.S. market equipment
orders represented more than 40% of all new equipment bookings.
Military's backlog at March 31, 2005 reached $1.4 billion,
including the award of a privately financed initiative for the
German NH90 helicopter program and a number of strategic wins in
the U.S.- a market in which CAE has more than doubled its order
intake over the past two years. Military generated fourth-quarter
operating earnings of $13.0 million, compared to $11.3 million in
the third quarter and $15.5 million in the corresponding
year-earlier quarter. Full-year operating earnings amounted to
$47.2 million, a decrease of $4.4 million compared to fiscal 2004,
which resulted from higher completion costs on certain programs,
particularly in the first quarter, and negative foreign-exchange
impacts of $1.2 million. Military's operating earnings, excluding
one-time items, amounted to $47.1 million. Fourth-quarter revenues
of $129.1 million were on a par with the third quarter and 2% lower
than the year-earlier period. Full-year revenue reached $466.0
million, a decrease of $10.6 million from the prior year, resulting
primarily from negative foreign-exchange impacts and delayed
program awards. A more detailed discussion of business unit
highlights can be found in the Management's Discussion &
Analysis posted on CAE's website at http://www.cae.com/financialsQ4
. Conference Call CAE will host a conference call today at 1:30
p.m. EDT for analysts, institutional investors and the media. North
American participants can access the call by dialling
1-877-783-7570 or 514-868-2566. Overseas participants can dial
+800-2787-1930 or 1-514-868-2566. The conference call will also be
audio Webcast live for the public at http://www.cae.com/ . CAE is a
leading provider of simulation and modelling technologies as well
as integrated training services for commercial and business
aviation and defence customers worldwide. The Company has annual
revenues of approximately C$1 billion, with operations and training
facilities in 17 countries on five continents. This press release
provides comments on non-GAAP financial measures. Readers should be
cautioned that this information should not be confused with or used
as an alternative for performance measures determined in accordance
with GAAP. CAE believes that these measures provide useful
supplemental information to GAAP financial measures. However, these
non-GAAP financial measures have no standardized meaning prescribed
by GAAP and therefore are unlikely to be comparable to similar
measures presented by other companies. For a more detailed
discussion of these non-GAAP measures, please consult section 4 of
the Management's Discussion & Analysis posted on CAE's website
at http://www.cae.com/financialsQ4 . Certain statements made in
this news release, including, but not limited to, the statements
appearing under the "Outlook" section, and other statements that
are not historical facts, are forward-looking and are subject to
important risks, uncertainties and assumptions. The results or
events predicted in these forward- looking statements may differ
materially from actual results or events. These statements do not
reflect the potential impact of any non-recurring or other special
items or of any dispositions, mergers, acquisitions, or other
transactions that may be announced or that may occur after the date
hereof. For a description of risks that could cause actual results
or events to differ materially from current expectations please
refer to the section entitled "Risk Factors" contained in CAE
Inc.'s Annual Information Form for the year ended March 31, 2004
filed by CAE Inc. with the Canadian securities commissions
(available at http://www.cae.com/ or on SEDAR at
http://www.sedar.com/) and with the U.S. Securities and Exchange
Commission under Form 40-F (available on EDGAR at
http://www.sec.gov/) as updated in CAE Inc.'s fiscal 2005 Fourth
Quarter MD&A dated May 11, 2005, included in this news release,
under the section entitled "Business Risks And Uncertainties". The
forward-looking statements contained in this news release represent
our expectations as of May 11, 2005 and, accordingly, are subject
to change after such date. However, we disclaim any intention or
obligation to update any forward-looking statements, whether as a
result of new information or otherwise. Consolidated Balance Sheets
As at March 31 (amounts in millions of Canadian dollars) 2005 2004
-------------------------------------------------------------------------
Assets Current assets Cash and cash equivalents $ 57.1 $ 54.7
Accounts receivable 255.7 316.5 Inventories 101.0 147.7 Prepaid
expenses 17.8 19.6 Income taxes recoverable 58.5 52.0 Future income
taxes 2.5 1.8 Current assets held for sale 5.8 89.8
-------------------------------------------------------------------------
498.4 682.1 Restricted cash 0.9 7.0 Property, plant and equipment,
net 792.2 780.0 Future income taxes 101.0 89.0 Intangible assets
20.2 129.2 Goodwill 92.1 300.7 Other assets 137.4 180.8 Long-term
assets held for sale 57.5 139.9
-------------------------------------------------------------------------
$ 1,699.7 $ 2,308.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Shareholders' Equity Current liabilities Accounts
payable and accrued liabilities $ 312.8 $ 322.0 Deposits on
contracts 93.5 69.3 Long-term debt due within one year 35.3 8.8
Future income taxes 19.6 51.1 Current liabilities related to assets
held for sale 7.8 54.5
-------------------------------------------------------------------------
469.0 505.7 Long-term debt 307.6 575.5 Deferred gains and other
long-term liabilities 179.8 171.0 Future income taxes 38.3 77.5
Long-term liabilities related to assets held for sale 53.4 60.2
-------------------------------------------------------------------------
1,048.1 1,389.9
-------------------------------------------------------------------------
Shareholders' Equity Capital stock 373.8 367.5 Contributed surplus
3.3 1.3 Retained earnings 340.8 562.1 Currency translation
adjustment (66.3) (12.1)
-------------------------------------------------------------------------
651.6 918.8
-------------------------------------------------------------------------
$ 1,699.7 $ 2,308.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Approved by the Board: / R.E. Brown / L.R. Wilson Director Director
Consolidated Statements of Earnings Years ended March 31 (amounts
in millions of Canadian dollars, except per share amounts) 2005
2004 2003
-------------------------------------------------------------------------
Revenue Civil Simulation and Training $ 520.2 $ 461.8 $ 517.2
Military Simulation and Training 466.0 476.6 459.6
-------------------------------------------------------------------------
$ 986.2 $ 938.4 $ 976.8
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings from continuing operations before interest and income
taxes Civil Simulation and Training $ 47.6 $ 39.0 $ 115.6 Military
Simulation and Training 47.2 51.6 78.8 Impairment of goodwill,
tangible and intangible assets (443.3) - - Restructuring Costs
(24.5) (9.3) -
-------------------------------------------------------------------------
(Loss) earnings from continuing operations before interest and
income taxes $ (373.0) $ 81.3 $ 194.4 Interest on long-term debt
37.8 28.0 31.6 Other interest expense (income), net (5.7) (5.6)
(3.5)
-------------------------------------------------------------------------
(Loss) earnings from continuing operations before income taxes $
(405.1) $ 58.9 $ 166.3 Income tax (recovery) expense (100.4) 11.5
52.4
-------------------------------------------------------------------------
(Loss) earnings from continuing operations $ (304.7) $ 47.4 $ 113.9
Results of discontinued operations 104.8 16.6 3.3
-------------------------------------------------------------------------
Net (loss) earnings $ (199.9) $ 64.0 $ 117.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic (loss) earnings per share from continuing operations $ (1.23)
$ 0.20 $ 0.52
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Diluted (loss) earnings per share from continuing operations $
(1.23) $ 0.20 $ 0.52
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic (loss) earnings per share $ (0.81) $ 0.27 $ 0.53
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Diluted (loss) earnings per share $ (0.81) $ 0.27 $ 0.53
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average number of common shares outstanding 247.1 233.2
219.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statements of Retained Earnings Years ended March 31
(amounts in millions of Canadian dollars) 2005 2004 2003
-------------------------------------------------------------------------
Retained earnings at beginning of year as previously reported $
562.1 $ 531.2 $ 440.4 Change in accounting policy 3.3 - -
-------------------------------------------------------------------------
Retained earnings at beginning of year 565.4 531.2 440.4 Share
issue costs (2004 - net of taxes of $2.4 million) - (5.1) - Net
(loss) earnings (199.9) 64.0 117.2 Dividends (24.7) (28.0) (26.4)
-------------------------------------------------------------------------
Retained earnings at end of year $ 340.8 $ 562.1 $ 531.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statements of Cash Flow Years ended March 31 (amounts
in millions of Canadian dollars) 2005 2004 2003
-------------------------------------------------------------------------
Operating activities Net (loss) earnings $ (199.9) $ 64.0 $ 117.2
Results of discontinued operations (104.8) (16.6) (3.3)
-------------------------------------------------------------------------
(Loss) earnings from continuing operations (304.7) 47.4 113.9
Adjustments to reconcile earnings to cash flows from operating
activities: Impairment of goodwill, tangible and intangible assets
443.3 - - Amortization 82.0 71.4 65.1 Future income taxes (113.9)
(2.9) 16.2 Investment tax credits (29.2) (9.2) 28.2 Stock based
compensation 2.0 1.3 - Other 20.9 (6.3) (18.4) Decrease (increase)
in non-cash working capital 85.6 (100.2) (64.7)
-------------------------------------------------------------------------
Net cash provided by continuing operating activities 186.0 1.5
140.3 Net cash provided by discontinued operating activities 21.6
4.2 14.6
-------------------------------------------------------------------------
Net cash provided by operating activities 207.6 5.7 154.9
-------------------------------------------------------------------------
Investing activities Purchase of businesses (13.8) - - Proceeds
from disposal of discontinued operations 239.4 22.3 25.0 Short-term
investments, net - 2.6 18.8 Capital expenditures (118.0) (86.8)
(224.2) Proceeds from sale and leaseback of assets 43.8 122.5 127.0
Deferred development costs (9.9) (12.7) (13.3) Deferred
pre-operating costs (1.7) (6.6) (7.6) Other assets (2.4) (4.8)
(27.5)
-------------------------------------------------------------------------
Net cash provided by (used in) continuing investing activities
137.4 36.5 (101.8) Net cash used in discontinued investing
activities (5.8) (12.0) (32.6)
-------------------------------------------------------------------------
Net cash provided by (used in) investing activities 131.6 24.5
(134.4)
-------------------------------------------------------------------------
Financing activities Proceeds of long-term debt 267.7 514.9 250.0
Repayments of long-term debt (588.5) (650.4) (326.3) Dividends paid
(24.0) (27.4) (26.2) Capital stock issuances 3.6 176.4 3.5 Share
issue costs - (7.5) - Other 0.7 1.4 (14.1)
-------------------------------------------------------------------------
Net cash (used in) provided by continuing financing activities
(340.5) 7.4 (113.1) Net cash provided by discontinued financing
activities 3.2 10.4 18.7
-------------------------------------------------------------------------
Net cash (used in) provided by financing activities (337.3) 17.8
(94.4)
-------------------------------------------------------------------------
Effect of foreign exchange rate changes on cash and cash
equivalents (2.3) (3.2) 2.2
-------------------------------------------------------------------------
Net (decrease) increase in cash and cash equivalents (0.4) 44.8
(71.7) Cash and cash equivalents at beginning of year 61.9 17.1
88.8
-------------------------------------------------------------------------
Cash and cash equivalents at end of year $ 61.5 $ 61.9 $ 17.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash and cash equivalents related to: Continuing operations $ 57.1
$ 54.7 $ 13.5 Discontinued operations 4.4 7.2 3.6
-------------------------------------------------------------------------
$ 61.5 $ 61.9 $ 17.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CAE Inc. Consolidated Balance Sheets as at as at March 31 March 31
(amounts in millions of Canadian dollars) 2005 2004
-------------------------------------------------------------------------
Assets Current assets Cash and cash equivalents $ 57.1 $ 54.7
Accounts receivable 255.7 316.5 Inventories 101.0 147.7 Prepaid
expenses 17.8 19.6 Income taxes recoverable 58.5 52.0 Future income
taxes 2.5 1.8 Current assets held for sale 5.8 89.8
-------------------------------------------------------------------------
498.4 682.1 Restricted cash 0.9 7.0 Property, plant and equipment,
net 792.2 780.0 Future income taxes 101.0 89.0 Intangible assets
20.2 129.2 Goodwill 92.1 300.7 Other assets 137.4 180.8 Long-term
assets held for sale 57.5 139.9
-------------------------------------------------------------------------
$ 1,699.7 $ 2,308.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Shareholders' equity Current liabilities Accounts
payable and accrued liabilities $ 312.8 $ 322.0 Deposits on
contracts 93.5 69.3 Long-term debt due within one year 35.3 8.8
Future income taxes 19.6 51.1 Current liabilities related to assets
held for sale 7.8 54.5
-------------------------------------------------------------------------
469.0 505.7 Long-term debt 307.6 575.5 Deferred gains and other
long-term liabilities 179.8 171.0 Future income taxes 38.3 77.5
Long-term liabilities related to assets held for sale 53.4 60.2
-------------------------------------------------------------------------
1,048.1 1,389.9
-------------------------------------------------------------------------
Shareholders' equity Capital stock 373.8 367.5 Contributed surplus
3.3 1.3 Retained earnings 340.8 562.1 Currency translation
adjustment (66.3) (12.1)
-------------------------------------------------------------------------
651.6 918.8
-------------------------------------------------------------------------
$ 1,699.7 $ 2,308.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CAE Inc. Consolidated Statements of Earnings three months ended
twelve months ended (amounts in millions of March 31 March 31
Canadian dollars, (Unaudited) (Unaudited) except per share amounts)
2005 2004 2005 2004
-------------------------------------------------------------------------
Revenue Civil Simulation and Training $ 133.6 $ 128.9 $ 520.2 $
461.8 Military Simulation and Training 129.1 132.2 466.0 476.6
-------------------------------------------------------------------------
$ 262.7 $ 261.1 $ 986.2 $ 938.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings from continuing operations before interest and income
taxes Civil Simulation and Training $ 10.8 $ 11.8 $ 47.6 $ 39.0
Military Simulation and Training 13.0 15.5 47.2 51.6 Impairment of
goodwill, tangible and intangible assets - - (443.3) -
Restructuring costs (24.5) (9.3) (24.5) (9.3)
-------------------------------------------------------------------------
(Loss) earnings from continuing operations before interest and
income taxes (0.7) 18.0 (373.0) 81.3 Interest on long-term debt
17.7 5.6 37.8 28.0 Other interest expense (income), net (1.6) (1.3)
(5.7) (5.6)
-------------------------------------------------------------------------
(Loss) earnings from continuing operations before income taxes
(16.8) 13.7 (405.1) 58.9 Income tax (recovery) expense (26.1) 4.0
(100.4) 11.5
-------------------------------------------------------------------------
(Loss) earnings from continuing operations $ 9.3 $ 9.7 $ (304.7) $
47.4 Results of discontinued operations 99.5 4.6 104.8 16.6
-------------------------------------------------------------------------
Net (loss) earnings $ 108.8 $ 14.3 $ (199.9) $ 64.0
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic (loss) earnings per share from continuing operations $ 0.04 $
0.04 $ (1.23) $ 0.20
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Diluted (loss) earnings per share from continuing operations $ 0.04
$ 0.04 $ (1.23) $ 0.20
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic (loss) earnings per share $ 0.44 $ 0.05 $ (0.81) $ 0.27
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Diluted (loss) earnings per share $ 0.44 $ 0.05 $ (0.81) $ 0.27
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average number of common shares outstanding 247.8 246.6
247.1 233.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statements of Retained Earnings three months ended
twelve months ended March 31 March 31 (amounts in millions of
(Unaudited) (Unaudited) Canadian dollars) 2005 2004 2005 2004
-------------------------------------------------------------------------
Retained earnings at beginning of period as previously reported $
231.2 $ 555.2 $ 562.1 $ 531.2 Change in accounting policy 3.3 - 3.3
-
-------------------------------------------------------------------------
Retained earnings at beginning of period $ 234.5 $ 555.2 $ 565.4 $
531.2 Share issue costs (net of taxes $2.4 million) - - - (5.1) Net
(loss) earnings 108.8 14.3 (199.9) 64.0 Dividends (2.5) (7.4)
(24.7) (28.0)
-------------------------------------------------------------------------
Retained earnings at end of period $ 340.8 $ 562.1 $ 340.8 $ 562.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CAE Inc. Consolidated Statements of Cash Flow three months ended
twelve months ended March 31 March 31 (amounts in millions of
(Unaudited) (Unaudited) Canadian dollars) 2005 2004 2005 2004
-------------------------------------------------------------------------
Operating activities Net (loss) earnings $ 108.8 $ 14.3 $ (199.9) $
64.0 Results of discontinued operations (99.5) (4.6) (104.8) (16.6)
-------------------------------------------------------------------------
(Loss) earnings from continuing operations 9.3 9.7 (304.7) 47.4
Adjustments to reconcile earnings to cash flows from operating
activities: Impairment of goodwill, tangible and intangible assets
- - 443.3 - Amortization 23.5 19.9 82.0 71.4 Future income taxes
(45.0) (2.7) (113.9) (2.9) Investment tax credit (5.1) (7.0) (29.2)
(9.2) Stock based compensation 0.6 0.4 2.0 1.3 Other 16.8 5.0 20.9
(6.3) Decrease (increase) in non-cash working capital 66.8 54.2
85.6 (100.2)
-------------------------------------------------------------------------
Net cash provided by continuing operating activities 66.9 79.5
186.0 1.5 Net cash provided by discontinued operating activities
6.6 4.1 21.6 4.2
-------------------------------------------------------------------------
Net cash provided by operating activities 73.5 83.6 207.6 5.7
-------------------------------------------------------------------------
Investing activities Purchase of business (7.2) - (13.8) - Proceeds
from disposal of discontinued operations 238.6 - 239.4 22.3
Short-term investments, net - 3.0 - 2.6 Capital expenditures (14.5)
(25.8) (118.0) (86.8) Proceeds from sale and leaseback of assets
15.8 - 43.8 122.5 Deferred development costs (0.5) (5.2) (9.9)
(12.7) Deferred pre-operating costs (0.4) (3.4) (1.7) (6.6) Other
assets 2.7 (12.3) (2.4) (4.8)
-------------------------------------------------------------------------
Net cash provided by (used in) continuing investing activities
234.5 (43.7) 137.4 36.5 Net cash provided by (used in) discontinued
investing activities 0.4 (4.9) (5.8) (12.0)
-------------------------------------------------------------------------
Net cash provided by (used in) investing activities 234.9 (48.6)
131.6 24.5
-------------------------------------------------------------------------
Financing activities Proceeds of long-term debt 12.3 134.6 267.7
514.9 Repayments of long-term debt (324.2) (196.2) (588.5) (650.4)
Dividends paid (2.4) (7.3) (24.0) (27.4) Common stock issuance 2.6
0.5 3.6 176.4 Share issue costs - - - (7.5) Other (1.8) - 0.7 1.4
-------------------------------------------------------------------------
Net cash (used in) provided by continuing financing activities
(313.5) (68.4) (340.5) 7.4 Net cash provided by discontinued
financing activities 0.7 4.6 3.2 10.4
-------------------------------------------------------------------------
Net cash (used in) provided by financing activities (312.8) (63.8)
(337.3) 17.8
-------------------------------------------------------------------------
Effect of foreign exchange rate changes on cash and cash
equivalents (1.3) 3.2 (2.3) (3.2)
-------------------------------------------------------------------------
Net (decrease) increase in cash and cash equivalents (5.7) (25.6)
(0.4) 44.8 Cash and cash equivalents at beginning of period 67.2
87.5 61.9 17.1
-------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 61.5 $ 61.9 $ 61.5 $
61.9
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash and cash equivalents related to: Continuing operations $ 57.1
$ 54.7 Discontinued operations 4.4 7.2
-------------------------------------------------------------------------
$ 61.5 $ 61.9
-------------------------------------------------------------------------
-------------------------------------------------------------------------
DATASOURCE: CAE INC. CONTACT: On the Web: http://www.cae.com/;
Media contacts: Nathalie Bourque, Vice President, Global
Communications, (514) 734-5788, ; Anne von Finckenstein, Manager,
Public Relations, (514) 340-5370, ; Investor relations: Andrew
Arnovitz, Director, Investor Relations, (514) 734-5760,
Copyright