Bombardier Q3 Results Keep the Company On-Track to Full-Year Guidance, Propelled by Record Services Revenue and Continued Year-Over-Year Growth
Source: GlobeNewswire- Third quarter 2024 total revenues climbed 12% year-over-year to $2.1 billion, driven by a $528 million record-level contribution from Services and a favorable aircraft mix across the 30 units delivered per plan.
- Adjusted EBITDA(1) of $307 million for the third quarter and adjusted EBITDA margin(2) was 14.8%. Reported EBIT for the third quarter was $201 million. Adjusted EPS(2) was positive at $0.74 for the third quarter, with diluted EPS(3) at $1.09.
- Free cash flow usage(1) for the quarter was $127 million, including investment in inventory of $149 million. Reported cash flow usage from operating activities of $81 million and net additions to PP&E and intangible assets of $46 million.
- Backlog(4) as at September 30, 2024 stood at $14.7 billion, reflecting unit book-to-bill(5) of 1.0 for the quarter.
- Available liquidity(1) remained strong at $1.2 billion; cash and cash equivalents were $0.9 billion as at September 30, 2024.
- Further strengthened the liquidity position subsequent to quarter end, through a $150 million upsize of its secured revolving credit facility which now stands at $450 million(6).
All amounts in this press release are in U.S. dollars, unless otherwise indicated.
Amounts in tables are in millions except per share amounts, unless otherwise indicated.
MONTRÉAL, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Bombardier Inc. (TSX: BBD.B) today reported its financial results for the third quarter of 2024. Marked by steady growth across key metrics, including revenues, profitability and services, the company remains on track to meet its full-year 2024 guidance(7).
“With a sustained increase in revenues, profitability and record aftermarket performance, Bombardier’s strong results this quarter are a testament to our long-term plan and our team’s ability to execute, meeting commitments week after week,” said Éric Martel, President and Chief Executive Officer, Bombardier. “We have once again posted a healthy book-to-bill(5) ratio, which in turn has maintained our backlog(4) and predictability. This is all made possible by our second to none product portfolio and customer focus. As we enter the last months of the year, I am proud that our operations and service network continue to perform at a high level and are well positioned to deliver on full-year guidance(7).”
Robust Services Growth Fuels Year-Over-Year Revenue Increase
Bombardier reported revenues of $2.1 billion in the third quarter of 2024, an increase of 12% year-over-year, driven by impressive aftermarket growth and a healthy delivery mix. Revenues from the company’s Services business stream continued their remarkable upward trajectory in the third quarter of 2024, up 28% year-over-year to a record of $528 million. Having fully operationalized its expanded support network, revenues from services are trending well above the company’s objective of $2 billion in aftermarket revenues by 2025(7).
The company delivered a healthy mix of aircraft this quarter, for a total of 30 deliveries. Backlog(4) reached $14.7 billion as at September 30, 2024, resulting in a unit book-to-bill(5) of 1.0. Overall, the company remains on track to meet its planned delivery guidance for 2024(7).
Operational Efficiency Driving Profitability Increase
Bombardier continued to drive profitable growth in the third quarter of 2024. Adjusted net income(1) increased by $1 million year-over-year, reaching $81 million. Adjusted EPS(2) came in at $0.74 for the third quarter, compared with $0.73 for the same quarter last year. Diluted EPS(3) was $1.09 for the quarter.
Adjusted EBITDA(1) for the third quarter of 2024 reached $307 million, representing growth of 8% year-over-year. Adjusted EBIT(1) totaled $201 million, an increase of 4% year-over-year.
The company recorded free cash flow usage(1) of $127 million for the third quarter, with an investment in inventory of $149 million. Reported cash flow usage from operating activities(3) came in at $81 million, with net additions to PP&E and intangible assets at $46 million.
Continuing to Strengthen Balance Sheet, Providing Solid Foundation for Future Growth and Deleveraging
Available liquidity(1) as at September 30, 2024 remained solid at $1.2 billion, in line with expectations. Bombardier further improved its liquidity position with an additional $150 million increase to its revolving credit facility, subsequent to quarter end, which now sits at $450 million(6). With this, the company continues to strengthen its balance sheet and position itself favorably for sustained future growth.
“2024 is tracking to be another milestone year for Bombardier. We have achieved more than 60 speed records on our Global 7500 program and the Global 8000 is now entering the production phase in parallel to certification activities,” added Martel. “Our successful showing at NBAA-BACE this past October once again highlighted how Bombardier has set the standard in business aviation and our passionate people continue to push the boundaries of what is possible in our industry. All-in-all, we have delivered meaningful growth in our Services business and continue to deepen relationships with customers, be they individuals, large companies or governments.”
| (1) | Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the Management Discussion & Analysis for the quarter ended September 30, 2024 (Q3-2024 MD&A) for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (2) | Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the Q3-2024 MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (3) | Only from continuing operations. |
| (4) | Represents order backlog for both manufacturing and services. |
| (5) | Defined as net new aircraft orders in units over aircraft deliveries in units. |
| (6) | Availability is based on collateral, which may vary from time to time. |
| (7) | Forward-looking statement. See the forward-looking statements disclaimer herein and see the forward-looking statements assumptions on which the 2024 guidance is based in the Corporation's financial report for the fiscal year ended December 31, 2023. |
SELECTED RESULTS
| Results of the quarter | |||||||||||||
| Three-month periods ended September 30 | 2024 | 2023 | Variance | ||||||||||
| Revenues | $ | 2,073 | $ | 1,856 | 12 | % | |||||||
| Adjusted EBITDA(1) | $ | 307 | $ | 285 | 8 | % | |||||||
| Adjusted EBITDA margin(2) | 14.8 | % | 15.4 | % | (60) bps | ||||||||
| Adjusted EBIT(1) | $ | 201 | $ | 193 | 4 | % | |||||||
| Adjusted EBIT margin(2) | 9.7 | % | 10.4 | % | (70) bps | ||||||||
| EBIT | $ | 201 | $ | 197 | 2 | % | |||||||
| EBIT margin(3) | 9.7 | % | 10.6 | % | (90) bps | ||||||||
| Net income (loss) | $ | 117 | $ | (37 | ) | $ | 154 | ||||||
| Diluted EPS (in dollars)(4) | $ | 1.09 | $ | (0.47 | ) | $ | 1.56 | ||||||
| Adjusted net income(1) | $ | 81 | $ | 80 | $ | 1 | |||||||
| Adjusted EPS (in dollars)(2) | $ | 0.74 | $ | 0.73 | $ | 0.01 | |||||||
| Cash flows from operating activities(4) | $ | (81 | ) | $ | 179 | $ | (260 | ) | |||||
| Net additions to PP&E and intangible assets | $ | (46 | ) | $ | (99 | ) | $ | 53 | |||||
| Free cash flow (usage)(1) | $ | (127 | ) | $ | 80 | $ | (207 | ) | |||||
| As at | September 30, 2024 | December 31, 2023 | Variance | ||||||||||
| Cash and cash equivalents | $ | 872 | $ | 1,594 | (45) % | ||||||||
| Available liquidity(1) | $ | 1,172 | $ | 1,845 | (36) % | ||||||||
| Order backlog (in billions of dollars)(5) | $ | 14.7 | $ | 14.2 | 4 | % | |||||||
| bps: basis points | |||||||||||||
| (1) Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures section of this press release and the Non-GAAP and other financial measures in the Q3-2024 MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures. | |||||||||||||
| (2) Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures section of this press release and the Non-GAAP and other financial measures in the Q3-2024 MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures. | |||||||||||||
| (3) Supplementary financial measure. Refer to the section entitled Caution regarding Non-GAAP and other financial measures of this press release and the Non-GAAP and other financial measures in the Q3-2024 MD&A for definitions of these metrics. | |||||||||||||
| (4) Only from continuing operations. | |||||||||||||
| (5) Represents order backlog for both manufacturing and services. | |||||||||||||
About Bombardier
At Bombardier (BBD-B.TO), we design, build, modify and maintain the world’s best-performing aircraft for the world’s most discerning people and businesses, governments and militaries. That means not simply exceeding standards, but understanding customers well enough to anticipate their unspoken needs.
For them, we are committed to pioneering the future of aviation-innovating to make flying more reliable, efficient and sustainable. And we are passionate about delivering unrivaled craftsmanship and care, giving our customers greater confidence and the elevated experience they deserve and expect. Because people who shape the world will always need the most productive and responsible ways to move through it.
Bombardier customers operate a fleet of approximately 5,000 aircraft, supported by a vast network of Bombardier team members worldwide and 10 service facilities across six countries. Bombardier’s performance-leading jets are proudly manufactured in aerostructure, assembly and completion facilities in Canada, the United States and Mexico.
For Information
For corporate news and information, including Bombardier’s Environmental, Social and Governance report, as well as the company’s plans to cover all its flight operations with a Sustainable Aviation Fuel (SAF) blend utilizing the Book and Claim system visit bombardier.com.
Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com. Follow us on X @Bombardier.
Bombardier, Global 7500 and Global 8000 are registered trademarks of Bombardier Inc. or its subsidiaries.
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| Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier +1 514 240-9649 | Mark Masluch Senior Director, Communications Bombardier +1 514 855-7167 |
The Management’s Discussion and Analysis and the Interim Consolidated Financial Statements are available at ir.bombardier.com.
CAUTION REGARDING NON-GAAP AND OTHER FINANCIAL MEASURES
This press release is based on reported earnings in accordance with IFRS and on the following non-GAAP and other financial measures:
| Non-GAAP and Other Financial Measures | |
| Non-GAAP Financial Measures | |
| Adjusted EBIT | EBIT excluding certain 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 restructuring charges (reversals), loss (gain) related to disposal of business, impairment and program termination (reversals), certain one-time pension related items included in other expense (income) such as loss (gain) on pension annuity purchases, and non-commercial legal claims. |
| Adjusted EBITDA | Adjusted EBIT plus amortization charges on PP&E and intangible assets. |
| Adjusted net income (loss) | Net income (loss) from continuing operations excluding restructuring charges (reversals), loss (gain) related to disposal of business, impairment and program termination (reversals), certain one-time pension related items included in other expense (income) such as loss (gain) on pension annuity purchases, non-commercial legal claims, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L, accretion on net retirement benefit obligation, losses (gains) on repayment of long-term debt, changes in discount rates of provisions and the related tax impacts of these items. |
| Free cash flow (usage) | Cash flows from operating activities - continuing operations less net additions to PP&E and intangible assets. |
| Available liquidity | Cash and cash equivalents, plus undrawn amounts under credit facilities. |
| Non-GAAP Financial Ratios | |
| 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. |
| Adjusted EBIT margin | Adjusted EBIT, as a percentage of total revenues. |
| Adjusted EBITDA margin | Adjusted EBITDA, as a percentage of total revenues. |
| Supplementary Financial Measure | |
| EBIT margin | EBIT, as a percentage of total revenues. |
Non-GAAP and other financial measures are measures mainly derived from the consolidated financial statements but are not standardized financial measures under the financial reporting framework used to prepare our financial statements. Therefore, these might not be comparable to similar non-GAAP and other financial measures used by other issuers. The exclusion of certain items from non-GAAP or other financial measures does not imply that these items are necessarily non-recurring.
Adjusted EBIT
Adjusted EBIT is defined as the EBIT excluding certain items which do not reflect the Corporations 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 restructuring charges (reversals)(1)(2), loss (gain) related to disposal of business(1)(3), impairment and program termination (reversals)(1)(4), certain one-time pension related items included in other expense (income) such as loss (gain) on pension annuity purchases, and non-commercial legal claims. Management uses adjusted EBIT for purposes of evaluating underlying business performance. Management believes presentation of this non-GAAP operating earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBITDA
Adjusted EBITDA is defined as the EBIT excluding restructuring charges (reversals)(1)(2), loss (gain) related to disposal of business(1)(3), impairment and program termination (reversals)(1)(4), certain one-time pension related items included in other expense (income) such as loss (gain) on pension annuity purchases, non-commercial legal claims, and amortization charges on PP&E and intangible assets. Management uses adjusted EBITDA for purposes of evaluating underlying business performance. Management believes this non-GAAP operating earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business, since it excludes the effects of items that are usually associated with investing or financing activities and 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 this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
| (1) | Special items and certain items of other expense (income) were mainly reclassified to loss (gain) related to disposal of business, impairment and program termination (reversals), and restructuring charges (reversals), for the comparative periods. See Note 20 - Reclassification to the Corporation's Interim consolidated financial statements for more information. |
| (2) | Includes severance charges or related reversal, as well as curtailment losses (gains), if any. |
| (3) | Includes changes in provisions related to past divestitures. |
| (4) | Includes impairment or reversal of impairment of PP&E and intangible assets, as well as provisions related to program termination or their related reversal, if any. |
Adjusted net income (loss)
Adjusted net income (loss) is defined as the net income (loss) from continuing operations adjusted for certain specific items that are significant but are not, based on management’s judgment, reflective of the Corporation’s underlying operations. These include adjustments related to restructuring charges (reversals)(1)(2), loss (gain) related to disposal of business(1)(3), impairment and program termination (reversals)(1)(4), certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases, non-commercial legal claims, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L, accretion on net retirement benefit obligation, losses (gains) on repayment of long-term debt, changes in discount rates of provisions and the related tax impacts of these items. Management uses adjusted net income (loss) for purposes of evaluating underlying business performance. Management believes this non-GAAP earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted net income (loss) excludes 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 this financial measure. Management believes this measure helps users of the 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 (usage) is defined as cash flows from operating activities - continuing operations 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 (usage) as a measure to assess both business performance and overall liquidity generation.
Available liquidity
Available liquidity is defined as cash and cash equivalents plus undrawn amounts under credit facilities. Management believes that this non-GAAP financial measure provides investors with an important perspective on the Corporation’s ability to meet expected liquidity requirements, including the support of product development initiatives and to ensure financial flexibility. This measure does not have any standardized meaning prescribed by IFRS and therefore, may not be comparable to similar measures presented by other companies.
| (1) | Special items and certain items of other expense (income) were mainly reclassified to loss (gain) related to disposal of business, impairment and program termination (reversals), and restructuring charges (reversals), for the comparative periods. See Note 20 - Reclassification to the Corporation's Interim consolidated financial statements for more information. |
| (2) | Includes severance charges or related reversal, as well as curtailment losses (gains), if any. |
| (3) | Includes changes in provisions related to past divestitures. |
| (4) | Includes impairment or reversal of impairment of PP&E and intangible assets, as well as provisions related to program termination or their related reversal, if any. |
Adjusted EPS
Adjusted EPS is defined as the adjusted net income (loss) attributable to equity shareholders of Bombardier Inc., divided by the weighted-average diluted number of common shares for the period. Management uses adjusted EPS for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Adjusted EPS excludes 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 this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBIT margin
Adjusted EBIT margin is defined as the adjusted EBIT expressed as a percentage of total revenues. Management uses adjusted EBIT margin for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted EBIT margin excludes 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 this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBITDA margin
Adjusted EBITDA margin is defined as the adjusted EBITDA expressed as a percentage of total revenues. Management uses adjusted EBITDA margin for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted EBITDA margin excludes 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 this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
| Reconciliation of adjusted EBIT to EBIT and computation of adjusted EBIT margin | ||||||||||||||||
| Three-month periods ended September 30 | Nine-month periods ended September 30 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| EBIT | $ | 201 | $ | 197 | $ | 536 | $ | 582 | ||||||||
| Restructuring charges (reversals)(1)(2) | — | — | (1 | ) | — | |||||||||||
| Loss (gain) related to disposal of business(1)(3) | — | (3 | ) | — | (62 | ) | ||||||||||
| Impairment and program termination (reversals)(1)(4) | — | (1 | ) | (1 | ) | 1 | ||||||||||
| Non-commercial legal claims | — | — | 25 | — | ||||||||||||
| Adjusted EBIT | $ | 201 | $ | 193 | $ | 559 | $ | 521 | ||||||||
| Total revenues | $ | 2,073 | $ | 1,856 | $ | 5,557 | $ | 4,984 | ||||||||
| Adjusted EBIT margin | 9.7 | % | 10.4 | % | 10.1 | % | 10.5 | % | ||||||||
| Reconciliation of adjusted EBITDA to EBIT and computation of adjusted EBITDA margin | ||||||||||||||||
| Three-month periods ended September 30 | Nine-month periods ended September 30 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| EBIT | $ | 201 | $ | 197 | $ | 536 | $ | 582 | ||||||||
| Amortization | 106 | 92 | 288 | 251 | ||||||||||||
| Restructuring charges (reversals)(1)(2) | — | — | (1 | ) | — | |||||||||||
| Loss (gain) related to disposal of business(1)(3) | — | (3 | ) | — | (62 | ) | ||||||||||
| Impairment and program termination (reversals)(1)(4) | — | (1 | ) | (1 | ) | 1 | ||||||||||
| Non-commercial legal claims | — | — | 25 | — | ||||||||||||
| Adjusted EBITDA | $ | 307 | $ | 285 | $ | 847 | $ | 772 | ||||||||
| Total revenues | $ | 2,073 | $ | 1,856 | $ | 5,557 | $ | 4,984 | ||||||||
| Adjusted EBITDA margin | 14.8 | % | 15.4 | % | 15.2 | % | 15.5 | % | ||||||||
| (1) Special items and certain items of other expense (income) were mainly reclassified to loss (gain) related to disposal of business, impairment and program termination (reversals), and restructuring charges (reversals), for the comparative periods. See Note 20 - Reclassification to the Corporation's Interim consolidated financial statements for more information. | ||||||||||||||||
| (2) Includes severance charges or related reversal, as well as curtailment losses (gains), if any. | ||||||||||||||||
| (3) Includes changes in provisions related to past divestitures. | ||||||||||||||||
| (4) Includes impairment or reversal of impairment of PP&E and intangible assets, as well as provisions related to program termination or their related reversal, if any. | ||||||||||||||||
| Reconciliation of adjusted net income to net income and computation of adjusted EPS | ||||||||||||||||
| Three-month periods ended September 30 | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| (per share) | (per share) | |||||||||||||||
| Net income (loss) from continuing operations | $ | 117 | $ | (37 | ) | |||||||||||
| Adjustments to EBIT related to: | ||||||||||||||||
| Loss (gain) related to disposal of business(1)(2) | — | — | (3 | ) | (0.03 | ) | ||||||||||
| Impairment and program termination (reversals)(1)(3) | — | — | (1 | ) | (0.01 | ) | ||||||||||
| Adjustments to net financing expense (income) related to: | ||||||||||||||||
| Net loss (gain) on certain financial instruments | (45 | ) | (0.45 | ) | 114 | 1.16 | ||||||||||
| Accretion on net retirement benefit obligations | 9 | 0.10 | 7 | 0.08 | ||||||||||||
| Adjusted net income | 81 | 80 | ||||||||||||||
| Preferred share dividends, including taxes | (7 | ) | (7 | ) | ||||||||||||
| Adjusted net income attributable to equity holders of Bombardier Inc. | $ | 74 | $ | 73 | ||||||||||||
| Weighted-average diluted number of common shares (in thousands) | 100,535 | 99,527 | ||||||||||||||
| Adjusted EPS (in dollars) | $ | 0.74 | $ | 0.73 | ||||||||||||
| Reconciliation of adjusted EPS to diluted EPS (in dollars) | ||||||||
| Three-month periods ended September 30 | ||||||||
| 2024 | 2023 | |||||||
| Diluted EPS from continuing operations | $ | 1.09 | $ | (0.47 | ) | |||
| Impact of adjustments to EBIT related to: | ||||||||
| Loss (gain) related to disposal of business(1)(2) | — | (0.03 | ) | |||||
| Impairment and program termination (reversals)(1)(3) | — | (0.01 | ) | |||||
| Adjustments to net financing expense (income) related to: | ||||||||
| Net loss (gain) on certain financial instruments | (0.45 | ) | 1.16 | |||||
| Accretion on net retirement benefit obligations | 0.10 | 0.08 | ||||||
| Adjusted EPS | $ | 0.74 | $ | 0.73 | ||||
| (1) Special items and certain items of other expense (income) were mainly reclassified to loss (gain) related to disposal of business, impairment and program termination (reversals), and restructuring charges (reversals), for the comparative periods. See Note 20 - Reclassification to the Corporation's Interim consolidated financial statements for more information. | ||||||||
| (2) Includes changes in provisions related to past divestitures. | ||||||||
| (3) Includes impairment or reversal of impairment of PP&E and intangible assets, as well as provisions related to program termination or their related reversal, if any. | ||||||||
| Reconciliation of adjusted net income to net income and computation of adjusted EPS | ||||||||||||||||
| Nine-month periods ended September 30 | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| (per share) | (per share) | |||||||||||||||
| Net income from continuing operations | $ | 246 | $ | 275 | ||||||||||||
| Adjustments to EBIT related to: | ||||||||||||||||
| Restructuring charges (reversals)(1)(2) | (1 | ) | (0.01 | ) | — | — | ||||||||||
| Loss (gain) related to disposal of business(1)(3) | — | — | (62 | ) | (0.62 | ) | ||||||||||
| Impairment and program termination (reversals)(1)(4) | (1 | ) | (0.01 | ) | 1 | 0.01 | ||||||||||
| Non-commercial legal claims | 25 | 0.25 | — | — | ||||||||||||
| Adjustments to net financing expense (income) related to: | ||||||||||||||||
| Net loss (gain) on certain financial instruments | (186 | ) | (1.86 | ) | 2 | 0.02 | ||||||||||
| Accretion on net retirement benefit obligations | 26 | 0.26 | 19 | 0.19 | ||||||||||||
| Losses on repayment of long-term debt | 127 | 1.27 | 38 | 0.38 | ||||||||||||
| Adjusted net income | 236 | 273 | ||||||||||||||
| Preferred share dividends, including taxes | (23 | ) | (23 | ) | ||||||||||||
| Adjusted net income attributable to equity holders of Bombardier Inc. | $ | 213 | $ | 250 | ||||||||||||
| Weighted-average diluted number of common shares (in thousands) | 99,665 | 99,295 | ||||||||||||||
| Adjusted EPS (in dollars) | $ | 2.14 | $ | 2.52 | ||||||||||||
| Reconciliation of adjusted EPS to diluted EPS (in dollars) | ||||||||
| Nine-month periods ended September 30 | ||||||||
| 2024 | 2023 | |||||||
| Diluted EPS from continuing operations | $ | 2.24 | $ | 2.54 | ||||
| Impact of adjustments to EBIT related to: | ||||||||
| Restructuring charges (reversals)(1)(2) | (0.01 | ) | — | |||||
| Loss (gain) related to disposal of business(1)(3) | — | (0.62 | ) | |||||
| Impairment and program termination (reversals)(1)(4) | (0.01 | ) | 0.01 | |||||
| Non-commercial legal claims | 0.25 | — | ||||||
| Adjustments to net financing expense (income) related to: | ||||||||
| Net loss (gain) on certain financial instruments | (1.86 | ) | 0.02 | |||||
| Accretion on net retirement benefit obligations | 0.26 | 0.19 | ||||||
| Losses on repayment of long-term debt | 1.27 | 0.38 | ||||||
| Adjusted EPS | $ | 2.14 | $ | 2.52 | ||||
| (1) Special items and certain items of other expense (income) were mainly reclassified to loss (gain) related to disposal of business, impairment and program termination (reversals), and restructuring charges (reversals), for the comparative periods. See Note 20 - Reclassification to the Corporation's Interim consolidated financial statements for more information. | ||||||||
| (2) Includes severance charges or related reversal, as well as curtailment losses (gains), if any. | ||||||||
| (3) Includes changes in provisions related to past divestitures. | ||||||||
| (4) Includes impairment or reversal of impairment of PP&E and intangible assets, as well as provisions related to program termination or their related reversal, if any. | ||||||||
| Reconciliation of free cash flow (usage) to cash flows from operating activities | |||||||||||||||||
| Three-month periods ended September 30 | Nine-month periods ended September 30 | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Cash flows from operating activities – continuing operations | $ | (81 | ) | $ | 179 | $ | (455 | ) | $ | (117 | ) | ||||||
| Net additions to PP&E and intangible assets | (46 | ) | (99 | ) | (127 | ) | (272 | ) | |||||||||
| Free cash flow (usage) from continuing operations | $ | (127 | ) | $ | 80 | $ | (582 | ) | $ | (389 | ) | ||||||
| Reconciliation of available liquidity to cash and cash equivalents | ||||||||
| As at | September 30, 2024 | December 31, 2023 | ||||||
| Cash and cash equivalents | $ | 872 | $ | 1,594 | ||||
| Undrawn amounts under available revolving credit facility(1) | 300 | 251 | ||||||
| Available liquidity | $ | 1,172 | $ | 1,845 | ||||
| (1) A committed secured revolving credit facility of $300 million is available for cash drawings for the ongoing working capital needs of the Corporation and for issuance of performance letters of credit. This facility was undrawn as at September 30, 2024 and the availability as at such date was $300 million based on the collateral, which may vary from time to time. | ||||||||
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, financial performance, 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; customer value; 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 execution of orders in general; competitive position; 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, expected financial requirements, and ongoing review of strategic and financial alternatives; the introduction of productivity enhancements, operational efficiencies, cost reduction and restructuring initiatives, and anticipated costs, intended benefits and timing thereof; the ability to continue business growth and cash generation; expectations, objectives and strategies regarding debt repayment, refinancing of maturities and interest cost reduction; 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; expectations regarding the availability of government assistance programs; the impact of new, or exacerbation of existing global health, geopolitical or military events on the foregoing and the effectiveness of our plans and measures in response thereto; and expectations regarding the strength of markets, economic downturns or recession, and inflationary and supply chain pressures.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
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, guidance, 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 underlying the forward-looking statements made in this press release include the following material assumptions: growth of the business aviation market and the Corporation’s share of such market; proper identification and continued management of recurring cost saving; optimization of our real estate portfolio; and access to working capital facilities on market terms. For additional information, including with respect to other assumptions underlying the forward-looking statements made in this press release, refer to the Forward-looking statements - Assumptions section in the MD&A of the Corporation's financial report for the fiscal year ended December 31, 2023. Given the impact of the changing circumstances surrounding new or continuing global health, geopolitical and military events, and the related response from the Corporation, governments (federal, provincial and municipal, both domestic, foreign and multinational inter-governmental organizations), regulatory authorities, businesses, suppliers, customers, counterparties and third-party service providers, there is an inherently higher degree of uncertainty associated with the Corporation’s assumptions.
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: operational risks (such as risks related to business development and growth; order backlog; deployment and execution of our strategy, including cost reductions and working capital improvements and manufacturing and productivity enhancement initiatives; developing new products and services, including technological innovation and disruption; the certification of products and services; pressures on cash flows and capital expenditures, including due to seasonality and cyclicality; doing business with partners; product performance warranty and casualty claim losses; environmental, health and safety concerns and regulations; dependence on limited number of contracts, customers and suppliers, including supply chain risks; human resources including the global availability of a skilled workforce; reliance on information systems (including technology vulnerabilities, cybersecurity threats and privacy breaches); reliance on and protection of intellectual property rights; reputation risks; scrutiny and perception gaps regarding environmental, social and governance matters; adequacy of insurance coverage; risk management; and tax matters); financing risks (such as risks related to liquidity and access to capital markets; substantial debt and interest payment requirements, including execution of debt management and interest cost reduction strategies; restrictive and financial debt covenants; retirement benefit plan risk; exposure to credit risk; and availability of government support); risks related to regulatory and legal proceedings; risks associated with general economic conditions and disruptions, both regionally and globally, that may impact our sales and operations; business environment risks (such as risks associated with the financial condition of business aircraft customers; trade policy; increased competition; political instability and geopolitical tensions; financial and economic sanctions and export control limitations; global climate change; and force majeure events); market risks (such as foreign currency fluctuations; changing interest rates; increases in commodity prices; and inflation rate fluctuations); and other unforeseen adverse events. For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation's financial report for the fiscal year ended December 31, 2023. Any one or more of the foregoing factors may be exacerbated by new or continuing global health, geopolitical or military events, which may have a significantly more severe impact on the Corporation’s business, results of operations and financial condition than in the absence of such events.
Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. Other risks and uncertainties not presently known to 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 report 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.
