Magellan Aerospace Corporation Announces Financial Results
|
|
Three month period ended
|
Six month period ended
|
||||
Expressed in thousands of Canadian dollars, except per share amounts |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
|
Revenue |
|
242,908 |
219,651 |
10.6% |
478,151 |
443,027 |
7.9% |
Gross Profit |
|
26,609 |
23,012 |
15.6% |
50,426 |
45,274 |
11.4% |
Net Income |
|
7,446 |
1,979 |
276.3% |
13,757 |
5,839 |
135.6% |
Net Income per Share |
|
0.13 |
0.03 |
333.3% |
0.24 |
0.10 |
140.0% |
Adjusted EBITDA |
|
21,916 |
19,552 |
12.1% |
43,614 |
38,128 |
14.4% |
Adjusted EBITDA per Share |
|
0.38 |
0.34 |
11.8% |
0.76 |
0.66 |
15.2% |
This news release contains certain forward-looking statements that reflect the current views and/or expectations of the Corporation with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions, which may cause actual results to be materially different from those expressed or implied. The Corporation assumes no future obligation to update these forward-looking statements except as required by law. |
This news release presents certain non-IFRS financial measures to assist readers in understanding the Corporation's performance. Non-IFRS financial measures are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”). Throughout this news release, reference is made to EBITDA (defined as net income before interest, income taxes, depreciation and amortization) and Adjusted EBITDA (net income before interest, income taxes, depreciation and amortization, goodwill impairment and restructuring), which the Corporation considers to be indicative measures of operating performance and a metric to evaluate profitability. EBITDA and Adjusted EBITDA are not generally accepted earnings measures and should not be considered as alternatives to net income (loss) or cash flows as determined in accordance with IFRS. As there is no standardized method of calculating this measure, the Corporation’s EBITDA and Adjusted EBITDA may not be directly comparable with similarly titled measures used by other companies. |
1. Overview
A summary of Magellan’s business and significant updates
Magellan is a diversified supplier of components to the aerospace industry. Through its wholly owned subsidiaries, controlled entity and joint venture, Magellan designs, engineers and manufactures aeroengine and aerostructure components for aerospace markets, including advanced products for defence and space markets, and complementary specialty products. The Corporation also supports the aftermarket through supply of spare parts as well as performing repair and overhaul services.
Magellan operates substantially all of its activities in one reportable segment, Aerospace, which is viewed as one segment by the chief operating decision-makers for the purpose of resource allocations, assessing performance and strategic planning. The Aerospace segment includes the design, development, manufacture, repair and overhaul, and sale of systems and components for defence and civil aviation.
The Industry and the Supply Chain
Though global air travel has seen signs of recovery with both domestic and international revenue passenger kilometers, on a combined basis, approaching pre-COVID 19 pandemic levels, Magellan’s financial results and operations continue to be influenced by overhanging impacts from the pandemic. These impacts include customer build rate adjustments (and the impact on production scheduling), higher input prices for goods and services, limited availability of products, disruptions to supply chains and labour shortages. Magellan continues to manage these impacts and strives to mitigate their effect on Magellan’s operations, supply chain, and most importantly the health and safety of its employees.
In the first six months of 2024, 65.6% of revenues were derived from commercial markets while 34.4% of revenues related to defence markets.
Business Update
On
On
On
For additional information, please refer to the “Management’s Discussion and Analysis” section of the Corporation’s 2023 Annual Report available on www.sedarplus.ca.
2. Results of Operations
A discussion of Magellan’s operating results for the second quarter ended
The Corporation reported revenue in the second quarter of 2024 of
Consolidated Revenue
|
Three month period |
Six month period |
||||||||
|
ended |
ended |
||||||||
Expressed in thousands of dollars |
|
2024 |
|
2023 |
Change |
|
2024 |
|
2023 |
Change |
|
|
88,224 |
|
94,517 |
(6.7)% |
|
180,152 |
|
192,623 |
(6.5)% |
|
|
71,041 |
|
60,788 |
16.9% |
|
139,040 |
|
117,222 |
18.6% |
|
|
83,643 |
|
64,346 |
30.0% |
|
158,959 |
|
133,182 |
22.8% |
Total revenues |
|
242,908 |
|
219,651 |
10.6% |
|
478,151 |
|
443,027 |
7.9% |
Revenue in
Revenue in
European revenue in the second quarter of 2024 increased 30.0% compared to the corresponding period in 2023 primarily driven by volume increases for single aisle and wide body aircraft parts and favourable foreign exchange impacts resulting from the strengthening of
Gross Profit
|
Three month period |
Six month period |
||||||||
|
ended |
ended |
||||||||
Expressed in thousands of dollars |
|
2024 |
|
2023 |
Change |
|
2024 |
|
2023 |
Change |
Gross profit |
|
26,609 |
|
23,012 |
15.6% |
|
50,426 |
|
45,274 |
11.4% |
Percentage of revenues |
|
11.0% |
|
10.5% |
|
|
10.5% |
|
10.2% |
|
Gross profit of
Administrative and General Expenses
|
Three month period |
Six month period |
||||||||
|
ended |
ended |
||||||||
Expressed in thousands of dollars |
|
2024 |
|
2023 |
Change |
|
2024 |
|
2023 |
Change |
Administrative and general expenses |
|
14,894 |
|
14,108 |
5.6% |
|
29,131 |
|
28,455 |
2.4% |
Percentage of revenues |
|
6.1% |
|
6.4% |
|
|
6.1% |
|
6.4% |
|
Administrative and general expenses as a percentage of revenues was 6.1% for the second quarter of 2024, lower than the same period of 2023 percentage of revenues of 6.4%. Administrative and general expenses increased
Restructuring
|
Three month period |
Six month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Restructuring |
|
─ |
|
265 |
|
─ |
|
509 |
Restructuring in 2023 was primarily related to ongoing costs associated with the closure of the
Other
|
Three month period |
Six month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Foreign exchange (gain) loss |
|
(163) |
|
1,520 |
|
(897) |
|
2,742 |
Loss (gain) on sale of capital assets |
|
63 |
|
(4) |
|
87 |
|
(23) |
Other |
|
821 |
|
150 |
|
619 |
|
150 |
Total Other |
|
721 |
|
1,666 |
|
(191) |
|
2,869 |
Other for the second quarter of 2024 included a
Other for the second quarter of 2024 also includes
Interest Expense
|
Three month period |
Six month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Interest on bank indebtedness and long-term debt |
|
452 |
|
177 |
|
1,161 |
|
302 |
Accretion charge on long-term debt and borrowings |
|
196 |
|
232 |
|
371 |
|
458 |
Accretion charge for lease liabilities |
|
329 |
|
396 |
|
698 |
|
803 |
Discount on sale of accounts receivable |
|
83 |
|
30 |
|
140 |
|
78 |
Total interest expense |
|
1,060 |
|
835 |
|
2,370 |
|
1,641 |
Total interest expense of
Provision for Income Taxes
|
Three month period |
Six month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Current income tax expense |
|
3,016 |
|
4,471 |
|
6,510 |
|
8,904 |
Deferred income tax recovery |
|
(528) |
|
(312) |
|
(1,151) |
|
(2,943) |
Income tax expense |
|
2,488 |
|
4,159 |
|
5,359 |
|
5,961 |
Effective tax rate |
|
25.0% |
|
67.8% |
|
28.0% |
|
50.5% |
Income tax expense for the three months ended
3. Selected Quarterly Financial Information
A summary view of Magellan’s quarterly financial performance
|
2024 |
|
|
|
2023 |
|
2022 |
|
Expressed in millions of dollars, except per share amounts |
|
|
|
|
|
|
|
|
Revenue |
242.9 |
235.2 |
223.5 |
213.0 |
219.7 |
223.4 |
193.1 |
191.1 |
Income (loss) before taxes |
9.9 |
9.2 |
4.4 |
4.7 |
6.1 |
5.7 |
(20.9) |
2.5 |
Net income (loss) |
7.5 |
6.3 |
(0.3) |
3.7 |
1.9 |
3.9 |
(20.8) |
0.6 |
Net income (loss) per share |
|
|
|
|
|
|
|
|
Basic and diluted |
0.13 |
0.11 |
(0.00) |
0.06 |
0.03 |
0.07 |
(0.36) |
0.01 |
EBITDA1 |
21.9 |
21.7 |
15.9 |
17.7 |
19.3 |
18.3 |
(8.5) |
14.7 |
Adjusted EBITDA1 |
21.9 |
21.7 |
16.4 |
18.5 |
19.5 |
18.6 |
(4.8) |
14.8 |
1 EBITDA and Adjusted EBITDA are not IFRS financial measures. Please see Section 4 the “Reconciliation of Net Income to EBITDA and Adjusted EBITDA” section for more information. |
Revenues and net income in the quarter were also impacted by the movements of the Canadian dollar relative to
Revenue for the second quarter of 2024 of
The Corporation’s results through-out fiscal 2022 and 2023 were negatively impacted by the continued effects of the COVID-19 pandemic via reduced volumes and supply chain disruptions. The decrease in profitability in the fourth quarter of 2022 was mainly the result of the effect of inflation in materials, supplies, utilities and labour; and supply chain disruptions which impacted production of goods resulting in production system inefficiencies and lower absorption of manufacturing supplies. These impacts, although not as significant, continued to impact the results in 2023. Compared to the second quarter of 2023, the Corporation has seen modest, albeit uneven, growth in quarterly revenues as global air travel continues to recover to pre COVID-19 levels.
4. Reconciliation of Net Income to EBITDA and Adjusted EBITDA
A description and reconciliation of certain non-IFRS measures used by management
In addition to the primary measures of earnings and earnings per share (basic and diluted) in accordance with IFRS, the Corporation includes EBITDA (net income before interest, income taxes and depreciation and amortization) and Adjusted EBITDA (net income before interest, income taxes, depreciation and amortization, goodwill impairment and restructuring) in this press release. The Corporation has provided these measures because it believes this information is used by certain investors to assess financial performance and that EBITDA and Adjusted EBITDA are useful supplemental measures as they provide an indication of the results generated by the Corporation’s principal business activities prior to consideration of how these activities are financed and how the results are taxed in the various jurisdictions. Each component of these measures is calculated in accordance with IFRS, but EBITDA and Adjusted EBITDA are not recognized measures under IFRS, and the Corporation’s method of calculation may not be comparable with that of other companies. Accordingly, EBITDA and Adjusted EBITDA should not be used as alternatives to net income as determined in accordance with IFRS or as alternatives to cash provided by or used in operations.
|
Three month period |
Six month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net income |
|
7,446 |
|
1,979 |
|
13,757 |
|
5,839 |
Add back: |
|
|
|
|
|
|
|
|
Interest |
|
1,060 |
|
835 |
|
2,370 |
|
1,641 |
Taxes |
|
2,488 |
|
4,159 |
|
5,359 |
|
5,961 |
Depreciation and amortization |
|
10,922 |
|
12,314 |
|
22,128 |
|
24,178 |
EBITDA |
|
21,916 |
|
19,287 |
|
43,614 |
|
37,619 |
Add back: |
|
|
|
|
|
|
|
|
Restructuring |
|
─ |
|
265 |
|
─ |
|
509 |
Adjusted EBITDA |
|
21,916 |
|
19,552 |
|
43,614 |
|
38,128 |
Adjusted EBITDA in the second quarter of 2024 increased
5. Liquidity and Capital Resources
A discussion of Magellan’s cash flow, liquidity, credit facilities and other disclosures
The Corporation’s liquidity needs can be met through a variety of sources including cash on hand, cash provided by operations, short-term borrowings from its credit facility and accounts receivable securitization program, and long-term debt and equity capacity. Principal uses of cash are for operational requirements, capital expenditures, common share repurchases and dividend payments. Based on current funds available and expected cash flow from operating activities, management believes that the Corporation has sufficient funds available to meet its liquidity requirements at any point in time. However, if cash from operating activities is lower than expected or capital projects exceed current estimates, or if the Corporation incurs major unanticipated expenses, it may be required to seek additional capital in the form of debt or equity or a combination of both.
Cash Flow from Operations
|
Three month period |
Six month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
|
2024 |
|
2023 |
2024 |
|
2023 |
|
Increase in accounts receivable |
|
(21,220) |
|
(7,441) |
(18,838) |
|
(36,654) |
|
Increase in contract assets |
|
(3,698) |
|
(2,132) |
(8,948) |
|
(5,953) |
|
Increase in inventories |
|
(4,715) |
|
(5,448) |
(12,228) |
|
(17,447) |
|
Decrease (increase) in prepaid expenses and other |
|
361 |
|
706 |
(573) |
|
421 |
|
Increase (decrease) in accounts payable, accrued liabilities and provisions |
|
3,907 |
|
(14,225) |
2,340 |
|
3,087 |
|
Increase (decrease) in contract liabilities |
|
21,283 |
|
(4,730) |
36,431 |
|
(8,919) |
|
Changes in non-cash working capital balances |
|
(4,082) |
|
(33,270) |
(1,816) |
|
(65,465) |
|
Cash provided by (used in) operating activities |
|
14,538 |
|
(18,927) |
34,365 |
|
(37,294) |
|
For the three months ended
Investing Activities
|
Three month period |
Six month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Purchase of property, plant and equipment |
|
(8,805) |
|
(2,226) |
|
(15,100) |
|
(5,789) |
Proceeds from disposal of property, plant and equipment |
|
56 |
|
12 |
|
63 |
|
178 |
Decrease (increase) in intangible and other assets |
|
651 |
|
(404) |
|
(589) |
|
(1,066) |
Cash used in investing activities |
|
(8,098) |
|
(2,618) |
|
(15,626) |
|
(6,677) |
Investing activities used
Financing Activities
|
Three month period |
Six month period |
||||||
|
ended |
ended |
||||||
Expressed in thousands of dollars |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Increase in bank indebtedness |
|
25,214 |
|
11,390 |
|
18,552 |
|
11,390 |
Decrease in long-term debt |
|
(180) |
|
(516) |
|
(720) |
|
(1,056) |
Lease liability payments |
|
(1,306) |
|
(1,474) |
|
(2,677) |
|
(2,860) |
Increase (decrease) in borrowings subject to specific conditions, net |
|
1,257 |
|
1,551 |
|
(19) |
|
227 |
Increase in long-term liabilities and provisions |
|
286 |
|
310 |
|
219 |
|
311 |
Common share repurchases |
|
(300) |
|
(418) |
|
(684) |
|
(626) |
Common share dividends |
|
(1,429) |
|
(1,433) |
|
(2,858) |
|
(2,869) |
Cash provided by financing activities |
|
23,542 |
|
9,410 |
|
11,513 |
|
4,517 |
Financing activities provided
On
As at
Dividends
During each of the first and second quarter of 2024, the Corporation declared quarterly cash dividends of
Subsequent to
Normal Course Issuer Bid
On
During the six month period ended
Outstanding Share Information
The authorized capital of the Corporation consists of an unlimited number of preference shares, issuable in series, and an unlimited number of common shares. As at
6. Financial Instruments
A summary of Magellan’s financial instruments
Derivative Contracts
The Corporation operates internationally, which gives rise to a risk that its income, cash flows and shareholders’ equity may be adversely impacted by fluctuations in foreign exchange rates. Currency risk arises because the amount of the local currency receivable or payable for transactions denominated in foreign currencies may vary due to changes in exchange rates and because the non-Canadian dollar denominated financial statements of the Corporation’s subsidiaries may vary on consolidation into the reporting currency of Canadian dollars. The Corporation from time to time may use derivative financial instruments to help manage foreign exchange risk with the objective of reducing transaction exposures and the resulting volatility of the Corporation’s earnings. The Corporation does not trade in derivatives for speculative purposes. Under these contracts (forwards and collars), the Corporation is obligated to purchase specified amounts of currency – generally either
As at
As at
Off-Balance Sheet Arrangements
The Corporation does not have any off-balance sheet arrangements that have or reasonably are likely to have a material effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. As a result, the Corporation is not exposed materially to any financing, liquidity, market or credit risk that could arise if it had engaged in these arrangements.
7. Related Party Transactions
A summary of Magellan’s transactions with related parties
For the three month period ended
8. Risk Factors
A summary of risks and uncertainties facing Magellan
The Corporation manages a number of risks in each of its businesses in order to achieve an acceptable level of risk without hindering the ability to maximize returns. Management has procedures to help identify and manage significant operational and financial risks.
For more information in relation to the risks inherent in Magellan’s business, reference is made to the information under “Risk Factors” in the Corporation’s Management’s Discussion and Analysis for the year ended
9. Outlook
The outlook for Magellan’s business in 2024
A partial restructuring of the tier I commercial aircraft manufacturing supply chain is taking place as a result of Boeing announcing that it was acquiring Spirit AeroSystems (“Spirit”). This move reverses a long-standing trend of outsourcing key manufacturing operations, which saw Spirit spun off from Boeing in 2005. Spirit supplies key aircraft assemblies, including wings and fuselage sections for the B737 MAX aircraft that are manufactured and then shipped to Boeing for final assembly. Boeing also recently concluded a deal with
Considering Spirit also manufactures critical commercial work packages for Airbus programs, a separate agreement was reached whereby Airbus will acquire those packages from Spirit. These include A350 fuselage sections, A220 wings and mid-fuselage sections as well as A220 pylons. This carve-out ensures continuity of Airbus programs while Boeing takes control of the remaining Spirit operations relevant to its own commercial airplanes. Spirit AeroSystems is a customer of Magellan for various products including wing components.
In
Boeing’s 737 production rate remains capped by the
In June, Boeing declared a new 787 issue involving incorrect torqueing of fasteners causing potential delays to correct affected aircraft. Boeing had previously announced that they expected a slower than planned increase in build rates as they manage through supplier shortages. The 787 aircraft build rate has therefore been temporarily reduced from 5 aircraft per month to 4 aircraft per month. Meanwhile, Boeing’s 767 program continues at a rate of 3 aircraft per month and the 777 at 5 aircraft per month.
Within the defence market, the European fighter segment is strong as order backlogs for the three current fighters (Dassault’s Rafale, the multi-national Eurofighter and Saab’s JAS-39 E/F Gripen) extend out a number of years. Dassault is currently increasing Rafale annual deliveries to approximately 22 aircraft with existing orders supporting production continuing late into the next decade. The Eurofighter program is also seeing increased order activity, including a new order for 24 aircraft from
In
In the North American defence helicopter market, the
Defence aerospace programs continue to be strong both in
Additional Information
Additional information relating to
Forward Looking Statements
This news release contains certain forward-looking statements that reflect the current views and/or expectations of the Corporation with respect to its performance, business and future events. Such statements are subject to a number of uncertainties and assumptions, which may cause actual results to be materially different from those expressed or implied. These forward looking statements can be identified by the words such as "anticipate", "continue", "estimate", "forecast", “expect”, "may", "project", "could", "plan", "intend", "should", "believe" and similar words suggesting future events or future performance. In particular there are forward looking statements contained under the heading "Overview" which outlines certain expectations for future operations. These statements assume the continuation of the current regulatory and legal environment; the continuation of trends for passenger airliner and defence production and are subject to the risks contained herein and outlined in our annual information form. The Corporation assumes no future obligation to update these forward-looking statements except as required by law.
|
|||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) |
|||||
|
|||||
(unaudited) |
|
Three month period
ended |
Six month period
ended |
||
(expressed in thousands of Canadian dollars, except per share amounts) |
|
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
|
Revenues |
|
242,908 |
219,651 |
478,151 |
443,027 |
Cost of revenues |
|
216,299 |
196,639 |
427,725 |
397,753 |
Gross profit |
|
26,609 |
23,012 |
50,426 |
45,274 |
|
|
|
|
|
|
Administrative and general expenses |
|
14,894 |
14,108 |
29,131 |
28,455 |
Restructuring |
|
─ |
265 |
─ |
509 |
Other expense (income) |
|
721 |
1,666 |
(191) |
2,869 |
Income before interest and income taxes |
|
10,994 |
6,973 |
21,486 |
13,441 |
|
|
|
|
|
|
Interest expense |
|
1,060 |
835 |
2,370 |
1,641 |
Income before income taxes |
|
9,934 |
6,138 |
19,116 |
11,800 |
|
|
|
|
|
|
Income tax expense (recovery): |
|
|
|
|
|
Current |
|
3,016 |
4,471 |
6,510 |
8,904 |
Deferred |
|
(528) |
(312) |
(1,151) |
(2,943) |
|
|
2,488 |
4,159 |
5,359 |
5,961 |
Net income |
|
7,446 |
1,979 |
13,757 |
5,839 |
|
|
|
|
|
|
Other comprehensive income (loss): |
|
|
|
|
|
Items that may be reclassified to profit and loss |
|
|
|
|
|
in subsequent periods: |
|
|
|
|
|
Foreign currency translation |
|
3,557 |
(5,232) |
12,541 |
(1,798) |
Unrealized (loss) gain on foreign currency contract hedges |
|
(52) |
1,316 |
(321) |
2,084 |
Items not to be reclassified to profit and loss |
|
|
|
|
|
in subsequent periods: |
|
|
|
|
|
Actuarial income (loss) on defined benefit pension plans, net of tax 5 |
279 |
(425) |
279 |
(250) |
|
Comprehensive income (loss) |
|
11,230 |
(2,362) |
26,256 |
5,875 |
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
Basic and diluted |
0.13 |
0.03 |
0.24 |
0.10 |
|
|
||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
||||
|
|
|
|
|
(unaudited) |
|
|
|
|
(expressed in thousands of Canadian dollars) |
|
2024 |
|
2023 |
|
|
|
|
|
Current assets |
|
|
|
|
Cash |
|
31,919 |
|
1,494 |
Trade and other receivables |
|
233,384 |
|
211,364 |
Contract assets |
|
79,151 |
|
69,052 |
Inventories |
|
275,621 |
|
258,448 |
Prepaid expenses and other |
|
11,249 |
|
10,441 |
|
|
631,324 |
|
550,799 |
Non-current assets |
|
|
|
|
Property, plant and equipment |
|
363,707 |
|
359,722 |
Right-of-use assets |
|
33,453 |
|
26,857 |
Investment properties |
|
6,697 |
|
6,632 |
Intangible assets |
|
36,472 |
|
37,402 |
|
|
22,863 |
|
22,159 |
Other assets |
|
12,703 |
|
13,126 |
Deferred tax assets |
|
8,439 |
|
8,376 |
|
|
484,334 |
|
474,274 |
Total assets |
|
1,115,658 |
|
1,025,073 |
|
|
|
|
|
Current liabilities |
|
|
|
|
Bank indebtedness |
|
34,628 |
|
15,534 |
Accounts payable, accrued liabilities and provisions |
|
149,754 |
|
142,713 |
Contract liabilities |
|
64,511 |
|
27,960 |
Debt due within one year |
|
9,759 |
|
9,439 |
|
|
258,652 |
|
195,646 |
Non-current liabilities |
|
|
|
|
Lease liabilities |
|
30,112 |
|
24,314 |
Borrowings subject to specific conditions |
|
23,696 |
|
24,166 |
Other long-term liabilities and provisions |
|
6,118 |
|
6,089 |
Deferred tax liabilities |
|
36,949 |
|
37,441 |
|
|
96,875 |
|
92,010 |
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
|
249,765 |
|
250,147 |
Contributed surplus |
|
2,044 |
|
2,044 |
Other paid in capital |
|
13,565 |
|
13,565 |
Retained earnings |
|
457,828 |
|
446,952 |
Accumulated other comprehensive income |
|
33,552 |
|
21,332 |
Equity attributable to equity holders of the Corporation |
|
756,754 |
|
734,040 |
Non-controlling interest |
|
3,377 |
|
3,377 |
Total equity |
|
760,131 |
|
737.417 |
Total liabilities and equity |
|
1,115,658 |
|
1,025,073 |
|
|||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||
(unaudited) |
|
Three month period
ended |
Six month period
ended |
||
(expressed in thousands of Canadian dollars) |
|
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
|
Cash flow from operating activities |
|
|
|
|
|
Net income |
|
7,446 |
1,979 |
13,757 |
5,839 |
Amortization/depreciation of intangible assets, right-of-use assets and property, plant and equipment |
|
10,922 |
12,314 |
22,128 |
24,178 |
Loss (gain) on disposal of property, plant and equipment |
|
63 |
(4) |
87 |
(23) |
Increase in defined benefit plans |
|
394 |
397 |
649 |
886 |
Accretion of financial liabilities |
|
524 |
629 |
1,068 |
1,262 |
Deferred taxes |
|
(527) |
(664) |
(1,151) |
(3,645) |
Income on investments in joint ventures |
|
(163) |
(133) |
(318) |
(151) |
Other |
|
(39) |
(175) |
(39) |
(175) |
Changes to non-cash working capital |
|
(4,082) |
(33,270) |
(1,816) |
(65,465) |
Net cash provided by (used in) operating activities |
|
14,538 |
(18,927) |
34,365 |
(37,294) |
|
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
|
Purchase of property, plant and equipment |
|
(8,805) |
(2,226) |
(15,100) |
(5,789) |
Proceeds from disposal of property, plant and equipment |
|
56 |
12 |
63 |
178 |
Decrease (increase) in intangible and other assets |
|
651 |
(404) |
(589) |
(1,066) |
Net cash used in investing activities |
|
(8,098) |
(2,618) |
(15,626) |
(6,677) |
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
|
Increase in bank indebtedness |
|
25,214 |
11,390 |
18,552 |
11,390 |
Decrease in long-term debt |
|
(180) |
(516) |
(720) |
(1,056) |
Lease liability payments |
|
(1,306) |
(1,474) |
(2,677) |
(2,860) |
Increase (decrease) in borrowings subject to specific conditions, net |
|
1,257 |
1,551 |
(19) |
227 |
Increase in long-term liabilities and provisions |
|
286 |
310 |
219 |
311 |
Common share repurchases |
|
(300) |
(418) |
(684) |
(626) |
Common share dividends |
|
(1,429) |
(1,433) |
(2,858) |
(2,869) |
Net cash provided by financing activities |
|
23,542 |
9,410 |
11,813 |
4,517 |
|
|
|
|
|
|
Increase (decrease) in cash during the period |
|
29,982 |
(12,135) |
30,552 |
(39,454) |
Cash at beginning of the period |
|
2,215 |
13,807 |
1,494 |
40,940 |
Effect of exchange rate differences |
|
(278) |
144 |
(127) |
330 |
Cash at end of the period |
|
31,919 |
1,816 |
31,919 |
1,816 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806660391/en/
President & Chief Executive Officer
T: (905) 677-1889
E: phil.underwood@magellan.aero
Chief Financial Officer
T: (905) 677-1889
E: elena.milantoni@magellan.aero
Source: