Q3 2021 Key Metrics
- Net loss of $14.1 million, or
$0.08 per basic share; a
quarter-over-quarter decrease of $34.5
million primarily due to higher unrealized foreign exchange
losses of $40.8 million and the
capacity purchase agreement ('CPA') amendments.
- Adjusted net income1 of $15.3 million, or $0.09 per basic share; an increase of
$4.4 million quarter-over-quarter
primarily due to a reduction in interest expense resulting from the
early repayment on amortizing term loans under certain aircraft
financings and lower depreciation expense.
- Adjusted EBITDA1 of $78.1 million; a decrease of $7.8 million over third quarter 2020.
- Collected approximately 77% (67% in Q2'21) of the Regional
Aircraft Leasing segment's lease revenue recognized in the third
quarter.
- Liquidity of $258.1 million.
Recent Accomplishments
- Executed long-term leasing agreements with new customer,
Emerald Airlines of Dublin,
Ireland, for six ATR 72-600s.
- Executed long-term leasing agreements with new customer,
Waltzing Matilda Aviation of Boston,
Massachusetts, doing business as Connect Airlines, for two
Dash 8-400s.
- Remarketed 11 of 13 off-lease aircraft repossessed by Chorus
Aviation Capital since the onset of the COVID-19 pandemic.
- Established new three-year $75.0
million revolving committed credit facility, plus a
$25.0 million uncommitted
accordion.
HALIFAX, NS, Nov. 10, 2021 /CNW/ - Chorus Aviation Inc.
('Chorus') (TSX: CHR) today announced third quarter 2021
financial results.
"I am encouraged by our accomplishments as the regional aviation
sector leads the recovery of domestic air transportation in many
parts of the world. As vaccination rates increase and travel
restrictions are lifted, we expect progress to continue," stated
Joe Randell, President and Chief
Executive Officer, Chorus Aviation Inc. "Improving market
conditions are evidenced this quarter by the significant increases
in fleet utilization in both our Air Canada Express operation and
our leasing segment's portfolio of aircraft."
This quarter, we carried more than double the number of
passengers under the CPA than we did in the first half of the
year. For the balance of this year, we are projected to
operate approximately 75% to 80% of our fourth quarter 2019 flying
activity. We're very pleased to have welcomed back substantially
all our frontline and administrative employees and are currently
recruiting additional team members."
"Positive signs of recovery were also evident in our regional
aircraft leasing division whereby leasing revenue collections
increased by 10 percentage points over the previous quarter to 77%,
and agreements were executed to lease eight off-lease aircraft with
two new customers. Excluding off-lease aircraft, our
portfolio of leased aircraft operated at approximately 75% of their
pre-pandemic average flying hours in the third quarter 2021 over
2019 – a remarkable improvement given the industry was essentially
grounded at the height of the pandemic."
"Later this month we will be fully operating under the new
Purolator agreement with two aircraft as announced last May. The
team is executing well on our recently announced new contracts and
we see additional opportunity."
"We're cautiously optimistic these positive developments
indicate the worst of the pandemic is behind us and that we're at
an important inflection point. The good work we've done throughout
this crisis provides a solid foundation that will deliver value to
our stakeholders. I'm very grateful to our employees for their
steadfast commitment to safety, the well-being of our customers,
company and one another," concluded Mr. Randell.
Liquidity
As of September 30, 2021, Chorus'
liquidity was $258.1 million
including cash of $223.2 million and
$34.9 million of available room on
its operating credit facility. Liquidity increased from the
second quarter of 2021 by $80.2
million primarily due to the issuance of the Series C
Debentures for net proceeds of $80.9
million ($29.8 million of
which is currently held in a restricted cash account established in
exchange for a conditional waiver of the 35% repayment obligation
under the Unsecured Revolving Credit Facility). The net
proceeds from the issuance will be used primarily to partially
redeem or repay existing indebtedness, including the 6.00%
Debentures which may be redeemed by Chorus on or after December 31, 2021.
Excluding the net proceeds from the Series C Debentures and the
related restricted cash, liquidity increased by $29.1 million over the second quarter of 2021
primarily due to:
- positive operating cash flows of $82.8
million; offset by
- scheduled debt repayments of $45.5
million; and
- additions to property and equipment of $9.0 million.
In October 2021, Chorus repaid
$30.0 million under its operating
credit facility and subsequently entered into a new three-year
committed operating credit facility on October 14, 2021. The facility provides Chorus
with a committed limit of $75.0
million plus a $25.0 million
uncommitted accordion.
Third Quarter Summary
In the third quarter of 2021, Chorus reported adjusted EBITDA of
$78.1 million, a decrease of
$7.8 million relative to the third
quarter of 2020.
The Regional Aircraft Leasing ('RAL') segment's adjusted EBITDA
was essentially unchanged from the prior quarter due to additional
aircraft earning lease revenue offset by lower lease revenue
attributable to negotiated amendments to certain lease agreements
including extensions and lower earnings due to a lower US dollar
exchange rate.
The Regional Aviation Services ('RAS') segment's adjusted EBITDA
decreased by $7.7 million. The third
quarter results were impacted by:
- a decrease in Fixed Margin of $2.4
million in accordance with the CPA;
- an increase in stock-based compensation of $1.5 million due to a change in the fair value of
the Total Return Swap offset by a decrease in the Share price;
- an increase in general administrative expenses attributable to
increased operations; and
- a decrease in incentive revenue of $0.6
million; offset by
- an increase in capitalization of major maintenance overhauls on
owned aircraft of $2.1 million;
- an increase in other revenue due to an increase in third-party
maintenance, repair and overhaul ('MRO') activity and part sales;
and
- an increase in aircraft leasing revenue under the CPA of
$0.3 million primarily due to six
incremental CRJ900s offset by the removal of the Dash 8-300 fleet
and lower earnings of $1.8 million
due to a lower US dollar exchange rate.
Adjusted net income was $15.3
million for the quarter, an increase of $4.4 million due to:
- a decrease of $5.7 million due to
decreased realized foreign exchange losses and increased unrealized
foreign exchange gains on working capital;
- a reduction in net interest costs of $2.8 million primarily related to the repayment
of certain aircraft financing; offset by interest on the Series B
Debentures and Series C Debentures;
- a decrease in depreciation expense of $2.1 million;
- a $1.3 million decrease in
adjusted income tax expense; and
- an increase in gain on property and equipment of $0.2 million; offset by
- a $7.8 million decrease in
adjusted EBITDA as previously described.
Net income decreased $34.5 million
over the prior period due to:
- an increase in net unrealized foreign exchange losses primarily
on long-term debt of $40.8
million;
- an increase in lease repossession costs of $2.8 million primarily related to aircraft
refurbishments; and
- a decrease in income tax recoveries on adjusted items of
$0.3 million; offset by
- a decrease in impairment provisions of $4.8 million in the RAL segment; and
- the previously noted increase in adjusted net income of
$4.4 million.
Year-to-date Summary
Chorus reported adjusted EBITDA of $239.0
million for 2021, a decrease of $26.5
million relative to the same prior year period.
The RAL segment's adjusted EBITDA decreased by $18.9 million primarily due to lower lease
revenue attributable to off-lease aircraft, negotiated amendments
to certain lease agreements including extensions, and lower
earnings due to a lower US dollar exchange rate partially offset by
additional aircraft earning lease revenue.
The RAS segment's adjusted EBITDA decreased by $7.6 million. The period-over-period results were
impacted by:
- a decrease in Fixed Margin of $7.1
million in accordance with the CPA;
- an increase in general administrative expenses attributable to
increased operations; and
- a decrease in capitalization of major maintenance overhauls on
owned aircraft of $0.9 million;
partially offset by;
- a decrease in stock-based compensation of $5.4 million due to a decrease in the Share price
inclusive of the change in fair value of the Total Return
Swap;
- an increase in aircraft leasing revenue under the CPA of
$3.0 million primarily due to
incremental CRJ900s, partially offset by the removal of the Dash
8-300 fleet and lower earnings of $7.4
million due to a lower US dollar exchange rate; and
- an increase in other revenue due to an increase in third-party
MRO activity, part sales and contract flying.
Adjusted net income was $42.4
million year-to-date, a decrease over 2020 of $13.9 million due to:
- a $26.5 million decrease in
adjusted EBITDA as previously described; and
- an increase in net interest costs of $4.5 million primarily related to the Series B
Debentures, the Series C Debentures, increased indebtedness under
credit facilities added in the second quarter of 2020 and
additional debt related to aircraft purchased since the second
quarter of 2020; offset by
- a decrease of $6.7 million in
realized foreign exchange losses and increased unrealized foreign
exchange gains on working capital;
- a decrease in depreciation expense of $6.1 million;
- an increase in gain on property and equipment of $2.3 million; and
- a $1.9 million decrease in
adjusted income tax expense.
Net income decreased by $63.0
million over the prior period due to:
- the previously noted decrease in adjusted net income of
$13.9 million;
- one-time restructuring costs of $80.7
million related to the 2021 CPA amendments;
- a change in net unrealized foreign exchange primarily on
long-term debt of $6.1 million;
and
- an increase in lease repossession costs of $4.5 million primarily related to aircraft
refurbishments; offset by
- a decrease in impairment provisions of $20.3 million in the RAL segment;
- an increase in income tax recoveries on adjusted items of
$18.0 million; and
- a decrease in employee separation program costs of $3.9 million, exclusive of the cost attributable
to the pilot early retirement program.
Consolidated Financial Analysis
(unaudited)
(expressed in
thousands of Canadian dollars)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
2021
|
2020
|
Change
|
Change
|
2021
|
2020
|
Change
|
Change
|
$
|
$
|
$
|
%
|
$
|
$
|
$
|
%
|
|
|
|
|
|
|
|
|
|
Operating
revenue
|
274,399
|
196,618
|
77,781
|
39.6
|
676,759
|
730,555
|
(53,796)
|
(7.4)
|
Operating
expenses
|
242,501
|
161,229
|
81,272
|
50.4
|
642,344
|
614,791
|
27,553
|
4.5
|
|
|
|
|
|
|
|
|
|
Operating
income
|
31,898
|
35,389
|
(3,491)
|
(9.9)
|
34,415
|
115,764
|
(81,349)
|
(70.3)
|
Net interest
expense
|
(22,895)
|
(25,706)
|
2,811
|
10.9
|
(71,768)
|
(67,281)
|
(4,487)
|
(6.7)
|
Foreign exchange
(loss) gain
|
(20,266)
|
14,824
|
(35,090)
|
(236.7)
|
(5,494)
|
(6,141)
|
647
|
10.5
|
Gain (loss) on
property and equipment
|
2
|
(202)
|
204
|
101.0
|
1,718
|
(576)
|
2,294
|
398.3
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income tax
|
(11,261)
|
24,305
|
(35,566)
|
(146.3)
|
(41,129)
|
41,766
|
(82,895)
|
(198.5)
|
Income tax (expense)
recovery
|
(2,821)
|
(3,847)
|
1,026
|
26.7
|
10,485
|
(9,437)
|
19,922
|
211.1
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
(14,082)
|
20,458
|
(34,540)
|
(168.8)
|
(30,644)
|
32,329
|
(62,973)
|
(194.8)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
78,081
|
85,859
|
(7,778)
|
(9.1)
|
238,977
|
265,482
|
(26,505)
|
(10.0)
|
Adjusted
EBT(1)
|
19,361
|
16,264
|
3,097
|
19.0
|
55,533
|
71,417
|
(15,884)
|
(22.2)
|
Adjusted net
income(1)
|
15,310
|
10,908
|
4,402
|
40.4
|
42,434
|
56,374
|
(13,940)
|
(24.7)
|
(1) These
are non-GAAP financial measures.
|
Outlook
(See cautionary statement regarding
forward-looking information below)
Chorus' business model does not directly expose it to the market
risks ordinarily faced by airlines; however, substantially all its
source revenue is derived from airline customers, through its CPA
and its leasing of aircraft to airline customers globally. Although
the COVID-19 pandemic continues to impact airlines, demand for
passenger air travel is starting to show signs of recovery.
Regional Aviation Services:
Jazz earns a Fixed Margin under the CPA based on the number of
Covered Aircraft, subject to a minimum of $65.6 million for 2021. The Fixed Margin does not
vary based on flight activity.
In the third quarter of 2021, Jazz operated at approximately 55%
of its third quarter 2019 (pre-COVID-19) flying
levels. Provided the spread of COVID-19 continues to subside,
Jazz's flying is expected to increase in the fourth quarter of 2021
to operate between approximately 75% to 80% of its fourth quarter
2019 (pre-COVID-19) flying levels. Jazz has recalled substantially
all its front-line and administrative employees as operations
increased.
Voyageur continues to perform overseas humanitarian flights and
cargo services, and the air ambulance operation in New Brunswick. Voyageur's contract flying,
charter sales and MRO services revenues in the second and third
quarters of 2021 improved over the first quarter of 2021. The
momentum is expected to be sustained with the impact of the four
new long-term contracts which will begin to positively impact
Voyageur's earnings throughout the fourth quarter of 2021 and
beyond. Voyageur represents less than 10% of Chorus' consolidated
revenue and net income.
Regional Aircraft Leasing:
In August 2021, Chorus Aviation
Capital ('CAC') executed long-term leases for six ATR72-600s to
Emerald Airlines of Dublin,
Ireland. The first aircraft was delivered in the third
quarter of 2021 and a second aircraft was delivered in October 2021, with the remaining deliveries
expected over the next 12 months. CAC also executed long-term
leases for two Dash 8-400s to Waltzing Matilda Aviation of
Boston, Massachusetts, doing
business as Connect Airlines. The first aircraft was delivered to
Waltzing Matilda Aviation in October
2021, and the second aircraft is scheduled to be delivered
before the end of 2021.
Since the onset of the COVID-19 pandemic, CAC has received
requests from substantially all its customers for some form of
temporary rent relief, as they cope with an unprecedented reduction
in demand for passenger air travel. In connection with the rent
relief arrangements, that include lease term extensions, the
repayment terms vary but typically coincide with the lease term
extensions. As of September 30, 2021, CAC's gross lease
receivable was $79.4 million (US
$62.3 million) (December 31, 2020 - $56.3
million (US $44.2 million)).
The gross lease receivable may increase to approximately
$85.0 million (US $65.0 million) by the end of 2021 due to
potential delays in payments.
As of September 30, 2021, the net
lease receivable, after an expected credit loss provision, was
$72.2 million (US $56.7 million) (December
31, 2020 - $48.3 million (US
$38.0 million)). CAC's lease deferral
receivable exposure is also partially mitigated by security
packages held of approximately $27.0
million (US $21.0 million).
Chorus collected approximately 77% of its lease revenue
recognized in the third quarter from its lessees. Consistent with
market norms, these leases are generally for a fixed term, contain
an absolute payment obligation on the part of the lessee, and
cannot be terminated early for convenience.
The following table provides the number of aircraft that earn
leasing revenue for completed transactions:
|
|
|
|
|
(unaudited)
|
|
Completed
Transactions
|
Customer
|
Aircraft
type
|
Q2 2021
|
Q3 2021
|
Total
|
|
|
|
|
|
Aeromexico(1)
|
E190
|
3
|
|
3
|
Air
Nostrum
|
CRJ1000
|
4
|
|
4
|
airBaltic
|
A220-300
|
5
|
|
5
|
Azul
Airlines(2)
|
ATR72-600/E195
|
5
|
|
5
|
Cobham
|
Dash 8-400
|
1
|
|
1
|
Croatia
Airlines
|
Dash 8-400
|
2
|
|
2
|
Emerald
Airlines
|
ATR72-600
|
—
|
1
|
1
|
Ethiopian
Airlines
|
Dash 8-400
|
5
|
|
5
|
Indigo
|
ATR72-600
|
8
|
|
8
|
Jambojet
|
Dash 8-400
|
3
|
|
3
|
KLM
Cityhopper
|
E190
|
1
|
|
1
|
Malindo
Air
|
ATR72-600
|
4
|
|
4
|
Philippine
Airlines(3)
|
Dash 8-400
|
3
|
|
3
|
Sky Alps
|
Dash 8-400
|
2
|
|
2
|
SpiceJet
|
Dash 8-400
|
5
|
|
5
|
Waltzing
Matilda
|
Dash 8-400
|
—
|
|
—
|
Wings Air
|
ATR72-600
|
1
|
|
1
|
|
|
|
|
|
Total Regional
Aircraft Leasing
|
|
52
|
1
|
53
|
|
|
|
|
|
Total Regional
Aviation Services(4)
|
Dash
8-400/CRJ900
|
48
|
—
|
48
|
|
|
|
|
|
Chorus Total
Aircraft
|
|
100
|
1
|
101
|
|
|
|
|
|
(1)
|
On November 4, 2021,
Aeromexico and CAC executed amended and restated lease agreements
in respect of all three E190s currently leased by CAC to
Aeromexico. These agreements, which remain subject to the
satisfaction of certain conditions precedent to effectiveness,
reflect revised commercial terms negotiated by the parties
following Aeromexico's voluntary petition for relief under Chapter
11 of the United States Bankruptcy Code on June 30,
2020.
|
(2)
|
Consists of three
ATR72-600s and two E195s.
|
(3)
|
On September 3, 2021,
Philippine Airlines filed a voluntary petition for relief under
Chapter 11 of the United States Bankruptcy Code in order to
implement a pre-arranged restructuring plan. Two aircraft are
expected to be retained under lease on revised negotiated terms and
one is expected to be returned by the end of January
2022.
|
(4)
|
RAS segment aircraft
breakdown: 34 Dash 8-400s and 14 CRJ900s.
|
Capital expenditures in 2021, including capitalized major
maintenance overhauls but excluding expenditures for the
acquisition of aircraft and the ESP, are expected to be between
$19.0 million and $29.0 million. Aircraft related acquisitions and
ESP capital expenditures in 2021 are expected to be between
$42.0 million and $50.0 million.(1)
(unaudited) (expressed in thousands of Canadian
dollars)
|
|
Actual
|
|
Nine months
ended
|
Year
ended
|
Planned
2021(1)
|
September 30,
2021
|
December 31,
2020
|
$
|
$
|
$
|
Capital expenditures,
excluding aircraft acquisitions and ESP
|
7,000 to
11,000
|
3,679
|
11,727
|
Capitalized major
maintenance overhauls(2)
|
12,000 to
18,000
|
9,835
|
7,529
|
Aircraft related
acquisitions and ESP
|
42,000 to
50,000
|
42,746
|
386,881
|
|
61,000 to
79,000
|
56,260
|
406,137
|
(1)
|
The 2021 plan
includes one CRJ900 in the RAS segment and reconfiguration costs on
off-lease and re-leased aircraft in the RAL segment which have been
converted using a foreign exchange rate of 1.2741, the
September 30, 2021 closing day rate from the Bank of
Canada.
|
(2)
|
The 2021 plan
includes between $7.0 million to $9.0 million of costs that are
expected to be included in Controllable Costs. Actual 2021 and 2020
costs include $2.9 million and $6.1 million, respectively which
were included in Controllable Costs.
|
With the current recovery in passenger demand for air travel and
further improvement expected in 2022, Chorus plans to invest
between $300.0 million and
$400.0 million in aircraft
acquisitions in 2022 financed through existing cash resources,
capital raises, secured debt financing or a combination
thereof.
Use of Defined Terms
Capitalized terms used but not defined in this news release have
the meanings given to them in the MD&A which is available on
Chorus' website (www.chorusaviation.com) and SEDAR
(www.sedar.com).
Investor Conference Call / Audio Webcast
Chorus will hold an analyst call at 9:00 a.m. ET on Thursday, November 11, 2021 to discuss the third
quarter 2021 financial results. The call may be accessed by dialing
1-888-664-6392. The call will be simultaneously audio webcast
via:
https://produceredition.webcasts.com/starthere.jsp?ei=1503034&tp_key=9e8734d005
This is a listen-in only audio webcast.
The conference call webcast will be archived on Chorus' website
at www.chorusaviation.com under Investors > Reports
> Executive Management Presentations. A playback of the
call can also be accessed until midnight
ET, November 18, 2021 by
dialing toll-free1-888-390-0541, and using passcode 152135#
1NON-GAAP FINANCIAL MEASURES
This news
release references several non-GAAP financial measures to
supplement the analysis of Chorus' results. Chorus uses
certain non-GAAP financial measures, described below, to evaluate
and assess performance. These non-GAAP measures are generally
numerical measures of a company's financial performance, financial
position, or cash flows, that include or exclude amounts from the
most comparable GAAP measure. As such, these measures are not
recognized for financial statement presentation under GAAP, do not
have a standardized meaning, and are therefore not likely to be
comparable to similar measures presented by other public
entities.
Adjusted Net Income, Adjusted EBT and Adjusted EBITDA
Chorus revised its definition of Adjusted net income in the
first quarter of 2021 to include the Dash 8-300 inventory
provision, the defined benefit pension curtailment resulting from
the pilot early retirement program and integration costs related to
the 2021 CPA Amendments to facilitate comparability of its
results.
Adjusted net income and Adjusted net income per Share are used
by Chorus to assess performance without the effects of unrealized
foreign exchange gains or losses on long-term debt and lease
liability related to aircraft, signing bonuses, employee separation
program costs, impairment provisions, lease repossession costs net
of security packages realized, Dash 8-300 inventory provision,
defined benefit pension curtailment, integration costs, strategic
advisory fees and the applicable tax expense (recovery). Chorus
manages its exposure to currency risk on such long-term debt by
billing the lease payments within the CPA in the underlying
currency (US dollars) related to the aircraft debt. These items are
excluded because they affect the comparability of Chorus' financial
results, period-over-period, and could potentially distort the
analysis of trends in business performance. Excluding these items
does not imply they are non-recurring due to ongoing currency
fluctuations between the Canadian and US dollar.
Chorus revised its definition of Adjusted EBT and Adjusted
EBITDA in the first quarter of 2021 to include the Dash 8-300
inventory provision, the defined benefit pension curtailment
resulting from the pilot early retirement program and integration
costs related to the 2021 CPA Amendments to facilitate
comparability of its results. Adjusted EBT and EBITDA should not be
used as an exclusive measure of cash flow because it does not
account for the impact of working capital growth, capital
expenditures, debt repayments and other sources and uses of cash,
which are disclosed in the statements of cash flows, forming part
of Chorus' financial statements.
EBT is defined as earnings before income tax. Adjusted EBT (EBT
before signing bonuses, employee separation program costs,
impairment provisions, lease repossession costs net of security
packages realized, Dash 8-300 inventory provision, defined benefit
pension curtailment, integration costs, strategic advisory fees and
other items such as foreign exchange gains and losses) is a
non-GAAP financial measure used by Chorus as a supplemental
financial measure of operational performance. Management believes
Adjusted EBT assists investors in comparing Chorus' performance by
excluding items, which it does not believe will re-occur over the
longer-term (such as signing bonuses, employee separation program
costs, impairment provisions, lease repossession costs net of
security packages realized, Dash 8-300 inventory provision, defined
benefit pension curtailment, integration costs and strategic
advisory fees) as well as items that are non-cash in nature such as
foreign exchange gains and losses.
EBITDA is defined as earnings before net interest expense,
income taxes, depreciation and amortization, and impairment and is
a non-GAAP financial measure that is used frequently by companies
in the aviation industry as a measure of performance. Adjusted
EBITDA (EBITDA before signing bonuses, employee separation program
costs, strategic advisory fees, impairment provisions, lease
repossession costs net of security packages realized, Dash 8-300
inventory provision, defined benefit pension curtailment and
integration costs, and other items such as foreign exchange gains
or losses) is a non-GAAP financial measure used by Chorus as a
supplemental financial measure of operational performance.
Management believes Adjusted EBITDA assists investors in comparing
Chorus' performance by excluding items, which it does not believe
will re-occur over the longer-term (such as signing bonuses,
employee separation program costs, impairment provisions, lease
repossession costs net of security packages realized, Dash 8-300
inventory provision, defined benefit pension curtailment,
integration costs and strategic advisory fees) as well as items
that are non-cash in nature such as foreign exchange gains and
losses. Adjusted EBITDA should not be used as an exclusive measure
of cash flow because it does not account for the impact of working
capital growth, capital expenditures, debt repayments and other
sources and uses of cash, which are disclosed in the statements of
cash flows, forming part of Chorus' financial statements.
Forward-Looking Information
This news release includes
'forward-looking information'. Forward-looking information is
identified by the use of terms and phrases such as "anticipate",
"believe", "could", "estimate", "expect", "intend", "may", "plan",
"potential", "predict", "project", "will", "would", and similar
terms and phrases, including references to assumptions. Such
information may involve but is not limited to comments with respect
to strategies, expectations, planned operations or future actions.
Forward-looking information relates to analyses and other
information that are based on forecasts of future results,
estimates of amounts not yet determinable and other uncertain
events. Forward-looking information, by its nature, is based on
assumptions, including those referenced below, and is subject to
important risks and uncertainties. Any forecasts or forward-looking
predictions or statements cannot be relied upon due to, among other
things, external events, changing market conditions and general
uncertainties of the business. Such statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to differ materially
from those indicated in the forward-looking information.
Examples of forward-looking information in this news release
include the discussion in the Outlook section, as well as
statements regarding expectations as to Chorus' future liquidity
and financial strength and contracted revenues, the recovery of
domestic air traffic in Canada and
around the world and Chorus' future growth and the completion of
pending or planned transactions (including the delivery of aircraft
under lease and the use of the proceeds from the issuance of the
Series C Debentures to partially redeem the 6.00% Debentures).
Actual results may differ materially from results indicated in
forward-looking information for a number of reasons, including a
prolonged duration of the COVID-19 outbreak and/or further
restrictive measures to contain its spread, the evolving impact of
COVID-19 on Chorus' contractual counterparties, changes in aviation
industry and general economic conditions, the continued payment (in
whole or in part) of amounts due under the CPA and/or aircraft
lease agreements with CAC's customers, the risk of disputes under
the CPA and/or aircraft lease agreements with CAC's customers,
Chorus' ability to pay its indebtedness and otherwise remain in
compliance with its debt covenants, the risk of cross defaults
under debt agreements and other significant contracts, the risk of
asset impairments and provisions for expected credit losses, a
failure to conclude transactions (including potential financings)
referenced in this news release and in Chorus' public disclosure
record available at www.sedar.com. The forward-looking statements
contained in this news release represent Chorus' expectations as of
the date of this news release (or as of the date they are otherwise
stated to be made) and are subject to change after such date.
Chorus disclaims any intention or obligation to update or revise
such statements to reflect new information, subsequent events or
otherwise, except as required by applicable securities laws.
Readers are cautioned that the foregoing factors and risks are not
exhaustive.
About Chorus Aviation Inc.
Chorus is a global provider of integrated regional aviation
solutions. Chorus' vision is to deliver regional aviation to
the world. Headquartered in Halifax, Nova
Scotia, Chorus is comprised of Chorus Aviation Capital a
leading, global lessor of regional aircraft, and Jazz Aviation and
Voyageur Aviation - companies that have long histories of safe
operations with excellent customer service. Chorus provides a full
suite of regional aviation support services that
encompasses every stage of an aircraft's lifecycle,
including aircraft acquisitions and leasing; aircraft
refurbishment, engineering, modification, repurposing and
preparation; contract flying; aircraft and component maintenance,
disassembly, and parts provisioning.
Chorus Class A Variable Voting Shares and Class B Voting Shares
trade on the Toronto Stock Exchange under the trading symbol 'CHR'.
Chorus 6.00% Senior Debentures, 5.75% Senior Unsecured Debentures,
and 6.00% Convertible Senior Unsecured Debentures trade on the
Toronto Stock Exchange under the trading symbols 'CHR.DB',
'CHR.DB.A', 'CHR.DB.B','CHR.DB.C' respectively.
www.chorusaviation.com
SOURCE Chorus Aviation Inc.