The following is a summary of the Chorus Aviation Inc. (CHRRF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Chorus Aviation reported an adjusted EBITDA of $54 million for Q3 2024 with a year-to-date total of $159 million.
Free cash flow stood at $32 million for the quarter, showing robust operating cash flows.
The leverage ratio improved from 3.3 to 3.0 due to long-term debt repayments of $94 million.Adjusted earnings per share from continuing operations were $0.06, with a pro forma adjusted earnings per share of $0.08 for the quarter, improving to $0.25 for the nine months ending September 30, 2024.
Pro forma financial figures reflect significant financial flexibility and improved free cash flow post the sale of the RAL segment.
Business Progress:
Chorus is finalizing the sale of the Regional Aircraft Leasing (RAL) segment, expected to close by the end of 2024.
Renewed six Q400 CPA aircraft leases with Air Canada extending to 2026, supporting future revenue.
Added capacity for pilot training through Cygnet Aviation, reflecting growth in human capital and operational capabilities.
Voyageur has expanded its parts sales business and defense-related contracts, contributing to a revenue increase and operational enhancement.
Opportunities:
The completion of the RAL segment sale will enable a focus on strengthening share price and shareholder returns.
Continued development in pilot recruitment and training at Cygnet Aviation introduces broader career opportunities and flexibility for pilots, enhancing Chorus's strategic human capital growth.
Risks:
Projections indicate continued reliance on the Regional Aviation Services segment post-RAL segment sale, implying potential exposure to market risks associated with this sector.
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
