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NAV CANADA announces first quarter financial results

OTTAWA, Jan. 09, 2020 (GLOBE NEWSWIRE) -- NAV CANADA today released its financial results for the three months ended November 30, 2019.

In the first quarter of fiscal 2020, the Company saw air traffic growth of 0.2% on a year over year basis, as measured in weighted charging units. The Company’s revenue for the first quarter of fiscal 2020 was $364 million, compared to $357 million over the same period in fiscal 2019, and reflected revised customer services charges, whereby existing base rates increased on average by 0.8%, effective September 1, 2019, to recover the cost of domestic space-based surveillance data services.

During the first quarter of fiscal 2020, NAV CANADA was honoured to be among Canada’s Top 100 Employers for the fourth year in a row. The Company was also the proud winner of Air Traffic Management’s 2019 Runway and Terminal Area Award, recognized for being the first in the world to implement new international air traffic management standards in its Calgary airspace. The new approach standards in Calgary have served to reduce aircraft noise and reduce CO2 emissions by 4.1 million kilograms over the last year alone.

“Together, these awards show NAV CANADA is delivering on our mission to be a world leading air navigation service provider and a respected employer. It is thanks to the dedication of our employees that the Company continues to innovate: improving safety of air travel, enhancing airspace capacity and improving environmental sustainability.” said Neil Wilson, President and CEO.

Operating expenses for the first quarter of fiscal 2020 were $369 million as compared to $348 million over the same period in fiscal 2019, mainly due to higher compensation costs, including pension current service costs.

Net other income and expenses for the first quarter of fiscal 2020 was a net expense of $31 million as compared to a net expense of $17 million over the same period in fiscal 2019, primarily due to increased net interest expense relating to employee benefits and lower foreign exchange gains than the first quarter of fiscal 2019.

The Company had a net loss (before net movement in regulatory deferral accounts including rate stabilization) of $36 million in the first quarter of fiscal 2020 as compared to a net loss of $8 million for the first quarter of fiscal 2019.

The Company had positive free cash flow(1) of $6 million in the first quarter of fiscal 2020 primarily due to cash flows from operations that exceeded capital expenditures, ending the quarter with cash of $27 million.

The Company is subject to legislation that regulates its approach to setting charges. The timing of the recognition of certain revenue and expenses recovered through charges is recorded through movements in regulatory deferral accounts. The net movement in regulatory deferral accounts for the first quarter of fiscal 2020 was income of $39 million as compared to income of $6 million over the same period in fiscal 2019. This change in regulatory deferrals is primarily due to a $29 million net increase in regulatory deferral adjustments to reflect certain transactions in the periods in which they will be considered for rate setting.

The Company’s Financial Statements and Management's Discussion and Analysis for the three months ended November 30, 2019 can be found at: 

About NAV CANADA

NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.

The Company is internationally recognized for its safety record, and technology innovation. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

(1) Free cash flow is a non-GAAP financial measure used by the Company to enhance the overall understanding of its financial and operating performance. Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines free cash flow as cash generated from operations, less capital expenditures, investments in Aireon LLC and equity related investments and principal payment of lease liabilities. Management places importance on this indicator as it assists in measuring the impact of its investment program on the Company’s financial resources.

For further information, please contact:

Brian Boudreau
Manager, Media Relations
(613) 563-7303

Media Information Line: 1-888-562-8226

This press release contains certain forward-looking statements that are subject to important risks and uncertainties. Actual results may differ materially from the results indicated in these statements for a number of reasons. NAV CANADA disclaims any intention to update any forward-looking statements.