- Revenue of
$923.5 million up 13% vs.$816.3 million in prior year - Segment operating income(1) of
$154.9 million ($155.3 million before specific items(2)) up 37% vs.$113.0 million in prior year - EPS of
$0.37 vs.$0.29 in prior year - Free cash flow(3) of
$275.3 million up from$155.1 million in prior year - Order intake(4) of
$1,106.6 million for 1.20x book-to-sales(4) and$9.4 billion backlog(4) - Company pledged to become carbon neutral by summer 2020
Third quarter segment operating income was
"CAE had strong growth in the third quarter, with 13 percent higher revenue and 37 percent higher operating income, and we generated over
Summary of consolidated results | ||||||||
(amounts in millions, except operating margins and per share amounts) | Q3-2020 | Q3-2019 | Variance % | |||||
Revenue | $ | 923.5 | $ | 816.3 | 13% | |||
Segment operating income (SOI) | $ | 154.9 | $ | 113.0 | 37% | |||
Operating margins | % | 16.8 | % | 13.8 | ||||
SOI before specific items | $ | 155.3 | $ | 113.0 | 37% | |||
Operating margins before specific items | % | 16.8 | % | 13.8 | ||||
Net income | $ | 99.8 | $ | 79.5 | 26% | |||
Net income attributable to equity holders of the Company | $ | 97.7 | $ | 77.6 | 26% | |||
Earnings per share (EPS) | $ | 0.37 | $ | 0.29 | 28% | |||
Net income before specific items | $ | 98.0 | $ | 77.6 | 26% | |||
EPS before specific items | $ | 0.37 | $ | 0.29 | 28% | |||
Order intake | $ | 1,106.6 | $ | 882.1 | 25% | |||
Total backlog | $ | 9,434.3 | $ | 8,964.6 | 5% |
Civil Aviation Training Solutions (Civil)
Third quarter Civil revenue was
During the quarter, Civil signed training solutions contracts valued at
To address the growing global demand for new pilots, during the quarter, Civil launched new Multi-Crew Pilot License programs with easyJet and
The Civil book-to-sales ratio was 1.27x for the quarter and 1.44x for the last 12 months. The Civil backlog at the end of the quarter was a record
Summary of Civil Aviation Training Solutions results | ||||||||
(amounts in millions, except operating margins, SEU, FFSs deployed and FFS deliveries) | Q3-2020 | Q3-2019 | Variance % | |||||
Revenue | $ | 558.1 | $ | 458.4 | 22% | |||
Segment operating income | $ | 123.0 | $ | 87.2 | 41% | |||
Operating margins | % | 22.0 | % | 19.0 | ||||
SOI before specific items | $ | 123.4 | $ | 87.2 | 42% | |||
Operating margins before specific items | % | 22.1 | % | 19.0 | ||||
Order intake | $ | 706.2 | $ | 586.6 | 20% | |||
Total backlog | $ | 5,263.0 | $ | 4,566.1 | 15% | |||
Simulator equivalent unit (SEU)(9) | 252 | 219 | 15% | |||||
FFSs deployed(7) | 303 | 266 | 14% | |||||
FFS deliveries | 12 | 16 | (25%) |
Defence and Security (Defence)
Third quarter Defence revenue was
During the quarter, Defence booked orders for
The Defence book-to-sales ratio was 1.11x for the quarter and 0.88x for the last 12 months (excluding contract options). The Defence backlog, including options and CAE's interest in joint ventures, at the end of the quarter was
On
Summary of Defence and Security results | ||||||||
(amounts in millions, except operating margins) | Q3-2020 | Q3-2019 | Variance % | |||||
Revenue | $ | 332.4 | $ | 330.2 | 1% | |||
Segment operating income | $ | 31.3 | $ | 25.2 | 24% | |||
Operating margins | % | 9.4 | % | 7.6 | ||||
Order intake | $ | 367.4 | $ | 267.8 | 37% | |||
Total backlog | $ | 4,171.3 | $ | 4,398.5 | (5%) |
Healthcare
Third quarter Healthcare revenue was
Healthcare, together with the
Summary of Healthcare results | |||||||||
(amounts in millions, except operating margins) | Q3-2020 | Q3-2019 | Variance % | ||||||
Revenue | $ | 33.0 | $ | 27.7 | 19% | ||||
Segment operating income | $ | 0.6 | $ | 0.6 | —% | ||||
Operating margins | % | 1.8 | % | 2.2 |
Additional financial highlights
Free cash flow was
Income taxes this quarter were
Net finance expense this quarter was
Growth and maintenance capital expenditures(10) totaled
Net debt(11) at the end of the quarter was
Return on capital employed (ROCE)(13) was 11.4% this quarter compared to 11.7% in the third quarter last year, before specific items. Excluding the impacts of the adoption of IFRS 16, ROCE before specific items would have been 11.6% this quarter.
CAE will pay a dividend of
During the three months ended
Management outlook for fiscal year 2020
Management's outlook for CAE in fiscal year 2020, as updated
Corporate Social Responsibility
CAE creates significant value for customers, shareholders, and its employees. CAE products and services contribute to improvements in aviation safety, ensure defence forces are mission-ready, and help make healthcare safer-a noble purpose that is a source of pride for CAE's more than 10,000 employees worldwide. As the largest civil aviation training company in the world, and the only pure‑play aviation training company, it has an unwavering customer focus and commitment to innovation. Furthermore, CAE is committed to doing its share in the fight against climate change for the well-being of future generations. In
In support of CAE's local community of
To learn more about CAE's corporate sustainability roadmap and achievements, refer to CAE's FY19 Annual Activity and Corporate Social Responsibility Report.
IFRS 16 - Leases
Effective
Detailed information
Readers are strongly advised to view a more detailed discussion of our results by segment in the Management's Discussion and Analysis (MD&A) and CAE's consolidated financial statements which are posted on our website at www.cae.com/investors.
CAE's consolidated financial statements and MD&A for the quarter ended
Conference call Q3 FY2020
CAE is a global leader in training for the civil aviation, defence and security, and healthcare markets. Backed by a record of more than 70 years of industry firsts, we continue to help define global training standards with our innovative virtual-to-live training solutions to make flying safer, maintain defence force readiness and enhance patient safety. We have the broadest global presence in the industry, with over 10,000 employees, 160 sites and training locations in over 35 countries. Each year, we train more than 220,000 civil and defence crewmembers, including more than 135,000 pilots, and thousands of healthcare professionals worldwide.
Caution concerning limitations of summary earnings press release
This summary earnings press release contains limited information meant to assist the reader in assessing CAE's performance but it is not a suitable source of information for readers who are unfamiliar with CAE and is not in any way a substitute for the Company's financial statements, notes to the financial statements, and MD&A reports.
Caution concerning forward-looking statements
Certain statements made in this press release are forward-looking statements. These statements include, without limitation, statements relating to our fiscal 2020 financial guidance (including revenues, capital investment and margins) and other statements that are not historical facts. Forward-looking statements describe future expectations, plans, results or strategies and normally contain words like "believe", "expect", "anticipate", "plan", "intend", "continue", "estimate", "may", "will", "should", "strategy", "future" and similar expressions. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws and of the United States Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties associated with our business which may cause actual results in future periods to differ materially from results indicated in forward-looking statements. While these statements are based on management's expectations and assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that we believe are reasonable and appropriate in the circumstances, readers are cautioned not to place undue reliance on these forward-looking statements as there is a risk that they may not be accurate. The forward-looking statements contained in this press release describe our expectations as of
Material assumptions
A number of economic, market, operational and financial assumptions were made by CAE in preparing its forward-looking statements for fiscal 2020 and beyond contained in this news release, including, but not limited to certain economic and market assumptions including: modest economic growth and stable interest rates in fiscal 2020; a sustained level of competition in civil, defence and healthcare markets; no material financial, operational or competitive consequences of changes in regulations affecting our business; and a continued positive defence market.
Assumptions concerning our businesses
A number of assumptions concerning CAE's business were also made in the preparation of its forward-looking statements for fiscal 2020 and beyond contained in this news release, including, but not limited to factors including: maintenance of CAE's leading market share in civil simulator sales, pricing, product deliveries to customers and CAE's ability to increase market share in training.
The foregoing assumptions, although considered reasonable by CAE on
Material risks
Important risk factors that could cause our assumptions and estimates to be inaccurate and actual results or events to differ materially from those expressed in or implied by our forward-looking statements, including our fiscal 2020 financial guidance and management outlook, are set out in CAE's MD&A for the year ended
Non-GAAP and other financial measures
This press release includes non-GAAP and other financial measures. Non-GAAP measures are useful supplemental information but may not have a standardized meaning according to GAAP. These measures should not be confused with, or used as an alternative for, performance measures calculated according to GAAP. They should also not be used to compare with similar measures from other companies. Management believes that providing certain non-GAAP measures provides users with a better understanding of our results and trends and provides additional information on our financial and operating performance.
(1) Segment operating income (SOI) is a non-GAAP measure and is the sum of our key indicators of each segment's financial performance. Segment operating income gives us an indication of the profitability of each segment because it does not include the impact of any items not specifically related to the segment's performance. We calculate total segment operating income by taking the operating profit and excluding restructuring costs of major programs that do not arise from significant strategic transactions.
(2) Segment operating income before specific items further excludes restructuring costs, integration costs, acquisition costs and other gains and losses arising from significant strategic transactions. We track it because we believe it provides a better indication of our operating performance and makes it easier to compare across reporting periods.
(3) Free cash flow is a non-GAAP measure that shows us how much cash we have available to invest in growth opportunities, repay debt and meet ongoing financial obligations. We use it as an indicator of our financial strength and liquidity. We calculate it by taking the net cash generated by our continuing operating activities, subtracting maintenance capital expenditures, investment in other assets not related to growth and dividends paid and adding proceeds from the disposal of property, plant and equipment, dividends received from equity accounted investees and proceeds, net of payments, from equity accounted investees.
(4) Order Intake and Backlog
Order intake is a non-GAAP measure that represents the expected value of orders we have received:
- For the Civil Aviation Training Solutions segment, we consider an item part of our order intake when we have a legally binding commercial agreement with a client that includes enough detail about each party's obligations to form the basis for a contract. Additionally, expected future revenues from customers under short-term and long-term training contracts are included when these customers commit to pay us training fees, or when we reasonably expect the revenue to be generated;
- For the Defence and Security segment, we consider an item part of our order intake when we have a legally binding commercial agreement with a client that includes enough detail about each party's obligations to form the basis for a contract. Defence and Security contracts are usually executed over a long-term period but some of them must be renewed each year. For this segment, we only include a contract item in order intake when the customer has authorized the contract item and has received funding for it;
- For the Healthcare segment, order intake is typically converted into revenue within one year, therefore we assume that order intake is equal to revenue.
The book-to-sales ratio is the total orders divided by total revenue in a given period.
Total backlog is a non-GAAP measure that represents expected future revenues and includes obligated backlog, joint venture backlog and unfunded backlog and options:
- Obligated backlog represents the value of our order intake not yet executed and is calculated by adding the order intake of the current period to the balance of the obligated backlog at the end of the previous fiscal year, subtracting the revenue recognized in the current period and adding or subtracting backlog adjustments. If the amount of an order already recognized in a previous fiscal year is modified, the backlog is revised through adjustments;
- Joint venture backlog is obligated backlog that represents the expected value of our share of orders that our joint ventures have received but have not yet executed. Joint venture backlog is determined on the same basis as obligated backlog described above;
- Unfunded backlog represents firm Defence and Security orders we have received but have not yet executed and for which funding authorization has not yet been obtained. Options are included in backlog when there is a high probability of being exercised, but indefinite-delivery/indefinite-quantity contracts are excluded. When an option is exercised, it is considered order intake in that period and it is removed from unfunded backlog and options.
(5) Net income before specific items is a non-GAAP measure we use as an alternate view of our operating results. We calculate it by taking our net income attributable to equity holders of the Company from continuing operations and excluding restructuring costs, integration costs, acquisition costs and other gains and losses arising from significant strategic transactions as well as significant one-time tax items. We track it because we believe it provides a better indication of our operating performance and makes it easier to compare across reporting periods.
(6) Earnings per share (EPS) before specific items is a non-GAAP measure calculated by excluding restructuring costs, integration costs, acquisition costs and other gains and losses arising from significant strategic transactions as well as significant one-time tax items from the diluted earnings per share from continuing operations attributable to equity holders of the Company. The effect per share is obtained by dividing these restructuring costs, integration costs, acquisition costs and other gains, net of tax, as well as one-time tax items by the average number of diluted shares. We track it because we believe it provides a better indication of our operating performance on a per share basis and makes it easier to compare across reporting periods.
(7) A full-flight simulator (FFS) is a full size replica of a specific make, model and series of an aircraft cockpit, including a motion system. In our count of FFSs deployed in the network, we generally only include FFSs that are of the highest fidelity and do not include any fixed based training devices, or other lower-level devices, as these are typically used in addition to FFSs in the same approved training programs.
(8) Utilization rate is one of the operating measures we use to assess the performance of our Civil simulator training network. While utilization rate does not perfectly correlate to revenue recognized, we track it, together with other measures, because we believe it is an indicator of our operating performance. We calculate it by taking the number of training hours sold on our simulators during the period divided by the practical training capacity available for the same period.
(9) Simulator equivalent unit (SEU) is an operating measure we use to show the total average number of FFSs available to generate earnings during the period.
(10) Maintenance capital expenditure is a non-GAAP measure we use to calculate the investment needed to sustain the current level of economic activity. Growth capital expenditure is a non-GAAP measure we use to calculate the investment needed to increase the current level of economic activity.
(11) Net debt is a non-GAAP measure we use to monitor how much debt we have after taking into account cash and cash equivalents. We use it as an indicator of our overall financial position, and calculate it by taking our total long-term debt, including the current portion of long-term debt, and subtracting cash and cash equivalents.
(12) Net debt-to-capital is calculated as net debt divided by the sum of total equity plus net debt.
(13) Return on capital employed (ROCE) is a non-GAAP measure we use to evaluate the profitability of our invested capital. We calculate this ratio over a rolling four-quarter period by taking net income attributable to equity holders of the Company excluding net finance expense, after tax, divided by the average capital employed.
For non-GAAP and other financial measures monitored by CAE, please refer to CAE's MD&A filed with the Canadian Securities Administrators available on our website (www.cae.com) and on SEDAR (www.sedar.com).
Consolidated Statement of Financial Position | ||||
(Unaudited) | ||||
(amounts in millions of Canadian dollars) | 2019 | 2019 | ||
Assets | ||||
Cash and cash equivalents | $ | 278.5 | $ | 446.1 |
Accounts receivable | 497.9 | 496.0 | ||
Contract assets | 505.2 | 523.5 | ||
Inventories | 607.4 | 537.0 | ||
Prepayments | 54.1 | 57.4 | ||
Income taxes recoverable | 55.6 | 33.6 | ||
Derivative financial assets | 25.3 | 19.3 | ||
Total current assets | $ | 2,024.0 | $ | 2,112.9 |
Property, plant and equipment | 1,991.3 | 2,149.3 | ||
Right-of-use assets | 388.6 | — | ||
Intangible assets | 2,014.4 | 2,027.9 | ||
Investment in equity accounted investees | 431.4 | 312.1 | ||
Deferred tax assets | 82.3 | 71.0 | ||
Derivative financial assets | 11.4 | 12.8 | ||
Other assets | 501.2 | 479.5 | ||
Total assets | $ | 7,444.6 | $ | 7,165.5 |
Liabilities and equity | ||||
Accounts payable and accrued liabilities | $ | 839.5 | $ | 883.8 |
Provisions | 24.8 | 28.7 | ||
Income taxes payable | 23.9 | 25.7 | ||
Contract liabilities | 715.3 | 670.2 | ||
Current portion of long-term debt | 123.1 | 264.1 | ||
Derivative financial liabilities | 7.9 | 17.0 | ||
Total current liabilities | $ | 1,734.5 | $ | 1,889.5 |
Provisions | 27.9 | 36.3 | ||
Long-term debt | 2,462.0 | 2,064.2 | ||
Royalty obligations | 132.8 | 136.2 | ||
Employee benefits obligations | 251.3 | 212.6 | ||
Deferred gains and other liabilities | 241.6 | 267.0 | ||
Deferred tax liabilities | 147.1 | 147.0 | ||
Derivative financial liabilities | 1.5 | 2.7 | ||
Total liabilities | $ | 4,998.7 | $ | 4,755.5 |
Equity | ||||
Share capital | $ | 675.8 | $ | 649.6 |
Contributed surplus | 26.7 | 24.8 | ||
Accumulated other comprehensive income | 135.1 | 199.0 | ||
Retained earnings | 1,524.8 | 1,457.9 | ||
Equity attributable to equity holders of the Company | $ | 2,362.4 | $ | 2,331.3 |
Non-controlling interests | 83.5 | 78.7 | ||
Total equity | $ | 2,445.9 | $ | 2,410.0 |
Total liabilities and equity | $ | 7,444.6 | $ | 7,165.5 |
Consolidated Income Statement | ||||||||
(Unaudited) | Three months ended | Nine months ended | ||||||
(amounts in millions of Canadian dollars, except per share amounts) | 2019 | 2018 | 2019 | 2018 | ||||
Revenue | $ | 923.5 | $ | 816.3 | $ | 2,645.9 | $ | 2,282.1 |
Cost of sales | 632.0 | 583.0 | 1,874.0 | 1,628.6 | ||||
Gross profit | $ | 291.5 | $ | 233.3 | $ | 771.9 | $ | 653.5 |
Research and development expenses | 33.6 | 31.1 | 101.3 | 91.5 | ||||
Selling, general and administrative expenses | 118.3 | 101.4 | 329.6 | 292.0 | ||||
Other gains – net | (3.5) | (2.5) | (15.3) | (17.1) | ||||
After tax share in profit of equity accounted investees | (11.8) | (9.7) | (34.3) | (23.1) | ||||
Operating profit | $ | 154.9 | $ | 113.0 | $ | 390.6 | $ | 310.2 |
Finance expense – net | 36.7 | 19.3 | 105.9 | 55.2 | ||||
Earnings before income taxes | $ | 118.2 | $ | 93.7 | $ | 284.7 | $ | 255.0 |
Income tax expense | 18.4 | 14.2 | 46.9 | 40.3 | ||||
Net income | $ | 99.8 | $ | 79.5 | $ | 237.8 | $ | 214.7 |
Attributable to: | ||||||||
Equity holders of the Company | $ | 97.7 | $ | 77.6 | $ | 233.0 | $ | 207.7 |
Non-controlling interests | 2.1 | 1.9 | 4.8 | 7.0 | ||||
Earnings per share attributable to equity holders of the Company | ||||||||
Basic | $ | 0.37 | $ | 0.29 | $ | 0.88 | $ | 0.78 |
Diluted | $ | 0.37 | $ | 0.29 | $ | 0.87 | $ | 0.77 |
Consolidated Statement of Comprehensive Income | ||||||||
(Unaudited) | Three months ended | Nine months ended | ||||||
(amounts in millions of Canadian dollars) | 2019 | 2018 | 2019 | 2018 | ||||
Net income | $ | 99.8 | $ | 79.5 | $ | 237.8 | $ | 214.7 |
Items that may be reclassified to net income | ||||||||
Foreign currency differences on translation of foreign operations | $ | (10.2) | $ | 137.9 | $ | (98.2) | $ | 51.8 |
Reclassification to income of foreign currency differences | (8.0) | (2.0) | (19.9) | (17.9) | ||||
Net gain (loss) on cash flow hedges | 5.9 | (27.0) | 15.4 | (22.7) | ||||
Reclassification to income of (losses) gains on cash flow hedges | (0.1) | 0.1 | (3.2) | 0.7 | ||||
Net gain (loss) on hedges of net investment in foreign operations | 22.7 | (26.3) | 32.6 | (27.7) | ||||
Income taxes | (2.0) | 3.9 | 7.8 | 8.6 | ||||
$ | 8.3 | $ | 86.6 | $ | (65.5) | $ | (7.2) | |
Items that will never be reclassified to net income | ||||||||
Remeasurement of defined benefit pension plan obligations | $ | 30.9 | $ | (14.6) | $ | (29.5) | $ | 18.5 |
Net gain on financial assets carried at fair value through OCI | 0.1 | 0.1 | — | — | ||||
Income taxes | (8.2) | 3.9 | 7.8 | (4.9) | ||||
$ | 22.8 | $ | (10.6) | $ | (21.7) | $ | 13.6 | |
Other comprehensive income (loss) | $ | 31.1 | $ | 76.0 | $ | (87.2) | $ | 6.4 |
Total comprehensive income | $ | 130.9 | $ | 155.5 | $ | 150.6 | $ | 221.1 |
Attributable to: | ||||||||
Equity holders of the Company | $ | 129.0 | $ | 150.6 | $ | 147.4 | $ | 209.9 |
Non-controlling interests | 1.9 | 4.9 | 3.2 | 11.2 |
Consolidated Statement of Changes in Equity | |||||||||||||||||||||
(Unaudited) | Attributable to equity holders of the Company | ||||||||||||||||||||
Nine months ended (amounts in millions of Canadian dollars, except number of shares) |
Number of shares | Common shares Stated value |
Contributed surplus | Accumulated other comprehensive income |
Retained earnings |
Total |
Non-controlling interests |
Total equity | |||||||||||||
Balances, beginning of period | 265,447,603 | $ | 649.6 | $ | 24.8 | $ | 199.0 | $ | 1,457.9 | $ | 2,331.3 | $ | 78.7 | $ | 2,410.0 | ||||||
Impact of adopting IFRS 16 | — | — | — | — | (27.5) | (27.5) | — | (27.5) | |||||||||||||
Balances, | 265,447,603 | $ | 649.6 | $ | 24.8 | $ | 199.0 | $ | 1,430.4 | $ | 2,303.8 | $ | 78.7 | $ | 2,382.5 | ||||||
Net income | — | $ | — | $ | — | $ | — | $ | 233.0 | $ | 233.0 | $ | 4.8 | $ | 237.8 | ||||||
Other comprehensive loss | — | — | — | (63.9) | (21.7) | (85.6) | (1.6) | (87.2) | |||||||||||||
Total comprehensive (loss) income | — | $ | — | $ | — | $ | (63.9) | $ | 211.3 | $ | 147.4 | $ | 3.2 | $ | 150.6 | ||||||
Stock options exercised | 1,317,280 | 25.7 | (3.2) | — | — | 22.5 | — | 22.5 | |||||||||||||
Optional cash purchase of shares | 1,323 | — | — | — | — | — | — | — | |||||||||||||
Common shares repurchased and cancelled | (978,431) | (2.4) | — | — | (30.4) | (32.8) | — | (32.8) | |||||||||||||
Share-based compensation expense | — | — | 5.1 | — | — | 5.1 | — | 5.1 | |||||||||||||
Transactions with non-controlling interests | — | — | — | — | (1.4) | (1.4) | 1.6 | 0.2 | |||||||||||||
Stock dividends | 85,887 | 2.9 | — | — | (2.9) | — | — | — | |||||||||||||
Cash dividends | — | — | — | — | (82.2) | (82.2) | — | (82.2) | |||||||||||||
Balances, end of period | 265,873,662 | $ | 675.8 | $ | 26.7 | $ | 135.1 | $ | 1,524.8 | $ | 2,362.4 | $ | 83.5 | $ | 2,445.9 | ||||||
Attributable to equity holders of the Company | |||||||||||||||||||||
Nine months ended (amounts in millions of Canadian dollars, except number of shares) |
Number of shares | Common shares Stated value |
Contributed surplus | Accumulated other comprehensive income |
Retained earnings |
Total |
Non-controlling interests |
Total equity | |||||||||||||
Balances, beginning of period | 267,738,530 | $ | 633.2 | $ | 21.3 | $ | 260.3 | $ | 1,314.3 | $ | 2,229.1 | $ | 68.4 | $ | 2,297.5 | ||||||
Net income | — | $ | — | $ | — | $ | — | $ | 207.7 | $ | 207.7 | $ | 7.0 | $ | 214.7 | ||||||
Other comprehensive (loss) income | — | — | — | (11.4) | 13.6 | 2.2 | 4.2 | 6.4 | |||||||||||||
Total comprehensive (loss) income | — | $ | — | $ | — | $ | (11.4) | $ | 221.3 | $ | 209.9 | $ | 11.2 | $ | 221.1 | ||||||
Stock options exercised | 771,825 | 13.3 | (1.8) | — | — | 11.5 | — | 11.5 | |||||||||||||
Optional cash purchase of shares | 1,873 | 0.1 | — | — | — | 0.1 | — | 0.1 | |||||||||||||
Common shares repurchased and cancelled | (3,610,100) | (8.7) | — | — | (84.1) | (92.8) | — | (92.8) | |||||||||||||
Share-based compensation expense | — | — | 5.7 | — | — | 5.7 | — | 5.7 | |||||||||||||
Stock dividends | 113,600 | 3.0 | — | — | (3.0) | — | — | — | |||||||||||||
Cash dividends | — | — | — | — | (74.3) | (74.3) | — | (74.3) | |||||||||||||
Balances, end of period | 265,015,728 | $ | 640.9 | $ | 25.2 | $ | 248.9 | $ | 1,374.2 | $ | 2,289.2 | $ | 79.6 | $ | 2,368.8 |
Consolidated Statement of Cash Flows | ||||
(Unaudited) | ||||
Nine months ended | ||||
(amounts in millions of Canadian dollars) | 2019 | 2018 | ||
Operating activities | ||||
Net income | $ | 237.8 | $ | 214.7 |
Adjustments for: | ||||
Depreciation and amortization | 226.9 | 153.7 | ||
After tax share in profit of equity accounted investees | (34.3) | (23.1) | ||
Deferred income taxes | 6.9 | 24.9 | ||
Investment tax credits | 6.3 | (8.0) | ||
Share-based compensation | 13.3 | 3.4 | ||
Defined benefit pension plans | 12.5 | 12.4 | ||
Other non-current liabilities | (32.0) | (22.1) | ||
Derivative financial assets and liabilities – net | (7.4) | 4.4 | ||
Other | 2.1 | 3.5 | ||
Changes in non-cash working capital | (133.3) | 0.3 | ||
Net cash provided by operating activities | $ | 298.8 | $ | 364.1 |
Investing activities | ||||
Business combinations, net of cash acquired | $ | (10.1) | $ | (33.5) |
Acquisition of investment in equity accounted investees | (113.5) | — | ||
Addition of assets through the monetization of royalties | — | (202.7) | ||
Additions to property, plant and equipment | (199.4) | (155.6) | ||
Proceeds from disposal of property, plant and equipment | 0.4 | 2.5 | ||
Additions to intangible assets | (69.7) | (62.1) | ||
Net payments to equity accounted investees | (10.3) | (27.0) | ||
Dividends received from equity accounted investees | 22.6 | 7.1 | ||
Other | 0.8 | 2.9 | ||
Net cash used in investing activities | $ | (379.2) | $ | (468.4) |
Financing activities | ||||
Net proceeds from borrowing under revolving unsecured credit facilities | $ | 135.3 | $ | — |
Proceeds from long-term debt | 161.4 | 84.3 | ||
Repayment of long-term debt | (229.6) | (66.6) | ||
Repayment of lease liabilities | (64.5) | (8.3) | ||
Dividends paid | (82.2) | (74.3) | ||
Issuance of common shares | 22.5 | 11.6 | ||
Repurchase of common shares | (32.8) | (92.8) | ||
Changes in restricted cash | 15.7 | — | ||
Other | (1.3) | — | ||
Net cash used in financing activities | $ | (75.5) | $ | (146.1) |
Effect of foreign exchange rate changes on cash | ||||
and cash equivalents | $ | (11.7) | $ | 0.6 |
Net decrease in cash and cash equivalents | $ | (167.6) | $ | (249.8) |
Cash and cash equivalents, beginning of period | 446.1 | 611.5 | ||
Cash and cash equivalents, end of period | $ | 278.5 | $ | 361.7 |
Supplemental information: | ||||
Interest paid | $ | 75.5 | $ | 38.0 |
Interest received | 7.8 | 10.5 | ||
Income taxes paid | 25.5 | 23.4 |
View original content:http://www.prnewswire.com/news-releases/cae-reports-third-quarter-fiscal-2020-results-301000931.html
SOURCE
© Canada Newswire, source