Q3 2021 Chorus Aviation Inc. Financial Statements

Unaudited Consolidated Statements of Financial Position

(expressed in thousands of Canadian dollars)
		As at
	September 30,	December 31,
	2021	2020
	$	$
Assets
Current assets
Cash	223,195	165,717
Accounts receivable - trade and other (note 16)	107,453	109,403
Inventories	81,838	81,190
Prepaid expenses and deposits	10,081	11,022
Current portion of finance lease receivables	2,442	2,283
Income tax receivable	461	8,952
	425,470	378,567
Restricted cash (note 15)	70,261	38,493
Finance lease receivables	4,310	6,173
Property and equipment (note 6)	2,638,170	2,771,994
Intangibles	1,681	1,681
Goodwill	7,150	7,150
Deferred income tax asset (note 9)	5,279	2,152
Other long-term assets (note 16)	173,321	131,476
	3,325,642	3,337,686
Liabilities
Current liabilities
Accounts payable and accrued liabilities	210,273	157,596
Current portion of lease liabilities	3,867	3,613
Current portion of long-term incentive plan	1,042	2,220
Current portion of long-term debt (note 8)	232,991	216,796
Income tax payable	1,384	130
	449,557	380,355
Lease liabilities	7,272	8,372
Long-term debt (note 8)	1,846,493	1,965,810
Deferred income tax liability (note 9)	194,061	209,815
Other long-term liabilities	142,487	131,991
	2,639,870	2,696,343
Equity	685,772	641,343
	3,325,642	3,337,686

Contingencies (note 13)

Economic dependence (note 14)

Subsequent events (note 17)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Unaudited Consolidated Statements of Changes in Equity

(expressed in thousands of Canadian dollars)

						Equity
						component
			Exchange			of
			differences			convertible
			on foreign	Contributed		units/
	Capital	Deficit	operations	surplus	Warrants	debentures	Total
	$	$	$	$	$	$	$
Balance - December 31, 2019	281,849	(716,036)	(3,633)	1,039,832	-	2,981	604,993
Net income for the period	-	32,329	-	-	-	-	32,329
Other comprehensive (loss) income for the
period (net of tax)	-	(8,719)	13,535	-	-	-	4,816
Comprehensive income for the period	-	23,610	13,535	-	-	-	37,145
Dividends	-	(19,520)	-	-	-	-	(19,520)
Dividend reinvestment plan	6,626	713	-	-	-	-	7,339
Balance - September 30, 2020	288,475	(711,233)	9,902	1,039,832	-	2,981	629,957
Net income for the period	-	9,157	-	-	-	-	9,157
Other comprehensive income (loss) for the	-	17,701	(15,472)	-	-	-	2,229
period (net of tax)
Comprehensive income (loss) for the period	-	26,858	(15,472)	-	-	-	11,386
Balance - December 31, 2020	288,475	(684,375)	(5,570)	1,039,832	-	2,981	641,343
Net loss for the period	-	(30,644)	-	-	-	-	(30,644)
Other comprehensive (loss) income for the
period (net of tax)	-	(1,179)	3,920	-	-	-	2,741
Comprehensive (loss) income for the period	-	(31,823)	3,920	-	-	-	(27,903)
Issuance of shares, net of transaction costs and
related tax	68,135	-	-	-	-	-	68,135
Issuance of convertible debentures, net of
transaction costs	-	-	-	-	-	2,683	2,683
Warrants issued, net of transaction costs	-	-	-	-	1,514	-	1,514
Balance - September 30, 2021	356,610	(716,198)	(1,650)	1,039,832	1,514	5,664	685,772

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Unaudited Consolidated Statements of (Loss) Income

For the three and nine-month periods ended September 30, 2021 and 2020

(expressed in thousands of Canadian dollars, except earnings per share)

	Three months ended	Nine months ended
	September 30,	September 30,
	2021	2020	2021	2020
	$	$	$	$
Operating revenue (note 14)	274,399	196,618	676,759	730,555
Operating expenses (note 14)
Salaries, wages and benefits	94,360	53,120	258,978	243,300
Depreciation, amortization and impairment	42,680	49,648	149,918	142,646
Aircraft maintenance materials, supplies and
services	27,642	17,602	71,913	79,201
Airport and navigation fees	36,903	13,214	62,160	55,964
Terminal handling services	2,494	1,529	4,690	7,859
Other	38,422	26,116	94,685	85,821
	242,501	161,229	642,344	614,791
Operating income	31,898	35,389	34,415	115,764
Non-operating (expenses) income
Interest revenue	197	151	612	860
Interest expense	(23,092)	(25,857)	(72,380)	(68,141)
Gain (loss) on disposal of property and equipment	2	(202)	1,718	(576)
Foreign exchange (loss) gain	(20,266)	14,824	(5,494)	(6,141)
	(43,159)	(11,084)	(75,544)	(73,998)
(Loss) income before income taxes	(11,261)	24,305	(41,129)	41,766
Income tax (expense) recovery (note 9)
Current income tax	(1,304)	(1,917)	(5,468)	(4,986)
Deferred income tax	(1,517)	(1,930)	15,953	(4,451)
	(2,821)	(3,847)	10,485	(9,437)
Net (loss) income	(14,082)	20,458	(30,644)	32,329
(Loss) income per share, basic	(0.08)	0.13	(0.18)	0.20
(Loss) income per share, diluted	(0.08)	0.12	(0.18)	0.20

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Unaudited Consolidated Statements of Comprehensive Income (Loss)

For the three and nine-month periods ended September 30, 2021 and 2020

(expressed in thousands of Canadian dollars)

Three months ended	Nine months ended
September 30,	September 30,
2021	2020	2021	2020
$	$	$	$

Net (loss) income	(14,082)	20,458	(30,644)	32,329
Other comprehensive income (loss)
Items that will not be subsequently reclassified to the
statements of income
Actuarial gain (loss) on employee benefit liabilities,
net of tax expense (recovery) of $1,536 and
($2,298) (2020 - ($653) and $469)	4,203	(1,766)	(6,202)	1,257
Items that will be subsequently reclassified to the
statements of income
Change in fair value of financial assets and
liabilities, net of tax expense (recovery) of
$109 and $360 (2020 - $380 and ($805))	613	565	5,023	(9,976)
Exchange differences on translation of foreign
operations (note 12)	13,589	(6,239)	3,920	13,535
Comprehensive income (loss)	4,323	13,018	(27,903)	37,145

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.