TORONTO -Magellan Aerospace Corporation ('Magellan' or the 'Corporation') released its financial results for the first quarter of 2020. All amounts are expressed in Canadian dollars unless otherwise indicated. The results are summarized as follows:

Three month period ended

March 31

Expressed in thousands of Canadian dollars, except per share amounts

			2020	2019	Change
Revenues		238,813	269,884	(11.5%)
Gross Profit		36,772	42,821	(14.1%)
Net Income		20,074	20,409	(1.6%)
Net Income per Share	0.34	0.35	(2.9%)
EBITDA		41,543	40,493	2.6%
EBITDA per Share	0.71	0.70	1.4%

This news release contains certain forward-looking statements that reflect the current views and/or expectations of the Corporation with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions, which may cause actual results to be materially different from those expressed or implied. The Corporation assumes no future obligation to update these forward-looking statements except as required by law.

This news release presents certain non-IFRS financial measures to assist readers in understanding the Corporation's performance. Non-IFRS financial measures are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles ('GAAP'). Throughout this news release, reference is made to EBITDA (defined as net income before interest, income taxes, depreciation and amortization), which the Corporation considers to be an indicative measure of operating performance and a metric to evaluate profitability. EBITDA is not a generally accepted earnings measure and should not be considered as an alternative to net income (loss) or cash flows as determined in accordance with IFRS. As there is no standardized method of calculating this measure, the Corporation's EBITDA may not be directly comparable with similarly titled measures used by other companies.

1. Overview

A summary of Magellan's business and significant updates

Magellan is a diversified supplier of components to the aerospace industry. Through its wholly owned subsidiaries, Magellan designs, engineers, and manufactures aeroengine and aerostructure components for aerospace markets, advanced products for defence and space markets, and complementary specialty products. The Corporation also supports the aftermarket through supply of spare parts as well as performing repair and overhaul services.

Magellan operates substantially all of its activities in one reportable segment, Aerospace, which is viewed as one segment by the chief operating decision-makers for the purpose of resource allocations, assessing performance and strategic planning. The Aerospace segment includes the design, development, manufacture, repair and overhaul, and sale of systems and components for defence and civil aviation.

Business Update

Magellan announced on April 16, 2020 that it would provide Black Brant sounding rocket motors to The German Aerospace Center (Deutsches Zentrum fur Luft- und Raumfahrt e.V. or 'DLR') that is estimated to generate revenue of up to $9.4 million over the term of the agreement. Under the terms of this agreement, the DLR will purchase Black Brant rocket motors over a three-year period and may exercise options to purchase certain additional hardware items from Magellan's facility in Winnipeg, Manitoba.

For additional information, please refer to the 'Management's Discussion and Analysis' section of the Corporation's 2019 Annual Report available on www.sedar.com.

2. Results of Operations: See detailed results at:

https://magellan.aero/wp-content/uploads/Q1%202020%20Earnings%20Release.pdf

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