News
Discovery Air sees mixed results in Q4
April 24, 2013, Yellowknife - Discovery Air Inc. has reported a wider
fourth-quarter loss and sharply reduced profits for all of fiscal 2013
even as the specialty air services company enjoyed higher revenue in
both periods.
April 24, 2013 By Carey Fredericks
Discovery said after markets closed Tuesday that its net loss for
the three months ended Jan. 31 was $10.9 million or 75 cents per diluted
share. That compared with a loss of $9.8 million or 67 cents per
diluted share in the same fiscal 2012 quarter.
Revenue grew 30 per cent to $37.3 million from $28.7 million.
For
the full year, Discovery said its profit shrunk 95 per cent to $596,000
or four cents per diluted share from $11.7 million or 72 cents per
diluted share in fiscal 2012.
Revenue for the year was up 20 per
cent at $229.4 million from $191.7 million, reflecting a 17 per cent
increase in the company's aviation segment and a 39 per cent increase at
its corporate support and other segment.
However, fiscal 2013 earnings before interest, taxes, depreciation and amortization decreased seven per cent to $41.4 million.
"Decreased
margins were attributable to lower than expected utilization on new
aircraft, higher fixed-wing costs and higher infrastructure and
administrative costs to support expanded operations,'' the company said
in its earnings release.
The EBITDA loss for the quarter
increased to $6.8 million, compared with a $6.2-million loss in the same
quarter last year reflecting the impact of unfavourable weather
conditions and higher operating costs from expanded operations.
Recently
appointed president and CEO Jacob (Koby) Shavit noted that four of the
company's six business performed well, but were hampered by operating
challenges in the fixed-wing business and in the maintenance, repair and
overhaul business in the first six months of the year.
"The
fourth quarter, which is our seasonal low period, was also negatively
impacted by poor weather conditions,'' Shavit said, adding that
"overall, the business generated strong top line results with lower than
expected margins in fiscal 2013.''
"Management is focused on
fixing the operational issues in our fixed-wing business and bringing
our technical services business to the point where it can deliver on its
strategic and profit contribution objectives,'' he said.
Discovery,
with more than more than 150 helicopters and fixed-wing aircraft,
provides airborne training to the Canadian military as well as airborne
fire services, air charter services and logistics support along with a
range of maintenance, engineering and certification services.
