Transat A.T. posts strong Q4 profit
Dec. 19, 2012, Montreal - Tour operator Transat A.T. ended a money losing year by turning around its fourth quarter to generate a $16.6-million profit despite lower revenues.
December 19, 2012 By The Canadian Press
While its decision to reduce capacity this summer on transatlantic and sun destinations hurt its topline, the Montreal-based company said it earned 43 cents per share for the quarter ended Oct. 31.
That compared to a loss of 19 cents per share or $7.3 million a year ago.
Adjusting for one-time items, including a $15-million impairment to goodwill in its France operations, it earned $28.6 million or 75 cents per share, compared to net earnings of $7.3 million or 19 cents per share in the prior year.
Revenues decreased 5.3 per cent to $763.4 million from $805.9 million as its decision to reduce capacity caused a 6.3 per cent drop in the number of travellers.
Still, the move led to an improvement in prices and load factors in the important summer transatlantic market.
For the full year, Transat lost $16.7 million or 44 cents per share, compared to a loss of $14.7 million or 39 cents per share in 2011. On an adjusted basis, its losses increased to $15.3 million from $9.7 million.
Revenues increased 1.6 per cent to $3.7 billion.
Transat's loss last year was $2.9 million higher than previously reported because of an accounting error at its U.K. subsidiary between 2006 and 2010 that forced the company to restate its financial results for 2011.
Amounts received from customers for future travel weren't properly recorded according to accounting standards. Consequently, Transat has reduced its retained earnings by $11.7 million for the five years in question.