Q2 2024 Chorus Aviation Inc Earnings Call Transcript
Key Points
- Chorus Aviation Inc (CHRRF) reported strong financial performance with a combined adjusted EBITDA of $51 million for Q2 2024 and $105 million year to date.
- Voyageur delivered a $4.8 million increase in revenue over Q2 of 2023, showcasing its ability to seize new opportunities.
- The company successfully bought back 1.4 million common shares under its NCIB, reflecting confidence in its financial position.
- The divestiture of the Regional Aviation Leasing Segment (RAL) is expected to significantly deleverage the capital structure and improve financial flexibility.
- Post-transaction, Chorus Aviation Inc (CHRRF) expects to eliminate substantially all corporate debt, enhancing its ability to grow and return capital to shareholders.
- The reclassification of the RAL segment to discontinued operations may create some uncertainty and transitional challenges.
- The fixed fee and leasing revenue under the CPA with Air Canada may face potential risks if not renewed or extended.
- The company’s leverage ratio, although improved, still stands at 3.0, indicating ongoing debt management challenges.
- The pilot shortage situation in Canada remains a concern, although it is less pronounced than in the US.
- The step-down in fleet count post-2026 under the CPA with Air Canada could impact future revenue streams if not adequately managed.
Good morning, ladies and gentlemen. And welcome to the Chorus Second-Quarter 2024 Financial Results Conference Call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question-and-answer session (Operator Instructions) This call is being recorded on Wednesday, August 14, 2024.
I would now like to turn the conference over to Tyrone Cotie, VP of Treasury, Investor Relations. Please go ahead.
Thank you, Joanna. Hello, and thank you for joining us today for our second quarter conference call and audio webcast. With me today from Chorus are Colin Copp, President and Chief Executive Officer; and Gary Osborne, Chief Financial Officer.
We will begin today's call with a brief summary of the results followed by questions from the analyst community. As there may be some forward-looking statements during the call, I ask that you refer to the caution regarding forward-looking statements and information found in our MD&A.
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