HALIFAX,
NS, March 29, 2023 /CNW/ - Chorus Aviation
Inc. ("Chorus") (TSX: CHR) announced that it is holding an Investor
Day today, March 29, 2023. The
presentation materials will be posted to the Chorus website prior
to the start of the event. Please note a video recording will be
made available on the website shortly following the event.
"Today marks Chorus' first Investor Day conference, and we are
excited to share our vison for the company," said Colin Copp, President and Chief Executive
Officer, Chorus. "There have been significant changes in our
business over the past year, including a shift in strategic
direction as we pursue an asset light leasing model. These changes
are enabling us to significantly deleverage our business while
improving the quality of our earnings. With $2.6 billion1 in future contracted
revenues and US $700.0 million of
embedded equity value2 in Falko's on-balance sheet
portfolio of leased aircraft, we are in a strong position to
generate substantial cash flow that can be deployed to enhance
shareholder returns and make accretive investments in future
growth. I look forward to engaging further with our shareholders
and demonstrating the value of our strategy as we execute in the
months and years to come," concluded Mr. Copp.
Investor Day Agenda
The Investor Day will include presentations by Mr. Copp on the
company's strategy and members of the Chorus executive team on
their respective subsidiaries and corporate functions:
- Welcome
Jolene
Mahody, EVP & Chief Strategy Officer
- Introduction & Investment Highlights
Colin Copp, President & CEO
- Jazz, Sole Air Canada Express Operator
Randolph
deGooyer, President, Jazz
- Falko, Leading Aircraft Asset Manager & Lessor
Jeremy Barnes, CEO, Falko
- Voyageur, Speciality Service Provider
Gary Gilbert, Vice President, Avparts
- Financial Performance & Outlook
Gary Osborne, Chief Financial Officer
- Key Takeaways
Colin
Copp, President & CEO
- Question and Answer
Investor Day Content
The following content will be made available on Chorus'
website:
- Presentations from the Investor Day will be posted prior to the
start of the event
- A video recording of the event will be posted following the
Investor Day
The presentations include management's views on the current
value of Chorus' common equity.
Complete details of Chorus' previously communicated 2023
forecasts and key economic assumptions can be found in Management's
Discussion and Analysis of Operations and Financial Condition dated
February 15, 2023 (the "2022
MD&A") available at www.chorusaviation.com and under Chorus'
profile on SEDAR at www.sedar.com.
Use of Defined Terms
Capitalized terms used but not defined in this news release have
the meanings given to them in the 2022 MD&A.
End Notes
- Future contracted revenues include aircraft lease revenue of US
$595.0 under the CPA, CAD
$622.0 million in Fixed Margin
revenue under the CPA, US $811.7
million aircraft lease revenue from the Falko business, and
CAD $135.0 million of contracted
revenue from the Voyageur business. The forecast uses a foreign
exchange rate of 1.30 to translate USD to CAD revenue. The Fixed
Margin forecast is based on the estimated number of Covered
Aircraft under the CPA to the end of its term, and the aircraft
leasing revenue forecast is based on (i) agreed lease rates in the
CPA to the end of the existing lease terms and (ii) current
estimates of future market lease rents for leases under the CPA
with rent re-set provisions. Falko lease revenues are based on
agreed lease rates to the end of the existing lease
terms. Voyageur future contract revenue estimates are based on
agreed contract rates with third parties and estimates for future
market rates related to new or extended contracts.
- Embedded equity value of US $700.0
million is calculated as the difference between the owned
aircraft net book value of US $1,590.0
million less the associated aircraft debt of US $856.0 million and non-controlling interest US
$66.0 offset by aircraft accounted
for as finance leases of US $32.0
million as of December 31,
2022. The embedded equity value was converted from CAD to
USD at a rate of 0.7383, which was the closing Bank of Canada rate on December
31, 2022.
Forward-Looking
information
This news release includes forward-looking information.
Forward-looking information is identified by the use of terms and
phrases such as "future", "anticipate", "believe", "can", "could",
"estimate", "expect", "intend", "make", "may", "plan", "potential",
"predict", "project", "will", "would", and similar terms and
phrases, including references to assumptions. Such information may
involve but is not limited to comments and statements with respect
to strategies, expectations, planned operations or future actions.
Forward-looking information relates to analyses and other
information that is based on forecasts of future results, estimates
of amounts not yet determinable and other uncertain events.
Forward-looking information, by its nature, is based on
assumptions, including those referenced in this news release, and
is subject to important risks and uncertainties. Any forecasts or
forward-looking predictions or statements cannot be relied upon due
to, among other things, external events, changing market conditions
and general uncertainties of the business. Such information and
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements
to differ materially from those indicated in the forward-looking
information.
Examples of forward-looking information in this news release
include statements regarding Chorus' future contracted revenues,
plans to reduce debt leverage, and the ability to monetize the
embedded equity value in Falko's portfolio of leased aircraft to
enhance shareholder returns and make accretive investments in
growth. Actual results may differ materially from results indicated
in forward looking information for a number of reasons, including:
amendments to long-term contracts and/or breaches or disputes
concerning those contracts; changing economic conditions (including
inflation and interest rates); the emergence of new COVID-19
variants or new epidemics and pandemics; Falko's ability to
successfully launch new funds on the terms currently contemplated
or at all; Voyageur's ability to grow its defence and parts
businesses; the trading price and liquidity of Chorus' shares;
Chorus' ability to pay its indebtedness and otherwise remain in
compliance with its debt covenants; the risk of cross defaults
under debt agreements and other significant contracts; the risk of
asset impairments and provisions for expected credit losses; the
risk factors referenced in Chorus' most recent Annual Information
Form and in its public disclosure record available on SEDAR at
www.sedar.com. Readers are cautioned that the foregoing factors and
risks are not exhaustive. The forward-looking statements contained
in this news release represent Chorus' expectations as of the date
of this news release (or as of the date they are otherwise stated
to be made) and are subject to change after such date. Chorus
disclaims any intention or obligation to update or revise such
statements to reflect new information, subsequent events or
otherwise, except as required by applicable securities laws.
About Chorus Aviation
Inc.
Chorus' vision is to deliver regional aviation to the world.
Headquartered in Halifax, Nova
Scotia, Chorus is an integrated provider of regional
aviation solutions, including asset management services. Its
principal subsidiaries are: Falko Regional Aircraft, the world's
largest asset manager and aircraft lessor focused solely on the
regional aircraft leasing segment; Jazz Aviation, the sole provider
of regional air services under the Air Canada Express brand; and
Voyageur Aviation, a provider of specialty air charter, aircraft
modification, and parts provisioning services to regional aviation
customers around the world. Together, Chorus' subsidiaries provide
support services that encompass every stage of a regional
aircraft's lifecycle, including: aircraft acquisition and leasing;
aircraft refurbishment, engineering, modification, repurposing and
transition; contract flying; aircraft and component maintenance,
disassembly, and parts provisioning.
Chorus Class A Variable Voting Shares and Class B Voting Shares
trade on the Toronto Stock Exchange under the trading symbol 'CHR'.
Chorus 5.75% Senior Unsecured Debentures due December 31, 2024, 6.00% Convertible Senior
Unsecured Debentures due June 30,
2026, and 5.75% Senior Unsecured Debentures due June 30, 2027 trade on the Toronto Stock Exchange
under the trading symbols 'CHR.DB.A', 'CHR.DB.B', and 'CHR.DB.C'
respectively. www.chorusaviation.com
SOURCE Chorus Aviation Inc.