MONTREAL, CANADA--(Marketwired - May 16, 2013) - (NYSE:CAE)(TSX:CAE) - CAE today reported financial results for the fourth quarter and full-year ended March 31, 2013. Net income attributable to equity holders was $43.8 million ($0.17 per share) this quarter, compared to $53.2 million ($0.21 per share) last year. Net income attributable to equity holders for the year was $139.4 million ($0.54 per share), compared to $180.3 million ($0.70 per share) last year. All financial information is in Canadian dollars.
Excluding $10.1 million (after-tax) of restructuring, integration and acquisition costs this quarter, net income attributable to equity holders was $53.9 million ($0.21 per share). On the same basis, it was $190.7 million ($0.74 per share) for the year.
Revenue for the quarter was $587.9 million, 16% higher than $506.7 million in the fourth quarter last year. For the full year, revenue was $2,104.5 million, up 16% from $1,821.2 million last year.
"Our results for the quarter and the year reflected our integration of new businesses and restructuring of Civil and Military operations," said Marc Parent, CAE's President and Chief Executive Officer. "Backlog exceeded $4 billion for the first time in CAE's history, with a high proportion involving recurring services. In Civil Products, we had a strong finish to the year, meeting our mid-30s full-flight simulator order outlook. With continued high levels of aircraft deliveries, we expect strong demand for civil full-flight simulators again in fiscal 2014. In Civil Training, the integration of Oxford progressed well, with cost synergies on target. In Military, we booked orders involving enduring aircraft programs, which gives us confidence in sustaining our business in a still-challenging environment. New Core Markets delivered on our financial goals and we expect our investments in new products and expanded sales capabilities to bear fruit in the period ahead."
Summary of consolidated results
| (amounts in millions, except operating margins) | FY2013 | FY2012 | Q4-2013 | Q3-2013 | Q2-2013 | Q1-2013 | Q4-2012 | |
| Revenue | $ | 2,104.5 | 1,821.2 | 587.9 | 522.1 | 514.4 | 480.1 | 506.7 |
| Operating profit (1) | $ | 245.7 | 302.1 | 71.6 | 62.4 | 66.9 | 44.8 | 88.7 |
| As a % of revenue | % | 11.7 | 16.6 | 12.2 | 12.0 | 13.0 | 9.3 | 17.5 |
| Net Income | $ | 142.4 | 182.0 | 46.4 | 37.5 | 36.8 | 21.7 | 53.7 |
| Net income attributable to the equity holders of the Company | $ | 139.4 | 180.3 | 43.8 | 37.8 | 36.5 | 21.3 | 53.2 |
| Backlog (2) | $ | 4,091.9 | 3,724.2 | 4,091.9 | 3,833.0 | 3,909.1 | 3,894.5 | 3,724.2 |
Civil segments
Revenue for our combined Civil segments increased 54% in the fourth quarter to $331.6 million compared to $215.4 million last year. Fourth quarter operating profit was $54.1 million (16.3% of revenue) compared to $44.3 million (20.6% of revenue) last year.
Annual revenue was $1,158.0 million, up 38% from $840.9 million last year. Annual operating profit was $195.1 million (16.8% of revenue) compared to $173.8 million (20.7% of revenue) last year.
We received 10 full-flight simulator (FFS) orders in the fourth quarter to conclude the year with 35 in total. We also obtained training services contracts expected to generate $456.7 million in future revenue, including long-term training services contracts with LAN, TAM, Turkish Airlines, Virgin Atlantic and Brussels Airlines. We also renewed a long-term contract with GE Capital Aviation Services for crew sourcing and we signed an agreement with Ryanair for training and recruitment services.
We received $607.5 million in combined civil segment orders this quarter representing a book-to-sales ratio of 1.83x. The ratio for the trailing 12 months was 1.18x.
Training & Services/Civil (TS/C)
| (amounts in millions except operating margins, RSEU(3) and FFSs deployed) | FY2013 | FY2012 | Q4-2013 | Q3-2013 | Q2-2013 | Q1-2013 | Q4-2012 | |
| Revenue | $ | 755.6 | 498.4 | 201.8 | 193.8 | 189.1 | 170.9 | 132.3 |
| Segment operating income | $ | 121.5 | 122.2 | 31.8 | 29.1 | 27.3 | 33.3 | 30.3 |
| Operating margins | % | 16.1 | 24.5 | 15.8 | 15.0 | 14.4 | 19.5 | 22.9 |
| Backlog | $ | 1,602.2 | 1,183.4 | 1,602.2 | 1,345.8 | 1,360.9 | 1,400.0 | 1,183.4 |
| RSEU(3) | 181 | 139 | 187 | 186 | 187 | 164 | 142 | |
| FFSs deployed | 227 | 171 | 227 | 222 | 218 | 216 | 171 | |
Simulation Products/Civil (SP/C)
| (amounts in millions except operating margins) | FY2013 | FY2012 | Q4-2013 | Q3-2013 Q2-2013 | Q1-2013 | Q4-2012 | ||
| Revenue | $ | 402.4 | 342.5 | 129.8 | 93.4 | 98.9 | 80.3 | 83.1 |
| Segment operating income | $ | 73.6 | 51.6 | 22.3 | 18.0 | 18.9 | 14.4 | 14.0 |
| Operating margins | % | 18.3 | 15.1 | 17.2 | 19.3 | 19.1 | 17.9 | 16.8 |
| Backlog | $ | 383.2 | 351.6 | 383.2 | 361.2 | 385.2 | 361.9 | 351.6 |
Military segments
Revenue for our combined Military segments decreased 15% in the fourth quarter to $227.3 million compared to $267.1 million last year. For the year, revenue was $834.4 million, down 7% from $897.3 million last year.
Combined Military operating income was $29.4 million (12.9% of revenue) for the quarter, compared to $45.6 million (17.1% of revenue) last year. For the full year, operating income was $113.1 million (13.6% of revenue), compared to $142.1 million (15.8% of revenue) last year.
We booked orders in our Simulation Products Military segment during the quarter involving enduring aircraft types like the MH-60 Seahawk helicopter and the C-130J Hercules transport aircraft. These orders comprised simulator products and updates in support of the U.S. Navy and Air Force, the Royal Australian Navy, and the Israeli Air Force. We were also awarded contracts in our Training and Services Military segment to provide a range of maintenance and support services for customers including NATO, the U.S. Air Force, the German Armed Forces, and the Taiwan Air Force. As part of the U.S. Air Force's KC-135 Aircrew Training Systems program, for which CAE is the prime contractor, we were awarded an additional contract to provide operations and maintenance support involving the aerial refueling aircraft's boom operator trainers.
We received $215.9 million in combined military segment orders this quarter, representing a book-to-sales ratio of 0.95x. The ratio for the trailing 12 months was 0.92x.
Simulation Products/Military (SP/M)
| (amounts in millions except operating margins) | FY2013 | FY2012 | Q4-2013 | Q3-2013 | Q2-2013 | Q1-2013 | Q4-2012 | |
| Revenue | $ | 561.6 | 619.2 | 154.9 | 140.5 | 130.8 | 135.4 | 195.6 |
| Segment operating income | $ | 77.9 | 101.2 | 19.2 | 18.3 | 20.9 | 19.5 | 34.6 |
| Operating margins | % | 13.9 | 16.3 | 12.4 | 13.0 | 16.0 | 14.4 | 17.7 |
| Backlog | $ | 685.0 | 786.0 | 685.0 | 728.9 | 723.1 | 755.6 | 786.0 |
Training & Services /Military (TS/M)
| (amounts in millions except operating margins) | FY2013 | FY2012 | Q4-2013 | Q3-2013 | Q2-2013 | Q1-2013 | Q4-2012 | |
| Revenue | $ | 272.8 | 278.1 | 72.4 | 65.7 | 67.3 | 67.4 | 71.5 |
| Segment operating income | $ | 35.2 | 40.9 | 10.2 | 8.7 | 7.4 | 8.9 | 11.0 |
| Operating margins | % | 12.9 | 14.7 | 14.1 | 13.2 | 11.0 | 13.2 | 15.4 |
| Backlog | $ | 1,421.5 | 1,403.2 | 1,421.5 | 1,397.1 | 1,439.9 | 1,377.0 | 1,403.2 |
New Core Markets
Revenue in New Core Markets was $29.0 million for the quarter, up 20% from $24.2 million last year. Operating income was $1.8 million for the quarter, compared to negative $1.2 million last year. Annual revenue was $112.1 million up 35% from $83.0 million last year and operating income was $6.4 million, compared to negative $13.8 million last year.
In CAE Healthcare, we continued to make good progress penetrating global markets with sales of our surgical, patient, and ultrasound simulators, as well as centre management systems to customers in Canada, the U.S., Australia, India and Saudi Arabia.
In CAE Mining, we sold our mine planning software to customers in China and Russia and our new stratigraphic modeling software to customers in South Africa and Chile. We also received a contract to implement a complete suite of geological data management, resource modeling and mine planning software to a gold mining company operating long life projects in Vietnam and Malaysia.
New Core Markets (NCM)
| (amounts in millions) | FY2013 | FY2012 | Q4-2013 | Q3-2013 | Q2-2013 | Q1-2013 | Q4-2012 | |||
| Revenue | $ | 112.1 | 83.0 | 29.0 | 28.7 | 28.3 | 26.1 | 24.2 | ||
| Segment operating income (loss) | $ | 6.4 | (13.8 | ) | 1.8 | 1.7 | 2.2 | 0.7 | (1.2 | ) |
| Operating margins | % | 5.7 | - | 6.2 | 5.9 | 7.8 | 2.7 | - | ||
Additional financial highlights
Income taxes this quarter were $7.0 million representing an effective tax rate of 13%, compared to 26% last year. The decrease in the effective tax rate from the fourth quarter of fiscal 2012 was mainly due to the settlement of tax audits as well as the change in the mix of income from various jurisdictions. Excluding the effect of the one - time items in the quarter, the income tax expense would have been $11.5 million. The impact of these one-time items represents $0.02 on earnings per share.
Free cash flow(4) was positive $108.6 million this quarter. Our free cash flow is generally higher in the second half of the fiscal year, a trend that is expected to continue in fiscal 2014. The increase in free cash flow compared to the fourth quarter last year results mainly from favorable changes in non-cash working capital.
Capital expenditures totalled $32.4 million this quarter, including $29.5 million for growth and $2.9 million for maintenance.
Net debt(5) was $916.8 million as at March 31, 2013, compared with $965.4 million as at December 31, 2012.
CAE will pay a dividend of $0.05 per share effective June 28, 2013 to shareholders of record at the close of business on June 14, 2013.
Additional information
You will find a more detailed discussion of our results by segment in the Management's Discussion and Analysis
(MD&A) as well as in our consolidated interim financial statements which are posted on our website at www.cae.com/investors.
CAE's unaudited consolidated interim financial statements and management's discussion and analysis for the quarter ended March 31, 2013 have been filed with the Canadian securities commissions and are available on our website (www.cae.com) and on SEDAR (www.sedar.com). They have also been filed with the U.S. Securities and Exchange Commission and are available on their website (www.sec.gov).
Conference call Q4 and full-year FY2013
CAE will host a conference call focusing on fiscal year 2013 fourth quarter and full-year financial results today at 1:00 p.m. ET. The call is intended for analysts, institutional investors and the media. Participants can listen to the conference by dialling + 1 877 586 3392 or +1 416 981 9024. The conference call will also be audio webcast live for the public at www.cae.com.
CAE is a global leader in modeling, simulation and training for civil aviation and defence. The company employs approximately 8,000 people at more than 100 sites and training locations in approximately 30 countries. CAE offers civil aviation, military, and helicopter training services in more than 45 locations worldwide and trains approximately 100,000 crewmembers yearly. In addition, the CAE Oxford Aviation Academy offers training to aspiring pilot cadets in 11 CAE-operated flight schools. CAE's business is diversified, ranging from the sale of simulation products to providing comprehensive services such as training and aviation services, integrated enterprise solutions, in-service support and crew sourcing. The company applies simulation expertise and operational experience to help customers enhance safety, improve efficiency, maintain readiness and solve challenging problems. CAE is leveraging its simulation capabilities in new markets such as healthcare and mining. www.cae.com
You will find more information about the risks and uncertainties associated with our business in the MD&A section of our annual report and annual information form for the year ended March 31, 2012. These documents have been filed with the Canadian securities commissions and are available on our website ( www.cae.com), on SEDAR (www.sedar.com) and a free copy is available upon request to CAE. They have also been filed with the U.S. Securities and Exchange Commission under Form 40-F and are available on EDGAR (www.sec.gov). The forward-looking statements contained in this news release represent our expectations as of May 16, 2013 and, accordingly, are subject to change after this date. We do not update or revise forward-looking information even if new information becomes available unless legislation requires us to do so. You should not place undue reliance on forward-looking statements.
Notes
| (1) | Operating profit is non-GAAP measure that shows us how we have performed before the effects of certain financing decisions and tax structures. We track operating profit because we believe it makes it easier to compare our performance with previous periods, and with companies and industries that do not have the same capital structure or tax laws. |
| (2) | Backlog is a non-GAAP measure that represents the expected value of orders we have received but have not yet executed. |
| (3) | Revenue simulator equivalent unit (RSEU) is a financial measure we use to show the total average number of FFSs available to generate revenue during the period. |
| (4) | Free cash flow is a non-GAAP measure that shows us how much cash we have available to build the business, repay debt and meet ongoing financial obligations. We use it as an indicator of our financial strength and liquidity. We calculate it by taking the net cash generated by our continuing operating activities, subtracting maintenance capital expenditures, other assets not related to growth and dividends paid and adding proceeds from disposal of property, plant and equipment. |
| (5) | Net debt is a non-GAAP measure we use to monitor how much debt we have after taking into account liquid assets such as cash and cash equivalents. We use it as an indicator of our overall financial position, and calculate it by taking our total long-term debt, including the current portion of long-term debt, and subtracting cash and cash equivalents. |
| Consolidated Statement of Financial Position |
| (Unaudited) |
| As at March 31 | ||||||
| (amounts in millions of Canadian dollars) | 2013 | 2012 | ||||
| Assets | ||||||
| Cash and cash equivalents | $ | 293.2 | $ | 287.3 | ||
| Accounts receivable | 399.5 | 308.4 | ||||
| Contracts in progress : assets | 247.3 | 245.8 | ||||
| Inventories | 186.6 | 153.1 | ||||
| Prepayments | 56.3 | 47.7 | ||||
| Income taxes recoverable | 141.9 | 95.5 | ||||
| Derivative financial assets | 9.0 | 10.3 | ||||
| Total current assets | $ | 1,333.8 | $ | 1,148.1 | ||
| Property, plant and equipment | 1,498.6 | 1,293.7 | ||||
| Intangible assets | 799.2 | 533.2 | ||||
| Deferred tax assets | 39.4 | 24.1 | ||||
| Derivative financial assets | 6.4 | 7.2 | ||||
| Other assets | 201.3 | 177.4 | ||||
| Total assets | $ | 3,878.7 | $ | 3,183.7 | ||
| Liabilities and equity | ||||||
| Accounts payable and accrued liabilities | $ | 695.5 | $ | 597.6 | ||
| Provisions | 49.2 | 21.6 | ||||
| Income taxes payable | 13.7 | 10.9 | ||||
| Contracts in progress : liabilities | 117.9 | 104.6 | ||||
| Current portion of long-term debt | 113.0 | 136.0 | ||||
| Derivative financial liabilities | 13.5 | 12.7 | ||||
| Total current liabilities | $ | 1,002.8 | $ | 883.4 | ||
| Provisions | 8.3 | 6.0 | ||||
| Long-term debt | 1,097.0 | 685.6 | ||||
| Royalty obligations | 160.6 | 161.6 | ||||
| Employee benefits obligations | 136.1 | 114.2 | ||||
| Deferred gains and other non-current liabilities | 194.6 | 186.0 | ||||
| Deferred tax liabilities | 131.6 | 91.8 | ||||
| Derivative financial liabilities | 13.2 | 12.9 | ||||
| Total liabilities | $ | 2,744.2 | $ | 2,141.5 | ||
| Equity | ||||||
| Share capital | $ | 471.7 | $ | 454.5 | ||
| Contributed surplus | 21.9 | 19.2 | ||||
| Accumulated other comprehensive loss | (16.6 | ) | (9.8 | ) | ||
| Retained earnings | 625.7 | 558.0 | ||||
| Equity attributable to equity holders of the Company | $ | 1,102.7 | $ | 1,021.9 | ||
| Non-controlling interests | 31.8 | 20.3 | ||||
| Total equity | $ | 1,134.5 | $ | 1,042.2 | ||
| Total liabilities and equity | $ | 3,878.7 | $ | 3,183.7 |
| Consolidated Income Statement |
| (Unaudited) |
| (amounts in millions of Canadian dollars, | | Three months ended March 31 | | | Twelve months ended March 31 | | ||||||
| except per share amounts) | 2013 | 2012 | 2013 | 2012 | ||||||||
| Revenue | $ | 587.9 | $ | 506.7 | $ | 2,104.5 | $ | 1,821.2 | ||||
| Cost of sales | 420.5 | 336.6 | 1,482.8 | 1,221.1 | ||||||||
| Gross profit | $ | 167.4 | $ | 170.1 | $ | 621.7 | $ | 600.1 | ||||
| Research and development expenses | 18.1 | 15.2 | 60.6 | 62.8 | ||||||||
| Selling, general and administrative expenses | 66.9 | 71.8 | 269.9 | 256.4 | ||||||||
| Other gains - net | (2.9 | ) | (5.6 | ) | (23.4 | ) | (21.2 | ) | ||||
| Restructuring, integration and acquisition costs | 13.7 | - | 68.9 | - | ||||||||
| Operating profit | $ | 71.6 | $ | 88.7 | $ | 245.7 | $ | 302.1 | ||||
| Finance income | (1.5 | ) | (1.5 | ) | (7.3 | ) | (6.6 | ) | ||||
| Finance expense | 19.7 | 18.1 | 75.5 | 69.2 | ||||||||
| Finance expense - net | $ | 18.2 | $ | 16.6 | $ | 68.2 | $ | 62.6 | ||||
| Earnings before income taxes | $ | 53.4 | $ | 72.1 | $ | 177.5 | $ | 239.5 | ||||
| Income tax expense | 7.0 | 18.4 | 35.1 | 57.5 | ||||||||
| Net income | $ | 46.4 | $ | 53.7 | $ | 142.4 | $ | 182.0 | ||||
| Attributable to: | ||||||||||||
| Equity holders of the Company | $ | 43.8 | $ | 53.2 | $ | 139.4 | $ | 180.3 | ||||
| Non-controlling interests | 2.6 | 0.5 | 3.0 | 1.7 | ||||||||
| $ | 46.4 | $ | 53.7 | $ | 142.4 | $ | 182.0 | |||||
| Earnings per share from continuing operations attributable to equity holders of the Company | ||||||||||||
| Basic and diluted | $ | 0.17 | $ | 0.21 | $ | 0.54 | $ | 0.70 | ||||
| Consolidated Statement of Comprehensive Income |
| (Unaudited) | Three months ended March 31 | Twelve months ended March 31 | ||||||||||
| (amounts in millions of Canadian dollars) | 2013 | 2012 | 2013 | 2012 | ||||||||
| Net income | $ | 46.4 | $ | 53.7 | $ | 142.4 | $ | 182.0 | ||||
| Foreign currency translation | ||||||||||||
| Net currency translation difference on the translation of financial statements of foreign operations | $ | 12.8 | $ | (5.1 | ) | $ | 10.6 | $ | 13.5 | |||
| Net (losses) gains on certain long-term debt denominated in foreign currency and designated as hedges of net investments in foreign operations | (8.6 | ) | 3.4 | (8.8 | ) | (3.9 | ) | |||||
| Income taxes | 1.2 | (0.6 | ) | 0.7 | 0.8 | |||||||
| $ | 5.4 | $ | (2.3 | ) | $ | 2.5 | $ | 10.4 | ||||
| Net changes in cash flow hedges | ||||||||||||
| Effective portion of changes in fair value of cash flow hedges | $ | (5.0 | ) | $ | 6.1 | $ | (2.5 | ) | $ | (8.7 | ) | |
| Reclassifications to net income or to the related non financial assets or liabilities | (1.1 | ) | (4.5 | ) | (10.2 | ) | (4.7 | ) | ||||
| Income taxes | 1.6 | (0.2 | ) | 3.5 | 3.1 | |||||||
| $ | (4.5 | ) | $ | 1.4 | $ | (9.2 | ) | $ | (10.3 | ) | ||
| Defined benefit plan actuarial losses | ||||||||||||
| Defined benefit plan actuarial losses | $ | (10.1 | ) | $ | (22.6 | ) | $ | (30.8 | ) | $ | (64.9 | ) |
| Income taxes | 2.8 | 5.7 | 8.3 | 17.4 | ||||||||
| $ | (7.3 | ) | $ | (16.9 | ) | $ | (22.5 | ) | $ | (47.5 | ) | |
| Other comprehensive loss | $ | (6.4 | ) | $ | (17.8 | ) | $ | (29.2 | ) | $ | (47.4 | ) |
| Total comprehensive income | $ | 40.0 | $ | 35.9 | $ | 113.2 | $ | 134.6 | ||||
| Attributable to: | ||||||||||||
| Equity holders of the Company | $ | 37.4 | $ | 35.4 | $ | 110.1 | $ | 132.8 | ||||
| Non-controlling interests | 2.6 | 0.5 | 3.1 | 1.8 | ||||||||
| $ | 40.0 | $ | 35.9 | $ | 113.2 | $ | 134.6 | |||||
| Consolidated Statement of Changes in Equity |
| (Unaudited) | Attributable to equity holders of the Company | ||||||||||||||||||||
| Year ended March 31, 2013 (amounts in millions of Canadian dollars, except number of shares) | Number of shares | Common shares Stated value | Contributed surplus | Accumulated other comprehensive loss | Retained earnings | Total | Non-controlling interests | Total equity | |||||||||||||
| Balances, beginning of year | 258,266,295 | $ | 454.5 | $ | 19.2 | $ | (9.8 | ) | $ | 558.0 | $ | 1,021.9 | $ | 20.3 | $ | 1,042.2 | |||||
| Net income | - | - | - | - | 139.4 | 139.4 | 3.0 | 142.4 | |||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||
| Foreign currency translation | - | - | - | 2.4 | - | 2.4 | 0.1 | 2.5 | |||||||||||||
| Net changes in cash flow hedges | - | - | - | (9.2 | ) | - | (9.2 | ) | - | (9.2 | ) | ||||||||||
| Defined benefit plan actuarial losses | - | - | - | - | (22.5 | ) | (22.5 | ) | - | (22.5 | ) | ||||||||||
| Total comprehensive income | - | $ | - | $ | - | $ | (6.8 | ) | $ | 116.9 | $ | 110.1 | $ | 3.1 | $ | 113.2 | |||||
| Stock options exercised | 482,250 | 3.9 | - | - | - | 3.9 | - | 3.9 | |||||||||||||
| Optional cash purchase | 1,683 | - | - | - | - | - | - | - | |||||||||||||
| Stock dividends | 1,228,831 | 12.1 | - | - | (12.1 | ) | - | - | - | ||||||||||||
| Transfer upon exercise of stock options | - | 1.2 | (1.2 | ) | - | - | - | - | - | ||||||||||||
| Share-based payments | - | - | 3.9 | - | - | 3.9 | - | 3.9 | |||||||||||||
| Additions to non-controlling interests | - | - | - | - | - | - | 8.4 | 8.4 | |||||||||||||
| Dividends | - | - | - | - | (37.1 | ) | (37.1 | ) | - | (37.1 | ) | ||||||||||
| Balances, end of year | 259,979,059 | $ | 471.7 | $ | 21.9 | $ | (16.6 | ) | $ | 625.7 | $ | 1,102.7 | $ | 31.8 | $ | 1,134.5 | |||||
| (Unaudited) | Attributable to equity holders of the Company | ||||||||||||||||||||
| Year ended March 31, 2012 (amounts in millions of Canadian dollars, except number of shares) | Number of shares | Common shares Stated value | Contributed surplus | Accumulated other comprehensive loss | Retained earnings | Total | Non- controlling interests | Total equity | |||||||||||||
| Balances, beginning of year | 256,964,756 | $ | 440.7 | $ | 17.1 | $ | (9.8 | ) | $ | 466.4 | $ | 914.4 | $ | 18.5 | $ | 932.9 | |||||
| Net income | - | - | - | - | 180.3 | 180.3 | 1.7 | 182.0 | |||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||
| Foreign currency translation | - | - | - | 10.3 | - | 10.3 | 0.1 | 10.4 | |||||||||||||
| Net changes in cash flow hedges | - | - | - | (10.3 | ) | - | (10.3 | ) | - | (10.3 | ) | ||||||||||
| Defined benefit plan actuarial losses | - | - | - | - | (47.5 | ) | (47.5 | ) | - | (47.5 | ) | ||||||||||
| Total comprehensive income | - | $ | - | $ | - | $ | - | $ | 132.8 | $ | 132.8 | $ | 1.8 | $ | 134.6 | ||||||
| Stock options exercised | 538,600 | 4.4 | - | - | - | 4.4 | - | 4.4 | |||||||||||||
| Optional cash purchase | 898 | - | - | - | - | - | - | - | |||||||||||||
| Stock dividends | 762,041 | 7.8 | - | - | (7.8 | ) | - | - | - | ||||||||||||
| Transfer upon exercise of stock options | - | 1.6 | (1.6 | ) | - | - | - | - | - | ||||||||||||
| Share-based payments | - | - | 3.7 | - | - | 3.7 | - | 3.7 | |||||||||||||
| Dividends | - | - | - | - | (33.4 | ) | (33.4 | ) | - | (33.4 | ) | ||||||||||
| Balances, end of year | 258,266,295 | $ | 454.5 | $ | 19.2 | $ | (9.8 | ) | $ | 558.0 | $ | 1,021.9 | $ | 20.3 | $ | 1,042.2 | |||||
| The total retained earnings and accumulated other comprehensive loss for the year ended March 31, 2013 was $609.1 million (2012 - $548.2 million). |
| Consolidated Statement of Cash Flows |
| (Unaudited) |
| Years ended March 31 | |||||||
| (amounts in millions of Canadian dollars) | 2013 | 2012 | |||||
| Operating activities | |||||||
| Net income | $ | 142.4 | $ | 182.0 | |||
| Adjustments to reconcile net income to cash flows from operating activities: | |||||||
| Depreciation of property, plant and equipment | 107.6 | 92.3 | |||||
| Amortization of intangible and other assets | 49.7 | 33.5 | |||||
| Financing cost amortization | 1.8 | 1.6 | |||||
| Deferred income taxes | 28.1 | 36.4 | |||||
| Investment tax credits | (22.6 | ) | (14.5 | ) | |||
| Share-based compensation | (4.2 | ) | 4.7 | ||||
| Defined benefit pension plans | (9.3 | ) | (13.1 | ) | |||
| Amortization of other non-current liabilities | (15.6 | ) | (12.0 | ) | |||
| Other | (12.1 | ) | (5.3 | ) | |||
| Changes in non-cash working capital | (61.7 | ) | (71.7 | ) | |||
| Net cash provided by operating activities | $ | 204.1 | $ | 233.9 | |||
| Investing activities | |||||||
| Business combinations, net of cash and cash equivalents acquired | $ | (285.3 | ) | $ | (126.0 | ) | |
| Joint ventures, net of cash and cash equivalents acquired | (0.7 | ) | (27.6 | ) | |||
| Capital expenditures for property, plant and equipment | (155.8 | ) | (165.7 | ) | |||
| Proceeds from disposal of property, plant and equipment | 8.9 | 34.4 | |||||
| Capitalized development costs | (49.6 | ) | (42.8 | ) | |||
| Enterprise resource planning (ERP) and other software | (19.4 | ) | (17.3 | ) | |||
| Other | (3.0 | ) | 5.0 | ||||
| Net cash used in investing activities | $ | (504.9 | ) | $ | (340.0 | ) | |
| Financing activities | |||||||
| Net borrowing under revolving unsecured credit facilities | $ | 54.0 | $ | 14.2 | |||
| Net effect of current financial assets program | (37.1 | ) | 4.9 | ||||
| Proceeds from long-term debt, net of transaction costs | 740.4 | 195.0 | |||||
| Repayment of long-term debt | (380.2 | ) | (36.1 | ) | |||
| Repayment of finance lease | (36.3 | ) | (32.8 | ) | |||
| Dividends paid | (37.1 | ) | (33.4 | ) | |||
| Common stock issuance | 3.9 | 4.4 | |||||
| Other | (0.9 | ) | (0.7 | ) | |||
| Net cash provided by financing activities | $ | 306.7 | $ | 115.5 | |||
| Effect of foreign exchange rate changes on cash and cash equivalents | $ | - | $ | 1.5 | |||
| Net increase in cash and cash equivalents | $ | 5.9 | $ | 10.9 | |||
| Cash and cash equivalents, beginning of year | 287.3 | 276.4 | |||||
| Cash and cash equivalents, end of year | $ | 293.2 | $ | 287.3 | |||
| Supplemental information: | |||||||
| Dividends received | $ | 2.4 | $ | 4.7 | |||
| Interest paid | 53.6 | 49.4 | |||||
| Interest received | 5.0 | 4.7 | |||||
| Income taxes paid | 26.5 | 26.9 | |||||
Contact Information:
Andrew Arnovitz, Vice President
Investor Relations and Strategy
(514) 734-5760
andrew.arnovitz@cae.com
Media:
Nathalie Bourque, Vice President
Public Affairs and Global Communications
(514) 734-5788
nathalie.bourque@cae.com