Bombardier Announces Financial Results for the Second Quarter Ended June 30, 2013

August 1, 2013 Montréal Bombardier Inc., Press Release

(All amounts in this press release are in U.S. dollars unless otherwise indicated. This press release contains both IFRS and non-GAAP measures. Non-GAAP measures are defined and reconciled to the most comparable IFRS measures in the Corporation’s MD&A. See Caution regarding Non-GAAP measures at the end of this press release. Comparative figures have been restated. See Accounting and reporting developments in the Corporation’s MD&A.)

Revenues of $4.4 billion, compared to $4.1 billion last fiscal year
EBIT before special items(1) of $257 million, or 5.8% of revenues, compared to $214 million, or 5.2%, last fiscal year
EBIT of $288 million, or 6.5% of revenues, compared to $214 million, or 5.2%, last fiscal year
Adjusted net income(1) of $158 million, compared to $167 million last fiscal year
Adjusted EPS of $0.09, same as last fiscal year
Free cash flow usage(1) of $566 million, compared to a usage of $608 million last fiscal year
Available short-term capital resources of $4.5 billion, including cash and cash equivalents of $3.1 billion as at June 30, 2013, compared to $4.0 billion and $2.6 billion respectively, as at December 31, 2012
Record backlog of $65.5 billion as at June 30, 2013, compared to $64.9 billion as at December 31, 2012
(1) See Caution regarding Non-GAAP measures at the end of this press release.

Bombardier today reported its financial results for the second quarter ended June 30, 2013. Revenues totalled $4.4 billion for the second quarter ended June 30, 2013, compared to $4.1 billion for the same period last fiscal year.

For the second quarter ended June 30, 2013, earnings before financing expense, financing income and income taxes (EBIT) before special items totalled $257 million, or 5.8% of revenues, compared to $214 million, or 5.2%, for the same period last year.

On an adjusted basis, net income amounted to $158 million, or earnings per share (EPS) of $0.09, for the second quarter ended June 30, 2013, compared to $167 million, or EPS of $0.09, for the same period the previous year.

For the three-month period ended June 30, 2013, free cash flow usage (cash flows from operating activities less net additions to property, plant and equipment and intangible assets) totalled $566 million, compared to a usage of $608 million for the same period last year. As at June 30, 2013, available short-term capital resources of $4.5 billion included cash and cash equivalents of $3.1 billion, compared to $4.0 billion and $2.6 billion respectively as at December 31, 2012. The overall backlog reached a record $65.5 billion as at June 30, 2013, compared to $64.9 billion as at December 31, 2012.

“As expected, our second quarter results showed progress in revenues, EBIT and free cash flow,” said Pierre Beaudoin, President and Chief Executive Officer, Bombardier Inc. “Transportation had a good second quarter with increases on all fronts; revenues and free cash flow improved, EBIT margin reached 6.9% and the level of new orders continued strong with a book-to-bill ratio of 1.5.”

“Aerospace also performed well with increased profitability and free cash flow, and a record backlog. The CSeries development is making good progress with some of the major milestones already successfully met; the geared turbofan engines are running smoothly and powering key aircraft systems, and the latest software upgrades continue to be successfully implemented. We’re now in the final testing stage in preparation for first flight in the coming weeks.”

“The outlook for both groups is positive. Our record backlog of $65.5 billion, combined with our significant investments in new products, ensure solid growth in the years to come,” concluded Mr. Beaudoin.

Bombardier Aerospace

Bombardier Aerospace’s revenues amounted to $2.3 billion for the three-month periods ended June 30, 2013 and 2012. EBIT before special items totalled $107 million or 4.7% of revenues for the second quarter ended June 30, 2013, compared to $99 million, or 4.4%, last fiscal year.

Free cash flow usage totalled $459 million (including net addition to property, plant and equipment (PP&E) and intangible assets of $534 million) for the second quarter ended June 30, 2013, compared to a usage of $504 million (including net addition to PP&E and intangible assets of $481 million) for the same period last fiscal year.

Bombardier Aerospace delivered a total of 57 aircraft during the second quarter ended June 30, 2013, compared to 62 for the same period last fiscal year, and received 82 net orders during the second quarter, compared to 146 for the same period last fiscal year.

The Business Aircraft division received significant orders during the second quarter. VistaJet placed an order for 20 Challenger 350 jets, valued at $518 million based on list price, with options for an additional 20, and an undisclosed customer placed an order for 12 Global 8000 jets, valued at $804 million based on list price. In Commercial Aircraft, Ilyushin Finance Co. (IFC) of Russia firmed up an agreement for 32 CS300 aircraft with options for an additional 10. The firm order is valued at $2.6 billion, based on list price.

Bombardier Aerospace’s backlog totalled a record $33.4 billion as at June 30, 2013, compared to $32.9 billion as at December 31, 2012.