Discovery Air announces non-cash impairment charges affecting fiscal year 2014

TORONTO, April 24, 2014 /CNW/ – Discovery Air Inc. (DA.A) (“Discovery Air” or the “Corporation”) announced today that it expects to take non-cash income statement charges in the fourth quarter of fiscal year 2014 of approximately $8.3 million ($6.3 million after tax). The impairment primarily relates to the realization of a $5.2 million loss on the disposal of five aircraft subsequent to year end; a $2.1 million impairment of goodwill and other intangible assets related to the Corporation’s helicopter operations in Chile as a result of its annual intangible asset impairment assessment for each of its business units; and a $0.9 million impairment of other long-lived assets.

Taking these non-cash accounting charges into account, the Corporation expects its net loss for fiscal year 2014 to be in the range of $17 million to $18 million. The Corporation expects to release and file its financial results for fiscal year 2014 on May 1, 2014.

The Corporation does not expect these accounting charges to affect its ongoing business, financial performance or cash flows.