CAE (NYSE: CGT)(TSX: CAE)
- Annual revenue increased 17% to C$1.66 billion
- Annual net earnings increased 31% to C$199 million
- Record military orders of C$1.1 billion and civil orders of
C$847 million contributed to consolidated backlog of C$3.2
billion
- Measures introduced to strengthen CAE's future position and to
size company to market conditions
CAE (NYSE: CGT)(TSX: CAE) today reported financial results for
the fourth quarter and fiscal year ended March 31, 2009. Earnings
from continuing operations were $51.3 million ($0.20 per share)
this quarter, compared to $47.0 million ($0.18 per share) in the
fourth quarter of last year. Earnings from continuing operations
for the year were $200.5 million ($0.79 per share) compared to
$164.8 million ($0.65 per share) last year. All financial
information is in Canadian dollars.
Summary of consolidated results
(amounts in millions,
except operating
margins) FY2009 FY2008 Q4-2009 Q3-2009
-------------------------------------------------------------------------
Revenue $ 1,662.2 1,423.6 438.8 424.6
Earnings before
interest and income
taxes (EBIT) $ 303.6 251.5 78.1 78.7
As a % of revenue % 18.3 17.7 17.8 18.5
Earnings from
continuing
operations $ 200.5 164.8 51.3 53.3
Results from
discontinued
operations $ (1.1) (12.1) - -
Net earnings $ 199.4 152.7 51.3 53.3
Backlog $ 3,181.8 2,899.9 3,181.8 2,942.8
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(amounts in millions,
except operating
margins) Q2-2009 Q1-2009 Q4-2008
----------------------------------------------------------
Revenue $ 406.7 392.1 366.6
Earnings before
interest and income
taxes (EBIT) $ 75.5 71.3 69.7
As a % of revenue % 18.6 18.2 19.0
Earnings from
continuing
operations $ 48.9 47.0 47.0
Results from
discontinued
operations $ (0.2) (0.9) (11.4)
Net earnings $ 48.7 46.1 35.6
Backlog $ 2,741.8 2,847.9 2,899.9
----------------------------------------------------------
----------------------------------------------------------
Consolidated revenue this quarter was $438.8 million compared to
$366.6 million in the fourth quarter last year. Consolidated
revenue for the year was $1.66 billion, compared to $1.42 billion
in 2008.
Net earnings, including the impact of discontinued operations,
were $51.3 million in the fourth quarter and $199.4 million for the
year.
Fourth-quarter consolidated earnings before interest and
taxes(1) (EBIT) were $78.1 million, or 17.8% of revenue. EBIT for
the year was $303.6 million, or 18.3% of revenue compared with
$251.5 million last year, or 17.7% of revenue.
"CAE delivered a strong performance this past fiscal year
because we successfully executed our diversification strategy and
maintained our financial discipline." said Robert E. Brown, CAE's
President and Chief Executive Officer. "The impact of the aerospace
market downturn to date has been mitigated by our geographic
diversification, our backlog of civil orders from the past few
years, and from the portion of our business that is defence
related. For the first time in our history, military orders
exceeded $1 billion.
During the past five years we have been unrelenting in our
pursuit of diversification, innovation and productivity. We have
made good progress and succeeded to overcome a number of major
challenges. Marc Parent, Executive Vice President and COO, has
recently led a comprehensive corporate review to identify
additional opportunities for synergies among our four business
units and within our global structure. We are now implementing a
series of organizational changes which will make CAE even more
competitive by bringing its senior people closer to our customers
while increasing efficiency. Concurrent with this initiative, we
are taking further actions required to size the company to current
and expected market conditions.
In order to better serve our customers, we are refining our
business structure to create a leaner, more regionally accountable
organization that will compete even more effectively in the market.
We are placing greater responsibility within our regions to reduce
costs and to provide more decision-making capabilities to those
closest to our customers. This reorganization provides a more
efficient management structure that derives synergies through
shared services for engineering, manufacturing and support
functions. We are consolidating the leadership of our two civil
business segments to provide customers with a single portfolio of
solutions.
Aerospace companies are facing extraordinary challenges and CAE
is being tested as well. Our military business has never been
stronger but we expect civil orders to decline in the current
context. As a result, we are taking exceptional actions which will
be concentrated in two phases - the first of which is already
underway. Overall, we will be laying off 700 of our 7,000
employees, which represents 10 percent of our workforce: 380 in the
coming weeks and the balance in the fall. All employees affected
will be advised in the coming days. Approximately 600 out of the
700 employees affected are based in Montreal where we produce our
civil simulators. The rest are based in our other locations around
the world. Included in the layoffs are 70 management positions.
We regret the hardship this will cause those affected and we are
grateful to all of our employees for their dedication. We intend to
do what we can to help them through this difficult period. We
estimate a restructuring expense of approximately $34 million for
both phases to be recorded in the first quarter of fiscal year
2010.
We are implementing cost-containment measures that will allow us
to secure other jobs. Effective immediately, management and most
other employees globally will be subject to a salary freeze and
will have five mandatory furlough days over the current fiscal
year. We have also introduced new limits on overtime, and we are
offering early retirement incentives to qualifying employees.
These initiatives will allow us to substantially offset the cost
of the reorganization this year and we expect annualized recurring
cost savings of about $15 million going forward.
Change is part of our culture and CAE's employees have a proven
ability to adapt. We have a well diversified base and a sound
financial structure, and now we have a plan to manage the downturn
while still delivering value to shareholders. Our reorganization
will position us to take advantage of the eventual upturn in the
civil market and to emerge even stronger when the market
recovers."
Business segment highlights
With more than $544 million of military orders in the fourth
quarter alone, we concluded the fiscal year with record order
activity in our military segments. Military orders totaled $1.09
billion and represented the largest annual military order intake in
CAE's history. Key contract awards included the Government of
Canada C-130J aircrew training, a contract extension with the
Commonwealth of Australia for training support services and a
contract to develop Hawk 128 full-mission simulators for the U.K.'s
Military Flying Training System (MFTS) program. As well, we won a
series of contracts with the U.S. Navy for MH-60S/R simulators.
Fiscal year 2009 also marked for CAE and our partners the
inauguration of NH90 helicopter training at the German Army
Aviation School in Bueckeburg.
In Training and Services/Civil we secured training and services
contracts valued at approximately $464 million and succeeded in
growing our average RSEUs (Revenue Simulator Equivalent Units) by
approximately 10% year over year. RSEUs were 118 for the fiscal
year and 123 for the fourth quarter. With simulator builds and
deployments already in progress, we expect a further 10% increase
in average annual RSEUs by the end of fiscal 2010 as we develop a
critical mass of simulator types to target the already installed
base of aircraft.
We won orders for four civil full-flight simulators (FFSs)
during the fourth quarter, bringing the total number for the fiscal
year to 34. Since the start of the new fiscal year we have
announced two FFS sales. We currently expect to receive
approximately 20 orders for fiscal year 2010 and will update this
figure as the year progresses and market conditions become clearer.
We continued to have success with our breakthrough CAE 5000
full-flight simulator with sales to Aeroflot Russian Airlines,
Avianca Airlines of Columbia, Sofia Flight Training of Bulgaria,
the Zhuhai Flight Training Centre in China and the Embraer CAE
Training Services joint venture.
At the end of the fourth quarter we reaffirmed our commitment to
technological leadership with the announcement of Project Falcon, a
five-year investment plan for up to $714 million for research and
development, which is expected to maintain or create approximately
1,000 high-value jobs over the next five years.
Civil segments
Training & Services/Civil (TS/C)
Financial results
(amounts in millions,
except operating
margins, RSEU and
FFSs deployed)
FY2009 FY2008 Q4-2009 Q3-2009
-------------------------------------------------------------------------
Revenue $ 460.5 382.1 121.4 120.9
Segment operating
income $ 85.1 73.5 23.7 21.6
Operating margins % 18.5 19.2 19.5 17.9
Backlog $ 1,006.4 963.3 1,006.4 1,036.0
RSEU 118 108 123 118
FFSs deployed 141 124 141 135
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(amounts in millions,
except operating
margins, RSEU and
FFSs deployed) Q2-2009 Q1-2009 Q4-2008
-----------------------------------------------------------
Revenue $ 108.0 110.2 104.5
Segment operating
income $ 19.1 20.7 23.8
Operating margins % 17.7 18.8 22.8
Backlog $ 907.6 932.7 963.3
RSEU 118 114 110
FFSs deployed 133 132 124
-----------------------------------------------------------
-----------------------------------------------------------
Fourth quarter revenue in the TS/C segment increased 16% over
the same period last year. Good operational performance, the
deployment of additional RSEUs to our network and results from
acquired companies, Sabena Flight Academy and Academia Aeronautica
de Evora S.A. mainly explain the increase. As well, the weaker
Canadian dollar against our main operating currencies helped to
offset market pressures in North America and preliminary
indications of softness in Europe.
Revenue for the year was up 21% to $460.5 million.
Segment operating income was $23.7 million (19.5% of revenue) in
the fourth quarter, compared to $21.6 million (17.9% of revenue)
last quarter and $23.8 million (22.8% of revenue) in the fourth
quarter last year. We made further progress integrating Sabena
Flight Academy and continued to ramp-up our North East and Burgess
Hill training centres. These gains were partially offset by market
pressure in North America.
For the year, segment operating income increased 16% to $85.1
million (18.5% of revenue), compared to $73.5 million (19.2% of
revenue) last year.
New orders for the year totalled $463.7 million, and segment
backlog reached $1,006.4 million. The book-to-sales ratio was
1.01x.
Simulation Products/Civil (SP/C)
Financial results
(amounts in millions,
except operating
margins) FY2009 FY2008 Q4-2009 Q3-2009
-------------------------------------------------------------------------
Revenue $ 477.5 435.3 107.3 119.3
Segment operating
income $ 92.1 94.9 18.5 22.8
Operating margins % 19.3 21.8 17.2 19.1
Backlog $ 288.2 381.8 288.2 359.5
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(amounts in millions,
except operating
margins) Q2-2009 Q1-2009 Q4-2008
-----------------------------------------------------------
Revenue $ 114.3 136.6 106.5
Segment operating
income $ 23.4 27.4 23.8
Operating margins % 20.5 20.1 22.3
Backlog $ 343.4 373.2 381.8
-----------------------------------------------------------
-----------------------------------------------------------
Revenue in the SP/C segment was $107.3 million during the fourth
quarter, stable compared to the same period last year. Revenue for
the year reached $477.5 million, an increase of 10% over the prior
year. We delivered 38 FFSs to our customers in fiscal year 2009
compared to 29 in 2008.
Segment operating income was $18.5 million (17.2% of revenue) in
the fourth quarter, down by 22% over the same period last year. We
had a $2.2 million charge resulting from a hedging instrument that
was unwound following the termination of a contract with a
customer. As well, the weaker Canadian dollar resulted in higher
costs on U.S. dollar and euro-denominated content.
For the year, segment operating income was $92.1 million (19.3%
of revenue), $2.8 million lower than last year as a result of the
higher costs noted above and a lower contribution from our research
and development cost-sharing program Project Phoenix.
During the year, we received orders for 34 civil FFSs. Orders
for the year totalled $383.2 million, and segment backlog reached
$288.2 million.
Military segments
Revenue in the fourth quarter for our combined Military business
was $210.1 million and operating income was $35.9 million,
resulting in an operating margin of 17.1%.
Combined revenue for the year was $724.2 million and operating
income was $126.4 million, resulting in an operating margin of
17.5%.
Combined new orders totaled a record $1,093.3 million, up 47%
compared to $746.1 million booked in fiscal 2008. For the year, the
book-to-sales ratio was 1.51x.
Simulation Products/Military (SP/M)
Financial results
(amounts in millions,
except operating
margins) FY2009 FY2008 Q4-2009 Q3-2009
-------------------------------------------------------------------------
Revenue $ 483.5 383.7 143.6 125.5
Segment operating
income $ 87.7 51.7 26.8 25.7
Operating margins % 18.1 13.5 18.7 20.5
Backlog $ 893.0 765.1 893.0 714.0
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(amounts in millions,
except operating
margins) Q2-2009 Q1-2009 Q4-2008
-----------------------------------------------------------
Revenue $ 126.0 88.4 101.5
Segment operating
income $ 21.6 13.6 14.5
Operating margins % 17.1 15.4 14.3
Backlog $ 705.6 752.6 765.1
-----------------------------------------------------------
-----------------------------------------------------------
Revenue in the SP/M segment was $143.6 million in the fourth
quarter, up by 41% year over year. The increase comes mainly from a
higher level of activity on a number of our simulator contracts
awarded in fiscal 2009 - most notably on our various NH90 programs
- combined with the positive impact of a lower Canadian dollar.
Revenue for the year was $483.5 million, up 26% because of
higher activity levels on helicopter and transport aircraft
programs.
Segment operating income this quarter was $26.8 million (18.7%
of revenue), up 85% year over year.
Segment operating income for the year was $87.7 million (18.1%
of revenue), up 70% year over year.
Improvements in both periods are the result of increased
activity, higher contributions to R&D from Project Phoenix in
keeping with higher business volume, higher investment tax credits,
and our attainment of milestones on several NH-90 programs.
New orders for the year totalled $599.4 million and segment
backlog reached $893.0 million at the end of the year, for a
book-to-sales ratio of 1.24x.
Training & Services/Military (TS/M)
Financial results
(amounts in millions,
except operating
margins) FY2009 FY2008 Q4-2009 Q3-2009
-------------------------------------------------------------------------
Revenue $ 240.7 222.5 66.5 58.9
Segment operating
income $ 38.7 31.4 9.1 8.6
Operating margins % 16.1 14.1 13.7 14.6
Backlog $ 994.2 789.7 994.2 833.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(amounts in millions,
except operating
margins) Q2-2009 Q1-2009 Q4-2008
-----------------------------------------------------------
Revenue $ 58.4 56.9 54.1
Segment operating
income $ 11.4 9.6 7.6
Operating margins % 19.5 16.9 14.0
Backlog $ 785.2 789.4 789.7
-----------------------------------------------------------
-----------------------------------------------------------
Revenue in the TS/M segment was $66.5 million for the fourth
quarter, up by 23% year over year.
Revenue for the year in the TS/M segment was $240.7 million, up
by 8% over last year.
We had a high level of activity this year in our Professional
Services business and from the SE Core program in the U.S. As well,
we benefitted from the lower Canadian dollar against the euro and
the U.S. dollar, which was partially offset by the weakness of the
British pound.
Segment operating income was $9.1 million this quarter, up 20%
from the same period last year as we had higher volume and better
margins on some maintenance service contracts. We also received a
$1.2 million dividend from a U.K.-based investment, which was not
received during the fourth quarter of fiscal 2008. This dividend is
recurring but is not necessarily received during the same fiscal
quarter.
Segment operating income for the year was $38.7 million, 23%
higher than last year as a result of the benefits described
above.
New orders this year totalled $493.9 million and segment backlog
reached $994.2 million at the end of the year. The book-to-sales
ratio was 2.05x.
Cash flow and financial position
This year we generated $195.5 million of net cash from
continuing operations. We invested $54.5 million in maintenance
capital expenditures, and paid cash dividends of $29.6 million. As
a result, we generated free cash flow(2) of $106.4 million. This is
$55.9 million lower than last year as a result of higher investment
in non-cash working capital (up $78.9 million) and higher dividends
(up 19.8 million) to shareholders.
Inventory has increased by $104.3 million due to the growth of
unbilled sales.
Total capex in FY2009 was $203.7 million of which $149.2 million
was for investment in growth capital expenditures. We expect total
capital expenditures in fiscal year 2010 to be approximately $150
million.
Net debt(3) was $285.1 million at March 31, 2009, up $161
million from last year mainly from lower cash before proceeds and
repayment of long-term debt and the depreciation of the Canadian
dollar against our foreign-denominated debt.
CAE will pay a dividend of $0.03 per share on June 30, 2009 to
shareholders of record at the close of business on June 15,
2009.
Additional consolidated financial results
Orders and backlog
The consolidated backlog was $3.182 billion at the end of this
year, compared to $2.900 billion at the end of last year. New
orders of $1.940 billion were added to backlog, offset by $1.662
billion in revenue generated from backlog.
Income taxes
Income taxes were $82.9 million this year, representing an
effective tax rate of 29%. This is lower than the 30% rate the year
prior because of the mix of income we generated in various
jurisdictions. We expect the effective income tax rate for fiscal
2010 to be approximately 31%.
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 financial statements which are posted
on our website at www.cae.com/Q4FY09.
CAE's audited annual financial statements and management's
discussion and analysis for the year ended March 31, 2009 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
CAE will host a conference call today at 12:30 p.m. EST for
analysts, institutional investors and the media. North American
participants can listen to the conference by dialing
+1-866-540-8136 or +1-514-868-1042. Overseas participants can dial
+800-9559-6849 or +1-514-868-1042. The conference call will also be
audio Webcast live for the public at www.cae.com.
CAE is a world leader in providing simulation and modelling
technologies and integrated training solutions for the civil
aviation industry and defence forces around the globe. With annual
revenues exceeding C$1.6 billion, CAE employs approximately 7,000
people at more than 75 sites and training locations in 20
countries. We have the largest installed base of civil and military
full-flight simulators and training devices. More than 75,000
crewmembers train yearly in our global network of 27 civil aviation
and military training centres. We also offer modelling and
simulation software to various market segments and through CAE's
professional services division, we assist customers with a wide
range of simulation-based needs.
Certain statements made in this news release, including, but not
limited to, statements that are not historical facts, are
forward-looking and are subject to important risks, uncertainties
and assumptions. The results or events predicted in these
forward-looking statements may differ materially from actual
results or events. These statements do not reflect the potential
impact of any non-recurring or other special items or events that
are announced or completed after the date of this news release,
including mergers, acquisitions, or other business combinations and
divestitures.
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,
2008. 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). You will also find on our web site the English
MD&A for the fiscal year 2009. The forward-looking statements
contained in this news release represent our expectations as of May
14, 2009 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) Earnings before interest and taxes (EBIT) is a non-GAAP
measure that shows us how we have performed before the effects of
certain financing decisions and tax structures. We track EBIT
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) Free cash flow is a non-GAAP measure that tells 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 and dividends paid.
Dividends are deducted in the calculation of free cash flow because
we consider them an obligation, like interest on debt, which means
that amount is not available for other uses.
(3) 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 (debt that matures in more than one year), including the
current portion, and subtracting cash and cash equivalents.
Consolidated Balance Sheets
(Unaudited)
As at March 31
(amounts in millions of Canadian dollars) 2009 2008
-------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $195.2 $255.7
Accounts receivable 322.4 255.0
Inventories 334.2 229.9
Prepaid expenses 31.3 32.7
Income taxes recoverable 11.5 39.0
Future income taxes 5.3 14.1
-------------------------------------------------------------------------
$899.9 $826.4
Property, plant and equipment, net 1,302.4 1,046.8
Future income taxes 86.0 64.3
Intangible assets 77.1 62.0
Goodwill 159.1 115.5
Other assets 151.6 138.2
-------------------------------------------------------------------------
$2,676.1 $2,253.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued liabilities $540.4 $482.7
Deposits on contracts 203.8 209.3
Current portion of long-term debt 125.6 27.3
Future income taxes 20.9 16.8
-------------------------------------------------------------------------
$890.7 $736.1
Long-term debt 354.7 352.5
Deferred gains and other long-term liabilities 185.6 184.9
Future income taxes 40.0 31.2
-------------------------------------------------------------------------
$1,471.0 $1,304.7
-------------------------------------------------------------------------
Shareholders' equity
Capital stock $430.2 $418.9
Contributed surplus 10.1 8.3
Retained earnings 813.3 644.5
Accumulated other comprehensive loss (48.5) (123.2)
-------------------------------------------------------------------------
$1,205.1 $948.5
-------------------------------------------------------------------------
$2,676.1 $2,253.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statements of Earnings
(Unaudited)
(amounts in millions of Three months ended Twelve months ended
Canadian dollars, except March 31 March 31
per share amounts) 2009 2008 2009 2008
-------------------------------------------------------------------------
Revenue $438.8 $366.6 $1,662.2 $1,423.6
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings before
interest and
income taxes $78.1 $69.7 $303.6 $251.5
Interest expense, net 5.1 4.7 20.2 17.5
-------------------------------------------------------------------------
Earnings before
income taxes $73.0 $65.0 $283.4 $234.0
Income tax expense 21.7 18.0 82.9 69.2
-------------------------------------------------------------------------
Earnings from
continuing operations $51.3 $47.0 $200.5 $164.8
Results of discontinued
operations - (11.4) (1.1) (12.1)
-------------------------------------------------------------------------
Net earnings $51.3 $35.6 $199.4 $152.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic earnings per
share from continuing
operations $0.20 $0.19 $0.79 $0.65
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Diluted earnings per
share from continuing
operations $0.20 $0.18 $0.79 $0.65
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic and diluted
earnings per share $0.20 $0.14 $0.78 $0.60
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average number
of shares outstanding
(basic) 254.9 253.9 254.8 253.4
-------------------------------------------------------------------------
Weighted average number
of shares outstanding
(diluted)(1) 254.9 254.9 255.0 254.6
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) For the three months ended March 31, 2009, the effect of stock options
potentially exercisable was anti-dilutive; therefore, the basic and
diluted weighted average number of shares outstanding are the same.
Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
Year ended March 31, 2009
(amounts in millions of Canadian dollars, except number of shares)
--------------------------------------------------------------------------
Accumulated
Common Other Total
Number Shares Contri- Comprehen- Share-
of Stated buted Retained sive holders'
Shares Value Surplus Earnings Loss Equity
--------------------------------------------------------------------------
Balances,
beginning
of year 253,969,836 $418.9 $8.3 $644.5 $(123.2) $948.5
Stock options
exercised 1,077,200 9.3 - - - 9.3
Transfer upon
exercise of
stock options - 1.0 (1.0) - - -
Stock dividends 99,407 1.0 - (1.0) - -
Stock-based
compensation - - 2.8 - - 2.8
Net earnings - - - 199.4 - 199.4
Dividends - - - (29.6) - (29.6)
Other
comprehensive
income - - - - 74.7 74.7
--------------------------------------------------------------------------
Balances,
end of
year 255,146,443 $430.2 $10.1 $813.3 $(48.5) $1,205.1
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(Unaudited)
Year ended March 31, 2008
(amounts in millions of Canadian dollars, except number of shares)
--------------------------------------------------------------------------
Accumulated
Common Other Total
Number Shares Contri- Comprehen- Share-
of Stated buted Retained sive holders'
Shares Value Surplus Earnings Loss Equity
--------------------------------------------------------------------------
Balances,
beginning
of year 251,960,449 $401.7 $5.7 $510.2 $(87.7) $829.9
Shares issued 169,851 0.8 - - - 0.8
Stock options
exercised 1,814,095 13.9 - - - 13.9
Transfer upon
exercise of
stock options - 2.2 (2.2) - - -
Stock dividends 25,441 0.3 - (0.3) - -
Stock-based
compensation - - 4.8 - - 4.8
Cumulative effect
of implementing
accounting
standards - - - (8.3) (3.5) (11.8)
Net earnings - - - 152.7 - 152.7
Dividends - - - (9.8) - (9.8)
Other
comprehensive
loss - - - - (32.0) (32.0)
--------------------------------------------------------------------------
Balances,
end of
year 253,969,836 $418.9 $8.3 $644.5 $(123.2) $948.5
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Consolidated Statements of Comprehensive Income
(Unaudited) Three months ended Twelve months ended
(amounts in millions March 31 March 31
of Canadian dollars) 2009 2008 2009 2008
-------------------------------------------------------------------------
Net earnings $51.3 $35.6 $199.4 $152.7
Other comprehensive
income (loss), net
of income taxes:
Foreign currency
translation adjustment
Net foreign exchange
gains (losses) on
translation of financial
statements of self-
sustaining foreign
operations $18.0 $63.7 $113.3 $(50.2)
Net change in (losses)
gains on certain
long-term debt
denominated in foreign
currency and designated
as hedges on net
investments of self-
sustaining foreign
operations (1.2) (1.3) (7.7) 15.7
Reclassifications
to income - - (1.9) -
Income tax adjustment (1.0) (1.2) (1.3) (0.6)
-------------------------------------------------------------------------
$15.8 $61.2 $102.4 $(35.1)
-------------------------------------------------------------------------
Net changes in cash
flow hedge
Net change in (losses)
gains on derivative
items designated as
hedges of cash flows $(11.5) $(14.1) $(48.8) $29.7
Reclassifications to
income or to the
related non-financial
assets or liabilities 5.8 (6.3) 10.4 (25.2)
Income tax adjustment 0.3 6.6 10.7 (1.4)
-------------------------------------------------------------------------
$(5.4) $(13.8) $(27.7) $3.1
-------------------------------------------------------------------------
Total other
comprehensive income
(loss) $10.4 $47.4 $74.7 $(32.0)
-------------------------------------------------------------------------
Comprehensive income $61.7 $83.0 $274.1 $120.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statement of Accumulated Other Comprehensive Loss
(Unaudited)
as at and for the year Foreign Accumulated
ended March 31, 2009 Currency Other
(amounts in millions of Translation Cash Flow Comprehensive
Canadian dollars) Adjustment Hedge Loss
--------------------------------------------------------------------------
Balance in accumulated other
comprehensive loss at beginning
of year $(122.8) $(0.4) $(123.2)
Details of other
comprehensive loss:
Net change in gains (losses) 105.6 (48.8) 56.8
Reclassifications to income
or to the related non-financial
assets or liabilities (1.9) 10.4 8.5
Income tax adjustment (1.3) 10.7 9.4
--------------------------------------------------------------------------
Total other comprehensive income
for the year $102.4 $(27.7) $74.7
--------------------------------------------------------------------------
Balance in accumulated other
comprehensive loss at end of year $(20.4) $(28.1) $(48.5)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Consolidated Statements of Cash Flows
(Unaudited) Three months ended Twelve months ended
(amounts in millions March 31 March 31
of Canadian dollars) 2009 2008 2009 2008
-------------------------------------------------------------------------
Operating activities
Net earnings $51.3 $35.6 $199.4 $152.7
Results of discontinued
operations - 11.4 1.1 12.1
-------------------------------------------------------------------------
Earnings from continuing
operations $51.3 $47.0 $200.5 $164.8
Adjustments to reconcile
earnings to cash flows
from operating
activities:
Depreciation 18.3 15.1 71.3 60.6
Financing cost
amortization 0.2 0.2 0.8 0.8
Amortization and write
down of intangible and
other assets 6.7 4.2 19.7 16.9
Future income taxes (7.6) (3.7) 8.0 26.4
Investment tax credits 9.3 5.6 19.9 15.4
Stock-based
compensation plans 4.0 (1.1) (11.5) (0.8)
Employee future
benefits, net 0.2 0.4 0.4 0.1
Amortization of other
long-term liabilities (2.7) (1.1) (9.6) (6.8)
Other (3.9) (8.9) (9.4) (0.8)
Changes in non-cash
working capital (4.6) 73.2 (94.6) (15.7)
-------------------------------------------------------------------------
Net cash provided by
operating activities $71.2 $130.9 $195.5 $260.9
-------------------------------------------------------------------------
Investing activities
Business acquisitions
(net of cash and cash
equivalents acquired) $(2.4) $(1.1) $(41.5) $(41.8)
Capital expenditures (62.8) (48.3) (203.7) (189.5)
Deferred development
costs (3.1) (2.6) (10.5) (16.5)
Deferred pre-operating
costs 0.5 (3.0) (1.8) (3.9)
Other (2.0) (1.2) (5.0) (5.5)
-------------------------------------------------------------------------
Net cash used in
investing activities $(69.8) $(56.2) $(262.5) $(257.2)
-------------------------------------------------------------------------
Financing activities
Net borrowing under
revolving unsecured
credit facilities $- $(30.0) $- $-
Proceeds from long-term
debt, net of transaction
costs and debt basis
adjustment 11.2 16.0 50.3 141.1
Reimbursement of
long-term debt (5.1) (16.5) (27.8) (37.4)
Dividends paid (7.6) (2.4) (29.6) (9.8)
Common stock issuance 0.9 0.2 9.3 13.9
Other (4.3) (0.1) (13.4) (5.9)
-------------------------------------------------------------------------
Net cash (used in)
provided by financing
activities $(4.9) $(32.8) $(11.2) $101.9
-------------------------------------------------------------------------
Effect of foreign
exchange rate changes
on cash and cash
equivalents $0.9 $12.8 $17.7 $(0.1)
-------------------------------------------------------------------------
Net (decrease) increase
in cash and cash
equivalents $(2.6) $54.7 $(60.5) $105.5
Cash and cash
equivalents at
beginning of period 197.8 201.0 255.7 150.2
-------------------------------------------------------------------------
Cash and cash
equivalents at end
of period $195.2 $255.7 $195.2 $255.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contacts: Media contact: CAE Nathalie Bourque, Vice President
Public Affairs and Global Communications 514-734-5788
nathalie.bourque@cae.com Investor relations: CAE Andrew Arnovitz,
Vice President Investor Relations and Strategy 514-734-5760
andrew.arnovitz@cae.com
Cae (NYSE:CGT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cae (NYSE:CGT)
Historical Stock Chart
From Apr 2023 to Apr 2024
