Chorus Aviation (CHR) Q3 2024 earnings summary

Executive summary

• Q3 2024 results reflect a strengthening balance sheet, reliable earnings from aviation services, and strong free cash flow of $32.4 million, with progress on the RAL segment sale expected to close by year-end 2024.

• Net income from continuing operations was $19.8 million; adjusted earnings available to common shareholders were $11.9 million.

• Focus is shifting to share price, shareholder returns, and strengthening core businesses, with a renewed NCIB announced.

Financial highlights

• Adjusted EBITDA for Q3 was $53.9 million, with year-to-date at $158.9 million.

• Free cash flow for Q3 was $32.4 million, and $91.3 million for the nine months.

• Adjusted earnings per share from continuing operations was $0.06 for the quarter; pro forma adjusted EPS would be $0.08 for Q3 and $0.25 year-to-date, reflecting the RAL sale.

Outlook and guidance

• The RAL segment sale is on track to close by year-end 2024, expected to eliminate $1.7 billion in financings and substantially all corporate debt.

• Pro forma leverage ratio is projected at 1.5, down from the current 3.0, providing significant financial flexibility.

• Jazz’s fixed margin under the CPA is forecasted at $60.9 million for 2024, $59.6 million for 2025, and $43.9 million for 2026.

• Voyager revenue growth is expected to continue through Q4 and into 2025.