Fourth quarter
• Revenues of $763.4 million, compared with $805.9 million in 2011.
• Margin1 of $52.9 million, compared with $23.5 million before restructuring charge in 2011.
• Net income of $16.6 million, compared with a net loss of $7.3 million in 2011.
• Adjusted after-tax income3 of $28.7 million, compared with $7.3 million in 2011.
• Restatement of 2011 financial statements and those of prior years.
Fiscal year ended October 31, 2012
• Revenues of $3.7 billion, up 1.6% over 2011.
• Margin1 of $17.0 million, compared with $33.0 million before restructuring charge in 2011.
• Goodwill impairment of $15 million, attributable to France operations.
• Net loss of $16.7 million, compared with $14.7 million the previous year.
• Net adjusted after-tax loss3 of $15.3 million, compared with $9.7 million in 2011.
MONTREAL, Dec. 19, 2012 /CNW Telbec/ – Transat A.T. Inc., one of the world’s largest integrated tourism companies and Canada’s holiday travel leader, posted revenues of $763.4 million for the quarter ended October 31, 2012, compared with $805.9 million for the same period of 2011, a decrease of $42.5 million, or 5.3%. The Corporation recorded a margin1 of $52.9 million, compared with $23.5 million before restructuring charge in 2011, and net income after goodwill impairment of $16.6 million ($0.43 per share on a diluted basis), compared with a net loss of $7.3 million ($0.19 per share on a diluted basis) in 2011. Before non-operating items, Transat reported adjusted after-tax income3 of $28.7 million in 2012 ($0.75 per share on a diluted basis), compared with $7.3 million ($0.19 per share on a diluted basis) in 2011.
For the fiscal year ended October 31, 2012, Transat posted revenues of $3.7 billion, an increase of 1.6% versus 2011. The Corporation recorded a margin of$17.0 million, compared with $33.0 million before restructuring charge in 2011, and a net loss of $16.7 million ($0.44 per share on a diluted basis), compared with$14.7 million in 2011 ($0.39 per share on a diluted basis). The net loss posted in 2012 takes into account goodwill impairment of $15 million, attributable to theFrance operations. Before non-operating items, Transat reported an adjusted after-tax loss3 of $15.3 million in 2012 ($0.40 per share on a diluted basis), compared with $9.7 million ($0.26 per share on a diluted basis) in 2011.
“We achieved very good results on the transatlantic market last summer, and in fact it was one of our best-ever summers. Our product, frequencies, destinations and marketing efforts helped us deliver the expected results,” said Jean-Marc Eustache, President and Chief Executive Officer.
Fourth-quarter highlights
The Corporation’s fourth-quarter margin was $52.9 million, versus $23.5 million before restructuring charge in 2011, despite a decline in revenues, which stood at$763.4 million for the quarter, compared with $805.9 million in 2011. The drop in revenues was attributable mainly to the Corporation’s decision to reduce capacity on its transatlantic and Sun destinations markets outbound from Canada and the number of travellers declined by 6.3% as a result. On the transatlantic market, which accounts for a very sizable portion of Transat’s summer-season operations, prices and load factors were superior to those of 2011.
Revenues of North American business units, which are generated by sales inCanada and abroad, decreased by $39.6 million (7.2%) compared with the same period in 2011. The decrease stemmed from a decision made by senior management to reduce marketed capacity. The resulting decrease in traveller numbers allowed the Corporation to raise its average sale prices. North American operations delivered a margin of $55.9 million, versus $8.9 million before restructuring charge in 2011. The improved margin is due mainly to the higher sales prices as well as load factors superior to those recorded in the last quarter of 2011.
Revenues of European business units, which are generated by sales made in Europe and in Canada, decreased by $2.8 million (1.1%) from 2011. The decline is attributable to a weakening of the euro against the dollar, since revenues of the Europe-based units, when expressed in local currencies, actually posted gains compared with 2011. During the quarter, the number of travellers was up slightly. European activities resulted in an operating loss of $3.0 million for the quarter, compared with a margin of $14.6 million before restructuring charge in 2011. The change resulted, in part, from the expiry of the Corporation’s contract withThomas Cook Airways.
Fiscal year highlights
For the fiscal year, the Corporation’s revenues stood at $3.7 billion, an increase of $60.1 million over 2011. Transat recorded a margin of $17.0 million, compared with $33.0 million before restructuring charge in 2011.
Financial position
The Corporation’s free cash totalled $171.2 million as at October 31, 2012, compared with $181.6 million as at October 31, 2011. The working capital ratio was 1.0, versus 0.97 a year earlier, and deposits from customers for future travel amounted to $382.8 million, compared with $348.0 million on the same date the prior year. Off-balance-sheet agreements stood at $557.1 million as at October 31, 2012, compared with $653.7 million as of October 31, 2011; the decrease stems from payments made during the fiscal year.
International Financial Reporting Standards (IFRS)
The consolidated financial statements of the Corporation for the year ended October 31, 2012, were prepared in accordance with International Financial Reporting Standards (“IFRS”). The 2011 comparative figures have been restated to reflect this change. In summary, the adoption of IFRS has had a minor impact on Transat. It decreased the total equity’s carrying value by $25.4 million as at October 31, 2011, compared with the previous Canadian GAAP’s carrying value as at the same date. For the three-month period ended October 31, 2011, the consolidated net loss attributable to shareholders has been reduced by $0.1 million compared to the figures disclosed last year under Canadian GAAP ($0.4 million for the 12-month period). Please see the Management’s Discussion & Analysis for more details.
Restatement of prior-years’ financial statements
The Corporation has restated its financial statements for fiscal 2011 following discovery of a recurring accounting error starting in 2006 within its U.K. subsidiary, which was acquired that year. Amounts received from customers for services not yet rendered were not properly recorded in conformity with the Corporation’s accounting policy in current liabilities under Customer deposits and deferred incomefor fiscal years 2006 to 2011. Accordingly, the Corporation has reduced its retained earnings as at November 1, 2010 by $11.7 million, which is the sum of the annual variance in earnings for the years 2006 to 2010 (the negative variance is$3.1 million in 2006, $3.8 million in 2007, $1.6 million in 2008, $2.1 million in 2009 and $1.1 million in 2010). For the year ended October 31, 2011, the Corporation increased its net loss by $2.9 million or $0.08 per share, from $11.8 million to $14.7 million. On the balance sheet, income taxes receivable as at October 31, 2011have increased by $2.3 million and customer deposits and deferred income has increased by $16.7 million.
Outlook for the first six months
The Canadian Sun destinations market accounts for a substantial portion of Transat’s business during the winter season. With regard to this market, we are early in the season and a significant number of seats remains to be sold, thus the trend toward last-minute bookings and margin volatility make forecasting difficult.
On this market, Transat’s capacity is approximately 10% lower than what was marketed last year. Load factors are similar to those recorded last year at the same date, while average selling prices are higher.
In France, where winter is low season, medium-haul bookings are 30% higher compared to last year at this time, long-haul bookings are down 8% (a reflection of the Corporation’s decision to reduce capacity), and prices are similar in both cases.
On the transatlantic market, Transat’s capacity is approximately 18% lower than that marketed last winter, load factors are similar, and selling prices are higher.
• Revenues of $763.4 million, compared with $805.9 million in 2011.
• Margin1 of $52.9 million, compared with $23.5 million before restructuring charge in 2011.
• Net income of $16.6 million, compared with a net loss of $7.3 million in 2011.
• Adjusted after-tax income3 of $28.7 million, compared with $7.3 million in 2011.
• Restatement of 2011 financial statements and those of prior years.
Fiscal year ended October 31, 2012
• Revenues of $3.7 billion, up 1.6% over 2011.
• Margin1 of $17.0 million, compared with $33.0 million before restructuring charge in 2011.
• Goodwill impairment of $15 million, attributable to France operations.
• Net loss of $16.7 million, compared with $14.7 million the previous year.
• Net adjusted after-tax loss3 of $15.3 million, compared with $9.7 million in 2011.
MONTREAL, Dec. 19, 2012 /CNW Telbec/ – Transat A.T. Inc., one of the world’s largest integrated tourism companies and Canada’s holiday travel leader, posted revenues of $763.4 million for the quarter ended October 31, 2012, compared with $805.9 million for the same period of 2011, a decrease of $42.5 million, or 5.3%. The Corporation recorded a margin1 of $52.9 million, compared with $23.5 million before restructuring charge in 2011, and net income after goodwill impairment of $16.6 million ($0.43 per share on a diluted basis), compared with a net loss of $7.3 million ($0.19 per share on a diluted basis) in 2011. Before non-operating items, Transat reported adjusted after-tax income3 of $28.7 million in 2012 ($0.75 per share on a diluted basis), compared with $7.3 million ($0.19 per share on a diluted basis) in 2011.
For the fiscal year ended October 31, 2012, Transat posted revenues of $3.7 billion, an increase of 1.6% versus 2011. The Corporation recorded a margin of$17.0 million, compared with $33.0 million before restructuring charge in 2011, and a net loss of $16.7 million ($0.44 per share on a diluted basis), compared with$14.7 million in 2011 ($0.39 per share on a diluted basis). The net loss posted in 2012 takes into account goodwill impairment of $15 million, attributable to theFrance operations. Before non-operating items, Transat reported an adjusted after-tax loss3 of $15.3 million in 2012 ($0.40 per share on a diluted basis), compared with $9.7 million ($0.26 per share on a diluted basis) in 2011.
“We achieved very good results on the transatlantic market last summer, and in fact it was one of our best-ever summers. Our product, frequencies, destinations and marketing efforts helped us deliver the expected results,” said Jean-Marc Eustache, President and Chief Executive Officer.
Fourth-quarter highlights
The Corporation’s fourth-quarter margin was $52.9 million, versus $23.5 million before restructuring charge in 2011, despite a decline in revenues, which stood at$763.4 million for the quarter, compared with $805.9 million in 2011. The drop in revenues was attributable mainly to the Corporation’s decision to reduce capacity on its transatlantic and Sun destinations markets outbound from Canada and the number of travellers declined by 6.3% as a result. On the transatlantic market, which accounts for a very sizable portion of Transat’s summer-season operations, prices and load factors were superior to those of 2011.
Revenues of North American business units, which are generated by sales inCanada and abroad, decreased by $39.6 million (7.2%) compared with the same period in 2011. The decrease stemmed from a decision made by senior management to reduce marketed capacity. The resulting decrease in traveller numbers allowed the Corporation to raise its average sale prices. North American operations delivered a margin of $55.9 million, versus $8.9 million before restructuring charge in 2011. The improved margin is due mainly to the higher sales prices as well as load factors superior to those recorded in the last quarter of 2011.
Revenues of European business units, which are generated by sales made in Europe and in Canada, decreased by $2.8 million (1.1%) from 2011. The decline is attributable to a weakening of the euro against the dollar, since revenues of the Europe-based units, when expressed in local currencies, actually posted gains compared with 2011. During the quarter, the number of travellers was up slightly. European activities resulted in an operating loss of $3.0 million for the quarter, compared with a margin of $14.6 million before restructuring charge in 2011. The change resulted, in part, from the expiry of the Corporation’s contract withThomas Cook Airways.
Fiscal year highlights
For the fiscal year, the Corporation’s revenues stood at $3.7 billion, an increase of $60.1 million over 2011. Transat recorded a margin of $17.0 million, compared with $33.0 million before restructuring charge in 2011.
Financial position
The Corporation’s free cash totalled $171.2 million as at October 31, 2012, compared with $181.6 million as at October 31, 2011. The working capital ratio was 1.0, versus 0.97 a year earlier, and deposits from customers for future travel amounted to $382.8 million, compared with $348.0 million on the same date the prior year. Off-balance-sheet agreements stood at $557.1 million as at October 31, 2012, compared with $653.7 million as of October 31, 2011; the decrease stems from payments made during the fiscal year.
International Financial Reporting Standards (IFRS)
The consolidated financial statements of the Corporation for the year ended October 31, 2012, were prepared in accordance with International Financial Reporting Standards (“IFRS”). The 2011 comparative figures have been restated to reflect this change. In summary, the adoption of IFRS has had a minor impact on Transat. It decreased the total equity’s carrying value by $25.4 million as at October 31, 2011, compared with the previous Canadian GAAP’s carrying value as at the same date. For the three-month period ended October 31, 2011, the consolidated net loss attributable to shareholders has been reduced by $0.1 million compared to the figures disclosed last year under Canadian GAAP ($0.4 million for the 12-month period). Please see the Management’s Discussion & Analysis for more details.
Restatement of prior-years’ financial statements
The Corporation has restated its financial statements for fiscal 2011 following discovery of a recurring accounting error starting in 2006 within its U.K. subsidiary, which was acquired that year. Amounts received from customers for services not yet rendered were not properly recorded in conformity with the Corporation’s accounting policy in current liabilities under Customer deposits and deferred incomefor fiscal years 2006 to 2011. Accordingly, the Corporation has reduced its retained earnings as at November 1, 2010 by $11.7 million, which is the sum of the annual variance in earnings for the years 2006 to 2010 (the negative variance is$3.1 million in 2006, $3.8 million in 2007, $1.6 million in 2008, $2.1 million in 2009 and $1.1 million in 2010). For the year ended October 31, 2011, the Corporation increased its net loss by $2.9 million or $0.08 per share, from $11.8 million to $14.7 million. On the balance sheet, income taxes receivable as at October 31, 2011have increased by $2.3 million and customer deposits and deferred income has increased by $16.7 million.
Outlook for the first six months
The Canadian Sun destinations market accounts for a substantial portion of Transat’s business during the winter season. With regard to this market, we are early in the season and a significant number of seats remains to be sold, thus the trend toward last-minute bookings and margin volatility make forecasting difficult.
On this market, Transat’s capacity is approximately 10% lower than what was marketed last year. Load factors are similar to those recorded last year at the same date, while average selling prices are higher.
In France, where winter is low season, medium-haul bookings are 30% higher compared to last year at this time, long-haul bookings are down 8% (a reflection of the Corporation’s decision to reduce capacity), and prices are similar in both cases.
On the transatlantic market, Transat’s capacity is approximately 18% lower than that marketed last winter, load factors are similar, and selling prices are higher.
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