NAV CANADA announces second quarter financial results
(Ottawa, April 10, 2015) – NAV CANADA (the “Company”) today released its financial results for the three and six months ended February 28, 2015. During the second quarter air traffic volumes grew by 4.1 per cent compared to the same period in the prior fiscal year.
The Company’s fiscal year runs from September 1 to August 31. In the second quarter of fiscal 2015, the Company achieved strong financial performance as evidenced by its rate stabilization account, finishing with a positive(1) balance of $80 million. When adjusted for rate setting purposes, there is a positive(1) “notional” balance of $98 million in the rate stabilization account, which is equal to its target balance.
“The continuing growth in air traffic is an encouraging sign, and the Company continues to be a global leader in technology development as well as in the provision of safe and efficient air navigation services” said John Crichton, President & CEO.
The Company’s revenue before rate stabilization for the second quarter of fiscal 2015 was $295 million, compared to $281 million in the second quarter of fiscal 2014, mainly due to the growth in air traffic volumes.
Operating expenses before rate stabilization for the second quarter of fiscal 2015 were $270 million as compared to $258 million over the same period in fiscal 2014, mainly due to higher compensation levels, higher pension expense and inflationary increases.
Interest, depreciation and amortization expense before rate stabilization totalled $59 million as compared to $60 million over the same period in fiscal 2014.
Other income before rate stabilization for the second quarter of fiscal 2015 was $nil as compared to $11 million over the same period in fiscal 2014. As at February 28, 2015, the fair value of the Company’s investments in ABCP restructured and non-restructured notes is $278 million on holdings with a face value of $297 million. Of the total fair value variances from face value of $19 million, $18 million is considered recoverable over the terms of the notes.
Based on the above, the Company had an excess of expenses over revenue and other income before rate stabilization of $34 million for the second quarter of fiscal 2015. The second quarter normally has the lowest air traffic levels of the fiscal year. Since our costs are predominantly fixed in nature, an excess of expenses over revenue in this quarter is expected.
The Company’s Financial Statements and Management's Discussion and Analysis for the three and six months ended February 28, 2015 can be found at:
• Financial Statements
• Management’s Discussion and Analysis
NAV CANADA is the country’s private sector civil air navigation services provider. With operations from coast to coast to coast, NAV CANADA provides air traffic control, flight information, weather briefings, aeronautical information services, airport advisory services and electronic aids to navigation.
(1) A positive balance in the rate stabilization account represents a liability on the Company’s balance sheet, reflecting amounts returnable to customers through future customer service charges.
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press release contains certain forward-looking statements that are
subject to important risks and uncertainties. Actual results may differ
materially from the results indicated in these statements for a number
of reasons. NAV CANADA disclaims any intention to update any