(Ottawa, January 9, 2019) – NAV
CANADA today released its financial results for the three months ended November
In the first quarter of
fiscal 2019, NAV CANADA experienced positive financial performance as evidenced
by its rate stabilization account balance of $128 million(1) which reflected a planned reduction of $5 million from August
31, 2018, but still grew by $4 million in the quarter. The Company had positive
free cash flow(2) of $6 million and ended the quarter with cash of $44 million.
The Company’s revenue for the first quarter
of fiscal 2019 was $357 million, compared to $347 million over the same period
in fiscal 2018, mainly due to a year-to-date 3.5 per cent growth in air traffic
volumes. Revenues for the three months ended November 30, 2018 reflect the
revised customer service charges, whereby existing base rates decreased by an
average of 0.4 per cent on September 1, 2018. This effectively continues the
0.4 per cent one-year temporary rate reduction that was implemented on
September 1, 2017.
performance in the first quarter of fiscal 2019 has allowed us to continue to
carry on with our planned investments in our technology, facilities and in our
people” said Neil Wilson, President and CEO. “We continue our work of
implementing innovative technologies that improve the safe operation of
Canadian controlled airspace and look forward to going live with space-based
surveillance technology in our air traffic control operations for both domestic
and North Atlantic oceanic airspace at the end of March 2019.”
are also delighted that for the third year in a row the Company has obtained a
spot on Canada’s Top 100 Employers list” said Mr. Wilson. “It reflects our
commitment to making NAV CANADA a great place to work and to ensuring we have
an engaged workforce.”
Operating expenses for the first quarter of
fiscal 2019 were $348 million as compared to $340 million over the same period
in fiscal 2018, mainly due to higher compensation costs.
Net other income and expenses for the first
quarter of fiscal 2019 was a net expense of $17 million as compared to a net
expense of $18 million over the same period in fiscal 2018, primarily due to lower
net interest costs relating to employee benefits partially offset by lower
foreign exchange gains in the first quarter of fiscal 2019.
The Company had a net loss (before net
movement in regulatory deferral accounts including rate stabilization) of $8
million in the first quarter of fiscal 2019 as compared to a net loss of $11
million for the first quarter of fiscal 2018.
The Company is subject to legislation that
regulates its approach to setting charges. The timing of the recognition of
certain revenue and expenses recovered through charges is recorded through
movements in regulatory deferral accounts. The net movement in regulatory
deferral accounts for the first quarter of fiscal 2019 was income of $6 million
as compared to income of $14 million over the same period in fiscal 2018. This
change in regulatory deferrals is due to deferrals of higher favourable results
through rate stabilization adjustments of $7 million offset by a $1 million net
decrease in regulatory deferral adjustments to reflect certain transactions in
the periods in which they will be considered for rate setting.
The Company’s Financial Statements and
Management's Discussion and Analysis for the three months ended November 30,
2018 can be found at:
About NAV CANADA
NAV CANADA is a private, not-for-profit
company, established in 1996, providing air traffic control, airport advisory
services, weather briefings and aeronautical information services for more than
18 million square kilometres of Canadian domestic and international airspace.
The Company is internationally recognized for its safety record, and technology
innovation. Air traffic management systems developed by NAV CANADA are used by
air navigation service providers in countries worldwide.
NAV CANADA is a partner of Aireon LLC, an international joint venture deploying
a space based Automatic Dependent Surveillance-Broadcast (ADS-B) system that
will expand air traffic surveillance to all regions of the globe.
A positive balance in the rate
stabilization account represents a regulatory credit balance on the Company’s
statement of financial position, reflecting amounts returnable to customers
through future customer service charges.
Free cash flow is a non-GAAP
financial measure used by the Company to enhance the overall understanding of
its financial and operating performance. Non-GAAP financial measures do not
have any standardized meaning prescribed by IFRS and therefore may not be
comparable to similar measures presented by other issuers. The Company defines
free cash flow as cash generated from operations, less capital expenditures and
investments in Aireon LLC and equity related investments. Management places
importance on this indicator as it assists in measuring the impact of its
investment program on the Company’s financial resources.
For further information, please contact:
National Manager, Media Relations
Information Line: 1-888-562-8226
This 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