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All amounts in this press release are in U.S. dollars unless otherwise indicated.
Amounts in tables are in millions, unless otherwise indicated.
MONTRÉAL, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Bombardier (TSX: BBD.B) announced today its financial results for the third quarter of 2022, marked by solid revenues, a significant improvement in adjusted EBITDA(2), continued positive free cash flow(2) generation and a growing backlog that reflects strong order activity. The company also continued to reduce debt, with a further $100 million(5) reduction through cash on balance sheet. Order activity continued to be strong, marked with an increase in backlog and a unit book-to-bill(4) of 1.3.
“Our performance in the third quarter of 2022 demonstrated that our fundamentals are very strong, especially when it comes to profitability, free cash flow(2), liquidity, as well as continued and steady debt reduction from our balance sheet. We are progressing steadily and confidently toward our long-term objectives,” said Éric Martel, President and Chief Executive Officer of Bombardier.
Solid Financial Performance from Operations in Third Quarter of 2022
Revenues were at $1.5 billion in the third quarter of 2022, with full-year deliveries on track for more than 120 aircraft(1). These include a 20% year-over-year increase in aftermarket revenues, which rose to $372 million, thanks to increase in flight hours, but also to the expansion of Bombardier’s service centres in strategic locations around the world.
“Our most recent service centre inauguration in Florida strongly emphasizes the important contribution of the growing aftermarket business to our bottom line,” said Martel. “With the addition and expansions this year of our service centres and one more inauguration event to come in the United Kingdom this month, we have increased our service centre footprint by no less than 1 million square feet.”
The company has also seen an impressive margin expansion over the quarter, with adjusted EBITDA(2) rising to $210 million, which represents a 48% year-over-year improvement. Adjusted EBITDA margins(3) rose 460 bps year-over-year, from 9.8% to 14.4%. The main drivers behind this are the margin expansion of the Global 7500, as well as continued progress on cost structure.
Backlog rose to $15 billion in the third quarter of 2022, an increase by $300 million since the end of the second quarter 2022.
“While our team has certainly been opportunistic and made the most of the market momentum this quarter, we continue to focus on things we can control, which keeps us well equipped to face any market conditions that may be ahead of us,” said Martel.
Continued Liquidity Improvement
Free cash flow(2) was at $52 million in the third quarter of 2022, on track to meet the revised guidance(1) of greater than $515 million for the year announced in the previous quarter.
The company also announced a new 5-year committed secured revolving credit facility of $300 million subsequent to the quarter end. “This syndicated revolver is another significant step we have made to continue strengthening our balance sheet,” said Bart Demosky, Executive Vice President and Chief Financial Officer of Bombardier. “The incremental liquidity will further enhance our financial position and increase our operating flexibility.”
Accelerated Deleveraging and Lowered Cost of Debt
Bombardier also continued to pay off debt with cash from balance sheet, delivering on another important and continued strategic priority for the company, which brings year-to-date debt repayment to $873 million(5). Bombardier has now reduced more than $290 million of annualized interest cost for long-term debt compared to the annualized interest cost as at December 31, 2020, exceeding its 2025 targeted interest cost reduction announced on the Investor Day on March 4, 2021 of more than $250 million.
(1) Refer to the Corporation’s financial report for the second quarter ended June 30, 2022 for more details on the updated guidance for 2022, and see the forward-looking statements disclaimer of this press release.
(2) Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section of the Management Discussion and Analysis (MD&A) of the Corporation’s financial report for the quarter ended September 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures.
(3) Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section of the MD&A of the Corporation’s financial report for the quarter ended September 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures.
(4) Defined as net new aircraft orders in units over aircraft deliveries in units.
(5) Includes $8 million repaid in October 2022.
bps: basis points
SELECTED RESULTS
| Results of the quarter | |||||||||
| Three-month periods ended September 30 | 2022 | 2021 | Variance | ||||||
| Revenues(1) | $ | 1,455 | $ | 1,449 | — | % | |||
| Adjusted EBITDA(1)(2) | $ | 210 | $ | 142 | 48 | % | |||
| Adjusted EBITDA margin(1)(3) | 14.4 | % | 9.8 | % | 460 bps | ||||
| Adjusted EBIT(1)(2) | $ | 125 | $ | 49 | 155 | % | |||
| Adjusted EBIT margin(1)(3) | 8.6 | % | 3.4 | % | 520 bps | ||||
| EBIT(1) | $ | 145 | $ | 48 | 202 | % | |||
| EBIT margin(1)(4) | 10.0 | % | 3.3 | % | 670 bps | ||||
| Net income (loss) from continuing operations | $ | 27 | $ | (376 | ) | nmf | |||
| Net loss from discontinued operations(5) | $ | — | $ | (1 | ) | nmf | |||
| Net income (loss) | $ | 27 | $ | (377 | ) | nmf | |||
| Diluted EPS from continuing operations (in dollars)(6) | $ | 0.20 | $ | (3.97 | ) | $ | 4.17 | ||
| Diluted EPS from discontinued operations (in dollars)(6) | $ | 0.00 | $ | (0.01 | ) | $ | 0.01 | ||
| $ | 0.20 | $ | (3.98 | ) | $ | 4.18 | |||
| Adjusted net loss(1)(2) | $ | (2 | ) | $ | (95 | ) | 98 | % | |
| Adjusted EPS (in dollars)(1)(3)(6) | $ | (0.10 | ) | $ | (1.05 | ) | $ | 0.95 | |
| Cash flows from operating activities | |||||||||
| Continuing operations | $ | 122 | $ | 156 | $ | (34 | ) | ||
| Discontinued operations | $ | — | $ | — | $ | — | |||
| $ | 122 | $ | 156 | $ | (34 | ) | |||
| Net additions to PP&E and intangible assets | |||||||||
| Continuing operations | $ | 70 | $ | 56 | $ | 14 | |||
| Discontinued operations | $ | — | $ | — | $ | — | |||
| $ | 70 | $ | 56 | $ | 14 | ||||
| Free cash flow(2) | |||||||||
| Continuing operations | $ | 52 | $ | 100 | $ | (48 | ) | ||
| Discontinued operations | $ | — | $ | — | $ | — | |||
| $ | 52 | $ | 100 | $ | (48 | ) | |||
| As at | September 30, 2022 | December 31, 2021 | Variance | ||||||
| Cash and cash equivalents | $ | 1,345 | $ | 1,675 | (20 | )% | |||
| Order backlog (in billions of dollars)(7) | $ | 15.0 | $ | 12.2 | 23 | % | |||
| (1) | Includes continuing operations only. |
| (2) | Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A of the Corporation’s financial report for the quarter ended September 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (3) | Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A of the Corporation’s financial report for the quarter ended September 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (4) | Supplementary financial measure. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A of the Corporation’s financial report for the quarter ended September 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (5) | Transportation business was classified as discontinued operations. On January 29, 2021, the Corporation closed the sale of the Transportation business to Alstom. |
| (6) | As of June 13, 2022, Bombardier proceeded with a Share Consolidation of the Corporation’s Class A shares and Class B shares (subordinate voting) at a consolidation ratio of 25-for-1. As a result, the comparative periods have been retroactively restated to reflect the Share Consolidation. |
| (7) | Represents order backlog for both manufacturing and services. |
| bps: basis points | |
| nmf: information not meaningful | |
About Bombardier
Bombardier is a global leader in aviation, focused on designing, manufacturing, and servicing the world's most exceptional business jets. Bombardier’s Challenger and Global aircraft families are renowned for their cutting-edge innovation, cabin design, performance, and reliability. Bombardier has a worldwide fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments, and private individuals. Bombardier aircraft are also trusted around the world in special-mission roles.
Headquartered in Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, the UAE, Singapore, China, and Australia.
For corporate news and information, including Bombardier’s Environmental, Social and Governance report, visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com. Follow us on Twitter @Bombardier.
Bombardier, Challenger, Global and Global 7500 are trademarks of Bombardier Inc. or its subsidiaries .
For information
| Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier Tel. +1 514 240 9649 | Mark Masluch Senior Director, Communications Bombardier Tel. +1 514 855 7167 |
The Management’s Discussion and Analysis (MD&A) and the Interim Consolidated Financial Statements are available at ir.bombardier.com.
CAUTION REGARDING NON-GAAP AND OTHER FINANCIAL MEASURES
This press release is based on reported earnings in accordance with IFRS and on the following non-GAAP and other financial measures:
| Non-GAAP and other financial measures | |
| Non-GAAP Financial Measures | |
| Adjusted EBIT | EBIT excluding special items. Special items comprise items which do not reflect the Corporation’s core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include, among others, the impact of restructuring charges, impact of business disposals and significant impairment charges and reversals. |
| Adjusted EBITDA | Adjusted EBIT plus amortization and impairment charges on PP&E and intangible assets. |
| Adjusted net income (loss) | Net income (loss) from continuing operations excluding special items, accretion on net retirement benefit obligations, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L and the related tax impacts of these items. |
| Free cash flow (usage) | Cash flows from operating activities - continued operations less net additions to PP&E and intangible assets. |
| Available short-term capital resources | Cash and cash equivalents, plus undrawn amounts under credit facilities. |
| Adjusted liquidity | Cash and cash equivalents, plus certain restricted cash supporting various bank guarantees. |
| Adjusted net debt | Long-term debt less cash and cash equivalents less certain restricted cash supporting various bank guarantees. |
| Non-GAAP Financial Ratios | |
| Adjusted EPS | EPS calculated based on adjusted net income attributable to equity holders of Bombardier Inc., using the treasury stock method, giving effect to the exercise of all dilutive elements. |
| Adjusted EBIT margin | Adjusted EBIT, as a percentage of total revenues. |
| Adjusted EBITDA margin | Adjusted EBITDA, as a percentage of total revenues. |
| Adjusted net debt to adjusted EBITDA ratio | Adjusted net debt divided by adjusted EBITDA. |
| Supplementary Financial Measures | |
| Interest paid on long-term debt | Interest paid comprises interest on long-term debt after the effect of hedges, if any, excluding up-front costs paid related to the negotiation of debts or credit facilities. |
| EBIT margin | EBIT, as a percentage of total revenues. |
| Gross margin percentage | Gross margin, as a percentage of total revenues. |
| Net retirement benefit liability | Retirement benefit liability less retirement benefit assets. |
Non-GAAP and other financial measures are measures mainly derived from the consolidated financial statements but are not standardized financial measures under the financial reporting framework used to prepare our financial statements. Therefore, these might not be comparable to similar non-GAAP and other financial measures used by other issuers. The exclusion of certain items from non-GAAP or other financial measures does not imply that these items are necessarily non-recurring.
Adjusted EBIT
Adjusted EBIT is defined as the EBIT excluding special items(1) which comprise items that do not reflect our core performance or where their separate presentation will assist users in understanding our results for the period. Management uses adjusted EBIT for purposes of evaluating underlying business performance. Management believes presentation of this non-GAAP operating earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
| (1) | Refer to the Consolidated results of operations section in the MD&A of the Corporation’s financial report for the quarter ended September 30, 2022 for details regarding special items. |
Adjusted EBITDA
Adjusted EBITDA is defined as the EBIT excluding special items(1), amortization and impairment charges on PP&E and intangible assets. Management uses adjusted EBITDA for purposes of evaluating underlying business performance. Management believes this non-GAAP operating earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business, since it excludes the effects of items that are usually associated with investing or financing activities and items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted net income (loss)
Adjusted net income (loss) is defined as the net income (loss) from continuing operations adjusted for certain specific items that are significant but are not, based on management’s judgment, reflective of the Corporation’s underlying operations. These include adjustments to EBIT related to special items(1), net financing expense (income) and other adjusting items for the period. Management uses adjusted net income (loss) for purposes of evaluating underlying business performance. Management believes this non-GAAP earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted net income (loss) excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EPS
Adjusted EPS is defined as the adjusted net income (loss) attributable to equity shareholders of Bombardier Inc., divided by the weighted-average diluted number of common shares for the period. Management uses adjusted EPS for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Adjusted EPS excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBIT margin
Adjusted EBIT margin is defined as the adjusted EBIT expressed as a percentage of total revenues. Management uses adjusted EBIT margin for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted EBIT margin excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBITDA margin
Adjusted EBITDA margin is defined as the adjusted EBITDA expressed as a percentage of total revenues. Management uses adjusted EBITDA margin for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted EBITDA margin excludes items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
| (1) | Refer to the Consolidated results of operations section in the MD&A of the Corporation’s financial report for the quarter ended September 30, 2022, for details regarding special items. |
Free cash flow (usage)
Free cash flow is defined as cash flows from operating activities - continued operations less net additions to PP&E and intangible assets. Management believes that this non-GAAP cash flow measure provides investors with an important perspective on the Corporation’s generation of cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. This non-GAAP cash flow measure does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity generation.
Adjusted liquidity
Adjusted liquidity is defined as cash and cash equivalents, plus certain restricted cash supporting various bank guarantees. Management believes that this non-GAAP financial measure is a useful measure because it includes items in its results that management believes is a better reflection of the company’s liquidity. This measure does not have any standardized meaning prescribed by IFRS and therefore, may not be comparable to similar measures presented by other companies.
| Reconciliation of adjusted EBIT to EBIT and computation of adjusted EBIT margin(1) | ||||||||||||
| Three-month periods ended September 30 | Nine-month periods ended September 30 | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| EBIT | $ | 145 | $ | 48 | $ | 331 | $ | 103 | ||||
| Special items | (20 | ) | 1 | (30 | ) | 7 | ||||||
| Adjusted EBIT | $ | 125 | $ | 49 | $ | 301 | $ | 110 | ||||
| Total revenues | $ | 1,455 | $ | 1,449 | $ | 4,258 | $ | 4,314 | ||||
| Adjusted EBIT margin | 8.6 | % | 3.4 | % | 7.1 | % | 2.5 | % | ||||
| Reconciliation of adjusted EBITDA to EBIT and computation of adjusted EBITDA margin(1) | ||||||||||||
| Three-month periods ended September 30 | Nine-month periods ended September 30 | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| EBIT | $ | 145 | $ | 48 | $ | 331 | $ | 103 | ||||
| Amortization | 85 | 93 | 275 | 298 | ||||||||
| Impairment charges on PP&E and intangible assets(2) | — | — | 2 | 3 | ||||||||
| Special items excluding impairment charges on PP&E(2) | (20 | ) | 1 | (30 | ) | 4 | ||||||
| Adjusted EBITDA | $ | 210 | $ | 142 | $ | 578 | $ | 408 | ||||
| Total revenues | $ | 1,455 | $ | 1,449 | $ | 4,258 | $ | 4,314 | ||||
| Adjusted EBITDA margin | 14.4 | % | 9.8 | % | 13.6 | % | 9.5 | % | ||||
| Reconciliation of adjusted net loss to net income (loss) and computation of adjusted EPS(1) | |||||||||||
| Three-month periods ended September 30 | |||||||||||
| 2022 | 2021 | ||||||||||
| (per share) | (per share)(3) | ||||||||||
| Net income (loss) | $ | 27 | $ | (376 | ) | ||||||
| Adjustments to EBIT related to special items(2) | (20 | ) | $ | (0.21 | ) | 1 | $ | 0.01 | |||
| Adjustments to net financing expense related to: | |||||||||||
| Net loss (gain) on certain financial instruments | (13 | ) | (0.14 | ) | 240 | 2.50 | |||||
| Accretion on net retirement benefit obligations | 8 | 0.09 | 10 | 0.10 | |||||||
| Changes in discount rates of provisions | (2 | ) | (0.02 | ) | — | — | |||||
| Losses (gains) on repayment of long-term debt(2) | (1 | ) | (0.01 | ) | 29 | 0.31 | |||||
| Other adjusting items | (1 | ) | (0.01 | ) | 1 | 0.01 | |||||
| Adjusted net loss | (2 | ) | (95 | ) | |||||||
| Preferred share dividends, including taxes | (8 | ) | (6 | ) | |||||||
| Adjusted net loss attributable to equity holders of Bombardier Inc. | $ | (10 | ) | $ | (101 | ) | |||||
| Weighted-average diluted number of common shares (in thousands)(3) | 94,113 | 96,100 | |||||||||
| Adjusted EPS (in dollars)(3) | $ | (0.10 | ) | $ | (1.05 | ) | |||||
| Reconciliation of adjusted EPS to diluted EPS (in dollars)(1) | ||||||
| Three-month periods ended September 30 | ||||||
| 2022 | 2021 | |||||
| Diluted EPS(3) | $ | 0.20 | $ | (3.97 | ) | |
| Impact of special(2)and other adjusting items(3) | (0.30 | ) | 2.92 | |||
| Adjusted EPS(3) | $ | (0.10 | ) | $ | (1.05 | ) |
| Reconciliation of adjusted net loss to net loss and computation of adjusted EPS(1) | ||||||||||||
| Nine-month periods ended September 30 | ||||||||||||
| 2022 | 2021 | |||||||||||
| (per share) | (per share)(3) | |||||||||||
| Net loss | $ | (369 | ) | $ | (488 | ) | ||||||
| Adjustments to EBIT related to special items(2) | (30 | ) | $ | (0.32 | ) | 7 | $ | 0.07 | ||||
| Adjustments to net financing expense related to: | ||||||||||||
| Net loss (gain) on certain financial instruments | 272 | 2.87 | (167 | ) | (1.73 | ) | ||||||
| Accretion on net retirement benefit obligations | 23 | 0.24 | 30 | 0.31 | ||||||||
| Changes in discount rates of provisions | (2 | ) | (0.02 | ) | — | — | ||||||
| Losses (gains) on repayment of long-term debt(2) | (4 | ) | (0.04 | ) | 212 | 2.20 | ||||||
| Adjusted net loss | (110 | ) | (406 | ) | ||||||||
| Preferred share dividends, including taxes | (22 | ) | (20 | ) | ||||||||
| Adjusted net loss attributable to equity holders ofBombardier Inc. | $ | (132 | ) | $ | (426 | ) | ||||||
| Weighted-average diluted number of common shares (in thousands)(3) | 94,650 | 96,569 | ||||||||||
| Adjusted EPS (in dollars)(3) | $ | (1.39 | ) | $ | (4.41 | ) | ||||||
| Reconciliation of adjusted EPS to diluted EPS (in dollars)(1) | ||||||
| Nine-month periods ended September 30 | ||||||
| 2022 | 2021 | |||||
| Diluted EPS(3) | $ | (4.13 | ) | $ | (5.13 | ) |
| Impact of special(2)and other adjusting items(3) | 2.74 | 0.72 | ||||
| Adjusted EPS(3) | $ | (1.39 | ) | $ | (4.41 | ) |
| (1) | Includes continuing operations only. |
| (2) | Refer to the Consolidated results of operations section in the MD&A of the Corporation’s financial report for the quarter ended September 30, 2022, for details regarding special items. |
| (3) | As of June 13, 2022, Bombardier proceeded with a Share Consolidation of the Corporation’s Class A shares and Class B shares (subordinate voting) at a consolidation ratio of 25-for-1. As a result, the comparative periods have been retroactively restated to reflect the Share Consolidation. |
| Reconciliation of free cash flow (usage) to cash flows from operating activities | ||||||||||||
| Three-month periods ended September 30 | Nine-month periods ended September 30 | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Cash flows from operating activities - continuing operations | $ | 122 | $ | 156 | $ | 761 | $ | (61 | ) | |||
| Net additions to PP&E and intangible assets | (70 | ) | (56 | ) | (195 | ) | (153 | ) | ||||
| Free cash flow (usage) from continuing operations | $ | 52 | $ | 100 | $ | 566 | $ | (214 | ) | |||
| Reconciliation of adjusted liquidity to cash and cash equivalents | ||||
| As at | September 30, 2022 | December 31, 2021 | ||
| Cash and cash equivalents | $ | 1,345 | $ | 1,675 |
| Certain restricted cash supporting various bank guarantees | 386 | 429 | ||
| Adjusted liquidity | $ | 1,731 | $ | 2,104 |
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, anticipations and outlook or guidance in respect of various financial and global metrics and sources of contribution thereto, targets, goals, priorities, market and strategies, financial position, financial performance, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; customer value; expected demand for products and services; growth strategy; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and execution of orders in general; competitive position; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings; strength of capital profile and balance sheet, creditworthiness, available liquidities and capital resources, expected financial requirements, and ongoing review of strategic and financial alternatives; the introduction of productivity enhancements, operational efficiencies, cost reduction and restructuring initiatives, and anticipated costs, intended benefits and timing thereof; the anticipated business transition to growth cycle and cash generation; expectations, objectives and strategies regarding debt repayment, refinancing of maturities and interest cost reduction; compliance with restrictive debt covenants; expectations regarding the declaration and payment of dividends on our preferred shares; intentions and objectives for our programs, assets and operations; expectations regarding the availability of government assistance programs; the impact of both the ongoing COVID-19 pandemic and the ongoing military conflict between Ukraine and Russia on the foregoing and the effectiveness of plans and measures we have implemented in response thereto; and expectations regarding the strength of the market and economic recovery in the aftermath of the COVID-19 pandemic.
Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of our current objectives, strategic priorities, expectations, outlook and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this press release include the following material assumptions: growth of the business aviation market and the Corporation’s share of such market; proper identification of recurring cost savings and executing on our cost reduction plan; optimization of our real estate portfolio, including through the sale or other transaction in respect of real estate assets on favorable terms; and access to working capital facilities on market terms. For additional information, including with respect to other assumptions underlying the forward-looking statements made in this press release, refer to the Forward-looking statements - Assumptions section in the MD&A of our financial report for the fiscal year ended December 31, 2021. Given the impact of the changing circumstances surrounding both the ongoing COVID-19 pandemic and the ongoing military conflict between Ukraine and Russia, including because of the emergence of COVID-19 variants and the imposition of financial and economic sanctions and export control limitations, and the related response from the Corporation, governments (federal, provincial and municipal, both domestic, foreign and multinational inter-governmental organizations), regulatory authorities, businesses, suppliers, customers, counterparties and third-party service providers, there is inherently more uncertainty associated with the Corporation’s assumptions as compared to prior periods.
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: risks associated with general economic conditions, risks associated with our business environment (such as risks associated with the financial condition of business aircraft customers; trade policy; financial and economic sanctions and export control limitations; increased competition; political instability; global climate change; and force majeure events); operational risks (such as risks related to developing new products and services; development of new business; order backlog; the certification of products and services; the execution of orders; pressures on cash flows and capital expenditures based on seasonality and cyclicality; execution of our strategy, productivity enhancements, operational efficiencies, restructuring and cost reduction initiatives; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; environmental, health and safety risks; dependence on certain customers, contracts and suppliers; supply chain risks; human resources including the global availability of a skilled workforce; reliance on information systems; reliance on and protection of intellectual property rights; reputation risks; risk management; tax matters; and adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; retirement benefit plan risk; exposure to credit risk; substantial debt and interest payment requirements; restrictive debt covenants; reliance on debt management and interest cost reduction strategies; and reliance on government support); market risks (such as foreign currency fluctuations; changing interest rates; increases in commodity prices; and inflation rate fluctuations); technology, privacy, cyber security and reputational risks; and other unforeseen adverse events. For more details, see the Risks and uncertainties section in Other in this press release and in the MD&A of our financial report for the fiscal year ended December 31, 2021. Any one or more of the foregoing factors may be exacerbated by the ongoing COVID-19 pandemic and the ongoing military conflict between Ukraine and Russia, and may have a significantly more severe impact on the Corporation’s business, results of operations and financial condition than in the absence of such events.
Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in our forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this report and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.