Canadian aircraft lessor Chorus Aviation has posted net income of CA$ 22.9 million for the first quarter of 2022, a quarter-over-quarter increase of CA$61.0 million primarily due to a decrease in one-time restructuring costs of CA$81.8 million related to the 2021 Capacity Purchase Agreement (CPA) amendments and lower expected credit loss provisions of CA$2.5 million partially offset by an increase in income tax expense.
Adjusted net income was CA$17.7 million, an increase of CA$2.0 million quarter-over-quarter primarily due to lower interest expense from repayment of long-term debt in 2021 and lower depreciation expense partially offset by increased adjusted income tax expense.
Adjusted EBITDA was CA$83.3 million, a decrease of CA$0.8 million over the first quarter of 2021. The company collected approximately 92% (67% in Q2’21, 77% in Q3’21, 83% in Q4’21) of the Regional Aircraft Leasing (RAL) segment’s lease revenue recognized in the first quarter.
At the end of the first quarter the company had liquidity of CA$199.7 million.
On May 3, 2022, Chorus completed the Falko acquisition. This transformative transaction creates new opportunities for growth through increased access to growth capital and a differentiated business model to maximise returns on aircraft assets.
Taking into account the draws under Chorus’ credit facilities and the payment of consideration for the Falko acquisition, Chorus anticipates having total liquidity in excess of CA$100.0 million for the remainder of 2022 with approximately half of such liquidity consisting of cash and the remainder consisting of available credit under its operating credit facility and the new US$30.0 million unsecured revolving operating credit facility. Chorus anticipates having sufficient liquidity to fund ongoing operations, planned capital expenditures and principal and interest payments related to long-term borrowings. (£1.00 = CA$1.60 at time of publication).