Welcome!

News Feed Item

NAV CANADA Announces Third Quarter Financial Results

OTTAWA, ONTARTIO -- (Marketwired) -- 07/11/14 -- NAV CANADA (the "Company") today released its financial results for the three and nine months ended May 31, 2014. The results show continued success in controlling costs while maintaining safe and efficient air navigation services, as well as growth in air traffic volumes of 3.3 per cent for the third quarter compared to the same period in the prior fiscal year.

The Company's fiscal year runs from September 1 to August 31. In the third quarter of fiscal 2014, the Company continued to achieve positive free cash flow(1) and strong financial performance as evidenced by an improvement in its rate stabilization account, finishing with a positive(2) balance of $71 million. When adjusted for rate setting purposes, there is a positive(2) "notional" balance of $93 million in the rate stabilization account, which is equal to its target balance.

"The third quarter saw the completion of several important initiatives and the commencement of others that will enhance safety and enable us to provide improved service to our customers", said John Crichton, President & CEO. "In April, we completed the rollout of Controller Pilot Data Link Communications across the country when the Toronto Flight Information Region began offering CPDLC service in its airspace. In May, we implemented the Gander Oceanic Transition Area and commissioned multilateration in Fredericton. We continue to renew our infrastructure with new projects that will provide world-leading air navigation system technology to those operating in Canadian airspace." The Company's revenues before rate stabilization for the third quarter of fiscal 2014 were $315 million, compared to $306 million in the third quarter of fiscal 2013, mainly due to the growth in air traffic volumes.

Operating expenses before rate stabilization for the third quarter of fiscal 2014 were $264 million as compared to $260 million over the same period in fiscal 2013, mainly due to higher compensation levels, higher pension expense and inflationary increases.

Interest, depreciation and amortization expense before rate stabilization totalling $61 million was in line with the comparable period in the previous fiscal year.

Positive fair value adjustments on investments in the third quarter of fiscal 2014 contributed $4 million to other income before rate stabilization. As at May 31, 2014, the fair value of the Company's investments in ABCP restructured and non-restructured notes is $280 million on holdings with a face value of $307 million. Of the total fair value variances from face value of $27 million, $22 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 after rate stabilization of $9 million for the third quarter of fiscal 2014. Given the normal seasonal variation in traffic volumes and the fact that our costs are predominantly fixed in nature, an excess of expenses over revenues in the Company's third quarter is expected. Excluding rate stabilization adjustments, expenses would have exceeded revenues and other income by $5 million for the quarter.

The Company's Financial Statements and Management's Discussion and Analysis for the three and nine months ended May 31, 2014 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.  Free cash flow is a non-GAAP financial measure used by NAV CANADA to
    enhance the overall understanding of its financial and operating
    performance. Non-GAAP financial measures do not have any standardized
    meaning prescribed by Canadian GAAP and therefore may not be comparable
    to similar measures presented by other issuers. The Company defines free
    cash flow as cash generated through operations and investment
    activities. Management places importance on this indicator as it assists
    in measuring the impact of its investment program on the Company's
    financial resources.

2.  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.

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 forward-looking statements.

Contacts:
Michelle Bishop
Director, Government and Public Affairs
(613) 563-7520

Ron Singer
Manager, Media Relations
(613) 563-7303
Media Information Line: 1-888-562-8226

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...