Annual General Meeting of Shareholders - Royal Reports Strong Growth in Results for First Quarter of 1997-1998 and Declares a Special Dividend of $0.65 Per Share.MONTREAL--(BUSINESS WIRE)--Sept. 9, 1997-- ROYAL AVIATION(ME, TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ROY) - Company delivers quarterly net earnings of $1,228,000 or $0.09 per share - Cash rises to nearly $45 million following sale of five aircraft, generating a pre-tax gain of $11 million - Strategic developments in recent months pave PAVE Cardiology A clinical trial–Post AV Node Ablation Evaluation the way for strong growth in revenues and profitability During the Annual General Meeting of Shareholders of ROYAL AVIATION INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . held this morning in Montreal, Michel Leblanc Michel Leblanc is a Canadian "serial entrepreneur" responsible for starting up several failed airlines. Among those are Québecair, Royal Aviation(sold to Canada 3000 in 2001 when bankrupt also) and, the most recent airline to go bankrupt, Jetsgo on March 11, 2005. , President and Chief Executive Officer, disclosed excellent financial results for the first quarter of the current fiscal year. For the three months ended July 31, 1997, the airline recorded revenues of $60.1 million, up 29 percent over the first quarter of 1996. This strong growth in business volume was achieved with the same sales and administrative structure, enabling the Company to triple its operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from $803,000 to $2,451,000. Royal posted net earnings of $1,228,000 or $0.09 per share, compared with $149,000 or $0.01 per share for the corresponding period of the previous year. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses rose 49 percent to $4,126,000 or $0.30 per share. This performance is the payoff of the strategic approach taken the previous year by Royal to develop the European market, upgrade its fleet and strengthen the positioning of its subsidiary Royal Vacations. The growth in revenues arose mainly from more than a two-fold increase in service to Europe, for which the Company added three Airbus 310-300s that were commissioned respectively in May, June and July. It can also be attributed to an increase in business for Royal Vacations in Canadian markets outside Quebec, where the travel wholesaler now sells seats for Royal programs in Europe, Florida and the domestic market. The same factors are behind the major gain in profitability. Along with a net improvement in the contribution by Royal Vacations, Royal benefited from optimal use of the Airbus 310s. In addition, the integration of these new-generation aircraft yielded substantial savings in fuel consumption and maintenance costs. Declaration of a dividend of $0.65 per share This morning, Royal's Board of Directors declared a special dividend of $0.65 per share, which will be paid on October 15, 1997 to shareholders of record as at September 30, 1997. This decision was motivated by the Company's sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. cash position, which amounted to
nearly $45 million after accounting for the proceeds from the disposal
of five Boeing 727s The Boeing 727 is a mid-size, narrow-body, three-engine commercial jet airliner. It first took to the skies in 1963 and for over a decade was the most produced commercial jet airliner in the world. 1,831 727s were delivered. . It should be noted that these aircraft, which were
entirely debt-free, were sold last week for a total of Cdn$31.5 million,
generating a pre-tax gain of over $11 million. The Company will
continue to operate four of the Boeing 727s under leasing contracts
until May and November 1998. In the spring of 1997, Royal had sold two
other Boeing 727s, also debt-free, for net proceeds Net ProceedsThe amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $10.1 million and a pre-tax gain of $4.6 million. These transactions fit in with the complete fleet upgrading program that the Company plans to complete by the year 2000 to secure a foothold foot·hold n. 1. A place providing support for the foot in climbing or standing. 2. A firm or secure position that provides a base for further advancement. foothold Noun 1. in high-yield markets, such as Europe, trim its operating costs operating costs npl → gastos mpl operacionales and meet noise regulation standards. After payment of the dividend, Royal will have more than $36 million in available cash. Outlook Michel Leblanc stated that as indicated by financial results for the first quarter, the major developments over the past year will translate into strong growth in revenues and profitability in 1997-1998 and beyond. In addition to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. factors, growth will stem from integration of the cargo fleet, which will contribute approximately $30 million to revenues for the current fiscal year and some $50 million on a full annual basis. Moreover, the considerable synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. between the Canada-wide cargo and passenger operations will strengthen Royal's position in the domestic market and increase the yield of its chartered flights. Mr. Leblanc pointed out that Royal should benefit from the full impact of its strategic deployment starting in fiscal 1998-1999. In this regard, he announced this morning that the Company has renewed its agreement with Nouvelles-Frontieres, the leading tour operator in France, for the Canada-France program in the summer of 1998. He also revealed Royal's intention to replace its two Lockheed 1011s with a fourth Airbus 310. This aircraft will be commissioned in Vancouver during the summer of 1998 to meet the brisk Brisk as a proper name may refer to:
Western Canada, commonly referred to as the West . "In the next fiscal year, we will therefore operate four Airbus 310s for the full season to service our growing client base in Europe. In addition, with the market knowledge we have acquired this year, we can be more aggressive and increase the yield from our European business by offering direct flights to the most popular destinations." "We also anticipate strong growth on the domestic market in 1998-1999, when we will benefit from the cargo operations for the full year." Mr. Leblanc added that the Company's profitability will rise with the gradual replacement of its fleet with new-generation, more versatile and higher performance aircraft. Among other things, the Company is analyzing alternatives for replacing, within the next two years, its Boeing 737s The Boeing 737 is an American short to medium range, single aisle, narrow body jet airliner. With over 7,000 ordered and over 5,000 delivered, it is the most ordered and produced commercial passenger jet of all time and has been continuously manufactured by Boeing since 1967. and 727s with new-generation aircraft convertible for cargo/passenger flights. -0-
CONSOLIDATED STATEMENTS OF INCOME
(in thousands of dollars, except per-share data) (unaudited)
For the three-month periods ended
July 31, 1997 and 1996
1997 1996
OPERATING REVENUES $60,108 $46,614
OPERATING EXPENSES 51,144 39,648
______ ______
Gross profit 8,964 6,966
SELLING AND ADMINISTRATION 3,973 3,660
AMORTIZATION 2,540 2,503
_____ _____
Operating income before the
following items 2,451 803
INTEREST ON LONG-TERM DEBT 573 315
INTEREST INCOME (158) (77)
_____ ___
Income before provision for
income taxes 2,036 565
_____ ___
PROVISION FOR INCOME TAXES
Current 450 333
Deferred 358 83
___ ___
808 416
NET INCOME $1,228 $149
_____ ___
_____ ___
EARNINGS PER SHARE $0.09 $0.01
_____ _____
_____ _____
FULLY-DILUTED EARNINGS
PER SHARE $0.09 $0.01
_____ _____
_____ _____
CONTACT: Royal Aviation Inc. Michel Leblanc, 514/828-9000 or Royal Aviation Inc. Louis McGuire, 514/828-9000 |
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