The following is a summary of the Chorus Aviation Inc. (CHRRF) Q2 2024 Earnings Call Transcript:
Financial Performance:
Chorus reported a Q2 adjusted EBITDA of $51 million with a combination of Jazz and Voyageur contributing strongly.
A significant decrease in leverage ratio to 3.0 down from 3.3 at the year end, achieved through repayments totaling $79.7 million.
Free cash flow for the quarter was positive at $28.2 million, primarily from operational activities.
Business Progress:
Continued operations showing positive results with a focus on Jazz and Voyageur post the sale of RAL segment.
Active share buyback program with 1.4 million shares repurchased at an average price of $2.15.
Voyageur showcased growth with a $4.8 million revenue increase from the previous year, through expanding its air ambulance services.
Discussions ongoing with Air Canada regarding fleet management post-2026.
Opportunities:
Expected to revitalize capital structure and reduce corporate debt significantly post RAL transaction closure, enhancing financial flexibility for growth and shareholder returns.
Voyageur identified for growth in specialty aviation operations, showing particular strength in ongoing contracts such as air ambulance services.
Risks:
Recognized economic certainty with regards to aircraft redeployment or sale as several come off lease with Air Canada post-2026.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
