Discovery Air Inc. announces results for the quarter ended April 30, 2016

TORONTO, June 14, 2016 /CNW/ - Discovery Air Inc. (the "Corporation") announced its financial and operating results for the quarter ended April 30, 2016.  The unaudited interim consolidated financial statements and management discussion and analysis ("MD&A") will be available on SEDAR at www.sedar.com and on the Corporation's website at www.discoveryair.com.

Selected Financial Information				Three months ended April 30
(thousands of Canadian dollars, except per share amounts)				2016		2015		% change
Results of continuing operations
	Revenue		$	42,245	$	38,789		9%
	EBITDA*		$	4,474	$	2,607		72%
	Loss		$	(3,969)	$	(3,876)		-2%
	Basic and diluted income (loss) per share		$	(0.05)	$	(0.06)		17%
	Cash used in operations		$	(7,116)	$	(10,001)		29%
	Working Capital*		$	51,068	$	48,136		6%
Results of discontinued operations
	Revenue		$	284	$	3,626		-92%
	Profit (loss)		$	31	$	(578)
	Basic and diluted income (loss) per share		$	0.00	$	(0.01)
	Cash provided by (used in) operations		$	(585)	$	208
* See "Non-IFRS measures" below

Financial Highlights

• Consolidated revenues for the three months ended April 30, 2016 ("Current Quarter") increased 9%, in comparison to the three months ended April 30, 2015 ("Comparative Period"). The Aviation segment experienced increased revenue (a 10% increase from the comparative period) primarily due to increased airborne training in Canada and Germany, and increased activity in Northern Canada. 
  
  
• EBITDA for the Current Quarter improved $1.9 million in comparison to the same period in the prior year, primarily due to increased revenue.     
  
      
• Loss for the Current Quarter was $4.0 million compared to $3.9 million for the Comparative Period. The variance was mainly attributable to increased EBITDA offset by decreased gains on disposal and reduced tax recovery.

"The first quarter results were a positive start to the new fiscal year" reported Jacob (Koby) Shavit, the Corporation's President and Chief Executive Officer. "For the first three months the Corporation has improved revenues while managing to keep costs similar with the prior year. Our rigorous cost containment efforts are bearing results while at the same time, we are experiencing an increased demand for our defence services. The Corporation will continue to focus on improving shareholder value with a continued emphasis on operating efficiencies in our traditional markets, while targeting and being focused on specific growth opportunities."

Recent Developments

• In March 2016, Discovery Air Fire Services Inc., a subsidiary of the Corporation, was awarded a three year air transport services contract, with the option for a two year extension, to support court related activities in Northern Ontario.
  
  
• In April 2016, Great Slave Helicopters Inc. ("GSH"), a subsidiary of the Corporation, hosted a 32^nd annual Anniversary event. This event raised money for the Yellowknife community foundation and brought many of the local community and indigenous partners together for a weekend celebration and helicopter tours.
  
  
• During the three months ended April 30, 2016, DA Defence participated in a number of international training exercises in both the U.S. and Europe, further establishing its presence in both these growing markets. Discovery Air Defence expanded its German program to include additional revenue flying in support of a German Navy frigate upgrade program, as well as the German Air Force Eurofighter fighter weapons instructor course.
  
  
• In April 2016, GSH was actively deployed in fire suppression activities in Western Canada, which was earlier than expected due to dry weather conditions in this region.  In May 2016, GSH was deployed to Fort McMurray to assist in the much needed fire suppression efforts in that community.

Forward-Looking Statements

Forward-looking information and statements are included in this earnings release.  Please refer to the statement regarding forward-looking statements contained in the Corporation's MD&A for the quarter ended April 30, 2016, which are incorporated herein by reference.  That statement provides an explanation as to what forward-looking statements are, and the specific factors, uncertainties and potential events that the Corporation has identified for the attention of readers.  When relying on forward-looking information and statements to make decisions, investors and others should carefully consider these factors and other uncertainties and potential events.

The Corporation's unaudited interim consolidated financial statements and MD&A for the quarter ended April 30, 2016, have been filed concurrently and are available on the Corporation's website at www.discoveryair.com and on SEDAR at www.sedar.com.  The reader is encouraged to review the unaudited interim consolidated financial statements and MD&A for the quarter ended April 30, 2016 for more complete disclosure on the Corporation's financial condition and results of operations.

The Corporation's Class A common voting shares and unsecured convertible debentures trade on the Toronto Stock Exchange under the symbols DA.A and DA.DB.A, respectively.

Non-IFRS Measures

References to "EBITDA" are to net profit (loss) before finance costs, income taxes, depreciation of property and equipment and intangible assets, gains and losses on disposal of assets and extinguishment of debt, gains on acquisition and disposals, impairment losses, and gains and losses resulting from the change in fair value of financial liabilities. Management believes EBITDA to be an important metric in measuring the performance of the Corporation's day-to-day operations. This measurement is useful in assessing the Corporation's ability to service debt and to meet other payment obligations, and as a basis for valuation.  "Working Capital" is current assets less current liabilities excluding current portion of loans and borrowings and operating line of credit. 

SOURCE Discovery Air Inc.

Sheila Venman, VP Human Resources & Communications, [email protected], 1-866-903-3247