Financial highlights: fourth quarter and fiscal 2009
Transat A.T. Inc.: Integrated international tour operator specializing in holiday travel
Transat A.T. Inc. is an integrated international tour operator that specializes in holiday travel. It offers more than 60 destination countries and distributes products in approximately 50 countries. Transat owns an air carrier, offers accomodation and destination services and operates an extensive distribution network. The Company has a dedicated team of thorough and efficient people who deliver quality vacation travel services at affordable prices to a broad customer base.
Highlights
- $719.7 million in fourth-quarter revenues, compared with $790.4 million in 2008, reflecting lower input costs and selling prices.
- Margin1 of $35.6 million, versus $23.2 million in the fourth quarter of 2008, an increase of 53%.
- Adjusted after-tax income3 of $17.8 million for the fourth quarter of 2009, compared with $10.1 million in 2008.
- $3.5 billion in revenues for fiscal 2009, up 1%.
- Adjusted after-tax income3 of $33.7 million for fiscal 2009, versus $55.4 million in 2008, due in part to lower sale prices for Sun destinations in winter.
- Net income of $18.1 million for the quarter and $61.8 million for the year, compared with losses of $82.4 million and $49.4 million respectively.
Quick Facts
- Symbols: TRZ.A & TRZ.B
- Listings: Toronto Stock Exchange (TSX)
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- Year end: October 31
- Employees: 6,500 (approx.)
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Analyst coverage
- BMO Nesbitt Burns
- CIBC World Markets
- Laurentian Bank Securities
- Macquarie Research
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- National Bank Financial
- Paradigm Capital
- RBC Dominion Securities Inc.
- Research Capital Corporation
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- Scotia Capital
- TD Newcrest
- Versant Partners
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“Our fourth-quarter volumes were similar to last year’s. But prices and especially costs were lower and we also achieved excellent load factors, which explains the higher margin. As for the results for the entire fiscal year, we feel they are satisfactory in light of the prevailing conditions, as 2009 has been a difficult year for international tourism, because of the recession and the A(H1N1) influenza virus. All in all, we maintained our volumes and market shares, reduced our costs, and managed our air capacity well, and this helped us meet the challenge posed by the drop in sale prices.”
Jean-Marc Eustache
President and Chief Executive Officer
Financial highlights for the quarters ended October 31
(in thousands of dollars)
| |
2009
$ |
2008
Restated¹
$ |
Variance
$ |
Variance
% |
Consolidated Statements of Income (Loss) |
|
|
|
|
| Revenues |
719,656 |
790,424 |
(70,768) |
(9.0) |
| Margin¹ |
35,576 |
23,192 |
12,384 |
53.4 |
| Net income (loss) |
18,106 |
(82,369) |
100,475 |
122.0 |
| Basic earnings (loss) per share |
0.53 |
(2.54) |
3.07 |
120.9 |
| Diluted earnings (loss) per share |
0.52 |
(2.54) |
3.06 |
120.5 |
| Dividend – Class A and B shares |
— |
0.09 |
(0.09) |
(100.0) |
Consolidated Statements of Cash Flows
Operating activities |
(99,351) |
(104,911) |
5,560 |
5.3 |
Financial highlights for the year ended October 31
(in thousands of dollars)
| |
2009
$ |
2008
Restated¹
$ |
Variance
$ |
Variance
% |
Consolidated Statements of Income (Loss) |
|
|
|
|
| Revenues |
3,545,341 |
3,512,851 |
32,490 |
(0.1) |
| Margin¹ |
93,395 |
127,768 |
(34,373) |
(26.9) |
| Net income (loss) |
61,847 |
(49,394) |
111,241 |
225.2 |
| Basic earnings (loss) per share |
1.86 |
(1.49) |
3.35 |
224.8 |
| Diluted earnings (loss) per share |
1.85 |
(1.49) |
3.34 |
224.2 |
| Dividend – Class A and B shares |
0.09 |
0.36 |
(0.27) |
(75.0) |
Consolidated Statements of Cash Flows
Operating activities |
45,234 |
79,020 |
(33,786) |
(42.8) |
| |
As at
October
31
2009
$ |
As at
October
31
2008
restated¹
$ |
Variance
$ |
Variance
% |
Consolidated Balance Sheets |
|
|
|
|
| Cash and cash equivalents |
180,552 |
145,767 |
34,785 |
23.9 |
| Cash and cash equivalents, in trust or otherwise reserved (short-term and long-term) |
272,726 |
256,697 |
16,029 |
6.2 |
| Investments in ABCP |
71,401 |
86,595 |
(15,194) |
17.5 |
| |
524,679 |
489,059 |
35,620 |
7.3 |
| Total Assets |
1,129,503 |
1,267,214 |
(137,711) |
(10.9) |
| Debt (short-term and long-term) |
110,840 |
153,241 |
(42,401) |
(27.7) |
| Total debt² |
507,273 |
450,335 |
56,938 |
12.6 |
| Net debt² |
255,320 |
217,973 |
37,347 |
17.1 |
¹New accounting policies and other changes
Refer to New accounting policies and other accounting changes section on p. 6 of our fourth quarter financial statements.
²Non-GAAP financial measures
The terms “margin,” “total debt” and “net debt” have no standard definition prescribed by Canadian GAAP and are therefore unlikely to be comparable to similar measures reported by other issuers. However, these terms are presented on a consistent basis from year to year, as management uses them to measure the Corporation’s financial performance.
Margin is used by management to assess Transat’s ongoing and recurring operational performance. This term is represented by revenues less operating expenses, according to the unaudited Consolidated Statements of Income.
Total debt is used by management to assess the Corporation’s future cash requirements. It represents the combination of balance sheet debt (long-term debt and debenture) and off-balance sheet arrangements.
Net debt is used by management to assess the Corporation’s cash position. It represents the total debt (as discussed above) less cash and cash equivalents not held in trust or otherwise reserved, and investments in asset backed commercial paper [“ABCP”].
Margin, total debt and net debt should not be considered by itself or as a substitute of other financial performance measures calculated in accordance with GAAP, but rather as additional information.
For more detailed information, please refer to the Fourth quaterly report.
Senior management
Jean-Marc Eustache
Chairman of the Board
President and Chief Executive Officer
Bernard Bussières
Vice-President, General Counsel and Corporate Secretary
Michel Bellefeuille
Vice-President and Chief Information Officer |
André De Montigny
Vice-President, Corporate Development
Denis Pétrin
Vice-President, Finance and Administration
Chief Financial Officer
Michel Lemay
Vice-President, Communications and Corporate Affairs
Jean-Luk Pellerin
Vice-President, Human Resources and Chief Talent Officer
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