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Inclusion of Q4 Financial Tables - CAE reports fourth quarter and
full-year results
- Restructuring plan on track - Net debt reduced to $285.8M from $529.6M a year
ago - Free cash flow for fiscal 2005 increased to $87.8M from $9.8M - Backlog
from continuing operations rose to $2.5B - Military order intake increased 34%
MONTREAL, May 11 /PRNewswire-FirstCall/ -- (NYSE: CGT; TSX: CAE) - CAE today
released financial results for the fourth quarter and fiscal year ended March
31, 2005. Fourth-quarter earnings from continuing operations, excluding
non-recurring items, were $14.1 million, or $0.06 per share, compared to $16.1
million or $0.07 per share in the corresponding year-earlier period. Also
excluding non-recurring items, earnings per share for fiscal year 2005 were
$0.19, compared to $0.21 the previous year. (All amounts are expressed in
Canadian dollars.)
CAE reports earnings from continuing operations of $9.3 million for the fourth
quarter, and a net loss from continuing operations for the fiscal year
totalling $304.7 million, or $1.23 per share. The full-year results reflect a
significant third-quarter loss, which included sizeable non-cash writedowns
related to impairment in the value of goodwill as well as tangible and
intangible assets and set the stage for implementation of a comprehensive
restructuring plan, announced in mid-February 2005, to enhance the Company's
long-term prospects.
As part of that restructuring plan, major elements of the sale of CAE's Marine
Controls business were completed during the fourth quarter. This transaction
has enabled the Company to significantly strengthen its financial position.
"We have made meaningful progress in the early stages of our restructuring,"
stated President and CEO, Robert E. Brown. "Our balance sheet is stronger; our
cash flow has improved significantly; and our businesses are in the process of
being reorganised with a view to driving performance improvement."
CAE's operations are being realigned into three reporting groups with clearly
defined responsibilities and enhanced accountability. The restructuring plan
also includes initiatives designed to rationalize the Company's global
manufacturing and training footprint; reduce production costs for full-flight
simulators; and increase efficiency and productivity by introducing new best
practices and processes. The underlying aim is to improve the quality of
assets, strengthen the balance sheet and generate strong free cash flow that
will translate into sustained profitability and improved returns on investment.
"We made some tough decisions and completed some difficult tasks in a short
period of time during the latter stages of fiscal 2005," Mr. Brown observed.
"Major challenges still await us," he added. "Fiscal 2006 will be a pivotal
transition year, as we focus relentlessly on the successful execution of key
elements of our program and build a solid foundation to begin generating
earnings growth in fiscal 2007. I am confident that we have the right people
and the right plan in place."
Since February, restructuring actions have included consolidation of the
Company's engineering and program-management departments, respectively, to
boost efficiency and eliminate duplication. Several sites adjacent to CAE's
main facility in Montreal have been closed and most of the approximately 450
layoffs announced in February have taken place. A number of other sites in the
Company's global network are slated for rationalization in the period ahead. As
well, a range of full-flight simulators will be redistributed within the global
training network in order to optimize their utilization.
Among its stated operating objectives, CAE has targeted a reduction of its
production costs and cycle times for civil full-flight simulators. The newly
formed Simulation Products Group is well into the process of identifying
opportunities to reach these objectives. CAE had indicated total expected
restructuring charges in the range of $55 to $65 million by the end of fiscal
year 2006. With $24.5 million of expenses before tax already incurred in fiscal
year 2005 and a number of major activities completed, the restructuring plan is
tracking within the lower end of that range. As of fiscal year 2006, CAE will
report its financial performance on a segmented basis in order to improve
disclosure and transparency with regard to its equipment and training
businesses.
Marine Controls divestiture
CAE completed the divestiture of substantially the entire Marine Controls
segment to L-3 Communications ("L-3") during the fourth quarter in a
transaction valued at $238.6 million. In accordance with the purchase
agreement, L-3 will also acquire two other components of the Marine Controls
segment, including the assumption of the CAE's guarantee of pnds stlg 23.0
million ($53 million) of project-finance related debt for the UK Astute Class
submarine training program.
Cash flow and financial position
CAE's free cash flow (defined as net cash provided by continuing operations,
less capital expenditures and dividends, plus sale and leaseback proceeds)
reached $87.8 million for the year, compared to $9.8 million in the prior year.
This improved performance notwithstanding, CAE maintains its previously
indicated objective to emerge from the current transition year - fiscal year
2006 -with a solid foundation to begin generating meaningful earnings growth,
free cash flow and positive investment returns.
Operating cash flow totalled $207.6 million (including cash restructuring
charges), compared to $5.7 million the prior year. The increase resulted from
improved operating results, excluding non-cash items, and $85.6 million
generated in non-cash working capital.
CAE's net debt, defined as long-term debt less cash and cash equivalents, was
reduced from $529.6 million to $285.8 million through the repayment of $243.7
million, resulting in a debt-to-total-capitalization ratio of approximately 35%
(or approximately 50% including the net present value of all off-balance sheet,
recourse obligations), from approximately 40% last year.
Non-recurring items
Reported fourth-quarter results include a cash restructuring charge of $24.5
million (pre-tax), together with an additional $9.2 million charge (pre- tax)
in primarily non-cash, related to the early repayment of a high-interest- rate
loan in Brazil and the settlement of various financial instruments. Also, the
fourth quarter results included other non-recurring charges amounting to $3.1
million (pre-tax), representing mainly restructuring charges incurred prior to
the adoption of a formal "restructuring plan" as defined by GAAP. As a result,
this $3.1 million charge is included in earnings from continued operations and
not in the $24.5 million. Finally, the fourth quarter was affected by the
recognition of $23.5 million of tax assets. Of the $23.5 million, $12.2 million
is related to the reduction in the valuation allowance on CAE's net operating
losses in the United States. The remaining amount relates to the
materialization of the net capital losses in the United States as a result of
the sale of Marine. The later recognition of the net capital losses was not
included in the gain on disposition of Marine.
In addition to these items, full-year reported results include a one-time
charge of approximately $3.8 million and a non-cash charge of $443.3 million
for impairment in the value of goodwill, intangible and tangible assets
recorded in the third quarter. Also included are one-time benefits of $14.2
million from additional investment tax credits ("ITC") recognized in the first
quarter. It should be noted that while ITCs are normal recurring items for CAE,
the one-time ITC contingency released in the first quarter was non- recurring.
Additional consolidated financial results
In the fourth quarter, consolidated revenues from continuing operations reached
$262.7 million, compared to $261.1 million in the corresponding, year- earlier
quarter. Consolidated revenues from continuing operations for the full fiscal
year reached $986.2 million, notwithstanding the appreciation of the Canadian
dollar over the course of the year. This compares to $938.4 million in the
prior fiscal year. The net increase in consolidated revenue results from a
$58.4 million (or 13%) increase in Civil revenues, partially offset by a $10.6
million (or 2%) decrease in Military revenues.
Fourth-quarter consolidated earnings before interest and taxes ("EBIT") from
continuing operations, net of one-time items, were $27.7 million, compared to
$27.3 million in the year-earlier period. On the same basis, consolidated EBIT
for the full fiscal year was $88.3 million, compared to $90.6 million the
previous year.
The consolidated backlog from continuing operations at March 31, 2005 was $2.5
billion, up from $2.3 billion a year earlier.
Capital expenditures for the latest year amounted to $118.0 million, compared
to $86.8 million in the prior year. Capital expenditures are expected to be in
the range of $135 million in fiscal year 2006, reflecting prior investment
commitments and maintenance expenditures.
Civil business unit highlights
Civil concluded the year with 17 full-flight simulator orders (compared to 16
orders in the prior year) for a competed market share of 77%. Included in this
order book were three simulators for the Airbus A380, bringing to five the
number of A380 simulator orders that CAE has won since the inception of the
super-jumbo aircraft program. CAE already has reached a critical milestone with
the delivery of the first A380 full-flight simulator to Airbus. A second such
device is on schedule for anticipated delivery later this year.
Training revenues increased 13% over the previous year, reflecting the growth
of the training network to 105 full-flight simulators as well as improved
utilization, which reached 73% for the year. Average revenue per simulator
increased slightly to approximately $3.1 million.
Civil generated operating earnings of $10.8 million in the fourth quarter of
fiscal 2005, compared to $6.0 million in the third quarter and $11.8 million in
fourth quarter of fiscal 2004. Consistent with third-quarter results, training
services represented the largest proportion of margin. Profitability in the
equipment segment improved modestly, but the Company recognizes the fact that
its Civil equipment backlog will present challenges over the next several
quarters. With respect to Civil margins generally, the asset impairment
recognized in the third quarter has reduced amortization expenses by
approximately $9.3 million annually. Net of non-recurring items, full-year
operating earnings were $41.2 million, or 6% higher than the prior year.
Equipment and services revenues increased year over year as the result of
higher order intake, while continuing to account for approximately 40% of the
unit's total consolidated revenues. Training services represented the balance
of revenues.
Military business unit highlights
Military concluded the fiscal year with $681.4 million in new order bookings, a
34% increase over the $506.7 million booked in the prior year. U.S. market
equipment orders represented more than 40% of all new equipment bookings.
Military's backlog at March 31, 2005 reached $1.4 billion, including the award
of a privately financed initiative for the German NH90 helicopter program and a
number of strategic wins in the U.S.- a market in which CAE has more than
doubled its order intake over the past two years.
Military generated fourth-quarter operating earnings of $13.0 million, compared
to $11.3 million in the third quarter and $15.5 million in the corresponding
year-earlier quarter. Full-year operating earnings amounted to $47.2 million, a
decrease of $4.4 million compared to fiscal 2004, which resulted from higher
completion costs on certain programs, particularly in the first quarter, and
negative foreign-exchange impacts of $1.2 million. Military's operating
earnings, excluding one-time items, amounted to $47.1 million. Fourth-quarter
revenues of $129.1 million were on a par with the third quarter and 2% lower
than the year-earlier period. Full-year revenue reached $466.0 million, a
decrease of $10.6 million from the prior year, resulting primarily from
negative foreign-exchange impacts and delayed program awards.
A more detailed discussion of business unit highlights can be found in the
Management's Discussion & Analysis posted on CAE's website at
http://www.cae.com/financialsQ4 .
Conference Call
CAE will host a conference call today at 1:30 p.m. EDT for analysts,
institutional investors and the media. North American participants can access
the call by dialling 1-877-783-7570 or 514-868-2566. Overseas participants can
dial +800-2787-1930 or 1-514-868-2566. The conference call will also be audio
Webcast live for the public at http://www.cae.com/ .
CAE is a leading provider of simulation and modelling technologies as well as
integrated training services for commercial and business aviation and defence
customers worldwide. The Company has annual revenues of approximately C$1
billion, with operations and training facilities in 17 countries on five
continents.
This press release provides comments on non-GAAP financial measures. Readers
should be cautioned that this information should not be confused with or used
as an alternative for performance measures determined in accordance with GAAP.
CAE believes that these measures provide useful supplemental information to
GAAP financial measures. However, these non-GAAP financial measures have no
standardized meaning prescribed by GAAP and therefore are unlikely to be
comparable to similar measures presented by other companies. For a more
detailed discussion of these non-GAAP measures, please consult section 4 of the
Management's Discussion & Analysis posted on CAE's website at
http://www.cae.com/financialsQ4 .
Certain statements made in this news release, including, but not limited to,
the statements appearing under the "Outlook" section, and other statements that
are not historical facts, are forward-looking and are subject to important
risks, uncertainties and assumptions. The results or events predicted in these
forward- looking statements may differ materially from actual results or
events. These statements do not reflect the potential impact of any
non-recurring or other special items or of any dispositions, mergers,
acquisitions, or other transactions that may be announced or that may occur
after the date hereof. For a description of risks that could cause actual
results or events to differ materially from current expectations please refer
to the section entitled "Risk Factors" contained in CAE Inc.'s Annual
Information Form for the year ended March 31, 2004 filed by CAE Inc. with the
Canadian securities commissions (available at http://www.cae.com/ or on SEDAR
at http://www.sedar.com/) and with the U.S. Securities and Exchange Commission
under Form 40-F (available on EDGAR at http://www.sec.gov/) as updated in CAE
Inc.'s fiscal 2005 Fourth Quarter MD&A dated May 11, 2005, included in this
news release, under the section entitled "Business Risks And Uncertainties".
The forward-looking statements contained in this news release represent our
expectations as of May 11, 2005 and, accordingly, are subject to change after
such date. However, we disclaim any intention or obligation to update any
forward-looking statements, whether as a result of new information or
otherwise.
Consolidated Balance Sheets
As at March 31 (amounts in millions
of Canadian dollars) 2005 2004
-------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 57.1 $ 54.7
Accounts receivable 255.7 316.5
Inventories 101.0 147.7
Prepaid expenses 17.8 19.6
Income taxes recoverable 58.5 52.0
Future income taxes 2.5 1.8
Current assets held for sale 5.8 89.8
-------------------------------------------------------------------------
498.4 682.1
Restricted cash 0.9 7.0
Property, plant and equipment, net 792.2 780.0
Future income taxes 101.0 89.0
Intangible assets 20.2 129.2
Goodwill 92.1 300.7
Other assets 137.4 180.8
Long-term assets held for sale 57.5 139.9
-------------------------------------------------------------------------
$ 1,699.7 $ 2,308.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 312.8 $ 322.0
Deposits on contracts 93.5 69.3
Long-term debt due within one year 35.3 8.8
Future income taxes 19.6 51.1
Current liabilities related to assets
held for sale 7.8 54.5
-------------------------------------------------------------------------
469.0 505.7
Long-term debt 307.6 575.5
Deferred gains and other long-term liabilities 179.8 171.0
Future income taxes 38.3 77.5
Long-term liabilities related to assets held
for sale 53.4 60.2
-------------------------------------------------------------------------
1,048.1 1,389.9
-------------------------------------------------------------------------
Shareholders' Equity
Capital stock 373.8 367.5
Contributed surplus 3.3 1.3
Retained earnings 340.8 562.1
Currency translation adjustment (66.3) (12.1)
-------------------------------------------------------------------------
651.6 918.8
-------------------------------------------------------------------------
$ 1,699.7 $ 2,308.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Approved by the Board:
/ R.E. Brown / L.R. Wilson
Director Director
Consolidated Statements of Earnings
Years ended March 31
(amounts in millions of Canadian
dollars, except per share amounts) 2005 2004 2003
-------------------------------------------------------------------------
Revenue
Civil Simulation and Training $ 520.2 $ 461.8 $ 517.2
Military Simulation and Training 466.0 476.6 459.6
-------------------------------------------------------------------------
$ 986.2 $ 938.4 $ 976.8
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings from continuing
operations before interest and
income taxes
Civil Simulation and Training $ 47.6 $ 39.0 $ 115.6
Military Simulation and Training 47.2 51.6 78.8
Impairment of goodwill,
tangible and intangible assets (443.3) - -
Restructuring Costs (24.5) (9.3) -
-------------------------------------------------------------------------
(Loss) earnings from continuing
operations before interest and
income taxes $ (373.0) $ 81.3 $ 194.4
Interest on long-term debt 37.8 28.0 31.6
Other interest expense
(income), net (5.7) (5.6) (3.5)
-------------------------------------------------------------------------
(Loss) earnings from continuing
operations before income taxes $ (405.1) $ 58.9 $ 166.3
Income tax (recovery) expense (100.4) 11.5 52.4
-------------------------------------------------------------------------
(Loss) earnings from continuing
operations $ (304.7) $ 47.4 $ 113.9
Results of discontinued operations 104.8 16.6 3.3
-------------------------------------------------------------------------
Net (loss) earnings $ (199.9) $ 64.0 $ 117.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic (loss) earnings per share
from continuing operations $ (1.23) $ 0.20 $ 0.52
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Diluted (loss) earnings per
share from continuing operations $ (1.23) $ 0.20 $ 0.52
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic (loss) earnings per share $ (0.81) $ 0.27 $ 0.53
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Diluted (loss) earnings per share $ (0.81) $ 0.27 $ 0.53
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average number of common
shares outstanding 247.1 233.2 219.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statements of Retained Earnings
Years ended March 31
(amounts in millions of
Canadian dollars) 2005 2004 2003
-------------------------------------------------------------------------
Retained earnings at beginning
of year as previously reported $ 562.1 $ 531.2 $ 440.4
Change in accounting policy 3.3 - -
-------------------------------------------------------------------------
Retained earnings at beginning
of year 565.4 531.2 440.4
Share issue costs (2004 -
net of taxes of $2.4 million) - (5.1) -
Net (loss) earnings (199.9) 64.0 117.2
Dividends (24.7) (28.0) (26.4)
-------------------------------------------------------------------------
Retained earnings at end of year $ 340.8 $ 562.1 $ 531.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statements of Cash Flow
Years ended March 31
(amounts in millions of
Canadian dollars) 2005 2004 2003
-------------------------------------------------------------------------
Operating activities
Net (loss) earnings $ (199.9) $ 64.0 $ 117.2
Results of discontinued operations (104.8) (16.6) (3.3)
-------------------------------------------------------------------------
(Loss) earnings from continuing
operations (304.7) 47.4 113.9
Adjustments to reconcile earnings
to cash flows from operating
activities:
Impairment of goodwill, tangible
and intangible assets 443.3 - -
Amortization 82.0 71.4 65.1
Future income taxes (113.9) (2.9) 16.2
Investment tax credits (29.2) (9.2) 28.2
Stock based compensation 2.0 1.3 -
Other 20.9 (6.3) (18.4)
Decrease (increase) in non-cash
working capital 85.6 (100.2) (64.7)
-------------------------------------------------------------------------
Net cash provided by continuing
operating activities 186.0 1.5 140.3
Net cash provided by discontinued
operating activities 21.6 4.2 14.6
-------------------------------------------------------------------------
Net cash provided by operating
activities 207.6 5.7 154.9
-------------------------------------------------------------------------
Investing activities
Purchase of businesses (13.8) - -
Proceeds from disposal of
discontinued operations 239.4 22.3 25.0
Short-term investments, net - 2.6 18.8
Capital expenditures (118.0) (86.8) (224.2)
Proceeds from sale and leaseback
of assets 43.8 122.5 127.0
Deferred development costs (9.9) (12.7) (13.3)
Deferred pre-operating costs (1.7) (6.6) (7.6)
Other assets (2.4) (4.8) (27.5)
-------------------------------------------------------------------------
Net cash provided by (used in)
continuing investing activities 137.4 36.5 (101.8)
Net cash used in discontinued
investing activities (5.8) (12.0) (32.6)
-------------------------------------------------------------------------
Net cash provided by (used in)
investing activities 131.6 24.5 (134.4)
-------------------------------------------------------------------------
Financing activities
Proceeds of long-term debt 267.7 514.9 250.0
Repayments of long-term debt (588.5) (650.4) (326.3)
Dividends paid (24.0) (27.4) (26.2)
Capital stock issuances 3.6 176.4 3.5
Share issue costs - (7.5) -
Other 0.7 1.4 (14.1)
-------------------------------------------------------------------------
Net cash (used in) provided by
continuing financing activities (340.5) 7.4 (113.1)
Net cash provided by discontinued
financing activities 3.2 10.4 18.7
-------------------------------------------------------------------------
Net cash (used in) provided by
financing activities (337.3) 17.8 (94.4)
-------------------------------------------------------------------------
Effect of foreign exchange rate
changes on cash and cash equivalents (2.3) (3.2) 2.2
-------------------------------------------------------------------------
Net (decrease) increase in cash
and cash equivalents (0.4) 44.8 (71.7)
Cash and cash equivalents at
beginning of year 61.9 17.1 88.8
-------------------------------------------------------------------------
Cash and cash equivalents at end
of year $ 61.5 $ 61.9 $ 17.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash and cash equivalents
related to:
Continuing operations $ 57.1 $ 54.7 $ 13.5
Discontinued operations 4.4 7.2 3.6
-------------------------------------------------------------------------
$ 61.5 $ 61.9 $ 17.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CAE Inc.
Consolidated Balance Sheets
as at as at
March 31 March 31
(amounts in millions of Canadian dollars) 2005 2004
-------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 57.1 $ 54.7
Accounts receivable 255.7 316.5
Inventories 101.0 147.7
Prepaid expenses 17.8 19.6
Income taxes recoverable 58.5 52.0
Future income taxes 2.5 1.8
Current assets held for sale 5.8 89.8
-------------------------------------------------------------------------
498.4 682.1
Restricted cash 0.9 7.0
Property, plant and equipment, net 792.2 780.0
Future income taxes 101.0 89.0
Intangible assets 20.2 129.2
Goodwill 92.1 300.7
Other assets 137.4 180.8
Long-term assets held for sale 57.5 139.9
-------------------------------------------------------------------------
$ 1,699.7 $ 2,308.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Shareholders' equity
Current liabilities
Accounts payable and accrued liabilities $ 312.8 $ 322.0
Deposits on contracts 93.5 69.3
Long-term debt due within one year 35.3 8.8
Future income taxes 19.6 51.1
Current liabilities related to assets held
for sale 7.8 54.5
-------------------------------------------------------------------------
469.0 505.7
Long-term debt 307.6 575.5
Deferred gains and other long-term liabilities 179.8 171.0
Future income taxes 38.3 77.5
Long-term liabilities related to assets held
for sale 53.4 60.2
-------------------------------------------------------------------------
1,048.1 1,389.9
-------------------------------------------------------------------------
Shareholders' equity
Capital stock 373.8 367.5
Contributed surplus 3.3 1.3
Retained earnings 340.8 562.1
Currency translation adjustment (66.3) (12.1)
-------------------------------------------------------------------------
651.6 918.8
-------------------------------------------------------------------------
$ 1,699.7 $ 2,308.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CAE Inc.
Consolidated Statements of Earnings
three months ended twelve months ended
(amounts in millions of March 31 March 31
Canadian dollars, (Unaudited) (Unaudited)
except per share amounts) 2005 2004 2005 2004
-------------------------------------------------------------------------
Revenue
Civil Simulation
and Training $ 133.6 $ 128.9 $ 520.2 $ 461.8
Military Simulation
and Training 129.1 132.2 466.0 476.6
-------------------------------------------------------------------------
$ 262.7 $ 261.1 $ 986.2 $ 938.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings from continuing
operations before
interest and income taxes
Civil Simulation
and Training $ 10.8 $ 11.8 $ 47.6 $ 39.0
Military Simulation
and Training 13.0 15.5 47.2 51.6
Impairment of goodwill,
tangible and
intangible assets - - (443.3) -
Restructuring costs (24.5) (9.3) (24.5) (9.3)
-------------------------------------------------------------------------
(Loss) earnings from
continuing operations
before interest and
income taxes (0.7) 18.0 (373.0) 81.3
Interest on long-term debt 17.7 5.6 37.8 28.0
Other interest expense
(income), net (1.6) (1.3) (5.7) (5.6)
-------------------------------------------------------------------------
(Loss) earnings from
continuing operations
before income taxes (16.8) 13.7 (405.1) 58.9
Income tax (recovery)
expense (26.1) 4.0 (100.4) 11.5
-------------------------------------------------------------------------
(Loss) earnings from
continuing operations $ 9.3 $ 9.7 $ (304.7) $ 47.4
Results of discontinued
operations 99.5 4.6 104.8 16.6
-------------------------------------------------------------------------
Net (loss) earnings $ 108.8 $ 14.3 $ (199.9) $ 64.0
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic (loss) earnings per
share from continuing
operations $ 0.04 $ 0.04 $ (1.23) $ 0.20
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Diluted (loss) earnings
per share from
continuing operations $ 0.04 $ 0.04 $ (1.23) $ 0.20
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic (loss) earnings
per share $ 0.44 $ 0.05 $ (0.81) $ 0.27
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Diluted (loss) earnings
per share $ 0.44 $ 0.05 $ (0.81) $ 0.27
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average number
of common shares
outstanding 247.8 246.6 247.1 233.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statements of Retained Earnings
three months ended twelve months ended
March 31 March 31
(amounts in millions of (Unaudited) (Unaudited)
Canadian dollars) 2005 2004 2005 2004
-------------------------------------------------------------------------
Retained earnings at
beginning of period
as previously reported $ 231.2 $ 555.2 $ 562.1 $ 531.2
Change in accounting policy 3.3 - 3.3 -
-------------------------------------------------------------------------
Retained earnings at
beginning of period $ 234.5 $ 555.2 $ 565.4 $ 531.2
Share issue costs (net of
taxes $2.4 million) - - - (5.1)
Net (loss) earnings 108.8 14.3 (199.9) 64.0
Dividends (2.5) (7.4) (24.7) (28.0)
-------------------------------------------------------------------------
Retained earnings at
end of period $ 340.8 $ 562.1 $ 340.8 $ 562.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CAE Inc.
Consolidated Statements of Cash Flow
three months ended twelve months ended
March 31 March 31
(amounts in millions of (Unaudited) (Unaudited)
Canadian dollars) 2005 2004 2005 2004
-------------------------------------------------------------------------
Operating activities
Net (loss) earnings $ 108.8 $ 14.3 $ (199.9) $ 64.0
Results of discontinued
operations (99.5) (4.6) (104.8) (16.6)
-------------------------------------------------------------------------
(Loss) earnings from
continuing operations 9.3 9.7 (304.7) 47.4
Adjustments to reconcile
earnings to cash flows
from operating activities:
Impairment of goodwill,
tangible and intangible
assets - - 443.3 -
Amortization 23.5 19.9 82.0 71.4
Future income taxes (45.0) (2.7) (113.9) (2.9)
Investment tax credit (5.1) (7.0) (29.2) (9.2)
Stock based compensation 0.6 0.4 2.0 1.3
Other 16.8 5.0 20.9 (6.3)
Decrease (increase) in
non-cash working capital 66.8 54.2 85.6 (100.2)
-------------------------------------------------------------------------
Net cash provided by
continuing operating
activities 66.9 79.5 186.0 1.5
Net cash provided by
discontinued operating
activities 6.6 4.1 21.6 4.2
-------------------------------------------------------------------------
Net cash provided by
operating activities 73.5 83.6 207.6 5.7
-------------------------------------------------------------------------
Investing activities
Purchase of business (7.2) - (13.8) -
Proceeds from disposal of
discontinued operations 238.6 - 239.4 22.3
Short-term investments, net - 3.0 - 2.6
Capital expenditures (14.5) (25.8) (118.0) (86.8)
Proceeds from sale and
leaseback of assets 15.8 - 43.8 122.5
Deferred development costs (0.5) (5.2) (9.9) (12.7)
Deferred pre-operating costs (0.4) (3.4) (1.7) (6.6)
Other assets 2.7 (12.3) (2.4) (4.8)
-------------------------------------------------------------------------
Net cash provided by
(used in) continuing
investing activities 234.5 (43.7) 137.4 36.5
Net cash provided by
(used in) discontinued
investing activities 0.4 (4.9) (5.8) (12.0)
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Net cash provided by
(used in) investing
activities 234.9 (48.6) 131.6 24.5
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Financing activities
Proceeds of long-term debt 12.3 134.6 267.7 514.9
Repayments of long-term
debt (324.2) (196.2) (588.5) (650.4)
Dividends paid (2.4) (7.3) (24.0) (27.4)
Common stock issuance 2.6 0.5 3.6 176.4
Share issue costs - - - (7.5)
Other (1.8) - 0.7 1.4
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Net cash (used in)
provided by continuing
financing activities (313.5) (68.4) (340.5) 7.4
Net cash provided by
discontinued financing
activities 0.7 4.6 3.2 10.4
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Net cash (used in)
provided by financing
activities (312.8) (63.8) (337.3) 17.8
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Effect of foreign
exchange rate changes
on cash and cash
equivalents (1.3) 3.2 (2.3) (3.2)
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Net (decrease) increase
in cash and cash
equivalents (5.7) (25.6) (0.4) 44.8
Cash and cash
equivalents at
beginning of period 67.2 87.5 61.9 17.1
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Cash and cash equivalents
at end of period $ 61.5 $ 61.9 $ 61.5 $ 61.9
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Cash and cash equivalents
related to:
Continuing operations $ 57.1 $ 54.7
Discontinued operations 4.4 7.2
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$ 61.5 $ 61.9
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DATASOURCE: CAE INC.
CONTACT: On the Web: http://www.cae.com/; Media contacts: Nathalie Bourque,
Vice
President, Global Communications, (514) 734-5788,
; Anne von Finckenstein, Manager, Public Relations,
(514) 340-5370, ; Investor relations: Andrew
Arnovitz, Director, Investor Relations, (514) 734-5760,