Chorus Aviation repositions
Chorus Aviation just came out with it's third quarter results.It is largely a steady as she goes type of performance.Chorus points out that it's adjusted net income at $28 million is one of it's best reported.In addition,it's EBITDA increased by $4.3 million or 2.8% over the same quarter in 2012.Chorus reports that it obtained six new Q400 aircraft and now has replaced it's old fleet of CRJ-100 's.
However Chorus is still working out the final details of it's benchmark Capacity Purchase Agreement(C.P.A.).The final dec ision of the arbitration panel has not been awarded(between Air Canada and Chorus).Chorus tells us that this quarter it earned an incentive of $1.0 million offset by a decrease in Billable Block Hours.The pass-through costs which are reimbursed by Air Canada has been reduced from $166 million to $160 million.There is no mention of what their actual costs are but presumably (with a tightened agreement) their actual costs must be close to $160 million.
Two stockbrokers show the Chorus earnings per share at around $.54 on an annual basis.However Chorus tells us that earnings per share for this quarter were $.29 and earnings for the last quarter were $.30 per share.On an annualized basis this makes the earnings at about $1.20 per share.This makes the price/earnings ratio at about 2.3 among the lowest in the T.S.X.However many investors may be waiting to see the final CPA agreement before locking in.But many investors are eager to see what they do with their $31 million free cash flow this quarter as Chorus has some very interesting investments.see blogdaleupsome for management consulting.
However Chorus is still working out the final details of it's benchmark Capacity Purchase Agreement(C.P.A.).The final dec ision of the arbitration panel has not been awarded(between Air Canada and Chorus).Chorus tells us that this quarter it earned an incentive of $1.0 million offset by a decrease in Billable Block Hours.The pass-through costs which are reimbursed by Air Canada has been reduced from $166 million to $160 million.There is no mention of what their actual costs are but presumably (with a tightened agreement) their actual costs must be close to $160 million.
Two stockbrokers show the Chorus earnings per share at around $.54 on an annual basis.However Chorus tells us that earnings per share for this quarter were $.29 and earnings for the last quarter were $.30 per share.On an annualized basis this makes the earnings at about $1.20 per share.This makes the price/earnings ratio at about 2.3 among the lowest in the T.S.X.However many investors may be waiting to see the final CPA agreement before locking in.But many investors are eager to see what they do with their $31 million free cash flow this quarter as Chorus has some very interesting investments.see blogdaleupsome for management consulting.
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