Bombardier Announces Financial Results for the First Quarter Ended March 31, 2013

Bombardier Announces Financial Results for the First Quarter Ended March 31, 
2013 
MONTREAL, QUEBEC -- (Marketwired) -- 05/09/13 --
(TSX:BBD.A)(TSX:BBD.B) (All amounts in this press release are in U.S.
dollars unless otherwise indicated. This press release contains both
IFRS and non-GAAP measures. Non-GAAP measures are defined and
reconciled to the most comparable IFRS measures in the Corporation's
MD&A. See Caution regarding Non-GAAP measures at the end of this
press release. Comparative figures have been restated. See Accounting
and reporting developments in the Corporation's MD&A.) 


 
--  Revenues of $4.3 billion, compared to $3.5 billion last fiscal year 
--  EBIT before special items(1) of $240 million, or 5.5% of revenues,
    compared to $188 million, or 5.4%, last fiscal year 
--  EBIT of $240 million, or 5.5% of revenues, compared to $211 million, or
    6.1%, last fiscal year 
--  Adjusted net income(1) of $156 million, compared to $150 million last
    fiscal year 
--  Adjusted earnings per share(1) of $0.08, same as last fiscal year 
--  Free cash flow usage(1) of $590 million, compared to a usage of $695
    million last fiscal year 
--  Available short-term capital resources of $5.1 billion including cash
    and cash equivalents of $3.7 billion as at March 31, 2013, compared to
    $4.0 billion and $2.6 billion respectively, as at December 31, 2012 
--  Backlog of $63.0 billion as at March 31, 2013, compared to $64.9 billion
    as at December 31, 2012 
--  Issuance of $2 billion of unsecured Senior Notes 
 
(1)  See Caution regarding Non-GAAP measures at the end of this press      
     release.                                                              

 
Bombardier today reported its financial results for the first quarter
ended March 31, 2013. Revenues totalled $4.3 billion for the first
quarter ended March 31, 2013, compared to $3.5 billion for the same
period last fiscal year.  
For the first quarter ended March 31, 2013, earnings before financing
expense, financing income and income taxes (EBIT) before special
items totalled $240 million, or 5.5% of revenues, compared to $188
million, or 5.4%, for the same period last year.  
On an adjusted basis, net income amounted to $156 million, or
earnings per share (EPS) of $0.08, for the first quarter ended March
31, 2013, compared to $150 million, or EPS of $0.08, for the same
period the previous year.  
For the three-month period ended March 31, 2013, free cash flow usage
(cash flows from operating activities less net additions to property,
plant and equipment and intangible assets) totalled $590 million,
compared to a usage of $695 million for the same period the previous
year. Available short-term capital resources of $5.1 billion include
cash and cash equivalents of $3.7 billion as at March 31, 2013,
compared to $4.0 billion and $2.6 billion respectively as at December
31, 2012. The overall backlog reached $63.0 billion as at March 31,
2013, compared to $64.9 billion as at December 31, 2012. 
"We had a good first quarter, with an overall increase in revenues of
25%," said Pierre Beaudoin, President and Chief Executive Officer,
Bombardier Inc. "Aerospace is showing increased deliveries, revenues
and EBIT, and the CSeries tests are progressing well with first
flight next month."  
"Transportation also saw an increase in revenues and EBIT, and
received a good level of new orders across all divisions and key
markets, totalling $2 billion. We expect an increase in revenues over
the course of the year, while making good progress towards the
group's EBIT target of 8% by 2014. With our strong overall backlog of
$63 billion and state-of-the-art products coming into service in the
next few years, we're very well positioned for solid future growth,"
concluded Mr. Beaudoin.  
Bombardier Aerospace 
Bombardier Aerospace's revenues amounted to $2.3 billion for the
three-month period ended March 31, 2013, compared to $1.5 billion for
the same period last fiscal year. EBIT before special items totalled
$101 million or 4.5% of revenues for the first quarter ended March
31, 2013, compared to $66 million, or 4.4%, last fiscal year.  
Free cash flow usage totalled $461 million (including net additions
to property, plant and equipment (PP&E) and intangible assets of $503
million) for the first quarter ended March 31, 2013, compared to a
usage of $572 million (including net additions to PP&E and intangible
assets of $372 million) for the same period last fiscal year.  
A total of 53 aircraft were delivered during the first quarter ended
March 31, 2013, compared to 37 for the same period last fiscal year,
including 39 business aircraft, compared to 29 for the same quarter
last fiscal year. 
Bombardier Aerospace signed a purchase agreement with Russia's
Ilyushin Finance Co. (IFC) to acquire 32 CS300 aircraft, with options
for an additional 10. This agreement is subject to approval by the
company's shareholders and follows a letter of intent signed in 2011.
Based on the list price, the conditional order for 32 aircraft is
valued at $2.6 billion. Additionally, Danish lessor Nordic Aviation
Capital purchased four Q400 NextGen aircraft, bringing its Q400
aircraft fleet to 43.  
Subsequent to quarter-end, in April 2013 Porter Airlines was
identified as the previously unidentified Americas-based CSeries
aircraft customer when it announced the conversion of its letter of
intent to a conditional agreement for up to 30 CS100 aircraft. This
$2.08 billion-commitment, based on list price, makes Porter Airlines
the Canadian CSeries aircraft launch customer. As at March 31, 2013,
commitments for the CSeries totalled 388, including 145 firm orders
from nine customers in eight countries. 
Bombardier Aerospace's backlog totalled $32 billion as at March 31,
2013, compared to $32.9 billion as at December 31, 2012. 
Bombardier Transportation 
Bombardier Transportation's revenues amounted to $2.1 billion for the
three-month period ended March 31, 2013, compared to $2.0 billion for
the same period last year. EBIT totalled $139 million, or 6.7% of
revenues, compared to $122 million, or 6.2%, for the same quarter the
previous year. Free cash flow usage totalled $73 million for the
quarter ended March 31, 2013, compared to a usage of $85 million for
the same period last fiscal year.  
New orders reached $2.0 billion (book-to-bill ratio of 0.9), compared
to $1.2 billion for the same quarter last fiscal year. The order
backlog totalled $31.0 billion as at March 31, 2013, compared to
$32.0 billion as at December 31, 2012 (comparative numbers have been
restated to exclude Bombardier Transportation's proportionate share
of joint ventures' backlog). The $1 billion or 3% decrease in order
backlog is mainly due to the weakening of some foreign currencies
versus the U.S. dollar as at March 31, 2013 compared to December 31,
2012, mainly the euro and pound sterling. 
The group's new orders included a variation order for 170 additional
cars under a framework agreement with Siemens AG to develop and
supply important components for the next ICx high speed trains for
Deutsche Bahn, valued at $440 million.  
In January and April 2013, Bombardier Transportation's partner, CSR
Nanjing Puzhen Rolling Stock Co. Ltd from China, won orders for 18
low-floor trams and 15 catenary-free low-floor trams, which will be
built based on the group's FLEXITY 2 technology. The vehicles will be
equipped with the innovative FLEXX urban 3000 bogies and MITRAC 500
propulsion and control system. Bombardier Transportation will support
the projects under a technology license agreement signed in 2012. The
latter is the first order worldwide for a catenary-free tram equipped
with the new light and long-life Bombardier PRIMOVE battery. 
After quarter-end, Bombardier Transportation signed agreements with
Russian rail manufacturer Uralvagonzavod (UVZ) establishing a
partnership for joint development of metros for the market in Russia
and the CIS. 


 
FINANCIAL HIGHLIGHTS                                                        
(In millions of U.S. dollars, except per share amounts)                     
----------------------------------------------------------------------------
----------------------------------------------------------------------------
For the three-month periods                                                 
 ended March 31                        2013                            2012 
----------------------------------------------------------------------------
                       BA       BT    Total       BA       BT         Total 
----------------------------------------------------------------------------
                                                                restated(1) 
Results of                                                                  
 operations                                                                 
Revenues        $   2,258 $  2,081 $  4,339 $  1,499 $  1,982 $       3,481 
Cost of sales       1,951    1,772    3,723    1,261    1,645         2,906 
----------------------------------------------------------------------------
Gross margin          307      309      616      238      337           575 
SG&A                  158      186      344      162      202           364 
R&D                    42       28       70       31       34            65 
Share of income                                                             
 of joint                                                                   
 ventures and                                                               
 associates             -      (44)     (44)       -      (19)          (19)
Other expense                                                               
 (income)               6        -        6      (21)      (2)          (23)
----------------------------------------------------------------------------
EBIT before                                                                 
 special                                                                    
 items(2)             101      139      240       66      122           188 
Special items           -        -        -      (23)       -           (23)
----------------------------------------------------------------------------
EBIT            $     101 $    139      240 $     89 $    122           211 
Financing                                                                   
 expense                                 75                              82 
Financing                                                                   
 income                                 (40)                            (45)
----------------------------------------------------------------------------
EBT                                     205                             174 
Income taxes                             57                              19 
----------------------------------------------------------------------------
Net income                         $    148                   $         155 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
EPS (basic and                                                              
 diluted; in                                                                
 dollars)                          $   0.08                   $        0.08 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Supplemental                                                                
 information                                                                
----------------------------------------------------------------------------
EBIT before                                                                 
 special                                                                    
 items(2)       $     101 $    139 $    240 $     66 $    122 $         188 
Amortization           61       30       91       50       31            81 
----------------------------------------------------------------------------
EBITDA before                                                               
 special                                                                    
 items(2)       $     162 $    169 $    331 $    116 $    153 $         269 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
On an adjusted                                                              
 basis                                                                      
----------------------------------------------------------------------------
Adjusted net                                                                
 income(2)                         $    156                   $         150 
Adjusted EPS                                                                
 (in                                                                        
 dollars)(2)                       $   0.08                   $        0.08 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Cash flows from                                                             
 operating                                                                  
 activities     $      42 $    (62)         $   (200)$    (74)              
Net additions                                                               
 to PP&E and                                                                
 intangible                                                                 
 assets              (503)     (11)             (372)     (11)              
----------------------------------------------------------------------------
Segmented free                                                              
 cash flow(2)   $    (461)$    (73)$   (534)$   (572)$    (85)$        (657)
Net income                                                                  
 taxes and net                                                              
 interest paid                          (56)                            (38)
----------------------------------------------------------------------------
Free cash                                                                   
 flow(2)                           $   (590)                  $        (695)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
BA: Bombardier Aerospace; BT: Bombardier Transportation 


 
 (1) Certain comparative figures have been restated as a result of our     
     adoption of the amended IAS 19, Employee benefits, and IFRS 11, Joint 
     arrangements. The joint arrangement restatements relate to the        
     requirement to account for our investments in joint ventures using the
     equity method under IFRS 11, instead of proportionate consolidation.  
     The employee benefit restatements mainly relate to the requirement    
     under amended IAS 19 to calculate interest expense and interest income
     components on a net basis using the post-employment benefit obligation
     discount rate. Comparative figures have also been restated due to the 
     change in methods of measurement of certain financial assets, as      
     described in the Accounting and reporting developments section of the 
     Corporation's MD&A.                                                   
(2)  Non-GAAP financial measure. Refer to the Non-GAAP financial measures  
     and Liquidity and capital resources sections of the Corporation's MD&A
     for definitions of these metrics and reconciliation to the most       
     comparable IFRS measures.                                             

 
SELECTED FINANCIAL INFORMATION 
Bombardier Aerospace 


 
Total aircraft deliveries                                                   
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                          Three-month periods ended March 31
(in units)                                               2013           2012
----------------------------------------------------------------------------
Business aircraft                                                           
  Excluding those of the Flexjet fractional                                 
   ownership program                                       38             28
  Flexjet fractional ownership program(1)                   1              1
----------------------------------------------------------------------------
                                                           39             29
Commercial aircraft                                        13              7
Amphibious aircraft                                         1              1
----------------------------------------------------------------------------
                                                           53             37
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                           
(1)  An aircraft delivery is included in the above table when the          
     equivalent of 100% of the fractional shares of an aircraft model has  
     been sold to external customers through Flexjet, or when a whole      
     aircraft has been sold to external customers through the Flexjet One  
     program.                                                              
                                                                           
                                                                           
Total aircraft net orders                                                   
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three-month                                                                 
 periods                                                                    
 ended                        March 31, 2013                  March 31, 2012
----------------------------------------------------------------------------
(in units)      Gross                    Net    Gross                    Net
               orders Cancellations   orders   orders Cancellations   orders
----------------------------------------------------------------------------
Business                                                                    
 aircraft                                                                   
 (including                                                                 
 those of                                                                   
 the Flexjet                                                                
 fractional                                                                 
 ownership                                                                  
 program)          36           (9)       27       49           (9)       40
Commercial                                                                  
 aircraft           4           (3)        1       28             -       28
----------------------------------------------------------------------------
                   40          (12)       28       77           (9)       68
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
Book-to-bill ratio(1)                                                       
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                   Three-month periods ended
                                                                    March 31
----------------------------------------------------------------------------
                                                         2013           2012
----------------------------------------------------------------------------
Business aircraft                                         0.7            1.4
Commercial aircraft                                       0.1            4.0
----------------------------------------------------------------------------
Total                                                     0.5            1.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1)  Defined as net orders received over aircraft deliveries, in units.
                                                                       
                                                                       
Order backlog                                                               
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                       As at
----------------------------------------------------------------------------
(in billions of dollars)                    March 31, 2013 December 31, 2012
----------------------------------------------------------------------------
Aircraft programs                         $           28.7  $           29.5
Long-term maintenance and spares support                                    
 agreements                                            2.8               2.8
Military Aviation Training                             0.5               0.6
----------------------------------------------------------------------------
                                          $           32.0  $           32.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
Bombardier Transportation 


 
Revenues by geographic region                                               
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                         Three-month periods ended March 31 
----------------------------------------------------------------------------
                                                    2013               2012 
----------------------------------------------------------------------------
                                                                   restated 
Europe                                 $   1,399      67% $   1,349      68%
North America                                371      18%       388      20%
Asia-Pacific                                 212      10%        69       3%
Rest of world(1)                              99       5%       176       9%
----------------------------------------------------------------------------
                                       $   2,081     100% $   1,982     100%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                           
(1)  The Rest of world region includes South America, Central America,     
     Africa, the Middle East and the CIS.                                  
                                                                           
                                                                           
Order intake and book-to-bill ratio                                         
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                          Three-month periods ended March 31
----------------------------------------------------------------------------
Order intake (in billions of dollars)(1)                        2013    2012
----------------------------------------------------------------------------
Rolling stock                                                 $  1.1  $  0.6
Services                                                         0.6     0.3
System and signalling                                            0.3     0.3
----------------------------------------------------------------------------
                                                              $  2.0  $  1.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Book-to-bill ratio(2)                                            0.9     0.6
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1)  Including any new orders between BT and its joint ventures, but       
     excluding the order intake of our joint ventures.                     
                                                                           
(2)  Ratio of new orders over revenues.                                    
                                                                           
                                                                           
Order backlog(1)                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                       As at
----------------------------------------------------------------------------
(in billions of dollars)                    March 31, 2013 December 31, 2012
----------------------------------------------------------------------------
                                                                    restated
Rolling stock                                 $       19.9   $          20.7
Services                                
               6.9               7.0
System and signalling                                  4.2               4.3
----------------------------------------------------------------------------
                                              $       31.0   $          32.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                           
(1)  Including the order backlog for contracts between BT and its joint    
     ventures, but excluding our share of joint ventures' backlog, which   
     was $2.1 billion as at March 31, 2013 ($2.2 billion as at December 31,
     2012).                                                                

 
DIVIDENDS ON COMMON SHARES  
Class A and Class B Shares 
A quarterly dividend of $0.025 Cdn per share on Class A Shares
(Multiple Voting) and of $0.025 Cdn per share on Class B Shares
(Subordinate Voting) is payable on June 30, 2013 to the shareholders
of record at the close of business on June 14, 2013. 
Holders of Class B Shares (Subordinate Voting) of record at the close
of business on June 14, 2013 also have a right to a priority
quarterly dividend of $0.000390625 Cdn per share.  
DIVIDENDS ON PREFERRED SHARES  
Series 2 Preferred Shares  
A monthly dividend of $0.0625 Cdn per share on Series 2 Preferred
Shares has been paid on March 15 and April 15, 2013. 
Series 3 Preferred Shares 
A quarterly dividend of $0.195875 Cdn per share on Series 3 Preferred
Shares is payable on July 31, 2013 to the shareholders of record at
the close of business on July 12, 2013.  
Series 4 Preferred Shares 
A quarterly dividend of $0.390625 Cdn per share on Series 4 Preferred
Shares is payable on July 31, 2013 to the shareholders of record at
the close of business on July 12, 2013. 
About Bombardier 
Bombardier is the world's only manufacturer of both planes and
trains. Looking far ahead while delivering today, Bombardier is
evolving mobility worldwide by answering the call for more efficient,
sustainable and enjoyable transportation everywhere. Our vehicles,
services and, most of all, our employees are what make us a global
leader in transportation. 
Bombardier is headquartered in Montreal, Canada. Our shares are
traded on the Toronto Stock Exchange (BBD) and we are listed on the
Dow Jones Sustainability World and North America indexes. In the
fiscal year ended December 31, 2012, we posted revenues of $16.8
billion. News and information are available at bombardier.com or
follow us on Twitter: @Bombardier.  
CS100, CS300, CSeries, FLEXITY, FLEXX, MITRAC, NextGen, PRIMOVE,
Q400, and The Evolution of Mobility are trademarks of Bombardier Inc.
or its subsidiaries. 
The Management's Discussion and Analysis and the interim consolidated
financial statements are available at ir.bombardier.com.  
FORWARD-LOOKING STATEMENTS 
This press release includes forward-looking statements, which may
involve, but are not limited to: statements with respect to our
objectives, guidance, targets, goals, priorities, our market and
strategies, financial position, beliefs, prospects, plans,
expectations, anticipations, estimates and intentions; general
economic and business outlook, prospects and trends of an industry;
expected growth in demand for products and services; product
development, including projected design, characteristics, capacity or
performance; expected or scheduled entry-into-service of products and
services, orders, deliveries, testing, lead times, certifications and
project execution in general; our competitive position; and the
expected impact of the legislative and regulatory environment and
legal proceedings on our business and operations. Forward-looking
statements generally can be identified by the use of forward-looking
terminology such as "may", "will", "expect", "intend", "anticipate",
"plan", "foresee", "believe", "continue", "maintain" or "align", the
negati
ve of these terms, variations of them or similar terminology.
By their nature, forward-looking statements require us to make
assumptions and are subject to important known and unknown risks and
uncertainties, which may cause our actual results in future periods
to differ materially from forecasted results. While we consider our
assumptions to be reasonable and appropriate based on information
currently available, there is a risk that they may not be accurate.
For additional information with respect to the assumptions underlying
the forward-looking statements made in this press release refer to
the respective Guidance and forward-looking statements sections in
Overview, Bombardier Aerospace and Bombardier Transportation sections
in the Management's Discussion and Analysis ("MD&A") in the
Corporation's annual report for the fiscal year ended December 31,
2012. 
Certain factors that could cause actual results to differ materially
from those anticipated in the forward-looking statements include
risks associated with general economic conditions, risks associated
with our business environment (such as risks associated with the
financial condition of the airline industry and major rail
operators), operational risks (such as risks related to developing
new products and services; doing business with partners; product
performance warranty and casualty claim losses; regulatory and legal
proceedings; the environment; dependence on certain customers and
suppliers; human resources; fixed-price commitments and production
and project execution), financing risks (such as risks related to
liquidity and access to capital markets, exposure to credit risk,
certain restrictive debt covenants, financing support provided for
the benefit of certain customers and reliance on government support)
and market risks (such as risks related to foreign currency
fluctuations, changing interest rates, decreases in residual values
and increases in commodity prices). For more details, see the Risks
and uncertainties section in Other in the MD&A of the Corporation's
annual report for the fiscal year ended December 31, 2012. Readers
are cautioned that the foregoing list of factors that may affect
future growth, results and performance is not exhaustive and undue
reliance should not be placed on forward-looking statements. The
forward-looking statements set forth herein reflect our expectations
as at the date of this press release and are subject to change after
such date. Unless otherwise required by applicable securities laws,
we expressly disclaim any intention, and assume no obligation to
update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise. The forward-looking
statements contained in this press release are expressly qualified by
this cautionary statement. 
CAUTION REGARDING NON-GAAP MEASURES  
This press release is based on reported earnings in accordance with
International Financial Reporting Standards (IFRS). Reference to
generally accepted accounting principles (GAAP) means IFRS, unless
indicated otherwise. This press release is also based on non-GAAP
financial measures including EBITDA, EBIT before special items, EBIT
margin before special items, adjusted net income, adjusted earnings
per share and free cash flow. These non-GAAP measures are mainly
derived from the interim consolidated financial statements, but do
not have a standardized meaning prescribed by IFRS; therefore, others
using these terms may calculate them differently. Management believes
that providing certain non-GAAP performance measures, in addition to
IFRS measures, provides users of our interim consolidated financial
statements with enhanced understanding of our results and related
trends and increases transparency and clarity into the core results
of our business. Refer to the Non-GAAP financial measures and
Liquidity and capital resources sections in the Corporation's MD&A
for definitions of these metrics and reconciliations to the most
comparable IFRS measures.
Contacts:
Isabelle Rondeau
Director, Communications
Bombardier Inc.
+514 861 9481 
Shirley Chenier
Senior Director, Investor Relations
Bombardier Inc.
+514 861 9481
www.bombardier.com
 
 
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