- Raised 2022 full-year guidance on free cash flow(1), now expected to be greater than $515 million for the year vs greater than $50 million, based on stronger working capital performance and increased interest cost savings from accelerated deleveraging; reaffirmed guidance on aircraft deliveries, revenues and profitability metrics(2).
- Revenues of $1.6 billion for the second quarter reflect 28 aircraft deliveries and a 22% year-over-year aftermarket revenue increase to $359 million.
- Adjusted EBITDA(1) for the second quarter rose to $201 million, a 41% year-over-year improvement driven by continued progress on strategic priorities. Adjusted EBITDA margin(3) rose 350 bps year-over-year to 12.9%. Reported EBIT from continuing operations for the second quarter was $101 million.
- Strong free cash flow(1) generation of $341 million from continuing operations for the second quarter of 2022, representing an improvement of $250 million year-over-year and tracking ahead of plan. Reported cash flow from operating activities for the second quarter was $422 million and net additions to PP&E and intangible assets were $81 million.
- Strong order intake resulted in second quarter unit book-to-bill(4) of 1.8 and 37% year-over-year increase in order backlog to $14.7 billion.
- Balance sheet strengthening through progress on deleveraging with $373 million debt reduction during the second quarter of 2022 using cash on hand. Adjusted liquidity(1) stands strong at $1.8 billion with cash and cash equivalents of $1.4 billion.
- Moody’s Investors Service upgraded Bombardier’s corporate family and senior unsecured notes rating to B3. Outlook maintained as stable.
- Successful launch of the Global 8000 business jet at the European Business Aviation Convention and Exhibition (EBACE) 2022, setting new standards in speed, range, and comfort.
All amounts in this press release are in U.S. dollars unless otherwise indicated.
Amounts in tables are in millions, unless otherwise indicated.
MONTRÉAL, Aug. 04, 2022 (GLOBE NEWSWIRE) -- Bombardier (TSX: BBD.B) announced today strong financial results for the second quarter of 2022, marked by continued steady demand for new aircraft, strong aftermarket performance, robust free cash flow(1) generation, and one of the industry’s highest backlogs. Bombardier raised its full-year guidance on free cash flow(1), now expected to be better than the previously communicated target, and reaffirmed guidance on aircraft deliveries, revenues and profitability metrics.
"It’s been a fantastic second quarter for us – strong demand for business jets has carried through and our team has converted opportunities to grow our backlog significantly," said Éric Martel, President and Chief Executive Officer. "Our performance on free cash flow(1) has demonstrated that we have set the right foundation to be cash positive and deliver on our commitments. We have also strengthened our balance sheet to further enhance our resilience and predictability."
"Leading business indicators and market demand are still driving in a positive direction, giving us confidence that we can achieve our objectives," added Martel. "Supply chain pressure is contributing to keeping our aircraft delivery ramp up at a conservative and steady pace, in line with our 2025 projections."
Solid Second Quarter 2022 Financial Performance
Bombardier's order backlog rose by 37% year-over-year to $14.7 billion, with a unit book-to-bill(4) of 1.8 for the second quarter, indicating continued high demand and strong order intake. Revenues of $1.6 billion for the second quarter reflect 28 aircraft deliveries and a 22% year-over-year aftermarket revenue increase to $359 million.
This past quarter saw Bombardier continue its margin expansion and reach an adjusted EBITDA(1) of $201 million. Driven by continued progress on strategic priorities, this represents a 41% increase year-over-year.
Following the strong performance in the first half of 2022, Bombardier is revising its original 2022 free cash flow(1) guidance to greater than $515 million from greater than $50 million due to stronger working capital performance and increased interest cost savings from accelerated deleveraging. The company reaffirms its original guidance on aircraft deliveries to exceed 120 units, revenues to exceed $6.5 billion, adjusted EBIT(1) and adjusted EBITDA(1) to greater than $375 million and greater than $825 million respectively(2).
Following the first half results, as well as actions towards debt repayments, the company’s adjusted liquidity(1) remains strong at approximately $1.8 billion, which includes cash and cash equivalents of $1.4 billion as well as $0.4 billion of cash collateral supporting various bank guarantees which is included in restricted cash in the Interim consolidated statement of financial position as at June 30, 2022.
In regard to debt reduction, Bombardier paid off $373 million of debt in the second quarter of 2022, which brings Bombardier’s year-to-date debt repayment up to $773 million using cash on hand.
“Our ability to execute our plan was externally recognized, most notably with Moody’s upgrade to our credit rating,” said Martel. “I am particularly proud of this achievement as it underscores that we are making the right financial decisions around order backlog, margin expansion, free cash flow(1) generation, and debt repayment.”
| (1) | Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the Management’s Discussion and Analysis (MD&A) of the Corporation’s financial report for the quarter ended June 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (2) | See the forward-looking statements disclaimer. |
| (3) | Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A of the Corporation’s financial report for the quarter ended June 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (4) | Defined as net new aircraft orders in units over aircraft deliveries in units. |
Guidance Update(1)
| Continuing operations only | 2022 Guidance provided in our 2021 Financial Report(2) | Results for the six-month period ended June 30, 2022 | 2022 Guidance update |
| Aircraft deliveries (in units) | >120 | 49 | >120 |
| Revenues | > $6.5 billion | $2.8 billion | > $6.5 billion |
| Adjusted EBITDA(3) | > $825 million | $368 million | > $825 million |
| Adjusted EBIT(3) | > $375 million | $176 million | > $375 million |
| EBIT | n/a | $186 million | n/a |
| Free cash flow(3) | > $50 million | $514 million | > $515 million |
| Cash flows from operating activities | n/a | $639 million | n/a |
| Net additions to PP&E and intangible assets | n/a | $125 million | n/a |
| (1) | See the forward-looking statements disclaimer. |
| (2) | Refer to our 2021 Financial Report for further details. |
| (3) | Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A of the Corporation’s financial report for the quarter ended June 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
Service Facility Expansions on Track
Bombardier aftermarket services business continues to grow steadily, with planned expansions to the company's services infrastructure advancing as planned, including this year's first inauguration of the newly enhanced service centre in Singapore, which took place on June 30, 2022. The company is in the process of expanding its service facilities in London-Biggin Hill, U.K., as well as Miami, Florida. To add to this, it is inaugurating a brand new site in Melbourne, Australia later this year.
"We stand well placed with our services infrastructure expansion. The network’s stable and recurring revenues continue to have a positive impact on our financial performance and contribute towards accelerating our debt reduction strategy," added Martel.
Achieved Product Development Milestones
In May 2022, Bombardier unveiled updates and enhancements on its ongoing Global 8000 aircraft development. During the first public presentation of the aircraft at EBACE in Geneva, the company announced that the jet is expected to enter into service in 2025 and provided updated aircraft specifications. The new jet, which is the world’s fastest and longest-range purpose-built business aircraft, will now boast an industry-leading range of 8,000 nautical miles, an industry-leading top speed of Mach 0.94 and the only true, four-zone cabin for an aircraft with this range. The introduction of the new Global 8000 aircraft has been a carefully planned investment that further strengthens Bombardier’s impressive portfolio of industry-defining business jets. Development to date has been included in previously disclosed investment figures. All further development costs will be included in Bombardier’s net additions to PP&E and intangibles, which remains in line with its 2025 objectives.
Flight testing and certification activities for the Challenger 3500 aircraft continue to progress on schedule, with the launch customer aircraft on track for entry into service in the third quarter of 2022. The aircraft’s Autothrottle System received Transport Canada Certification in April 2022. In May 2022, Bombardier published an Environmental Product Declaration (EPD) for the jet. Following Bombardier’s recent groundwork on making the Global 7500 aircraft the first business jet ever to receive an EPD, the Challenger 3500 aircraft is the first business jet in the super mid-size segment with such a declaration.
SELECTED RESULTS
| Results of the quarter | |||||||||||
| Three-month periods ended June 30 | 2022 | 2021 | Variance | ||||||||
| Revenues(1) | $ | 1,557 | $ | 1,524 | 2% | ||||||
| Adjusted EBITDA(1)(2) | $ | 201 | $ | 143 | 41% | ||||||
| Adjusted EBITDA margin(1)(3) | 12.9 | % | 9.4 | % | 350 bps | ||||||
| Adjusted EBIT(1)(2) | $ | 103 | $ | 32 | 222% | ||||||
| Adjusted EBIT margin(1)(3) | 6.6 | % | 2.1 | % | 450 bps | ||||||
| EBIT(1) | $ | 101 | $ | 36 | 181% | ||||||
| EBIT margin(1)(4) | 6.5 | % | 2.4 | % | 410 bps | ||||||
| Net income (loss) from continuing operations | $ | (109 | ) | $ | 139 | nmf | |||||
| Net loss from discontinued operations(5) | $ | (20 | ) | $ | — | nmf | |||||
| Net income (loss) | $ | (129 | ) | $ | 139 | nmf | |||||
| Diluted EPS from continuing operations (in dollars)(6) | $ | (1.22 | ) | $ | 1.34 | $ | (2.56) | ||||
| Diluted EPS from discontinued operations (in dollars)(6) | $ | (0.21 | ) | $ | (0.01 | ) | $ | (0.20) | |||
| $ | (1.43 | ) | $ | 1.33 | $ | (2.76) | |||||
| Adjusted net loss(1)(2) | $ | (38 | ) | $ | (137 | ) | 72% | ||||
| Adjusted EPS (in dollars)(1)(3)(6) | $ | (0.48 | ) | $ | (1.49 | ) | $ | 1.01 | |||
| Cash flows from operating activities | |||||||||||
| Continuing operations | $ | 422 | $ | 155 | $ | 267 | |||||
| Discontinued operations | $ | — | $ | — | $ | — | |||||
| $ | 422 | $ | 155 | $ | 267 | ||||||
| Net additions to PP&E and intangible assets | |||||||||||
| Continuing operations | $ | 81 | $ | 64 | $ | 17 | |||||
| Discontinued operations | $ | — | $ | — | $ | — | |||||
| $ | 81 | $ | 64 | $ | 17 | ||||||
| Free cash flow(2) | |||||||||||
| Continuing operations | $ | 341 | $ | 91 | $ | 250 | |||||
| Discontinued operations | $ | — | $ | — | $ | — | |||||
| $ | 341 | $ | 91 | $ | 250 | ||||||
| As at | June 30, 2022 | December 31, 2021 | Variance | ||||||||
| Cash and cash equivalents | $ | 1,394 | $ | 1,675 | (17) % | ||||||
| Order backlog (in billions of dollars)(7) | $ | 14.7 | $ | 12.2 | 20% | ||||||
| (1) | Includes continuing operations only. |
| (2) | Non-GAAP financial measure. A non-GAAP financial measure is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A of the Corporation’s financial report for the quarter ended June 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (3) | Non-GAAP financial ratio. A non-GAAP financial ratio is not a standardized financial measure under the financial reporting framework used to prepare our financial statements and might not be comparable to similar financial measures used by other issuers. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A of the Corporation’s financial report for the quarter ended June 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (4) | Supplementary financial measure. Refer to the section entitled Caution regarding non-GAAP and other financial measures of this press release and to the Non-GAAP and other financial measures section in the MD&A of the Corporation’s financial report for the quarter ended June 30, 2022 for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (5) | Transportation business was classified as discontinued operations. On January 29, 2021, the Corporation closed the sale of the Transportation business to Alstom and recognized a gain related to the sale in the six-month period ended June 30, 2021. The expenses recorded in discontinued operations for the three- and six-month periods ended June 30, 2022 principally relate to change in estimates of a provision for professional fees. |
| (6) | As of June 13, 2022, Bombardier proceeded with a share consolidation of the Corporation’s Class A shares and Class B shares (subordinate voting) at a consolidation ratio of 25-for-1. As a result, the comparative periods have been retroactively restated to reflect the share consolidation. |
| (7) | Represents order backlog for both manufacturing and services. |
| bps: basis points | |
| nmf: information not meaningful | |
About Bombardier
Bombardier is a global leader in aviation, focused on designing, manufacturing, and servicing the world's most exceptional business jets. Bombardier’s Challenger and Global aircraft families are renowned for their cutting-edge innovation, cabin design, performance, and reliability. Bombardier has a worldwide fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments, and private individuals. Bombardier aircraft are also trusted around the world in special-mission roles.
Headquartered in Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, the UAE, Singapore, China, and an Australian facility opening in 2022.
For corporate news and information, including Bombardier’s Environmental, Social and Governance report, visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com. Follow us on Twitter @Bombardier.
Bombardier, Challenger, Challenger 3500, Global, Global 7500, and Global 8000 are trademarks of Bombardier Inc. or its subsidiaries.
For information
| Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier +1 514 855 5001 x13228 | Mark Masluch Senior Director, Communications Bombardier +1 514 855 7167 |
The Management’s Discussion and Analysis (MD&A) and the Interim Consolidated Financial Statements are available at ir.bombardier.com.
CAUTION REGARDING NON-GAAP AND OTHER FINANCIAL MEASURES
This press release is based on reported earnings in accordance with IFRS and on the following non-GAAP and other financial measures:
| Non-GAAP and other financial measures | |
| Non-GAAP Financial Measures | |
| Adjusted EBIT | EBIT excluding special items. Special items comprise items which do not reflect the Corporation’s core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include, among others, the impact of restructuring charges, impact of business disposals and significant impairment charges and reversals. |
| Adjusted EBITDA | Adjusted EBIT plus amortization and impairment charges on PP&E and intangible assets. |
| Adjusted net income (loss) | Net income (loss) excluding special items, accretion on net retirement benefit obligations, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L and the related tax impacts of these items. |
| Free cash flow (usage) | Cash flows from operating activities - continued operations less net additions to PP&E and intangible assets. |
| Available short-term capital resources | Cash and cash equivalents, plus undrawn amounts under credit facilities. |
| Adjusted liquidity | Cash and cash equivalents, plus certain restricted cash supporting various bank guarantees. |
| Adjusted net debt | Long-term debt less cash and cash equivalents less certain restricted cash supporting various bank guarantees. |
| Non-GAAP Financial Ratios | |
| Adjusted EPS | EPS calculated based on adjusted net income attributable to equity holders of Bombardier Inc., using the treasury stock method, giving effect to the exercise of all dilutive elements. |
| Adjusted EBIT margin | Adjusted EBIT, as a percentage of total revenues. |
| Adjusted EBITDA margin | Adjusted EBITDA, as a percentage of total revenues. |
| Adjusted net debt to adjusted EBITDA ratio | Adjusted net debt divided by adjusted EBITDA. |
| Supplementary Financial Measures | |
| Interest paid on long-term debt | Interest paid comprises interest on long-term debt after the effect of hedges, if any, excluding up-front costs paid related to the negotiation of debts or credit facilities. |
| EBIT margin | EBIT, as a percentage of total revenues. |
| Gross margin percentage | Gross margin, as a percentage of total revenues. |
| Net retirement benefit liability | Retirement benefit liability less retirement benefit assets. |
Non-GAAP and other financial measures are measures mainly derived from the consolidated financial statements but are not standardized financial measures under the financial reporting framework used to prepare our financial statements. Therefore, these might not be comparable to similar non-GAAP and other financial measures used by other issuers. The exclusion of certain items from non-GAAP or other financial measures does not imply that these items are necessarily non-recurring.
Adjusted EBIT, adjusted EBITDA and adjusted net income (loss)
Management uses adjusted EBIT, adjusted EBITDA and adjusted net income (loss) for purposes of evaluating underlying business performance. Management believes these non-GAAP earnings measures in addition to IFRS measures provide users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Adjusted EBIT, adjusted EBITDA and adjusted net income (loss) exclude items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on these financial measures. Management believes these measures help users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EPS, adjusted EBIT margin and adjusted EBITDA margin
Management uses adjusted EPS, adjusted EBIT margin and adjusted EBITDA margin for purposes of evaluating underlying business performance. Management believes these non-GAAP financial ratios in addition to IFRS measures provide users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Adjusted EPS, adjusted EBIT margin and adjusted EBITDA margin exclude items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on these financial measures. Management believes these measures help users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Free cash flow (usage)
Free cash flow is defined as cash flows from operating activities - continued operations less net additions to PP&E and intangible assets. Management believes that this non-GAAP cash flow measure provides investors with an important perspective on the Corporation’s generation of cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. This non-GAAP cash flow measure does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity generation.
Adjusted liquidity
Adjusted liquidity is defined as cash and cash equivalents, plus certain restricted cash supporting various bank guarantees. Management believes that this non-GAAP financial measure is a useful measure because it includes items in its results that management believes is a better reflection of the company’s liquidity. This measure does not have any standardized meaning prescribed by IFRS and therefore, may not be comparable to similar measures presented by other companies.
| Reconciliation of adjusted EBIT to EBIT and computation of adjusted EBIT margin(1) | ||||||||||||
| Three-month periods ended June 30 | Six-month periods ended June 30 | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| EBIT | $ | 101 | $ | 36 | $ | 186 | $ | 55 | ||||
| Special items | 2 | (4 | ) | (10 | ) | 6 | ||||||
| Adjusted EBIT | $ | 103 | $ | 32 | $ | 176 | $ | 61 | ||||
| Total revenues | $ | 1,557 | $ | 1,524 | $ | 2,803 | $ | 2,865 | ||||
| Adjusted EBIT margin | 6.6 | % | 2.1 | % | 6.3 | % | 2.1 | % | ||||
| Reconciliation of adjusted EBITDA to EBIT and computation of adjusted EBITDA margin(1) | ||||||||||||
| Three-month periods ended June 30 | Six-month periods ended June 30 | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| EBIT | $ | 101 | $ | 36 | $ | 186 | $ | 55 | ||||
| Amortization | 98 | 111 | 190 | 205 | ||||||||
| Impairment charges on PP&E and intangible assets(2) | — | — | 2 | 3 | ||||||||
| Special items excluding impairment charges on PP&E and intangible assets(2) | 2 | (4 | ) | (10 | ) | 3 | ||||||
| Adjusted EBITDA | $ | 201 | $ | 143 | $ | 368 | $ | 266 | ||||
| Total revenues | $ | 1,557 | $ | 1,524 | $ | 2,803 | $ | 2,865 | ||||
| Adjusted EBITDA margin | 12.9 | % | 9.4 | % | 13.1 | % | 9.3 | % | ||||
| (1) | Includes continuing operations only. |
| (2) | Refer to the Consolidated results of operations section of the MD&A for details regarding special items. |
| Reconciliation of adjusted net loss to net income (loss) and computation of adjusted EPS(1) | ||||||||||||
| Three-month periods ended June 30 | ||||||||||||
| 2022 | 2021 | |||||||||||
| (per share) | (per share) | |||||||||||
| Net income (loss) | $ | (109 | ) | $ | 139 | |||||||
| Adjustments to EBIT related to special items(2) | 2 | $ | 0.02 | (4 | ) | $ | (0.04 | ) | ||||
| Adjustments to net financing expense related to: | ||||||||||||
| Net loss (gain) on certain financial instruments | 82 | 0.86 | (388 | ) | (4.01 | ) | ||||||
| Accretion on net retirement benefit obligations | 7 | 0.07 | 9 | 0.09 | ||||||||
| Loss (gain) on repayment of long-term debt(2) | (21 | ) | (0.22 | ) | 107 | 1.11 | ||||||
| Tax impact of special(2)and other adjusting items | 1 | 0.01 | — | — | ||||||||
| Adjusted net loss | (38 | ) | (137 | ) | ||||||||
| Preferred share dividends, including taxes | (7 | ) | (7 | ) | ||||||||
| Adjusted net loss attributable to equity holders of Bombardier Inc. | $ | (45 | ) | $ | (144 | ) | ||||||
| Weighted-average diluted number of common shares (in thousands)(3) | 94,818 | 96,852 | ||||||||||
| Adjusted EPS (in dollars)(3) | $ | (0.48 | ) | $ | (1.49 | ) | ||||||
| Reconciliation of adjusted EPS to diluted EPS (in dollars)(1) | ||||||
| Three-month periods ended June 30 | ||||||
| 2022 | 2021 | |||||
| Diluted EPS(3) | $ | (1.22 | ) | $ | 1.34 | |
| Impact of special(2)and other adjusting items(3) | 0.74 | (2.83 | ) | |||
| Adjusted EPS(3) | $ | (0.48 | ) | $ | (1.49 | ) |
| Reconciliation of adjusted net loss to net loss and computation of adjusted EPS(1) | ||||||||||||
| Six-month periods ended June 30 | ||||||||||||
| 2022 | 2021 | |||||||||||
| (per share) | (per share) | |||||||||||
| Net loss | $ | (396 | ) | $ | (112 | ) | ||||||
| Adjustments to EBIT related to special items(2) | (10 | ) | $ | (0.11 | ) | 6 | $ | 0.06 | ||||
| Adjustments to net financing expense related to: | ||||||||||||
| Net loss (gain) on certain financial instruments | 286 | 3.01 | (407 | ) | (4.20 | ) | ||||||
| Accretion on net retirement benefit obligations | 15 | 0.16 | 20 | 0.21 | ||||||||
| Loss (gain) on repayment of long-term debt(2) | (3 | ) | (0.03 | ) | 183 | 1.89 | ||||||
| Adjusted net loss | (108 | ) | (310 | ) | ||||||||
| Preferred share dividends, including taxes | (14 | ) | (14 | ) | ||||||||
| Adjusted net loss attributable to equity holders of Bombardier Inc. | $ | (122 | ) | $ | (324 | ) | ||||||
| Weighted-average diluted number of common shares (in thousands)(3) | 94,968 | 96,850 | ||||||||||
| Adjusted EPS (in dollars)(3) | $ | (1.28 | ) | $ | (3.35 | ) | ||||||
| Reconciliation of adjusted EPS to diluted EPS (in dollars)(1) | ||||||
| Six-month periods ended June 30 | ||||||
| 2022 | 2021 | |||||
| Diluted EPS(3) | $ | (4.31 | ) | $ | (1.27 | ) |
| Impact of special(2)and other adjusting items(3) | 3.03 | (2.08 | ) | |||
| Adjusted EPS(3) | $ | (1.28 | ) | $ | (3.35 | ) |
| (1) | Includes continuing operations only. |
| (2) | Refer to the Consolidated results of operations section for details regarding special items. |
| (3) | As of June 13, 2022, Bombardier proceeded with a share consolidation of the Corporation’s Class A shares and Class B shares (subordinate voting) at a consolidation ratio of 25-for-1. As a result, the comparative periods have been retroactively restated to reflect the share consolidation. |
| Reconciliation of free cash flow (usage) to cash flows from operating activities | ||||||||||||
| Three-month periods ended June 30 | Six-month periods ended June 30 | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Cash flows from operating activities - continuing operations | $ | 422 | $ | 155 | $ | 639 | $ | (217 | ) | |||
| Net additions to PP&E and intangible assets | (81 | ) | (64 | ) | (125 | ) | (97 | ) | ||||
| Free cash flow (usage) from continuing operations | $ | 341 | $ | 91 | $ | 514 | $ | (314 | ) | |||
| Reconciliation of adjusted liquidity to cash and cash equivalents | ||||
| As at | June 30, 2022 | December 31, 2021 | ||
| Cash and cash equivalents | $ | 1,394 | $ | 1,675 |
| Certain restricted cash supporting various bank guarantees | 410 | 429 | ||
| Adjusted liquidity | $ | 1,804 | $ | 2,104 |
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, anticipations and outlook or guidance in respect of various financial and global metrics and sources of contribution thereto, targets, goals, priorities, market and strategies, financial position, financial performance, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; customer value; expected demand for products and services; growth strategy; 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 execution of orders in general; competitive position; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings; strength of capital profile and balance sheet, creditworthiness, available liquidities and capital resources, expected financial requirements, and ongoing review of strategic and financial alternatives; the introduction of productivity enhancements, operational efficiencies, cost reduction and restructuring initiatives, and anticipated costs, intended benefits and timing thereof; the anticipated business transition to growth cycle and cash generation; expectations, objectives and strategies regarding debt repayment, refinancing of maturities and interest cost reduction; compliance with restrictive debt covenants; expectations regarding the declaration and payment of dividends on our preferred shares; intentions and objectives for our programs, assets and operations; expectations regarding the availability of government assistance programs; the impact of both the ongoing COVID-19 pandemic and the ongoing military conflict between Ukraine and Russia on the foregoing and the effectiveness of plans and measures we have implemented in response thereto; and expectations regarding the strength of the market and economic recovery in the aftermath of the COVID-19 pandemic.
Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of our current objectives, strategic priorities, expectations, outlook and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
By their nature, forward-looking statements require management 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 forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this press release include the following material assumptions: growth of the business aviation market and the Corporation’s share of such market; proper identification of recurring cost savings and executing on our cost reduction plan; optimization of our real estate portfolio, including through the sale or other transaction in respect of real estate assets on favorable terms; and access to working capital facilities on market terms. For additional information, including with respect to other assumptions underlying the forward-looking statements made in this press release, refer to the Forward-looking statements - Assumptions section in the MD&A of our financial report for the fiscal year ended December 31, 2021. Given the impact of the changing circumstances surrounding both the ongoing COVID-19 pandemic and the ongoing military conflict between Ukraine and Russia, including because of the emergence of COVID-19 variants and the imposition of financial and economic sanctions and export control limitations, and the related response from the Corporation, governments (federal, provincial and municipal, both domestic, foreign and multinational inter-governmental organizations), regulatory authorities, businesses, suppliers, customers, counterparties and third-party service providers, there is inherently more uncertainty associated with the Corporation’s assumptions as compared to prior periods.
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: risks associated with general economic conditions, risks associated with our business environment (such as risks associated with the financial condition of business aircraft customers; trade policy; financial and
economic sanctions and export control limitations; increased competition; political instability; global climate change; and force majeure events); operational risks (such as risks related to developing new products and services; development of new business; order backlog; the certification of products and services; the execution of orders; pressures on cash flows and capital expenditures based on seasonality and cyclicality; execution of our strategy, productivity enhancements, operational efficiencies, restructuring and cost reduction initiatives; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; environmental, health and safety risks; dependence on certain customers, contracts and suppliers; supply chain risks; human resources including the global availability of a skilled workforce; reliance on information systems; reliance on and protection of intellectual property rights; reputation risks; risk management; tax matters; and adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; retirement benefit plan risk; exposure to credit risk; substantial debt and interest payment requirements; restrictive debt covenants; reliance on debt management and interest cost reduction strategies; and reliance on government support); market risks (such as foreign currency fluctuations; changing interest rates; increases in commodity prices; and inflation rate fluctuations); technology, privacy, cyber security and reputational risks; and other unforeseen adverse events. For more details, see the Risks and uncertainties section in Other in this press release and in the MD&A of our financial report for the fiscal year ended December 31, 2021. Any one or more of the foregoing factors may be exacerbated by the ongoing COVID-19 pandemic and the ongoing military conflict between Ukraine and Russia, and may have a significantly more severe impact on the Corporation’s business, results of operations and financial condition than in the absence of such events.
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. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in our forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this report 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.
