NAV CANADA Announces First Quarter Financial Results
(Ottawa, January 12, 2006) – Financial results issued today by NAV CANADA, for the three months ended November 30, 2005, show an $ 11 million improvement in the Company’s rate stabilization account during the quarter.
“Revenues exceeded expenses due to traffic growth and continued success in controlling costs, allowing the Company to make further progress in replenishing our rate stabilization account,” said John Crichton, President and Chief Executive Officer. “The account reached a balance of $ 49 million at quarter end, up from $ 38 million at the end of last fiscal year.”
The Company’s revenues for the first quarter were $ 292 million, compared to $ 279 million for the comparable period in the previous year. The higher revenues arose from a 4.1 per cent year-over-year increase in air traffic and increases in non-aeronautical revenues.
Operating expenses for the quarter of $ 218 million were $ 14 million or 6.8 per cent higher than in the comparable period last year. This is primarily due to increased pension costs in the current quarter.
During the first quarter of fiscal 2006, interest and depreciation totalling $ 56 million was consistent with the same period in the prior year. The results include lower interest rates on renewed medium-term notes and lower net borrowing levels, offset by the introduction of new operational systems on which depreciation was taken for the first time.
The results for the current quarter include an $ 11 million improvement in the rate stabilization account, resulting in a quarter-end positive balance of $ 49 million. Without this change in the rate stabilization account, revenues would have exceeded expenses by $ 18 million in the first quarter.
After reflecting rate stabilization amounts, total revenues for the quarter were $ 286 million and total expenses were $ 279 million. In the same quarter last year, total revenues and total expenses were $ 271 million. While NAV CANADA aims to break even on an annual basis, quarterly results may indicate an imbalance between revenues and expenses due to seasonal fluctuations in air traffic and other factors. Consistent with this approach, the Company intends to break even in fiscal 2006, while replenishing its rate stabilization account.
Nav Canada 1st quarter results
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marktheone
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Re: Nav Canada 1st quarter results
At least they are trying to break even. They definetly, IMHO, should not be permitted to turn a profit. Especially because most of us 703 guys can't.charlie_g wrote: After reflecting rate stabilization amounts, total revenues for the quarter were $ 286 million and total expenses were $ 279 million. In the same quarter last year, total revenues and total expenses were $ 271 million. While NAV CANADA aims to break even on an annual basis, quarterly results may indicate an imbalance between revenues and expenses due to seasonal fluctuations in air traffic and other factors. Consistent with this approach, the Company intends to break even in fiscal 2006, while replenishing its rate stabilization account.
As per the legislation that created Nav Canada as an entity, they can't:marktheone wrote: At least they are trying to break even. They definetly, IMHO, should not be permitted to turn a profit. Especially because most of us 703 guys can't.
"In establishing new charges or revising existing charges for its services, NAV CANADA must follow the charging principles as set out in the ANS Act. The principles in the Act prescribe that "such charges must not be set at a level that, based on reasonable and prudent projections, would generate revenues exceeding the Corporation's current and future financial requirements in relation to the provision of civil aviation services.
Should actual revenues exceed the Company's current and future financial requirements, such excess will be reflected as a liability in the rate stabilization account and will be returned to customers when establishing future customer service charges. Similarly, should actual revenues be insufficient to meet current financial requirements, such shortfalls will be reflected as an asset in the rate stabilization account and will be recovered from customers through future customer service charges."
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marktheone
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Executive salary ranges, as per the 2004 Annual Report (available online for anyone to see):marktheone wrote:Charlie is there any sort of legislation in place to keep the upper management from taking home a $1000000 salary to keep the line from going black? I hope so.
Mark
President & CEO: $355k - $533k
VP Finance & CFO: $204k - $306k
VP Operations: $204k - $306k
VP HR: $179k - $269k
