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CAE Reports Q1 Financial Results; Marc Parent Quoted

3 mins read
Marc Parent
Marc Parent

CAE has released its first quarter fiscal year 2021 financial results, reporting a revenue of $550.5 million, compared with $825.6 million in the first quarter last year, CAE announced on Wednesday

"CAE has shown considerable agility and resiliency, having significantly mitigated our loss position and maintained a solid financial base in the first quarter, amid the most challenging conditions our company has ever faced,” said Marc Parent, CAE's president and chief executive officer. 

CAE reported its first quarter net loss of $110.6 million, compared to a net income of $61.5 million last year. The company’s first quarter segment operating loss was $110.3 million compared with a segment operating income of $110.9 million in the first quarter of last year. 

The company’s segment operating loss before specific items in the first quarter of fiscal 2021 was $2.1 million compared with a segment operating income of $113.3 million last year. CAE’s backlog remains at $8.6 billion. 

CAE’s first quarter Civil revenue was $248.0 million, down 48 percent compared to the same quarter last year. Segment operating loss was $97.9 million compared to a segment operating income of $98.6 million in the first quarter last year. 

First quarter segment operating loss before specific items was $16.2 million, down 116 percent compared to the first quarter last year. The company’s civil division delivered 2 full-flight simulators (FFSs) to customers and first quarter Civil training centre utilization was 33 percent. CAE reported that utilization averaged 41 percent in June and has since continued to be approximately 40 percent.

The company’s defense unit revenue was $280.2 million, down 13 percent compared to the same quarter last year and segment operating loss was $9.2 million compared to a segment operating income of $15.1 million in the first quarter last year. First quarter segment operating income before specific items was $17.3 million, up 15 percent compared to the first quarter last year.

CAE’s first quarter Healthcare revenue was $22.3 million, down 19 percent compared to $27.5 million in the same quarter last year, and first quarter segment operating loss was $3.2 million, compared to a loss of $2.8 million in the first quarter last year.

CAE recorded non-operational costs of $108.2 million during the first quarter of fiscal 2021 relating mainly to impairment charges on property, plant and equipment, intangible assets and certain financial assets as a result of the continued negative impacts of the COVID-19 pandemic.

"We continue to view the current fiscal year as a tale of two halves, with the first half of the year marked by lower demand and disruptions, and the second half, to potentially begin to inflect more positively," Parent concluded.

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