- 2023 revenues of $8 billion, up 16% year-over-year, driven by higher deliveries and record-setting business jet aftermarket revenues of $1.75 billion, up 16% year-over-year. ?
- 2023 adjusted EBITDA(1) reflects significant 32% year-over-year jump to $1.23 billion. Full year reported EBIT reached $793 million.
- Adjusted EPS(2) up 412% year-over-year from $0.77 to $3.94. Diluted EPS from continuing operations reached $4.70. Net income from continuing operations and adjusted net income(1) were $490 million and $416 million respectively.
- Free cash flow(1)generation from continuing operations met 2023 guidanceat $257 million, while cash flows from operating activities and net additions to PP&E and intangible assets were at $623 million and $366 million respectively.?
- Full-year unit book-to-bill(3)of 1 follows year-over-year delivery growth curve, reflects strong demand. Backlog(4)stood healthy at $14.2 billion. ?
- Rapid and meaningful improvement in adjusted net debt to adjusted EBITDA ratio(2), seeing 28% year-over-year reduction, from 4.6x to 3.3x. Available liquidity(1)remained strong at $1.8 billion; cash and cash equivalents were $1.6 billion as at December 31, 2023. ?
- After meeting or exceeding its 2023 guidance, the company is again guiding for growth in 2024(5).
All amounts in this press release are in U.S. dollars, unless otherwise indicated.
Amounts in tables are in millions except per share amounts, unless otherwise indicated.
MONTRÉAL, Feb. 08, 2024 (GLOBE NEWSWIRE) -- Bombardier Inc. (TSX: BBD.B) today presented strong 2023 fourth quarter and full-year financial results which met or exceeded the company's 2023 guidance. Bombardier also unveiled its guidance for 2024, which reflects the company's steady progress towards its long-term objectives.
"Our Global aircraft broke many speed records in 2023, but those were not the only records we set last year. Our team came together to deliver the highest revenues and earnings, record aftermarket revenue, and the highest deliveries since we refocused our business in 2021. Our stellar top- and bottom-line performance included the lowest leverage ratio in years," said Éric Martel, President and Chief Executive Officer, Bombardier. "I could not be prouder of our passionate and engaged teams around the world. All of us united to go above and beyond to make sure we kept - and often exceeded - our promises. Today, we are marching ahead with confidence: our 2024 guidance reflects the path of continuous growth we have been on for the past three years, and our steadfast commitment to achieving our long-term objectives."
Record revenue growth marked by outstanding aftermarket performance
Bombardier reported total revenues of $8 billion for 2023, a 16% increase compared to 2022 and the highest since the company refocused its business in 2021. A key element was the aftermarket revenue, which reached an all-time high of $1.75 billion. After the significant 2022 expansion of Bombardier's worldwide service network, 2023 was marked by the new or newly expanded service facilities coming online, fueling the company's vibrant aftermarket business, which has now firmly established itself as a predictable and consistent source of revenue.
Record earnings, meaningful cash generation and continued deleveraging
Bombardier also reported a significant jump in earnings in 2023: adjusted EBITDA(1) rose 32% from last year to $1.23 billion, driven by increased deliveries, greater Global 7500 contribution, and a higher aftermarket contribution. Full-year reported EBIT reached $793 million, while adjusted EBIT(1) was $799 million.
Thanks in particular to Bombardier's impressive performance in the fourth quarter, especially in terms of earnings growth and strong order intake, full-year free cash flow(1) generation from continuing operations reached $257 million, beating the company's 2023 guidance. Cash flows from operating activities and net additions to PP&E and intangible assets for the full year were also significant at $623 million and $366 million respectively.
Bombardier continued to prioritize debt reduction in 2023, paying down $0.4 billion during the year, improving adjusted net debt to adjusted EBITDA ratio(2) by 28% when compared to 2022, and resulting in a 3.3 adjusted net debt to adjusted EBITDA ratio(2), the lowest in years.
Continued strong activity on orders, deliveries and healthy backlog
Bombardier continued to manage its production in a disciplined and proactive manner and made the most of steady and strong demand. The company reported a solid full-year book-to-bill(3) of 1, while the multi-year backlog(4) stood strong at $14.2 billion. Bombardier also reached its target of 138 aircraft delivered in 2023, with a particularly active fourth quarter.
2024 Outlook(5)
Bombardier also announced today its goals for 2024 with new guidance that projects a continuation of the company's momentum towards its long-term objectives.
| 2024 Guidance(5) | ||
| 2023 Full-Year Results | 2024 Guidance | |
| Aircraft deliveries (in units) | 138 | 150 - 155 |
| Revenues | 8.0 billion | $8.4 billion - $8.6 billion |
| Adjusted EBITDA(1) | $1.23 billion | $1.30 billion - $1.35 billion |
| Adjusted EBIT(1) | $799 million | $850 million - $900 million |
| Free cash flow(1) | $257 million | $100 million - 400 million |
Bombardier anticipates delivering 150 to 155 aircraft. This increase in deliveries, along with better pricing and the expansion of the aftermarket business, will contribute to anticipated revenue increase that is set to reach between $8.4 billion and $8.6 billion in 2024. The company also aims to improve profitability further, with adjusted EBITDA(1) reaching between $1.30 billion and $1.35 billion, and adjusted EBIT(1) increasing to between $850 million and $900 million. On the free cash flow(1) generation front, the company expects to generate between $100 million and $400 million, accounting for the working capital required to support the growth of deliveries and investments supporting previously announced growth opportunities. Net additions to PP&E and intangible assets are expected to go below $300 million.
| (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 Discussion & Analysis of the Corporation's financial report for the fiscal year ended December 31, 2023 ("MD&A") for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (2) | 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 for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (3) | Defined as net new aircraft orders in units over aircraft deliveries in units. |
| (4) | Represents order backlog for both manufacturing and services. |
| (5) | Forward-looking statement. See the forward-looking statements disclaimer herein and see the forward-looking statements assumptions on which the 2024 guidance is based in the MD&A for further details on our 2024 guidance. |
| SELECTED RESULTS | |||||||||||||
| For the fiscal years ended December 31 | 2023 | 2022 | Variance | ||||||||||
| Revenues | $ | 8,046 | $ | 6,913 | 16 | % | |||||||
| Adjusted EBITDA(1) | $ | 1,230 | $ | 930 | 32 | % | |||||||
| Adjusted EBITDA margin(2) | 15.3 | % | 13.5 | % | 180 bps | ||||||||
| Adjusted EBIT(1)(3) | $ | 799 | $ | 515 | 55 | % | |||||||
| Adjusted EBIT margin(2) | 9.9 | % | 7.4 | % | 250 bps | ||||||||
| EBIT | $ | 793 | $ | 538 | 47 | % | |||||||
| EBIT margin(4) | 9.9 | % | 7.8 | % | 210 bps | ||||||||
| Net income (loss) from continuing operations | $ | 490 | $ | (128 | ) | $ | 618 | ||||||
| Net income (loss) from discontinued operations(5) | $ | (45 | ) | $ | (20 | ) | $ | (25 | ) | ||||
| Net income (loss) | $ | 445 | $ | (148 | ) | $ | 593 | ||||||
| Diluted EPS from continuing operations (in dollars) | $ | 4.70 | $ | (1.67 | ) | $ | 6.37 | ||||||
| Diluted EPS from discontinued operations (in dollars)(5) | $ | (0.46 | ) | $ | (0.21 | ) | $ | (0.25 | ) | ||||
| $ | 4.24 | $ | (1.88 | ) | $ | 6.12 | |||||||
| Adjusted net income(1)(3) | $ | 416 | $ | 104 | $ | 312 | |||||||
| Adjusted EPS (in dollars)(2)(3) | $ | 3.94 | $ | 0.77 | $ | 3.17 | |||||||
| Cash flows from operating activities(6) | $ | 623 | $ | 1,072 | $ | (449 | ) | ||||||
| Net additions to PP&E and intangible assets(6) | $ | 366 | $ | 337 | $ | 29 | |||||||
| Free cash flow(1)(6) | $ | 257 | $ | 735 | $ | (478 | ) | ||||||
| As at December 31 | 2023 | 2022 | Variance | ||||||||||
| Cash and cash equivalents | $ | 1,594 | $ | 1,291 | 23 | % | |||||||
| Available liquidity(1) | $ | 1,845 | $ | 1,499 | $ | 346 | |||||||
| Order backlog (in billions of dollars)(7) | $ | 14.2 | $ | 14.8 | (4 | )% | |||||||
| (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 MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (2) | 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 for definitions of these metrics and reconciliations to the most comparable IFRS measures. |
| (3) | Special items and certain items of other expense (income) were mainly reclassified to gain related to disposal of business, impairment and program termination, and restructuring charges, including comparative figures. See Note 37 - Reclassification of the Consolidated financial statements for more information. |
| (4) | Supplementary financial measure. Refer to the Non-GAAP and other financial measures section of this press release and to the Non-GAAP and other financial measures section of the MD&A for definitions of these metrics. |
| (5) | Discontinued operations are related to the sale of the Transportation business. The expenses recorded in discontinued operations for fiscal years 2023 and 2022 principally relate to change in estimates of a provision for professional fees. |
| (6) | Only from continuing operations. |
| (7) | Represents order backlog for both manufacturing and services. |
About Bombardier
Bombardier (BBD-B.TO) 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 more than 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 government and military special-mission roles leveraging Bombardier Defense's proven expertise.?
Headquartered in Greater Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company's robust customer support network services the Learjet, Challenger and Global families of aircraft, and 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 Australia.?
For corporate news and information, including Bombardier's Environmental, Social and Governance report, as well as the company's plans to cover all its flight operations with Sustainable Aviation Fuel. Learn more about Bombardier's industry-leading products and customer service network at businessaircraft.bombardier.com. Follow us on X.??
Bombardier, Global, Global 7500, Challenger and Learjet are registered trademarks of Bombardier Inc. or its subsidiaries.
For information
| Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier +1 514 240 9649 | Mark Masluch Senior Director, Communications Bombardier +1 514 855 7167 |
The Management's Discussion and Analysis and the Consolidated Financial Statements are available atir.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 certain items which do not reflect the Corporations 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 restructuring charges, (gain) loss related to disposal of business, impairment and program termination, certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases, and non-commercial legal claims. |
| Adjusted EBITDA | Adjusted EBIT plus amortization charges on PP&E and intangible assets. |
| Adjusted net income (loss) | Net income (loss) from continuing operations excluding restructuring charges, (gain) loss related to disposal of business, impairment and program termination, certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases, non-commercial legal claims, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L, accretion on net retirement benefit obligation, losses (gains) on repayment of long-term debt, changes in discount rates of provisions 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 liquidity | Cash and cash equivalents, plus undrawn amounts under credit facilities. |
| 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 Measure | |
| EBIT margin | EBIT, as a percentage of total revenues. |
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 EBIT is defined as the EBIT excluding certain items which do not reflect the Corporations 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 restructuring charges(1)(2), (gain) loss related to disposal of business(1)(3), impairment and program termination(1)(4), certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases(1), and non-commercial legal claims(1). Management uses adjusted EBIT for purposes of evaluating underlying business performance. Management believes presentation of this non-GAAP operating earnings measure in addition to IFRS measures provides 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. For these reasons, a significant number of users of the MD&A analyze our results based on this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBITDA
Adjusted EBITDA is defined as the EBIT excluding restructuring charges(1)(2), (gain) loss related to disposal of business(1)(3), impairment and program termination(1)(4), certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases(1), and non-commercial legal claims(1), amortization charges on PP&E and intangible assets. Management uses adjusted EBITDA for purposes of evaluating underlying business performance. Management believes this non-GAAP operating earnings measure in addition to IFRS measures provides 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, since it excludes the effects of items that are usually associated with investing or financing activities and 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 this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted net income (loss)
Adjusted net income (loss) is defined as the net income (loss) from continuing operations adjusted for certain specific items that are significant but are not, based on management's judgment, reflective of the Corporation's underlying operations. These include adjustments related to restructuring charges(1)(2), (gain) loss related to disposal of business(1)(3), impairment and program termination(1)(4), certain one-time pension related items included in other (income) expense such as (gain) loss on pension annuity purchases(1), non-commercial legal claims(1), certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L, accretion on net retirement benefit obligation, losses (gains) on repayment of long-term debt, changes in discount rates of provisions and the related tax impacts of these items. Management uses adjusted net income (loss) for purposes of evaluating underlying business performance. Management believes this non-GAAP earnings measure in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted net income (loss) excludes 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 this financial measure. Management believes this measure helps 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 (usage) 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 (usage) as a measure to assess both business performance and overall liquidity generation.
Available liquidity
This measure was previously referred to as available short-term capital resources from continuing operations. Available liquidity is defined as cash and cash equivalents plus undrawn amounts under credit facilities. Management believes that this non-GAAP financial measure provides investors with an important perspective on the Corporation's ability to meet expected liquidity requirements, including the support of product development initiatives and to ensure financial flexibility. This measure does not have any standardized meaning prescribed by IFRS and therefore, may not be comparable to similar measures presented by other companies.
Adjusted EPS
Adjusted EPS is defined as the adjusted net income (loss) attributable to equity shareholders of Bombardier Inc.,divided by the weighted-average diluted number of common shares for the period. Management uses adjusted EPS for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides 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 excludes 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 this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBIT margin
Adjusted EBIT margin is defined as the adjusted EBIT expressed as a percentage of total revenues. Management uses adjusted EBIT margin for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted EBIT margin excludes 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 this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted EBITDA margin
Adjusted EBITDA margin is defined as the adjusted EBITDA expressed as a percentage of total revenues. Management uses adjusted EBITDA margin for purposes of evaluating underlying business performance. Management believes this non-GAAP financial ratio in addition to IFRS measures provides users of our Financial Report with enhanced understanding of our results and related trends and increase the transparency and clarity of the core results of our business. Adjusted EBITDA margin excludes 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 this financial measure. Management believes this measure helps users of the MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Adjusted net debt to adjusted EBITDA ratio
Management uses adjusted net debt to adjusted EBITDA ratio as a useful credit measure for purposes of measuring the Corporation's ability to service its debt and other long-term obligations. This non-GAAP financial ratio does not have any standardized meaning prescribed by IFRS and therefore, may not be comparable to similar measures presented by other companies.
| (1) | Special items and certain items of other expense (income) were mainly reclassified to gain related to disposal of business, impairment and program termination, and restructuring charges, including comparative figures. See Note 37 - Reclassification of the Consolidated financial statements for more information. |
| (2) | Includes severance charges or related reversal as well as curtailment losses (gains), if any. |
| (3) | Includes changes in provisions related to past divestitures. |
| (4) | Includes impairment or reversal of impairment of PP&E and intangible assets, as well as provisions related to program termination or their related reversal, if any. For fiscal year 2023, includes impairment of $85 million related to an aircraft product upgrade, started in 2018 and paused in 2020. |
| Reconciliation of adjusted EBIT to EBIT and computation of adjusted EBIT margin(1) | ||||||||||||||||
| Fourth quarters ended December 31 | Fiscal years ended December 31 | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| EBIT | $ | 211 | $ | 207 | $ | 793 | $ | 538 | ||||||||
| Restructuring charges(2)(3) | 1 | 7 | 1 | 8 | ||||||||||||
| Loss (gain) related to disposal of business(2)(4) | (19 | ) | 2 | (81 | ) | (22 | ) | |||||||||
| Impairment and program termination(2)(5) | 82 | (4 | ) | 83 | (9 | ) | ||||||||||
| Pension related items(2)(6) | 3 | - | 3 | - | ||||||||||||
| Adjusted EBIT | $ | 278 | $ | 212 | $ | 799 | $ | 515 | ||||||||
| Total revenues | $ | 3,062 | $ | 2,655 | $ | 8,046 | $ | 6,913 | ||||||||
| Adjusted EBIT margin | 9.1 | % | 8.0 | % | 9.9 | % | 7.4 | % | ||||||||
| Reconciliation of adjusted EBITDA to EBIT and computation of adjusted EBITDA margin(1) | ||||||||||||||||
| Fourth quarters ended December 31 | Fiscal years ended December 31 | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| EBIT | $ | 211 | $ | 207 | $ | 793 | $ | 538 | ||||||||
| Amortization | 180 | 140 | 431 | 415 | ||||||||||||
| Restructuring charges(2)(3) | 1 | 7 | 1 | 8 | ||||||||||||
| Loss (gain) related to disposal of business(2)(4) | (19 | ) | 2 | (81 | ) | (22 | ) | |||||||||
| Impairment and program termination(2)(5) | 82 | (4 | ) | 83 | (9 | ) | ||||||||||
| Pension related items(2)(6) | 3 | - | 3 | - | ||||||||||||
| Adjusted EBITDA | $ | 458 | $ | 352 | $ | 1,230 | $ | 930 | ||||||||
| Total revenues | $ | 3,062 | $ | 2,655 | $ | 8,046 | $ | 6,913 | ||||||||
| Adjusted EBITDA margin | 15.0 | % | 13.3 | % | 15.3 | % | 13.5 | % | ||||||||
| Reconciliation of adjusted net income to net income and computation of adjusted EPS(1) | ||||||||||||||
| Fourth quarters ended December 31 | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| (per share | ) | (per share | ) | |||||||||||
| Net income from continuing operations | $ | 215 | $ | 241 | ||||||||||
| Adjustments to EBIT related to: | ||||||||||||||
| Restructuring charges(2)(3) | 1 | 0.01 | 7 | 0.07 | ||||||||||
| Loss (gain) related to disposal of business(2)(4) | (19 | ) | (0.19 | ) | 2 | 0.02 | ||||||||
| Impairment and program termination(2)(5) | 82 | 0.83 | (4 | ) | (0.04 | ) | ||||||||
| Pension related items(2)(6) | 3 | 0.03 | - | - | ||||||||||
| Adjustments to net financing expense related to: | ||||||||||||||
| Net gain on certain financial instruments | (162 | ) | (1.65 | ) | (44 | ) | (0.45 | ) | ||||||
| Accretion on net retirement benefit obligations | 6 | 0.06 | 8 | 0.08 | ||||||||||
| Losses on repayment of long-term debt | 16 | 0.16 | 3 | 0.03 | ||||||||||
| Changes in discount rates of provisions | 1 | 0.01 | - | - | ||||||||||
| Tax impact of adjusting items | - | - | (1 | ) | (0.01 | ) | ||||||||
| Adjusted net income | 143 | 212 | ||||||||||||
| Preferred share dividends, including taxes | (8 | ) | (7 | ) | ||||||||||
| Adjusted net income attributable to equity holders of Bombardier Inc. | $ | 135 | $ | 205 | ||||||||||
| Weighted-average adjusted diluted number of common shares (in thousands) | 98,409 | 97,423 | ||||||||||||
| Adjusted EPS (in dollars) | $ | 1.37 | $ | 2.10 | ||||||||||
| Reconciliation of adjusted EPS to diluted EPS (in dollars)(1) | ||||||||
| Fourth quarters ended December 31 | ||||||||
| 2023 | 2022 | |||||||
| Diluted EPS from continuing operations | $ | 2.11 | $ | 2.40 | ||||
| Impact of adjustment to EBIT related to: | ||||||||
| Restructuring charges(2)(3) | 0.01 | 0.07 | ||||||
| Loss (gain) related to disposal of business(2)(4) | (0.19 | ) | 0.02 | |||||
| Impairment and program termination(2)(5) | 0.83 | (0.04 | ) | |||||
| Pension related items(2)(6) | 0.03 | - | ||||||
| Adjustments to net financing expense related to: | ||||||||
| Net gain on certain financial instruments | (1.65 | ) | (0.45 | ) | ||||
| Accretion on net retirement benefit obligations | 0.06 | 0.08 | ||||||
| Losses on repayment of long-term debt | 0.16 | 0.03 | ||||||
| Changes in discount rates of provisions | 0.01 | - | ||||||
| Tax impact of adjusting items | - | (0.01 | ) | |||||
| Adjusted EPS | $ | 1.37 | $ | 2.10 | ||||
| Reconciliation of adjusted net income (loss) to net income (loss) and computation of adjusted EPS(1) | ||||||||||||||
| Fiscal years ended December 31 | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| (per share | ) | (per share | ) | |||||||||||
| Net income (loss) from continuing operations | $ | 490 | $ | (128 | ) | |||||||||
| Adjustments to EBIT related to: | ||||||||||||||
| Restructuring charges(2)(3) | 1 | 0.01 | 8 | 0.08 | ||||||||||
| Gain related to disposal of business(2)(4) | (81 | ) | (0.83 | ) | (22 | ) | (0.23 | ) | ||||||
| Impairment and program termination(2)(5) | 83 | 0.85 | (9 | ) | (0.09 | ) | ||||||||
| Pension related items(2)(6) | 3 | 0.03 | - | - | ||||||||||
| Adjustments to net financing expense related to: | ||||||||||||||
| Net loss (gain) on certain financial instruments | (160 | ) | (1.64 | ) | 228 | 2.34 | ||||||||
| Accretion on net retirement benefit obligations | 25 | 0.26 | 31 | 0.32 | ||||||||||
| Losses (gains) on repayment of long-term debt | 54 | 0.55 | (1 | ) | (0.01 | ) | ||||||||
| Changes in discount rates of provisions | 1 | 0.01 | (2 | ) | (0.02 | ) | ||||||||
| Effect of dilution | - | - | - | 0.06 | ||||||||||
| Tax impact of adjusting items | - | - | (1 | ) | (0.01 | ) | ||||||||
| Adjusted net income | 416 | 104 | ||||||||||||
| Preferred share dividends, including taxes | (31 | ) | (29 | ) | ||||||||||
| Adjusted net income attributable to equity holders of Bombardier Inc. | $ | 385 | $ | 75 | ||||||||||
| Weighted-average adjusted diluted number of common shares (in thousands) | 97,721 | 97,642 | ||||||||||||
| Adjusted EPS (in dollars) | $ | 3.94 | $ | 0.77 | ||||||||||
| Reconciliation of adjusted EPS to diluted EPS (in dollars)(1) | ||||||||
| Fiscal years ended December 31 | ||||||||
| 2023 | 2022 | |||||||
| Diluted EPS from continuing operations | $ | 4.70 | $ | (1.67 | ) | |||
| Impact of adjustment to EBIT related to: | ||||||||
| Restructuring charges(2)(3) | 0.01 | 0.08 | ||||||
| Gain related to disposal of business(2)(4) | (0.83 | ) | (0.23 | ) | ||||
| Impairment and program termination(2)(5) | 0.85 | (0.09 | ) | |||||
| Pension related items(2)(6) | 0.03 | - | ||||||
| Adjustments to net financing expense related to: | ||||||||
| Net loss (gain) on certain financial instruments | (1.64 | ) | 2.34 | |||||
| Accretion on net retirement benefit obligations | 0.26 | 0.32 | ||||||
| Losses (gains) on repayment of long-term debt | 0.55 | (0.01 | ) | |||||
| Changes in discount rates of provisions | 0.01 | (0.02 | ) | |||||
| Effect of dilution | - | 0.06 | ||||||
| Tax impact of adjusting items | - | (0.01 | ) | |||||
| Adjusted EPS | $ | 3.94 | $ | 0.77 | ||||
| Reconciliation of free cash flow to cash flows from operating activities(1) | |||||||||||||||
| Fourth quarters ended December 31 | Fiscal years ended December 31 | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Cash flows from operating activities - continuing operations | $ | 740 | $ | 311 | $ | 623 | $ | 1,072 | |||||||
| Net additions to PP&E and intangible assets | (94 | ) | (142 | ) | (366 | ) | (337 | ) | |||||||
| Free cash flow from continuing operations | $ | 646 | $ | 169 | $ | 257 | $ | 735 | |||||||
| Reconciliation of available liquidity to cash and cash equivalents | |||||||
| As at | December 31, 2023 | December 31, 2022 | |||||
| Cash and cash equivalents | $ | 1,594 | $ | 1,291 | |||
| Undrawn amounts under available revolving credit facility(7) | 251 | 208 | |||||
| Available liquidity | $ | 1,845 | $ | 1,499 | |||
| Reconciliation of adjusted net debt to long-term debt and computation of adjusted net debt to adjusted EBITDA ratio | |||||||
| Fiscal years ended December 31 | |||||||
| 2023 | 2022 | ||||||
| Long-term debt | $ | 5,607 | $ | 5,980 | |||
| Less: Cash and cash equivalents | 1,594 | 1,291 | |||||
| Certain restricted cash supporting various bank guarantees | - | 391 | |||||
| Adjusted net debt | $ | 4,013 | $ | 4,298 | |||
| Adjusted EBITDA | $ | 1,230 | $ | 930 | |||
| Adjusted net debt to adjusted EBITDA ratio | 3.3 | 4.6 | |||||
| (1) | Only from continuing operations. |
| (2) | Special items and certain items of other expense (income) were mainly reclassified to gain related to disposal of business, impairment and program termination, and restructuring charges, including comparative figures. See Note 37 - Reclassification of the Consolidated financial statements for more information. |
| (3) | Includes severance charges or related reversal as well as curtailment losses (gains), if any. |
| (4) | Includes changes in provisions related to past divestitures. |
| (5) | Includes impairment or reversal of impairment of PP&E and intangible assets, as well as provisions related to program termination or their related reversal, if any. For fiscal year 2023, includes impairment of $85 million related to an aircraft product upgrade, started in 2018 and paused in 2020. |
| (6) | Includes the loss related to the purchase of pension annuities. See Note 21 - Retirement benefits of the Consolidated financial statements for more information. |
| (7) | A committed secured revolving credit facility of $300 million which matures in 2027 and is available for cash drawings for the ongoing working capital needs of the Corporation and for issuance of performance letters of credit. This facility was undrawn as at December 31, 2023 and the availability as at such date was $251 million based on the collateral, which may vary from time to time. |
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 ability to continue business growth 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 new, or exacerbation of existing, global health, geopolitical or military events on the foregoing and the effectiveness of our plans and measures in response thereto; and expectations regarding the strength of markets, economic downturns or recession, and inflationary and supply chain pressures.
In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
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, guidance, 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 and continued management of recurring cost saving; optimization of our real estate portfolio; 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 of the MD&A. Given the impact of the changing circumstances surrounding new or continuing global health, geopolitical and military events, 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 an inherently higher degree of uncertainty associated with the Corporation's assumptions.
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: operational risks (such as risks related to business development and growth; order backlog; deployment and execution of our strategy, including cost reductions and working capital improvements and manufacturing and productivity enhancement initiatives; developing new products and services, including technological innovation and disruption; the certification of products and services; pressures on cash flows and capital expenditures, including due to seasonality and cyclicality; doing business with partners; product performance warranty and casualty claim losses; environmental, health and safety concerns and regulations; dependence on limited number of contracts, customers and suppliers, including supply chain risks; human resources including the global availability of a skilled workforce; reliance on information systems (including technology vulnerabilities, cybersecurity threats and privacy breaches); reliance on and protection of intellectual property rights; reputation risks; scrutiny and perception gaps regarding environmental, social and governance matters; adequacy of insurance coverage; risk management; and tax matters); financing risks (such as risks related to liquidity and access to capital markets; substantial debt and interest payment requirements, including execution of debt management and interest cost reduction strategies; restrictive and financial debt covenants; retirement benefit plan risk; exposure to credit risk; and availability of government support); risks related to regulatory and legal proceedings; risks associated with general economic conditions and disruptions, both regionally and globally, that may impact our sales and operations; business environment risks (such as risks associated with the financial condition of business aircraft customers; trade policy; increased competition; political instability and geopolitical tensions; financial and economic sanctions and export control limitations; global climate change; and force majeure events); market risks (such as foreign currency fluctuations; changing interest rates; increases in commodity prices; and inflation rate fluctuations); and other unforeseen adverse events. For more details, see the Risks and uncertainties section in Other in the MD&A. Any one or more of the foregoing factors may be exacerbated by new or continuing global health, geopolitical or military events, which 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.
