OTTAWA, ONTARIO--(Marketwire - Oct. 19, 2012) - NAV CANADA today released its financial results for the year ended August 31, 2012. The results show continued success in controlling costs while maintaining safe and efficient air navigation services in a period when air traffic levels were similar to those in the prior fiscal year (growth in air traffic volumes of 0.6 per cent).
In fiscal 2012, the Company achieved positive financial performance, as evidenced by an improvement of $29 million in its rate stabilization account, finishing with a positive* balance of $31 million. When adjusted for rate setting purposes, there is a positive* "notional" balance of $92 million in the rate stabilization account, which is equal to its target balance.
"These results show the importance of cost control in a sluggish traffic environment," said John Crichton, President & CEO. "We have ensured strong financial performance while continuing to make strategic investments to improve safety and service. Projects that came online this year are enabling more efficient customer operations, and we continue to focus on game changing technologies that are on the horizon."
The Company's revenues before rate stabilization for fiscal 2012 were $1,226 million, compared to $1,210 million in the previous fiscal year.
Operating expenses before rate stabilization for fiscal 2012 were $987 million as compared to $967 in fiscal 2011. Operating expenses in fiscal 2011 were reduced by $11 million due to a negotiated return of long-term disability premiums. Management continues to successfully manage its costs, largely offsetting higher compensation levels, benefit costs and inflationary increases.
Interest, depreciation and amortization expense before rate stabilization totalling $244 million was $10 million lower than in the previous fiscal year.
Other income before rate stabilization totalled $34 million in fiscal 2012. As at August 31, 2012, the fair value of the Company's investments in ABCP restructured and non-restructured notes is $238 million on holdings with a face value of $307 million. Of the total fair value variances from face value of $69 million, $61 million is considered recoverable over the term of the notes.
Based on the above, the Company had an excess of revenue and other income over expenses before rate stabilization of $29 million for the year.
The Company's Financial Statements, Management's Discussion and Analysis and Annual Information Form for the year ended August 31, 2012 can be found at:
- Financial Statements
- Management's Discussion and Analysis
- Annual Information Form
Marking 15 years as Canada's private sector civil air navigation services provider, with operations from coast to coast to coast, NAV CANADA provides air traffic control, flight information, weather briefings, aeronautical information services, airport advisory services and electronic aids to navigation.
* A positive/negative balance in the rate stabilization account represents a liability/asset on the Company's consolidated balance sheet, reflecting amounts returnable to/recoverable from customers through future customer service charges.
This press release contains certain forward-looking statements that are subject to important risks and uncertainties. Actual results may differ materially from the results indicated in these statements for a number of reasons. NAV CANADA disclaims any intention to update any forward-looking statements.