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Highlights

  • Chorus Aviation’s Q2 2024 revenue rose to CAD 351.2 million, marking a 7.3% increase
  • The company reported a net loss of CAD 180.7 million
  • Chorus signed a CAD 1.9 billion deal for the Regional Aircraft Leasing segment
  • For FY24, adjusted EBITDA is projected between CAD 360-410mn

Chorus Aviation Inc. (TSX: CHR) is a Canadian aviation company. It operates in two divisions, namely, Regional Aircraft Leasing and Regional Aviation Service. It has a market capitalisation of CAD 519.81mn.

In Q2 2024, Chorus reported operating revenue of CAD 351.2 million, a 7.3% increase from CAD 327.4 million in the previous corresponding period. However, operating earnings dropped 17.0% to CAD 24.4 million due to higher expenses, while net earnings before income taxes fell 48.6% to CAD 11.1 million. Ultimately, the company faced a net loss of CAD 180.7 million, down from a net income of CAD 20.3 million in Q2 2023.

Additionally, the company posted a lower leverage ratio in Q2 2024. It improved its cash flow performance, with cash from operating activities rising to CAD 55.8 million and free cash flows stood at CAD 28.2 million.

Recent Business Update

On July 30, 2024, the company and CACC signed a sale and purchase agreement for the Regional Aircraft Leasing (RAL) segment. The aggregate amount of the transaction is approximately CAD 1.9 billion. The net cash proceeds are estimated at CAD 825.2 million. These funds are expected to be used to pay down or redeem corporate financings.

Company Outlook

For the fiscal year 2024, the company expects its adjusted EBITDA to be between CAD 360 million and CAD 410 million. Additionally, it forecasts free cash flows to be between CAD 300 million and CAD 350 million, which is a key positive for the business.

Top 10 Shareholders

The top 10 shareholders of Chorus collectively account for approximately 19.13% of the total shares. Bsi Dragonfly Holdings LP and Vestcor Inc. hold maximum stake in the company, with approximately 13.29% and 3.00%, respectively.

Price Information

Chorus's share price has experienced a decline of 1.09% over the past week while rising approximately 3.81% over the last month. Additionally, the stock is currently trading above the average of its 52-week high of CAD 3.25 and 52-week low of CAD 1.99. As of 24 September, the stock’s closing price was CAD 2.72.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 24, 2024. The reference data in this report has been partly sourced from EODHD/Others.