CAE First Quarter Results Top Estimates, Profit Doubles

(RTTNews) - Canadian aviation-training and simulation products provider CAE, Inc. (CAE, CAE.TO) reported Thursday a profit for the first quarter that more than doubled from last year, reflecting improved operating margins and double-digit revenue growth. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

The company also announced new contracts that may be worth up to $310 million.

"We maintained our market leadership this quarter with strong full-flight simulator sales in Civil and higher orders in Military than last year. In Civil, despite disappointing margin performance this quarter, 23 FFS sales fiscal year to date give us a strong start and we expect to reach a record of 40 units by March 31," President and CEO Marc Parent said in a statement.

The Montreal, Canada-based company reported net earnings of C$45.6 million or C$0.18 per share for the first quarter, more than doubling from C$21.5 million or C$0.08 per share in the prior-year quarter. Excluding items, adjusted net earnings for the latest quarter was C$46.9 million or C$0.18 per share.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of C$0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 15 percent to C$530.4 million from C$462.2 million in the same quarter last year, and topped eleven Wall Street analysts' consensus estimate of C$525.77 million.

Revenue at the company's combined civil segments increased 27 percent to C$302 million, and combined military segments posted a 1 percent growth in revenue to C$199 million from last year. Revenues from new core markets of mining and healthcare were up 14 percent to $30 million from last year.

Total operating profit for the quarter increased to C$62.8 million from C$43.3 million in the prior-year quarter, and operating margin improved 240 basis points to 11.8 percent.

Backlog at the end of the first quarter was C$3.71 billion, up from C$3.52 billion a year ago.

CAE said it will pay a quarterly dividend of C$0.05 on September 30 to shareholders of record at the close of business on September 16, 2013.

CAE said it received 15 full-flight simulator (FFS) orders in the first quarter and expects to sell a record 40 FFSs for the year. CAE also today announced the sale of eight FFSs and a 15-year services agreement for about $210 million at list prices to an undisclosed customer.

In addition, the company won a contract from the U.S. Air Force to provide classroom, simulator, and live flying instruction. That deal could be worth $100 million.

In Thursday's regular trading session, CAE is currently trading at $11.39, up $0.10 or 0.89% on a volume of 705 shares. On the Toronto stock exchange, CAE.TO is trading at C$11.85, up C$0.07 or 0.59% on a volume of 5,145 shares.