• Total revenues⁽¹⁾ of $3.5 billion, lower by 5% year-over-year due to pandemic-related disruptions and divestitures; Business Aircraft revenues reached $1.2 billion on 24 deliveries, growing 10% year-over-year, driven by accelerating Global 7500 deliveries
• Total adjusted EBITDA⁽¹⁾⁽²⁾ of $176 million; $15 million of reported total EBIT⁽¹⁾⁽²⁾
• Free cash flow usage⁽²⁾ of $0.7 billion, continuing to target breakeven for the second half of the year; operating cash flow usage of $0.6 billion
• Pro-forma⁽³⁾ liquidity⁽⁴⁾ of ~ $3.0 billion, including $1.9 billion of cash on hand and
  $275 million from the recently closed sale of aerostructures business
• Sale of Bombardier Transportation to Alstom still expected to close in the first quarter of 2021
• Transitioning to a pure-play business aircraft company; addressing cost structure to drive stronger profitability at current market conditions

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.

Bombardier (TSX: BBD.B) announced today its financial results for the third quarter of 2020. The Company also provided an update on its progress towards achieving its near-term priorities and its transition to a pure-play business aircraft company.

“While the ongoing pandemic continues to present unprecedented challenges, Bombardier remains focused on advancing its key priorities, which includes taking great care of our people and customers; ensuring sufficient liquidity to weather the storm; and continuing to move forward with our strategic repositioning of Bombardier as a leaner, focused business aviation company,” said Éric Martel, President and Chief Executive Officer, Bombardier Inc. “In the third quarter, we made solid progress on each of these priorities. We secured additional liquidity with a new billion dollar senior secured credit facility, we kept our divestitures moving forward as planned, and with deliveries ramping up across the businesses, we are still targeting break-even free-cash-flow for the second half of the year, assuming operations remain uninterrupted by the pandemic.”

Third quarter revenues of $3.5 billion reflect the gradual recovery of operations at Aviation and Transportation from the COVID-19 related disruptions in the first half of 2020. Business aircraft revenues in the quarter were up 10% year-over-year, driven by a record 8 Global 7500 aircraft deliveries, which more than offset lower service revenues as international border restrictions, reduced business activity, and travel continues to pressure business jet utilization.

Total adjusted EBITDA and adjusted EBIT were $176 million and $51 million, respectively, for the quarter. These results reflect an unfavorable aircraft revenue mix at Aviation, as well as the impact of several low-margin rolling stock projects, and the lingering impact of the pandemic on Transportation’s operations and customers. Total EBIT was $15 million for the quarter.

Free cash flow usage for the quarter was $706 million, supporting Aviation’s working capital requirements for an expected seasonally strong fourth quarter, including approximately a dozen Global 7500 deliveries before year end⁽³⁾. Transportation’s free cash flow was near break-even for the quarter. Consolidated cash flow usage from operating activities was $644 million.

Bombardier began the fourth quarter with strong pro-forma liquidity⁽⁴⁾ of approximately $3.0 billion. This includes $1.9 billion of cash on hand, access to the undrawn amounts of approximately $600 million on Transportation’s revolving credit facility as of September 30, 2020, $250 million under the new senior secured term loan facility as at September 30, 2020, and $275 million of proceeds from the sale of the Aerostructures business. The Company expects to further strengthen liquidity with positive cash generation in the fourth quarter, driven by the release of working capital both at Aviation and Transportation⁽³⁾.

With the definitive Sale and Purchase Agreement signed in September, and the Alstom shareholder approval last week, Bombardier believes it is on a solid path to close the Bombardier Transportation sale in the first quarter of 2021. As a result, the Transportation business results have been classified as discontinued operations as of September 30, 2020. At closing, the Company expects net cash proceeds of approximately $4.0 billion, which will be directed to debt paydown⁽³⁾.

“We are very excited about our future as a focused business jet company, about our opportunities to grow the services business, and to leverage our industry-leading product portfolio,” Martel added. “We look forward to sharing the details of our plans in the near future, as we finalize our debt management strategy and cost-cutting initiatives to ensure our profitability in the current market and strong growth once the pandemic subsides.”

SELECTED RESULTS (PDF)

1. Includes the amounts from continuing and discontinued operations.
2. Non-GAAP financial measures. Refer to the Non-GAAP financial measures and Liquidity and capital resources section for definitions of these metrics and the Analysis of results section hereafter for reconciliations to the most comparable IFRS measures.
3. See the forward-looking statements disclaimer at the end of this press release as well as the forward-looking statements section and the assumptions following same in Overview in the MD&A of the Corporation’s financial report for the three- and nine-month periods ended September 30, 2020, as well as the Strategic Priorities and Guidance and forward-looking statements sections in the applicable reportable segment in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2019, for details regarding the assumptions on which the forward-looking statements are based.
4. Non-GAAP financial measure. Pro-forma liquidity is defined as cash and cash equivalents of $1,870 million plus access to the undrawn amounts of $589 million on Transportation’s revolving credit facility and $250 million under the new senior secured term loan facility as at September 30, 2020, and $275 million of cash consideration from the sale of the aerostructures businesses, received following quarter end.

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Photo Rob Vogelaar