NAV CANADA announces year-end financial results
OTTAWA, ON, Oct. 24, 2024 /CNW/ – NAV CANADA today released its financial results for the year ended August 31, 2024.
The Company saw air traffic levels for fiscal 2024, as measured in weighted charging units(1), increase by 6.4% on a year-over-year basis. The Company’s revenue for fiscal 2024 was $1,800 million, compared to $1,778 million in fiscal 2023.
The Company had free cash flow(2) of $162 million in fiscal 2024 as compared to free cash flow of $350 million in fiscal 2023. The decrease in free cash flow in fiscal 2024 is driven primarily by higher payments to employees and suppliers and higher capital expenditures as compared to fiscal 2023.
“Over the past year, NAV CANADA has demonstrated improved operational performance, a testament to the resilience and dedication of our teams. We have been actively focusing on cost management and refining our modernization strategies, which has led to notable improvements across various areas such as advancement in technology initiatives, infrastructure renewal, recruitment, and training. Our commitment to delivering value to our customers remains unwavering, and we are proud to have partnered to increase our operational workforce to support their needs,” said Raymond Bohn, President and CEO, NAV CANADA. “These efforts collectively position us for continued growth and success in the coming year.”
Operating expenses for fiscal 2024 were $1,638 million as compared to $1,493 million in fiscal 2023, primarily due to higher compensation costs driven by an increase in both staffing and wage levels.
Net other income and expenses for fiscal 2024 was a net expense of $80 million as compared to a net expense of $124 million in fiscal 2023. The higher expense in fiscal 2023 is mainly due to the reduction in the fair value of the Company’s investment in preferred interests of Aireon LLC recorded in fiscal 2023.
The Company had a net income (before net movement in regulatory deferral accounts including rate stabilization) of $81 million in fiscal 2024 as compared to a net income of $161 million in fiscal 2023.
The Company is subject to legislation that regulates its approach to setting customer service charges. The timing of the recognition of certain revenue and expenses recovered through customer service charges is recorded through movements in regulatory deferral accounts. The net movement in regulatory deferral accounts for fiscal 2024 was an expense of $81 million as compared to an expense of $161 million in fiscal 2023. This change in regulatory deferrals is primarily due to a decrease in favourable rate stabilization adjustments of $65 million and a $15 million net increase in adjustments required to align the accounting recognition of certain transactions to the periods in which they will be considered for rate setting. As at August 31, 2024, the rate stabilization account had a balance of $175 million to be recovered from customers through future customer service charges.
Associated Links
The Company’s Financial Statements, Management’s Discussion and Analysis and Annual Information Form for the year ended August 31, 2024 can be found at:
Financial Statements
Management’s Discussion and Analysis
Annual Information Form
About NAV CANADA
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.
The Company is internationally recognized for its safety record, and technology innovation.
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(1) Weighted charging units represent a traffic measure that reflects the number of billable flights, aircraft size and distance flown in Canadian airspace and is the basis for movement-based service charges, which comprise the vast majority of the Company’s revenue. |
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(2) Free cash flow is a non-GAAP financial measure used by the Company to enhance the overall understanding of its financial and operating performance. Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines free cash flow as cash generated from operations, less capital expenditures (net of government grants received), investments in regulatory assets, investments in Aireon LLC and equity related investments and principal payment of lease liabilities. Management places importance on this indicator as it assists in measuring the impact of its investment program on the Company’s financial resources and provides users with a more stable indication of the Company’s ability to meet its debt obligations and continue to invest in the air navigation system. |
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.
SOURCE NAV CANADA
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