CAE reports higher Q3 revenue, earnings in last three months of 2013

MONTREAL – Flight simulator and training company CAE says it earned $46.1 million in its fiscal third quarter, up 23 per cent from a year ago when it absorbed millions of dollars in restructuring and acquisition costs.

The Montreal-based company earned 18 cents per share for the period ended Dec. 31, up from 14 cents per share a year earlier. Last year’s $37.5 million in net income attributable to equity holders included $13.4 million in one-time costs.

Overall, CAE’s third-quarter revenues grew to $513.6 million, up 2.5 per cent from a year earlier, with increases at both its civil and military divisions.

CAE (TSX:CAE) was expected to earn 17 cents per share in profits on $533 million of revenues in the quarter, according to analysts polled by Thomson Reuters.

Cameron Doerksen of National Bank Financial said the results slightly beat forecasts in part due to lower tax rate in the quarter.

CAE’s civil aerospace segment had $45.2 million inoperating incomeon $282.1 million of revenue, compared to $46.1 million on $273.4 million a year ago.

It received 12 full-flight simulator orders in the quarter and three more in the fourth quarter, which ends March 31, bringing the total for the year to a record 43 units, with two months remaining in its fiscal year.

While training and simulation products revenues both increased from a year ago, training segment’s operating income fell seven per cent to $22.5 million.

On the military side, operating income increased 22 per cent to $31 million, from $25.4 million a year ago, as revenue grew two per cent to $201.8 million. It received $240.3 million in military orders. Military simulation products and training operating income increased but a 26.5 per cent growth in training revenues more than offset nine per cent decrease products revenues.

The new core segment’s operating income decreased 17.6 per cent to $1.4 million as revenue increased to $29.7 million.

CAE said its debt was $886.5 million as of Dec. 31, up from $81.4 million three months earlier.

On the Toronto Stock Exchange, CAE’s shares were down seven cents at $13.83 in Tuesday morning trading.