Chorus Aviation has reported a net income of $21.5 million, or $0.12 per basic share; a quarter-over-quarter decrease of $7.6 million. Adjusted EBITDA was $76.9 million; a decrease of $14.2 million over second quarter 2020. The company pointed to the continued impact of COVID – 19 on results related to off-lease aircraft, negotiated amendments to certain lease agreements including extensions, the 2021 CPA amendments and lower unrealized foreign exchange gains of $10.7 million.
“Our second quarter delivered net earnings of $0.12 per basic share or $0.06 on an adjusted basis. We are managing our business well through these unprecedented times and continue to report positive financial results. While our second quarter earnings were negatively impacted by certain aircraft being off-lease, negotiation of certain lease amendments including extensions, the 2021 CPA amendments, and a lower US dollar exchange rate, I am pleased with the progress made in reducing debt and the stability we are seeing in lease rent collections,” stated Joe Randell, President and Chief Executive Officer, Chorus Aviation.
During the period, Chorus highlighted the addition of Connect Airlines of Boston as a new leasing customer, and the successful remarketing all of its off-lease Dash 8-400 aircraft.
Also during the period, Chorus completed a public offering and concurrent private placement for gross proceeds of $145.1 million.
As of June 30, 2021, Chorus' liquidity was $177.9 million including cash of $142.4 million and $35.5 million of available room on its operating credit facility. Liquidity increased from the first quarter of 2021 by $6.6 million due to positive cash flows from operations of $15.0 million; receipt of the net proceeds from the 2021 capital raise of $138.1 million; increase in cash due to changes in both restricted cash and security deposits and maintenance reserves of $18.8 million; offset by additions to property and equipment of $10.6 million primarily arising from investments in the reconfiguration of off-lease and re-leased aircraft; and debt repayments of $154.7 million related to scheduled repayments of $49.1 million, early repayments of amortizing term loans on six aircraft totaling $71.7 million and the repayment of all deferred amounts owing under aircraft loans with its largest lender in the amount of $33.9 million.