Chorus Aviation recorded net income of $32 million in the first quarter of 2023 (Q1 2023), up $9.1 million on the final quarter of 2022.
Revenue was up 21% year-on-year to $415 million, the company reported. Earnings, given as adjusted EBITDA, were $118.1 million, an increase of $34.8 million, while the company reported free cash flow of $73.1 million, an increase of $24.6 million.
Adjusted earnings available to common shareholders came to $21.5 million, an increase of $3.7 million, in turn meaning $0.11 per common share, a cent more than Q4 2022 for the company, which includes Falko among its businesses.
The period saw an increase in other revenue of $6.7 million, which Chorus put down to "an increase in parts sales,
third-party MRO activity and contract flying" and an increase in aircraft leasing revenue.
The company reported a depreciation expense of $13 million"primarily attributable to Falko" and an increase of $5.4 million in income tax expense. It further reported "an increase in net interest costs of $5.4 million primarily related to interest on
long-term debt assumed as part of the Falko acquisition," which was announced in early 2022 before being completed in May 2023.
"During the quarter, we continued the deleveraging of our balance sheet improving our leverage ratio to 4.0x, a 9% decrease since year end, bringing us closer to our targeted range of 2.5x to 3.5x.” said Colin Copp, chief executive.
“We are laser-focused on transitioning our aircraft leasing business to an asset-light model and launching Falko’s new investment fund," added Copp, who is also president.