Daily Archives: January 16, 2020

Seaborn announces high capacity connectivity to key global internet exchange locations

Seaborn expands network connectivity globally

‘Iconic global landmarks show potential key IX exchange locations available with high capacity connectivity from Seaborn’

BOSTON, Jan. 16, 2020 (GLOBE NEWSWIRE) — Seaborn Networks, a leading developer-owner-operator of transoceanic subsea fiber optic cable systems (Seaborn), announced today new high capacity connectivity from their Seabras-1 IP Network directly into key global IX locations;

  • Amsterdam – AMS-IX now live (January 6, 2020)
  • Frankfurt – DE-CIX now live (January 6, 2020)
  • London – LINX now live (January 6, 2020)
  • San Jose – Equinix IX (SV1) live by end of January 2020
  • Los Angeles – CoreSite Any2 IX (LA1) live by end January 2020
  • Ashburn – Equinix IX (DC4) live by end January 2020

“We continue to see tremendous growth across our high-quality IP Network as we develop new and innovative connectivity options for our customers through our transit and peering fabric or by enabling direct, high capacity connectivity to our IX partners,” said Seaborn COO Andy Bax. “Through these high capacity IX connections, we want our customers to enjoy remote peering services across an ever-growing number of strategic global exchanges. January is just the start of this exciting expansion of our IP network and we look forward to announcing more global exchanges for Seabras-1 being on-net for Seaborn shortly.”

About Seaborn Networks
Seaborn Networks is a leading developer-owner-operator of submarine fiber optic cable systems, including Seabras-1 between São Paulo and New York. Seabras-1 is the only direct POP to POP system between São Paulo and New York metro, offering the lowest latency route between the B3 exchange in São Paulo and the trading exchanges of New Jersey. Seaborn’s industry leading service delivery and performance combined with our new IP and Ethernet service offerings broadens our solutions driven approach and commitment to always exceeding the service expectations of our customers. For more information, please visit www.seabornnetworks.com. Follow us on Linked In.

Media Contact:
Kate Wilson, Head of Marketing, Media
media-relations@seabornnetworks.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e314c88c-f73a-459f-b77c-92167c84d456

Celebrating dedication and excellence in the SNOMED CT Community

London, United Kingdom, Jan. 16, 2020 (GLOBE NEWSWIRE) — SNOMED International recently presented its Award for Excellence and Lifetime Achievement Award at its Awards Gala held in conjunction with the SNOMED CT Expo 2019 hosted in Kuala Lumpur, Malaysia last October.  Award recipients are nominated from among the community to recognize exceptional contributors to the evolution and ongoing guardianship of SNOMED CT.

The Award for Excellence is given for outstanding contribution to the improvement of SNOMED CT and its successful implementation in health and social care. In 2019, this award was presented to Dr. Mark Jurkovich.  Mark’s commitment to SNOMED CT’s Dentistry Clinical Reference Group and its Special Interest Group predecessor, has made it among the most productive and successful of its kind.  First established as an element of an American Dental Association cooperation agreement signed in 2012, Mark was appointed Chair and has continued to play a leadership role since that time.

Mark’s ability to bring together different parties with varied backgrounds, knowledge and views on the alignment between SNODENT and SNOMED CT has been critical to support the global requirements for the General Dentistry Diagnoses refset and the Odontogram refset.  His diplomacy has ensured that all contributions are respected, leading to a consensus view supported by all stakeholders.

Mark continues to be a great ambassador for SNOMED CT, the SNOMED International organization and the Dentistry clinical reference group, as well as for vendors who are implementing Electronic Dental Records.  His contributions in support of the profession of dentistry and the development of interoperability standards in the oral health setting are nothing short of extraordinary.

This past October, the organization was pleased to present the Lifetime Achievement Award to 2 recipients, Dr. Stewart Jessamine and Lies van Gennip, PhD.

Through the course of his professional lifetime, Stewart Jessamine dedicated over 25 years to the New Zealand Ministry of Health, progressing and successfully accomplishing many projects of which SNOMED CT implementation was a principal focus.  He impressed upon everyone his vision for a future health system that ran on information, enabled by SNOMED CT. At the Ministry of Health, he worked in medicine regulation, chairing a ministerial committee for over 20 years, and eventually becoming the executive responsible for all public health. It was in founding the New Zealand medicines terminology that Stewart’s association with SNOMED CT began.

Stewart was a driving force and contributor to the IHTSDO and now SNOMED International community.  His passion for the global implementation and adoption of SNOMED CT was unparalleled, lending his time to progress the development and evolution of our vision and mission, having served as Chair of the General Assembly on two separate occasions.

Stewart was instrumental to the changing role of governance for IHTSDO, having not only impacted it from the leadership level, but also his support and guidance for changes in the organization.  Awarded posthumously after Stewart’s untimely passing in February 2019, his contributions and jovial attitude has left a lasting impression on all he worked alongside.

SNOMED International could not be more pleased to recognize the recent Chair of the General Assembly, Lies van Gennip also as a 2019 Lifetime Achievement Award recipient.  Lies has made a significant and sustained contribution to the community of practice and to the ongoing development of SNOMED CT.  Throughout her career, Lies has focused on promoting initiatives improving population and patient health at the national level in the Netherlands.

With this experience, Lies has developed an appreciation for the important role of standards in improving quality and safety.  As CEO of Nictiz, the national IT institute for health and care in the Netherlands, Lies navigated a challenging era and made it the leading organization in the nation’s effort to improve health through better information, consistently describing the value of SNOMED CT in achieving unity of language and clear recording and exchange of data.

Lies has served SNOMED International by representing the Netherlands with General Assembly representation over many years, and has held the position of General Assembly Chair twice.  Lies has been consistently open, fair, honest and extremely knowledgeable of both the intricacies and nuances of e-health, and also the sensitivities and individual needs of Members and their respective countries.  A vocal and adamant proponent of SNOMED CT, Lies has supported its value and uptake not only in the Netherlands, but also through her writings in blogs, articles and in many speaking occasions internationally.

Establishing a number of initiatives both within the General Assembly and other groups across SNOMED International, Lies is a collaborative leader who never forgets that citizens and patients are at the center of what SNOMED International does, and what SNOMED CT can deliver.  Lies’ has an unwavering and lifelong passion to achieve better health outcomes for citizens achieved by data-driven clinical informatics and has demonstrated strong and undeniable support for SNOMED CT. This organization owes significant gratitude for all that Lies has done over the years for SNOMED International and its Members.

Please join SNOMED International as we recognize the dedication and achievements of our 2019 award recipients, Dr. Mark Jurkovich, Dr. Stewart Jessamine, and Lies van Gennip, PhD.

ABOUT SNOMED CT:

SNOMED CT is the most comprehensive and precise clinical health terminology product in the world, owned and distributed by SNOMED International. SNOMED CT has been developed collaboratively to ensure it meets the diverse needs and expectations of clinicians worldwide and is now accepted as a common global language for health terms.

ABOUT SNOMED International:

Owned and governed by its Member countries, SNOMED International (formerly IHTSDO) is a not-for-profit organisation charged with setting global standards for health terminology, a critical element of safe and effective healthcare. Our core product, SNOMED CT, is owned, administered and developed by SNOMED International and establishes vocabulary that enables the clear exchange of health information across all health systems, services and products in the world.

Learn more at www.snomed.org

Attachments

Kelly Kuru
SNOMED International
1 416 566 8725
kku@snomed.org

Celebrating dedication and excellence in the SNOMED CT Community

London, United Kingdom, Jan. 16, 2020 (GLOBE NEWSWIRE) — SNOMED International recently presented its Award for Excellence and Lifetime Achievement Award at its Awards Gala held in conjunction with the SNOMED CT Expo 2019 hosted in Kuala Lumpur, Malaysia last October.  Award recipients are nominated from among the community to recognize exceptional contributors to the evolution and ongoing guardianship of SNOMED CT.

The Award for Excellence is given for outstanding contribution to the improvement of SNOMED CT and its successful implementation in health and social care. In 2019, this award was presented to Dr. Mark Jurkovich.  Mark’s commitment to SNOMED CT’s Dentistry Clinical Reference Group and its Special Interest Group predecessor, has made it among the most productive and successful of its kind.  First established as an element of an American Dental Association cooperation agreement signed in 2012, Mark was appointed Chair and has continued to play a leadership role since that time.

Mark’s ability to bring together different parties with varied backgrounds, knowledge and views on the alignment between SNODENT and SNOMED CT has been critical to support the global requirements for the General Dentistry Diagnoses refset and the Odontogram refset.  His diplomacy has ensured that all contributions are respected, leading to a consensus view supported by all stakeholders.

Mark continues to be a great ambassador for SNOMED CT, the SNOMED International organization and the Dentistry clinical reference group, as well as for vendors who are implementing Electronic Dental Records.  His contributions in support of the profession of dentistry and the development of interoperability standards in the oral health setting are nothing short of extraordinary.

This past October, the organization was pleased to present the Lifetime Achievement Award to 2 recipients, Dr. Stewart Jessamine and Lies van Gennip, PhD.

Through the course of his professional lifetime, Stewart Jessamine dedicated over 25 years to the New Zealand Ministry of Health, progressing and successfully accomplishing many projects of which SNOMED CT implementation was a principal focus.  He impressed upon everyone his vision for a future health system that ran on information, enabled by SNOMED CT. At the Ministry of Health, he worked in medicine regulation, chairing a ministerial committee for over 20 years, and eventually becoming the executive responsible for all public health. It was in founding the New Zealand medicines terminology that Stewart’s association with SNOMED CT began.

Stewart was a driving force and contributor to the IHTSDO and now SNOMED International community.  His passion for the global implementation and adoption of SNOMED CT was unparalleled, lending his time to progress the development and evolution of our vision and mission, having served as Chair of the General Assembly on two separate occasions.

Stewart was instrumental to the changing role of governance for IHTSDO, having not only impacted it from the leadership level, but also his support and guidance for changes in the organization.  Awarded posthumously after Stewart’s untimely passing in February 2019, his contributions and jovial attitude has left a lasting impression on all he worked alongside.

SNOMED International could not be more pleased to recognize the recent Chair of the General Assembly, Lies van Gennip also as a 2019 Lifetime Achievement Award recipient.  Lies has made a significant and sustained contribution to the community of practice and to the ongoing development of SNOMED CT.  Throughout her career, Lies has focused on promoting initiatives improving population and patient health at the national level in the Netherlands.

With this experience, Lies has developed an appreciation for the important role of standards in improving quality and safety.  As CEO of Nictiz, the national IT institute for health and care in the Netherlands, Lies navigated a challenging era and made it the leading organization in the nation’s effort to improve health through better information, consistently describing the value of SNOMED CT in achieving unity of language and clear recording and exchange of data.

Lies has served SNOMED International by representing the Netherlands with General Assembly representation over many years, and has held the position of General Assembly Chair twice.  Lies has been consistently open, fair, honest and extremely knowledgeable of both the intricacies and nuances of e-health, and also the sensitivities and individual needs of Members and their respective countries.  A vocal and adamant proponent of SNOMED CT, Lies has supported its value and uptake not only in the Netherlands, but also through her writings in blogs, articles and in many speaking occasions internationally.

Establishing a number of initiatives both within the General Assembly and other groups across SNOMED International, Lies is a collaborative leader who never forgets that citizens and patients are at the center of what SNOMED International does, and what SNOMED CT can deliver.  Lies’ has an unwavering and lifelong passion to achieve better health outcomes for citizens achieved by data-driven clinical informatics and has demonstrated strong and undeniable support for SNOMED CT. This organization owes significant gratitude for all that Lies has done over the years for SNOMED International and its Members.

Please join SNOMED International as we recognize the dedication and achievements of our 2019 award recipients, Dr. Mark Jurkovich, Dr. Stewart Jessamine, and Lies van Gennip, PhD.

ABOUT SNOMED CT:

SNOMED CT is the most comprehensive and precise clinical health terminology product in the world, owned and distributed by SNOMED International. SNOMED CT has been developed collaboratively to ensure it meets the diverse needs and expectations of clinicians worldwide and is now accepted as a common global language for health terms.

ABOUT SNOMED International:

Owned and governed by its Member countries, SNOMED International (formerly IHTSDO) is a not-for-profit organisation charged with setting global standards for health terminology, a critical element of safe and effective healthcare. Our core product, SNOMED CT, is owned, administered and developed by SNOMED International and establishes vocabulary that enables the clear exchange of health information across all health systems, services and products in the world.

Learn more at www.snomed.org

Attachments

Kelly Kuru
SNOMED International
1 416 566 8725
kku@snomed.org

Bombardier Provides Preliminary Fourth Quarter and Full Year 2019 Financial Results and Updates on Accelerating Deleveraging Phase of Turnaround Plan

  • Financial results expected to be below guidance, driven largely by actions at Transportation to resolve challenging projects
  • Aviation financial results largely on track
  • Company actively pursuing strategic options to accelerate deleveraging
  • Bombardier reassessing future participation in Airbus Canada Limited Partnership

All amounts in this press release are in U.S. dollars unless otherwise indicated.

MONTREAL, Jan. 16, 2020 (GLOBE NEWSWIRE) — Bombardier (TSX: BBD.B) today announced its preliminary results for the fourth quarter and full year 2019. The Company now expects lower than previously guided financial performance, mainly as a result of actions taken to resolve challenging rail projects, the timing of milestone payments and new orders at Transportation, and the delivery of four Global 7500 aircraft slipping into the first quarter of 2020.

Preliminary Results for the Fourth Quarter and Full Year 2019

Fourth Quarter 2019
Expected Results
Full Year 2019
Expected Results
Consolidated Revenues ~$4.2B ~$15.8B
Aviation ~$2.4B ~$7.5B
Transportation ~$1.8B ~$8.3B
Consolidated Adjusted EBIT1,2 ~$(130)M ~$400M
Aviation ~6% ~7%
Transportation ~(13)% ~1%
Consolidated Adjusted EBITDA1,2 ~$0M ~$830M
Free Cash Flow1 ~$1.0B ~$(1.2)B
Aircraft deliveries (in units) 58 175
Business Aircraft 52
Incl. 6 Global 7500
142
Incl. 11 Global 7500
Commercial Aircraft 6 33
Backlog aat December 31, 2019
Business aircraft ~$14.4B
Transportation ~$35.7B

1 Non-GAAP financial measures. Refer to the Caution regarding Non-GAAP financial measures below for definitions of these metrics.

2 Excludes Airbus Canada Limited Partnership (ACLP) equity pick-up.

Aviation deliveries were strong in the quarter, totalling 58 aircraft in the fourth quarter for a total of 175 aircraft for the full year. This included 11 Global 7500, six of which were delivered in the fourth quarter. The remaining Global 7500 aircraft originally scheduled for delivery in the final days of 2019 are now expected to be delivered in the first quarter of 2020. As Aviation made good progress ramping up the Global 7500, its full year adjusted EBIT margin is still expected to be approximately 7.0%, in line with full year guidance.

At Transportation, the fourth quarter adjusted EBIT loss is anticipated to be approximately $230 million. This includes a charge of approximately $350 million related to certain projects in the UK (the Aventra platform), commercial negotiations with Swiss Federal Railways (SBB), and increased production and manufacturing costs for projects in Germany.

Delays in achieving technical milestones, including multi-unit software homologation for the London Overground’s LoTrain project (an Aventra project), and execution of production ramp-up required the Company to re-align certain delivery schedules with customers and absorb additional costs. Having achieved these milestones in the fourth quarter, Bombardier has entered into commercial negotiations with customers – to reset schedules, resolve late delivery penalties, and address related provisions and costs.

Consolidated free cash flow for the fourth quarter is estimated at approximately $1.0 billion, approximately $650 million lower than anticipated. This is largely due to the timing of cash inflows from milestone payments on large Transportation projects, and the later-than-anticipated closing of certain orders and call-offs. While the free cash flow shortfall is largely expected to be recovered in 2020, the recovery will be offset by the cash flow impact of the incremental costs recognized in the fourth quarter adjustments at Transportation.

While fourth quarter financial performance at Transportation was lower than expected, the Company continues to make significant progress completing legacy projects and to take the right actions to position the business for long-term success.

Airbus Canada Limited Partnership Update (ACLP)
With its exit from Commercial Aerospace, Bombardier is reassessing its ongoing participation in ACLP.

While the A220 program continues to win in the marketplace and demonstrate its value to airlines, the latest indications of the financial plan from ACLP calls for additional cash investments to support production ramp-up, pushes out the break-even timeline, and generates a lower return over the life of the program. This may significantly impact the joint venture value. Bombardier will disclose the amount of any write-down when we complete our analysis and report our final fourth quarter and 2019 financial results.

Acceleration of Deleveraging Phase of Turnaround

Liquidity remains strong, with year-end cash on hand of approximately $2.6 billion. The CRJ program sale to Mitsubishi Heavy Industries, Ltd (MHI) and Aerostructures sale to Spirit AeroSystems Holding, Inc., both of which are still tracking to close by mid-year, will provide an additional $1.1 billion of cash subject to customary closing adjustments. The Company has received most of the regulatory approvals required for closing of the CRJ sale.

Consistent with Bombardier’s five-year turnaround plan, and following a comprehensive review of strategic alternatives, the Company is actively pursuing options to strengthen its balance sheet and enhance shareholder value.

“Since launching our turnaround plan, we have addressed our underperforming aerospace assets, completed our heavy investment cycle, and put the Company on a solid path toward organic growth and margin expansion while prudently managing our liquidity and heavy debt load,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “The final step in our turnaround is to de-lever and solve our capital structure. We are actively pursuing alternatives that would allow us to accelerate our debt paydown. The objective is to position the business for long-term success with greater operating and financial flexibility.”

The Company will provide additional information when it reports its fourth quarter and full year 2019 financial results on February 13, 2020.

About Bombardier
With over 68,000 employees, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.

Headquartered in Montreal, Canada, Bombardier has production and engineering sites in 28 countries as well as a broad portfolio of products and services for the business aviation, commercial aviation and rail transportation markets. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion US. The company is recognized on the 2019 Global 100 Most Sustainable Corporations in the World Index. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

Bombardier, CRJ and Global 7500 are trademarks of Bombardier Inc. or its subsidiaries.

For information
Jessica McDonald
Advisor, Media Relations and Public Affairs
Bombardier Inc.
+514 861 9481

Patrick Ghoche
Vice President, Corporate Strategy
and Investor Relations
Bombardier Inc.
+514 861 5727

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to the Corporation’s objectives, anticipations and guidance in respect of various financial and global metrics and sources of contribution thereto; targets, goals, priorities, market and strategies, financial position, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; growth strategy, including in the business aircraft aftermarket business; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; competitive position; expectations regarding working capital recovery across late-stage Transportation projects; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings on the Corporation’s business and operations; strength of capital profile and balance sheet, creditworthiness, available liquidities and capital resources, expected financial requirements and ongoing review of strategic and financial alternatives; the introduction of productivity enhancements, operational efficiencies and restructuring initiatives and anticipated costs, intended benefits and timing thereof; the expected objectives and financial targets underlying our transformation plan and the timing and progress in execution thereof, including the anticipated business transition to growth cycle and cash generation; expectations and objectives regarding debt repayments, expectations and timing regarding an opportunistic redemption of CDPQ’s investment in BT Holdco; intentions and objectives for the Corporation’s programs, assets and operations; the funding and liquidity of Airbus Canada Limited Partnership (ACLP); the pursuit of any strategic option to strengthen the Corporation’s balance sheet and enhance shareholder value, the anticipated benefits of any transaction resulting therefrom and the expected impact on the Corporation’s operations, infrastructure, opportunities, financial condition, business plan and overall strategy. As it relates to the sale of the CRJ aircraft program (the Pending Transaction) and the disposition of the Aerostructures operations, this press release also contains forward-looking statements with respect to: the expected terms, conditions, and timing for completion thereof; the respective anticipated proceeds and use thereof and/or consideration therefor, related costs and expenses, as well as the anticipated benefits of such actions and transactions and their expected impact on the Corporation’s guidance and targets; and the fact that closing of these transactions will be conditioned on certain events occurring, including the receipt of necessary regulatory approval.

Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Corporation’s current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the Strategic Priorities and Guidance and forward-looking statements sections in Overview, Business Aircraft, Commercial Aircraft, Aerostructures and Engineering Services and Transportation in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, risks associated with general economic conditions, risks associated with our business environment (such as risks associated with “Brexit”); the financial condition of the airline industry, business aircraft customers, and the rail industry; trade policy; increased competition; political instability and force majeure events or global climate change), operational risks (such as risks related to developing new products and services; development of new business and awarding of new contracts; book-to-bill ratio and order backlog; the certification and homologation of products and services; fixed-price and fixed-term commitments and production and project execution, including challenges associated with certain Transportation’s legacy projects and the release of working capital therefrom; pressures on cash flows and capital expenditures based on project-cycle fluctuations and seasonality; risks associated with our ability to successfully implement and execute our strategy, transformation plan, productivity enhancements, operational efficiencies and restructuring initiatives; doing business with partners; risks associated with the Corporation’s partnership with Airbus and investment in ACLP; risks associated with the Corporation’s ability to continue with its funding plan of ACLP and to fund, if required, the cash shortfalls; inadequacy of cash planning and management and project funding; product performance warranty and casualty claim losses; regulatory and legal proceedings; environmental, health and safety risks; dependence on certain customers, contracts and suppliers; supply chain risks; human resources; reliance on information systems; reliance on and protection of intellectual property rights; reputation risks; risk management; tax matters; and adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; retirement benefit plan risk; exposure to credit risk; substantial existing debt and interest payment requirements; certain restrictive debt covenants and minimum cash levels; financing support provided for the benefit of certain customers; and reliance on government support), market risks (such as risks related to foreign currency fluctuations; changing interest rates; decreases in residual values; increases in commodity prices; and inflation rate fluctuations). For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

With respect to the divestiture of the Corporation’s Aerostructures operations discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: the failure to complete any divestiture or other transaction resulting therefrom within the expected time frame, on commercially satisfactory terms or at all; all or part of the intended benefits therefrom not being realized within the anticipated timeframe, or at all; and the incurrence of related costs and expenses; and negative effects of the announcement or pendency of any such divestiture or other transaction. With respect to the Pending Transaction discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: the failure to receive or delay in receiving regulatory approvals, or otherwise satisfy the conditions to the completion of the transaction or delay in completing and uncertainty regarding the length of time required to complete such transactions, and the funds and benefits thereof not being available to Bombardier in the time frame anticipated or at all; alternate sources of funding that would be used to replace the anticipated proceeds and savings from such strategic actions and transactions, as the case may be, may not be available when needed, or on desirable terms. Accordingly, there can be no assurance that any divestiture relating to the Corporation’s Aerostructures operations, or the Pending Transaction will be undertaken or occur, or of the timing or successful completion thereof, or the amount and use of proceeds therefrom, or that the anticipated benefits will be realized in their entirety, in part or at all. There can also be no assurance as to the completion, the form, or the timing of any BT Holdco buy-back or any other transaction in connection with the pursuit of any strategic option to strengthen the Corporation’s balance sheet and enhance shareholder value. For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in the Corporation’s forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, the Corporation expressly disclaims any intention, and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

CAUTION REGARDING NON-GAAP FINANCIAL MEASURES
This press release is based on reported earnings in accordance with IFRS and on the following non-GAAP financial measures:

Non-GAAP financial measures
Adjusted EBIT EBIT excluding special items. Special items comprise items which do not reflect the Corporation’s core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include, among others, the impact of restructuring charges and significant impairment charges and reversals.
Adjusted EBITDA Adjusted EBIT plus amortization and impairment charges on PP&E and intangible assets.
Free cash flow (usage) Cash flows from operating activities less net additions to PP&E and intangible assets.

Non-GAAP financial measures are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS. The exclusion of certain items from non-GAAP performance measures does not imply that these items are necessarily non-recurring. Other entities in our industry may define the above measures differently than we do. In those cases, it may be difficult to compare the performance of those entities to ours based on these similarly-named non-GAAP measures.

Prior to the first quarter of fiscal year 2019, the Corporation reported non-GAAP measures labelled “EBIT before special items” and “EBITDA before special items”. Beginning in the first quarter of fiscal year 2019, the Corporation changed the label of these non-GAAP measures to “adjusted EBIT” and “adjusted EBITDA”, respectively, without making any change to the composition of these non-GAAP measures. The Corporation believes that this new label aligns better with broad market practice in its industry and better distinguishes these measures from the IFRS measurement “EBIT”.

Adjusted EBIT and adjusted EBITDA
Management uses adjusted EBIT and adjusted EBITDA for purposes of evaluating underlying business performance. Management believes these non-GAAP earnings measures in addition to IFRS measures provide readers with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Adjusted EBIT and adjusted EBITDA exclude items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number readers analyze our results based on these financial measures. Management believes these measures help readers to better analyze results, enabling better comparability of our results from one period to another and with peers.

Free cash flow (usage)
Free cash flow is defined as cash flows from operating activities, less net additions to PP&E and intangible assets. Management believes that this non-GAAP cash flow measure provides investors with an important perspective on the Corporation’s generation of cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. This non-GAAP cash flow measure does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity generation.

Bombardier Provides Preliminary Fourth Quarter and Full Year 2019 Financial Results and Updates on Accelerating Deleveraging Phase of Turnaround Plan

  • Financial results expected to be below guidance, driven largely by actions at Transportation to resolve challenging projects
  • Aviation financial results largely on track
  • Company actively pursuing strategic options to accelerate deleveraging
  • Bombardier reassessing future participation in Airbus Canada Limited Partnership

All amounts in this press release are in U.S. dollars unless otherwise indicated.

MONTREAL, Jan. 16, 2020 (GLOBE NEWSWIRE) — Bombardier (TSX: BBD.B) today announced its preliminary results for the fourth quarter and full year 2019. The Company now expects lower than previously guided financial performance, mainly as a result of actions taken to resolve challenging rail projects, the timing of milestone payments and new orders at Transportation, and the delivery of four Global 7500 aircraft slipping into the first quarter of 2020.

Preliminary Results for the Fourth Quarter and Full Year 2019

Fourth Quarter 2019
Expected Results
Full Year 2019
Expected Results
Consolidated Revenues ~$4.2B ~$15.8B
Aviation ~$2.4B ~$7.5B
Transportation ~$1.8B ~$8.3B
Consolidated Adjusted EBIT1,2 ~$(130)M ~$400M
Aviation ~6% ~7%
Transportation ~(13)% ~1%
Consolidated Adjusted EBITDA1,2 ~$0M ~$830M
Free Cash Flow1 ~$1.0B ~$(1.2)B
Aircraft deliveries (in units) 58 175
Business Aircraft 52
Incl. 6 Global 7500
142
Incl. 11 Global 7500
Commercial Aircraft 6 33
Backlog aat December 31, 2019
Business aircraft ~$14.4B
Transportation ~$35.7B

1 Non-GAAP financial measures. Refer to the Caution regarding Non-GAAP financial measures below for definitions of these metrics.

2 Excludes Airbus Canada Limited Partnership (ACLP) equity pick-up.

Aviation deliveries were strong in the quarter, totalling 58 aircraft in the fourth quarter for a total of 175 aircraft for the full year. This included 11 Global 7500, six of which were delivered in the fourth quarter. The remaining Global 7500 aircraft originally scheduled for delivery in the final days of 2019 are now expected to be delivered in the first quarter of 2020. As Aviation made good progress ramping up the Global 7500, its full year adjusted EBIT margin is still expected to be approximately 7.0%, in line with full year guidance.

At Transportation, the fourth quarter adjusted EBIT loss is anticipated to be approximately $230 million. This includes a charge of approximately $350 million related to certain projects in the UK (the Aventra platform), commercial negotiations with Swiss Federal Railways (SBB), and increased production and manufacturing costs for projects in Germany.

Delays in achieving technical milestones, including multi-unit software homologation for the London Overground’s LoTrain project (an Aventra project), and execution of production ramp-up required the Company to re-align certain delivery schedules with customers and absorb additional costs. Having achieved these milestones in the fourth quarter, Bombardier has entered into commercial negotiations with customers – to reset schedules, resolve late delivery penalties, and address related provisions and costs.

Consolidated free cash flow for the fourth quarter is estimated at approximately $1.0 billion, approximately $650 million lower than anticipated. This is largely due to the timing of cash inflows from milestone payments on large Transportation projects, and the later-than-anticipated closing of certain orders and call-offs. While the free cash flow shortfall is largely expected to be recovered in 2020, the recovery will be offset by the cash flow impact of the incremental costs recognized in the fourth quarter adjustments at Transportation.

While fourth quarter financial performance at Transportation was lower than expected, the Company continues to make significant progress completing legacy projects and to take the right actions to position the business for long-term success.

Airbus Canada Limited Partnership Update (ACLP)
With its exit from Commercial Aerospace, Bombardier is reassessing its ongoing participation in ACLP.

While the A220 program continues to win in the marketplace and demonstrate its value to airlines, the latest indications of the financial plan from ACLP calls for additional cash investments to support production ramp-up, pushes out the break-even timeline, and generates a lower return over the life of the program. This may significantly impact the joint venture value. Bombardier will disclose the amount of any write-down when we complete our analysis and report our final fourth quarter and 2019 financial results.

Acceleration of Deleveraging Phase of Turnaround

Liquidity remains strong, with year-end cash on hand of approximately $2.6 billion. The CRJ program sale to Mitsubishi Heavy Industries, Ltd (MHI) and Aerostructures sale to Spirit AeroSystems Holding, Inc., both of which are still tracking to close by mid-year, will provide an additional $1.1 billion of cash subject to customary closing adjustments. The Company has received most of the regulatory approvals required for closing of the CRJ sale.

Consistent with Bombardier’s five-year turnaround plan, and following a comprehensive review of strategic alternatives, the Company is actively pursuing options to strengthen its balance sheet and enhance shareholder value.

“Since launching our turnaround plan, we have addressed our underperforming aerospace assets, completed our heavy investment cycle, and put the Company on a solid path toward organic growth and margin expansion while prudently managing our liquidity and heavy debt load,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “The final step in our turnaround is to de-lever and solve our capital structure. We are actively pursuing alternatives that would allow us to accelerate our debt paydown. The objective is to position the business for long-term success with greater operating and financial flexibility.”

The Company will provide additional information when it reports its fourth quarter and full year 2019 financial results on February 13, 2020.

About Bombardier
With over 68,000 employees, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.

Headquartered in Montreal, Canada, Bombardier has production and engineering sites in 28 countries as well as a broad portfolio of products and services for the business aviation, commercial aviation and rail transportation markets. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion US. The company is recognized on the 2019 Global 100 Most Sustainable Corporations in the World Index. News and information are available at bombardier.com or follow us on Twitter @Bombardier.

Bombardier, CRJ and Global 7500 are trademarks of Bombardier Inc. or its subsidiaries.

For information
Jessica McDonald
Advisor, Media Relations and Public Affairs
Bombardier Inc.
+514 861 9481

Patrick Ghoche
Vice President, Corporate Strategy
and Investor Relations
Bombardier Inc.
+514 861 5727

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to the Corporation’s objectives, anticipations and guidance in respect of various financial and global metrics and sources of contribution thereto; targets, goals, priorities, market and strategies, financial position, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; growth strategy, including in the business aircraft aftermarket business; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; competitive position; expectations regarding working capital recovery across late-stage Transportation projects; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings on the Corporation’s business and operations; strength of capital profile and balance sheet, creditworthiness, available liquidities and capital resources, expected financial requirements and ongoing review of strategic and financial alternatives; the introduction of productivity enhancements, operational efficiencies and restructuring initiatives and anticipated costs, intended benefits and timing thereof; the expected objectives and financial targets underlying our transformation plan and the timing and progress in execution thereof, including the anticipated business transition to growth cycle and cash generation; expectations and objectives regarding debt repayments, expectations and timing regarding an opportunistic redemption of CDPQ’s investment in BT Holdco; intentions and objectives for the Corporation’s programs, assets and operations; the funding and liquidity of Airbus Canada Limited Partnership (ACLP); the pursuit of any strategic option to strengthen the Corporation’s balance sheet and enhance shareholder value, the anticipated benefits of any transaction resulting therefrom and the expected impact on the Corporation’s operations, infrastructure, opportunities, financial condition, business plan and overall strategy. As it relates to the sale of the CRJ aircraft program (the Pending Transaction) and the disposition of the Aerostructures operations, this press release also contains forward-looking statements with respect to: the expected terms, conditions, and timing for completion thereof; the respective anticipated proceeds and use thereof and/or consideration therefor, related costs and expenses, as well as the anticipated benefits of such actions and transactions and their expected impact on the Corporation’s guidance and targets; and the fact that closing of these transactions will be conditioned on certain events occurring, including the receipt of necessary regulatory approval.

Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Corporation’s current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the Strategic Priorities and Guidance and forward-looking statements sections in Overview, Business Aircraft, Commercial Aircraft, Aerostructures and Engineering Services and Transportation in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, risks associated with general economic conditions, risks associated with our business environment (such as risks associated with “Brexit”); the financial condition of the airline industry, business aircraft customers, and the rail industry; trade policy; increased competition; political instability and force majeure events or global climate change), operational risks (such as risks related to developing new products and services; development of new business and awarding of new contracts; book-to-bill ratio and order backlog; the certification and homologation of products and services; fixed-price and fixed-term commitments and production and project execution, including challenges associated with certain Transportation’s legacy projects and the release of working capital therefrom; pressures on cash flows and capital expenditures based on project-cycle fluctuations and seasonality; risks associated with our ability to successfully implement and execute our strategy, transformation plan, productivity enhancements, operational efficiencies and restructuring initiatives; doing business with partners; risks associated with the Corporation’s partnership with Airbus and investment in ACLP; risks associated with the Corporation’s ability to continue with its funding plan of ACLP and to fund, if required, the cash shortfalls; inadequacy of cash planning and management and project funding; product performance warranty and casualty claim losses; regulatory and legal proceedings; environmental, health and safety risks; dependence on certain customers, contracts and suppliers; supply chain risks; human resources; reliance on information systems; reliance on and protection of intellectual property rights; reputation risks; risk management; tax matters; and adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; retirement benefit plan risk; exposure to credit risk; substantial existing debt and interest payment requirements; certain restrictive debt covenants and minimum cash levels; financing support provided for the benefit of certain customers; and reliance on government support), market risks (such as risks related to foreign currency fluctuations; changing interest rates; decreases in residual values; increases in commodity prices; and inflation rate fluctuations). For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

With respect to the divestiture of the Corporation’s Aerostructures operations discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: the failure to complete any divestiture or other transaction resulting therefrom within the expected time frame, on commercially satisfactory terms or at all; all or part of the intended benefits therefrom not being realized within the anticipated timeframe, or at all; and the incurrence of related costs and expenses; and negative effects of the announcement or pendency of any such divestiture or other transaction. With respect to the Pending Transaction discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: the failure to receive or delay in receiving regulatory approvals, or otherwise satisfy the conditions to the completion of the transaction or delay in completing and uncertainty regarding the length of time required to complete such transactions, and the funds and benefits thereof not being available to Bombardier in the time frame anticipated or at all; alternate sources of funding that would be used to replace the anticipated proceeds and savings from such strategic actions and transactions, as the case may be, may not be available when needed, or on desirable terms. Accordingly, there can be no assurance that any divestiture relating to the Corporation’s Aerostructures operations, or the Pending Transaction will be undertaken or occur, or of the timing or successful completion thereof, or the amount and use of proceeds therefrom, or that the anticipated benefits will be realized in their entirety, in part or at all. There can also be no assurance as to the completion, the form, or the timing of any BT Holdco buy-back or any other transaction in connection with the pursuit of any strategic option to strengthen the Corporation’s balance sheet and enhance shareholder value. For more details, see the Risks and uncertainties section in Other in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2018.

Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in the Corporation’s forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, the Corporation expressly disclaims any intention, and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

CAUTION REGARDING NON-GAAP FINANCIAL MEASURES
This press release is based on reported earnings in accordance with IFRS and on the following non-GAAP financial measures:

Non-GAAP financial measures
Adjusted EBIT EBIT excluding special items. Special items comprise items which do not reflect the Corporation’s core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include, among others, the impact of restructuring charges and significant impairment charges and reversals.
Adjusted EBITDA Adjusted EBIT plus amortization and impairment charges on PP&E and intangible assets.
Free cash flow (usage) Cash flows from operating activities less net additions to PP&E and intangible assets.

Non-GAAP financial measures are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS. The exclusion of certain items from non-GAAP performance measures does not imply that these items are necessarily non-recurring. Other entities in our industry may define the above measures differently than we do. In those cases, it may be difficult to compare the performance of those entities to ours based on these similarly-named non-GAAP measures.

Prior to the first quarter of fiscal year 2019, the Corporation reported non-GAAP measures labelled “EBIT before special items” and “EBITDA before special items”. Beginning in the first quarter of fiscal year 2019, the Corporation changed the label of these non-GAAP measures to “adjusted EBIT” and “adjusted EBITDA”, respectively, without making any change to the composition of these non-GAAP measures. The Corporation believes that this new label aligns better with broad market practice in its industry and better distinguishes these measures from the IFRS measurement “EBIT”.

Adjusted EBIT and adjusted EBITDA
Management uses adjusted EBIT and adjusted EBITDA for purposes of evaluating underlying business performance. Management believes these non-GAAP earnings measures in addition to IFRS measures provide readers with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Adjusted EBIT and adjusted EBITDA exclude items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number readers analyze our results based on these financial measures. Management believes these measures help readers to better analyze results, enabling better comparability of our results from one period to another and with peers.

Free cash flow (usage)
Free cash flow is defined as cash flows from operating activities, less net additions to PP&E and intangible assets. Management believes that this non-GAAP cash flow measure provides investors with an important perspective on the Corporation’s generation of cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. This non-GAAP cash flow measure does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity generation.