The fourth-quarter reporting cycle for defense stocks, which are housed within the broader Zacks Aerospace sector, has already started with a handful of major defense contractors like Lockheed Martin, General Dynamics, Northrop Grumman and Textron having delivered better-than-expected earnings. Looking ahead, as geopolitical instability continues to prevail across the world, compelling nations to safeguard their borders through added defense spending, the fourth-quarter results of the remaining defense majo ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering CAE (CAE) , which belongs to the Zacks Aerospace - Defense Equipment industry.This civil and military flight simulator company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 26.67%.For the last reported quarter, CAE came out with ...

CAE, Inc. (NYSE:CAE) Q2 2024 Earnings Call Transcript November 14, 2023 2:00 PM ET Company Participants Andrew Arnovitz - SVP, IR & Enterprise Risk Management Marc Parent - President and CEO Sonya Branco - Executive VP of Finance & CFO Conference Call Participants Fadi Chamoun - BMO Capital Markets Tim James - TD Securities Cameron Doerksen - National Bank Financial Kevin Chiang - CIBC Kristine Liwag - Morgan Stanley James McGarragle - RBC Capital Markets Benoit Poirier - Desjardins Capital Markets. Konark ...

Total Assets and Financial Position - Total assets increased to $10,565.3 million as of September 30, 2023, compared to $10,436.5 million as of March 31, 2023[23] - Civil Aviation segment assets grew to $5,994.4 million as of September 30, 2023, up from $5,852.4 million as of March 31, 2023[23] - Non-current assets other than financial instruments, deferred tax assets, and employee benefits assets totaled $7,910.0 million as of September 30, 2023, slightly up from $7,870.4 million as of March 31, 2023[26] - Total equity increased to $4,715.9 million as of September 30, 2023, driven by net income and changes in other comprehensive income[269][206] - Total long-term debt increased from $2,800.3 million as of March 31, 2023, to $2,920.0 million as of September 30, 2023[297] - Long-term debt decreased to $2,941.3 million as of September 30, 2023, from $3,035.5 million as of March 31, 2023[286] - Net debt increased by $18.1 million compared to the previous quarter, reaching $3,184.5 million as of September 30, 2023[203] - The net debt-to-capital ratio improved to 40.3% as of September 30, 2023, down from 42.5% in the same period last year[203] - Net debt-to-adjusted EBITDA ratio improved to 3.16 as of September 30, 2023, compared to 4.17 in the same period in 2022[255] - Cash and cash equivalents decreased to $181.5 million as of September 30, 2023, from $217.6 million as of March 31, 2023[286] - Cash and cash equivalents decreased from $217.6 million as of March 31, 2023, to $181.5 million as of September 30, 2023[297] - Accounts receivable increased from $555.3 million as of March 31, 2023, to $601.0 million as of September 30, 2023[297] Revenue and Segment Performance - Total external revenue for the six months ended September 30, 2023, reached $2,142.9 million, compared to $1,926.5 million for the same period in 2022[26] - United States contributed $1,062.6 million to external revenue for the six months ended September 30, 2023, up from $1,024.6 million in the same period of 2022[26] - Training, software, and services revenue for the six months ended September 30, 2023, was $1,378.1 million, compared to $1,226.6 million in the same period of 2022[26] - Revenue for Q2 2024 increased by 10% to $1,088.5 million compared to $993.2 million in Q2 2023[30] - Civil Aviation segment revenue increased by 13% to $572.6 million in Q2 2024 compared to $507.2 million in Q2 2023[49] - Defense and Security segment revenue grew by 8% to $477.4 million in Q2 2024 from $442.4 million in Q2 2023[49] - Revenue for the second quarter of fiscal 2024 was $1,088.5 million, a 10% increase compared to the same period last year[76] - Revenue for the first six months of fiscal 2024 was $2,142.9 million, an 11% increase compared to $1,926.5 million in the same period last year[77] - Civil Aviation revenue for the first six months of fiscal 2024 was $1,112.9 million, a 13% increase compared to $987.6 million last year[77] - Defense and Security revenue for the first six months of fiscal 2024 was $949.1 million, an 11% increase compared to $855.7 million last year[77] - Healthcare revenue for the first six months of fiscal 2024 was $80.9 million, a 3% decrease compared to $83.2 million last year[77] - Revenue for the second quarter of fiscal 2024 was $1,088.5 million, compared to $993.2 million in the same period in 2023[233] - Revenue for the three months ended September 30, 2023, was $1,088.5 million, compared to $993.2 million in the same period in 2022, a 9.6% increase[263] Operating Income and Profitability - Operating income for the six months ended September 30, 2023, was $230.7 million, compared to $141.5 million in 2022, with significant growth in Civil Aviation ($194.0 million vs. $163.8 million) and Defense and Security ($32.0 million vs. -$18.2 million)[51] - Adjusted segment operating income for the six months ended September 30, 2023, was $283.6 million, up from $185.6 million in 2022, driven by strong performance in Civil Aviation ($233.3 million vs. $191.0 million)[51] - Adjusted segment operating income for Civil Aviation increased by 9% to $114.3 million in Q2 2024 from $104.4 million in Q2 2023[49] - Adjusted segment operating income for Defense and Security rose by 16% to $21.3 million in Q2 2024 from $18.4 million in Q2 2023[49] - Q2 2024 revenue was $1,088.5 million, with a gross profit of $303.1 million (27.8% of revenue), and operating income of $100.6 million (9.2% of revenue)[55] - Gross profit for the first six months of fiscal 2024 was $609.0 million (28.4% of revenue), up from $506.5 million (26.3% of revenue) last year[79] - Adjusted segment operating income margin was 20.0% in Q2-2024, compared to 22.0% in Q1-2024[93] - Adjusted earnings before income taxes for the three months ended September 30, 2023, were $90.5 million, compared to $83.4 million in the same period in 2022[227] - Adjusted EBITDA for the last twelve months ended September 30, 2023, was $1,007.1 million, up from $766.3 million in the same period in 2022, a 31.4% increase[255] - EBITDA and adjusted EBITDA are used to evaluate operating performance by eliminating non-operational or non-cash items[310] Net Income and Earnings Per Share (EPS) - Net income attributable to equity holders rose by 31% to $58.4 million from $44.5 million in the same period last year[30] - Adjusted EPS grew by 42% to $0.27 from $0.19 in Q2 2023[30] - Adjusted net income for Q2 2024 was $87.4 million, with adjusted EPS of $0.27, compared to $61.5 million and $0.19 in Q2 2023[55] - Net income for Q2 2024 was $61.1 million, with EPS attributable to equity holders of $0.18 (basic) and $0.18 (diluted)[55] - Net income for the six months ended September 30, 2022, was $50.0 million, with total comprehensive income of $216.5 million[60] - Net income for the six months ended September 30, 2023, was $123.7 million, with total comprehensive income of $108.1 million[269] - Net income for the second quarter of fiscal 2024 was $61.1 million, compared to $46.3 million in the same period in 2023[233] - Adjusted EPS for the second quarter of fiscal 2024 was $0.27, compared to $0.19 in the same period in 2023[233] - Adjusted net income for the three months ended September 30, 2023, was $87.4 million, compared to $61.5 million in the same period in 2022, representing a 42.1% increase[254] - Net income attributable to equity holders of the Company for the six months ended September 30, 2023, was $123.7 million, up from $46.2 million in the same period in 2022, a 167.7% increase[263] - Net income for the six months ended September 30, 2023, increased to $128.9 million, up from $50.0 million in the same period in 2022[284] - Total comprehensive income for the six months ended September 30, 2023, was $108.1 million, compared to $216.5 million in the same period in 2022[284] Cash Flow and Capital Expenditures - Free cash flow increased by 36% to $147.5 million compared to $108.4 million in Q2 2023[30] - Total capital expenditures for the six months ended September 30, 2023, were $224.8 million, compared to $202.8 million in 2022, reflecting increased investments in Civil Aviation ($156.5 million vs. $174.4 million) and Defense and Security ($62.9 million vs. $21.9 million)[51] - Net cash provided by operating activities for the six months ended September 30, 2023, was $130.9 million, compared to a net cash used of $24.6 million in the same period last year[63] - Property, plant, and equipment expenditures for the six months ended September 30, 2023, were $152.5 million, an increase from $142.5 million in the same period last year[63] - Property, plant and equipment increased by $50.7 million from last quarter, mainly due to foreign exchange rate movements and capital expenditures[173] - Cash used in non-cash working capital for the six months ended September 30, 2023, was $112.6 million, compared to $230.3 million in the same period in 2022[276] - Interest paid increased to $97.0 million for the six months ended September 30, 2023, from $92.6 million in the same period in 2022[293] - Income taxes paid increased to $39.6 million for the six months ended September 30, 2023, from $20.7 million in the same period in 2022[293] Debt and Financing - The company issued $400.0 million of unsecured senior notes in June 2023, bearing interest at 5.541% per annum, with a maturity date in June 2028[57] - Finance expense for the six months ended September 30, 2023, was $110.5 million, driven by long-term debt ($80.9 million) and lease liabilities ($12.0 million)[58] - The company completed a private offering of $400.0 million in unsecured senior notes at 5.541% interest, maturing in June 2028[204] - Total debt increased by $46.8 million compared to the previous quarter, primarily due to foreign exchange rate movements and lease liability additions[201] - The company manages an uncommitted receivable purchase facility of up to $400.0 million, renewed annually[203] Backlog and Contracts - Adjusted backlog grew by 11% to $11,773.1 million from $10,637.9 million in Q2 2023[30] - Adjusted backlog increased by 5% compared to the last quarter, mainly due to foreign exchange movements[86][87] - Civil Aviation segment secured contracts expected to generate $617.8 million in revenue, including 15 full-flight simulators sold in the quarter[92] - Adjusted backlog increased to $5,903.1 million in Q2-2024, up from $5,764.8 million in Q1-2024[93] - Adjusted backlog includes obligated backlog, joint venture backlog, and unfunded backlog, representing expected future revenues[312] Foreign Exchange and Tax Impact - Net (gain) loss on foreign currency exchange differences for the six months ended September 30, 2023, was $1.4 million, compared to a loss of $7.7 million in the same period of 2022[27] - Other (gains) and losses for the six months ended September 30, 2023, totaled $(5.3) million, compared to $(5.6) million in the same period of 2022[27] - Foreign exchange translation increased revenue by $32.6 million and net income by $3.6 million in Q2 2024 compared to Q2 2023, with a year-to-date increase of $70.9 million in revenue and $8.5 million in net income[54] - Adjusted income tax expense for the six months ended September 30, 2023, was $12.1 million, compared to $25.2 million in the same period in 2022[227] - Adjusted effective tax rate for the six months ended September 30, 2023, was 7%, compared to 23% in the same period in 2022[227] - The company recorded an income tax recovery of $16.2 million in the second quarter of fiscal 2024 due to the recognition of previously unrecognized deferred tax assets[270] - Average exchange rate for the U.S. dollar to Canadian dollar in the second quarter of fiscal 2024 was 1.34, compared to 1.30 in the same period in 2023[233] Strategic Initiatives and Business Transactions - The company announced the sale of its Healthcare business for an enterprise value of $311 million, expected to close before the end of fiscal year 2024[31] - The company announced a definitive agreement to sell its Healthcare business, with the transaction expected to close before the end of fiscal year 2024[67][70] - The company announced a definitive agreement to sell its Healthcare business to Madison Industries for an enterprise value of $311 million, expected to close before the end of fiscal year 2024[257] - The company announced a definitive agreement to sell its Healthcare business to Madison Industries for an enterprise value of $311 million, expected to close before the end of fiscal year 2024[304] - The company's strategic pillars include efficient growth, revolutionizing training and critical operations, technology and market leadership, and skills and culture[68] - The company's U.S. Defense and Security operations completed the initial phase of implementation of a new ERP system during the first six months of fiscal 2024[232] Pension and Employee Benefits - The company recognized a settlement gain of $5.4 million from an annuity purchase transaction in June 2023[28] - The company transferred pension obligations associated with certain retired members of Canadian defined benefit pension plans to a third-party insurer for $163.5 million in June 2023[28] - The company transferred pension obligations for certain retired members of Canadian defined benefit pension plans to a third-party insurer, reducing future pension liability growth[205] - The Omnibus Incentive Plan was approved, allowing equity awards in the form of stock options, RSUs, and PSUs, with 10,000,000 shares reserved for issuance[208] Research and Development - Research and development expenses for the six months ended September 30, 2023, were $73.7 million, compared to $72.9 million in the same period in 2022[263] Financial Instruments and Fair Value - The fair value of derivative instruments is calculated as the present value of estimated future cash flows using appropriate interest rate yield curves and forward foreign exchange rates[294] - The fair value of long-term debts is estimated based on discounted cash flows using current interest rates for instruments with similar risks and remaining maturities[294] - The fair value of financial instruments is determined using observable market data, with Level 2 inputs being the primary source for valuation[301][302] - No significant changes were observed in Level 3 financial instruments during the six months ended September 30, 2023[303] Disclosure Controls and Procedures - The company maintains disclosure controls and procedures to ensure material information is communicated to key executives in a timely manner[231] - The company's disclosure controls and procedures were deemed effective as of September 30, 2023[279] Market Analysis and Assumptions - The company relies on IATA analysis to inform assumptions about the recovery rate in the civil aviation market[307] Shareholder Information - Weighted average number of common shares outstanding for diluted earnings per share calculation was 318,927,011 for the six months ended September 30, 2023[289]

CAE, Inc. (NYSE:CAE) Q1 2024 Results Conference Call August 9, 2023 2:00 PM ET Company Participants Andrew Arnovitz - SVP, IR & Enterprise Risk Management Marc Parent - President and CEO Conference Call Participants Konark Gupta - Scotiabank Noah Poponak - Goldman Sachs Kevin Chiang - CIBC James McGarragle - RBC Capital Markets Tim James - TD Securities Cameron Doerksen - National Bank Financial Kristine Liwag - Morgan Stanley Michael Kypreos - Desjardins Capital Markets Operator Good day, ladies and gentle ...

Management's Discussion and Analysis 1. Highlights1 2. Introduction2 3. AboutCAE5 4. Foreignexchange6 5. Consolidatedresults7 6. Resultsbysegment10 7. Consolidatedcashmovementsand liquidity14 8. Consolidatedfinancial position15 9. Non-IFRSandotherfinancial measuresandsupplementarynon-financial information17 10. Changes inaccountingpolicies21 11. Internal control overfinancial reporting22 12. Selectedquarterlyfinancial information23 ConsolidatedInterimFinancialStatements Consolidated incomestatement24 Consol ...

CAE, Inc. (NYSE:CAE) Q4 2023 Earnings Conference Call May 31, 2023 2:00 PM ET Company Participants Andrew Arnovitz - SVP, IR & Enterprise Risk Management Marc Parent - President, CEO & Director Sonya Branco - EVP, Finance & CFO Conference Call Participants Fadi Chamoun - BMO Capital Markets Konark Gupta - Scotiabank James McGarragle - RBC Capital Markets Kristine Liwag - Morgan Stanley Ronald Epstein - Bank of America Merrill Lynch Tim James - TD Securities Noah Poponak - Goldman Sachs Group Stéphane Rollan ...

CAE INC. CONSOLIDATEDFINANCIALSTATEMENTS Management's Report on Internal Control Over Financial Reporting1 Report of Independent Registered Public Accounting Firm2 Consolidated Financial Statements 4 5 6 7 8 9 24 26 28 29 29 29 31 32 32 32 33 33 35 36 36 37 37 38 41 42 42 42 45 45 45 46 48 48 53 56 | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------|-------| | | | | Consolidated income statement Consolidated statement o ...

CAE Inc. (NYSE:CAE) Q3 2023 Earnings Conference Call February 14, 2023 2:00 PM ET Company Participants Andrew Arnovitz - Senior Vice President and Investor Relations Marc Parent - President and Chief Executive Officer Sonya Branco - Chief Financial Officer Conference Call Participants Konark Gupta - Scotiabank James McGarragle - RBC Capital Markets Kevin Chiang - CIBC Cameron Doerksen - National Bank Financial Fadi Chamoun - BMO Tim James - TD Securities Benoit Poirier - Desjardins Capital Markets Matthew L ...

Management's Discussion and Analysis We are well-positioned to capture growing demand for nursing and simulation-based training through our broad and innovative portfolios of medical training solutions, including patient, ultrasound and interventional simulators, audiovisual debriefing solutions, centre management platforms, augmented reality applications and e‑learning simulation-based curricula. We provide training solutions to customers in more than 95 countries, and are a leader in the design, developme ...