Nav Canada has released its financial results for the year ended Aug. 31, 2015. The results show continued success in controlling costs while maintaining safe and efficient air navigation services, as well as growth in air traffic volumes of 4.6 per cent over the prior fiscal year.
The company’s fiscal year runs from Sept. 1 to Aug. 31. In fiscal 2015, the company achieved positive free cash flow and strong financial performance as evidenced by its rate stabilization account, finishing with a positive balance of $77 million. When adjusted for rate setting purposes, there is a positive “notional” balance of $98 million in the rate stabilization account, which is equal to its target balance.
“We have experienced steady and consistent growth in air traffic volume, recording year-over-year increases in each of the last 24 months,” said John Crichton, president and CEO.
“Investments made this year to modernize our infrastructure and deploy new technology will improve service delivery and provide benefits to our customers for years to come. We remain focused on controlling our costs and ensuring that our strategic investments, whether they be in new facilities or satellite ADS-B, will deliver real improvements,” Crichton said.
The company’s revenue before rate stabilization for fiscal 2015 was $1,332 million, compared to $1,272 million in the previous fiscal year, mainly due to the growth in air traffic volumes.
Operating expenses before rate stabilization for fiscal 2015 were $1,096 million as compared to $1,043 million for fiscal 2014, mainly due to higher compensation levels, higher pension expense and inflationary increases.
Interest, depreciation and amortization expenses before rate stabilization totalled $238 million as compared to $241 million for fiscal 2014, mainly due to lower debt levels.
Other income before rate stabilization for fiscal 2015 was $3 million as compared to $35 million for fiscal 2014, mainly due to fair value adjustments on the company’s investments in ABCP. As at Aug. 31, 2015, the fair value of the company’s investments in ABCP restructured and non-restructured notes is $274 million on holdings with a face value of $296 million. Of the total fair value variances from face value of $22 million, $21 million is considered recoverable over the terms of the notes.
Based on the above, the company had an excess of revenue and other income over expenses before rate stabilization of $1 million for fiscal 2015.
Nav Canada is the country’s private sector civil air navigation services provider. With operations from coast to coast to coast, Nav Canada provides air traffic control, flight information, weather briefings, aeronautical information services, airport advisory services and electronic aids to navigation.