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Exchange Income Corporation Reports Financial Results for Second Quarter 2010

^{Published on 2010-08-12 14:11:00 - Market Wire}
 

 - Consolidated revenue increased 7.8% to $60.2 million. - EBITDA increased 1% to $8.6 million. - Net earnings were $3.7 million, down from $4.0 million. - Distributable cash totaled $6.2 million, down from $6.7 million. - Free cash flow was flat at $7.0 million. - Completed on a bought deal basis a $30 million offering of Series H convertible senior secured debentures with a seven year maturity and a 6.5% per annum interest rate. - Total senior debt to equity ratio is 0.06 versus 0.50 at June 30, 2009, an 88% year over year decline. - Invested $14.6 million in growth capital expenditures, relating primarily to the acquisition of Aviation segment equipment. 

 - Appointed Michael Rodyniuk as Vice President and Chief Operating Officer of Aviation segment. - Keewatin Air, a subsidiary of the Corporation's Aviation segment, was awarded a five-year contract by the Nunavut Government to perform exclusive medevac services into the Baffin Island region. The area of Nunavut serviced under this contract is geographically contiguous to Keewatin's existing operations and more than doubles its area of operations. The contract also leverages Keewatin's core competency in the medical evacuation field. The contract value is anticipated to be $50 million over five years. It is expected that Keewatin will need to invest significant capital in aircraft and ground infrastructure in Iqualuit to service the contract. Keewatin is in the midst of final documentation and anticipates that service will begin in Q4 of this year. Selected Second Quarter Financial Highlights ------------------------------------------------------------------------- All amounts in thousands except % and share data Q2 2010 Q2 2009 Change ------------------------------------------------------------------------- Revenue $60,219 $55,852 +7.8% ------------------------------------------------------------------------- EBITDA(1) $8,556 $8,478 +1% ------------------------------------------------------------------------- Net Earnings $3,654 $4,032 -9.4% ------------------------------------------------------------------------- Earnings per Share (fully diluted)(2) $0.27 $0.44 -$0.17 ------------------------------------------------------------------------- Dividends/Distributions declared per share $0.39 $0.39 $0 ------------------------------------------------------------------------- ----------------------------- (1) EBITDA is defined as earnings before interest, income taxes, depreciation, amortization, other non-cash expenses and any unusual non-operating one-time items. EBITDA is not a defined performance measure under Canadian generally accepted accounting principles (GAAP). It is used by Management to assess the performance of the Corporation and its operating segments. (2) The Corporation had 13,085,696 shares outstanding at June 30, 2010 compared to 9,877,877 at June 30, 2009. 

 Selected Year-to-date Financial Results ------------------------------------------------------------------------- All amounts in thousands except % and share data FY2010 FY2009 Change ------------------------------------------------------------------------- Revenue $113,475 $93,048 +22.0% ------------------------------------------------------------------------- EBITDA $15,518 $12,564 +23.5% ------------------------------------------------------------------------- Net Earnings $6,016 $5,417 +11.1% ------------------------------------------------------------------------- Earnings per Share (fully diluted) $0.48 $0.72 -$0.24 ------------------------------------------------------------------------- Dividends/Distributions declared per share $0.78 $0.78 $0 ------------------------------------------------------------------------- 

 Selected Second Quarter Key Performance Indicators ------------------------------------------------------------------------- All amounts in thousands except % and share data Q2 2010 Q2 2009 Change ------------------------------------------------------------------------- Free Cash Flows(3) $7,036 $7,039 Nil ------------------------------------------------------------------------- Distributable Cash(4) $6,120 $6,673 -8.3% ------------------------------------------------------------------------- Distributable Cash per Share (basic) $0.49 $0.76 -$0.27 ------------------------------------------------------------------------- Dividends/Distributions Declared $5,006 $3.642 +37.5% ------------------------------------------------------------------------- Total Dividends/Distributions Declared (basic) as a Percentage of Distributable Cash 81.8% 54.6% ------------------------------------------------------------------------- 

 Caution concerning forward-looking statements --------------------------------------------- 

 ----------------------------- (3) Free cash flows is a financial metric used by Management to assess the Corporation's performance and assess its ability to sustain its dividend policy. Free cash flows for the period is equal to the cash flow from operating activities as defined by Canadian GAAP, adjusted for changes in non-cash working capital and any unusual non-operating one-time items. It is not a recognized measure under Canadian GAAP. (4) Distributable cash is a performance measure used by Management to summarize the funds available for the payment of dividends to shareholders. Distributable cash is defined as EBITDA less cash interest, cash taxes and capital expenditures required to maintain the operations at their current level. It is not a recognized measure under Canadian GAAP.