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CAE Inc. (NYSE: CAE; TSX: CAE) stands as a global leader in training and simulation solutions for the civil aviation, defense and security, and healthcare markets. With over seven decades of innovation, CAE designs and integrates comprehensive training solutions, leveraging the expertise of its 8,000 employees and world-leading simulation technologies. Headquartered in Montreal, Canada, CAE operates 160 sites and training locations in 35 countries, making it the broadest network in the industry.
Civil Aviation: CAE trains more than 120,000 civil and defense crewmembers annually, providing advanced flight simulators and comprehensive pilot training programs. The company also manages a substantial fleet of flight simulators, enhancing accessibility and training efficiency for airlines worldwide.
Defense & Security: CAE offers mission support and training solutions for defense forces, utilizing high-fidelity simulation technologies to prepare military personnel for real-life scenarios. The company's defense projects are focused on improving combat readiness and operational efficiency of military forces globally.
Healthcare: Recent divestitures have seen CAE streamline its focus, yet it remains committed to providing simulation-based healthcare training solutions to nurture the proficiency of medical professionals.
CAE has a strong commitment to sustainability, becoming the first Canadian aerospace company to be carbon-neutral in 2020. The company continues to push the envelope with technological advancements, such as integrating Epic Games' Unreal Engine into its simulators for ultra-realistic training experiences.
Financially, CAE showcases a robust performance with a diversified revenue stream. Despite recent restructuring to optimize cost and streamline operations, CAE maintains strong market leadership in its core domains. Strategic partnerships, innovative technology integrations, and a focus on environmental, social, and governance (ESG) practices underpin CAE’s sustained growth and operational excellence.
Follow CAE on Twitter @CAE_Inc or visit their career page at www.cae.com for more information.
CAE has announced that Sonya Branco, its CFO, has been recognized as one of Canada's Top 100 Most Powerful Women of 2020 in the C-Suite Executives category. This accolade acknowledges women who significantly influence their organizations and promote workplace diversity.
Branco joined CAE in 2016 and manages financial operations in over 35 countries. CAE, a leader in digital immersion solutions, boasts around 10,000 employees and generates over 60% of its revenue from recurring sources.
On November 30, 2020, CAE Inc. completed a bought deal offering of common shares, generating approximately $495 million in gross proceeds. The offering involved the sale of 11,569,000 common shares at $29.85 each, including an over-allotment option. Additionally, 5,025,126 shares were issued through a concurrent private placement with a subsidiary of Caisse de dépôt et placement du Québec. Proceeds will support general corporate purposes, including funding acquisitions and debt repayment, enhancing CAE's strategic growth potential.
CAE's President and CEO, Marc Parent, has been appointed as a Member of the Order of Canada by Governor General Julie Payette. This prestigious honor recognizes Parent's significant contributions to the development of the Canadian aerospace industry.
Under his leadership, CAE has excelled in various sectors, including civil aviation and healthcare. Parent began his career at Bombardier Canadair and has been with CAE since 2005, becoming CEO in 2009. His commitment to community service and industry advocacy has greatly influenced CAE's reputation and operations.
CAE has agreed to acquire TRU Simulation + Training Canada Inc. for approximately US$40 million. This acquisition aims to enhance CAE's global civil training capabilities and expand its addressable market for simulator lifecycle support. With TRU Canada, CAE gains a backlog of simulator orders and access to new airline customers, which is expected to be accretive to earnings in its first full year. This marks CAE’s second acquisition announcement in two weeks, demonstrating its strategic focus and commitment to boosting its market position amidst ongoing challenges.
CAE has announced the acquisition of Flight Simulation Company B.V. (FSC) for approximately €70 million (about CAD 108 million), based on an enterprise value of €100 million (about CAD 155 million). This acquisition enhances CAE's training services in Europe and expands its customer base, including airlines and freight carriers. With FSC's modern fleet of simulators and established training solutions, CAE aims to improve customer service and market reach. The acquisition is expected to positively impact CAE's earnings from its first full fiscal year onward.
CAE has acquired Flight Simulation Company B.V. (FSC) for approximately €70 million (€100 million enterprise value), enhancing its market presence in Europe. This acquisition allows CAE to better serve commercial cargo operators and strengthens its training portfolio with an established recurring business. FSC operates a fleet of CAE-built full-flight simulators, increasing CAE's offerings to airline and cargo customers. The acquisition is expected to be accretive to earnings in its first full year, aligning with CAE's acquisition strategy and market expansion goals.
CAE Inc. has announced a bought deal to issue 10,060,000 shares at $29.85 each, generating approximately $300 million in gross proceeds. Additionally, a concurrent private placement with CDPQ will yield another $150 million at the same price per share. The proceeds are earmarked for general corporate purposes and to facilitate future acquisitions, notably the Flight Simulation Company B.V. closing is anticipated on or about November 30, 2020, subject to regulatory approvals.
CAE reported revenue of $704.7 million for Q2 FY2021, marking a 21% decline year-over-year but a 28% increase from Q1 FY2021. Net loss attributable to equity holders was $5.2 million, with an EPS of -$0.02. Operating profit decreased 77% year-over-year to $28.2 million. The Civil segment saw a 47% revenue increase from Q1, despite a 31% decline from last year, while Defence revenue rose 8% from Q1. The company faces restructuring costs of $51.1 million and a backlog of $8.3 billion amid a challenging recovery from COVID-19.
CAE is set to release its FY2021 Q2 financial results on November 10, 2020. A conference call will be held at 1 p.m. ET to discuss the performance and outlook with analysts and institutional investors. Key executives including Marc Parent and Sonya Branco will participate in the call. The call will be webcast live and archived on CAE's website, allowing wider access to stakeholders interested in the company's financial updates. CAE's business model highlights a strong base of recurring revenue, providing stability.
CAE has released its 2020-2029 Pilot Demand Outlook, forecasting a need for over 260,000 new professional pilots in the next decade. Despite a significant decline in active pilots due to COVID-19 in 2020, CAE expects the pilot population to recover by 2022, with an immediate demand for 27,000 new pilots starting late 2021. The report emphasizes ongoing challenges due to retirements and attrition, while highlighting the importance of digital technology and innovative training solutions to meet future aviation needs.
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