08.19
CHL reported Q2/09 EBITDA of $10.3 million versus $9.1 million in Q2/08
Total revenue was essentially flat Y/Y despite a 27% drop in flight hours.
EBITDA margins improved by 2.9 points Y/Y.
Resource-based demand was weak, as expected, resulting in a 44.5%
decline in domestic VFR revenue. Soft VFR demand should have a more
pronounced impact in Q3, the company’s seasonally busiest quarter. We
expect EBITDA to decline Y/Y in Q3/09.
The company’s balance sheet is very strong with zero debt and tangible
book value of $7.97 per unit. CHL has roughly $9 million in cash and an
undrawn $55 million credit facility. The company made a small $2 million
investment in Q2/09 and is looking for further investment opportunities.
CHL is inexpensive at 4.5x 2010E EBITDAR and a yield of 11.3%. Solid
profitability, a strong balance sheet and valuations.
[...] Canadian Helicopters Income Fund Solid Q2 Attractive Valuations [...]