|
Attention Business/Financial Editors
ACE Aviation reports first quarter 2010 results
MONTREAL, May 7 /CNW Telbec/ - ACE Aviation Holdings Inc. (ACE) today
reported first quarter results for 2010.
Effective October 27, 2009, when ACE's ownership in Air Canada was
reduced from 75% to 27%, ACE no longer consolidates Air Canada's financial
position, operating results and cash flows. Since then ACE's investment in Air
Canada is accounted for using the equity method.
ACE recorded a consolidated loss for the quarter of $16 million. This
includes ACE's proportionate share of Air Canada's losses, after adjustments,
for the quarter of $20 million and interest income of $5 million principally
from ACE's $150 million loan to Air Canada.
At April 30, 2010, ACE's net assets at fair value (determined on a
non-GAAP basis, using market value for ACE's shares in Air Canada instead of
the value determined under the equity method) amounted to $374 million or
$11.52 per share. ACE's assets are:
<<
- 75 million Class B Voting Shares in Air Canada which had a market value
of $167 million based on the closing price on the TSX;
- a secured loan of $150 million to Air Canada;
- cash and cash equivalents of $53 million;
- interest receivable of $5 million; and
- 2.5 million warrants for the purchase of Air Canada Class B voting
shares at exercise prices of $1.44 (1.25 million warrants) and $1.51
(1.25 million warrants) per share which had an estimated fair value of
$2 million.
>>
ACE's obligations are accounts payable and accrued liabilities of $3
million.
For further information on ACE's public disclosure file, including ACE's
Annual Information Form, please consult SEDAR at www.sedar.com.
<<
CAUTION REGARDING FORWARD-LOOKING INFORMATION
---------------------------------------------
>>
Certain statements in this news release may contain forward-looking
statements. These forward-looking statements are identified by the use of
terms and phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will", "would", and
similar terms and phrases, including references to assumptions. Such
statements may involve but are not limited to comments with respect to
strategies, expectations, planned operations or future actions.
Forward-looking statements, by their nature, are based on assumptions and are
subject to important risks and uncertainties. Any forecasts or forward-looking
predictions or statements cannot be relied upon due to, amongst other things,
changing external events and general uncertainties of the business. Such
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements to differ
materially from those expressed in the forward-looking statements. Results
indicated in forward-looking statements may differ materially from actual
results for a number of reasons, including without limitation, energy prices,
general industry, market, credit and economic conditions, war, terrorist acts,
changes in demand due to the seasonal nature of the business, the ability to
reduce operating costs and employee counts, employee relations, labour
negotiations or disputes, pension issues, currency exchange and interest
rates, changes in laws, adverse regulatory developments or proceedings,
pending and future litigation and actions by third parties as well as the
factors identified throughout ACE's filings with securities regulators in
Canada and, in particular, those identified in the Risk Factors section of
ACE's 2009 MD&A dated February 11, 2010. The forward-looking statements
contained herein represent ACE's expectations as of the date they are made and
are subject to change after such date. However, ACE disclaims any intention or
obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as required
under applicable securities regulations.
-30-
|
NEWS RELEASES