NAV CANADA has released its financial results for the three months ended November 30, 2015, the company said.
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 3.6 per cent compared to the same period in the prior fiscal year.
The company´s fiscal year runs from September 1 to August 31. In the first quarter of fiscal 2016, the company achieved positive free cash flow and strong financial performance as evidenced by its rate stabilization account, finishing with a positive balance of USD 102 million. When adjusted for rate setting purposes, there is a positive “notional” balance of USD 124 million in the rate stabilization account, which is above its target balance of USD 100 million.
The company´s revenue for the first quarter of fiscal 2016 was USD 342 million, compared to USD 325 million over the same period in fiscal 2015, mainly due to the growth in air traffic volumes.
Operating expenses for the first quarter of fiscal 2016 were USD 296 million as compared to USD 293 million over the same period in fiscal 2015, mainly due to higher compensation levels, higher pension expense and inflationary increases.
Lower interest income on investments and lower foreign exchange gains resulted in net other income and expenses of USD 30 million expense for the first quarter of fiscal 2016 as compared to an expense of USD 25 million over the same period in fiscal 2015.
The company had net income (before net movement in regulatory deferral accounts including rate stabilization) of USD 16 million for the first quarter of fiscal 2016.
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.