Chorus Aviation's new Structure makes money

   Chorus Aviation reported it's fourth quarter and annual results on February19,2016.It is working under the amended CPA agreement with Air Canada and the changes are noticeable.First it's operating revenues are down from $401 million to $357 million but operating expenses are down also.CPA pass through revenues, made from the Air Canada agreement, are down but revenues from leasing and charters are up as is maintenance revenues.It's new acquisition Voyageur has successfully added to revenues and EBITDA.             

            Financial Details
  Chorus sets out at the start of it's report that operating income (8.4%),adjusted EBITDA (2.6%) and adjusted earnings per share (1.3%) are all up from last year.Adjusted EBITDA was $209 million and adjusted net income was $96 million.Net income was $26 million and adjusted net income per share was $.21 per share.
 An interesting trend is that all figures in the fourth quarter on an anuualized basis are higher than the yearend figures.The revenue figures for the fourth quarter were below that for the same quarter in 2014.While the adjusted EBITDA,adjusted  net income and net income figures were ahead of last year.But not only are they ahead of the same quarter last year but they are ahead of the year as a whole once anualized.Chorus is managing things better each quarter as it looks.One of the reasons is definitely the acquisition of the Voyageur Airways operation;Chorus has leased new airplanes and Voyageur is contributing to increases in EBITDA.
    The new Organization
 This blog has been critical of Chorus in the past because it has included regulated and non-regulated revenues together so that it is difficult to separate.This report is better than past reports for clarity.It is easier to see one organization from the other.Still there could be improvements in the organization of the report itself.
 Further to that is the actual makeup of the company.It is clear that their new acquisition Voyageur Airways has added revenues and EBITDA.Chorus has leased 5 new CRJ200s so it can do more contracting and chartering.This blog believes that more investment will have to go into Voyageur in 2016.
 It is clear that overall revenues have decreased but Chorus has been very efficient with both their regulated and non-regilated operations.Proof of that is EBITDA and net income have risen as .a whole.It is important to note that adjusted net income per share for the fourth quarter is greater than for the whole of 2015.This blog finds that this is a very well run company that is on the right path. Furthermore as Voyageur fits into it's operation better and with more new investment the next quarter should be.better again.
 Conclusion
  The new organization seems to be on the right track.But investors do need to know if revenues and EBITDA is increasing for Voyageur.Just an overview statement should be sufficient.The maintenace operations are also contributing to revenues and EBITDA but their contribution is not great enough yet to require much of a breakdown here.Overall performance is good and this blog expects annual EBITDA  to hit $240 to  $250 million in 2016.Also it would not be too difficult to see adjusted net income per share of $1 per share for 2016.If that happens then a dividend raise back to $.60 where it was in 2012 is not out of the question.                 use Workathon (blogger.com) for analysis of Cdn.juniors; use Workathon(blogger.com) for analysis of "small caps"