Chorus Aviation Inc. announces dividend increase and declares fourth quarter dividend
Dividend increased by 50% to $0.45
HALIFAX, Dec. 10, 2013 /CNW/ – Chorus Aviation Inc. ("Chorus") (TSX: CHR.B CHR.A CHR.DB) today announced that effective immediately, its Board of Directors has approved an increase in the quarterly dividend from the current level of $0.075 per share to $0.1125. On an annualized basis this translates to $0.45 per share.
"Our business is strong and we remain focused on improving our cost competitiveness," said Joseph Randell, President and Chief Executive Officer, Chorus. "This dividend level has been set to allow the company to pay down current maturing debt, to continue to fund initiatives to reduce our costs, and to support capital projects and other growth opportunities. Our Board remains committed to delivering value to our shareholders."
The fourth quarter dividend of $0.1125 per Class A and Class B share is payable on or after January 17, 2014 to shareholders of record at the close of business on December 31, 2013. These dividends qualify as eligible dividends in Canada and qualifying dividends in the United States.
The Board of Directors of Chorus will continue to periodically review the dividend taking into account current environment and the performance of the Company.
Forward Looking Statements
Certain statements in this news release may contain statements which are forward-looking. 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 relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and other uncertain events. Forward-looking statements, by their nature, are based on assumptions, including those described below, 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, risks relating to Chorus' relationship with Air Canada, risks relating to the airline industry, energy prices, general industry, market, credit, and economic conditions, competition, insurance issues and costs, supply issues, war, terrorist attacks, epidemic diseases, acts of God, changes in demand due to the seasonal nature of the business, the ability to reduce operating costs and employee counts, secure financing, employee relations, labour negotiations or disputes, restructuring, pension issues, currency exchange and interest rates, leverage and restructure covenants in future indebtedness, dilution of Chorus shareholders, uncertainty of dividend payments, managing growth, changes in laws, adverse regulatory developments or proceedings, pending and future litigation and actions by third parties. There are no assurances that Chorus will enter into or implement new CPA amendments with Air Canada. The forward-looking statements contained in this discussion represent Chorus' expectations as of December 10, 2013, and are subject to change after such date. However, Chorus 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.
Chorus Aviation Inc. was incorporated on September 27, 2010 and is a dividend-paying holding company which owns Jazz Aviation LP and Chorus Leasing III Inc.
Chorus is traded on the Toronto Stock Exchange under the trading symbols of CHR.A, CHR.B and CHR.DB.
For more information, visit www.chorusaviation.ca
Jazz Aviation LP has a strong history in Canadian aviation with its roots going back to the 1930s. Jazz is wholly owned by Chorus Aviation Inc. and continues to generate some of the strongest operational and financial results in the North American aviation industry. As the largest regional carrier in Canada, Jazz has a proven track record of industry leadership and exceptional customer service, and has leveraged that strength to deliver value to all its stakeholders. The Company operates more flights and flies to more Canadian destinations than any other carrier and has a workforce of approximately 4,450 professionals highly experienced in the challenging and complex nature of regional operations.
There are two airline divisions operated by Jazz Aviation LP: Air Canada Express and Jazz.
Air Canada Express: Under a capacity purchase agreement with Air Canada, Jazz provides service to and from lower-density markets as well as higher-density markets at off-peak times throughout Canada and to and from certain destinations in the United States. In December of 2013, Jazz is operating scheduled passenger service on behalf of Air Canada with approximately 740 departures per weekday to 54 destinations in Canada and to 25 destinations in the United States. With a fleet of 122 Canadian-made Bombardier aircraft, Jazz flies more daily flights to the most Canadian destinations than any other carrier
Jazz: Under the Jazz brand, the airline offers charters throughout North America with a dedicated fleet of five Bombardier aircraft for corporate clients, governments, special interest groups and individuals seeking more convenience. Jazz also has the ability to offer airline operators services such as ground handling, dispatching, flight load planning, training and consulting.
For more information, visit www.flyjazz.ca.
SOURCE Chorus Aviation Inc.