CAE Q3 Profit Rises; To Establish Normal Course Issuer Bid Program

(RTTNews) - Canadian aviation-training and simulation products provider CAE Inc. (CAE, CAE.TO) reported an increase in profit for the third quarter from last year and said it plans to establish a normal course issuer bid program. Revenues for the quarter beat analysts' expectations.

Net income attributable to equity holders of the company for the third quarter increased to C$57.7 million from last year's C$53.0 million, with earnings per share improving to C$0.21 from C$0.20 in the previous year.

The latest quarter's results include restructuring costs of C$1.5 million, net after-tax, related to CAE's ongoing process improvement program.

Net income before specific items was C$59.4 million or C$0.22 per share, up 14 percent from the same period last year.

On average, twelve analysts polled by Thomson Reuters expected the company to report earnings of C$0.21 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter rose 10 percent to C$616.3 million from C$559.1 million in the year-ago period. Wall Street expected revenues of C$625.88 million for the quarter.

Looking ahead, CAE said it continues to expect growth in fiscal 2016 across all business segments.

CAE will pay a dividend of 7.5 cents per share effective March 31, 2016 to shareholders of record at the close of business on March 15, 2016.

CAE's board of directors has approved its intention to establish a normal course issuer bid or NCIB, which is expected to commence shortly after the regulatory approvals are obtained.

The common shares that may be repurchased under the program over a period of approximately one year will represent up to 2 percent of the issued and outstanding common shares of CAE.