CAE Q1 Revenue Surges 37%, Expects Strong Growth In FY22

CAE INC CAE reported first-quarter FY22 revenue growth of 37% year-over-year to C$752.7 million.
Sales by segments: Civil Aviation Training Solutions C$432.9 million (+75% Y/Y); Defence and Security C$288.2 million (+3% y/Y); and Healthcare C$31.6 million (+42% Y/Y).
Order intake for the quarter increased by 25% Y/Y to C$521.5 million, and the total backlog reduced by 7% Y/Y to C$7.93 billion.
The Civil book-to-sales ratio was 0.78x for the quarter and 0.88x for the last 12 months, and the backlog was at C$4.2 billion.
Adjusted EPS improved to C$0.19 from C$(0.11) in 1Q21.
The gross margin expanded by 880 bps to 28.4%.
The operating income recovered to C$86.2 million from a loss of C$(110.3) million a year ago.
Adjusted segment operating income stood at C$98.4 million, compared to a loss of C$(2.1) million a year ago, and the margin for the quarter was 13.1%.
Net cash used in operating activities totaled C$129.1 million versus C$88.4 million last year. It reported a free cash outflow of C$147.6 million.
CAE expects continued solid year-over-year growth in the fiscal year 2022, as recovery takes hold in their end markets, integration of recent acquisitions, and ramp-up cost savings initiatives.
Price Action: CAE shares traded lower by 2.75% at $30.82 on the last check Wednesday.

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