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Transat A.T. Inc. - Net Income of $6.3 Million for the Third Quarter - Demand Increases but Remains Below Last Year's Levels - Recovery from September 11, 2001 Continues
- Transat recorded net income of $6.3 million for the quarter, or $0.17 per share, essentially the same level as last year.
- Third quarter revenues reached $495.4 million, down 5.0% from the third quarter of 2001 but a clear improvement over the two previous quarters.
- For the first nine months, the corporation recorded revenues of $1.6 billion and net income of $3.0 million.
- Transat's financial position remains sound; cash and cash equivalents were $287.5 million at the end of the quarter, compared with $178.0 million last year.
Transat A.T. Inc., one of the 10 leading tour operators in the world and the leader in the vacation travel industry inCanada, recorded revenues of $495.4 million for the third quarter ended July 31, 2002, down 5.0% from $521.2 million posted for the third quarter of2001.
This represents a clear improvement compared with decreases of 13.2% and9.6% for the first and second quarter respectively. For the quarter, theCorporation reported net income of $6.3 million ($0.17 per share), an increase over net income of $5.9 million ($0.18 per share) for the same period last year.
'The market continues to improve but sales volumes remain lower than theyshould be. Certain costs, such as insurance, have increased considerably,' stated Jean-Marc Eustache, President and Chief Executive Officer of Transat A.T. Inc. 'The competition remains fierce. Under the circumstances, we are satisfied with our results, which affirm our efforts to counter pressureexerted on our margins and load factors, also considering the strength of the U.S. dollar,' he added.
For the nine-month period ended July 31, 2002, Transat recorded revenuesof $1.56 billion compared with $1.72 billion in 2001, a decrease of 9.3%. Fort his period, the Corporation recorded net income of $3.0 million, ($0.05 pershare), compared with net income of $21.7 million ($0.67 per share), in 2001.
In Canada and in Europe we expect the rest of the summer to be similar tothat of the third quarter. In Canada, in particular for southern destinations,pressures on sales volumes continue to be considerable, as is reflected in the margins. Even so, the demand for Canadian departures to European destinations continues to recover in markets where competition remains fierce, especially in Ontario. In France, we expect demand to remain weak and competition toremain fierce in the fourth quarter. Nevertheless, Management remains optimistic with regard to fourth quarter results.
About Transat A.T. Inc.
Transat A.T. Inc. with its head office in Montreal is an integratedcompany specializing in the organization, marketing, and distribution ofholiday travel. The core of its business consists of tour operators in Canada and France. Transat is also involved in air transportation, hotel management,and value-added services offered at travel destinations as well as indistribution through travel agency networks. Transat A.T. Inc. is a public corporation listed on the Toronto Stock Exchange (TSE:TRZ). In 2001, Transat recorded revenues of more than $2 billion.