Exchange Income Corporation reports financial results for Q4 and FY 2013

Exchange Income Corporation, a diversified, acquisition-oriented company focused on niche aviation and specialty manufacturing sectors, reported its financial results for the three- and 12-month periods ended Dec. 31, 2013. All amounts are in Canadian currency.

“Our performance in 2013 was characterized by massive growth and the record $1.03 billion in revenue we generated,” said Mike Pyle, president and CEO of Exchange Income Corporation. “However, the magnitude of the growth at WesTower put considerable strain on our management processes and systems leading to a decline in margins and profitability. We have implemented a number of measures over the last few months to improve efficiencies, and are confident that WesTower will achieve profitable growth moving forward.”

Pyle added: “2013 was also marked by the addition of Regional One, a seller of after-market aircraft engines and parts. The acquisition, which is our largest to date, allowed us to further diversify our revenue streams, enter new markets and offset a major expense category for our Aviation segment. Regional One’s contribution to EIC was above expectations in 2013, and this is a business platform that we are focused upon to grow through further capital investments.”

2013 Financial and Operational Highlights

•    Consolidated revenue was $1.03 billion, up 29 per cent.
•    As previously disclosed in the Corporation’s third quarter results, WesTower’s U.S. operations incurred an $11 million expense at that time as a result of the net effect of changes to revenue and estimates associated with specific completed projects. WesTower also incurred $5.5 million of expenses related to the use of external advisors associated with improving process efficiencies and internal controls as a result of the pressure from its rapid growth.
•    EBITDA was $80.5 million, down 15 per cent.
•    Net earnings were $9.0 million, down 65 per cent.
•    Acquired Regional One, a seller and lessor of aircraft, aircraft engines and parts, for $89.9 million.
•    Hired Steven Pickett as the new CEO of WesTower. Pickett has almost 30 years of experience in the telecommunications industry in senior roles.
•    Invested $44.1 million in growth capital expenditures aimed at positioning the Corporation for future growth opportunities.