December 31, 2023
Condensed Interim Statement of Financial Position
(Unaudited)
| (In thousands of Canadian dollars) | December 31, 2023 | March 31, 2023 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash | $ 8,483 | $ 13,785 |
| Trade and other receivables (note 4) | 127,193 | 129,477 |
| Inventories (note 5) | 12,027 | 11,419 |
| Prepaids | 4,664 | 7,834 |
| Derivative financial assets (note 15) | - | 22 |
| 152,367 | 162,537 | |
| Non-current assets | ||
| Property and equipment (note 6) | 355,435 | 367,255 |
| Intangible assets (note 7) | 14,575 | 12,832 |
| Right-of-use assets (note 8) | 17,458 | 13,581 |
| Employee benefits asset (note 9) | 42,937 | 52,104 |
| 430,405 | 445,772 | |
| Total assets | $ 582,772 | $ 608,309 |
| Liabilities and Equity | ||
| Current liabilities | ||
| Trade and other payables | $ 139,629 | $ 141,890 |
| Holdbacks | 151 | 1,818 |
| Lease liabilities (note 11) | 2,158 | 1,777 |
| Deferred government funding related to operating expenses (note 12) | 16,691 | 19,253 |
| Derivative financial liabilities (note 15) | 494 | - |
| 159,123 | 164,738 | |
| Non-current liabilities | ||
| Lease liabilities (note 11) | 17,211 | 12,708 |
| Deferred government funding related to capital expenditures (note 12) | 369,165 | 379,180 |
| Employee benefits liability (note 9) | 18,338 | 16,544 |
| Derivative financial liabilities (note 15) | 145 | 10 |
| 404,859 | 408,442 | |
| Equity | ||
| Accumulated surplus | 18,790 | 35,129 |
| Total liabilities and equity | $ 582,772 | $ 608,309 |
Contingencies (note 10) and contractual arrangements (note 16)
The accompanying notes are an integral part of these condensed interim financial statements.
Condensed Interim Statement of Comprehensive Income (Loss)
(Unaudited)
| (In thousands of Canadian dollars) | Three months ended
December 31 |
Nine months ended
December 31 |
||
|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |
| Expenses | ||||
| Pre-Board Screening | $ 148,363 | $ 138,732 | $ 444,800 | $ 402,385 |
| Hold Baggage Screening | 42,032 | 37,763 | 123,141 | 112,401 |
| Non-Passenger Screening | 39,534 | 34,412 | 115,111 | 105,782 |
| Restricted Area Identity Card Program | 1,147 | 1,191 | 3,238 | 3,361 |
| Corporate services | 14,094 | 12,246 | 39,807 | 37,877 |
| Total expenses (note 13) | 245,170 | 224,344 | 726,097 | 661,806 |
| Other expenses (income) | ||||
| Net loss (gain) on fair value of derivative financial instruments | 663 | 970 | 651 | (503) |
| Finance costs | 175 | 67 | 339 | 206 |
| Loss on disposal of property and equipment | 62 | - | 65 | - |
| Foreign exchange gain | (60) | (447) | (80) | (462) |
| Write-off of property and equipment and intangible assets | - | - | 17 | 16 |
| Total other expenses (income) | 840 | 590 | 992 | (743) |
| Financial performance before revenue and government funding | 246,010 | 224,934 | 727,089 | 661,063 |
| Revenue | ||||
| Finance income | 770 | 731 | 2,253 | 1,471 |
| Miscellaneous income | 2 | 32 | 16 | 32 |
| Screening services - other | - | - | - | 70 |
| Total revenue | 772 | 763 | 2,269 | 1,573 |
| Government funding | ||||
| Parliamentary appropriations for operating expenses (note 12) | 232,364 | 211,569 | 686,087 | 624,048 |
| Amortization of deferred government funding related to capital expenditures (note 12) | 10,663 | 10,230 | 31,610 | 30,421 |
| Parliamentary appropriations for lease payments (note 14) | 401 | 859 | 1,462 | 2,878 |
| Total government funding | 243,428 | 222,658 | 719,159 | 657,347 |
| Financial performance | $ (1,810) | $ (1,513) | $ (5,661) | $ (2,143) |
| Other comprehensive (loss) income | ||||
| Item that will not be reclassified to financial performance | ||||
| Remeasurement of defined benefit plans (note 9) | (20,021) | 4,999 | (10,678) | 9,383 |
| Total comprehensive (loss) income | $ (21,831) | $ 3,486 | $ (16,339) | $ 7,240 |
The accompanying notes are an integral part of these condensed interim financial statements.
Condensed Interim Statement of Changes in Equity
(Unaudited)
For the three months ended December 31:
| (In thousands of Canadian dollars) | Accumulated surplus |
|---|---|
| Balance, September 30, 2023 | $ 40,621 |
| Financial performance | (1,810) |
| Item that will not be reclassified to financial performance | |
| Remeasurement of defined benefit plans (note 9) | (20,021) |
| Balance, December 31, 2023 | $ 18,790 |
| Balance, September 30, 2022 | $ 41,528 |
| Financial performance | (1,513) |
| Item that will not be reclassified to financial performance | |
| Remeasurement of defined benefit plans (note 9) | 4,999 |
| Balance, December 31, 2022 | $ 45,014 |
For the nine months ended December 31:
| (In thousands of Canadian dollars) | Accumulated surplus |
|---|---|
| Balance, March 31, 2023 | $ 35,129 |
| Financial performance | (5,661) |
| Item that will not be reclassified to financial performance | |
| Remeasurement of defined benefit plans (note 9) | (10,678) |
| Balance, December 31, 2023 | $ 18,790 |
| Balance, March 31, 2022 | $ 37,774 |
| Financial performance | (2,143) |
| Item that will not be reclassified to financial performance | |
| Remeasurement of defined benefit plans (note 9) | 9,383 |
| Balance, December 31, 2022 | $ 45,014 |
The accompanying notes are an integral part of these condensed interim financial statements.
Condensed Interim Statement of Cash Flows
(Unaudited)
| (In thousands of Canadian dollars) | Three months ended
December 31 |
Nine months ended
December 31 |
||
|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |
| Cash flows provided by (used in) | ||||
| Operating activities | ||||
| Financial performance | $ (1,810) | $ (1,513) | $ (5,661) | $ (2,143) |
| Items not involving cash | ||||
| Depreciation and amortization (note 13) | 11,266 | 11,120 | 33,730 | 33,162 |
| Change in fair value of financial instruments at fair value through profit and loss | 663 | 970 | 651 | (503) |
| Loss on disposal of property and equipment | 62 | - | 65 | - |
| Amortization of deferred government funding related to capital expenditures (note 12) | (10,663) | (10,230) | (31,610) | (30,421) |
| Change in net employee benefits asset/liability | (281) | (291) | 283 | (247) |
| Write-off of property and equipment and intangible assets | - | - | 17 | 16 |
| Other non-cash transactions | - | - | - | 163 |
| Net change in working capital balances (note 18) | (7,537) | (14,986) | (3,137) | 31,698 |
| (8,300) | (14,930) | (5,662) | 31,725 | |
| Investing activities | ||||
| Parliamentary appropriations received for capital funding (note 14) | 12,599 | 4,141 | 18,189 | 7,057 |
| Purchase of property and equipment | (5,006) | (811) | (13,291) | (5,763) |
| Purchase of intangible assets | (3,409) | (103) | (3,409) | (230) |
| 4,184 | 3,227 | 1,489 | 1,064 | |
| Financing activities | ||||
| Lease principal payments | (226) | (794) | (1,129) | (2,676) |
| (226) | (794) | (1,129) | (2,676) | |
| (Decrease) increase in cash | (4,342) | (12,497) | (5,302) | 30,113 |
| Cash, beginning of period | 12,825 | 50,191 | 13,785 | 7,581 |
| Cash, end of period | $ 8,483 | $ 37,694 | $ 8,483 | $ 37,694 |
Interest expense paid and interest income received approximate finance costs and finance income, respectively, in the Condensed Interim Statement of Comprehensive Income (Loss).
Supplementary cash flow information (note 18)
The accompanying notes are an integral part of these condensed interim financial statements.