- Pro-forma(1) liquidity(2) of approximately $3.5 billion, including approximately $1.7 billion of consolidated cash on hand, $738 million of available revolver capacity at Transportation as of June 30, 2020, and up to $1.0 billion of new liquidity from recently announced senior secured credit facility
- Free cash flow usage(3) and cash flow usage from operating activities better than expected at $1.0 billion, including an estimated $700-$900 million of Coronavirus impact
- Consolidated revenues were $2.7 billion, down 37% year-over-year due to pandemic related disruptions
- Consolidated adjusted EBIT(3) loss of $427 million reflecting charge at Transportation related to legacy projects and COVID-19 impact at both Aviation and Transportation; Reported EBIT of $26 million reflecting an accounting gain on the CRJ divestiture
- All 51 manufacturing sites and other operations successfully resumed, full-year production and delivery rates reset with current market conditions and customer requirements
- European Commission regulatory approval of Bombardier Transportation sale to Alstom obtained in July; Sale of aerostructures business to Spirit AeroSystems is expected to close this fall
All amounts in this press release are in U.S. dollars unless otherwise indicated. Amounts in tables are in millions except per share amounts, unless otherwise indicated.
Bombardier (TSX: BBD.B) announced today its financial results for the second quarter of 2020 and provided an update on the actions the company is taking to manage the business through the COVID-19 pandemic. Bombardier also provided an update on the status of the previously announced divestitures undertaken to reshape the company’s capital structure.
“Bombardier continues to take the right actions to manage the impact of the ongoing public health crisis while protecting the business for the long-term,” said Éric Martel, President and Chief Executive Officer, Bombardier Inc. “We begin the second half of the year with our global operations safely and successfully resumed and our production rates and workforce realigned to current market conditions and customer requirements. We’ve also improved our liquidity position with solid cash management, cost reduction actions and a new secured credit facility, providing additional flexibility as we work to address our balance sheet challenges and close the sale of Bombardier Transportation and our aerostructure business.”
On July 31, 2020, the European Commission provided conditional approval of the sale of Bombardier Transportation to Alstom, a significant milestone in obtaining the necessary regulatory approvals to complete the transaction. Bombardier and Alstom continue to work together to obtain the remaining approvals and complete the Works Councils consultations required prior to executing the definitive sale and purchase agreement. Bombardier expects the sale of its aerostructure business to Spirit AeroSystems Holdings, Inc. to close this fall.(1)
Bombardier began the third quarter with pro-forma liquidity(2) of approximately $3.5 billion. This includes approximately $1.7 billion of cash on hand, access to the undrawn amount of $738 million on Transportation’s revolving credit facility as of June 30, 2020, and the new $1.0 billion senior secured credit facility announced on July 22, 2020 and expected to close in the third quarter.(1)
Revenues of $2.7 billion during the second quarter reflect a lower level of production activity and deliveries in the quarter as operations at key Aviation and Transportation sites across North America and Europe were temporarily suspended for several weeks due to the global COVID-19 pandemic.
Adjusted EBITDA(3) loss and adjusted EBIT loss were $319 million and $427 million, respectively, for the quarter. These results reflect an additional charge of $435 million at Transportation, largely related to incremental engineering, certification and retrofit costs associated with a number of late-stage projects mainly in the U.K. and Germany. At Aviation, earnings were lower year-over-year primarily as a result of disruptions from the global COVID-19 pandemic. Reported EBIT was $26 million for the quarter and reflects the $496 million accounting gain on the disposal of the CRJ program to Mitsubishi Heavy Industries, Ltd. closed on June 1, 2020.
Free cash flow usage and cash usage from operating activities were $1.0 billion for the quarter. This was better than anticipated as the company resumed operations faster than expected and took additional actions to mitigate the full COVID-19 impact. These actions resulted in higher than expected customer deliveries both at Aviation and Transportation, lower inventory intake as production rates were realigned with market conditions and reduced discretionary spending across the business. The impact on free cash flows of the COVID-19 pandemic during the quarter is estimated at $700 to $900 million.
While we are seeing some early encouraging trends in our end markets, including new interest in private air travel and the enhanced safety it provides, the continuing uncertainty surrounding the duration of the pandemic and the shape of the recovery continues to preclude us from providing financial guidance at this time.(4) However, based on our backlogs and the near-term production and delivery outlook, we currently expect business activity to gradually recover in the second half of the year with improving cash usage in the third quarter and with the seasonal release of working capital in the fourth quarter.(1)
Bombardier also announced that Mrs. Beatrice Weder di Mauro expressed her intention to resign from the Company’s Board of Directors for personal reasons. The Board accepted Mrs. Weder di Mauro’s resignation and thanks her for her four years of dedicated service and the insight and wisdom she brought to Bombardier during her tenure.
SEGMENTED RESULTS AND HIGHLIGHTS
- Revenues reached $1.2 billion during the second quarter, reflecting a lower level of production activity and deliveries as the Corporation suspended business aircraft operations in Canada and key aerostructures operations in Mexico and Belfast due to the COVID-19 pandemic.
- Starting in the last weeks of April and through the month of May, operations gradually resumed with new safety measures in place, allowing Aviation to deliver 20 business aircraft during the quarter, including five Global 7500.
- Bombardier’s worldwide customer service operations have continued to operate largely uninterrupted throughout the pandemic. Service centres have shown resilience maintaining a high level of activity at maintenance facilities, partially offset by lower revenues related to the decrease in customer flight utilization.
- Adjusted EBITDA and adjusted EBIT margins of 4.5% and (1.6)%, respectively, reflect lower volumes during the quarter as result of disruptions from the global COVID-19 pandemic, combined with low contribution of early Global 7500 units. Reported EBIT of $442 million during the quarter reflects the
$496 million accounting gain on the disposal of the CRJ Series aircraft program to Mitsubishi Heavy Industries, Ltd.
- On June 5, 2020, Aviation announced the reduction of its workforce by approximately 2,500 employees to align production with current market conditions, forecasted to be down approximately 30% year-over-year.(1) The reduction resulted in a special charge of $41 million in the second quarter.
- A significant share of the Corporation’s free cash flow usage during the first two quarters of 2020 is related to the impact of the COVID-19 pandemic on Aviation, mainly driven by a shortfall in deliveries and lower than anticipated advances associated with the low order intake environment.
- As operations recover in the second half of the year, aircraft deliveries are set to accelerate relative to the first half of the year, towards a seasonal peak in the fourth quarter supported by Aviation’s $12.9 billion backlog.(1)
- Revenues for the quarter of $1.5 billion reflect a lower level of production activity as operations at key sites across Europe and the Americas were temporarily suspended due to the global COVID-19 pandemic and the impact of revised estimates on a number of late-stage projects mainly in the U.K. and Germany.
- Starting in the last weeks of April and through the month of May, operations gradually resumed with new safety measures in place. With operations returning to normal, production is expected to accelerate in the second half, peaking seasonally in the fourth quarter generally in line with 2019 levels. The engineering and production delays tied to the COVID-19 pandemic is expected to be recovered in 2021 and beyond, supporting future free cash flow generation.(1)
- Adjusted EBIT loss for the second quarter of $383 million was significantly below expectations, reflecting an additional charge of $435 million at Transportation, largely related to incremental engineering, certification and retrofit costs associated with a number of late-stage projects mainly in the U.K. and Germany. Over two thirds of this charge is expected to impact 2020 free cash flows as Transportation reaches key engineering and entry-into-service milestones. Reported EBIT loss for the quarter was $377 million.
- During the quarter, a new, dedicated project team was mandated to conduct deep dives into challenging legacy projects, evaluating both project management processes and talent resources with a goal to fully understand the causes of excessive costs, and take the right corrective actions.
- The outlook for transportation remains positive and is supported by its $33.7 billion backlog and strong industry fundamentals.(1)
- Order intake of $1.6 billion for the quarter reflects project wins across geographies, with notable contract awards with SNCF’s repeat order in France and India’s flagship Delhi–Meerut regional rapid transit system project in Asia.
With nearly 60,000 employees across two business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.
Headquartered in Montréal, Canada, Bombardier has production and engineering sites in over 25 countries across the segments of Aviation and Transportation. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2019, Bombardier posted revenues of $15.8 billion. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
Bombardier and Global 7500 are trademarks of Bombardier Inc. or its subsidiaries.
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The Management’s Discussion and Analysis and the Interim Consolidated Financial Statements are available at ir.bombardier.com.
bps: basis points
nmf: information not meaningful
- See the forward-looking statements disclaimer at the end of this press release as well as the forward-looking statements section and the assumptions following same in Overview in the MD&A of the Corporation’s financial report for the three- and six-month periods ended June 30, 2020, as well as the Strategic Priorities and Guidance and forward-looking statements sections in the applicable reportable segment in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2019, for details regarding the assumptions on which the forward-looking statements are based.
- Non-GAAP financial measure. Pro-forma liquidity is defined as cash and cash equivalents of $1,724 million as at June 30, 2020 plus the undrawn amount under our revolving credit facility of $738 million as of June 30, 2020 plus the new senior secured credit facility of $1.0 billion.
- Non-GAAP financial measures. Refer to the Non-GAAP financial measures and Liquidity and capital resources section for definitions of these metrics and the Analysis of results section hereafter for reconciliations to the most comparable IFRS measures.
- See the Impacts of COVID-19 Pandemic section in Overview in the MD&A of the Corporation’s financial report for three- and six-month periods ended June 30, 2020 for details regarding the Corporation’s response to the evolving COVID-19 pandemic and its impacts on employees, operations, the global economy and the demand for the Corporation’s products and services. We expect the ultimate significance of the impact on our financial and operational results will be dictated by the length of time that such circumstances continue, which will depend on the currently unknowable extent and duration of the COVID-19 pandemic and any governmental and public actions taken in response thereto. COVID-19 also makes it more challenging for management to estimate future performance of our businesses, particularly over the near term.
- Includes cash and cash equivalents of the aerostructures businesses presented under Assets held for sale otaling $50 million as of June 30, 2020 and $51 million as of December 31, 2019, respectively. Refer to Reshaping the portfolio section in Aviation section in the MD&A of the Corporation’s financial report for the three- and six-month periods ended June 30, 2020 and Note 17 – Assets held for sale in the Consolidated financial statements for more details on the transaction and the accounting treatments.
- Defined as cash and cash equivalents plus the undrawn amount under our revolving credit facility.
- Included 20 firm orders for CRJ900 as of December 31, 2019. The backlog for the CRJ Series aircraft program amounting to $0.4 billion was removed as a result of the closing of the sale of the CRJ Series aircraft program to MHI on June 1, 2020.
- Comparative figures are restated as a result of the formation of Bombardier Aviation, our new reportable segment announced during the second quarter of 2019.
- On May 31, 2019, the Corporation completed the sale of the Q Series aircraft program assets, including aftermarket operations and assets, to De Havilland Aircraft of Canada Limited (formerly Longview Aircraft Company of Canada Limited). On June 1, 2020, the Corporation completed the sale of the regional jet program to Mitsubishi Heavy Industries, Ltd (MHI).
- Ratio of new orders over revenues.
- Including share of income from joint ventures and associates amounting to $51 million for the three-month period ended June 30, 2020 ($32 million for the three-month period ended June 30, 2019).
CAUTION REGARDING NON-GAAP FINANCIAL MEASURES
This press release is based on reported earnings in accordance with IFRS and on the following non-GAAP financial measures:
|Non-GAAP financial measures|
|Adjusted EBIT||EBIT excluding special items. Special items comprise items which do not reflect the Corporation’s core performance or where their separate presentation will assist users of the consolidated financial statements in understanding the Corporation’s results for the period. Such items include, among others, the impact of restructuring charges, impact of business disposals and significant impairment charges and reversals.|
|Adjusted EBITDA||Adjusted EBIT plus amortization and impairment charges on PP&E and intangible assets.|
|Adjusted net income (loss)||Net income (loss) excluding special items, accretion on net retirement benefit obligations, certain net gains and losses arising from changes in measurement of provisions and of financial instruments carried at FVTP&L and the related tax impacts of these items.|
|Adjusted EPS||EPS calculated based on adjusted net income attributable to equity holders of Bombardier Inc., using the treasury stock method, giving effect to the exercise of all dilutive elements.|
|Free cash flow (usage)||Cash flows from operating activities less net additions to PP&E and intangible assets.|
Non-GAAP financial measures are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS. The exclusion of certain items from non-GAAP performance measures does not imply that these items are necessarily non-recurring. Other entities in our industry may define the above measures differently than we do. In those cases, it may be difficult to compare the performance of those entities to ours based on these similarly-named non-GAAP measures.
Adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS
Management uses adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS for purposes of evaluating underlying business performance. Management believes these non-GAAP earnings measures in addition to IFRS measures provide users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Adjusted EBIT, adjusted EBITDA, adjusted net income (loss) and adjusted EPS exclude items that do not reflect our core performance or where their exclusion will assist users in understanding our results for the period. For these reasons, a significant number of users of the MD&A analyze our results based on these financial measures. Management believes these measures help users of MD&A to better analyze results, enabling better comparability of our results from one period to another and with peers.
Free cash flow (usage)
Free cash flow is defined as cash flows from operating activities less net additions to PP&E and intangible assets. Management believes that this non-GAAP cash flow measure provides investors with an important perspective on the Corporation’s generation of cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long-term value creation. This non-GAAP cash flow measure does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity generation.
Reconciliations of non-GAAP financial measures to the most comparable IFRS financial measures are provided in the tables hereafter, except for the following reconciliations:
- adjusted EBIT to EBIT – see the Results of operations tables in the reporting segments and Consolidated results of operations section in the MD&A of the Corporation’s financial report for the three-and six-month periods ended June 30, 2020; and
- free cash flow usage to cash flows from operating activities – see the Free cash flow usage table in the Liquidity and capital resources section in the MD&A of the Corporation’s financial report for the three-and six-month periods ended June 30, 2020.
This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, anticipations and outlook or guidance in respect of various financial and global metrics and sources of contribution thereto, targets, goals, priorities, market and strategies, financial position, market position, capabilities, competitive strengths, credit ratings, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected demand for products and services; growth strategy; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; competitive position; expectations regarding challenging Transportation projects and the release of working capital therefrom; expectations regarding revenue and backlog mix; the expected impact of the legislative and regulatory environment and legal proceedings; strength of capital profile and balance sheet, creditworthiness, available liquidities and capital resources and expected financial requirements; productivity enhancements, operational efficiencies and restructuring initiatives; expectations and objectives regarding debt repayments and refinancing of bank facilities and maturities; expectations regarding availability of government assistance programs, compliance with restrictive debt covenants; expectations regarding the declaration and payment of dividends on our preferred shares; intentions and objectives for our programs, assets and operations; and the impact of the COVID-19 pandemic on the foregoing and the effectiveness of plans and measures we have implemented in response thereto. As it relates to previously announced pending transactions, including the divestiture of our operations in Belfast and Morocco and the sale of the Transportation division to Alstom (collectively, the “Pending Transactions”), this press release also contains forward-looking statements with respect to the expected completion and timing thereof in accordance with their terms and conditions; the respective anticipated proceeds and use thereof, as well as the anticipated benefits of such transactions and their expected impact on our outlook, guidance and targets, operations, infrastructure, opportunities, financial condition, business plan and overall strategy.
Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of our current objectives, strategic priorities, expectations, outlook and plans, and in obtaining a better understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions are set out throughout this press release (particularly, in the assumptions below the Forward-looking statements in the MD&A of the Corporation’s financial report for the three-and six-month periods ended June 30, 2020). For additional information, including with respect to other assumptions underlying the forward-looking statements made in this press release, refer to the Strategic Priorities and Guidance and forward-looking statements sections in the applicable reportable segment in the MD&A of our financial report for the fiscal year ended December 31, 2019. Given the impact of the changing circumstances surrounding the COVID-19 pandemic and the related response from the Corporation, governments (federal, provincial and municipal), regulatory authorities, businesses and customers, there is inherently more uncertainty associated with the Corporation’s assumptions as compared to prior periods.
Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, risks associated with general economic conditions, risks associated with our business environment (such as risks associated with “Brexit”, the financial condition of the airline industry, business aircraft customers, and the rail industry; trade policy; increased competition; political instability and force majeure events or global climate change), operational risks (such as risks related to developing new products and services; development of new business and awarding of new contracts; book-to-bill ratio and order backlog; the certification and homologation of products and services; fixed-price and fixed-term commitments and production and project execution, including challenges associated with certain Transportation projects; pressures on cash flows and capital expenditures based on project-cycle fluctuations and seasonality; execution of our strategy, transformation plan, productivity enhancements, operational efficiencies and restructuring initiatives; doing business with partners; inadequacy of cash planning and management and project funding; product performance warranty and casualty claim losses; regulatory and legal proceedings; environmental, health and safety risks; dependence on certain customers, contracts and suppliers; supply chain risks; human resources; reliance on information systems; reliance on and protection of intellectual property rights; reputation risks; risk management; tax matters; and adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; retirement benefit plan risk; exposure to credit risk; substantial debt and interest payment requirements; restrictive debt covenants and minimum cash levels; financing support for the benefit of certain customers; and reliance on government support), market risks (such as foreign currency fluctuations; changing interest rates; decreases in residual values; increases in commodity prices; and inflation rate fluctuations). For more details, see the Risks and uncertainties section in Other in the MD&A of our financial report for the fiscal year ended December 31, 2019. Any one or more of the foregoing factors may be exacerbated by the growing COVID-19 outbreak and may have a significantly more severe impact on the Corporation’s business, results of operations and financial condition than in the absence of such outbreak. As a result of the current COVID-19 pandemic, additional factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: risks related to the impact and effects of the COVID-19 pandemic on economic conditions and financial markets and the resulting impact on our business, operations, capital resources, liquidity, financial condition, margins, prospects and results; uncertainty regarding the magnitude and length of economic disruption as a result of the COVID-19 outbreak and the resulting effects on the demand environment for our products and services; emergency measures and restrictions imposed by public health authorities or governments, fiscal and monetary policy responses by governments and financial institutions; disruptions to global supply chain, customers, workforce, counterparties and third-party service providers; further disruptions to operations, production, project execution and deliveries; technology, privacy, cyber security and reputational risks; and other unforeseen adverse events.
With respect to the Pending Transactions, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to: the failure to satisfy closing conditions, including regulatory approvals, or delay in completing such transactions and, as regards the sale of the Transportation division, the failure to enter into definitive documentation or the failure to receive Alstom shareholder approval in respect of the required capital increase or to complete relevant works council consultations, or the occurrence of a material adverse change; alternate sources of funding to replace the anticipated proceeds from the Pending Transactions may not be available when needed, or on desirable terms; the occurrence of an event which would allow the parties to terminate their obligations or agreements in principle; changes in the terms of the transactions; the failure by the parties to fulfill their obligations and agreements in principle; risks associated with the loss and replacement of key management and personnel; and the impact of the transactions on our relationships with third parties, including potentially resulting in the loss of clients, employees, suppliers, business partners or other benefits and goodwill of the business.
Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. For more details, see the Risks and uncertainties sections in Other in the MD&A of our financial report for the fiscal year ended December 31, 2019. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in our forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
Forward-looking statements in this press release are based on and subject to the following material assumptions:
- general economic conditions, which include the impact on the economy and financial markets of the COVID-19 pandemic and other health risks;
- the ability of our supply base and third-party service providers to gradually resume support to product development and planned production rates on commercially acceptable terms in a timely manner;
- the effectiveness of our mitigation measures taken in response to the COVID-19 pandemic to minimize the resulting downward pressure on cash flow and manage liquidity;
- our ability to execute and deliver additional effective mitigation initiatives in response to future developments;
- the accuracy of our estimates and judgments regarding the duration, scope and impacts of the ongoing COVID-19 pandemic on our business, operations, liquidity, financial condition, margins, cash flows, prospects and results in future periods;
- the ability to have sufficient liquidity to execute the strategic plan, to meet financial covenants and to pay down long-term debt or refinance bank facilities and maturities;
- the expected impact of emergency measures implemented by governments;
- the effectiveness of government support programs, including wage subsidies, tax payment deferrals, pension contribution holidays and other measures addressing liquidity needs of corporations during the crisis and our ability to qualify for same;
- the effectiveness of COVID-19 containment efforts and gradual recovery of global environment and global economic conditions beginning in the second quarter of 2020;
- our ability to orderly restart production and progressively resume work on suspended projects as soon as the travel restrictions to applicable locations have been lifted and temporary foreigner visa suspensions are lifted;
- the time frames for the ramp-down of current COVID-19 social distancing guidelines and other mitigation-related requirements;
- retention of key employees and management;
- our ability to successfully defend ourselves against litigation matters arising in the context of the COVID-19 pandemic;
- our ability to access the capital markets as needed; and
- the availability of working capital financing initiatives and ongoing provision of credit by financial institutions to subject parties.
- closing of the sale of Belfast and Morocco aerostructures businesses and Dallas MRO in coming months in accordance with negotiated terms;
- alignment of adjusted production rates to reduced market demand and significant slowdown in order intake; and
- our ability to make required production rate adjustments as business aircraft operations gradually resume.
- closing of the sale of the Transportation division to Alstom in the first half of 2021 in accordance with negotiated terms; and
- our ability to reestablish new contract schedules with customers and suppliers to optimize cash generation as production gradually resumes.
The assumptions underlying the forward-looking statements made in this press release in relation to each of the Pending Transactions specifically include the following material assumptions: the satisfaction of all closing conditions (including regulatory approvals, and, as regards to the sale of the Transportation division, the execution of definitive documentation, Alstom shareholder approval in respect of the required capital increase, completion of works council consultations and absence of a material adverse change) and receipt of expected proceeds within the anticipated timeframe; and fulfillment by the parties of their obligations and agreements in principle.
For additional information, including with respect to other assumptions underlying the forward looking statements made in this press release, refer to the Strategic Priorities and Guidance and forward-looking statements sections in applicable reportable segment in the MD&A of our financial report for the fiscal year ended December 31, 2019. Given the impact of the changing circumstances surrounding the COVID-19 pandemic and the related response from the Corporation, governments (federal, provincial and municipal), regulatory authorities, businesses and customers, there is inherently more uncertainty associated with the Corporation’s assumptions as compared to prior periods.
For a discussion of the material risk factors associated with the forward-looking information, refer to the Risks and uncertainties section in in the MD&A of the Corporation’s financial report for the three-and six-month periods ended June 30, 2020.
- Also refer to the forward-looking statements section for the forward-looking statements disclaimer.