by Ross Marowits, The Canadian Press Posted Sep 11, 2012 11:39 am MDT Discovery Air shares fall as Q2 profit cut in half due to acquisitions AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email Discovery Air Inc. shares plummeted in Tuesday trading after the specialty aviation company’s growth initiatives weighed on its bottom line despite higher revenues.On the Toronto Stock Exchange, its shares fell nearly 11 per cent, losing 35 cents at $2.85 in morning trading.The Yellowknife-based company reported Tuesday that its second-quarter profit fell to $8.9 million or 38 cents per share on a diluted basis, down from $17.98 million or 96 cents per diluted share in the year-earlier period.Excluding a $300,000 gain from the May acquisition of Northern Air Support Ltd. (NAS), it earned $8.6 million, compared to $13.7 million in the same quarter last year.Discovery (TSX:DA.A), which primarily provides air transportation services to remote areas, said its profit fell due to the significant investments it has made to grow.Second-quarter revenue rose to $74.2 million from $70.6 million a year earlier. The increase was largely due to higher demand for services provided by its aviation segment, which posted a seven-per-cent increase in revenues to $68 million.Revenues and flight hours increased from resource-based customers, incremental revenue contributed by the acquisition of Helicopters.cl SpA and NAS, along with higher forest fire and medevac services.Helicopter charter company NAS was acquired in May for $9.4 million. It serves the western Canadian mining, forestry and oil and gas seismic sectors with bases in Kelowna, B.C., and Rocky Mountain House, Alta.Other revenues fell to $6.2 million from $7.4 million a year ago due to lower exploration camp and logistics activity as well as lower revenues from the maintenance, repair and overhaul activities.Despite the five-per-cent boost in overall revenues, the increase was short of Discovery’s expectations. It experienced lower than planned revenues from the airborne training services, an unexpected decline in mining exploration revenues in northern Canada, delays in obtaining regulatory approvals for new aircraft and longer lead times to generate customer orders for the new service offerings.“Our earnings declined despite strong revenue growth due largely to significant investments we made in a short period of time to position Discovery Air to capture long-term profitable growth opportunities,” stated Brian Semkowski, interim president and chief executive.Discovery acquired the two helicopter operations, put three commercial jets into service for a new charter operation and acquired seven aircraft so far this year. Its subsidiary Discovery Air Technical also acquired a portion of the airframe business from insolvent Aveos Fleet Performance.“The acquisition, certification and operating costs associated with these recent additions in a relatively short span of time caused our expenses to grow at a faster rate than our revenues,” he stated.“We are committed to generating strong returns from our investments and expect our earnings to improve as our technical services business matures and we increase the utilization of our newly acquired aircraft.”Semkowski was appointed interim president and CEO in June, replacing David Jennings who had held the post since 2008. Jennings remains a director of the company.The June 20 announcement came less than a week after Discovery reported that it had returned to the black in the first quarter of fiscal 2013, which also recorded a 42 per cent increase in revenue — rising to $52.9 million from $37.2 million.Discovery, with some 850 employees and more than 150 helicopters and fixed-wing aircraft, provides airborne training to the Canadian military as well as airborne fire services, air charter services and logistics support along with a range of maintenance, engineering and certification services.
The teenager had threatened to kill the mother-of-two in social media posts and had told friends he also planned to murder his head of year and another teacher and her unborn baby.This month, an investigation into her death by the Leeds Safeguarding Children Board (LCSB) was criticised by Mr Maguire – who has called for a serious case review into his wife’s death.He told the Victoria Derbyshire programme the “disappointing” review left no-one better informed about what had happened and was a “massively missed opportunity to learn lessons”. Mr Maguire said: “This shouldn’t be about trying to make everything seem okay and hoping it doesn’t happen again.“They’re going through all this time and expense to find partial answers to these questions. If we really want to learn and protect teachers and pupils we have to know every detail of this case.“For a teacher to be murdered by a pupil in a classroom in the UK means it should be treated in the most serious of manners. We have a duty as a nation to find out as much as we possibly can because its only then we know we have learned the lessonsMr Maguire Mrs Maguire was killed in the classroom at the school where she had taught for more than 40 yearsCredit: PA Lives are at risk in British schools, said the husband of murdered teacher Ann Maguire as he criticised a review into her death.Don Maguire told the BBC he felt the “bare minimum” had been done in producing a report that found her death could not have been predicted or pre-empted.And he said until all the circumstances which led to Mrs Maguire’s death are known, it will not be possible to protect teachers and pupils.Mrs Maguire, 61, was stabbed during a Spanish lesson at Corpus Christi Catholic College, in Leeds, by student Will Cornick. “These kinds of learning lessons reviews are always done when terrible events happen, and the departments always say it could have been prevented but not predicted. It feels like they’ve done the bare minimum.”The report by independent reviewer Nick Page, who interviewed the teenager, concluded: “No individual other than Will Cornick should in any way feel responsible for Ann’s murder.”Mr Page’s review said there were no warning signs known to staff or other agencies before Cornick went to school on April 28 2014 armed with a craft knife and a kitchen knife and attacked his teacher.He suggested there were a “number of suggested refinements to practice” at the school, but added: “This is in no way to suggest that if implemented previously, they would have prevented Ann’s murder. Cornick was jailed for life with a minimum of 20 years after pleading guilty to the murderCredit: PA “What is clear to me, as the reviewer, is that no one could have predicted or pre-empted Will Cornick’s attack on Ann Maguire.”But Mr Maguire said: “This was a disaffected youth with an agenda, it was premeditated and planned. We have a duty as a nation to find out as much as we possibly can because its only then we know we have learned the lessons.”I think it needs to be looked at from a national governmental point of view and there should have been a full inquiry into it ordered in the first place.”Mark Peel, independent chairman of the LCSB, which commissioned the review, said he fully accepted the findings when the report was published.Cornick was jailed for life with a minimum of 20 years after pleading guilty to the murder, which was the only time a teacher has been killed by a pupil in a UK school.Mr Maguire added: “We need someone to be brave and say, ‘Let’s look at this properly and not leave anything unchecked’.”It shouldn’t have happened and we need to guarantee it doesn’t happen again.”A full inquest into Mrs Maguire’s death is expected to take place in 2017. Want the best of The Telegraph direct to your email and WhatsApp? Sign up to our free twice-daily Front Page newsletter and new audio briefings.