September 30, 2025
Condensed Interim Statement of Financial Position
(Unaudited)
| (In thousands of Canadian dollars) | September 30, 2025 | March 31, 2025 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash | $ 31,334 | $ 102,215 |
| Trade and other receivables (note 4) | 145,892 | 80,371 |
| Inventories | 16,454 | 18,776 |
| Prepaids | 6,805 | 8,603 |
| Derivative financial assets | 260 | 855 |
| 200,745 | 210,820 | |
| Non-current assets | ||
| Property and equipment (note 5) | 389,383 | 382,154 |
| Intangible assets (note 6) | 11,697 | 12,879 |
| Right-of-use assets (note 7) | 15,057 | 16,664 |
| Employee benefits asset (note 8) | 90,178 | 64,809 |
| Derivative financial assets | - | 59 |
| 506,315 | 476,565 | |
| Total assets | $ 707,060 | $ 687,385 |
| Liabilities and Equity | ||
| Current liabilities | ||
| Trade and other payables | $ 181,329 | $ 182,949 |
| Holdbacks | 23 | 35 |
| Lease liabilities (note 7) | 3,404 | 3,263 |
| Deferred government funding related to operating expenses (note 10) | 23,259 | 27,379 |
| Derivative financial liabilities | 254 | 58 |
| 208,269 | 213,684 | |
| Non-current liabilities | ||
| Lease liabilities (note 7) | 14,048 | 15,738 |
| Deferred government funding related to capital expenditures (note 10) | 395,497 | 389,690 |
| Employee benefits liability (note 8) | 22,313 | 22,445 |
| Deferred revenue - screening services - other | 4,571 | 4,571 |
| 436,429 | 432,444 | |
| Equity | ||
| Accumulated surplus | 62,362 | 41,257 |
| Total liabilities and equity | $ 707,060 | $ 687,385 |
Contingencies (note 9) and contractual arrangements (note 13).
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 September 30 |
Six Months Ended September 30 |
||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Expenses | ||||
| Pre-Board Screening | $ 178,883 | $ 169,626 | $ 353,942 | $ 326,848 |
| Hold Baggage Screening | 46,168 | 41,922 | 92,418 | 82,905 |
| Non-Passenger Screening | 41,424 | 36,560 | 82,527 | 73,415 |
| Restricted Area Identity Card Program | 990 | 1,390 | 2,058 | 2,450 |
| Corporate services | 13,988 | 14,012 | 29,020 | 27,531 |
| Total expenses (note 11) | 281,453 | 263,510 | 559,965 | 513,149 |
| Other (income) expenses | ||||
| Finance costs | 168 | 172 | 337 | 349 |
| Foreign exchange loss (gain) | 92 | (53) | (129) | (62) |
| Write-off of property and equipment and intangible assets |
48 | - | 48 | - |
| Gain on disposal of property and equipment | (19) | - | (19) | - |
| Net (gain) loss on fair value of derivative financial instruments |
(631) | 115 | 850 | (32) |
| Total other (income) expenses | (342) | 234 | 1,087 | 255 |
| Financial performance before revenue and government funding |
281,111 | 263,744 | 561,052 | 513,404 |
| Revenue | ||||
| Finance income | 475 | 957 | 1,210 | 1,859 |
| Miscellaneous income | 25 | 25 | 43 | 27 |
| Total revenue | 500 | 982 | 1,253 | 1,886 |
| Government funding | ||||
| Parliamentary appropriations for operating expenses | 264,956 | 248,085 | 524,814 | 482,730 |
| Amortization of deferred government funding related to capital expenditures |
13,527 | 11,728 | 26,533 | 22,769 |
| Parliamentary appropriations for lease payments | 950 | 801 | 1,928 | 1,578 |
| Total government funding (note 10) | 279,433 | 260,614 | 553,275 | 507,077 |
| Financial performance | $ (1,178) | $ (2,148) | $ (6,524) | $ (4,441) |
| Other comprehensive income (loss) | ||||
| Item that will not be reclassified to financial performance | ||||
| Remeasurement of defined benefit plans (note 8) | 17,736 | (219) | 27,629 | 3,911 |
| Total comprehensive income (loss) | $ 16,558 | $ (2,367) | $ 21,105 | $ (530) |
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 September 30:
| (In thousands of Canadian dollars) | Accumulated surplus |
|---|---|
| Balance, June 30, 2025 | $ 45,804 |
| Financial performance | (1,178) |
| Item that will not be reclassified to financial performance | |
| Remeasurement of defined benefit plans (note 8) | 17,736 |
| Balance, September 30, 2025 | $ 62,362 |
| Balance, June 30, 2024 | $ 38,738 |
| Financial performance | (2,148) |
| Item that will not be reclassified to financial performance | |
| Remeasurement of defined benefit plans (note 8) | (219) |
| Balance, September 30, 2024 | $ 36,371 |
For the six months ended September 30:
| (In thousands of Canadian dollars) | Accumulated surplus |
|---|---|
| Balance, March 31, 2025 | $ 41,257 |
| Financial performance | (6,524) |
| Item that will not be reclassified to financial performance | |
| Remeasurement of defined benefit plans (note 8) | 27,629 |
| Balance, September 30, 2025 | $ 62,362 |
| Balance, March 31, 2024 | $ 36,901 |
| Financial performance | (4,441) |
| Item that will not be reclassified to financial performance | |
| Remeasurement of defined benefit plans (note 8) | 3,911 |
| Balance, September 30, 2024 | $ 36,371 |
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 September 30 |
Six Months Ended September 30 |
||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Cash flows provided by (used in) | ||||
| Operating activities | ||||
| Financial performance | $ (1,178) | $ (2,148) | $ (6,524) | $ (4,441) |
| Items not involving cash | ||||
| Depreciation and amortization (note 11) | 14,289 | 12,434 | 28,159 | 24,165 |
| Change in net employee benefits asset/liability | 1,020 | 1,011 | 2,128 | 1,013 |
| Other non-cash transactions | 63 | - | 63 | - |
| Write-off of property and equipment and intangible assets | 48 | - | 48 | - |
| Gain on disposal of property and equipment | (19) | - | (19) | - |
| Change in fair value of financial instruments at fair value through profit and loss |
(631) | 115 | 850 | (32) |
| Amortization of deferred government funding related to capital expenditures (note 10) |
(13,527) | (11,728) | (26,533) | (22,769) |
| Net change in working capital balances (note 15) | 8,853 | 11,242 | (70,698) | 17,755 |
| 8,918 | 10,926 | (72,526) | 15,691 | |
| Investing activities | ||||
| Parliamentary appropriations received for capital funding (note 10) |
16,688 | 24,055 | 31,710 | 28,278 |
| Purchase of property and equipment | (15,223) | (7,228) | (28,379) | (11,427) |
| Purchase of intangible assets | - | (579) | (74) | (660) |
| 1,465 | 16,248 | 3,257 | 16,191 | |
| Financing activities | ||||
| Lease principal payments | (789) | (630) | (1,612) | (1,234) |
| (789) | (630) | (1,612) | (1,234) | |
| Increase (decrease) in cash | 9,594 | 26,544 | (70,881) | 30,648 |
| Cash, beginning of period | 21,740 | 14,059 | 102,215 | 9,955 |
| Cash, end of period | $ 31,334 | $ 40,603 | $ 31,334 | $ 40,603 |
The accompanying notes are an integral part of these condensed interim financial statements.