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12TuesdayJune182013AboriginalDayTheTownofFortSmithwouldliketoacknowledgeallmembersoftheAboriginalcommunitywhomakeourTownwhole.InRecognitionofNationalAboriginalDayAllofthestaffatKaeserswishyouahappyAboriginalDayJune212013IndustryAviationByJACKDANYLCHUKBadweatherreducedde-mandfromthemilitaryaslumpinminingexplorationandincreasedcompetitionintheNorthhavecombinedtoproducedismalrstquar-terresultsforDiscoveryAir.TheYellowknife-headquar-teredspecialtyaviationcom-panyrangupan8.8-millionlosscomparedtoa1.3-mil-lionprotfortherstquarterof2012aresultJacobShavitDiscoverysnewpresidentandCEOcallsdisappointing.ShavitsaidinaconferencecallwithinvestmentanalyststhatheexpectsrevenuefromDiscoveryAirDefenceSer-vicestoreboundincomingmonthsbuttherehasbeenameaningfuldeclineinre-source-basedactivitywhichcouldcontinuetoaffectanumberofourbusinesses.RevenuewasdownfromGreatSlaveHelicoptersDiscoveryMiningServicesandAirTindiwhichfacesincreasedcompetitionfromcompanieswithxed-wingaircraftyingintheNorth.Morethanathirdofthecompanyscustomersareintheresourcessectorsowhenactivityisdownweareaf-fectedShavitsaid.DiscoveryiscuttingcostsShavitsaidthroughacrosstheboardhiringandsalaryfreezesandisexaminingair-craftusebutwearealsoenteringourbusiesttimeoftheyearsomustbestaffedandready.OverallShavitsaidweneedtoreducethevolatilityofourbusiness.WemustincreaseoperationsoutsidetheharshweatherconditionsoftheNorthandreducedependenceontheresourcesector.Discoveryiscarrying163millionindebtasignicantamountwithacomplicatedstructureShavitsaid.Weareveryawareofconstraintsthisplacesonourbusinessandarecommittedtond-ingwaystosimplifyourdebtstructure.DiscoveryAirmovedtoYellowknifeasaconditionofobtaininga34-millionloanfromtheNorthwestTerritoriesimmigrantinvestmentfund.Theloanwasrepaidlastyearandthecompanyspresenceinthecityhasdiminished.TherearesignificantopportunitiesintheglobalCompetitionandbadweatherhammerDiscoveryAircombatservicesmarket.Intimesofglobaldefencebudgetcutsoutsourcingdefenceserviceisanopti-malsolution.Wearewellpositiontocaptureagrow-ingshareofthatmarkethesaid.PhotoJackDanylchukAirTindiownedbyDiscoveryAirhasaoatbaseinYellowknifesOldTownneighbourhood.ExecutiveCompensation2013JacobShavitPresidentCEO..............................633124BrianSemkowskiBoardChair...........................297671DavidJenningsConsultant................................634575WilliamMartinChiefFinancialOfcer...........240066AndrienMinVPCorpAccounting..................270320AdamBembridgeGroupPres.NorthernServices...............................................423375PaulBouchardPres.AirDefenceServices.......453390DidierToussaintGroupPres.Gov.Services........453013DiscoveryAirstockperformanceversustheSPTSXCompositeIndexsince2008.ImageMay2013ShareholdersReport