Mississauga, ON, March 1, 2021 – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the fourth quarter and year ended December 31, 2020.
Total Revenues for the quarter were $187.1 million compared to fourth quarter 2019 Revenues of $139.7 million. Gross Margin for the quarter was $69.3 million compared to fourth quarter 2019 Gross Margin of $41.6 million. Adjusted EBITDA and Adjusted EBITDAR for the quarter were $81.9 million compared to the fourth quarter 2019 Adjusted EBITDA and Adjusted EBITDAR of $47.2 million.
2020 was a transformational year and the key highlights include:
- Total Revenues for the year were $668.5 million compared $486.6 million in 2019.
- Highly diversified revenue growth with each line of business posting record gains vs. prior year:
- Domestic overnight accounted for 45% of revenues;
- ACMI accounting for 20% of revenues;
- All-in-Charters accounting for 18% of revenues
- Gross Margin for the year was $250.5 million compared to $119.2 million in 2019.
- Adjusted EBITDA and Adjusted EBITDAR for the year were $291.4 million compared to $156.0 million and $156.8 million respectively for 2019.
- Adjusted Free cash flow for the year $196.8 million.
- Available liquidity of $525 million from Cargojet’s committed 5-year revolving $600 million credit facility. 100% of the facility is available at March 1, 2021.
- Reduction in net-debt of $63 million.
- Overall leverage at 2.0X Adjusted EBITDAR.
- Fleet size increased to 28 all-cargo aircrafts.
- Operated a record 52,225 flight block hours in 2020 vs.35,704 in 2019 an increase of 46.3%.
“2020 reminded us of the old saying that adversity builds character. From the start of the pandemic, to our business being declared an essential service, to building unprecedented safety protocols to keep our employees safe while keeping the nation’s supply chains moving, Cargojet demonstrated unparalleled resilience.” said Dr. Ajay Virmani, President & CEO. “Each one of our team members understood that with major parts of our economy under lock-down, Cargojet must rise to the challenge of meeting unprecedented demand in e-commerce volumes that our customers were expecting us to fly.” Commented Dr. Virmani.
“We were truly humbled by the trust and faith shown by our customers in Cargojet especially during one of the most challenging times in our history” further noted Dr.Virmani.
“As the economy slowly re-opens, we expect B2B e-commerce to return back to pre-pandemic levels. At the same time, with a strong customer base and a healthy balance sheet, we are now embarking on the next phase of our growth by capturing international cargo opportunities. The disruption caused by vastly reduced passenger airline belly capacity has created new opportunities in international cargo that we are well positioned to go after.” concluded Dr. Virmani.
Cargojet is Canada’s leading provider of time sensitive premium air cargo services to all major cities across North America, providing Dedicated, ACMI and International Charter services and carries over 25,000,000 pounds of cargo weekly. Cargojet operates its network with its own fleet of 28 Cargo aircraft. For further information, please contact
Chief Corporate Officer
Tel: (905) 501 7373
“Adjusted EBITDA” and “Adjusted EBITDAR” are non-GAAP measures used by the Corporation to provide additional information on its financial and operating performance. Adjusted EBITDA and Adjusted EBITDAR are not recognized measures for financial statement presentation under Canadian GAAP and it does not have standardized meanings and may not be comparable to similar measures presented by other public companies.
Adjusted EBITDA is used by the Corporation to assess earnings before interest, taxes, depreciation, amortization, gain or loss on disposal of capital assets, unrealized foreign exchange gains or losses, unrealized gain or loss on forward foreign exchange contracts, aircraft heavy maintenance amortization, contract asset amortization, gain or loss on cash settled share based payment arrangement related to a financing arrangement, unrealized gain or loss on fair value of total return swap related to a financing arrangement, gain or loss on fair value of stock warrant, loss on settlement of cash settled share based payment arrangement related to a financing arrangement, gain on settlement of total return swap related to a financing, loss on extinguishment of debts, and non-cash employee pension expense, as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. Adjusted EBITDAR is calculated as Adjusted EBITDA excluding aircraft rents. The Corporation believes that these alternative measures provide a more consistent basis to compare the performance of the Corporation between the periods. Adjusted EBITDA and Adjusted EBITDAR provide additional information to users of Management’s Discussion and Analysis of Financial condition and Results of Operations (“MD&A”) to enhance their understanding of the Company’s financial performance.Reconciliation of non-GAAP EBITDA, Adjusted EBITDA and Adjusted EBITDAR to GAAP income is provided on page 15 of the MD&A for the three and twelve months ended December 31, 2020.
Notice on Forward-Looking Statements:
Certain statements contained herein, including statements related to the completion of the Offering and use of net proceeds of the Offering, constitute “forward-looking statements”. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans”, “intends”, “anticipates”, “should”, “estimates”, “expects”, “believes”, “indicates”, “targeting”, “suggests” and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Reference should be made to the issuer’s public filings available at www.sedar.com and at www.cargojet.com, including its most recent Annual Information Form filed with the Canadian securities regulators, its most recent Consolidated Financial Statements and Notes thereto and related Management’s Discussion and Analysis (MD&A), and the short form prospectus to be filed in connection with the Offering, for a summary of material risks. These risks are not intended to represent a complete list of the risks that could affect the issuer; however, these risks should be considered carefully. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The forward-looking statements contained herein describe the issuer’s expectations at the date of this news release and, accordingly, are subject to change after such date. The issuer assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, other than as required by applicable securities laws. In the event the issuer does update any forward-looking statement, no inference should be made that the issuer will make additional updates with respect to that statement, related matters, or any other forward-looking statement. Readers are cautioned not to place undue reliance on these forward-looking statements.