Mississauga, ON, May 3, 2021 – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the first quarter ended March 31, 2021.
Total Revenues for the quarter were $160.3 million compared to first quarter 2020 Revenues of $123.0 million. Gross Margin for the quarter was $45.3 million compared to first quarter 2020 Gross Margin of $32.2 million. Adjusted EBITDA and Adjusted EBITDAR for the quarter were $64.2 million compared to the first quarter 2020 Adjusted EBITDA and Adjusted EBITDAR of $44.6 million.
Adjusted Free Cash Flow of $35.2 million for the three-month period ended March 31, 2021 compared to $29.8 million for the same period in 2020 increased $5.4 million or 18.1%.
“With a fundamental shift in consumer shopping habits in several key categories, Cargojet has spent the last few quarters laying the foundation to capture the next phase of e-Commerce growth. We strengthened our balance sheet, invested in fleet expansion, broadened our portfolio of services and are investing in attracting and retaining top talent.” said Dr. Ajay Virmani, President & CEO.
“What was previously a consumer led shift to digital is now rapidly becoming a merchant led shift, accelerating the move to e-Commerce even further. Our highly focused and professional team continues to work closely with our customers to support their changing needs while maintaining the best on-time performance in the industry” noted Dr.Virmani.
“With shifting supply chains, triggered by a significant reset of the international passenger routes, we also see opportunities to expand and diversify on select international lanes. We also continue to focus on growing our ACMI and Charter business as cargo capacity remains in high demand and we are constantly adapting to maintain our leadership position”. 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, share based compensation, 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 arrangement, gain or loss on fair value adjustment of swap related to a share based compensation arrangement, gain or loss on settlement of swap related to a share based compensation arrangement, gain or loss on extinguishment of debts or finance leases, 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.
The Corporation excluded the impact of share based compensation and related swap arrangements to measure its Adjusted EBITDA and Adjusted EBITDAR that must be recognized under IFRS. The excluded amounts are subject to volatility in the Corporation’s stock price or may not necessarily be reflective of Corporation’s underlying operating performance. Prior year Adjusted EBITDA and Adjusted EBITDAR calculations are adjusted to reflect this change.
Reconciliation of non-GAAP EBITDA, Adjusted EBITDA and Adjusted EBITDAR to GAAP income is provided on page 14 of the MD&A for the three months ended March 31, 2021.
Notice on Forward Looking Statements:
Certain statements contained herein 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 most recent Annual Information Form filed with the Canadian securities regulators, and it’s most recent Annual Consolidated Financial Statements and Notes thereto and related Management’s Discussion and Analysis (MD&A), for a summary of major risks. 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 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.