Mississauga, ON, Aug , 2021 – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the second quarter ended June 30, 2021.
Total Revenues for the quarter were $172.1 million compared to second quarter 2020 Revenues of $196.1 million. Gross Margin for the quarter was $54.9 million compared to second quarter 2020 Gross Margin of $90.7 million. Adjusted EBITDA and Adjusted EBITDAR for the quarter were $67.4 million compared to the second quarter 2020 Adjusted EBITDA and Adjusted EBITDAR of $80.2 million.
Revenue growth excluding Charter line of business was a solid 30%. Prior year’s Charter revenues reflect a significant one-time benefit due to dedicated charter flights for government agencies to bring Personal Protective Equipment (PPE) from China to Canada. Going forward we expect a more normalized revenue growth in our Charter business.
Adjusted Free Cash Flow was $36.0 million for the three-month period ended June 30, 2021 compared to $55.7 million for the same period in 2020.
“We are encouraged to see rising vaccination rates in Canada and the gradual re-opening of the economy. One of the newest macro trends we are observing is Hybrid. Be it return to office or shopping habits; we are seeing consumers adopt a hybrid approach to many aspects of their lives. Even after the economies re-open, we expect consumers to maintain e-commerce in their shopping mix for a vast array of products, setting a new higher baseline for volumes to grow from”. said Dr. Ajay Virmani, President & CEO.
“Over the past 15 months, supply chains have become more resilient and consumers have gotten used to a wide variety of products being available to them on next-day or even the same-day delivery. To fulfil this need for speed, shippers are expected to increase the air-cargo component in their supply chain mix. On the B2B front, we are still not seeing the full recovery as businesses remained closed due to government restrictions for the most part of second quarter”. further noted Dr. Virmani.
“We continue to make progress on our international growth strategy. Having demonstrated the value add of dedicated air-cargo service to customers who initially signed up for shorter term commitments, we are starting to see greater stickiness for certain international segments despite the re-opening of certain passenger air routes. The international air-cargo market still remains tight and continues to present opportunities for our ACMI and Charter businesses”. 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 30 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 14 of the MD&A for the three and six months ended June 30, 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.