Cargojet Announces Strong Fourth Quarter and Year End Results
Mississauga, ON, March 9, 2015 - Cargojet Inc. (the "Corporation") (TSX: CJT, CJT.A) announced today financial results for the fourth quarter and twelve-month period ended December 31, 2014.
For the Fourth Quarter Ended December 31, 2014:
- Total Revenues were $57.1, an increase of $8.6 million or 17.7% versus the previous year
- Gross Margin was $5.8 million, a decrease of $2.8 million or 32.6% versus the previous year
- Adjusted EBITDA before one-time costs was $8.2 million, an increase of $1.3 million or 18.8% versus the previous year. Adjusted EBITDA net of one-time costs was $0.4 million.
For the Twelve Month Period Ended December 31, 2014:
- Total Revenues were $192.4 million, an increase of $17.0 million or 9.7% over the previous year
- Gross Margin was $18.8 million, a decrease of $6.6 million or 26.0% versus the previous year
- Adjusted EBITDA before one-time costs was $20.1 million, an increase of $2.9 million or 16.9% versus the previous year. Adjusted EBITDA net of one-time costs was $4.0 million.
“Cargojet achieved its ninth consecutive quarter of revenue growth due to continued strong customer demand for its premium air cargo services.” said Ajay Virmani, President and Chief Executive Officer. “Strong overall economic growth and e-commerce related shipping led to record average daily volumes (pounds) handled in December. One-time costs related to the planned expansion of our core overnight network in March 2015, for a major customer, were in line with our planned expenditures.” he added.
Cargojet is Canada's leading provider of time sensitive overnight air cargo services and carries over 1,000,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft. For more information, please visit: www.cargojet.com.
For further information, please contact:
Pauline Dhillon
Senior Vice President Marketing, Public & Government Relations
Tel: (905) 501 7373
pdhillon@cargojet.com
Non-GAAP Measures
“Adjusted EBITDA” is a non-GAAP measure used by Cargojet to provide additional information on its financial and operating performance. Adjusted EBITDA is not a recognized measure 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 Cargojet to assess earnings before interest, taxes, depreciation, amortization, gain or loss on disposal of capital assets, unrealized foreign exchange gains or losses, aircraft heavy maintenance expenditures and heavy maintenance deposits as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. The Company believes that this alternative measure provides a more consistent basis to compare the performance of the Company between the periods. Adjusted EBITDA provides additional information to users of the MD&A to enhance their understanding of the Company’s financial performance.
Reconciliation of non-GAAP EBITDA and Adjusted EBITDA to GAAP income is provided on page 15 of the fourth quarter MD&A of 2014.
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 its most recent Annual Consolidated Financial Statements and Quarterly 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.