Cargojet Announces Strong Second Quarter Results
Mississauga, ON, August 13th, 2015 - Cargojet Inc. (the "Corporation") (TSX: CJT, CJT.A) announced today financial results for the second quarter ended June 30, 2015.
For the Second Quarter Ended June 30, 2015:
· Total Revenues were $75.2 million, an increase of $30.9 million or 69.6% versus the
previous year
· Gross Margin was $7.3 million, an increase of $2.1 million or 39.3% versus the previous
year
· Adjusted EBITDA before one-time costs was $10.9 million, an increase of $6.5 million or
147.7% versus the previous year. Adjusted EBITDA net of one-time costs was $6.6 million.
· Adjusted EBITDAR before one-time costs was $20.0 million, an increase of 115.1% versus
the previous year. Adjusted EBITDAR net of one-time costs was $15.7 million.
"Cargojet has successfully completed the integration of its new major customer in 2015, which
has contributed to revenue growth in the Quarter," said Ajay Virmani, President and Chief
Executive Officer. "Overall customer demand for Cargojet’s primary overnight network services
and its air cargo charter services were softer than expected in the Quarter and we continue to
match capacity to actual demand, in order to keep operating costs in line", he added. "One-time
costs related to the expansion of our core overnight network that started 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 consisting of 6 Boeing
767-300ER, 3 Boeing 767-200ER, 5 Boeing 757-200ER and 9 Boeing 727-AF.
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" and "Adjusted EBITDAR" are non-GAAP measures used by Cargojet 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 they do 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, and unrealized foreign exchange gains
or losses. Adjusted EBITDA provides additional information to users of the MD&A to enhance
their understanding of the Company’s financial performance. As of January 1, 2015, the
Company has excluded heavy maintenance expenditures and deposits from the calculation of
its adjusted EBITDA. Heavy maintenance expenditures and deposits of $1.3 million during the
quarter (June 30, 2014 - $1.2) have been classified as maintenance capital expenditures to
better reflect the nature of these amounts.
As of January 1, 2015 the Company reported adjusted EBITDAR in its Management
Discussion and Analysis (“MD&A”). Adjusted EBITDAR is a measure commonly used in the
airline industry to evaluate results by excluding differences in the method by which an airline
finances its aircraft.
The Company believes that these alternative measures provide a more consistent basis to
compare the performance of the Company between the periods and between other similar
companies. Reconciliation of non-GAAP EBITDA, Adjusted EBITDA, EBITDAR and Adjusted
EBITDAR to GAAP income is provided on page 17 of the first quarter MD&A of 2015.
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.