MISSISSAUGA, ON,
Aug. 3, 2021 /CNW/ -
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.
About Cargojet
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
Non-GAAP Measures
"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.
SOURCE Cargojet Inc.