MISSISSAUGA, ON, Nov. 1, 2021 /CNW/ - Cargojet Inc.
("Cargojet" or the "Corporation") (TSX: CJT) announced today
financial results for the third quarter ended September 30, 2021.
Total Revenues for the quarter were $189.5 million compared to third quarter 2020
Revenues of $162.3 million. Gross
Margin for the quarter was $54
million compared to third quarter 2020 Gross Margin of
$58.3 million. Adjusted EBITDA and
Adjusted EBITDAR for the quarter were $70.9
million compared to the third quarter 2020 Adjusted EBITDA
and Adjusted EBITDAR of $69.8
million.
Total revenue growth of 16.8% for the quarter compared to prior
year was led by the ACMI line of business that posted strong
revenue growth of 21% compared to prior year. Cargojet continues to
diversify its portfolio and it is more diversified today than the
pre-pandemic period. Domestic Network Revenue for this quarter
accounted for less than 42% of total revenues compared to over 54%
for the same quarter in 2019.
Adjusted Free Cash Flow was $51.1
million for the three-month period ended September 30, 2021 compared to $59.3 million for the same period in 2020.
"Ocean and ground transportation supply-chains remain clogged
across the globe creating short-to-medium term opportunities for
air-cargo. We are seeing that reflected in our ACMI business and
expect this to extend through the upcoming holiday season," said
Dr. Ajay Virmani, President &
CEO.
"As economies and businesses re-open, Consumers are keen to step
out and experience in-person shopping. But our longer-term outlook
for e-Commerce remains strong, particularly given the dramatic
uplift in digital adoption over the past 18 months," further noted
Dr. Virmani.
"We are also excited about the opportunities emerging in the
international air-cargo segment. Over the past few quarters, we
have methodically invested in talent, infrastructure and aircrafts
necessary to build a strong international business and are
beginning to see encouraging results. Our team of dedicated
professionals continues to be the driving force of our ongoing
success. Each member of our team focuses and delivers
customer excellence," 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 31 aircraft.
Non-GAAP
Measures
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"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.
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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.
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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
nine months ended September 30, 2021.
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Notice on Forward
Looking Statements:
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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.
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SOURCE Cargojet Inc.