MISSISSAUGA, ON, March 7,
2022 /CNW/ - Cargojet Inc. ("Cargojet" or the
"Corporation") (TSX: CJT) announced today financial results for the
fourth quarter and year ended December 31,
2021.
Total Revenues for the quarter were $235.9 million compared to fourth quarter 2020
Revenues of $187.1 million. Gross
Margin for the quarter was $76.7
million compared to fourth quarter 2020 Gross Margin of
$69.3 million. Adjusted
EBITDA(1) and Adjusted EBITDAR(1) for
the quarter were $90.5 million
compared to the fourth quarter 2020 Adjusted EBITDA(1)
and Adjusted EBITDAR(1) of $87
million. Net income for the quarter was $102.0 million (net income of $33.4 million excluding warrant valuation gain)
compared to net loss of $20.5 million
in 2020 (net income of $27.4 million
excluding warrant valuation loss).
Total Revenues for the year were $757.8
million compared to 2020 Revenues of $668.5 million. Gross Margin for the year was
$230.9 million compared to 2020 Gross
Margin of $250.5 million. Adjusted
EBITDA(1) and Adjusted EBITDAR(1) for
the year were $293.1 million compared
to the 2020 Adjusted EBITDA(1) and Adjusted
EBITDAR(1) of $281.7
million. Net income for the year was
$167.4 million (net income of
$88.4 million excluding warrant
valuation gain) compared to net loss of $87.8 million in 2020 (net income of $90.1 million excluding warrant valuation
loss).
Total revenue growth of 26.1% for the quarter compared to prior
year reflected the results of our previously announced
diversification strategy that is helping deliver a balanced
portfolio growth where each line of business is a strong
contributor. Domestic network posted 18.2%, ACMI posted 26.6% and
the Charter business posted 54.6% growth compared to the same
period last year. Domestic Network Revenue for this quarter
accounted for less than 45% of total revenues compared to over 47%
for the same period in 2020.
Adjusted Free Cash Flow(1) was
$38.0 million for the three-month
period ended December 31, 2021
compared to $52.1 million for the
same period in 2020.
"As we begin to prepare for the post-pandemic world, Cargojet
now has a substantially larger base of business to build upon
compared to its pre-pandemic size and scale. Building on the strong
foundation of our domestic overnight network, we are aggressively
diversifying to take advantage of the emerging growth
opportunities." said Dr. Ajay
Virmani, President & CEO.
A prolonged pandemic has triggered structural changes in the
aviation industry over the past two years. With a dramatic
reduction in cross-border passenger air travel, significant belly
cargo capacity has been taken out of the global supply chain. At
the same time, the pandemic has accelerated demand for e-commerce
at an unprecedented rate, creating even more demand for air cargo
services. While dedicated air cargo operators have tried to step up
their services to meet demand in the short term, there remains a
significant gap in the worldwide air lift capacity compared to the
demand that is expected to persist in the medium term. As major
passenger airlines shed their larger wide body fleets of B747s and
A380s in favour of smaller, more fuel-efficient aircraft, Cargojet
expects the reduction in resulting belly cargo capacity to become a
longer-term structural shift. Cargojet's strategy to grow its
international footprint continues to take advantage of this
structural shift.
"Growth and success will require top talent and we are
building a dedicated international team. At the same time, we will
continue to have our current top talent stay focused on delivering
exceptional service to our growing domestic network customers."
concluded Dr. Virmani.
All references to "$" in this press release are to Canadian
dollars.
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.
(1) Non-GAAP Measures
"Adjusted EBITDA", "Adjusted EBITDAR" and "Adjusted Free Cash Flow"
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.
Adjusted Free Cash Flow is calculated as Standardized Free Cash
Flow as defined by CPA Canada, less operating cash flows provided
from or used in discontinued operations, changes in working
capital, plus the provision for current income taxes.
Reconciliation of non-GAAP Measures, including Adjusted
EBITDA, Adjusted EBITDAR and Adjusted Free Cash Flow to GAAP income
is provided on page 16 of the MD&A for the three and twelve
months ended December 31, 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 (AIF) filed with the Canadian securities
regulators, and its 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 Company cautions
that the list of risk factors and uncertainties described in the
AIF and MD&A is not exhaustive and other factors could also
adversely affect its results. Readers are urged to consider the
risks, uncertainties and assumptions carefully in evaluating the
forward-looking information and are cautioned not to place undue
reliance on such information. The forward-looking information
contained herein represents our expectations as of the date hereof
(or as the date they are otherwise stated to be made), and are
subject to change after such date. However, we disclaim any
intention or obligation or undertaking to update or revise any
forward-looking information whether as a result of new information,
future events or otherwise, except as required under 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.