MISSISSAUGA, ON, May 2, 2022
/CNW/ - Cargojet Inc. ("Cargojet" or the "Corporation") (TSX: CJT)
announced today financial results for the first quarter ended
March 31, 2022.
Total Revenues for the quarter were $233.6 million compared to first quarter 2021
Revenues of $160.3 million. Gross
Margin for the quarter was $66.9
million compared to first quarter 2021 Gross Margin of
$45.3 million. Adjusted
EBITDA(1) and Adjusted EBITDAR(1) for
the quarter were $83.0 million
compared to the first quarter 2021 Adjusted EBITDA(1)
and Adjusted EBITDAR(1) of $64.2
million. Net loss for the quarter was $56.4 million (net income of $30.4 million excluding warrant valuation loss)
compared to net income of $89.4
million in 2021 (net income of $7.5
million excluding warrant valuation gain).
Total revenue growth of 45.7% for the quarter compared to prior
year reflecting a strong contribution from the All-in Charter
segment that benefited from a robust demand for global air-cargo.
Domestic network posted 10.3%, ACMI posted 36.2% and the Charter
business posted 298.0% growth compared to the same period last
year. Domestic Network Revenue for this quarter accounted for less
than 37% of total revenues compared to over 47% for the same period
in 2021.
Adjusted Free Cash Flow(1) was $42.7 million for the three-month period ended
March 31, 2022 compared to
$35.2 million for the same period in
2021.
While the macro environment remains volatile with several
uncertainties, Cargojet has been squarely focused on executing its
plans. The global supply chains are going through a major change
and this large-scale dislocation is also creating demand for
air-cargo to selectively meet critical production schedules.
Cargojet is well positioned to participate in this emerging
opportunity.
"Ever since March 2020, we have
been constantly adapting to the changing air-cargo landscape. The
recent geo-political events have further added pressure on the
already strained traditional supply chains but they are also
creating new opportunities for air-cargo." said Dr. Ajay Virmani, President & CEO.
"We are acutely aware of the uncertainties and are well
positioned to not only tackle them but capitalize wherever new
opportunities are emerging. The investments we made in aircraft
acquisition, technology and in attracting and retaining top talent
are paying off, allowing us to scale up the business in a seamless
manner." concluded Dr. Virmani.
All references to "$" 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 33 aircraft. For further
information, please contact
Pauline Dhillon
Chief Corporate Officer
Tel: (905) 501
7373
pdhillon@cargojet.com
(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 15 of the MD&A for the three month period
ended March 31, 2022.
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.