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.
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.