Cargojet Announces C$100 Million Bought Deal Offering of 5.25% Listed Senior Unsecured Hybrid Debentures

From Cargojet Inc

MISSISSAUGA, ON, June 22, 2020 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT, CJT.A) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by RBC Capital Markets, CIBC Capital Markets and Scotiabank under which the underwriters have agreed to purchase C$100 million aggregate principal amount of listed senior unsecured hybrid debentures due June 30, 2026 (the “Debentures”) at a price of C$1,000 per Debenture (the “Offering”). Cargojet has also granted the underwriters an option to purchase up to an additional C$15 million aggregate principal amount of Debentures, on the same terms and conditions, exercisable in whole or in part, for a period of 30 days following closing of the Offering. The Offering is expected to close on or about July 16, 2020.

The Debentures will be direct, senior unsecured obligations of the Corporation and will rank subordinate to all existing and future senior secured and other secured indebtedness of the Corporation, and will rank pari passu with all existing and future senior unsecured, and other unsecured and unsubordinated indebtedness of the Corporation. The Debentures will rank pari passu with the Corporation’s 5.75% listed senior unsecured hybrid debentures due April 30, 2024 and the Corporation’s 5.75% listed senior unsecured hybrid debentures due April 30, 2025. The Debentures will bear interest at a rate of 5.25% per annum, payable semi-annually in arrears on June 30 and December 31 of each year, with the first interest payment on December 31, 2020. The December 31, 2020 interest payment will represent accrued interest from the closing of the Offering, to but excluding December 31, 2020. The Debentures will mature on June 30, 2026 (the “Maturity Date”).

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Cargojet Wins Carrier of Choice Award

From Cargojet Inc

MISSISSAUGA, ON, May 28, 2020 /CNW/ – Cargojet once again is excited to announce that it has been awarded the Shipper’s Carrier of Choice Award by the Canadian Shipper magazine, a leading industry publication.  Cargojet continues to surpass shipper expectations as well as the industry benchmark in the total Industry Sector Average and particularly in the key areas of On-time Performance, Leadership in Problem Solving, Ability to Provide Value-Added Services, Customer Service, Quality of Equipment & Operations, Competitive Pricing, and Sustainable Transportation Practices. Cargojet’s total aggregate score was 166.49 which was measured against the overall 2019 benchmark of excellence of 153. Cargojet is the only Canadian Air Cargo carrier to receive this honour for the eighteenth year.

“Cargojet continues to exceed the expectations of our customers by delivering a premium product into the marketplace. We remain focused on exceeding our customers expectation and provide them value-added services.  This award is a testament to the  Cargojet team’s dedication, hard work and loyalty.   Our professional team is truly the driving force of Cargojet,” says Dr. Ajay K. Virmani, President & CEO.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries over 1,300,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft. 

Cargojet declares Dividend

From Cargojet Inc

MISSISSAUGA, ON, May 11, 2020 /CNW/ – The Board of Directors of Cargojet Inc. has declared a cash dividend of $0.2340 per common voting share and variable voting share for the period from April 1, 2020 to June 30, 2020. The dividends will be paid to all shareholders of record as at the close of business on June 19, 2020 and will be payable on or before July 6, 2020. These dividends will be eligible dividends within the meaning of the Income Tax Act (Canada).

Cargojet is Canada’s leading provider of time sensitive premium overnight air cargo services and carries over 8,000,000 pounds of cargo weekly. Cargojet operates its network across North America each business night serving 15 major cities, and selected international destinations. Cargojet owns a fleet of 26 aircraft.

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 its most recent Annual Consolidated Financial Statements and Quarterly 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.

Cargojet Announces Strong First Quarter Results

From Cargojet Inc

MISSISSAUGAON, May 7, 2020 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the first quarter ended March 31, 2020.

For the Quarter Ended March 31, 2020:

  • Total Revenues were $123.0 million, an increase of $12.6 million or 11.4% versus the previous year.
  • Gross Margin was $32.2 million, an increase of $11.0 million or 51.9% versus the previous year
  • Adjusted EBITDA was $40.2 million, an increase of $7.9 million or 24.5% versus the previous year
  • Adjusted EBITDAR was $40.2 million, an increase of $7.6 million or 23.3% versus the previous year

In the first quarter, Cargojet achieved strong year-on-year operating results and free cash-flow. “While our Domestic Overnight Business held its own as e-Commerce maintained its growth trajectory, our diversification strategy to develop and focus on other lines of business such as ACMI and All-in Charters is paying off with strong year-on-year growth with strong contribution to overall margins” said Ajay Virmani, President & CEO.

“I am particularly proud of our team for swinging into action in tackling COVID-19 challenge. We moved swiftly to implement effective safety and security measures to protect our team as well as customers while ensuring that much needed Supply Chain continued the flow for urgent shipments. We activated our business continuity plans by supplementing additional pilots and operational personnel while successfully handling the unplanned surge in all segments of our Business” commented Mr. Virmani.

“While the longer-term implications, and the full impact of COVID-19 remains unknown, Cargojet is working hard and is well positioned to successfully support this new environment both in the short as well as in the long run” concluded Mr. Virmani.

Cargo flight carrying medical supplies from China lands at Edmonton airport

News from CBC News – link to story and updates

‘Our cargo movements continue to grow and have never been more important,’ EIA says

CBC News · Posted: Apr 13, 2020

The Cargojet flight carrying medical supplies from Shanghai arrived early Monday morning at Edmonton International Airport. (Submitted by Edmonton International Airport)

A cargo flight loaded with medical supplies from China arrived at Edmonton’s airport early Monday morning, almost a month after the facility stopped accepting international passenger flights.

The Cargojet flight, arranged by Alberta Health Services, carried personal protective equipment for front line health-care workers and first responders in the province, according to a news release from the Edmonton International Airport.

The Boeing 767-300F left Shanghai on Sunday.

“Although our passenger movements are substantially down, our cargo movements continue to grow and have never been more important to our community,” Tom Ruth, EIA president and CEO, said in the release.

Canada has been actively seeking medical supplies — including medical masks, gowns and gloves — to ensure a stable supply as demand and profiteers overwhelm global markets. 

“Our government is working very hard on an ongoing basis to secure the personal protective equipment required to keep our health care, continuing care and seniors care workers safe,” Municipal Affairs Minister Kaycee Madu said in the release.

The PPE supplies arrived as health professionals in Canada warn that shortages could put the lives of front-line workers at risk.

On March 16, in response to the global coronavirus pandemic, the federal government announced all international passenger flights arriving in Canada were restricted to one of four airports: Toronto, Montreal, Vancouver and Calgary. 

According to the release, Edmonton is the only airport community in Canada to be certified by the International Air Transport Association to be involved with the transport of sensitive medical cargo, including pharmaceutical shipments that need strict temperature controls.

“This international designation ensures EIA will continue prospering as a global-scale gateway that will welcome future medical supply flights as well as other essential, time sensitive products,” the release said.

Cargojet Receives Final Court Approval to Increase Permitted Foreign Ownership Levels to the Levels Permitted under Canada Transportation Act

Provided by Cargojet Inc/CNW

MISSISSAUGA, ON, April 1, 2020 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) is pleased to announce that the Ontario Superior Court of Justice (Commercial List) issued earlier today a final order approving the previously announced plan of arrangement under the Business Corporations Act (Ontario) effecting amendments to Cargojet’s articles of incorporation to align the permitted level of non-Canadian ownership and control of its voting shares within its articles with those prescribed by the new definition of “Canadian” under the Canada Transportation Act (“CTA”) as amended in June 2018.

Prior to the CTA amendments, no more than 25% of the voting interests of a Canadian air carrier could be owned or controlled by non-Canadians. The Government of Canada’s stated purpose in implementing the CTA amendments is to attract more foreign investment and encourage growth in the aviation sector by increasing, from 25% to 49%, the permitted level of foreign ownership of Canadian air carriers. At the same time, the CTA amendments introduced two new limitations on voting ownership and control, by capping the voting rights of single non-Canadians and of the aggregate of non-Canadian air carriers at 25%.

Cargojet expects that its amended articles will be filed and become effective on or about April 3, 2020. Further details regarding the amendments are set out in the management information circular of Cargojet dated February 26, 2020 and in Cargojet’s news release of the same date which are available on SEDAR under Cargojet’s profile at www.sedar.com.

Cargojet is Canada’s leading provider of time sensitive premium overnight air cargo services and carries over 8,000,000 pounds of cargo weekly. Cargojet operates its network across North America each business night serving 15 major cities, and selected international destinations. Cargojet owns a fleet of 26 aircraft.

Cargojet Announces Voting Results from Annual and Special Meeting of Shareholders

Provided by Cargojet Inc/CNW

MISSISSAUGA, ON, March 30, 2020 /CNW/ – Cargojet Inc. (TSX: CJT) (“Cargojet” or the “Company”) announced the voting results from its annual and special meeting of shareholders held today virtually via live audio webcast.

Shareholders elected each of the director nominees as follows:

NomineeVotes ForVotes Withheld
(a)  James Crane9,329,677 (96.52%)336,060 (3.48%)
(b)  Ajay Virmani9,476,318 (98.04%)189,419 (1.96%)
(c)  Arlene Dickinson8,655,842 (89.55%)1,009,895 (10.45%)
(d)  Paul Godfrey8,812,198 (91.17%)853,539 (8.83%)
(e)  John Webster9,045,121 (93.58%)620,616 (6.42%)

Shareholders also voted in favour of all items of business, including the special resolution adopting the previously announced plan of arrangement effecting amendments to Cargojet’s articles of amalgamation to increase the limits of foreign ownership and control of its voting shares to those permitted by amendments made to the Canada Transportation Act in 2018. The implementation of these amendments, which are described in Cargojet’s February 26, 2020 news release, remains subject to final approval of the Ontario Superior Court of Justice (Commercial List) at a hearing scheduled for Wednesday, April 1, 2020.  

Final voting results on all matters voted on at the meeting will be filed on SEDAR at www.sedar.com.

Cargojet is Canada’s leading provider of time sensitive premium overnight air cargo services and carries over 8,000,000 pounds of cargo weekly. Cargojet operates its network across North America each business night serving 15 major cities, and selected international destinations. Cargojet owns a fleet of 26 aircraft.

Cargojet Takes Extraordinary Measures to keep the Supply-Chains Moving in the Face of Higher Volumes due to the COVID-19 Pandemic

Provided by Cargojet Inc/CNW

MISSISSAUGA, ON, March 19, 2020 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX:CJT) announced today a set of extra-ordinary measures to help customers manage higher volumes and keep the flow of goods moving within and across Canada and the USA.

COVID-19 pandemic has changed lives for all Canadians as we know it. The situation remains fluid and families and businesses are adjusting to this new reality on a day-by-day basis. The need to keep the supply-chains moving is more critical than ever. As physical stores either temporarily shut down or limit their hours, Canadians are increasingly depending on delivery services to fulfil their essential needs.

Cargojet is a critical service provider in the Canadian supply chain and is experiencing significantly higher demand and volumes from e-Commerce and health care and essential supplies. We are taking several significant steps to ensure that we can continue to play an important role in fulfilling this increased overall demand. As a result, we are announcing the following measures:

  1. Health and Safety of our Team: Given the nature of our business, substantially all of our team cannot work from home. Therefore, first and foremost, keeping our team safe and healthy is vital to maintaining our operations. Many of them are facing unexpected child-care needs due to school closures, higher prices of daily essentials, shortages and worries about groceries and other daily costs. We are taking immediate steps to help alleviate some of these worries by adding a temporary daily cash allowance and additional benefits support for every Cargojet team member.
  2. Hygiene, Safety and Security of Cargo: We have rolled out enhanced health checks at each of our facilities and are working with our teams to increase cleaning, sanitizing and disinfecting procedures throughout our network including our aircraft, cargo containers, packages and facilities. We are following public health guidelines of frequent hand-washing and social distancing to keep our teams safe and productive.
  3. Adjusting capacity to serve Domestic and Transborder needs: We are redeploying aircraft that are currently serving International scheduled and charter routes back to our Canadian Overnight network and to support the integrated supply chains of Canada-USA-Mexico routes which are essential to maintain timely access to essential supplies.  We are preparing to handle additional volumes through our day time flights in case volumes exceed the overnight network capacity on certain key routes. We are well equipped and planning to handle any surge in volumes should that be necessary by adjusting schedules and routes.
  4. Northern Communities: Our network supports key gateways to the Northern communities some of which are only accessible by Air. With significant curtailment in passenger airline capacities, moving cargo to the Northern communities is even more important. We are paying special attention to ensuring that supply-chains to Northern communities remain strong.
  5. Increasing co-ordination with customers: We are communicating on a daily basis with our key customers to ensure that we have the necessary capacity, schedules and service levels to meet the increased demand to supply essential air cargo services.

Cargojet is very well-prepared and is doing everything possible to keep the critical supply-chains moving within Canada and on our Transborder services. Everyone on the Cargojet Team is fully committed and proud to be working diligently to provide these essential services to our customers and ultimately to those that need it most.

Cargojet to Implement Increased Foreign Ownership Levels

Provided by Cargojet Inc/CNW

MISSISSAUGA, ON, Feb. 26, 2020 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today that it will seek shareholder approval at its 2020 annual and special meeting of shareholders to amend its articles of incorporation to increase the limits of foreign ownership and control of its voting shares to those permitted by amendments made to the Canada Transportation Act (CTA) in 2018. The amendments to its articles will be undertaken by way of a court supervised and shareholder approved statutory plan of arrangement.

Prior to the CTA amendments, no more than 25% of the voting interests of a Canadian air carrier could be owned or controlled by non-Canadians. The Government of Canada’s stated purpose in implementing the CTA amendments is to attract more foreign investment and encourage growth in the aviation sector by increasing, from 25% to 49%, the permitted level of foreign ownership of Canadian air carriers. At the same time, the CTA amendments introduced two new limitations on voting ownership and control, by capping the voting rights of single non-Canadians and of the aggregate of non-Canadian air carriers at 25%.

Completion of the plan of arrangement is subject to shareholder approval and approval of the Ontario Superior Court of Justice (Commercial List). Full details regarding the plan of arrangement will be included in the management information circular which will be made available to Cargojet’s shareholders in connection with the shareholder meeting scheduled for March 30, 2020.

Cargojet is Canada’s leading provider of time sensitive premium overnight air cargo services and carries over 8,000,000 pounds of cargo weekly. Cargojet operates its network across North America each business night serving 15 major cities, and selected international destinations. Cargojet owns a fleet of 26 aircraft.

Cargojet Announces Strong Fourth Quarter and Year End Results

Provided by Cargojet INc/CNW

MISSISSAUGA, ON, Feb. 20, 2020 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the fourth quarter and year ended December 31, 2019.

For the Fourth Quarter Ended December 31, 2019:

  • Total Revenues were $139.7 million, an increase of $7.1 million or 5.4% versus the previous year. Revenue growth excluding fuel surcharges and other pass through costs was 9.2%
  • Gross Margin was $41.6 million, an increase of $4.5 million or 12.1% versus the previous year
  • Adjusted EBITDA was $47.2 million, an increase of $7.0 million or 17.4% versus the previous year
  • Adjusted EBITDAR was $47.2 million, an increase of $4.9 million or 11.6% versus the previous year

For the Year Ended December 31, 2019:

  • Total Revenues were $486.6 million, an increase of $31.7 million or 7.0% versus the previous year. Revenue growth excluding fuel surcharges and other pass through costs was 9.9%
  • Gross Margin was $119.2 million, an increase of $6.9 million or 6.1% versus the previous year
  • Adjusted EBITDA was $156.0 million, an increase of $28.0 million or 21.9% versus the previous year
  • Adjusted EBITDAR was $156.8 million, an increase of $18.9 million or 13.7% versus the previous year

“Cargojet continued to produce strong revenue and EBITDA growth in 2019,” said Ajay Virmani, President and Chief Executive Officer. “We remain focused on executing our strategy and are driving growth in each of our lines of business. Once again, we handled record volumes for 2019 peak season while delivering exceptional service to our customers. Our efforts to prudently manage costs are yielding better margins and we continue to optimize our fleet utilization. Cargojet team once again delivered a strong quarter making us incredibly proud of their dedication and hard work.” he added.

Cargojet is Canada’s leading provider of time sensitive premium overnight air cargo services and carries over 8,000,000 pounds of cargo weekly. Cargojet operates its network across North America each business night serving 15 major cities, and selected international destinations. Cargojet owns a fleet of 26 aircraft.

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, gain or loss on forward foreign exchange contracts, gain or loss on cash settled share based payment arrangement, loss on extinguishment of debt, employee pension, aircraft heavy maintenance expenditures, heavy maintenance deposits and non-cash pension expenses 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 15 of the MD&A for the three months and year ended December 31, 2019.

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.