Cargojet
Cargojet Reports Overall Strong Q4 Performance
MISSISSAUGA, ON, March 6, 2023 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the fourth quarter ended December 31, 2022.
Total Revenues for the quarter were $267.0 million compared to fourth quarter 2021 Revenues of $235.9 million. Gross Margin for the quarter was $61.9 million compared to fourth quarter 2021 Gross Margin of $78.2 million. Adjusted EBITDA(1) for the quarter was $82.9 million compared to the fourth quarter 2021 Adjusted EBITDA(1) $90.5 million. Adjusted Free Cash Flow(1) was $33.6 million for the three-month period ended December 31, 2022 compared to $37.8 million for the same period in 2021.
Total revenue growth of 13.2% (6.1% excluding fuel) for the quarter compared to prior year reflected a strong contribution from the ACMI network, up 10.6% and Charters up by 13.9% compared to same quarter last year.
Net income for the quarter was $2.6 million (net income of $14.1 million excluding warrant valuation loss) compared to net gain of $102.0 million in 2021 (net income of $33.4 million excluding warrant valuation gain).
“Over the past several years, Cargojet has evolved its business model that is increasingly based on strategic partnerships rather than transactional relationships with its customers. By aligning our long-term commercial interests, we expect greater endurance of volumes with our strategic customers even if global volumes soften during a recessionary period,” said Dr. Ajay Virmani, President and CEO.
“The continued global increase in e-commerce demand has produced strong growth in our Domestic and ACMI business segments during the Quarter. We continue to monitor various macro risks including a potential recession, which may have impact on consumer spending. As such, Cargojet continues to carefully manage its strategy to match the capacity required with actual customer demand,” further noted Dr. Virmani.
“Our team once again rose to the challenge of delivering another strong quarter with 99.7% on-time performance. I am incredibly proud and grateful to the entire Cargojet team for continuing to deliver excellence while delivering strong revenue growth,” concluded Dr. Virmani.
All references to “$” 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 34 aircraft.
| CALCULATION OF EBITDA, ADJUSTED EBITDA, FREE CASH FLOW AND ADJUSTED FREE CASH FLOW | ||
| (Canadian dollars in millions, except where indicated) | ||
| Three Month Period Ended | ||
| December 31, | ||
| 2022 | 2021 | |
| (unaudited) | (unaudited) | |
| Calculation of EBITDA and Adjusted EBITDA | ||
| Net earnings | $2.6 | $102.0 |
| Add: | ||
| Interest | 13.2 | 7.2 |
| Provision of deferred taxes | 7.4 | 12.4 |
| Depreciation of property, plant and equipment | 41.5 | 30.5 |
| EBITDA (1) | 64.7 | 152.1 |
| Add: | ||
| Share-based compensation | 2.6 | 6.3 |
| Gain on sale of property,plant and equipment | (0.3) | (0.3) |
| Unrealized foreign exchange loss | 0.7 | 0.5 |
| Fair value adjustment and amortization on stock warrant | 12.0 | (67.0) |
| Loss on extinguishment of debts | – | 1.1 |
| Share of (gain) loss of associate | (0.2) | – |
| Employee pension | 3.4 | (2.2) |
| Adjusted EBITDA (1) | 82.9 | 90.5 |
| Calculation of Standardized Free Cash Flow and Adjusted Free Cash Flow | ||
| NET CASH GENERATED FROM OPERATING ACTIVITIES | 64.2 | 61.2 |
| Less: Maintenance capital expenditures (1) | (27.8) | (40.4) |
| Add: Proceeds from disposal of property, plant and equipment | 0.3 | 0.2 |
| Standardized free cash flow (1) | 36.7 | 21.0 |
| Changes in non-cash working capital items and deposits | (3.1) | 16.8 |
| Adjusted free cash flow (1) | $33.6 | $37.8 |
| The Financial Information and Operating Statistics Highlights as follows: | |||||||||||
| (Canadian dollars in millions, except where indicated) | |||||||||||
| Three Month Period Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2022 | 2021 | Change | % | 2022 | 2021 | Change | % | ||||
| Revenues | $267.0 | $235.9 | $31.1 | 13.2 % | $979.9 | $757.8 | $222.1 | 29.3 % | |||
| Direct expenses | 205.1 | 157.7 | 47.4 | 30.1 % | 732.4 | 525.4 | 207.0 | 39.4 % | |||
| Gross margin | 61.9 | 78.2 | (16.3) | -20.8 % | 247.5 | 232.4 | 15.1 | 6.5 % | |||
| Gross margin – (%) | 23.2 % | 33.1 % | -9.9 % | 25.3 % | 30.5 % | -5.2 % | |||||
| Selling, general and administrative expenses | 30.4 | 14.1 | 16.3 | 115.6 % | 74.6 | 59.5 | 15.1 | 25.4 % | |||
| Net finance costs and other gains and losses | 21.7 | (50.3) | 72.0 | 143.1 % | (49.1) | (27.9) | (21.2) | -76.0 % | |||
| Share of (gain) loss of associate | (0.2) | – | (0.2) | 100.0 % | 2.0 | – | 2.0 | 100.0 % | |||
| Earnings before income taxes | 10.0 | 114.4 | (104.4) | -91.3 % | 220.0 | 200.8 | 19.2 | 9.6 % | |||
| Income taxes | 7.4 | 12.4 | (5.0) | -40.3 % | 29.4 | 33.4 | (4.0) | -12.0 % | |||
| Net earnings | 2.6 | 102.0 | (99.4) | -97.5 % | 190.6 | 167.4 | 23.2 | 13.9 % | |||
| Earnings (loss) per share | |||||||||||
| Basic | 0.15 | 5.82 | -5.67 | -97.4 % | 11.04 | 9.73 | 1.31 | 13.5 % | |||
| Diluted | 0.15 | 5.70 | -5.55 | -97.4 % | 10.15 | 9.51 | 0.64 | 6.7 % | |||
| Adjusted (1) | 0.90 | 2.48 | -1.58 | -63.7 % | 6.95 | 6.06 | 0.89 | 14.7 % | |||
| EBITDA (2) | 64.7 | 152.1 | (87.4) | -57.5 % | 395.8 | 348.1 | 47.7 | 13.7 % | |||
| EBITDA margin (2)– (%) | 24.2 % | 64.5 % | -40.3 % | 40.4 % | 45.9 % | -5.5 % | |||||
| Adjusted EBITDA (2) | 82.9 | 90.5 | (7.6) | -8.4 % | 329.0 | 293.1 | 35.9 | 12.2 % | |||
| Adjusted EBITDA margin (2)– (%) | 31.0 % | 38.4 % | -7.4 % | 33.6 % | 38.7 % | -5.1 % | |||||
| Adjusted free cash flow (2) | $33.6 | $37.8 | ($4.2) | -11.1 % | $165.3 | $146.5 | $18.8 | 12.8 % | |||
| Operating statistics (4) | |||||||||||
| Operating days (5) | 48 | 49 | (1.0) | -2.0 % | 197 | 198 | (1.0) | -0.5 % | |||
| Average domestic network revenue per operating day (6) | 2.10 | 2.08 | 0.02 | 1.0 % | 1.83 | 1.64 | 0.19 | 11.6 % | |||
| Block hours (7) | 19,819 | 18,328 | 1,491 | 8.1 % | 73,273 | 59,734 | 13,539 | 22.7 % | |||
| B757-200 | 13 | 9 | 4 | – | 13 | 9 | 4 | – | |||
| B767-200 | 4 | 4 | – | – | 4 | 4 | – | – | |||
| B767-300 | 18 | 16 | 2 | – | 18 | 16 | 2 | – | |||
| Passenger aircraft | 4 | 2 | 2 | – | 4 | 2 | 2 | – | |||
| 39 | 31 | 8 | 25.8 % | 39 | 31 | 8 | 25.8 % | ||||
| Head count | 1,802 | 1,496 | 306 | 20.5 % | 1,802 | 1,496 | 306 | 20.5 % | |||
Cargojet extends Master Services Agreement with Canada Post Corporation and Purolator Inc. until 2029
Strategic Renewal with Canada Post Corporation and Purolator Inc. reinforces Cargojet’s Leadership Position in the Domestic Air Cargo Market
MISSISSAUGA, ON, Jan. 17, 2023 /CNW/ – Cargojet Inc. (“Cargojet“) (TSX: CJT) is pleased to announce today that it has extended the Master Services Agreement (the “Agreement“) with Canada Post Corporation and Purolator Inc., (Canada Post Group of Companies “CPGOC“) until September 30, 2029. An additional option to renew to March 31, 2031, continues to remain available.
Cargojet and CPGOC first entered into the Agreement in 2014 for a seven-year term, with CPGOC exercising its first three-year renewal option in 2017 extending the Agreement until March 31, 2025. The newly extended Agreement will also continue to have minimum guaranteed volumes allowing Cargojet to continue to invest in value-added and enhanced services.
“From the very first day of our relationship with CPGOC, we have focused on delivering an unparalleled service, industry leading reliability and on-time performance. The customer centric mindset of our entire team has once again allowed us to renew the trust and confidence of two of Canada’s most iconic brands,” said Ajay Virmani, President & Chief Executive Officer, Cargojet. “Cargojet’s flagship domestic air network is uniquely positioned to serve the needs of all of our strategic customers. By serving over 90% of Canadian population each and every day, we provide a critical backbone for Canada’s supply chains”, concluded Mr. Virmani.
About Cargojet:
Cargojet is Canada’s leading provider of time sensitive premium air cargo services to all major cities across North America and select international destinations, providing dedicated, ACMI, CMI and international charter services and carries over 25,000,000 pounds of cargo weekly. Cargojet owns/operates a fleet of 40 aircraft.
Cargojet Renews UPS Canada Air Cargo Service Agreement
MISSISSAUGA, ON, Nov. 14, 2022 /CNW/ – Cargojet announced today they have renewed and extended their Air Cargo Services Agreement with United Parcel Service Canada Ltd. for an additional five-year Term. The current agreement was due to expire on July 1, 2025 and the new Agreement is extended to December 31, 2030.
Cargojet continues to provide a comprehensive Canada-wide air cargo service for UPS. Cargojet’s domestic overnight network provides additional capacity and long-term stability to UPS.
“Cargojet is extremely pleased to have successfully renewed the domestic Air Cargo Services Agreement with UPS Canada. Cargojet has been the exclusive provider of time-sensitive domestic overnight air cargo services to UPS Canada since 2003. We will continue to provide the most cost-effective, best on-time performance as well as a scalable solution to UPS,” said Dr. Ajay Virmani, CEO of Cargojet. “The renewal of the agreement is a testament to the committed, hardworking, and dedicated team of professionals at Cargojet. Cargojet continues to value our partnership with UPS. We will work together to provide Canadians with world-class and flexible air cargo services in today’s changing business environment,” added 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 34 aircraft.
Cargojet Reports Overall Strong Q3 Performance
MISSISSAUGA, ON, Oct. 31, 2022 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the third quarter ended September 30, 2022.
Total Revenues for the quarter were $232.7 million compared to third quarter 2021 Revenues of $189.5 million. Gross Margin for the quarter was $57.6 million compared to third quarter 2021 Gross Margin of $54.0 million. Adjusted EBITDA(1) for the quarter was $82.1 million compared to the third quarter 2021 Adjusted EBITDA(1) $70.9 million. Net income for the quarter was $83.4 million (net loss of $1.9 million excluding warrant valuation gain) compared to net loss of $12.9 million in 2021 (net income of $23.9 million excluding warrant valuation loss).
Total revenue growth of 22.8% (15.5% excluding fuel) for the quarter compared to prior year reflected a strong contribution from the Domestic network, up 21.2% and ACMI, up 47.0% compared to same quarter last year.
Adjusted Free Cash Flow(1) was $47.9 million for the three-month period ended September 30, 2022 compared to $51.1 million for the same period in 2021.
“Over the past several years, Cargojet has evolved its business model that is increasingly based on strategic partnerships rather than transactional relationships with its customers. By aligning our long-term commercial interests, we expect greater endurance of volumes with our strategic customers even if global volumes soften during a recessionary period,” said Dr. Ajay Virmani, President and CEO.
“The continued global increase in e-commerce demand has produced strong growth in our Domestic and ACMI business segments during the Quarter. We continue to monitor various macro risks including a potential recession, which may have impact on consumer spending. As such, Cargojet continues to carefully manage its strategy to match the capacity required with actual customer demand,” further noted Dr. Virmani.
“Our team once again rose to the challenge of delivering another strong quarter with 99.7% on-time performance. I am incredibly proud and grateful to the entire Cargojet team for continuing to deliver excellence while delivering strong revenue growth,” concluded Dr. Virmani.
All references to “$” 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 34 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.
The Corporation believes that these alternative measures provide a more consistent basis to compare the performance of the Corporation between the periods. Adjusted EBITDA 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.
| EBITDA and Adjusted EBITDA are reconciled to GAAP operating income (loss) as follows: | ||
| Three Month Period Ended | ||
| September 30, | ||
| 2022 | 2021 | |
| (unaudited) | (unaudited) | |
| Calculation of EBITDA and Adjusted EBITDA | ||
| Net earnings (loss) | $83.4 | $(12.9) |
| Add: | ||
| Interest | 7.4 | 7.5 |
| Provision of deferred taxes | 1.9 | 9.1 |
| Depreciation of property, plant and equipment | 35.7 | 29.7 |
| EBITDA (1) | 128.4 | 33.4 |
| Add: | ||
| Share-based compensation | 5.0 | (3.2) |
| Gain on sale of property, plant and equipment | (0.1) | (0.1) |
| Unrealized foreign exchange loss (gain) | 2.6 | 2.4 |
| Fair value adjustment and amortization on stock warrant | (54.9) | 38.2 |
| Loss on extinguishment of debts | – | – |
| Share of loss of associate | 1.1 | – |
| Employee pension | – | 0.2 |
| Adjusted EBITDA (1) | 82.1 | 70.9 |
| Calculation of Standardized Free Cash Flow and Adjusted Free Cash Flow | ||
| NET CASH GENERATED FROM OPERATING ACTIVITIES | 77.9 | 63.7 |
| Less: Maintenance capital expenditures (1) | (34.2) | (22.2) |
| Add: Proceeds from disposal of property, plant and equipment | 0.1 | 0.1 |
| Standardized free cash flow (1) | 43.8 | 41.6 |
| Changes in non-cash working capital items and deposits | 4.1 | 9.5 |
| Adjusted free cash flow (1) | $47.9 | $51.1 |
Selected Financial Information and Operating Statistics Highlights
The financial and operating highlights for the quarters indicated are as follows:
| Three Month Period Ended | Nine Month Period Ended | |||||||||
| September 30, | September 30, | |||||||||
| 2022 | 2021 | Change % | 2022 | 2021 | Change | % | ||||
| Revenues | $232.7 | $189.5 | $43.2 | 22.8 % | $712.9 | $521.9 | $191.0 | 36.6 % | ||
| Direct expenses | 175.1 | 135.5 | 39.6 | 29.2 % | 527.3 | 367.7 | 159.6 | 43.4 % | ||
| Gross margin | 57.6 | 54.0 | 3.6 | 6.7 % | 185.6 | 154.2 | 31.4 | 20.4 % | ||
| Gross margin – (%) | 24.8 % | 28.5 % | -3.7 % | 26.0 % | 29.5 % | -3.5 % | ||||
| Selling, general and administrative expenses | 46.6 | 11.2 | 35.4 | 316.1 % | 84.1 | 51.3 | 32.8 | 63.9 % | ||
| Net finance costs and other gains and losses | (75.4) | 46.6 | (122.0) | -261.8 % | (110.7) | 16.5 | (127.2) | -770.9 % | ||
| Share of loss of associate | 1.1 | – | 1.1 | 100.0 % | 2.3 | – | 2.3 | 100.0 % | ||
| Earnings (loss) before income taxes | 85.3 | (3.8) | 89.1 | 2344.7 % | 209.9 | 86.4 | 123.5 | 142.9 % | ||
| Income taxes | 1.9 | 9.1 | (7.2) | -79.1 % | 22.1 | 21.0 | 1.1 | 5.2 % | ||
| Net earnings (loss) | 83.4 | (12.9) | 96.3 | 746.5 % | 187.8 | 65.4 | 122.4 | 187.2 % | ||
| Earnings (loss) per share | ||||||||||
| Basic | 4.84 | (0.74) | 5.58 | 754.1 % | 10.86 | 3.82 | 7.04 | 184.3 % | ||
| Diluted | 4.77 | (0.74) | 5.51 | 744.6 % | 10.64 | 3.73 | 6.91 | 185.3 % | ||
| Adjusted (1) | 2.18 | 1.39 | 0.79 | 56.8 % | 6.00 | 3.83 | 2.17 | 56.7 % | ||
| EBITDA (2) | 128.4 | 33.4 | 95.0 | 284.4 % | 331.0 | 196.0 | 135.0 | 68.9 % | ||
| EBITDA margin (2) – (%) | 55.2 % | 17.6 % | 37.6 % | 46.4 % | 37.6 % | 8.8 % | ||||
| Adjusted EBITDA (2) | 82.1 | 70.9 | 11.2 | 15.8 % | 246.1 | 202.5 | 43.6 | 21.5 % | ||
| Adjusted EBITDA margin (2) – (%) | 35.3 % | 37.4 % | -2.1 % | 34.5 % | 38.8 % | -4.3 % | ||||
| Adjusted free cash flow (2) | $47.9 | $51.1 | ($3.2) | -6.3 % | $135.4 | $122.3 | $13.1 | 10.7 % | ||
| Return on invested capital (3) | 9.7 % | 14.0 % | -4.3 % | 13.4 % | 14.4 % | -1.0 % | ||||
| Adjusted return on invested capital (8) | 12.7 % | 16.1 % | -3.4 % | 16.5 % | 15.9 % | 0.6 % | ||||
| Operating days (5) | 50 | 49 | 1.0 | 2.0 % | 149 | 149 | – | – | ||
| Average domestic network revenue per operating day (6) | 1.82 | 1.53 | 0.29 | 19.0 % | 1.74 | 1.49 | 0.25 | 16.8 % | ||
| Block hours (7) | 18,067 | 14,855 | 3,212 | 21.6 % | 53,640 | 41,406 | 12,234 | 29.5 % | ||
| B757-200 | 12 | 9 | 3 | – | 12 | 9 | 3 | – | ||
| B767-200 | 4 | 4 | – | – | 4 | 4 | – | – | ||
| B767-300 | 18 | 16 | 2 | – | 18 | 16 | 2 | – | ||
| Passenger aircraft | 4 | 2 | – | – | 4 | 2 | – | – | ||
| 38 | 31 | 7 | 22.6 % | 38 | 31 | 7 | 22.6 % |
| 1. | Adjusted EPS is not an earning measure recognized by IFRS and is defined as earnings per share from continuing operations before fair value increase (decrease) on stock warrant, losses (gains) on swap derivatives, amortization on stock warrants and unrealized foreign exchange losses (gains). |
| 2. | EBITDA, Adjusted EBITDA, and Adjusted Free Cash Flow are non-GAAP financial measures and are not earning measures recognized by IFRS. Prior year amounts have been restated to reflect the revised definitions of Adjusted EBITDA. Please refer to the “Non-GAAP measures” section on page 16 of this MD & A for a more detailed discussion and a reconciliation of these non-GAAP financial measures to the nearest GAAP measure. |
| 3. | Return on invested capital is not an earning measure recognized by IFRS. See page 15 for detailed calculation. |
| 4. | The definitions for the Operating statistics included in this table are provided in the notes below. |
| 5. | Operating days refer to the Company’s domestic network air cargo network operations that run primarily on Monday to Friday with a reduced network operating on Friday. |
| 6. | Average domestic network revenue per operating day refers to total domestic network revenues earned by the Company per operating day. |
| 7. | Block hours refers to the total duration of a flight from the time the aircraft releases its brakes when it initially moves from the airport parking area prior to flight, to the time the brakes are set when it arrives at the airport parking area after the completion of the flight. |
| 8. | Adjusted return on invested capital is not an earning measure recognized by IFRS and is defined as ratio of annualized net operating profit after tax to average invested capital for operating revenues (Average invested capital reduced by Average invested capital under development). |
Cargojet Provides Strategic Updates and Long-term Targets
MISSISSAUGA, ON, Sept. 27, 2022 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) today provided an update on its strategic initiatives and long-term financial targets.
Today Cargojet is hosting its previously announced Investor Day from 10 a.m. to 12:30 p.m. ET. A live audio feed of Investor Day will be available via dial-in information announced last week and a replay of the event, along with an updated investor presentation, can be accessed on the Investor Presentation section of Cargojet’s website at: http://cargojet.com/financials-page/.
“We believe our customer-centric focus, industry-leading on-time performance, our team of dedicated professionals and a strong balance sheet will allow us to continue to diversify our portfolio of services and position us well to face emerging macro headwinds,” said Ajay Virmani, President and Chief Executive Officer. “With our third quarter almost complete, our volumes remain stable and in line with our expectations.”
Cargojet is expected to reach a new milestone of a fleet size of 40 aircraft by the end of 2022, allowing it to expand its domestic overnight network to 16 Canadian cities, reaching more than 90% of Canadian population each day. The expanded fleet will also allow Cargojet to serve additional routes on its ACMI network for its strategic customers.
The Corporation is providing the following long-term financial targets for 2026:
- Total Revenue estimated to be between $1.3 billion to $1.4 billion (2021 Total Revenue $758 million);
- Adjusted EBITDA estimated between $500 million and $550 million (2021 Adjusted EBITDA $293 million);
- Adjusted Free Cashflow estimated between $320 million and $360 million (2021 Adjusted Free Cash Flow $160); and
- Net Debt to Adjusted EBITDA Leverage Ratio* (Net Debt/Adjusted EBITDA) targeted at between 1.50 and 2.50 (2021 Leverage Ratio 1.03).
All references to “$” 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 34 aircraft.
Cargojet Wins Carrier of Choice Award
MISSISSAUGA, ON, Sept. 13, 2022 /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 is the only Canadian Air Cargo carrier to receive this honour for the twentieth 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 once again to the to the Cargojet team’s dedication, hard work and loyalty. Our professional team is the driving force of Cargojet,” says Dr. Ajay K. Virmani, President & CEO.
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.
Cargojet Successfully Recertifies ISO 9001 Quality Accreditation
MISSISSAUGA, ON, Aug. 25, 2022 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced the successful recertification of its ISO 9001:2015 Quality Standard Accreditation, for the twentieth consecutive year. Cargojet is the only air cargo carrier in Canada with this accreditation.
“This accreditation reinforces the continuity of the value added, safe, on time and reliable service Cargojet provides to its customers on a daily basis. It includes a review of an organization’s documented quality management system and ongoing audits of our facilities to ensure the quality management systems have been implemented and are effective,” says Dr. Ajay K. Virmani, President and CEO. “We have once again earned this certification due to the hard and conscientious efforts of our team who continue to surpass our customer’s expectations while maintaining excellence in standards, processes and procedures,” adds 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 34 aircraft.
Cargojet Boeing 767 must take evasive action if the glider drifts in its path
Web News • 20 August 2022
Cargojet Reports Strong Q2 Performance in all Business Segments
MISSISSAUGA, ON, July 27, 2022 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the second quarter ended June 30, 2022.
Total Revenues for the quarter were $246.6 million compared to second quarter 2021 Revenues of $172.1 million. Gross Margin for the quarter was $61.1 million compared to second quarter 2021 Gross Margin of $54.9 million. Adjusted EBITDA for the quarter was $81.1 million compared to the second quarter 2021 Adjusted EBITDA $67.4 million. Net income for the quarter was $160.9 million (net income of $26.2 million excluding warrant valuation gain) compared to net loss of $11.1 million in 2021 (net income of $23.6 million excluding warrant valuation loss).
Total revenue growth of 43.3% (31.9% excluding fuel surcharges) for the quarter compared to prior year reflected a strong contribution from the Domestic network, up 15.0%, ACMI, up 62.4% and All-in Charters, up 23.2% compared to same quarter last year. Continuing its strategic focus on diversification, Cargojet’s Domestic Network Revenue for the quarter now stands at 35.2% of total revenues compared to 43.8% for the same period in 2021.
Adjusted Free Cash Flow was $44.8 million for the three-month period ended June 30, 2022 compared to $36.0 million for the same period in 2021.
On July 22, 2022, Cargojet established a non-revolving USD $400 million Delayed-Draw Term Loan facility for general corporate purposes including the purchase of aircraft and other capital expenditures. Together with existing undrawn revolver, this brings Cargojet’s total liquidity to appx. $1 billion.
Macro uncertainties continue to impact air-cargo supply chains with passenger airlines facing extremely difficult operating conditions. The impact of rapidly shifting schedules and poor on-time performance of passenger airlines has further restricted the ability of cargo shippers to utilize belly space. This, combined with ongoing supply chain challenges, continues to provide opportunities for Cargojet to capture unmet demand in the medium term.
Furthermore, despite short term volatility, the secular shift to e-commerce continues to hold steady with demographics led long-term trends continuing to present Cargojet with long term growth opportunities.
“Unpredictability of belly space was the reason Cargojet was born over 20 years ago. From the first day of our existence, we have focused on doing just one thing – flying cargo. That’s our sole purpose and mission. We have built a brand that is trusted by our customers to keep its promises and the recent macro events have further strengthened our resolve to stay focused on serving our customers,” said Dr. Ajay Virmani, President and CEO.
“Yet, we are not immune to the global forces of high inflation, high fuel prices and geo political uncertainties. Therefore, we remain prudent in how we are approaching the next few quarters as we continue to balance investing in growth with maintaining a strong balance sheet,” concluded Dr. Virmani.
All references to “$” 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 34 aircraft.
Canadian Aviation News 
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