Cargojet Announces Scott Calver as Chief Financial Officer

MISSISSAUGA, ON, May 10, 2022 /CNW/ – (TSX: CJT.UN) today announced that Scott Calver, who most recently served as the Chief Financial Officer of Trimac Transportation (TSX:TMA until 2016) will join Cargojet as its new Chief Financial Officer. Mr. Calver comes to Cargojet with significant financial executive experience including capital markets and operational management in the transportation and logistics sector. Prior to Trimac, Mr. Calver served as Vice President, Finance for ICS Courier (TSX:CH) from 2004 to 2008.

Mr. Calver is a native of London, Ontario and a Chartered Professional Accountant. He completed his Bachelor of Commerce degree from Laurentian University and Masters in Business Management from Richard Ivey School of Business. Mr. Calver also serves on the Board of Meals on Wheels, Calgary and has previously served on several charity and philanthropic organizations.  

“I have always admired Cargojet’s entrepreneurial spirit and watched its success over the past decade with much interest. When the opportunity came to be part of such a talented team, I jumped at it. I look forward to contributing to the next phase of Cargojet’s growth.” commented Mr. Calver.

“Scott not only brings strong financial and operational skills; he also brings over 20 years of transportation and logistics industry experience. Strengthening top talent has been a key priority for us and Scott’s addition to our executive team is another example of our focus on talent” said Ajay Virmani, President and CEO. “We are excited to have Scott move into this important role; his valuable insights and financial expertise will directly and significantly contribute to Cargojet’s growth strategy.” added Mr. 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 32 cargo aircraft. 

Cargojet Increases Quarterly Dividend by 10%

MISSISSAUGA, ON, May 9, 2022 /CNW/ – the Board of Directors of Cargojet Inc. has declared a cash dividend of $0.2860 per common voting share and variable voting share for the period from April 1, 2022, to June 30, 2022, an increase of $0.0260 or 10.0% per share from the previous quarter.

“This increase in the cash dividend reinforces our commitment to return value to our shareholders,” said Dr. Ajay Virmani, President and Chief Executive Officer.  “It is also consistent with our capital allocation plan to periodically increase cash returns to our shareholders”, he added.

The dividends will be paid to all shareholders of record as at the close of business on June 20, 2022, and will be payable on or before July 5, 2022.  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 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 32 aircraft.

Cargojet Kicks Off the Year with a Strong Q1

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.

Cargojet announces long-term strategic agreement with DHL to provide global air-transportation services

DHL to utilize Cargojet’s entire portfolio of services to support its growth

DHL to receive warrants, with vesting tied to achievement of commercial milestones up to C$2.3 billion in business volume over 7 years

MISSISSAUGA, ON, March 29, 2022 /CNW/ – March 29, 2022 â€“ Cargojet Inc. (“Cargojet“) (TSX: CJT) announced today that it has entered into a new long-term strategic agreement (the “Agreement“) with DHL Network Operations (USA) Inc. (“DHL“), an affiliate of Deutsche Post DHL Group (the “Group“) (XETRA: DPW.DE), for a term of five years with a renewal option for an additional two years, to provide air-transportation services for DHL’s global network.

The Agreement is expected to be meaningfully accretive to Cargojet’s earnings and cash flows over time and help Cargojet further diversify its portfolio of services in line with its previously announced strategic goal of achieving a balanced portfolio.

Under the Agreement, Cargojet will provide ACMI, CMI, charter, and aircraft dry lease services to DHL to support DHL’s international requirements for Europe and North, South, Central and Latin America, as well as Asia. Cargojet utilizes 12 freighters to service DHL’s current requirements.  DHL intends to add 5 additional B-767 freighters during the 2022-23 timeframe to fulfill DHL’s anticipated network requirements. Additionally, DHL intends to be Cargojet’s inaugural launch customer for the state-of-the-art B-777 wide body long-range cargo aircraft, which are expected to be deployed in late 2023 or early 2024.

“Earning the trust and confidence of Deutsche Post DHL Group is a remarkable milestone in Cargojet’s journey. We are even more excited about the opportunity to add value and earn the right to be a long-term strategic partner each and every day.” said Chief Executive Officer Dr. Ajay Virmani. “This strategic partnership is a real tribute to our people who have worked extremely hard all through the pandemic while maintaining the industry best on-time performance and flexibility that has allowed us to earn this business”.

Cargojet’s international and ACMI growth will be led and managed by its international team of specialists while Cargojet’s current core team will continue to focus on delivering excellence within its existing and growing domestic network. As the Cargojet fleet grows and it benefits from the scale of operation, Cargojet remains committed to providing cost effective, flexible and competitive air-cargo services to all customers.

“DHL’s international aviation network is a true competitive differentiator and an enabler of growth for our customers. Cargojet’s “customer first” culture has added flexibility and resilience to our network,” said Travis Cobb, EVP, Global Network Operations & Aviation, DHL Express. “A longer-term strategic alignment with Cargojet will bring additional capacity and allow us to continue delivering the highest levels of service quality to the market.”

“Cargojet is an important aviation partner of DHL in North America and we see this expansion of our relationship further strengthening intra-regional and intercontinental links to and from this region,” said Mike Parra, CEO, DHL Express Americas. “Its versatile cargo fleet and high on-time reliability positions us well to further capitalize on the dynamically growing e-commerce market, in particular. This step builds on the significant investments we have made in DHL’s aviation capacity and capabilities over the last two years in the Americas.”

In addition, to align interests and strengthen the long-term strategic relationship, Cargojet will issue to DHL warrants to acquire up to 9.5 percent of Cargojet’s outstanding voting shares (on a non-diluted basis as of the date hereof) at a price of C$158.92 per share (based on the 20-day volume weighted average trading price immediately prior to the date hereof) over a period of seven years, with vesting tied to the delivery by DHL of up to C$2.3 billion1 in business volume during the same term.

About DHL:

DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.

DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 81 billion euros in 2021. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group aims to achieve zero-emissions logistics by 2050.

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 cargo aircraft.

Revenue Diversification Strategy Continues to Deliver

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 and Adjusted EBITDAR for the quarter were $90.5 million compared to the fourth quarter 2020 Adjusted EBITDA and Adjusted EBITDAR 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 and Adjusted EBITDAR for the year were $293.1 million compared to the 2020 Adjusted EBITDA and Adjusted EBITDAR 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 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. 

Cargojet Renews Air Cargo Services Agreements with Major Domestic Customers

MISSISSAUGA, ON, Jan. 10, 2022 /CNW/ – Cargojet (“CJT”) announced today the early renewal and extension of the Air Cargo Services Agreement with two major domestic customers. The agreements will run for a three-year term and contain two (2) one year renewal options. The original agreements were due for renewal in 2021 and in July 2022. This is another example of customers continuing to secure long-term capacity on Cargojet’s air cargo network considering structural shifts in the nature of supply chains which are leading to significant growth in demand for time-sensitive air cargo services across Canada.

Cargojet will continue to be the exclusive provider of the overnight air cargo services in Canada for these customers. The total revenues represented by these contract renewals are estimated over $150 million during the term of the new agreements, including the extension options.  

“Cargojet is extremely pleased to have been successful in extending the exclusive domestic air cargo service agreements with two strong Canadian logistics providers. The confidence that our customers place in Cargojet is a testament to the high level of reliability and cost-effective air cargo services that we have consistently provided over the past twenty-years”, said Dr. Ajay Virmani President and CEO of Cargojet.  “We will continue to work closely with all of our customers to provide the most flexible; the most reliable and the most scalable air cargo network in Canada”, 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, 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 Cargo aircraft.

Cargojet order launches Mammoth 777-200LR freighter programme

From Flight Global – link to source story

By David Kaminski-Morrow | 17 November 2021

Canadian carrier Cargojet Airways has emerged as the launch customer for the Boeing 777-200LR freighter conversion initiated by US-based Mammoth Freighters.

Cargojet is to take a pair of the converted twinjets, and will hold options on another pair – as well as options for two conversions of the larger 777-300ER.

The first aircraft to be delivered to Cargojet will be a modified 777-200LR with serial number 29742, originally delivered to Delta Air Lines in 2009.

Mammoth says the twinjet, fitted with General Electric GE90 engines, will enter the conversion process in mid-2022 and be delivered in the second half of 2023.

The company unveiled its conversion programme for the two 777 models in September, noting it had acquired access to a feedstock of Delta 777-200LRs.

Mammoth 777-200LR freighter-c-Mammoth Freighters
Source: Mammoth Freighters

Mammoth has access to ex-Delta 777-200LR feedstock for its initial freighters

Mammoth’s freighter conversions will carry the -200LRMF and -300ERMF designations.

Cargojet’s agreement will enable Mammoth to “demonstrate the significance” of its product, says Mammoth co-chief Bill Tarpley.

“This is the next generation of converted freighters that have improved on-wing performance while using less fuel and emitting less carbon than the current ageing widebody fleet.”

Cargojet, which operates from Hamilton airport near Toronto, has a fleet of over 30 freighters, mainly based on Boeing 767-200, -300 and 757-200 platforms.

It had stated earlier this year that it intended to acquire 777 freighters but, at the time, had not signalled whether they would be new-build or converted aircraft.

Cargojet said it would use the 777s on long-haul Asian routes, integrating them with the airline’s domestic network.