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

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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 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.

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.