MISSISSAUGA, ON, Nov. 4, 2024 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the third quarter ended Sept 30, 2024.
Total revenue for the quarter was $245.6 million compared to third quarter 2023 revenue of $214.0 million. Revenue from domestic network, ACMI and All-in Charter for the quarter was $205.4 million compared to $177.7 million for the same period in 2023.
Adjusted EBITDA1 for the quarter was $82.2 million compared to the third quarter 2023 Adjusted EBITDA of $70.0 million. Net earnings for the quarter were $29.7 million compared to $10.5 million for the same period in 2023.
Cargojet generated Free Cash Flow1 of $47.8 million during the quarter compared to $29.8 million for the same period in 2023.
“The improving interest rate environment and controlled inflation are fostering a more stable and optimistic economic outlook for Canada which we believe bodes well for future domestic volumes”. “While geo-political challenges continue to affect the overall transportation industry, we continue to find opportunities that are creating new sustainable revenue streams in fast changing global commerce. Yet, Cargojet is not immune to the headwinds of significant cost increases facing the aviation and the supply chain sectors,” said Jamie Porteous, Co-Chief Executive Officer.
“During Q3, we grew block hours by nearly 15% with no change in fleet size. We are sharply focused on optimizing every aspect of our business to improve margins and deliver shareholder value,” said Pauline Dhillon, Co-Chief Executive Officer. “Our relentless focus on delivering best in class on-time performance continues to win new customers. As we prepare for peak holiday season in the coming quarter, I want to acknowledge the remarkable effort being put in by every team member to support our customers during the most important shopping season of the year,” concluded Pauline Dhillon.
| THIRD QUARTER RESULTS | |||||||||
| Financial highlights | Three Month Period Ended | Nine month period ended | |||||||
| September 30, | September 30, | ||||||||
| (Canadian dollars in millions, except where indicated) | 2024 | 2023 | Change | % | 2024 | 2023 | Change | % | |
| Domestic network, ACMI and charter revenues | $205.4 | $177.7 | $27.7 | 15.6 % | $577.7 | $519.2 | $58.5 | 11.3 % | |
| Total revenues | $245.6 | $214.0 | $31.6 | 14.8 % | $707.6 | $655.6 | $52.0 | 7.9 % | |
| Net earnings | $29.7 | $10.5 | $19.2 | 182.9 % | $37.2 | $72.2 | ($35.0) | -48.5 % | |
| Adjusted net earnings(1) | $23.6 | $2.6 | $21.0 | 807.7 % | $58.9 | $29.6 | $29.3 | 99.0 % | |
| EPS Diluted | $1.78 | $0.61 | $1.17 | 191.8 % | $2.27 | $3.99 | ($1.72) | -43.1 % | |
| Adjusted EPS(1) | $1.48 | $0.15 | $1.33 | 879.6 % | $3.59 | $1.71 | $1.88 | 109.9 % | |
| Adjusted EBITDA (1) | $82.2 | $70.0 | $12.2 | 17.4 % | $239.7 | $219.3 | $20.4 | 9.3 % | |
| Adjusted EBITDA margin (1) – (%) | 33.5 % | 32.7 % | 0.8 % | 33.9 % | 33.5 % | 0.4 % | |||
| Net cash from operating activities | $96.2 | $38.5 | $57.7 | 149.9 % | $225.0 | $160.4 | $64.6 | 40.3 % | |
| Free cash flow (1) | $47.8 | $29.8 | $18.0 | 60.4 % | $217.0 | $26.5 | $190.5 | 718.9 % | |
| (1) Non-GAAP measures. See “Non-GAAP Financial Measures” section. | |||||||||
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 cargo fleet of 41 aircraft.
| FINANCIAL INFORMATION AND OPERATING STATISTICS HIGHLIGHTS | |||||||||
| (Canadian dollars in millions, except where indicated) | |||||||||
| Three Month Period Ended | Nine month period ended | ||||||||
| September 30, | September 30, | ||||||||
| 2024 | 2023 | Change | % | 2024 | 2023 | Change | % | ||
| Domestic network, ACMI and charter revenues | $205.4 | $177.7 | $27.7 | 15.6 % | $577.7 | $519.2 | $58.5 | 11.3 % | |
| Fuel surcharge and other revenues | $44.6 | $39.0 | $5.6 | 14.4 % | $145.0 | $146.1 | ($1.1) | -0.8 % | |
| Total revenues excluding warrant amortization | $250.0 | $216.7 | $33.3 | 15.4 % | $722.7 | $665.3 | $57.4 | 8.6 % | |
| Amortization of stock warrant contract assets | ($4.4) | ($2.7) | ($1.7) | 63.0 % | ($15.1) | ($9.7) | ($5.4) | 55.7 % | |
| Total revenues | $245.6 | $214.0 | $31.6 | 14.8 % | $707.6 | $655.6 | $52.0 | 7.9 % | |
| Direct expenses | $183.2 | $180.5 | $2.7 | 1.5 % | $555.4 | $534.0 | $21.4 | 4.0 % | |
| Gross margin | $62.4 | $33.5 | $28.9 | 86.3 % | $152.2 | $121.6 | $30.6 | 25.2 % | |
| Gross margin – (%) | 25.4 % | 15.7 % | 9.7 % | 21.5 % | 18.5 % | 3.0 % | |||
| Selling, general and administrative expenses | $24.3 | $15.2 | $9.1 | 59.9 % | $65.3 | $47.4 | $17.9 | 37.8 % | |
| Net finance costs and other gains and losses | $2.2 | $8.6 | ($6.4) | -74.4 % | $27.4 | ($1.1) | $28.5 | 2590.9 % | |
| Share of gain in associate | ($0.3) | ($0.3) | – | – | ($0.9) | ($0.1) | ($0.8) | -800.0 % | |
| Earnings before income taxes | $36.2 | $10.0 | $26.2 | 262.0 % | $60.4 | $75.4 | ($15.0) | -19.9 % | |
| Income taxes | 6.5 | ($0.5) | $7.0 | -1400.0 % | $23.2 | $3.2 | $20.0 | 625.0 % | |
| Net earnings | $29.7 | $10.5 | $19.2 | 182.9 % | $37.2 | $72.2 | ($35.0) | -48.5 % | |
| Adjusted net earnings(1) | $23.6 | $2.6 | $21.0 | 807.7 % | $58.9 | $29.6 | $29.3 | 99.0 % | |
| Earnings per share | |||||||||
| Basic | $1.85 | $0.61 | $1.24 | 203.3 % | $2.27 | $4.20 | ($1.93) | -46.0 % | |
| Diluted | $1.78 | $0.61 | $1.17 | 191.8 % | $2.27 | $3.99 | ($1.72) | -43.1 % | |
| Adjusted(1) | $1.48 | $0.15 | $1.33 | 879.6 % | $3.59 | $1.71 | $1.88 | 109.9 % | |
| Adjusted EBITDA (1) | $82.2 | $70.0 | $12.2 | 17.4 % | $239.7 | $219.3 | $20.4 | 9.3 % | |
| Adjusted EBITDA margin (1) – (%) | 33.5 % | 32.7 % | 0.8 % | 33.9 % | 33.5 % | 0.4 % | |||
| Net cash from operating activities | $96.2 | $38.5 | $57.7 | 149.9 % | $225.0 | $160.4 | $64.6 | 40.3 % | |
| Free cash flow (1) | $47.8 | $29.8 | $18.0 | 60.4 % | $217.0 | $26.5 | $190.5 | 718.9 % | |
| Operating statistics (2) | |||||||||
| Operating days (3) | 49 | 50 | (1) | -2.0 % | 149 | 149 | – | – | |
| Average domestic network revenue per operating day (4) | 1.91 | 1.78 | 0.13 | 7.3 % | 1.83 | 1.70 | 0.13 | 7.6 % | |
| Block hours (5) | 18,928 | 16,472 | 2,456 | 14.9 % | 53,866 | 51,121 | 2,745 | 5.4 % | |
| B757-200 | 17 | 15 | 2 | 17 | 15 | 2 | |||
| B767-200 | 3 | 3 | – | 3 | 3 | – | |||
| B767-300 | 21 | 21 | 0 | 21 | 21 | 0 | |||
| Cargo operating fleet | 41 | 39 | 2 | 5.1 % | 41 | 39 | 2 | 5.1 % | |
| Head count | 1,892 | 1,808 | 84 | 4.6 % | 1,892 | 1,808 | 84 | 4.6 % | |
