MISSISSAUGA, ON, Nov. 13, 2023 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) Board of Directors is pleased to announce a significant leadership transition. After launching Cargojet 22 years ago as Founder and Chief Executive Officer, Dr. Ajay Virmani will be stepping into the role of Executive Chairman effective January 1, 2024 and the Corporation has announced leadership appointments in a separate announcement. This strategic move reflects Dr. Virmani’s dedication to the company’s long-term success and the need to ensure a seamless transition in the leadership.

Dr. Ajay Virmani, who has served as the CEO since its inception in 2001, along with the team he built, has been instrumental in Cargojet’s remarkable journey from a start-up to Canada’s #1 cargo airline. Just last week Dr. Virmani was appointed to the Order of Ontario.  The Globe and Mail honored Dr. Virmani as the CEO-Strategist of the year in 2020. In 2004, Dr. Virmani was awarded the “Entrepreneur of the Year award” by Ernst & Young. Recognizing his entrepreneurial and philanthropic contribution to Canada, he was inducted into Canada’s Walk of Fame with his own star in 2021. Cargojet and its leadership has also been recognized as the 50 Best Managed Companies by Deloitte’s and has been a consistent winner of Canada’s Best Cargo Airline award 21 years running.

Under Dr. Virmani’s visionary and entrepreneurial leadership, the company operates a fleet of over 40 Aircraft and consistently posted remarkable financial results. Cargojet has grown its revenues at 16% and EBITDA at 20% compound annual rate over the past 20 years. The world’s top courier brands, integrators, freight forwarders and E-Commerce platforms have partnered with Cargojet to fulfil their middle-mile air requirements. Cargojet’s shareholder have been handsomely rewarded with 18%* compound annual return since its IPO in 2005.

In Dr. Virmani’s new role as Executive Chairman, he will continue to play a pivotal role in shaping the company’s future. He will focus on Strategy, Strategic Customer Partnerships, Acquisitions of major Assets including aircraft and Corporate Governance while also acting as a mentor for emerging talent. This transition allows Dr. Virmani to leverage his extensive experience and deep industry knowledge to guide the board and senior leadership team.

“Everything we have done at Cargojet has been against odds. Starting an airline after 9/11; Convincing global package delivery brands that it is more efficient to abandon their own aircraft fleets in favour of Cargojet’s network; Surviving the 2007-08 global financial crisis, and more recently tackling once in a 100-year pandemic.” said Dr. Ajay Virmani. “As I look back at the Cargojet journey, I am filled with gratitude for the opportunity to work with an amazing team of dedicated and hard-working professionals who have built Cargojet into Canada’s #1 Cargo Airline.  I am looking forward to the opportunity to continue to serve as Executive Chairman of this great team and help develop the next generation of leaders who will continue to beat the odds.” Concluded Dr. Virmani.

“We are extremely grateful to Dr Virmani for his vison, passion and contributions towards the tremendous success Cargojet has achieved. The transition to Executive Chairman by Dr. Virmani is a testament to his unwavering commitment to Cargojet, its excellent team and its potential. The Company remains committed to providing world class Cargo services safely while exceeding customer expectations,” said Paul Godfrey Interim Chair of the Board on behalf of all the Directors.

The Board of Directors and the entire Cargojet family extend their heartfelt appreciation to Dr. Virmani for his outstanding leadership as a Founder and CEO and they look forward to his continued guidance in his new role as Executive Chairman, confident that this transition will mark a new chapter in Cargojet’s ongoing success story.

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 a fleet of over 40 aircraft. 

MISSISSAUGA, ON, Nov. 7, 2023 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the third quarter ended September 30, 2023.

Total Revenues for the quarter were $214.0 million compared to third quarter 2022 Revenues of $232.7 million. Revenues, excluding fuel, was $177.7 million compared to $175.6 million. Adjusted EBITDA for the quarter was  $70.0 million compared to the third quarter 2022 Adjusted EBITDA of  $82.1 million. Net earnings for the quarter was $10.5 million (net loss of $6.8 million excluding warrant valuation gain) compared to net earnings of $83.4 million in 2022 (net loss of $1.9 million excluding warrant valuation gain).

Strong cash flow focus generated an Adjusted Free Cash Flow of  $94.5 million for the three-month period ended September 30, 2023 compared to   $47.9 million for the same period in 2022. Net cash generated from operating activities of  $39.4 million for the three-month period ended September 30, 2023, compared to  $77.9 million for the same period in 2022.

“Higher interest rates are starting to impact the household disposable incomes and we are observing a division in household spending. The volumes for discretionary items are softening but the volumes for essential household goods are holding up well. A positive revenue growth in this environment demonstrates the resilience of our diversified business model.” said Dr. Ajay Virmani, President and CEO. “We are prudently trimming capital expenditures and the entire Cargojet team is diligently working on identifying every cost saving opportunity. As we further sharpen our operating model, we are squarely focused on strengthening our relationships with strategic customers by meeting their changing needs and delivering the industry best on-time performance,” noted Dr. Virmani.  “Our on-time performance was 99.5% in the Quarter thanks to the dedication, professionalism and hard work of the entire Cargojet team”.

As announced in a separate press release issued today, the Corporation has implemented a normal course issuer bid (“NCIB”) in respect of its common voting shares and variable voting shares (together, the “Shares”) because it believes that, from time to time over the next 12 months, the market price of the Shares may not fully reflect the underlying value of the Shares and that at such times the purchase of the Shares would be in the best interests of the Corporation. Any purchases made under the NCIB, which will begin on November 9, 2023, and end no later than November 8, 2024, are made by Cargojet subject to favourable market conditions at the prevailing market price at the time of acquisition through the facilities of the TSX and/or alternative Canadian trading systems.

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 cargo fleet of 39 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
	September 30,
	2023	2022
	(unaudited)	(unaudited)
Calculation of EBITDA and Adjusted EBITDA
Net earnings	$10.5	$83.4
Add:
Interest	16.2	7.4
Provision of deferred taxes	(0.5)	1.9
Depreciation of property,plant and equipment	46.6	35.7
EBITDA	72.8	128.4
Add:
Share-based compensation	2.4	5.0
Gain on sale of property,plant and equipment	2.0	(0.1)
Loss (gain) on swap derivative	6.8	(6.1)
Unrealized foreign exchange gain	1.6	2.6
Fair value adjustment on warrant valuation and amortization of contract assets	(15.3)	(48.8)
Share of (gain) loss of associate	(0.3)	1.1
Adjusted EBITDA	70.0	82.1
Calculation of Standardized Free Cash Flow and Adjusted Free Cash Flow
NET CASH GENERATED FROM OPERATING ACTIVITIES	39.4	77.9
Less: Maintenance capital expenditures	(25.1)	(34.2)
Add: Proceeds from disposal of property,plant and equipment	59.3	0.1
Standardized free cash flow	73.6	43.8
Changes in non-cash working capital items and deposits	20.9	4.1
Adjusted free cash flow	$94.5	$47.9

Selected Financial Information and Operating Statistics Highlights

Financial Information and Operating Statistics Highlights
(Canadian dollars in millions, except where indicated)
			Three Month Period Ended					Nine month Ended
			September 30,					September 30,
			2023	2022	Change	%		2023	2022	Change	%
	Domestic network, ACMI and charter revenues		$177.7	$175.6	$2.1	1.2 %		$519.2	$532.4	($13.2)	-2.5 %
	Fuel surcharge and other revenues		$36.3	$57.1	($20.8)	-36.4 %		$136.4	$180.5	($44.1)	-24.4 %
	Total revenues		$214.0	$232.7	($18.7)	-8.0 %		$655.6	$712.9	($57.3)	-8.0 %
	Direct expenses		$180.5	$175.1	$5.4	3.1 %		$534.0	$527.3	$6.7	1.3 %
	Gross margin		$33.5	$57.6	($24.1)	-41.8 %		$121.6	$185.6	($64.0)	-34.5 %
	Gross margin – (%)		15.7 %	24.8 %	-9.1 %			18.5 %	26.0 %	-7.5 %
	Selling, general and administrative expenses		$15.2	$13.4	$1.8	13.4 %		$47.4	$44.2	$3.2	7.2 %
	Net finance costs and other gains and losses		$8.6	($42.2)	$50.8	120.4 %		($1.1)	($70.8)	$69.7	98.4 %
	Share of (gain) loss of associate		($0.3)	$1.1	($1.4)	-127.3 %		($0.1)	$2.3	($2.4)	-104.3 %
	Earnings before income taxes		$10.0	$85.3	($75.3)	-88.3 %		$75.4	$209.9	($134.5)	-64.1 %
	Income taxes		($0.5)	$1.9	($2.4)	126.3 %		$3.2	$22.1	($18.9)	-85.5 %
	Net earnings		$10.5	$83.4	($72.9)	-87.4 %		$72.2	$187.8	($115.6)	-61.6 %
	Earnings (loss) per share
	Basic		$0.61	$4.84	($4.23)	-87.4 %		$4.20	$10.86	($6.66)	-61.3 %
	Diluted		$0.61	$4.33	($3.72)	-85.9 %		$3.99	$9.82	($5.83)	-59.4 %
	Adjusted		$0.30	$2.18	($1.88)	-86.2 %		$2.20	$6.00	($3.80)	-63.3 %
	EBITDA		$72.8	$128.4	($55.6)	-43.3 %		$245.1	$331.0	($85.9)	-26.0 %
	EBITDA margin – (%)		34.0 %	55.2 %	-21.2 %			37.4 %	46.4 %	-9.0 %
	Adjusted EBITDA		$70.0	$82.1	($12.1)	-14.7 %		$219.3	$246.1	($26.8)	-10.9 %
	Adjusted EBITDA margin – (%)		32.7 %	35.3 %	-2.6 %			33.5 %	34.5 %	-1.0 %
	Adjusted free cash flow		$94.5	$47.9	$46.6	97.3 %		$189.4	$131.8	$57.6	43.7 %
	Operating statistics
	Operating days		50	50	–	–	$	149	149	–	–
	Average domestic network revenue per operating day		1.78	1.84	(0.06)	-3.3 %	0	1.70	1.77	(0.07)	-4.0 %
	Block hours		16,472	18,067	(1,595)	-8.8 %	0	51,121	53,640	-2,519	-4.7 %
	B757-200		15	12	3			15	12	3
	B767-200		3	2	1			3	2	1
	B767-300		21	18	3			21	18	3
	Cargo operating fleet		39	32	7	21.9 %	0	39	32	7	21.9 %
	Head count		1808	1718	90	5.2 %	0	1808	1718	90	5.2 %

October 19, 2023

Mississauga, – Cargojet has recently renewed its International Air Transport Association (IATA) Operational Safety Audit (IOSA) registration. IOSA is an internationally recognized and accepted evaluation system designed to assess the operational management and control systems of an airline. IOSA uses internationally recognized quality audit principles to conduct audits in a standardized and consistent manner.

IATA’s mission is to represent, lead and serve the airline industry. Its approximately 300 airline members account for 83 percent of total air traffic. Cargojet is very proud to be the only Canadian all-cargo carrier that is a full member of IATA.

“The audit is an in-depth look at the practices and standards of the airline with the end goal of meeting a common, worldwide standard for safety in everything we do, our audit team has once again done a tremendous job in working with the auditors to demonstrate conformance with IOSA standards” according to Dr. Ajay K. Virmani, President & CEO. “We fully support the continuous updating of standards to reflect regulatory revisions and the evolution of best practices within the worldwide airline industry under the continuing stewardship of IATA”, adds Virmani.

We want to recognize and thank our team of dedicated professionals for their continuous efforts, hard work, and dedication to Cargojet.

Cargojet is a global leading provider of time-sensitive premium 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 serving 15 major cities, and selected international destinations, utilizing a fleet of 37 all-cargo aircraft.

MISSISSAUGA, ON, Aug. 14, 2023 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the Second quarter ended June 30, 2023.

Total Revenues for the Quarter were $209.7 million compared to second quarter 2022 Revenues of $246.6 million. Revenue excluding fuel surcharge and other revenues came in at $171.6 million compared to $177.2 million. Adjusted EBITDA for the quarter was  $74.3 million compared to the second quarter 2022 Adjusted EBITDA  $81.1 million. Adjusted Free Cash Flow was $52.3 million for the three-month period ended June 30, 2023 compared to  $41.2 million for the same period in 2022.

 Net income for the quarter was $31.1 million (net loss of $1.7 million excluding warrant valuation gain) compared to net income of $160.9 million in 2022 (net income of $26.2 million excluding warrant valuation gain).

“To prepare Cargojet to ride the current economic cycle, we shifted our focus to cost management as well as right sizing our network, while curtailing growth CapEx and focusing on generating free cash flow. Our EBITDA margin of 35.4% in this quarter vs. 32.9% prior year clearly demonstrates that our cost management initiatives are yielding the desired results,” said Dr. Ajay Virmani, President and CEO.

“While we expect economic conditions to remain difficult, the shift in consumer spending towards travel and leisure vs goods is expected to normalize towards the end of this year. The Cargojet team continues to be industry leaders providing a 99.6% on-time performance in the quarter.  Our focus remains on delivering exceptional reliability and customer service” noted 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 40 aircraft.

MISSISSAUGA, ON, July 20, 2023 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) Cargojet announced the successful recertification of its ISO 9001:2015 Quality Standard Accreditation, for the twenty-first 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 40 aircraft.