Provided by Cargojet Inc/CNW

MISSISSAUGA, ON, Aug. 23, 2019 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX:CJT) announced today that it has entered into a new strategic agreement with Amazon.com NV Investment Holdings LLC, an affiliate of Amazon.com.ca, Inc. Cargojet is a key air cargo carrier for Amazon’s middle mile transportation in Canada. This agreement is in conjunction with Amazon’s and Cargojet’s existing commercial agreement for overnight air cargo services and charters and to incentivize growth in Amazon’s utilization of those services to support fast delivery for Amazon customers in Canada. Under the new strategic agreement, Cargojet will issue warrants to Amazon to purchase variable voting shares that will vest based on the achievement of commercial milestones related to Amazon’s business with Cargojet. Cargojet expects the agreement to generate additional revenue growth and be meaningfully accretive to Cargojet’s earnings and cash flows over time.

Amazon utilizes Cargojet’s overnight air network and charter aircraft services to move packages from Amazon facilities to other Amazon or last mile carrier locations before final delivery to customers. Speed and reliability in this component of the logistics network are critical for enabling consistent delivery performance for Amazon customers across Canada.

“Cargojet’s entrepreneurial culture, combined with our core values of strong customer focus, have enabled Cargojet’s customers to deliver and fulfill on their e-Commerce promises. This agreement will support Cargojet further solidify its vision and strong leadership in the air cargo industry,” said Chairman of the Board James R. Crane.

“The commercial relationship the Cargojet team continues to build with Amazon has now allowed us to further strengthen and align our long-term strategic commercial interests. Our continuous commitment to provide value added services enables us to earn all of our customers’ trust as the leading overnight air-network operator,” added Chief Executive Officer Ajay Virmani.

“Cargojet has been a key player in our Canadian middle mile operations for several years,” said Adam Baker, Vice President Global Transportation, Amazon. “We’re thrilled to build a longer-term relationship that will allow us to provide even faster service to Amazon customers in Canada.”

Growth in e-commerce and recent industry announcements for even faster deliveries as well as 7 days-a-week deliveries will drive Cargojet to further strengthen its premium domestic network.  Cargojet plans, over time, to add more non-stop flights allowing later departures and earlier arrivals to the 15 major cities that Cargojet already serves and to add new cities on its overnight network. These service and frequency enhancements will be available to all Cargojet customers, and will expand Cargojet’s reach to approximately 95% of the Canadian population. This optimized network will further improve fleet utilisation, create additional opportunities, and continue to help Cargojet enhance its customer-neutral, cost effective network for all its customers.

As part of the agreement, Cargojet will issue the warrants to Amazon in two tranches. The first tranche of warrants allows Amazon to acquire up to 9.9 percent of Cargojet’s variable voting shares at an exercise price of $91.78 per share, comprising the 30-day volume weighted average trading price (“VWAP”) immediately prior to the date of the agreement.  The first tranche of warrants will vest over a period of six and a half years, with vesting tied to the delivery by Amazon of up to C$400 million in business volumes during the same term.

Amazon will also receive additional warrants to acquire up to an additional 5 percent of Cargojet’s variable voting shares with vesting tied to the delivery by Amazon of up to an additional C$200 million in business volumes after the first tranche of warrants is fully vested. The vesting period for the second tranche of warrants will continue for an additional year, making the aggregate term of all the warrants equal to seven and a half years from the date of the agreement. The exercise price of the second tranche of warrants will be set two years after the date of the agreement using the 30 day VWAP immediately prior to the second anniversary of the agreement (or, if earlier, the date on which the first tranche of warrants is vested in full).

Provided by Cargojet Inc/CNW

MISSISSAUGA, ON, July 31, 2019 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT, CJT.A) announced today financial results for the quarter ended June 30, 2019.

For the Second Quarter Ended June 30, 2019:

• Total Revenues were $119.1 million, an increase of $10.1 million or 9.3% versus the previous year
• Gross Margin was $26.6 million, an increase of $1.1 million or 4.3% versus the previous year
• Adjusted EBITDA was $37.5 million, an increase of $8.7 million or 30.2% versus the previous year
• Adjusted EBITDAR was $37.8 million, an increase of $5.7 million or 17.8% versus the previous year

“A strong financial discipline combined with continued strength in our core business allowed us to post another strong Quarter,” said Ajay Virmani, President and Chief Executive Officer. “As the courier industry shifts to 7 days-a-week delivery model to accommodate faster service expectations of e-Commerce retailers, we are uniquely positioned to execute on this new model.  We are also finding growing synergistic opportunities in our ad hoc and ACMI charter business that is improving fleet utilization and overall margins. At the heart of our strategy is service excellence and I am extremely proud of Cargojet team that continues to exceed customer expectation by delivering unprecedented on-time performance,”  he concluded.

Cargojet is Canada’s leading provider of time sensitive 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, utilizing a fleet of all-cargo aircraft. For more information, please visit: www.cargojet.com.

Provided by Cargojet Inc/CNW

MISSISSAUGA, ON, June 13, 2019 /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’s total aggregate score was 168.46 which was measured against the overall 2018 benchmark of excellence of 153/54. Cargojet is the only Canadian Air Cargo carrier to receive this honour for the seventieth 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 to the e Cargojet team’s dedication, hard work and loyalty. Our professional team is truly the driving force of Cargojet,” says Dr. Ajay K. Virmani, President & CEO.

Cargojet is Canada’s leading provider of time sensitive 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, utilizing a fleet of all-cargo aircraft.

Provided by Cargojet Inc/CNW

MISSISSAUGA, ON, May 10, 2019 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) announce today their new partnership with multi award-winning artist, Drake.

“Supporting home grown businesses has always been a top priority of mine, so when an opportunity came up to get involved with a great Canadian company I was honored to do so.” – Drake. 

Drake has been a longstanding supporter of Cargojet, being first introduced to the brand during the celebrations of its first B767-300F launch. The Canadian born company provides unparalleled transportation and logistics in air cargo services. 

“We are very excited to partner with Drake as our ambassador and assisting him with his logistical needs and requirements,” said Ajay Virmani, President and Chief Executive Officer. “We have had a lengthy relationship with Drake and this partnership has grown organically between both parties. Cargojet and Drake are both great Canadian successes, we are thrilled to be partnering together,” he concluded.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries over 1,300,000 pounds of cargo each business night. Cargojet operates its daily network across North America utilizing a fleet of all-cargo aircraft. For more information, please visit: www.cargojet.com.

Provided by Cargojet Inc/CNW

MISSISSAUGA, ON, Feb. 5, 2019 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT, CJT.A) announced today that it has purchased a ground handling and GSE company at Mirabel International Airport in Québec for approximately $3.0 million. The agreement to purchase includes all company assets and assumes all current lease arrangements.

“The acquisition of this ground handling and GSE company is the continuation of our strategic initiative to insource all ground handling operations at airports across our Canadian network.” said Ajay Virmani, Chief Executive Officer.  “We are pleased to welcome our new team members to the Cargojet family and look forward to integrating and growing our business at Mirabel and across the country by continuing providing our customers continued best in class air cargo service and reliability,” concluded Mr. Virmani.

Cargojet is Canada’s leading provider of time sensitive 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, utilizing a fleet of all-cargo aircraft. 

Non-GAAP Measures

“Adjusted EBITDA” and “Adjusted EBITDAR” 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, gain or loss on forward foreign exchange contracts, gain or loss on cash settled share based payment arrangement, loss on extinguishment of debt, employee pension, aircraft heavy maintenance expenditures and heavy maintenance deposits as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. Adjusted EBITDAR is calculated as Adjusted EBITDA excluding aircraft rents. The Corporation believes that these alternative measures provide a more consistent basis to compare the performance of the Corporation between the periods.

Adjusted EBITDA and Adjusted EBITDAR 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.  Reconciliation of non-GAAP EBITDA, Adjusted EBITDA and Adjusted EBITDAR to GAAP income is provided in the Corporation’s MD&A.

Notice on Forward Looking Statements: 

Certain statements contained herein constitute “forward-looking statements”. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “intends,” “anticipates,” “should,” “estimates,” “expects,” “believes,” “indicates,” “targeting,” “suggests” and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Reference should be made to the issuer’s most recent Annual Information Form filed with the Canadian securities regulators, and its most recent Annual Consolidated Financial Statements and Notes thereto and related Management’s Discussion and Analysis (MD&A), for a summary of major risks. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The issuer assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, other than as required by applicable securities laws. In the event the issuer does update any forward-looking statement, no inference should be made that the issuer will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

SOURCE Cargojet Inc.

For further information: Pauline Dhillon, Executive Vice President Marketing, Government & Public Relations, Tel: (905) 501 7373, pdhillon@cargojet.com