Tag: Cargojet

Cargojet and Canadian North Announce Renewed Cargo Partnership
Renewed Partnership to Increase Cargo Capacity in Canada’s Arctic

MISSISSAUGA, ON, Dec. 27, 2023 /CNW/ – Cargojet, Canada’s leading provider of air cargo services, and Canadian North, the Arctic’s leading airline, today unveiled a renewed cargo partnership aimed at increasing capacity to better serve Canada’s Arctic. The renewal deepens a 20-year relationship, furthering their joint mission to connect and support remote and northern communities.

The renewed partnership signifies a major increase in cargo capacity, a strategic move by Cargojet and Canadian North to address the rapidly growing needs of Canada’s Arctic. This expansion will enable more frequent and efficient deliveries, ensuring that remote and northern communities in Canada’s Arctic have reliable access to essential supplies.

Under the renewed partnership, Cargojet will be the exclusive provider for air cargo from Winnipeg and Ottawa to Iqaluit, while Canadian North will continue to deliver air cargo across Canada’s Arctic. This builds upon Canadian North’s recent announcement to double the size of its cargo facility in Ottawa by 2026, which not only serves as an integral gateway for Inuit communities but also underscores its unwavering commitment to expanding services in the Arctic.

“Maintaining and strengthening relationships is crucial, especially when it comes to serving our communities,” said Shelly De Caria, Canadian North’s President and CEO. “With Cargojet’s expertise, we are continuing to combine our strengths to be able to provide faster, more reliable deliveries of essential supplies to our northern communities, creating opportunities for local businesses to grow, and ensuring that people up North have access to the goods they rely on.”

“Cargojet has been a long-time provider of dedicated and essential air cargo services to Iqaluit for Canadian North and its customers,” stated Dr. Ajay K. Virmani, Cargojet’s President and CEO. “Cargojet’s enviable track record of on-time performance and reliability will ensure that essential goods are delivered on-time to the people of Nunavut. We are very pleased to enter into this new long-term commitment with our partners at Canadian North,” he concluded.

Together, Cargojet and Canadian North are committed to fostering prosperity in Canada’s Arctic by advancing the well-being of Inuit communities through a strengthened partnership dedicated to efficient and reliable cargo transportation.

Quick Facts
- Cargojet and Canadian North have been partners for more than 22 years.
- This renewed partnership extends a longstanding relationship by another 5 years.
- Every year, Cargojet assists Canadian North in flying over 10.6 million kilograms of cargo, which is equivalent to approximately 1,000 polar bears.
- Canadian North serves as an integral gateway to Inuit communities, facilitating essential cargo transportation to these remote regions. Many of these communities lack year-round land or marine access to the rest of the country, making air transport a vital lifeline for their needs.
- As an Inuit-owned airline, Canadian North is committed to supporting its northern communities through reduced fares and discounted cargo rates for country food, snowmobiles, and ATVs to all Inuit land claim agreement beneficiaries in Nunavik, Nunavut, and the Northwest Territories.
About Canadian North

Canadian North is a 100% Inuit-owned airline that connects people and delivers essential goods throughout Canada’s North – safely, reliably and always with friendly and caring customer service. Canadian North Airlines services 25 communities within the Northwest Territories, Nunavik and Nunavut, along with Ottawa, Montreal, Edmonton, Calgary, and now extending its service to Nuuk, Greenland through an interline partnership with Air Greenland – with a versatile fleet of Boeing 737, ATR 42 and ATR 72 Freighter aircraft. Canadian North is also the premier charter services provider for large resource sector clients requiring dependable, efficient and economical fly-in/fly-out air service and it operates flights across North America and beyond for sports teams, cruise lines, tour operators and many others. Canadian North is wholly owned by Makivik Corporation and Inuvialuit Development Corporation.

About Cargojet

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries over 1,000,000 pounds of cargo each business night. Cargojet operates its network across North America, utilizing a fleet of all-cargo aircraft. For more information, please visit: www.cargojet.com.
27 December 2023
Cargojet Announces Leadership Transition and Appoints Co-CEOs

MISSISSAUGA, ON, Nov. 13, 2023 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) is pleased to announce a significant leadership transition. Effective January 1, 2024, Pauline Dhillon, currently serving as Chief Corporate Officer, and Jamie Porteous, currently Chief Strategy Officer, will be appointed Co-Chief Executive Officers (Co-CEOs) and Dr. Ajay Virmani, currently serving as CEO, will be appointed Executive Chairman.

Pauline Dhillon and Jamie Porteous have been integral executive members of the Cargojet team since its inception 22 years ago. Their commitment, extensive industry knowledge, and visionary leadership have played pivotal roles in Cargojet’s growth and success.

“We are pleased to announce the appointment of Pauline Dhillon and Jamie Porteous as Co-CEOs of Cargojet,” said Dr. Ajay Virmani, Executive Chairman. “Their complementary skillset, long-standing dedication to our organization along with unwavering focus on our team, customers, and stakeholders makes them the ideal strategic successors to lead us into a new era of innovation and growth while continuing to provide a seamless service to our customers”.

This strategic decision reflects our confidence in these talented individuals who, working collaboratively, have been instrumental in shaping Cargojet’s journey and further reinforces our commitment to provide the highest level of service and reliability to our customers.

As Co-CEOs, Pauline Dhillon and Jamie Porteous will continue to work hand-in-hand and drive the company’s vision, mission, and strategic initiatives, ensuring that Cargojet remains at the forefront of the air cargo industry while upholding the core values and culture.

Pauline Dhillon is a founding member of the Cargojet team and has been with the company from Day One. Pauline has been an integral part of Cargojet’s growth journey over the past 22 years and over this period, she has led several functions with increasing responsibility including Marketing, Brand, Government Relations, Human Resources, Legal, Facilities, Operational Efficiency and Commercial operations, leading up to her current role as Chief Corporate Officer. Pauline currently oversees all aspects of support functions as well as ground operations globally.

Jamie B. Porteous is also a founding member of the Cargojet team and has been with the company from Day One. Jamie also has been an integral part of Cargojet’s growth journey over the past 22 years and has been instrumental in helping grow Cargojet from a startup to the air-cargo leader. Jamie has served in many roles including Sales, Customer Relations, Commercial Strategy, Operations, Network Planning and Design, and Investor Relations, and more recently as the Chief Strategy Officer.

” We are excited and humbled by this opportunity,” remarked Pauline Dhillon. “Our focus remains on safely delivering excellence in air cargo solutions for our customers while staying true to our corporate culture and founding principles. Teamwork by our dedicated professionals prides itself on putting customers first in everything we do at Cargojet.”– Pauline Dhillon

Jamie Porteous added, “Cargojet’s legacy is built on innovation and a relentless commitment to reliability and outstanding customer service. We are fully committed to continue to provide long-term value to our customers, our shareholders and to our employees.”

Cargojet looks forward to the continued support of our valued customers, partners, and stakeholders as we embark on this new chapter in our journey. Together, with Pauline Dhillon and Jamie Porteous at the helm, we are confident in our ability to set new standards and reach even greater heights in the air cargo industry.

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.

13 November 2023
Cargojet Announces Leadership Transition as CEO assumes Role of Executive Chairman

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.

13 November 2023

Cargojet Announces Third Quarter Results

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 %

7 November 2023

Cargojet Renews IATA’s IOSA Registration

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.

19 October 2023
Cargojet Delivers Positive Q2 Results

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 EBITDAfor 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.

14 August 2023
Cargojet successful recertifies its ISO 9001 Quality Accreditation

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.

21 July 2023
Cargojet Reports Stable Q1 Performance

MISSISSAUGA, ON, May 1, 2023 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the first quarter ended March 31, 2023.

Total Revenues for the quarter were $231.9 million compared to first quarter 2022 Revenues of $233.6 million. Gross Margin for the quarter was $45.5 million compared to first quarter 2022 Gross Margin of $66.9 million. Adjusted EBITDA⁽¹⁾ for the quarter was $75.0 million compared to the first quarter 2022 Adjusted EBITDA⁽¹⁾ $83.0 million. Adjusted Free Cash Flow⁽¹⁾ was $42.5 million for the three-month period ended March 31, 2023 compared to $42.7 million for the same period in 2022.

Net income for the quarter was $30.5 million (net income of $6.0 million excluding warrant valuation gain) compared to net loss of $56.4 million in 2022 (net income of $30.4 million excluding warrant valuation loss).

“Consumers shifted from buying goods to spending on services during the post-pandemic period, prioritizing travel and leisure over the past year. With the re-opening of the economy, there was also a pent-up demand to visit physical stores and experience outdoors. We expect these consumption behaviors to normalize during the latter part of this year, setting the stage for a more balanced mix of spending between goods and services. Our strategy to build a strong ACMI business, on top of our flagship domestic network, has allowed us the stability to ride these volatilities including the current softer economic conditions,” said Dr. Ajay Virmani, President and CEO.

“Cargojet is not immune to the softening industry trends as well as the macro factors of slower economic growth, higher interest rates and persistent inflation. Therefore, our team is focused on realigning every aspect of our cost structure with the current demand levels, including realigning our network, significantly improving productivity in our maintenance and operational areas and cutting all discretionary expenditures while maintaining industry best on-time-performance,” further noted Dr. Virmani.

“Despite the current softer economic conditions, the long term macro trends that drive our business remain firmly intact. E-commerce, continued demise of shopping malls, further pressure on business district shopping stores driven by remote work and passenger airlines shifting to narrow body aircraft, will continue to lead to increased air-cargo volumes. Cargojet is well positioned with a strong balance sheet and a solid liquidity position to ride this volatile economic environment. With some of the world’s biggest package delivery companies as our customers, we expect to resume growth as the economic cycle turns the corner,” 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 40 aircraft.
(more…)

1 May 2023
Cargojet to sell 777 aircraft, defer cargo conversions as demand slips

Web News • Click to view 🔗 a new window (or tab) will open to an external site reporting on Canadian aviation news

6 March 2023

Cargojet Reports Overall Strong Q4 Performance

MISSISSAUGA, ON, March 6, 2023 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the fourth quarter ended December 31, 2022.

Total Revenues for the quarter were $267.0 million compared to fourth quarter 2021 Revenues of $235.9 million. Gross Margin for the quarter was $61.9 million compared to fourth quarter 2021 Gross Margin of $78.2 million. Adjusted EBITDA⁽¹⁾ for the quarter was $82.9 million compared to the fourth quarter 2021 Adjusted EBITDA⁽¹⁾ $90.5 million. Adjusted Free Cash Flow⁽¹⁾ was $33.6 million for the three-month period ended December 31, 2022 compared to $37.8 million for the same period in 2021.

Total revenue growth of 13.2% (6.1% excluding fuel) for the quarter compared to prior year reflected a strong contribution from the ACMI network, up 10.6% and Charters up by 13.9% compared to same quarter last year.

Net income for the quarter was $2.6 million (net income of $14.1 million excluding warrant valuation loss) compared to net gain of $102.0 million in 2021 (net income of $33.4 million excluding warrant valuation gain).

“Over the past several years, Cargojet has evolved its business model that is increasingly based on strategic partnerships rather than transactional relationships with its customers. By aligning our long-term commercial interests, we expect greater endurance of volumes with our strategic customers even if global volumes soften during a recessionary period,” said Dr. Ajay Virmani, President and CEO.

“The continued global increase in e-commerce demand has produced strong growth in our Domestic and ACMI business segments during the Quarter. We continue to monitor various macro risks including a potential recession, which may have impact on consumer spending. As such, Cargojet continues to carefully manage its strategy to match the capacity required with actual customer demand,” further noted Dr. Virmani.

“Our team once again rose to the challenge of delivering another strong quarter with 99.7% on-time performance. I am incredibly proud and grateful to the entire Cargojet team for continuing to deliver excellence while delivering strong revenue growth,” concluded Dr. Virmani.

All references to “$” in this press release are to Canadian dollars.

About Cargojet

CALCULATION OF EBITDA, ADJUSTED EBITDA, FREE CASH FLOW AND ADJUSTED FREE CASH FLOW

(Canadian dollars in millions, except where indicated)
	Three Month Period Ended
	December 31,
	2022	2021
	(unaudited)	(unaudited)
Calculation of EBITDA and Adjusted EBITDA
Net earnings	$2.6	$102.0
Add:
Interest	13.2	7.2
Provision of deferred taxes	7.4	12.4
Depreciation of property, plant and equipment	41.5	30.5
EBITDA ⁽¹⁾	64.7	152.1
Add:
Share-based compensation	2.6	6.3
Gain on sale of property,plant and equipment	(0.3)	(0.3)
Unrealized foreign exchange loss	0.7	0.5
Fair value adjustment and amortization on stock warrant	12.0	(67.0)
Loss on extinguishment of debts	–	1.1
Share of (gain) loss of associate	(0.2)	–
Employee pension	3.4	(2.2)
Adjusted EBITDA⁽¹⁾	82.9	90.5
Calculation of Standardized Free Cash Flow and Adjusted Free Cash Flow
NET CASH GENERATED FROM OPERATING ACTIVITIES	64.2	61.2
Less: Maintenance capital expenditures ⁽¹⁾	(27.8)	(40.4)
Add: Proceeds from disposal of property, plant and equipment	0.3	0.2
Standardized free cash flow ⁽¹⁾	36.7	21.0
Changes in non-cash working capital items and deposits	(3.1)	16.8
Adjusted free cash flow⁽¹⁾	$33.6	$37.8


The Financial Information and Operating Statistics Highlights as follows:

(Canadian dollars in millions, except where indicated)
			Three Month Period Ended				Year Ended
			December 31,				December 31,
			2022	2021	Change	%	2022	2021	Change	%

	Revenues		$267.0	$235.9	$31.1	13.2 %	$979.9	$757.8	$222.1	29.3 %
	Direct expenses		205.1	157.7	47.4	30.1 %	732.4	525.4	207.0	39.4 %
	Gross margin		61.9	78.2	(16.3)	-20.8 %	247.5	232.4	15.1	6.5 %
	Gross margin – (%)		23.2 %	33.1 %	-9.9 %		25.3 %	30.5 %	-5.2 %
	Selling, general and administrative expenses		30.4	14.1	16.3	115.6 %	74.6	59.5	15.1	25.4 %
	Net finance costs and other gains and losses		21.7	(50.3)	72.0	143.1 %	(49.1)	(27.9)	(21.2)	-76.0 %
	Share of (gain) loss of associate		(0.2)	–	(0.2)	100.0 %	2.0	–	2.0	100.0 %
	Earnings before income taxes		10.0	114.4	(104.4)	-91.3 %	220.0	200.8	19.2	9.6 %
	Income taxes		7.4	12.4	(5.0)	-40.3 %	29.4	33.4	(4.0)	-12.0 %
	Net earnings		2.6	102.0	(99.4)	-97.5 %	190.6	167.4	23.2	13.9 %
	Earnings (loss) per share
		Basic	0.15	5.82	-5.67	-97.4 %	11.04	9.73	1.31	13.5 %
		Diluted	0.15	5.70	-5.55	-97.4 %	10.15	9.51	0.64	6.7 %
		Adjusted ⁽¹⁾	0.90	2.48	-1.58	-63.7 %	6.95	6.06	0.89	14.7 %

	EBITDA ⁽²⁾		64.7	152.1	(87.4)	-57.5 %	395.8	348.1	47.7	13.7 %
	EBITDA margin ⁽²⁾– (%)		24.2 %	64.5 %	-40.3 %		40.4 %	45.9 %	-5.5 %

	Adjusted EBITDA ⁽²⁾		82.9	90.5	(7.6)	-8.4 %	329.0	293.1	35.9	12.2 %
	Adjusted EBITDA margin ⁽²⁾– (%)		31.0 %	38.4 %	-7.4 %		33.6 %	38.7 %	-5.1 %

	Adjusted free cash flow⁽²⁾		$33.6	$37.8	($4.2)	-11.1 %	$165.3	$146.5	$18.8	12.8 %

Operating statistics⁽⁴⁾
	Operating days ⁽⁵⁾		48	49	(1.0)	-2.0 %	197	198	(1.0)	-0.5 %
	Average domestic network revenue per operating day ⁽⁶⁾		2.10	2.08	0.02	1.0 %	1.83	1.64	0.19	11.6 %

	Block hours ⁽⁷⁾		19,819	18,328	1,491	8.1 %	73,273	59,734	13,539	22.7 %
		B757-200	13	9	4	–	13	9	4	–
		B767-200	4	4	–	–	4	4	–	–
		B767-300	18	16	2	–	18	16	2	–
		Passenger aircraft	4	2	2	–	4	2	2	–
			39	31	8	25.8 %	39	31	8	25.8 %

	Head count		1,802	1,496	306	20.5 %	1,802	1,496	306	20.5 %

6 March 2023