MISSISSAUGA, ON, Aug. 13, 2015 /CNW/ - Cargojet Inc. (the "Corporation") (TSX: CJT, CJT.A) announced today financial results for the second quarter ended June 30, 2015.
For the Second Quarter Ended June 30, 2015:
- Total Revenues were $75.2 million, an increase of $30.9 million or 69.6% versus the previous year
- Gross Margin was $7.3 million, an increase of $2.1 million or 39.3% versus the previous year
- Adjusted EBITDA before one-time costs was $10.9 million, an increase of $6.5 million or 147.7% versus the previous year. Adjusted EBITDA net of one-time costs was $6.6 million.
- Adjusted EBITDAR before one-time costs was $20.0 million, an increase of 115.1% versus the previous year. Adjusted EBITDAR net of one-time costs was $15.7 million.
"Cargojet has successfully completed the integration of its new major customer in 2015, which has contributed to revenue growth in the Quarter," said Ajay Virmani, President and Chief Executive Officer. "Overall customer demand for Cargojet's primary overnight network services and its air cargo charter services were softer than expected in the Quarter and we continue to match capacity to actual demand, in order to keep operating costs in line", he added. "One-time costs related to the expansion of our core overnight network that started in March 2015, for a major customer were in line with our planned expenditures," he added.
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 each business night, utilizing a fleet of all-cargo aircraft consisting of 6 Boeing 767-300ER, 3 Boeing 767-200ER, 5 Boeing 757-200ER and 9 Boeing 727-AF.
"Adjusted EBITDA" and "Adjusted EBITDAR" are non-GAAP measures used by Cargojet 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 they do not have standardized meanings and may not be comparable to similar measures presented by other public companies.
Adjusted EBITDA is used by Cargojet to assess earnings before interest, taxes, depreciation, amortization, gain or loss on disposal of capital assets, and unrealized foreign exchange gains or losses. Adjusted EBITDA provides additional information to users of the MD&A to enhance their understanding of the Company's financial performance. As of January 1, 2015, the Company has excluded heavy maintenance expenditures and deposits from the calculation of its adjusted EBITDA. Heavy maintenance expenditures and deposits of $1.3 million during the quarter (June 30, 2014 - $1.2) have been classified as maintenance capital expenditures to better reflect the nature of these amounts.
As of January 1, 2015 the Company reported adjusted EBITDAR in its Management Discussion and Analysis ("MD&A"). Adjusted EBITDAR is a measure commonly used in the airline industry to evaluate results by excluding differences in the method by which an airline finances its aircraft.
The Company believes that these alternative measures provide a more consistent basis to compare the performance of the Company between the periods and between other similar companies. Reconciliation of non-GAAP EBITDA, Adjusted EBITDA, EBITDAR and Adjusted EBITDAR to GAAP income is provided on page 17 of the first quarter MD&A of 2015.
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 Quarterly 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.
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