Cargojet Announces Fourth Quarter and Twelve-Month Results

MISSISSAUGA, ON, Feb. 27, 2012 /CNW/ - Cargojet Inc. (the "Corporation") (TSX: CJT, CJT.A) announced today financial results for the fourth quarter and twelve-month period ended December 31, 2011.

For the Fourth Quarter Ended December 31, 2011*:

• Total Revenues were $42.9 million, equal to the previous year
• Gross Margin was $7.1 million, a decrease of $3.2 million or 31.1% versus the previous year
• EBITDA was $3.2 million, a decrease of $3.5 million or 52.2% versus the previous year

For the Twelve-Month Period Ended December 31, 2011*:

• Total Revenues were $165.5 million, an increase of $9.3 million or 6.0% over the previous year
• Gross Margin was $29.8 million, a decrease of $5.5 million or 15.6% versus the previous year
• EBITDA was $15.2 million, a decrease of $4.7 million or 23.6% versus the previous year

* All figures exclude the discontinued operations of the Cargojet Regional business that was sold on July 14, 2010.

"The industry experienced an unexpected decline in domestic volumes during the quarter and last half of the year.  Combined with previously granted customer pricing discounts, this resulted in a significant impact on Cargojet's yields," said Ajay Virmani, President and Chief Executive Officer.  "While we are encouraged by the increased demand for ad-hoc charter and new revenue opportunities, we remain cautious about the continued uncertainty in the overall economy and will undertake the necessary cost reduction initiatives and pricing enhancements to improve overall margins," he added.

Cargojet is Canada's leading provider of time sensitive overnight air cargo services. Cargojet operates its network across North America each business night, utilizing a fleet of twelve all-cargo aircraft.

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.

P. Dhillon
Vice President Marketing, Public & Government Relations
Tel: [phone]
[email protected]