MISSISSAUGA, ON, May 7, 2020 /CNW/ - Cargojet Inc. ("Cargojet" or the "Corporation") (TSX: CJT) announced today financial results for the first quarter ended March 31, 2020.
For the Quarter Ended March 31, 2020:
- Total Revenues were $123.0 million, an increase of $12.6 million or 11.4% versus the previous year.
- Gross Margin was $32.2 million, an increase of $11.0 million or 51.9% versus the previous year
- Adjusted EBITDA was $40.2 million, an increase of $7.9 million or 24.5% versus the previous year
- Adjusted EBITDAR was $40.2 million, an increase of $7.6 million or 23.3% versus the previous year
In the first quarter, Cargojet achieved strong year-on-year operating results and free cash-flow. "While our Domestic Overnight Business held its own as e-Commerce maintained its growth trajectory, our diversification strategy to develop and focus on other lines of business such as ACMI and All-in Charters is paying off with strong year-on-year growth with strong contribution to overall margins" said Ajay Virmani, President & CEO.
"I am particularly proud of our team for swinging into action in tackling COVID-19 challenge. We moved swiftly to implement effective safety and security measures to protect our team as well as customers while ensuring that much needed Supply Chain continued the flow for urgent shipments. We activated our business continuity plans by supplementing additional pilots and operational personnel while successfully handling the unplanned surge in all segments of our Business" commented Mr. Virmani.
"While the longer-term implications, and the full impact of COVID-19 remains unknown, Cargojet is working hard and is well positioned to successfully support this new environment both in the short as well as in the long run" concluded Mr. Virmani.
Cargojet is Canada's leading provider of time sensitive premium overnight air cargo services and carries over 8,000,000 pounds of cargo weekly. Cargojet operates its network across North America each business night serving 15 major cities, and selected international destinations. Cargojet owns a fleet of 26 aircraft.
"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, heavy maintenance deposits and non-cash pension expenses 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 on page 13 of the MD&A for the three month period ended March 31, 2020.
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 it's 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, Tel: (905) 501 7373, [email protected]