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
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 34 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 | ||
| 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 % | |||