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  • Cargojet (CJT) announced its financial results for the second quarter ended June 30, 2022, noting strong performance in all business segments
  • Total revenue was $246.6 million against $172.1 million in Q2 of 2021
  • Adjusted EBITDA for the quarter was $81.1 million against $67.4 million last year
  • Cargojet is Canada’s leading provider of time sensitive premium air cargo services to all major cities across North America
  • Cargojet Inc. (CJT) is up 1.69 per cent, trading at C$135.37 per share at 1:30 pm ET

Cargojet (CJT) announced its financial results for the second quarter ended June 30, 2022, noting strong performance in all business segments.

  • Total revenue was $246.6 million against $172.1 million in Q2 of 2021
  • Gross margin was $61.1 million versus $54.9 million in the same period last year
  • Adjusted EBITDA for the quarter was $81.1 million against $67.4 million last year
  • Net income was $160.9 million (net income of $26.2 million excluding warrant valuation gain) compared to net loss of $11.1 million in 2021 (net income of $23.6 million excluding warrant valuation loss)

Total revenue growth of 43.3 per cent (31.9 per cent excluding fuel surcharges) for the quarter reflected a strong contribution from the Domestic network, up 15.0 per cent, ACMI, up 62.4 per cent and All-in Charters, up 23.2 per cent compared to same quarter last year. Cargojet’s Domestic Network Revenue now stands at 35.2 per cent of total revenue compared to 43.8 per cent for the same period in 2021.

Adjusted Free Cash Flow for the three-month period was $44.8 million compared to $36.0 million for the same period last year.

Cargojet also established a non-revolving USD $400 million Delayed-Draw Term Loan facility on July 22, 2022. This is for general corporate purposes including the purchase of aircraft and other capital expenditures. Together with existing undrawn revolver, this brings Cargojet’s total liquidity to approximately $1 billion.

Macro uncertainties continue to impact air-cargo supply chains with passenger airlines facing extremely difficult operating conditions. The impact of rapidly shifting schedules and poor on-time performance of passenger airlines has further restricted the ability of cargo shippers to utilize belly space. This, combined with ongoing supply chain challenges, continues to provide opportunities for Cargojet to capture unmet demand in the medium term.

Dr. Ajay Virmani, President and CEO of Cargojet, commented on the results.

“Unpredictability of belly space was the reason Cargojet was born over 20 years ago. From the first day of our existence, we have focused on doing just one thing – flying cargo. The recent macro events have further strengthened our resolve to stay focused on serving our customers. Yet, we are not immune to the global forces of high inflation, high fuel prices and geo political uncertainties. Therefore, we remain prudent in how we are approaching the next few quarters as we continue to balance investing in growth with maintaining a strong balance sheet.”

Cargojet is Canada’s leading provider of time sensitive premium air cargo services to all major cities across North America. It provides dedicated, ACMI and International Charter services and carries over 25,000,000 pounds of cargo weekly.

Cargojet Inc. (CJT) is up 1.69 per cent, trading at C$135.37 per share at 1:30 pm ET.


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