MISSISSAUGA, ON, Feb. 17,
2025 /CNW/ - Cargojet Inc. ("Cargojet" or the
"Corporation") (TSX: CJT) today announced strong financial results
for the fourth quarter and full year ended December 31, 2024.
"Cargojet produced very strong results for the fourth quarter
and full year 2024 delivering on our financial and operational
objectives. For the full year we reached a record and historic
milestone of over $1 billion in
revenues for the first time in Cargojet's history. Our strong,
diversified business model has proven resilient in times of
economic uncertainty, and we remain focused on driving operational
efficiency and maintaining strategic flexibility to harness new
growth opportunities and protect margins," said Jamie Porteous, Co-Chief Executive Officer.
"Once again, our dedicated Cargojet team of professionals
delivered excellent on-time performance for our customers despite
demanding and challenging weather during the holiday peak season
while handling record volumes. We thank each and every member of
our team who are the true driving force of our continued success.
Cargojet achieved a 16% growth in block hours flown during the
fourth quarter, resulting in improved aircraft fleet and overall
asset utilization and directly contributing to a very strong full
year and quarter," said Pauline
Dhillon, Co-Chief Executive Officer.
Fourth Quarter 2024 Financial Results
Total revenue for the quarter was $293.2
million compared to fourth quarter 2023 revenue of
$221.9 million. Revenue from domestic
network, ACMI and All-in Charter for the quarter was $250.7 million compared to $193.1 million for the same period in 2023.
Adjusted EBITDA1 for the quarter was $91.7 million compared to the fourth quarter 2023
Adjusted EBITDA of $81.6 million. Net
earnings for the quarter were $71.2
million compared to net loss of $34.9
million for the same period in 2023.
Net cash from operating activities of $103.6 million during the quarter compared to
$31.5 million for the same period in
2023.
Full Year 2024 Financial Results
Total revenue for the year was $1.0
billion compared to full year 2023 revenue of $877.5 million. Revenue from domestic network,
ACMI and All-in Charter for the full year was $828.4 million compared to $712.3 million for the same period in 2023.
Adjusted EBITDA1 for the full year was $331.4 million compared to full year 2023
Adjusted EBITDA of $300.9 million.
Net earnings for the full year were $108.4
million compared to $37.3
million for the same period in 2023.
Net cash from operating activities of $328.6 million during the full year compared to
$191.9 million for the same period in
2023.
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FOURTH QUARTER AND
FULL YEAR RESULTS
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Financial
highlights
|
Three Month Period
Ended
|
Year
ended
|
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December
31,
|
December
31,
|
|
(Canadian dollars in
millions, except where indicated)
|
2024
|
2023
|
Change
|
%
|
2024
|
2023
|
Change
|
%
|
|
Domestic network, ACMI
and charter revenues
|
$250.7
|
$193.1
|
$57.6
|
29.8 %
|
$828.4
|
$712.3
|
$116.1
|
16.3 %
|
|
Total
revenues
|
$293.2
|
$221.9
|
$71.3
|
32.1 %
|
$1,000.8
|
$877.5
|
$123.3
|
14.1 %
|
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Net earnings
(loss)
|
$71.2
|
($34.9)
|
$106.1
|
304.0 %
|
$108.4
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$37.3
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$71.1
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190.6 %
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Adjusted net
earnings(1)
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$27.2
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$5.8
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$21.4
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369.0 %
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$86.2
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$35.4
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$50.8
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143.5 %
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EPS
Diluted
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$4.28
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($2.04)
|
$6.32
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309.8 %
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$6.68
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$2.17
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$4.51
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207.8 %
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Adjusted
EPS(1)
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$1.71
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$0.34
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$1.37
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402.9 %
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$5.32
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$2.06
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$3.26
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158.3 %
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Adjusted EBITDA
(1)
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$91.7
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$81.6
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$10.1
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12.4 %
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$331.4
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$300.9
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$30.5
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10.1 %
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Adjusted EBITDA margin
(1) - (%)
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31.3 %
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36.8 %
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-5.5 %
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33.1 %
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34.3 %
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-1.2 %
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Net cash from
operating activities
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$103.6
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$31.5
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$72.1
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228.9 %
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$328.6
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$191.9
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$136.7
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71.2 %
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Free cash flow
(1)
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($33.3)
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$37.9
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($71.2)
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-187.9 %
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$183.7
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$64.4
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$119.3
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185.2 %
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(1)
Non-GAAP measures. See "Non-GAAP Financial Measures"
section.
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(1) Non-GAAP Measures
Below is a description of certain non-GAAP financial measures
and non-GAAP financial ratios used by the Corporation to provide
readers with additional information on its financial and operating
performance. Non-GAAP financial ratios are ratios or percentages
that are calculated using a non-GAAP financial measure. Such
measures are not recognized measures for financial statement
presentation under GAAP, do not have standardized meanings, may not
be comparable to similar measures presented by other entities and
should not be considered a substitute for or superior to GAAP
results.
"Adjusted EBITDA" is used by the Corporation to assess earnings
before interest, taxes, depreciation, amortization, gain or loss on
disposal of capital assets, share-based compensation, gain or loss
on disposal of property, plant and equipment and assets held for
sale, impairment and gain on insurance claim, fair value increase
or decrease on stock warrant, amortization of stock warrant
contract assets, gain or loss on fair value or settlement of swap
derivatives, unrealized foreign exchange gains or losses, gains or
losses on settlement of debts, share of gain or loss in associate,
and provision for employee pension, as these costs can vary
significantly among airlines due to differences in the way airlines
finance their aircraft and other assets. The most directly
comparable financial measure disclosed in the Corporation's
financial statements is net earnings.
"Adjusted EBITDA margin" is defined as Adjusted EBITDA as a
percentage of revenue. Adjusted EBITDA margin is commonly used in
the airline industry and is used by the Corporation as a means to
measure the operating margin excluding certain items as described
above.
"Free Cash Flow" is used by the Corporation to evaluate its
financial strength and performance of its business, indicating the
amount of cash the Corporation can generate from operations after
capital expenditures. Free Cash Flow is defined as cash flows from
operating activities less purchases of property, plant and
equipment plus proceeds from disposals of property, plant and
equipment and assets held for sale, and insurance proceeds related
to these assets.
"Adjusted net earnings" and "Adjusted net earnings per share"
("Adjusted EPS") are used to assess the overall financial
performance of its business. Prior to the fourth quarter of 2024,
adjusted net earnings and adjusted EPS are defined as net earnings
and net earnings per basic share excluding impairment and gain on
insurance claim, fair value increase or decrease on stock warrant,
amortization of stock warrant contract assets, gain or loss on swap
derivatives, and unrealized foreign exchange gain or loss.
These items are excluded as they may distort the analysis of
certain business trends and render comparative analysis to other
airlines less meaningful. In the third quarter of 2024, the company
updated the definition to further exclude the tax impact of the
adjustments where applicable as the net earnings and net earnings
per share are also after-tax. Wherever presented, prior periods
adjusted net earnings and Adjusted EPS are updated
accordingly.
Reconciliations of non-GAAP measures are provided below and in
the "Non-GAAP Measures" section of the Corporation's Management's
Discussion and Analysis of Financial Condition and Results of
Operations ("MD&A") for the three month period ended
December 31, 2024 and is available on
SEDAR+ at wwww.sedarplus.ca.
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Three Month
Period
Ended
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Year
Ended
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(Unaudited -
Canadian dollars in millions, except where
indicated)
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December
31,
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December
31,
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2024
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2023
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2024
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2023
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Calculation of
EBITDA and Adjusted EBITDA
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$
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$
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$
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$
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Net earnings
(loss)
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71.2
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(34.9)
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108.4
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37.3
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Add:
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Interest
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13.6
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17.0
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56.8
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56.8
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Provision of deferred
taxes
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6.1
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11.2
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29.3
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14.4
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Depreciation of
property, plant and equipment
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41.5
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48.6
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165.1
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178.5
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EBITDA
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132.4
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41.9
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359.6
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287.0
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Add:
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Share-based
compensation
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(4.4)
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6.8
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9.7
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12.3
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(Gain) loss on disposal
of property, plant and equipment
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-
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(0.3)
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(17.4)
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2.8
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Impairment and gain on
insurance claim
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1.5
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2.0
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2.6
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3.6
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Fair value adjustment
on warrant valuation and amortization of stock warrant
contract assets
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(61.8)
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63.4
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(26.1)
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(2.2)
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Loss (gain) on swap
derivative
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18.2
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(31.5)
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(3.3)
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(2.7)
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Unrealized foreign
exchange loss (gain)
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4.6
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(1.4)
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6.0
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(0.5)
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Loss on extinguishment
of debts
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0.4
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0.5
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0.4
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0.5
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Share of loss (gain) in
associate
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0.5
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0.2
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(0.4)
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0.1
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Employee
pension
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0.3
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-
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0.3
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-
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Adjusted
EBITDA
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91.7
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81.6
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331.4
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300.9
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Revenue
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293.2
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221.9
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1,000.8
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877.5
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Adjusted EBITDA
margin
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31.3 %
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36.8 %
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33.1 %
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34.3 %
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Three Month
Period
Ended
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Year
Ended
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(Unaudited -
Canadian dollars in millions)
|
December
31,
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December
31,
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2024
|
2023
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2024
|
2023
|
|
Calculation of Free
Cash Flow
|
$
|
$
|
$
|
$
|
|
Net cash from operating
activities
|
103.6
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31.5
|
328.6
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191.9
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Purchase of property,
plant and equipment (1)
|
(136.9)
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(37.0)
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(250.0)
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(266.7)
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Proceeds from disposal
of property, plant and equipment and assets
held for sale
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-
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31.2
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105.1
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127.0
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Insurance proceeds from
assets held for sale
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-
|
12.2
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-
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12.2
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Free cash
flow
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(33.3)
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37.9
|
183.7
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64.4
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Three Month
period
ended
|
Year
ended
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(Unaudited -
Canadian dollars in millions, except where
indicated)
|
December
31,
|
December
31,
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2024
|
2023
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2024
|
2023
|
|
Calculation of Adjusted Earnings and Adjusted
EPS
|
$
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$
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$
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$
|
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Net earnings
(loss)
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71.2
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(34.9)
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108.4
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37.3
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Add:
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Impairment and gain on
insurance claim
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1.5
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2.0
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2.6
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3.6
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Fair value adjustment
on stock warrant and amortization of stock warrant
contract assets
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(61.8)
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63.4
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(26.1)
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(2.2)
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Loss (gain) on swap
derivative
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18.2
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(31.5)
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(3.3)
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(2.7)
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Unrealized foreign
exchange loss (gain)
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4.6
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(1.4)
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6.0
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(0.5)
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Tax impact on items
listed above
|
(6.5)
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8.2
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(1.4)
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(0.1)
|
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Adjusted net
earnings
|
27.2
|
5.8
|
86.2
|
35.4
|
|
Weighted average
number of shares - basic (in millions of shares)
|
15.9
|
17.1
|
16.2
|
17.2
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Adjusted
EPS
|
1.71
|
0.34
|
5.32
|
2.06
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Notice on Forward Looking Statements:
Certain statements contained herein constitute "forward-looking
statements", including with respect to the Corporation's intention
to continue rationalizing costs and capital expenditures to
generate cash, strengthen strategic customer relationships, and
drive shareholder value. 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
Corporation's most recent Annual Information Form ("AIF") filed
with the Canadian securities regulators, and its most recent Annual
Consolidated Financial Statements and Notes thereto and related
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 Corporation cautions that the
list of risk factors and uncertainties described in the AIF and
MD&A is not exhaustive and other factors could also adversely
affect its results. Readers are urged to carefully consider the
risks, uncertainties and assumptions in evaluating the
forward-looking information and are cautioned not to place undue
reliance on such information. The forward-looking information
contained herein represents our expectations as of the date hereof
(or as the date they are otherwise stated to be made), and are
subject to change after such date. However, we disclaim any
intention or obligation or undertaking to update or revise any
forward-looking information whether as a result of new information,
future events or otherwise, except as required under applicable
securities laws. In the event that we update any forward-looking
statement, no inference should be made that we will make additional
updates with respect to that statement, related matters, or any
other forward-looking statement.
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 cargo fleet of 41 aircraft.
For further information, please contact investor relations at
investorrelations@cargojet.com
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FINANCIAL
INFORMATION AND OPERATING STATISTICS HIGHLIGHTS
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|
(Canadian dollars in
millions, except where indicated)
|
|
|
|
|
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|
Three Month Period
Ended
|
Year
ended
|
|
|
December
31,
|
December
31,
|
|
|
2024
|
2023
|
Change
|
%
|
2024
|
2023
|
Change
|
%
|
|
|
|
|
|
|
|
|
|
|
Domestic network, ACMI
and charter revenues
|
$250.7
|
$193.1
|
$57.6
|
29.8 %
|
$828.4
|
$712.3
|
$116.1
|
16.3 %
|
|
Fuel surcharge and
other revenues
|
$48.5
|
$61.6
|
($13.1)
|
-21.3 %
|
$193.5
|
$207.7
|
($14.2)
|
-6.8 %
|
|
Total revenues
excluding warrant amortization
|
$299.2
|
$254.7
|
$44.5
|
17.5 %
|
$1,021.9
|
$920.0
|
$101.9
|
11.1 %
|
|
Amortization of stock
warrant contract assets
|
($6.0)
|
($32.8)
|
$26.8
|
-81.7 %
|
($21.1)
|
($42.5)
|
$21.4
|
-50.4 %
|
|
Total
revenues
|
$293.2
|
$221.9
|
$71.3
|
32.1 %
|
$1,000.8
|
$877.5
|
$123.3
|
14.1 %
|
|
Direct
expenses
|
$219.6
|
$205.4
|
$14.2
|
6.9 %
|
$775.0
|
$739.4
|
$35.6
|
4.8 %
|
|
Gross
margin
|
$73.6
|
$16.5
|
$57.1
|
346.1 %
|
$225.8
|
$138.1
|
$87.7
|
63.5 %
|
|
Gross margin -
(%)
|
25.1 %
|
7.4 %
|
17.7 %
|
|
22.6 %
|
15.7 %
|
6.9 %
|
|
|
Selling, general and
administrative expenses
|
$25.3
|
$23.1
|
$2.2
|
9.5 %
|
$90.6
|
$70.5
|
$20.1
|
28.5 %
|
|
Net finance costs and
other gains and losses
|
($29.5)
|
$16.9
|
($46.4)
|
-274.5 %
|
($2.1)
|
$15.8
|
($17.9)
|
-113.3 %
|
|
Share of loss (gain) in
associate
|
$0.5
|
$0.2
|
0.30
|
150.0 %
|
($0.4)
|
$0.1
|
($0.5)
|
-500.0 %
|
|
Earnings (loss)
before income taxes
|
$77.3
|
($23.7)
|
$101.0
|
426.2 %
|
$137.7
|
$51.7
|
$86.0
|
166.3 %
|
|
Income taxes
|
6.1
|
$11.2
|
($5.1)
|
-45.5 %
|
$29.3
|
$14.4
|
$14.9
|
103.5 %
|
|
Net earnings
(loss)
|
$71.2
|
($34.9)
|
$106.1
|
304.0 %
|
$108.4
|
$37.3
|
$71.1
|
190.6 %
|
|
Adjusted net
earnings(1)
|
$27.2
|
$5.8
|
$21.4
|
369.0 %
|
$86.2
|
$35.4
|
$50.8
|
143.5 %
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
|
|
Basic
|
$4.49
|
($2.04)
|
$6.53
|
320.1 %
|
$6.68
|
$2.17
|
$4.51
|
207.8 %
|
|
Diluted
|
$4.28
|
($2.04)
|
$6.32
|
309.8 %
|
$6.68
|
$2.17
|
$4.51
|
207.8 %
|
|
Adjusted(1)
|
$1.71
|
$0.34
|
$1.37
|
402.9 %
|
$5.32
|
$2.06
|
$3.26
|
158.3 %
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
$91.7
|
$81.6
|
$10.1
|
12.4 %
|
$331.4
|
$300.9
|
$30.5
|
10.1 %
|
|
Adjusted EBITDA margin
(1) - (%)
|
31.3 %
|
36.8 %
|
-5.5 %
|
|
33.1 %
|
34.3 %
|
-1.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from
operating activities
|
$103.6
|
$31.5
|
$72.1
|
228.9 %
|
$328.6
|
$191.9
|
$136.7
|
71.2 %
|
|
Free cash flow
(1)
|
($33.3)
|
$37.9
|
($71.2)
|
-187.9 %
|
$183.7
|
$64.4
|
$119.3
|
185.2 %
|
|
Operating statistics
(2)
|
|
|
|
|
|
|
|
|
|
Operating days
(3)
|
50
|
48
|
2
|
4.2 %
|
199
|
197
|
2.00
|
1.0 %
|
|
Average domestic
network revenue per operating
day (4)
|
2.06
|
2.11
|
(0.05)
|
-2.4 %
|
1.89
|
1.80
|
0.09
|
5.0 %
|
|
Block hours
(5)
|
21,307
|
18,353
|
2,954
|
16.1 %
|
75,173
|
69,474
|
5,699
|
8.2 %
|
|
B757-200
|
17
|
17
|
-
|
|
17
|
17
|
-
|
|
|
B767-200
|
3
|
3
|
-
|
|
3
|
3
|
-
|
|
|
B767-300
|
21
|
21
|
-
|
|
21
|
21
|
-
|
|
|
Cargo operating
fleet
|
41
|
41
|
-
|
-
|
41
|
41
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Head count
|
1,981
|
1,838
|
143
|
7.8 %
|
1,981
|
1,838
|
143
|
7.8 %
|
|
1.
|
Non-GAAP measures.
See "Non-GAAP Financial Measures" section.
|
|
2.
|
The definitions
for the Operating statistics included in this table are provided in
the notes below.
|
|
3.
|
Operating days
refer to the days on which the full domestic network air cargo
network is in operation. The Corporation's domestic network air
cargo network operates primarily from Monday to Thursday with a
reduced network operating on Friday, weekends and on certain
weekdays that are adjacent to certain statutory
holidays.
|
|
4.
|
Average domestic
network revenue per operating day refers to total domestic network
revenues earned by the Corporation's per operating
day.
|
|
5.
|
Block hours refer
to the total duration of a flight from the time the aircraft
releases its brakes when it initially moves from the airport
parking area prior to flight, to the time the brakes are set when
it arrives at the airport parking area after the completion of the
flight.
|
SOURCE Cargojet Inc.
