MISSISSAUGA, ON, Feb. 26, 2024 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX:CJT) announced today financial results for the fourth quarter ended December 31, 2023.
Revenue for the quarter was $254.7 million compared to fourth quarter 2022 revenue of $271.0 million. Revenue from domestic network, ACMI and All-in Charter for the quarter was $193.1 million compared to $192.8 million in 2022. Total revenue reflected in the financial statements which includes non-cash amortization of stock warrant contract assets was $221.9 million compared to $267.0 million for the same quarter in the prior year.
Adjusted EBITDA(1) for the quarter was $81.6 million compared to the fourth quarter 2022 Adjusted EBITDA of $82.9 million. Net loss for the quarter was $34.9 million (net earnings of $28.5 million excluding warrant valuation and contract asset amortization) compared to net earnings of $2.6 million in 2022 (net earnings of $18.0 million excluding warrant valuation and contract asset amortization).
Strong cash flow focus generated a Free Cash Flow(1) inflow of $37.9 million for the three-month period ended December 31, 2023 compared to outflow of $99.6 million for the same period in 2022. Net cash generated from operating activities was $31.5 million for the three-month period ended December 31, 2023, compared to $64.2 million for the same period in 2022.
“Given the challenging economic environment we faced, we are very pleased with our Q4 and the full year results. 2023 was a transitional year for us as we moved from managing a period of hyper growth during the COVID-19 era to focusing on cost management and preparing the business to face the current economic environment. We rationalized our capital expenditure plans and managed costs to maintain Adjusted EBITDA margins. We made solid progress in each of these areas.” said Jamie Porteous, Co-Chief Executive Officer.
“Building on the progress we made in 2023, we remain committed to driving shareholder value and ensuring that we remain the best partner for our strategic customers, particularly in this current environment,” said Pauline Dhillon, Co-Chief Executive Officer. “Our on-time performance was 99.5% in the fourth quarter and it clearly demonstrates the commitment and dedication of the Cargojet team when it comes to serving our customers.” concluded Pauline Dhillon.
All references to “$” in this press release are to Canadian dollars.
(1) Non-GAAP measures. See “Non-GAAP Financial Measures” section.
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.
FINANCIAL INFORMATION AND OPERATING STATISTICS HIGHLIGHTS
(Canadian dollars in millions, except where indicated)
Three Month Period Ended
Year Ended
December 31,
December 31,
2023
2022
Change
%
2023
2022
Change
%
Domestic network, ACMI and charter revenues
$193.1
$192.8
$0.3
0.2 %
$712.3
$725.2
($12.9)
-1.8 %
Fuel surcharge and other revenues
$61.6
$78.2
($16.6)
-21.2 %
$207.7
$266.2
($58.5)
-22.0 %
Total revenues excluding warrant amortization
$254.7
$271.0
($16.3)
-6.0 %
$920.0
$991.4
($71.4)
-7.2 %
Amortization of stock warrant contract assets (1)
($32.8)
($4.0)
($28.8)
720.0 %
($42.5)
($11.5)
($31.0)
269.6 %
Total revenues
$221.9
$267.0
($45.1)
-16.9 %
$877.5
$979.9
($102.4)
-10.5 %
Direct expenses
$205.4
$205.1
$0.3
0.1 %
$739.4
$732.4
$7.0
1.0 %
Gross margin
$16.5
$61.9
($45.4)
-73.3 %
$138.1
$247.5
($109.4)
-44.2 %
Gross margin – (%)
7.4 %
23.2 %
-15.8 %
15.7 %
25.3 %
-9.6 %
Selling, general and administrative expenses
$23.1
$30.4
($7.3)
-24.0 %
$70.5
$74.6
($4.1)
-5.5 %
Net finance costs and other gains and losses
$16.9
$21.7
($4.8)
-22.1 %
$15.8
($49.1)
$64.9
132.2 %
Share of loss (gain) of associate
$0.2
($0.2)
$0.4
200.0 %
$0.1
$2.0
($1.9)
-95.0 %
(Loss) earnings before income taxes
($23.7)
$10.0
($33.7)
-337.0 %
$51.7
$220.0
($168.3)
-76.5 %
Income taxes
$11.2
$7.4
$3.8
-51.4 %
$14.4
$29.4
($15.0)
-51.0 %
Net (loss) earnings
($34.9)
$2.6
($37.5)
-1442.3 %
$37.3
$190.6
($153.3)
-80.4 %
Adjusted net (loss) earnings(1)
($2.4)
$15.3
($17.7)
-115.7 %
$35.5
$120.0
($84.5)