Cargojet Reports Overall Strong Q4 Performance

Cargojet Inc. 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,” said Dr. Ajay Virmani, President and CEO.

“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.”

“The continued global increase in e-commerce demand has produced strong growth in our Domestic and ACMI business segments during the Quarter,” further noted Dr. Virmani.

“We continue to monitor various macro risks including a potential recessionwhich may have impact on consumer spending. As such, Cargojet continues to carefully manage its strategy to match the capacity required with actual customer demand.”

“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.