Dr. Ajay Virmani reports

CARGOJET DELIVERS POSITIVE Q2 RESULTS

Cargojet Inc. has released financial results for the second quarter ended June 30, 2023.

Total revenues for the quarter were $209.7-million, compared with second quarter 2022 revenues of $246.6-million. Revenue excluding fuel surcharge and other revenues came in at $171.6-million, compared with $177.2-million. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $74.3-million, compared with the second quarter 2022 adjusted EBITDA of $81.1-million. Adjusted free cash flow was $52.3-million for the three-month period ended June 30, 2023, compared with $41.2-million for the same period in 2022.

Net income for the quarter was $31.1-million (net loss of $1.7-million excluding warrant valuation gain), compared with net income of $160.9-million in 2022 (net income of $26.2-million excluding warrant valuation gain).

"To prepare Cargojet to ride the current economic cycle, we shifted our focus to cost management as well as rightsizing our network, while curtailing growth capex [capital expenditures] and focusing on generating free cash flow. Our EBITDA margin of 35.4 per cent in this quarter versus 32.9 per cent prior year clearly demonstrates that our cost management initiatives are yielding the desired results," said Dr. Ajay Virmani, president and chief executive officer.

Dr. Virmani added: "While we expect economic conditions to remain difficult, the shift in consumer spending towards travel and leisure versus goods is expected to normalize towards the end of this year. The Cargojet team continues to be industry leaders providing a 99.6-per-cent on-time performance in the quarter. Our focus remains on delivering exceptional reliability and customer service."

About Cargojet Inc.

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 carrying over 25 million pounds of cargo weekly. Cargojet operates its network with its own fleet of 40 aircraft.

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