Dr. Ajay Virmani reports

CARGOJET ANNOUNCES THIRD QUARTER RESULTS

Cargojet Inc. has released its financial results for the third quarter ended Sept. 30, 2023.

Total revenues for the quarter were $214-million compared with third quarter 2022 revenues of $232.7-million. Revenues, excluding fuel, was $177.7-million compared with $175.6-million. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $70-million compared with the third quarter 2022 adjusted EBITDA of $82.1-million. Net earnings for the quarter were $10.5-million (net loss of $6.8-million excluding warrant valuation gain) compared with net earnings of $83.4-million in 2022 (net loss of $1.9-million excluding warrant valuation gain).

Strong cash flow focus generated an adjusted free cash flow of $94.5-million for the three-month period ended Sept. 30, 2023, compared with $47.9-million for the same period in 2022. Net cash generated from operating activities of $39.4-million for the three-month period ended Sept. 30, 2023, compared with $77.9-million for the same period in 2022.

"Higher interest rates are starting to impact the household disposable incomes and we are observing a division in household spending. The volumes for discretionary items are softening but the volumes for essential household goods are holding up well. A positive revenue growth in this environment demonstrates the resilience of our diversified business model," said Dr. Ajay Virmani, president and chief executive officer. "We are prudently trimming capital expenditures and the entire Cargojet team is diligently working on identifying every cost-saving opportunity. As we further sharpen our operating model, we are squarely focused on strengthening our relationships with strategic customers by meeting their changing needs and delivering the industry-best on-time performance," noted Dr. Virmani. "Our on-time performance was 99.5 per cent in the quarter, thanks to the dedication, professionalism and hard work of the entire Cargojet team."

As announced in a separate press release issued today, the corporation has implemented a normal course issuer bid (NCIB) in respect of its common voting shares and variable voting shares, because it believes that, from time to time over the next 12 months, the market price of the shares may not fully reflect the underlying value of the shares and that at such times the purchase of the shares would be in the best interests of the corporation. Any purchases made under the NCIB, which will begin on Nov. 9, 2023, and end no later than Nov. 8, 2024, are made by Cargojet subject to favourable market conditions at the prevailing market price at the time of acquisition through the facilities of the Toronto Stock Exchange and/or alternative Canadian trading systems.

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 (aircraft, crew, maintenance and insurance) and international charter services and carrying over 25 million pounds of cargo weekly. Cargojet operates its network with its own fleet of 39 aircraft.

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