MISSISSAUGA, ON, Sept. 27,
2022 /CNW/ - Cargojet Inc. ("Cargojet" or the
"Corporation") (TSX: CJT) today provided an update on its strategic
initiatives and long-term financial targets.
Today Cargojet is hosting its previously announced Investor Day
from 10 a.m. to 12:30 p.m. ET.
A live audio feed of Investor Day will be available via dial-in
information announced last week and a replay of the event, along
with an updated investor presentation, can be accessed on the
Investor Presentation section of Cargojet's website at:
http://cargojet.com/financials-page/.
"We believe our customer-centric focus, industry-leading on-time
performance, our team of dedicated professionals and a strong
balance sheet will allow us to continue to diversify our portfolio
of services and position us well to face emerging macro headwinds,"
said Ajay Virmani, President and
Chief Executive Officer. "With our third quarter almost complete,
our volumes remain stable and in line with our expectations."
Cargojet is expected to reach a new milestone of a fleet size of
40 aircraft by the end of 2022, allowing it to expand its domestic
overnight network to 16 Canadian cities, reaching more than 90% of
Canadian population each day. The expanded fleet will also allow
Cargojet to serve additional routes on its ACMI network for its
strategic customers.
The Corporation is providing the following long-term financial
targets for 2026:
- Total Revenue estimated to be between $1.3 billion to $1.4
billion (2021 Total Revenue $758
million);
- Adjusted EBITDA* estimated between $500
million and $550 million (2021
Adjusted EBITDA $293 million);
- Adjusted Free Cashflow* estimated between $320 million and $360
million (2021 Adjusted Free Cash Flow $160); and
- Net Debt to Adjusted EBITDA Leverage Ratio* (Net Debt/Adjusted
EBITDA) targeted at between 1.50 and 2.50 (2021 Leverage Ratio
1.03).
*
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Adjusted EBITDA,
Adjusted Free Cashflow and Leverage Ratio are non-GAAP financial
measures or non-GAAP ratios and are not recognized by IFRS. Please
refer to the "Non-GAAP measures" section of this press release for
definitions of these non-GAAP financial measures and non-GAAP
ratios to the nearest GAAP measure.
|
All references to "$" in this press release are to Canadian
dollars.
Notice on Forward-Looking
Statements:
The 2026 long-term financial targets provided in this news
release do not constitute guidance or outlook, but rather are
provided for the purpose of assisting the reader in measuring
progress toward the Corporation's objectives. The reader is
cautioned that using this information for other purposes may be
inappropriate. The Corporation may review and revise these targets
as economic, geopolitical, market and regulatory environments
change. These targets are used as goals as the Corporation executes
on its strategic priorities, and they assume a normal business
environment. The Corporation's ability to achieve these targets is
dependent on its success in achieving initiatives and business
objectives that are further described below and in the Investor
Presentation and on certain material assumptions, including those
discussed below, and are subject to a number of risks and
uncertainties.
Implicit in forward-looking statements in respect of Cargojet's
expectations for its 2026 long-term financial targets, are certain
current assumptions, including assumptions regarding the
Corporation's plans to invest approximately $1.2 billion in growth capital expenditures and
expand its fleet to 51 aircraft over the next ~4-5 years; the
continuation of the Corporation's long-term contracts with key
customers and on-time performance; the continued diversification of
the Corporation's service offerings and demand for such offerings;
the Corporation's expectations for long-term e-commerce growth
trends, reduced passenger belly cargo capacity and production of
freighter aircraft; the availability of debt financing;
availability of unrestricted air space; availability of jet fuel at
costs within historical trends; ongoing impacts from the COVID-19
pandemic and related health and safety protocols; an average
currency exchange rate of $1.30 per
U.S. dollar in 2023-2026.
These forward-looking statements are based on current
expectations and entail various risks and uncertainties. There can
be no assurances regarding (a) general economic conditions related
to COVID-19 and impacts to consumer discretionary spending and
shopping habits; (b) credit, market, currency, commodity market,
inflation, interest rates, global supply chains, operational, and
liquidity risks generally; (c) geopolitical events; and (d) other
risks inherent to Cargojet's business and/or factors beyond its
control which could have a material adverse effect on the
Corporation.
Reference should be made to the Corporation's public filings
available at www.sedar.com and at www.cargojet.com, including its
most recent Annual Information Form filed with the Canadian
securities regulators, its most recent Annual Consolidated
Financial Statements and Notes thereto and related Management's
Discussion and Analysis ("MD&A"), and its most recent
final short form prospectus for a summary of material risks. These
risks are not intended to represent a complete list of the risks
that could affect the Corporation; however, these risks should be
considered carefully. 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 forward-looking statements contained herein describe the
Corporation's expectations as of the date of this news release and
are subject to change after such date. However, Cargojet disclaims
any intention or obligation to update or revise any forward-looking
statements whether because of new information, future events or
otherwise, except as required under applicable securities
regulations.
Non-GAAP Financial Measures
Below is a description of certain non-GAAP financial measures
and non-GAAP ratios used by the Corporation to provide readers with
additional information on its financial and operating performance.
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 defined as earnings before share-based
compensation, interest, taxes, depreciation, amortization, and
other adjustments. Adjusted EBITDA is calculated as net income or
loss excluding the following: depreciation, aircraft heavy
maintenance amortization, contract asset amortization, unrealized
gains or losses on fair value of cash settled share based payment
arrangement, swaps and warrants,
realized gain or losses on settlement of swaps, interest on
long-term debt, deferred income taxes, provision for current income
taxes, gain or loss on disposal of property, plant and equipment,
impairment of property plant and equipment, unrealized foreign
exchange gains or losses, gains or losses on settlement of debts or
finance lease liabilities, share based compensation and provision
for employee pension. For a reconciliation of historical Adjusted
EBITDA, please refer to page 16 of our annual MD&A.
"Adjusted Free Cash Flow" is defined as Standardized Free Cash
Flow as defined by the CPA Canada, less operating cash flows
provided from or used in discontinued operations, changes in
working capital, plus the provision for current income taxes. For a
reconciliation of historical Adjusted Free Cash Flow, please refer
to page 16 of our annual MD&A.
"EBITDA" is defined as earnings before interest, taxes,
depreciation and amortization. EBITDA is calculated as net income
or loss excluding the following: depreciation, and aircraft heavy
maintenance amortization, interest on long-term debt, deferred
income taxes and provision for current income taxes. For a
reconciliation of historical EBITDA, please refer to page 16 of our
annual MD&A.
"Net Debt to Adjusted EBITDA Leverage Ratio" is a measure of our
level of financial leverage and is obtained by dividing Net Debt by
Adjusted EBITDA and is measure of the Corporation's ability to meet
its financial obligations. Net Debt is a metric obtained by
subtracting cash from debt and lease liabilities and is used to
monitor the Corporation's financial leverage.
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 fleet of 34 aircraft.
SOURCE Cargojet Inc.