cargojet Inc. has announced its financial results for the Second quarter ended June 30, 2023.
Total Revenues for the Quarter were $209.7 million compared to second quarter 2022 Revenues of $246.6 million. Revenue excluding fuel surcharge and other revenues came in at $171.6 million compared to $177.2 million. Adjusted EBITDA(1) for the quarter was $74.3 million compared to the second quarter 2022 Adjusted EBITDA(1) $81.1 million. Adjusted Free Cash Flow(1) was $52.3 million for the three-month period ended June 30, 2023 compared to $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 to net income of $160.9 million in 2022 (net income of $26.2 million excluding warrant valuation gain).
“To prepare Cargojet to ride the current economic cycle, we shifted our focus to cost management as well as right sizing our network, while curtailing growth CapEx and focusing on generating free cash flow. Our EBITDA margin of 35.4% in this quarter vs. 32.9% prior year clearly demonstrates that our cost management initiatives are yielding the desired results,” said Dr. Ajay Virmani, President and CEO.
“While we expect economic conditions to remain difficult, the shift in consumer spending towards travel and leisure vs goods is expected to normalize towards the end of this year. The Cargojet team continues to be industry leaders providing a 99.6% on-time performance in the quarter. Our focus remains on delivering exceptional reliability and customer service” noted Dr. Virmani.
All references to “$” in this press release are to Canadian dollars.