Cargojet Inc. has announced financial results for the third quarter ended September 30, 2022. Total Revenues for the quarter were $232.7 million compared to third quarter 2021 Revenues of $189.5 million.
Gross Margin for the quarter was $57.6 million compared to third quarter 2021 Gross Margin of $54.0 million. Adjusted EBITDA(1) for the quarter was $82.1 million compared to the third quarter 2021 Adjusted EBITDA(1) $70.9 million.
Net income for the quarter was $83.4 million (net loss of $1.9 million excluding warrant valuation gain) compared to net loss of $12.9 million in 2021 (net income of $23.9 million excluding warrant valuation loss).
Total revenue growth of 22.8% (15.5% excluding fuel) for the quarter compared to prior year reflected a strong contribution from the Domestic network, up 21.2% and ACMI, up 47.0% compared to the same quarter last year.
Adjusted Free Cash Flow(1) was $47.9 million for the three-month period ended September 30, 2022 compared to $51.1 million for the same period in 2021.
“Over the past several years, Cargojet has evolved its business model that is increasingly based on strategic partnerships rather than transactional relationships with its customers,” said Dr. Ajay Virmani, President and CEO. “By aligning our long-term commercial interests, we expect greater endurance of volumes with our strategic customers even if global volumes soften during a recessionary period.”
“The continued global increase in e-commerce demand has produced strong growth in our Domestic and ACMI business segments during the Quarter. We continue to monitor various macro risks including a potential recession, which may have an impact on consumer spending. As such, Cargojet continues to carefully manage its strategy to match the capacity required with actual customer demand,” further noted Dr. Virmani.
“Our team once again rose to the challenge of delivering another strong quarter with 99.7% on-time performance. I am incredibly proud and grateful to the entire Cargojet team for continuing to deliver excellence while delivering strong revenue growth,” concluded Dr. Virmani.
All references to “$” in this press release are to Canadian dollars.