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Cargojet Inc. has announced financial results for the third quarter ended Sept. 30, 2023.
Total revenues for the quarter were $214 million compared to third quarter 2022 revenues of $232.7 million. Revenues, excluding fuel, were $177.7 million compared to $175.6 million.
Adjusted EBITDA for the quarter was $70 million compared to 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 to 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 to $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 to $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 CEO.
“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,” said 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 (together, the 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 TSX and/or alternative Canadian trading systems.
This press release was prepared and distributed by Cargojet.