Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the second quarter ended June 30, 2020. Total Revenues for the quarter were $196.1 million compared to second quarter 2019 Revenues of $119.1 million.
Gross Margin for the quarter was $90.7 million compared to second quarter 2019 Gross Margin of $26.6 million. Adjusted EBITDA and Adjusted EBITDAR for the quarter were $91.1 million and $91.1 million compared to second quarter 2019 Adjusted EBITDA and Adjusted EBITDAR of $37.5 million and $37.8 million respectively.
Cargojet’s domestic revenues benefited from a strong e-Commerce growth driven by the work-from-home economy that were partially offset by lower B2B volumes, as most non-essential businesses were closed in the early part of the Quarter. We have seen a rebound of B2B volumes late in the Quarter as economies started to re-open across the country.
The e-Commerce growth continues to accelerate, in addition to large online retailers, thousands of small and medium sized businesses moved their sales to online channels resulting in strong growth in the B2C Business. As reported by Statistics Canada, in April e-Commerce sales as a percentage of total retail sales doubled to 14% compared to Q1 of 2020 and were up 120% in May compared to May 2019.
“Reduced global air cargo capacity, as a result of extremely reduced passenger flights, led to strong ACMI growth in International markets that we believe will continue for the short and medium term.”
“We also realized strong ad-hoc international charter revenues operating during the period, providing capacity to bring PPE and other medical supplies back from Asia for various government agencies that may not be recurring,” said Ajay Virmani, President & CEO.
“We firmly believe that the real strength of Cargojet is its 1,200 strong team members. As we faced the once-in-a-century challenge of operating our business in a global pandemic, it tested every aspect of our business but what really stood out was the unwavering commitment, hard work and devotion of each one of our team members who rose to the challenge.”
“We remained laser focused on ensuring health and safety of our employees, our customers and the cargo we move. The special measures we put in place in late March have now become the new normal within our operations. These extraordinary measures not only allowed us to operate safely, they were instrumental in helping us exceed customer expectations with record on-time performance during these unprecedented times,” commented Mr. Virmani.
“We are continuing to monitor the impact of COVID-19 but believe it will be several quarters before we fully understand its short and long-term implications. Cargojet continues to show resilience and operating leverage as it handles a significant surge in volumes. At the same time, we are continuing to use increased cash flows to pay down debt and we continue to make investments to ensure that we can participate in the growth opportunities being presenting to us,” concluded Mr. Virmani.