In This Article:
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Revenue Growth: 32% increase for Q4 2024.
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Total Revenue: $251 million for Q4 2024, excluding fuel surcharge and other revenues.
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Annual Revenue: Reached $1 billion for the first time.
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ACMI Revenue Growth: 29% increase versus the same quarter last year.
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Charter Revenue Growth: 136% increase versus the same quarter last year.
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Adjusted EBITDA: $91.7 million, a 12.4% increase versus the prior year.
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Operational Cash Flow: $103.6 million in Q4 versus $31 million last year.
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Adjusted Free Cash Flow: $183.7 million for the full year versus $64.4 million in 2023.
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Net Debt to Adjusted EBITDA Ratio: 2.3 times as of December 31, 2024, down from 2.6 times at the end of 2023.
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Share Buyback: 1.1 million shares repurchased for $128.8 million in 2024.
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Block Hour Growth: 16% increase in Q4 with the same fleet size.
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On-Time Performance: 99.1% on-time performance achieved.
Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cargojet Inc (CGJTF) reported exceptional overall revenue growth of 32% for Q4 2024, reaching $1 billion in revenue for the first time.
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The company achieved record revenue of $251 million in its domestic network, ACMI, and charter segments during the quarter.
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ACMI revenue grew by 29% and all-in charter revenue increased by 136% compared to the same quarter last year.
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Cargojet Inc (CGJTF) maintained a strong net debt to adjusted EBITDA leverage ratio of 2.3 times, down from 2.6 times at the end of 2023.
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The company generated strong operational cash flow of $103.6 million in Q4, significantly higher than the $31 million from the previous year.
Negative Points
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Canada Post was on strike for almost the entire peak holiday shipping season, which dampened some of the volumes on Cargojet Inc (CGJTF)'s network.
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Q4 adjusted EBITDA grew by only 12.4%, indicating cost pressures from higher start-up costs, including crew costs.
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Rapid growth led to short-term cost increases, which Cargojet Inc (CGJTF) expects to normalize over time.
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There is concern about potential tariffs and related dislocations in supply chains, which could impact the business.
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The company faces ongoing cost pressures related to engine overhauls and pilot overtime, which may affect margins in the short term.
Q & A Highlights
Q: Can you elaborate on the decision to expand your fleet and the opportunities driving this move? A: Pauline Dhillon, Co-CEO, explained that the fleet expansion is driven by customer demand, particularly for increased frequencies to China and a new route to South America. The company also aims to focus on ad hoc charters, which have shown significant growth. Additionally, increased aircraft utilization necessitates more maintenance checks, prompting the acquisition of additional aircraft.