Post by
retiredcf on May 02, 2022 9:22am
CIBC
EQUITY RESEARCH
May 2, 2022 Flash Research
CARGOJET INC.
Q1 First Pass: Above Expectations
Key Takeaways: Positive impact. CJT reported Q1 results that came in
above expectations with adj. EBITDA of $83MM (we had estimated $71MM
and consensus at $74MM). The company is hosting a call at 8:30 a.m. ET.
Q1 Recap: CJT reported Q1 results that were above expectations.
- Revenue came in at $234MM, up from $160MM the year prior and versus
our estimate of $212MM (cons. $209MM).
- Adjusted EBITDA was $83MM, up from $64MM the year prior and versus
our estimate of $71MM (cons. $74MM). The company’s EBITDA margin
came in at 35.5% versus Q1/21’s 40% and our estimate of 33.7% (cons.
35.4%). Reported EBITDA was ($6)MM with the main adjustment related to
the $88MM in fair value adjustment and amortization on stock warrants.
- FCF in the quarter (CFO less net capex less cash lease payments) was
$(37)MM versus our estimate of ($101)MM. The main variance versus our
estimate was driven by higher earnings and better-than-expected NWC.
The company’s adjusted FCF, which adjusts for maintenance capex
($37MM) and changes in NWC, was $43MM.
Underlying Trends: CJT saw the following underlying trends:
- Domestic network revenue was up 10.3% Y/Y to $84.5MM versus our
estimate of $94MM. The Y/Y increase was primarily due to improved e-
commerce and B2B volumes.
- ACMI revenue was up 36.2% Y/Y to $53MM versus our estimate of
$44.5MM. The Y/Y increase was due to an additional route to Europe, two
new domestic ACMI routes to Western Canada which started in October
2021, and an increase in ad hoc ACMI charter flights.
- All-in charter revenues were $41MM versus $10MM the year prior and
above our estimate of $18MM. The Y/Y increase in revenue was primarily
due to additional scheduled charters to Europe and an increase in ad hoc
all-in charter flights to Asia.
- Overall average volume per day was up 21% Y/Y to 2.12MM lbs. and
average cargo revenue per operating day was up 10.5% Y/Y to
$1.69MM/day. Block hours were up 35.2% Y/Y to 17,704 hours.
Conference Call Details: CJT is hosting a conference call at 8:30 a.m. ET.
Dial-in numbers are 647-484-0258 or 800-289-0720