MISSISSAUGA, ON, May 11, 2015 /CNW/ – Cargojet Inc. (the “Corporation”) (TSX: CJT, CJT.A) announced today financial results for the first quarter ended March 31, 2015.

For the First Quarter Ended March 31, 2015:

Total Revenues were $54.1, an increase of $10.4 million or 23.8% versus the previous year
Gross Margin was $1.0 million, a decrease of $2.8 million or 73.7% versus the previous year
Adjusted EBITDA before one-time costs was $7.3 million, an increase of $5.5 million or 305.6% versus the previous year. Adjusted EBITDA net of one-time costs was –$0.8 million.
Adjusted EBITDAR before one-time costs was $16.3 million, an increase of 171.7% versus the previous year. Adjusted EBITDAR net of one-time costs was $8.2 million.
“Cargojet successfully began the integration of its new major customer in March 2015, which has contributed to revenue growth in the Quarter.” said Ajay Virmani, President and Chief Executive Officer. “Strong overall customer demand for Cargojet’s primary overnight network services and its air cargo charter services continue”, he added. One-time costs related to the expansion of our core overnight network that started in March 2015, for a major customer were in line with our planned expenditures," he added.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries over 1,000,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft consisting of 5 Boeing 767-300ER, 5 Boeing 767-200ER, 5 Boeing 757-200ER and 9 Boeing 727-AF.

Non-GAAP Measures

“Adjusted EBITDA” and “Adjusted EBITDAR” are non-GAAP measures used by Cargojet to provide additional information on its financial and operating performance. Adjusted EBITDA and Adjusted EBITDAR are not recognized measures for financial statement presentation under Canadian GAAP and they do not have standardized meanings and may not be comparable to similar measures presented by other public companies.

Adjusted EBITDA is used by Cargojet to assess earnings before interest, taxes, depreciation, amortization, gain or loss on disposal of capital assets, and unrealized foreign exchange gains or losses. Adjusted EBITDA provides additional information to users of the MD&A to enhance their understanding of the Company’s financial performance. As of January 1, 2015, the Company has excluded heavy maintenance expenditures and deposits from the calculation of its adjusted EBITDA. Heavy maintenance expenditures and deposits of $2.4 million during the quarter (March 31, 2014 – $0.1) have been classified as maintenance capital expenditures to better reflect the nature of these amounts.

As of January 1, 2015 the Company reported adjusted EBITDAR in its Management Discussion and Analysis (“MD&A”). Adjusted EBITDAR is a measure commonly used in the airline industry to evaluate results by excluding differences in the method by which an airline finances its aircraft.

The Company believes that these alternative measures provide a more consistent basis to compare the performance of the Company between the periods and between other similar companies. Reconciliation of non-GAAP EBITDA, Adjusted EBITDA, EBITDAR and Adjusted EBITDAR to GAAP income is provided on page 12 of the first quarter MD&A of 2015.