Cargojet Inc. reported strong financial results for the third quarter ended September 30, 2020.
Total revenues for the quarter were $162.3 million compared to third quarter 2019 Revenues of $117.4 million. Gross margin for the quarter was $58.3 million compared to third quarter 2019 gross margin of $29.8 million.
Adjusted EBITDA and adjusted EBITDAR for the quarter were $78.1 million and $78.1 million respectively compared to the third quarter 2019 adjusted EBITDA and adjusted EBITDAR of $39.1 million and $39.3 million respectively.
With back-to-back strong quarters, Cargojet generated $59.3 million in free adjusted free cash flow during Q3 and $144.8 million for the nine months ending September 30, 2020, allowing it to further reduce its overall leverage to 2.1X twelve months trailing EBITDAR.
Dr. Ajay Virmani, president and chief executive officer, commented: “There is no doubt that Cargojet’s Domestic Overnight Network continues to benefit from the elevated levels of e-Commerce, but we are equally focused on ensuring that we are building strong long-term growth in our ACMI and Charter businesses. We are also continuing to invest in growth opportunities while prudently strengthening our Balance Sheet with an overall reduction of $92 million in net-debt on a year-to-date basis.
“Although we have been operating at near peak level volumes for the past two quarters, it is vitally important that we do everything we can to support our customers during the upcoming holiday season. As a result, we are deploying additional resources all across our network to ensure that we play our part in delivering a successful holiday season for all our customers.”