Q2 2024 Cargojet Inc Earnings Call Transcript
Key Points
- Cargojet Inc (CGJTF) reported an 11.5% increase in total revenues during the second quarter compared to the previous year.
- The company secured a three-year scheduled charter service agreement with Great Visions HK Express to fly e-commerce products between China and Canada.
- Domestic network revenues grew by 10.8%, ACMI posted a 7.3% gain, and all-in charter posted a record 23.4% growth versus the second quarter of 2023.
- Cargojet Inc (CGJTF) achieved a 99.4% on-time performance, showcasing operational efficiency.
- The company announced an 11.25% increase in its quarterly dividend rate, reflecting strong financial health and commitment to shareholder returns.
- Despite the positive revenue growth, Cargojet Inc (CGJTF) remains cautious due to macroeconomic headwinds such as economic slowdown and geopolitical uncertainty.
- Free cash flow was suppressed in the second quarter, primarily due to the investment in two Boeing 767 feedstock.
- The company faces challenges in the form of increased ground costs, which rose by 21% compared to the prior year.
- Cargojet Inc (CGJTF) had to incur one-time startup costs associated with the new China contract, impacting short-term profitability.
- The company had two aircraft impacted by a significant hailstorm in Calgary, which required repairs and temporary replacement services.
Good morning, ladies and gentlemen, and welcome to the Cargojet conference call. I would now like to turn the meeting over to Mr. Martin Herman, General Counsel and Corporate Secretary. Please go ahead, Mr. Herman.
Good morning, ladies and gentlemen, and welcome to the Cargojet conference call. I would now like to turn the meeting over to Mr. Martin Herrmann, General Counsel and Corporate Secretary. Please go ahead, Mr. Herman.
Good morning, everyone. And thank you for joining us today on this call. With us on the call today are Ajay Virmani, our Executive Chairman; Pauline Dhillon, Co-Chief Executive Officer; Jamie Porteous, Co-Chief Executive Officer; Scott Calver, our Chief Financial Officer, and Sanjeev Maini, our Vice President of Finance. After opening remarks about the quarter, we will open the call for questions.
I would like to point out that certain statements made on this call, such as those related to our forecasted revenues, costs and strategic plans are forward
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