The following is a summary of the Cargojet (CGJTF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Cargojet reported Q1 core revenue growth of 6.5% in its key segments and generated a robust free cash flow of $168.7 million.

• The company successfully managed to reduce its net debt to adjusted EBITDA to 2.2 times from 2.6 times in December 2023.

• They have initiated a share buyback program to return more capital to shareholders.

• A significant revenue boost came despite decreases in package volumes across the industry, and the company has effectively managed its costs, maintaining EBITDA margins in the mid-30% range.

Business Progress:

• Cargojet has made operational improvements, including efficient fleet and flight schedule management, more streamlined maintenance processes, and enhanced pilot training procedures.

• The company continues to align with new ecommerce market entrants to foster business growth and maintains a strong customer relationship with an on-time performance rate of 98.7%.

• Strategic plans include improved management of block hours and increased charter requests from Chinese-based e-commerce suppliers.

• The company has an ongoing plan for de-levering and is considering further share buybacks.

• Its customer mix and the securing of long-term contracts contribute to the company's market resilience.

• Amidst challenging macroeconomic conditions, Cargojet aims to maintain its EBITDA margins while exploring new opportunities.

More details: CARGOJET INC IR

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