2024-04-29 13:44:07 ET
Cargojet Inc. (CGJTF)
Q1 2024 Earnings Conference Call
April 29, 2024 8:30 am ET
Company Participants
Ajay Virmani - Executive Chairman
Jamie Porteous - co-Chief Executive Officer
Pauline Dhillon - co-Chief Executive Officer
Scott Calver - Chief Financial Officer
Martin Herman - General Counsel, Corporate Secretary
Conference Call Participants
Kevin Chiang - CIBC World Markets
Konark Gupta - Scotiabank
Matthew Lee - Canaccord Genuity
Chris Murray - ATB Capital Markets
Cameron Doerksen - National Bank Financial
David Ocampo - Cormark Securities
Walter Spracklin - RBC Capital Markets
Tim James - TD Securities
Jonathan Lamers - Laurentian Bank Securities
Presentation
Operator
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. Please go ahead, Mr. Herman.
Martin Herman
Good morning everyone and thank you for joining us today on this call. With me on the call today are Ajay Vermani, 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, 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-looking within the meaning of applicable securities laws. This call also includes references to non-GAAP measures like adjusted EBITDA, adjusted earnings per share, and return on invested capital. Please refer to our most recent press release and MD&A for important assumptions and cautionary statements relating to forward-looking information and for reconciliations of non-GAAP measures to GAAP.
I will now turn the call over to Jamie.
Jamie Porteous
Thank you Marty. Good morning everyone. Thank you for joining us on the call today. Pauline and I will share a few thoughts on the state of our business before we pass the call over to our Chief Financial Officer, Scott Calver to give you a bit more color on the financial drivers.
This quarter saw a healthy 6.5% growth in our core revenue segments of domestic overnight network, ACMI flying, and ad hoc and scheduled charters. While encouraged by the year-over-year growth, we remain somewhat cautious on our full year expectations. We continue to see margin improvements driven by our optimization of fleet and flight schedules and the rigorous management of block hours flown, especially on our domestic overnight network. Much of the heavy lifting on fleet optimization started early last year, and we are now starting to see its impact in our performance metrics.
On the domestic side, the volumes from our major customers have stabilized and improved sequentially each quarter since the middle of last year. Given the macroeconomic environment of persistent inflation and high interest rates, a much greater portion of household income is still being spent on borrowing costs, leaving a smaller portion for discretionary spending. As a result, we do see or expect significant growth to return until financial conditions ease significantly for consumers....
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Cargojet (CGJTF) Q1 2024 Earnings Call Transcript