Cargojet Inc.

Good morning, ladies and gentlemen. Welcome to the cargo jet 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, everyone, and thank you for joining us today on this call. With us on the call today are A.J. Vermani, our Executive Chairman, Pauline Dillon, Co-Chairman Chief Executive Officer, Jamie Porteus, Co-Chief Executive Officer, Scott Calver, our Chief Financial Officer, and Sanjeev Meni, 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-looking within the meaning of applicable securities laws. This call also includes references to non-GAAP measures like adjusted EBITDA, adjusted earning 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 reconciliation of non-GAAP measures to GAAP measures. I will now turn the call over to James.

Thank you, Marty. Good morning, everyone, and thank you for joining us on the call today. Alina and I will share a few thoughts on the macro environment and the factors affecting our business and general business outlook before we pass the call over to our CFO, Scott, to give you a bit more color on the financial drivers. We are extremely pleased with our second quarter results, particularly in the context of a week or at least uncertain transportation environment. We have a very talented team at CargoJet, and results like these require a coordinated effort to execute against our strategy. And Pauline and I both want to thank each one of our team members. We have often talked about our entrepreneurial culture and how it differentiates us from the competition. Despite the macro headwinds from the economic slowdown, geopolitical uncertainty, and their impact on overall trade volumes, Cargojet's mix of business has allowed us to continue to grow revenues and not be solely dependent upon any one portion of our customer mix. We recently capitalized on the opportunity to service the fast-growing China-based e-commerce brands with a three-year scheduled charter service agreement with Great Visions HK Express to fly e-commerce products between China and Canada. Global e-commerce supply chains are constantly changing, and CargoJet is at the forefront of identifying these emerging opportunities. As a result, each one of our lines of business posted strong growth rates during the quarter. Domestic network revenues grew by 10.8%, ACMI posted a 7.3% gain, and all in charters posted a record 23.4% growth versus the second quarter of 2023. Overall, we posted an 11.5% increase in total revenues during the quarter as compared to the previous year. On the domestic side, the volumes from our major customers have stabilized and improved sequentially quarter over quarter. All right, our ACMI business continues to benefit from strong global demand and our ad hoc and scheduled charter businesses is experiencing record growth. While we are encouraged to see the second interest rate cut by the Bank of Canada, we still remain cautious and believe it will take some time for these cuts to show up in increased household disposable incomes. We are still cautiously optimistic in our continued growth expectations until financial conditions ease significantly for consumers and the political climate stabilizes globally. Our ability to harness growth opportunities is closely tied to our fleet management strategy. In prior quarters, we have talked about surplus fleet, which was set aside for sale or lease. But significantly, new growth opportunities have now absorbed much of our surplus fleet, and we have accelerated the conversion of 2767-300 aircraft to prepare for 2025 and beyond. We feel very confident about this decision, particularly when considered in the context of reductions in other Canadian operators' freighter fleets and available air cargo capacity, particularly to serve long-range charter opportunities. In mid-January, we laid out our strategic priorities to focus on optimizing CAPEX and generating free cash flow, including a framework on how we will allocate capital. Scott will provide more colour on how we are progressing against these objectives, but we are very pleased with the speed with which we are adapting our business model to serve the new economic environment and fast-changing supply chains. As we have said many times before, CargoJet is a customer-centric company, singularly focused on putting our customers first and enabling them to keep their promises to both shippers and consumers around the world. This is what makes us successful and builds long-term relationships. Pauline and I now have two quarters under our belt as co-CEOs, and we couldn't be more pleased with the progress we are making given the macro headwinds facing our industry. We are extremely excited about the future and how we can continue to harness opportunities in the very fluid global supply chains and continue to profitably grow Cargojet's business and provide value for all stakeholders. Let me now pass the microphone over to my colleague, Pauline.