Updates Revenue Forecast to $150M in 2023
MIAMI, Aug. 09, 2023 (GLOBE NEWSWIRE) -- Global Crossing Airlines Group, Inc. (JET: NEO; JET.B: NEO; JETMF: OTCQB) (the “Company” or “GlobalX”) today reported second quarter 2023 financial results. All figures are in United States dollars and prepared in accordance with U.S. GAAP.
Second Quarter 2023 Financial Results
Total operating revenue for Q2 2023 was $31.5 million. This represents an increase of $14 million or 80.5% when compared to Q2 2022. In addition, GlobalX operated 3,585 revenue block hours in Q2 2023 representing an 70% increase over the number of block hours operated in Q2 2022. This also compares favorably to 3,134 block hours operated in Q1 2023, an increase of 14%.
Q2 2023 results on an Adjusted EBITDAR(1) basis were $5.3 million, an Adjusted EBITDA(1) basis of approximately ($1.5) million and Adjusted EPS(1) of $(0.05). On a year over year basis the Company saw revenue increase by 80%, while costs only increased by 59%; driving substantial margin improvements as it ramps up to the scale required to generate sustainable and consistent profits.
The Company’s financial results were negatively impacted by a number of factors, including: (i) accelerated cockpit crew hiring and training to prepare for a busy 2023 summer schedule resulting in an increase of approximately $4.2 million in training expenses; (ii) continued delay in delivery of the Company’s second A321 freighter which resulted in lost ACMI revenue of approximately $2.4 million; and (iii) continued MRO delays in completing scheduled maintenance heavy checks on two of the Company’s A320s which resulted in 26% of the Company’s aircraft not being available for operations over the course of the quarter.
Ed Wegel, Chair and CEO of the Company stated “We made great progress in Q2 putting in place the people, systems and training for both the summer flying and to be prepared for the delivery of six additional aircraft in the second half of this year. This has allowed us to fly 2,538 block hours in July and keeps us on track to meet our block hour and revenue goals for the year. We have put systems and procedures in place to reduce the industry wide delays at MROs which will increase available aircraft time, and reduce freighter conversion time. Two of our next 4 freighters have already been converted to cargo, which will eliminate the delivery delays we experienced on our first two freighters.”
Q2 Highlights
- Signed LOIs for two A320 passenger aircraft and two A321 freighters
- Recruited hired and trained 35 pilots, with an additional 22 in training which started in the quarter and 36 flight attendants
- The Company received its United Kingdom (UK) TCO
- Flew 250 block hours under a wet lease to Wizz, one of the leading ULCCs in Europe
- Started flying a wet lease contract with Lynx Air in Canada
- A second A321 freighter entered revenue service in late June
Liquidity
GlobalX ended the quarter with $8.4M in cash and restricted cash which is up 53% from the amount of cash and restricted cash available at December 31, 2022.
2023 Update and Outlook
Q3 Update
- Will take delivery of one A319, one A320 and one A321 freighter
- Will complete the financing and sign the lease for the maintenance facility to be built at Ft. Lauderdale Int’l Airport
- Projected to fly over 6,000 block hours in the quarter
- Signed LOI for two additional A321 freighters for delivery this year
Guidance items provided in this release are based on Company’s current estimates and are not a guarantee of future performance. The Company expects to operate over 6,000 block hours in Q3 and is increasing its revenue guidance for 2023 to $150 million, a 54% increase over 2022. Currently $112 million of this revenue, or approximately 75%, is contracted. The Company is currently bidding on average $2M worth of contracts a day and has a current pipeline of potential contracts for 2023 of approx. $50M.
To support this growth, the Company is looking to take delivery of three more passenger aircraft in 2023 (August, October and December), plus up to four more A321F aircraft. To date for all of 2023, the Company has contracted for 13,629 block hours and expect to contract an additional 7,000 hours subject to actual aircraft delivery dates. This compares to 10,615 block hours contracted in all of 2022.
(1) Refer below to the section "Non-GAAP Financial Measures" for additional information.
Conference Call/Webcast Detail
GlobalX will be hosting a webinar on August 9th, 2023 to provide a business update and discuss the Q2 results.
When: August 9, 2023, 01:00 PM Eastern Time (US and Canada)
Topic: Global Crossing Airlines – Q2 2023 Earnings Release & Management Update
Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_EyGijbQ9TcK0ycAng_UvKQ#/registration
After registering, you will receive a confirmation email containing information about joining the webinar.
For more information, please contact:
Ryan Goepel, Chief Financial Officer
Email: [email protected]
Tel: 786.751.8503
| GLOBAL CROSSING AIRLINES GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, 2023 | December 31, 2022 | |||||||
| (Unaudited) | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 4,157,386 | $ | 1,875,673 | ||||
| Restricted cash | $ | 4,268,749 | $ | 3,585,261 | ||||
| Accounts receivable, net of allowance | $ | 5,496,021 | $ | 2,664,174 | ||||
| Prepaid expenses and other current assets | $ | 2,913,836 | $ | 2,193,449 | ||||
| Current assets held for sale | $ | 704,777 | $ | 1,405,741 | ||||
| Total Current Assets | $ | 17,540,769 | $ | 11,724,298 | ||||
| Property and equipment, net | $ | 3,105,637 | $ | 2,441,288 | ||||
| Finance leases, net | $ | 3,826,247 | $ | 2,710,899 | ||||
| Operating lease right-of-use assets | $ | 61,602,362 | $ | 27,952,609 | ||||
| Deposits and other assets | $ | 9,033,168 | $ | 6,334,878 | ||||
| Total Assets | $ | 95,108,183 | $ | 51,163,973 | ||||
| Current liabilities | ||||||||
| Accounts payable | $ | 9,913,030 | $ | 4,997,080 | ||||
| Accrued liabilities | $ | 13,122,583 | $ | 9,458,629 | ||||
| Deferred revenue | $ | 7,778,549 | $ | 3,200,664 | ||||
| Customer deposits | $ | 5,875,991 | $ | 1,617,337 | ||||
| Current portion of notes payable | $ | 8,507,869 | $ | 1,810,468 | ||||
| Current portion of long-term operating leases | $ | 9,148,095 | $ | 6,445,915 | ||||
| Current portion of finance leases | $ | 488,342 | $ | 335,527 | ||||
| Total current liabilities | $ | 54,834,459 | $ | 27,865,621 | ||||
| Other liabilities | ||||||||
| Note payable | $ | 596,572 | $ | 5,081,294 | ||||
| Long-term operating leases | $ | 54,465,291 | $ | 23,189,835 | ||||
| Other liabilities | $ | 3,307,364 | $ | 2,282,892 | ||||
| Total other liabilities | $ | 58,369,227 | $ | 30,554,020 | ||||
| Commitments and Contingencies | $ | — | $ | — | ||||
| Equity (Deficit) | ||||||||
| Common stock - $.001 par value; 200,000,000 authorized; 57,307,695 and 53,440,482 issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | $ | 57,308 | $ | 53,440 | ||||
| Additional paid-in capital | $ | 33,473,220 | $ | 30,774,197 | ||||
| Retained deficit | $ | (51,626,030 | ) | $ | (38,083,304 | ) | ||
| Total stockholders’ equity (Deficit) | $ | (18,095,502 | ) | $ | (7,255,667 | ) | ||
| Total Liabilities and Equity (Deficit) | $ | 95,108,183 | $ | 51,163,973 | ||||
| See accompanying notes to condensed consolidated financial statements. | ||||||||
| GLOBAL CROSSING AIRLINES GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
| Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
| June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||
| Operating Revenue | $ | 31,475,076 | $ | 17,441,980 | $ | 63,625,630 | $ | 33,821,992 | ||||||||
| Operating Expenses | ||||||||||||||||
| Salaries, Wages, & Benefits | 12,139,960 | 7,251,870 | 23,307,554 | 13,116,732 | ||||||||||||
| Aircraft Fuel | 6,087,480 | 4,387,135 | 14,036,442 | 7,637,689 | ||||||||||||
| Maintenance, materials and repairs | 1,766,857 | 964,352 | 3,325,581 | 2,155,175 | ||||||||||||
| Depreciation and amortization | 443,016 | 79,898 | 886,155 | 103,212 | ||||||||||||
| Contracted ground and aviation services | 5,201,126 | 3,087,023 | 10,053,937 | 6,037,266 | ||||||||||||
| Travel | 1,346,980 | 830,208 | 3,600,813 | 2,125,530 | ||||||||||||
| Insurance | 1,245,258 | 909,181 | 2,370,117 | 1,766,450 | ||||||||||||
| Aircraft Rent | 6,830,359 | 3,834,230 | 12,474,387 | 7,193,904 | ||||||||||||
| Other | 3,190,502 | 2,629,323 | 5,994,566 | 4,980,561 | ||||||||||||
| Total Operating Expenses | 38,251,539 | 23,973,220 | 76,049,552 | 45,116,519 | ||||||||||||
| Operating Loss | (6,776,462 | ) | (6,531,240 | ) | (12,423,922 | ) | (11,294,527 | ) | ||||||||
| Non-Operating Expenses | ||||||||||||||||
| Interest Expense | 694,560 | 234,417 | 1,118,806 | 250,631 | ||||||||||||
| Total Non-Operating Expenses | 694,560 | 234,417 | 1,118,806 | 250,631 | ||||||||||||
| Loss before income taxes | (7,471,022 | ) | (6,765,657 | ) | (13,542,728 | ) | (11,545,158 | ) | ||||||||
| Income tax expense | — | — | — | — | ||||||||||||
| Net Loss | (7,471,022 | ) | (6,765,657 | ) | (13,542,728 | ) | (11,545,158 | ) | ||||||||
| Loss per share: | ||||||||||||||||
| Basic | $ | (0.13 | ) | $ | (0.13 | ) | $ | (0.24 | ) | $ | (0.22 | ) | ||||
| Diluted | $ | (0.13 | ) | $ | (0.13 | ) | $ | (0.24 | ) | $ | (0.22 | ) | ||||
| Weighted average number of shares outstanding | 56,857,629 | 51,505,095 | 55,680,815 | 51,373,939 | ||||||||||||
| Fully diluted shares outstanding | 56,857,629 | 51,505,095 | 55,680,815 | 51,373,939 | ||||||||||||
| See accompanying notes to condensed consolidated financial statements. | ||||||||||||||||
| GLOBAL CROSSING AIRLINES GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) | ||||||||||||||||||||
| Common Stock Number of Shares | Amount | Additional Paid in Capital | Retained Deficit | Total | ||||||||||||||||
| Beginning – January 1, 2022 | 51,237,876 | $ | 51,237 | $ | 26,456,900 | $ | (22,262,307 | ) | $ | 4,245,830 | ||||||||||
| Issuance of shares – warrants and options exercised | 20,700 | 21 | 9,909 | — | 9,930 | |||||||||||||||
| Warrants issued | 2,130,642 | 2,130,642 | ||||||||||||||||||
| Share based compensation on stock options or RSUs | — | — | 382,612 | — | 382,612 | |||||||||||||||
| Loss for the period | — | — | — | (4,779,502 | ) | (4,779,502 | ) | |||||||||||||
| Ending – March 31, 2022 | 51,258,576 | $ | 51,258 | |||||||||||||||||
