Global Crossing Airlines Reports First Quarter 2024 Financial Results


Second consecutive quarter of accelerating Y/Y revenue growth
Plans to expand fleet by more than 40% to 20 aircraft this summer

MIAMI, May 06, 2024 (GLOBE NEWSWIRE) -- Global Crossing Airlines Group, Inc. (Cboe CA: JET, Cboe CA: JET.B, OTCQB: JETMF) (the “Company” or “GlobalX”), the Nation's fastest growing charter airline, today announced its financial and operating results for the first quarter ended March 31, 2024. All figures are in United States dollars and prepared in accordance with U.S. GAAP.

Financial and Operational Summary
 Q1 2024Q1 2023% Change
Revenue:$53.8M$32.2M67%
EBITDAR1:$9.3M$0.6M~16x
Net Aircraft Available:12.57.860%
Total Block Hours:5,2003,13466%
Average Utilization Per Aircraft:4164024%


“The first quarter of 2024 signifies a robust commencement and the dawn of a new era for GlobalX,” said Chris Jamroz, Executive Chairman of GlobalX. “Since our inception in 2019, GlobalX has demonstrated a consistent ability to swiftly integrate new aircraft into revenue-generating charter operations, propelling us to become the nation’s premier charter airline. Moving ahead, we remain steadfast in our commitment to leveraging our expertise as a narrow-body ACMI charter carrier to drive enduring profitability.”

GlobalX President and CFO, Ryan Goepel, commented: “We achieved another quarter of robust growth, while reducing OPEX as a percentage of operating revenue by more than 840 basis points compared to Q1 2023. As Chris stated, going forward we are focusing our efforts on what we do best, and during the quarter we made several necessary adjustments to the organization to facilitate this transition.”

Mr. Goepel continued: “Subsequent to quarter end, we were pleased to receive U.S. DOT authorization to expand our fleet to 20 aircraft, a level we intend to reach by this summer. Additionally, we have continued to deepen our relationship with a key government client that is now chartering over 1,000 block hours per month. We are still in the early innings of this new chapter for GlobalX, however we are well-positioned to continue expanding the business as we execute on our profitable growth objectives.”

__________________
1 Refer below to the section “Non-GAAP Financial Measures” for additional information

Q1 2024 Financial Highlights (vs. Q1 2023)

  • Revenue: Revenue increased 67% to $53.8 million compared to $32.2 million. The increase was driven primarily by higher block hours flown and aircraft fleet expansion, as well as continued strong demand for passenger ACMI and Charter flights.

  • Total Operating Expenses: Operating Expenses were $58.4 million compared to $37.7 million. The increase was primarily due to higher aircraft rent, maintenance, and personnel costs associated with the expansion of the GlobalX fleet, as well as higher travel costs related to a government contract. In addition, the Company had approximately $1 million of expenses and charges related to unwinding non-core businesses and other one-time items in the quarter.

  • Net Income (Loss)/EPS: Net Loss was $6.3 million compared to $6.1 million. Loss per Share remained unchanged at ($0.11) per basic and diluted share, compared to ($0.11) per basic and diluted share.

  • EBITDAR: EBITDAR increased approximately 16x to $9.3 million compared to $0.6 million. The increase was primarily driven by increased revenue, improved operating margins, higher average charter rates and higher utilization of aircraft.

Operational Highlights

  • Received authorization from US Department of Transportation to increase the Company’s fleet to 20 aircraft
  • Grew government contracts to eight dedicated aircraft
  • Took delivery of two additional aircraft; one A320 passenger aircraft and one A321F Cargo aircraft

Liquidity

  • Cash and Restricted Cash: The Company had $12.1 million in Cash and Restricted Cash at March 31, 2024, compared to Cash and Restricted Cash of $17.7 million at December 31, 2023.

Conference Call

The GlobalX management team will host a conference call tomorrow, followed by a question-and-answer period. Interested parties may submit questions to the Company prior to the call by emailing JET@elevate-ir.com.

Date: Tuesday, May 7, 2024
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: (877) 704-4453
International dial-in number: (201) 389-0920
Conference ID: 13746125
Webcast: GlobalX's Q1 2024 Conference Call

If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.

The conference call will also be available for replay on the investor relations section of the Company’s website at www.globalairlinesgroup.com.

About Global Crossing Airlines

GlobalX is a US 121 domestic flag and supplemental Airline flying the Airbus A320 family aircraft. GlobalX flies as a passenger ACMI and charter airline serving the US, Caribbean, European and Latin American markets. GlobalX is also now operating ACMI cargo service flying the A321 freighter. For more information, please visit www.globalxair.com.

For more information:

Company Contact
Ryan Goepel, President & CFO
Tel: (720) 330-2829

Investor Relations Contact
Sean Mansouri, CFA or James Bonifer
Email: JET@elevate-ir.com

Non-GAAP Financial Measures

The Company evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America ("GAAP") and non-GAAP financial measures, including Adjusted operating expenses, adjusted operating income (loss), Adjusted operating margin, adjusted pre-tax income (loss), Adjusted pre-tax margin, Adjusted net income (loss), Adjusted diluted earnings (loss) per share, adjusted EBITDA and adjusted EBITDAR. These non-GAAP financial measures are provided as supplemental information to the financial information presented in this press release that is calculated and presented in accordance with GAAP and these non-GAAP financial measures are presented because management believes that they supplement or enhance management's, analysts' and investors' overall understanding of the Company's underlying financial performance and trends and facilitate comparisons among current, past and future periods.

Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in the method of calculation and in the items being adjusted. We encourage investors to review our financial statements and other filings with the Securities and Exchange Commission in their entirety and not to rely on any single financial measure.

The information below provides an explanation of certain adjustments reflected in the non-GAAP financial measures and shows a reconciliation of non-GAAP financial measures reported in this press release (other than forward-looking non-GAAP financial measures) to the most directly comparable GAAP financial measures. Within the financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Per unit amounts presented are calculated from the underlying amounts.

EBITDAR which is defined Operating income (loss), plus depreciation, amortization, interest, taxes and aircraft rent is an important metric to be considered to allow investors to compare results across different airlines regardless of how the airlines acquired their aircraft. This distinction is important when comparing the operational results of an airline leasing its aircraft versus an airline purchasing its aircraft. Specifically, the airline leasing aircraft would see the costs relating to those aircraft flow through aircraft rent, while an airline that owns their aircraft would see their costs for those aircraft flow through depreciation and amortization. In order to compare the operating results of the two airlines an investor needs to look at EBITDAR which is why it is presented.

EBITDAR Reconciliation (in thousands)Three Months Ended
March 31, 2024
Three Months Ended
March 31, 2023
   
Operating Loss$(4,619)$(5,530)
Depreciation and amortization 1,166  443 
EBITDA (3,453) (5,087)
Aircraft Rent 12,761  5,644 
EBITDAR 9,308  557 
   

Cautionary Note Regarding Forward-Looking Information

This news release contains certain “forward-looking statements” and “forward-looking information”, as defined under applicable United States and Canadian securities laws, concerning anticipated developments and events that may occur in the future. Forward-looking statements contained in this news release include, but are not limited to, statements with respect to the Company’s aircraft fleet size and the expected growth to 20 aircraft by summer 2024, the Company’s status as the Nation’s fastest growing charter airline, profitability, robust growth, expansion of the business and the Company’s objectives, and the Company’s growth plans.

In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking statements contained in this news release is based on certain factors and assumptions regarding, among other things, the receipt of financing to continue airline operations, the accuracy, reliability and success of GlobalX’s business model; GlobalX’s ability to accurately forecast demand; GlobalX will be able to successfully conclude definitive agreements for transactions subject to LOI; the timely receipt of governmental approvals; the success of airline operations of GlobalX; GlobalX’s ability to successfully enter new geographic markets; the legislative and regulatory environments of the jurisdictions where GlobalX will carry on business or have operations; the Company has or will have sufficient aircraft to provide the service; the impact of competition and the competitive response to GlobalX’s business strategy; the future price of fuel, and the availability of aircraft. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include risks related to, the ability to obtain financing at acceptable terms, the impact of general economic conditions, risks related to supply chain and labor disruptions, failure to retain or obtain sufficient aircraft, domestic and international airline industry conditions, failure to conclude definitive agreements for transactions subject to LOI, the effects of increased competition from our market competitors and new market entrants, passenger demand being less than anticipated, the impact of any resurgence of COVID-19, future relations with shareholders, volatility of fuel prices, increases in operating costs, terrorism, pandemics, natural disasters, currency fluctuations, interest rates, risks specific to the airline industry, risks associated with doing business in foreign countries, the ability of management to implement GlobalX’s operational strategy, the ability to attract qualified management and staff, labor disputes, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits; risks related to significant disruption in, or breach in security of GlobalX’s information technology systems and resultant interruptions in service and any related impact on its reputation; and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators and the U.S. Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in the forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements are made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update any forward-looking statements. If GlobalX does update one or more forward-looking statements, no inference should be made that it will make additional updates with respect to those or other forward-looking statements.

  
GLOBAL CROSSING AIRLINES GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value and share quantities)
 
  
  March 31, 2024 (Unaudited)  December 31, 2023 
       
Current Assets      
Cash and cash equivalents $8,300  $11,596 
Restricted cash  3,764   6,080 
Accounts receivable, net of allowance of $454 and $95 as March 31, 2024 and December 31, 2023, respectively.  5,574   10,180 
Prepaid expenses and other current assets  3,177   2,552 
Current assets held for sale  181   184 
Total Current Assets  20,996   30,592 
Property and equipment, net  6,776   5,525 
Finance leases, net  20,878   4,108 
Operating lease right-of-use assets  86,429   76,880 
Deposits  12,959   12,506 
Other assets  2,425   1,717 
Total Assets $150,463  $131,328 
Current liabilities      
Accounts payable $11,999  $7,481 
Accrued liabilities  17,648   17,465 
Deferred revenue  3,814   9,896 
Customer deposits  4,266   3,935 
Current portion of long-term operating leases  12,311   13,650 
Current portion of finance leases  2,160   599 
Total current liabilities  52,198   53,026 
Other liabilities      
Note payable  29,331   29,175 
Long-term operating leases  75,677   65,158 
Long-term finance leases  18,592   3,292 
Other liabilities  568   544 
Total other liabilities  124,168   98,169 
Total Liabilities $176,366  $151,195 
Commitments and Contingencies (Note 7)      
Equity (Deficit)      
$.001 par value; 200,000,000 authorized; 59,667,950 and 58,925,871 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively $60  $59 
Additional paid-in capital  39,285   38,943 
Retained deficit  (65,473)  (59,094)
Total Company's stockholders’ deficit  (26,128)  (20,092)
Noncontrolling interest  225   225 
Total stockholders’ deficit  (25,903)  (19,867)
Total Liabilities and Deficit $150,463  $131,328 
 
See accompanying notes to consolidated financial statements.


GLOBAL CROSSING AIRLINES GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except share and per share amounts)
 
  
  Three Months Ended March 31, 2024  Three Months Ended March 31, 2023 
       
Revenue $53,835  $32,151 
Operating Expenses      
Salaries, Wages & Benefits  16,775   11,168 
Aircraft Fuel  8,199   7,949 
Maintenance, materials and repairs  2,933   1,559 
Depreciation and amortization  1,166   443 
Contracted ground and aviation services  6,903   4,853 
Travel  4,282   2,254 
Insurance  1,633   949 
Aircraft Rent  12,761   5,644 
Other  3,802   2,862 
Total Operating Expenses $58,454  $37,681 
Operating Loss  (4,619)  (5,530)
Non-Operating Expenses      
Interest Expense  1,760   542 
Total Non-Operating Expenses  1,760   542 
Loss before income taxes  (6,379)  (6,072)
Income tax expense  -   - 
Net Loss  (6,379)  (6,072)
Net Income attributable to Noncontrolling Interest  -   - 
Net Loss attributable to the Company  (6,379)  (6,072)
Loss per share:      
Basic  (0.11) $(0.11)
Diluted  (0.11) $(0.11)
Weighted average number of shares outstanding  59,234,601   54,490,925 
       
Fully diluted shares outstanding  59,234,601   54,490,925 
 
See accompanying notes to consolidated financial statements.


GLOBAL CROSSING AIRLINES GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(UNAUDITED)
(In thousands, except shares quantities)
 
  
  Common Stock Number of Shares  Amount  Additional Paid in Capital  Retained Deficit  Total     
Beginning – January 1, 2023  53,440,482  $53  $30,774  $(38,083) $(7,256)    
Issuance of shares – options exercised  150,000   0   67   -   67     
Issuance of shares – warrants exercised  2,499,453   2   1,134   -   1,136     
Issuance of shares - share based compensation on RSUs  208,416   0   500   -   500     
Loss for the period  -   -   -   (6,072)  (6,072)    
Ending – March 31, 2023  56,298,351  $55  $32,475  $(44,155) $(11,625)    
                    
  Common Stock Number of Shares  Amount  Additional Paid in Capital  Retained Deficit  Total Noncontrolling Interest Total 
Beginning – January 1, 2024  58,925,871  $59  $38,943  $(59,094) $(20,092)$225 $(19,867)
Issuance of shares - share based compensation on RSUs  742,079   1   342   -   343  -  343 
Loss for the period  -   -   -   (6,379)  (6,379) -  (6,379)
Ending – March 31, 2024  59,667,950  $60  $39,285  $(65,473) $(26,128)$225 $(25,903)
 
See accompanying notes to consolidated financial statements.


GLOBAL CROSSING AIRLINES GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
 
  For The Three Months
Ended March 31,
 
  2024  2023 
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $(6,379) $(6,072)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation expense  1,166   443 
Bad debt expense (recovery)  359   (18)
Loss on sale of property     136 
Gain on sale of spare parts     (56)
Foreign exchange loss     1 
Amortization of debt issue costs  157   250 
Amortization of operating lease right of use assets  2,704   1,847 
Share-based payments  343   501 
Interest on finance leases  309   93 
Changes in assets and liabilities:      
Accounts receivable  4,248   (1,255)
Assets held for sale  3   256 
Prepaid expenses and other current assets  (626)  (121)
Accounts payable  4,518   359 
Accrued liabilities and other liabilities  (5,569)  4,803 
Operating lease obligations  (3,073)  (2,018)
Other liabilities  (294)  155 
Net cash used in operating activities  (2,134)  (696)
CASH FLOWS FROM INVESTING ACTIVITIES      
Deposits, deferred costs and other assets  (1,529)  (824)
Purchases of property and equipment  (1,717)  (307)
Net cash used in investing activities  (3,246)  (1,131)
CASH FLOWS FROM FINANCING ACTIVITIES      
Principal payments on finance leases  (231)  (111)
Proceeds on issuance of shares     1,204 
Proceeds from note payable     2,500 
Net cash (used in) provided by financing activities  (231)  3,592 
Net (decrease) increase in cash, cash equivalents, and restricted cash  (5,611)  1,766 
Cash, cash equivalents and restricted cash - beginning of the period  17,675   5,461 
Cash, cash equivalents and restricted cash - end of the period $12,064  $7,227 
Non-cash transactions      
Right-of-use (ROU) assets acquired through operating leases $12,252  $16,209 
Equipment acquired through finance leases $17,100  $1,215 
Cash paid for      
Interest $2,588  $291 
 
See accompanying notes to consolidated financial statements.