8-K
Global Crossing Airlines Group Inc. (JETMF)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 6, 2024
GLOBAL CROSSING AIRLINES GROUP INC.
(Exact name of registrant as specified in its charter)
| Delaware | 000-56409 | 98-1350261 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification No.) |
4200 NW 36^th^ Street, Building 5A
Miami International Airport
Miami, FL 33166
(Address of Principal Executive Office) (Zip Code)
(786) 751-8503
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
Global Crossing Airlines Group Inc. (the “Company”) is furnishing this information under Item 2.02 of Form 8-K.
The information in this Current Report, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Current Report, including Exhibit 99.1, shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act.
On March 6, 2024, the Company issued a press release announcing its financial results for the twelve months ended December 31, 2023. A copy of the press release is attached as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure.
On March 6, 2024, representatives of the Company made presentations to investors using slides containing the information attached to this Current Report on Form 8-K as Exhibit 99.2 (the “Investor Presentation”) and incorporated herein by reference.
The information contained in the Investor Presentation is summary information that is intended to be considered in the context of the Company’s Securities and Exchange Commission (“SEC”) filings and other public announcements that the Company may make, by press release or otherwise, from time to time. The Company undertakes no duty or obligation to publicly update or revise the information contained in this report, although it may do so from time to time as its management believes is warranted. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosure.
The Investor Presentation includes financial information not prepared in accordance with generally accepted accounting principles (“Non-GAAP Financial Measures”). By filing this Current Report on Form 8-K and furnishing the information contained herein, the Company makes no admission as to the materiality of any information in this report that is required to be disclosed solely by reason of Regulation FD.
The information presented in Item 7.01 of this Current Report on Form 8-K and Exhibit 99.2 shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, unless the Company specifically states that the information is to be considered “filed” under the Exchange Act or specifically incorporates it by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01 Exhibits
| Exhibit No. | Name |
|---|---|
| 99.1 | Press release dated March 6, 2024 |
| 99.2 | Investor Presentation Slideshow in use beginning March 6, 2024 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GLOBAL CROSSING AIRLINES GROUP INC. | ||
|---|---|---|
| Date: March 7, 2024 | By: | /s/ Ryan Goepel |
| Name: Ryan Goepel<br> <br>Title: President and Chief Financial Officer |
EX-99.1
Exhibit 99.1
NEWS RELEASE
Global Crossing Airlines, the Nation’s Fastest Growing Charter Airline, Achieves Record Annual Revenues
March 6 2024
MIAMI, FL (GLOBE NEWSWIRE) — Global Crossing Airlines Group, Inc. (JET: Cboe CA; JET.B: Cboe CA; JETMF: OTCQB) (the “Company” or “GlobalX”) today reported fourth quarter and 2023 annual financial results, which saw record revenue for Q4 of $53.5M and $160M for the year. All figures are in United States dollars and prepared in accordance with U.S. GAAP.
Annual 2023 Highlightsand Financial Results
| • | Annual Revenues of $160.1 Million |
|---|---|
| • | EBITDAR^(1)^ of $20 Million, a fourfold increase over 2022 |
| --- | --- |
| • | Block Hours flown more than doubled |
| --- | --- |
| • | Aircraft Utilization jumps 26.3% |
| --- | --- |
| • | Pilot count more than doubles |
| --- | --- |
| • | Fleet size grows to 14 aircraft |
| --- | --- |
“As we reflect on a year marked by unprecedented growth, we remain steadfast in our commitment to charting a course towards sustained profitability and operational excellence. With a relentless focus on industry-leading on-time performance, we are expecting demand for passenger charters to soar in 2024. Looking ahead, we are strategically sourcing aircraft to bolster our capacity and optimize revenue-earning opportunities over the next two quarters,” said Chris Jamroz, Executive Chairman of GlobalX.
GlobalX operated 18,072 block hours in 2023 more than doubling the 8,666 block hours operated in 2022. Annual Net Income was ($21) million, EBITDAR^(1)^on an unadjusted basis was $20 million and EPS was $(0.37).
“The increase in revenue and total block hours flown was attributed to several factors”, added Ryan Goepel, GlobalX President and CFO. “The Company’s average fleet increased from 7 in 2022 to 11 in 2023 increasing its capacity while strong passenger demand drove not only increased activity but higher rates for charter contracts. Continued focus on efficiency and benefits of a larger scale operation enabled a 15% improvement in operating performance. Going forward, the Company continues to grow its revenue faster than its cost structure, as the airline works toward achieving scale and sustained profitability.”
During Q4 the Company continued to invest in growing the cadre of pilots, having invested approximately $7 million in training and adequate staffing in anticipation of new aircraft deliveries in the first half of 2024.
Liquidity
GlobalX ended the year with $17.7M in cash and restricted cash which is up 31% as compared to December 31, 2022. The Company has also reached an agreement with GEM to extend the existing facility agreement for another twelve months.
(1) Refer below to the section “Non-GAAP Financial Measures” for additional information.
Conference Call/Webcast Detail
GlobalX will be hosting a webinar on March 6, 2023 to provide a business update and discuss the results.
When: March 6^th^, 2023, 2:00 PM Eastern Time (US and Canada)
Topic: Global Crossing Airlines - Year End 2023 Earnings Release & Management Update
Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_S2liyBGcTiW1uWpwJx5S5Q
After registering, you will receive a confirmation email containing information about joining the webinar.
For more information, please contact:
Ryan Goepel,President and Chief Financial Officer
Email: ryan.goepel@globalxair.com
Tel: 786.751.8503
3
GLOBAL CROSSING AIRLINES GROUP INC.
CONSOLIDATED BALANCE SHEETS
| December 31, 2023 | December 31, 2022 | |||||
|---|---|---|---|---|---|---|
| Current Assets | ||||||
| Cash and cash equivalents | $ | 11,595,706 | $ | 1,875,673 | ||
| Restricted cash | 6,079,531 | 3,585,261 | ||||
| Accounts receivable, net of allowance | 10,180,739 | 2,664,174 | ||||
| Prepaid expenses and other current assets | 2,551,612 | 2,193,449 | ||||
| Current assets held for sale | 184,155 | 1,405,741 | ||||
| Total Current Assets | 30,591,743 | 11,724,298 | ||||
| Property and equipment, net | 5,524,990 | 2,441,288 | ||||
| Finance leases, net | 4,108,277 | 2,710,899 | ||||
| Operating lease<br>right-of-use assets | 76,880,504 | 27,952,609 | ||||
| Deposits | 12,506,275 | 5,702,089 | ||||
| Other assets | 1,716,558 | 632,790 | ||||
| Total Assets | $ | 131,328,347 | $ | 51,163,973 | ||
| Current liabilities | ||||||
| Accounts payable | $ | 7,481,071 | $ | 4,997,080 | ||
| Accrued liabilities | 17,465,320 | 9,458,629 | ||||
| Deferred revenue | 9,895,583 | 3,200,664 | ||||
| Customer deposits | 3,935,496 | 1,617,337 | ||||
| Current portion of notes payable | — | 1,810,468 | ||||
| Current portion of long-term operating leases | 13,650,119 | 6,445,915 | ||||
| Current portion of finance leases | 599,228 | 335,527 | ||||
| Total current liabilities | 53,026,817 | 27,865,620 | ||||
| Other liabilities | ||||||
| Note payable | 29,174,794 | 5,081,294 | ||||
| Long-term operating leases | 65,158,453 | 23,189,835 | ||||
| Other liabilities | 3,835,424 | 2,282,892 | ||||
| Total other liabilities | 98,168,671 | 30,554,020 | ||||
| Total Liabilities | $ | 151,195,488 | $ | 58,419,641 | ||
| Commitments and Contingencies | ||||||
| Equity (Deficit) | ||||||
| Common stock - $.001 par value; 200,000,000 authorized; 58,925,871 and 53,440,482 issued and<br>outstanding as of December 31, 2023 and December 31, 2022, respectively | $ | 58,891 | $ | 53,440 | ||
| Additional paid-in capital | 38,943,133 | 30,774,197 | ||||
| Retained deficit | (59,093,845 | ) | (38,083,304 | ) | ||
| Total Company’s stockholders’ deficit | (20,091,821 | ) | (7,255,667 | ) | ||
| Noncontrolling interest | 224,680 | — | ||||
| Total stockholders’ deficit | (19,867,141 | ) | (7,255,667 | ) | ||
| Total Liabilities and Deficit | $ | 131,328,347 | $ | 51,163,973 |
4
GLOBAL CROSSING AIRLINES GROUP INC.
CONSOLIDATED STATEMENT OF OPERATIONS
| Year EndedDecember 31, 2023 | Year EndedDecember 31, 2022 | |||||
|---|---|---|---|---|---|---|
| Operating Revenue | $ | 160,121,525 | $ | 97,110,205 | ||
| Operating Expenses | ||||||
| Salaries, Wages, & Benefits | 54,056,847 | 30,629,414 | ||||
| Aircraft Fuel | 29,475,548 | 23,035,395 | ||||
| Maintenance, materials and repairs | 8,602,949 | 4,377,378 | ||||
| Depreciation and amortization | 2,292,797 | 609,489 | ||||
| Contracted ground and aviation services | 20,506,701 | 15,607,926 | ||||
| Travel | 8,334,474 | 5,024,758 | ||||
| Insurance | 5,009,477 | 3,580,377 | ||||
| Aircraft Rent | 33,631,717 | 15,614,081 | ||||
| Other | 14,078,145 | 9,867,929 | ||||
| Total Operating Expenses | $ | 175,988,655 | $ | 108,346,747 | ||
| Operating Loss | (15,867,130 | ) | (11,236,542 | ) | ||
| Non-Operating Expenses | ||||||
| Foreign Exchange (gain) or loss | — | (96,415 | ) | |||
| Other non-operating expenses | — | 3,058,938 | ||||
| Interest Expense | 4,916,281 | 1,621,932 | ||||
| Total Non-Operating Expenses | 4,916,281 | 4,584,455 | ||||
| Loss before income taxes | (20,783,411 | ) | (15,820,997 | ) | ||
| Income tax expense | 2,450 | — | ||||
| Net Loss | (20,785,861 | ) | (15,820,997 | ) | ||
| Net Income attributable to Noncontrolling Interest | 224,680 | — | ||||
| Net Loss attributable to the Company | (21,010,541 | ) | (15,820,997 | ) | ||
| Loss per share: | ||||||
| Basic | $ | (0.37 | ) | $ | (0.30 | ) |
| Diluted | $ | (0.37 | ) | $ | (0.30 | ) |
| Weighted average number of shares outstanding | 56,763,879 | 52,074,647 | ||||
| Fully diluted shares outstanding | 56,763,879 | 52,074,647 |
5
GLOBAL CROSSING AIRLINES GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| For The Twelve Months EndedDecember 31, | ||||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Net loss | $ | (20,785,861 | ) | $ | (15,820,997 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Depreciation expense | 2,292,797 | 609,489 | ||||
| Bad debt expense | 5,915 | 219,759 | ||||
| Loss on sale of property | 135,772 | — | ||||
| Loss (gain) on sale of spare parts | 22,619 | (191,530 | ) | |||
| Loss on deferred costs | — | 2,809,031 | ||||
| Foreign exchange loss (gain) | 11,531 | (96,415 | ) | |||
| Gain on disposal of flight equipment | (455,700 | ) | — | |||
| Amortization of debt issue costs | 901,956 | 630,290 | ||||
| Amortization of operating lease right of use assets | 8,172,685 | 4,797,056 | ||||
| Share-based payments | 2,465,039 | 1,386,533 | ||||
| Interest on finance leases | 435,266 | 102,561 | ||||
| Changes in assets and liabilities: | ||||||
| Accounts receivable | (7,746,494 | ) | (1,946,757 | ) | ||
| Assets held for sale | 1,665,740 | (340,561 | ) | |||
| Prepaid expenses and other current assets | (321,844 | ) | (1,262,183 | ) | ||
| Accounts payable | 2,364,759 | 2,938,216 | ||||
| Accrued liabilities and other liabilities | 17,153,154 | 6,353,307 | ||||
| Operating lease obligations | (7,927,758 | ) | (3,482,839 | ) | ||
| Other liabilities | 230,709 | (306,008 | ) | |||
| Net cash used in operating activities | (1,379,715 | ) | (3,601,048 | ) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| Deposits, deferred costs and other assets | (9,143,650 | ) | (3,247,035 | ) | ||
| Purchases of property and equipment | (4,042,292 | ) | (1,911,669 | ) | ||
| Net cash used in investing activities | (13,185,942 | ) | (5,158,704 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Principal payments on finance leases | (479,923 | ) | (501,169 | ) | ||
| Proceeds on issuance of shares | 1,871,784 | 802,325 | ||||
| Proceeds from note payable | 35,289,725 | 5,925,529 | ||||
| Repayment of note payable | (9,901,626 | ) | — | |||
| Net cash provided by financing activities | 26,779,960 | 6,226,685 | ||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 12,214,303 | (2,533,067 | ) | |||
| Cash, cash equivalents and restricted cash - beginning of the year | 5,460,934 | 7,994,001 | ||||
| Cash, cash equivalents and restricted cash - end of the year | $ | 17,675,237 | $ | 5,460,934 | ||
| Non-cash transactions | ||||||
| Right-of-use (ROU)<br>assets acquired through operating leases | $ | 57,100,580 | $ | 10,081,357 | ||
| Equipment acquired through finance leases | $ | 1,915,366 | $ | (2,840,936 | ) | |
| Note Payable reductions through accounts receivable from sale of Assets held for sale | $ | 145,089 | $ | — | ||
| Discount on proceeds from note payable due to professional fees | $ | 35,900 | $ | — | ||
| Acquisition of Intangible Asset | $ | 428,400 | $ | — | ||
| Airframe Parts acquired through financing | $ | — | $ | 1,065,180 | ||
| Warrants issued for debt (debt discount) | $ | 3,837,565 | $ | 2,130,642 | ||
| Cash paid for | ||||||
| Interest | $ | 753,414 | $ | 622,439 |
6
GLOBAL CROSSING AIRLINES GROUP INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
| CommonStock<br>Number ofShares | Amount | AdditionalPaid inCapital | RetainedDeficit | 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 | 1,397,402 | 1,398 | 662,344 | — | 663,742 | ||||||||||||
| Warrants issued | — | — | 2,130,642 | — | 2,130,642 | ||||||||||||
| Share based compensation on stock options or RSUs | 537,954 | 538 | 1,342,446 | — | 1,342,984 | ||||||||||||
| Employees Stock Purchase plan | 267,250 | 267 | 181,864 | — | 182,131 | ||||||||||||
| Loss for the period | — | — | — | (15,820,997 | ) | (15,820,997 | ) | ||||||||||
| Ending – December 31, 2022 | $ | 53,440,482 | $ | 53,440 | $ | 30,774,196 | $ | (38,083,304 | ) | $ | (7,255,667 | ) | |||||
| Global Stockholders’ Equity (Deficit) | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Common StockNumber ofShares | Amount | Additional Paidin Capital | RetainedDeficit | Total | NoncontrollingInterest | Total | |||||||||||
| Beginning – January 1, 2023 | $ | 53,440,482 | $ | 53,440 | $ | 30,774,197 | $ | (38,083,304 | ) | $ | (7,255,667 | ) | $ | — | $ | (7,255,667 | ) |
| Issuance of shares – warrants and options exercised | 2,877,083 | 2,877 | 1,422,343 | — | 1,425,220 | — | 1,425,220 | ||||||||||
| Warrants issued | — | — | 3,837,562 | — | 3,837,562 | — | 3,837,562 | ||||||||||
| Share based compensation on stock options or RSUs | 1,803,992 | 1,769 | 2,383,130 | — | 2,384,899 | — | 2,384,899 | ||||||||||
| Employees Stock Purchase plan | 804,314 | 805 | 525,901 | — | 526,706 | — | 526,706 | ||||||||||
| Income/(Loss) for the period | — | — | — | (21,010,541 | ) | (21,010,541 | ) | 224,680 | (20,785,861 | ) | |||||||
| Ending – December 31, 2023 | $ | 58,925,871 | $ | 58,891 | $ | 38,943,133 | $ | (59,093,845 | ) | $ | (20,091,821 | ) | $ | 224,680 | $ | (19,867,141 | ) |
See accompanying notes to consolidated financial statements.
7
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.
| Year EndedDecember 31, 2023 | Year EndedDecember 31, 2022 | |||||
|---|---|---|---|---|---|---|
| EBITDAR Reconciliation | ||||||
| Operating Loss | $ | (15,867,130 | ) | $ | (11,236,542 | ) |
| Depreciation and amortization | 2,292,797 | 609,489 | ||||
| EBITDA | (13,574,333 | ) | (10,627,053 | ) | ||
| Aircraft Rent | 33,631,717 | 15,614,081 | ||||
| EBITDAR | 20,057,384 | 4,987,028 | ||||
| Adjusted EBITDAR Reconciliation | ||||||
| EBITDA | $ | (13,574,333 | ) | (10,627,053 | ) | |
| Share-based compensation | 2,465,039 | 1,386,533 | ||||
| Adjusted EBITDA | (11,109,294 | ) | (9,240,520 | ) | ||
| Aircraft Rent | 33,631,717 | 15,614,081 | ||||
| Adjusted EBITDAR | 22,522,423 | 6,373,561 |
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.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain “forward looking statements” and “forward-looking information”, as defined under applicable UnitedStates 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 theCompany’s aircraft fleet size, the destinations that the Company intends to service, the expected delivery timelines for aircraft, future demand, increased block hours, future capacity estimates, future revenue expectations, the commitment tosustained profitability and operational excellence; the focus on industry-leading on-time performance, the continued focus on efficiency and benefits of a larger scaled operation, and expected reduction inpilot expenditures.
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 airlineoperations, 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 timelyreceipt 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 onbusiness 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 ofaircraft. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
| JET: Cboe CA | www.globalairlinesgroup.com |
|---|
Forward-looking statements involve known and unknown risks, uncertainties and other factors which maycause 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, theability 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 the global uncertaintycreated by COVID-19, future relations with shareholders, volatility of fuel prices, increases in operating costs, terrorism, pandemics, natural disasters, currency fluctuations, interest rates, risks specificto 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 anyrelated 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 Companydoes 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 otherforward-looking statements.
| JET: Cboe CA | www.globalairlinesgroup.com |
|---|
EX-99.2
2023 FINANCIAL RESULTS | MARCH 6, 2024 TO BECOME AMERICA’S LARGEST CHARTER AIRLINE SETTING THE INDUSTRY HIGH MARK FOR ON-TIME PERFORMANCE, RELIABILITY AND PROFITABILITY. Exhibit 99.2
This presentation was prepared by Global Crossing Airlines Group Inc. (the “Company”) as a general presentation aimed solely at providing information about the Company, its operations and financial results. You should not rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever, with respect to any proposed transaction (the "Possible Transaction") or otherwise. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided together herewith. You and your directors, officers, employees, agents and affiliates (collectively, the "Recipient") must hold this document and any oral information provided in connection with this document in strict confidence and may not communicate, reproduce, distribute or disclose it to any other person, or refer to it publicly, in whole or in part at any time except with our prior written consent. If you are not the intended recipient of this document, please delete and destroy all copies immediately. The information contained in the presentation is provided for purposes of convenience only; it neither constitutes a basis for making any investment decision nor does it substitute an independent collection and analysis of information. Moreover, it does not constitute a recommendation, an offer to sell and/or a solicitation or invitation of an offer to buy or subscribe for any securities of the Company or any of its subsidiaries or affiliates, nor shall there be any offer or sale of securities in any state or jurisdiction in which such offer or sale would be unlawful, nor a substitute for independent judgment or independent collection and analysis of information on the part of any investor. It is expected that if any securities are ultimately offered and sold by the Company, investors in such securities will conduct their own independent investigation of the Company and the terms of any such securities, as well as the data, assumptions, estimates, appraisals, methodologies and projections contained or referred to in this presentation. Any securities described herein have not been registered under the Securities Act of 1933 (the “Securities Act”) and may not be offered or sold in the United States or to U.S. Persons (other than distributors) unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved any securities discussed herein or determined if the information is truthful or complete. Any representation to the contrary is a criminal offense. The information and details contained in this presentation are partially provided and presented in a condensed form solely for convenience purposes. You should not assume that any information in this presentation is accurate as of any date other than the date hereof or otherwise specified herein. Except for historical information, the matters discussed in this presentation contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made and are subject to risks and uncertainties (including those risks detailed in the Company’s most recent annual report on Form 10-K and other continuing reports filed with the U.S. Securities and Exchange Commissions) that could cause the Company’s actual results may differ materially from the results discussed in such forward-looking statements. The Company is not under any obligation, and expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. In this presentation, the Company also presents certain non-GAAP measures, including EBITDA, EBITDAR and FCF, that are not required by, or presented in accordance with, GAAP. While the Company believes these are useful metrics, companies use these metrics for differing purposes and they are often calculated in ways that reflect the particular circumstances of those companies. You should exercise caution in comparing the non-GAAP metrics reported in this presentation to such metrics or other similar metrics as reported by other companies. The Company’s non-GAAP metrics have limitations as analytical tools, and you should not consider them in isolation. Some of the information contained herein includes forecasts and/or assessments based on data held by the Company as of the date hereof, as well as the Company's estimates and projections, which constitute forward-looking information. The Company has no assurance that such forecasts and/or assessments will be realized, either fully or partially, due to, among other things, the fact that they depend on external and macroeconomic factors, without the Company being able to affect them, or only partially being able to affect them, and they further depend on changes in general market conditions, regulatory changes or materialization of any of the Company's risk factors. The Company is not obligated to update or modify any such forecast and/or assessment in order to reflect events or circumstances occurring after the date of the presentation. Furthermore, the presentation contains estimates and other statistics based on external sources whose contents have not been independently reviewed by the Company, and therefore the Company is not responsible for the veracity thereof. Upon receipt of this presentation, Recipient acknowledges that Jefferies has not made, and will not make, any representations and warranties with respect to accuracy or completeness of the information contained in this presentation, the Company or the Possible Transaction, and Recipient will not rely on any statements made by Company, orally or in writing, to the contrary. Recipient acknowledges that (i) it is knowledgeable, sophisticated and experienced in making, and is qualified to make, decisions with respect to investments such as the Possible Transaction, (ii) it will be responsible for conducting its own due diligence investigation with respect to the Company and any Possible Transaction, (iii) if it (including any investment fund or funds it manages or advises) acquires any securities of the Company, it will be doing so based on the results of its own due diligence investigation of the Company, (iv) if it determines to pursue an investment in a Possible Transaction, it will negotiate the Possible Transaction directly with the Company, and Jefferies will not be responsible for the ultimate success of any such investment and (v) the decision to invest in a Possible Transaction will involve a significant degree of risk, including a risk of total loss of such investment. In light of the foregoing, to the fullest extent permitted by law, Recipient releases Jefferies, its employees, officers and affiliates from any liability with respect to Recipient’s participation, or proposed participation, in the Possible Transaction. Disclaimer
OTCQB: JETMF | JET: CBOE CA | JET.B: CBOE CA Revenue (USD) The Company continued its investment in pilot hiring and training, having spent approximately $7.0 million in the fourth quarter Q4 2023 Results $11.4 Million ($0.4) Million $53.5 Million Q4 EBITDAR Q4 EBITDA Earnings Before Interest, Taxes, Depreciation, Amortization and Rent $20 Million ANNUAL EBITDAR ($13.7) Million ANNUAL EBITDA CONTINUAL IMPROVEMENT IN ALL FINANCIAL METRICS
2023 HIGHLIGHTS & FINANCIAL RESULTS REVENUES - $160.1 MILLION 64.9% increase over 2022 EBITDAR – Four fold increase $20M in 2023 - $11.4M in the fourth quarter OTCQB: JETMF | JET: CBOE CA | JET.B: CBOE CA BLOCK HOURS FLOWN – Doubled Increases 108.5% over 2022 AIRCRAFT UTILIZATION – UP 26.3% Key driver of profitability Revenues (USD) FLEET SIZE – 14 AIRCRAFT Increase of 57%
FLIGHT BLOCK HOURS A wonderful serenity has taken possession of my entire soul, like these sweet mornings of spring which I enjoy with my whole heart. I am alone, and feel the charm of existence in this spot, which created for the bliss of souls like mine. I am so happy, my dear friend, so absorbed in the exquisite sense mere tranquil existence that I neglect talents. Quarterly Revenues OTCQB: JETMF | JET: CBOE CA | JET.B: CBOE CA
2023 KPI’s
OTCQB: JETMF | JET: CBOE CA | JET.B: CBOE CA “GlobalX has grown incredibly fast over the past few years but now it’s time to concentrate on only those things that deliver profitability.” Continual improvement in all financial metrics Scale to the largest 121 narrowbody operator targeting 35 aircraft by end of 2026 Setting industry high standard for on time performance, reliability and profitability Passenger Market vs Cargo – Managing capacity vs Growing demand
Thank You OTCQB: JETMF | JET: CBOE CA
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