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 9, 2023
GLOBAL CROSSING AIRLINES GROUP INC.
(Exact name of registrant as specified in its charter)
| Delaware | 000-56409 | 98-1350261 |
|---|---|---|
| (State or Other Jurisdiction<br> <br>of Incorporation) | (Commission<br> <br>File Number) | (I.R.S. Employer<br> <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 |
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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 9, 2023, the Company issued a press release announcing its financial results for the twelve months ended December 31, 2022. A copy of the press release is attached as Exhibit 99.1.
| Item 7.01 | Regulation FD Disclosure. |
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On March 9, 2023, 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<br>No. | Name |
| --- | --- |
| 99.1 | Press release dated March 9, 2023 |
| 99.2 | Investor Presentation Slideshow in use beginning March 9, 2023 |
| 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 14, 2023 | By: | /s/ Edward J. Wegel |
| Name: | Edward J. Wegel | |
| Title: | Chief Executive Officer |
EX-99.1
Exhibit 99.1
NEWS RELEASE
Global Crossing Airlines Announces $97.1M in Revenue for 2022
Q4 Adjusted EBITDAR of $5.2M
Forecasts over $140M in Revenue for 2023
March 9, 2023
MIAMI, FL (GLOBE NEWSWIRE) — Global Crossing Airlines Group, Inc. (JET: NEO; JET.B: NEO; JETMF: OTCQB) (the “Company” or “GlobalX”) today reported fourth quarter and 2022 annual financial results. All financial figures are in United States dollars.
Full Year and Fourth Quarter 2022 Financial Results
Total operating revenues for the 2022 year and Q4 2022 were $97.1 million and $32.5 million, respectively. This represents an increase of $82.8 million or 742% and $21.3 million or 191% when compared to the 2021 year and Q4 2021, respectively. This increase was driven by our continued growth in operations, including number of available aircraft during the year from three in 2021 to seven in 2022. In addition, GlobalX operated 2,463 revenue block hours in Q4 2022, representing an 89% increase over the number of block hours operated in Q4 2021.
Ed Wegel, Chair and CEO of GlobalX commented: “We are pleased to report strong financial and operational results for 2022. We reached $97.1M in revenue, beating previous guidance of $90 million by 8%. GlobalX finished 2022 with eight A320 family passenger aircraft, which resulted in Full Year 2022 Adjusted EBITDAR (Non-GAAP)^(1)^ of $9.0 million and a 2022 Adjusted EBITDA (Non-GAAP)^(1)^ of ($6.6 million). Q4 2022 results were an Adjusted EBITDAR of $5.3 million, an Adjusted EBITDA of approximately $845,000 and Adjusted EPS (Non-GAAP)^(1)^ of $(0.00). Those results reflect our continued efforts to expand charter operations throughout North and South America, as well as the Caribbean by adding 79 new customers during 2022.”
Mr. Wegel continued: “We continued to invest heavily during Q4 in our systems, training, and development of our people, as we added over 55 pilots, 86 flight attendants, built our cargo operating systems and continued work on important certifications. We incurred cargo related expenses in anticipation of A321 freighter (A321F) deliveries and revenue operations in Q4, which did not ultimately occur. As a result, we expect compensation to be paid because of the late deliveries which we will receive in 2023.”
2023 Update
Mr. Wegel added: “We remain bullish on 2023 with our cargo certification completed and our first A321F started revenue operations in February. We will take delivery of the second A321F and will be operating revenue flights in early Q2. We are providing guidance of expected full year revenue in 2023 of at least $140 Million from our base plan of nine passenger and two freighter aircraft. In addition to this fleet of 9/2, our target plan for 2023 is to add up to four A321F’s, and three A320 passenger aircraft. We have developed a strong reputation as a reliable operator and we will continue to add new customers and build on existing customers.”
Cost Performance
Total operating expense for 2022 year and Q4 2022 increased 244% and 115% compared to 2021 year and the Q4 2021, to $33.2 and $15.4 million, respectively. These increases were primarily driven by additional aircraft and number of block hours operated, as well as investments made to initiate our cargo operations in Q1 2023.
Liquidity
GlobalX ended the quarter with $11.7 million in current assets, an increase of $2 million compared to year end 2021 and $300,000 compared to Q3 2022. The increase is mainly due to the Company’s acquisition of an airframe for tear down that resulted in approximately $1.4 million in parts available for sale as of December 31, 2022 (“Spares Deal”).
Current liabilities increased from $14.7 million in 2021 to 27.8 million in 2022, mainly due to an increase of $6.2 million in leased aircraft liabilities as we grew our fleet from one aircraft in August 2021 to eight aircraft by December 2022, $1.6 million in aircraft fuel liabilities, $1.6 million of passenger taxes liabilities, $1.0 million of ground handling liabilities primarily due to the addition of four leased aircraft added during 2022, and $1.4 million from the Spares Deal.
GlobalX is seeking additional capital in the form of debt, convertible debt or equity in order to further invest in the business and facilitate the continued growth of the fleet, including the acquisition of additional leased aircraft, as well as for additional working capital.
Outlook
Guidance items provided in this release are based on the Company’s current estimates and are not a guarantee of future performance. GlobalX is providing revenue guidance of at least $140 million in revenue for 2023 based on a fleet of nine passenger and two cargo aircraft, a 44% increase over 2023. Currently $81.5M of this revenue is contracted and an additional $60M is currently being actively quoted and we anticipate that most of this will become contracted. We will provide updated guidance as we take delivery of additional aircraft to the current projected fleet of nine passenger and two cargo aircraft.
| (1) | Refer below to the section “Non-GAAP Financial Measures” for<br>additional information. |
|---|
For more information, please contact:
Ryan Goepel, Chief Financial Officer
Email:ryan.goepel@globalxair.com
Tel: 786.751.8503
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GLOBAL CROSSING AIRLINES GROUP INC.
(FORMERLY “CANADA JETLINES LTD.”)
CONSOLIDATED BALANCE SHEETS
| December 31,2022 | December 31,2021 | |||||
|---|---|---|---|---|---|---|
| Current Assets | ||||||
| Cash and cash equivalents | $ | 1,875,673 | $ | 5,241,716 | ||
| Restricted cash | 3,585,261 | 2,752,285 | ||||
| Accounts receivable, net of allowance | 2,664,174 | 745,646 | ||||
| Prepaid expenses and other current assets | 2,193,449 | 931,266 | ||||
| Current assets held for sale | 1,405,741 | — | ||||
| Total Current Assets | 11,724,298 | 9,670,913 | ||||
| Property and equipment, net | 2,441,288 | 618,883 | ||||
| Finance leases, net | 2,710,899 | — | ||||
| Operating lease<br>right-of-use assets | 27,952,609 | 22,668,308 | ||||
| Deposits and other assets | 6,334,878 | 6,115,562 | ||||
| Total Assets | $ | 51,163,973 | $ | 39,073,666 | ||
| Current liabilities | ||||||
| Accounts payable | $ | 4,997,080 | $ | 2,058,864 | ||
| Accrued liabilities | 9,458,629 | 4,219,491 | ||||
| Deferred revenue | 3,200,664 | 1,995,090 | ||||
| Customer deposits | 1,617,337 | 1,264,502 | ||||
| Due from related parties | — | 197,558 | ||||
| Current portion of notes payable | 1,810,468 | 1,573,000 | ||||
| Current portion of operating leases | 6,445,915 | 3,393,497 | ||||
| Current portion of finance leases | 335,527 | — | ||||
| Total current liabilities | 27,865,621 | 14,702,002 | ||||
| Other liabilities | ||||||
| Note payable | 5,081,294 | — | ||||
| Long-term operating leases | 23,189,835 | 20,042,343 | ||||
| Financial leases and other liabilities | 2,282,892 | 83,491 | ||||
| Total other liabilities | 30,554,020 | 20,125,834 | ||||
| Total Liabilities | $ | 58,419,641 | $ | 34,827,836 | ||
| Commitments and Contingencies | ||||||
| Equity (Deficit) | ||||||
| Common stock - $.001 par value; 200,000,000 authorized; 53,440,482 and 51,237,876 issued and<br>outstanding as of December 31, 2022 and December 31, 2021 | $ | 53,440 | $ | 51,237 | ||
| Additional paid-in capital | 30,774,197 | 26,456,900 | ||||
| Retained deficit | (38,083,304 | ) | (22,262,307 | ) | ||
| Total stockholders’ equity (Deficit) | (7,255,667 | ) | 4,245,830 | |||
| Total Liabilities and Equity (Deficit) | $ | 51,163,973 | $ | 39,073,666 |
See accompanying notes to consolidated financial statements.
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GLOBAL CROSSING AIRLINES GROUP INC.
(FORMERLY “CANADA JETLINES LTD.”)
CONSOLIDATED STATEMENT OF OPERATIONS
| Year ended<br>December 31,<br>2022 | Year ended<br>December 31,<br>2021 | |||||
|---|---|---|---|---|---|---|
| Operating Revenue | $ | 97,110,205 | $ | 14,292,472 | ||
| Operating Expenses | ||||||
| Salaries, Wages, & Benefits | 30,629,414 | 9,784,450 | ||||
| Aircraft Fuel | 23,035,395 | 3,142,720 | ||||
| Maintenance, materials and repairs | 4,377,378 | 832,609 | ||||
| Depreciation and amortization | 609,489 | 34,289 | ||||
| Contracted ground and aviation services | 15,607,926 | 3,336,782 | ||||
| Travel | 5,024,758 | 961,258 | ||||
| Insurance | 3,580,377 | 1,713,756 | ||||
| Aircraft Rent | 15,614,081 | 4,149,871 | ||||
| Other | 9,867,929 | 7,497,021 | ||||
| Total Operating Expenses | 108,346,747 | 31,452,756 | ||||
| Operating Loss | (11,236,542 | ) | (17,160,284 | ) | ||
| Non-Operating Expenses (Income) | ||||||
| Loss (Gain) on Warrant Valuation | — | 2,650,772 | ||||
| Foreign exchange (gain) or loss | (96,415 | ) | 154,120 | |||
| Other non-operating expenses | 3,058,938 | — | ||||
| Interest Expense | 1,621,932 | 31,043 | ||||
| Total Non-Operating Expenses | 4,584,455 | 2,835,935 | ||||
| Loss from continuing operations | (15,820,997 | ) | (19,996,219 | ) | ||
| Income from Discontinued Operations | — | 177,706 | ||||
| Loss before income taxes | (15,820,997 | ) | (19,818,513 | ) | ||
| Income tax expense | — | — | ||||
| Net Loss | (15,820,997 | ) | (19,818,513 | ) | ||
| Loss per share: | ||||||
| Basic | $ | (0.30 | ) | $ | (0.43 | ) |
| Diluted | $ | (0.30 | ) | $ | (0.43 | ) |
| Weighted average number of shares outstanding | 52,074,647 | 46,185,089 | ||||
| Fully diluted shares outstanding | 52,074,647 | 46,185,089 |
See accompanying notes to consolidated financial statements.
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GLOBAL CROSSING AIRLINES GROUP INC.
(FORMERLY “CANADA JETLINES LTD.”)
CONSOLIDATED STATEMENTS OF CASH FLOWS
| For The Twelve Months EndedDecember 31, | ||||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Net loss from continuing operations | $ | (15,820,997 | ) | $ | (19,996,219 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Depreciation | 609,489 | 34,289 | ||||
| Bad debt expense | 219,759 | — | ||||
| Loss on warrant revaluation | — | 2,650,772 | ||||
| Gain on sale of spare parts | (191,530 | ) | — | |||
| Loss on deferred costs | 2,809,031 | — | ||||
| Interest on finance leases | 102,561 | — | ||||
| Amortization of debt issue costs | 630,290 | — | ||||
| Amortization of operating lease right of use assets | 4,797,056 | 1,154,477 | ||||
| Share-based payments | 1,386,533 | 1,254,413 | ||||
| Foreign exchange (gain) loss | (96,415 | ) | 154,120 | |||
| Changes in assets and liabilities | ||||||
| Accounts receivable | (1,946,757 | ) | (745,646 | ) | ||
| Asset held for sale | (340,561 | ) | — | |||
| Prepaid expenses and other current assets | (1,262,183 | ) | (486,670 | ) | ||
| Deposits and other assets | (3,247,035 | ) | (2,684,307 | ) | ||
| Accounts payable | 2,938,216 | 2,072,374 | ||||
| Accrued liabilities and other liabilities | 6,353,307 | 5,929,292 | ||||
| Operating lease obligations | (3,482,839 | ) | (386,945 | ) | ||
| Other liabilities | (306,008 | ) | 74,086 | |||
| Net cash used in operating activities - continuing operations | (6,848,083 | ) | (10,975,964 | ) | ||
| Net cash provided by operating activities - discontinuing operations | — | 177,706 | ||||
| Net cash used in operating activities | (6,848,083 | ) | (10,798,258 | ) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| Purchases of property and equipment | (1,911,669 | ) | (652,750 | ) | ||
| Net cash used in investing activities | (1,911,669 | ) | (652,750 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Principal payments on finance leases | (501,169 | ) | — | |||
| Other liabilities | — | (104,437 | ) | |||
| Proceeds on issuance of shares | 802,325 | 19,032,172 | ||||
| Proceeds from note payable | 5,925,529 | — | ||||
| Net cash provided by financing activities – continuing operations | 6,226,685 | 18,927,735 | ||||
| Net cash provided by financing activities – discontinued operations | — | (31,416 | ) | |||
| Net cash provided by financing activities | 6,226,685 | 18,896,319 | ||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | (2,533,067 | ) | 7,445,311 | |||
| Cash, cash equivalents and restricted cash - beginning of the year | 7,994,001 | 548,690 | ||||
| Cash, cash equivalents and restricted cash - end of the year | $ | 5,460,934 | $ | 7,994,001 | ||
| Non-Investing and financing | ||||||
| Right-of-use (ROU)<br>assets acquired through operating leases | 10,081,357 | — | ||||
| Equipment acquired through finance leases | (2,840,936 | ) | — | |||
| Airframe Parts acquired through financing | 1,065,180 | — | ||||
| Warrants issued for debt (debt discount) | 2,130,642 | — | ||||
| Cash paid for | ||||||
| Interest | 622,439 | 31,558 |
See accompanying notes to consolidated financial statements
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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.
| Three Months<br>Ended<br>December 31,<br>2022 | Three Months<br>Ended<br>December 31,<br>2021 | Twelve Months<br>Ended<br>December 31,<br>2022 | Twelve Months<br>Ended<br>December 31,2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Income/(Loss) | $ | (737,994 | ) | $ | (4,231,028 | ) | $ | (11,236,542 | ) | $ | (17,160,284 | ) |
| Depreciation and amortization | 312,659 | 18,805 | 609,489 | 34,289 | ||||||||
| EBITDA | **** | (425,335 | ) | **** | (4,212,223 | ) | **** | (10,627,053 | ) | **** | (17,125,995 | ) |
| Share-based compensation | 591,199 | 688,525 | 1,386,533 | 1,254,413 | ||||||||
| Aircraft pilots training and salaries for cargo operations ^(1)^ | 680,000 | — | 2,630,000 | — | ||||||||
| Adjusted EBITDA | **** | 845,864 | **** | **** | (3,523,698 | ) | **** | (6,610,250 | ) | **** | (15,871,582 | ) |
| Aircraft Rent | 4,462,669 | 2,235,830 | 15,614,081 | 4,149,871 | ||||||||
| Adjusted EBITDAR | $ | 5,308,532 | **** | $ | (1,287,868 | ) | $ | 9,003,561 | **** | $ | (11,721,711 | ) |
| Reconciliation of Net Loss to Adjusted EPS | ||||||||||||
| Net Loss | $ | (4,440,528 | ) | $ | (4,482,623 | ) | $ | (15,820,997 | ) | $ | (19,818,513 | ) |
| GEM ^(2)^ | 2,926,501 | — | 2,926,501 | — | ||||||||
| Share-based compensation | 574,930 | 688,524 | 1,386,533 | 1,254,413 | ||||||||
| Aircraft Cargo Pilots Training and Excess Wages | 680,000 | — | 2,630,000 | — | ||||||||
| Adjusted Net Loss | $ | (259,097 | ) | $ | (3,794,099 | ) | $ | (8,877,964 | ) | $ | (18,564,100 | ) |
| Weighted average number of shares outstanding | **** | 53,301,534 | **** | **** | 46,185,089 | **** | **** | 52,074,647 | **** | **** | 46,185,089 | **** |
| Adjusted EPS | $ | (0.00 | ) | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.40 | ) |
| ^(1)^ | To exclude investments made in our cargo operations, which started operating early in Q1 2023<br> | |||||||||||
| --- | --- | |||||||||||
| ^(2)^ | Write off of GEM deferred costs and related interest | |||||||||||
| --- | --- | |||||||||||
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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. In Q1 2023, GlobalX completed DOT and FAA approvals for 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 guidance and revenues undercontract and subject to quote.
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 orquotation; 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 whereGlobalX 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 theavailability 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 achievementsof 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, theimpact 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 fortransactions subject to LOI or quotation, the effects of increased competition from our market competitors and new market entrants, passenger demand being less than anticipated, the impact of the global uncertainty created by 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 airlineindustry, 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 risksrelating 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 onits 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 theCompany 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 orintended. 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 notundertake 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.
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EX-99.2
Exhibit 99.2 Q4 2022 PRESENTATION INVESTOR UPDATE MARCH 9, 2023 NEO:JET
| NEO: JET.B | OTCQB:JETMF
AGENDA 1. 2022 ACCOMPLISHMENTS 2. FLOWN REVENUE BLOCK HOURS & QUARTERLY REVENUES 3. 2022 AND Q4 FINANCIAL RESULTS 4. 2023 OUTLOOK 5. FLEET 6. PASSENGER SALES 7. CARGO 8. PILOT RECRUITMENT 9. CERTIFICATIONS 10.CAPITAL MARKETS
ACCOMPLISHMENTS ALL $USD 2022 • Exceeded 2022 revenue forecast of $90 Million by 8% delivering 2022 revenues of $97.1 Million, 592% increase over 2021 • 2022 year end fleet size – 8 passenger aircraft • Operated Revenue flights to 266 airports for 105 Customers • Developed strong operational reliability metrics which enabled us to: • Establish NCAA core business • Dominate Florida to Dominican Republic Charter market • Establish leading charter airline to Cuba • Establish US Government contracts • In addition, we: • Received approval for a new hangar facility at FLL • Completed underlying work for 4 major certifications EASA/DOD/IOSA/CARGO
QUARTERLY REVENUE AND BLOCK HOURS 2021 - 2022 (Operated)
2022 Q4 2022 RESULTS RESULTS $9.0M* $5.3M** EBITDAR EBITDAR Earnings Before Interest, Taxes, Earnings Before Interest, Taxes, Depreciation, Amortization and Rent Depreciation, Amortization and Rent Key metric in aviation to properly compare Key metric in aviation to properly compare airlines who purchase aircraft vs lease airlines who purchase aircraft vs lease aircraft aircraft $(6.6M)* $846K** EBITDA EBITDA Earnings Before Interest, Taxes, Earnings Before Interest, Taxes, Depreciation, Amortization Depreciation, Amortization * Adjusted for $1.3M in share based compensation and $2.63M for pilot training and salaries for cargo operations ** Adjusted for $591k in share based compensation and $680k for pilot training and salaries for cargo operations
OUTLOOK 2023 • 2023 revenue forecast base case $140+ Million & positive EBITDAR/EBTIDA • Base case budget is over 58% contracted ($81.5M) • An additional $60M or 43% is currently being actively quoted and we anticipate that most of this will become contracted in the next 60 days • Assumes current fleet of only 9 Pax & 2 Cargo aircraft • 2023 fleet size target @ year end • Passenger – 9 to 12 aircraft • Cargo – 2 to 6 aircraft In addition: • Develop strong Department of Defense revenue stream • CAE Partnership – one new level 6 Full Flight Simulator delivered to Miami for GlobalX exclusive use • Break ground on new hangar complex late Q2 • Begin A330 certification in early Q3 • Complete ETOPS (Extended Twin Engine Operations) – 180 Minutes • Expand Ground Team – ground handling and fueling operations • Become member of IATA (International Air Transport Association)
2022 Fleet N277GX N276GX N278GX N627VA (A321) N281GX N282GX N628VA N966AD (A321)
FLEET EVOLUTION BY AIRCRAFT ◉ Capital ◉ Pilots◉ Ability to get aircraft out of heavy maintenance pre delivery Deliveries are driven by: 2022E Operating Fleet Composition 2023E Operating Fleet Composition 2024E Operating Fleet Composition 8 18 30 Aircraft Aircraft Aircraft 100% Passenger 66% Passenger 60% Passenger 33% Cargo 40% Cargo
AIRCRAFT DELIVERY PLAN Base Plan 1. N411GX - A321F - #2 – April 11* 2. N285GX - A320P - #9 – April 15* Target Plan 1. N287GX - A319P - #10 – Q2 2. N412GX - A321F - #3 – Q2 3. N453GX – A321F - #4 – Q3 4. N454GX – A321F - #5 – Q4 5. N436GX – A321F - #6 – Q4
PASSENGER SALES Revenue Streams • Significant repeat business • NCAA/Cuba/US Government • New multi month contracts • Havana/Dominican Republic/Summer tour operators • Expanded market opportunity due to EASA TCO, IOSA and DOD Certification • Developed VIP Tour Business • Quick change all coach to 68 VIP seating configuration
CARGO A321 FREIGHTER The A321 Freighter is a game-changer in the narrowbody freighter market • Carries 50% more cargo volume than a 737-800F • Replacement for the 757-200F • Recently signed a 260 hour contract for April that could be expanded through November 2023 for a package customer • Bidding 20-30 new projects every week • Revenue Streams • Other Airlines • Automotive • USPS • Dept of Defense • Package Carriers • GlobalX fleet of 10 A321F aircraft under lease or LOI with MSN identified is the single greatest asset of the company • Additional 5 A321F are under LOI subject to identification of suitable A321 feedstock aircraft
PILOT RECRUITMENT • We have successfully recruited 55 pilots in 2022 and have held 3 pilot classes in 2023 with 24 pilots • Major agreements have been implemented to increase pool of available pilots • OSM Aviation Academy • CAE Pilot Program • L3 Harris Pilot Pathway Program • GlobalX Colombia – intended to attract Colombian/Latin American pilots without US Work permits to fly A321 freighters – eventually sponsor these pilots to work in the US • Flow through agreements with major low-cost US carriers allows us to keep First Officers for a longer period of time
NEW CERTIFICATIONS EXPAND REVENUE OPPORTUNITIES AND MAKES US A STRONGER AND SAFER AIRLINE • EASA – TCO – Gives GLOBALX the authority to operate in Europe, the largest ACMI charter market in the world • IOSA – Allows all airlines globally to contract with GlobalX without having to complete timely and costly audits, audits they are not willing to devote time and resources to. This also provides re- assurance to our customers that we operate to the highest level of safety standards • Department of Defense – GlobalX can now bid and operate flights for the Department of Defense, an over $6B market
CAPITAL MARKETS NEO:JET | NEO: JET.B | OTCQB:JETMF Warrants Exercised Funds Received 2.1M $1M+ Warrants still to be Funds to be Received Exercised (if all exercised) (expiry April 2023) 4.7M $4.7M • Up listing to NASDAQ planned in conjunction with growth capital/debt raise in 2023 Digital programs are driving results in conjunction with increased news flow.
FOOTBALL AND BASKETBALL TEAMS * This is a representative sample of over 70 teams we have flown
Registered Trademarks • You Can’t Beat the Experience • Global Presence, Local Focus • Commercial Air Charter for Professionals • Redefining Commercial Air Charter • Our Birds of Play • Birds of a Feather • It’s Time to Fly • X Nation • X Cargo • Client Connex • Cargo Connex NEO:JET | NEO: JET.B | OTCQB:JETMF