EX-99.1 2 d281657dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

NEWS RELEASE

Global Crossing Airlines Reports

Full Year Revenues over 5 Months of Operations of US$14.3M

Finished 2021 with US$8.0M in Cash, Cash equivalents, and Restricted Cash

Significant highlights and milestones for the year include:

 

  •  

Obtained its US FAA Aircraft Operating Certificate as a US 121 Flag and Supplemental Carrier the “Certification”; Obtained its Certificate of Public Convenience and Necessity for Foreign Charter Air Transportation from the US DOT to Fly Internationally

 

  •  

Entered revenue service on August 7, 2021 with one Airbus A320 Aircraft; five additional were placed on the Certificate and into revenue service by December 31, 2021

 

  •  

Signed agreements for 9 Airbus A321 freighters

 

  •  

Additional three A320 passenger aircraft on top of the existing six A320 family passenger aircraft with world class lessors such as DAE, Alterna and Greenwich Highland

2022 Outlook

 

  •  

Q1 2022 revenue will exceed 2021 revenues

 

  •  

Expect full year 2022 revenue to exceed $90M with over half secured today under long term contracts

 

  •  

$161M in long term contracts and LOIs secured in Q1 for 2022 and beyond

 

  •  

Signed lease for 2 additional A321F aircraft

MIAMI, FLORIDA, March 31, 2022 – Global Crossing Airlines Group, Inc. (JET: NEO; JET.B: NEO; JETMF: OTCQB) (the “Company” or “GlobalX”) today reported financial results for its first year of revenue operations, including revenue of $14.3M and a net operating loss of $19.8M or ($0.43) per diluted share. Included in GlobalX’s operating results are an estimated $11.1M in expense related to pre-revenue operations during the year, as well as approximately $1.8M in non-recurring expenses. All dollar amounts in this press release are in United States dollars.

“We certified GlobalX as a US 121 Flag carrier during the pandemic, accomplishing this in 12 months,” said Ed Wegel, Chairman and CEO of GlobalX. “During our first year of operations which was from August to December, we operated 730 revenue flights, and approximately 1,700 block hours, for nearly two dozen customers.”

“I am very excited by the scope and scale of operations achieved since initiating revenue service. Besides successfully launching our ad-hoc charter business, we have flown for tour operators, college sports teams and fans, and established multiple long-running program charter and ACMI relationships. In short, we have been executing the business plan we laid out when we first started Global Crossing.”

Mr. Wegel further added: “Our focus remains on delivering exceptional customer value and while scaling the airline towards profitability. We continue to see increasing demand for our aircraft as well as our growing portfolio of customers and products.”

Full Year and Fourth Quarter Results

During 2021, GlobalX operated a total 1,679 block hours with revenues of $14.3M, both of which were zero in 2020. The net loss for the year was $19.8M, and GlobalX ended the year with $8.0M in cash, cash equivalents, and restricted cash. Operating losses during the year were driven by the investments necessary to achieve FAA certification, begin the process of scaling operations, and a limited number of aircraft. Across the 12 months of 2021, GlobalX operated an average of 1.2 aircraft for a total of 438 aircraft days available for sale.

During the fourth quarter of 2021, GlobalX operated 1,293 block hours with revenues of $11.2M, both of which were zero for the fourth quarter of 2020. This represents a 260% increase in revenue over Q3 2021. Operating losses for the quarter totaled $4.5M with an estimated $1.8M in expenses related to costs associated with training, aircraft acquisition, share compensation and S-1 filing. For the three months ending December 31, 2021, GlobalX operated an average of 3.8 aircraft for a total of 347 aircraft days for sale.

2022 Outlook

Looking forward we expect revenue in Q1 to exceed all revenue in 2021 and we expect to see and average of 30% sequential quarterly revenue growth through the rest of 2022 as we add additional aircraft and launch our cargo operations. Based on current contracts and projected aircraft delivery dates, we anticipate reaching profitability by Q3 2022.

Commenting on the results, Mr. Wegel stated: “We believe we have established a strong foundation for our airline, with a solid and highly experienced team of airline professionals, and we are well positioned to grow successfully throughout 2022 and into the future.”

As a reminder GlobalX will be hosting a Zoom Webinar to discuss 2021 results and the outlook for 2022 today at 2pm Eastern. Please go to the following website to register: https://us02web.zoom.us/webinar/register/WN__bNDgcKjTainuQWzhO6DKw

The foregoing guidance is based on management’s current views with respect to operating and market conditions and customer forecasts. Actual results may differ materially from what is provided here today as a result of, among other things, the factors described under “Forward-Looking Statements” below.

For full details of the 2021 financial results, Management’s discussion and analysis of financial results and consolidated financial statements and notes for the 12 months ended December 31, 2021, will be filed under the Company’s SEDAR profile at www.sedar.com. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP).

About Global Crossing Airlines

GlobalX is a US 121 domestic flag and supplemental airline flying the Airbus A320 family aircraft. GlobalX flies as an ACMI and charter airline serving the US, Caribbean, and Latin American markets. For more information, please visit www.globalxair.com.

For more information, please contact:

Ryan Goepel, Chief Financial Officer

Email: ryan.goepel@globalxair.com

Tel: 786.751.8503

Cautionary Note Regarding Forward-Looking Information

This news release contains “forward-looking information” concerning anticipated developments and events that may occur in the future. Forward-looking information contained in this news release includes, but is not limited to, statements with respect to the Company’s intention to fly as an ACMI and wet lease charter airline, the Company’s aircraft fleet size, the destinations that the Company intends to service, the expected delivery timelines for aircraft, future demand for block hours, increases in flight activity and expected future revenues and profitability.

In certain cases, forward-looking information can be identified by the use of words such as “plans”, “expects” “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “ 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 information 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; the timely receipt of governmental approvals; the success of airline operations of GlobalX; 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; 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 information involves 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 information. 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 disruptions, failure to retain or obtain sufficient aircraft, domestic and international airline industry conditions, 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 airline industry, the ability of management to implement GlobalX’s operational strategy, the ability to attract qualified management and staff, labour disputes, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits; and the additional risks identified in the “Risk Factors” section of the Company’s reports and filings with applicable Canadian securities regulators. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking information, 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 information. The forward-looking information is 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 information.

GLOBAL CROSSING AIRLINES GROUP INC.

(FORMERLY “CANADA JETLINES LTD.”)

CONSOLIDATED BALANCE SHEETS

 

     DECEMBER 31,
2021		     DECEMBER 31,
2020		  

ASSETS

     

Current assets

     

Cash and cash equivalents

    $ 5,241,716     $ 523,690  

Restricted cash

      2,752,285       25,000  

Accounts receivable, net of allowance

      745,646       —    

Prepaid expenses and other current assets

      848,490       350,420  

Current assets held for sale

      —         11,400  
  

 

 

    

 

 

  
     9,588,137       910,510  

Property and equipment, net of accumulated depreciation of $36,122

      618,883       422  

Operating lease right-of-use assets

      22,668,308       2,520,243  

Deferred costs and other assets

      6,198,338       3,740,037  
  

 

 

    

 

 

  
   $ 39,073,666     $ 7,171,212  
  

 

 

    

 

 

  
LIABILITIES AND SHAREHOLDERS’ EQUITY     

Current liabilities

     

Accounts payable

    $ 3,574,186     $ 1,226,861  

Accrued liabilities

      5,963,761       —    

Due from related parties

      197,558       232,027  

Current portion of notes payable

      1,573,000       392,700  

Warrant liability

      —         824,607  

Current portion of long-term operating leases

      3,393,497       605,397  

Current liabilities held for sale

      —         274,951  
  

 

 

    

 

 

  
     14,702,002       3,556,543  

Note payable

      —         1,178,100  

Long-term operating leases

      20,042,343       1,914,846  

Other liabilities

      83,491       187,928  

Deferred taxes

      —         —    

Non-current liabilities held for sale

      —         31,416  
  

 

 

    

 

 

  
     34,827,836       6,868,833  
  

 

 

    

 

 

  
COMMITMENTS AND CONTINGENCIES     

Shareholders’ Equity

     

Common stock—$.001 par value; 200,000,000 authorized; 51,237,876 and 28,938,060 issued and outstanding as of December 31, 2021 and 2020, respectively

      51,237       28,938  

Common stock subscribed

      —         452,269  

Additional paid-in capital

      26,456,900       2,264,966  

Retained deficit

      (22,262,307 )      (2,443,794 ) 
  

 

 

    

 

 

  
     4,245,830       302,379  
  

 

 

    

 

 

  
   $ 39,073,666     $ 7,171,212  
  

 

 

    

 

 

  

GLOBAL CROSSING AIRLINES GROUP INC.

(FORMERLY “CANADA JETLINES LTD.”)

CONSOLIDATED STATEMENT OF OPERATIONS

 

     YEAR ENDED
DECEMBER
31, 2021		      YEAR ENDED
DECEMBER
31, 2020		  
OPERATING REVENUES    $ 14,292,472      $ —    
OPERATING EXPENSES      

Salaries, Wages, & Benefits

      9,784,450        425,787  

Aircraft Fuel

      3,142,720        —    

Maintenance, materials and repairs

      832,609        —    

Depreciation and amortization

      34,289        125.00  

Contracted ground and aviation services

      3,336,782        —    

Travel

      961,258        24,781  

Insurance

      1,713,756        —    

Aircraft Rent

      4,149,871        —    

Other

      7,497,021        2,202,988  
  

 

 

     

 

 

  

Total Operating Expenses

      31,452,756        2,653,681  

Loss from operations

      (17,160,284)        (2,653,681)  

Loss (Gain) on Warrant Valuation

      2,650,772        (609,440)  

Unrealized Loss (Gain) on Financial Instruments

      154,120        —    

Interest Income

      (515)        18  

Interest expense

      31,558        (107)  
  

 

 

     

 

 

  

Loss from continuing operations

      (19,996,219)        (2,044,152)  

Income from discontinued operations, including gain on disposal of $302,830 (Note 4)

      177,706        —    
  

 

 

     

 

 

  

Net loss before income taxes

    $ (19,818,513)      $ (2,044,152)  

Income tax expense (benefit)

      —          —    
  

 

 

     

 

 

  

Loss from continuing operations, net of taxes

      (19,818,513)        (2,044,152)  

Basic loss per share – continuing operations

    $ (0.43)      $ (0.11)  
  

 

 

     

 

 

  

Diluted loss per share – continuing operations

    $ (0.43)      $ (0.11)  
  

 

 

     

 

 

  

Basic earnings per share – discontinued operations

    $ 0.00      $ 0.00  
  

 

 

     

 

 

  

Diluted earnings per share – discontinued operations

    $ 0.00      $ 0.00  
  

 

 

     

 

 

  

Weighted average number of shares outstanding

      46,185,089        19,169,244  
  

 

 

     

 

 

  

Fully diluted shares outstanding

      46,185,089        19,169,244  
  

 

 

     

 

 

  

GLOBAL CROSSING AIRLINES GROUP INC.

(FORMERLY “CANADA JETLINES LTD.”)

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

     YEAR ENDED
DECEMBER 31,
2021		     YEAR ENDED
DECEMBER 31,
2020		  
CASH FLOWS FROM OPERATING ACTIVITIES     

Net loss from continuing operations

    $ (19,996,219 )    $ (2,044,152 ) 

Items not affecting cash:

     

Depreciation

      34,289       125  

Foreign exchange loss

      228,206       142,529  

Loss / (gain) on warrant revaluation

      2,650,772       (609,440 ) 

Decrease in operating lease right of use asset

      1,154,477       —    

Share-based payments

      1,254,413       216,111  

Non-cash working capital item changes:

     

Accounts receivable

      (745,646 )      —    

Prepaid expenses and other current assets

      (486,670 )      (357,546 ) 

Accounts payable

      2,072,374       1,263,591  

Accrued liabilities

      5,963,761       —  

Decrease in operating lease obligations

      (386,945 )      —    
  

 

 

    

 

 

  

Net cash used in operating activities—continuing operations

      (8,257,188 )      (1,388,782 ) 

Net cash provided by operating activities—discontinued operations

      177,706       —    
  

 

 

    

 

 

  

Net cash used in operating activities

      (8,079,482 )      (1,388,782 ) 
CASH FLOWS FROM INVESTING ACTIVITIES     

Proceeds from asset disposal

      —         24,639  

Purchases of property and equipment

      (652,750 )      —    

Deferred costs and other assets

      (2,684,307 )      (705,000 ) 
  

 

 

    

 

 

  

Net cash used in investing activities

      (3,337,057 )      (680,361 ) 
  

 

 

    

 

 

  
CASH FLOWS FROM FINANCING ACTIVITIES     

Payments to related party

      (34,469 )      (64,110 ) 

Other liabilities

      (104,437 )      187,928  

Proceeds on issuance of units

      19,032,172       2,462,599  
  

 

 

    

 

 

  

Net cash provided by financing activities – continuing operations

      18,893,266       2,586,417  

Net cash (used in) provided by financing activities – discontinued operations

      (31,416 )      31,416  
  

 

 

    

 

 

  

Net cash provided by financing activities

      18,861,850       2,617,833  
  

 

 

    

 

 

  

Net increase in cash

      7,445,311       548,690  

Cash, cash equivalents and restricted cash—beginning of the period

      548,690       —    
  

 

 

    

 

 

  

Cash, cash equivalents and restricted cash—end of the period

    $ 7,994,001     $ 548,690  
  

 

 

    

 

 

  

Cash paid for

     

Interest

    $ 31,558     $ 18  

Taxes

      —         —    

The following provides a reconciliation of cash, cash equivalents, and restricted
cash to the amounts reported on the consolidated Balance Sheets:

     

Cash and cash equivalents

    $ 5,241,716     $ 523,690  

Restricted cash

      2,752,285       25,000  
  

 

 

    

 

 

  
   $ 7,994,001     $ 548,690