MNG Airlines Announces Strong Preliminary Unaudited Financial Results and Operational Highlights for Full Year 2022
MNG Airlines reported strong preliminary unaudited financial results for the full year 2022, showcasing a significant revenue increase to
- Revenue increased by 24% to $359.3 million.
- Profit rose by 32% to $66.7 million, with a 19% profit margin.
- Adjusted EBITDA remained strong at $110.1 million, with a 31% margin.
- E-commerce revenue increased 59% to $81.5 million.
- Cargo ton kilometers from Asia grew by 85%.
- Adjusted EBITDA decreased slightly from $111 million in 2021 to $110.1 million in 2022.
Full Year 2022 Preliminary (Unaudited) compared to Full Year 2021 (Audited) Financial and Operational Highlights
|
Twelve Months Ended |
|||||
$ in Millions |
|
2022 |
|
2021 |
% Change |
|
Revenue |
$ |
359.3 |
$ |
289.7 |
24 |
|
Profit |
$ |
66.7 |
$ |
50.4 |
32 |
|
Adjusted EBITDA1 |
$ |
110.1 |
$ |
111.0 |
(0.8 |
) |
Departure |
Arrival |
Departure |
Arrival |
|
CTKs2 in millions |
YE 2021 |
YE 2021 |
YE 2022 |
YE 2022 |
|
60.4 |
122.7 |
111.5 |
121.8 |
|
379.1 |
287.6 |
317.8 |
276.6 |
|
1.5 |
4.1 |
15.9 |
22.0 |
Other |
13.5 |
40.0 |
11.1 |
35.9 |
Total |
454.5 |
454.5 |
456.3 |
456.3 |
-
Total revenue in 2022 was
compared to$359.3 million in 2021, representing$289.7 million 24% growth. -
Revenue growth was driven by increased activity in
Asia , as CTKs (cargo ton kilometers) departing fromAsia grew to 111.5 million in 2022 from 60.4 million in 2021, representing85% growth. MNGA prioritized charter flights to the region, resulting in102% year-on-year growth in charter services, to expand its footprint and activity in the region. This also meant a lower portion of MNGA’s overall revenue came from ACMI3 flights, which have higher margins as the customer incurs the direct operating costs. -
E-commerce revenue increased to
in 2022 from$81.5 million in 2022, a$51.3 million 59% increase, supported by the increased activity inAsia . - MNGA also increased block hours from 21,796 hours in 2021 to 23,099 hours in 2022, supporting the Company’s fleet utilization and expanding its network coverage.
-
Profit in 2022 expanded to
from$66.7 million in 2021, representing growth of$50.4 million 32% , and representing a19% profit margin4. -
Adjusted EBITDA in 2022 decreased slightly but remained robust at
, representing a$110.1 million 31% Adjusted EBITDA margin5. -
MNGA reduced its gross debt in 2022 by
compared to year end 2021, resulting in total debt of$24.4 million .$82.5
The proposed business combination, which has been approved by the boards of directors of
Upon the closing of the proposed business combination between
Non-IFRS Financial Measures
Adjusted EBITDA is a key performance measure that MNGA’s management team uses to assess its operating performance. We calculate Adjusted EBITDA as profit for the year excluding results from non-operating sources including tax expense, reversal of fixed asset impairment, share of profit from investment under the equity method, finance expenses, depreciation and amortization and business combination expenses.
MNGA presents Adjusted EBITDA because it believes it is helpful in highlighting trends in its operating results and because it is frequently used by analysts, investors, and other interested parties to evaluate companies in its industry.
Adjusted EBITDA has limitations as an analytical measure, and you should not consider it in isolation or as a substitute for analysis of MNGA’s results as reported under IFRS. Some of these limitations are:
- Adjusted EBITDA does not reflect reversal of fixed asset impairment, share of profit of equity-accounted investees and finance expenses, which may represent an increase to or reduction in cash available to MNGA;
- Adjusted EBITDA excludes non-cash charges for depreciation of property and equipment, and although the assets being depreciated may have to be replaced in the future, Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
- Adjusted EBITDA does not reflect provisions for tax expense, which may represent a reduction in cash available to MNGA; and
- Adjusted EBITDA excludes non-recurring exceptional items that are not directly related to the core operating profit of the business, such as expenses associated with a business combination.
Other companies, including companies in MNGA’s industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, profit and MNGA’s other IFRS results.
Reconciliation of Profit to Adjusted EBITDA and Adjusted EBITDA Margin
$ in Millions |
2022 |
|
2021 |
|
||
Profit for the period |
66.7 |
|
50.4 |
|
||
Tax Expense |
4.4 |
|
16.5 |
|
||
Share of profit of equity-accounted investees |
(0.7 |
) |
(0.3 |
) |
||
Finance expenses/(income)6 |
0.4 |
|
12.8 |
|
||
Depreciation and amortization |
37.7 |
|
31.5 |
|
||
Business Combination Expenses |
1.6 |
|
- |
|
||
Adjusted EBITDA |
110.1 |
|
111.0 |
|
||
Adjusted EBITDA Margin (Adjusted EBITDA / Revenue) |
|
31 |
% |
|
38 |
% |
1 Adjusted EBITDA is not a measure defined under IFRS. For further information about how we calculate Adjusted EBITDA, see “Reconciliation of Profit to Adjusted EBITDA and Adjusted EBITDA Margin” above. Note: 2022 financials are unaudited and are subject to change.
2 CTK: Cargo Ton Kilometer
3 Defined as Aircraft, Crew, Maintenance, and Insurance
4 Profit Margin is not a measure defined under IFRS. Profit Margin is calculated as Profit / Revenue
5 Adjusted EBITDA Margin is not a measure defined under IFRS. Adjusted EBITDA Margin is calculated as Adjusted EBITDA / Revenue
6 Financial expenses include interest expenses on bank loans and foreign exchange gains or losses on financial assets and liabilities (other than trade receivables and payables)
About
Important Information About the Proposed Transaction and Where to Find It
In connection with the proposed transaction between
Before making any voting decision, investors and security holders of
Investors and securityholders will be able to obtain free copies of the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the
The documents filed by
NEITHER THE SEC NOR ANY STATE SECURITIES REGULATORY AGENCY HAS APPROVED OR DISAPPROVED THE TRANSACTIONS DESCRIBED IN THIS COMMUNICATION, PASSED UPON THE MERITS OR FAIRNESS OF THE TRANSACTION OR RELATED TRANSACTIONS OR PASSED UPON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE IN THIS COMMUNICATION. ANY REPRESENTATION TO THE CONTRARY CONSTITUTES A CRIMINAL OFFENSE.
Forward-Looking Statements
This communication contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this communication, including statements regarding the expected completion date of the proposed business combination, our goals of MNGA becoming a global logistics provider and the belief that MNGA’s performance offers the market a differentiated, high-quality business, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by Golden Falcon and its management, and MNGA and its management, as the case may be, are inherently uncertain and many factors may cause the actual results to differ materially from current expectations which include, but are not limited to: the risk that MNGA is not able to expand its network coverage or efficiently use its fleet; the risk that
Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Neither Golden Falcon nor MNGA gives any assurance that either Golden Falcon or MNGA or the combined company will achieve its expected results. Neither Golden Falcon nor MNGA undertakes any duty to update these forward-looking statements, except as otherwise required by law.
Participants in the Solicitation
MNGA and Golden Falcon and their respective directors and officers and other members of management may, under
No Offer or Solicitation
This communication is for information purposes only and shall not constitute a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed transaction and is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy, sell or solicit any securities or any proxy, vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be deemed to be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, or an exemption therefrom.
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