ATSG Reports First Quarter 2024 Results
Air Transport Services Group, Inc. (ATSG) reported first quarter 2024 financial results with revenues of $486 million, down 3% compared to 2023. GAAP Earnings per Share (diluted) decreased by $0.12 to $0.13. Adjusted EBITDA was $127.3 million, down 8%.
ATSG expanded and extended its flying agreement with Amazon, adding ten Boeing 767 freighters by 2024. The company expects Adjusted EBITDA to reach $516 million in 2024, excluding additional aircraft leases or flying opportunities not yet committed.
Expansion and extension of flying agreement with Amazon adds revenue potential for ATSG.
Forecasted Adjusted EBITDA of approximately $516 million in 2024, an increase of $10 million from previous outlook.
Cost control measures and disciplined capital allocation leading to positive free cash flow generation.
Strong start in 2024 with $15 million in Free Cash Flow generated in the first quarter.
Revenue decline of 3% year-over-year, reaching $486 million.
Adjusted Pretax Earnings, Adjusted EPS, and Adjusted EBITDA all down compared to the same period in 2023.
Interest expense and depreciation increased for the Cargo Aircraft Management segment.
Raises 2024 Financial Outlook
Expands and Extends Flying Agreement with Amazon
First Quarter Results
-
Revenues
, down$486 million 3% -
GAAP Earnings per Share (diluted) from Continuing Operations
, down$0.13 $0.12 -
GAAP Pretax Earnings from Continuing Operations
, down$12.4 million $14.1 million -
Adjusted Pretax* Earnings
, down$15.2 million $22.6 million -
Adjusted EPS*
, down$0.16 $0.20 -
Adjusted EBITDA*
, down$127.3 million 8%
Earlier today, ATSG announced agreements to operate ten additional Boeing 767 freighters for Amazon.com Services LLC by the end of 2024, and to extend their commercial flying agreement to May 2029, with mutual extension rights for five additional years. The agreement includes the award to Amazon of an additional 2.9 million warrants to purchase ATSG common shares and changes to the terms of existing warrants already held by Amazon, as described in the Form 8-K we will file.
Joe Hete, chairman and chief executive officer of ATSG, said, "I am proud of the focus and execution of the entire ATSG team as we continue to navigate a challenging market. The changes to our Amazon arrangement announced earlier today are a testament to the high quality of service we provide to our customer. Our priorities remain safe operations, customer satisfaction, cost control, and disciplined capital allocation. We completed the conversion and delivery of four 767-300 freighters to customers in the quarter. Additionally, we have customer interest in other aircraft we have available for lease. We are focused on generating positive cash flow in 2024 and are off to a strong start in the first quarter, having generated
* Adjusted EPS (Earnings per Share), Adjusted Pretax Earnings, Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Free Cash Flow, and Adjusted Free Cash Flow are non-GAAP financial measures and are defined and reconciled to the most directly comparable financial measures calculated and presented in accordance with GAAP at the end of this release.
Segment Results
Cargo Aircraft Management (CAM)
-
Aircraft leasing and related revenues decreased
7% for the first quarter, reflecting the benefit of revenues from fifteen additional freighter leases, including twelve additional 767-300s and three Airbus A321-200s since the end of March 2023. These leases were more than offset by the returns of twelve 767-200 freighters and four 767-300 freighters over that same period. Revenue reductions associated with the 767-200 fleet include the effect of fewer cycles operated by lessees under our 767-200 engine power program. Excluding the revenues from that program, segment revenues would have been flat versus the prior-year quarter. -
CAM’s first quarter pretax earnings decreased
, or$21 million 61% , to versus the prior-year quarter. The biggest driver of the year-over-year decrease was the previously mentioned reduction in 767-200 freighter lease and engine power program revenues. Segment interest expense and depreciation both increased by$13 million versus the prior-year quarter.$5 million - CAM deployed four newly converted 767-300 freighters to external lessees during the quarter. Three 767-200 freighters and one 767-300 freighter were returned upon lease expiration, with the 767-300 and one of the 767-200s subsequently leased to ABX Air. At the end of the first quarter, ninety CAM-owned freighter aircraft were leased to external customers, two fewer than a year ago.
- Twenty-four CAM-owned aircraft were in or awaiting conversion to freighters at the end of the first quarter, three fewer than at the end of the prior-year quarter. This included thirteen 767s, six A321s, and five A330s.
ACMI Services
-
Pretax loss was
in the first quarter, versus a loss of$3 million in the first quarter of 2023. For the quarter, interest expense increased by$2 million .$0.5 million -
Revenue block hours for ATSG's airlines decreased
3% versus the prior-year quarter. The decrease included three fewer aircraft in service than a year ago. Cargo block hours decreased3% for the first quarter, driven by a mix of routes that included more domestic and less international flying than a year ago. Passenger block hours were flat in the quarter, as more charter flying hours for Omni Air International offset fewer flying hours for the military versus the prior-year quarter.
2024 Outlook
Taking into account the flying opportunities from ten more Amazon 767 freighters, ATSG expects Adjusted EBITDA of approximately
Capital spending expectations for 2024 remain unchanged at
The projection for Adjusted EPS remains unchanged at
Hete concluded, “We have made significant progress toward achieving positive free cash flow in 2024. The expansion of our flying agreement with Amazon should only help reach that goal. Our amended agreement also provides opportunity for a combination of up to ten lease extensions and/or additional assigned aircraft, beyond the initial ten we will bring into service this year. Furthermore, CAM is well-positioned to lease additional freighters to other customers with minimal incremental capital investment as market demand improves. We look forward to further cash flow improvement next year, with increased Adjusted EBITDA and even lower capex."
Non-GAAP Financial Measures
This release, including the attached tables reconciling results to Generally Accepted Accounting Principles ("GAAP") in
The historical non-GAAP financial measures included in this release are reconciled to the most directly comparable financial measure calculated and presented in accordance with GAAP in the non-GAAP reconciliation tables included later in this release. The Company does not provide a reconciliation of projected Adjusted EBITDA or Adjusted EPS, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K, because it is unable to predict with reasonable accuracy the value of certain adjustments and as a result, the comparable GAAP measures are unavailable without unreasonable efforts. For example, certain adjustments can be significantly impacted by the re-measurements of financial instruments including stock warrants issued to a customer. The Company’s earnings on a GAAP basis, including its earnings per share on a GAAP basis, and the non-GAAP adjustments for gains and losses resulting from the re-measurement of stock warrants, will depend on, among other things, the future prices of ATSG stock, interest rates, and other assumptions which are highly uncertain. As a result, the Company believes such reconciliations of forward-looking information would imply a degree of precision and certainty that could be confusing to investors.
Conference Call
ATSG will host an investor conference call on Tuesday, May 7, 2024, at 10 a.m. Eastern Time to review its results for the first quarter of 2024, and its outlook for the remainder of the year. Live call participants must register via this link, which is also available at ATSG’s website (www.atsginc.com) under “Investors” and “Presentations.” Once registered, call participants will receive dial-in numbers and a unique Personal Identification Number (PIN) that must be entered to join the live call. Listen-only access to live and replay versions of the call, including slides, will be available via a webcast link at the same ATSG website location. Slides that accompany management’s discussion of first-quarter results may be downloaded from there starting shortly before the start of the call at 10 a.m.
About ATSG
ATSG is a leading provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. ATSG, through its leasing and airline subsidiaries, is the world's largest owner and operator of converted Boeing 767 freighter aircraft. Through its principal subsidiaries, including three airlines with separate and distinct
Cautionary Note on Forward-Looking Statements
Throughout this release, Air Transport Services Group, Inc. (“ATSG") makes “forward-looking statements” within the meaning of the
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES
|
||||||||
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
REVENUES |
|
$ |
485,517 |
|
|
$ |
501,095 |
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
Salaries, wages and benefits |
|
|
171,482 |
|
|
|
176,715 |
|
Depreciation and amortization |
|
|
90,380 |
|
|
|
84,728 |
|
Maintenance, materials and repairs |
|
|
49,883 |
|
|
|
43,833 |
|
Fuel |
|
|
63,545 |
|
|
|
66,755 |
|
Contracted ground and aviation services |
|
|
15,706 |
|
|
|
17,788 |
|
Travel |
|
|
30,446 |
|
|
|
29,553 |
|
Landing and ramp |
|
|
4,030 |
|
|
|
4,124 |
|
Rent |
|
|
7,532 |
|
|
|
8,112 |
|
Insurance |
|
|
2,736 |
|
|
|
2,548 |
|
Other operating expenses |
|
|
16,773 |
|
|
|
19,516 |
|
|
|
|
452,513 |
|
|
|
453,672 |
|
OPERATING INCOME |
|
|
33,004 |
|
|
|
47,423 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
Interest income |
|
|
239 |
|
|
|
215 |
|
Non-service component of retiree benefit costs |
|
|
(1,085 |
) |
|
|
(3,218 |
) |
Net gain (loss) on financial instruments |
|
|
2,355 |
|
|
|
(1,740 |
) |
Loss from non-consolidated affiliate |
|
|
(79 |
) |
|
|
(406 |
) |
Interest expense |
|
|
(21,988 |
) |
|
|
(15,705 |
) |
|
|
|
(20,558 |
) |
|
|
(20,854 |
) |
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
|
12,446 |
|
|
|
26,569 |
|
INCOME TAX EXPENSE |
|
|
(3,827 |
) |
|
|
(6,428 |
) |
EARNINGS FROM CONTINUING OPERATIONS |
|
|
8,619 |
|
|
|
20,141 |
|
EARNINGS FROM DISCONTINUED OPERATIONS, NET OF TAXES |
|
|
— |
|
|
|
— |
|
NET EARNINGS |
|
$ |
8,619 |
|
|
$ |
20,141 |
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - CONTINUING OPERATIONS |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.13 |
|
|
$ |
0.28 |
|
Diluted |
|
$ |
0.13 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES - CONTINUING OPERATIONS |
|
|
|
|
|
|
|
|
Basic |
|
|
64,973 |
|
|
|
71,802 |
|
Diluted |
|
|
67,235 |
|
|
|
83,057 |
|
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES
|
||||||||
|
|
March 31, 2024 |
|
|
December 31, 2023 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
23,181 |
|
|
$ |
53,555 |
|
Accounts receivable, net of allowance of |
|
|
219,946 |
|
|
|
215,581 |
|
Inventory |
|
|
49,847 |
|
|
|
49,939 |
|
Prepaid supplies and other |
|
|
22,386 |
|
|
|
26,626 |
|
TOTAL CURRENT ASSETS |
|
|
315,360 |
|
|
|
345,701 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
2,866,335 |
|
|
|
2,820,769 |
|
Customer incentive |
|
|
57,049 |
|
|
|
60,961 |
|
Goodwill and acquired intangibles |
|
|
479,874 |
|
|
|
482,427 |
|
Operating lease assets |
|
|
49,140 |
|
|
|
54,060 |
|
Other assets |
|
|
123,979 |
|
|
|
118,172 |
|
TOTAL ASSETS |
|
$ |
3,891,737 |
|
|
$ |
3,882,090 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
249,828 |
|
|
$ |
227,652 |
|
Accrued salaries, wages and benefits |
|
|
55,271 |
|
|
|
56,650 |
|
Accrued expenses |
|
|
9,786 |
|
|
|
10,784 |
|
Current portion of debt obligations |
|
|
54,768 |
|
|
|
54,710 |
|
Current portion of lease obligations |
|
|
18,947 |
|
|
|
20,167 |
|
Unearned revenue |
|
|
31,075 |
|
|
|
30,226 |
|
TOTAL CURRENT LIABILITIES |
|
|
419,675 |
|
|
|
400,189 |
|
Long term debt |
|
|
1,663,006 |
|
|
|
1,707,572 |
|
Stock warrant obligations |
|
|
1,626 |
|
|
|
1,729 |
|
Post-retirement obligations |
|
|
17,504 |
|
|
|
19,368 |
|
Long term lease obligations |
|
|
31,250 |
|
|
|
34,990 |
|
Other liabilities |
|
|
89,235 |
|
|
|
64,292 |
|
Deferred income taxes |
|
|
288,016 |
|
|
|
285,248 |
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
Preferred stock, 20,000,000 shares authorized, including 75,000 Series A Junior Participating Preferred Stock |
|
|
— |
|
|
|
— |
|
Common stock, par value |
|
|
657 |
|
|
|
652 |
|
Additional paid-in capital |
|
|
838,402 |
|
|
|
836,270 |
|
Retained earnings |
|
|
597,828 |
|
|
|
589,209 |
|
Accumulated other comprehensive loss |
|
|
(55,462 |
) |
|
|
(57,429 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
|
1,381,425 |
|
|
|
1,368,702 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
3,891,737 |
|
|
$ |
3,882,090 |
|
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES
|
||||||||
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
|
|
OPERATING CASH FLOWS |
|
$ |
126,420 |
|
|
$ |
216,378 |
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Aircraft acquisitions and freighter conversions |
|
|
(71,895 |
) |
|
|
(164,608 |
) |
Planned aircraft maintenance, engine overhauls and other non-aircraft additions to property and equipment |
|
|
(30,426 |
) |
|
|
(54,193 |
) |
Proceeds from property and equipment |
|
|
895 |
|
|
|
9,860 |
|
Acquisitions and investments in businesses |
|
|
(9,800 |
) |
|
|
(800 |
) |
TOTAL INVESTING CASH FLOWS |
|
|
(111,226 |
) |
|
|
(209,741 |
) |
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Principal payments on secured debt |
|
|
(140,105 |
) |
|
|
(25,214 |
) |
Proceeds from revolver borrowings |
|
|
95,000 |
|
|
|
105,000 |
|
Payments for financing costs |
|
|
— |
|
|
|
(484 |
) |
Purchase of common stock |
|
|
— |
|
|
|
(21,918 |
) |
Taxes paid for conversion of employee awards |
|
|
(463 |
) |
|
|
(1,553 |
) |
TOTAL FINANCING CASH FLOWS |
|
|
(45,568 |
) |
|
|
55,831 |
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH |
|
$ |
(30,374 |
) |
|
$ |
62,468 |
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
$ |
53,555 |
|
|
$ |
27,134 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
23,181 |
|
|
$ |
89,602 |
|
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES
|
||||||
|
Three Months Ended |
|
||||
|
March 31, |
|
||||
|
2024 |
|
2023 |
|
||
Revenues |
|
|
|
|
|
|
CAM |
|
|
|
|
|
|
Aircraft leasing and related revenues |
$ |
108,645 |
|
$ |
117,074 |
|
Lease incentive amortization |
|
(3,096 |
) |
|
(5,030 |
) |
Total CAM |
|
105,549 |
|
|
112,044 |
|
ACMI Services |
|
323,824 |
|
|
334,127 |
|
Other Activities |
|
109,040 |
|
|
110,588 |
|
Total Revenues |
|
538,413 |
|
|
556,759 |
|
Eliminate internal revenues |
|
(52,896 |
) |
|
(55,664 |
) |
Customer Revenues |
$ |
485,517 |
|
$ |
501,095 |
|
|
|
|
|
|
|
|
Pretax Earnings (Loss) from Continuing Operations |
|
|
|
|
|
|
CAM, inclusive of interest expense |
|
13,409 |
|
|
34,200 |
|
ACMI Services, inclusive of interest expense |
|
(3,485 |
) |
|
(2,411 |
) |
Other Activities |
|
2,307 |
|
|
654 |
|
Net, unallocated interest expense |
|
(976 |
) |
|
(510 |
) |
Non-service components of retiree benefit costs |
|
(1,085 |
) |
|
(3,218 |
) |
Net gain (loss) on financial instruments |
|
2,355 |
|
|
(1,740 |
) |
Loss from non-consolidated affiliates |
|
(79 |
) |
|
(406 |
) |
Earnings from Continuing Operations before Income Taxes (GAAP) |
$ |
12,446 |
|
$ |
26,569 |
|
|
|
|
|
|
|
|
Adjustments to Pretax Earnings from Continuing Operations |
|
|
|
|
|
|
Add customer incentive amortization |
|
3,912 |
|
|
5,822 |
|
Add loss from non-consolidated affiliates |
|
79 |
|
|
406 |
|
Less net (gain) loss on financial instruments |
|
(2,355 |
) |
|
1,740 |
|
Less non-service components of retiree benefit costs |
|
1,085 |
|
|
3,218 |
|
Add net charges for hangar foam incident |
|
— |
|
|
41 |
|
Adjusted Pretax Earnings (non-GAAP) |
$ |
15,167 |
|
$ |
37,796 |
|
Adjusted Pretax Earnings (non-GAAP) excludes certain items included in GAAP-based Pretax Earnings (Loss) from Continuing Operations before Income Taxes because these items are distinctly different in their predictability among periods, or not closely related to our operations. Presenting this measure provides investors with a comparative metric of fundamental operations, while highlighting changes to certain items among periods. Adjusted Pretax Earnings should not be considered an alternative to Earnings from Continuing Operations Before Income Taxes or any other performance measure derived in accordance with GAAP.
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES
|
||||||||
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
|
|
Earnings (Loss) from Continuing Operations Before Income Taxes |
|
$ |
12,446 |
|
|
$ |
26,569 |
|
Interest Income |
|
|
(239 |
) |
|
|
(215 |
) |
Interest Expense |
|
|
21,988 |
|
|
|
15,705 |
|
Depreciation and Amortization |
|
|
90,380 |
|
|
|
84,728 |
|
EBITDA from Continuing Operations (non-GAAP) |
|
$ |
124,575 |
|
|
$ |
126,787 |
|
Add customer incentive amortization |
|
|
3,912 |
|
|
|
5,822 |
|
Add start-up loss from non-consolidated affiliates |
|
|
79 |
|
|
|
406 |
|
Less net (gain) loss on financial instruments |
|
|
(2,355 |
) |
|
|
1,740 |
|
Less non-service components of retiree benefit costs |
|
|
1,085 |
|
|
|
3,218 |
|
Add net charges for hangar foam fire suppression system discharge |
|
|
— |
|
|
|
41 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP) |
|
$ |
127,296 |
|
|
$ |
138,014 |
|
Management uses Adjusted EBITDA (non-GAAP, defined below) to assess the performance of the Company's operating results among periods. It is a metric that facilitates the comparison of financial results of underlying operations. Additionally, these non-GAAP adjustments are similar to the adjustments used by lenders in the Company’s senior secured credit facility to assess financial performance and determine the cost of borrowed funds. The adjustments also remove the non-service cost components of retiree benefit plans because they are not closely related to ongoing operating activities. To improve comparability between periods, the adjustments also exclude from EBITDA from Continuing Operations the recognition of charges related to the discharge of a foam fire suppression system in a Company aircraft hangar, net of related insurance recoveries. Management presents EBITDA from Continuing Operations (defined below), a commonly referenced metric, as a subtotal toward calculating Adjusted EBITDA.
EBITDA from Continuing Operations (non-GAAP) is defined as Earnings (Loss) from Continuing Operations Before Income Taxes plus net interest expense, depreciation, and amortization expense. Adjusted EBITDA is defined as EBITDA from Continuing Operations less financial instrument revaluation gains or losses, non-service components of retiree benefit costs, amortization of warrant-based customer incentive costs recorded in revenue, charge off of debt issuance costs upon refinancing, costs from non-consolidated affiliates and charges related to the discharge of a foam fire suppression system, net of insurance recoveries.
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES
|
||||||||
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
|
|
NET CASH FLOWS FROM OPERATING ACTIVITIES (GAAP) |
|
$ |
126,420 |
|
|
$ |
216,378 |
|
Sustaining capital expenditures |
|
|
(30,426 |
) |
|
|
(54,193 |
) |
ADJUSTED FREE CASH FLOW (non-GAAP) |
|
$ |
95,994 |
|
|
$ |
162,185 |
|
Aircraft acquisitions and freighter conversions |
|
|
(71,895 |
) |
|
|
(164,608 |
) |
Proceeds from property and equipment |
|
|
895 |
|
|
|
9,860 |
|
Acquisitions and investments in businesses |
|
|
(9,800 |
) |
|
|
(800 |
) |
FREE CASH FLOW (non-GAAP) |
|
$ |
15,194 |
|
|
$ |
6,637 |
|
Sustaining capital expenditures includes cash outflows for planned aircraft maintenance, engine overhauls, information systems and other non-aircraft additions to property and equipment. It does not include expenditures for aircraft acquisitions and related passenger-to-freighter conversion costs.
Adjusted Free Cash Flow (non-GAAP) includes cash flow from operating activities net of expenditures for planned aircraft maintenance, engine overhauls and other non-aircraft additions to property and equipment. Free Cash Flow (non-GAAP) is net cash from operating activities reduced for net cash flows from investing activities. Management believes that adjusting GAAP operating cash flows is useful for investors to evaluate the company's ability to generate adjusted free cash flow for growth initiatives, debt service, stock buy-backs or other discretionary allocations of capital.
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES
ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE
NON-GAAP RECONCILIATION
(In thousands)
Management presents Adjusted Earnings and Adjusted Earnings Per Share, both non-GAAP financial measures, to provide additional information regarding earnings per share without the volatility otherwise caused by the items below among periods.
|
|
Three Months Ended |
|
|||||||||||||
|
|
March 31, 2024 |
|
|
March 31, 2023 |
|
||||||||||
|
|
$ |
|
|
$ Per Share |
|
|
$ |
|
|
$ Per Share |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from Continuing Operations - basic (GAAP) |
|
$ |
8,619 |
|
|
|
|
|
|
$ |
20,141 |
|
|
|
|
|
Gain from warrant revaluation, net tax1 |
|
|
— |
|
|
|
|
|
|
|
(108 |
) |
|
|
|
|
Convertible notes interest charges, net of tax 2 |
|
|
159 |
|
|
|
|
|
|
|
776 |
|
|
|
|
|
Earnings from Continuing Operations - diluted (GAAP) |
|
|
8,778 |
|
|
|
0.13 |
|
|
|
20,809 |
|
|
$ |
0.25 |
|
Adjustments, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer incentive amortization3 |
|
|
2,993 |
|
|
|
0.04 |
|
|
|
4,546 |
|
|
|
0.06 |
|
Non-service component of retiree benefits4 |
|
|
830 |
|
|
|
0.01 |
|
|
|
2,513 |
|
|
|
0.03 |
|
Derivative and warrant revaluation5 |
|
|
(1,802 |
) |
|
|
(0.02 |
) |
|
|
1,466 |
|
|
|
0.02 |
|
Loss from affiliates6 |
|
|
60 |
|
|
|
— |
|
|
|
317 |
|
|
|
— |
|
Hangar foam incident7 |
|
|
— |
|
|
|
— |
|
|
|
32 |
|
|
|
— |
|
Adjusted Earnings and Adjusted Earnings Per Share (non-GAAP) |
|
$ |
10,859 |
|
|
$ |
0.16 |
|
|
$ |
29,683 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
|
|
|
|
Shares |
|
|
|
|
|
||
Weighted Average Shares - diluted1 |
|
|
67,235 |
|
|
|
|
|
|
|
83,057 |
|
|
|
|
|
Adjusted Earnings and Adjusted Earnings Per Share should not be considered as alternatives to Earnings (Loss) from Continuing Operations, Weighted Average Shares - diluted or Earnings (Loss) Per Share from Continuing Operations or any other performance measure derived in accordance with GAAP. Adjusted Earnings and Adjusted Earnings Per Share should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP.
-
Under
U.S. GAAP, certain warrants are reflected as a liability and unrealized warrant gains are typically removed from diluted earnings per share (“EPS”) calculations, while unrealized warrant losses are not removed because they are dilutive to EPS. For each quarter, additional shares assumes that Amazon net settled its remaining warrants that were above the strike price. Each year reflects an average of the quarterly shares. -
Under
U.S. GAAP, certain types of convertible debt are treated under the "if-convert method" if dilutive for EPS. Stock-based compensation awards are treated under the "treasury stock method" if dilutive for EPS. The non-GAAP presentation adds the dilutive effects that were excluded under GAAP. - Removes the amortization of the warrant-based customer incentives which are recorded against revenue over the term of the related aircraft leases and customer contracts.
- Removes the non-service component effects of employee post-retirement plans.
- Removes gains and losses from financial instruments, including derivative interest rate instruments and warrant revaluations.
- Removes losses for the Company's non-consolidated affiliates.
- Removes losses for the Company's non-consolidated affiliates.
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES
AIRCRAFT FLEET
Aircraft Types |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
December 31, 2023 |
|
March 31, 2024 |
|
December 31, 2024
|
||||||||
|
|
Freighter |
|
Passenger |
|
Freighter |
|
Passenger |
|
Freighter |
|
Passenger |
|
Freighter |
|
Passenger |
Aircraft in service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B767-2002 |
|
31 |
|
3 |
|
22 |
|
3 |
|
20 |
|
3 |
|
15 |
|
3 |
B767-300 |
|
80 |
|
8 |
|
87 |
|
8 |
|
91 |
|
9 |
|
100 |
|
9 |
B777-200 |
|
— |
|
3 |
|
— |
|
3 |
|
— |
|
3 |
|
— |
|
3 |
B757-200 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
B757 Combi |
|
— |
|
4 |
|
— |
|
4 |
|
— |
|
4 |
|
— |
|
4 |
A321-200 |
|
— |
|
— |
|
3 |
|
— |
|
3 |
|
— |
|
3 |
|
— |
Total Aircraft in Service |
|
111 |
|
18 |
|
112 |
|
18 |
|
114 |
|
19 |
|
118 |
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft available for lease |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B767-200 |
|
— |
|
— |
|
1 |
|
— |
|
1 |
|
— |
|
— |
|
— |
B767-300 |
|
— |
|
— |
|
3 |
|
— |
|
3 |
|
— |
|
10 |
|
— |
A321 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
6 |
|
— |
A330 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
2 |
|
— |
Total Aircraft Available for Lease |
|
— |
|
— |
|
4 |
|
— |
|
4 |
|
— |
|
18 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft in Cargo Modification |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B767-300 |
|
18 |
|
— |
|
9 |
|
— |
|
5 |
|
— |
|
— |
|
— |
A321 |
|
9 |
|
— |
|
6 |
|
— |
|
6 |
|
— |
|
— |
|
— |
A330 |
|
— |
|
— |
|
2 |
|
— |
|
4 |
|
— |
|
5 |
|
— |
Feedstock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B767 |
|
— |
|
— |
|
5 |
|
— |
|
8 |
|
— |
|
9 |
|
— |
A321 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
A330 |
|
— |
|
— |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
Total Aircraft |
|
138 |
|
18 |
|
139 |
|
18 |
|
142 |
|
19 |
|
151 |
|
19 |
Aircraft in Service Deployments |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
December 31, |
|
|
2023 |
|
2023 |
|
2024 |
|
2024 Projected |
|
|
|
|
|
|
|
|
|
Dry leased without CMI |
|
40 |
|
42 |
|
46 |
|
43 |
Dry leased with CMI |
|
52 |
|
48 |
|
44 |
|
40 |
Customer provided for CMI |
|
13 |
|
16 |
|
16 |
|
27 |
ACMI/Charter3 |
|
24 |
|
24 |
|
27 |
|
27 |
- Projected aircraft levels for December 31, 2024 include customer commitments for new leases, management's estimates of existing lease renewals, aircraft expected to complete the freighter modification process and scheduled aircraft acquisitions during 2024.
- As Boeing 767-200 aircraft are retired from service, management plans to use the engines and related parts to support the remaining Boeing 767 fleet and part sales.
- ACMI/Charter includes four Boeing 767 passenger aircraft leased from external companies through December 31, 2023 and five Boeing 767 passenger aircraft leased from external companies after December 31, 2023.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240506396015/en/
Quint Turner, ATSG Inc. Chief Financial Officer
937-366-2303
Source: Air Transport Services Group, Inc.
FAQ
What were ATSG's revenues for the first quarter of 2024?
What is the Adjusted EBITDA forecast for ATSG in 2024?
What changes were made to ATSG's flying agreement with Amazon?