WILMINGTON – Wilmington-based Air Transport Services Group, Inc. the leading provider of medium wide-body aircraft leasing, air cargo transportation and related services, on Friday reported consolidated financial results for the quarter ended Sept. 30, 2016.
Results for the third quarter of 2016, compared with the third quarter of 2015, include:
• Revenues increased 36 percent, or $51.0 million, to $193.3 million for the quarter. Excluding revenues from reimbursements, revenues increased 25 percent, or $34.3 million. All of ATSG’s principal businesses recorded significant growth for the quarter.
• Warrants issued in March to Amazon Fulfillment Services, Inc. in connection with operating and lease agreements continued to have a significant impact on ATSG’s GAAP financial results in the third quarter. Including these non-cash effects, Net Earnings from Continuing Operations decreased to $2.1 million, or $0.12 per diluted share, from $6.3 million, or $0.10 cents in the prior year period. Diluted Earnings per Share excludes the mark-to-market loss, net of tax, associated with the stock warrants.
“Our rapid growth remains strong across all of our businesses as our leased freighter fleet and logistics and maintenance operations continued to expand in the third quarter,” said Joe Hete, President and Chief Executive Officer of ATSG. “In our airlines, costs associated with expansion of our operations continue to affect the profitability of those businesses. In particular, our third quarter results were adversely impacted by premium pay to ABX Air pilots, despite an aggressive crewmember recruiting program and rigorous training schedule.
“We estimate that this additional compensation, along with ongoing training, negatively impacted our pre-tax results by approximately $6.5 million for the third quarter.”
Revenues through nine months increased 25 percent to $547.2 million, and increased 19 percent excluding revenues from reimbursements. Adjusted EBITDA for the first nine months of 2016 was $155.4 million, up 11 percent.
Read the full release at www.atsginc.com.
