Freighter leases, airlines drive ATSG growth


News Journal



WILMINGTON — Air Transport Services Group, Inc. reported Tuesday consolidated financial results for the quarter ended June 30:

• GAAP revenues were $203.6 million based on new revenue recognition standards adopted in 2018. 2Q 2018 revenues increased six percent after excluding $61.1 million in reimbursed expenses from 2Q 2017 revenues.

• GAAP Earnings from Continuing Operations were $24.5 million, $0.42 per share basic, vs. a loss of $53.9 million, $0.91 per share basic in 2Q 2017.

• Provision for income tax was $5.4 million for 2Q18. Due to deferred tax assets, including loss carryforwards, ATSG does not expect to pay significant federal income taxes until 2023 or later.

• Adjusted Earnings (non-GAAP) from Continuing Operations were $19.2 million, $0.28 per share diluted, up 38 percent from $13.9 million, $0.21 per share diluted in 2Q 2017.

• Adjusted Earnings from Continuing Operations exclude the net effects of warrants issued to Amazon.com Services, Inc., including a $63.4 million loss from mark-to-market warrant revaluation in 2Q 2017, and a share of development costs for ATSG’s Airbus A321 freighter conversion venture.

• Adjusted EBITDA (non-GAAP) from Continuing Operations was $69.7 million, up 9 percent.

• First-half 2018 capital spending was $150.8 million vs. $144.3 million in 1H 2017.

• Capital expenditures in 2018 included $116.6 million for the acquisition of Boeing aircraft and freighter modification costs, up from $96.7 million in the first half of 2017.

Joe Hete, President and Chief Executive Officer of ATSG, said, “Growth in our aircraft leasing and airline businesses led to another solid quarter for ATSG. We added four more 767 freighters to our dry-leased fleet, and expect to secure additional 767 aircraft for freighter conversion to meet 2019 demand.

“We are uniquely positioned with our assets and complementary services for another great year in 2018 and even better results in 2019.”

The rest of the release is available on www.atsginc.com.

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News Journal