Raises 2024 Financial Outlook
Expands and Extends Flying Agreement with
Amazon
Air Transport Services Group, Inc. (Nasdaq: ATSG), the leading
provider of medium wide-body freighter aircraft leasing, contracted
air transportation, and related services, today reported
consolidated financial results for the first quarter ended March
31, 2024. Those results, as compared with the same period in 2023,
were as follows:
First Quarter Results
- Revenues $486 million, down 3%
- GAAP Earnings per Share (diluted) from Continuing Operations
$0.13, down $0.12
- GAAP Pretax Earnings from Continuing Operations $12.4 million,
down $14.1 million
- Adjusted Pretax* Earnings $15.2 million, down $22.6
million
- Adjusted EPS* $0.16, down $0.20
- Adjusted EBITDA* $127.3 million, down 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 $15 million in Free Cash Flow*."
* 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 $21 million, or
61%, to $13 million 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 $5 million versus the prior-year quarter.
- 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 $3 million in the first quarter, versus a loss
of $2 million in the first quarter of 2023. For the quarter,
interest expense increased by $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 decreased 3% 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 $516 million in 2024, an increase of $10 million from
the outlook provided in February 2024. This forecast excludes any
contribution from additional aircraft leases or flying
opportunities not currently under contractual commitment. This
projection assumes the startup of all ten Amazon-provided 767-300s
prior to December 1, 2024, and costs associated with bringing them
into service and adding over 50 additional pilots at ABX Air. The
Company continues to see the potential for additional Adjusted
EBITDA from new lease commitments for available aircraft and
opportunities for additional flying.
Capital spending expectations for 2024 remain unchanged at $410
million, down $380 million from 2023. ATSG's total projected
capital spend includes growth capital of $245 million.
The projection for Adjusted EPS remains unchanged at 55 cents to
80 cents diluted for 2024, assuming a stable share count at current
levels.
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 United
States, contains financial measures that are not calculated and
presented in accordance with GAAP ("non-GAAP financial measures"),
as further described in such tables. Management uses these non-GAAP
financial measures to evaluate historical results and project
future results. Management believes that these non-GAAP financial
measures assist in highlighting operational trends, facilitating
period-over-period comparisons, and providing additional clarity
about events and trends affecting core operating performance.
Disclosing these non-GAAP financial measures provides insight to
investors about additional metrics that management uses to evaluate
past performance and prospects for future performance. Non-GAAP
financial measures should not be considered in isolation or as a
substitute for analysis of the Company's results as reported under
GAAP and may be calculated differently by other companies.
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 U.S. FAA Part 121 Air
Carrier certificates, ATSG provides aircraft leasing, air cargo
lift, passenger ACMI and charter services, aircraft maintenance
services and airport ground services. ATSG's subsidiaries include
ABX Air, Inc.; Airborne Global Solutions, Inc.; Airborne
Maintenance and Engineering Services, Inc., including its
subsidiary, Pemco World Air Services, Inc.; Air Transport
International, Inc.; Cargo Aircraft Management, Inc.; and Omni Air
International, LLC. For more information, please see
www.atsginc.com.
Cautionary Note on Forward-Looking Statements
Throughout this release, Air Transport Services Group, Inc.
(“ATSG") makes “forward-looking statements” within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995, as
amended (the “Act”). Except for historical information contained
herein, the matters discussed in this release contain
forward-looking statements that involve inherent risks and
uncertainties. Such statements are provided under the “safe harbor”
protection of the Act. Forward-looking statements include, but are
not limited to, statements regarding anticipated operating results,
prospects and levels of assets under management, technological
developments, economic trends, expected transactions and similar
matters. The words “may,” “believe,” “expect,” “anticipate,”
“target,” “goal,” “project,” “estimate,” “guidance,” “forecast,”
“outlook,” “will,” “continue,” “likely,” “should,” “hope,” “seek,”
“plan,” “intend” and variations of such words and similar
expressions identify forward-looking statements. Similarly,
descriptions of ATSG’s objectives, strategies, plans, goals or
targets are also forward-looking statements. Forward-looking
statements are susceptible to a number of risks, uncertainties and
other factors. While ATSG believes that the assumptions underlying
its forward-looking statements are reasonable, investors are
cautioned that any of the assumptions could prove to be inaccurate
and, accordingly, ATSG’s actual results and experiences could
differ materially from the anticipated results or other
expectations expressed in its forward-looking statements. A number
of important factors could cause ATSG's actual results to differ
materially from those indicated by such forward-looking statements.
These factors include, but are not limited to: (i) unplanned
changes in the market demand for our assets and services, including
the loss of customers or a reduction in the level of services we
perform for customers; (ii) our operating airlines' ability to
maintain on-time service and control costs; (iii) the cost and
timing with respect to which we are able to purchase and modify
aircraft to a cargo configuration; (iv) fluctuations in ATSG's
traded share price and in interest rates, which may result in
mark-to-market charges on certain financial instruments; (v) the
number, timing, and scheduled routes of our aircraft deployments to
customers; (vi) our ability to remain in compliance with key
agreements with customers, lenders and government agencies; (vii)
the impact of current supply chain constraints both within and
outside the United States, which may be more severe or persist
longer than we currently expect; (viii) the impact of the current
competitive labor market, which could restrict our ability to fill
key positions; (ix) changes in general economic and/or
industry-specific conditions, including inflation and regulatory
changes; and (x) other uncontrollable factors such as geopolitical
tensions or conflicts and human health crises. Other factors that
could cause ATSG’s actual results to differ materially from those
indicated by such forward-looking statements are discussed in “Risk
Factors” in Item 1A of ATSG's Form 10-K and are contained from time
to time in its other filings with the U.S. Securities and Exchange
Commission, including its annual reports on Form 10-K and quarterly
reports on Form 10-Q. Readers should carefully review this release
and should not place undue reliance on ATSG's forward-looking
statements. New risks and uncertainties arise from time to time,
and factors that ATSG currently deems immaterial may become
material, and it is impossible for ATSG to predict these events or
how they may affect it. These forward-looking statements were based
only on information, plans and estimates as of the date of this
release. Except as may be required by applicable law, ATSG
undertakes no obligation to update any forward-looking statements
to reflect changes in underlying assumptions or factors, new
information, future events or other changes. ATSG does not endorse
any projections regarding future performance that may be made by
third parties.
AIR TRANSPORT SERVICES GROUP,
INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
EARNINGS (UNAUDITED) (In thousands, except per share data)
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 CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) (In thousands, except share data)
March 31, 2024
December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
23,181
$
53,555
Accounts receivable, net of allowance of
$1,193 in 2024 and $1,065 in 2023
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 $0.01 per share;
150,000,000 shares authorized; 65,702,385 and 65,240,961 shares
issued and outstanding in 2024 and 2023, respectively
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 CONDENSED CONSOLIDATED SUMMARY OF CASH
FLOWS (UNAUDITED) (In thousands)
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 PRETAX EARNINGS FROM CONTINUING
OPERATIONS AND ADJUSTED PRETAX EARNINGS SUMMARY NON-GAAP
RECONCILIATION (In thousands)
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 ADJUSTED EARNINGS FROM CONTINUING
OPERATIONS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
NON-GAAP RECONCILIATION (In thousands)
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 CASH FLOWS NON-GAAP RECONCILIATION (In
thousands)
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
Projected1
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
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