Revenues of $488 million, versus $529 millionGAAP Earnings per Share (diluted) from Continuing Operations of $0.11, versus $0.49GAAP Pretax Earnings from Continuing Operations of $10.7 million, versus $49.7 millionAdjusted Pretax* Earnings of $17.3 million, versus $57.9 millionAdjusted EPS* of $0.19, versus $0.57Adjusted EBITDA* of $130.4 million, versus $157.1 millionFree Cash Flow was $91.8 million, versus negative $1.3 million
Mike Berger, chief executive officer of ATSG, said, "Our second quarter results were affected by fewer block hours by our airlines and the scheduled return of Boeing 767-200 freighters since a year ago. We beat our internal expectations for the quarter, however, and are positioned for further improvement in the second half of the year, particularly in the fourth quarter. We're encouraged by the free cash flow we're generating and have again raised our full year guidance for Adjusted EBITDA. We have leased four aircraft to customers since the end of June and are encouraged by the momentum we're seeing in the global markets we serve. We remain proud of the service levels we deliver every day and are particularly pleased that we met commitments to our customer Amazon during this year's Prime Week."
* 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 used in this release, which 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)
ACMI Services
2024 Outlook
Taking into account the four aircraft leases that commenced since the end of June, ATSG expects Adjusted EBITDA of approximately $526 million in 2024. That is an increase, concentrated in the fourth quarter, of $10 million from the outlook provided in May 2024. This forecast excludes any contribution from additional aircraft leases not currently under contractual commitment. The Company continues to see the potential for additional Adjusted EBITDA from new lease commitments for available aircraft and opportunities for additional flying.
ATSG expects capital spending for 2024 to be $390 million, down from the $410 million estimated in May 2024, and down $400 million from 2023 actual spending. ATSG's total projected capital spend includes growth capital of $225 million. ATSG expects third quarter Adjusted EBITDA to be similar to the second quarter as ramp-up costs for adding ten Amazon supplied 767 freighters continue, but higher in the fourth quarter when the last few enter service and other peak-season operations occur.
Berger added, “We are on track to achieve our improved 2024 outlook. We expect contracted pricing increases and seasonal charter opportunities in the fourth quarter, which should drive improved sequential results in our ACMI Services segment. This expected improvement, combined with momentum in our core leasing business, positions us well to drive earnings growth in 2025. We are ahead of our target for positive free cash flow for the year, with $107 million generated in the first half and an expectation to add to that total in the second half."
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) (In thousands, except per share data) | ||||||||||||||||
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||
|
| June 30, |
|
| June 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
REVENUES |
| $ | 488,410 |
|
| $ | 529,339 |
|
| $ | 973,927 |
|
| $ | 1,030,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits |
|
| 164,079 |
|
|
| 170,458 |
|
|
| 335,561 |
|
|
| 347,173 |
|
Depreciation and amortization |
|
| 91,879 |
|
|
| 82,691 |
|
|
| 182,259 |
|
|
| 167,419 |
|
Maintenance, materials and repairs |
|
| 46,727 |
|
|
| 50,436 |
|
|
| 96,610 |
|
|
| 94,269 |
|
Fuel |
|
| 65,577 |
|
|
| 67,271 |
|
|
| 129,122 |
|
|
| 134,026 |
|
Contracted ground and aviation services |
|
| 21,726 |
|
|
| 19,682 |
|
|
| 37,432 |
|
|
| 37,470 |
|
Travel |
|
| 32,180 |
|
|
| 31,222 |
|
|
| 62,626 |
|
|
| 60,775 |
|
Landing and ramp |
|
| 4,505 |
|
|
| 4,744 |
|
|
| 8,535 |
|
|
| 8,868 |
|
Rent |
|
| 7,698 |
|
|
| 8,274 |
|
|
| 15,230 |
|
|
| 16,386 |
|
Insurance |
|
| 2,557 |
|
|
| 2,684 |
|
|
| 5,293 |
|
|
| 5,232 |
|
Other operating expenses |
|
| 20,161 |
|
|
| 22,136 |
|
|
| 36,934 |
|
|
| 41,652 |
|
|
|
| 457,089 |
|
|
| 459,598 |
|
|
| 909,602 |
|
|
| 913,270 |
|
OPERATING INCOME |
|
| 31,321 |
|
|
| 69,741 |
|
|
| 64,325 |
|
|
| 117,164 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
| 218 |
|
|
| 180 |
|
|
| 457 |
|
|
| 395 |
|
Non-service component of retiree benefit costs |
|
| (1,086 | ) |
|
| (3,218 | ) |
|
| (2,171 | ) |
|
| (6,436 | ) |
Net gain on financial instruments |
|
| 2,946 |
|
|
| 1,818 |
|
|
| 5,301 |
|
|
| 78 |
|
Loss from non-consolidated affiliate |
|
| (1,254 | ) |
|
| (2,107 | ) |
|
| (1,333 | ) |
|
| (2,513 | ) |
Interest expense |
|
| (21,403 | ) |
|
| (16,672 | ) |
|
| (43,391 | ) |
|
| (32,377 | ) |
|
|
| (20,579 | ) |
|
| (19,999 | ) |
|
| (41,137 | ) |
|
| (40,853 | ) |
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
|
| 10,742 |
|
|
| 49,742 |
|
|
| 23,188 |
|
|
| 76,311 |
|
INCOME TAX EXPENSE |
|
| (3,314 | ) |
|
| (11,720 | ) |
|
| (7,141 | ) |
|
| (18,148 | ) |
EARNINGS FROM CONTINUING OPERATIONS |
|
| 7,428 |
|
|
| 38,022 |
|
|
| 16,047 |
|
|
| 58,163 |
|
EARNINGS FROM DISCONTINUED OPERATIONS, NET OF TAXES |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
NET EARNINGS |
| $ | 7,428 |
|
| $ | 38,022 |
|
| $ | 16,047 |
|
| $ | 58,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - CONTINUING OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.11 |
|
| $ | 0.54 |
|
| $ | 0.25 |
|
| $ | 0.82 |
|
Diluted |
| $ | 0.11 |
|
| $ | 0.49 |
|
| $ | 0.24 |
|
| $ | 0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES - CONTINUING OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 65,028 |
|
|
| 70,722 |
|
|
| 65,000 |
|
|
| 71,259 |
|
Diluted |
|
| 67,301 |
|
|
| 79,515 |
|
|
| 67,268 |
|
|
| 81,276 |
|
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share data) | ||||||||
|
| June 30, 2024 |
|
| December 31, 2023 |
| ||
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash |
| $ | 28,714 |
|
| $ | 53,555 |
|
Accounts receivable, net of allowance of $1,151 in 2024 and $1,065 in 2023 |
|
| 205,740 |
|
|
| 215,581 |
|
Inventory |
|
| 50,548 |
|
|
| 49,939 |
|
Prepaid supplies and other |
|
| 30,476 |
|
|
| 26,626 |
|
TOTAL CURRENT ASSETS |
|
| 315,478 |
|
|
| 345,701 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
| 2,819,077 |
|
|
| 2,820,769 |
|
Customer incentive |
|
| 140,764 |
|
|
| 60,961 |
|
Goodwill and acquired intangibles |
|
| 477,320 |
|
|
| 482,427 |
|
Operating lease assets |
|
| 65,399 |
|
|
| 54,060 |
|
Other assets |
|
| 121,447 |
|
|
| 118,172 |
|
TOTAL ASSETS |
| $ | 3,939,485 |
|
| $ | 3,882,090 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 255,386 |
|
| $ | 227,652 |
|
Accrued salaries, wages and benefits |
|
| 47,677 |
|
|
| 56,650 |
|
Accrued expenses |
|
| 11,119 |
|
|
| 10,784 |
|
Current portion of debt obligations |
|
| 54,825 |
|
|
| 54,710 |
|
Current portion of lease obligations |
|
| 21,465 |
|
|
| 20,167 |
|
Unearned revenue |
|
| 38,310 |
|
|
| 30,226 |
|
TOTAL CURRENT LIABILITIES |
|
| 428,782 |
|
|
| 400,189 |
|
Long term debt |
|
| 1,577,328 |
|
|
| 1,707,572 |
|
Stock warrant obligations |
|
| 17,079 |
|
|
| 1,729 |
|
Post-retirement obligations |
|
| 16,195 |
|
|
| 19,368 |
|
Long term lease obligations |
|
| 45,591 |
|
|
| 34,990 |
|
Other liabilities |
|
| 97,357 |
|
|
| 64,292 |
|
Deferred income taxes |
|
| 291,767 |
|
|
| 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; 65,761,436 and 65,240,961 shares issued and outstanding in 2024 and 2023, respectively |
|
| 658 |
|
|
| 652 |
|
Additional paid-in capital |
|
| 912,968 |
|
|
| 836,270 |
|
Retained earnings |
|
| 605,256 |
|
|
| 589,209 |
|
Accumulated other comprehensive loss |
|
| (53,496 | ) |
|
| (57,429 | ) |
TOTAL STOCKHOLDERS’ EQUITY |
|
| 1,465,386 |
|
|
| 1,368,702 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
| $ | 3,939,485 |
|
| $ | 3,882,090 |
|
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED SUMMARY OF CASH FLOWS (UNAUDITED) (In thousands) | ||||||||||||||||
|
| Three Months Ended |
|
| Six Months Ended |
| ||||||||||
|
| June 30, |
|
| June 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING CASH FLOWS |
| $ | 137,101 |
|
| $ | 192,198 |
|
| $ | 263,521 |
|
| $ | 408,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft acquisitions and freighter conversions |
|
| (43,153 | ) |
|
| (138,556 | ) |
|
| (115,048 | ) |
|
| (303,164 | ) |
Planned aircraft maintenance, engine overhauls and other non-aircraft additions to property and equipment |
|
| (27,344 | ) |
|
| (55,568 | ) |
|
| (57,770 | ) |
|
| (109,761 | ) |
Proceeds from property and equipment |
|
| 25,219 |
|
|
| 585 |
|
|
| 26,114 |
|
|
| 10,445 |
|
Acquisitions and investments in businesses |
|
| — |
|
|
| — |
|
|
| (9,800 | ) |
|
| (800 | ) |
TOTAL INVESTING CASH FLOWS |
|
| (45,278 | ) |
|
| (193,539 | ) |
|
| (156,504 | ) |
|
| (403,280 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal payments on secured debt |
|
| (331,218 | ) |
|
| (65,103 | ) |
|
| (471,323 | ) |
|
| (90,317 | ) |
Proceeds from revolver borrowings |
|
| 245,000 |
|
|
| 35,000 |
|
|
| 340,000 |
|
|
| 140,000 |
|
Payments for financing costs |
|
| — |
|
|
| (27 | ) |
|
| — |
|
|
| (511 | ) |
Purchase of common stock |
|
| — |
|
|
| (14,956 | ) |
|
| — |
|
|
| (36,874 | ) |
Taxes paid for conversion of employee awards |
|
| (72 | ) |
|
| (25 | ) |
|
| (535 | ) |
|
| (1,578 | ) |
TOTAL FINANCING CASH FLOWS |
|
| (86,290 | ) |
|
| (45,111 | ) |
|
| (131,858 | ) |
|
| 10,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH |
| $ | 5,533 |
|
| $ | (46,452 | ) |
| $ | (24,841 | ) |
| $ | 16,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
| $ | 23,181 |
|
| $ | 89,602 |
|
| $ | 53,555 |
|
| $ | 27,134 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
| $ | 28,714 |
|
| $ | 43,150 |
|
| $ | 28,714 |
|
| $ | 43,150 |
|
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 |
|
| Six Months Ended |
| ||||||||||
|
| June 30, |
|
| June 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft leasing and related revenues |
| $ | 107,566 |
|
| $ | 115,281 |
|
| $ | 216,211 |
|
| $ | 232,355 |
|
Customer incentive |
|
| (3,097 | ) |
|
| (3,903 | ) |
|
| (6,193 | ) |
|
| (8,933 | ) |
Total CAM |
|
| 104,469 |
|
|
| 111,378 |
|
|
| 210,018 |
|
|
| 223,422 |
|
ACMI Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI services revenue |
|
| 342,255 |
|
|
| 367,003 |
|
|
| 666,895 |
|
|
| 701,922 |
|
Customer incentive |
|
| (4,076 | ) |
|
| (816 | ) |
|
| (4,892 | ) |
|
| (1,608 | ) |
Total ACMI Services |
|
| 338,179 |
|
|
| 366,187 |
|
|
| 662,003 |
|
|
| 700,314 |
|
Other Activities |
|
| 97,640 |
|
|
| 110,789 |
|
|
| 206,680 |
|
|
| 221,377 |
|
Total Revenues |
|
| 540,288 |
|
|
| 588,354 |
|
|
| 1,078,701 |
|
|
| 1,145,113 |
|
Eliminate internal revenues |
|
| (51,878 | ) |
|
| (59,015 | ) |
|
| (104,774 | ) |
|
| (114,679 | ) |
Customer Revenues |
| $ | 488,410 |
|
| $ | 529,339 |
|
| $ | 973,927 |
|
| $ | 1,030,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax Earnings (Loss) from Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAM, inclusive of interest expense |
|
| 15,247 |
|
|
| 31,020 |
|
|
| 28,656 |
|
|
| 65,220 |
|
ACMI Services, inclusive of interest expense |
|
| (7,076 | ) |
|
| 24,054 |
|
|
| (10,561 | ) |
|
| 21,643 |
|
Other Activities |
|
| 2,973 |
|
|
| (1,299 | ) |
|
| 5,280 |
|
|
| (645 | ) |
Net, unallocated interest expense |
|
| (1,008 | ) |
|
| (526 | ) |
|
| (1,984 | ) |
|
| (1,036 | ) |
Non-service components of retiree benefit costs |
|
| (1,086 | ) |
|
| (3,218 | ) |
|
| (2,171 | ) |
|
| (6,436 | ) |
Net gain on financial instruments |
|
| 2,946 |
|
|
| 1,818 |
|
|
| 5,301 |
|
|
| 78 |
|
Loss from non-consolidated affiliates |
|
| (1,254 | ) |
|
| (2,107 | ) |
|
| (1,333 | ) |
|
| (2,513 | ) |
Earnings from Continuing Operations before Income Taxes (GAAP) |
| $ | 10,742 |
|
| $ | 49,742 |
|
| $ | 23,188 |
|
| $ | 76,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Pretax Earnings from Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add contra-revenue from customer incentive |
|
| 7,173 |
|
|
| 4,719 |
|
|
| 11,085 |
|
|
| 10,541 |
|
Add loss from non-consolidated affiliates |
|
| 1,254 |
|
|
| 2,107 |
|
|
| 1,333 |
|
|
| 2,513 |
|
Less net gain on financial instruments |
|
| (2,946 | ) |
|
| (1,818 | ) |
|
| (5,301 | ) |
|
| (78 | ) |
Less non-service components of retiree benefit costs |
|
| 1,086 |
|
|
| 3,218 |
|
|
| 2,171 |
|
|
| 6,436 |
|
Add net charges for hangar foam incident |
|
| — |
|
|
| (28 | ) |
|
| — |
|
|
| 13 |
|
Adjusted Pretax Earnings (non-GAAP) |
| $ | 17,309 |
|
| $ | 57,940 |
|
| $ | 32,476 |
|
| $ | 95,736 |
|
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 |
|
| Six Months Ended |
| ||||||||||
|
| June 30, |
|
| June 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from Continuing Operations Before Income Taxes |
| $ | 10,742 |
|
| $ | 49,742 |
|
| $ | 23,188 |
|
| $ | 76,311 |
|
Interest Income |
|
| (218 | ) |
|
| (180 | ) |
|
| (457 | ) |
|
| (395 | ) |
Interest Expense |
|
| 21,403 |
|
|
| 16,672 |
|
|
| 43,391 |
|
|
| 32,377 |
|
Depreciation and Amortization |
|
| 91,879 |
|
|
| 82,691 |
|
|
| 182,259 |
|
|
| 167,419 |
|
EBITDA from Continuing Operations (non-GAAP) |
| $ | 123,806 |
|
| $ | 148,925 |
|
| $ | 248,381 |
|
| $ | 275,712 |
|
Add contra-revenue from customer incentive |
|
| 7,173 |
|
|
| 4,719 |
|
|
| 11,085 |
|
|
| 10,541 |
|
Add start-up loss from non-consolidated affiliates |
|
| 1,254 |
|
|
| 2,107 |
|
|
| 1,333 |
|
|
| 2,513 |
|
Less net gain on financial instruments |
|
| (2,946 | ) |
|
| (1,818 | ) |
|
| (5,301 | ) |
|
| (78 | ) |
Less non-service components of retiree benefit costs |
|
| 1,086 |
|
|
| 3,218 |
|
|
| 2,171 |
|
|
| 6,436 |
|
Add net charges for hangar foam fire suppression system discharge |
|
| — |
|
|
| (28 | ) |
|
| — |
|
|
| 13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (non-GAAP) |
| $ | 130,373 |
|
| $ | 157,123 |
|
| $ | 257,669 |
|
| $ | 295,137 |
|
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), 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 |
|
| Six Months Ended |
| ||||||||||
|
| June 30, |
|
| June 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CASH FLOWS FROM OPERATING ACTIVITIES (GAAP) |
| $ | 137,101 |
|
| $ | 192,198 |
|
| $ | 263,521 |
|
| $ | 408,576 |
|
Sustaining capital expenditures |
|
| (27,344 | ) |
|
| (55,568 | ) |
|
| (57,770 | ) |
|
| (109,761 | ) |
ADJUSTED FREE CASH FLOW (non-GAAP) |
| $ | 109,757 |
|
| $ | 136,630 |
|
| $ | 205,751 |
|
| $ | 298,815 |
|
Aircraft acquisitions and freighter conversions |
|
| (43,153 | ) |
|
| (138,556 | ) |
|
| (115,048 | ) |
|
| (303,164 | ) |
Proceeds from property and equipment |
|
| 25,219 |
|
|
| 585 |
|
|
| 26,114 |
|
|
| 10,445 |
|
Acquisitions and investments in businesses |
|
| — |
|
|
| — |
|
|
| (9,800 | ) |
|
| (800 | ) |
FREE CASH FLOW (non-GAAP) |
| $ | 91,823 |
|
| $ | (1,341 | ) |
| $ | 107,017 |
|
| $ | 5,296 |
|
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 buybacks 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 |
|
| Six Months Ended |
| ||||||||||||||||||||||||||
|
| June 30, 2024 |
|
| June 30, 2023 |
|
| June 30, 2024 |
|
| June 30, 2023 |
| ||||||||||||||||||||
|
| $ |
|
| $ Per Share |
|
| $ |
|
| $ Per Share |
|
| $ |
|
| $ Per Share |
|
| $ |
|
| $ Per Share |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from Continuing Operations - basic (GAAP) | $ | 7,428 |
|
|
|
|
|
| $ | 38,022 |
|
|
|
|
|
| $ | 16,047 |
|
|
|
|
|
| $ | 58,163 |
|
|
|
|
| |
Gain from warrant revaluation, net tax1 |
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| (148 | ) |
|
|
|
|
Convertible notes interest charges, net of tax 2 |
|
| 158 |
|
|
|
|
|
|
| 780 |
|
|
|
|
|
|
| 317 |
|
|
|
|
|
|
| 1,556 |
|
|
|
|
|
Earnings from Continuing Operations - diluted (GAAP) |
|
| 7,586 |
|
|
| 0.11 |
|
|
| 38,802 |
|
| $ | 0.49 |
|
|
| 16,364 |
|
| $ | 0.24 |
|
|
| 59,571 |
|
| $ | 0.73 |
|
Adjustments, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer incentive 3 |
|
| 5,434 |
|
|
| 0.08 |
|
|
| 3,665 |
|
|
| 0.05 |
|
|
| 8,427 |
|
|
| 0.13 |
|
|
| 8,211 |
|
|
| 0.11 |
|
Non-service component of retiree benefits4 |
|
| 823 |
|
|
| 0.01 |
|
|
| 2,499 |
|
|
| 0.03 |
|
|
| 1,653 |
|
|
| 0.02 |
|
|
| 5,012 |
|
|
| 0.06 |
|
Derivative and warrant revaluation5 |
|
| (2,232 | ) |
|
| (0.02 | ) |
|
| (1,411 | ) |
|
| (0.02 | ) |
|
| (4,034 | ) |
|
| (0.06 | ) |
|
| 95 |
|
|
| 0.00 |
|
Loss from affiliates6 |
|
| 950 |
|
|
| 0.01 |
|
|
| 1,636 |
|
|
| 0.02 |
|
|
| 1,010 |
|
|
| 0.02 |
|
|
| 1,953 |
|
|
| 0.02 |
|
Hangar foam incident7 |
|
| — |
|
|
| — |
|
|
| (22 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 10 |
|
|
| 0.00 |
|
Adjusted Earnings and Adjusted Earnings Per Share (non-GAAP) |
| $ | 12,561 |
|
| $ | 0.19 |
|
| $ | 45,169 |
|
| $ | 0.57 |
|
| $ | 23,420 |
|
| $ | 0.35 |
|
| $ | 74,852 |
|
| $ | 0.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
|
|
|
|
|
| Shares |
|
|
|
|
|
| Shares |
|
|
|
|
|
| Shares |
|
|
|
|
| ||||
Weighted Average Shares - diluted1 |
|
| 67,301 |
|
|
|
|
|
|
| 79,515 |
|
|
|
|
|
|
| 67,268 |
|
|
|
|
|
|
| 81,276 |
|
|
|
|
|
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.
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES AIRCRAFT FLEET | ||||||||||||||||
Aircraft Types |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| June 30, 2023 |
| December 31, 2023 |
| June 30, 2024 |
|
| ||||||||
|
| Freighter |
| Passenger |
| Freighter |
| Passenger |
| Freighter |
| Passenger |
| Freighter |
| Passenger |
Aircraft in service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B767-200 2 |
| 24 |
| 3 |
| 22 |
| 3 |
| 18 |
| 3 |
| 17 |
| 3 |
B767-300 |
| 83 |
| 8 |
| 87 |
| 8 |
| 93 |
| 10 |
| 106 |
| 10 |
B777-200 |
| — |
| 3 |
| — |
| 3 |
| — |
| 3 |
| — |
| 3 |
B757-200 |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
B757 Combi |
| — |
| 4 |
| — |
| 4 |
| — |
| 4 |
| — |
| 4 |
A321-200 |
| — |
| — |
| 3 |
| — |
| 3 |
| — |
| 4 |
| — |
A330 |
| — |
| — |
| — |
| — |
| — |
| — |
| 2 |
| — |
Total Aircraft in Service |
| 107 |
| 18 |
| 112 |
| 18 |
| 114 |
| 20 |
| 129 |
| 20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft available for lease |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B767-200 |
| 2 |
| — |
| 1 |
| — |
| — |
| — |
| — |
| — |
B767-300 |
| — |
| — |
| 3 |
| — |
| 2 |
| — |
| 3 |
| — |
A321 |
| — |
| — |
| — |
| — |
| — |
| — |
| 5 |
| — |
A330 |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
Total Aircraft Available for Lease |
| 2 |
| — |
| 4 |
| — |
| 2 |
| — |
| 8 |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft in Cargo Modification |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B767-300 |
| 20 |
| — |
| 9 |
| — |
| 5 |
| — |
| 2 |
| — |
A321 |
| 9 |
| — |
| 6 |
| — |
| 6 |
| — |
| — |
| — |
A330 |
| — |
| — |
| 2 |
| — |
| 4 |
| — |
| 3 |
| — |
Feedstock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B767 |
| — |
| — |
| 5 |
| — |
| 7 |
| — |
| 5 |
| — |
A321 |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
A330 |
| — |
| — |
| 1 |
|
|
| 1 |
|
|
| 1 |
|
|
Total Aircraft |
| 138 |
| 18 |
| 139 |
| 18 |
| 139 |
| 20 |
| 148 |
| 20 |
Aircraft in Service |
|
|
|
|
|
|
|
|
|
| June 30, |
| December 31, |
| June 30, |
| December 31, |
|
| 2023 |
| 2023 |
| 2024 |
| 2024 Projected 1 |
|
|
|
|
|
|
|
|
|
Dry leased without CMI |
| 38 |
| 42 |
| 47 |
| 52 |
Dry leased with CMI |
| 48 |
| 48 |
| 40 |
| 40 |
Customer provided for CMI |
| 15 |
| 16 |
| 17 |
| 27 |
ACMI/Charter3 |
| 24 |
| 24 |
| 30 |
| 30 |