Air Transport Services Group, one of the leading providers of medium wide-body aircraft leasing, contracted air transportation, and related services, today reported consolidated financial results for the second quarter ended June 30, 2023. Those results, as compared with the same quarter in 2022 were as follows:
Revenues of $529 million, up 4%GAAP EPS (basic) from Continuing Operations of $0.54, down $0.19Adjusted EPS* from Continuing Operations of $0.57, versus $0.59 dilutedPretax Earnings of $50 million, down from $69 million.Adjusted Pretax* Earnings of $58 million, down from $67 millionAdjusted EBITDA* of $157 million, comparable to prior year3.9 million shares repurchased since October 2022, including 950,000 shares in the second quarter
Aircraft leasing and related revenues from external customers in the second quarter were up 4% compared with the prior year quarter, driven by higher average lease rates as more 767-300s have been deployed, offset in part by fewer leased 767-200 aircraft.Pre-tax earnings decreased 22% to $31 million versus the prior year quarter. Earnings were impacted by the scheduled return of ten 767-200s since June 2022, including seven in the second quarter this year. Interest expense versus the prior year period increased $5 million, and depreciation was up $2 million, also impacting pre-tax earnings.CAM deployed one 767-300 leased freighter to an external customer during the quarter. Six more leased freighters have been deployed since June 30, 2023, including four more 767-300s, and two A321-200s.Twenty-three aircraft are currently in or awaiting conversion to freighters. That total includes seven A321 aircraft and sixteen 767-300s.
ACMI Services
Pre-tax earnings were $24 million in the second quarter, up 10% versus the prior year quarter, driven by improved performance of passenger operations, including both military and commercial flying, and greater operating efficiencies.Revenue block hours for ATSG's cargo airlines were up 1% for the second quarter while operating a net three more 767 freighters compared with the prior-year period. Cargo block hours were affected by the loss of certain long-haul ACMI flying between the U.S. and Europe versus 2022.Hours flown by the four Boeing 757 combination freighter-passenger aircraft were up significantly due to the resumption of a Pacific route in late 2022.Passenger block hours, including combi flying, decreased 2%. The prior-year quarter included passenger hours flown for additional routes to Europe.
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, | ||||||||
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
REVENUES | $ | 529,339 |
| $ | 509,668 |
| $ | 1,030,434 |
| $ | 995,528 |
|
|
|
|
|
|
|
| ||||
OPERATING EXPENSES |
|
|
|
|
|
|
| ||||
Salaries, wages and benefits |
| 170,458 |
|
| 162,797 |
|
| 347,173 |
|
| 324,559 |
Depreciation and amortization |
| 82,691 |
|
| 81,372 |
|
| 167,419 |
|
| 163,443 |
Maintenance, materials and repairs |
| 50,436 |
|
| 39,407 |
|
| 94,269 |
|
| 75,116 |
Fuel |
| 67,271 |
|
| 73,102 |
|
| 134,026 |
|
| 133,460 |
Contracted ground and aviation services |
| 19,682 |
|
| 20,153 |
|
| 37,470 |
|
| 38,484 |
Travel |
| 31,222 |
|
| 28,480 |
|
| 60,775 |
|
| 52,679 |
Landing and ramp |
| 4,744 |
|
| 4,085 |
|
| 8,868 |
|
| 8,663 |
Rent |
| 8,274 |
|
| 7,068 |
|
| 16,386 |
|
| 13,731 |
Insurance |
| 2,684 |
|
| 2,326 |
|
| 5,232 |
|
| 4,878 |
Other operating expenses |
| 22,136 |
|
| 20,361 |
|
| 41,652 |
|
| 40,204 |
|
| 459,598 |
|
| 439,151 |
|
| 913,270 |
|
| 855,217 |
|
|
|
|
|
|
|
| ||||
OPERATING INCOME |
| 69,741 |
|
| 70,517 |
|
| 117,164 |
|
| 140,311 |
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
| ||||
Interest income |
| 180 |
|
| 15 |
|
| 395 |
|
| 24 |
Non-service component of retiree benefit credits |
| (3,218) |
|
| 5,388 |
|
| (6,436) |
|
| 10,776 |
Net gain on financial instruments |
| 1,818 |
|
| 6,011 |
|
| 78 |
|
| 8,707 |
Loss from non-consolidated affiliates |
| (2,107) |
|
| (3,220) |
|
| (2,513) |
|
| (4,623) |
Interest expense |
| (16,672) |
|
| (9,461) |
|
| (32,377) |
|
| (20,860) |
|
| (19,999) |
|
| (1,267) |
|
| (40,853) |
|
| (5,976) |
|
|
|
|
|
|
|
| ||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
| 49,742 |
|
| 69,250 |
|
| 76,311 |
|
| 134,335 |
INCOME TAX EXPENSE |
| (11,720) |
|
| (15,040) |
|
| (18,148) |
|
| (30,329) |
|
|
|
|
|
|
|
| ||||
EARNINGS FROM CONTINUING OPERATIONS |
| 38,022 |
|
| 54,210 |
|
| 58,163 |
|
| 104,006 |
|
|
|
|
|
|
|
| ||||
EARNINGS FROM DISCONTINUED OPERATIONS, NET OF TAX |
| — |
|
| 882 |
|
| — |
|
| 882 |
NET EARNINGS | $ | 38,022 |
| $ | 55,092 |
| $ | 58,163 |
| $ | 104,888 |
|
|
|
|
|
|
|
| ||||
EARNINGS PER SHARE - CONTINUING OPERATIONS |
|
|
|
|
|
|
| ||||
Basic | $ | 0.54 |
| $ | 0.73 |
| $ | 0.82 |
| $ | 1.41 |
Diluted | $ | 0.49 |
| $ | 0.61 |
| $ | 0.73 |
| $ | 1.18 |
|
|
|
|
|
|
|
| ||||
WEIGHTED AVERAGE SHARES - CONTINUING OPERATIONS |
|
|
|
|
|
|
| ||||
Basic |
| 70,722 |
|
| 73,980 |
|
| 71,259 |
|
| 73,934 |
Diluted |
| 79,515 |
|
| 89,449 |
|
| 81,276 |
|
| 89,098 |
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||
(In thousands, except share data) | |||||
| June 30, 2023 |
| December 31, 2022 | ||
ASSETS |
|
|
| ||
CURRENT ASSETS: |
|
|
| ||
Cash and cash equivalents | $ | 43,150 |
| $ | 27,134 |
Accounts receivable, net of allowance of $1,186 in 2023 and $939 in 2022 |
| 218,312 |
|
| 301,622 |
Inventory |
| 57,648 |
|
| 57,764 |
Prepaid supplies and other |
| 32,387 |
|
| 31,956 |
TOTAL CURRENT ASSETS |
| 351,497 |
|
| 418,476 |
|
|
|
| ||
Property and equipment, net |
| 2,678,980 |
|
| 2,402,408 |
Customer incentive |
| 69,109 |
|
| 79,650 |
Goodwill and acquired intangibles |
| 487,534 |
|
| 492,642 |
Operating lease assets |
| 60,808 |
|
| 74,070 |
Other assets |
| 104,637 |
|
| 122,647 |
TOTAL ASSETS | $ | 3,752,565 |
| $ | 3,589,893 |
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
| ||
CURRENT LIABILITIES: |
|
|
| ||
Accounts payable | $ | 269,805 |
| $ | 192,992 |
Accrued salaries, wages and benefits |
| 51,509 |
|
| 56,498 |
Accrued expenses |
| 11,061 |
|
| 12,466 |
Current portion of debt obligations |
| 645 |
|
| 639 |
Current portion of lease obligations |
| 21,771 |
|
| 23,316 |
Unearned revenue |
| 38,654 |
|
| 21,546 |
TOTAL CURRENT LIABILITIES |
| 393,445 |
|
| 307,457 |
Long term debt |
| 1,514,737 |
|
| 1,464,285 |
Stock obligations |
| 1,762 |
|
| 695 |
Post-retirement obligations |
| 32,612 |
|
| 35,334 |
Long term lease obligations |
| 40,032 |
|
| 51,575 |
Other liabilities |
| 54,565 |
|
| 62,861 |
Deferred income taxes |
| 272,208 |
|
| 255,180 |
|
|
|
| ||
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; 70,761,243 and 72,327,758 shares issued and outstanding in 2023 and 2022, respectively |
| 708 |
|
| 723 |
Additional paid-in capital |
| 951,463 |
|
| 986,303 |
Retained earnings |
| 587,045 |
|
| 528,882 |
Accumulated other comprehensive loss |
| (96,012) |
|
| (103,402) |
TOTAL STOCKHOLDERS’ EQUITY |
| 1,443,204 |
|
| 1,412,506 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,752,565 |
| $ | 3,589,893 |
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, | ||||||||
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
|
|
|
|
|
|
|
| ||||
OPERATING CASH FLOWS | $ | 192,198 |
| $ | 124,541 |
| $ | 408,576 |
| $ | 250,209 |
|
|
|
|
|
|
|
| ||||
INVESTING ACTIVITIES: |
|
|
|
|
|
|
| ||||
Aircraft acquisitions and freighter conversions |
| (138,556) |
|
| (133,378) |
|
| (303,164) |
|
| (205,293) |
Planned aircraft maintenance, engine overhauls and other non-aircraft additions to property and equipment |
| (55,568) |
|
| (52,580) |
|
| (109,761) |
|
| (88,917) |
Proceeds from sales of property and equipment |
| 585 |
|
| 78 |
|
| 10,445 |
|
| 154 |
Acquisitions and investments in businesses |
| — |
|
| (16,545) |
|
| (800) |
|
| (16,545) |
TOTAL INVESTING CASH FLOWS |
| (193,539) |
|
| (202,425) |
|
| (403,280) |
|
| (310,601) |
|
|
|
|
|
|
|
| ||||
FINANCING ACTIVITIES: |
|
|
|
|
|
|
| ||||
Principal payments on debt |
| (65,103) |
|
| (205,210) |
|
| (90,317) |
|
| (295,310) |
Proceeds from borrowings |
| 35,000 |
|
| 410,000 |
|
| 140,000 |
|
| 450,000 |
Payments for financing costs |
| (27) |
|
| — |
|
| (511) |
|
| — |
Bond Repurchase |
| — |
|
| (115,204) |
|
| — |
|
| (115,204) |
Purchase of common stock |
| (14,956) |
|
| — |
|
| (36,874) |
|
| — |
Taxes paid for conversion of employee awards |
| (25) |
|
| (89) |
|
| (1,578) |
|
| (1,439) |
TOTAL FINANCING CASH FLOWS |
| (45,111) |
|
| 89,497 |
|
| 10,720 |
|
| 38,047 |
|
|
|
|
|
|
|
| ||||
NET INCREASE (DECREASE) IN CASH | $ | (46,452) |
| $ | 11,613 |
| $ | 16,016 |
| $ | (22,345) |
|
|
|
|
|
|
|
| ||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | $ | 89,602 |
| $ | 35,538 |
| $ | 27,134 |
| $ | 69,496 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 43,150 |
| $ | 47,151 |
| $ | 43,150 |
| $ | 47,151 |
|
|
|
|
|
|
|
|
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, | ||||||||
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
Revenues |
|
|
|
|
|
|
| ||||
CAM |
|
|
|
|
|
|
| ||||
Aircraft leasing and related revenues | $ | 115,281 |
| $ | 114,703 |
| $ | 232,355 |
| $ | 226,638 |
Lease incentive amortization |
| (3,903) |
|
| (5,029) |
|
| (8,933) |
|
| (10,059) |
Total CAM |
| 111,378 |
|
| 109,674 |
|
| 223,422 |
|
| 216,579 |
ACMI Services |
| 366,187 |
|
| 347,498 |
|
| 700,314 |
|
| 677,588 |
Other Activities |
| 110,789 |
|
| 107,879 |
|
| 221,377 |
|
| 210,414 |
Total Revenues |
| 588,354 |
|
| 565,051 |
|
| 1,145,113 |
|
| 1,104,581 |
Eliminate internal revenues |
| (59,015) |
|
| (55,383) |
|
| (114,679) |
|
| (109,053) |
Customer Revenues | $ | 529,339 |
| $ | 509,668 |
| $ | 1,030,434 |
| $ | 995,528 |
|
|
|
|
|
|
|
| ||||
Pretax Earnings (Loss) from Continuing Operations |
|
|
|
|
|
|
| ||||
CAM, inclusive of interest expense |
| 31,020 |
|
| 39,617 |
|
| 65,220 |
|
| 74,612 |
ACMI Services, interest expense |
| 24,054 |
|
| 21,837 |
|
| 21,643 |
|
| 44,002 |
Other Activities |
| (1,299) |
|
| 191 |
|
| (645) |
|
| 1,742 |
Net, unallocated interest expense |
| (526) |
|
| (574) |
|
| (1,036) |
|
| (881) |
Non-service components of retiree benefit credit |
| (3,218) |
|
| 5,388 |
|
| (6,436) |
|
| 10,776 |
Net gain on financial instruments |
| 1,818 |
|
| 6,011 |
|
| 78 |
|
| 8,707 |
Loss from non-consolidated affiliates |
| (2,107) |
|
| (3,220) |
|
| (2,513) |
|
| (4,623) |
Earnings from Continuing Operations before Income Taxes (GAAP) | $ | 49,742 |
| $ | 69,250 |
| $ | 76,311 |
| $ | 134,335 |
|
|
|
|
|
|
|
| ||||
Adjustments to Pretax Earnings from Continuing Operations |
|
|
|
|
|
|
| ||||
Add customer incentive amortization |
| 4,719 |
|
| 5,822 |
|
| 10,541 |
|
| 11,620 |
Add loss from non-consolidated affiliates |
| 2,107 |
|
| 3,220 |
|
| 2,513 |
|
| 4,623 |
Less net gain on financial instruments |
| (1,818) |
|
| (6,011) |
|
| (78) |
|
| (8,707) |
Less non-service components of retiree benefit credit |
| 3,218 |
|
| (5,388) |
|
| 6,436 |
|
| (10,776) |
Add net charges for hangar foam incident |
| (28) |
|
| — |
|
| 13 |
|
| — |
Adjusted Pretax Earnings (non-GAAP) | $ | 57,940 |
| $ | 66,893 |
| $ | 95,736 |
| $ | 131,095 |
Adjusted Pretax Earnings 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, | ||||||||
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
|
|
|
|
|
|
|
| ||||
Earnings (Loss) from Continuing Operations Before Income Taxes | $ | 49,742 |
| $ | 69,250 |
| $ | 76,311 |
| $ | 134,335 |
Interest Income |
| (180) |
|
| (15) |
|
| (395) |
|
| (24) |
Interest Expense |
| 16,672 |
|
| 9,461 |
|
| 32,377 |
|
| 20,860 |
Depreciation and Amortization |
| 82,691 |
|
| 81,372 |
|
| 167,419 |
|
| 163,443 |
EBITDA from Continuing Operations (non-GAAP) | $ | 148,925 |
| $ | 160,068 |
| $ | 275,712 |
| $ | 318,614 |
Add customer incentive amortization |
| 4,719 |
|
| 5,822 |
|
| 10,541 |
|
| 11,620 |
Add start-up loss from non-consolidated affiliates |
| 2,107 |
|
| 3,220 |
|
| 2,513 |
|
| 4,623 |
Less net gain on financial instruments |
| (1,818) |
|
| (6,011) |
|
| (78) |
|
| (8,707) |
Add non-service components of retiree benefit credits |
| 3,218 |
|
| (5,388) |
|
| 6,436 |
|
| (10,776) |
Add net charges for hangar foam incident |
| (28) |
|
| — |
|
| 13 |
|
| — |
|
|
|
|
|
|
|
| ||||
Adjusted EBITDA (non-GAAP) | $ | 157,123 |
| $ | 157,711 |
| $ | 295,137 |
| $ | 315,374 |
Management uses Adjusted EBITDA to assess the performance of its 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 charges related to the discharge of a fire suppression system in the Company's aircraft hangar, net of related insurance recoveries. Management presents EBITDA from Continuing Operations, a commonly referenced metric, as a subtotal toward computing Adjusted EBITDA.
EBITDA from Continuing Operations 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 including pension plan settlements, amortization of warrant-based customer incentive costs recorded in revenue, costs from non-consolidated affiliates and charges related to the discharge of a fire suppression system, net of insurance recoveries.
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES | ||||||||||||||
ADJUSTED FREE CASH FLOW | ||||||||||||||
NON-GAAP RECONCILIATION | ||||||||||||||
(In thousands) | ||||||||||||||
| Three Months Ended |
| Six Months Ended |
| Trailing 12 Months Ended | |||||||||
| June 30, |
| June 30, |
| June 30, | |||||||||
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
|
| 2023 |
|
|
|
|
|
|
|
|
|
| |||||
OPERATING CASH FLOWS (GAAP) | $ | 192,198 |
| $ | 124,541 |
| $ | 408,576 |
| $ | 250,209 |
| $ | 630,487 |
Sustaining capital expenditures |
| (55,568) |
|
| (52,580) |
|
| (109,761) |
|
| (88,917) |
|
| (207,680) |
|
|
|
|
|
|
|
|
|
| |||||
ADJUSTED FREE CASH FLOW (non-GAAP) | $ | 136,630 |
| $ | 71,961 |
| $ | 298,815 |
| $ | 161,292 |
| $ | 422,807 |
|
|
|
|
|
|
|
|
|
|
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 operations net of expenditures for planned aircraft maintenance, engine overhauls and other non-aircraft additions to property and equipment. 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, cash returns for shareholders 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 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, 2023 |
| June 30, 2022 |
| June 30, 2023 |
| June 30, 2022 | ||||||||||||||||
| $ |
| $ Per Share |
| $ |
| $ Per Share |
| $ |
| $ Per Share |
| $ |
| $ Per Share | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Earnings from Continuing Operations - basic (GAAP) | $ | 38,022 |
|
|
| $ | 54,210 |
|
|
| $ | 58,163 |
|
|
| $ | 104,006 |
|
| ||||
Gain from warrant revaluation, net tax1 |
| — |
|
|
|
| (107) |
|
|
|
| (148) |
|
|
|
| (50) |
|
| ||||
Convertible notes interest charges, net of tax 2 |
| 780 |
|
|
|
| 762 |
|
|
|
| 1,556 |
|
|
|
| 1,522 |
|
| ||||
Earnings from Continuing Operations - diluted (GAAP) |
| 38,802 |
| $ | 0.49 |
|
| 54,865 |
| $ | 0.61 |
|
| 59,571 |
| $ | 0.73 |
|
| 105,478 |
| $ | 1.18 |
Adjustments, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Customer incentive amortization3 |
| 3,665 |
|
| 0.05 |
|
| 4,493 |
|
| 0.05 |
|
| 8,211 |
|
| 0.11 |
|
| 8,968 |
|
| 0.10 |
Non-service component of retiree benefits4 |
| 2,499 |
|
| 0.03 |
|
| (4,158) |
|
| (0.05) |
|
| 5,012 |
|
| 0.06 |
|
| (8,316) |
|
| (0.09) |
Financial instrument revaluations5 |
| (1,411) |
|
| (0.02) |
|
| (4,533) |
|
| (0.05) |
|
| 95 |
|
| — |
|
| (6,671) |
|
| (0.07) |
Loss from affiliates6 |
| 1,636 |
|
| 0.02 |
|
| 2,485 |
|
| 0.03 |
|
| 1,953 |
|
| 0.02 |
|
| 3,568 |
|
| 0.04 |
Hangar foam incident7 |
| (22) |
|
| — |
|
| — |
|
| — |
|
| 10 |
|
| — |
|
| — |
|
| — |
Adjusted Earnings and Adjusted Earnings Per Share (non-GAAP) | $ | 45,169 |
| $ | 0.57 |
| $ | 53,152 |
| $ | 0.59 |
| $ | 74,852 |
| $ | 0.92 |
| $ | 103,027 |
| $ | 1.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Shares |
|
|
| Shares |
|
|
| Shares |
|
|
| Shares |
|
| ||||||||
Weighted Average Shares - diluted |
| 79,515 |
|
|
|
| 89,449 |
|
|
|
| 81,276 |
|
|
|
| 89,098 |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This presentation does not give effect to convertible note hedges the Company purchased having the same number of the Company's common shares, 8.1 million shares, and the same strike price of $31.90, that underlie the Convertible Notes. The convertible note hedges are expected to reduce the potential equity dilution with respect to the Company's common stock upon conversion of the Convertible Notes.
Adjusted Earnings and Adjusted Earnings Per Share should not be considered as alternatives to Earnings from Continuing Operations, Weighted Average Shares - diluted or Earnings 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.
1. 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 all periods presented, additional shares assumes that Amazon net settled its remaining warrants during each period. |
2. Application of accounting standard ASU No. 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" requires convertible debt to be treated under the "if-convert method" for EPS. |
3. 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. |
4. Removes the non-service component of post-retirement costs and credits. |
5. Removes gains and losses from period end financial instruments revaluations, including derivative interest rate instruments, customer warrant and sale option. |
6. Removes losses for the Company's non-consolidated affiliates. |
7. Removes charges and gains related to the discharge of a fire suppression system in the Company's aircraft hangar, net of related insurance recoveries. |
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||
AIRCRAFT FLEET | ||||||||||||||||
Aircraft Types |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| June 30, 2022 |
| December 31, 2022 |
| June 30, 2023 |
| December 31, 2023 Projected | ||||||||
|
| Freighter |
| Passenger |
| Freighter |
| Passenger |
| Freighter |
| Passenger |
| Freighter |
| Passenger |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B767-200 |
| 33 |
| 3 |
| 32 |
| 3 |
| 24 |
| 3 |
| 21 |
| 3 |
B767-300 |
| 70 |
| 8 |
| 78 |
| 8 |
| 83 |
| 8 |
| 93 |
| 8 |
B777-200 |
| — |
| 3 |
| — |
| 3 |
| — |
| 3 |
| — |
| 3 |
B757 Combi |
| — |
| 4 |
| — |
| 4 |
| — |
| 4 |
| — |
| 4 |
A321-200 |
| — |
| — |
| — |
| — |
| — |
| — |
| 5 |
| — |
Total Aircraft in Service |
| 103 |
| 18 |
| 110 |
| 18 |
| 107 |
| 18 |
| 119 |
| 18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In or awaiting cargo conversion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B767-300 |
| 14 |
| — |
| 15 |
| — |
| 20 |
| — |
| 12 |
| — |
A321 |
| 5 |
| — |
| 7 |
| — |
| 9 |
| — |
| 4 |
| — |
A330 |
| — |
| — |
| — |
| — |
| — |
| — |
| 3 |
| — |
B767 staging for lease |
| 1 |
| — |
| — |
| — |
| 2 |
| — |
| 2 |
| — |
Total Aircraft |
| 123 |
| 18 |
| 132 |
| 18 |
| 138 |
| 18 |
| 140 |
| 18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft in Service Deployments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| June 30 |
| December 31, |
| June 30 |
| December 31, | ||||||||
|
| 2022 |
| 2022 |
| 2023 |
| 2023 Projected | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dry leased without CMI |
| 37 |
| 39 |
| 38 |
| 49 | ||||||||
Dry leased with CMI |
| 52 |
| 52 |
| 48 |
| 47 | ||||||||
Customer provided for CMI |
| 7 |
| 13 |
| 15 |
| 16 | ||||||||
ACMI/Charter1 |
| 25 |
| 24 |
| 24 |
| 25 |
1. ACMI/Charter includes four Boeing 767 passenger aircraft leased from external companies. |