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Mar 31, 2020
ATSG Q1 2020 Earnings Report
Reported strong growth in revenues, earnings, adjusted earnings and adjusted EBITDA compared to Q1 2019.
Key Takeaways
ATSG reported a 12% increase in customer revenues, reaching $389.3 million. GAAP earnings from continuing operations were $133.7 million, and adjusted EBITDA from continuing operations increased by 9% to $124.0 million.
Customer revenues increased by 12% to $389.3 million.
GAAP Earnings from Continuing Operations were $133.7 million, or $2.27 per share basic.
Adjusted Earnings from Continuing Operations (non-GAAP) rose 13 percent, to $29.3 million.
Adjusted EBITDA from Continuing Operations (non-GAAP) increased 9 percent, to $124.0 million.
Forward Guidance
Due to uncertainties from the global pandemic, ATSG is no longer providing specific Adjusted EBITDA guidance for 2020 but expects it to exceed $452 million. Second quarter Adjusted EBITDA is expected to range from $110 million to $115 million.
Positive Outlook
- Expects 2020 Adjusted EBITDA to exceed 2019 total of $452 million.
- Customers intend to continue using aircraft and resources largely in line with earlier expectations.
- Plans to lease seven to nine more newly converted 767s this year.
- Most cargo aircraft continue to operate within expanding time-definite express networks.
- E-commerce transactions accelerate during the pandemic.
Challenges Ahead
- No longer able to provide specific guidance for its Adjusted EBITDA for the full year 2020.
- Level and duration of COVID-19 impacts, primarily on passenger business, is difficult to forecast.
- Demand for passenger aircraft is expected to remain sensitive to pandemic-driven changes in the U.S. military’s troop deployment and rotation plans.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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