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ATSG
🇺🇸 NASDAQ:ATSG
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Mar 31, 2021

ATSG Q1 2021 Earnings Report

ATSG's financial results decreased due to reduced passenger and combi services, and increased operating expenses as a result of the pandemic, while aircraft leasing revenues increased.

Key Takeaways

ATSG reported a decrease in customer revenues to $376.1 million, GAAP earnings from continuing operations decreased to $42.3 million, and adjusted earnings from continuing operations decreased to $15.2 million. However, aircraft leasing revenues increased due to new Boeing 767-300 freighter leases, with 15 new leases since March 2020, including five in Q1 2021. The company expects Adjusted EBITDA for 2021 to be at least $525 million.

Customer revenues decreased to $376.1 million, with ACMI Services revenues down due to reduced passenger and combi services.

GAAP Earnings from Continuing Operations decreased to $42.3 million, or $0.71 per share basic.

Adjusted Earnings from Continuing Operations (non-GAAP) decreased to $15.2 million, or $0.19 per share diluted.

Aircraft leasing revenues increased due to fifteen new leases of Boeing 767-300 freighters since March 2020, including five in Q1 2021.

Total Revenue
$376M
Previous year: $389M
-3.4%
EPS
$0.19
Previous year: $0.43
-55.8%
Gross Profit
$66.8M
Previous year: $88.3M
-24.4%
Free Cash Flow
-$994K
Previous year: -$44.5M
-97.8%
Total Assets
$3.05B
Previous year: $2.92B
+4.4%

ATSG

ATSG

ATSG Revenue by Segment

Forward Guidance

ATSG continues to expect its Adjusted EBITDA for 2021 to be at least $525 million, or six percent more than 2020 Adjusted EBITDA of $497 million.

Positive Outlook

  • Lease of at least sixteen more 767-300 freighter aircraft.
  • CMI flight operations for at least thirteen more 767 freighters in 2021.
  • Customer demand for converted 767 freighters is driven by e-commerce shipping and shows no sign of abating.
  • Expect to lease at least ten more Boeing 767-300 freighter aircraft in 2022.
  • Multiple customers are expressing interest in signing multi -unit freighter orders with us starting as late as 2025.

Challenges Ahead

  • Passenger charter and combi operations are recovering at a slower pace than expected.
  • Margins for airlines remain below targets.
  • Combi operations for the U.S. military to be impacted through 2021 by runway maintenance at one of the remote military bases it serves.
  • The ACMI Services segment will continue to bear the costs of pilot recruitment and training for the flight crews that support its expanding CMI operations.
  • Outlook assumes extended costs for incremental measures to protect the health and safety of its employees.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View ATSG