Loading...
•
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.
ATSG
ATSG
ATSG Revenue by Segment
Revenue by Segment
ACMI Services Revenue
CapyFin.comOther Activities Revenue
CapyFin.com 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