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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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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