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Mar 31, 2022

ATSG Q1 2022 Earnings Report

ATSG's financial performance improved, marked by revenue and earnings growth across its segments.

Key Takeaways

Air Transport Services Group (ATSG) reported record first-quarter results for 2022, with revenues up 29% to $486 million and GAAP earnings increasing by 18% to $50 million. The company's performance benefited from a rebound in passenger flying and strong returns from freighter leasing, setting a strong pace for 2022.

Revenues increased by 29% to $486 million compared to Q1 2021.

GAAP Earnings rose by 18% to $50 million.

Adjusted Earnings Per Share reached $0.56, nearly tripling the previous year's $0.20.

Adjusted EBITDA increased by 49% to $158 million.

Total Revenue
$486M
Previous year: $376M
+29.2%
EPS
$0.56
Previous year: $0.19
+194.7%
Adjusted EBITDA
$158M
Gross Profit
$116M
Previous year: $66.8M
+74.3%
Cash and Equivalents
$35.5M
Free Cash Flow
$17.4M
Previous year: -$994K
-1852.1%
Total Assets
$3.29B
Previous year: $3.05B
+7.8%

ATSG

ATSG

ATSG Revenue by Segment

Forward Guidance

ATSG projects a record $640 million in Adjusted EBITDA for 2022 and capital spending of $590 million, including $200 million in sustaining capex and $390 million for growth.

Positive Outlook

  • Dry leases of eleven more converted freighters, including nine 767-300s.
  • CMI assignments for nine more 767 freighter aircraft, including two leased by CAM and seven others placed by owners or lessees.
  • Continued increase in Omni’s commercial charter and ATI’s combi flights throughout 2022.
  • Customer orders for all 30 newly converted freighters to be leased this year and next year.
  • Customer orders for the first 20 of 29 Airbus A330s to be acquired and converted, with leases beginning in 2024 through 2026.

Challenges Ahead

  • No specific negative guidance mentioned in the provided text.

Revenue & Expenses

Visualization of income flow from segment revenue to net income