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Mar 31, 2023
ATSG Q1 2023 Earnings Report
ATSG's financial performance in Q1 2023 reflected operating headwinds and inflationary pressures, although CAM saw continued demand.
Key Takeaways
ATSG reported a 3% increase in revenue to $501 million, but experienced a decrease in GAAP EPS to $0.28 and a decline in Adjusted EBITDA to $138 million due to lower passenger airline revenues and inflationary impacts. The aircraft leasing business, CAM, saw no reduction in demand.
Revenues increased by 3% to $501 million compared to the same quarter in 2022.
GAAP EPS (basic) from Continuing Operations decreased to $0.28, down from $0.67.
Adjusted EBITDA decreased to $138 million, a $20 million decrease from the prior year.
CAM's external aircraft leasing revenue increased by 8% due to new Boeing 767-300 freighters.
ATSG
ATSG
ATSG Revenue by Segment
Revenue by Segment
ACMI Services Revenue
CapyFin.comOther Activities Revenue
CapyFin.com Forward Guidance
ATSG expects Adjusted EBITDA for 2023 to be in the range of $610 million to $620 million, and full year Adjusted EPS in a range of $1.55 to $1.70. CAM is projected to deliver results consistent with February guidance.
Positive Outlook
- ACMI Services pretax results will be slightly positive in the first half, and improving in the second half.
- Dry leases this year for up to six Airbus A321-200 freighters currently awaiting approval by the foreign regulatory agencies, and fourteen newly converted 767-300s.
- CAM is expected to generate more than $70 million in 2024 revenues from freighters it expects to lease this year.
- Demand for ATSG’s freighter aircraft remains very strong.
- Customers remain eager to lease the freighter aircraft.
Challenges Ahead
- Lower ACMI Services passenger flying than was projected.
- Inflationary effects associated with our ACMI airline operations since initial 2023 guidance in February.
- CAM's results will also be affected by the re-lease or sale of five Boeing 767-200 freighters currently leased to Amazon.
- Market conditions could affect projected returns on fleet investments.
- Supply chain constraints both within and outside the United States, which may be more severe or persist longer than we currently expect
Revenue & Expenses
Visualization of income flow from segment revenue to net income