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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.
Revenue by Segment
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.
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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