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ATSG
🇺🇸 NASDAQ:ATSG
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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.

Total Revenue
$501M
Previous year: $486M
+3.1%
EPS
$0.36
Previous year: $0.56
-35.7%
Gross Profit
$99M
Previous year: $116M
-14.9%
Cash and Equivalents
$89.6M
Previous year: $35.5M
+152.1%
Free Cash Flow
-$2.42M
Previous year: $17.4M
-113.9%
Total Assets
$3.7B
Previous year: $3.29B
+12.6%

ATSG

ATSG

ATSG 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.
  • 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

Company Overview

Full financial data and analysis

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