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Jun 30, 2020
ATSG Q2 2020 Earnings Report
Reported solid growth, improved cash flows, and strong demand for leased cargo aircraft
Key Takeaways
ATSG's second quarter 2020 saw a 13% increase in customer revenues, driven by growth in aircraft leasing and air transport segments. While GAAP earnings showed a loss due to financial instrument re-measurements and an impairment charge, adjusted earnings rose significantly. The company also raised its adjusted EBITDA guidance for 2020.
Customer revenues increased by 13% to $377.8 million.
GAAP Earnings from Continuing Operations were a loss of $105.2 million, impacted by financial instrument revaluations and an impairment charge.
Adjusted Earnings from Continuing Operations rose 74% to $32.5 million.
Adjusted EBITDA from Continuing Operations increased 20% to $125.6 million.
Revenue by Segment
Forward Guidance
ATSG expects Adjusted EBITDA for 2020 to be at least $470 million and anticipates capital spending in 2021 will decline to approximately $350 million.
Positive Outlook
- Robust demand for cargo aircraft and related airline services.
- Stronger than expected demand from governmental agencies for passenger charter flights.
- Expects to lease twelve 767-300 freighters in 2020 to external customers.
- Long-term outlook is very bright, with especially strong demand for cargo aircraft.
- Focus on providing capacity and value-added services for express air-networks of global e-commerce companies.
Challenges Ahead
- Pandemic impacts on commercial and military passenger flying.
- Reduced likelihood of continued passenger charter opportunities.
- Effects on the global economy are difficult to predict.
- Potential impact on ATSG’s business later this year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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