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Jun 30, 2021
ATSG Q2 2021 Earnings Report
ATSG's financial performance improved in Q2 2021, driven by strong demand for midsize freighters and improved airline performance.
Key Takeaways
ATSG reported increased customer revenues and a significant improvement in GAAP earnings compared to the same quarter last year. Adjusted EBITDA also increased, driven by strong e-commerce-related cargo operations. The company is optimistic about meeting or exceeding its overall results projected for 2021.
Customer revenues increased by 8% to $409.9 million.
GAAP Earnings from Continuing Operations were $79.9 million, or $1.17 per share basic.
Adjusted EBITDA from Continuing Operations increased to $127.8 million.
ATSG expects its Adjusted EBITDA for 2021 to be at least $525 million.
ATSG
ATSG
ATSG Revenue by Segment
Revenue by Segment
Cargo Aircraft Management Revenue
CapyFin.comACMI Services Revenue
CapyFin.comOther Activities Revenue
CapyFin.com Forward Guidance
ATSG continues to expect its Adjusted EBITDA for 2021 to be at least $525 million, or six percent more than 2020 Adjusted EBITDA of $497 million.
Positive Outlook
- E-commerce merchandising continues to drive strong demand for freighter aircraft capacity worldwide.
- Orders from companies such as DHL, Star Air, and Amerijet to lease at least ten more Boeing 767-300 freighters next year.
- Demand from multiple customers for others starting as late as 2025.
- ATSG has secured rights for 67 freighter conversion slots with induction dates starting in 2022 through the end of 2025.
- Addition of an A330 option will provide our leasing business with a third platform for growth, and complements the A321 freighter we will also introduce next year.
Challenges Ahead
- Assumes no incremental restrictions on passenger air travel, or on combi operations stemming from a recent resurgence in Covid-19 infections globally.
- Some combi routes ATI flies for the U.S. military will continue to be impacted through 2021.
- Ongoing Boeing 757 combi and passenger flying assignments have not yet fully recovered from the pandemic.
- ATSG expects further improvement in passenger and combi operations impacted by the pandemic.
- Will revisit full-year guidance when we report our third-quarter results in early November.
Revenue & Expenses
Visualization of income flow from segment revenue to net income