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Jun 30, 2022

ATSG Q2 2022 Earnings Report

Reported strong financial results driven by freighter leasing and ACMI services.

Key Takeaways

ATSG reported a strong second quarter with a 24% increase in revenues to $510 million. The company's adjusted EBITDA increased by 23% to $158 million, driven by growth in freighter leasing and ACMI services.

Revenues increased by 24% to $510 million.

GAAP Earnings were $54 million, or $0.73 per share basic.

Adjusted Earnings Per Share were $0.59, versus $0.35 a year ago.

Adjusted EBITDA increased by 23% to $158 million.

Total Revenue
$510M
Previous year: $410M
+24.3%
EPS
$0.59
Previous year: $0.35
+68.6%
Adjusted EBITDA
$158M
Previous year: $128M
+23.6%
Gross Profit
$122M
Previous year: $82.7M
+47.2%
Cash and Equivalents
$47.2M
Free Cash Flow
-$61.4M
Previous year: $7.94M
-873.9%
Total Assets
$3.46B
Previous year: $3.21B
+7.7%

ATSG

ATSG

ATSG Revenue by Segment

Forward Guidance

ATSG continues to project a record $640 million in Adjusted EBITDA for 2022, up nearly $100 million from 2021.

Positive Outlook

  • Addition of ten dry leases of converted freighters for the year, including eight 767-300s and two A321-200 aircraft.
  • Seven more 767 freighters that our airlines will operate under CMI arrangements that the aircraft’s owners or lessees have assigned to our airlines.
  • Mitigation of some inflation-driven cost increases in ACMI Services and rate increases for military passenger operations beginning in the fourth quarter.
  • Full restoration of ATI’s global combi service to all remote U.S. military facilities it served before the pandemic, including a major route scheduled to resume in the fourth quarter.
  • E-commerce shopping habits will continue to drive express-package delivery networks.

Challenges Ahead

  • Persistent inflation.
  • Higher labor costs.
  • Increases in interest rates.
  • Potential economic recession.
  • Downturns in customer business cycles.

Revenue & Expenses

Visualization of income flow from segment revenue to net income