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Jun 30, 2023
ATSG Q2 2023 Earnings Report
Reported a 4% increase in revenues, a decrease in GAAP EPS, and an Adjusted EBITDA comparable to the prior year, driven by a rebound in passenger airline operations and more Boeing 767-300 freighters in service.
Key Takeaways
ATSG reported a 4% increase in revenues to $529 million for Q2 2023. GAAP EPS decreased to $0.54, while Adjusted EPS was $0.57. The company's Adjusted EBITDA was $157 million, comparable to the prior year. ATSG projects record 2023 freighter lease deployments and increased its 2023 Adjusted EPS guidance.
Revenues increased by 4% to $529 million compared to the same quarter in 2022.
GAAP EPS (basic) from Continuing Operations decreased to $0.54, down from $0.73.
Adjusted EPS from Continuing Operations was $0.57, slightly down from $0.59.
Adjusted EBITDA was $157 million, comparable to the prior year.
ATSG
ATSG
Forward Guidance
ATSG continues to expect Adjusted EBITDA for 2023 to be in a range of $610 million to $620 million, and now expects full year Adjusted EPS in a range of $1.65 to $1.80. ATSG has decreased its capital spending projection for 2023 by $65 million to $785 million.
Positive Outlook
- Adjusted EBITDA for 2023 is expected to be in a range of $610 million to $620 million.
- Full year Adjusted EPS is now expected in a range of $1.65 to $1.80, ten cents higher than prior guidance.
- Capital spending projection for 2023 has been decreased by $65 million to $785 million.
- Solid July performance for both freighter leasing and passenger flying.
- Sequential improvement is expected each quarter in the second half of 2023.
Challenges Ahead
- The decrease in growth capex principally reflects two fewer A321 aircraft purchases this year for conversion in 2024.
- Lower sustaining capex reflects fewer than planned overhauls of engines for Boeing 767-200 freighters.
- Loss of certain long-haul ACMI flying between the U.S. and Europe versus 2022.
- Prior-year quarter included passenger hours flown for additional routes to Europe.
- Pre-tax earnings decreased 22% to $31 million versus the prior year quarter due to the scheduled return of ten 767-200s since June 2022.