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Sep 30, 2020
ATSG Q3 2020 Earnings Report
Reported continued growth and raised adjusted EBITDA guidance for 2020.
Key Takeaways
ATSG's third quarter results showed a 10% increase in customer revenues, reaching $404.1 million. Adjusted Earnings from Continuing Operations rose 48% to $31.8 million, and Adjusted EBITDA from Continuing Operations increased 15% to $125.5 million. The company also raised its Adjusted EBITDA guidance for 2020 to $490 million.
Customer revenues increased by 10% to $404.1 million.
Adjusted Earnings from Continuing Operations rose 48% to $31.8 million.
Adjusted Earnings Per Share (non-GAAP) were $0.44 diluted, up from $0.31 in 2019.
Adjusted EBITDA from Continuing Operations increased 15% to $125.5 million.
Revenue by Segment
Forward Guidance
ATSG expects Adjusted EBITDA for 2020 to be approximately $490 million. The company anticipates another record year for cargo aircraft leasing in 2021 and projects 2021 capital expenditures to be in the range of $425 million.
Positive Outlook
- Aircraft leasing demand is exceptionally strong.
- Long-term outlook remains very bright.
- Expect another record year for cargo aircraft leasing in 2021.
- Order book calls for at least fifteen more 767 freighters to be modified and dry-leased.
- Demand from Omni’s commercial passenger charter customers may resume in early 2021.
Challenges Ahead
- Pandemic’s effects on the global economy and on commercial and military passenger operations remain difficult to predict.
- Pandemic impacts during the fourth quarter.
- Effects on the global economy.
- Commercial passenger operations are down.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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