ATSG Q3 2021 Earnings Report
Key Takeaways
Air Transport Services Group (ATSG) reported record customer revenues of $466.0 million, up 15 percent compared to the third quarter of 2020. GAAP EPS from continuing operations was $0.85, and adjusted EBITDA reached a record $153.0 million, a 22 percent increase. The company increased its full-year Adjusted EBITDA outlook to at least $535 million.
Record customer revenues increased by 15 percent to $466.0 million.
GAAP EPS from Continuing Operations was $0.85, compared to a loss of $0.10 in the previous year.
Adjusted EPS increased by 46 percent to $0.60.
Record Adjusted EBITDA increased by 22 percent to $153.0 million.
ATSG
ATSG
ATSG Revenue by Segment
Forward Guidance
ATSG expects full-year Adjusted EBITDA for 2021 to be at least $535 million. The forecast assumes new leases and re-leases of freighter aircraft, continued growth in express-network flying, and continued pandemic effects on passenger and combi aircraft services.
Positive Outlook
- New leases for fifteen 767-300 and re-leases of four 767-200 freighter aircraft.
- Continuing growth in express-network flying in 2021, with fourteen additional 767 freighters operated by ATSG's airlines.
- ATSG's airlines expect to operate forty-six 767 freighters for Amazon by the end of the year.
- Strong global demand for midsize freighters, like ATSG’s 767s, continues.
- ATSG's business model perfectly positions them to enable the growth in e-commerce expedited shipping.
Challenges Ahead
- One freighter previously scheduled for 2021 will now be delivered next year, due to supply chain disruptions.
- Continued pandemic effects on demand for ATSG’s passenger and combi aircraft services through 2021.
- Logistics network constraints could impact the ability to assist customers with additional ACMI and charter services.
- Passenger and combi operations are expected to have results similar to those achieved in the fourth quarter of 2020.
- Potential unforeseen additional assignments could negatively impact passenger and combi operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income