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Dec 31, 2019
ATSG Q4 2019 Earnings Report
Reported record results with double-digit percentage growth in revenues, adjusted earnings, and adjusted EBITDA.
Key Takeaways
ATSG reported a 44% increase in customer revenues to $403.4 million for Q4 2019. GAAP Earnings from Continuing Operations was a loss of $41.1 million, or $0.70 per share basic. Adjusted Earnings from Continuing Operations (non-GAAP) rose 73 percent, to $39.0 million. Adjusted EBITDA from Continuing Operations (non-GAAP) increased 29 percent, or $28.1 million, to $124.3 million.
Customer revenues increased by 44% to $403.4 million.
GAAP Earnings from Continuing Operations was a loss of $41.1 million, or $0.70 per share basic.
Adjusted Earnings from Continuing Operations (non-GAAP) rose 73 percent, to $39.0 million.
Adjusted EBITDA from Continuing Operations (non-GAAP) increased 29 percent, or $28.1 million, to $124.3 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 currently projects that its Adjusted EBITDA will increase to a range of $487 to 492 million in 2020 from $452 million in 2019.
Positive Outlook
- Commitments to lease nine more 767 freighters, four of which they would operate for Amazon, and three they will lease to United Parcel Service.
- Continued improvement overall from airlines including revenue growth from more leased aircraft and additional flying for Amazon driven by their one-day delivery commitments
- Growth in operations for our military and other government customers.
- Demand for Boeing 767 freighters remains very strong.
- Ongoing discussions with existing and new customers indicate significant interest in freighter deployments for 2021
Challenges Ahead
- Some of those new 2020 leases of 767-300s may replace existing leases of other 767-200s.
- DHL does not intend to renew ACMI agreements expiring in March for the 757-200 freighters we have operated for them.
- Working hard to redeploy or otherwise realize value for all of those transitioning aircraft.
- 2020 capital expenditures, principally to purchase and modify Boeing 767 aircraft for freighter deployment, are now projected to be approximately $420 million, down about $30 million from 2019.
- Expects adjusted effective tax rate for the full year 2020 to be 24 percent, after excluding the impact of warrant re-measurements and amortizations of aircraft lease incentives.
Revenue & Expenses
Visualization of income flow from segment revenue to net income