ATSG Q4 2019 Earnings Report
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
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