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Dec 31, 2022
ATSG Q4 2022 Earnings Report
ATSG reported an increase in revenue and adjusted EBITDA, driven by growth in aircraft leasing and ACMI services, while projecting further growth in freighter deliveries.
Key Takeaways
ATSG reported record revenues for 2022, reaching $2.0 billion, and a 5% increase in Adjusted EBITDA to $641 million. The company projects record freighter deliveries in 2023 and 2024, with significant growth expected in Adjusted EBITDA.
Revenues increased by 11% to $533 million.
GAAP EPS (basic) from Continuing Operations decreased to $0.58.
Adjusted EBITDA increased by 5% to $163 million.
Adjusted EPS increased to $0.53, up $0.03.
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 expects its Adjusted EBITDA for 2023 to increase to a range of $650 million to $660 million. ATSG expects 2023 full year Adjusted EPS to decline to a range of $1.85 to $2.00, based on 2023 projections for higher interest expense and inflationary effects, as well as reduced ACMI Services operations.
Positive Outlook
- Dry leases of fourteen Boeing 767-300s, and six Airbus A321-200 freighters currently awaiting approval by the foreign regulatory agencies, which is anticipated by mid-year.
- CAM expects to remove from service three of the eight due to airframe cycle limitations, and utilize their engines to support other 767-200 lease customers.
- The remaining five aircraft will be sold or re-leased.
- A full year of contributions from seven 767-300 freighter aircraft that customers own or lease from other companies, and have assigned to our cargo airlines to operate during 2022, and the partial year contributions of three more 767-300 freighter aircraft to be added in 2023.
- Growth in e-commerce, particularly outside the U.S., is driving the growth of air express networks around the world.
Challenges Ahead
- Fewer operating block hours for ATSG airlines in 2023 versus 2022 for both our cargo and passenger operations.
- Workforce retention and training effects, principally at our airlines and in maintenance services.
- Leases for eight Boeing 767-200s are due to expire between May and September 2023.
- Higher interest expense
- Inflationary effects
Revenue & Expenses
Visualization of income flow from segment revenue to net income