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Dec 31, 2023
ATSG Q4 2023 Earnings Report
Reported a decrease in revenue and earnings due to lower demand in the leasing segment and reduced demand in passenger airline operations.
Key Takeaways
ATSG reported a decrease in revenue and earnings for Q4 2023 due to lower demand in the leasing segment and reduced demand in passenger airline operations. Despite challenges, the company converted and leased thirteen aircraft, including its first three Airbus A321-200 freighters. They have also substantially reduced their capital spending plans, and now expect to generate positive cash flow in 2024.
Revenues decreased by 3% to $517 million.
GAAP Loss per Share (basic) from Continuing Operations decreased $0.82 to -$0.24.
Adjusted EPS decreased $0.35 to $0.18.
Adjusted EBITDA decreased 20% to $129.9 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 expects Adjusted EBITDA of approximately $506 million in 2024 and capital spending of $410 million.
Positive Outlook
- Four additional external dry leases of 767-300 freighters, two of which have already been delivered.
- New lease commitments for available aircraft.
- Opportunities for additional ACMI flying.
- Reduced spending outlook for 2024 greatly improves our cash generation expectations this year.
- Outlook for 2025 is for continued improvement in our cash flow based on an increase in Adjusted EBITDA and an even lower capex spend.
Challenges Ahead
- $55 million decline in earnings related to our 767-200 freighters versus 2023, due to fewer leased freighters and lower engine utilization.
- Three 767-300 freighters returned upon lease expiration, including two late in the second half.
- Lower block hours at our airline operations.
- Higher depreciation.
- Higher interest expense, and income taxes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income