Air Transport Services Group, the provider of medium wide-body aircraft leasing, air cargo transportation and related services, has reported first quarter revenues up by 34 percent to $237.9 million. Excluding revenues from reimbursable airline expenses, revenues increased 23 percent. Revenues from ATSG’s airline, maintenance, and logistics businesses increased significantly.
Earnings from Continuing Operations were $9.8 million, or $0.13 per share diluted, compared with $8.2 million, or $0.13 per diluted share a year earlier. These GAAP results include both dollar and share-related effects of warrants issued in March 2016 to Amazon Fulfillment Services, Inc. in connection with operating and lease agreements.
Adjusted Earnings from Continuing Operations, which exclude non-cash warrant-related adjustments, were $11.2 million, or $0.17 per diluted share, up 33 percent. Adjusted Earnings and other adjusted amounts referenced below are non-GAAP financial measures and reconciled to comparable GAAP results in tables at the end of this release.
Pre-tax earnings from continuing operations were $16.1 million, up 33 percent. Adjusted Pre-tax Earnings, which exclude the warrant effects along with additional non-cash items, increased 6 percent to $17.0 million.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased 11 percent to $57.0 million.
Capital expenditures were $83.8 million, up 17 percent. Share repurchases were $1.5 million, or 90 thousand ATSG shares for the quarter.
Joe Hete, President and Chief Executive Officer of ATSG, said, “Forty-three of our Boeing 767s were dry leased to external customers at the end of the first quarter, compared with 29 a year earlier. Our leasing business revenues from external customers increased 7 percent for the quarter, and we expect accelerating growth in that segment as the year progresses. That trend, plus improved profitability in our airline operations and good returns from our aircraft maintenance and logistics businesses, position us to deliver continued strong earnings and cash flow in the months ahead.”Date: May 4, 2017