ATSG Reports Third Quarter 2019 Results

Continued Double-Digit Percentage Growth in Revenues, Adjusted Earnings and Adjusted EBITDA

WILMINGTON, Ohio–(BUSINESS WIRE)–Air Transport Services Group, Inc. (Nasdaq: ATSG), the leading provider of medium wide-body aircraft leasing, contracted air transportation and related services, today reported consolidated financial results for the quarter and nine months ended September 30, 2019. Results as compared with the third quarter of 2018 include:

  • Customer revenues were $366.1 million, up $161.2 million, or 79 percent.

Both of ATSG’s principal business segments, aircraft leasing and air transport, reported higher revenues for the third quarter. Revenues from Omni Air International, which ATSG acquired in November 2018, were the largest contributor to the year-over-year revenue gain.

  • GAAP Earnings from Continuing Operations were $105.1 million, up $72.2 million, or 219 percent. GAAP Earnings per Share basic were $1.78, versus $0.56 a year ago.

The unrealized effect of re-measurement of financial instrument values increased ATSG’s third quarter 2019 after-tax earnings by $90.8 million, and third-quarter 2018 after-tax earnings by $17.2 million. The majority of the earnings gain related to a non-cash change in the value of warrants issued to Amazon.com, Inc. related to a decrease in ATSG’s share price during the third quarter 2019. Increases in interest expense, depreciation and amortization expense, and in retiree benefit costs were also significant factors.

  • Adjusted Earnings from Continuing Operations (non-GAAP) increased by $2.0 million, or 10 percent, to $21.4 million. Adjusted Earnings Per Share (non-GAAP) were $0.31 diluted, up $0.03.

Adjusted Earnings from Continuing Operations and Adjusted EPS exclude elements from GAAP results that in management’s opinion differ distinctly in predictability among periods or are not closely related to operations. Adjustments from GAAP include financial instrument revaluations, amortization of aircraft lease incentives, retiree benefit costs, and losses of non-consolidated ATSG affiliates.

  • Adjusted EBITDA from Continuing Operations (non-GAAP) were $109.2 million, up $35.0 million, or 47 percent.

Contributions from Omni Air, and from the increase in externally leased 767 freighters since September 2018, drove the majority of the increase in Adjusted EBITDA.

Adjusted Earnings per Share, Adjusted Earnings from Continuing Operations and Adjusted EBITDA from Continuing Operations are non-GAAP financial measures and are defined in the non-GAAP reconciliation tables at the end of this release. (See the paragraph entitled “Non-GAAP Financial Measures”)

  • Capital spending for the first nine months was $336.9 million, up 57 percent.

Capital expenditures in the first nine months of 2019 included $247.9 million for the purchase of nine Boeing 767 aircraft, including two in the third quarter, and for freighter modification costs.

Joe Hete, Chief Executive Officer of ATSG, said, “Demand for our aircraft and flight operations continued to accelerate in the third quarter, pointing toward a strong peak period of non-payload-sensitive flying for our air express network customers as we deploy more 767 freighters. Flight operations for the U.S. Department of Defense and passenger charter customers were also strong.”

Segment Results

Cargo Aircraft Management (CAM)

CAM

 

Third Quarter

 

 

Nine Months

 

($ in thousands)

 

2019

 

2018

 

 

2019

 

2018

 

Aircraft leasing and related revenues

 

$

75,160

 

 

$

63,012

 

 

 

$

223,017

 

 

$

178,217

 

 

Lease incentive amortization

 

(4,156

)

 

(4,226

)

 

 

(12,407

)

 

(12,678

)

 

Total CAM revenues

 

71,004

 

 

58,786

 

 

 

210,610

 

 

165,539

 

 

Allocated interest expense

 

9,494

 

 

4,681

 

 

 

28,838

 

 

13,675

 

 

Segment earnings, pretax

 

17,428

 

 

19,034

 

 

 

50,285

 

 

49,892

 

 

Significant Developments:

  • CAM’s third quarter revenues, net of warrant-related lease incentives, increased 21 percent versus the prior year. Third quarter revenues benefited from seventeen more aircraft in service at September 30, 2019, versus the same date a year ago, and a full nine months of revenues from eleven Omni Air passenger aircraft that CAM acquired and leased back to Omni Air in November 2018. CAM’s external customer revenues increased two percent to $42.0 million during the third quarter.
  • At September 30, 2019, ATSG’s in-service fleet of CAM-owned aircraft included ninety aircraft, comprising seventy-eight cargo and twelve passenger aircraft. Fifty-eight cargo aircraft were leased to external customers, four more than were leased as of the same date last year, and two more than on June 30, 2019.
  • CAM leased three 767-300 freighters to Amazon during the third quarter, including two newly converted aircraft and one previously leased to ATI. Six additional 767 freighters are scheduled for deployment during the fourth quarter, two to Amazon and four to United Parcel Service (“UPS”). The first of those UPS placements occurred in October.
  • Ten 767s were undergoing conversion or awaiting deployment as freighters at September 30, including two 767s acquired during the third quarter. CAM purchased nine 767s during 2019.
  • CAM’s pretax earnings for the quarter were $17.4 million, down $1.6 million from the prior-year’s third quarter but up $0.7 million from this year’s second quarter. Earnings reflected $4.8 million more in quarterly allocated interest expense and $7.7 million more for depreciation expense, due to both organic and acquired fleet growth, versus the year-ago quarter. Also impacting CAM’s results was the timing of new aircraft lease deliveries and transitioning of aircraft between lessees during the quarter.

ACMI Services

ACMI Services

 

Third Quarter

 

 

Nine Months

 

($ in thousands)

 

2019

 

2018

 

 

2019

 

2018

 

Revenues

 

$

272,188

 

 

$

116,224

 

 

 

$

785,082

 

 

$

355,204

 

 

Allocated interest expense

 

6,530

 

 

402

 

 

 

19,520

 

 

1,419

 

 

Segment earnings, pretax

 

4,375

 

 

(341

)

 

 

17,658

 

 

3,574

 

 

Significant Developments:

  • Revenues for ACMI Services again more than doubled from the prior-year period, stemming mainly from Omni Air’s operations for the Department of Defense since ATSG acquired Omni in November 2018. Also contributing to the increase were higher operations for Amazon and ACMI flights for UPS.
  • Pretax earnings for the quarter were $4.4 million versus a year-earlier loss of $0.3 million, and more than four times the amount earned in the second quarter this year, primarily due to contributions from Omni Air. Earnings were adversely affected by previously forecast ramp-up costs for expanded flight operations in the second half. Interest expense allocated to ACMI Services for the third quarter increased $6.1 million, primarily related to debt associated with the Omni Air acquisition.
  • Total block hours increased 56 percent for the quarter and 37 percent through the first nine months of 2019, principally due to the contribution from Omni Air’s ACMI and charter operations and growth in flight operations for Amazon.

Other Activities

Other

 

Third Quarter

 

 

Nine Months

 

($ in thousands)

 

2019

 

2018

 

 

2019

 

2018

 

Total Revenues

 

$

87,762

 

 

$

69,477

 

 

 

$

226,228

 

 

$

206,736

 

 

Revenues from external customers

 

$

51,895

 

 

$

47,344

 

 

 

$

140,270

 

 

$

141,124

 

 

Pretax Earnings

 

2,939

 

 

3,051

 

 

 

8,848

 

 

9,808

 

 

Significant Developments:

  • Total third-quarter revenues from other activities of $87.8 million increased by $18.3 million, or 26 percent, due to growth in maintenance services for ATSG affiliate airlines and ground services for external customers. Revenues from external customers increased $4.6 million versus the prior-year period, driven by additional revenue for ground services and fuel sales offset by the termination of sort-facility management services for the U.S. Postal Service in the third quarter of 2018.
  • Pretax earnings were flat for the third quarter. The loss of business with the U.S. Postal Service offset higher earnings from gateway services from other customers.

Outlook

ATSG continues to project that its Adjusted EBITDA will increase to $450 million in 2019 from $312 million in 2018.

Peak-season flight schedules for ATSG’s scheduled express-package services will be higher in the fourth quarter than previously forecast, largely due to strong e-commerce demand. As a result, costs to prepare for and support that demand will be greater than previously anticipated. Additionally, fourth-quarter aircraft lease revenues may be impacted by the timing of lease start-ups and transitioning delays.

2019 capital expenditures, principally to purchase and modify Boeing 767 aircraft for freighter deployment, are now projected to be approximately $460 million, down from $475 million previously projected. Five 767-300s are expected to be in or awaiting cargo conversion at year-end 2019.

We anticipate ten lease deployments in 2020, including commitments of four to Amazon and one to UPS. The demand for Boeing 767 freighters remains very strong and ATSG is negotiating with multiple customers seeking to lease the remaining aircraft. Goals for 2020 also include mid-year approval of our application for a Supplemental Type Certificate for our Airbus A321 passenger-to-freighter conversion program.

Hete noted that ATSG expects to continue investing in 767 aircraft in the near term, based on known and anticipated requirements of customers relying even more on air express networks to speed fulfillment, and those customers’ preference for ATSG’s customized turnkey solutions and superior service performance.

“While trade and tariff issues have impacted the general cargo market,” he said, “demand for our mid-size freighters remains very strong, driven by the expansion of regional air express networks and growth in e-commerce. Looking forward, the aircraft and other investments we are making will drive even higher cash flows into an already strong cash-generating business. We expect lower capital expenditures in the next few years with decreasing debt leverage and full availability of capital allocation options to increase shareholder returns.”

Separately today, the company announced an amendment to its senior secured credit facility which, among other changes, lengthened the term of the agreement and lowered pricing of its term loan and revolver debt. A news release describing the facility changes is available on our website, atsginc.com.

Non-GAAP Financial Measures

This release, including the attached tables, contains non-GAAP financial measures that management uses to evaluate historical results and project future results. Management believes that these non-GAAP measures assist in highlighting operational trends, facilitate period-over-period comparisons, and provide additional clarity about events and trends affecting core operating performance. Disclosing these non-GAAP measures provides insight to investors about additional metrics that management uses to evaluate past performance and prospects for future performance. Non-GAAP measures are not a substitute for GAAP. The historical non-GAAP financial measures included in this release are reconciled to GAAP earnings in tables included later in this release. The Company does not provide a reconciliation of projected Adjusted EBITDA because it is unable to predict with reasonable accuracy the value of certain adjustments. Certain adjustments can be significantly impacted by the re-measurements of financial instruments including stock warrants issued to customers. The Company’s earnings on a GAAP basis and the non-GAAP adjustments for gain and losses resulting from the re-measurement of stock warrants, will depend on the future prices of ATSG stock, interest rates and other assumptions which are highly uncertain.

Conference Call

ATSG will host a conference call on November 7, 2019, at 10 a.m. Eastern time to review its financial results for the third quarter of 2019. Participants should dial (800) 708-4539 and international participants should dial (847) 619-6397 ten minutes before the scheduled start of the call and ask for conference pass code 49148053. The call will also be webcast live (in listen-only mode) via a link at www.atsginc.com. A replay of the conference call will be available by phone on November 7, 2019, beginning at 2 p.m. and continuing through November 14, 2019, at (888) 843-7419 (international callers (630) 652-3042; use pass code 49148053#). The webcast replay will remain available via www.atsginc.com for 30 days.

About ATSG

ATSG is a leading provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. ATSG, through its leasing and airline subsidiaries, is the world’s largest owner and operator of converted Boeing 767 freighter aircraft. Through its principal subsidiaries, including three airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, passenger ACMI and charter services, aircraft maintenance services and airport ground services. ATSG’s subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Airborne Maintenance and Engineering Services, Inc., including its subsidiary, Pemco World Air Services, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; and Omni Air International, LLC. For more information, please see www.atsginc.com.

Except for historical information contained herein, the matters discussed in this release contain forward-looking statements that involve risks and uncertainties. A number of important factors could cause Air Transport Services Group’s (ATSG’s) actual results to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, changes in market demand for our assets and services; our operating airlines’ ability to maintain on-time service and control costs; the cost and timing with respect to which we are able to purchase and modify aircraft to a cargo configuration; fluctuations in ATSG’s traded share price, which may result in mark-to-market charges on certain financial instruments; the number, timing and scheduled routes of our aircraft deployments to customers; our ability to remain in compliance with our agreements with key customers and lenders; changes in general economic and/or industry specific conditions; changes in our capital expenditure plans and requirements; and other factors that are contained from time to time in ATSG’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should carefully review this release and should not place undue reliance on ATSG’s forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this release. ATSG undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share data)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2019

 

2018

 

2019

 

2018

REVENUES

$

366,073

 

 

$

204,919

 

 

$

1,048,832

 

 

$

611,566

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

Salaries, wages and benefits

110,706

 

 

71,341

 

 

307,897

 

 

216,173

 

Depreciation and amortization

64,149

 

 

43,201

 

 

190,052

 

 

124,825

 

Maintenance, materials and repairs

41,496

 

 

33,469

 

 

125,501

 

 

107,152

 

Fuel

41,193

 

 

5,981

 

 

110,311

 

 

17,682

 

Contracted ground and aviation services

17,190

 

 

2,636

 

 

47,319

 

 

7,464

 

Travel

25,366

 

 

6,903

 

 

66,401

 

 

20,823

 

Landing and ramp

2,539

 

 

1,211

 

 

7,978

 

 

3,670

 

Rent

4,123

 

 

3,274

 

 

11,860

 

 

10,264

 

Insurance

1,833

 

 

1,696

 

 

5,601

 

 

4,473

 

Transaction fees

 

 

 

 

373

 

 

 

Other operating expenses

16,712

 

 

8,380

 

 

50,763

 

 

20,672

 

 

325,307

 

 

178,092

 

 

924,056

 

 

533,198

 

 

 

 

 

 

 

 

 

OPERATING INCOME

40,766

 

 

26,827

 

 

124,776

 

 

78,368

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

Net gain on financial instruments

91,952

 

 

17,895

 

 

60,566

 

 

28,707

 

Interest expense

(16,712

)

 

(5,608

)

 

(50,906

)

 

(16,336

)

Non-service component of retiree benefit (costs) credits

(2,351

)

 

2,045

 

 

(7,053

)

 

6,135

 

Loss from non-consolidated affiliates

(2,645

)

 

(2,647

)

 

(12,459

)

 

(7,600

)

Interest income

78

 

 

67

 

 

255

 

 

144

 

 

70,322

 

 

11,752

 

 

(9,597

)

 

11,050

 

 

 

 

 

 

 

 

 

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

111,088

 

 

38,579

 

 

115,179

 

 

89,418

 

INCOME TAX EXPENSE

(6,003

)

 

(5,646

)

 

(14,092

)

 

(16,339

)

 

 

 

 

 

 

 

 

EARNINGS FROM CONTINUING OPERATIONS

105,085

 

 

32,933

 

 

101,087

 

 

73,079

 

 

 

 

 

 

 

 

 

EARNINGS FROM DISCONTINUED OPERATIONS, NET OF TAX

243

 

 

170

 

 

305

 

 

536

 

NET EARNINGS

$

105,328

 

 

$

33,103

 

 

$

101,392

 

 

$

73,615

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE – CONTINUING OPERATIONS

 

 

 

 

 

 

 

Basic

$

1.78

 

 

$

0.56

 

 

$

1.72

 

 

$

1.24

 

Diluted

$

0.19

 

 

$

0.24

 

 

$

0.43

 

 

$

0.71

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES – CONTINUING OPERATIONS

 

 

 

 

 

 

 

Basic

58,919

 

 

58,739

 

 

58,889

 

 

58,773

 

Diluted

68,718

 

 

68,323

 

 

69,382

 

 

68,629

 

Certain historical expenses have been reclassified to conform to the presentation above.

AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

 

September 30,

 

December 31,

 

2019

 

2018

ASSETS

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

46,833

 

 

$

59,322

 

Accounts receivable, net of allowance of $2,793 in 2019 and $1,444 in 2018

135,907

 

 

147,755

 

Inventory

32,776

 

 

33,536

 

Prepaid supplies and other

18,018

 

 

18,608

 

TOTAL CURRENT ASSETS

233,534

 

 

259,221

 

 

 

 

 

Property and equipment, net

1,707,332

 

 

1,555,005

 

Customer incentive

151,271

 

 

63,780

 

Goodwill and acquired intangibles

530,512

 

 

535,359

 

Operating lease assets

54,473

 

 

 

Other assets

67,711

 

 

57,220

 

TOTAL ASSETS

$

2,744,833

 

 

$

2,470,585

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

Accounts payable

$

132,508

 

 

$

109,843

 

Accrued salaries, wages and benefits

50,080

 

 

50,932

 

Accrued expenses

15,656

 

 

19,623

 

Current portion of debt obligations

43,451

 

 

29,654

 

Current portion of lease obligations

14,794

 

 

 

Unearned revenue

20,153

 

 

19,082

 

TOTAL CURRENT LIABILITIES

276,642

 

 

229,134

 

Long term debt

1,408,086

 

 

1,371,598

 

Stock warrant obligations

308,074

 

 

203,782

 

Post-retirement obligations

54,066

 

 

64,485

 

Long term lease obligations

38,541

 

 

 

Other liabilities

53,410

 

 

51,905

 

Deferred income taxes

125,018

 

 

113,243

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

Preferred stock, 20,000,000 shares authorized, including 75,000 Series A Junior Participating Preferred Stock

 

 

 

Common stock, par value $0.01 per share; 150,000,000 shares authorized; 59,368,570 and 59,134,173 shares issued and outstanding in 2019 and 2018, respectively

594

 

 

591

 

Additional paid-in capital

474,915

 

 

471,158

 

Retained earnings

86,085

 

 

56,051

 

Accumulated other comprehensive loss

(80,598

)

 

(91,362

)

TOTAL STOCKHOLDERS’ EQUITY

480,996

 

 

436,438

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

2,744,833

 

 

$

2,470,585

 

AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES

PRETAX EARNINGS AND ADJUSTED PRETAX EARNINGS SUMMARY

FROM CONTINUING OPERATIONS

NON-GAAP RECONCILIATION

(In thousands)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2019

 

2018

 

2019

 

2018

Revenues

 

 

 

 

 

 

 

CAM

 

 

 

 

 

 

 

Aircraft leasing and related revenues

$

75,160

 

 

$

63,012

 

 

$

223,017

 

 

$

178,217

 

Lease incentive amortization

(4,156

)

 

(4,226

)

 

(12,407

)

 

(12,678

)

Total CAM

71,004

 

 

58,786

 

 

210,610

 

 

165,539

 

ACMI Services

272,188

 

 

116,224

 

 

785,082

 

 

355,204

 

Other Activities

87,762

 

 

69,477

 

 

226,228

 

 

206,736

 

Total Revenues

430,954

 

 

244,487

 

 

1,221,920

 

 

727,479

 

Eliminate internal revenues

(64,881

)

 

(39,568

)

 

(173,088

)

 

(115,913

)

Customer Revenues

$

366,073

 

 

$

204,919

 

 

$

1,048,832

 

 

$

611,566

 

 

 

 

 

 

 

 

 

Pretax Earnings (Loss) from Continuing Operations

 

 

 

 

 

 

CAM, inclusive of interest expense

17,428

 

 

19,034

 

 

50,285

 

 

49,892

 

ACMI Services, inclusive of interest expense

4,375

 

 

(341

)

 

17,658

 

 

3,574

 

Other Activities

2,939

 

 

3,051

 

 

8,848

 

 

9,808

 

Net, unallocated interest expense

(610

)

 

(458

)

 

(2,293

)

 

(1,098

)

Net gain on financial instruments

91,952

 

 

17,895

 

 

60,566

 

 

28,707

 

Other non-service components of retiree benefit (costs) credits, net

(2,351

)

 

2,045

 

 

(7,053

)

 

6,135

 

Transaction fees

 

 

 

 

(373

)

 

 

Non-consolidated affiliates

(2,645

)

 

(2,647

)

 

(12,459

)

 

(7,600

)

Earnings from Continuing Operations before Income Taxes (GAAP)

$

111,088

 

 

$

38,579

 

 

$

115,179

 

 

$

89,418

 

 

 

 

 

 

 

 

 

Adjustments to Pretax Earnings

 

 

 

 

 

 

Add non-service components of retiree benefit costs (credits), net

2,351

 

 

(2,045

)

 

7,053

 

 

(6,135

)

Add loss from non-consolidated affiliates

2,645

 

 

2,647

 

 

12,459

 

 

7,600

 

Add transaction fees

 

 

 

 

373

 

 

 

Add customer incentive amortization

4,334

 

 

4,226

 

 

12,585

 

 

12,678

 

Add net gain on financial instruments

(91,952

)

 

(17,895

)

 

(60,566

)

 

(28,707

)

Adjusted Pretax Earnings (non-GAAP)

$

28,466

 

 

$

25,512

 

 

$

87,083

 

 

$

74,854

 

Adjusted Pretax Earnings excludes certain items included in GAAP based pretax earnings (loss) from continuing operations because they are distinctly different in their predictability among periods or not closely related to our operations. Presenting this measure provides investors with a comparative metric of fundamental operations, while highlighting changes to certain items among periods. Adjusted Pretax Earnings should not be considered an alternative to Earnings from Continuing Operations Before Income Taxes or any other performance measure derived in accordance with GAAP.

AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES

ADJUSTED EARNINGS FROM CONTINUING OPERATIONS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION

NON-GAAP RECONCILIATION

(In thousands)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

Earnings (loss) from Continuing Operations Before Income Taxes

$

111,088

 

 

$

38,579

 

 

$

115,179

 

 

$

89,418

 

Interest Income

(78

)

 

(67

)

 

(255

)

 

(144

)

Interest Expense

16,712

 

 

5,608

 

 

50,906

 

 

16,336

 

Depreciation and Amortization

64,149

 

 

43,201

 

 

190,052

 

 

124,825

 

EBITDA from Continuing Operations (non-GAAP)

$

191,871

 

 

$

87,321

 

 

$

355,882

 

 

$

230,435

 

Add non-service components of retiree benefit costs (credits), net

2,351

 

 

(2,045

)

 

7,053

 

 

(6,135

)

Add losses for non-consolidated affiliates

2,645

 

 

2,647

 

 

12,459

 

 

7,600

 

Add acquisition related transaction fees

 

 

 

 

373

 

 

 

Add customer incentive amortization

4,334

 

 

4,226

 

 

12,585

 

 

12,678

 

Add net (gain) loss on financial instruments

(91,952

)

 

(17,895

)

 

(60,566

)

 

(28,707

)

Adjusted EBITDA (non-GAAP)

$

109,249

 

 

$

74,254

 

 

$

327,786

 

 

$

215,871

 

Management uses Adjusted EBITDA to assess the performance of its operating results among periods. It is a metric that facilitates the comparison of financial results of underlying operations. Additionally, these non-GAAP adjustments are similar to the adjustments used by lenders in the Company’s senior secured credit facility to assess financial performance and determine the cost of borrowed funds. The adjustments also exclude the non-service cost components of retiree benefit plans because they are not closely related to ongoing operating activities.

Contacts

Quint Turner, ATSG Inc. Chief Financial Officer

937-366-2303

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Author: dmnnewswire