November 6, 2014
ATSG reports strong third quarter results
Air Transport Services Group, the leading provider of medium wide-body aircraft leasing, air cargo transportation and related services, reported consolidated financial results for the quarter ended September 30, 2014. Pre-tax earnings from continuing operations increased 25% to US$15.6m driven by a US$7.0m improvement in airline profitability compared with a year ago. Net earnings from continuing operations increased 23% to US$9.6m, from US$7.8m in the third quarter of 2013. Operating loss carryforwards for U.S. federal income tax purposes offset much of the company’s federal tax liabilities. ATSG does not expect to pay significant federal income taxes until 2016 or later. Revenues were US$138.4m, 2% lower than a year ago. Excluding revenues from reimbursable expenses, revenues decreased US$4.8m. Loss of revenues from Mideast operations offset additional revenues from aircraft dry leases. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization, also adjusted for the effect of derivative transactions) increased by 11% to US$44.6m. ATSG also said it has reached an agreement in principle with DHL, setting a framework for multi-year commercial agreements covering 767 freighter leases and operating services that ATSG’s businesses currently provide in support of DHL’s U.S. network.