Projects Improving Adjusted EBITDA Trend for 2013
Air Transport Services Group, Inc. (NASDAQ:ATSG), a leading provider of
air cargo transportation and related services to air carriers and other
companies, today reported financial results as follows:
-
Per-share net earnings from continuing operations of 19 cents in
fourth quarter, 65 cents in 2012;
-
Adjusted EBITDA* of $42.6 million in fourth quarter 2012 exceeded our
November 2012 guidance by 6 percent;
-
Adjusted EBITDA* Outlook: Baseline of $175 million to $180 million for
2013, with improving trend after first quarter, and an 8-10 percent
incremental growth opportunity above 2013 baseline under aircraft
deployment goals.
Fourth-quarter and full-year financial results for 2012, as compared
with 2011, are summarized below:
Summary GAAP Results
|
|
|
Quarter Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
(in millions, except per share amounts)
|
|
2012
|
|
2011
|
|
Chg.
|
|
2012
|
|
2011
|
|
Chg.
|
Revenues
|
|
$
|
154.6
|
|
$
|
166.5
|
|
$
|
(11.9
|
)
|
|
$
|
607.4
|
|
$
|
730.1
|
|
$
|
(122.7
|
)
|
Pre-tax Earnings from Continuing Operations
|
|
$
|
18.4
|
|
$
|
23.3
|
|
$
|
(4.9
|
)
|
|
$
|
66.3
|
|
$
|
40.9
|
|
$
|
25.4
|
|
Net Earnings (Loss) from Continuing Operations
|
|
$
|
12.2
|
|
$
|
13.5
|
|
$
|
(1.3
|
)
|
|
$
|
41.6
|
|
$
|
23.9
|
|
$
|
17.7
|
|
Earnings (Loss) Per Share from Continuing Operations
|
|
$
|
0.19
|
|
$
|
0.21
|
|
$
|
(0.02
|
)
|
|
$
|
0.65
|
|
$
|
0.37
|
|
$
|
0.28
|
|
Adjusted (non-GAAP) Results *
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues excluding Reimbursed Expenses
|
|
$
|
137.3
|
|
$
|
143.8
|
|
$
|
(6.5
|
)
|
|
$
|
532.5
|
|
$
|
569.5
|
|
$
|
(37.0
|
)
|
Adjusted Pre-tax Earnings from Continuing Operations
|
|
$
|
17.5
|
|
$
|
22.7
|
|
$
|
(5.2
|
)
|
|
$
|
64.4
|
|
$
|
75.8
|
|
$
|
(11.4
|
)
|
Adjusted EBITDA from Continuing Operations
|
|
$
|
42.6
|
|
$
|
48.1
|
|
$
|
(5.5
|
)
|
|
$
|
163.2
|
|
$
|
180.8
|
|
$
|
(17.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* More detailed financial results and changes in our aircraft fleet,
including a table defining and reconciling adjusted results to
comparable GAAP measures, are provided at the end of this release.
Joe Hete, President and CEO of ATSG, said, "We exceeded our target for
Adjusted EBITDA in the fourth quarter of 2012, and began 2013 with the
best aircraft fleet in our history, fewer capital commitments for our
cash flow, and a strong balance sheet. I am optimistic that we can grow
Adjusted EBITDA significantly this year from our current base of
business alone, and will do even better if we achieve our aircraft
deployment targets.”
In 2011, ATSG's results included revenues and earnings from D.B.
Schenker, a global logistics provider that ATSG had supported via a
dedicated air-cargo network. Pre-tax 2011 earnings included $27.1
million in third-quarter impairment charges stemming from the
termination of that network. ATSG had no Schenker-related revenues or
earnings in 2012.
Operating Results
Aircraft Leasing
Pre-tax fourth-quarter earnings for Cargo Aircraft Management (CAM) were
$17.7 million, up 6 percent from the year-earlier period. Revenues
increased 2 percent to $39.5 million.
At the end of 2012, CAM owned 48 aircraft in serviceable condition,
including 20 leased to external customers and 28 leased to its ATSG
airline affiliates. In the fourth quarter, CAM retired all of its DC-8
and Boeing 727 freighters, and completed modification of one 767-300
freighter.
In 2013, CAM expects to complete modification of one 757 freighter and
two 767-300 freighters. A previously modified 757 combi (combination
passenger/freighter) is completing certification testing. In December,
CAM agreed to purchase three additional 757 combis. The four 757 combis
will replace CAM's four DC-8 combi aircraft by mid-year, yielding an
ATSG fleet that will consist entirely of Boeing 757 and 767 aircraft.
The 757s and 767s are more fuel efficient and reliable than competing
freighter aircraft, share a common pilot type rating, and require only a
two-person flight crew. Standardization of the fleet, most of which has
been modified and modernized within the last five years, will reduce
ATSG's aggregate operating expenses and increase service reliability,
crew assignment flexibility, and maintenance efficiency. ATSG's aircraft
fleet at year-end 2011 and 2012, and its current outlook for aircraft in
service at the end of 2013, are summarized in the final table at the end
of this release.
ACMI Services
Fourth quarter revenues for ATSG's airline operations were $103.6
million, excluding fuel and other reimbursed expenses, down from $108.3
million in the fourth quarter of 2011. A fourth-quarter pre-tax loss of
$3.0 million was down from a $1.8 million pre-tax profit in the fourth
quarter of 2011.
As previously reported, D.B. Schenker's North American air freight
network agreements with ATSG ended in December 2011. The ACMI Services
segment results for the fourth quarter and all of 2012 primarily reflect
the loss of the Schenker business. Schenker's contribution to
fourth-quarter 2011 airline services revenues was $11.9 million
excluding reimbursed amounts, and $85.7 million for all of 2011.
As throughout 2012, delayed aircraft deployments affected fourth-quarter
operating results for ACMI Services. Significant new-business operations
did not commence when anticipated, leading to lower than expected
revenues.
By the end of the first quarter of 2013, ATSG expects to complete the
merger of Air Transport International (ATI) and Capital Cargo
International Airlines (CCIA), the airlines that had served Schenker. In
anticipation of that merger, some of their operations have moved to
Wilmington, Ohio, and their staffing levels have been reduced. The most
significant operating savings from the merger will occur in the second
half of 2013.
In the fourth quarter of 2012, a new two-year service award for combi
service for the U.S. military took effect. In December, ATSG agreed to
purchase three Boeing 757 combis, one in the fourth quarter and two in
the first quarter of 2013. All four 757 combis, including one 757 combi
acquired earlier and undergoing certification, are expected to enter
service at mid-year.
Significantly, ATSG announced last month the deployment of four Boeing
freighters, including one 757 and three 767s, into DHL's domestic
network. Those aircraft replace Boeing 727 freighters that were retired
at year-end. ATI also extended agreements for three 767s operating in
DHL's network in the Mideast.
Fourth-quarter ACMI block hours were down 5 percent overall from a year
ago, but increased 2 percent excluding block hours operated for Schenker
in the fourth quarter of 2011.
Other Activities
Fourth-quarter revenues from ATSG's other businesses increased 9
percent, to $30.5 million, before the elimination of inter-company
results. Pre-tax profit from other activities was $3.0 million, down 30
percent from the year-earlier quarter.
During the fourth quarter, ATSG announced an agreement with the Clinton
County (Ohio) Port Authority for the lease of a new 100,000-square-foot
hangar facility the port authority will construct at the Wilmington Air
Park. Airborne Maintenance & Engineering Services will lease the new
hangar on a long-term basis, expanding its ability to provide
maintenance, repair and overhaul services to both ATSG and third-party
aircraft, beginning in early 2014.
Outlook for 2013
ATSG projects that under current customer agreements and operating
levels, and with synergies from the merger of ATI and CCIA, it will
generate between $175 and $180 million in Adjusted EBITDA in 2013,
compared with $163 million in 2012. First-quarter 2013 EBITDA
year-over-year gains are expected to be consistent with the percentage
gain for 2013 as a whole. ATSG also projects that its Adjusted EBITDA
could increase an additional 8 to 10 percent from the 2013 baseline
range, assuming achievement of its aircraft deployment goals.
ATSG has no current plans to acquire aircraft in 2013 other than the
previously announced purchase of two Boeing 757 combis. As a result, we
expect capital spending to decline approximately $45 million from 2012,
to approximately $110 million in 2013.
Hete concluded, “The current market continues to complicate forecasting
the timing of aircraft deployments we are discussing with our customers.
However, if those programs move forward as current discussions would
indicate, 2013 could turn out to be a very good year for our
shareholders.”
Conference Call
ATSG will host a conference call on Thursday, February 28, 2013, at
10:00 a.m. Eastern time to review its financial results for the fourth
quarter of 2012. Participants should dial 888-895-5271 and international
participants should dial 847-619-6547 ten minutes before the scheduled
start of the call and ask for conference pass code 34302564. The call
will also be webcast live (listen-only mode) via www.atsginc.com
and www.earnings.com
for individual investors, and via www.streetevents.com
for institutional investors.
A replay of the conference call will be available by phone on Thursday,
February 28, 2013, beginning at 2:00 p.m. and continuing through
Thursday, March 7, 2013, at 888-843-7419 (international callers
630-652-3042); use pass code 34302564#. The webcast replay will remain
available via www.atsginc.com
and www.earnings.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, aircraft maintenance services
and airport ground services. ATSG's subsidiaries include ABX Air, Inc.;
Airborne Global Solutions, Inc.; Air Transport International, Inc; Cargo
Aircraft Management, Inc.; Capital Cargo International Airlines, Inc.;
and Airborne Maintenance and Engineering Services, Inc. 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. There are a number of important factors
that 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, the costs and
timing associated with the modification and certification testing of
Boeing 767 and Boeing 757 aircraft, the timing associated with the
deployment of aircraft among customers, ATSG's effectiveness in
restructuring its airline operations affected by D.B. Schenker's
restructuring of its U.S. air cargo operations, 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
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
REVENUES
|
|
$
|
154,552
|
|
|
$
|
166,465
|
|
|
$
|
607,438
|
|
|
$
|
730,133
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
48,817
|
|
|
48,338
|
|
|
184,644
|
|
|
188,884
|
|
Fuel
|
|
13,966
|
|
|
19,858
|
|
|
53,928
|
|
|
150,003
|
|
Maintenance, materials and repairs
|
|
22,405
|
|
|
19,503
|
|
|
97,540
|
|
|
86,929
|
|
Depreciation and amortization
|
|
21,606
|
|
|
22,198
|
|
|
84,477
|
|
|
91,063
|
|
Landing, ramp, rent and insurance
|
|
13,337
|
|
|
14,602
|
|
|
49,659
|
|
|
57,140
|
|
Travel
|
|
5,521
|
|
|
7,532
|
|
|
22,683
|
|
|
28,335
|
|
Other operating expenses
|
|
7,911
|
|
|
8,525
|
|
|
35,819
|
|
|
38,006
|
|
Impairment of aircraft, goodwill and acquired intangibles
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,144
|
|
|
|
133,563
|
|
|
140,556
|
|
|
528,750
|
|
|
667,504
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
20,989
|
|
|
25,909
|
|
|
78,688
|
|
|
62,629
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
Interest income
|
|
32
|
|
|
51
|
|
|
136
|
|
|
179
|
|
Interest expense
|
|
(3,497
|
)
|
|
(3,237
|
)
|
|
(14,383
|
)
|
|
(14,181
|
)
|
Unrealized gain/(loss) on derivative instruments
|
|
923
|
|
|
556
|
|
|
1,879
|
|
|
(4,881
|
)
|
Write off of unamortized debt issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,886
|
)
|
|
|
(2,542
|
)
|
|
(2,630
|
)
|
|
(12,368
|
)
|
|
(21,769
|
)
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
18,447
|
|
|
23,279
|
|
|
66,320
|
|
|
40,860
|
|
INCOME TAX EXPENSE
|
|
(6,236
|
)
|
|
(9,749
|
)
|
|
(24,672
|
)
|
|
(16,995
|
)
|
|
|
|
|
|
|
|
|
|
EARNINGS FROM CONTINUING OPERATIONS
|
|
12,211
|
|
|
13,530
|
|
|
41,648
|
|
|
23,865
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX
|
|
(198
|
)
|
|
(599
|
)
|
|
(774
|
)
|
|
(673
|
)
|
NET EARNINGS
|
|
$
|
12,013
|
|
|
$
|
12,931
|
|
|
$
|
40,874
|
|
|
$
|
23,192
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - Basic
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.19
|
|
|
$
|
0.21
|
|
|
$
|
0.66
|
|
|
$
|
0.38
|
|
Discontinued operations
|
|
—
|
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
NET EARNINGS PER SHARE
|
|
$
|
0.19
|
|
|
$
|
0.20
|
|
|
$
|
0.64
|
|
|
$
|
0.37
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.19
|
|
|
$
|
0.21
|
|
|
$
|
0.65
|
|
|
$
|
0.37
|
|
Discontinued operations
|
|
—
|
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
NET EARNINGS PER SHARE
|
|
$
|
0.19
|
|
|
$
|
0.20
|
|
|
$
|
0.63
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES
|
|
|
|
|
|
|
|
|
Basic
|
|
63,525
|
|
|
63,336
|
|
|
63,461
|
|
|
63,284
|
|
Diluted
|
|
64,244
|
|
|
64,109
|
|
|
64,420
|
|
|
64,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
ASSETS
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
15,442
|
|
|
$
|
30,503
|
|
Accounts receivable, net of allowance of $749 in 2012 and $434 in
2011
|
|
47,858
|
|
|
42,278
|
|
Inventory
|
|
9,430
|
|
|
8,906
|
|
Prepaid supplies and other
|
|
8,855
|
|
|
9,785
|
|
Deferred income taxes
|
|
19,154
|
|
|
31,548
|
|
Aircraft and engines held for sale
|
|
3,360
|
|
|
9,831
|
|
TOTAL CURRENT ASSETS
|
|
104,099
|
|
|
132,851
|
|
|
|
|
|
|
Property and equipment, net
|
|
818,924
|
|
|
748,913
|
|
Other assets
|
|
20,462
|
|
|
18,579
|
|
Intangibles
|
|
5,146
|
|
|
6,396
|
|
Goodwill
|
|
86,980
|
|
|
86,980
|
|
TOTAL ASSETS
|
|
$
|
1,035,611
|
|
|
$
|
993,719
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
Accounts payable
|
|
$
|
36,521
|
|
|
$
|
48,360
|
|
Accrued salaries, wages and benefits
|
|
22,917
|
|
|
23,226
|
|
Accrued expenses
|
|
8,502
|
|
|
10,291
|
|
Current portion of debt obligations
|
|
21,265
|
|
|
13,223
|
|
Unearned revenue
|
|
10,311
|
|
|
12,487
|
|
TOTAL CURRENT LIABILITIES
|
|
99,516
|
|
|
107,587
|
|
|
|
|
|
|
|
|
Long term debt obligations
|
|
343,216
|
|
|
333,681
|
|
Post-retirement liabilities
|
|
185,097
|
|
|
185,562
|
|
Other liabilities
|
|
62,104
|
|
|
54,212
|
|
Deferred income taxes
|
|
46,422
|
|
|
42,530
|
|
|
|
|
|
|
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; 75,000,000 shares
authorized; 64,130,056 and 64,015,789 shares issued and outstanding
in 2012 and 2011, respectively
|
|
641
|
|
|
640
|
|
Additional paid-in capital
|
|
523,087
|
|
|
520,613
|
|
Accumulated deficit
|
|
(107,185
|
)
|
|
(148,059
|
)
|
Accumulated other comprehensive loss
|
|
(117,287
|
)
|
|
(103,047
|
)
|
TOTAL STOCKHOLDERS’ EQUITY
|
|
299,256
|
|
|
270,147
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
1,035,611
|
|
|
$
|
993,719
|
|
|
|
|
|
|
|
|
|
|
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES PRE-TAX
EARNINGS AND ADJUSTED PRE-TAX EARNINGS SUMMARY FROM
CONTINUING OPERATIONS NON-GAAP RECONCILIATION (In
thousands)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Revenues
|
|
|
|
|
|
|
|
|
CAM Leasing
|
|
$
|
39,492
|
|
|
$
|
38,534
|
|
|
$
|
154,565
|
|
|
$
|
140,469
|
|
ACMI Services
|
|
|
|
|
|
|
|
|
Airline services
|
|
103,587
|
|
|
108,342
|
|
|
404,053
|
|
|
444,778
|
|
Reimbursables
|
|
17,264
|
|
|
22,669
|
|
|
74,940
|
|
|
160,683
|
|
Total ACMI Services
|
|
120,851
|
|
|
131,011
|
|
|
478,993
|
|
|
605,461
|
|
Other Activities
|
|
30,467
|
|
|
28,042
|
|
|
112,343
|
|
|
105,284
|
|
Total Revenues
|
|
190,810
|
|
|
197,587
|
|
|
745,901
|
|
|
851,214
|
|
Eliminate internal revenues
|
|
(36,258
|
)
|
|
(31,122
|
)
|
|
(138,463
|
)
|
|
(121,081
|
)
|
Customer Revenues
|
|
$
|
154,552
|
|
|
$
|
166,465
|
|
|
$
|
607,438
|
|
|
$
|
730,133
|
|
|
|
|
|
|
|
|
|
|
Pre-tax Earnings (Loss) from Continuing Operations
|
|
|
|
|
|
|
|
|
CAM, inclusive of interest expense
|
|
17,680
|
|
|
16,726
|
|
|
68,499
|
|
|
59,982
|
|
ACMI Services
|
|
(2,960
|
)
|
|
1,768
|
|
|
(14,503
|
)
|
|
6,576
|
|
Asset impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,144
|
)
|
Other Activities
|
|
3,048
|
|
|
4,330
|
|
|
11,650
|
|
|
11,331
|
|
Net, unallocated interest expense
|
|
(244
|
)
|
|
(101
|
)
|
|
(1,205
|
)
|
|
(2,118
|
)
|
Net gain (loss) on derivative instruments
|
|
923
|
|
|
556
|
|
|
1,879
|
|
|
(4,881
|
)
|
Write off of unamortized debt issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,886
|
)
|
Total Pre-tax Earnings
|
|
$
|
18,447
|
|
|
$
|
23,279
|
|
|
$
|
66,320
|
|
|
$
|
40,860
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Pre-tax Earnings
|
|
|
|
|
|
|
|
|
Add Asset impairment charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,144
|
|
Less Net (Gain) Loss on derivative instruments
|
|
(923
|
)
|
|
(556
|
)
|
|
(1,879
|
)
|
|
4,881
|
|
Add Write-off of unamortized debt issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,886
|
|
Adjusted Pre-tax Earnings
|
|
$
|
17,524
|
|
|
$
|
22,723
|
|
|
$
|
64,441
|
|
|
$
|
75,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: During the first half of 2011, the Company refinanced its
long-term debt, recorded charges to write-off unamortized debt
origination costs associated with terminated credit agreements and
recognized losses for certain interest rate swaps which had been
designated as hedges of the previous debt. Reimbursable revenues include
certain operating costs that are reimbursed to the airlines by their
customers. Such costs include fuel used, landing fees and certain
aircraft maintenance expenses. The decline in reimbursable revenues
during 2012 compared to 2011 reflects the discontinuation of D.B.
Schenker's air network in the fourth quarter of 2011.
Adjusted Pre-tax Earnings is defined as Earnings from Continuing
Operations Before Income Taxes plus derivative losses, less derivative
gains, plus the write-off related to the termination of certain credit
agreements in conjunction with the refinancing of the Company's debt.
Management uses Adjusted Pre-tax Earnings from Continuing Operations to
assess the performance of its operating results among periods. Adjusted
Pre-tax earnings from Continuing Operations is a non-GAAP financial
measure and 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 UNAUDITED
ADJUSTED EARNINGS FROM CONTINUING OPERATIONS BEFORE INTEREST,
TAXES, DEPRECIATION AND AMORTIZATION NON-GAAP RECONCILIATION (In
thousands)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
Earnings from Continuing Operations Before Income Taxes
|
|
$
|
18,447
|
|
|
$
|
23,279
|
|
|
$
|
66,320
|
|
|
$
|
40,860
|
|
Interest Income
|
|
(32
|
)
|
|
(51
|
)
|
|
(136
|
)
|
|
(179
|
)
|
Interest Expense
|
|
3,497
|
|
|
3,237
|
|
|
14,383
|
|
|
14,181
|
|
Depreciation and Amortization
|
|
21,606
|
|
|
22,198
|
|
|
84,477
|
|
|
91,063
|
|
EBITDA from Continuing Operations
|
|
$
|
43,518
|
|
|
$
|
48,663
|
|
|
$
|
165,044
|
|
|
$
|
145,925
|
|
Add Asset impairment charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,144
|
|
Less Net (Gain) Loss on derivative instruments
|
|
(923
|
)
|
|
(556
|
)
|
|
(1,879
|
)
|
|
4,881
|
|
Add Write-off of unamortized debt issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,886
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA from Continuing Operations
|
|
$
|
42,595
|
|
|
$
|
48,107
|
|
|
$
|
163,165
|
|
|
$
|
180,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA from Continuing Operations are non-GAAP
financial measures and should not be considered as alternatives to
Earnings from Continuing Operations Before Income Taxes or any other
performance measure derived in accordance with GAAP.
EBITDA from Continuing Operations is defined as Earnings from Continuing
Operations Before Income Taxes plus net interest expense, depreciation,
and amortization expense. Adjusted EBITDA from Continuing Operations is
defined as EBITDA from Continuing Operations plus asset impairment
charges, plus net derivative losses, less derivative gains, plus the
write-off related to the termination of certain credit agreements in
conjunction with the refinancing of the Company's debt.
Management uses EBITDA from Continuing Operations as an indicator of the
cash-generating performance of the operations of the Company. Management
uses Adjusted EBITDA and Adjusted Pre-tax Earnings from Continuing
Operations to assess the performance of its operating results among
periods. EBITDA and Adjusted EBITDA from Continuing Operations, and
Adjusted Pre-tax Earnings should not be considered in isolation or as a
substitute for analysis of the Company's results as reported under GAAP,
or as an alternative measure of liquidity.
Note: A reconciliation of the forward-looking Adjusted EBITDA
projections presented in the text of this release is not provided,
because of the number of variables in our projected GAAP financial
components.
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES IN-SERVICE
AIRCRAFT FLEET
|
|
Aircraft Types
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
2011
|
|
2012
|
|
2013 Projected
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
Operating
|
|
|
|
|
|
Operating
|
|
|
Total
|
|
Owned
|
|
Lease
|
|
Total
|
|
Owned
|
|
Lease
|
|
Total
|
|
Owned
|
|
Lease
|
B767-200
|
|
40
|
|
36
|
|
4
|
|
40
|
|
36
|
|
4
|
|
40
|
|
36
|
|
4
|
B767-300
|
|
3
|
|
2
|
|
1
|
|
7
|
|
5
|
|
2
|
|
9
|
|
7
|
|
2
|
B757-200
|
|
3
|
|
3
|
|
—
|
|
3
|
|
3
|
|
—
|
|
4
|
|
4
|
|
—
|
B757 Combi
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4
|
|
4
|
|
—
|
DC-8
|
|
3
|
|
3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
DC-8 Combi
|
|
4
|
|
4
|
|
—
|
|
4
|
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
B727-200
|
|
4
|
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total Aircraft In-Service
|
|
57
|
|
52
|
|
5
|
|
54
|
|
48
|
|
6
|
|
57
|
|
51
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned Aircraft In Serviceable Condition
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
2011
|
|
2012
|
|
2013 Projected
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATSG airlines
|
|
|
|
31
|
|
|
|
|
|
28
|
|
|
|
|
|
30-32
|
|
|
External customers
|
|
|
|
21
|
|
|
|
|
|
20
|
|
|
|
|
|
19-21
|
|
|
|
|
|
|
52
|
|
|
|
|
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|