Air Transport Services Group, Inc. (Nasdaq: ATSG), a leading provider of
aircraft leasing, and air cargo transportation and related services,
today reported consolidated financial results for the quarter and year
ended December 31, 2013.
For the fourth quarter of 2013:
-
Revenues increased 2 percent to $157.0 million, compared with the
fourth quarter of 2012, attributable mainly to increased airline
operations for DHL in the U.S., and greater aircraft leasing revenues
than a year ago.
-
Results for the fourth quarter included a non-cash impairment charge
of $52.6 million, related to the write-off of goodwill associated with
ATSG’s 2007 purchase of Air Transport International.
-
Excluding the impairment charge, fourth-quarter adjusted earnings from
continuing operations were $9.7 million, or $0.15 per fully diluted
share, down from fourth-quarter 2012 earnings of $12.2 million, or
$0.19 per share. Including the impairment charge, ATSG’s loss from
continuing operations for the fourth quarter of 2013 was $42.8
million, or $0.67 per share.
-
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization, also adjusted for the impairment charges and derivative
gains) was $44.2 million, up 4 percent from the prior-year quarter.
Adjusted EBITDA increased in each of the last two quarters of 2013,
and totaled $157.5 million for the year, within the company’s
previously announced targeted range.
-
Higher interest rates and positive returns on pension assets resulted
in a reduction of $135.3 million in post-retirement pension
liabilities in 2013.
-
Stockholder’s equity increased to $369.0 million, or 23 percent from
December 31, 2012.
-
Adjusted earnings from continuing operations and adjusted EBITDA are
non-GAAP financial measures. Both are defined and reconciled to
comparable GAAP results in separate tables at the end of this release.
Joe Hete, President and Chief Executive Officer of ATSG, said, “Our
results for the fourth quarter demonstrate continued sequential progress
against our goals to improve our margins, allowing us to deliver the
EBITDA we projected for 2013 and increasing our free cash flow outlook
for 2014. We remain very focused on strengthening our airline businesses
and capitalizing on the emerging demand we are beginning to see by
placing more of our freighters into revenue service around the world.
Our strategic investment in West Atlantic, one of Europe’s largest
independent air cargo operators, is an important step toward that goal.”
ATSG’s cargo airline Air Transport International (ATI), completed its
military combi fleet upgrade, retired its remaining legacy DC-8
aircraft, and increased its operating block hours on a
sequential-quarter basis throughout 2013, but remained unprofitable
throughout the year. The recent termination of ATI’s support for DHL’s
Mideast network, and a continuing flat air cargo environment in
commercial markets here and abroad, resulted in a $52.6 million non-cash
charge against ATSG’s remaining ATI-related goodwill. ATSG continues to
work toward making ATI a lower-cost competitor for opportunities with
the major air cargo networks worldwide.
2013 revenues decreased 5 percent to $580 million compared with 2012,
due primarily to reduced international operations. A loss from
continuing operations of $19.6 million for the year, equal to $0.31 per
share, compares with earnings from continuing operations of $41.6
million, or $0.65 per share in 2012. Excluding the effects of the
impairment charge, ATSG’s adjusted earnings from continuing operations
for 2013 were $33.0 million, or $0.51 per share. Adjusted EBITDA
decreased 3 percent to $157.5 million.
Segment Results
CAM (Aircraft Leasing)
CAM
|
|
|
|
|
Fourth Quarter
|
|
Year
|
($ in thousands)
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
|
|
|
|
$
|
41,922
|
|
|
$
|
39,492
|
|
|
$
|
160,342
|
|
|
$
|
154,565
|
|
Pre-Tax Earnings
|
|
|
|
|
16,228
|
|
|
17,680
|
|
|
66,208
|
|
|
68,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant Developments:
-
Higher revenues for the fourth quarter and year were the result of
five more CAM-owned Boeing 757 and 767 aircraft in service in the
fourth quarter of 2013 than a year earlier. Lower pre-tax earnings
from leasing operations reflect higher depreciation on the aircraft
added, and fewer gains on sales of aircraft and engines than in the
fourth quarter of 2012.
-
At year-end 2013, ATSG owned 49 cargo aircraft in serviceable
condition - 20 leased to external customers and 29 leased to CAM’s
airline affiliates. A table reflecting cargo aircraft in service is
included at the end of this release.
-
The in-service fleet consisted of forty-two Boeing 767 freighters,
four Boeing 757 freighters, and three 757 combis (combined passenger
and main-deck cargo aircraft).
-
CAM’s sixth 767-300 freighter entered service during the fourth
quarter, and its two remaining DC-8 combis were retired at year-end.
-
One 767-300 freighter and one 757 combi were completing inspections
prior to deployment at year-end. The fourth 757 combi entered service
for the U.S. military in February, and a seventh 767-300 freighter
will enter service later this month. This marks the completion of the
company’s fleet upgrade to an all-Boeing 767 and 757 fleet.
ACMI Services
ACMI Services
|
|
|
|
|
Fourth Quarter
|
|
Year
|
($ in thousands)
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Airline services
|
|
|
|
|
$
|
100,399
|
|
|
$
|
103,587
|
|
|
$
|
376,592
|
|
|
$
|
404,053
|
|
Reimbursables
|
|
|
|
|
16,756
|
|
|
17,264
|
|
|
67,912
|
|
|
74,940
|
|
Total ACMI Services Revenues
|
|
|
|
|
117,155
|
|
|
120,851
|
|
|
444,504
|
|
|
478,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax Loss
|
|
|
|
|
(56,576
|
)
|
|
(2,960
|
)
|
|
(78,186
|
)
|
|
(14,503
|
)
|
Impairment Charge
|
|
|
|
|
52,585
|
|
|
—
|
|
|
52,585
|
|
|
—
|
|
Pre-Tax Loss Excluding Impairment Charge
|
|
|
|
|
(3,991
|
)
|
|
(2,960
|
)
|
|
(25,601
|
)
|
|
(14,503
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant Developments:
-
Fourth-quarter airline services revenues decreased $3 million to $100
million, compared with the fourth quarter last year. The segment’s
quarterly pre-tax loss excluding impairment charges increased to $4
million, from $3 million in 2012. International operations for major
air network operators, and results from ad hoc holiday season
operations in North America, were lower in 2013.
-
ATI’s fourth quarter operating loss, while larger than a year ago, was
smaller than in the third quarter of 2013 as its revenues increased
nearly 9 percent. Newer 757 combis served all of ATI’s combi routes to
remote U.S. military bases during the quarter, and ATI’s two remaining
DC-8 combis were retired. A fourth 757 combi entered service early
this year.
-
During the first quarter of 2014, DHL ended ACMI agreements for three
767 freighters that had supported its Mideast networks.
-
Since the third quarter of 2013, three 767 freighters have been
deployed on ACMI routes offsetting the loss of the Mideast business.
One for DHL connects Panama to DHL’s U.S. network, another operates
for a European airline on a transatlantic route, and the third serves
Caribbean routes for a Miami-based airline.
-
ABX Air’s ACMI and CMI support for DHL in the U.S. continued to
provide consistent revenues and earnings in the fourth quarter and
2013.
-
Overall, ACMI block hours decreased 6 percent during the fourth
quarter compared to the prior-year period, but increased 10 percent
from the third quarter.
Other Activities
Other Activities
|
|
|
|
|
Fourth Quarter
|
|
Year
|
($ in thousands)
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
|
|
|
|
$
|
34,050
|
|
|
$
|
30,467
|
|
|
$
|
117,292
|
|
|
$
|
112,343
|
|
Pre-Tax Earnings
|
|
|
|
|
3,012
|
|
|
3,048
|
|
|
12,200
|
|
|
11,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Revenues and earnings in the fourth quarter continued the positive
trend of the third quarter. Aircraft maintenance operations, and good
results from management of U.S. Postal Service sorting facilities,
were improved from the fourth quarter of 2012. Aircraft maintenance
capacity available to serve third-party customers is expected to
expand beginning in the second quarter of 2014 with completion of a
new hangar in Wilmington.
Outlook
ATSG projects, based on its current view of aircraft deployments, that
its Adjusted EBITDA for 2014 will be in a range of $165 to $170 million.
Hete said, “Air cargo markets continue to be characterized by changing
alliances and initiatives, challenging carriers to develop best-fits of
routes and networks with ideal aircraft types and service platforms. In
that kind of market, we believe that our more modern, all-767 and 757
fleet, our midsize-freighter focus, flexible deployment options ranging
from long-term dry leases to wet leases or short-term charter
operations, all with comprehensive maintenance and technical support,
are unique and compelling advantages. As trends shift toward smaller
twin-engine, multi-mission freighter types and specialty niche aircraft
like our combis, we think we are ideally positioned to benefit from
future commercial market growth while retaining a key role in the U.S.
military’s supplemental airlift programs.
“With our fleet growth and modernization program completed, business
process improvements continuing, and positive developments in our
pension plans, we expect to generate strong free cash flow during 2014,
and gain even greater flexibility to allocate our capital in ways that
provide optimal long-term benefits to our shareholders. We have five
currently underutilized Boeing 767s, and a sixth that becomes available
later this month, which when successfully deployed would significantly
improve our EBITDA above the projected range.”
Conference Call
ATSG will host a conference call on March 6, 2014, at 10:00 a.m. Eastern
time to review its financial results for the fourth quarter and full
year 2013. Participants should dial 888-895-5479 and international
participants should dial 847-619-6250 ten minutes before the scheduled
start of the call and ask for conference pass code 36742250. 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 March 6,
2014, beginning at 2:00 p.m. and continuing through March 13, 2014, at
(888) 843-7419 (international callers 630-652-3042); use pass code 36742250#.
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 two 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.; 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 level of
deployments of our aircraft, our operating airlines' ability to maintain
on-time service and control costs, 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,
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
REVENUES
|
|
|
|
|
$
|
156,963
|
|
|
$
|
154,552
|
|
|
$
|
580,023
|
|
|
$
|
607,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
|
48,612
|
|
|
48,817
|
|
|
175,383
|
|
|
184,644
|
|
Fuel
|
|
|
|
|
11,219
|
|
|
13,966
|
|
|
49,376
|
|
|
53,928
|
|
Maintenance, materials and repairs
|
|
|
|
|
25,270
|
|
|
22,405
|
|
|
97,053
|
|
|
97,540
|
|
Depreciation and amortization
|
|
|
|
|
25,672
|
|
|
21,606
|
|
|
91,749
|
|
|
84,477
|
|
Rent
|
|
|
|
|
6,940
|
|
|
7,251
|
|
|
27,468
|
|
|
25,970
|
|
Travel
|
|
|
|
|
4,785
|
|
|
5,521
|
|
|
18,693
|
|
|
22,683
|
|
Landing and ramp
|
|
|
|
|
2,940
|
|
|
4,150
|
|
|
11,204
|
|
|
15,973
|
|
Insurance
|
|
|
|
|
1,750
|
|
|
1,936
|
|
|
6,216
|
|
|
7,716
|
|
Impairment of goodwill
|
|
|
|
|
52,585
|
|
|
—
|
|
|
52,585
|
|
|
—
|
|
Other operating expenses
|
|
|
|
|
11,197
|
|
|
7,911
|
|
|
37,111
|
|
|
35,819
|
|
|
|
|
|
|
190,970
|
|
|
133,563
|
|
|
566,838
|
|
|
528,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS)
|
|
|
|
|
(34,007
|
)
|
|
20,989
|
|
|
13,185
|
|
|
78,688
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
18
|
|
|
32
|
|
|
74
|
|
|
136
|
|
Interest expense
|
|
|
|
|
(3,749
|
)
|
|
(3,497
|
)
|
|
(14,249
|
)
|
|
(14,383
|
)
|
Net gain on derivative instruments
|
|
|
|
|
206
|
|
|
923
|
|
|
631
|
|
|
1,879
|
|
|
|
|
|
|
(3,525
|
)
|
|
(2,542
|
)
|
|
(13,544
|
)
|
|
(12,368
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
|
|
|
(37,532
|
)
|
|
18,447
|
|
|
(359
|
)
|
|
66,320
|
|
INCOME TAX EXPENSE
|
|
|
|
|
(5,308
|
)
|
|
(6,236
|
)
|
|
(19,266
|
)
|
|
(24,672
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) FROM CONTINUING OPERATIONS
|
|
|
|
|
(42,840
|
)
|
|
12,211
|
|
|
(19,625
|
)
|
|
41,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX
|
|
|
|
|
(1
|
)
|
|
(198
|
)
|
|
(3
|
)
|
|
(774
|
)
|
NET EARNINGS (LOSS)
|
|
|
|
|
$
|
(42,841
|
)
|
|
$
|
12,013
|
|
|
$
|
(19,628
|
)
|
|
$
|
40,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER SHARE - Basic
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.19
|
|
|
$
|
(0.31
|
)
|
|
$
|
0.66
|
|
Discontinued operations
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02
|
)
|
NET EARNINGS (LOSS) PER SHARE
|
|
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.19
|
|
|
$
|
(0.31
|
)
|
|
$
|
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.19
|
|
|
$
|
(0.31
|
)
|
|
$
|
0.65
|
|
Discontinued operations
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02
|
)
|
NET EARNINGS (LOSS) PER SHARE
|
|
|
|
|
$
|
(0.67
|
)
|
|
$
|
0.19
|
|
|
$
|
(0.31
|
)
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
64,054
|
|
|
63,525
|
|
|
63,992
|
|
|
63,461
|
|
Diluted
|
|
|
|
|
64,054
|
|
|
64,244
|
|
|
63,992
|
|
|
64,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
31,699
|
|
|
$
|
15,442
|
|
Accounts receivable, net of allowance of $717 in 2013 and $749 in
2012
|
|
|
|
|
52,247
|
|
|
47,858
|
|
Inventory
|
|
|
|
|
9,050
|
|
|
9,430
|
|
Prepaid supplies and other
|
|
|
|
|
9,730
|
|
|
8,855
|
|
Deferred income taxes
|
|
|
|
|
13,957
|
|
|
19,154
|
|
Aircraft and engines held for sale
|
|
|
|
|
2,995
|
|
|
3,360
|
|
TOTAL CURRENT ASSETS
|
|
|
|
|
119,678
|
|
|
104,099
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
838,172
|
|
|
818,924
|
|
Other assets
|
|
|
|
|
21,143
|
|
|
20,462
|
|
Pension assets, net of obligations
|
|
|
|
|
14,855
|
|
|
—
|
|
Intangibles
|
|
|
|
|
4,896
|
|
|
5,146
|
|
Goodwill
|
|
|
|
|
34,395
|
|
|
86,980
|
|
TOTAL ASSETS
|
|
|
|
|
$
|
1,033,139
|
|
|
$
|
1,035,611
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
34,818
|
|
|
$
|
36,521
|
|
Accrued salaries, wages and benefits
|
|
|
|
|
23,163
|
|
|
22,917
|
|
Accrued expenses
|
|
|
|
|
9,695
|
|
|
8,502
|
|
Current portion of debt obligations
|
|
|
|
|
23,721
|
|
|
21,265
|
|
Unearned revenue
|
|
|
|
|
8,733
|
|
|
10,311
|
|
TOTAL CURRENT LIABILITIES
|
|
|
|
|
100,130
|
|
|
99,516
|
|
|
|
|
|
|
|
|
|
|
|
Long term debt
|
|
|
|
|
360,794
|
|
|
343,216
|
|
Post-retirement obligations
|
|
|
|
|
30,638
|
|
|
185,097
|
|
Other liabilities
|
|
|
|
|
62,740
|
|
|
62,104
|
|
Deferred income taxes
|
|
|
|
|
109,869
|
|
|
46,422
|
|
|
|
|
|
|
|
|
|
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; 64,618,305 and 64,130,056 shares issued and outstanding
in 2013 and 2012, respectively
|
|
|
|
|
646
|
|
|
641
|
|
Additional paid-in capital
|
|
|
|
|
524,953
|
|
|
523,087
|
|
Accumulated deficit
|
|
|
|
|
(126,813
|
)
|
|
(107,185
|
)
|
Accumulated other comprehensive loss
|
|
|
|
|
(29,818
|
)
|
|
(117,287
|
)
|
TOTAL STOCKHOLDERS’ EQUITY
|
|
|
|
|
368,968
|
|
|
299,256
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
$
|
1,033,139
|
|
|
$
|
1,035,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
CAM
|
|
|
|
|
$
|
41,922
|
|
|
$
|
39,492
|
|
|
$
|
160,342
|
|
|
$
|
154,565
|
|
ACMI Services
|
|
|
|
|
|
|
|
|
|
|
|
Airline services
|
|
|
|
|
100,399
|
|
|
103,587
|
|
|
376,592
|
|
|
404,053
|
|
Reimbursables
|
|
|
|
|
16,756
|
|
|
17,264
|
|
|
67,912
|
|
|
74,940
|
|
Total ACMI Services
|
|
|
|
|
117,155
|
|
|
120,851
|
|
|
444,504
|
|
|
478,993
|
|
Other Activities
|
|
|
|
|
34,050
|
|
|
30,467
|
|
|
117,292
|
|
|
112,343
|
|
Total Revenues
|
|
|
|
|
193,127
|
|
|
190,810
|
|
|
722,138
|
|
|
745,901
|
|
Eliminate internal revenues
|
|
|
|
|
(36,164
|
)
|
|
(36,258
|
)
|
|
(142,115
|
)
|
|
(138,463
|
)
|
Customer Revenues
|
|
|
|
|
$
|
156,963
|
|
|
$
|
154,552
|
|
|
$
|
580,023
|
|
|
$
|
607,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax Earnings (Loss) from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
CAM, inclusive of interest expense
|
|
|
|
|
16,228
|
|
|
17,680
|
|
|
66,208
|
|
|
68,499
|
|
ACMI Services
|
|
|
|
|
(3,991
|
)
|
|
(2,960
|
)
|
|
(25,601
|
)
|
|
(14,503
|
)
|
Other Activities
|
|
|
|
|
3,012
|
|
|
3,048
|
|
|
12,200
|
|
|
11,650
|
|
Goodwill impairment charge
|
|
|
|
|
(52,585
|
)
|
|
—
|
|
|
(52,585
|
)
|
|
—
|
|
Net, unallocated interest expense
|
|
|
|
|
(402
|
)
|
|
(244
|
)
|
|
(1,212
|
)
|
|
(1,205
|
)
|
Net gain on derivative instruments
|
|
|
|
|
206
|
|
|
923
|
|
|
631
|
|
|
1,879
|
|
Total Pre-tax Earnings (loss)
|
|
|
|
|
$
|
(37,532
|
)
|
|
$
|
18,447
|
|
|
$
|
(359
|
)
|
|
$
|
66,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Pre-tax Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Add goodwill impairment charge
|
|
|
|
|
52,585
|
|
|
—
|
|
|
52,585
|
|
|
—
|
|
Less net gain on derivative instruments
|
|
|
|
|
(206
|
)
|
|
(923
|
)
|
|
(631
|
)
|
|
(1,879
|
)
|
Adjusted Pre-tax Earnings
|
|
|
|
|
$
|
14,847
|
|
|
$
|
17,524
|
|
|
$
|
51,595
|
|
|
$
|
64,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Pre-tax Earnings is defined as Earnings (loss) from Continuing
Operations Before Income Taxes plus asset impairment charges, less
derivative gains. 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 (loss) 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,
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) from Continuing Operations Before Income Taxes
|
|
|
|
|
$
|
(37,532
|
)
|
|
$
|
18,447
|
|
|
$
|
(359
|
)
|
|
$
|
66,320
|
|
Interest Income
|
|
|
|
|
(18
|
)
|
|
(32
|
)
|
|
(74
|
)
|
|
(136
|
)
|
Interest Expense
|
|
|
|
|
3,749
|
|
|
3,497
|
|
|
14,249
|
|
|
14,383
|
|
Depreciation and Amortization
|
|
|
|
|
25,672
|
|
|
21,606
|
|
|
91,749
|
|
|
84,477
|
|
EBITDA from Continuing Operations
|
|
|
|
|
$
|
(8,129
|
)
|
|
$
|
43,518
|
|
|
$
|
105,565
|
|
|
$
|
165,044
|
|
Add goodwill impairment charge
|
|
|
|
|
52,585
|
|
|
—
|
|
|
52,585
|
|
|
—
|
|
Less net gain on derivative instruments
|
|
|
|
|
(206
|
)
|
|
(923
|
)
|
|
(631
|
)
|
|
(1,879
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA from Continuing Operations
|
|
|
|
|
$
|
44,250
|
|
|
$
|
42,595
|
|
|
$
|
157,519
|
|
|
$
|
163,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA from Continuing Operations are non-GAAP
financial measures and should not be considered as alternatives to
Earnings (loss) from Continuing Operations Before Income Taxes or any
other performance measure derived in accordance with GAAP.
EBITDA from Continuing Operations is defined as Earnings (loss) 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, less derivative gains.
Management uses EBITDA from Continuing Operations as an indicator of the
cash-generating performance of the operations of the Company. Management
uses Adjusted EBITDA from Continuing Operations to assess the
performance of its operating results among periods. EBITDA and Adjusted
EBITDA from Continuing Operations 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.
|
|
|
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES
UNAUDITED ADJUSTED EARNINGS
NON-GAAP RECONCILIATION
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
|
December 31, 2013
|
|
December 31, 2013
|
|
|
|
|
|
|
Per Share
|
|
|
|
Per Share
|
|
|
|
|
Earnings
|
|
Basic
|
|
Diluted
|
|
Earnings
|
|
Basic
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations
|
|
|
|
(42,840
|
)
|
|
$
|
(0.67
|
)
|
|
$
|
(0.67
|
)
|
|
(19,625
|
)
|
|
$
|
(0.31
|
)
|
|
$
|
(0.31
|
)
|
Effect of goodwill impairment charge
|
|
|
|
52,585
|
|
|
0.82
|
|
|
0.82
|
|
|
52,585
|
|
|
0.83
|
|
|
0.82
|
|
Adjusted earnings from continuing operations
|
|
|
|
9,745
|
|
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
32,960
|
|
|
$
|
0.52
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
|
|
|
|
|
|
64,054
|
|
|
65,004
|
|
|
|
|
63,992
|
|
|
64,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings and adjusted earnings per share from continuing
operations are a non-GAAP financial measures and should not be
considered as alternatives to earnings or earnings per share from
continuing operations or any other performance measure derived in
accordance with GAAP.
Adjusted earnings from continuing operations is defined as earnings
(loss) from continuing operations plus goodwill impairment charge. The
goodwill impairment charge is not deductible for income tax purposes.
Management uses adjusted earnings and adjusted earnings per share from
continuing operations to assess the performance of its operating
results. Adjusted earnings from continuing operations should not be
considered in isolation or as a substitute for analysis of the Company's
results as reported under GAAP.
|
|
|
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES
IN-SERVICE CARGO AIRCRAFT FLEET
|
|
Aircraft Types
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2012
|
|
2013
|
|
2014 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
|
|
|
|
|
7
|
|
5
|
|
2
|
|
8
|
|
6
|
|
2
|
|
9
|
|
7
|
|
2
|
B757-200
|
|
|
|
|
3
|
|
3
|
|
—
|
|
4
|
|
4
|
|
—
|
|
4
|
|
4
|
|
—
|
B757 Combi
|
|
|
|
|
—
|
|
—
|
|
—
|
|
3
|
|
3
|
|
—
|
|
4
|
|
4
|
|
—
|
DC-8 Combi
|
|
|
|
|
4
|
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total Aircraft In-Service
|
|
|
|
|
54
|
|
48
|
|
6
|
|
55
|
|
49
|
|
6
|
|
57
|
|
51
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned Aircraft In Serviceable Condition
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2012
|
|
2013
|
|
2014 Projected
|
ATSG airlines
|
|
|
|
|
|
|
28
|
|
|
|
|
|
29
|
|
|
|
|
|
24-30
|
|
|
External customers
|
|
|
|
|
|
|
20
|
|
|
|
|
|
20
|
|
|
|
|
|
21-27
|
|
|
|
|
|
|
|
|
|
48
|
|
|
|
|
|
49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copyright Business Wire 2014