Network-Driven Demand Expected to Generate More Growth in 2016
Air Transport Services Group, Inc. (Nasdaq: ATSG), the leading provider
of medium wide-body aircraft leasing, air cargo transportation and
related services, today reported consolidated financial results for the
quarter and full year ended December 31, 2015.
For the fourth quarter of 2015 and for full year 2015, compared with
prior-year amounts:
-
Revenues increased 15 percent to $181.6 million for the
quarter, and were up 5 percent to $619.3 million for the year.
Excluding revenues from reimbursable airline expenses, revenues
increased 11 percent for the quarter and 6 percent for the year.
Revenues for Cargo Aircraft Management, ATSG's aircraft leasing
business, grew 7 percent year-over-year.
-
Pre-tax earnings from continuing operations increased $9.4 million
to $20.5 million for the quarter and to $62.6 million for 2015.
Excluding the effect of 2014 pension settlement charges, and
derivative transactions in each year, Adjusted Pre-tax Earnings
increased 13 percent for the quarter and 7 percent for 2015. This and
other adjusted amounts referenced below are non-GAAP financial
measures. They are defined and reconciled to comparable GAAP results
in tables at the end of this release.
-
Net earnings from continuing operations were 21 cents per share
diluted, or $13.3 million, for the fourth quarter, and $0.60 per
share, or $39.2 million for the year. Those earnings increased 23
percent for the quarter and 8 percent for the year, excluding the 2014
pension settlement charges. Operating loss carryforwards for U.S.
federal income tax purposes offset much of the company’s federal tax
liabilities. Because of increasing tax depreciation on its aircraft
growth investments, ATSG now does not expect to pay significant
federal income taxes until 2019 at the earliest.
-
Record Adjusted EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization) for the fourth quarter and year.
Fourth-quarter Adjusted EBITDA increased by 12 percent to $56.8
million. 2015 Adjusted EBITDA grew by 10 percent to $198.2 million.
Adjusted EBITDA is a non-GAAP financial measure, defined and
reconciled to comparable GAAP results in separate tables at the end of
this release.
-
Record operating cash flow for 2015 at $173.7 million. The 17
percent increase from 2014 stemmed largely from higher income and
faster payments from customers. 2015 capital expenditures were $159
million, cash debt repayments in excess of borrowings were $24
million, and share repurchases were $10 million.
Joe Hete, President and Chief Executive Officer of ATSG, said, “2015 was
an outstanding year for ATSG, as our principal midsize freighter leasing
and operating businesses made great strides toward expanding and
extending customer relationships into new markets, all while generating
record cash flow on $30 million in revenue growth. During the year, we
also strengthened our balance sheet and repurchased 1 million of our
common shares.
"Continued strong demand for our freighters in 2015 grew our externally
leased portfolio of Boeing 767 aircraft by six to 30 aircraft at
year-end, and our airlines finished the year with an exceptional
holiday-season performance, with our fleet fully deployed," Hete added.
"Demand in our midsize freighter market niche remains strong. We expect
to maintain our focus on customer service and invest aggressively to
capture and expand our growth opportunities, while maintaining our
commitment to maximize shareholder returns.”
As noted above, GAAP net earnings for 2014 included a one-time
settlement option offered to certain beneficiaries of qualified pension
plans in December 2014, which led to pre-tax non-cash charges of $6.7
million to continuing operations and $5.0 million to discontinued
operations in the fourth quarter of 2014. The pension settlements will
reduce future pension obligations and expense volatility.
2015 Business Developments
ATSG completed several significant strategic and operating agreements
that added value in 2015 or will deliver significant returns over the
next several years. Those agreements and achievements include:
-
DHL relationship amendments effective in April that led to a
doubling of our forward lease-months with DHL, and extend operating
terms through March 2019. Our DHL-leased fleet has expanded from 13 in
March 2015 to 17 in February 2016, including five 767-300 freighters,
and we have more opportunities to deliver ATSG solutions for DHL’s
global network, including two 767s now operating in DHL's Mideast
network.
-
New customer relationships including 767 deployments with Raya
Airways in Asia, and deployments with West Atlantic in Europe, in
which we are an investor and where three of our 767s now operate.
-
Fleet expansion through four more Boeing 767-300s purchased in
2015. Three of them are already deployed with dry-lease customers and
the fourth is due in April. Three will have eight-year lease terms.
-
Pathway into the China market formed through a joint
venture for a Tianjin-based regional air cargo network due to launch
in the second half this year. We expect to benefit from the venture's
reliance on our midsize freighter expertise as it pursues network
opportunities throughout southeast Asia.
-
U.S. trial air operation launched in September 2015, now
with five dedicated 767 freighters and logistical support,
achieved its performance objectives through the holiday season. Under
automatic extension provisions, it now runs at least to mid-May this
year.
-
Multi-year heavy maintenance agreement with Delta Air Lines for
its fleet of more than 80 Boeing 717 passenger aircraft began in
October, validating both the 2014 expansion of our hangar capacity in
Wilmington and our decades of experience servicing similar DC-9
airframes.
Segment Results
Cargo Aircraft Management (CAM)
CAM
|
|
|
Fourth Quarter
|
|
|
Year
|
($ in thousands)
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Revenues
|
|
|
$
|
46,729
|
|
|
|
$
|
44,852
|
|
|
|
$
|
177,789
|
|
|
|
$
|
166,303
|
Pre-Tax Earnings
|
|
|
15,096
|
|
|
|
14,478
|
|
|
|
57,457
|
|
|
|
53,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant Developments:
-
CAM’s $1.9 million increase in fourth-quarter revenue came via growth
with external customers. External revenues were $25.2 million for the
quarter and $93.4 million for the year. Externally leased freighters
increased to 30 from 24 during 2015.
-
Pre-tax earnings increased $0.6 million for the quarter and $4.3
million for 2015. Increased lease revenues offset increases in
depreciation and fleet transition costs.
-
At December 31, 2015, CAM owned 57 Boeing cargo aircraft, 55 of which
were in serviceable condition, including 47 767s, four 757-200
freighters and four 757-200 combi aircraft. CAM purchased four 767-300
aircraft in 2015, one in each quarter. Two were in service by
year-end, and two were being modified from passenger to freighter
configuration.
-
One of the two 767s in mod at year-end was placed in service with DHL
in February. The other is due to enter service with an existing
customer in April. Both will be leased for eight-year terms.
ACMI Services
ACMI Services
|
|
|
Fourth Quarter
|
|
|
Year
|
($ in thousands)
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Airline services
|
|
|
$
|
106,262
|
|
|
|
$
|
107,334
|
|
|
|
$
|
395,486
|
|
|
|
$
|
399,376
|
|
Reimbursables
|
|
|
17,569
|
|
|
|
9,832
|
|
|
|
37,623
|
|
|
|
40,543
|
|
Total ACMI Services Revenues
|
|
|
123,831
|
|
|
|
117,166
|
|
|
|
433,109
|
|
|
|
439,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax Earnings (Loss) Excluding Charges
|
|
|
3,705
|
|
|
|
1,482
|
|
|
|
(2,654
|
)
|
|
|
(5,381
|
)
|
Less Pension Settlement Charge
|
|
|
—
|
|
|
|
(6,700
|
)
|
|
|
—
|
|
|
|
(6,700
|
)
|
Pre-Tax Earnings (Loss)
|
|
|
3,705
|
|
|
|
(5,218
|
)
|
|
|
(2,654
|
)
|
|
|
(12,081
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant Developments:
-
Airline services revenues were down slightly in the fourth quarter,
compared to the prior year period. Expanded ACMI operations in the
fourth quarter of 2015 did not entirely offset reductions in revenues
from fewer aircraft in ACMI service than a year ago, and from changes
in revenues under new operating agreements with DHL effective in April
2015. Airline services revenues grew on a consecutive-quarter basis
from the third quarter, as all available aircraft were fully deployed
in the fourth quarter.
-
Pre-tax profitability improved sharply for the quarter and year.
Principal factors were better utilization rates for a smaller ACMI
fleet in 2015, including a 7 percent increase in block hours for the
fourth quarter. Expenses increased for heavy and line maintenance, and
flight crews, due to higher fleet utilization rates.
Other Activities
Other Activities
|
|
|
Fourth Quarter
|
|
|
Year
|
($ in thousands)
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Revenues
|
|
|
$
|
55,812
|
|
|
|
$
|
36,938
|
|
|
|
$
|
161,995
|
|
|
|
$
|
142,294
|
Pre-Tax Earnings
|
|
|
1,568
|
|
|
|
2,228
|
|
|
|
8,561
|
|
|
|
11,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant Developments:
-
External customer revenues from all other activities in the fourth
quarter were $32.6 million, up 66 percent in the fourth quarter, and
$93.9 million, up 30 percent for the year. Revenues increased from
aircraft maintenance services, including a new agreement for airframe
heavy maintenance with Delta Air Lines, and from postal center
management and logistics services. Pre-tax earnings for 2015 reflects
improved earnings from maintenance operations and logistics services,
offset by a smaller actuarial credit in 2015 from prior-year changes
in employee benefit plans.
Outlook
ATSG currently expects to provide an outlook for its Adjusted EBITDA
from Continuing Operations for 2016 and anticipated aircraft deployments
during its investor conference call at 10 a.m. Eastern time on March 9,
2016. Arrangements for accessing that call are referenced below.
ATSG currently projects 2016 capital expenditures of approximately $280
million, of which $205 million is related to fleet expansion, and the
remainder is to maintain ATSG's current fleet and acquire other
equipment. The 2016 fleet expansion spending will include costs to
complete modification of two 767-300 aircraft purchased in 2015 for
deployment in February and April this year. It will also include the
purchase, modification and deployment of four more 767-300s in 2016,
three of which have been acquired this year. One aircraft is undergoing
modification for expected deployment in the third quarter, and three
more are projected to complete modification and enter service by the end
of 2016.
"ATSG's business model, and therefore its business outlook, is
significantly different from others in the more global trade-sensitive
portion of the air-cargo industry," Hete said. "Our model emphasizes dry
leasing of efficient midsize freighters for long-term deployment in
express and other regional networks. That means we are driven more by
increasing global competition among manufacturers and retailers to
provide best-in-class connections within their distribution networks,
and to their end customers. We intend to remain the leading independent
source of dedicated aircraft and service solutions to this expanding
market segment, and will deploy capital as necessary to grow our
position, while also continuing to allocate capital to share
repurchases."
Conference Call
ATSG will host a conference call on March 9, 2016, at 10:00 a.m. Eastern
time to review its financial results for the fourth quarter of 2015.
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 41923029. The call will
also be webcast live (listen-only mode) via www.atsginc.com.
A replay of the conference call will be available by phone on March 9,
2016, beginning at 2:00 p.m. and continuing through March 16, 2016, at
(888) 843-7419 (international callers (630) 652-3042); use pass code 41923029#.
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 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; 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; the number and timing of deployments
and redeployments of our aircraft to customers; the ability and
timeliness with which the Tianjin-based joint venture is able to secure
the necessary approvals from the People’s Republic of China and execute
its business plan; the completion of anticipated commercial arrangements
with new and existing customers, 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,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
REVENUES
|
|
$
|
181,581
|
|
|
$
|
157,938
|
|
|
$
|
619,264
|
|
|
$
|
589,592
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
54,446
|
|
|
43,470
|
|
|
181,785
|
|
|
166,526
|
|
Depreciation and amortization
|
|
34,296
|
|
|
29,826
|
|
|
125,443
|
|
|
108,254
|
|
Maintenance, materials and repairs
|
|
24,703
|
|
|
26,399
|
|
|
96,044
|
|
|
91,528
|
|
Fuel
|
|
17,533
|
|
|
13,188
|
|
|
52,615
|
|
|
53,521
|
|
Rent
|
|
2,777
|
|
|
5,727
|
|
|
11,677
|
|
|
26,650
|
|
Travel
|
|
5,253
|
|
|
4,481
|
|
|
18,007
|
|
|
17,662
|
|
Landing and ramp
|
|
2,745
|
|
|
2,541
|
|
|
9,727
|
|
|
10,305
|
|
Insurance
|
|
1,009
|
|
|
1,417
|
|
|
3,645
|
|
|
5,304
|
|
Pension settlement
|
|
—
|
|
|
6,700
|
|
|
—
|
|
|
6,700
|
|
Other operating expenses
|
|
16,269
|
|
|
9,904
|
|
|
47,531
|
|
|
38,617
|
|
|
|
159,031
|
|
|
143,653
|
|
|
546,474
|
|
|
525,067
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
22,550
|
|
|
14,285
|
|
|
72,790
|
|
|
64,525
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
Interest income
|
|
21
|
|
|
26
|
|
|
85
|
|
|
92
|
|
Interest expense
|
|
(2,644
|
)
|
|
(3,324
|
)
|
|
(11,232
|
)
|
|
(13,937
|
)
|
Net gain on derivative instruments
|
|
573
|
|
|
127
|
|
|
920
|
|
|
1,096
|
|
|
|
(2,050
|
)
|
|
(3,171
|
)
|
|
(10,227
|
)
|
|
(12,749
|
)
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
20,500
|
|
|
11,114
|
|
|
62,563
|
|
|
51,776
|
|
INCOME TAX EXPENSE
|
|
(7,157
|
)
|
|
(4,455
|
)
|
|
(23,408
|
)
|
|
(19,702
|
)
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) FROM CONTINUING OPERATIONS
|
|
13,343
|
|
|
6,659
|
|
|
39,155
|
|
|
32,074
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
|
|
1,425
|
|
|
(2,948
|
)
|
|
2,067
|
|
|
(2,214
|
)
|
NET EARNINGS (LOSS)
|
|
$
|
14,768
|
|
|
$
|
3,711
|
|
|
$
|
41,222
|
|
|
$
|
29,860
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER SHARE - Basic
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.21
|
|
|
$
|
0.10
|
|
|
$
|
0.61
|
|
|
$
|
0.50
|
|
Discontinued operations
|
|
0.02
|
|
|
(0.04
|
)
|
|
0.03
|
|
|
(0.04
|
)
|
NET EARNINGS (LOSS) PER SHARE
|
|
$
|
0.23
|
|
|
$
|
0.06
|
|
|
$
|
0.64
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER SHARE - Diluted
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.21
|
|
|
$
|
0.10
|
|
|
$
|
0.60
|
|
|
$
|
0.49
|
|
Discontinued operations
|
|
0.02
|
|
|
(0.04
|
)
|
|
0.03
|
|
|
(0.03
|
)
|
NET EARNINGS (LOSS) PER SHARE
|
|
$
|
0.23
|
|
|
$
|
0.06
|
|
|
$
|
0.63
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES
|
|
|
|
|
|
|
|
|
Basic
|
|
63,742
|
|
|
64,289
|
|
|
64,242
|
|
|
64,253
|
|
Diluted
|
|
64,536
|
|
|
65,222
|
|
|
65,127
|
|
|
65,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
17,697
|
|
|
$
|
30,560
|
|
Accounts receivable, net of allowance of $415 in 2015 and $812 in
2014
|
|
57,986
|
|
|
43,513
|
|
Inventory
|
|
12,963
|
|
|
10,665
|
|
Prepaid supplies and other
|
|
12,660
|
|
|
12,613
|
|
TOTAL CURRENT ASSETS
|
|
101,306
|
|
|
97,351
|
|
|
|
|
|
|
Property and equipment, net
|
|
875,401
|
|
|
847,268
|
|
Other assets
|
|
26,827
|
|
|
28,230
|
|
Goodwill and acquired intangibles
|
|
38,729
|
|
|
39,010
|
|
TOTAL ASSETS
|
|
$
|
1,042,263
|
|
|
$
|
1,011,859
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
Accounts payable
|
|
$
|
44,417
|
|
|
$
|
40,608
|
|
Accrued salaries, wages and benefits
|
|
27,454
|
|
|
25,633
|
|
Accrued expenses
|
|
8,107
|
|
|
8,201
|
|
Current portion of debt obligations
|
|
33,865
|
|
|
24,344
|
|
Unearned revenue
|
|
12,963
|
|
|
12,914
|
|
TOTAL CURRENT LIABILITIES
|
|
126,806
|
|
|
111,700
|
|
|
|
|
|
|
|
|
Long term debt
|
|
284,335
|
|
|
319,750
|
|
Post-retirement obligations
|
|
108,194
|
|
|
92,050
|
|
Other liabilities
|
|
61,913
|
|
|
57,647
|
|
Deferred income taxes
|
|
96,858
|
|
|
83,223
|
|
|
|
|
|
|
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; 64,077,140 and 64,854,950 shares issued and outstanding
in 2015 and 2014, respectively
|
|
641
|
|
|
649
|
|
Additional paid-in capital
|
|
518,259
|
|
|
526,669
|
|
Accumulated deficit
|
|
(55,731
|
)
|
|
(96,953
|
)
|
Accumulated other comprehensive loss
|
|
(99,012
|
)
|
|
(82,876
|
)
|
TOTAL STOCKHOLDERS’ EQUITY
|
|
364,157
|
|
|
347,489
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
1,042,263
|
|
|
$
|
1,011,859
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
|
CAM
|
|
$
|
46,729
|
|
|
$
|
44,852
|
|
|
$
|
177,789
|
|
|
$
|
166,303
|
|
ACMI Services
|
|
|
|
|
|
|
|
|
Airline services
|
|
106,262
|
|
|
107,334
|
|
|
395,486
|
|
|
399,376
|
|
Reimbursables
|
|
17,569
|
|
|
9,832
|
|
|
37,623
|
|
|
40,543
|
|
Total ACMI Services
|
|
123,831
|
|
|
117,166
|
|
|
433,109
|
|
|
439,919
|
|
Other Activities
|
|
55,812
|
|
|
36,938
|
|
|
161,995
|
|
|
142,294
|
|
Total Revenues
|
|
226,372
|
|
|
198,956
|
|
|
772,893
|
|
|
748,516
|
|
Eliminate internal revenues
|
|
(44,791
|
)
|
|
(41,018
|
)
|
|
(153,629
|
)
|
|
(158,924
|
)
|
Customer Revenues
|
|
$
|
181,581
|
|
|
$
|
157,938
|
|
|
$
|
619,264
|
|
|
$
|
589,592
|
|
|
|
|
|
|
|
|
|
|
Pre-tax Earnings from Continuing Operations
|
|
|
|
|
|
|
CAM, inclusive of interest expense
|
|
15,096
|
|
|
14,478
|
|
|
57,457
|
|
|
53,159
|
|
ACMI Services
|
|
3,705
|
|
|
1,482
|
|
|
(2,654
|
)
|
|
(5,381
|
)
|
Other Activities
|
|
1,568
|
|
|
2,228
|
|
|
8,561
|
|
|
11,363
|
|
Pension settlement charge
|
|
—
|
|
|
(6,700
|
)
|
|
—
|
|
|
(6,700
|
)
|
Net, unallocated interest expense
|
|
(442
|
)
|
|
(501
|
)
|
|
(1,721
|
)
|
|
(1,761
|
)
|
Net gain (loss) on derivative instruments
|
|
573
|
|
|
127
|
|
|
920
|
|
|
1,096
|
|
Total Pre-tax Earnings
|
|
$
|
20,500
|
|
|
$
|
11,114
|
|
|
$
|
62,563
|
|
|
$
|
51,776
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Pre-tax Earnings
|
|
|
|
|
|
|
Add pension settlement cost
|
|
—
|
|
|
6,700
|
|
|
—
|
|
|
6,700
|
|
Less net (gain) loss on derivative instruments
|
|
(573
|
)
|
|
(127
|
)
|
|
(920
|
)
|
|
(1,096
|
)
|
Adjusted Pre-tax Earnings
|
|
$
|
19,927
|
|
|
$
|
17,687
|
|
|
$
|
61,643
|
|
|
$
|
57,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Pre-tax Earnings is defined as Earnings from Continuing
Operations Before Income Taxes less derivative gains or losses, plus a
pension settlement charge. 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,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Earnings from Continuing Operations Before Income Taxes
|
|
$
|
20,500
|
|
|
$
|
11,114
|
|
|
$
|
62,563
|
|
|
$
|
51,776
|
|
Interest Income
|
|
(21
|
)
|
|
(26
|
)
|
|
(85
|
)
|
|
(92
|
)
|
Interest Expense
|
|
2,644
|
|
|
3,324
|
|
|
11,232
|
|
|
13,937
|
|
Depreciation and Amortization
|
|
34,296
|
|
|
29,826
|
|
|
125,443
|
|
|
108,254
|
|
EBITDA from Continuing Operations
|
|
$
|
57,419
|
|
|
$
|
44,238
|
|
|
$
|
199,153
|
|
|
$
|
173,875
|
|
Add pension settlement charge
|
|
—
|
|
|
6,700
|
|
|
—
|
|
|
6,700
|
|
Less net (gain) loss on derivative instruments
|
|
(573
|
)
|
|
(127
|
)
|
|
(920
|
)
|
|
(1,096
|
)
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA from Continuing Operations
|
|
$
|
56,846
|
|
|
$
|
50,811
|
|
|
$
|
198,233
|
|
|
$
|
179,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 a pension settlement
charge and less derivative gains or losses.
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, 2014
|
|
December 31, 2014
|
|
|
|
|
Per Share
|
|
|
|
Per Share
|
|
|
Earnings
|
|
Basic
|
|
Diluted
|
|
Earnings
|
|
Basic
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations
|
|
6,659
|
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
|
32,074
|
|
|
$
|
0.50
|
|
|
$
|
0.49
|
Effect of pension settlement charge, net of tax
|
|
4,147
|
|
|
0.07
|
|
|
0.07
|
|
|
4,147
|
|
|
0.06
|
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings from continuing operations
|
|
10,806
|
|
|
$
|
0.17
|
|
|
$
|
0.17
|
|
|
36,221
|
|
|
$
|
0.56
|
|
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
|
|
|
|
64,289
|
|
|
65,222
|
|
|
|
|
64,253
|
|
|
65,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 a pension settlement charge.
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,
|
|
|
|
|
|
2014
|
|
|
2015
|
|
|
2016 Projected
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
Total
|
|
Owned
|
|
Lease
|
|
|
Total
|
|
Owned
|
|
Lease
|
|
|
Total
|
|
Owned
|
|
Lease
|
|
B767-200
|
|
|
|
38
|
|
36
|
|
2
|
|
|
36
|
|
36
|
|
—
|
|
|
36
|
|
36
|
|
—
|
|
B767-300
|
|
|
|
10
|
|
9
|
|
1
|
|
|
11
|
|
11
|
|
—
|
|
|
17
|
|
17
|
|
—
|
|
B757-200
|
|
|
|
4
|
|
4
|
|
—
|
|
|
5
|
|
4
|
|
1
|
|
|
5
|
|
4
|
|
1
|
|
B757 Combi
|
|
|
|
4
|
|
4
|
|
—
|
|
|
4
|
|
4
|
|
—
|
|
|
4
|
|
4
|
|
—
|
|
Total Aircraft
|
|
|
|
56
|
|
53
|
|
3
|
|
|
56
|
|
55
|
|
1
|
|
|
62
|
|
61
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned Aircraft In Serviceable Condition
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
2014
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dry leased without CMI
|
|
|
|
|
|
11
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
Dry leased with CMI
|
|
|
|
|
|
13
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
ACMI/Charter
|
|
|
|
|
|
28
|
|
|
|
|
|
|
25
|
|
|
|
|
|
|
|
|
|
|
Staging/Unassigned
|
|
|
|
|
|
1
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53
|
|
|
|
|
|
|
55
|
|
|
|
|
|
|
|
|
|
|
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