767 Freighter leases drive ATSG revenue growth

Air Transport Services Group, a provider of medium wide-body aircraft leasing, air cargo transportation and related services, reported consolidated financial results for the quarter ended September 30th, 2015. Revenues increased 3% to US$142.3m, including a 6% increase in freighter aircraft leasing revenues. Excluding revenues from reimbursements, third-quarter 2015 revenues increased 6%. Both pre-tax and net earnings from continuing operations decreased 34%, reflecting the revenue and expense effects of aircraft transitioning between contracts and scheduled maintenance activities during the third quarter. Net earnings from continuing operations were US$6.3m, down from US$9.6m in third quarter of 2014. 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 2017 or later. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization, also adjusted for the effect of derivative transactions) was US$43.7m, down 2% from a year ago. Adjusted EBITDA is a non-GAAP financial measure, defined and reconciled to comparable GAAP results in separate tables at the end of this release.