Strong ATSG growth drives 2015 earnings gains

Air Transport Services Group, Inc. (ATSG), a leading provider of medium wide-body aircraft leasing, air cargo transportation and related services, reported consolidated financial results for the quarter and full year ended December 31st, 2015. Revenues increased 15% to US$181.6m for the quarter, and were up 5% to US$619.3m for the year. Excluding revenues from reimbursable airline expenses, revenues increased 11% for the quarter and 6% for the year. Revenues for Cargo Aircraft Management, ATSG’s aircraft leasing business, grew 7% year-over-year. Pre-tax earnings from continuing operations increased US$9.4m to US$20.5m for the quarter and to US$62.6m for 2015. Excluding the effect of 2014 pension settlement charges, and derivative transactions in each year, Adjusted Pre-tax Earnings increased 13% for the quarter and 7% for 2015. This and other adjusted amounts referenced below are non-GAAP financial measures. Net earnings from continuing operations were US$13.3m, for the fourth quarter and US$39.2m for the year. Those earnings increased 23% for the quarter and 8% 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. Fourth-quarter Adjustedllion. EBITDA increased by 12% to US$56.8m. 2015 Adjusted EBITDA grew by 10% to US$198.2m. Record operating cash flow for 2015 stood at US$173.7m. The 17% increase from 2014 stemmed largely from higher income and faster payments from customers. 2015 capital expenditures were US$159m, cash debt repayments in excess of borrowings were US$24m and share repurchases were US$10m.