ATSG's second quarter results on track toward 2016 targets

Air Transport Services Group reported consolidated financial results for the quarter ended June 30, 2016. Revenues increased 19% to US$176.5m. Excluding revenues from reimbursed expenses, revenues increased 13%. This increase included contributions from thirty-five Boeing 767 cargo aircraft leased to external customers at June 30, six more than a year earlier. Eight of those thirty-five leased 767s were operating for Amazon Fulfillment Services Inc. (AFS), a subsidiary of Amazon.com, which ATSG began serving in September 2015. Pre-tax earnings from continuing operations were US$18.8m, compared with US$17.2m in the prior-year period. Adjusted Pre-Tax Earnings from continuing operations declined slightly to US$16.3m from US$16.7m, reflecting US$2.6m in ramp-up costs stemming primarily from flight crew compensation and training for the expanding Amazon and DHL CMI operations. Adjusted EBITDA from continuing operations, as adjusted for the same items excluded from Adjusted Pre-Tax Earnings, increased 2% to US$52.1m. Net Earnings from continuing operations on a GAAP basis were US$11.5m in the second quarter, versus US$10.6m a year ago.