ATSG posts strong first quarter revenue

Air Transport Services Group reported consolidated financial results for the quarter ended March 31, 2017. Revenues increased 34% US$237.9m. Excluding revenues from reimbursable airline expenses, revenues increased 23%. Revenues from ATSG’s airline, maintenance, and logistics businesses increased significantly. Earnings from Continuing Operations were US$9.8m, compared with US$8.2m a year earlier. These GAAP results include both dollar and share-related effects of warrants issued in March 2016 to Amazon Fulfillment Services, in connection with operating and lease agreements. Adjusted Earnings from Continuing Operations, which exclude non-cash warrant-related adjustments, were US$11.2m, up 33%. Pre-tax earnings from continuing operations were US$16.1m, up 33%. Adjusted Pre-tax Earnings, which exclude the warrant effects along with additional non-cash items, increased 6% to US$17.0m. Adjusted EBITDA increased 11% to US$57.0m. Capital expenditures were US$83.8m, up 17%.