ATSG growth continues as midsize freighter leasing expands

Air Transport Services Group (ATSG), a leading provider of medium wide-body aircraft leasing, air cargo transportation and related services, has reported consolidated financial results for the quarter ended June 30, 2017. Revenues increased US$77m to US$253.2m, excluding revenues from reimbursable airline expenses, revenues increased US$60m. ATSG’s airline services operations, and maintenance and logistics businesses, recorded double-digit revenue increases. GAAP Earnings from Continuing Operations were a loss of US$53.9m and included charges totaling US$67.8m for the warrants granted last year in connection with operating and lease agreements with Amazon Fulfillment Services. The value of the warrants increased sharply during the quarter in conjunction with a 36% increase in the traded price of ATSG stock since March 31, 2017, resulting in a significant mark-to-market loss for the quarter. Earnings from Continuing Operations were a positive US$11.5m a year earlier. Adjusted Earnings from Continuing Operations, which exclude non-cash warrant-related items, were US$13.9m up 64%. GAAP Pre-tax Earnings from Continuing Operations were a negative US$-48.4m, versus a positive US$18.8m a yeaUS$22.7m. Adjusted EBITDA increased 23% to US$64.2m.