– Air Transport Services Group, a provider of medium wide-body aircraft leasing, air cargo transportation and related services, has reported consolidated financial results for the quarter ended June 30, 2018:
GAAP revenues were US$203.6 million based on new revenue recognition standards adopted in 2018. 2Q 2018 revenues increased six percent after excluding US$61.1 million in reimbursed expenses from 2Q 2017 revenues.
GAAP Earnings from Continuing Operations were US$24.5 million, vs. a loss of US$53.9 million in 2Q 2017. Provision for income tax was US$5.4 million for 2Q18. Due to deferred tax assets, including loss carryforwards, ATSG does not expect to pay significant federal income taxes until 2023 or later.
Adjusted Earnings (non-GAAP) from Continuing Operations were US$19.2 million, up 38% from US$13.9 million in 2Q 2017. Adjusted Earnings from Continuing Operations exclude the net effects of warrants issued to Amazon.com Services, including a US$63.4 million loss from mark-to-market warrant revaluation in 2Q 2017, and a share of development costs for ATSG’s Airbus A321 freighter conversion venture.
Adjusted EBITDA (non-GAAP) from Continuing Operations was US$69.7 million, up 9%. Adjusted Earnings and Adjusted EBITDA from continuing operations are non-GAAP measures. (See Revenue Recognition, Non-GAAP Financial Measures, also reconciliation tables at the end of this release).
First-half 2018 capital spending was US$150.8 million vs. US$144.3 million in 1H 2017. Capital expenditures in 2018 included US$116.6 million for the acquisition of Boeing aircraft and freighter modification costs, up from US$96.7 million in the first half of 2017.
