Air Transport Services Group announces 2013 results

Air Transport Services Group, a leading provider of aircraft leasing, and air cargo transportation and related services, reported consolidated financial results for the quarter and year ended December 31, 2013. For the fourth quarter of 2013 revenues increased 2% to $157.0m, compared with the fourth quarter of 2012, attributable mainly to increased airline operations for DHL in the U.S., and greater aircraft leasing revenues than a year ago. Results for the fourth quarter included a non-cash impairment charge of $52.6m, related to the write-off of goodwill associated with ATSG’s 2007 purchase of Air Transport International. Excluding the impairment charge, fourth-quarter adjusted earnings from continuing operations were $9.7m, down from fourth-quarter 2012 earnings of $12.2m. Including the impairment charge, ATSG’s loss from continuing operations for the fourth quarter of 2013 was $42.8m. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization, also adjusted for the impairment charges and derivative gains) was $44.2m, up 4% from the prior-year quarter. Adjusted EBITDA increased in each of the last two quarters of 2013, and totaled $157.5m for the year, within the company’s previously announced targeted range. 2013 revenues decreased 5% to $580m compared with 2012, due primarily to reduced international operations. A loss from continuing operations of $19.6m for the year, compares with earnings from continuing operations of $41.6m in 2012. Excluding the effects of the impairment charge, ATSG’s adjusted earnings from continuing operations for 2013 were $33.0m. Adjusted EBITDA decreased 3% to $157.5m.