ATSG posts improved 2014 results as aircraft leasing portfolio grows

Air Transport Services Group reported consolidated financial results for the quarter and full year ended December 31st, 2014. Adjusted pre-tax earnings from continuing operations increased 19% to US$17.7m. The adjustments remove the effects of pension settlement charges, derivative transactions, and year-earlier impairment charges. These and other adjusted amounts referenced below are non-GAAP financial measures, defined and reconciled to comparable GAAP results in tables at the end of this release. Adjusted net earnings from continuing operations increased 11% to US$10.8m, or 17 cents per share diluted. Operating loss carryforwards for U.S. federal income tax purposes offset much of the company’s federal tax liabilities. ATSG does not expect to pay significant federal income taxes until 2017 at the earliest. Revenues were US$157.9m, slightly higher than a year ago and up US$19.5m from the third quarter of 2014. Excluding revenues from reimbursable expenses, revenues decreased 3% compared to the fourth quarter of 2013. Increases in revenues from additional dry leases to external customers in 2014 offset the ending of Mideast ACMI operations for DHL in 2013. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased by 15% to US$50.8m from US$44.3m a year ago. Full year adjusted EBITDA grew by 14% to US$179.5m from US$157.5m in 2013.