ATSG Issues Outlook for Stronger 2015 Results
February 09 2016 - 6:00PM
Business Wire
Expects 2015 Adjusted EBITDA of $196-200
Million
Air Transport Services Group, Inc. (NASDAQ:ATSG) said today that
due primarily to better-than-expected results from its airline
operations in the fourth quarter, its financial results for 2015
are likely to exceed management’s earlier guidance.
ATSG now projects that its Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) from continuing operations,
adjusted for unrealized effects of interest rate derivative gains
and losses, will likely be in a range of $196-200 million for 2015.
That compares with Adjusted EBITDA guidance first provided last
November of $190-195 million for 2015. Adjusted EBITDA from
Continuing Operations for 2014 was $179.5 million.
The change in ATSG’s 2015 outlook reflects increased demand for
ATSG’s services, primarily for the 767 freighters it operates on a
contracted ACMI (Aircraft, Crew, Maintenance & Insurance)
basis. Results from the ACMI Services segment were greater than
projected in the fourth quarter.
The fourth quarter also benefited from more 767 freighters that
were dry-leased to external customers at year-end: three more
compared with the start of the quarter, and six more than at the
end of 2014.
ATSG President and CEO Joe Hete said, “We are very pleased with
our 2015 performance, not just from the new business we added but
also for how well our teams performed for all of our customers. We
faced extraordinary challenges in 2015 to quickly place and operate
our 767 freighters over new routes and in concert with new ground
services, while continuing to provide great service to all of our
other customers. Those achievements lend even greater support to
our conviction that we are the only source of dedicated midsize
freighters and logistical support services, and no one can match
our deployment speed, scale or service quality.”
Hete also said that the trial ACMI express network that its
airlines launched in September for a U.S. customer performed well
through the holiday season, and continues to operate. The network
grew to five aircraft in ACMI service, together with related
logistics services. ATSG is seeking to extend its provision of
network services for this customer.
ATSG currently expects to issue final audited results for 2015
in early March. At that time, it will also provide guidance for its
Adjusted EBITDA for 2016.
Adjusted EBITDA
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) from Continuing Operations as referenced in
this release is a current estimate of a non-GAAP measurement that
ATSG references in its financial results. Management uses Adjusted
EBITDA from Continuing Operations to assess the performance of its
operating results among periods. Adjusted EBITDA from Continuing
Operations should not be considered in isolation or as a substitute
for analysis of the Company's results as reported under GAAP, or as
an alternative measure of liquidity.
Management is in the process of finalizing ATSG’s financial
results for 2015. When its audited financial results are completed
and released, ATSG will provide a reconciliation of Adjusted EBITDA
from Continuing Operations to Earnings from Continuing Operations
Before Income Taxes, a GAAP measure.
Investor Webcast
Joe Hete, President and CEO, and Quint Turner, Chief Financial
Officer, will discuss ATSG’s business and update the outlook for
its full-year 2015 financial results at the BB&T Transportation
Services Conference in Coral Gables, Florida, on Wednesday,
February 10, 2016, at 7:45 a.m. Eastern time. A live audio webcast
of the event, with associated slides, will be available via links
at www.atsginc.com or at http://wsw.com/webcast/bbt28/atsg. An
archived replay of the presentation will be available via the same
sites for 30 days.
About ATSG
ATSG is a leading provider of aircraft leasing and air cargo
transportation and related services to domestic and foreign air
carriers and other companies that outsource their air cargo lift
requirements. ATSG, through its leasing and airline subsidiaries,
is the world's largest owner and operator of converted Boeing 767
freighter aircraft. Through its principal subsidiaries, including
two airlines with separate and distinct U.S. FAA Part 121 Air
Carrier certificates, ATSG provides aircraft leasing, air cargo
lift, aircraft maintenance services and airport ground services.
ATSG's subsidiaries include ABX Air, Inc.; Airborne Global
Solutions, Inc.; Air Transport International, Inc.; Cargo Aircraft
Management, Inc.; and Airborne Maintenance and Engineering
Services, Inc. For more information, please see
www.atsginc.com.
Except for historical information contained herein, the matters
discussed in this release contain forward-looking statements that
involve risks and uncertainties. There are a number of important
factors that could cause Air Transport Services Group's ("ATSG's")
actual results to differ materially from those indicated by such
forward-looking statements. These factors include, but are not
limited to, changes in market demand for our assets and services,
the number and timing of deployments of our aircraft, our operating
airlines' ability to maintain on-time service and control costs,
and other factors that are contained from time to time in ATSG's
filings with the U.S. Securities and Exchange Commission, including
its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Readers should carefully review this release and should not place
undue reliance on ATSG's forward-looking statements. These
forward-looking statements were based on information, plans and
estimates as of the date of this release. ATSG undertakes no
obligation to update any forward-looking statements to reflect
changes in underlying assumptions or factors, new information,
future events or other changes.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160209006834/en/
ATSG Inc.Quint O. Turner, 937-382-5591Chief Financial
Officer
Air Transport Services (NASDAQ:ATSG)
Historical Stock Chart
From Aug 2024 to Sep 2024
Air Transport Services (NASDAQ:ATSG)
Historical Stock Chart
From Sep 2023 to Sep 2024