The following is a summary of the Air Transport Services Group, Inc. (ATSG) Q1 2024 Earnings Call Transcript:
Financial Performance:
ATSG reported Q1 2024 revenues of $486 million, a decrease of $15 million or 20% year-over-year.
GAAP pre-tax earnings and diluted EPS reported at $12 million and $0.13 respectively, demonstrating a decrease from prior year's figures.
Adjusted pre-tax earnings dropped to $15 million while adjusted EPS dropped to $0.16.
Revenues from aircraft leasing witnessed a 7% decrease due to fewer cycles of 767-200 engine and increased interest expense and depreciation.
The ACMI Services segment reported a pre-tax loss of $3 million.
Business Progress:
A contract extension for operating 10 additional Boeing 767-300 freighters has been agreed upon with Amazon, which could potentially increase to an additional 10 aircraft beyond 2024.
Agreement with Amazon extends flying agreement through 2029, with options extending it further to 2034.
Contract with ABX Air pilots ratified for extension until 2030.
4 Converted 767-300 freighters delivered to external customers in the quarter.
Expectation for 2024: Completion of conversion of 17 aircraft and acquisition of 4 additional feedstock aircraft; start-up of 10 Amazon-provided 767-300 aircraft.
ATSG is striving to become free cash flow positive by end of 2024 and is forecasting a $516 million guidance excluding other potential leases.
Emphasis on supporting e-commerce growth, aiming at sustained relations with Amazon and exploring growth opportunities in Asia.
Pursuing marketing initiatives for A321s and 767 aircraft, with delivery of the first Airbus 330s expected in Q4 2024.
More details: Air Transport Services IR
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