ATSG reports results for first quarter 2010
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WILMINGTON – Air Transport Services Group, Inc. has reported financial results for its first quarter ended March 31, 2010, as compared with results for the first quarter of 2009.
First Quarter Financial Summary:
* Revenues from continuing operations of $160.9 million for the first
quarter of 2010, compared with $211.8 million a year ago. Revenues increased
11.7 percent excluding reimbursed operating expenses and non-recurring
severance and retention (S&R) payments, and included gains from each of
ATSG’s three airlines and its leasing business.
* Pre-tax earnings from continuing operations of $10.8 million, down $2.4
million compared to the first quarter of 2009. Higher pre-tax earnings from
ATSG’s operations for DHL and from its aircraft leasing business, CAM, were
offset by 2010 losses from ACMI Services and from Other Activities.
* Net earnings, including earnings from discontinued operations, were
$7.2 million, or $0.12 per share (diluted) in the first quarter 2010, down
from $11.1 million, or $0.18 per share a year earlier. Net earnings from
continuing operations were $6.8 million, or $0.11 per share, down from $8.2
million, or $0.13 per share. Net earnings for the first quarter of each year
included deferred (non-cash) income tax expense, with nearly all the federal
tax amount offset by a reduction in net deferred tax assets. Based on its
remaining deferred tax assets, ATSG does not expect to be a cash payer of
federal income taxes until 2013.
* $36.7 million in EBITDA (Earnings Before Interest, Taxes, Depreciation
and Amortization) from continuing operations, down from $42.1 million in the
first quarter of 2009. (EBITDA is a non-GAAP measure of financial
performance. A reconciliation of ATSG’s first-quarter EBITDA to GAAP Net
Income appears at the end of this press release).
* Cash flow provided by operating activities of $53.4 million, more than
double the prior-year quarter amount, due primarily to ABX Air’s receipt of
cash payments on amounts receivable from DHL.
* Continued balance sheet strengthening during the quarter, including a
$9.1 million reduction in debt, a $23.2 million reduction in post-retirement
liabilities, and a $25.5 million increase in cash since December 31, 2009.
Joe Hete, President and CEO of ATSG, said, “Our first-quarter 2010 financial
results, excluding ABX Air’s DHL-related operations, improved sharply from January through March, but pre-tax earnings still fell short of acceptable levels for the quarter as a whole. The first quarter results were generated under customer contract terms and a labor cost structure at ABX Air that have changed dramatically, and as such are not representative of ATSG’s anticipated future performance for the rest of 2010.”[[In-content Ad]]
First Quarter Financial Summary:
* Revenues from continuing operations of $160.9 million for the first
quarter of 2010, compared with $211.8 million a year ago. Revenues increased
11.7 percent excluding reimbursed operating expenses and non-recurring
severance and retention (S&R) payments, and included gains from each of
ATSG’s three airlines and its leasing business.
* Pre-tax earnings from continuing operations of $10.8 million, down $2.4
million compared to the first quarter of 2009. Higher pre-tax earnings from
ATSG’s operations for DHL and from its aircraft leasing business, CAM, were
offset by 2010 losses from ACMI Services and from Other Activities.
* Net earnings, including earnings from discontinued operations, were
$7.2 million, or $0.12 per share (diluted) in the first quarter 2010, down
from $11.1 million, or $0.18 per share a year earlier. Net earnings from
continuing operations were $6.8 million, or $0.11 per share, down from $8.2
million, or $0.13 per share. Net earnings for the first quarter of each year
included deferred (non-cash) income tax expense, with nearly all the federal
tax amount offset by a reduction in net deferred tax assets. Based on its
remaining deferred tax assets, ATSG does not expect to be a cash payer of
federal income taxes until 2013.
* $36.7 million in EBITDA (Earnings Before Interest, Taxes, Depreciation
and Amortization) from continuing operations, down from $42.1 million in the
first quarter of 2009. (EBITDA is a non-GAAP measure of financial
performance. A reconciliation of ATSG’s first-quarter EBITDA to GAAP Net
Income appears at the end of this press release).
* Cash flow provided by operating activities of $53.4 million, more than
double the prior-year quarter amount, due primarily to ABX Air’s receipt of
cash payments on amounts receivable from DHL.
* Continued balance sheet strengthening during the quarter, including a
$9.1 million reduction in debt, a $23.2 million reduction in post-retirement
liabilities, and a $25.5 million increase in cash since December 31, 2009.
Joe Hete, President and CEO of ATSG, said, “Our first-quarter 2010 financial
results, excluding ABX Air’s DHL-related operations, improved sharply from January through March, but pre-tax earnings still fell short of acceptable levels for the quarter as a whole. The first quarter results were generated under customer contract terms and a labor cost structure at ABX Air that have changed dramatically, and as such are not representative of ATSG’s anticipated future performance for the rest of 2010.”[[In-content Ad]]