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EX - 99.1 2 a2021qlearningsrelease.htm EX - 99.1 ATSG Air Transport Services Group , Inc. ATSG Reports First Quarter 2021 Results Fifteen More Boeing 767-300 Freighter Leases Since March 2020 , including Five in 10 2021 WILMINGTON , OH , May 5 , 2021 - Air Transport Services Group , Inc. ( Nasdaq : ATSG ) , the leading provider of medium wide - body aircraft leasing , contracted air transportation and related services , today reported consolidated financial results for the quarter ended March 31 , 2021 . ATSG's first quarter 2021 results , as compared with the first quarter of 2020 include : Customer revenues down $ 13.2 million to $ 376.1 million . First - quarter ACMI Services revenues were down $ 37.0 million due primarily to reduced operations for passenger and combi services , including fewer special charter operations , versus the early stages of the pandemic last year . Aircraft leasing revenues from external customers for the quarter increased $ 14.1 million from fifteen new leases of Boeing 767-300 freighters since March 2020 , including five in the first quarter this year . ● ● GAAP Earnings from Continuing Operations were $ 42.3 million , or $ 0.71 per share basic , versus $ 133.7 million , or $ 2.27 per share basic . The unrealized effect of the quarterly re - measurement of the values of financial instruments , including warrants , increased ATSG's first - quarter after - tax earnings by $ 7.3 million and $ 108.1 million for 2021 and 2020 , respectively . Warrant gains stemmed primarily from a decrease in the traded value of ATSG shares during the quarter . Government grants intended to mitigate pandemic effects on ATSG's passenger airline operations added $ 21.6 million , or $ 0.29 per share , to ATSG's first - quarter 2021 net income . ● Adjusted Earnings from Continuing Operations ( non - GAAP ) decreased $ 14.1 million to $ 15.2 million . Adjusted Earnings Per Share ( non - GAAP ) were $ 0.19 diluted , down $ 0.21 . Adjusted Earnings from Continuing Operations and Adjusted EPS exclude $ 21.6 million of government grants recognized in 2021 and other elements from GAAP results that differ distinctly in predictability among periods or are not closely related to operations . Adjusted EPS for both periods are based on share counts that reflect Amazon's decision in March 2021 to exercise a portion of its ATSG warrants . Adjusted EBITDA from Continuing Operations ( non - GAAP ) decreased $ 18.4 million to $ 105.6 million , excluding the recognition of government grants . Reduced contributions from ATSG's airlines , due to reductions in passenger flying and increased operating expenses as a result of the pandemic , as well as ramp - up expenses to support customers ' expanding air networks , offset higher contributions from ATSG's aircraft leasing operations . Adjusted EBITDA plus government grants recognized during the quarter increased $ 9.6 million compared to the previous year . Government grants from federal payroll support programs have been an essential factor for retaining employees at ATSG's passenger airline and partially offsetting employee costs as revenues from passenger services declined . Adjusted Earnings per Share , Adjusted Earnings from Continuing Operations and Adjusted EBITDA from Continuing Operations are non - GAAP financial measures and are defined in the non - GAAP reconciliation tables at the end of this release . Capital spending was $ 125.4 million , down $ 18.1 million . First - quarter spending included $ 84.7 million for the acquisition of four Boeing 767-300 passenger aircraft for freighter conversion , and modification costs for others . Spending for required heavy maintenance , and for other equipment including aircraft engines and components , increased $ 2.6 million compared to a year ago . Rich Corrado , president and chief executive officer of ATSG , said , " Leased cargo aircraft deliveries remained on a record pace in the first quarter , including four of the eleven additional Boeing 767s we will lease to and fly for Amazon this year . We also received word last week that the FAA has awarded a Supplemental Type Certificate for freighter conversion of Airbus A321-200 passenger aircraft under our joint venture with Precision . In March , we were pleased to learn that Amazon intends to express its continued confidence in ATSG by choosing to exercise ATSG warrants it holds to acquire 19.5 percent of our common shares , including a cash equity investment of $ 132 million that we expect to be completed this week . However , the incremental passenger flying we were awarded to move personnel in the early stages of the pandemic last year has not continued into 2021 , and our ongoing combi and passenger flying assignments remain down . We continue to receive federal pandemic relief funds allocated to