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EX - 99.1 2 a2021q2earningsrelease.htm EX - 99.1 ATSG Reports Second Quarter 2021 Results Record Quarterly Adjusted EBITDA ; Strong Midsize Freighter Demand Continues WILMINGTON , OH , August 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 June 30 , 2021 . ATSG's second quarter 2021 results , as compared with the second quarter of 2020 include : Customer revenues increased $ 32.1 million , or 8 percent , to $ 409.9 million . Second - quarter aircraft leasing and ground services revenues increased substantially from a year ago , while airline services revenues decreased , largely due to a surge in pandemic - related charter operations last year . Aircraft leasing and related revenues from external customers for the quarter increased $ 16.7 million from seventeen more leases of Boeing 767 freighters since June 2020 , including five in the second quarter this year . ● ATSG Air Transport Services Group , Inc. ● ● GAAP Earnings from Continuing Operations were $ 79.9 million , or $ 1.17 per share basic , versus a loss of $ 105.2 million , or ( $ 1.78 ) per share basic , for the same period last year . The re - measurements of financial instrument values , including warrants to purchase ATSG shares , increased ATSG's second - quarter after - tax earnings by $ 27.6 million in 2021 and reduced them by $ 107.6 million in 2020. Warrant effects in this year's quarter stemmed primarily from a decrease in the traded value of ATSG shares . Government grants intended to mitigate pandemic effects on ATSG's passenger airline operations added $ 29.5 million to ATSG's second - quarter 2021 net income , compared with $ 7.6 million a year ago . Results for the second quarter also included $ 5.0 million in after - tax debt restructuring costs in 2021 , and a $ 30.2 million after - tax impairment charge in 2020 , primarily for four Boeing 757 freighters retired from service . Adjusted Earnings from Continuing Operations ( non - GAAP ) were $ 28.1 million , versus $ 32.5 million a year ago . Adjusted Earnings Per Share ( non - GAAP ) were $ 0.35 diluted , down $ 0.09 . Adjusted Earnings from Continuing Operations and Adjusted EPS exclude the above - mentioned GAAP items 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 May 2021 exercise of a portion of its ATSG warrants . Adjusted EBITDA from Continuing Operations ( non - GAAP ) increased $ 2.2 million to $ 127.8 million vs the prior - year quarter and by $ 22.2 million vs the first quarter of 2021 . ATSG's airlines , even excluding the benefit of pandemic relief grants , generated positive cash returns for the quarter , as strong growth in e - commerce - driven cargo operations offset reductions in passenger flying and increased operating expenses as a result of the pandemic . 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 . Rich Corrado , president and chief executive officer of ATSG , said , " As we had forecast , ATSG's revenue , earnings and Adjusted EBITDA improved significantly from first - quarter levels as our airline businesses achieved their performance targets , and leasing of our Boeing 767 freighters remained on a record pace . We have delivered seven of the eleven additional Boeing 767s we will lease to and fly for Amazon this year during the first half , and accelerated our plans to offer Airbus A321-200 converted freighters to our lease customers . While our ongoing Boeing 757 combi and passenger flying assignments have not yet fully recovered from the pandemic , we are optimistic about continued steady improvement on those fronts , and about meeting or outperforming the overall results we have projected for 2021. "