Vietnam must support air cargo, IATA says

The International Air Transport Association (IATA) called on the Vietnamese government to work with the air transport sector to strengthen the country’s economy through global air connectivity.

“Vietnam is a dynamic and rapidly growing aviation market. The successful development of aviation will pay big dividends to the Vietnamese economy. It must be treated as a strategic asset and handled correctly,” Tony Tyler, IATA’s director general and CEO, said in his keynote address at the Vietnam Aviation Day organized by IATA and Vietnam Airlines.

Aviation supports over 230,000 jobs in Vietnam.

While airfreight accounts for a small amount of Vietnam’s trade by volume, it represents 25 percent of Vietnam’s trade by value. E-freight will help to improve the efficiency of Vietnam’s air cargo industry, Tyler said.

“A key step to implementing E-freight is the adoption of the e-air waybill. While Vietnam Airlines has been able to use e-AWB for domestic freight, it is unable to do so internationally as Vietnam has yet to ratify the Montreal Convention 99 (MC99). I urge Vietnam to ratify MC99 quickly so that greater efficiencies can be achieved in Vietnam’s air cargo sector,” Tyler said.

MC99 provides the legal framework for the use of electronic document of carriage, paving the way for freight forwarders and airlines to use the e-AWB.

Infrastructure is another component of the air transport sector that needs improvement.

Vietnam is addressing this with significant investments. It has announced an aviation master plan to have 26 airports by 2020. Expansion programs are underway at Hanoi and Ho Chi Minh airports, with the new Long Thanh International Airport to be ready by 2020.

Tyler urged careful planning and industry consultation leading to a well-thought-out regulatory structure in advance of any change to the structure and ownership of Vietnam’s airports. Vietnam has indicated plans to open its airports to foreign investment and management, and to privatize the Airports Corporation of Vietnam.

“While airport privatization can provide access to the capital needed for infrastructure programs, we have seen enough spectacular examples of unintended negative consequences to urge caution,” Tyler said. “To balance the market power of privatized airports, Vietnam needs to establish an effective independent economic regulator that is in line with well-established international norms. That should bring about fair charging schemes aligned with International Civil Aviation Organization (ICAO) policies. Lower charges will also improve the viability of routes and allow Vietnam to reap the benefits from enhanced connectivity and increased traffic.”

ICAO’s policies on charges are based on the principles of non-discrimination, cost-relatedness, transparency and consultation with users.

Article source: http://www.aircargoworld.com/Air-Cargo-World-News/2014/08/vietnam-must-support-air-cargo-iata-says/6724

UPS, pilots union kicked out of plane crash investigation

After comments published on Air Cargo World’s website, the National Transportation Safety Board (NTSB) ejected the Independent Pilots Association (IPA) and UPS Airlines from its ongoing investigation of UPS Flight 1354.

Flight 1354 crashed on approach to Birmingham, Ala., in August 2013.

The NTSB took the action Monday after it found that IPA, the union representing UPS pilots, and UPS violated the terms of the party agreement that each had signed at the start of the investigation.

In letters to each organization, the NTSB wrote that IPA and UPS took actions “prejudicial to the investigation” by publicly providing their own analysis of the investigation prior to the NTSB’s public meeting to determine the probable cause of the accident.

“NTSB investigations depend heavily upon technical input from the accident parties,” Acting Chairman Christopher A. Hart said. “If one party disseminates information about the accident, it may reflect that party’s bias. This puts the other parties at a disadvantage and makes them less willing to engage in the process, which can undercut the entire investigation.”

Without first consulting with the NTSB, the IPA issued a press release on Aug. 13 providing its own analysis of the accident, which NTSB said is prohibited in the party agreement. In the press release published by Air Cargo World on its website, the IPA called for an end to the exemption of all-cargo airline operators from FAR Part 117, the new pilot rest and operating rules enacted by Congress.

UPS, also without first consulting with the NTSB, posted comments on Air Cargo World responding to the IPA press release, in which NTSB said it provided its own analysis.

“Flight 1354 was a tragedy, and UPS continues to mourn the loss of our crewmembers, Capt. Cerea Beal and First Officer Shanda Fanning. We believe the anniversary is a time for reflection about the accident and the lives of our crewmembers,” UPS Airlines spokesperson Mike Mangeot wrote in the comments section. “Despite union rhetoric, the facts of Flight 1354 do not support changing rest rules for cargo crewmembers. A cargo pilot is not a passenger pilot. Just because all pilots sit in cockpits does not mean they experience the same conditions.”

The NTSB has the responsibility for disseminating aviation accident investigation-related information from the time of the accident’s occurrence all the way through to the end of its investigation.

The NTSB may grant “party status” to organizations that are able to provide technical assistance in an investigation. As a condition to being granted this status, as UPS Airlines and IPA were, parties sign an agreement that prohibits them from releasing investigative information to the media or to comment on or analyze investigative findings without prior consultation with the NTSB.

“UPS was surprised and disappointed to learn of the NTSB’s decision to remove our party status from the Flight 1354 investigation. We are a company that takes regulatory compliance very seriously, which is why we’re troubled by this decision,” Mangeot says in a statement from UPS Airlines. “We maintain that our actions have been in line with NTSB rules for communicating during an accident investigation. Those rules limit discussions to facts released by the investigation. Throughout the investigation, we have limited our discussions to those facts, and that’s what we did this time, too.”

Mangeot says the NTSB’s position that it should have been consulted “represents a change in the interpretation of those rules.” UPS Airlines has asked the NTSB to reconsider its decision. As of Tuesday at 9 a.m. ET, UPS Airlines had not received a response, Mangeot says.

“It is worth noting that the NTSB does not take issue with UPS’s factual statement. Their concern is that we did not notify them,” he says. “We believe we have been unfairly reprimanded for attempting to set the facts straight and defending our brand.”

IPA declined to comment about the NTSB’s decision to Air Cargo World.

Article source: http://www.aircargoworld.com/Air-Cargo-World-News/2014/08/ups-pilots-union-kicked-out-plane-crash-investigation/6720

Research and Markets: International Air Cargo In Mexico (Imports/Exports)

DUBLIN–(BUSINESS WIRE)–

Research and Markets (http://www.researchandmarkets.com/research/nwhg5v/international_air) has announced the addition of the “International Air Cargo In Mexico (Imports/Exports)” report to their offering.

This report provides detailed information on the import and export air cargo in Mexico, detailing the volume of all types of cargo vs air cargo in terms of value. In addition, the customs of entry of air cargo, top 20 sectors, top 20 products and top 20 companies in import and export air cargo are provided.

This report also details the main customs of entry and exit in value (usd). An extra detail of the top 3 customs in import and export is presented, showing the top sectors and top products for each of the three customs with figures in value (usd) and number of companies by sector or product.

Key Topics Covered:

1. Size of the Trade Data

2. Customs of Entry of Air Cargo

3. Top 20 Sectors in Air Cargo

4. Top 20 Products in Air Cargo

5. Top 20 Companies (by value of cargo)

6. Air Cargo Imports by Airport (Custom) in 2013, in million USD vs Country of Origin

7. Top 3 Airports (Customs) in value of cargo

8. Size of the Trade Data

9. Customs of Exit of Air Cargo

10. Top 20 Sectors in Air Cargo

11. Top 20 Products in Air Cargo

12. Top 20 Companies (by value of cargo)

13. Air Cargo Imports by Airport (Custom) in 2013, in million USD vs Country of Origin

14. Top 3 Airports (Customs) in value of cargo

Companies Mentioned

  • ABC Aerolineassa De Cv
  • Aerovias De Mexico Sa De Cv
  • Apple Operations Mexico, S.A. De C.V.
  • ARJ De Yucatan Sa De Cv
  • Boehringer Ingelheim Promeco Sa De Cv
  • Celestica De Monterrey Sa De Cv
  • Cia Mexicana De Aviacion Sa De Cv
  • Continental Automotive Mexicana Sa De Cv
  • Desarrollos Mineros San Luissa De Cv
  • Flextronics Manufacturing Mex Sa De Cv
  • Flextronics Plastics Sa De Cv
  • Grupo Buenoro S.A. De C.V.
  • IBM De Mexico Comercializacion Y Servicios Sa De Cv
  • Jabil Circuit De Mexico Sa De Cv
  • Lenovo Centro Tecnologico, S. De R.L. De C.V.
  • LG Electronics Mexico Sa De Cv
  • Menlo Worldwide Mexicos De Rl De Cv
  • Merck Sharp Dohme De Mexico Sa De Cv
  • Met Mex PeOles Sa Cv
  • Mexicana Mro, S.A. De C.V.
  • Pce Paragon Solutions (Mexico) S.A. De C.V.
  • Pfizer Sa Cv
  • Productos Roche, S.A. De C.V.
  • Saltillo Jet Centers De Rl De Cv
  • Samsung Electronics Mexico Sa De Cv
  • Sanmina-Sci Systems De Mexico Sa De Cv
  • Schering Plough Sa De Cv
  • Siemens Vdo Sa De Cv
  • Sony De Mexico Sa De Cv
  • Wyeth Sa De Cv

For more information visit http://www.researchandmarkets.com/research/nwhg5v/international_air

Article source: http://finance.yahoo.com/news/research-markets-international-air-cargo-180100133.html

ATSG Reports Strong Second Quarter Results

WILMINGTON, Ohio–(BUSINESS WIRE)–

Air Transport Services Group, Inc. (ATSG), the leading provider
of medium wide-body aircraft leasing, air cargo transportation and
related services, today reported consolidated financial results for the
quarter ended June 30, 2014.

For the second quarter of 2014:

  • Revenues were $149.6 million, up $10.7 million, or 8 percent from a
    year ago. Excluding revenues from reimbursable expenses, revenues
    increased $4.8 million, or 4 percent. The year-over-year gain stemmed
    from an improvement in combi revenue from the U.S. military and more
    aircraft maintenance services performed for external customers.
  • Pre-tax earnings from continuing operations increased 33 percent to
    $14.7 million. Sharp improvement in the profitability of ATSG’s
    airline operations more than offset margin reductions in ATSG’s
    aircraft leasing business, which incurred greater costs without
    compensating revenues while preparing 767 freighters for redeployment
    to external lease customers.
  • Net earnings from continuing operations of $9.3 million, or $0.14 per
    share, were up 34 percent from $6.9 million, or $0.11 per share a year
    ago. The Company has operating loss carryforwards for U.S. federal
    income tax purposes that offset its federal income tax liabilities. As
    a result, ATSG does not expect to pay significant federal income taxes
    until 2016 or later.
  • Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and
    Amortization, also adjusted for the effect of derivative transactions)
    was $45.3 million, up 26 percent from $35.9 million in the prior-year
    quarter, and up 17 percent from $38.8 million in the first quarter of
    2014. Adjusted EBITDA is a non-GAAP financial measure, defined and
    reconciled to comparable GAAP results in separate tables at the end of
    this release.

Separately today, ATSG announced that its Board of Directors has
authorized the purchase of up $50 million of the company’s common
shares, with discretion to determine whether and to what extent such
repurchases might take place. Also, ATSG said that its aircraft leasing
business, CAM, has agreed to purchase from Guggenheim Aviation Partners,
Ltd., two 767-300 freighters that ATSG is already operating under leases
from Guggenheim.

Joe Hete, President and Chief Executive Officer of ATSG, said, “The
second quarter provided strong evidence of the efficiency with which our
businesses convert revenue growth into cash flow and higher earnings.
The new agreements with Amerijet and Cargojet we announced in May,
including dry leases of four more of our 767s, led to the return of
several 767 freighters from our airlines to our leasing business, CAM.
That shift, plus significant reductions in personnel related costs,
fewer heavy maintenance checks in the second quarter, and stronger
returns from our operations for the U.S. military, led to a profitable
quarter in our ACMI Services segment. I’m also pleased with the
contribution of our aircraft maintenance business, AMES, which opened
its new hangar facility in Wilmington in late June.”

For the first half of 2014, ATSG earned $15.8 million, or $0.24 per
share from continuing operations, up 3 percent from the first half of
2013. Revenues increased 4 percent to $293.2 million. Adjusted EBITDA
for the first half of 2014 was $84.1 million, up 15 percent from the
first half of 2013.

Capital expenditures in the first half, including expenses related to
construction of new leased hangar facilities, were $23.5 million,
compared with $72.8 million in the first half of 2013. The company
increased its projection for 2014 capital spending from $45 million to
approximately $95 million to reflect the purchase of two currently
leased-in 767-300 freighters at the end of the third quarter.

Segment Results

CAM (Aircraft Leasing)

Significant Developments:

  • Lower pre-tax earnings from leasing operations reflect a $5.5 million
    increase in depreciation from additional and newer aircraft, including
    four Boeing 757 combis (combined passenger and main-deck cargo
    aircraft) that offer significant operating cost savings compared with
    the DC-8s they replaced. At the same time, CAM’s costs to prepare
    aircraft for redeployment to lessees, and the associated loss of lease
    revenues from CAM’s airline affiliates for those aircraft, reduced its
    second-quarter earnings by about $1.5 million.
  • At June 30, CAM owned 51 Boeing cargo aircraft in serviceable
    condition. Four CAM-owned 757 combis have entered service since the
    first one was deployed in June 2013, and three DC-8 combis were
    retired, including one that was removed at the end of the second
    quarter last year. One more 767-300 freighter was added earlier this
    year. A table reflecting cargo aircraft in service is included at the
    end of this release.
  • CAM delivered the first of two 767-200 freighters to Cargojet in June
    under a dry-lease agreement. It expects to deliver four more 767
    freighters this year, including two 767-300s to Amerijet and another
    767-200 to Cargojet this summer. Amerijet also extended for 18 months
    the dry-lease agreements for two of the three 767-200s that it
    currently leases from CAM. Finally, West Atlantic of Sweden is
    expected to lease a 767 freighter from CAM later this quarter.
  • When fully implemented, the new arrangements with Amerijet, Cargojet
    and West Atlantic are expected to expand the number of CAM aircraft
    leased to external customers from 21 to 25.

ACMI Services

Significant Developments:

  • A pre-tax profit in the second quarter contrasts with losses of $9
    million a year ago and $7 million in the first quarter of this year.
    Principal factors were reductions in personnel costs including pension
    expense, fewer heavy maintenance checks than in the prior periods,
    stronger results from combi operations for the U.S. Military, and
    lower lease costs compared with the second quarter last year.
  • ACMI block hours decreased 6 percent compared with the prior-year
    quarter, principally reflecting reduced operations for DHL in the
    Mideast that ended early this year.

Other Activities

  • A $1.5 million increase in pre-tax earnings was driven largely by a
    $5.8 million gain in revenues from external customers at AMES. They
    also supported CAM’s efforts to prepare its freighters during the
    second quarter for new dry lease assignments. A new two-bay, 105,000
    square foot hangar opened in Wilmington in June, which will support
    AMES’s growth.

Outlook

ATSG now projects that its Adjusted EBITDA for 2014 will exceed $170
million, with final results for the year dependent on its ability to
continue to deploy its aircraft.

“The broad interest in our aircraft that we noted in May has persisted
into the summer,” Hete said. “We expect our cash flow this year to
continue to benefit from operating gains from additional aircraft
leases, plus reduced pension funding obligations. As we deploy more
aircraft under multi-year customer arrangements, we have also
demonstrated our confidence in the cash-generating power of the business
through a Board authorization for share repurchase flexibility. We now
have the option to choose from a wide range of non-exclusive capital
allocation alternatives, mindful of the interests of our shareholders
for long-term growth, a strong balance sheet, and optimal returns on
their investments.”

Conference Call

ATSG will host a conference call on August 6, 2014, at 10:00 a.m.
Eastern time to review its financial results for the second quarter of
2014. Participants should dial 888-895-5479 and international
participants should dial 847-619-6250 ten minutes before the scheduled
start of the call and ask for conference pass code 37765304. The
call will also be webcast live (listen-only mode) via www.atsginc.com.

A replay of the conference call will be available by phone on August 6,
2014, beginning at 2:00 p.m. and continuing through August 13, 2014, at
(888) 843-7419 (international callers 630-652-3042); use pass code 37765304#.
The webcast replay will remain available via www.atsginc.com
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.

 

 

AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share data)

 

 

 

 

 

 

Three Months Ended

Six Months Ended

June 30,

June 30,

2014

 

2013

2014

 

2013

REVENUES

$

149,618

$

138,904

$

293,211

$

282,183

 

OPERATING EXPENSES

Salaries, wages and benefits

40,895

41,964

83,960

85,273

Maintenance, materials and repairs

23,168

25,005

48,047

47,139

Depreciation and amortization

27,142

21,765

52,121

42,685

Fuel

14,014

12,440

26,274

26,801

Rent

6,924

6,791

14,234

13,570

Travel

4,419

4,772

8,992

9,499

Landing and ramp

2,576

1,972

5,314

6,037

Insurance

1,573

1,396

2,778

2,907

Other operating expenses

10,790

 

8,630

 

19,538

 

17,690

 

131,501

124,735

261,258

251,601

 

 

 

 

 

 

 

 

OPERATING INCOME

18,117

14,169

31,953

30,582

OTHER INCOME (EXPENSE)

Interest income

24

18

43

39

Interest expense

(3,481

)

(3,554

)

(7,304

)

(6,686

)

Net gain on derivative instruments

31

 

452

 

330

 

742

 

(3,426

)

(3,084

)

(6,931

)

(5,905

)

 

 

 

 

 

 

 

 

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

14,691

11,085

25,022

24,677

INCOME TAX EXPENSE

(5,393

)

(4,170

)

(9,202

)

(9,261

)

 

 

 

 

 

 

 

 

EARNINGS FROM CONTINUING OPERATIONS

9,298

6,915

15,820

15,416

 

EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX

211

 

(1

)

422

 

(2

)

NET EARNINGS

$

9,509

 

$

6,914

 

$

16,242

 

$

15,414

 

 

EARNINGS PER SHARE – Basic

Continuing operations

$

0.14

 

$

0.11

 

$

0.25

 

$

0.24

 

Discontinued operations

0.01

 

 

 

 

NET EARNINGS PER SHARE

$

0.15

 

$

0.11

 

$

0.25

 

$

0.24

 

 

EARNINGS PER SHARE – Diluted

Continuing operations

$

0.14

 

$

0.11

 

$

0.24

 

$

0.24

 

Discontinued operations

0.01

 

 

0.01

 

 

NET EARNINGS PER SHARE

$

0.15

 

$

0.11

 

$

0.25

 

$

0.24

 

 

WEIGHTED AVERAGE SHARES

Basic

64,285

 

64,050

 

64,217

 

63,931

 

Diluted

65,207

 

64,859

 

65,174

 

64,692

 

 

 

AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

 

 

 

 

 

June 30,

December 31,

2014

2013

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

23,763

$

31,699

Accounts receivable, net of allowance of $863 in 2014 and $717 in
2013

57,126

52,247

Inventory

9,777

9,050

Prepaid supplies and other

12,810

9,730

Deferred income taxes

13,957

13,957

Aircraft and engines held for sale

1,015

 

2,995

 

TOTAL CURRENT ASSETS

118,448

119,678

 

Property and equipment, net

809,810

838,172

Other assets

38,214

21,143

Pension assets, net of obligations

18,862

14,855

Intangibles

4,755

4,896

Goodwill

34,395

 

34,395

 

TOTAL ASSETS

$

1,024,484

 

$

1,033,139

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

33,971

$

34,818

Accrued salaries, wages and benefits

21,061

23,163

Accrued expenses

10,121

9,695

Current portion of debt obligations

24,027

23,721

Unearned revenue

9,487

 

8,733

 

TOTAL CURRENT LIABILITIES

98,667

100,130

 

Long term debt

328,103

360,794

Post-retirement obligations

29,985

30,638

Other liabilities

64,134

62,740

Deferred income taxes

118,335

109,869

 

STOCKHOLDERS’ EQUITY:

Preferred stock, 20,000,000 shares authorized, including 75,000
Series A Junior Participating Preferred Stock

Common stock, par value $0.01 per share; 75,000,000 shares
authorized; 64,939,895 and 64,618,305 shares issued and outstanding
in 2014 and 2013, respectively

649

646

Additional paid-in capital

526,023

524,953

Accumulated deficit

(110,571

)

(126,813

)

Accumulated other comprehensive loss

(30,841

)

(29,818

)

TOTAL STOCKHOLDERS’ EQUITY

385,260

 

368,968

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,024,484

 

$

1,033,139

 

 

 

 

 

 

AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES

PRE-TAX EARNINGS AND ADJUSTED PRE-TAX EARNINGS SUMMARY

FROM CONTINUING OPERATIONS

NON-GAAP RECONCILIATION

(In thousands)

 

 

Three Months Ended

Six Months Ended

June 30,

June 30,

2014

 

2013

2014

 

2013

Revenues

CAM

$

40,590

$

39,362

$

81,225

$

78,331

ACMI Services

Airline services

88,657

89,920

176,164

183,077

Reimbursables

22,647

 

16,684

 

43,736

 

34,843

 

Total ACMI Services

111,304

106,604

219,900

217,920

Other Activities

36,493

 

26,951

 

63,301

 

53,205

 

Total Revenues

188,387

172,917

364,426

349,456

Eliminate internal revenues

(38,769

)

(34,013

)

(71,215

)

(67,273

)

Customer Revenues

$

149,618

 

$

138,904

 

$

293,211

 

$

282,183

 

 

Pre-tax Earnings from Continuing Operations

CAM, inclusive of interest expense

10,667

17,214

25,107

34,087

ACMI Services

309

(9,093

)

(6,737

)

(14,497

)

Other Activities

4,108

2,607

7,125

4,788

Net, unallocated interest expense

(424

)

(95

)

(803

)

(443

)

Net gain on derivative instruments

31

 

452

 

330

 

742

 

Total Pre-tax Earnings

$

14,691

$

11,085

$

25,022

$

24,677

 

Adjustments to Pre-tax Earnings

Less net gain on derivative instruments

(31

)

(452

)

(330

)

(742

)

Adjusted Pre-tax Earnings

$

14,660

 

$

10,633

 

$

24,692

 

$

23,935

 

 

Adjusted Pre-tax Earnings is defined as Earnings from Continuing
Operations Before Income Taxes less derivative gains. Management uses
Adjusted Pre-tax Earnings from Continuing Operations to assess the
performance of its operating results among periods. Adjusted Pre-tax
earnings from Continuing Operations is a non-GAAP financial measure and
should not be considered an alternative to Earnings from Continuing
Operations Before Income Taxes or any other performance measure derived
in accordance with GAAP.

 

 

AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES

UNAUDITED ADJUSTED EARNINGS FROM CONTINUING OPERATIONS BEFORE
INTEREST, TAXES, DEPRECIATION AND AMORTIZATION

NON-GAAP RECONCILIATION

(In thousands)

 

 

 

 

 

 

Three Months Ended

Six Months Ended

June 30,

June 30,

2014

 

2013

2014

 

2013

 

Earnings from Continuing Operations Before Income Taxes

$

14,691

$

11,085

$

25,022

$

24,677

Interest Income

(24

)

(18

)

(43

)

(39

)

Interest Expense

3,481

3,554

7,304

6,686

Depreciation and Amortization

27,142

 

21,765

 

52,121

 

42,685

 

EBITDA from Continuing Operations

$

45,290

$

36,386

$

84,404

$

74,009

Less net gain on derivative instruments

(31

)

(452

)

(330

)

(742

)

 

 

 

 

 

 

 

 

Adjusted EBITDA from Continuing Operations

$

45,259

 

$

35,934

 

$

84,074

 

$

73,267

 

 

EBITDA and Adjusted EBITDA from Continuing Operations are non-GAAP
financial measures and should not be considered as alternatives to
Earnings from Continuing Operations Before Income Taxes or any other
performance measure derived in accordance with GAAP.

EBITDA from Continuing Operations is defined as Earnings from Continuing
Operations Before Income Taxes plus net interest expense, depreciation,
and amortization expense. Adjusted EBITDA from Continuing Operations is
defined as EBITDA from Continuing Operations less derivative gains.

Management uses EBITDA from Continuing Operations as an indicator of the
cash-generating performance of the operations of the Company. Management
uses Adjusted EBITDA from Continuing Operations to assess the
performance of its operating results among periods. EBITDA and 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.

 

 

AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES

IN-SERVICE CARGO AIRCRAFT FLEET

 

Aircraft Types

 

 

 

 

December 31,

 

 

June 30,

 

 

December 31,

2013

2014

2014 Projected

 

 

Operating

 

 

Operating

 

 

Operating

Total

Owned

Lease

Total

Owned

Lease

Total

Owned

Lease

B767-200

40

36

4

40

36

4

40

36

4

B767-300

8

6

2

9

7

2

9

9

B757-200

4

4

4

4

4

4

B757 Combi

3

3

4

4

4

4

Total Aircraft In-Service

55

49

6

57

51

6

57

53

4

 

Owned Aircraft In Serviceable Condition

December 31,

June 30,

December 31,

2013

2014

2014 Projected

ATSG airlines

29

26

27-28

External customers

20

21

25-26

Staging/Unassigned

4

49

51

53

 

Article source: http://finance.yahoo.com/news/atsg-reports-strong-second-quarter-201600446.html