Astrophysics, Inc. Awarded $6 Million United States Navy Contract

CITY OF INDUSTRY, CA–(Marketwired – Nov 4, 2014) – Astrophysics, Inc., a leader in conventional and air cargo security X-ray inspection systems, today announced it has won a $6 million contract from the United States Navy to help protect entry control points deployed at seaports around the world. The company’s advanced X-ray solutions will be used to screen visitors and personnel before they embark and accelerate offloading processes.

Astrophysics was selected from a large field of competitors to fulfill the Navy XRBS program’s five-year contract to supply and deploy ruggedized X-ray inspection systems. Because Astrophysics systems are engineered and manufactured in the U.S., the company is able to customize and ship its advanced X-ray solutions quickly, making Astrophysics an ideal option for the U.S. Navy as well as the TSA and others.

“Astrophysics is known around the world for market-leading screening solutions,” said François Zayek, CEO of Astrophysics. “We have a long history of helping protect the men and women that protect our great nation and we are pleased to announce this latest contract.”

The Navy selected Astrophysics’ XIS-7858 system which features a standard 180kV generator for heightened penetration and enhanced object recognition. The XIS-7858 is the ideal screening solution for any location in need of increased screening dimensions within a consolidated space. The Indefinite Delivery, Indefinite Quantity (IDIQ) contract was issued by the Navy XRBS program which is managed by the Crane Division out of Indiana.

For more information about Astrophysics solutions, please visit us at Astrophysicsinc.com.

About Astrophysics, Inc.
Astrophysics offers advanced X-ray security screening systems that help operators detect and identify weapons and explosives in civil and military markets worldwide. Astrophysics exports to over 60 countries and builds all its products domestically in Southern California. The corporate headquarters located in the City of Industry, California is the manufacturing facility for air cargo, conventional and mobile solutions. A second facility in Ontario, California is the primary location for research and development, and the high energy cargo and portal systems.

The company employs over 140 employees in the U.S., and has affiliate companies globally. For more information about Astrophysics, visit www.astrophysicsinc.com.

Transport Canada Vows To Fix Air Cargo 'Security Gaps'

OTTAWA – Acknowledging “security gaps” that could leave airliners vulnerable to a terrorist attack, the federal government is moving ahead with a new system that would allow shippers to screen cargo before it gets to the airport.

Transport Canada says the system would bring air cargo screening up to the standards of key trading partners and result in a net benefit to Canadians of $202 million over 10 years.

It would also represent a seismic shift in the way cargo is processed, entrusting known shippers with security screening that is now largely done by air carriers.

In Canada, about half of all cargo that moves by air is carried on passenger flights — totalling more than 400 million kilograms annually.

In a regulatory plan, quietly published Saturday, the government says relying on carriers to screen all cargo for explosive devices would be “slow and impractical” and result in bottlenecks, delays and additional costs.

“Shippers need to be given the authority to screen their own goods,” the proposal says.

“In order to do so, there must be a regulatory framework and program in place for the maintenance and enforcement of air cargo security that international partners will recognize.”

The NDP and Liberal transport critics say that while there is a role for industry in air cargo security, the government must ensure proper oversight and accountability.

In his 2010 report on the Air India terrorist bombing, former Supreme Court justice John Major recommended urgent introduction of comprehensive air cargo examination.

Transport Canada has been consulting and drafting plans for years, mindful of threats like the October 2010 episode in which explosive devices were found in air cargo headed to the United States from Yemen.

“Civil aviation remains a favoured target of terrorist attacks,” says the newly published plan.

“Airports, aircraft and passengers offer the kind of high-profile targets that terrorists seek, and damage to a nation’s civil aviation sector can cripple a nation’s economy and sense of security.”

The planned amendments would allow shippers, cargo companies, warehouse operators and trucking firms to take part in the program on a voluntary basis. Participation would require them to invest in secure facilities, do personnel background checks, ensure a secure chain of custody for goods, and implement training, screening and record-keeping.

The costs of participating would be offset by the benefits of avoiding screening fees and delays, says Transport Canada.

The department and other federal agencies have earmarked $17.5 million for inspector training, inspections, processing program applications and other administrative functions — though it appears the money would come from existing budgets.

Opposition MPs greeted the new plan cautiously, pointing out shortcomings with Transport Canada’s oversight of rail industry safety.

The move toward better air cargo screening and efficiency is welcome, said NDP transport critic Hoang Mai.

“The main question that remains is how it will be enforced,” he added. “That’s something that we will definitely keep a close eye on.”

Liberal transport critic David McGuinty said he’s wary of the relationship between Transport Canada and the industries it regulates.

“It seems very, very close. In fact sometimes it seems downright cosy.”

Follow @JimBronskill on Twitter

Gading Sari acquisition fits DRB-HICOM plan

Malaysia’s soccer legend, the late Mokhtar Dahari, is today honoured by internet giant Google, with a “Google Doodle” bearing his image to mark his birthday.

Mokhtar, who died in July 1991, would have turned 61 today.

Google Doodle is a modified version of the Google logo on its search homepage, reminding surfers of important dates, often… …

Feds to let shippers screen own air cargo despite ‘security gaps’

OTTAWA – Acknowledging “security gaps” that could leave airliners vulnerable to a terrorist attack, the federal government is moving ahead with a new system that would allow shippers to screen cargo before it gets to the airport.

Transport Canada says the system would bring air cargo screening up to the standards of key trading partners and result in a net benefit to Canadians of $202 million over 10 years.

It would also represent a seismic shift in the way cargo is processed, entrusting known shippers with security screening that is now largely done by air carriers.

In Canada, about half of all cargo that moves by air is carried on passenger flights – totalling more than 400 million kilograms annually.

In a regulatory plan, quietly published Saturday, the government says relying on carriers to screen all cargo for explosive devices would be “slow and impractical” and result in bottlenecks, delays and additional costs.

“Shippers need to be given the authority to screen their own goods,” the proposal says.

“In order to do so, there must be a regulatory framework and program in place for the maintenance and enforcement of air cargo security that international partners will recognize.”

The NDP and Liberal transport critics say that while there is a role for industry in air cargo security, the government must ensure proper oversight and accountability.

In his 2010 report on the Air India terrorist bombing, former Supreme Court justice John Major recommended urgent introduction of comprehensive air cargo examination.

Transport Canada has been consulting and drafting plans for years, mindful of threats like the October 2010 episode in which explosive devices were found in air cargo headed to the United States from Yemen.

“Civil aviation remains a favoured target of terrorist attacks,” says the newly published plan.

“Airports, aircraft and passengers offer the kind of high-profile targets that terrorists seek, and damage to a nation’s civil aviation sector can cripple a nation’s economy and sense of security.”

The planned amendments would allow shippers, cargo companies, warehouse operators and trucking firms to take part in the program on a voluntary basis. Participation would require them to invest in secure facilities, do personnel background checks, ensure a secure chain of custody for goods, and implement training, screening and record-keeping.

The costs of participating would be offset by the benefits of avoiding screening fees and delays, says Transport Canada.

The department and other federal agencies have earmarked $17.5 million for inspector training, inspections, processing program applications and other administrative functions – though it appears the money would come from existing budgets.

Opposition not sold on plan

Opposition MPs greeted the new plan cautiously, pointing out shortcomings with Transport Canada’s oversight of rail industry safety.

The move toward better air cargo screening and efficiency is welcome, said NDP transport critic Hoang Mai.

“The main question that remains is how it will be enforced,” he added. “That’s something that we will definitely keep a close eye on.”

Liberal transport critic David McGuinty said he’s wary of the relationship between Transport Canada and the industries it regulates.

“It seems very, very close. In fact sometimes it seems downright cosy.”

© The Canadian Press, 2014

Canada plans air cargo self-screening

By Jim Bronskill, The Canadian Press

OTTAWA – Acknowledging “security gaps” that could leave airliners vulnerable to a terrorist attack, the federal government is moving ahead with a new system that would allow shippers to screen cargo before it gets to the airport.

Transport Canada says the system would bring air cargo screening up to the standards of key trading partners and result in a net benefit to Canadians of $202 million over 10 years.

It would also represent a seismic shift in the way cargo is processed, entrusting known shippers with security screening that is now largely done by air carriers.

In Canada, about half of all cargo that moves by air is carried on passenger flights — totalling more than 400 million kilograms annually.

In a regulatory plan, quietly published Saturday, the government says relying on carriers to screen all cargo for explosive devices would be “slow and impractical” and result in bottlenecks, delays and additional costs.

“Shippers need to be given the authority to screen their own goods,” the proposal says.

“In order to do so, there must be a regulatory framework and program in place for the maintenance and enforcement of air cargo security that international partners will recognize.”

The NDP and Liberal transport critics say that while there is a role for industry in air cargo security, the government must ensure proper oversight and accountability.

In his 2010 report on the Air India terrorist bombing, former Supreme Court justice John Major recommended urgent introduction of comprehensive air cargo examination.

Transport Canada has been consulting and drafting plans for years, mindful of threats like the October 2010 episode in which explosive devices were found in air cargo headed to the United States from Yemen.

“Civil aviation remains a favoured target of terrorist attacks,” says the newly published plan.

“Airports, aircraft and passengers offer the kind of high-profile targets that terrorists seek, and damage to a nation’s civil aviation sector can cripple a nation’s economy and sense of security.”

The planned amendments would allow shippers, cargo companies, warehouse operators and trucking firms to take part in the program on a voluntary basis. Participation would require them to invest in secure facilities, do personnel background checks, ensure a secure chain of custody for goods, and implement training, screening and record-keeping.

The costs of participating would be offset by the benefits of avoiding screening fees and delays, says Transport Canada.

The department and other federal agencies have earmarked $17.5 million for inspector training, inspections, processing program applications and other administrative functions — though it appears the money would come from existing budgets.

Opposition MPs greeted the new plan cautiously, pointing out shortcomings with Transport Canada’s oversight of rail industry safety.

The move toward better air cargo screening and efficiency is welcome, said NDP transport critic Hoang Mai.

“The main question that remains is how it will be enforced,” he added. “That’s something that we will definitely keep a close eye on.”

Liberal transport critic David McGuinty said he’s wary of the relationship between Transport Canada and the industries it regulates.

“It seems very, very close. In fact sometimes it seems downright cosy.”

Follow @JimBronskill on Twitter

ATSG Reports Strong Third 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 September 30, 2014.

For the third quarter of 2014:

  • Pre-tax earnings from continuing operations increased 25 percent to
    $15.6 million driven by a $7.0 million improvement in airline
    profitability compared with a year ago.
  • Net earnings from continuing operations increased 23 percent to $9.6
    million, or 15 cents per share, from $7.8 million, or 12 cents per
    share in the third quarter of 2013. Operating loss carryforwards for
    U.S. federal income tax purposes offset much of the company’s federal
    tax liabilities. ATSG does not expect to pay significant federal
    income taxes until 2016 or later.
  • Revenues were $138.4 million, 2 percent lower than a year ago.
    Excluding revenues from reimbursable expenses, revenues decreased $4.8
    million, or 4 percent. Loss of revenues from Mideast operations offset
    additional revenues from aircraft dry leases.
  • Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and
    Amortization, also adjusted for the effect of derivative transactions)
    increased by 11 percent to $44.6 million. Adjusted EBITDA is a
    non-GAAP financial measure, defined and reconciled to comparable GAAP
    results in separate tables at the end of this release.

ATSG also said it has reached an agreement in principle with DHL,
setting a framework for multi-year commercial agreements covering 767
freighter leases and operating services that ATSG’s businesses currently
provide in support of DHL’s U.S. network.

The framework anticipates that DHL will extend the leases for 13 Boeing
767 freighters, and execute new leases for at least two more freighters
that currently support DHL under short-term arrangements. The new leases
will commence next year on or before March 31, 2015, and all of the
freighter leases with DHL will run through March 2019. Also, ATSG’s
businesses will operate and maintain those aircraft through March 2019
under an amendment to the current CMI (Crew, Maintenance and Insurance)
Agreement that would otherwise expire in March 2015. Management expects
to execute definitive agreements before the end of 2014.

Joe Hete, President and Chief Executive Officer of ATSG, said, “After
many months of discussions, I’m pleased to say that both we and DHL have
completed the outline for a relationship that preserves our role as
DHL’s principal source of airlift in North America for another four
years. Overall, our work for DHL will continue much as it does today,
with 767 freighters leased from our Cargo Aircraft Management
subsidiary, operated by ABX Air crews and maintained by AMES
technicians, supporting the majority of the air freight that moves
through DHL’s North American network each day. We look forward to
providing more details on this important extension of our eleven-year
relationship with DHL when final agreements are completed.”

Hete also said that ATSG’s third-quarter results show early returns from
deploying more midsize cargo aircraft with dry-lease customers, and
continued progress in restoring the profitability of ATSG’s airlines.

“We have entered the fourth quarter with positive momentum, both from
deployments under dry lease agreements we completed in May, and
contracts for expanded ad-hoc operations during the holiday season in
the fourth quarter. We expect all of our available freighter aircraft to
be deployed with key customers during the holiday shipping peak. Looking
out into 2015, we find our customers and prospects are now more
confident about addressing their needs for additional freighter capacity
next year, both for multi-year dry leases as well as shorter-term ACMI
arrangements.”

For the first nine months of 2014, ATSG earned $25.4 million, or $0.39
per share diluted from continuing operations, up 9 percent from the
first nine months of 2013. Revenues increased 2 percent to $431.7
million. Adjusted EBITDA for the first nine months of 2014 was $128.7
million, up 14 percent from the same period in 2013.

Capital spending for the first nine months of 2014 was $90.9 million,
including $57.8 million to acquire and modify aircraft. ATSG purchased
two 767-300 freighters in September that it had previously leased from a
third party. Capital spending for the full year of 2014 is projected to
be approximately $95 million.

Segment Results

CAM (Aircraft Leasing)

Significant Developments:

  • CAM’s third-quarter revenues from external customers increased $2.9
    million versus a year ago. Pre-tax earnings reflect the benefit of
    those additional revenues, offset by a $3.0 million increase in
    depreciation from additional and newer aircraft placed in service
    since the end of the third quarter last year and by costs to prepare
    aircraft for redeployment to lessees.
  • At September 30, 2014, CAM owned 53 Boeing cargo aircraft in
    serviceable condition, including two 767-300 freighters purchased at
    the end of the quarter. One CAM-owned 757 combi and one other 767-300
    freighter were added in the first quarter. A table reflecting cargo
    aircraft in service is included at the end of this release.
  • CAM delivered three 767 freighters to dry-lease customers Amerijet and
    Cargojet during the third quarter under agreements signed with each
    company in May. The three are in addition to one 767 freighter
    delivered to Cargojet in June. One other 767 freighter now operating
    in Europe is expected to be converted to a dry lease in 2015.

ACMI Services

Significant Developments:

  • 2013 revenues from airline services included revenues for operating
    three 767 aircraft and related crews in DHL’s network in the Mideast.
    That assignment ended in February 2014. Third-quarter revenues from
    combi operations for the U.S. Military exceeded year-ago levels.
  • Pre-tax profitability improved sharply because third-quarter airline
    operating expenses, excluding reimbursable expense, declined $15.9
    million. Principal factors were reductions in employee wages and
    benefit costs due to workforce reductions and lower pension expense,
    lower employee travel costs and aircraft landing fees, and lower costs
    for newer 757 combi aircraft, plus lower unreimbursed maintenance
    expense.
  • Since May, DHL has ended short-term lease agreements with ABX Air for
    three CAM-owned 767s that ABX Air had been operating in DHL’s U.S.
    market. Two other DHL-owned 767s that ABX Air has leased and operated
    for DHL in the U.S. will be returned to DHL near the end of the year.
    An additional two DHL-owned 767s will be returned during the first
    quarter of 2015.
  • Third-quarter ACMI block hours were flat with a year ago, excluding
    those from Mideast operations in the prior-year period.
  • Two CAM freighters leased to ATSG’s airlines are underutilized,
    compared with four a year ago and five at the end of the first quarter
    this year. All available aircraft are expected to be in operation for
    customers during the fourth-quarter peak holiday season, which is
    expected to yield a pre-tax profit for the segment for the 2014 fourth
    quarter and second half.

Other Activities

Significant Developments:

  • Revenues from external customers were $15.4 million, up 9 percent.
    Pre-tax earnings declined primarily because of higher personnel costs,
    including more ramp-up costs for the expanded Wilmington hangar
    facilities and higher post-retirement benefits.

Outlook

ATSG now projects that its Adjusted EBITDA from Continuing Operations
for 2014 will be approximately $175 million. Final results for the year
will reflect ATSG’s ability to deploy and operate all of its available
aircraft efficiently during peak season, and to support customers with
additional logistical and technical services.

President and CEO Joe Hete also noted that the agreement in principle
with DHL is non-binding, and is subject to the negotiation and execution
of definitive agreements. In current form, the framework will slightly
reduce monthly lease rates per aircraft to ATSG while expanding the
number of 767 freighters that DHL leases from CAM and extending all
lease terms through March 2019.

Hete added that the proposed changes to the DHL leases and CMI agreement
beginning in April 2015 would negatively impact Adjusted EBITDA from
Continuing Operations by $5 million to $10 million on an annualized
basis. ATSG’s preliminary projections for 2015, however, indicate that
its Adjusted EBITDA from Continuing Operations will increase versus 2014.

Hete said, “This new framework with DHL would provide us with a
four-year customer commitment for more than a third of our 767 fleet,
while providing us with opportunities to improve our ACMI Services
margins through greater efficiency and even better performance. It also
would preserve and extend our position as DHL’s principal air network
provider in the United States, and could open more opportunities to
support DHL’s networks elsewhere in the world.”

Conference Call

ATSG will host a conference call on Nov. 6, 2014, at 10:00 a.m. Eastern
time to review its financial results for the third 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 38393602. 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 Nov. 6,
2014, beginning at 2:00 p.m. and continuing through Nov. 13, 2014, at
(888) 843-7419 (international callers (630) 652-3042); use pass code 38393602#.
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, the company’s execution of definitive agreements on substantially
the terms outlined in the non-binding agreement in principle with DHL,
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

Nine Months Ended

September 30,

September 30,

2014

 

2013

2014

 

2013

REVENUES

$

138,443

$

140,877

$

431,654

$

423,060

 

OPERATING EXPENSES

Salaries, wages and benefits

39,096

41,498

123,056

126,771

Maintenance, materials and repairs

17,082

24,644

65,129

71,783

Depreciation and amortization

26,307

23,392

78,428

66,077

Fuel

14,059

11,356

40,333

38,157

Rent

6,689

6,958

20,923

20,528

Travel

4,189

4,409

13,181

13,908

Landing and ramp

2,450

2,227

7,764

8,264

Insurance

1,109

1,559

3,887

4,466

Other operating expenses

9,175

 

8,224

 

28,713

 

25,914

 

120,156

124,267

381,414

375,868

 

 

 

 

 

 

 

 

OPERATING INCOME

18,287

16,610

50,240

47,192

OTHER INCOME (EXPENSE)

Interest income

23

17

66

56

Interest expense

(3,309

)

(3,814

)

(10,613

)

(10,500

)

Net gain on derivative instruments

639

 

(317

)

969

 

425

 

(2,647

)

(4,114

)

(9,578

)

(10,019

)

 

 

 

 

 

 

 

 

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

15,640

12,496

40,662

37,173

INCOME TAX EXPENSE

(6,045

)

(4,697

)

(15,247

)

(13,958

)

 

 

 

 

 

 

 

 

EARNINGS FROM CONTINUING OPERATIONS

9,595

7,799

25,415

23,215

 

EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX

312

 

 

734

 

(2

)

NET EARNINGS

$

9,907

 

$

7,799

 

$

26,149

 

$

23,213

 

 

EARNINGS PER SHARE – Basic

Continuing operations

$

0.15

 

$

0.12

 

$

0.40

 

$

0.36

 

Discontinued operations

 

 

0.01

 

 

NET EARNINGS PER SHARE

$

0.15

 

$

0.12

 

$

0.41

 

$

0.36

 

 

EARNINGS PER SHARE – Diluted

Continuing operations

$

0.15

 

$

0.12

 

$

0.39

 

$

0.36

 

Discontinued operations

 

 

0.01

 

 

NET EARNINGS PER SHARE

$

0.15

 

$

0.12

 

$

0.40

 

$

0.36

 

 

WEIGHTED AVERAGE SHARES

Basic

64,286

 

64,052

 

64,240

 

63,972

 

Diluted

65,271

 

65,036

 

65,207

 

64,807

 

 

 

 

AIR TRANSPORT SERVICES GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

 

 

 

 

 

September 30,

December 31,

2014

2013

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

33,442

$

31,699

Accounts receivable, net of allowance of $843 in 2014 and $717 in
2013

36,392

52,247

Inventory

11,936

9,050

Prepaid supplies and other

12,023

9,730

Deferred income taxes

13,957

13,957

Aircraft and engines held for sale

923

 

2,995

 

TOTAL CURRENT ASSETS

108,673

119,678

 

Property and equipment, net

850,715

838,172

Other assets

29,288

21,143

Pension assets, net of obligations

20,895

14,855

Intangibles

4,685

4,896

Goodwill

34,395

 

34,395

 

TOTAL ASSETS

$

1,048,651

 

$

1,033,139

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

29,803

$

34,818

Accrued salaries, wages and benefits

26,219

23,163

Accrued expenses

9,390

9,695

Current portion of debt obligations

24,184

23,721

Unearned revenue

11,692

 

8,733

 

TOTAL CURRENT LIABILITIES

101,288

100,130

 

Long term debt

347,447

360,794

Post-retirement obligations

24,833

30,638

Other liabilities

56,653

62,740

Deferred income taxes

123,890

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

526,845

524,953

Accumulated deficit

(100,664

)

(126,813

)

Accumulated other comprehensive loss

(32,290

)

(29,818

)

TOTAL STOCKHOLDERS’ EQUITY

394,540

 

368,968

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,048,651

 

$

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

Nine Months Ended

September 30,

September 30,

2014

 

2013

2014

 

2013

Revenues

CAM

$

40,226

$

40,089

$

121,451

$

118,420

ACMI Services

Airline services

84,172

93,116

260,336

276,193

Reimbursables

18,681

 

16,313

 

62,417

 

51,156

 

Total ACMI Services

102,853

109,429

322,753

327,349

Other Activities

42,055

 

30,037

 

105,356

 

83,242

 

Total Revenues

185,134

179,555

549,560

529,011

Eliminate internal revenues

(46,691

)

(38,678

)

(117,906

)

(105,951

)

Customer Revenues

$

138,443

 

$

140,877

 

$

431,654

 

$

423,060

 

 

Pre-tax Earnings from Continuing Operations

CAM, inclusive of interest expense

13,574

15,893

38,681

49,980

ACMI Services

(126

)

(7,113

)

(6,863

)

(21,610

)

Other Activities

2,010

4,400

9,135

9,188

Net, unallocated interest expense

(457

)

(367

)

(1,260

)

(810

)

Net gain (loss) on derivative instruments

639

 

(317

)

969

 

425

 

Total Pre-tax Earnings

$

15,640

$

12,496

$

40,662

$

37,173

 

Adjustments to Pre-tax Earnings

Less net (gain) loss on derivative instruments

(639

)

317

 

(969

)

(425

)

Adjusted Pre-tax Earnings

$

15,001

 

$

12,813

 

$

39,693

 

$

36,748

 

 

Adjusted Pre-tax Earnings is defined as Earnings from Continuing
Operations Before Income Taxes less derivative gains or losses.
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

Nine Months Ended

September 30,

September 30,

2014

 

2013

2014

 

2013

 

Earnings from Continuing Operations Before Income Taxes

$

15,640

$

12,496

$

40,662

$

37,173

Interest Income

(23

)

(17

)

(66

)

(56

)

Interest Expense

3,309

3,814

10,613

10,500

Depreciation and Amortization

26,307

 

23,392

 

78,428

 

66,077

 

EBITDA from Continuing Operations

$

45,233

$

39,685

$

129,637

$

113,694

Less net (gain) loss on derivative instruments

(639

)

317

(969

)

(425

)

 

 

 

 

 

 

 

 

Adjusted EBITDA from Continuing Operations

$

44,594

 

$

40,002

 

$

128,668

 

$

113,269

 

 

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 or
losses.

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,

 

 

September 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

38

36

2

B767-300

8

6

2

9

9

10

9

1

B757-200

4

4

4

4

4

4

B757 Combi

3

3

4

4

4

4

Total Aircraft In-Service

55

49

6

57

53

4

56

53

3

 

Owned Aircraft In Serviceable Condition

December 31,

September 30,

December 31,

2013

2014

2014 Projected

 

ATSG airlines

29

28

27-28

External customers

20

24

24-25

Staging/Unassigned

1

1

49

53

53

 

Canada plans air cargo self-screening, opposition MPs stress oversight

Acknowledging “security gaps” that could leave airliners vulnerable to a terrorist attack, the federal government is moving ahead with a new system that would allow shippers to screen cargo before it gets to the airport.

Transport Canada says the system would bring air cargo screening up to the standards of key trading partners and result in a net benefit to Canadians of $202 million over 10 years.

It would also represent a seismic shift in the way cargo is processed, entrusting known shippers with security screening that is now largely done by air carriers.

In Canada, about half of all cargo that moves by air is carried on passenger flights — totalling more than 400 million kilograms annually.

In a regulatory plan, quietly published Saturday, the government says relying on carriers to screen all cargo for explosive devices would be “slow and impractical” and result in bottlenecks, delays and additional costs.

“Shippers need to be given the authority to screen their own goods,” the proposal says.

“In order to do so, there must be a regulatory framework and program in place for the maintenance and enforcement of air cargo security that international partners will recognize.”

The NDP and Liberal transport critics say that while there is a role for industry in air cargo security, the government must ensure proper oversight and accountability.

In his 2010 report on the Air India terrorist bombing, former Supreme Court justice John Major recommended urgent introduction of comprehensive air cargo examination.

Transport Canada has been consulting and drafting plans for years, mindful of threats like the October 2010 episode in which explosive devices were found in air cargo headed to the United States from Yemen.

“Civil aviation remains a favoured target of terrorist attacks,” says the newly published plan.

“Airports, aircraft and passengers offer the kind of high-profile targets that terrorists seek, and damage to a nation’s civil aviation sector can cripple a nation’s economy and sense of security.”

The planned amendments would allow shippers, cargo companies, warehouse operators and trucking firms to take part in the program on a voluntary basis. Participation would require them to invest in secure facilities, do personnel background checks, ensure a secure chain of custody for goods, and implement training, screening and record-keeping.

The costs of participating would be offset by the benefits of avoiding screening fees and delays, says Transport Canada.

The department and other federal agencies have earmarked $17.5 million for inspector training, inspections, processing program applications and other administrative functions — though it appears the money would come from existing budgets.

Opposition MPs greeted the new plan cautiously, pointing out shortcomings with Transport Canada’s oversight of rail industry safety.

The move toward better air cargo screening and efficiency is welcome, said NDP transport critic Hoang Mai.

“The main question that remains is how it will be enforced,” he added. “That’s something that we will definitely keep a close eye on.”

Liberal transport critic David McGuinty said he’s wary of the relationship between Transport Canada and the industries it regulates.

“It seems very, very close. In fact sometimes it seems downright cosy.”

IBS Software is the Customer Choice for 'IT Provider of the Year 2014' Award

TRIVANDRUM, India, Nov. 2, 2014 (GLOBE NEWSWIRE) — via PRWEB – IBS Software has been voted as the global ‘IT Provider of the Year’ for the air cargo industry for the year 2014 through an online poll by customer airlines across the world. This is the third consecutive year that IBS Software has bagged the prestigious award. The polling was conducted by Singapore based Payload Asia, the respected industry publication for the air cargo sector. Now in its 30th year of publication, Payload Asia honors the very best in the industry every year by recognizing airlines, airports and organizations that have risen above the challenges through market adeptness, innovative products or superior strategy to excel and make a positive impact on the market.’

Over 71 companies were short-listed and 21,717 online votes cast for the Customer Choice Awards. Other popular vote winners include Turkish Cargo (Overall Carrier of the Year), All Nippon Airways (Combination Carrier of the Year), Etihad Airways (Rising Star Carrier of the Year) and Jetstar Asia (Low Cost Carrier of the Year). The awards were presented during a gala dinner and awards ceremony on 29th October in Singapore and attended by more than 200 members of the air cargo fraternity.

IBS’ iCargo, developed in collaboration with 6 leading airlines, has now emerged as the most definitive cargo management solution in the industry with over 20 leading cargo carriers adopting it to replace their legacy systems. The list includes Air Astana, All Nippon Airways, Austrian Airlines, British Airways, Jet Blue, Lufthansa Cargo, Nippon Cargo Airways, Qantas Freight, S7 Cargo, SpiceJet, South African Airways and Turkish Cargo.

Receiving the award, Sankalp Saxena, President Head of Aviation Business Services said “As a technology solution provider, no testimony is more gratifying than the unqualified endorsement of customers as the best in class for three years in a row. We see the award is a celebration of excellence and a true reflection of the difference we have made to the air cargo supply chain industry. We will continue to invest in the solution to further its competitive edge and ensure our customers stay ahead in the race at all times.”

About IBS: The IBS is a leading global provider of new generation IT solutions to the Travel, Transportation and Logistics industries. A specialist in the domain, IBS offers a range of products and services that manage mission critical operations of airlines, airports, cruise lines, tour operators and oil gas companies that help them maximize efficiency, improve revenue, manage growth, increase safety, and reduce costs. SEICMMI Level 5 assessed, ISO 9001:2008, TickIT and ISO 27001:2005 certified, IBS operates from offices in the Americas, Europe, Japan, India, Australia and the Middle East.

This article was originally distributed on PRWeb. For the original version including any supplementary images or video, visit http://www.prweb.com/releases/2014/11/prweb12293065.htm

View photo

.