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