On November 7, 2023, Air Transport Services Group Inc (ATSG, Financial) released its consolidated financial results for the third quarter ended September 30, 2023. The company reported a slight increase in revenues but a significant drop in earnings compared to the same period in 2022.
Financial Performance
ATSG reported revenues of $523 million for Q3 2023, marking a 1% increase from the same quarter in 2022. However, GAAP EPS from Continuing Operations was $0.26, down $0.42 from Q3 2022. Pretax Earnings from Continuing Operations were $24 million, a significant drop from $65 million in the same period last year. Adjusted EBITDA was $137 million, down from $163 million in Q3 2022.
Share Repurchase
ATSG repurchased 9.4 million shares since September 2022, including 5.4 million shares in the third quarter. This move indicates the company's confidence in its long-term growth prospects and commitment to returning capital to shareholders.
Company Commentary
Joe Hete, Chief Executive Officer of ATSG, commented on the results,
The third quarter started out on track with our expectations, carrying solid second-quarter momentum from our passenger airline operations into the summer. However, both macro and operational pressures throughout the latter part of the quarter materially affected our results."
Outlook for 2023
ATSG revised its 2023 outlook to reflect the current operating environment. The company now expects Adjusted EBITDA to be between $560 - $580 million, down from the previous guidance of $610 - $620 million. Adjusted EPS is projected to be between $1.50 - $1.70, down from the prior estimate of $1.85 - $2.00.
Financial Tables Summary
The company's financial tables show a detailed breakdown of revenues, operating expenses, and earnings for the third quarter and nine months ended September 30, 2023. The tables also provide a comparison with the same periods in 2022, offering a clear view of the company's financial performance and trends.
Conclusion
Despite the challenges faced in Q3 2023, ATSG remains a leading provider of medium wide-body aircraft leasing, contracted air transportation, and related services. The company's ability to adjust its outlook and strategies in response to changing market conditions demonstrates its resilience and adaptability in the face of uncertainty.
Explore the complete 8-K earnings release (here) from Air Transport Services Group Inc for further details.
