[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Air Transport Services Group, Inc. as of September 30, 2024, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, along with detailed notes [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets slightly increased to $3.884 billion, total liabilities decreased to $2.416 billion, and total stockholders' equity increased to $1.468 billion Condensed Consolidated Balance Sheet Data (in thousands) | Account | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $311,072 | $345,701 | | **Property and equipment, net** | $2,771,568 | $2,820,769 | | **Total Assets** | **$3,884,323** | **$3,882,090** | | **Total Current Liabilities** | $381,913 | $400,189 | | **Long term debt** | $1,561,874 | $1,707,572 | | **Total Liabilities** | **$2,416,084** | **$2,513,388** | | **Total Stockholders' Equity** | **$1,468,239** | **$1,368,702** | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net loss of $3.3 million for Q3 2024 and net earnings of $12.7 million for the nine months ended September 30, 2024, driven by lower revenues and higher operating expenses Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $471,253 | $523,137 | $1,445,180 | $1,553,571 | | **Operating Income** | $21,681 | $46,030 | $86,006 | $163,194 | | **Net Earnings (Loss)** | $(3,327) | $17,172 | $12,720 | $75,335 | | **Diluted EPS** | $(0.05) | $0.24 | $0.20 | $0.98 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to $399.1 million for the nine months ended September 30, 2024, while net cash used in investing activities significantly decreased, and net cash used in financing activities increased due to higher debt repayments Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $399,076 | $526,093 | | **Net Cash (Used in) Investing Activities** | $(205,665) | $(572,424) | | **Net Cash (Used in) Provided by Financing Activities** | $(202,093) | $69,782 | | **Net (Decrease) Increase in Cash** | $(8,682) | $23,451 | | **Cash at End of Period** | $44,873 | $50,585 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies and financial data, including significant customer revenue concentration, debt obligations, aircraft commitments, segment performance, and the pending merger agreement with Stonepeak - The company's primary business involves leasing aircraft (CAM) and providing contracted airline operations (ACMI Services) to the air transportation, e-commerce, and package delivery industries[21](index=21&type=chunk)[22](index=22&type=chunk) Revenue Concentration by Major Customer | Customer | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | | Amazon | 33% | 34% | | DoD | 29% | 31% | | DHL | 14% | 13% | - On May 6, 2024, the company entered into a Third Amended and Restated Air Transportation Services Agreement with Amazon's subsidiary (ASI) to operate 10 additional Boeing 767-300 aircraft provided by ASI, issuing new warrants to Amazon and modifying existing ones[46](index=46&type=chunk) - On November 3, 2024, ATSG entered into a merger agreement with affiliates of Stonepeak, under which it will be acquired for **$22.50 per share in cash** and become a privately held company, subject to stockholder and regulatory approvals[110](index=110&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a decline in revenue and earnings for the first nine months of 2024 due to lower flight operations, reduced aircraft lease revenue, and higher expenses, detailing segment performance, capital expenditures, liquidity, and the impact of recent agreements [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Consolidated revenues for the nine months ended September 30, 2024, decreased by 7% to $1.45 billion, with net income falling sharply to $12.7 million, primarily due to lower revenues from passenger flight operations and certain aircraft leases, alongside higher expenses Adjusted Pre-Tax Earnings Reconciliation (Non-GAAP, in thousands) | Description | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | **Pre-Tax Earnings from Continuing Operations** | **$17,997** | **$99,830** | | Add: Non-service retiree benefit costs | $3,256 | $9,654 | | Add: Charges for non-consolidated affiliates | $2,202 | $4,398 | | Add: Contra-revenue from customer incentive | $19,875 | $14,777 | | Add: Net loss (gain) on financial instruments | $(134) | $(1,856) | | **Adjusted Pre-Tax Earnings (non-GAAP)** | **$43,196** | **$126,874** | - CAM segment pre-tax earnings for the first nine months of 2024 fell to **$46.9 million** from **$88.5 million** year-over-year, impacted by reduced 767-200 lease revenues, higher depreciation (**$25.1 million increase**), and higher allocated interest expense (**$11.5 million increase**)[148](index=148&type=chunk) - ACMI Services segment revenues for the first nine months of 2024 decreased by **$81.6 million** year-over-year, with block hours for customers' delivery networks falling **7%** and passenger service block hours dropping **15%**, leading to a pre-tax loss of **$25.0 million** compared to a **$34.1 million profit** in the prior year[154](index=154&type=chunk)[156](index=156&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2024, the company had $44.9 million in cash and $458.3 million available under its revolving credit facility, with operating cash flow decreasing and capital expenditures significantly lower, while projecting sufficient liquidity for the next twelve months - Operating cash flow for the first nine months of 2024 was **$399.1 million**, down from **$526.1 million** in the prior year, due to lower operating results and less favorable working capital changes[171](index=171&type=chunk) - Capital expenditures for the first nine months of 2024 were **$221.0 million**, a sharp decrease from **$581.3 million** in the same period of 2023[172](index=172&type=chunk) - Total liquidity at September 30, 2024, stood at **$503.2 million**, comprising **$44.9 million** in cash and **$458.3 million** in available credit[178](index=178&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's exposure to market risks, primarily from fluctuating interest rates and jet fuel prices, has not materially changed from its 2023 Form 10-K disclosures, with jet fuel price risk largely mitigated through customer agreements - The company's market risks, related to interest rates and jet fuel prices, have not materially changed since the 2023 Form 10-K[182](index=182&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) As of September 30, 2024, the company's Principal Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures are effective, with no material changes to internal control over financial reporting during the third quarter of 2024 - Management concluded that as of September 30, 2024, the company's disclosure controls and procedures were effective[183](index=183&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, its internal control[184](index=184&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings arising from its business operations, but management believes the ultimate liability will not be material to its financial condition or results of operations - The company does not expect pending legal proceedings to have a material impact on its financial condition or results of operations[184](index=184&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) This section highlights new and updated risks, including those associated with amended Amazon agreements, such as potential failure to achieve anticipated benefits and dilutive effects of warrants, and significant risks related to the proposed merger with Stonepeak - Risks related to the amended Amazon agreements include not fully realizing expected benefits and the dilutive effect on EPS from warrants issued to Amazon[187](index=187&type=chunk) - There is a risk that the proposed merger with Stonepeak may not be completed due to failure to satisfy closing conditions, which could adversely affect the stock price and business operations[188](index=188&type=chunk) - The merger announcement could negatively impact business relationships with customers and partners and affect the company's ability to retain key personnel[190](index=190&type=chunk) - The Merger Agreement contains provisions, including a termination fee of up to **$55.3 million**, that may limit the company's ability to pursue alternative acquisition proposals[194](index=194&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during Q3 2024, with $103.5 million remaining available under the 2022 Repurchase Program and $1.5 million under the 2023 program, restricted for 2017 Convertible Notes repurchase - No common stock was repurchased during the third quarter of 2024[197](index=197&type=chunk) - As of September 30, 2024, **$103.5 million** remains authorized for repurchase under the 2022 program[197](index=197&type=chunk) [Other Information](index=48&type=section&id=Item%205.%20Other%20Information) During the third quarter of 2024, no director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No director or officer adopted or terminated any pre-arranged trading plans during the quarter ended September 30, 2024[199](index=199&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, material contracts with Amazon, and certifications from the CEO and CFO - Exhibits filed include corporate governance documents, material contracts with Amazon, and required SOX certifications[200](index=200&type=chunk)

Air Transport Services (ATSG) reported $471.25 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 9.9%. EPS of $0.13 for the same period compares to $0.32 a year ago.The reported revenue represents a surprise of -7.21% over the Zacks Consensus Estimate of $507.86 million. With the consensus EPS estimate being $0.19, the EPS surprise was -31.58%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compa ...

Air Transport Services (ATSG) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -31.58%. A quarter ago, it was expected that this air cargo company would post earnings of $0.16 per share when it actually produced earnings of $0.19, delivering a surprise of 18.75%.Over the last four quar ...

Exhibit 99.1 ATSG Reports Third Quarter 2024 Results Generates Strong Cash Flow WILMINGTON, OH, November 8, 2024 - Air Transport Services Group, Inc. (Nasdaq: ATSG), the leading provider of medium widebody freighter aircraft leasing, contracted air transportation, and related services, today reported consolidated financial results for the third quarter ended September 30, 2024. Those results, as compared with the same period in 2023, were as follows: Third Quarter Results • Revenues of $471 million, versus ...

The upcoming report from Air Transport Services (ATSG) is expected to reveal quarterly earnings of $0.19 per share, indicating a decline of 40.6% compared to the year-ago period. Analysts forecast revenues of $507.86 million, representing a decrease of 2.9% year over year.The consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timefra ...

Air Transport Services Group (ATSG) is scheduled to report third-quarter 2024 results on Nov. 8 before market open.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.ATSG has a mixed earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average miss is 7.70%.The Zacks Consensus Estimate for the company’s soon-to-be-reported quarter’s earnings has remained flat at 19 cents per share in the past 60 days.Air Tran ...

NEW YORK, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating Air Transport Services Group, Inc. (Nasdaq: ATSG), relating to a proposed merger with Stonepeak Nile Parent LLC. Under the terms of the agreement, Air Transport Services Group shareholder ...

The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Air Transport Services (ATSG) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.Air Transport Services is one of 135 companies in the Transportation group. The Transportation group currently sits at #8 within the Zacks Sector Rank. The Za ...

Group 1 - Air Transport Services Group (ATSG) shares increased by 26.4% on November 4, 2024, closing at $22 following the announcement of its acquisition by Stonepeak for an enterprise valuation of $3.1 billion [1] - Under the acquisition agreement, ATSG's common shareholders will receive $22.50 per share in cash, representing a premium of approximately 29.3% over ATSG's closing share price on November 1, 2024, and a 45.5% premium based on the volume-weighted average price over the prior 90 trading days [2] - The transaction is expected to close in the first half of 2025, subject to customary closing conditions, and ATSG will become a private company post-transaction [3] Group 2 - ATSG has a "go-shop" period allowing it to solicit proposals from third parties for 35 days until December 8, 2024, with a possible extension to December 23, 2024 [3] - The company retains the right to respond to unsolicited proposals that may result in a superior deal before receiving shareholder approval and can terminate the merger agreement with Stonepeak under certain conditions [4] Group 3 - ATSG currently holds a Zacks Rank 2 (Buy), indicating a favorable outlook [5] - Other stocks in the Zacks Transportation sector include Matson, which has a Zacks Rank 1 (Strong Buy), and has seen a 42.2% gain year to date [6] - Expeditors International of Washington also holds a Zacks Rank 2 and has shown commendable efforts in rewarding shareholders, with a slight increase in the Zacks Consensus Estimate for 2024 earnings [7]

Air Transport Services (ATSG) shares ended the last trading session 26.4% higher at $22. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16.9% gain over the past four weeks.The uptick followed the news that ATSG will be acquired by Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets. The enterprise valuation of the all-cash transaction is $3.1 billion.Under the terms of t ...