Air Transport Services Group, Inc.’s (ATSG) efforts to expand and upgrade its fleet are commendable. Decreasing operating costs also bode well for the company’s bottom line. Owing to the tailwinds, ATSG shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.Factors That Make ATSG Stock Worth Betting OnRobust Stock Price Performance: A look at the company’s price trend reveals that its shares have risen 6.1% in the past 30 day ...

Air Transport Services (ATSG) closed the last trading session at $15.52, gaining 1.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $20 indicates a 28.9% upside potential.The mean estimate comprises five short-term price targets with a standard deviation of $5.48. While the lowest estimate of $14 indicates a 9.8% decline from the current price level, the most optimistic analyst e ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's analysis, market risk disclosures, and internal controls [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q2 and H1 2024 show decreased revenues and net earnings, with slight asset growth and liability reduction [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets increased slightly to $3.94 billion, while total liabilities decreased to $2.47 billion, leading to higher stockholders' equity Condensed Consolidated Balance Sheet Data (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $315,478 | $345,701 | | **Property and equipment, net** | $2,819,077 | $2,820,769 | | **Total Assets** | **$3,939,485** | **$3,882,090** | | **Total Current Liabilities** | $428,782 | $400,189 | | **Long term debt** | $1,577,328 | $1,707,572 | | **Total Liabilities** | **$2,474,099** | **$2,513,388** | | **Total Stockholders' Equity** | **$1,465,386** | **$1,368,702** | [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Revenues and net earnings significantly declined in Q2 and H1 2024 compared to the prior year, with diluted EPS also decreasing Q2 and H1 2024 vs 2023 Performance (in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $488,410 | $529,339 | $973,927 | $1,030,434 | | **Operating Income** | $31,321 | $69,741 | $64,325 | $117,164 | | **Net Earnings** | $7,428 | $38,022 | $16,047 | $58,163 | | **Diluted EPS** | $0.11 | $0.49 | $0.24 | $0.73 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased in H1 2024, while investing activities used less cash, and financing activities shifted to a net cash outflow Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $263,521 | $408,576 | | **Net Cash from Investing Activities** | ($156,504) | ($403,280) | | **Net Cash from Financing Activities** | ($131,858) | $10,720 | | **Net (Decrease) in Cash** | ($24,841) | $16,016 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, significant customer concentrations, debt structure, and segment performance, including the Amazon agreement impact - The company operates two reportable segments: **CAM (aircraft leasing)** and **ACMI Services (airline operations)**. Other services like maintenance and ground support are combined in 'All other'[118](index=118&type=chunk) H1 2024 vs H1 2023 Segment Revenues (in thousands) | Segment | H1 2024 Revenue | H1 2023 Revenue | | :--- | :--- | :--- | | CAM | $210,018 | $223,422 | | ACMI Services | $662,003 | $700,314 | | All other | $206,680 | $221,377 | | **Total (before eliminations)** | **$1,078,701** | **$1,145,113** | H1 2024 vs H1 2023 Segment Earnings (Loss) (in thousands) | Segment | H1 2024 Earnings (Loss) | H1 2023 Earnings (Loss) | | :--- | :--- | :--- | | CAM | $28,656 | $65,220 | | ACMI Services | ($10,561) | $21,643 | | All other | $5,280 | ($645) | - The company has significant revenue concentration with three customers: the **Department of Defense (DoD)**, **Amazon**, and **DHL**[44](index=44&type=chunk) Significant Customer Revenue Concentration (H1) | Customer | H1 2024 % of Revenue | H1 2023 % of Revenue | | :--- | :--- | :--- | | DoD | 31% | 30% | | Amazon | 32% | 34% | | DHL | 13% | 13% | - On May 6, 2024, the company entered into a **Third Amended and Restated Air Transportation Services Agreement (3rd A&R ATSA)** with Amazon's subsidiary, ASI. Under this agreement, ATSG will operate **10 additional Boeing 767-300 aircraft** provided by ASI, with an option for 10 more[54](index=54&type=chunk) - In conjunction with the 3rd A&R ATSA, ATSG issued new warrants to Amazon for up to **2.9 million shares** and modified two existing vested warrants (totaling **21.8 million shares**) by extending their expiration dates to December 2029. This modification resulted in a **$66.8 million re-measurement** recorded as a customer incentive asset[55](index=55&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - As of June 30, 2024, the company has commitments of **$300.8 million** to acquire and convert aircraft (Boeing 767-300, Airbus A321, Airbus A330) into freighters[94](index=94&type=chunk) [Management's Discussion and Analysis (MD&A)](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes H1 2024 revenue and earnings decline to lower 767-200 leases and reduced flying, expecting ACMI revenue growth in H2 - H1 2024 external customer revenues decreased by **5% ($56.5 million)** YoY, primarily due to lower revenues from Boeing 767-200 aircraft leases and a related engine power program, as well as reduced flying for customer delivery networks[134](index=134&type=chunk) - Adjusted pre-tax earnings from continuing operations, a non-GAAP measure, decreased to **$32.5 million** in H1 2024 from **$95.7 million** in H1 2023. The decline was driven by lower earnings from Boeing 767-200 operations, reduced airline operation earnings, and higher interest and depreciation expenses[138](index=138&type=chunk) - The CAM segment's pre-tax earnings fell to **$28.7 million** in H1 2024 from **$65.2 million** in H1 2023, impacted by reduced 767-200 lease revenue, increased depreciation from 14 new aircraft, and higher allocated interest expense[149](index=149&type=chunk) - The ACMI Services segment reported a pre-tax loss of **$10.6 million** in H1 2024, compared to a **$21.6 million profit** in H1 2023. This was caused by an **11% decrease in Q2 block hours** for delivery networks, higher maintenance and travel costs, and increased customer incentive charges related to Amazon warrants[154](index=154&type=chunk)[156](index=156&type=chunk) - Capital expenditures for 2024 are estimated to be approximately **$390 million**, with the majority for aircraft purchases and freighter modifications[175](index=175&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates and jet fuel prices, with fuel price risk largely mitigated by customer reimbursement agreements - The primary market risks are **rising interest rates** and **jet fuel price fluctuations**[181](index=181&type=chunk) - Jet fuel price risk is substantially mitigated as these costs are largely reimbursed by customers under service agreements[181](index=181&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting - Management concluded that as of June 30, 2024, the company's **disclosure controls and procedures were effective**[180](index=180&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[181](index=181&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, new risk factors, equity security sales, other information, and a list of exhibits [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management does not expect a material impact on its financial condition or operations - The company is party to various legal proceedings but does not expect the outcomes to be material to its financial condition[182](index=182&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) New material risks include the failure to achieve anticipated benefits from amended Amazon agreements and the dilutive effect of Amazon warrants - A new risk factor relates to the amended agreements with Amazon. The company may not achieve the anticipated benefits (e.g., revenue growth, improved cash flows), which could adversely affect financial results[185](index=185&type=chunk) - Warrants issued to Amazon are expected to increase shares outstanding upon exercise, causing **dilution to EPS** and existing stockholders' ownership[185](index=185&type=chunk) - Future fluctuations in the fair value of the Amazon warrants may adversely impact the company's reported earnings[185](index=185&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No common stock was repurchased in Q2 2024, with $103.5 million remaining under the 2022 Repurchase Program - No common stock was repurchased in Q2 2024[186](index=186&type=chunk) - As of June 30, 2024, **$103.5 million** remains authorized under the 2022 Repurchase Program[186](index=186&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2024 - No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2024[204](index=204&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed, including material contracts related to the amended Amazon agreements and officer certifications - Exhibits filed include amendments to investment and stockholder agreements with Amazon.com, Inc. dated May 6, 2024[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) - Forms of the amended and restated warrants issued to Amazon are also included as exhibits[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk)

Air Transport Services Group, Inc. (NASDAQ:ATSG) Q2 2024 Earnings Conference Call August 9, 2024 10:00 AM ET Company Participants Joe Payne - Chief Legal Officer Joe Hete - Executive Chairman Mike Berger - Chief Executive Officer Quint Turner - CFO Jeffrey Dominick - President Conference Call Participants Frank Galanti - Stifel Christopher Stathoulopoulos - SIG Michael Ciarmoli - Truist Securities Isaac Sellhausen - Oppenheimer Ben Rubenstein - Robotti & Company Operator Good day, and thank you for standing ...

2Q 2024 QUARTERLY PRESENTATION JOE HETE l EXECUTIVE CHAIRMAN MIKE BERGER l CEO JEFFREY DOMINICK l PRESIDENT JOE PAYNE l CLO QUINT TURNER l CFO AIR TRANSPORT SERVICES GROUP 2 SAFE HARBOR STATEMENT Throughout this presentation, Air Transport Services Group, Inc. ("ATSG") makes "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, as amended (the "Act"). Except for historical information contained herein, the matters discussed in this presentation contain ...

Air Transport Services Group’s (ATSG) second-quarter 2024 earnings (excluding 8 cents from non-recurring items) of 19 cents per share surpassed the Zacks Consensus Estimate of 16 cents but plunged 66.7% year over year.  Customer revenues (derived after eliminating internal revenues from total revenues) of $488.4 million missed the Zacks Consensus Estimate of $512.3 million and fell 7.7% year over year.ATSG primarily operates through the following reporting segments, namely Cargo Aircraft Management or CAM a ...

Core Insights - Air Transport Services (ATSG) reported a revenue of $488.41 million for the quarter ended June 2024, reflecting a year-over-year decline of 7.7% and an EPS of $0.19 compared to $0.57 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $512.33 million by 4.67%, while the EPS exceeded the consensus estimate of $0.16 by 18.75% [1] Revenue Breakdown - ACMI Services revenue was $338.18 million, below the estimated $353.71 million, marking a 7.7% decline year-over-year [3] - Other Activities revenue totaled $97.64 million, compared to the estimated $109.30 million, representing an 11.9% decrease year-over-year [4] - Internal revenues were reported at -$51.88 million, better than the average estimate of -$60.74 million, with a year-over-year change of -12.1% [5] - CAM revenue reached $104.47 million, falling short of the estimated $110.05 million, indicating a 6.2% decline year-over-year [6] - CAM Lease incentive amortization was reported at -$3.10 million, worse than the average estimate of -$2.86 million, reflecting a 20.7% year-over-year change [7] - CAM Aircraft leasing and related revenues were $107.57 million, below the estimated $115.17 million, showing a 6.7% decline year-over-year [8] Pre-Tax Earnings - Pre-tax earnings for CAM were $15.25 million, exceeding the average estimate of $14.63 million [9] - Pre-tax earnings for ACMI Services were -$7.08 million, significantly worse than the average estimate of $2.58 million [10] - Pre-tax earnings for Other Activities were $2.97 million, outperforming the estimated -$0.97 million [11] Stock Performance - Shares of Air Transport Services have returned -6.8% over the past month, compared to a -6.5% change in the Zacks S&P 500 composite [11] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [11]

Air Transport Services (ATSG) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.75%. A quarter ago, it was expected that this air cargo company would post earnings of $0.13 per share when it actually produced earnings of $0.16, delivering a surprise of 23.08%.Over the last four quart ...

Exhibit 99.1 1 ATSG Reports Second Quarter 2024 Results Raises 2024 Adjusted EBITDA Outlook Generates Strong Free Cash Flow Leases Four Boeing 767 Freighters to Customers since June 30 WILMINGTON, OH, August [ ], 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 second quarter ended June 30, 2024. Those results, as compared wit ...

Air Transport Services Group (ATSG) is scheduled to report second-quarter 2024 results on Aug 8 after market close.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 beat is 1.13%.The Zacks Consensus Estimate for the company’s soon-to-be-reported quarter’s earnings has been revised downward by 5.88% in the past 60 days to 16 cents per share.Air Transport Services Group is being challenged by the weak d ...