Air Transport Services (ATSG) - 2024 Q3 - Quarterly Results

Financial Performance - Revenues for Q3 2024 were $471 million, a decrease of 10% from $523 million in Q3 2023[1] - GAAP Loss per Share from Continuing Operations was ($0.05), compared to Earnings per Share of $0.24 in the same quarter last year[1] - Adjusted Pretax Earnings were $10.7 million, down from $31.1 million, reflecting a decline of 65%[1] - Operating income for the three months ended September 30, 2024, was $21,681,000, down 53.2% from $46,030,000 in the prior year[16] - Net loss for the three months ended September 30, 2024, was $(3,327,000), compared to net earnings of $17,172,000 for the same period in 2023[16] - Adjusted Earnings for the nine months ended September 30, 2024, were $8,884 million, down from $23,533 million in 2023, reflecting a decrease in Adjusted Earnings Per Share from $0.32 to $0.13[26] Cash Flow and Assets - Free Cash Flow for Q3 2024 was $86.4 million, a significant improvement from negative $51.6 million in Q3 2023[1] - Operating cash flows for the three months ended September 2024 were $135,555, compared to $117,517 for the same period in 2023, representing a 15.5% increase[18] - Cash and cash equivalents decreased to $44,873,000 as of September 30, 2024, from $53,555,000 at December 31, 2023[17] - Total current assets decreased to $311,072,000 as of September 30, 2024, from $345,701,000 at December 31, 2023[17] - Long-term debt decreased to $1,561,874,000 as of September 30, 2024, from $1,707,572,000 at December 31, 2023[17] - Total assets increased slightly to $3,884,323,000 as of September 30, 2024, from $3,882,090,000 at December 31, 2023[17] Aircraft Operations - Aircraft leasing revenues increased by 3% due to eleven additional freighter leases, despite the return of nine 767-200 freighters and six 767-300 freighters[3] - The company added four Boeing 767-300 freighter leases during Q3 2024, with plans to execute three new leases for CAM-owned freighters by year-end 2024[2] - The total number of aircraft in service as of September 30, 2024, is projected to be 123, an increase from 112 in the same period of 2023[28] - The company plans to have 129 aircraft in service by December 31, 2024, with 20 of them being passenger aircraft[28] - The number of aircraft available for lease is projected to increase from 2 in September 2024 to 7 by December 31, 2024[28] - The total aircraft in cargo modification as of September 30, 2024, includes 3 B767-300 and 6 A321 aircraft[28] Expenses and Losses - ACMI Services reported a pretax loss of $14 million, compared to pretax earnings of $12 million in Q3 2023, with revenue block hours decreasing by 13%[4] - Segment depreciation expense increased by $11 million and interest expense by $2 million compared to the prior-year quarter[3] - The company experienced a loss from affiliates related to the Hangar foam incident amounting to $658 million for the three months ended September 30, 2024[26] - Principal payments on secured debt for the three months ended September 2024 were $(155,219), compared to $(90,217) in the same period of 2023, an increase of 72.2%[18] Shareholder Information - The company entered into an acquisition agreement with Stonepeak for an enterprise valuation of approximately $3.1 billion, with shareholders receiving $22.50 per share in cash[1] - The weighted average shares diluted for the three months ended September 30, 2024, were 65,036 million, down from 72,672 million in 2023[26] - The company reported an increase in additional paid-in capital to $917,181,000 as of September 30, 2024, from $836,270,000 at December 31, 2023[17] - Stockholders' equity increased to $1,468,239,000 as of September 30, 2024, from $1,368,702,000 at December 31, 2023[17] - Customer incentive of $6,659 million for the three months ended September 30, 2024, compared to $3,290 million in the same period of 2023[26]