Air Transport Services Group, Inc. (Nasdaq: ATSG), the provider of medium wide-body aircraft leasing, air cargo transportation and related services, has reported consolidated financial results for the quarter ended June 30, 2017, the company said.
Compared with amounts for the second quarter of 2016 (except as noted): Revenues increased USD 77 million, or 43 percent, to USD 253.2 million.
Excluding revenues from reimbursable airline expenses, revenues increased USD 60 million, or 37 percent. ATSG´s airline services operations, and maintenance and logistics businesses, recorded double-digit revenue increases.
GAAP Earnings from Continuing Operations were a loss of USD 53.9 million or USD 0.91 per share diluted and included charges totaling USD 67.8 million for the warrants granted last year in connection with operating and lease agreements with Amazon Fulfillment Services, Inc.
The value of the warrants increased sharply during the quarter in conjunction with a 36 percent increase in the traded price of ATSG stock since March 31, 2017, resulting in a significant mark-to-market loss for the quarter. Earnings from Continuing Operations were a positive USD 11.5 million, or USD 0.12 per share diluted a year earlier.
ATSG´s results for the first half of 2017 included a revenue increase of 39 percent to USD 491.1 million, and GAAP Earnings from Continuing Operations of negative USD 44.1 million, or a USD 0.75 loss per share. First-half Adjusted Earnings From Continuing Operations were USD 25.1 million, up 48 percent from a year ago. On a per-share adjusted basis, ATSG earned USD 0.38 per share, up from USD 0.26 in the first half of 2016.
ATSG is a provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. ATSG, through its leasing and airline subsidiaries, is the world´s largest owner and operator of converted Boeing 767 freighter aircraft.
Through its principal subsidiaries, including two airlines with separate and distinct US FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, aircraft maintenance services and airport ground services. ATSG´s subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; and Airborne Maintenance and Engineering Services, Inc. including its division, PEMCO World Air Services, Inc.