Air Transport Services Group, Inc. (NASDAQ:ATSG) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 10:00 am ET
Welcome to the Q3 2019 Air Transport Services Group Inc. Earnings Conference Call. My name is John and I'll be your operator for today's call. [Operator Instructions]
And now I will turn the call over to Joe Hete Chief Executive Officer ATSG. Mr. Hete you may begin.
Thanks, John. Good morning and welcome to our third quarter 2019 earnings conference call. With me today is Quint Turner our Chief Financial Officer. Rich Corrado who became President of ATSG in September is traveling overseas today. We issued our earnings release yesterday after the market closed. It's on our website atsginc.com. We will file our Form 10-Q later this week. Once again I'm pleased to report to you that this year we are performing at levels consistent with the adjusted EBITDA guidance we have shared and exceeding our targets for adjusted EPS. Our business strategy of investing in and leasing midsize aircraft to major express and e-commerce customers and combining those assets with crew maintenance and insurance services for those who require them continues to be a winning formula. Our purchase of Omni a year ago has continued to provide accretive contributions to our operating results. For the third quarter we again substantially outperformed our prior year results. Our revenues are up 79% to $366 million. Our adjusted earnings are up 10% to $21 million or $0.31 per share and our adjusted EBITDA rose 47% to $109 million. Our airline operations are expanding and our leased aircraft fleet is growing. Our air network services for the Department of Defense and Amazon are up versus the prior year and we have 19 more aircraft in our operating fleet than a year ago. These results plus significant increases in scheduled peak-season flying support my confidence in our ability to achieve our $450 million target for full year adjusted EBITDA despite a few headwinds to our plan. Quint is ready to review our consolidated results including the release we also issued yesterday about a new amendment to our senior credit facility. I'll close with comments on our outlook. Quint?
Thanks, Joe. Good morning to all of you on the call right now and to those who will listen on replay. As always I'll start by saying that during the course of this call we will make projections or other forward-looking statements that involve risks and uncertainties. Our actual results and other future events may differ materially from those we describe here. These forward-looking statements are based on information plans and estimates as of the date of this call and Air Transport Services Group undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions factors new information or other changes. These factors include but are not limited to changes in market demand for our assets and services; our operating airline's ability to maintain on-time service and control costs; the cost and timing with respect to which we are able to purchase and modify aircraft to a cargo configuration; fluctuations in ATSG's traded share