VIRTUAL MAY 07, 2020 SHAREHOLDERS A N N U A L M E E T I N G JOE HETE, CEO RICH CORRADO, PRESIDENT QUINT TURNER, CFO www. ATSGinc .com JOE PAYNE, CLO MIKE BERGER, CCO
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Except for historical information contained herein, the matters discussed in this presentation contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that are inherently difficult to predict. Words such as “projects,” “believes,” “anticipates,” “will,” “estimates,” “plans,” “expects,” “intends” and similar words and expressio ns are intended to identify forward-looking statements. These forward-looking statements are based on expectations, estimates and projections as of the date of this presentation and address activities, events or developments that we expect, believe or anticipate will or may occur in the future. Although we believe our estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management’s a ssumptions about future events may prove to be inaccurate. We caution all readers that the forward-looking statements contained in this presentation are not guarantees of future performance, and we cannot assure any reader that those statements will be realized, or the forward-looking events and circumstances will occur. There are a number of important factors that could cause Air Transport Services Group's ("ATSG's") actual results to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, changes in market demand for our assets and services, including potential reduced flight operations arising from the outbreak of COVID-19; our operating airlines' 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 price and in interest rates, which may result in mark- to-market change in values of certain financial instruments; the number and timing of our aircraft deployments for customers, and the scheduled routes for aircraft we operate for our customers; our ability to remain in compliance with our agreements with key customers and lenders; changes in general economic and/or industry- specific conditions; and other factors (including those listed under the heading “Risk Factors”) that are contained fro m time to time in ATSG's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should carefully review this presentation and should not place undue reliance on ATSG's forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this presentation. ATSG undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes. @ATSGinc www.atsginc.com 2 SHAREHOLDERS ANNUAL MEETING
LEADERSHIP STEP STEP STEP STEP STEP STEP 01 02 J o e H e t e R i c h C o r r a d o J o e P a y n e Q u i n t T u r n e r M i k e B e r g e r E d K o h a r i k C E O P r e s i d e n t C L O & S e c r e t a r y C F O C C O C O O Joe has been with the Mike held top sales leadership Ed is a graduate of the USAF Rich held executive roles at Joe has been with the Quint has been with the company since September roles with TNT in Europe and Academy and served 23 Airborne Express and DHL company since April 1995. company since 1988. He has 1980. He was named CEO DHL in the US before joining years in the US Military prior prior to joining ATSG in 2010. He was named General held the role of Chief Financial and President of ATSG in ATSG in his current role in to joining ATSG in his current He was named Chief Counsel in 2004 and Chief Officer since 2004. 2007. 2018. role in 2019. Operating Officer in 2017 and Legal Officer in 2016. President in 2019. The Leadership Team has delivered growth by pioneering the Lease + CMI model employed today • Their combined nearly 150 years of experience as part of the ATSG business has provided a stable influence and necessary leadership to navigate periods • of growth and change Leadership focuses extensively on the mid-size converted freighter market which has successfully differentiated the Company from other leasing • companies @ATSGinc www.atsginc.com Experience in airline and air cargo operations provide the leadership team a unique insight and ability to meet customer demand 3 • SHAREHOLDERS ANNUAL MEETING
ATSG’S DIFFERENTIATED BUSINESS MODEL A S S E T F I N A N C I A L M A R K E T Owned aircraft portfolio focused on ✓ ✓ Solid balance sheet and conservative mid-size freighters - the asset of choice ✓ World’s largest lessor of freighter aircraft financial policy for express and eCommerce-driven regional air networks ✓ Largest provider of passenger charter ✓ Long-term leases and operating service to the DoD and other contracts with blue-chip customer base 767 freighter is ideally suited to ✓ governmental agencies regional network flying due to high ✓ Strong sustainable cash flows through reliability, cubic capacity and durable ✓ Differentiated package of value-added varying economic cycles performance aviation services, building long-term customer partnerships ✓ Business model not subject to trade 767 is the fastest growing freighter in ✓ disruptions or cyclical GDP regional air networks around the world ✓ Decades of experience with express network airline operations providing ✓ No payload or fuel risk Investment in next generation A321 ✓ best-in-class reliable service to customers conversion positions ATSG to capitalize such as Amazon, DHL, and UPS on mid-range freighter demand Through its subsidiaries ATSG offers mid-size air leasing solutions with unmatched set of complementary services for cargo and passenger @ATSGinc www.atsginc.com 4 SHAREHOLDERS ANNUAL MEETING
Revenues of $1.45 Billion Boeing 767-300 Deployments Boeing 767-300 Leases Highest in ATSG’s history including more Eight more were deployed including six United Parcel Service became ATSG’s than $500 million in revenues and greater to Amazon plus one passenger to Omni newest lease customer with two plus three than expected contribution from Omni Air International more to be delivered in 2020. Six new Air International acquired in 2018 leases plus CMI delivered to Amazon Record Levels for EBITDA Record Levels for Adjusted Earnings Senior Secured Bank Credit Facilities Per Share Amended in Jan 2020 to $500 million Continued strong growth in earnings and Continued strong growth in earnings and private offering increasing ATSG’s access cash flow cash flow to additional growth capital 2019 ACCOMPLISHMENTS @ATSGinc www.atsginc.com 5 SHAREHOLDERS ANNUAL MEETING
ATSG - AT A GLANCE 2019 Revenue By Segment (1) 2019 Revenue By Customer (1) CAM OTHER 19% In-service fleet of 96 at 3/31/20: 777s, 767s, 757s and 737s DHL 14% ▪ LEASING 17% Key Business Segments: OTHER 29% ▪ AMAZON CAM Leasing: (Cargo Aircraft Management) ▪ 23% ACMI Dry-leasing cargo aircraft, engine leasing and leasing SERVICES of cargo/passenger aircraft for DoD DOD 34% 64% ACMI Services: (Aircraft, Crew, Maintenance & ▪ Insurance) CMI and ACMI agreements Other: Businesses include MRO services, passenger- ▪ Historical Financial Performance to-freighter conversion services, ground operations and material handling equipment services Revenues (2) Adjusted EBITDA (3) $452 Acquired Omni Air International on November 9, 2018 ($ in millions) ▪ ($ in millions) $1,452 Deliver integrated operational solutions to customers ▪ $312 $1,068 $268 $892 Markets include air cargo and air express (package) ▪ $289 $769 $212 $197 $619 transport, and ACMI and charter passenger transport for $127 commercial and government entities $38 Founded in 1980 as a wholly owned subsidiary of Airborne ▪ Express, first public offering in August 2003 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Reported revenue from reimbursed expenses Headquarters located at the Wilmington Air Park which ▪ also serves as a regional air hub for Amazon (1) Segment revenue before elimination of internal revenues and revenue by customer percentages are calculated based on YTD 12/31/19 results (2) Pro-forma adjustment to 2014-2017 revenues illustrate the effect of changes in revenue recognition rules effective 1/1/18 as if they were in effect on 1/1/14. (3) Adjusted EBITDA is a non-GAAP metric. See table at end of this presentation for reconciliation to nearest GAAP results. Ratios of Debt Obligations to Adjusted EBITDA 4,000+ employees worldwide ▪ and fleet totals are as of end of period shown and are calculated under formulas included in bank covenants. @ATSGinc www.atsginc.com 6 SHAREHOLDERS ANNUAL MEETING
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