Air Transport Services Group, Inc. (NASDAQ:ATSG) Q4 2022 Earnings Call Transcript

Howard Rosencrans: And I appreciate it. Thank you for all the incremental color. I think you need to dedicate more time to discussing the international customers in slides, et cetera, because clearly, there has been a significant transition that was underappreciated by the investment community, number one. And number two, clearly, things have changed just in terms of the Boeing fleet because 6 months ago, those were not your expectations that those were going to come off or that you were going to — which was going to extensively lead to, as somebody else commented, a flat run rate of the base core EBITDA. So I think there’s a greater understanding, and I can assure you that the market commentary is not based on whether or not you made or missed the fourth quarter by either here or there.

Rich Corrado: Thanks, Howard.

Operator: I’m not showing any further questions at this time. I’d like to turn the call back over to Rich Corrado for any closing remarks.

Rich Corrado: Thank you, Kevin. We’ve long discussed the resiliency of our business model, with freighter leasing as the foundation and value-added services that make us unique and differentiated from any other competitor in the world. We have no peers in what we do. Many air transport services companies have struggled through the pandemic trying to get back to a 2019 baseline. Since 2019, ATSG had delivered 38% revenue growth and 42% growth in adjusted EBITDA. And our guidance today continues on that growth trend, although slowed by the same economic headwinds impacting all companies. Still, the visibility we have the cash flows from our freighter investments, with waiting customers over the next 3 years gets us right back on to a 10% EBITDA growth trajectory in 2024 and 2025 just based on the leasing commitments alone.

More fortunate market conditions could also lift our other services, delivering even higher returns. Once again, ATSG’s resiliency is demonstrated through the most challenging of times. As we drive our results for 2023 and beyond, we remain a great investment for stability, growth and high visibility of future returns. Thank you, all, for your interest in ATSG, and please stay safe.

Operator: Ladies and gentlemen, this does conclude today’s presentation. You may now disconnect, and have a wonderful day.