Air Transport Services Group Inc

Air Transport Services — Shareholder Meeting (May 2023)

25 slides from Air Transport Services's shareholder meeting presentation, May 26, 2023

  1. Slide 1: Annual Stockholders Meeting May 24, 2023

    Slide l 1 ANNUAL STOCKHOLDERS MEETING MAY 24, 2023 11:00 A.M. VIRTUAL ATSG

  2. Slide 2: Joe Hete, Chairman, ATSG Board of Directors

    Slide l 2 JOE HETE CHAIRMAN ATSG BOARD OF DIRECTORS

  3. Slide 3: Principal Business of the 2023 Annual Meeting of Stockholders

    Slide l 3 PRINCIPAL BUSINESS OF THE 2023 ANNUAL MEETING OF STOCKHOLDERS 1. The election of the ten (10) director nominees named in proxy statement 2. To consider and vote on an advisory proposal to ratify the appointment of Deloitte & Touche as the Company’s independent registered public accounting

  4. Slide 4: Rich Corrado, President & Chief Executive Officer

    Slide l 4 RICH CORRADO PRESIDENT & CHIEF EXECUTIVE OFFICER ATSG

  5. Slide 5: ATSG Board of Directors

    Slide l 5 ATSG BOARD OF DIRECTORS JEFFREY A. DOMINICK RANDY D. RADEMACHER JOSEPH C. HETE PHYLLIS J. CAMPBELL RAYMOND E. JOHNS, JR. RICHARD F. CORRADO LAURA J. PETERSON J. CHRISTOPHER TEETS JEFFREY J. VORHOLT PAUL S. WILLIAMS

  6. Slide 6: Joe Payne, Chief Legal Officer

    Slide l 6 JOE PAYNE CHIEF LEGAL OFFICER ATSG

  7. Slide 7: Principal Business of the 2023 Annual Meeting of Stockholders

    Slide l 7 PRINCIPAL BUSINESS OF THE 2023 ANNUAL MEETING OF STOCKHOLDERS 1. The election of the ten (10) director nominees named in proxy statement 2. To consider and vote on an advisory proposal to ratify the appointment of Deloitte & Touche as the Company’s independent registered public accounting

  8. Slide 8: Safe Harbor Statement

    Slide l 8 AIR TRANSPORT SERVICES GROUP SAFE HARBOR STATEMENT Except for historical information contained herein, the matters discussed in this release contain forward-looking statements that involve risks and uncertainties. A number of important factors could cause Air Transport Services Group, Inc.

  9. Slide 9: 2022 Highlights

    Slide l 9 2022 HIGHLIGHTS *Non-GAAP measure, please see the company’s 8K and accompanying earnings release for GAAP reconciliation furnished and dated February 23, 2023 ** Non-GAAP measure, please see enclosed GAAP reconciliation Customer Revenues $2.0 billion, up 18% over 2021 Adjusted EPS* of $2.2

  10. Slide 10: Quint Turner, Chief Financial Officer

    Slide l 10 QUINT TURNER CHIEF FINANCIAL OFFICER ATSG

  11. Slide 11: 2022 Financials

    Slide l 11 2022 FINANCIALS $128 $156 $174 $263 2019 2020 2021 2022 * Non-GAAP measure, please see enclosed GAAP reconciliation $1,452 $1,571 $1,734 $2,045 2019 2020 2021 2022 $452 $497 $541 $641 2019 2020 2021 2022 - ANNUAL FINANCIALS ($ in millions) ADJUSTED EBITDA*ADJUSTED PRE-TAX EARNINGS *REVENU

  12. Slide 12: Annual Adjusted EBITDA by Reportable Segment

    Slide l 12 -ANNUAL ADJUSTED EBITDA BY REPORTABLE SEGMENT ($ in millions) $282 $307 $368 $426 $154 $192 $170 $209 $16 $2 $3 $6 2019 2020 2021 2022 CAM ACMI Svcs* All Other** * ACMI 2020 and 2021 excludes the benefit of $47M and $112M respectively from government grants ** Results of non-reportable bu

  13. Slide 13: Capital Expenditures

    Slide l 13 SUSTAINING CAPITAL EXPENDITURES Cost of planned airframe maintenance, engine overhauls, technology, and other property and equipment. GROWTH CAPITAL EXPENDITURES Cost of aircraft acquisitions and freighter modifications. $322 $309 $327 $346 $412 $183 $179 $172 $179 $187 DEC 2021 MAR 2022

  14. Slide 14: Adjusted Free Cash Flow

    Slide l 14 $400 $406 $355 $373 $285 $183 $179 $172 $179 $187 DEC 2021 MAR 2022 JUN 2022 SEP 2022 DEC 2022 OPERATING CASH FLOWS (GAAP) $583 $585 $527 $552 $472 TTM ENDING SUSTAINING CAPITAL EXPENDITURES ADJUSTED FREE CASH FLOW (NON-GAAP) **Adjusted Free Cash Flow is a Non-GAAP measure and equals Oper

  15. Slide 15: Capital Structure Supports Growth

    Slide l 15 -SUPPORTS GROWTH CAPITAL STRUCTURE $388M of unused capacity under senior revolver facility as of 3/31/202 Accommodates share repurchases; two million shares repurchased in 4Q 2022; one million shares repurchased in 1Q 2023 31-Dec Mar 31 2022 2023 Senior Secured Revolver $620 $700 Unsecure

  16. Slide 16: 2022 Overview

    Slide l 16 OVERVIEW 2022 revenue and earnings gains fueled by six more dry leases of Boeing aircraft plus one re- lease and four lease extensions ACMI customers assigned seven more 767 freighters to be operated by ATSG cargo airlines Feedstock aircraft secured for the twenty freighters to lease in 2

  17. Slide 17: 2022 Sustainability Report Highlights

    Slide l 17 2022 SUSTAINABILITY REPORT Operational improvements from 2021 to 2022 resulted in a relative reduction in jet fuel usage by 19.9 million gallons and CO2 emissions by 191,000 tons. This carbon footprint reduction is in addition to fuel-efficiency improvements the company will realize from

  18. Slide 18: Investments & Returns

    Slide l 18 INVESTMENTS & RETURNS CAM scheduled to lease twenty newly converted freighters (14-767s, 6-A321-200s) in 2023 to generate double-digit returns on invested capital; $70+M of annualized freighter lease revenue in 2024 and beyond 767 conversion vendor pace improving; expect eight freighter d

  19. Slide 19: Outlook 2023

    Slide l 19 OUTLOOK Adjusted EBITDA for 2023 to be $610 - $620 million Full year 2023 Adjusted EPS to be $1.55 - $1.70 2023 capital spending $850 million, including $260 million in sustaining capex and $590 million for growth ATSG remains midsize freighter market leader, with superior customer servic

  20. Slide 20: Results of Balloting

    Slide l 20 RESULTS OF BALLOTING

  21. Slide 21: Stockholder Q & A

    Slide l 21 STOCKHOLDER Q & A

  22. Slide 22: Closing Remarks

    Slide l 22 CLOSING REMARKS THANK YOU FOR JOINING US TODAY!

  23. Slide 23: Appendix

    Slide l 23 APPENDIX

  24. Slide 24: Adjusted EBITDA Non-GAAP Reconciliation

    Slide l 24 -ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION NON-GAAP RECONCILIATION ($ in millions) 4Q2019 4Q2020 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 GAAP Pre-Tax Earnings (Loss) from Cont Ops 72$ 41$ 301$ 311$ 276$ 260$ 260$ Add impairment of aircraft and related assets -$ 39

  25. Slide 25: Segment Adjusted EBITDA Non-GAAP Reconciliation

    Slide l 25 -SEGMENT ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION NON-GAAP RECONCILIATION ($ in millions) CAM ACMI Svcs All Other Total CAM ACMI Svcs All Other Total CAM ACMI Svcs All Other Total CAM ACMI Svcs All Other Total Segment Earnings (GAAP) 69 32 (29) 72 77 114 (15

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