Air Transport Services Group Inc
Air Transport Services — Shareholder Meeting (May 2024)
26 slides from Air Transport Services's shareholder meeting presentation, May 23, 2024
Slide 1: Annual Stockholders Meeting May 22, 2024
‘AR TRANSPORT SERVICES GROUP ANNUAL STOCKHOLDERS May 22, 2024 ‘11:00 A.M. MEETING VIRTUAL
Slide 2: Joe Hete, Chairman and CEO
JOE HETE CHAIRMAN OF THE BOARD OF DIRECTORS & CHIEF EXECUTIVE OFFICER ATSG
Slide 3: 2024 Annual Meeting of Stockholders
2024 ANNUAL MEETING | OF STOCKHOLDERS 1. The election of the nine (9) 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 firm for 2024 3. To consider and h
Slide 4: ATSG Board of Directors
IN PHYLLIS J. CAMPBELL RANDY D. RADEMACHER ‘JEFFREY A. RAYMOND E. DOMINICK JOHNS, JR. n 7 x y J. CHRISTOPHER: JEFFREY J. TEETS VORHOLT ATSG BOARD OF DIRECTORS LAURA J. PETERSON PAULS. WILLIAMS JOSEPH C. HETE
Slide 5: Joe Payne, Chief Legal Officer and Secretary
JOE PAYNE CHIEF LEGAL OFFICER AND SECRETARY ATSG
Slide 6: 2024 Annual Meeting of Stockholders
2024 ANNUAL MEETING | OF STOCKHOLDERS 1. The election of the nine (9) 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 firm for 2024 3. To consider and h
Slide 7: Safe Harbor Statement
AIR TRANSPORT SERVICES GROUP SAFE HARBOR ST ATAMENT rouge pene ign ce os a a te a eet in i ra dt ota pcan oo: ey be er to wae ey toward oan es rg sens rfactor an see es © Se cages MS des Na en ny mor ae ee (fe netases nw sumer bk ete 222084 an accompany The Companyacamageen eau cans, ‘ekg canon esi
Slide 8: Mike Berger, President
MIKE BERGER PRESIDENT ATSG
Slide 9: 2023 Highlights
2023 HIGHLIGHTS Strong Adjusted Free Cash Flow* $435M, trailing twelve months ending Dec 2023 Adjusted EPS* of $1.46 vs. $2.28 in 2022 2023 Adjusted EBITDA* $562M Down 12% vs. 2022 2024 Adjusted EBITDA guidance of $516M 2024 Capex Guidance of $410M
Slide 10: Quint Turner, Chief Financial Officer
QUINT TURNER CHIEF FINANCIAL OFFICER ATSG
Slide 11: Financials
FINANCIALS = {(Sinmitlons) ee eo azoes S207 2023 wore 200 oN 20m 2003
Slide 12: Adjusted EBITDA by Reportable Segment
ADJUSTED EBITDA* BY = REPORTABLE SEGMENT (Sin mitions) $173 $145 $190 $47 $307 $368 2019 2020 2021 2022 2023 CAM = mACMI Services and Other**
Slide 13: Trailing Twelve Month Trend: Capital Expenditures
‘TRAILING TWELVE MONTH TREND CAPITAL EXPENDITURES (Sin millon) Tota $599 sno sme $732 $793 EXPENDITURES - - ; TTMENDING DEC 2022 MAR2023 ©«-JUN2023. «© SEP2023. «(DEC 2023 GROWTH | Costofaireratt CAPITAL | aequisitions and EXPENDITURES | freightor modifications. 2 Twenty-four aircraft in or 2024: th
Slide 14: Adjusted Free Cash Flow
ADJUSTED FREE CASH FLOW* {inmitlrs) OTST sar $863 seat $600 S654 4 Growing Adjusted Free Cash $208 fe Flow, driven by higher S50 ss operating cash flow, more than offsetting slightly SusTARING higher sustaining capital croc: ae expensines: Aa $433 $400 yours [RS fmezeasn (won-eaar) TTMENDING DEC2022
Slide 15: Capital Structure
CAPITAL STRUCTURE (Sinmitions) Dec31, Dec 31, ‘Mar 31, 2022, 2023, 2024 [Senior Secured Revolver $620 $730 $685 Unsecured Notes Convertible Notes, due 2024 259 54 5a Convertible Notes, due 2029 : 400 400 Unsecured Notes Payable 580 580 580 Total Debt Maturity Values $1,459 $1,764 $1719 Leverage Rati
Slide 16: Overview
OVERVIEW 2023 revenue increase fueled by ten more dry leases of Boeing aircraft plus first three Airbus leases ACMI customers assigned three more 767 freighters to be operated by ATSG cargo airlines Strong cash generation, with Operating Cash Flow up 39% in 2023, Foedstock aircraft secured for the s
Slide 17: 2024 Sustainability Report Highlights
2024 SUSTAINABILITY REPORT HIGHLIGHTS: FATS 2Ehsnasarrnrcer Operational improvements from 2022 to 2023 resulted in arolative reduction in jetfuel usage by 5.5, milion pounds and co2 emissions by 18 milion pounds. ‘We continue toinvest in more fuel-efficient ireratt that promise to further reduce our
Slide 18: Fleet Summary
FLEET SUMMARY FreighterFieat 4 ATSG well-positioned to meet the growing e-commerce demand needs witha strong midsized freighter fleet 4 The B767-300 continues to be flagship offering, with 91 currently in serviceand pecteaeiare fivemore in conversion rem feeaoce _# First three A32Is added to service
Slide 19: Outlook
OUTLOOK 4 Projected Adjusted EBITDA for 2024 tobe $516 million based on customer commitments currently under contract _# Full year 2024 Adjusted EPS to be $ 0.55 - $0.80 _# Expanded and extended flying agreement with Amazon, including the operation of ten additional Boeing 767 freighters by the end
Slide 20: Results of Balloting
AMT he sxssisiont semvices GROUP RESULTS OF BALLOTING
Slide 21: Stockholder Q&A
STOCKHOLDER Q&A
Slide 22: Closing Remarks
AM css asisrons Senses GROUP CLOSING REMARKS THANK YOU FOR JOINING US TODAY!
Slide 23: Appendix
‘AR TRANSPORT SERVICES GROUP APPENDIX
Slide 24: Segment Adjusted EBITDA Non-GAAP Reconciliation
‘SEGMENT ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION p NON-GAAP RECONCILIATION
Slide 25: Segment Adjusted EBITDA Non-GAAP Reconciliation
‘SEGMENT ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION p NON-GAAP RECONCILIATION
Slide 26: Adjusted Earnings Per Share
ADJUSTED EARNINGS PER SHARE NON-GAAP RECONCILIATION (Sin mite) Farnings om Contnuing Operations basic (GAAP) Coin rom warmat evaluation nat tax Conwortibol notesineres charges rat of tox euing Operations clttod (GAAP) ‘Acjustmetns net of ox Conwortibol notesinierws charges rat of tox Setdement ond n
Air Transport Services Group — Shareholder Meeting (May 2024) on 6ix