US lessor and cargo carrier Air Transport Services Group (ATSG) has reported $2bn in revenue for 2022, up 18% on 2021, with $533 million coming in the fourth quarter (Q4 2022).
Pretax earnings were $65 million for Q4 and $263 million for the year, ATSG said, with earnings per share of $2.28 for the year, up 42% on 2021.
Adjusted EBITDA was $641 million, up $100 million or 18%, for the year, but excluded $112 million in federal grants to ATSG’s passenger airline Omni Air. Operating cash flows were given as $472 million and adjusted free cash flow was $285 million.
Revenue was driven by "primarily to a full year of contributions from 2021’s fifteen new leases of 767-300s and seven more aircraft in CMI [crew, maintenance, insurance] service", ATSG said.
The company reported growth investments of $413 million which it said "supported current and projected 20 or more freighter lease deployments in each of 2023 and 2024".
The board approved a new $150 million share repurchase authorisation in November 2022, with shares repurchased coming to nearly 3% of the 74 million shares outstanding at the beginning of 2022.
Giving more detail, ATSG said aircraft leasing and related revenues from external customers were up 3% in Q4 2022 and 17% for the year. CAM’s Q4 pretax earnings decreased 7% to $31 million versus the prior-year quarter, but increased 35% for the year. ATSG said 91 CAM-owned 767 freighter aircraft were out on lease, with 22 CAM-owned aircraft were in or awaiting conversion to freighters. Pretax earnings for the sector were $26 million in 2022 versus $34 million in 2021.
Among the year's highlights, by ATSG's account, were its completion of "a strong schedule of passenger airline missions for government customers, including the resumption of a full schedule of combi service worldwide for the Department of Defense" and the six-year extension and expansion of ATSG’s long-standing commercial relationship with DHL.
"In 2022, our revenues and adjusted EBITDA each grew 18%, with revenues reaching a record $2 billion, and adjusted EBITDA increasing $100 million to $641 million. At the same time, we invested nearly $600 million in our businesses which will allow us to take advantage of the continued attractive leasing market for midsize freighter aircraft. I expect those investments and the outstanding performance of our employees to drive even more robust growth and earnings in the years to come," said Rich Corrado, president and chief executive officer of ATSG.
ATSG expects 2023 to be "an investment year" for the business. “We plan to deliver 20 newly converted aircraft during 2023 and more in 2024, as customer lease deployments are expanded to include the Airbus A330," Corrado said, adding that the deliveries would "solidify our position as the world's largest lessor of main deck freighters".