Air Transport Services Group (NASDAQ: ATSG) reported Q1 EPS of $0.17, $0.05 better than the analyst estimate of $0.12. Revenue for the quarter came in at $237.9 million versus the consensus estimate of $213.64 million.

Outlook

ATSG expects that its Adjusted EBITDA from Continuing Operations for 2017 will be in excess of $260 million, based on its current growth programs and initiatives, and assuming deployments of ten additional 767s and two 737 freighter aircraft with lease customers through the last nine months of 2017. This forecast factors in the effect of the May relocation of Amazon hub operations from Wilmington to the Cincinnati regional airport, and the cessation of those operations formerly performed by ATSG's LGSTX Services business.

ATSG currently projects 2017 capital expenditures of approximately $355 million, mostly for fleet expansion, including modification of eleven 767-300 aircraft.

"Strong competition continues to drive e-commerce merchants worldwide to invest in dedicated networks that can achieve faster throughput of the goods their customers need," Hete said. "Our aggressive fleet investments and expansion into the narrow-body freighter segment expands our leading role in this key growth market."

Compared with amounts for the first quarter of 2016 (except as noted):

• Revenues increased 34 percent to $237.9 million. Excluding revenues from reimbursable airline expenses, revenues increased 23 percent. Revenues from ATSG\'s airline, maintenance, and logistics businesses increased significantly.
• Earnings from Continuing Operations were $9.8 million, or $0.13 per share diluted, compared with $8.2 million, or $0.13 per diluted share a year earlier. These GAAP results include both dollar and share-related effects of warrants issued in March 2016 to Amazon Fulfillment Services, Inc. in connection with operating and lease agreements.
• Adjusted Earnings from Continuing Operations, which exclude non-cash warrant-related adjustments, were $11.2 million, or $0.17 per diluted share, up 33 percent. Adjusted Earnings and other adjusted amounts referenced below are non-GAAP financial measures and reconciled to comparable GAAP results in tables at the end of this release.
• Pre-tax earnings from continuing operations were $16.1 million, up 33 percent. Adjusted Pre-tax Earnings, which exclude the warrant effects along with additional non-cash items, increased 6 percent to $17.0 million.
• Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization, as defined and adjusted in a table later in this release) increased 11 percent to $57.0 million.
• Capital expenditures were $83.8 million, up 17 percent. Share repurchases were $1.5 million, or 90 thousand ATSG shares for the quarter.

For earnings history and earnings-related data on Air Transport Services Group (ATSG) click here.