Air Transport Services Group Inc (ATSG) 2024 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Q2 2024 Air Transport Services Group, Inc. Earnings conference call. (Operator Instructions) I would now like to hand the conference over to your speaker today, Joe Payne, Chief Legal Officer.

您好，感謝您的支持。歡迎參加 2024 年第二季航空運輸服務集團收益電話會議。（操作員指示）現在，我想將會議交給今天的發言人、首席法律官喬·佩恩 (Joe Payne)。

Good morning and welcome to our second quarter 2024 earnings conference call. We issued our earnings release yesterday after the market closed. It's on our website at atsginc.com. Let me begin by advising you that during the course of this call, we will make projections and other forward-looking statements that involve risks and uncertainties. Our actual results and other future events may differ materially from those we described here.

早安，歡迎參加我們 2024 年第二季財報電話會議。我們昨天在市場收盤後發布了收益報告。它在我們的網站 atsginc.com 上。首先我要告訴大家，在本次電話會議中，我們將做出涉及風險和不確定性的預測和其他前瞻性陳述。我們的實際結果和其他未來事件可能與我們在此處描述的情況有重大差異。

These forward-looking statements are based on information, plans, and estimates as of the date of this call. Air Transport Services Group undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions, factors, new information, or other changes. These factors include but are not limited to changes in the market demand for our assets and services, including the loss of customers or reduction in the level of services we perform for customers; our operating airline's ability to maintain on-time service and control costs; the cost and timing with respect to which we are able to purchase and modify aircraft to a cargo configuration; fluctuations in ATSG's traded share price and in interest rates, which may result in mark-to-market charges on certain financial instruments; the number, timing, and scheduled routes of our aircraft deployments to customers; our ability to remain in compliance with key agreements with customers, lenders, and government agencies; the impact of current supply chain constraints; the impact of the current competitive labor market; changes in general economic and/or industry-specific conditions, including inflation and regulatory changes; the impact of geopolitical tensions or conflicts and human health crises; and other factors as contained from time to time in our filings with the SEC, including the Form 10-Q to be filed today.

這些前瞻性陳述是基於本次電話會議之日的資訊、計劃和估計。航空運輸服務集團不承擔更新任何前瞻性聲明以反映基本假設、因素、新資訊或其他變更的義務。這些因素包括但不限於我們資產和服務的市場需求的變化，包括客戶的流失或我們為客戶提供的服務水準的降低；我們營運的航空公司維持準時服務和控製成本的能力；我們購買飛機並將其改裝為貨運配置的成本和時間； ATSG 交易股票價格和利率的波動，可能導致某些金融工具產生以市價計價的費用；我們向客戶部署飛機的數量、時間和預定航線；我們繼續遵守與客戶、貸方和政府機構的關鍵協議的能力；當前供應鏈限制的影響；當前競爭激烈的勞動市場的影響；一般經濟和/或行業特定條件的變化，包括通貨膨脹和監管變化；地緣政治緊張或衝突以及人類健康危機的影響；以及我們向美國證券交易委員會提交的文件中不時包含的其他因素，包括今天提交的 10-Q 表。

We will also refer to non-GAAP financial measures from continuing operations, including adjusted earnings, adjusted earnings per share, adjusted pre-tax earnings, adjusted EBITDA, free cash flow, and adjusted free cash flow. Management believes these metrics are useful to investors in assessing ATSG's financial position and results. These non-GAAP measures are not meant to be a substitute for our GAAP financials. We advise you to refer to the Reconciliations to GAAP measures, which are included in our earnings release and on our website.

我們也將參考持續經營的非公認會計準則財務指標，包括調整後收益、調整後每股盈餘、調整後稅前收益、調整後 EBITDA、自由現金流和調整後自由現金流。管理階層認為這些指標有助於投資者評估 ATSG 的財務狀況和績效。這些非公認會計準則指標並非旨在取代我們的公認會計準則財務指標。我們建議您參閱我們的收益報告和網站上包含的與 GAAP 指標的對帳表。

And now I'll turn the call over to Joe Hete, our Executive Chairman, for his opening comments.

現在，我將把電話轉給我們的執行主席喬·赫特 (Joe Hete)，請他發表開場白。

Thank you, Joe. Good morning, everyone. I want to spend just a moment on the leadership transitions we announced back in June. Mike Berger, previously our President, was appointed as CEO. Jeff Dominick, previously a board member, took over Mike's role as President while I became the Executive Chairman.

謝謝你，喬。大家早安。我想花一點時間談談我們六月宣布的領導層變動。前任總裁 Mike Berger 被任命為執行長。前董事會成員 Jeff Dominick 接替 Mike 擔任總裁一職，我則擔任執行主席。

Many of you already know Mike well from prior earnings calls and investor meetings. He's been with ATSG since 2018 and brings a wealth of knowledge and experience, having worked for major air express companies throughout his career.

你們中的許多人已經透過先前的財報電話會議和投資者會議很了解麥克。他自 2018 年起加入 ATSG，在整個職業生涯中曾在大型航空快遞公司工作，擁有豐富的知識和經驗。

With a background in private equity investing and commercial aerospace markets, Jeff expands ATSG's financial acumen in the aircraft leasing space, and we look forward to you meeting Jeff. As for me and my new role, I will still be heavily involved in the strategy development and the formulation of long-term business objectives for ATSG.

Jeff 擁有私募股權投資和商業航空市場的背景，擴大了 ATSG 在飛機租賃領域的財務敏銳度，我們期待您與 Jeff 會面。至於我和我的新角色，我仍將深度參與 ATSG 的策略發展和長期業務目標的發展。

I'll turn the call over now to Mike to update you on the quarter, and both Jeff and I will be available during the Q&A session. Mike?

現在我將把電話轉給麥克，向你們通報本季的情況，傑夫和我都會在問答環節期間到場。麥克風？

Thank you, Joe, and thank you to everyone joining the call today as well. I'm excited to be speaking to you on my first earnings conference call as CEO. I want to thank Joe Hete for his leadership and guidance as CEO after assuming the role last November and for continuing to lend us his skills and experience in his new role.

謝謝你，喬，也謝謝今天參加電話會議的每個人。我很高興作為執行長在我的第一次財報電話會議上與大家交談。我要感謝喬·赫特 (Joe Hete) 自去年 11 月擔任執行長以來的領導和指導，以及他在新職位上繼續向我們提供技能和經驗。

I'm excited about the opportunity ahead of us here at ATSG. We have an unparalleled fleet of in-demand midsize freighters going to market with a lease-plus strategy which differentiates us from our competitors. Last quarter, we communicated a key milestone: our expanded and extended flying agreement with Amazon.

我對 ATSG 面臨的機會感到非常興奮。我們擁有一支無與倫比的、需求旺盛的中型貨機隊，並採用租賃加策略進入市場，這使我們有別於競爭對手。上個季度，我們傳達了一個重要的里程碑：與亞馬遜擴大並延長了飛行協議。

We will fly 10 additional aircraft they provide this year, and we remain on track with prior expectations to be fully ramped up on those 10 aircraft by peak season. That will bring us to fifty-one 767 aircraft we operate for Amazon, including 30 we lease to them. Comparisons of our financial results for the second quarter to prior year were principally affected by fewer leased 767-200 freighters as expected.

我們今年將使用他們提供的另外 10 架飛機，並且我們仍按先前的預期在旺季全面投入使用這 10 架飛機。這樣，我們為亞馬遜運營的 767 飛機將達到 51 架，其中包括 30 架租賃給他們的飛機。與去年同期相比，我們的第二季財務業績主要受到預期租賃的 767-200 貨機數量減少的影響。

Our results for the quarter did come in above our internal expectations. Also, we are encouraged to report the progress we've made on leasing available freighters. Since the end of June, we've leased four additional 767 freighters to external customers.

我們本季的業績確實超出了我們的內部預期。此外，我們很高興地報告我們在租賃可用貨機方面取得的進展。自 6 月底以來，我們已向外部客戶租賃了另外 4 架 767 貨機。

CAM also has lease commitments for our first two converted Airbus 330 aircraft expected to deliver in the fourth quarter of the year and is optimistic about future leases of other available aircraft. All these aircraft are headed for international markets where they will facilitate global trade, further demonstrating ATSG as an enabler of e-commerce growth. Importantly, we continue to execute the plans we laid out for 2024 with a focus on safety, customer satisfaction, and cost control.

CAM也承諾租賃首兩架改裝的空中巴士330飛機，預計今年第四季交付，並對未來其他可用飛機的租賃持樂觀態度。所有這些飛機都將進入國際市場，促進全球貿易，進一步證明 ATSG 是推動電子商務成長的推動者。重要的是，我們將繼續執行 2024 年制定的計劃，重點是安全、客戶滿意度和成本控制。

I want to thank our ATSG team for their dedication and striving toward our goals. We're on track to exceed our stated goal of positive free cash flow for the year with $107 million generated through June and an expectation of additional free cash flow for the rest of the year. We are again raising our adjusted EBITDA outlook and have lowered our capital expenditure outlook for 2024. We remain focused on realizing the benefits of our business model and have the right team, the right assets, and the right strategy in place.

我要感謝我們的 ATSG 團隊的奉獻和為我們的目標而奮鬥。我們預計將超額完成今年自由現金流的既定目標，截至 6 月份，我們的自由現金流已達到 1.07 億美元，預計今年剩餘時間將產生更多的自由現金流。我們再次上調了調整後的 EBITDA 預期，並下調了 2024 年的資本支出預期。我們始終專注於實現我們的商業模式的優勢，並擁有合適的團隊、合適的資產和合適的策略。

I will now turn the call over to Quint Turner to discuss our financial results for the second quarter. Quint?

現在我將把電話轉給 Quint Turner，討論我們第二季度的財務表現。昆特？

Thanks, Mike, and welcome to everyone joining us this morning. I'll start on slide four, which summarizes our financial results for the quarter. Revenues were down $41 million or 8% versus a year ago to $488 million. This was driven by reductions in both our CAM and the ACMI services segments. In the second quarter, we saw GAAP pre-tax earnings of $10.7 million down from pre-tax earnings of $49.7 million in the prior year period. This resulted in a diluted earnings per share of $0.11 versus diluted earnings per share of $0.49 in the second quarter of 2023.

謝謝，麥克，歡迎大家今天早上加入我們。我將從第四張投影片開始，它總結了我們本季的財務表現。營收較去年同期下降 4,100 萬美元，至 4.88 億美元，降幅為 8%。這是由於我們的 CAM 和 ACMI 服務部門的減少所致。第二季度，我們的 GAAP 稅前利潤為 1,070 萬美元，低於去年同期的 4,970 萬美元。這導致每股攤薄收益為 0.11 美元，而 2023 年第二季的每股攤薄收益為 0.49 美元。

On an adjusted basis, pre-tax earnings fell $41 million to $17 million and EPS was down by $0.38 to $0,19. Adjusted EPS did improve sequentially by $0.03 from the first quarter. In our aircraft leasing segment, revenues decreased 7% as CAM's fleet of externally leased aircraft expanded by 1% since June 2023. That includes 14 incremental new leases, less the 13 aircraft that came off lease over the last 12 months, and their related engine PCB revenues.

經調整後，稅前收益下降 4,100 萬美元至 1,700 萬美元，每股收益下降 0.38 美元至 0.19 美元。調整後的每股收益確實比第一季環比增長了 0.03 美元。在我們的飛機租賃部門，由於 CAM 的外部租賃飛機機隊自 2023 年 6 月以來增加了 1%，收入下降了 7%。其中包括14份增量新租約（減去過去12個月內租約到期的13架飛機）及其相關的發動機PCB收入。

At the end of the second quarter, 87 CAM-owned aircraft were leased to external customers. CAM's pre-tax earnings were down $16 million for the quarter, reflecting $9 million more in depreciation, a $6 million revenue decline from fewer 767-200 engine cycles, and $4 million more interest expense versus the prior year.

截至第二季末，CAM自有飛機共有87架出租給外部客戶。CAM 本季的稅前利潤下降了 1,600 萬美元，其中折舊增加了 900 萬美元，由於 767-200 發動機循環次數減少導致收入下降 600 萬美元，利息支出較上年增加 400 萬美元。

In our ACMI services segment, we reported a pre-tax loss of $7 million compared with a gain of $24 million in the second quarter of last year. Total block hours flown by our three airlines were down 10% versus the prior year quarter. Our cargo airlines flew 11% fewer hours across our customers' delivery networks. ACMI services results were also affected by a $3 million increase in non-cash amortization expense for the Amazon warrants. ACMI services also experienced increased expenses for maintenance, travel, and ground service rates as the average flight segment was shorter than a year ago.

在我們的 ACMI 服務部門，我們報告的稅前虧損為 700 萬美元，而去年第二季的利潤為 2,400 萬美元。我們三家航空公司的總飛行小時數與去年同期相比下降了 10%。我們的貨運航空公司在客戶配送網路中的飛行時間減少了 11%。亞馬遜認股權證非現金攤銷費用增加 300 萬美元，也影響了 ACMI 服務的表現。由於平均航段比一年前短，ACMI 服務的維護、差旅和地面服務費用也增加了。

As a reminder, we executed an expanded agreement with Amazon announced in May to begin flying 10 additional aircraft at ABX Air in the second half of the year. Three of these are flying now, and we expect to have all of them flying in time for peak season in the fourth quarter, when additional pilot training and transition costs will be largely behind us. The fourth quarter will also include benefits of seasonal peak flying opportunities and separately scheduled pricing increases under certain flying contracts.

提醒一下，我們執行了 5 月宣布的與亞馬遜的擴大協議，將從今年下半年開始在 ABX Air 上投入另外 10 架飛機。其中三架飛機目前正在飛行，我們預計所有飛機將在第四季度的旺季前飛行，屆時額外的飛行員培訓和過渡成本將基本消失。第四季度還將享受季節性高峰飛行機會的優惠以及某些飛行合約下單獨安排的價格上漲的優惠。

Turning to the next slide, our second quarter adjusted EBITDA was $130 million, down $27 million from the prior year period. CAM's adjusted EBITDA decreased by $4 million, and ACMI services and other decreased by $23 million. CAM's decline was again driven by 767-200 lease returns and fewer engine cycles operated by the 200s remaining in service, resulting in lower power-by-cycle engine revenues. The decrease in ACMI services and other was driven by fewer block hours as well as increased expenses for maintenance, travel, and ground services.

下一張投影片顯示，我們第二季的調整後 EBITDA 為 1.3 億美元，較去年同期下降 2,700 萬美元。CAM 的調整後 EBITDA 減少了 400 萬美元，ACMI 服務及其他業務減少了 2,300 萬美元。CAM 的下滑再次受到 767-200 租賃回歸和剩餘服役的 200 型飛機的發動機運行循環次數減少的影響，導致按循環功率計算的發動機收入下降。ACMI 服務和其他服務的減少是由於飛行間隔時間減少以及維護、旅行和地面服務費用增加。

Slide six details our capital spending on a trailing 12-month basis. Total CapEx for the quarter was $70 million, consisting of $43 million in growth and $27 million in sustaining CapEx. Our CapEx spending is down 64% year-over-year for the second quarter, and for the full year, 2024, we projected a decline of more than $400 million in capital expenditures compared to 2023.

第六張投影片詳細介紹了我們過去 12 個月的資本支出。本季的總資本支出為 7,000 萬美元，其中包括 4,300 萬美元的成長資本支出和 2,700 萬美元的維持資本支出。我們的第二季資本支出年減 64%，而 2024 年全年，我們預計資本支出將比 2023 年下降 4 億多美元。

The next slide updates adjusted free cash flow as measured by operating cash flow, net of sustaining CapEx. Operating cash flow was $137 million in the second quarter this year. While that was down $55 million versus the prior year period, we still generated $110 million of adjusted free cash flow. Furthermore, as a result of the reduced growth spending, as well as $25 million in asset sale proceeds, we generated $92 million of free cash flow in the quarter. This brings the year-to-date total to $107 million.

下一張投影片更新了調整後的自由現金流，以營運現金流減去維持資本支出來衡量。今年第二季經營現金流為1.37億美元。雖然與去年同期相比下降了 5,500 萬美元，但我們仍然產生了 1.1 億美元的調整後自由現金流。此外，由於成長支出的減少以及 2,500 萬美元的資產出售收益，我們在本季產生了 9,200 萬美元的自由現金流。這使得年初至今的總額達到 1.07 億美元。

On slide eight, you can see that available credit under our bank revolver in the US and abroad was $489 million at the end of the second quarter as we reduced total debt by $131 million since the beginning of the year. Our plan now calls for us to reduce our adjusted EBITDA leverage ratio to around 2.9 times by the end of this year compared with 3.2 times at the end of last year. We continue to maintain healthy liquidity with unencumbered aircraft assets of $1.4 billion.

在第八張投影片中，您可以看到，由於自今年年初以來我們已將總債務減少了 1.31 億美元，因此第二季末我們在美國和海外的銀行循環信貸下的可用信貸額度為 4.89 億美元。我們的計劃是，到今年年底，將調整後的 EBITDA 槓桿率從去年年底的 3.2 倍降低至 2.9 倍左右。我們繼續保持健康的流動性，擁有價值 14 億美元的未支配飛機資產。

Now, I will turn the call back over to Mike to discuss our updated outlook.

現在，我將把電話轉回給麥克，討論我們的最新展望。

Thanks, Quint. Turning to the next slide, I'd like to spend some time discussing our outlook and assumptions for 2024. Including the additional leases we signed since June, ATSG now expects adjusted EBITDA of approximately $526 million in 2024, an increase of $10 million from the outlook we provided in May, with the increase concentrated in the fourth quarter.

謝謝，昆特。翻到下一張投影片，我想花點時間討論我們對 2024 年的展望和假設。包括我們自 6 月以來簽署的額外租約，ATSG 現在預計 2024 年的調整後 EBITDA 約為 5.26 億美元，比我們 5 月份提供的預期增加 1000 萬美元，增幅集中在第四季度。

The contribution from these leases was included in our original $30 million of potential but uncommitted additional adjusted EBITDA we laid out in February. We expect the third quarter adjusted EBITDA to be similar to the second quarter with a marked improvement in the fourth quarter.

這些租賃的貢獻已包含在我們 2 月提出的最初 3000 萬美元潛在但未承諾的額外調整後 EBITDA 中。我們預計第三季調整後的 EBITDA 將與第二季相似，第四季將顯著改善。

As a reminder, this forecast also excludes any contribution from additional leases not currently under contract, which could generate additional adjusted EBITDA. We continue to see more interest in our newly converted freighters while maximizing value from the 767-200 aircraft that finished their lease terms. This includes utilizing three as spares to support additional Amazon flying.

提醒一下，該預測還不包括目前尚未簽訂合約的額外租賃的任何貢獻，這些租賃可能會產生額外的調整後 EBITDA。我們繼續看到市場對新改裝貨機的興趣日益濃厚，同時我們也在最大限度地利用已結束租賃期的 767-200 飛機的價值。其中包括利用三架飛機作為備用飛機來支援亞馬遜的額外飛行。

As mentioned, we are reducing our total capital spending target to $390 million versus $410 million we projected in May. This includes $165 million for sustaining CapEx and $225 million for growth. The growth spending outlook includes the completion of 17 aircraft that were in the process of conversion at the start of the year and seven feedstock purchases including one additional Airbus A330 later this year.

如上所述，我們將總資本支出目標從 5 月預測的 4.1 億美元下調至 3.9 億美元。其中包括 1.65 億美元用於維持資本支出和 2.25 億美元用於成長。成長支出前景包括今年年初完成 17 架正在改裝的飛機和今年稍後購買 7 架原料，其中包括一架空中巴士 A330。

As I mentioned earlier, we generated $107 million of free cash flow through June and we expect continued improvement during the rest of the year. This improvement stems largely from the $400 million reduction in our CapEx spending versus a year ago. We continue to believe our midsize freighter assets will remain in high demand and our unique lease plus strategy positions us for more freighter leases and superior customer satisfaction. We are focused on safe, efficient operations as we deliver our 2024 goals and look forward to an even better 2025.

正如我之前提到的，截至 6 月份，我們產生了 1.07 億美元的自由現金流，我們預計今年剩餘時間內將繼續改善。這項改善主要源自於我們的資本支出與一年前相比減少了 4 億美元。我們始終相信，我們的中型貨機資產將維持旺盛的需求，而我們獨特的租賃加策略將使我們能夠獲得更多的貨機租賃和更高的客戶滿意度。我們專注於安全、高效的運營，實現 2024 年的目標，並期待 2025 年會更加美好。

That concludes our prepared remarks. Joe, Quint, and I, along with Jeff Dominick, our president, are ready to answer questions. Can we have the first question?

我們的準備好的演講到此結束。喬、昆特和我，還有我們的總裁傑夫·多明尼克，已經準備好回答問題了。我們可以問第一個問題嗎？

(Operator Instructions) Frank Galanti, Stifel

（操作員指示）Frank Galanti，Stifel

Yeah, great. I appreciate you taking my question. I wanted to ask sort of about demand for the midsize freighters, what you're seeing, right? Obviously, you had more lease than you anticipated -- beginning of the year and last quarter. But sort of given how many of the older planes are coming out of service, how do you see the supply-demand balance for that freighter class?

是的，很棒。感謝您回答我的問題。我想問一下中型貨機的需求，您看到了什麼，對嗎？顯然，您的租賃量比您預期的要多——無論是年初還是上個季度。但考慮到有多少老式飛機即將退役，您如何看待該類貨機的供需平衡？

Yeah, Frank, it's Mike. We still see solid demand for the mid wide-body aircraft. We've delivered 14 aircraft in the last 12-month period. As we've announced, we've delivered eight so far this year. And as I said, we know we're going to deliver the two A330s, as we talked about. So, we fully expect to deliver double-digit aircraft by the end of this year and hope to carry that continuing momentum into 2025.

是的，弗蘭克，我是麥克。我們仍然看到中寬體飛機的強勁需求。我們在過去 12 個月內交付了 14 架飛機。正如我們所宣布的，今年迄今為止我們已經交付了八份。正如我所說的，我們知道我們將交付兩架 A330，正如我們談論的那樣。因此，我們完全預計今年年底前交付兩位數的飛機，並希望將這一勢頭持續到 2025 年。

Okay. That's helpful. And then sort of switching gears a little bit to the ACMI business. It looked like there were negative pre-tax earnings on the segment, which is worse than I thought. Can you sort of talk about the puts and takes in the quarter between lower block hours or more Amazon flying -- sorry Amazon CapEx or OpEx to get the pilots trained up? And then relative to -- what do you expect on a go-forward basis?

好的。這很有幫助。然後稍微轉換一下話題，轉向 ACMI 業務。看起來該部門的稅前收益為負，這比我想像的還要糟糕。您能否談談本季在減少飛行小時數和增加亞馬遜飛行次數（對不起，亞馬遜的資本支出或營運支出，用於對飛行員進行培訓）之間的得失？然後相對而言—您對未來有什麼期望？

Yeah, Frank, it's Quint. Thanks for the question. Yeah, and the biggest impact in terms of the second quarter ACMI was just block hours. And block hours were down. As you know, we had the final -- the smaller 762s that we talked about last year that were coming back from Amazon. We got all those back right at the beginning of the quarter, the second quarter.

是的，法蘭克，我是昆特。謝謝你的提問。是的，就第二季的 ACMI 而言，最大的影響就是工作時間。且工作時間也減少了。正如你所知，我們有最後的——我們去年談論過的較小的 762，它們從亞馬遜回來了。我們在本季度，也就是第二季度初就收回了這些。

And so, we had reduced block hours flown in their network. Of course, as Mike said, we're going to begin adding aircraft. The larger 300s, we went three on and another seven expected to come on the second half of this year. And then Omni's block hours, our passenger block hours were also down, of course, versus the prior year. And so, those are the biggest impact. And we also had -- in terms of that, we had some warrant amortization with respect to the new Amazon arrangement. We had extended some of the warrants that had been previously granted to Amazon, and the amortization of those is driving about a $3 million impact for that.

因此，我們減少了其網路內的飛行時間。當然，正如麥克所說，我們將開始增加飛機。目前，我們已經生產了三架大型 300 型飛機，預計今年下半年還會生產七架。然後是 Omni 的運行時間，我們的乘客運行時間當然也比去年同期減少了。所以，這些都是最大的影響。就此而言，我們也針對新的亞馬遜安排進行了一些認股權證攤提。我們延長了先前授予亞馬遜的部分認股權證，這些認股權證的攤銷將產生約 300 萬美元的影響。

Now, that said, in terms of the -- what were our expectations for the balance of the year, we do expect ACMI services as a segment to be profitable for the year. And again you saw some commentary in the release. It's weighted to the fourth quarter. And there's a few reasons for that, of course, there's always peak. There's the timing of some scheduled contractual price increases that are coming there. There's some seasonal charter opportunities, peak season opportunities.

那麼，就我們對今年剩餘時間的預期而言，我們確實預計 ACMI 服務部門今年將實現盈利。您再次在新聞稿中看到了一些評論。其權重集中在第四季。當然，這其中有幾個原因，總會有高峰。一些預定的合約價格上漲的時間已經確定。有一些季節性的包機機會和旺季的機會。

And so we do expect that for the full year, ACMI services, which is down for the first half in the lost position by about $10.6 million, to end up profitable for the full year. And I think they'll carry some momentum into 2025 with a larger fleet and some improved margins.

因此，我們確實預計，ACMI 服務公司上半年的虧損額約為 1,060 萬美元，但最終將實現全年獲利。我認為，隨著船隊規模擴大和利潤率提高，它們將在 2025 年繼續保持強勁勢頭。

This is Joe. Frank, on top of that, you got the elimination by the time we get to 4Q of all the gear up costs for the Amazon business, as you mentioned, in terms of pilot training, getting maintenance technicians trained up, et cetera. So, that will be behind us by the time we get to the, call it, November timeframe.

這是喬。弗蘭克，除此之外，正如您所說，到第四季度，亞馬遜業務的所有裝備成本都已消除，包括飛行員培訓、維修技術人員培訓等。因此，到 11 月時，這個問題就將過去了。

Perfect. Really appreciate it. Thank you

完美的。真的很感激。謝謝

Christopher Stathoulopoulos, SIG.

克里斯托弗·斯塔索洛普洛斯（Christopher Stathoulopoulos），SIG。

So, just to follow up on this last point here on the pre-tax contribution for ACMI. So, Quint, profitable in 4Q, you know, just want to kind of better understand if you contextualize that. Is that slightly above break-even? And as we think about, I know there's a lot of these one-time costs going off, but just looking at '23, you did around $32 million 2019 pre-pandemic around $32 million.

因此，我們只是想跟進一下關於 ACMI 稅前貢獻的最後一點。因此，Quint，第四季度實現盈利，您知道，如果您將其具體化，我們就能更好地理解。這是否略高於損益平衡點？當我們思考時，我知道有很多一次性成本發生，但只看23年，2019年疫情前的成本約為3,200萬美元。

How should we think about pre-tax earnings and ACMI as a percentage of your EBITDA mix for '25, given the expanded TSA with Amazon and all these other additional aircraft that are being placed? Thanks.

考慮到亞馬遜的 TSA 擴大以及正在部署的所有其他額外飛機，我們應該如何看待稅前收益和 ACMI 佔 25 年 EBITDA 組合的百分比？謝謝。

Well, it might be a tad early for specific '25 guidance. But in terms of the remainder of this year, Chris, you know, it's really, again, the fourth quarter where you're going to see -- I think, ACMI service improving its profitability and getting positive for the full year.

嗯，現在給出具體的 25 條指導可能還為時過早。但就今年剩餘時間而言，克里斯，你知道，實際上，在第四季度，你將會看到——我認為，ACMI 服務的盈利能力將提高，全年業績將呈現積極態勢。

I think the third quarter is going to, because we're still onboarding the aircraft from Amazon, and we've got those transitional costs that Joe mentioned in the third quarter, and that's going to be a factor. And the fourth quarter, is when we expect to have them all onboard. And that combined with just the timing of sort of some annual adjustments that, will take place on some of these contracts, I think will really provide a nice tailwind for ACMI services in the fourth quarter.

我認為第三季會出現這種情況，因為我們仍在從亞馬遜引進飛機，而且我們有喬在第三季提到的過渡成本，這將是一個因素。我們預計在第四季他們將全部加入。再加上一些合約將進行的一些年度調整的時間安排，我認為這將為第四季度的 ACMI 服務提供良好的順風。

I mean, as far as next year of course, we'll be speaking to that guidance more on the next quarterly call for the full year. But I think ACMI services is going to make headway next year, assuming contracts and business volumes remain in place as they are today. We would expect it to improve.

我的意思是，當然就明年而言，我們將在下一次全年季度電話會議上更多地談論這項指引。但我認為，假設合約和業務量保持在目前的水平，ACMI 服務明年將取得進展。我們希望情況會有所改善。

As you know, they've had to absorb some aircraft coming back with the 767-200s, and those are all back now on those ACMI contracts. So I think they're set to make progress on a go-forward basis.

如您所知，他們不得不吸收一些與 767-200 一起回歸的飛機，這些飛機現在都回到了 ACMI 合約中。因此我認為他們將會繼續取得進展。

We think about and come up with our own bottoms-up analysis using all the fleet stats that you've given here for our '25 enterprise EBITDA. Is it fair to say that ACMI as a percentage of enterprise could fall somewhere between, call it, 25% and 30% of adjusted total EBITDA for next year?

我們會使用您在此處提供的所有車隊統計數據來思考並得出我們自己的自下而上的分析，以了解我們的 '25 企業 EBITDA。是否可以說，ACMI 佔企業的百分比明年會落在調整後總 EBITDA 的 25% 到 30% 之間？

Yeah, I think so. Yeah, absolutely.

是的，我認為是這樣。是的，絕對是如此。

Okay. And as a follow-up here with the outlook here for lower interest rates, how should we think about, I guess, lease rates or if you want to speak to, I guess, lease factors into 2025? Thank you -- or lease rate factors.

好的。作為對低利率前景的後續關注，我們應該如何看待租賃利率，或者如果您想談談 2025 年的租賃因素？謝謝——或者租賃率因素。

In regards to the rates, as I've mentioned on a number of calls, we've seen for 767 specifically, lease rates be very, very stable over the last several years. We haven't seen much fluctuation at all through the different cycles that we've undertaken over the last few years.

關於費率，正如我在多次電話會議中提到的那樣，我們發現，特別是 767 的租賃費率在過去幾年中非常非常穩定。在過去幾年經歷的不同周期中，我們沒有看到太大的波動。

In terms of the lease rate factors, that can vary a little bit based on the feedstock costs, depending on different aircraft types as we go. Aircraft availability, specifically around the 330, have been generally higher based on some of the issues that Airbus has had getting their new product on the 350 into service. But overall, in general, rates have stayed very, very constant.

就租賃費率因素而言，這可能會根據原料成本而略有不同，具體取決於不同的飛機類型。由於空中巴士 350 型新產品投入使用時遇到一些問題，飛機的可用性（特別是 330 型飛機的可用性）總體較高。但總體而言，利率總體上保持非常非常穩定。

Okay. If I could just slip in one more here. I think you have four open labor deals, two on the pilots, two on the FAs, between ATI and Omni. Just where are we on negotiations and sort of any sort of timelines we should look for? Thanks.

好的。如果我可以在這裡再插入一點的話。我認為 ATI 和 Omni 之間有四項未完成的勞資協議，兩項針對飛行員，兩項針對 FA。我們的談判進展如何？謝謝。

I think as I've said on previous calls right now, we don't expect to have the pilots are the primary drivers from a cost standpoint to get any agreements until sometime in 2025. Negotiations continue to progress under the auspices of the mediation, National Mediation Board. So that's baked into our numbers looking to the fourth quarter where we don't anticipate having any additional costs as a result of settling up any of those labor agreements.

我想正如我在之前的電話會議中所說的那樣，從成本角度來看，我們預計直到 2025 年的某個時候，飛行員都不會成為達成任何協議的主要驅動因素。在國家調解委員會的主持下，談判持續取得進展。因此，這已經反映在我們第四季的數據中，我們預計不會因達成任何勞動協議而產生任何額外成本。

Okay. Thanks, Joe.

好的。謝謝，喬。

Michael Ciarmoli, Truist Securities

Truist Securities 的 Michael Ciarmoli

Hey, good morning, guys. Thanks for taking the question. Just to stay on that, on the labor front with the pilots, is there any increased disruption there? Are you seeing any turnover from pilots? I mean, I think you've called out crew training costs, but is that a factor or any kind of headwind on expenses there from that just overhang?

嘿，大家早安。感謝您回答這個問題。繼續問這個問題，在飛行員的勞工方面，那裡的混亂情況有沒有加劇？您是否發現飛行員的流動狀況？我的意思是，我認為你已經提到了機組人員培訓費用，但這是一個因素還是由此產生的任何費用阻力？

No, in fact the attrition has dropped off markedly since last year, almost down probably about 50% from where it was a year ago, which reduces our -- our turnover costs. But we do have the gear up costs associated with the additional Amazon tails baked in there. As far as disruptions, no disruptions relative to crews. I mean, everybody's doing the job they're supposed to do on a day-in, day-out basis of moving the airplanes on a timely basis for our customers.

不，事實上，自去年以來，員工流動率已經明顯下降，比一年前幾乎下降了 50％ 左右，這降低了我們的人員流動成本。但我們確實存在與附加亞馬遜尾翼相關的裝備成本。就中斷而言，沒有發生與機組人員相關的中斷。我的意思是，每個人日復一日地做他們應該做的工作，及時為我們的客戶運送飛機。

I think it's worthwhile just to reiterate, you know, the amended deal that we got with ABX Air through 2030. We're really proud of that deal as well as establishing what we're --what our expectations are going forward.

我認為有必要重申我們與 ABX Air 達成的至 2030 年的修訂協議。我們對這筆交易感到非常自豪，同時也確定了我們對未來的期望。

Got it. Okay. And then just generally on the cargo market, I mean, you talked about ACMI and the block hours. Are you seeing any pressure just with the continued increase of passenger planes and that underbelly storage?

知道了。好的。然後一般來說，在貨運市場上，您談到了 ACMI 和飛行時間。隨著客機數量的不斷增加和機腹儲存空間的增加，您是否看到了任何壓力？

Not from a belly standpoint. We don't see any pressure. Keep in mind the majority of our customers and specifically our main customers fly within the major integrator networks. So, when they're flying networks, they don't have a tendency to get the variability piece of it, from a seasonality standpoint and available capacity standpoint. So, we've seen very much stability in that side of the business.

不是從腹部的角度來看。我們沒有看到任何壓力。請記住，我們的大多數客戶，特別是我們的主要客戶都在主要整合商網路內飛行。因此，當他們飛行網路時，從季節性和可用容量的角度來看，他們往往不會受到變化的影響。因此，我們看到該方面的業務非常穩定。

Okay. Last one for me. I don't know if I missed it. The $25 million of property and equipment proceeds, what did that stem from and should we expect any more of those in the second half of the year?

好的。對我來說是最後一個。我不知道我是否錯過了。2500 萬美元的房地產和設備收益來自何處？

Yeah. Michael, it's Quint. There were five airframes that, we sold aircraft. A couple of 300s and then three 767-200s that made that up. And keep in mind, like the 300s, those are unmodified. We were monetizing. As you know, we had some assets that that were not in conversion that were sort of awaiting conversion.

是的。邁克爾，我是昆特。我們出售的飛機有五架。其中包括幾架 300 型飛機和三架 767-200 型飛機。請記住，與 300 一樣，它們是未經修改的。我們正在貨幣化。如您所知，我們有一些尚未轉換的資產正在等待轉換。

So, we were opportunistic and took that opportunity to move some of those. And as we've been saying, we've had customers interested in buying some of these 767-200s that came back. And some of those customers, of course, will continue to procure engine power from us, which is good. So, we --we monetize some assets. And as far as in the future, we'll be opportunistic. But, you know, as it's something we don't typically that often do.

因此，我們抓住機會，並利用這個機會轉移了其中的一些。正如我們所說的那樣，有一些客戶對購買部分回來的 767-200 感興趣。當然，其中一些客戶將繼續向我們購買引擎動力，這是件好事。所以，我們將一些資產貨幣化。就未來而言，我們將會抓住機會。但你知道，我們通常不會常常做這樣的事。

Okay. Perfect. Thanks, guys. I'll jump back in the queue. Thank you.

好的。完美的。謝謝大家。我將重新回到隊列中。謝謝。

Ian Zaffino, Oppenheimer

伊恩·扎菲諾，奧本海默

Hey, good morning. This is Isaac Sellhausen on for Ian. Thanks for taking all the questions. Could you just provide a brief overview on the timeline of conversions as we move through the rest of the year? I know you mentioned the two A330s are expected to be converted in the fourth quarter. But could you also just touch on those 767s, and maybe how you think about the timing of those with respect to the demand outlook and, potential for additional leases? Thanks.

嘿，早安。這是 Ian 的 Isaac Sellhausen。感謝您回答所有問題。您能否簡單介紹今年剩餘時間內轉換的時間表？我知道您提到兩架 A330 預計將在第四季進行改裝。但是您能否談談 767 飛機，以及您如何看待這些飛機的需求前景和額外租賃的可能性？謝謝。

Yes. Thanks for the question. We expect to deliver, as I said earlier, a few more aircraft. From a 767 conversion standpoint, we're still actively converting aircraft, with IAI in Tel Aviv. And we see the continuous demand for more 767s on a go-forward basis into 2025. We've often said and we still firmly believe that the 767 is the heartbeat of our company. And we will continue to convert 767s as they're in demand.

是的。謝謝你的提問。正如我之前所說，我們預計將交付更多飛機。從 767 改裝的角度來看，我們仍在與特拉維夫的 IAI 合作積極改裝飛機。我們預計到 2025 年對 767 的需求將持續增加。我們經常說並且仍然堅信 767 是我們公司的心跳。由於 767 的需求旺盛，我們將繼續改裝它們。

Okay. Understood. And then as a quick follow-up on the passenger block hours or just flying at ACMI, could you -- I think you mentioned a little bit in the prepared remarks on Omni. Maybe you could just help us understand, where things are there as far as military flying and activity for them. Thanks.

好的。明白了。然後，作為對乘客飛行時間或僅在 ACMI 飛行的快速跟進，您可以 - 我認為您在準備好的關於 Omni 的評論中提到了一點。也許您可以幫助我們了解那裡的軍事飛行和活動情況。謝謝。

Yeah. In terms of the Omni hours as we said, I think the passenger block hours were up versus a year ago by about 4% or so. However, on a sequential basis there, -- not anything like that. They're doing a bit better than that on a sequential basis, actually being up on a sequential basis versus the first quarter.

是的。正如我們所說，就全時營運時間而言，我認為客運營運時間比一年前增加了約 4％ 左右。然而，從連續性角度來看，情況並非如此。從環比來看，他們的表現要好一些，實際上與第一季相比是環比上升的。

I think that the exercises, as you know, the visibility is always a little bit tougher on the Omni flying. However it is, third quarter is usually not a bad quarter for them. Their busiest month is in October, typically for the timing of exercises, but then they tend to fall off after that.

我認為，如你所知，在演習中，全向飛行的能見度總是有點困難。不管怎樣，第三季對他們來說通常不是一個糟糕的季度。他們最忙碌的月份是十月份，通常是為了安排演習，但那之後他們的工作就沒那麼忙了。

And so it's a more normal pattern. We're getting to that point of the year where there's a contractual increase, with the government's fiscal year beginning in October, and that's going to be helpful. So I think, we're expecting it to be relatively stable the second half of the year, similar to the first half.

這是一種更正常的模式。隨著政府財政年度從十月開始，我們即將到達合約金額增加的一年節點，這將會很有幫助。因此我認為，我們預計下半年會相對穩定，與上半年相似。

Okay, great. Thank you very much.

好的，太好了。非常感謝。

(Operator Instructions) Ben Rubenstein, Robotti & Company.

（操作說明）Ben Rubenstein，Robotti & Company。

Good morning. Thanks for taking my question. So, at the investor day last year, you talked about, you had a slide that showed the estimated carrying value of your planes being $350 million less than the market value. I'm just curious where that stands today.

早安.感謝您回答我的問題。所以，在去年的投資者日上，您談到，您的幻燈片顯示，您的飛機的估計帳面價值比市場價值低 3.5 億美元。我只是好奇今天的情況如何。

That was based upon, what the cost to convert aircraft is, adjusted for the average age since conversion, and taking into account the useful life post-conversion, which is, about 20 years plus. And actually, the cost to convert has gone up since then. Like a lot of things, inflation has affected that.

這是基於飛機改裝成本，根據改裝後的平均使用年限進行調整，並考慮到改裝後的使用壽命，約 20 多年。事實上，轉換成本從那時起就已經上升了。與許多事情一樣，通貨膨脹也對此產生了影響。

So, to produce that fleet of aircraft today has gone up, only gone up since investor day. And so, as Mike stated a minute ago, the mid-size freighter is still in demand, as the big driver for that is e-commerce growth and network flying is where those aircraft are deployed.

所以，如今生產該機隊飛機的成本已經上升，自投資者投資之日起就一直在上升。因此，正如麥克剛才所說，中型貨機仍然有需求，因為其最大驅動力是電子商務的成長，而網路飛行是這些飛機的部署地點。

So, I don't think that's really changed. Of course, the aircraft have aged a little since September, and that, depreciation would also be impacted. But if we ran that calculation again today, I don't think that has changed.

所以，我認為這並沒有真正改變。當然，自9月以來飛機已經有些老化，折舊也會受到影響。但如果我們今天再次進行計算，我認為情況並沒有改變。

Okay. Thanks. And then, just quick, on the convert, the converts due in 2029, is there any willingness or ability to repurchase those?

好的。謝謝。然後，簡單問一下，關於 2029 年到期的轉換債券，是否有意願或能力回購這些債券？

You know, I guess, in terms of buying the converts back or buying stock after convert, I mean, what are you asking?

你知道，我想，就回購轉換後的股票或購買轉換後的股票而言，我的意思是，你在問什麼？

I mean, if you could buy them back at a discount, why not do that? I'm just curious if that's something that you guys thought about.

我的意思是，如果你可以以折扣價買回來，為什麼不這樣做呢？我只是好奇你們是否考慮過這個事情。

Yeah, I mean -- I guess anything is possible, but those aren't -- that would have to be something that both parties would want to do, and it would be a negotiation, obviously.

是的，我的意思是——我想一切皆有可能，但那不是——那必須是雙方都願意做的事情，而且顯然這將是一場談判。

Thank you.

謝謝。

Thank you. I would now like to turn the call back over to Mike Berger for any closing remarks.

謝謝。現在我想將電話轉回給麥克·伯傑，請他做最後發言。

Thank you. I want to express my appreciation to all of our employees across the ATSG companies for all the work they do every day for our great company. I also want to give a shout-out to all of our customers. Our teams are super focused on delivering customer satisfaction every day.

謝謝。我要向 ATSG 公司的所有員工表示感謝，感謝他們每天為我們偉大的公司所做的一切工作。我還想向我們所有的客戶致以謝意。我們的團隊每天都高度重視客戶滿意度。

Since the start of the year, we have emphasized we must execute on our 2024 plan and regain the trust of our investors and shareholders. Very simply, we must do what we say we're going to do. No excuses. We have raised full-year guidance to continue to look for growth opportunities and drive further incremental free cash flow. We are executing on this by still growing in our core leasing business.

自今年年初以來，我們一直強調必須執行我們的 2024 年計劃並重新贏得投資者和股東的信任。很簡單，我們必須履行我們所說的義務。沒有任何藉口。我們已上調全年業績預期，以繼續尋找成長機會並進一步增加自由現金流。我們正透過持續發展核心租賃業務來實現這一目標。

As you heard, we have delivered eight newly converted freighters so far this year and provided an optimistic view for more deliveries by the end of the year. Our lease plus strategy is unique and brings a powerful solution to the market. We will continue to grow our global presence that is underpinned by connecting key economic and market indicators.

正如您所聽到的，今年迄今為止我們已經交付了 8 艘新改裝的貨機，並且樂觀地預計年底前還會交付更多貨機。我們的租賃加策略是獨特的，為市場帶來了強大的解決方案。我們將繼續擴大我們的全球影響力，並以連接關鍵的經濟和市場指標為基礎。

In closing, I will say that we're pleased with the improvements we have made so far in 2024 and we have more to capitalize on. Let me be clear, we're not done by any means. Thank you and have a great day.

最後，我想說，我們對 2024 年迄今為止的進步感到滿意，我們還有更多可以利用的進步。讓我明確地說，我們還沒完成。謝謝您，祝您有愉快的一天。

Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

謝謝。會議到此結束。感謝您的參與。您現在可以斷開連線。