Air Transport Services Group, Inc

Good day and thank you for standing by. Welcome to the Air Transport Services Group third quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Joe Payne, Chief Legal Officer. Please go ahead.

Good morning, and welcome to our third quarter 2022 earnings conference call. We issued our earnings release yesterday after the market closed. It's on our website, 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 describe here. 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, the extent to which changes in market conditions impact the number, timing, and scheduled routes of aircraft deployments to new and existing customers. The cost and timing with respect to which we are able to purchase and modify aircraft to a cargo configuration, which may be impacted by global supply chain disruptions. Our operating airlines' ability to maintain on-time service and control costs. Our ability to remain in compliance with key agreements with customers, lenders, and government agencies. The effects of persistent elevated rates of inflation and changes in general economic and or industry-specific conditions, such as higher labor costs, increases in interest rates, an economic recession, and downturns in customer business cycles. the impact arising from COVID-19 outbreaks, including the emergence of COVID-19 variants, mark-to-market changes on certain financial instruments, and other factors as contained from time to time in our filings with the SEC, including the Form 10-Q we will file next week. 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, 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. And now I'll turn the call over to Rich Corrado, our president and CEO, for his opening remarks.

Thanks, Joe, and good morning, everyone. The next slide shows that the third quarter was another successful one for ATSG. CAM, our core aircraft leasing business, turned in a record third quarter with a 30% gain in pre-tax earnings. That gain stems from the 15 new leases of Boeing 767-300 freighters we completed last year and the five others we leased through September this year. Our two cargo airlines are flying more hours and more aircraft. Since last year, our principal customers have been turning to us to fly freighters not only leased to them by cam, but also aircraft they obtained from other sources. We had 10 customer-provided freighters in our fleet in September and are adding three more in the fourth quarter. Our revenues grew 11%, and we delivered $0.60 in adjusted earnings per share for the quarter and $1.75 per share through nine months. We advised you in February that we expected to deliver $2 per adjusted share for the year, so we're well ahead of that pace. We are also on track to meet or exceed our $640 million of adjusted EBITDA target for 2022. Quint is ready to review the details of our third quarter results. I'll be back to share more about our very bright long-term outlook after that. Quint?