Air Transport Services Group (ATSG): Red Mountain Capital Sells Chunk of Shares to Issuer

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Willem Mesdag‘s Red Mountain Capital has issued an amended filing with the Securities and Exchange Commission to offer an update on its investment in Air Transport Services Group Inc. (NASDAQ:ATSG). In a previous filing, Red Mountain reported an agreement to sell 3.82 million shares back to the issuer for $50 million, with July 5 as the deadline. Following that transaction, the fund now holds approximately 7.33 million shares which account for 11.5% of the company’s outstanding stock.

Based in Wilmington, Ohio, Air Transport Services Group Inc. (NASDAQ:ATSG) offers a wide range of services to the air cargo transportation and package delivery industries. The company has a market cap of $914 million and does not pay a dividend. The stock is currently trading at a trailing Price-to-Earnings (P/E) ratio of 23, lower than the industry average of 33, according to data compiled by Yahoo! Finance. So far this year, the stock has performed strongly, trading at $14.30 per share, up by 44% year-to-date. For the current quarter, the consensus among analysts is for the company to deliver $0.12 in earnings per share and $181 million in revenue, with the actual results set to be revealed on August 3 after the closing bell.

airplane air force

Hedge fund interest in Air Transport Services Group Inc. (NASDAQ:ATSG) inched up during the first quarter, with 18 funds in our system having reported a stake in the company as of the end of March, up from 17 three months earlier. Together, these funds held roughly 35% of the company’s common stock. Phil Frohlich‘s Prescott Group Capital Management was also betting heavily on this stock, which accounted for 15% of its equity portfolio. In its latest 13F filing, the fund indicated ownership of 4.12 million ATSG shares, down by 17% over the quarter.

You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
Red Mountain Capital Partners 7,326,871 7,326,871 7,326,871 11.5%
Red Mountain Partners 7,326,871 7,326,871 7,326,871 11.5%
RMCP GP 7,326,871 7,326,871 7,326,871 11.5%
Red Mountain Capital Management, Inc. 13-4057186 7,326,871 7,326,871 7,326,871 11.5%
Willem Mesdag 7,326,871 7,326,871 7,326,871 11.5%

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Page 1 of 10 – SEC Filing







Under the Securities Exchange Act of 1934

(Amendment No. 13)*





(Name of Issuer)

Stock, par value $0.01 per share

(Title of Class of Securities)


(CUSIP Number)

Red Mountain Capital Partners LLC

Attn: Willem Mesdag

10100 Santa Monica Boulevard, Suite 925

Los Angeles, California 90067

Telephone (310) 432-0200

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

July 5, 2016

of Event Which Requires Filing of this Statement)



If the filing person has
previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box.  ¨

Note. Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for
other parties to whom copies are to be sent.

* The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information
which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page
shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions
of the Act (however, see the Notes).

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