Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced
third-quarter 2019 income from continuing operations, net of taxes,
of $60.0 million, or $2.32 per diluted share, compared with
reported income of $71.1 million, or $0.84 per diluted share, in
the third quarter of 2018.
Reported results in the third quarter of 2019
included an unrealized gain on outstanding warrants of $83.2
million, partially offset by a special charge, net, of $18.9
million, compared with an unrealized gain on outstanding warrants
of $46.1 million in the year-ago period.
On an adjusted basis, EBITDA totaled $95.6
million in the third quarter this year compared with $123.9 million
in the third quarter of 2018. Adjusted income from continuing
operations, net of taxes, in the third quarter of 2019 totaled $9.5
million, or $0.37 per diluted share, compared with $43.8 million,
or $1.54 per diluted share, in the year-ago quarter.
“Our third-quarter performance was affected by
the uncertain global macroenvironment, driven by ongoing tariff and
trade tensions,” said Chairman and Chief Executive Officer William
J. Flynn. “In addition to lower yields and volumes than we
anticipated, labor-related service disruptions had a significant
impact on our performance during the third quarter.
“Looking to the full year, we expect revenue of
about $2.75 billion, adjusted EBITDA of approximately $500 million,
and adjusted net income of approximately 60-65% of our 2018
adjusted net income.*
“We expect to benefit from peak-season volumes
and yields, including the seasonal flying we do for express and
e-commerce customers. In addition, our outlook anticipates
increased passenger flying for the military and lower maintenance
expense compared with the fourth quarter of 2018, as well as from a
refund of aircraft rent paid in previous years.”
Mr. Flynn continued: “We have recently received
favorable arbitration rulings that confirm the contractual process
to negotiate a new agreement for our pilots. We value the
contributions of our pilots, and we look forward to reaching a
competitive contract that recognizes their efforts
supporting our customers and our company.”
He concluded: “Airfreight is a long-term growth
industry. Despite current macroeconomic issues, the global middle
class continues to expand and supply chains continue to grow and
develop to meet demand. And as consumption increases and supply
chains evolve, airfreight is vital in transporting the goods and
materials required by consumers safely, reliably, and efficiently.
With the scale and scope of our operations, and our strategic focus
on express, e-commerce and faster-growing markets, we are
positioned well to serve the demand for airfreight today and in the
future.”
President and Chief Operating Officer, John W.
Dietrich added: “We have the right platform to serve our customers
and future airfreight demand. We have a strong core of long-term
customers, and we play a key role in their operating networks.
“We are also taking steps to navigate through
the current headwinds. We continually assess the market to best
balance our capacity with the demand for our aircraft and services.
We are adjusting our business to adapt to the changing market
environment with a focus on reducing costs, enhancing productivity,
improving profitability, and generating cash.
“Not only will these actions benefit Atlas in
the near term, they will also contribute to the long-term success
of the company.”
Third-Quarter Results
Revenue in the third-quarter of 2019 was
relatively in line with the third quarter of 2018. Higher volumes
during the period reflected increases in ACMI and Charter
flying.
ACMI segment revenue increased slightly during
the period reflecting higher levels of flying, partially offset by
a decrease in the average rate per block hour due to the growth of
smaller-gauge 767 and 737 CMI flying. Block-hour growth was
primarily driven by incremental CMI flying, partially offset by a
decrease in ACMI flying due to the impact of tariffs and global
trade tensions. In addition, ACMI segment revenue was impacted by
the two-month redeployment of two 747-8F aircraft to the Charter
segment prior to their subsequent placement with an ACMI customer
that needed to obtain a required regulatory approval, as well as
labor-related service disruptions.
ACMI segment contribution decreased during the
quarter as increased levels of flying were more than offset by the
impact of tariffs and global trade tensions on customer demand;
labor-related service disruptions; additional heavy maintenance
expense; increased amortization of deferred maintenance costs; and
the two-month redeployment of two 747-8F aircraft to the Charter
segment. In addition, segment contribution was impacted by start-up
costs for customer-growth initiatives and higher crew costs,
including enhanced wages and work rules resulting from our interim
agreement with pilots at Southern Air.
Charter segment revenue increased during the
period reflecting higher levels of flying, partially offset by a
decrease in the average rate per block hour due to the impact of
tariffs and global trade tensions on commercial cargo yields
(excluding fuel). Block-hour volume growth primarily reflected
increased passenger demand from the military and the two-month
redeployment of two 747-8F aircraft from the ACMI segment. These
drivers were partially offset by lower cargo demand from commercial
customers as well as labor-related service disruptions.
Lower Charter segment contribution was primarily
driven by a decrease in commercial cargo yields related to the
impact of tariffs and global trade tensions and labor-related
service disruptions. These items were partially offset by earnings
from the two-month deployment of two 747-8F aircraft from the ACMI
segment; an increase in military passenger flying; and lower heavy
maintenance expense.
In Dry Leasing, lower segment revenue and
contribution during the quarter primarily reflected the scheduled
return of a 777-200 freighter, partially offset by the placement of
additional aircraft.
In the third quarter of 2019, we incurred a
special charge primarily due to an impairment loss for four
aircraft engines to be disposed of and the permanent parking of two
737-400 passenger aircraft used for training purposes.
Higher unallocated income and expenses, net,
during the quarter primarily reflected fleet growth initiatives and
increased amortization of a customer incentive asset, partially
offset by a ratification bonus in 2018 related to the interim
agreement with the Southern Air pilots.
Reported earnings in the third quarter of 2019
also included an effective income tax benefit rate of 16.0%, due
mainly to nontaxable changes in the value of outstanding warrants.
On an adjusted basis, our results reflected an effective income tax
expense rate of 5.7%.
Nine-Month Results
Reported income from continuing operations, net
of taxes, for the nine months ended September 30, 2019, totaled
$117.1 million, or $1.34 per diluted share, which included an
unrealized gain on financial instruments of $78.9 million as well
as $59.8 million of tax benefits related to the favorable
completion of an IRS examination of our 2015 income tax return.
Results for the first nine months compared with income from
continuing operations of $59.6 million, or $2.27 per diluted share,
which included an unrealized loss on financial instruments of $11.7
million, for the nine months ended September 30, 2018.
On an adjusted basis, EBITDA totaled $300.1
million in the first nine months of 2019 compared with $354.9
million in the first nine months of 2018. For the nine months ended
September 30, 2019, adjusted income from continuing operations, net
of taxes, totaled $41.4 million, or $1.54 per diluted share,
compared with $117.3 million, or $4.17 per diluted share, in first
nine months of 2018.
Cash and Short-Term
Investments
At September 30, 2019, our cash and cash
equivalents, short-term investments and restricted cash totaled
$82.8 million, compared with $248.4 million at December 31,
2018.
The change in position resulted from cash used
for investing and financing activities, partially offset by cash
provided by operating activities.
Net cash used for investing activities during
the first nine months of 2019 primarily related to capital
expenditures and payments for flight equipment and modifications,
including the acquisition of 747-400 passenger aircraft, 767-300
aircraft and related freighter conversion costs, spare engines and
GEnx engine performance upgrade kits.
Net cash used for financing activities during
the period primarily reflected payments on debt obligations.
2019 Outlook*
Based on global economic conditions and our
current expectations, we anticipate full-year 2019 revenue of
approximately $2.75 billion; adjusted EBITDA of approximately $500
million; and adjusted net income, including a benefit related to an
expected refund of aircraft rent paid in previous years, to be
about 60-65% of our 2018 adjusted net income of $204.3
million.*
We expect to fly approximately 325,000 block
hours this year, with about 75% of the hours in ACMI and the
balance in Charter.
Aircraft maintenance expense in 2019 is expected
to total approximately $380 million, mainly reflecting an increase
in daily line maintenance due to the growth in block hours.
Depreciation and amortization is expected to total about $260
million. In addition, core capital expenditures, which exclude
aircraft and engine purchases, are projected to total approximately
$135 to $145 million, mainly for parts and components for our
fleet.
We also expect our full-year 2019 adjusted
effective income tax rate will be approximately 12% due to
proactive tax planning to maximize income tax benefits.
We provide guidance on an adjusted basis because
we are unable to predict, with reasonable certainty, the effects of
outstanding warrants and other items that could be material to our
reported results.*
Conference Call
Management will host a conference call to
discuss Atlas Air Worldwide’s third-quarter 2019 financial and
operating results at 11:00 a.m. Eastern Time on Wednesday, October
30, 2019.
Interested parties may listen to the call live
at Atlas Air Worldwide’s Investor site or at
https://edge.media-server.com/mmc/p/b97icjpn.
For those unable to listen to the live call, a
replay will be archived on the Investor site following the call. A
replay will also be available through November 7 by dialing (855)
859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.)
and using Access Code 2347678#.
About Non-GAAP Financial
Measures
To supplement our financial statements presented
in accordance with U.S. GAAP, we present certain non-GAAP financial
measures to assist in the evaluation of our business performance.
These non-GAAP measures include Adjusted EBITDA; Adjusted income
from continuing operations, net of taxes; Adjusted Diluted EPS from
continuing operations, net of taxes; Adjusted effective tax rate;
and Free Cash Flow, which exclude certain noncash income and
expenses, and items impacting year-over-year comparisons of our
results. These non-GAAP measures may not be comparable to similarly
titled measures used by other companies and should not be
considered in isolation or as a substitute for Income (loss) from
continuing operations, net of taxes; Diluted EPS from continuing
operations, net of taxes; Effective tax rate; and Net Cash Provided
by Operating Activities, which are the most directly comparable
measures of performance prepared in accordance with U.S. GAAP.
Effective during the three months ended September 30, 2019, we
changed our method of calculating Adjusted EBITDA to include Other
Non-operating expenses (income) to enhance the usefulness for
investors and analysts, and the comparability of the calculation to
that of other companies. Prior period amounts have been adjusted
for comparability.
Our management uses these non-GAAP financial
measures in assessing the performance of the company’s ongoing
operations and in planning and forecasting future periods. We
believe that these adjusted measures, when considered together with
the corresponding U.S. GAAP financial measures and the
reconciliations to those measures, provide meaningful supplemental
information to assist investors and analysts in understanding our
financial results and assessing our prospects for future
performance. For example:
- Adjusted EBITDA; Adjusted income from continuing operations,
net of taxes; and Adjusted Diluted EPS from continuing operations,
net of taxes, provide a more comparable basis to analyze operating
results and earnings and are measures commonly used by shareholders
to measure our performance. In addition, management’s incentive
compensation is determined, in part, by using Adjusted EBITDA and
Adjusted income from continuing operations, net of
taxes.
- Adjusted effective tax rate provides improved insight into the
tax effects of our ongoing business operations.
- Free Cash Flow helps investors assess our ability, over the
long term, to create value for our shareholders as it represents
cash available to execute our capital allocation strategy.
*We provide guidance on an adjusted basis and
are unable to provide forward-looking guidance on a U.S. GAAP basis
or a reconciliation to the most directly comparable U.S. GAAP
measures because we are unable to predict with reasonable certainty
the ultimate outcome of certain significant items. The principal
item is the impact on our results of our outstanding warrants,
which are highly dependent on the change in our stock price during
the period reported. These items are uncertain, depend on various
factors, and could have a material impact on our U.S. GAAP
results.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider
of outsourced aircraft and aviation operating services. It is the
parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and
Titan Aviation Holdings, Inc., and is the majority shareholder of
Polar Air Cargo Worldwide, Inc. Our companies operate the world’s
largest fleet of 747 freighter aircraft and provide customers the
broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for
domestic, regional and international cargo and passenger
operations.
Atlas Air Worldwide’s press releases, SEC
filings and other information may be accessed through the company’s
home page, www.atlasairworldwide.com.
This release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995 that reflect Atlas Air Worldwide’s current views
with respect to certain current and future events and financial
performance. Those statements are based on management’s beliefs,
plans, expectations and assumptions, and on information currently
available to management. Generally, the words “will,” “may,”
“should,” “expect,” “anticipate,” “intend,” “plan,” “continue,”
“believe,” “seek,” “project,” “estimate,” and similar expressions
used in this release that do not relate to historical facts are
intended to identify forward-looking statements.
Such forward-looking statements speak only as of
the date of this release. They are and will be, as the case may be,
subject to many risks, uncertainties and factors relating to the
operations and business environments of Atlas Air Worldwide and its
subsidiaries (collectively, the “companies”) that may cause the
actual results of the companies to be materially different from any
future results, express or implied, in such forward-looking
statements.
Factors that could cause actual results to
differ materially from these forward-looking statements include,
but are not limited to, the following: our ability to effectively
operate the network service contemplated by our agreements with
Amazon; our ability to coordinate with Amazon to accept newly
converted aircraft; the risk that the anticipated benefits of our
agreements with Amazon will not be realized when expected, or at
all; the possibility that Amazon may terminate its agreements with
the companies; the ability of the companies to operate pursuant to
the terms of their financing facilities; the ability of the
companies to obtain and maintain normal terms with vendors and
service providers; the companies’ ability to maintain contracts
that are critical to their operations; the ability of the companies
to fund and execute their business plan; the ability of the
companies to attract, motivate and/or retain key executives, pilots
and associates; the ability of the companies to attract and retain
customers; the continued availability of our wide-body aircraft;
demand for cargo services in the markets in which the companies
operate; changes in U.S. and foreign government trade policies;
economic conditions; the effects of any hostilities or act of war
(in the Middle East or elsewhere) or any terrorist attack;
significant data breach or disruption of our information technology
systems; labor costs and relations, work stoppages and service
slowdowns; the outcome of pending negotiations with our pilots’
union; financing costs; the cost and availability of war risk
insurance; aviation fuel costs; security-related costs; competitive
pressures on pricing (especially from lower-cost competitors);
volatility in the international currency markets; weather
conditions; government legislation and regulation; additional
regulatory guidance or changes in interpretations and assumptions
with respect to the impact of the U.S. Tax Cuts and Jobs Act of
2017; consumer perceptions of the companies’ products and services;
anticipated and future litigation; and other risks and
uncertainties set forth from time to time in Atlas Air Worldwide’s
reports to the United States Securities and Exchange
Commission.
For additional information, we refer you to the
risk factors set forth under the heading “Risk Factors” in the most
recent Annual Report on Form 10-K and subsequent reports on Form
10-Q filed by Atlas Air Worldwide with the Securities and Exchange
Commission. Other factors and assumptions not identified above may
also affect the forward-looking statements, and these other factors
and assumptions may also cause actual results to differ materially
from those discussed.
Except as stated in this release, Atlas Air
Worldwide is not providing guidance or estimates regarding its
anticipated business and financial performance for 2019 or
thereafter.
Atlas Air Worldwide assumes no obligation to
update such statements contained in this release to reflect actual
results, changes in assumptions or changes in other factors
affecting such estimates other than as required by law and
expressly disclaims any obligation to revise or update publically
any forward-looking statement to reflect future events or
circumstances.
|
Atlas Air Worldwide Holdings, Inc. |
Consolidated Statements of Operations |
(in thousands, except per share data) |
(Unaudited) |
|
|
For the Three Months
Ended |
|
|
For the Nine Months Ended |
|
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenue |
$ |
648,539 |
|
|
$ |
656,607 |
|
|
$ |
1,992,140 |
|
|
$ |
1,912,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits |
|
145,987 |
|
|
|
138,345 |
|
|
|
432,911 |
|
|
|
392,603 |
|
Aircraft fuel |
|
123,132 |
|
|
|
119,604 |
|
|
|
351,611 |
|
|
|
345,613 |
|
Maintenance, materials and repairs |
|
88,240 |
|
|
|
88,136 |
|
|
|
305,331 |
|
|
|
261,251 |
|
Depreciation and amortization |
|
62,499 |
|
|
|
55,417 |
|
|
|
190,669 |
|
|
|
155,881 |
|
Travel |
|
49,110 |
|
|
|
41,605 |
|
|
|
140,513 |
|
|
|
123,810 |
|
Aircraft rent |
|
40,048 |
|
|
|
39,973 |
|
|
|
122,271 |
|
|
|
119,778 |
|
Navigation fees, landing fees and other rent |
|
32,270 |
|
|
|
43,258 |
|
|
|
110,468 |
|
|
|
116,553 |
|
Passenger and ground handling services |
|
34,453 |
|
|
|
28,716 |
|
|
|
97,138 |
|
|
|
86,980 |
|
Special charge, net |
|
18,861 |
|
|
|
- |
|
|
|
22,130 |
|
|
|
9,374 |
|
Transaction-related expenses |
|
324 |
|
|
|
765 |
|
|
|
3,585 |
|
|
|
1,275 |
|
Other |
|
54,494 |
|
|
|
46,318 |
|
|
|
160,548 |
|
|
|
143,663 |
|
Total Operating Expenses |
|
649,418 |
|
|
|
602,137 |
|
|
|
1,937,175 |
|
|
|
1,756,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss) Income |
|
(879 |
) |
|
|
54,470 |
|
|
|
54,965 |
|
|
|
155,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating Expenses
(Income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
(653 |
) |
|
|
(1,592 |
) |
|
|
(3,975 |
) |
|
|
(4,704 |
) |
Interest expense |
|
30,117 |
|
|
|
31,115 |
|
|
|
90,515 |
|
|
|
87,639 |
|
Capitalized interest |
|
(853 |
) |
|
|
(1,120 |
) |
|
|
(1,943 |
) |
|
|
(4,335 |
) |
Loss on early extinguishment of debt |
|
559 |
|
|
|
- |
|
|
|
804 |
|
|
|
- |
|
Unrealized (gain) loss on financial instruments |
|
(83,175 |
) |
|
|
(46,080 |
) |
|
|
(78,900 |
) |
|
|
11,691 |
|
Other (income) expense, net |
|
1,434 |
|
|
|
975 |
|
|
|
(596 |
) |
|
|
(10,777 |
) |
Total Non-operating Expenses (Income) |
|
(52,571 |
) |
|
|
(16,702 |
) |
|
|
5,905 |
|
|
|
79,514 |
|
Income from continuing operations before income taxes |
|
51,692 |
|
|
|
71,172 |
|
|
|
49,060 |
|
|
|
76,471 |
|
Income tax (benefit) expense |
|
(8,282 |
) |
|
|
34 |
|
|
|
(68,072 |
) |
|
|
16,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of taxes |
|
59,974 |
|
|
|
71,138 |
|
|
|
117,132 |
|
|
|
59,643 |
|
Loss from discontinued operations, net of taxes |
|
- |
|
|
|
(7 |
) |
|
|
- |
|
|
|
(50 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
59,974 |
|
|
$ |
71,131 |
|
|
$ |
117,132 |
|
|
$ |
59,593 |
|
Earnings per share from
continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
2.32 |
|
|
$ |
2.78 |
|
|
$ |
4.54 |
|
|
$ |
2.34 |
|
Diluted |
$ |
2.32 |
|
|
$ |
0.84 |
|
|
$ |
1.34 |
|
|
$ |
2.27 |
|
Loss per share from
discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
- |
|
|
$ |
(0.00 |
) |
|
$ |
- |
|
|
$ |
(0.00 |
) |
Diluted |
$ |
- |
|
|
$ |
(0.00 |
) |
|
$ |
- |
|
|
$ |
(0.00 |
) |
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
2.32 |
|
|
$ |
2.78 |
|
|
$ |
4.54 |
|
|
$ |
2.33 |
|
Diluted |
$ |
2.32 |
|
|
$ |
0.84 |
|
|
$ |
1.34 |
|
|
$ |
2.27 |
|
Weighted average
shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
25,854 |
|
|
|
25,575 |
|
|
|
25,814 |
|
|
|
25,526 |
|
Diluted |
|
25,854 |
|
|
|
28,747 |
|
|
|
26,909 |
|
|
|
26,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide Holdings, Inc. |
Consolidated Balance Sheets |
(in thousands, except share data) |
(Unaudited) |
|
|
September 30, 2019 |
|
|
December 31, 2018 |
|
Assets |
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
70,327 |
|
|
$ |
221,501 |
|
Short-term investments |
|
2,129 |
|
|
|
15,624 |
|
Restricted cash |
|
10,376 |
|
|
|
11,240 |
|
Accounts receivable, net of allowance of $1,521 and $1,563,
respectively |
|
264,752 |
|
|
|
269,320 |
|
Prepaid expenses and other current assets |
|
82,505 |
|
|
|
112,146 |
|
Total current assets |
|
430,089 |
|
|
|
629,831 |
|
Property and Equipment |
|
|
|
|
|
|
|
Flight equipment |
|
5,377,985 |
|
|
|
5,213,734 |
|
Ground equipment |
|
87,282 |
|
|
|
75,939 |
|
Less: accumulated depreciation |
|
(1,020,278 |
) |
|
|
(860,354 |
) |
Flight equipment modifications in progress |
|
88,632 |
|
|
|
32,916 |
|
Property and equipment, net |
|
4,533,621 |
|
|
|
4,462,235 |
|
Other Assets |
|
|
|
|
|
|
|
Operating lease right-of-use assets |
|
520,063 |
|
|
|
- |
|
Deferred costs and other assets |
|
403,871 |
|
|
|
345,037 |
|
Intangible assets, net and goodwill |
|
81,590 |
|
|
|
97,689 |
|
Total Assets |
$ |
5,969,234 |
|
|
$ |
5,534,792 |
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
Accounts payable |
$ |
90,850 |
|
|
$ |
87,229 |
|
Accrued liabilities |
|
522,694 |
|
|
|
465,669 |
|
Current portion of long-term debt and finance lease |
|
341,807 |
|
|
|
264,835 |
|
Current portion of long-term operating leases |
|
141,362 |
|
|
|
- |
|
Total current liabilities |
|
1,096,713 |
|
|
|
817,733 |
|
Other Liabilities |
|
|
|
|
|
|
|
Long-term debt and finance lease |
|
2,031,642 |
|
|
|
2,205,005 |
|
Long-term operating leases |
|
427,459 |
|
|
|
- |
|
Deferred taxes |
|
186,599 |
|
|
|
256,970 |
|
Financial instruments and other liabilities |
|
33,529 |
|
|
|
187,120 |
|
Total other liabilities |
|
2,679,229 |
|
|
|
2,649,095 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
Preferred stock, $1 par value; 10,000,000 shares authorized; no
shares issued |
|
- |
|
|
|
- |
|
Common stock, $0.01 par value; 100,000,000 shares authorized;
31,043,847 and 30,582,571 shares issued, 25,867,423 and
25,590,293 shares outstanding (net of treasury stock), as of
September 30, 2019 and December 31, 2018,
respectively |
|
310 |
|
|
|
306 |
|
Additional paid-in-capital |
|
752,790 |
|
|
|
736,035 |
|
Treasury stock, at cost; 5,176,424 and 4,992,278 shares,
respectively |
|
(213,837 |
) |
|
|
(204,501 |
) |
Accumulated other comprehensive loss |
|
(3,059 |
) |
|
|
(3,832 |
) |
Retained earnings |
|
1,657,088 |
|
|
|
1,539,956 |
|
Total stockholders’ equity |
|
2,193,292 |
|
|
|
2,067,964 |
|
Total Liabilities and Equity |
$ |
5,969,234 |
|
|
$ |
5,534,792 |
|
|
|
|
|
|
|
|
|
1 |
Balance sheet debt at September
30, 2019 totaled $2,373.4 million, including the impact of $72.9
million of unamortized discount and debt issuance costs of $37.1
million, compared with $2,469.8 million, including the impact of
$85.5 million of unamortized discount and debt issuance costs of
$46.0 million at December 31, 2018. |
|
|
2 |
The face value of our debt at
September 30, 2019 totaled $2,438.4 million, compared with $2,601.3
million on December 31, 2018. |
|
|
|
Atlas Air Worldwide Holdings, Inc. |
Consolidated Statements of Cash Flows |
(in thousands) |
(Unaudited) |
|
|
For the Nine Months Ended |
|
|
September 30,
2019 |
|
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
Operating
Activities: |
|
|
|
|
|
|
|
Income from continuing
operations, net of taxes |
$ |
117,132 |
|
|
$ |
59,643 |
|
Less: Loss from discontinued
operations, net of taxes |
|
- |
|
|
|
(50 |
) |
Net Income |
|
117,132 |
|
|
|
59,593 |
|
|
|
|
|
|
|
|
|
Adjustments to reconcile Net
Income to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
241,284 |
|
|
|
189,682 |
|
Accretion of debt securities discount |
|
(237 |
) |
|
|
(719 |
) |
Provision for allowance for doubtful accounts |
|
(83 |
) |
|
|
40 |
|
Loss on early extinguishment of debt |
|
804 |
|
|
|
- |
|
Special charge, net of cash payments |
|
22,130 |
|
|
|
9,374 |
|
Unrealized (gain) loss on financial instruments |
|
(78,900 |
) |
|
|
11,691 |
|
Deferred taxes |
|
(68,552 |
) |
|
|
16,453 |
|
Stock-based compensation |
|
16,553 |
|
|
|
15,376 |
|
Changes in: |
|
|
|
|
|
|
|
Accounts receivable |
|
1,397 |
|
|
|
(59,058 |
) |
Prepaid expenses, current assets and other assets |
|
(69,254 |
) |
|
|
(34,483 |
) |
Accounts payable and accrued liabilities |
|
11,016 |
|
|
|
56,174 |
|
Net cash provided by operating
activities |
|
193,290 |
|
|
|
264,123 |
|
Investing
Activities: |
|
|
|
|
|
|
|
Capital expenditures |
|
(107,594 |
) |
|
|
(84,819 |
) |
Payments for flight equipment and modifications |
|
(153,706 |
) |
|
|
(543,342 |
) |
Proceeds from insurance |
|
38,133 |
|
|
|
- |
|
Proceeds from investments |
|
14,367 |
|
|
|
9,461 |
|
Net cash used for investing
activities |
|
(208,800 |
) |
|
|
(618,700 |
) |
Financing
Activities: |
|
|
|
|
|
|
|
Proceeds from debt issuance |
|
93,723 |
|
|
|
400,471 |
|
Payment of debt issuance costs |
|
(1,316 |
) |
|
|
(6,632 |
) |
Payments of debt and finance lease obligations |
|
(273,142 |
) |
|
|
(180,722 |
) |
Proceeds from revolving credit facility |
|
50,000 |
|
|
|
135,000 |
|
Payment of revolving credit facility |
|
- |
|
|
|
(60,000 |
) |
Customer maintenance reserves and deposits received |
|
11,717 |
|
|
|
11,520 |
|
Customer maintenance reserves paid |
|
(8,174 |
) |
|
|
- |
|
Purchase of treasury stock |
|
(9,336 |
) |
|
|
(10,769 |
) |
Net cash provided by (used for)
financing activities |
|
(136,528 |
) |
|
|
288,868 |
|
Net decrease in cash, cash
equivalents and restricted cash |
|
(152,038 |
) |
|
|
(65,709 |
) |
Cash, cash equivalents and
restricted cash at the beginning of period |
|
232,741 |
|
|
|
291,864 |
|
Cash, cash equivalents and
restricted cash at the end of period |
$ |
80,703 |
|
|
$ |
226,155 |
|
|
|
|
|
|
|
|
|
Noncash Investing and
Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of flight equipment included in Accounts payable and
accrued liabilities |
$ |
53,987 |
|
|
$ |
42,826 |
|
Acquisition of property and equipment acquired under operating
leases |
$ |
21,969 |
|
|
$ |
- |
|
Acquisition of flight equipment under capital lease |
$ |
10,825 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide Holdings, Inc. |
Direct Contribution |
(in thousands) |
(Unaudited) |
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
September 30, 2019 |
|
|
September 30, 2018 |
|
Operating Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
$ |
289,024 |
|
|
$ |
288,602 |
|
|
$ |
902,869 |
|
|
$ |
832,777 |
|
Charter |
|
324,046 |
|
|
|
322,750 |
|
|
|
944,839 |
|
|
|
954,725 |
|
Dry Leasing |
|
43,847 |
|
|
|
44,487 |
|
|
|
157,328 |
|
|
|
120,837 |
|
Customer incentive asset
amortization |
|
(12,796 |
) |
|
|
(4,124 |
) |
|
|
(26,018 |
) |
|
|
(10,010 |
) |
Other |
|
4,418 |
|
|
|
4,892 |
|
|
|
13,122 |
|
|
|
14,437 |
|
Total Operating
Revenue |
$ |
648,539 |
|
|
$ |
656,607 |
|
|
$ |
1,992,140 |
|
|
$ |
1,912,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
Contribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
$ |
33,401 |
|
|
$ |
51,672 |
|
|
$ |
114,048 |
|
|
$ |
145,251 |
|
Charter |
|
36,339 |
|
|
|
44,370 |
|
|
|
79,554 |
|
|
|
129,738 |
|
Dry Leasing |
|
12,028 |
|
|
|
12,645 |
|
|
|
58,646 |
|
|
|
36,195 |
|
Total Direct Contribution
for Reportable Segments |
|
81,768 |
|
|
|
108,687 |
|
|
|
252,248 |
|
|
|
311,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated expenses and
(income), net |
|
(93,507 |
) |
|
|
(82,830 |
) |
|
|
(255,569 |
) |
|
|
(212,373 |
) |
Loss on early extinguishment of
debt |
|
(559 |
) |
|
|
|
- |
|
|
(804 |
) |
|
|
- |
|
Unrealized gain (loss) on
financial instruments |
|
83,175 |
|
|
|
46,080 |
|
|
|
78,900 |
|
|
|
(11,691 |
) |
Special charge, net |
|
(18,861 |
) |
|
|
- |
|
|
|
(22,130 |
) |
|
|
(9,374 |
) |
Transaction-related expenses |
|
(324 |
) |
|
|
(765 |
) |
|
|
(3,585 |
) |
|
|
(1,275 |
) |
Income from continuing
operations before income taxes |
|
51,692 |
|
|
|
71,172 |
|
|
|
49,060 |
|
|
|
76,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
(653 |
) |
|
|
(1,592 |
) |
|
|
(3,975 |
) |
|
|
(4,704 |
) |
Interest expense |
|
30,117 |
|
|
|
31,115 |
|
|
|
90,515 |
|
|
|
87,639 |
|
Capitalized interest |
|
(853 |
) |
|
|
(1,120 |
) |
|
|
(1,943 |
) |
|
|
(4,335 |
) |
Loss on early extinguishment of
debt |
|
559 |
|
|
|
- |
|
|
|
804 |
|
|
|
- |
|
Unrealized (gain) loss on
financial instruments |
|
(83,175 |
) |
|
|
(46,080 |
) |
|
|
(78,900 |
) |
|
|
11,691 |
|
Other (income) expense, net |
|
1,434 |
|
|
|
975 |
|
|
|
(596 |
) |
|
|
(10,777 |
) |
Operating (Loss)
Income |
$ |
(879 |
) |
|
$ |
54,470 |
|
|
$ |
54,965 |
|
|
$ |
155,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide uses an economic performance
metric, Direct Contribution, to show the profitability of each of
its segments after allocation of direct operating and ownership
costs. Atlas Air Worldwide currently has the following reportable
segments: ACMI, Charter, and Dry Leasing. Each segment has
different commercial and economic characteristics, which are
separately reviewed by our chief operating decision maker.
Direct Contribution consists of income (loss)
from continuing operations before income taxes, excluding loss on
early extinguishment of debt, unrealized gain (loss) on financial
instruments, special charge, net, transaction-related expenses, and
unallocated income and expenses, net.
Direct operating and ownership costs include
crew costs, maintenance, fuel, ground operations, sales costs,
aircraft rent, interest expense on the portion of debt used for
financing aircraft, interest income on debt securities, and
aircraft depreciation.
Unallocated income and expenses, net include corporate overhead,
nonaircraft depreciation, noncash expenses and income, interest
expense on the portion of debt used for general corporate purposes,
interest income on nondebt securities, capitalized interest,
foreign exchange gains and losses, other revenue and other
nonoperating costs.
|
Atlas Air Worldwide Holdings, Inc. |
Reconciliation to Non-GAAP Measures |
(in thousands, except per share data) |
(Unaudited) |
|
|
For the Three Months Ended |
|
|
September 30,
2019 |
|
|
September 30,
2018 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations, net of taxes |
$ |
59,974 |
|
|
$ |
71,138 |
|
|
(15.7 |
)% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
Customer incentive asset amortization |
|
12,796 |
|
|
|
4,142 |
|
|
|
|
Special charge, net |
|
18,861 |
|
|
|
- |
|
|
|
|
Costs associated with transactions1 |
|
324 |
|
|
|
9,979 |
|
|
|
|
Leadership transition costs |
|
2,852 |
|
|
|
- |
|
|
|
|
Certain contract start-up costs2 |
|
1,400 |
|
|
|
- |
|
|
|
|
Noncash expenses and income, net3 |
|
4,696 |
|
|
|
4,245 |
|
|
|
|
Unrealized (gain) loss on financial instruments |
|
(83,175 |
) |
|
|
(46,080 |
) |
|
|
|
Other, net4 |
|
647 |
|
|
|
373 |
|
|
|
|
Income tax effect of reconciling items |
|
(8,859 |
) |
|
|
47 |
|
|
|
|
Adjusted income from
continuing operations, net of taxes |
$ |
9,516 |
|
|
$ |
43,826 |
|
|
(78.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding |
|
25,854 |
|
|
|
28,747 |
|
|
|
|
Add: effect of convertible note hedges5 |
|
- |
|
|
|
(269 |
) |
|
|
|
Adjusted weighted average
diluted shares outstanding |
|
25,854 |
|
|
|
28,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
from continuing operations, net of taxes |
$ |
0.37 |
|
|
$ |
1.54 |
|
|
(76.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
|
|
September 30,
2019 |
|
|
September 30,
2018 |
|
|
PercentChange |
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations, net of taxes |
$ |
117,132 |
|
|
$ |
59,643 |
|
|
96.4 |
% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
Customer incentive asset amortization |
|
26,018 |
|
|
|
10,010 |
|
|
|
|
Special charge, net |
|
22,130 |
|
|
|
9,374 |
|
|
|
|
Costs associated with transactions1 |
|
3,585 |
|
|
|
10,489 |
|
|
|
|
Leadership transition costs |
|
3,393 |
|
|
|
- |
|
|
|
|
Certain contract start-up costs2 |
|
3,463 |
|
|
|
- |
|
|
|
|
Noncash expenses and income, net3 |
|
13,743 |
|
|
|
12,489 |
|
|
|
|
Unrealized (gain) loss on financial instruments |
|
(78,900 |
) |
|
|
11,691 |
|
|
|
|
Other, net4 |
|
(2,395 |
) |
|
|
936 |
|
|
|
|
Income tax effect of reconciling items |
|
(12,540 |
) |
|
|
2,699 |
|
|
|
|
Special tax item6 |
|
(54,272 |
) |
|
|
- |
|
|
|
|
Adjusted income from
continuing operations, net of taxes |
$ |
41,357 |
|
|
$ |
117,331 |
|
|
(64.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding |
|
26,909 |
|
|
|
26,274 |
|
|
|
|
Add: dilutive warrant7 |
|
- |
|
|
|
2,129 |
|
|
|
|
effect of convertible note hedges5 |
|
- |
|
|
|
(240 |
) |
|
|
|
Adjusted weighted average
diluted shares outstanding |
|
26,909 |
|
|
|
28,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS
from continuing operations, net of taxes |
$ |
1.54 |
|
|
$ |
4.17 |
|
|
(63.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide Holdings, Inc. |
Reconciliation to Non-GAAP Measures |
(in thousands, except per share data) |
(Unaudited) |
|
|
For the Three Months Ended |
|
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, before income
taxes |
$ |
51,692 |
|
|
$ |
71,172 |
|
|
|
(27.4 |
)% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
Customer incentive asset amortization |
|
12,796 |
|
|
|
4,142 |
|
|
|
|
|
Special charge, net |
|
18,861 |
|
|
|
|
- |
|
|
|
|
Costs associated with transactions1 |
|
324 |
|
|
|
9,979 |
|
|
|
|
|
Leadership transition costs |
|
2,852 |
|
|
|
- |
|
|
|
|
|
Certain contract start-up costs2 |
|
1,400 |
|
|
|
- |
|
|
|
|
|
Noncash expenses and income, net3 |
|
4,696 |
|
|
|
4,245 |
|
|
|
|
|
Unrealized (gain) loss on financial instruments |
|
(83,175 |
) |
|
|
(46,080 |
) |
|
|
|
|
Other, net4 |
|
647 |
|
|
|
373 |
|
|
|
|
|
Adjusted income from
continuing operations, before income taxes |
$ |
10,093 |
|
|
$ |
43,831 |
|
|
|
(77.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense |
$ |
(8,282 |
) |
|
$ |
34 |
|
|
|
|
|
Income tax effect of
reconciling items |
|
(8,859 |
) |
|
|
47 |
|
|
|
|
|
Adjusted income tax expense
(benefit) |
|
577 |
|
|
|
(13 |
) |
|
|
|
|
Adjusted income from
continuing operations, before income taxes |
$ |
10,093 |
|
|
$ |
43,813 |
|
|
|
|
|
Adjusted effective tax
expense rate |
|
5.7 |
% |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
For the Nine Months Ended |
|
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
PercentChange |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations, before income taxes |
$ |
49,060 |
|
|
$ |
76,471 |
|
|
|
(35.8 |
)% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
Customer incentive asset amortization |
|
26,018 |
|
|
|
10,010 |
|
|
|
|
|
Special charge, net |
|
22,130 |
|
|
|
9,374 |
|
|
|
|
|
Costs associated with transactions1 |
|
3,585 |
|
|
|
10,489 |
|
|
|
|
|
Leadership transition costs |
|
3,393 |
|
|
|
- |
|
|
|
|
|
Certain contract start-up costs2 |
|
3,463 |
|
|
|
- |
|
|
|
|
|
Noncash expenses and income, net3 |
|
13,743 |
|
|
|
12,489 |
|
|
|
|
|
Unrealized (gain) loss on financial instruments |
|
(78,900 |
) |
|
|
11,691 |
|
|
|
|
|
Other, net4 |
|
(2,395 |
) |
|
|
936 |
|
|
|
|
|
Adjusted income from
continuing operations, before income taxes |
$ |
40,097 |
|
|
$ |
131,460 |
|
|
|
(69.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense |
$ |
(68,072 |
) |
|
$ |
16,828 |
|
|
|
|
|
Income tax effect of
reconciling items |
|
(12,540 |
) |
|
|
2,699 |
|
|
|
|
|
Adjusted income tax (benefit)
expense |
|
(55,532 |
) |
|
|
14,129 |
|
|
|
|
|
Adjusted income from
continuing operations, before income taxes |
$ |
40,097 |
|
|
$ |
131,460 |
|
|
|
|
|
Adjusted effective tax
expense (benefit) rate |
|
(138.5 |
)% |
|
|
10.7 |
% |
|
|
|
|
1 |
Costs associated with
transactions in 2019 primarily related to a customer transaction
with warrants and other costs associated with our acquisition of
Southern Air. Costs associated with transactions in 2018 primarily
related to costs associated with our acquisition of Southern
Air. |
|
|
2 |
Certain contract start-up costs
represent unique training-aircraft costs required for a new
customer contract. |
|
|
3 |
Noncash expenses and income, net
in 2019 and 2018 primarily related to amortization of debt discount
on the convertible notes. |
|
|
4 |
Other, net in 2019 primarily
related to a net insurance recovery, loss on early extinguishment
of debt and accrual for legal matters and professional fees. Other,
net in 2018 primarily related to loss on early extinguishment of
debt and accrual for legal matters and professional fees. |
|
|
5 |
Economic benefit from the
convertible notes hedges in offsetting dilution from the
convertible notes. |
|
|
6 |
Special tax item represents
income tax benefit from the completion of a 2015 IRS examination
that are not related to ongoing operations. |
|
|
7 |
Dilutive warrants represent
potentially dilutive common shares related to the outstanding
warrants. These warrants were excluded from Diluted EPS from
continuing operations, net of taxes prepared in accordance with
GAAP when they would have been antidilutive. |
|
Atlas Air Worldwide Holdings, Inc. |
Reconciliation to Non-GAAP Measures |
(in thousands) |
(Unaudited) |
|
|
For the Three Months Ended |
|
|
September 30,
2019 |
|
|
September 30,
2018 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations, net of taxes |
$ |
59,974 |
|
|
$ |
71,138 |
|
|
|
(15.7 |
)% |
Interest (income) expense,
net |
|
28,611 |
|
|
|
28,403 |
|
|
|
|
|
Depreciation and
amortization |
|
62,499 |
|
|
|
55,417 |
|
|
|
|
|
Income tax (benefit)
expense |
|
(8,282 |
) |
|
|
34 |
|
|
|
|
|
EBITDA |
|
142,802 |
|
|
|
154,992 |
|
|
|
|
|
Customer incentive asset
amortization |
|
12,796 |
|
|
|
4,124 |
|
|
|
|
|
Special charge, net |
|
18,861 |
|
|
|
- |
|
|
|
|
|
Costs associated with
transactions1 |
|
324 |
|
|
|
9,979 |
|
|
|
|
|
Leadership transition
costs |
|
2,852 |
|
|
|
- |
|
|
|
|
|
Unrealized (gain) loss on
financial instruments |
|
(83,175 |
) |
|
|
(46,080 |
) |
|
|
|
|
Other, net2 |
|
1,150 |
|
|
|
846 |
|
|
|
|
|
Adjusted
EBITDA |
$ |
95,610 |
|
|
|
123,861 |
|
|
|
(22.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
|
|
September 30,
2019 |
|
|
September 30,
2018 |
|
|
PercentChange |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations, net of taxes |
$ |
117,132 |
|
|
$ |
59,643 |
|
|
|
96.4 |
% |
Interest (income) expense,
net |
|
84,597 |
|
|
|
78,600 |
|
|
|
|
|
Depreciation and
amortization |
|
190,669 |
|
|
|
155,881 |
|
|
|
|
|
Income tax (benefit)
expense |
|
(68,072 |
) |
|
|
16,828 |
|
|
|
|
|
EBITDA |
|
324,326 |
|
|
|
310,952 |
|
|
|
|
|
Customer incentive asset
amortization |
|
26,018 |
|
|
|
10,010 |
|
|
|
|
|
Special charge, net |
|
22,130 |
|
|
|
9,374 |
|
|
|
|
|
Costs associated with
transactions1 |
|
3,585 |
|
|
|
10,489 |
|
|
|
|
|
Leadership transition
costs |
|
3,393 |
|
|
|
- |
|
|
|
|
|
Unrealized (gain) loss on
financial instruments |
|
(78,900 |
) |
|
|
11,691 |
|
|
|
|
|
Other, net2 |
|
(429 |
) |
|
|
2,355 |
|
|
|
|
|
Adjusted
EBITDA |
$ |
300,123 |
|
|
|
354,871 |
|
|
|
(15.4 |
)% |
1 |
Costs associated with
transactions in 2019 primarily related to a customer transaction
with warrants and other costs associated with our acquisition of
Southern Air. Costs associated with transactions in 2018 primarily
related to costs associated with our acquisition of Southern
Air. |
|
|
2 |
Other, net in 2019 primarily
related to a net insurance recovery, loss on early extinguishment
of debt and accrual for legal matters and professional fees. Other,
net in 2018 primarily related to loss on early extinguishment of
debt and accrual for legal matters and professional fees. |
|
|
3 |
Adjusted EBITDA: Earnings before
interest, taxes, depreciation, amortization, customer incentive
asset amortizaàtion, special charge, costs associated with
transactions, leadership transition costs, unrealized (gain) loss
on financial instruments, other, net, as applicable. |
|
Atlas Air
Worldwide Holdings, Inc. |
Reconciliation to Non-GAAP Measures |
(in thousands,
except per share data) |
(Unaudited) |
|
|
For the Three Months Ended |
|
September 30,
2019 |
|
|
September 30,
2018 |
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities |
$ |
84,293 |
|
|
$ |
88,212 |
Less: |
|
|
|
|
|
|
Capital expenditures |
|
30,840 |
|
|
|
30,028 |
Capitalized interest |
|
853 |
|
|
|
1,120 |
Free Cash Flow1 |
$ |
52,600 |
|
|
$ |
57,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities |
$ |
193,290 |
|
|
$ |
264,123 |
Less: |
|
|
|
|
|
|
Capital expenditures |
|
107,594 |
|
|
|
84,819 |
Capitalized interest |
|
1,943 |
|
|
|
4,335 |
Free Cash Flow1 |
$ |
83,753 |
|
|
$ |
174,969 |
1 |
Free Cash Flow = Net Cash
Provided by Operating Activities minus Base Capital Expenditures
and Capitalized Interest. |
|
|
|
Base Capital Expenditures
excludes purchases of aircraft. |
|
Atlas Air Worldwide Holdings, Inc. |
Operating Statistics and Traffic Results |
(Unaudited) |
|
|
For the Three Months Ended |
|
|
Increase/ |
|
|
For the Nine Months Ended |
|
|
Increase/ |
|
|
September 30,
2019 |
|
|
September 30,
2018 |
|
|
(Decrease) |
|
|
September 30,
2019 |
|
|
September 30,
2018 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block
Hours |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
60,337 |
|
|
|
56,571 |
|
|
|
3,766 |
|
|
|
182,060 |
|
|
|
159,662 |
|
|
|
22,398 |
|
Charter |
|
18,142 |
|
|
|
16,642 |
|
|
|
1,500 |
|
|
|
52,463 |
|
|
|
51,685 |
|
|
|
778 |
|
Cargo |
|
12,717 |
|
|
|
12,690 |
|
|
|
27 |
|
|
|
37,084 |
|
|
|
37,968 |
|
|
|
(884 |
) |
Passenger |
|
5,425 |
|
|
|
3,952 |
|
|
|
1,473 |
|
|
|
15,379 |
|
|
|
13,717 |
|
|
|
1,662 |
|
Other |
|
831 |
|
|
|
459 |
|
|
|
372 |
|
|
|
2,128 |
|
|
|
1,480 |
|
|
|
648 |
|
Total Block Hours |
|
79,310 |
|
|
|
73,672 |
|
|
|
5,638 |
|
|
|
236,651 |
|
|
|
212,827 |
|
|
|
23,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Per Block
Hour |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
$ |
4,790 |
|
|
$ |
5,102 |
|
|
$ |
(312 |
) |
|
$ |
4,959 |
|
|
$ |
5,216 |
|
|
$ |
(257 |
) |
Charter |
$ |
17,862 |
|
|
$ |
19,394 |
|
|
$ |
(1,532 |
) |
|
$ |
18,010 |
|
|
$ |
18,472 |
|
|
$ |
(462 |
) |
Cargo |
$ |
16,745 |
|
|
$ |
19,180 |
|
|
$ |
(2,435 |
) |
|
$ |
17,379 |
|
|
$ |
18,569 |
|
|
$ |
(1,190 |
) |
Passenger |
$ |
20,480 |
|
|
$ |
20,079 |
|
|
$ |
401 |
|
|
$ |
19,530 |
|
|
$ |
18,204 |
|
|
$ |
1,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Utilization
(block hours per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI1 |
|
8.1 |
|
|
|
8.4 |
|
|
|
(0.3 |
) |
|
|
8.5 |
|
|
|
8.5 |
|
|
|
- |
|
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cargo |
|
7.7 |
|
|
|
9.8 |
|
|
|
(2.1 |
) |
|
|
8.0 |
|
|
|
10.2 |
|
|
|
(2.2 |
) |
Passenger |
|
6.6 |
|
|
|
5.7 |
|
|
|
0.9 |
|
|
|
6.3 |
|
|
|
7.7 |
|
|
|
(1.4 |
) |
All Operating Aircraft1,2 |
|
8.0 |
|
|
|
8.5 |
|
|
|
(0.5 |
) |
|
|
8.3 |
|
|
|
8.7 |
|
|
|
(0.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel cost per gallon |
$ |
2.27 |
|
|
$ |
2.43 |
|
|
$ |
(0.16 |
) |
|
$ |
2.29 |
|
|
$ |
2.34 |
|
|
$ |
(0.05 |
) |
Fuel gallons consumed (000s) |
|
54,296 |
|
|
|
49,206 |
|
|
|
5,090 |
|
|
|
153,764 |
|
|
|
147,664 |
|
|
|
6,100 |
|
1 |
ACMI and All Operating Aircraft
averages in the third quarter and first nine months of 2019 reflect
the impact of increases in the number of CMI aircraft and amount of
CMI flying compared with the same periods of 2018. |
|
|
2 |
Average of All Operating Aircraft
excludes Dry Leasing aircraft, which do not contribute to
block-hour volumes. |
|
Atlas Air Worldwide Holdings, Inc. |
Operating Statistics and Traffic Results |
(Unaudited) |
|
|
For the Three Months Ended |
|
|
Increase/ |
|
|
For the Nine Months Ended |
|
|
Increase/ |
|
|
September 30,
2019 |
|
|
September 30,
2018 |
|
|
(Decrease) |
|
|
September 30,
2019 |
|
|
September 30,
2018 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Fleet (average aircraft
equivalents during the period) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
747-8F Cargo |
|
7.7 |
|
|
|
8.9 |
|
|
|
(1.2 |
) |
|
|
8.3 |
|
|
|
9.0 |
|
|
|
(0.7 |
) |
747-400 Cargo |
|
18.3 |
|
|
|
16.8 |
|
|
|
1.5 |
|
|
|
18.1 |
|
|
|
16.2 |
|
|
|
1.9 |
|
747-400 Dreamlifter |
|
3.5 |
|
|
|
3.0 |
|
|
|
0.5 |
|
|
|
3.6 |
|
|
|
3.1 |
|
|
|
0.5 |
|
777-200 Cargo |
|
8.0 |
|
|
|
5.9 |
|
|
|
2.1 |
|
|
|
6.8 |
|
|
|
5.3 |
|
|
|
1.5 |
|
767-300 Cargo |
|
25.0 |
|
|
|
23.3 |
|
|
|
1.7 |
|
|
|
25.2 |
|
|
|
20.0 |
|
|
|
5.2 |
|
767-200 Cargo |
|
9.0 |
|
|
|
9.0 |
|
|
|
- |
|
|
|
9.0 |
|
|
|
9.0 |
|
|
|
- |
|
737-800 Cargo |
|
3.7 |
|
|
|
- |
|
|
|
3.7 |
|
|
|
1.8 |
|
|
|
- |
|
|
|
1.8 |
|
737-400 Cargo |
|
5.0 |
|
|
|
5.0 |
|
|
|
- |
|
|
|
5.0 |
|
|
|
5.0 |
|
|
|
- |
|
747-400 Passenger |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.3 |
|
|
|
(0.3 |
) |
767-200 Passenger |
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
Total |
|
81.2 |
|
|
|
72.9 |
|
|
|
8.3 |
|
|
|
78.8 |
|
|
|
68.9 |
|
|
|
9.9 |
|
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
747-8F Cargo |
|
2.2 |
|
|
|
1.1 |
|
|
|
1.1 |
|
|
|
1.6 |
|
|
|
1.0 |
|
|
|
0.6 |
|
747-400 Cargo |
|
15.7 |
|
|
|
13.0 |
|
|
|
2.7 |
|
|
|
15.3 |
|
|
|
12.4 |
|
|
|
2.9 |
|
767-300 Cargo |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.3 |
|
|
|
(0.3 |
) |
747-400 Passenger |
|
4.1 |
|
|
|
3.5 |
|
|
|
0.6 |
|
|
|
4.0 |
|
|
|
2.5 |
|
|
|
1.5 |
|
767-300 Passenger |
|
4.8 |
|
|
|
4.0 |
|
|
|
0.8 |
|
|
|
4.9 |
|
|
|
4.0 |
|
|
|
0.9 |
|
Total |
|
26.8 |
|
|
|
21.6 |
|
|
|
5.2 |
|
|
|
25.8 |
|
|
|
20.2 |
|
|
|
5.6 |
|
Dry Leasing1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
777-200 Cargo |
|
7.0 |
|
|
|
7.9 |
|
|
|
(0.9 |
) |
|
|
7.3 |
|
|
|
7.1 |
|
|
|
0.2 |
|
767-300 Cargo |
|
21.0 |
|
|
|
17.7 |
|
|
|
3.3 |
|
|
|
21.2 |
|
|
|
15.8 |
|
|
|
5.4 |
|
757-200 Cargo |
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
737-300 Cargo |
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
737-800 Passenger |
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
Total |
|
31.0 |
|
|
|
28.6 |
|
|
|
2.4 |
|
|
|
31.5 |
|
|
|
25.9 |
|
|
|
5.6 |
|
Less: Aircraft Dry Leased to CMI customers |
|
(22.7 |
) |
|
|
(19.6 |
) |
|
|
(3.1 |
) |
|
|
(23.1 |
) |
|
|
(16.9 |
) |
|
|
(6.2 |
) |
Total Operating Average Aircraft Equivalents |
|
116.3 |
|
|
|
103.5 |
|
|
|
12.8 |
|
|
|
113.0 |
|
|
|
98.1 |
|
|
|
14.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
ACMI average fleet excludes spare
aircraft provided by CMI customers and Dry Leasing average fleet
excludes aircraft awaiting placement. |
Contacts: |
Dan Loh (Investors) – (914) 701-8200 |
|
Debbie Coffey (Media) – (914) 701-8951 |
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