Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced
second-quarter 2020 net income of $78.9 million, or $3.01 per
diluted share, compared with net income of $86.9 million, or $1.61
per diluted share, in the second quarter of 2019.
On an adjusted basis, EBITDA totaled $247.0
million in the second quarter this year compared with $84.1 million
in the second quarter of 2019. Adjusted net income in the second
quarter of 2020 totaled $123.2 million, or $4.71 per diluted share,
compared with $4.5 million, or $0.17 per diluted share, in the
second quarter of 2019.
“Revenue and earnings in the second quarter
continued to exceed our expectations,” said Chief Executive Officer
John W. Dietrich. “These positive results were primarily driven by
the team capitalizing on strong demand and higher yields in our
commercial charter and South America businesses. We also continued
to provide the U.S. military with essential services and our ACMI
customers flew well above their minimum guarantees.
“We continued to execute on very favorable
business opportunities in a challenging operating environment, with
the safety of our employees as our top priority. We leveraged the
scale of our world-class fleet, the scope of our global operations
and the flexibility of our business model to capitalize on market
dynamics.
“To serve this increased demand, we reactivated
three of our 747-400 converted freighters and operationalized a 777
freighter from our Dry Leasing business. This enabled us to serve
the strong and profitable shorter-term demand, while also entering
into numerous new long-term charter programs at attractive yields.
We expanded our long-term charter business to include new
agreements with manufacturers such as HP Inc., and large freight
forwarders like DHL Global Forwarding, APEX Logistics, DB Schenker,
Flexport and Geodis, all that wanted to secure committed capacity
from us.”
Mr. Dietrich added: “We continued to deliver
safe and high-quality service for our customers, despite the many
challenges presented by this pandemic, including a variety of
travel restrictions, testing protocols, quarantine mandates and
other operational challenges. This is a true testament to the
commitment and dedication of all our Atlas team members,
particularly our crew and ground staff out in the field.
“We are taking every precaution to safeguard all
our employees and ensure that we continue to transport the goods
the world needs during these important times. We also appreciate
our customers’ and vendors’ commitment to safety, and their
partnership and unity as we protect our employees and our
operations.”
He said: “Atlas is continuing to play an
essential role in the global supply chain, and the goods we carry
help save lives, fuel economic activity and support jobs. We are
playing a key role in our customers’ operating networks, and are
helping businesses and communities manage through COVID-19.
“With our broad portfolio of aircraft, including
the world’s largest fleet of 747 freighters, along with large
fleets of 777s, 767s and 737s, we provide our customers with fleet
choices and operating capabilities that are unmatched in our
industry.
“We have a talented team, a strong balance
sheet, and we continue to demonstrate our ability to adjust to
market conditions, capitalize on strategic growth opportunities,
and navigate through these evolving and uncertain times.
“Reflecting our first-half results and our
current market expectations, and subject to any material COVID-19
developments, we anticipate full-year 2020 revenue of just over $3
billion and adjusted EBITDA of approximately $750 million.*
“Our outlook also expects approximately 50% of
our full-year 2020 adjusted net income to occur in the second half
of the year. That would result in 2020 adjusted net income being
more than double 2019.”
Second-Quarter Results
Volumes in the second quarter of 2020 increased
to 84,966 block hours compared with 80,282 in the second quarter of
2019, with revenue rising to $825.3 million compared with $663.9
million in the prior-year quarter.
ACMI segment revenue during the period reflected
lower block hours, primarily driven by the redeployment of 747-400
aircraft to the Charter segment to support new long-term charter
programs with customers seeking to secure committed cargo capacity.
This was partially offset by an increase in 777, 737 and 747-400
CMI flying.
ACMI segment contribution decreased during the
quarter primarily due to higher heavy maintenance, including
additional engine overhauls and other maintenance performed to take
advantage of slot availability and opportunities for vendor pricing
discounts. In addition, segment contribution reflected higher pilot
costs related to a 10% increase in pay rates resulting from our
recent interim agreement with our pilots and premium pay for pilots
operating in certain areas outside of the U.S. significantly
impacted by COVID-19; and the redeployment of 747-400 aircraft to
the Charter segment to support new long-term charter programs with
customers seeking to secure committed cargo capacity. Partially
offsetting these items was an increase in 777, 737 and 747-400 CMI
flying, and a reduction in aircraft rent and depreciation.
Charter segment revenue during the period
primarily reflected increased levels of flying and an increase in
the average rate per block hour. Block-hour volume growth was
primarily driven by increased demand for freighter aircraft,
reflecting a combination of increased demand for cargo, as well as
the reduction of available cargo capacity in the market, the
disruption of global supply chains due to the pandemic and our
ability to increase utilization. As a result of this increase in
demand and in support of new long-term charter programs with
customers seeking to secure committed cargo capacity, we redeployed
747-400 aircraft from ACMI and began operating a 777 from our Dry
Leasing business. The increase in the average rate per block hour
primarily reflected higher commercial cargo yields (excluding
fuel), partially offset by lower levels of 747 passenger flying for
the U.S. military.
Charter segment contribution was driven by the
increase in commercial cargo yields (excluding fuel), and demand
for freighter aircraft, reflecting a combination of increased
demand for cargo, as well as the reduction of available capacity in
the market, the disruption of the global supply chain due to the
pandemic and our ability to increase utilization. In addition,
segment contribution benefited from a reduction in aircraft rent
and depreciation, and the redeployment of 747-400 aircraft from
ACMI and a 777 freighter from Dry Leasing. These improvements were
partially offset by: higher heavy maintenance expense, including
additional engine overhauls and other maintenance performed to take
advantage of slot availability and opportunities for vendor pricing
discounts; lower U.S. military passenger flying as the pandemic
disrupted the movement of U.S. military personnel; and higher pilot
costs related to a 10% increase in pay rates resulting from our
recent interim agreement with our pilots and premium pay for pilots
operating in certain areas outside of the U.S. significantly
impacted by COVID-19.
In Dry Leasing, lower segment revenue and
contribution in the second quarter of 2020 primarily related to
changes in leases and the disposition of certain nonessential Dry
Leased aircraft during the first quarter of 2020.
Lower unallocated income and expenses, net,
during the quarter primarily reflected a $24.3 million (after tax)
refund of aircraft rent paid in previous years.
Reported earnings in the second quarter of 2020
also included an effective income tax rate of 29.5%, due mainly to
nondeductible changes in the value of outstanding warrants. On an
adjusted basis, our results reflected an effective income tax rate
of 21.6%.
Cash and Short-Term
Investments
At June 30, 2020, our cash and cash equivalents,
restricted cash and short-term investments totaled $739.2 million,
compared with $114.3 million at December 31, 2019.
Our improved cash balance primarily reflected
strong cash provided by operating activities, and also included the
funds we received through the Payroll Support Program available to
air cargo carriers under the CARES Act. Those funds will be
utilized to pay the salaries, wages and benefits of employees, and
helps us to protect the jobs of our highly-skilled team during this
period of global uncertainty.
Net cash provided by financing activities during
the first six months of 2020 primarily related to proceeds from
debt issuance and from our revolving credit facility, partially
offset by payments on debt obligations.
Net cash used for investing activities during
the first six months of 2020 primarily related to capital
expenditures and payments for flight equipment and modifications,
including spare engines and GEnx engine performance upgrade kits,
partially offset by proceeds from the disposal of aircraft.
To mitigate the impact of any continuation or
worsening of the pandemic, we have implemented a number of
cost-reduction initiatives, including a significant reduction in
nonessential employee travel, the use of contractors and ground
staff hiring. We have also taken actions to increase liquidity and
strengthen our financial position, such as the sale of certain
nonessential assets and our participation in the Payroll Support
Program under the CARES Act.
Half-Year Results
Reported results for the six months ended June
30, 2020 reflected net income of $102.3 million, or $3.92 per
diluted share, which included a $29.7 million unrealized loss on
financial instruments. Results for the first half compared with net
income of $57.2 million, or $2.21 per diluted share, which included
an unrealized loss on financial instruments of $4.3 million, for
the six months ended June 30, 2019.
On an adjusted basis, EBITDA totaled $368.2
million in the first half of 2020 compared with $204.5 million in
the first half of 2019. First-half 2020 adjusted net income totaled
$153.1 million, or $5.87 per diluted share, compared with $31.8
million, or $1.16 per diluted share, in the first half of 2019.
2020 Outlook*
Reflecting our first-half results and our
current market expectations for the balance of the year, and
subject to any material COVID-19 developments, we expect to fly
more than 330,000 block hours in 2020, with about 70% of the hours
in ACMI and the remainder in Charter.
We also anticipate revenue of just over $3
billion and adjusted EBITDA of approximately $750 million. Our
outlook also expects approximately 50% of our full-year 2020
adjusted net income to occur in the second half of the year. That
would result in 2020 adjusted net income being more than double
2019.
Historically, we have generated the vast
majority of our earnings in the second half of the year. This year,
however, due to the strength of the first half, we anticipate our
full-year 2020 adjusted net income to be more evenly split between
the first and second half. Our second-quarter results this year
benefited from commercial charter yields that were significantly
above typical levels and from a $24.3 million (after tax) refund of
excess aircraft rent paid in previous years.
Aircraft maintenance expense in 2020 is expected
to total about $480 million, with depreciation and amortization
totaling around $255 million. Core capital expenditures, which
exclude aircraft and engine purchases, are projected to total
approximately $80 to $90 million, mainly for parts and components
for our fleet.
We estimate our full-year 2020 adjusted
effective income tax rate will be approximately 23%.
For the third quarter of 2020, we expect
commercial charter yields to moderate from the second quarter, but
still remain elevated compared with typical yields for this time of
year. We anticipate flying more than 85,000 block hours (about 70%
in ACMI), with revenue of nearly $800 million and adjusted EBITDA
of about $170 million. We also expect that our third-quarter
adjusted net income will represent approximately 20% of our
full-year 2020 adjusted net income, or to be more than six times
higher than third-quarter 2019 adjusted net income of $9.5
million.
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 second-quarter 2020 financial and
operating results at 11:00 a.m. Eastern Time on Thursday, August 6,
2020.
Interested parties may listen to the call live
at Atlas Air Worldwide’s Investor site or at
https://edge.media-server.com/mmc/p/9fgsqxqz.
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 August 14 by dialing (855)
859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.)
and using Access Code 1098299#.
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 net
income; Adjusted Diluted EPS; 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 Net income (loss); Diluted EPS;
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 net income; and Adjusted Diluted EPS
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 net
income.
- 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 warrant
liability, 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 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 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 impact of geographical events or
health epidemics such as the COVID-19 pandemic; our compliance with
the requirements and restrictions under the Payroll Support
Program; 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; 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 2020 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.
Contacts: Investors
– InvestorRelations@atlasair.com Media –
CorpCommunications@atlasair.com |
Atlas Air Worldwide Holdings,
Inc. Consolidated Statements of
Operations (in thousands, except per share data)
(Unaudited)
|
|
For the Three Months Ended |
|
|
For the Six MonthsEnded |
|
|
|
June 30,
2020 |
|
|
June 30, 2019 |
|
|
June 30, 2020 |
|
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenue |
|
$ |
825,253 |
|
|
$ |
663,918 |
|
|
$ |
1,468,755 |
|
|
$ |
1,343,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits |
|
|
192,591 |
|
|
|
141,450 |
|
|
|
340,335 |
|
|
|
286,924 |
|
Maintenance, materials and repairs |
|
|
168,300 |
|
|
|
113,471 |
|
|
|
262,452 |
|
|
|
217,091 |
|
Aircraft fuel |
|
|
83,242 |
|
|
|
122,158 |
|
|
|
191,560 |
|
|
|
228,479 |
|
Depreciation and amortization |
|
|
65,826 |
|
|
|
63,689 |
|
|
|
123,410 |
|
|
|
128,170 |
|
Travel |
|
|
34,627 |
|
|
|
46,374 |
|
|
|
77,018 |
|
|
|
91,403 |
|
Navigation fees, landing fees and other rent |
|
|
35,638 |
|
|
|
37,982 |
|
|
|
67,039 |
|
|
|
78,198 |
|
Passenger and ground handling services |
|
|
30,130 |
|
|
|
30,525 |
|
|
|
62,089 |
|
|
|
62,685 |
|
Aircraft rent |
|
|
24,316 |
|
|
|
40,335 |
|
|
|
48,283 |
|
|
|
82,223 |
|
Loss (gain) on disposal of aircraft |
|
|
2 |
|
|
|
- |
|
|
|
(6,715 |
) |
|
|
- |
|
Special charge |
|
|
15,934 |
|
|
|
3,269 |
|
|
|
15,934 |
|
|
|
3,269 |
|
Transaction-related expenses |
|
|
1,275 |
|
|
|
734 |
|
|
|
1,796 |
|
|
|
3,261 |
|
Other |
|
|
52,710 |
|
|
|
54,961 |
|
|
|
103,822 |
|
|
|
106,054 |
|
Total Operating Expenses |
|
|
704,591 |
|
|
|
654,948 |
|
|
|
1,287,023 |
|
|
|
1,287,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
120,662 |
|
|
|
8,970 |
|
|
|
181,732 |
|
|
|
55,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating Expenses
(Income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(224 |
) |
|
|
(1,278 |
) |
|
|
(704 |
) |
|
|
(3,322 |
) |
Interest expense |
|
|
28,950 |
|
|
|
30,045 |
|
|
|
58,225 |
|
|
|
60,398 |
|
Capitalized interest |
|
|
(132 |
) |
|
|
(627 |
) |
|
|
(325 |
) |
|
|
(1,090 |
) |
Loss on early extinguishment of debt |
|
|
74 |
|
|
|
- |
|
|
|
74 |
|
|
|
245 |
|
Unrealized loss (gain) on financial instruments |
|
|
30,671 |
|
|
|
(42,300 |
) |
|
|
29,747 |
|
|
|
4,275 |
|
Other (income) expense, net |
|
|
(50,598 |
) |
|
|
945 |
|
|
|
(49,392 |
) |
|
|
(2,030 |
) |
Total Non-operating Expenses (Income) |
|
|
8,741 |
|
|
|
(13,215 |
) |
|
|
37,625 |
|
|
|
58,476 |
|
Income (loss) before income taxes |
|
|
111,921 |
|
|
|
22,185 |
|
|
|
144,107 |
|
|
|
(2,632 |
) |
Income tax expense (benefit) |
|
|
33,009 |
|
|
|
(64,683 |
) |
|
|
41,842 |
|
|
|
(59,790 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
78,912 |
|
|
$ |
86,868 |
|
|
$ |
102,265 |
|
|
$ |
57,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
3.02 |
|
|
$ |
3.36 |
|
|
$ |
3.93 |
|
|
$ |
2.22 |
|
Diluted |
|
$ |
3.01 |
|
|
$ |
1.61 |
|
|
$ |
3.92 |
|
|
$ |
2.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
26,129 |
|
|
|
25,851 |
|
|
|
26,048 |
|
|
|
25,794 |
|
Diluted |
|
|
26,182 |
|
|
|
26,953 |
|
|
|
26,074 |
|
|
|
25,921 |
|
Atlas Air Worldwide Holdings,
Inc. Consolidated Balance Sheets (in
thousands, except share data)(Unaudited)
|
|
June 30, 2020 |
|
|
December 31, 2019 |
|
Assets |
|
|
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
726,402 |
|
|
$ |
103,029 |
|
Restricted cash |
|
|
12,776 |
|
|
|
10,401 |
|
Short-term investments |
|
|
- |
|
|
|
879 |
|
Accounts receivable, net of allowance of $886 and $1,822,
respectively |
|
|
239,051 |
|
|
|
290,119 |
|
Prepaid expenses, assets held for sale and other current
assets |
|
|
177,978 |
|
|
|
228,103 |
|
Total current assets |
|
|
1,156,207 |
|
|
|
632,531 |
|
Property and
Equipment |
|
|
|
|
|
|
|
|
Flight equipment |
|
|
4,962,987 |
|
|
|
4,880,424 |
|
Ground equipment |
|
|
86,341 |
|
|
|
83,584 |
|
Less: accumulated depreciation |
|
|
(1,068,347 |
) |
|
|
(977,883 |
) |
Flight equipment modifications in progress |
|
|
26,960 |
|
|
|
67,101 |
|
Property and equipment, net |
|
|
4,007,941 |
|
|
|
4,053,226 |
|
Other
Assets |
|
|
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
200,194 |
|
|
|
231,133 |
|
Deferred costs and other assets |
|
|
378,567 |
|
|
|
391,895 |
|
Intangible assets, net and goodwill |
|
|
73,841 |
|
|
|
76,856 |
|
Total
Assets |
|
$ |
5,816,750 |
|
|
$ |
5,385,641 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity |
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
73,812 |
|
|
$ |
79,683 |
|
Accrued liabilities |
|
|
653,253 |
|
|
|
481,725 |
|
Current portion of long-term debt and finance leases |
|
|
275,017 |
|
|
|
395,781 |
|
Current portion of long-term operating leases |
|
|
143,225 |
|
|
|
141,973 |
|
Total current liabilities |
|
|
1,145,307 |
|
|
|
1,099,162 |
|
Other
Liabilities |
|
|
|
|
|
|
|
|
Long-term debt and finance leases |
|
|
2,238,664 |
|
|
|
1,984,902 |
|
Long-term operating leases |
|
|
322,450 |
|
|
|
392,832 |
|
Deferred taxes |
|
|
111,802 |
|
|
|
74,040 |
|
Financial instruments and other liabilities |
|
|
68,160 |
|
|
|
42,526 |
|
Total other liabilities |
|
|
2,741,076 |
|
|
|
2,494,300 |
|
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;
31,493,328 and 31,048,842 shares issued, 26,135,945 and
25,870,876 shares outstanding (net of treasury stock), as of
June 30, 2020 and December 31, 2019,
respectively |
|
|
315 |
|
|
|
310 |
|
Additional paid-in-capital |
|
|
801,002 |
|
|
|
761,715 |
|
Treasury stock, at cost; 5,357,383 and 5,177,966 shares,
respectively |
|
|
(217,711 |
) |
|
|
(213,871 |
) |
Accumulated other comprehensive loss |
|
|
(2,347 |
) |
|
|
(2,818 |
) |
Retained earnings |
|
|
1,349,108 |
|
|
|
1,246,843 |
|
Total stockholders’ equity |
|
|
1,930,367 |
|
|
|
1,792,179 |
|
Total Liabilities and
Equity |
|
$ |
5,816,750 |
|
|
$ |
5,385,641 |
|
1 Balance sheet debt at June 30, 2020 totaled
$2,513.7 million, including the impact of $59.7 million of
unamortized discount and debt issuance costs of $33.0 million,
compared with $2,380.7 million, including the impact of $68.6
million of unamortized discount and debt issuance costs of $35.1
million at December 31, 2019. 2 The face value of our debt at
June 30, 2020 totaled $2,606.4 million, compared with $2,484.4
million on December 31, 2019.
Atlas Air Worldwide Holdings,
Inc. Consolidated Statements of Cash
Flows (in thousands) (Unaudited)
|
|
For the Six Months Ended |
|
|
June 30,
2020 |
|
June 30,
2019 |
|
|
|
|
|
|
|
Operating
Activities: |
|
|
|
|
|
|
Net Income |
|
$ |
102,265 |
|
|
$ |
57,158 |
|
|
|
|
|
|
|
|
Adjustments to reconcile Net
Income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
157,509 |
|
|
|
157,820 |
|
Amortization (accretion) of debt securities discount |
|
|
(2 |
) |
|
|
208 |
|
Provision for (reversal of) expected credit losses |
|
|
(6 |
) |
|
|
4 |
|
Loss on early extinguishment of debt |
|
|
74 |
|
|
|
245 |
|
Special charge, net of cash payments |
|
|
15,934 |
|
|
|
3,269 |
|
Unrealized loss (gain) on financial instruments |
|
|
29,747 |
|
|
|
4,275 |
|
Loss (gain) on disposal of aircraft |
|
|
(6,715 |
) |
|
|
- |
|
Deferred taxes |
|
|
39,518 |
|
|
|
(60,122 |
) |
Stock-based compensation |
|
|
10,506 |
|
|
|
10,025 |
|
Changes in: |
|
|
|
|
|
|
Accounts receivable |
|
|
51,781 |
|
|
|
26 |
|
Prepaid expenses, current assets and other assets |
|
|
(19,115 |
) |
|
|
(23,835 |
) |
Accounts payable, accrued liabilities and other liabilities |
|
|
178,894 |
|
|
|
(40,076 |
) |
Net cash provided by operating
activities |
|
|
560,390 |
|
|
|
108,997 |
|
Investing
Activities: |
|
|
|
|
|
|
Capital expenditures |
|
|
(25,095 |
) |
|
|
(76,754 |
) |
Payments for flight equipment and modifications |
|
|
(59,919 |
) |
|
|
(99,161 |
) |
Proceeds from insurance |
|
|
- |
|
|
|
38,133 |
|
Proceeds from investments |
|
|
881 |
|
|
|
9,313 |
|
Proceeds from disposal of aircraft |
|
|
44,110 |
|
|
|
- |
|
Net cash used for investing
activities |
|
|
(40,023 |
) |
|
|
(128,469 |
) |
Financing
Activities: |
|
|
|
|
|
|
Proceeds from debt issuance |
|
|
321,518 |
|
|
|
19,723 |
|
Payment of debt issuance costs |
|
|
(3,910 |
) |
|
|
(955 |
) |
Payments of debt and finance lease obligations |
|
|
(274,960 |
) |
|
|
(160,091 |
) |
Proceeds from revolving credit facility |
|
|
75,000 |
|
|
|
50,000 |
|
Customer maintenance reserves and deposits received |
|
|
6,010 |
|
|
|
8,039 |
|
Customer maintenance reserves paid |
|
|
(14,437 |
) |
|
|
- |
|
Treasury shares withheld for payment of taxes |
|
|
(3,840 |
) |
|
|
(9,227 |
) |
Net cash provided by (used for)
financing activities |
|
|
105,381 |
|
|
|
(92,511 |
) |
Net increase (decrease) in cash,
cash equivalents and restricted cash |
|
|
625,748 |
|
|
|
(111,983 |
) |
Cash, cash equivalents and
restricted cash at the beginning of period |
|
|
113,430 |
|
|
|
232,741 |
|
Cash, cash equivalents and
restricted cash at the end of period |
|
$ |
739,178 |
|
|
$ |
120,758 |
|
|
|
|
|
|
|
|
Noncash Investing and
Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of flight equipment included in Accounts payable and
accrued liabilities |
|
$ |
13,613 |
|
|
$ |
51,996 |
|
Acquisition of property and equipment acquired under operating
leases |
|
$ |
1,918 |
|
|
$ |
- |
|
Customer maintenance reserves settled with sale of aircraft |
|
$ |
6,497 |
|
|
$ |
- |
|
Atlas Air Worldwide Holdings, Inc. Direct
Contribution (in thousands) (Unaudited)
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
|
|
June 30,
2020 |
|
|
June 30,
2019 |
|
|
June 30,
2020 |
|
|
June 30, 2019 |
|
Operating Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
$ |
291,951 |
|
|
$ |
307,278 |
|
|
$ |
570,695 |
|
|
$ |
613,845 |
|
Charter |
|
|
497,547 |
|
|
|
315,679 |
|
|
|
825,176 |
|
|
|
620,793 |
|
Dry Leasing |
|
|
40,906 |
|
|
|
43,535 |
|
|
|
82,832 |
|
|
|
113,481 |
|
Customer incentive asset
amortization |
|
|
(9,534 |
) |
|
|
(6,936 |
) |
|
|
(18,556 |
) |
|
|
(13,222 |
) |
Other |
|
|
4,383 |
|
|
|
4,362 |
|
|
|
8,608 |
|
|
|
8,704 |
|
Total Operating
Revenue |
|
$ |
825,253 |
|
|
$ |
663,918 |
|
|
$ |
1,468,755 |
|
|
$ |
1,343,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
Contribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
$ |
14,495 |
|
|
$ |
40,640 |
|
|
$ |
66,802 |
|
|
$ |
80,647 |
|
Charter |
|
|
185,969 |
|
|
|
14,084 |
|
|
|
236,750 |
|
|
|
43,217 |
|
Dry Leasing |
|
|
9,721 |
|
|
|
11,091 |
|
|
|
20,420 |
|
|
|
46,618 |
|
Total Direct Contribution
for Reportable Segments |
|
|
210,185 |
|
|
|
65,815 |
|
|
|
323,972 |
|
|
|
170,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated expenses and
(income), net |
|
|
(50,308 |
) |
|
|
(81,927 |
) |
|
|
(139,029 |
) |
|
|
(162,064 |
) |
Loss on early extinguishment of
debt |
|
|
(74 |
) |
|
|
- |
|
|
|
(74 |
) |
|
|
(245 |
) |
Unrealized gain (loss) on
financial instruments |
|
|
(30,671 |
) |
|
|
42,300 |
|
|
|
(29,747 |
) |
|
|
(4,275 |
) |
Special charge |
|
|
(15,934 |
) |
|
|
(3,269 |
) |
|
|
(15,934 |
) |
|
|
(3,269 |
) |
Transaction-related expenses |
|
|
(1,275 |
) |
|
|
(734 |
) |
|
|
(1,796 |
) |
|
|
(3,261 |
) |
Gain (loss) on disposal of
aircraft |
|
|
(2 |
) |
|
|
- |
|
|
|
6,715 |
|
|
|
- |
|
Income (loss) before
income taxes |
|
|
111,921 |
|
|
|
22,185 |
|
|
|
144,107 |
|
|
|
(2,632 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(224 |
) |
|
|
(1,278 |
) |
|
|
(704 |
) |
|
|
(3,322 |
) |
Interest expense |
|
|
28,950 |
|
|
|
30,045 |
|
|
|
58,225 |
|
|
|
60,398 |
|
Capitalized interest |
|
|
(132 |
) |
|
|
(627 |
) |
|
|
(325 |
) |
|
|
(1,090 |
) |
Loss on early extinguishment of
debt |
|
|
74 |
|
|
|
- |
|
|
|
74 |
|
|
|
245 |
|
Unrealized (gain) loss on
financial instruments |
|
|
30,671 |
|
|
|
(42,300 |
) |
|
|
29,747 |
|
|
|
4,275 |
|
Other (income) expense, net |
|
|
(50,598 |
) |
|
|
945 |
|
|
|
(49,392 |
) |
|
|
(2,030 |
) |
Operating
Income |
|
$ |
120,662 |
|
|
$ |
8,970 |
|
|
$ |
181,732 |
|
|
$ |
55,844 |
|
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)
before taxes, excluding loss on early extinguishment of debt,
unrealized gain (loss) on financial instruments, special charge,
transaction-related expenses, loss (gain) on disposal of aircraft,
nonrecurring items, and unallocated expenses and (income), 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 expenses and (income), 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 |
|
June 30,
2020 |
|
|
June 30,
2019 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
78,912 |
|
|
$ |
86,868 |
|
|
(9.2 |
)% |
Impact from: |
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
(20,167 |
) |
|
|
- |
|
|
|
Customer incentive asset amortization |
|
9,534 |
|
|
|
6,936 |
|
|
|
Special charge |
|
15,934 |
|
|
|
3,269 |
|
|
|
Costs associated with transactions2 |
|
1,275 |
|
|
|
734 |
|
|
|
Leadership transition costs |
|
3,156 |
|
|
|
541 |
|
|
|
Noncash expenses and income, net3 |
|
4,458 |
|
|
|
4,579 |
|
|
|
Unrealized loss (gain) on financial instruments |
|
30,671 |
|
|
|
(42,300 |
) |
|
|
Other, net4 |
|
279 |
|
|
|
1,815 |
|
|
|
Income tax effect of reconciling items |
|
(863 |
) |
|
|
(3,652 |
) |
|
|
Special tax item6 |
|
- |
|
|
|
(54,272 |
) |
|
|
Adjusted Net
Income |
$ |
123,189 |
|
|
$ |
4,518 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
Adjusted weighted average
diluted shares outstanding |
|
26,182 |
|
|
|
26,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
$ |
4.71 |
|
|
$ |
0.17 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
June 30,
2020 |
|
|
June 30,
2019 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
102,265 |
|
|
$ |
57,158 |
|
|
78.9 |
% |
Impact from: |
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
(20,167 |
) |
|
|
- |
|
|
|
Customer incentive asset amortization |
|
18,556 |
|
|
|
13,222 |
|
|
|
Special charge |
|
15,934 |
|
|
|
3,269 |
|
|
|
Costs associated with transactions2 |
|
1,796 |
|
|
|
3,261 |
|
|
|
Leadership transition costs |
|
3,757 |
|
|
|
541 |
|
|
|
Noncash expenses and income, net3 |
|
8,844 |
|
|
|
9,047 |
|
|
|
Unrealized loss on financial instruments |
|
29,747 |
|
|
|
4,275 |
|
|
|
Other, net4 |
|
(6,103 |
) |
|
|
(979 |
) |
|
|
Income tax effect of reconciling items |
|
(1,559 |
) |
|
|
(3,681 |
) |
|
|
Special tax item6 |
|
- |
|
|
|
(54,272 |
) |
|
|
Adjusted Net
Income |
$ |
153,070 |
|
|
$ |
31,841 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
Adjusted weighted average
diluted shares outstanding |
|
26,074 |
|
|
|
27,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
$ |
5.87 |
|
|
$ |
1.16 |
|
|
NM |
|
Atlas Air Worldwide Holdings, Inc.
Reconciliation to Non-GAAP Measures (in thousands, except
per share data) (Unaudited)
|
For the Three Months
Ended |
|
June 30, 2020 |
|
|
June 30, 2019 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes |
$ |
111,921 |
|
|
$ |
22,185 |
|
|
NM |
|
Impact from: |
|
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
(20,167 |
) |
|
|
- |
|
|
|
|
Customer incentive asset amortization |
|
9,534 |
|
|
|
6,936 |
|
|
|
|
Special charge |
|
15,934 |
|
|
|
3,269 |
|
|
|
|
Costs associated with transactions2 |
|
1,275 |
|
|
|
734 |
|
|
|
|
Leadership transition costs |
|
3,156 |
|
|
|
541 |
|
|
|
|
Noncash expenses and income, net3 |
|
4,458 |
|
|
|
4,579 |
|
|
|
|
Unrealized loss (gain) on financial instruments |
|
30,671 |
|
|
|
(42,300 |
) |
|
|
|
Other, net4 |
|
279 |
|
|
|
1,815 |
|
|
|
|
Adjusted income (loss)
before income taxes |
$ |
157,061 |
|
|
$ |
(2,241 |
) |
|
NM |
|
Interest expense, net5 |
|
24,136 |
|
|
|
24,034 |
|
|
|
|
Other (income) expense, net |
|
(50,598 |
) |
|
|
945 |
|
|
|
|
Adjusted operating
income |
$ |
130,599 |
|
|
$ |
22,738 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
$ |
33,009 |
|
|
$ |
(64,683 |
) |
|
|
|
Income tax effect of reconciling items |
|
(863 |
) |
|
|
(3,652 |
) |
|
|
|
Special tax item6 |
|
- |
|
|
|
(54,272 |
) |
|
|
|
Adjusted income tax expense (benefit) |
|
33,872 |
|
|
|
(6,759 |
) |
|
|
|
Adjusted income (loss) before income
taxes |
$ |
157,061 |
|
|
$ |
(2,241 |
) |
|
|
|
Effective tax expense (benefit) rate |
|
29.5 |
% |
|
|
(291.6 |
)% |
|
|
|
Adjusted effective tax expense (benefit)
rate |
|
21.6 |
% |
|
|
(301.6 |
)% |
|
|
|
|
|
|
For the Six Months Ended |
|
June 30, 2020 |
|
|
June 30, 2019 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
taxes |
$ |
144,107 |
|
|
$ |
(2,632 |
) |
|
NM |
|
Impact from: |
|
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
(20,167 |
) |
|
|
- |
|
|
|
|
Customer incentive asset amortization |
|
18,556 |
|
|
|
13,222 |
|
|
|
|
Special charge |
|
15,934 |
|
|
|
3,269 |
|
|
|
|
Costs associated with transactions2 |
|
1,796 |
|
|
|
3,261 |
|
|
|
|
Leadership transition costs |
|
3,757 |
|
|
|
541 |
|
|
|
|
Noncash expenses and income, net3 |
|
8,844 |
|
|
|
9,047 |
|
|
|
|
Unrealized loss on financial instruments |
|
29,747 |
|
|
|
4,275 |
|
|
|
|
Other, net4 |
|
(6,103 |
) |
|
|
(979 |
) |
|
|
|
Adjusted income before
income taxes |
$ |
196,471 |
|
|
$ |
30,004 |
|
|
NM |
|
Interest expense, net5 |
|
48,352 |
|
|
|
47,885 |
|
|
|
|
Other (income) expense, net |
|
(49,392 |
) |
|
|
(2,030 |
) |
|
|
|
Adjusted operating
income |
$ |
195,431 |
|
|
$ |
75,859 |
|
|
157.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
$ |
41,842 |
|
|
$ |
(59,790 |
) |
|
|
|
Income tax effect of reconciling items |
|
(1,559 |
) |
|
|
(3,681 |
) |
|
|
|
Special tax item6 |
|
- |
|
|
|
(54,272 |
) |
|
|
|
Adjusted income tax expense (benefit) |
|
43,401 |
|
|
|
(1,837 |
) |
|
|
|
Adjusted income before income taxes |
$ |
196,471 |
|
|
$ |
30,004 |
|
|
|
|
Effective tax expense (benefit) rate |
|
29.0 |
% |
|
|
(2,271.7 |
)% |
|
|
|
Adjusted effective tax expense (benefit)
rate |
|
22.1 |
% |
|
|
(6.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide Holdings, Inc.
Reconciliation to Non-GAAP Measures (in thousands, except
per share data) (Unaudited)
|
For the Three Months
Ended |
|
June 30, 2020 |
|
|
June 30, 2019 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
78,912 |
|
|
$ |
86,868 |
|
|
(9.2 |
)% |
Interest expense, net |
|
28,594 |
|
|
|
28,140 |
|
|
|
|
Depreciation and
amortization |
|
65,826 |
|
|
|
63,689 |
|
|
|
|
Income tax expense
(benefit) |
|
33,009 |
|
|
|
(64,683 |
) |
|
|
|
EBITDA |
|
206,341 |
|
|
|
114,014 |
|
|
|
|
CARES Act grant income1 |
|
(20,167 |
) |
|
|
- |
|
|
|
|
Customer incentive asset
amortization |
|
9,534 |
|
|
|
6,936 |
|
|
|
|
Special charge |
|
15,934 |
|
|
|
3,269 |
|
|
|
|
Costs associated with
transactions2 |
|
1,275 |
|
|
|
734 |
|
|
|
|
Leadership transition
costs |
|
3,156 |
|
|
|
541 |
|
|
|
|
Unrealized loss (gain) on
financial instruments |
|
30,671 |
|
|
|
(42,300 |
) |
|
|
|
Other, net4 |
|
279 |
|
|
|
954 |
|
|
|
|
Adjusted
EBITDA |
$ |
247,023 |
|
|
$ |
84,148 |
|
|
193.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
|
June 30,
2020 |
|
|
June 30, 2019 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
102,265 |
|
|
$ |
57,158 |
|
|
78.9 |
% |
Interest expense, net |
|
57,196 |
|
|
|
55,986 |
|
|
|
|
Depreciation and
amortization |
|
123,410 |
|
|
|
128,170 |
|
|
|
|
Income tax expense
(benefit) |
|
41,842 |
|
|
|
(59,790 |
) |
|
|
|
EBITDA |
|
324,713 |
|
|
|
181,524 |
|
|
|
|
CARES Act grant income1 |
|
(20,167 |
) |
|
|
- |
|
|
|
|
Customer incentive asset
amortization |
|
18,556 |
|
|
|
13,222 |
|
|
|
|
Special charge |
|
15,934 |
|
|
|
3,269 |
|
|
|
|
Costs associated with
transactions2 |
|
1,796 |
|
|
|
3,261 |
|
|
|
|
Leadership transition
costs |
|
3,757 |
|
|
|
541 |
|
|
|
|
Unrealized loss on financial
instruments |
|
29,747 |
|
|
|
4,275 |
|
|
|
|
Other, net4 |
|
(6,103 |
) |
|
|
(1,580 |
) |
|
|
|
Adjusted
EBITDA |
$ |
368,233 |
|
|
$ |
204,512 |
|
|
80.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
1 CARES Act grant income in 2020 is related to
income associated with the Payroll Support Program.
2 Costs associated with transactions in 2020
primarily related to costs associated with the Payroll Support
Program and our acquisition of Southern Air. Costs associated with
transactions in 2019 primarily related to a customer transaction
with warrants and other costs associated with our acquisition of
Southern Air.
3 Noncash expenses and income, net in 2020 and
2019 is primarily related to amortization of debt discount on the
convertible notes.
4 Other, net in 2020 is primarily related to a
$6.7 million net gain on the sale of aircraft, costs associated
with the refinancing of debt and accrual for legal matters and
professional fees. Other, net in 2019 is primarily related to a net
insurance recovery, loss on early extinguishment of debt, unique
training aircraft costs required for a customer contract and
accrual for legal matters and professional fees.
5 Interest expense, net excludes noncash
expenses primarily related to the amortization of debt discount on
convertible notes.
6 Special tax item in 2019 represented income
tax benefits from the completion of the 2015 IRS examination that
are not related to ongoing operations.
Atlas Air Worldwide Holdings, Inc.
Reconciliation to Non-GAAP Measures (in thousands, except
per share data) (Unaudited)
|
For the Three Months Ended |
|
June 30,
2020 |
|
|
June 30,
2019 |
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities |
$ |
488,543 |
|
|
$ |
55,228 |
Less: |
|
|
|
|
|
|
Capital expenditures |
|
16,804 |
|
|
|
46,170 |
Capitalized interest |
|
132 |
|
|
|
627 |
Free Cash Flow1 |
$ |
471,607 |
|
|
$ |
8,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
June 30, 2020 |
|
|
June 30, 2019 |
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities |
$ |
560,390 |
|
|
$ |
108,997 |
Less: |
|
|
|
|
|
|
Capital expenditures |
|
25,095 |
|
|
|
76,754 |
Capitalized interest |
|
325 |
|
|
|
1,090 |
Free Cash Flow1 |
$ |
534,970 |
|
|
$ |
31,153 |
1 Free Cash Flow = Net Cash from Operations
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 Six Months Ended |
|
|
Increase/ |
|
|
|
June 30,
2020 |
|
|
June 30,
2019 |
|
|
(Decrease) |
|
|
June 30,
2020 |
|
|
June 30,
2019 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block Hours |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
|
59,531 |
|
|
|
61,942 |
|
|
|
(2,411 |
) |
|
|
113,910 |
|
|
|
121,722 |
|
|
|
(7,812 |
) |
Charter |
|
|
23,984 |
|
|
|
17,661 |
|
|
|
6,323 |
|
|
|
42,250 |
|
|
|
34,321 |
|
|
|
7,929 |
|
Cargo |
|
|
20,876 |
|
|
|
12,888 |
|
|
|
7,988 |
|
|
|
34,416 |
|
|
|
24,367 |
|
|
|
10,049 |
|
Passenger |
|
|
3,108 |
|
|
|
4,773 |
|
|
|
(1,665 |
) |
|
|
7,834 |
|
|
|
9,954 |
|
|
|
(2,120 |
) |
Other |
|
|
1,451 |
|
|
|
679 |
|
|
|
772 |
|
|
|
2,053 |
|
|
|
1,299 |
|
|
|
754 |
|
Total Block Hours |
|
|
84,966 |
|
|
|
80,282 |
|
|
|
4,684 |
|
|
|
158,213 |
|
|
|
157,342 |
|
|
|
871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Per Block Hour |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
$ |
4,904 |
|
|
$ |
4,961 |
|
|
$ |
(57 |
) |
|
$ |
5,010 |
|
|
$ |
5,043 |
|
|
$ |
(33 |
) |
Charter |
|
$ |
20,745 |
|
|
$ |
17,874 |
|
|
$ |
2,871 |
|
|
$ |
19,531 |
|
|
$ |
18,088 |
|
|
$ |
1,443 |
|
Cargo |
|
$ |
21,260 |
|
|
$ |
17,473 |
|
|
$ |
3,787 |
|
|
$ |
19,781 |
|
|
$ |
17,710 |
|
|
$ |
2,071 |
|
Passenger |
|
$ |
17,285 |
|
|
$ |
18,957 |
|
|
$ |
(1,672 |
) |
|
$ |
18,431 |
|
|
$ |
19,012 |
|
|
$ |
(581 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Utilization (block hours per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI1 |
|
|
8.7 |
|
|
|
8.7 |
|
|
|
- |
|
|
|
8.2 |
|
|
|
8.7 |
|
|
|
(0.5 |
) |
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cargo |
|
|
10.7 |
|
|
|
8.4 |
|
|
|
2.3 |
|
|
|
9.3 |
|
|
|
8.2 |
|
|
|
1.1 |
|
Passenger |
|
|
3.5 |
|
|
|
5.9 |
|
|
|
(2.4 |
) |
|
|
4.4 |
|
|
|
6.2 |
|
|
|
(1.8 |
) |
All Operating Aircraft1,2 |
|
|
8.8 |
|
|
|
8.5 |
|
|
|
0.3 |
|
|
|
8.2 |
|
|
|
8.4 |
|
|
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel cost per gallon |
|
$ |
1.10 |
|
|
$ |
2.37 |
|
|
$ |
(1.27 |
) |
|
$ |
1.47 |
|
|
$ |
2.30 |
|
|
$ |
(0.83 |
) |
Fuel gallons consumed (000s) |
|
|
75,769 |
|
|
|
51,596 |
|
|
|
24,173 |
|
|
|
130,047 |
|
|
|
99,468 |
|
|
|
30,579 |
|
1 ACMI and All Operating Aircraft averages in the second quarter
and first six months of 2020 reflect the impact of increases in the
number of CMI aircraft and amount of CMI flying compared with the
same periods of 2019.
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 Six MonthsEnded |
|
|
Increase/ |
|
|
|
June 30, 2020 |
|
|
June 30, 2019 |
|
|
(Decrease) |
|
|
June 30,
2020 |
|
|
June 30, 2019 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Fleet (average aircraft equivalents
during the period) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
747-8F Cargo |
|
|
8.8 |
|
|
|
8.2 |
|
|
|
0.6 |
|
|
|
8.9 |
|
|
|
8.6 |
|
|
|
0.3 |
|
747-400 Cargo |
|
|
13.1 |
|
|
|
18.4 |
|
|
|
(5.3 |
) |
|
|
13.0 |
|
|
|
18.0 |
|
|
|
(5.0 |
) |
747-400 Dreamlifter |
|
|
1.8 |
|
|
|
3.6 |
|
|
|
(1.8 |
) |
|
|
2.7 |
|
|
|
3.6 |
|
|
|
(0.9 |
) |
777-200 Cargo |
|
|
8.1 |
|
|
|
6.4 |
|
|
|
1.7 |
|
|
|
8.1 |
|
|
|
6.2 |
|
|
|
1.9 |
|
767-300 Cargo |
|
|
23.7 |
|
|
|
25.0 |
|
|
|
(1.3 |
) |
|
|
23.8 |
|
|
|
25.3 |
|
|
|
(1.5 |
) |
767-200 Cargo |
|
|
9.0 |
|
|
|
9.0 |
|
|
|
- |
|
|
|
9.0 |
|
|
|
9.0 |
|
|
|
- |
|
737-800 Cargo |
|
|
5.0 |
|
|
|
1.8 |
|
|
|
3.2 |
|
|
|
5.0 |
|
|
|
0.9 |
|
|
|
4.1 |
|
737-400 Cargo |
|
|
4.6 |
|
|
|
5.0 |
|
|
|
(0.4 |
) |
|
|
4.8 |
|
|
|
5.0 |
|
|
|
(0.2 |
) |
767-200 Passenger |
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
Total |
|
|
75.1 |
|
|
|
78.4 |
|
|
|
(3.3 |
) |
|
|
76.3 |
|
|
|
77.6 |
|
|
|
(1.3 |
) |
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
747-8F Cargo |
|
|
1.1 |
|
|
|
1.6 |
|
|
|
(0.5 |
) |
|
|
1.1 |
|
|
|
1.3 |
|
|
|
(0.2 |
) |
747-400 Cargo |
|
|
19.4 |
|
|
|
15.2 |
|
|
|
4.2 |
|
|
|
18.8 |
|
|
|
15.1 |
|
|
|
3.7 |
|
777-200 Cargo |
|
|
0.6 |
|
|
|
- |
|
|
|
0.6 |
|
|
|
0.3 |
|
|
|
- |
|
|
|
0.3 |
|
767-300 Cargo |
|
|
0.3 |
|
|
|
- |
|
|
|
0.3 |
|
|
|
0.2 |
|
|
|
- |
|
|
|
0.2 |
|
747-400 Passenger |
|
|
5.0 |
|
|
|
4.0 |
|
|
|
1.0 |
|
|
|
5.0 |
|
|
|
4.0 |
|
|
|
1.0 |
|
767-300 Passenger |
|
|
4.8 |
|
|
|
4.9 |
|
|
|
(0.1 |
) |
|
|
4.8 |
|
|
|
4.9 |
|
|
|
(0.1 |
) |
Total |
|
|
31.2 |
|
|
|
25.7 |
|
|
|
5.5 |
|
|
|
30.2 |
|
|
|
25.3 |
|
|
|
4.9 |
|
Dry Leasing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
777-200 Cargo |
|
|
7.0 |
|
|
|
7.0 |
|
|
|
- |
|
|
|
7.0 |
|
|
|
7.5 |
|
|
|
(0.5 |
) |
767-300 Cargo |
|
|
21.0 |
|
|
|
21.0 |
|
|
|
- |
|
|
|
21.0 |
|
|
|
21.3 |
|
|
|
(0.3 |
) |
757-200 Cargo |
|
|
- |
|
|
|
1.0 |
|
|
|
(1.0 |
) |
|
|
0.2 |
|
|
|
1.0 |
|
|
|
(0.8 |
) |
737-300 Cargo |
|
|
1.0 |
|
|
|
1.0 |
|
|
|
|
- |
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
737-800 Passenger |
|
|
- |
|
|
|
1.0 |
|
|
|
(1.0 |
) |
|
|
0.3 |
|
|
|
1.0 |
|
|
|
(0.7 |
) |
Total |
|
|
29.0 |
|
|
|
31.0 |
|
|
|
(2.0 |
) |
|
|
29.5 |
|
|
|
31.8 |
|
|
|
(2.3 |
) |
Less: Aircraft Dry Leased to CMI customers |
|
|
(21.0 |
) |
|
|
(23.0 |
) |
|
|
(2.0 |
) |
|
|
(21.0 |
) |
|
|
(23.3 |
) |
|
|
(2.3 |
) |
Total Operating Average Aircraft Equivalents |
|
|
114.3 |
|
|
|
112.1 |
|
|
|
2.2 |
|
|
|
115.0 |
|
|
|
111.4 |
|
|
|
3.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Out-of-Service2 |
|
|
1.7 |
|
|
|
1.0 |
|
|
|
0.7 |
|
|
|
3.5 |
|
|
|
0.5 |
|
|
|
3.0 |
|
1 ACMI average fleet excludes spare aircraft provided by CMI
customers.
2 Out-of-service includes aircraft that are either temporarily
parked or held for sale.
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