Atlas Air Worldwide Holdings, Inc. (Nasdaq:AAWW), a leading global provider of outsourced aircraft and aviation operating services, today announced adjusted net income attributable to common stockholders of $11.3 million, or $0.45 per diluted share, for the three months ended March 31, 2014, compared with $5.9 million, or $0.22 per diluted share, for the three months ended March 31, 2013.
On a reported basis, net income attributable to common stockholders in the first quarter of 2014 totaled $7.9 million, or $0.32 per diluted share, compared with $20.1 million, or $0.76 per diluted share, in the year-ago quarter.
Adjusted earnings in the first quarter of 2014 exclude a special charge of $3.4 million after tax, or $0.13 per diluted share, mainly related to the company’s U.K. affiliate, Global Supply Systems Limited. Adjusted earnings in the first quarter of 2013 exclude an income tax benefit of $14.2 million, or $0.54 per diluted share, related to the tax treatment of extraterritorial income.
“2014 is off to a good start, led by the initiatives we’ve undertaken to diversify our business mix, expand our aircraft and service offerings, develop new customers and position Atlas to take advantage of market opportunities,” said William J. Flynn, President and Chief Executive Officer.
“Within our ACMI segment, results benefited from an increase in the number of new 747-8 freighters in operation as well as an increase in flying for our CMI customers. In Dry Leasing, the investments we’ve made since early 2013 in attractive, modern 777 freighters on long-term leases with strong customers drove a significant increase in contribution from sources with highly predictable revenue and earnings streams.
“In addition, the expansion of our 767 aircraft service solutions and our growth into passenger charter operations supported the improvement in our results despite a seasonally soft contribution in Commercial Charter and the continued reduction in AMC Charter cargo volumes.
“Reflecting our global market leadership in outsourced aircraft assets and services, we have developed several new strategic customer relationships since the first quarter of 2013 that have enhanced the resilience of our business model.
“In ACMI, these include Astral Aviation, BST Logistics and Chapman Freeborn. We’ve also expanded with Etihad Airways, introduced new 767 cargo CMI service for DHL Express, and added VIP 767 passenger CMI service for MLW Air. And in Dry Leasing, we now provide 777Fs to Aerologic, Emirates Airlines and TNT Transport International.”
Separately, the company today announced the placement of two 747-8 freighters in ACMI service for DHL Express. The state-of-the-art aircraft will provide additional revenue cargo volume for DHL’s transpacific network growth. They replace two 747-400 freighters currently in service for DHL that will enter immediate revenue service for Atlas.
First-Quarter Results
Increased revenues and profitability in our ACMI business during the first quarter were driven by our new 747-8Fs, with an average of 1.7 additional -8F aircraft in service compared with the first quarter of 2013; higher rates per block hour for our -8Fs; and the continued ramp up and expansion of our asset-light CMI service. These results were partly offset by the redeployment of 747-400 aircraft into Commercial Charter and an increase in maintenance expense.
In Dry Leasing, revenue and profitability grew following the acquisition of six 777F aircraft since March 2013. Each of our aircraft was acquired with a long-term customer lease already in place.
In AMC Charter, lower cargo demand led to a decline in segment revenues and contribution. Segment results in Commercial Charter reflected the seasonal nature of this business, the deployment of additional aircraft into the segment and an increase in flying to more expensive locations, partially offset by an increase in block-hour volumes.
Reported earnings for the first quarter of 2014 included an effective income tax rate of 38.7%, reflecting losses associated with Global Supply Systems Limited for which we have recognized a limited tax benefit. Reported earnings for the first quarter of 2013 reflected an effective income tax rate benefit of 97.4%, driven by a federal income tax benefit related to the treatment of extraterritorial income from the offshore leasing of certain of our aircraft.
Cash and Short-Term Investments
At March 31, 2014, our cash, cash equivalents, short-term investments and restricted cash totaled $301.8 million, compared with $339.2 million at December 31, 2013.
The change in position reflected cash provided by operating and financing activities offset by cash used for investing activities.
Net cash used for investing activities during the first quarter of 2014 primarily related to the purchase of three 777F aircraft for our Dry Leasing business.
Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the acquisitions of these aircraft. Those proceeds were partially offset by payments on debt obligations and debt issuance costs.
Outlook
We are encouraged by our first-quarter performance and the positive direction of market trends so far in 2014, but we are maintaining our earnings outlook for the full year.
Airfreight volumes are improving, and recent forecasts suggest that airfreight demand will grow by a few percentage points in 2014 – the first real growth after three essentially flat years. Forecast airfreight yields continue to lag behind, however.
With still limited visibility into second-half airfreight market demand and yields, we continue to expect results in 2014 to approximate 2013, excluding an expected decline in our AMC Charter operations as we have previously discussed.
On a per share basis, earnings in the second quarter of this year should be similar to or slightly higher than our adjusted first-quarter earnings. As the majority of our earnings are typically generated in the second half of the year, we expect to update our expectations as the year progresses.
For the full year, we expect total block hours to be a few percentage points lower than 2013 block hours, with more than 70% in ACMI, less than 10% in AMC Charter, and the balance in Commercial Charter. Our Dry Leasing segment should show dramatic growth, with a contribution run rate in subsequent quarters that should be similar to the first quarter of 2014. Aircraft maintenance expense in 2014 should total approximately $175 to $180 million, and depreciation should be approximately $115 to $120 million. In addition, we anticipate an effective income tax rate of approximately 30%.
We remain confident in the resilience of our business model and our ability to leverage the scale and efficiencies in our operations. The business initiatives we have undertaken and the investments we have made have transformed the company to deliver meaningful earnings in any environment.
Should 2014 be the inflection point when growth returns to commercial airfreight and yields improve, our business initiatives and the investments we have made have positioned Atlas to be one of the prime beneficiaries.
Conference Call
Management will host a conference call to discuss Atlas Air Worldwide’s first-quarter 2014 financial and operating results at 11:00 a.m. Eastern Time on Thursday, May 1, 2014.
Interested parties are invited to listen to the call live over the Internet at www.atlasair.com (click on “Investor Information”, click on “Presentations” and on the link to the first-quarter call) or at the following Web address:
http://www.media-server.com/m/p/uf73d4zh
For those unable to listen to the live call, a replay will be available on the above Web sites following the call. A replay will also be available through May 8 by dialing (855) 859-2056 (domestic) and (404) 537-3406 (international) and using Access Code 30376008#.
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 EBITDAR, as adjusted; EBITDA, as adjusted; Direct Contribution; Adjusted Net Income Attributable to Common Stockholders; Adjusted Diluted EPS; and Free Cash Flow, which exclude certain items. 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 measures of performance prepared in accordance with U.S. GAAP.
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 provide meaningful information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance.
About Atlas Air Worldwide:
Atlas Air Worldwide is the parent company of Atlas Air, Inc. (Atlas) and Titan Aviation Leasing (Titan), and is the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar). Through Atlas and Polar, Atlas Air Worldwide operates the world’s largest fleet of Boeing 747 freighter aircraft.
Atlas, Titan and Polar offer a range of outsourced aircraft and aviation operating services that include ACMI service – in which customers receive an aircraft, crew, maintenance and insurance on a long-term basis; CMI service, for customers that provide their own aircraft; express network and scheduled air cargo service; military cargo and passenger charters; commercial cargo and passenger charters; and dry leasing of aircraft and engines.
Atlas Air Worldwide’s press releases, SEC filings and other information can be accessed through the Company’s home page, www.atlasair.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. Such forward-looking statements 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: 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 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; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack; labor costs and relations; financing costs; the cost and availability of war risk insurance; our ability to maintain adequate internal controls over financial reporting; 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 2014 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.
Atlas Air Worldwide Holdings, Inc. | ||||||||
Consolidated Statements of Operations | ||||||||
(in thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
For the Three Months Ended | ||||||||
March 31, 2014 | March 31, 2013 | |||||||
Operating Revenue | ||||||||
ACMI | $ | 198,141 | $ | 181,170 | ||||
AMC Charter | 62,874 | 98,037 | ||||||
Commercial Charter | 114,499 | 91,100 | ||||||
Dry Leasing | 24,676 | 3,747 | ||||||
Other | 3,173 | 3,282 | ||||||
Total Operating Revenue | $ | 403,363 | $ | 377,336 | ||||
Operating Expenses | ||||||||
Aircraft fuel | 81,744 | 93,358 | ||||||
Salaries, wages and benefits | 72,855 | 72,531 | ||||||
Maintenance, materials and repairs | 59,046 | 58,369 | ||||||
Aircraft rent | 35,410 | 38,494 | ||||||
Depreciation and amortization | 28,155 | 17,808 | ||||||
Navigation fees, landing fees and other rent | 27,126 | 15,626 | ||||||
Passenger and ground handling services | 19,371 | 16,772 | ||||||
Travel | 17,282 | 15,179 | ||||||
Special charge | 8,029 | - | ||||||
Gain on disposal of aircraft | - | (23 | ) | |||||
Other | 26,215 | 26,625 | ||||||
Total Operating Expenses | 375,233 | 354,739 | ||||||
Operating Income | 28,130 | 22,597 | ||||||
Non-operating Expenses / (Income) | ||||||||
Interest income | (4,727 | ) | (5,176 | ) | ||||
Interest expense | 26,452 | 18,440 | ||||||
Capitalized interest | (312 | ) | (1,402 | ) | ||||
Other (income) expense, net | 152 | 552 | ||||||
Total Non-operating Expense | 21,565 | 12,414 | ||||||
Income before income taxes | 6,565 | 10,183 | ||||||
Income tax expense (benefit) | 2,539 | (9,920 | ) | |||||
Net Income | 4,026 | 20,103 | ||||||
Less: Net income (loss) attributable to noncontrolling interests | (3,918 | ) | 25 | |||||
Net Income Attributable to Common Stockholders | $ | 7,944 | $ | 20,078 | ||||
Earnings per share: | ||||||||
Basic | $ | 0.32 | $ | 0.76 | ||||
Diluted | $ | 0.32 | $ | 0.76 | ||||
Weighted average shares: | ||||||||
Basic | 25,096 | 26,330 | ||||||
Diluted | 25,151 | 26,439 | ||||||
Atlas Air Worldwide Holdings, Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
(in thousands, except share data) | ||||||||
(Unaudited) | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 279,652 | $ | 321,816 | ||||
Short-term investments | 9,572 | 10,904 | ||||||
Restricted cash | 12,537 | 6,491 | ||||||
Accounts receivable, net of allowance of $1,327 and $1,402, respectively | 147,299 | 132,159 | ||||||
Prepaid maintenance | 25,698 | 31,620 | ||||||
Deferred taxes | 28,600 | 54,001 | ||||||
Prepaid expenses and other current assets | 36,317 | 36,962 | ||||||
Total current assets | 539,675 | 593,953 | ||||||
Property and Equipment | ||||||||
Flight equipment | 3,452,605 | 2,969,379 | ||||||
Ground equipment | 48,198 | 46,951 | ||||||
Less: accumulated depreciation | (280,965 | ) | (256,685 | ) | ||||
Purchase deposits for flight equipment | 43,577 | 69,320 | ||||||
Property and equipment, net | 3,263,415 | 2,828,965 | ||||||
Other Assets | ||||||||
Long-term investments and accrued interest | 130,430 | 130,267 | ||||||
Deposits and other assets | 133,326 | 131,216 | ||||||
Intangible assets, net | 74,251 | 33,858 | ||||||
Total Assets | $ | 4,141,097 | $ | 3,718,259 | ||||
Liabilities and Equity | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 49,724 | $ | 65,367 | ||||
Accrued liabilities | 231,412 | 194,292 | ||||||
Current portion of long-term debt1,2 | 195,092 | 157,486 | ||||||
Total current liabilities | 476,228 | 417,145 | ||||||
Other Liabilities | ||||||||
Long-term debt1,2 | 1,923,694 | 1,539,139 | ||||||
Deferred taxes | 349,448 | 371,655 | ||||||
Other liabilities | 66,720 | 68,195 | ||||||
Total other liabilities | 2,339,862 | 1,978,989 | ||||||
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; 50,000,000 shares authorized; 28,395,768 and 28,200,213 shares issued, 25,159,601 and 25,038,629, shares outstanding (net of treasury stock), as of March 31, 2014 and December 31, 2013, respectively | 284 | 282 | ||||||
Additional paid-in-capital | 562,404 | 561,481 | ||||||
Treasury stock, at cost: 3,236,167 and 3,161,584 shares, respectively | (128,246 | ) | (125,826 | ) | ||||
Accumulated other comprehensive loss | (10,407 | ) | (10,677 | ) | ||||
Retained earnings | 900,457 | 892,513 | ||||||
Total stockholders’ equity | 1,324,492 | 1,317,773 | ||||||
Noncontrolling interest | 515 | 4,352 | ||||||
Total equity | 1,325,007 | 1,322,125 | ||||||
Total Liabilities and Equity | $ | 4,141,097 | $ | 3,718,259 |
1 Balance sheet debt at March 31, 2014 totaled $2,118.8 million, including the impact of $40.1 million of unamortized discount.
2 The face value of our debt at March 31, 2014 totaled $2,158.9 million, compared with $1,738.0 million on December 31, 2013.
Atlas Air Worldwide Holdings, Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
(Unaudited) | ||||||||
For the Three Months Ended | ||||||||
March 31, 2014 | March 31, 2013 | |||||||
Operating Activities: | ||||||||
Net Income Attributable to Common Stockholders | $ | 7,944 | $ | 20,078 | ||||
Net income (loss) attributable to noncontrolling interests | (3,918 | ) | 25 | |||||
Net Income | 4,026 | 20,103 | ||||||
Adjustments to reconcile Net Income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 32,401 | 21,063 | ||||||
Accretion of debt securities discount | (2,073 | ) | (2,327 | ) | ||||
Provision for allowance for doubtful accounts | 83 | (67 | ) | |||||
Special charge | 8,029 | ― | ||||||
Gain on disposal of aircraft | ― | (23 | ) | |||||
Deferred taxes | 2,554 | (9,848 | ) | |||||
Stock-based compensation expense | 1,907 | 3,644 | ||||||
Changes in: | ||||||||
Accounts receivable | (14,585 | ) | (6,584 | ) | ||||
Prepaid expenses and other current assets | 7,050 | 7,227 | ||||||
Deposits and other assets | 6,724 | 815 | ||||||
Accounts payable and accrued liabilities | (672 | ) | 20,386 | |||||
Net cash provided by operating activities | 45,444 | 54,389 | ||||||
Investing Activities: | ||||||||
Capital expenditures | (4,095 | ) | (10,548 | ) | ||||
Purchase deposits and delivery payments for flight equipment | (478,739 | ) | (235,492 | ) | ||||
Changes in restricted cash | (6,046 | ) | ― | |||||
Proceeds from short-term investments | 783 | 2,426 | ||||||
Proceeds from insurance | ― | 9,109 | ||||||
Proceeds from disposal of aircraft | ― | 400 | ||||||
Net cash used for investing activities | (488,097 | ) | (234,105 | ) | ||||
Financing Activities: | ||||||||
Proceeds from debt issuance | 572,552 | 224,848 | ||||||
Prepayment of accelerated share repurchase | ― | (30,000 | ) | |||||
Purchase of treasury stock | (2,420 | ) | (24,233 | ) | ||||
Excess tax benefit from stock-based compensation expense | (982 | ) | 581 | |||||
Payment of debt issuance costs | (16,974 | ) | (357 | ) | ||||
Payments of debt | (151,687 | ) | (70,575 | ) | ||||
Net cash provided by financing activities | 400,489 | 100,264 | ||||||
Net decrease in cash and cash equivalents | (42,164 | ) | (79,452 | ) | ||||
Cash and cash equivalents at the beginning of period | 321,816 | 409,763 | ||||||
Cash and cash equivalents at the end of period | $ | 279,652 | $ | 330,311 | ||||
Non-cash Investing and Financing Activities: | ||||||||
Acquisition of flight and ground equipment included in accounts payable and accrued liabilities | $ | 41,581 | $ | ― | ||||
Atlas Air Worldwide Holdings, Inc. | ||||||||
Direct Contribution | ||||||||
(in thousands) | ||||||||
(Unaudited) | ||||||||
For the Three Months Ended | ||||||||
March 31, 2014 | March 31, 2013 | |||||||
Operating Revenue: | ||||||||
ACMI | $ | 198,141 | $ | 181,170 | ||||
AMC Charter | 62,874 | 98,037 | ||||||
Commercial Charter | 114,499 | 91,100 | ||||||
Dry Leasing | 24,676 | 3,747 | ||||||
Other | 3,173 | 3,282 | ||||||
Total Operating Revenue | $ | 403,363 | $ | 377,336 | ||||
Direct Contribution: | ||||||||
ACMI | $ | 45,198 | $ | 39,944 | ||||
AMC Charter | 9,468 | 12,737 | ||||||
Commercial Charter | (12,245 | ) | (8,685 | ) | ||||
Dry Leasing | 8,171 | 1,176 | ||||||
Total Direct Contribution for Reportable Segments | 50,592 | 45,172 | ||||||
Add back (subtract): | ||||||||
Unallocated income and expenses | (35,998 | ) | (35,012 | ) | ||||
Special charge | (8,029 | ) | ― | |||||
Gain on sale of aircraft | ― | 23 | ||||||
Income before Income Taxes | 6,565 | 10,183 | ||||||
Add back (subtract): | ||||||||
Interest income | (4,727 | ) | (5,176 | ) | ||||
Interest expense | 26,452 | 18,440 | ||||||
Capitalized interest | (312 | ) | (1,402 | ) | ||||
Other (income) expense, net | 152 | 552 | ||||||
Operating Income | $ | 28,130 | $ | 22,597 | ||||
Atlas Air Worldwide uses an economic performance metric, Direct Contribution, to show the profitability of each of its segments after allocation of direct ownership costs. Atlas Air Worldwide currently has the following reportable segments: ACMI, AMC Charter, Commercial Charter, and Dry Leasing. Each segment has different operating and economic characteristics, which are separately reviewed by senior management.
Direct Contribution consists of income (loss) before taxes, excluding special charges, nonrecurring items, gains on the sale of aircraft, and unallocated fixed costs.
Direct costs include crew costs, maintenance costs, fuel, ground operations, sales costs, aircraft rent, interest expense related to aircraft debt and aircraft depreciation.
Unallocated income and expenses include corporate overhead, non-aircraft depreciation, interest income, foreign exchange gains and losses, other revenue and other non-operating costs, including one-time items.
Atlas Air Worldwide Holdings, Inc. | |||||||||||
Reconciliation to Non-GAAP Measures | |||||||||||
(in thousands, except per share data) | |||||||||||
(Unaudited) | |||||||||||
For the Three Months Ended | |||||||||||
March 31, 2014 | March 31, 2013 | Percent Change | |||||||||
Net Income Attributable to Common Stockholders | $ | 7,944 | $ | 20,078 | (60.4 | %) | |||||
After-tax impact from: | |||||||||||
ETI tax benefit | - | (14,160 | ) | ||||||||
Special charge1 | 3,382 | - | |||||||||
Loss (gain) on disposal of aircraft | - | (15 | ) | ||||||||
Adjusted Net Income Attributable to Common Stockholders | $ | 11,326 | $ | 5,903 | 91.9 | % | |||||
Diluted EPS | $ | 0.32 | $ | 0.76 | (57.9 | %) | |||||
After-tax impact from: | |||||||||||
ETI tax benefit | - | (0.54 | ) | ||||||||
Special charge1 | 0.13 | - | |||||||||
Loss (gain) on disposal of aircraft | - | (0.00 | ) | ||||||||
Adjusted Diluted EPS | $ | 0.45 | $ | 0.22 | 104.5 | % |
1 Included in Special charge in 2014 were GSS employee termination benefits, a GSS loan reserve and an adjustment to lease termination costs for two 747-400BCFs.
Atlas Air Worldwide Holdings, Inc. | |||||||||||
Reconciliation to Non-GAAP Measures | |||||||||||
(in thousands, except per share data) | |||||||||||
(Unaudited) | |||||||||||
For the Three Months Ended | |||||||||||
March 31, 2014 | March 31, 2013 | ||||||||||
Net Cash Provided by Operating Activities | $ | 45,444 | $ | 54,389 | |||||||
Less: | |||||||||||
Capital expenditures | 4,095 | 10,548 | |||||||||
Capitalized interest | 312 | 1,402 | |||||||||
Free Cash Flow1 | $ | 41,037 | $ | 42,439 |
1 Free Cash Flow = Cash Flows from Operations minus Base Capital Expenditures and Capitalized Interest.
Base Capital Expenditures excludes purchases of aircraft.
Atlas Air Worldwide Holdings, Inc. | ||||||||
Reconciliation to Non-GAAP Measures | ||||||||
(in thousands) | ||||||||
(Unaudited) | ||||||||
For the Three Months Ended | ||||||||
March 31, 2014 | March 31, 2013 | |||||||
Income before income taxes | $ | 6,565 | $ | 10,183 | ||||
Special charge1 | 8,029 | - | ||||||
Gain on disposal of aircraft | - | (23 | ) | |||||
Adjusted pretax income | 14,594 | 10,160 | ||||||
Interest expense, net | 21,413 | 11,862 | ||||||
Other non-operating expenses | 152 | 552 | ||||||
Adjusted operating income | 36,159 | 22,574 | ||||||
Depreciation and amortization | 28,155 | 17,808 | ||||||
EBITDA, as adjusted2 | 64,314 | 40,382 | ||||||
Aircraft rent | 35,410 | 38,494 | ||||||
EBITDAR, as adjusted3 | $ | 99,724 | $ | 78,876 |
1 Included on Special charge in 2014 were GSS employee termination benefits, a GSS loan reserve and an adjustment to lease termination costs for two 747-400BCFs.
2 Adjusted EBITDA: Earnings before interest, taxes, depreciation, amortization, special charge, and gains on disposal of aircraft, as applicable.
3 Adjusted EBITDAR: Earnings before interest, taxes, depreciation, amortization, aircraft rent expense, special charge, and gains on disposal of aircraft, as applicable.
Atlas Air Worldwide Holdings, Inc. | ||||||||||||
Operating Statistics and Traffic Results | ||||||||||||
(Unaudited) | ||||||||||||
For the Three Months Ended | ||||||||||||
March 31, | Increase/ | |||||||||||
2014 | 2013 | Decrease | ||||||||||
Block Hours | ||||||||||||
ACMI | 28,008 | 28,089 | (81 | ) | ||||||||
AMC Charter | ||||||||||||
Cargo | 434 | 1,874 | (1,440 | ) | ||||||||
Passenger | 2,534 | 2,561 | (27 | ) | ||||||||
Commercial Charter | 5,661 | 4,719 | 942 | |||||||||
Nonrevenue | 236 | 190 | 46 | |||||||||
Total Block Hours | 36,873 | 37,433 | (560 | ) | ||||||||
Revenue Per Block Hour | ||||||||||||
ACMI | $ | 7,074 | $ | 6,450 | $ | 624 | ||||||
AMC Charter | 21,184 | 22,105 | (921 | ) | ||||||||
Cargo | 21,440 | 23,334 | (1,894 | ) | ||||||||
Passenger | 21,140 | 21,206 | (66 | ) | ||||||||
Commercial Charter | 20,226 | 19,305 | 921 | |||||||||
Average Utilization (block hours per day) | ||||||||||||
ACMI1 | 9.3 | 10.5 | (1.2 | ) | ||||||||
AMC Charter | ||||||||||||
Cargo | 8.0 | 6.9 | 1.1 | |||||||||
Passenger | 6.1 | 7.1 | (1.0 | ) | ||||||||
Commercial Charter | 7.6 | 7.1 | 0.5 | |||||||||
All Operating Aircraft1,2 | 8.8 | 9.4 | (0.6 | ) | ||||||||
Fuel | ||||||||||||
AMC | ||||||||||||
Average fuel cost per gallon | $ | 3.33 | $ | 3.63 | $ | (0.30 | ) | |||||
Fuel gallons consumed (000s) | 6,833 | 11,418 | (4,585 | ) | ||||||||
Commercial Charter | ||||||||||||
Average fuel cost per gallon | $ | 3.19 | $ | 3.32 | $ | (0.13 | ) | |||||
Fuel gallons consumed (000s) | 18,496 | 15,627 | 2,869 |
1 ACMI and All Operating Aircraft averages in the first quarter of 2014 reflect the impact of increases in the number of CMI aircraft and amount of CMI flying compared with the first quarter of 2013.
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 | |||||||||
March 31, | Increase/ | ||||||||
2014 | 2013 | Decrease | |||||||
Segment Operating Fleet (average aircraft equivalents during the period) | |||||||||
ACMI1 | |||||||||
747-8 Cargo | 8.7 | 7.0 | 1.7 | ||||||
747-400 Cargo | 12.5 | 13.1 | (0.6 | ) | |||||
747-400 LCF | 3.1 | 1.6 | 1.5 | ||||||
767-300 Cargo | 2.0 | 1.4 | 0.6 | ||||||
767-200 Cargo | 5.0 | 5.0 | - | ||||||
747-400 Passenger | 1.0 | 1.0 | - | ||||||
767-200 Passenger | 1.0 | - | 1.0 | ||||||
767-300 Passenger | - | 0.7 | (0.7 | ) | |||||
Total | 33.3 | 29.8 | 3.5 | ||||||
AMC Charter | |||||||||
747-400 Cargo | 0.6 | 3.0 | (2.4 | ) | |||||
747-400 Passenger | 1.8 | 1.9 | (0.1 | ) | |||||
767-300 Passenger | 2.8 | 2.1 | 0.7 | ||||||
Total | 5.2 | 7.0 | (1.8 | ) | |||||
Commercial Charter | |||||||||
747-8F Cargo | 0.2 | - | 0.2 | ||||||
747-400 Cargo | 7.7 | 7.2 | 0.5 | ||||||
747-400 Passenger | 0.2 | 0.1 | 0.1 | ||||||
767-300 Passenger | 0.2 | 0.1 | 0.1 | ||||||
Total | 8.3 | 7.4 | 0.9 | ||||||
Dry Leasing | |||||||||
777-200 Cargo | 5.8 | 0.3 | 5.5 | ||||||
757-200 Cargo | 1.0 | 1.0 | - | ||||||
737-300 Cargo | 1.0 | 1.0 | - | ||||||
737-800 Passenger | 2.0 | 2.0 | - | ||||||
Total | 9.8 | 4.3 | 5.5 | ||||||
Total Operating Aircraft | 56.6 | 48.5 | 8.1 | ||||||
Out of Service2 | 1.0 | 0.5 | 0.5 |
1 ACMI average fleet excludes spare aircraft provided by CMI customers.
2 Out-of-service aircraft were temporarily parked during the period and are completely unencumbered. Permanently parked aircraft, all of which are also completely unencumbered, are not included in the operating statistics above.
Contacts:
Investors
Dan Loh,
914-701-8200
or
Media
Bonnie Rodney, 914-701-8580