Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), a leading global provider of outsourced aircraft and aviation operating solutions, today announced second-quarter 2013 diluted earnings per share in line with expectations presented at the company's investor-analyst day on May 30 and reaffirmed its full-year adjusted diluted earnings per share outlook of approximately $4.80.
For the three months ended June 30, 2013, adjusted net income attributable to common stockholders totaled $20.4 million, or $0.79 per diluted share, compared with $31.2 million, or $1.18 per diluted share, for the three months ended June 30, 2012.
On a reported basis, second-quarter 2013 net income attributable to common stockholders totaled $20.1 million, or $0.78 per diluted share, compared with $30.9 million, or $1.16 per diluted share, in the second quarter of 2012.
Free cash flow increased to $64.6 million in the second quarter of 2013 from $54.2 million in the second quarter of 2012.
"Earnings in the second quarter of 2013 were driven by the strength of our ACMI operations, especially our new 747-8 freighters," said William J. Flynn, President and Chief Executive Officer.
"Our diversified business mix, with our expanding 767 service, growing CMI operations, and ongoing continuous improvement initiatives, enabled us to perform well in a quarter that was challenged by lower AMC Charter demand and softer AMC and Commercial Charter rates.
"Reflecting our commitment to enhance shareholder value, we acquired an additional 2.3% of our outstanding common stock through our share repurchase program from May through July. Combined with the shares that we bought through the end of April, we have repurchased approximately 5.7% of our shares so far this year.
"In addition, we are executing a strategic plan that leverages our core competencies. In July, we acquired our second and third 777 freighters for our Dry Leasing business. Each of our 777s was acquired with a long-term customer lease in place with a leading operator in the airfreight industry. These investments enhance our position in an attractive aircraft type, and they generate predictable, long-term revenue and earnings streams."
Second-Quarter Results
Revenue, volume and profitability growth in our core ACMI business during the second quarter were driven by our new 747-8Fs, with five additional -8F aircraft in service compared with the second quarter of 2012, as well as the continued ramp up of CMI flying for Boeing and DHL Express.
Improved ACMI segment earnings during the period benefited from higher rates per block hour and lower maintenance expense for our 747-8Fs, partially offset by the redeployment of 747-400 aircraft to other business segments.
In AMC Charter, a reduction in cargo and passenger block hours, lower average cargo and passenger revenue per block hour, and a reduction in the number of one-way AMC missions led to a decline in segment contribution. Lower average passenger revenue per block hour during the period stemmed from a higher proportion of passenger flying on smaller-gauge 767 aircraft, which we added to supplement our wide-body 747-400 passenger service and enhance our share of military passenger business.
Segment results in Commercial Charter primarily related to a reduction in yields driven by soft second-quarter global charter-market conditions.
Results in the second quarter were also affected by a reduction in capitalized interest on 747-8F aircraft that entered service.
Income Taxes
Adjusted and reported earnings for the second quarter of 2013 included an effective income tax rate of 32.3%, reflecting the ongoing beneficial impact of lower taxes for certain foreign subsidiaries in our Dry Leasing business.
Half-Year Results
For the six months ended June 30, 2013, adjusted net income attributable to common stockholders totaled $26.3 million, or $1.01 per diluted share, compared with $44.9 million, or $1.69 per diluted share, for the six months ended June 30, 2012.
On a reported basis, first-half 2013 net income attributable to common stockholders totaled $40.1 million, or $1.54 per diluted share, compared with $43.7 million, or $1.65 per diluted share, in the first half of 2012.
Free cash flow in the first six months of 2013 increased to $107.0 million from $55.2 million in the first half of 2012.
Cash, Cash Equivalents and Short-Term Investments
At June 30, 2013, our cash, cash equivalents and short-term investments totaled $367.5 million, compared with $419.9 million at December 31, 2012.
The change in cash, cash equivalents and short-term investments reflected cash provided by operating and financing activities offset by cash used for investing activities.
Net cash used for investing activities in the first six months of 2013 primarily related to the purchase of two 747-8F aircraft as well as a 777-200LRF 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. These proceeds were partially offset by payments on debt obligations and net payments under accelerated share repurchase ("ASR") programs.
Share Repurchases
In mid-May, we entered into an ASR with a financial institution for the repurchase of our common stock for an aggregate purchase price of a minimum of $35.0 million up to a maximum of $44.0 million. As of June 30, 2013, we received delivery of an initial 615,791 shares pursuant to the program. This ASR is expected to conclude no later than mid-October.
Through the first six months of 2013, we repurchased a total of 1,519,092 shares, or 5.7%, of our outstanding common stock.
Future repurchases may be made at our discretion, and the actual timing, form and amount will depend on company and market conditions.
Outlook
Looking to full-year 2013, we expect to generate significant earnings and cash flow led by our ACMI business, improving Commercial Charter contribution and productivity improvements and operating efficiencies generated through our continuous improvement initiatives.
We expect market growth during 2013 to be seasonal and second-half weighted. We anticipate a strong peak season in 2013 driven by demand for new consumer electronics, especially in the gaming sector.
Based on our outlook for peak season and in line with our first-half performance, we continue to anticipate a sequential increase in our quarterly earnings throughout the year, with just under 80% of full-year adjusted EPS of approximately $4.80 occurring in the second half.
Full-year 2013 EPS guidance includes actual and expected repurchases of our outstanding stock during the year.
Similar to the first and second quarters, adjusted full-year earnings in 2013 will reflect strong growth in the company's ACMI business, driven by an increase in the number of 747-8F aircraft in ACMI service compared with 2012.
Block-hour volumes in 2013 are now expected to total approximately 170,000 hours, with ACMI segment flying representing approximately 74% of expected 2013 block hours, Commercial Charter about 15%, and AMC Charter about 11%. Passenger flying should account for more than 11,000 AMC Charter block hours in 2013, with cargo flying totaling more than 7,000 hours.
In addition, we now anticipate that maintenance expense will total approximately $162 million in 2013, about 63% of which was incurred in the first half of the year.
Mr. Flynn concluded: "We have performed well in an environment of continuing global uncertainty. We are well-positioned to serve our customers and the airfreight markets. We are ready to capitalize on market improvements. And we are executing a strategic plan that leverages our core competencies, provides a basis for returning capital to our investors through share repurchases, and will enable us to grow over the long term."
Conference Call
Management will host a conference call to discuss Atlas Air Worldwide's second-quarter financial and operating results at 11:00 a.m. Eastern Time on Thursday, August 1, 2013.
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 second-quarter call) or at the following Web address:
http://www.media-server.com/m/p/jqqnzrhr
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 August 8 by dialing (855) 859-2056 (domestic) and (404) 537-3406 (international) and using Access Code 13663972#.
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 solutions 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 2013 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 | For the Six Months Ended | |||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||
Operating Revenue | ||||||||||||||||
ACMI | $ | 181,957 | $ | 160,421 | $ | 363,127 | $ | 315,124 | ||||||||
AMC Charter | 94,135 | 138,014 | 192,172 | 259,308 | ||||||||||||
Commercial Charter | 117,783 | 120,827 | 208,883 | 197,774 | ||||||||||||
Dry Leasing | 6,223 | 2,862 | 9,970 | 5,807 | ||||||||||||
Other | 3,475 | 2,581 | 6,757 | 5,996 | ||||||||||||
Total Operating Revenue | $ | 403,573 | $ | 424,705 | $ | 780,909 | $ | 784,009 | ||||||||
Operating Expenses | ||||||||||||||||
Aircraft fuel | 102,743 | 117,571 | 196,101 | 212,334 | ||||||||||||
Salaries, wages and benefits | 72,518 | 73,378 | 145,049 | 144,254 | ||||||||||||
Maintenance, materials and repairs | 43,477 | 43,371 | 101,846 | 96,351 | ||||||||||||
Aircraft rent | 42,247 | 42,758 | 82,255 | 82,176 | ||||||||||||
Depreciation and amortization | 20,371 | 13,877 | 38,179 | 28,180 | ||||||||||||
Passenger and ground handling services | 17,300 | 18,618 | 34,072 | 31,389 | ||||||||||||
Navigation fees, landing fees and other rent | 16,351 | 15,882 | 30,463 | 28,937 | ||||||||||||
Travel | 13,771 | 14,823 | 28,950 | 27,443 | ||||||||||||
Gain on disposal of aircraft | (399 | ) | (1,163 | ) | (422 | ) | (1,359 | ) | ||||||||
Other | 26,733 | 29,472 | 53,358 | 57,607 | ||||||||||||
Total Operating Expenses | 355,112 | 368,587 | 709,851 | 707,312 | ||||||||||||
Operating Income | 48,461 | 56,118 | 71,058 | 76,697 | ||||||||||||
Non-operating Expenses (Income) | ||||||||||||||||
Interest income | (4,978 | ) | (4,887 | ) | (10,154 | ) | (9,796 | ) | ||||||||
Interest expense | 20,677 | 15,631 | 39,117 | 29,594 | ||||||||||||
Capitalized interest | (292 | ) | (5,952 | ) | (1,694 | ) | (12,304 | ) | ||||||||
Loss on early extinguishment of debt | 994 | 142 | 994 | 142 | ||||||||||||
Other expense (income), net | 1,104 | 1,082 | 1,656 | 785 | ||||||||||||
Total Non-operating Expenses (Income) | 17,505 | 6,016 | 29,919 | 8,421 | ||||||||||||
Income before income taxes | 30,956 | 50,102 | 41,139 | 68,276 | ||||||||||||
Income tax expense (benefit) | 9,993 | 18,906 | 73 | 26,140 | ||||||||||||
Net Income | 20,963 | 31,196 | 41,066 | 42,136 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 903 | 344 | 928 | (1,551 | ) | |||||||||||
Net Income Attributable to Common Stockholders | $ | 20,060 | $ | 30,852 | $ | 40,138 | $ | 43,687 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.78 | $ | 1.17 | $ | 1.54 | $ | 1.66 | ||||||||
Diluted | $ | 0.78 | $ | 1.16 | $ | 1.54 | $ | 1.65 | ||||||||
Weighted average shares: | ||||||||||||||||
Basic | 25,691 | 26,428 | 26,009 | 26,394 | ||||||||||||
Diluted | 25,716 | 26,511 | 26,076 | 26,500 | ||||||||||||
Atlas Air Worldwide Holdings, Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
(in thousands, except share data) | ||||||||
(Unaudited) | ||||||||
June 30, 2013 | December 31, 2012 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 355,775 | $ | 409,763 | ||||
Short-term investments | 11,729 | 10,119 | ||||||
Accounts receivable, net of allowance of $2,006 and $3,172, respectively | 113,271 | 127,704 | ||||||
Prepaid maintenance | 20,248 | 22,293 | ||||||
Deferred taxes | 35,083 | 26,390 | ||||||
Prepaid expenses and other current assets | 38,339 | 36,726 | ||||||
Total current assets | 574,445 | 632,995 | ||||||
Property and Equipment | ||||||||
Flight equipment | 2,682,577 | 2,209,782 | ||||||
Ground equipment | 43,954 | 39,230 | ||||||
Less: accumulated depreciation | (217,534 | ) | (185,419 | ) | ||||
Purchase deposits for flight equipment | 19,817 | 147,946 | ||||||
Property and equipment, net | 2,528,814 | 2,211,539 | ||||||
Other Assets | ||||||||
Long-term investments and accrued interest | 130,150 | 140,498 | ||||||
Deposits and other assets | 139,795 | 132,120 | ||||||
Intangible assets, net | 33,230 | 35,533 | ||||||
Total Assets | $ | 3,406,434 | $ | 3,152,685 | ||||
Liabilities and Equity | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 35,891 | $ | 20,789 | ||||
Accrued liabilities | 151,923 | 152,467 | ||||||
Current portion of long-term debt1,2 | 242,417 | 154,760 | ||||||
Total current liabilities | 430,231 | 328,016 | ||||||
Other Liabilities | ||||||||
Long-term debt1,2 | 1,330,345 | 1,149,282 | ||||||
Deferred taxes | 270,133 | 265,384 | ||||||
Other liabilities | 126,840 | 121,899 | ||||||
Total other liabilities | 1,727,318 | 1,536,565 | ||||||
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; 28,192,693 and 27,672,924 shares issued, 25,237,814 and 26,443,441, shares outstanding (net of treasury stock), as of June 30, 2013 and December 31, 2012, respectively | 282 | 277 | ||||||
Additional paid-in-capital | 536,747 | 544,421 | ||||||
Treasury stock, at cost; 2,954,879 and 1,229,483 shares, respectively | (118,103 | ) | (44,850 | ) | ||||
Accumulated other comprehensive loss | (13,451 | ) | (14,263 | ) | ||||
Retained earnings | 838,814 | 798,676 | ||||||
Total stockholders' equity | 1,244,289 | 1,284,261 | ||||||
Noncontrolling interest | 4,596 | 3,843 | ||||||
Total equity | 1,248,885 | 1,288,104 | ||||||
Total Liabilities and Equity | $ | 3,406,434 | $ | 3,152,685 |
1 | Balance sheet debt at June 30, 2013 totaled $1,572.8 million, including the impact of $44.2 million of unamortized discount. | |
2 | The face value of our debt at June 30, 2013 totaled $1,617.0 million, compared with $1,350.8 million on December 31, 2012. | |
|
Atlas Air Worldwide Holdings, Inc. | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
(Unaudited) | ||||||||
For the Six Months Ended | ||||||||
June 30, 2013 | June 30, 2012 | |||||||
Operating Activities: | ||||||||
Net Income Attributable to Common Stockholders | $ | 40,138 | $ | 43,687 | ||||
Net income (loss) attributable to noncontrolling interests | 928 | (1,551 | ) | |||||
Net Income | 41,066 | 42,136 | ||||||
Adjustments to reconcile Net Income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 45,374 | 32,447 | ||||||
Accretion of debt securities discount | (4,591 | ) | (4,373 | ) | ||||
Provision for allowance for doubtful accounts | 17 | 637 | ||||||
Loss on early extinguishment of debt | 994 | 142 | ||||||
Gain on disposal of aircraft | (422 | ) | (1,359 | ) | ||||
Deferred taxes | (548 | ) | 25,872 | |||||
Stock-based compensation expense | 7,866 | 8,994 | ||||||
Changes in: | ||||||||
Accounts receivable | 11,844 | (5,681 | ) | |||||
Prepaid expenses and other current assets | 9,478 | 7,290 | ||||||
Deposits and other assets | 481 | (12,964 | ) | |||||
Accounts payable and accrued liabilities | 16,618 | (7,203 | ) | |||||
Net cash provided by operating activities | 128,177 | 85,938 | ||||||
Investing Activities: | ||||||||
Capital expenditures | (19,491 | ) | (18,443 | ) | ||||
Purchase deposits and delivery payments for flight equipment | (342,584 | ) | (161,477 | ) | ||||
Investment in debt securities | ? | (1,179 | ) | |||||
Proceeds from short-term investments | 4,422 | 3,915 | ||||||
Proceeds from insurance | 9,109 | ? | ||||||
Proceeds from disposal of aircraft | 2,100 | 2,515 | ||||||
Net cash used for investing activities | (346,444 | ) | (174,669 | ) | ||||
Financing Activities: | ||||||||
Proceeds from debt issuance | 510,808 | 328,221 | ||||||
Refund of accelerated share repurchase | 13,510 | ? | ||||||
Prepayment of accelerated share repurchase | (29,510 | ) | ? | |||||
Purchase of treasury stock | (73,253 | ) | (3,249 | ) | ||||
Excess tax benefit from stock-based compensation expense | 465 | 544 | ||||||
Payment of debt issuance costs | (13,096 | ) | (10,004 | ) | ||||
Payments of debt | (244,645 | ) | (180,820 | ) | ||||
Net cash provided by financing activities | 164,279 | 134,692 | ||||||
Net increase (decrease) in cash and cash equivalents | (53,988 | ) | 45,961 | |||||
Cash and cash equivalents at the beginning of period | 409,763 | 187,111 | ||||||
Cash and cash equivalents at the end of period | 355,775 | 233,072 | ||||||
Atlas Air Worldwide Holdings, Inc. | ||||||||||||||||
Direct Contribution | ||||||||||||||||
(in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||
Operating Revenue: | ||||||||||||||||
ACMI | $ | 181,957 | $ | 160,421 | $ | 363,127 | $ | 315,124 | ||||||||
AMC Charter | 94,135 | 138,014 | 192,172 | 259,308 | ||||||||||||
Commercial Charter | 117,783 | 120,827 | 208,883 | 197,774 | ||||||||||||
Dry Leasing | 6,223 | 2,862 | 9,970 | 5,807 | ||||||||||||
Other | 3,475 | 2,581 | 6,757 | 5,996 | ||||||||||||
Total Operating Revenue | $ | 403,573 | $ | 424,705 | $ | 780,909 | $ | 784,009 | ||||||||
Direct Contribution: | ||||||||||||||||
ACMI | $ | 55,063 | $ | 40,793 | $ | 95,007 | $ | 64,948 | ||||||||
AMC Charter | 12,658 | 29,984 | 25,395 | 50,565 | ||||||||||||
Commercial Charter | (2,480 | ) | 10,081 | (11,164 | ) | 11,957 | ||||||||||
Dry Leasing | 2,437 | 1,253 | 3,613 | 2,589 | ||||||||||||
Total Direct Contribution for Reportable Segments | $ | 67,678 | $ | 82,111 | $ | 112,851 | $ | 130,059 | ||||||||
Unallocated income and expenses, net | (36,128 | ) | (33,030 | ) | (71,141 | ) | (63,000 | ) | ||||||||
Loss on early extinguishment of debt | (994 | ) | (142 | ) | (994 | ) | (142 | ) | ||||||||
Gain on disposal of aircraft | 399 | 1,163 | 422 | 1,359 | ||||||||||||
Income before Income Taxes | 30,955 | 50,102 | 41,138 | 68,276 | ||||||||||||
Interest income | (4,978 | ) | (4,887 | ) | (10,154 | ) | (9,796 | ) | ||||||||
Interest expense | 20,677 | 15,631 | 39,117 | 29,594 | ||||||||||||
Capitalized interest | (292 | ) | (5,952 | ) | (1,694 | ) | (12,304 | ) | ||||||||
Loss on early extinguishment of debt | 994 | 142 | 994 | 142 | ||||||||||||
Other expense (income), net | 1,104 | 1,082 | 1,656 | 785 | ||||||||||||
Operating Income | $ | 48,460 | $ | 56,118 | $ | 71,057 | $ | 76,697 | ||||||||
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 | |||||||||||
June 30, 2013 | June 30, 2012 | Percent Change | |||||||||
Net Income Attributable to Common Stockholders | $ | 20,060 | $ | 30,852 | (35.0 | %) | |||||
After-tax impact from: | |||||||||||
Fleet retirement costs1 | - | 1,043 | |||||||||
Loss on early extinguishment of debt2 | 633 | 90 | |||||||||
Gain on disposal of aircraft | (254 | ) | (741 | ) | |||||||
Adjusted Net Income Attributable to Common Stockholders | 20,439 | 31,244 | (34.6 | %) | |||||||
Diluted EPS | $ | 0.78 | $ | 1.16 | (32.8 | %) | |||||
After-tax impact from: | |||||||||||
Fleet retirement costs1 | - | 0.04 | |||||||||
Loss on early extinguishment of debt2 | 0.02 | 0.00 | |||||||||
Gain on disposal of aircraft | (0.01 | ) | (0.03 | ) | |||||||
Adjusted Diluted EPS | 0.79 | 1.18 | 3 | (33.1 | %) | ||||||
For the Six Months Ended | |||||||||||
June 30, 2013 | June 30, 2012 | Percent Change | |||||||||
Net Income Attributable to Common Stockholders | $ | 40,138 | $ | 43,687 | (8.1 | %) | |||||
After-tax impact from: | |||||||||||
Fleet retirement costs1 | - | 1,968 | |||||||||
Loss on early extinguishment of debt2 | 633 | 90 | |||||||||
ETI tax benefit | (14,160 | ) | - | ||||||||
Gain on disposal of aircraft | (269 | ) | (866 | ) | |||||||
Adjusted Net Income Attributable to Common Stockholders | $ | 26,342 | $ | 44,879 | (41.3 | %) | |||||
Diluted EPS | $ | 1.54 | $ | 1.65 | (6.7 | %) | |||||
After-tax impact from: | |||||||||||
Fleet retirement costs1 | - | 0.07 | |||||||||
Loss on early extinguishment of debt2 | 0.02 | 0.00 | |||||||||
ETI tax benefit | (0.54 | ) | - | ||||||||
Gain on disposal of aircraft | (0.01 | ) | (0.03 | ) | |||||||
Adjusted Diluted EPS | $ | 1.01 | $ | 1.69 | (40.2 | %) |
1 | Fleet retirement costs included incremental employee costs related to the retirement of our 747-200 fleet. | |
2 | Loss on early extinguishment of debt was related to the financing of 747-8F aircraft. | |
3 | Items may not sum due to rounding. | |
Atlas Air Worldwide Holdings, Inc. | |||||||||||
Reconciliation to Non-GAAP Measures | |||||||||||
(in thousands, except per share data) | |||||||||||
(Unaudited) | |||||||||||
For the Three Months Ended | |||||||||||
June 30, 2013 | June 30, 2012 | ||||||||||
Net Cash Provided by Operating Activities | $ | 73,788 | $ | 67,850 | |||||||
Less: | |||||||||||
Capital expenditures | 8,493 | 7,717 | |||||||||
Capitalized interest | 292 | 5,952 | |||||||||
Free Cash Flow1 | $ | 64,553 | $ | 54,181 | |||||||
For the Six Months Ended | |||||||||||
June 30, 2013 | June 30, 2012 | ||||||||||
Net Cash Provided by Operating Activities | $ | 128,177 | $ | 85,938 | |||||||
Less: | |||||||||||
Capital expenditures | 19,491 | 18,443 | |||||||||
Capitalized interest | 1,694 | 12,304 | |||||||||
Free Cash Flow1 | $ | 106,992 | $ | 55,191 |
1 | Free Cash Flow = Cash Flows from Operations minus Base Capital Expenditures and Capitalized Interest. | |
Base Capital Expenditures excludes purchases of aircraft. | ||
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Atlas Air Worldwide Holdings, Inc. | ||||||||||||||||
Reconciliation to Non-GAAP Measures | ||||||||||||||||
(in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||
Income before income taxes | $ | 30,956 | $ | 50,102 | $ | 41,139 | $ | 68,276 | ||||||||
Fleet retirement costs1 | - | 1,637 | - | 3,090 | ||||||||||||
Loss on early extinguishment of debt | 994 | 142 | 994 | 142 | ||||||||||||
Gain on disposal of aircraft | (399 | ) | (1,163 | ) | (422 | ) | (1,359 | ) | ||||||||
Adjusted pretax income | 31,551 | 50,718 | 41,711 | 70,149 | ||||||||||||
Interest (income) expense, net | 15,407 | 4,792 | 27,269 | 7,494 | ||||||||||||
Other non-operating expenses | 1,104 | 1,082 | 1,656 | 785 | ||||||||||||
Adjusted operating income | 48,062 | 56,592 | 70,636 | 78,428 | ||||||||||||
Depreciation and amortization | 20,371 | 13,877 | 38,179 | 28,180 | ||||||||||||
EBITDA, as adjusted2 | 68,433 | 70,469 | 108,815 | 106,608 | ||||||||||||
Aircraft rent | 42,247 | 42,758 | 82,255 | 82,176 | ||||||||||||
EBITDAR, as adjusted3 | $ | 110,680 | $ | 113,227 | $ | 191,070 | $ | 188,784 |
1 | Fleet retirement costs included incremental employee costs related to the retirement of our 747-200 fleet. | |
2 | Adjusted EBITDA: Earnings before interest, taxes, depreciation, amortization, fleet retirement costs, and gains on disposal of aircraft, as applicable. | |
3 | Adjusted EBITDAR: Earnings before interest, taxes, depreciation, amortization, aircraft rent expense, fleet retirement costs, and gains on disposal of aircraft, as applicable. | |
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Atlas Air Worldwide Holdings, Inc. | ||||||||||||||||||||||||
Operating Statistics and Traffic Results | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | |||||||||||||||||||||
2013 | 2012 | (Decrease) | 2013 | 2012 | (Decrease) | |||||||||||||||||||
Block Hours | ||||||||||||||||||||||||
ACMI | 28,372 | 25,737 | 2,635 | 56,461 | 50,246 | 6,215 | ||||||||||||||||||
AMC Charter | ||||||||||||||||||||||||
Cargo | 1,891 | 2,680 | (789 | ) | 3,765 | 5,869 | (2,104 | ) | ||||||||||||||||
Passenger | 2,675 | 3,389 | (714 | ) | 5,235 | 5,240 | (5 | ) | ||||||||||||||||
Commercial Charter | 6,331 | 5,739 | 592 | 11,050 | 9,429 | 1,621 | ||||||||||||||||||
Nonrevenue | 245 | 197 | 48 | 435 | 631 | (196 | ) | |||||||||||||||||
Total Block Hours | 39,514 | 37,742 | 1,772 | 76,946 | 71,415 | 5,531 | ||||||||||||||||||
Revenue Per Block Hour | ||||||||||||||||||||||||
ACMI | $ | 6,413 | $ | 6,233 | $ | 180 | $ | 6,431 | $ | 6,272 | $ | 159 | ||||||||||||
AMC Charter | 20,617 | 22,741 | (2,124 | ) | 21,352 | 23,342 | (1,990 | ) | ||||||||||||||||
Cargo | 22,615 | 25,783 | (3,168 | ) | 22,973 | 25,295 | (2,332 | ) | ||||||||||||||||
Passenger | 19,204 | 20,335 | (1,131 | ) | 20,187 | 21,155 | (968 | ) | ||||||||||||||||
Commercial Charter | 18,604 | 21,054 | (2,450 | ) | 18,903 | 20,975 | (2,072 | ) | ||||||||||||||||
Average Utilization (block hours per day) | ||||||||||||||||||||||||
ACMI1 | 10.7 | 12.9 | (2.2 | ) | 10.5 | 12.6 | (2.1 | ) | ||||||||||||||||
AMC Charter | ||||||||||||||||||||||||
Cargo | 7.4 | 10.2 | (2.8 | ) | 7.2 | 9.0 | (1.8 | ) | ||||||||||||||||
Passenger | 6.4 | 8.3 | (1.9 | ) | 6.7 | 7.8 | (1.1 | ) | ||||||||||||||||
Commercial Charter | 7.5 | 10.0 | (2.5 | ) | 7.4 | 9.1 | (1.7 | ) | ||||||||||||||||
All Operating Aircraft1,2 | 9.5 | 11.6 | (2.1 | ) | 9.4 | 11.2 | (1.8 | ) | ||||||||||||||||
Fuel | ||||||||||||||||||||||||
AMC | ||||||||||||||||||||||||
Average fuel cost per gallon | $ | 3.63 | $ | 3.61 | $ | 0.02 | $ | 3.63 | $ | 3.57 | $ | 0.06 | ||||||||||||
Fuel gallons consumed (000s) | 11,105 | 15,522 | (4,417 | ) | 22,523 | 29,551 | (7,028 | ) | ||||||||||||||||
Commercial Charter | ||||||||||||||||||||||||
Average fuel cost per gallon | $ | 3.03 | $ | 3.31 | $ | (0.28 | ) | $ | 3.15 | $ | 3.38 | $ | (0.23 | ) | ||||||||||
Fuel gallons consumed (000s) | 20,628 | 18,590 | 2,038 | 36,254 | 31,621 | 4,633 |
1 | ACMI and All Operating Aircraft averages in the second quarter and first six months of 2013 reflect the impact of increases in the number of CMI aircraft and amount of CMI flying compared with the same periods of 2012. | |
2 | Average of All Operating Aircraft excludes Dry Leasing aircraft, which do not contribute to block-hour volumes. | |
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Atlas Air Worldwide Holdings, Inc. | ||||||||||||||||||
Operating Statistics and Traffic Results | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
| For the Three Months Ended |
| For the Six Months Ended | |||||||||||||||
June 30, | Increase/ | June 30, | Increase/ | |||||||||||||||
2013 | 2012 | (Decrease) | 2013 | 2012 | (Decrease) | |||||||||||||
Segment Operating Fleet (average aircraft equivalents during the period) | ||||||||||||||||||
ACMI1 | ||||||||||||||||||
747-8F Cargo | 8.2 | 3.3 | 4.9 | 7.6 | 3.2 | 4.4 | ||||||||||||
747-400 Cargo2 | 13.0 | 16.2 | (3.2 | ) | 13.9 | 16.7 | (2.8 | ) | ||||||||||
767-300 Cargo | 2.0 | - | 2.0 | 1.7 | - | 1.7 | ||||||||||||
767-200 Cargo | 5.0 | 1.5 | 3.5 | 5.0 | 0.9 | 4.1 | ||||||||||||
747-400 Passenger | 1.0 | 1.0 | - | 1.0 | 1.1 | (0.1 | ) | |||||||||||
767-300 Passenger | - | - | - | 0.4 | - | 0.4 | ||||||||||||
Total | 29.2 | 22.0 | 7.2 | 29.6 | 21.9 | 7.7 | ||||||||||||
AMC Charter | ||||||||||||||||||
747-400 Cargo | 2.8 | 2.9 | (0.1 | ) | 2.9 | 3.3 | (0.4 | ) | ||||||||||
747-200 Cargo | - | - | - | - | 0.3 | (0.3 | ) | |||||||||||
747-400 Passenger | 1.8 | 1.6 | 0.2 | 1.8 | 1.7 | 0.1 | ||||||||||||
767-300 Passenger | 2.8 | 2.9 | (0.1 | ) | 2.5 | 2.0 | 0.5 | |||||||||||
Total | 7.4 | 7.4 | - | 7.2 | 7.3 | (0.1 | ) | |||||||||||
Commercial Charter | ||||||||||||||||||
747-8F Cargo | 0.3 | - | 0.3 | 0.1 | - | 0.1 | ||||||||||||
747-400 Cargo | 8.6 | 6.0 | 2.6 | 7.9 | 4.9 | 3.0 | ||||||||||||
747-200 Cargo | - | - | - | - | 0.4 | (0.4 | ) | |||||||||||
747-400 Passenger | 0.2 | 0.2 | - | 0.2 | 0.2 | - | ||||||||||||
767-300 Passenger | 0.2 | 0.1 | 0.1 | 0.1 | 0.2 | (0.1 | ) | |||||||||||
Total | 9.3 | 6.3 | 3.0 | 8.3 | 5.7 | 2.6 | ||||||||||||
Dry Leasing | ||||||||||||||||||
777-200 Cargo | 1.0 | - | 1.0 | 0.6 | - | 0.6 | ||||||||||||
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 | 2.0 | 2.0 | - | 2.0 | 2.0 | - | ||||||||||||
Total | 5.0 | 3.0 | 2.0 | 4.6 | 3.0 | 1.6 | ||||||||||||
Total Operating Aircraft | 50.9 | 38.7 | 12.2 | 49.7 | 37.9 | 11.8 | ||||||||||||
Out of Service3 | 1.0 | - | 1.0 | 0.7 | - | 0.7 |
1 | ACMI average fleet excludes spare aircraft provided by CMI customers. | |
2 | Includes 1.6 and 1.1 Large Cargo Freighters in the three-month periods ended June 30, 2013 and 2012, respectively. Includes 1.6 and 1.1 Large Cargo Freighters in the six-month periods ended June 30, 2013 and 2012, respectively. | |
3 | Out-of-service aircraft were temporarily parked during the period and are completely unencumbered. |
Atlas Air Worldwide Holdings, Inc.
Investors
Dan Loh,
914-701-8200
or
Media
Bonnie Rodney, 914-701-8580