Atlas Air Worldwide Holdings, Inc. (AAWW) (Nasdaq: AAWW), a
leading global provider of air cargo assets and outsourced aircraft
operating services and solutions, today announced significantly
higher fourth-quarter and record full-year 2010 earnings. Adjusted
net income in the fourth quarter jumped 23% to $41.4 million, or
$1.58 per diluted share, completing a year in which adjusted net
earnings soared 102% to a record $150.0 million, or $5.75 per
share.
On a reported basis, fourth-quarter net income rose 47% to $41.6
million, or $1.58 per diluted share. Full-year reported net income
increased 82% to $141.8 million, or $5.44 per share.
“2010 was an exciting year for the Company and for commercial
airfreight demand,” said William J. Flynn, President and Chief
Executive Officer of AAWW. “Our revenues increased 26% and our net
income grew sharply, due to strong airfreight demand, tight supply
of wide-body, long-haul freighter aircraft, and our effectiveness
in executing our business model.
“In driving our earnings to a new record, we capitalized on our
market leadership and on the global scale and scope of our
operations to grow our core, long-term ACMI business. We also
capitalized on very profitable market opportunities in our military
and commercial charter businesses. And we started a new,
non-asset-intensive CMI business, the ongoing expansion of which
will complement revenues and earnings generated by the growth of
our fleet over the next several years.”
Fourth-Quarter and Full-Year Results
Reported and adjusted net income for the three months ended
December 31, 2010, was achieved on revenues of $359.7 million.
Solid operating and financial results for the quarter compared with
net income of $28.3 million, or $1.17 per diluted share, on
revenues of $321.6 million for the three months ended December 31,
2009.
Reported and adjusted net income for the year ended December 31,
2010, reflected revenues of $1.34 billion. In 2009, AAWW’s net
income totaled $77.8 million, or $3.56 per diluted share, on
revenues of $1.06 billion.
Pretax adjustments to earnings in 2010 included a net expense of
$16.1 million for legal settlements, partly offset by an $8.8
million litigation settlement receipt and a gain of $3.6 million on
disposal of aircraft assets. Pretax adjustments to earnings in 2009
included $10.0 million for the effective early termination of a
contract, a non-cash special charge of $8.2 million related to
747-200 freighter assets, $2.7 million for a gain on the early
extinguishment of debt, and a $1.0 million gain on the disposal of
aircraft assets.
Reported and adjusted results for the full year of 2010
benefited by $0.69 per diluted share from a surge in military
charter activity during the first two quarters of 2010 that related
to the movement of mine-resistant, ambush-protected, all-terrain
vehicles (M-ATVs) to Afghanistan on premium-rate, one-way 747-400
freighter aircraft flights.
Heading into the fourth quarter, AAWW reallocated two 747-400F
aircraft from charter operations into the more predictable, core
ACMI business, following new contracts with Panalpina, a leading
global freight forwarder, and TNT Express, a major international
express package provider. Reflecting encouraging demand and
improved yields for airfreight, ACMI customers continued to fly
above their minimum contractual block hours during the latest
quarter, averaging nearly 7% above minimums for the period and 8%
for the full year.
ACMI results during the quarter also benefited from the second
full quarter of outsourced, passenger-CMI service for SonAir, using
two customer-owned 747-400 aircraft, and the ramp-up of CMI flying
for Boeing, with all four of Boeing’s modified 747-400 Dreamlifter
aircraft now on the Company’s operating certificate. Each of these
opportunities is expected to have a tangible impact on the
Company’s results beginning in 2011.
Increased volumes and block-hour rates in the ACMI business more
than offset a reduction in AMC Charter contribution compared with
the fourth quarter of 2009, following an anticipated moderation in
demand for U.S. military activity in Afghanistan. In Commercial
Charter, improved block-hour rates offset a modest reduction in
block-hour volumes. Improved Commercial Charter rates compared with
the fourth quarter of 2009 reflected continued strong demand for
charters in Asian and Latin American markets.
Outlook
“We expect to report strong earnings in 2011, with fully diluted
earnings in excess of $5.30 per share,” said Mr. Flynn.
“We anticipate steadily improving results throughout the year,
and our guidance includes our projection that we will receive and
place into service three 747-8Fs from Boeing in the fourth quarter
of 2011. We continue to discuss the proposed delivery schedule with
Boeing, and uncertainty surrounding the timing of our deliveries
remains.”
AAWW expects that airfreight volumes will continue to grow from
record levels in 2010, and that demand growth in the high-density
Asian trade lanes that are important to the Company’s ACMI and
Commercial Charter customers will continue to outpace global demand
growth in 2011 and well into the future.
Shipments of high-tech products, pharmaceuticals, automotive
parts used in global manufacturing, as well as inventory
replenishment and just-in-time inventory management practices by
manufacturers and retailers, are contributing to the strength in
demand for airfreight. Tight supply in the wide-body, long-haul,
heavy-freighter space continues to support rates and load
factors.
“To address customer demand and bridge our capacity needs, we
have entered into leases for two 747-400 Boeing Converted
Freighters for an average of approximately three and a half years,”
Mr. Flynn added. “We expect to deploy these aircraft in our
military and commercial charter businesses when they enter service
during the second quarter of 2011.
“We continue to see strong market demand for our high-payload,
fuel-efficient 747-400 aircraft. Twenty of our now 24 747-400
freighters will be in ACMI in late March when we expand our
existing express network ACMI service for DHL Express to eight
aircraft from six, as previously announced.”
AAWW also continues to profitably deploy its 747-200 freighter
assets. Demand and block-hour rates in the Company’s AMC Charter
business in 2011 are expected to moderate from the strong levels
seen in the first half of 2010, with expected AMC demand this year
totaling approximately 17,000 block hours. The Company expects to
benefit from continuing demand and tightness of supply in
Commercial Charter, and from earnings contributions generated by
passenger-CMI service for SonAir and the further ramp-up of
Dreamlifter-CMI service for Boeing.
“Our record earnings in 2010 and the strong level of our
expected earnings in 2011 reflect the strategic actions we have
taken to transform our business, reduce our commercial and
operational risk, increase our sustainable core earnings, improve
the quality of our cash flows, and de-lever our balance sheet,” Mr.
Flynn noted.
“During the past several years, as we have aggressively managed
and modernized our fleet, transformed our scheduled service
business to express network ACMI, and relentlessly reduced our
costs, we grew our pretax earnings to a range of $94 million to
$133 million during 2005 to 2009.
“Now we are in a period of transformative growth, with a balance
sheet that is well-positioned to fund that growth. We delivered in
excess of $220 million in pretax earnings in 2010, and expect to do
so again in 2011.
“We continue to execute on our initiatives to grow our fleet
with next-generation 747-8 freighters; further ramp up our CMI
service for SonAir, Boeing and other potential new customers; and
capitalize on our core competencies and market leadership in other
ways. We expect to drive our revenues and earnings to levels
significantly higher than those in 2010 and 2011.”
Conference Call
Management will host a conference call to discuss AAWW’s
fourth-quarter and full-year 2010 financial and operating results
at 11:00 a.m. Eastern Time on Monday, February 14, 2011.
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 fourth-quarter
call) or at the following Web address:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=67423&eventID=3727046
Slides supplementing management’s presentation may be downloaded
from the “Presentations” section of AAWW’s Web site prior to the
conference call.
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 February 21 by dialing (800) 642-1687
(domestic) and (706) 645-9291 (international) and using Access Code
42822600#.
4Q10 Performance versus 4Q09
Revenues, operating expenses, and operating statistics in the
fourth quarter and full year of 2010 reflect the consolidation of
GSS, for financial reporting purposes, that began on April 8, 2009.
As a result, block hours and associated block-hour revenues
generated by aircraft supporting GSS since that date have been
included in ACMI operations rather than in the previously reported
Dry Leasing segment.
Operating revenues totaled $359.7 million in the fourth quarter
of 2010, an increase of $38.1 million, or 12%, compared with the
year-earlier period, driven primarily by stronger ACMI volumes as
well as stronger ACMI and Commercial Charter revenue per block
hour.
Total block hours increased 11% (35,029 block hours versus
31,480) compared with the fourth quarter of 2009. Average operating
aircraft, excluding Dry Leasing aircraft, increased 10% (29.4
compared with 26.8), reflecting the addition of customer-owned CMI
passenger and freighter 747-400 aircraft to the Company’s operating
certificate. Average utilization of operating aircraft, excluding
Dry Leasing aircraft, totaled approximately 13.0 hours per aircraft
per day during the quarter, up 1.6% compared with 12.8 hours in the
fourth quarter of 2009, due to a substantial increase in flying
activity by ACMI customers compared with the fourth quarter of
2009.
In ACMI, revenues of $159.9 million increased $36.6 million, or
30%, driven by an increase in block-hour volumes (25,952 versus
21,902) and average ACMI revenue per block hour ($6,163 versus
$5,629). Higher ACMI block-hour volumes largely reflected the
continuing improvement in airfreight demand during the quarter,
which led ACMI customers to fly above contractual minimums, as well
as new ACMI contract flying for Panalpina and TNT, CMI passenger
service for SonAir, and CMI Dreamlifter service for Boeing. Revenue
per block hour during the quarter primarily reflected an increase
in higher-yielding ACMI flying compared with the fourth quarter of
2009.
For the quarter, an average of 21.0 aircraft (19.2 Boeing
747-400s, 0.3 Boeing 747-200s, and 1.5 CMI aircraft) supported the
Company’s ACMI operations, compared with an average of 17.4
aircraft (17.3 Boeing 747-400s, 0.1 Boeing 747-200s, and zero CMI
aircraft) in the fourth quarter of 2009.
AMC Charter revenues of $85.7 million decreased $6.1 million, or
7%, in the latest quarter, due to a reduction in block-hour volumes
(4,356 block hours versus 4,587) and a slight reduction in
block-hour rates ($19,669 versus $20,006) reflecting a moderation
in demand to support U.S. military activity in Afghanistan.
An average of 4.3 aircraft (0.8 Boeing 747-400s and 3.5 Boeing
747-200s) supported the Company’s AMC Charter operations during the
quarter, compared with an average of 5.1 aircraft (1.7 Boeing
747-400s and 3.4 Boeing 747-200s) in the fourth quarter of
2009.
In Commercial Charter, revenues of $108.9 million increased $6.7
million, or 7%, during the quarter. Revenues were driven by an
increase in block-hour rates ($23,990 versus $21,095), partially
offset by a slight reduction in block-hour volumes. Block-hour
rates during the quarter reflected continued strength in demand for
airfreight out of Asia compared with the fourth quarter of 2009,
coupled with a tight supply in global wide-body freighter
capacity.
For the quarter, an average of 4.1 aircraft (1.9 Boeing 747-400s
and 2.2 Boeing 747-200s) supported the Company’s Commercial Charter
operations, compared with an average of 4.3 aircraft (3.0 Boeing
747-400s and 1.3 Boeing 747-200s) in the fourth quarter of
2009.
Dry Leasing revenues of $1.8 million in the fourth quarter of
2010 were $1.1 million, or 175%, higher than in the fourth quarter
of 2009, primarily due to an increase in revenue from the lease of
a 757-200F acquired in the first quarter of 2010 and spare engine
leases outstanding during the quarter.
Operating Expenses
Operating expenses in the fourth quarter of 2010 totaled $298.2
million, an increase of $28.8 million, or 11%, compared with the
same quarter in 2009. The increase was largely due to the company’s
decision to continue to invest in its 747-200 fleet to meet
anticipated levels of demand in 2011 as well as an increase in
block-hour volumes, partly offset by Continuous Improvement
achievements focused on cost savings and productivity
enhancements.
Aircraft fuel expense of $77.9 million increased $5.6 million,
or 8%, during the quarter, reflecting an increase in fuel prices
compared with the fourth quarter of 2009.
Labor expenses of $60.5 million increased $2.1 million, or 4%,
compared with the 2009 fourth quarter. Labor expenses during the
quarter were primarily driven by the increase in block-hour
volumes.
Maintenance expense of $58.1 million increased $18.7 million, or
47%, during the quarter, primarily due to an expense of
approximately $17.6 million to perform maintenance on the company’s
747-200 freighters to meet anticipated levels of commercial and
military charter market demand in 2011.
Heavy maintenance activity during the quarter included one
747-400 D Check and one 747-200 D Check compared with one 747-400 D
Check, two 747-400 C Checks and four 747-200 C Checks in the fourth
quarter of 2009. In addition, there were 11 engine overhauls during
the period compared with three in the fourth quarter of 2009.
Ground handling and landing fees of $20.2 million during the
quarter were $3.4 million, or 20%, higher than in the fourth
quarter of 2009, primarily due to the increase in flying to more
costly locations.
Travel expense of $10.0 million during the quarter was $2.7
million, or 38%, higher than during the fourth quarter of 2009,
reflecting an increase in crew travel related to higher block-hour
volumes and an increase in travel-related costs.
Other operating expenses totaled $23.7 million during the
quarter, an increase of $3.1 million, or 15%, versus the fourth
quarter of 2009, primarily due to an increase in outside
services.
Net Interest and Other Non-Operating Expenses
Net interest income totaled $0.8 million during the quarter, an
improvement of $7.2 million compared with the fourth quarter of
2009, reflecting higher levels of interest income and capitalized
interest as well as a lower level of outstanding debt.
Interest income during the quarter benefited from the Company’s
long-term investments in Pass-through Trust Certificates that
relate to Enhanced Equipment Trust Certificates (EETCs) issued by
the Company to finance 12 of the Company’s 747-400 freighter
aircraft.
Income Taxes
Fourth-quarter results included an income tax expense of $19.8
million compared with an income tax expense of $18.0 million in the
fourth quarter of 2009, which resulted in an effective income tax
rate of 31.7% versus a rate of 39.0%.
The difference between the effective rate and the statutory rate
for the three months ended December 31, 2010, was primarily
attributable to a reduction in the effective state income tax rate.
The reduced rate resulted from tax planning that decreased the
apportionment of taxable income to certain states. For the
three-month period ended December 31, 2009, the effective tax rate
differed from the statutory rate primarily due to the
non-deductibility of certain items for tax purposes.
Cash and Cash Equivalents
At December 31, 2010, AAWW’s cash, cash equivalents and
short-term investments totaled $595.1 million, compared with $636.3
million at December 31, 2009.
Operating activities generated $280.5 million of cash during the
year ended December 31, 2010, partially offsetting $162.0 million
of net cash used for investing activities and $143.4 million of net
cash used for financing activities.
Outstanding Debt
At December 31, 2010, AAWW’s balance sheet debt totaled $487.2
million, including the impact of $57.0 million of unamortized
discount.
The face value of AAWW’s debt at December 31, 2010, totaled
$544.2 million, compared with $627.3 million on December 31,
2009.
Non-GAAP Financial Measures
EBITDAR, as adjusted for gains on aircraft sales, totaled $109.2
million in the fourth quarter of 2010 compared with $106.8 million
in the fourth quarter of 2009. For the full year, EBITDAR, as
adjusted for gains on aircraft sales and net expense for legal
settlements, totaled $429.4 million compared with $341.4 million in
2009.
EBITDA, as adjusted for gains on asset sales, totaled $69.7
million in the latest reporting period compared with $68.9 million
in the fourth quarter of 2009. EBITDA, as adjusted for gains on
aircraft sales and net expense for legal settlements, for the full
year was $274.7 million compared with $190.3 million for the
prior-year period.
About Non-GAAP Financial Measures
To supplement AAWW’s financial statements presented in
accordance with U.S. GAAP, AAWW presents certain non-GAAP financial
measures to assist in the evaluation of the performance of its
business. These non-GAAP measures include Direct Contribution as
well as adjusted net income; EBITDAR, as adjusted; and EBITDA, as
adjusted, which exclude gains on asset sales, early termination of
debt, consolidation of a subsidiary, net expense for legal
settlements, and a special charge.
AAWW’s management uses these non-GAAP financial measures in
assessing the performance of the Company’s ongoing operations and
liquidity and in planning and forecasting future periods. The
Company believes 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 Holdings, Inc.:
AAWW 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, AAWW
operates the world’s largest fleet of Boeing 747 freighter
aircraft.
Atlas, Titan and Polar offer a range of air cargo and aircraft
operating solutions that include ACMI aircraft leasing – in which
customers receive a dedicated aircraft, crew, maintenance and
insurance on a long-term lease basis; CMI service, for customers
that provide their own aircraft; express network and scheduled air
cargo service; military charters; commercial cargo charters; and
dry leasing of aircraft and engines.
AAWW’s press releases, SEC filings and other information can be
accessed through the Company’s home page, www.atlasair.com.
All references to net income refer to net income attributable to
common stockholders.
This release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995
that reflect AAWW’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 AAWW 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 AAWW’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 Annual Report on Form
10-K filed by AAWW with the Securities and Exchange Commission on
February 24, 2010. 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, AAWW is not providing guidance
or estimates regarding its anticipated business and financial
performance for 2011 or thereafter.
AAWW 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 Twelve Months Ended December 31, 2010
December 31, 2009 December 31, 2010
December 31, 2009 Operating Revenue ACMI $
159,936 $ 123,288 $ 543,853 $ 482,231 AMC Charter 85,680 91,766
388,994 328,990 Commercial Charter 108,915 102,226 384,440 215,127
Dry Leasing 1,794 653 7,178 12,799 Other 3,369
3,627 13,309 22,399 Total
Operating Revenue $ 359,694 $ 321,560 $ 1,337,774
$ 1,061,546
Operating Expenses Aircraft
fuel 77,893 72,285 300,229 201,207 Salaries, wages and benefits
60,492 58,372 238,169 215,660 Maintenance, materials and repairs
58,062 39,402 174,029 147,758 Aircraft rent 39,549 37,928 154,646
151,080 Landing fees and other rent 12,726 11,326 48,700 39,552
Depreciation and amortization 8,304 8,519 34,353 33,074 Travel
9,984 7,237 34,338 25,235 Ground handling and airport fees 7,470
5,502 25,115 16,212 Gain on disposal of aircraft (60 ) - (3,601 )
(953 ) Special charge - 8,216 - 8,216 Other 23,733
20,604 103,910 74,498
Total Operating Expenses 298,153 269,391
1,109,888 911,539
Operating Income 61,541 52,169
227,886 150,007
Non-operating
Expenses / (Income) Interest income (5,043 ) (1,198 ) (19,663 )
(3,014 ) Interest expense 9,638 10,657 40,034 44,731 Capitalized
interest (5,366 ) (3,026 ) (16,373 ) (12,215 ) Gain on early
extinguishment of debt - - - (2,713 ) Gain on consolidation of
subsidiary - - - (113 ) Other (income) expense, net 14
(385 ) (9,222 ) (765 ) Total
Non-operating Expenses / (Income) (757 ) 6,048 (5,224 ) 25,911
Income before income taxes 62,298 46,121 233,110 124,096
Income tax expense 19,768 17,986
90,154 47,940
Net Income 42,530
28,135 142,956 76,156 Less: Net income / (loss) attributable to
noncontrolling interests 970 (204 )
1,146 (1,620 )
Net Income Attributable to
Common Stockholders $ 41,560 $ 28,339 $ 141,810
$ 77,776
Earnings per share: Basic $
1.60 $ 1.19 $ 5.50 $ 3.59
Diluted $ 1.58 $ 1.17 $ 5.44 $ 3.56
Weighted average shares: Basic 25,914
23,878 25,781 21,652
Diluted 26,234 24,171
26,088 21,818
Atlas Air Worldwide Holdings,
Inc.
Direct Contribution
(in thousands)
(Unaudited)
For the Three Months Ended For the Twelve
Months Ended December 31, 2010 December 31,
2009 December 31, 2010 December 31, 2009
Operating Revenue: ACMI $ 159,936 $ 123,288 $ 543,853 $
482,231 AMC Charter 85,680 91,766 388,994 328,990 Commercial
Charter 108,915 102,226 384,440 215,127 Dry Leasing 1,794 653 7,178
12,799 Other 3,369 3,627 13,309
22,399
Total Operating Revenue $
359,694
$ 321,560
$ 1,337,774
$ 1,061,546
Direct Contribution: ACMI $ 40,582
$ 25,871 $ 127,679 $ 90,686 AMC Charter 15,995 24,205 111,091
93,884 Commercial Charter 33,345 34,577 111,717 39,790 Dry Leasing
951 37 4,643 1,051
Total Direct Contribution for Reportable Segments
90,873 84,690 355,130 225,411 Add back (subtract): Unallocated
income and expenses (28,635 ) (30,353 ) (125,621 ) (96,878 ) Gain
on early extinguishment of debt - - - 2,713 Gain on consolidation
of subsidiary - - - 113 Gain on disposal of aircraft 60 - 3,601 953
Special charge - (8,216 ) -
(8,216 )
Income before Income Taxes 62,298
46,121 233,110 124,096
Add back (subtract): Interest income (5,043 ) (1,198 )
(19,663 ) (3,014 ) Interest expense 9,638 10,657 40,034 44,731
Capitalized interest (5,366 ) (3,026 ) (16,373 ) (12,215 ) Gain on
early extinguishment of debt - - - (2,713 ) Gain on consolidation
of subsidiary - - - (113 ) Other, net 14 (385
) (9,222 ) (765 )
Operating Income $
61,541 $ 52,169 $ 227,886 $ 150,007
AAWW uses an economic performance metric, Direct Contribution,
to show the profitability of each of its segments after allocation
of direct ownership costs. AAWW 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)
(Unaudited)
For the Three Months Ended For the Twelve
Months Ended December 31, 2010 December 31,
2009 December 31, 2010 December 31, 2009
Income before income taxes $
62,298 $
46,121 $ 233,110 $ 124,096
Net expense for legal settlements
(132 ) - 16,068 - Special charge - 8,216 - 8,216 Gain on disposal
of aircraft (60 ) - (3,601 )
(953 )
Pretax income before net expense for
legal settlements, special charge and gain on disposal of
aircraft
62,106 54,337 245,577 131,359
Interest expense, net (771 ) 6,433 3,998 29,502 Gain on early
extinguishment of debt - - - (2,713 ) Gain on consolidation of
subsidiary - - - (113 ) Other non-operating expenses 14
(385 ) (9,222 ) (765 )
Operating income before non-operating
items, net expense for legal settlements, special charge and gain
on disposal of aircraft
61,349 60,385 240,353 157,270
Depreciation and amortization 8,304 8,519
34,353 33,074
EBITDA,
as adjusted* 69,653 68,904 274,706
190,344 Aircraft rent 39,549
37,928 154,646 151,080
EBITDAR, as adjusted* $ 109,202
$ 106,832 $ 429,352
$ 341,424
* EBITDA, as adjusted: Earnings before interest, taxes,
depreciation, amortization, net expense for legal settlements,
special charge, gain on disposal of aircraft, gain on litigation,
gain on early termination of debt, and gain on consolidation of
subsidiary, as applicable.
* EBITDAR, as adjusted: Earnings before interest, taxes,
depreciation, amortization, aircraft rent expense, net expense for
legal settlements, special charge, gain on disposal of aircraft,
gain on litigation, gain on early termination of debt, and gain on
consolidation of subsidiary, as applicable.
Atlas Air Worldwide Holdings,
Inc.
Reconciliation to Non-GAAP
Measures
(in thousands)
(Unaudited)
For the Three Months Ended For the Twelve
Months Ended December 31, 2010 December 31, 2010
Special As Special
As Actual Items* Adjusted Actual
Items* Adjusted Income before income taxes $
62,298
$ (192 ) $ 62,106 $ 233,110 $ 3,717 $ 236,827 Less income tax
expense 19,768 (22 ) 19,746
90,154 (4,483 ) 85,671
Net
income 42,530 (170 ) 42,360 142,956 8,200 151,156 Less net loss
attributable to non-controlling interests 970
- 970 1,146 -
1,146
Net income attributable to Common
Stockholders $ 41,560 $ (170 ) $ 41,390 $ 141,810 $ 8,200 $
150,010
Earnings per share: Basic $ 1.60 $ (0.00 ) $
1.60 $ 5.50 $ 0.32 $ 5.82 Diluted $ 1.58 $ (0.00 ) $ 1.58 $ 5.44 $
0.31 $ 5.75
* Special items are comprised of: Three
Months Ended December 31, 2010 – Net reduction for legal
settlements - $132; gain on disposal of aircraft - $60. Twelve
Months Ended December 31, 2010 – Net expense for legal settlements
- $16,068; litigation settlement received - $8,750; gain on
disposal of aircraft - $3,601.
For the Three Months Ended For the
Twelve Months Ended December 31, 2009 December 31,
2009 Special As Special As
Actual Items* Adjusted Actual
Items* Adjusted Income before income taxes $
46,121 $ 8,216 $ 54,337 $ 124,096 $ (5,563 ) $ 118,533 Less income
tax expense 17,986 3,040 21,026
47,940 (2,058 ) 45,882
Net income 28,135 5,176 33,311 76,156 (3,505 ) 72,651 Less
net loss attributable to non-controlling interests (204 )
- (204 ) (1,620 ) -
(1,620 )
Net income attributable to Common
Stockholders $ 28,339 $ 5,176 $ 33,515 $ 77,776 $ (3,505 ) $
74,271
Earnings per share: Basic $ 1.19 $ 0.21 $ 1.40
$ 3.59 $ (0.16 ) $ 3.43 Diluted $ 1.17 $ 0.21 $ 1.38 $ 3.56 $ (0.16
) $ 3.40
* Special items are comprised of: Three
Months Ended December 31, 2009 – Special charge - $8,216. Twelve
Months Ended December 31, 2009 – Contract termination fee -
$10,000; Special charge - $8,216; gain on early retirement of debt
- $2,713; gain on disposal of aircraft - $953; gain on
consolidation of subsidiary – $113.
Atlas Air Worldwide Holdings,
Inc.
Operating Statistics and Traffic
Results
(in thousands)
(Unaudited)
For the Three
Months Ended For the Twelve Months Ended December
31, Percent December 31, Percent
2010 2009 Change 2010
2009 Change Fleet (average during the
period) ACMI 21.0 17.4 20.7 % 18.4 17.1 7.6 % AMC Charter 4.3
5.1 (15.7 %) 5.5 6.8 (19.1 %) Commercial Charter 4.1 4.3 (4.7 %)
4.7 3.5 34.3 % Dry Leasing 1.0 - NM 0.8
0.8 NM Operating Aircraft 30.4 26.8
13.4 % 29.4 28.2 4.3 % Out of Service
(1) - 3.2 (100.0 %) 0.1 2.5 (96.0 %)
Block Hours ACMI
25,952 21,902 18.5 % 91,357 76,859 18.9 % AMC Charter 4,356 4,587
(5.0 %) 18,679 19,088 (2.1 %) Commercial Charter 4,540 4,846 (6.3
%) 17,572 12,694 38.4 % Non revenue 181 145 24.8 %
750 328 128.7 % Total Block Hours 35,029
31,480 11.3 % 128,358 108,969 17.8 %
Revenue Per Block Hour ACMI $ 6,163 $ 5,629 9.5 % $ 5,953 $
6,274 (5.1 %) AMC Charter 19,669 20,006 (1.7 %) 20,825 17,235 20.8
% Commercial Charter 23,990 21,095 13.7 % 21,878 16,947 29.1 %
Average Utilization (block hours per day) ACMI 13.4
13.7 (2.2 %) 13.6 12.3 10.6 % AMC Charter 11.0 9.8 12.2 % 9.3 7.7
20.8 % Commercial Charter 12.0 12.2 (1.6 %)
10.2 9.9 3.0 % All Operating Aircraft (2) 13.0 12.8 1.6 %
12.3 10.9 12.8 %
Fuel AMC Average fuel cost
per gallon $ 2.68 $ 2.68 0.0 % $ 2.68 $ 2.02 32.7 % Fuel gallons
consumed (000s) 13,992 13,916 0.5 % 58,022 58,709 (1.2 %)
Commercial Charter Average fuel cost per gallon $ 2.51 $
2.14 17.3 % $ 2.37 $ 1.93 22.8 % Fuel gallons consumed (000s)
16,094 16,336 (1.5 %) 61,154 42,742 43.1 % (1)
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. (2) Average of All Operating
Aircraft excludes Dry Leasing aircraft, which do not contribute to
block-hour volumes.
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