- 4Q14 Adjusted Net Income of $38.8 Million, $1.55 per
Share
- Full-Year Adjusted Net Income of $93.5 Million, $3.72
per Share
- 4Q14 Reported Net Income of $41.6 Million, $1.66 per
Share
- Full-Year Reported Net Income of $106.8 Million, $4.25
per Share
Atlas Air Worldwide Holdings, Inc. (Nasdaq:AAWW) today announced
adjusted net income attributable to common stockholders of $38.8
million, or $1.55 per diluted share, for the three months ended
December 31, 2014, compared with $41.8 million, or $1.66 per
diluted share, for the three months ended December 31, 2013.
On a reported basis, fourth-quarter 2014 net income attributable
to common stockholders totaled $41.6 million, or $1.66 per diluted
share, compared with $30.0 million, or $1.19 per diluted share, in
the fourth quarter of 2013.
Free cash flow of $97.2 million in the fourth quarter of 2014
compared with $92.0 million in the fourth quarter of 2013.
"2014 ended on a strong note, continuing the improvement we saw
throughout the year, and 2015 is starting out well," said William
J. Flynn, President and Chief Executive Officer. "After the first
significant peak-season in several years, airfreight activity in
the first quarter so far continues to reflect the broad-based
pickup in demand that began in 2014.
"Both operationally and financially, our fourth-quarter and
full-year performance stemmed from the leadership and strength of
our ACMI and Charter businesses, the growth of our Dry Leasing
platform, and ongoing efforts to drive efficiency and productivity
through our continuous improvement initiatives. In addition,
average utilization of our operating fleet rose during the year as
we capitalized on the improvement in market demand with our modern,
efficient aircraft and innovative services.
"We performed a substantial amount of conditions-based heavy
maintenance activity during the fourth quarter, primarily for
engine overhauls on our 747-400 fleet. This positions us to
continue to take advantage of market growth and business
opportunities ahead."
Fourth-Quarter Results
Profitability in our ACMI business during the fourth quarter
reflected an increase in aircraft utilization driven by market
demand. This was offset by an increase in heavy maintenance expense
on our 747-400 aircraft and engines.
Improved Charter contribution during the quarter reflected an
increase in cargo aircraft block-hour rates and utilization, driven
by market demand and our decision to reduce cargo capacity at the
end of 2013, and an increase in passenger block-hour volumes. These
were partially offset by increases in heavy maintenance expense as
well as crewmember travel and ground handling expenses from flying
to higher cost locations.
In Dry Leasing, revenue and profitability grew following the
acquisition of three 777 freighter aircraft in the first quarter of
2014, which raised our 777 fleet count to six. Each of these
aircraft is leased to a customer on a long-term basis.
Reported results in the fourth-quarter included an income tax
rate benefit of 7.0%, primarily due to an income tax benefit of
$10.7 million related to beneficial tax planning regarding the
treatment of extraterritorial income from the offshore leasing of
certain of our aircraft. Reported results also included a pretax
special charge of $5.5 million, primarily related to an aircraft
held for sale.
Beginning with the fourth quarter of 2014, we have combined our
commercial and military charter businesses in a single Charter
segment as we now assess operating results at that level. Our
decision recognizes the smaller size of our military business
compared with the past and the increased interchangeability of our
Charter aircraft between commercial and military
customers.
Full-Year Results
For the twelve months ended December 31, 2014, adjusted net
income attributable to common stockholders totaled $93.5 million,
or $3.72 per diluted share, compared with $96.8 million, or $3.78
per diluted share, for the twelve months ended December 31,
2013.
On a reported basis, full-year 2014 net income attributable to
common stockholders totaled $106.8 million, or $4.25 per diluted
share, compared with $93.8 million, or $3.66 per diluted share, in
2013.
Reported earnings in 2014 included an effective income tax rate
benefit of 14.2%, primarily due to an income tax benefit of $34.8
million related to beneficial tax planning regarding the tax
treatment of extraterritorial income from the offshore leasing of
certain of our aircraft. Our effective income tax rate also
reflected the ongoing beneficial impact of lower taxes for certain
foreign subsidiaries in our Dry Leasing business as well as the
favorable change in our deferred foreign tax rates.
Free cash flow totaled $247.8 million in 2014 compared with
$270.2 million in 2013.
Cash and Short-Term Investments
At December 31, 2014, our cash, cash equivalents, short-term
investments and restricted cash totaled $330.7 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 2014 primarily
related to the purchase of three 777 freighters 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 begin 2015 with a favorable view about the prospects for the
overall airfreight environment and the demand for our aircraft and
services. As a result, we look for moderate growth in adjusted
fully diluted earnings per share this year.
Our current outlook reflects two primary considerations.
First, industry forecasts indicate that global airfreight demand
will grow approximately 4% to 5% in 2015, outpacing projected
growth in global trade. Similar to 2014, achieving growth at this
level will require a continuation of positive global economic
activity driven by healthy consumer and business confidence.
Second, while our operating results are expected to benefit from
a reduction in maintenance expense in 2015 compared with 2014, we
face a continued contraction in military demand as U.S. military
activities overseas are scaled down.
We are seeing good airfreight demand in the first quarter of
2015 leading up to the start of the Lunar New Year holidays in Asia
on February 19. We expect earnings per share in the first quarter,
which is usually the lowest volume-generating and highest
maintenance expense quarter of the year, to be in line with or
better than our first-quarter 2014 adjusted EPS of $0.45.
At this point in the year, there is limited visibility into
second-half airfreight market demand. Typically, the majority of
our earnings are generated in the second half, and we will update
our expectations as the year progresses. Should commercial
airfreight continue to grow as anticipated in 2015, our business
initiatives and investments have positioned Atlas to be one of the
prime beneficiaries.
For the full year, we expect total block hours to be several
percentage points higher than 2014, with approximately 75% in ACMI
and the balance in Charter. ACMI block hours are anticipated to
reflect additional 747-8 and 747-400 flying as well as an increase
in CMI operations, driven primarily by the addition of four
customer-owned 767 freighters to our fleet in the first
quarter.
In March, we will place an additional 747-8 freighter into ACMI
service for the benefit of DHL Express. This aircraft will
initially replace an existing 747-400 operating for DHL today. The
placement reflects the continuing growth of DHL's transpacific
operations. To effect this, one 747-8 freighter currently in ACMI
service for Panalpina will transition promptly to DHL.
We will continue to operate a 747-8 freighter for Panalpina
between Europe, the United States and points in Mexico on an ACMI
basis. We have also entered into a long-term 747-400 charter
agreement with Panalpina as it expands its unique network and
extends its customer service. This new freighter service for
Panalpina commences in March.
Results in our Dry Leasing segment will continue to be driven
largely by the six 777 freighters that we acquired in 2013 and
2014, each with a long-term customer lease in place.
Aircraft maintenance expense in 2015 should total approximately
$175 million, and depreciation is expected to total approximately
$125 million. In addition, we anticipate an effective book income
tax rate of approximately 28%. Core capital expenditures, excluding
aircraft and engine purchases, are expected to total between $30 to
$40 million, mainly for spare parts for our fleet.
Mr. Flynn added: "In addition to expected earnings growth this
year, we continue to focus on the longer-term growth of our
business. With a resilient business model, strong customer
relationships and a superior fleet, we are well-positioned to
capitalize on market improvements, to generate substantial earnings
and cash flow, and to continue to enhance shareholder value."
Conference Call
Management will host a conference call to discuss Atlas Air
Worldwide's fourth-quarter and full-year 2014 financial and
operating results at 11:00 a.m. Eastern Time on Thursday, February
12, 2015.
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://edge.media-server.com/m/p/dunzmhep
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 18 by dialing (855) 859-2056
(domestic) and (404) 537-3406 (international) and using Access Code
74290072#.
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 a leading global provider of outsourced
aircraft and aviation operating services. It is the parent company
of Atlas Air, Inc. (Atlas) and Titan Aviation Holdings,
Inc. (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; 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 2015 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 Twelve
Months Ended |
|
December 31,
2014 |
December 31,
2013 |
December 31,
2014 |
December 31,
2013 |
|
|
|
|
|
Operating Revenue |
|
|
|
|
ACMI |
$ 209,162 |
$ 202,297 |
$ 778,091 |
$ 755,008 |
Charter |
251,214 |
251,125 |
906,676 |
852,452 |
Dry Leasing |
24,448 |
13,324 |
100,059 |
35,168 |
Other |
4,041 |
3,855 |
14,372 |
14,272 |
Total Operating Revenue |
$ 488,865 |
$ 470,601 |
$ 1,799,198 |
$ 1,656,900 |
|
|
|
|
|
Operating Expenses |
|
|
|
|
Aircraft fuel |
102,987 |
120,818 |
404,263 |
410,353 |
Salaries, wages and benefits |
81,506 |
79,920 |
311,143 |
299,136 |
Maintenance, materials and repairs |
59,051 |
29,820 |
203,567 |
162,972 |
Aircraft rent |
35,971 |
41,662 |
140,390 |
160,415 |
Navigation fees, landing fees, and other
rent |
37,770 |
31,882 |
131,138 |
90,733 |
Depreciation and amortization |
32,392 |
24,549 |
120,793 |
86,389 |
Passenger and ground handling
services |
20,714 |
20,394 |
86,820 |
72,503 |
Travel |
21,501 |
17,935 |
79,199 |
61,420 |
Loss (gain) on disposal of aircraft |
-- |
272 |
14,679 |
351 |
Special charge |
5,547 |
18,642 |
15,114 |
18,642 |
Other |
31,230 |
26,680 |
116,120 |
107,196 |
Total Operating Expenses |
428,669 |
412,574 |
1,623,226 |
1,470,110 |
Operating Income |
60,196 |
58,027 |
175,972 |
186,790 |
|
|
|
|
|
Non-operating Expenses
(Income) |
|
|
|
|
Interest income |
(4,446) |
(4,810) |
(18,480) |
(19,813) |
Interest expense |
25,475 |
21,948 |
104,252 |
83,659 |
Capitalized interest |
(30) |
(365) |
(453) |
(2,350) |
Loss on early extinguishment of debt |
-- |
-- |
-- |
5,518 |
Other expense (income), net |
273 |
539 |
1,104 |
1,954 |
Total Non-operating Expenses |
21,272 |
17,312 |
86,423 |
68,968 |
Income before income taxes |
38,924 |
40,715 |
89,549 |
117,822 |
Income tax expense (benefit) |
(2,720) |
12,513 |
(12,678) |
23,833 |
Net Income |
41,644 |
28,202 |
102,227 |
93,989 |
Less: Net income (loss) attributable
to noncontrolling interests |
-- |
(1,756) |
(4,530) |
152 |
Net Income Attributable to Common
Stockholders |
$ 41,644 |
$ 29,958 |
$ 106,757 |
$ 93,837 |
|
|
|
|
|
Earnings per share: |
|
|
|
|
Basic |
$ 1.68 |
$ 1.20 |
$ 4.26 |
$ 3.67 |
Diluted |
$ 1.66 |
$ 1.19 |
$ 4.25 |
$ 3.66 |
|
|
|
|
|
Weighted average
shares: |
|
|
|
|
Basic |
24,807 |
25,039 |
25,031 |
25,541 |
Diluted |
25,018 |
25,159 |
25,127 |
25,627 |
|
|
Atlas Air
Worldwide Holdings, Inc. |
Consolidated Balance
Sheets |
(in thousands, except share
data) |
(Unaudited) |
|
|
|
|
December 31,
2014 |
December 31,
2013 |
Assets |
|
|
Current Assets |
|
|
Cash and cash equivalents |
$ 298,601 |
$ 321,816 |
Short-term investments |
17,802 |
10,904 |
Restricted cash |
14,281 |
6,491 |
Accounts receivable, net of allowance of
$1,658 and $1,402, respectively |
162,092 |
132,159 |
Prepaid maintenance |
20,806 |
31,620 |
Deferred taxes |
40,923 |
54,001 |
Prepaid expenses and other current
assets |
51,599 |
36,962 |
Total current assets |
606,104 |
593,953 |
Property and Equipment |
|
|
Flight equipment |
3,448,791 |
2,969,379 |
Ground equipment |
51,418 |
46,951 |
Less: accumulated depreciation |
(348,036) |
(256,685) |
Purchase deposits for flight
equipment |
20,054 |
69,320 |
Property and equipment, net |
3,172,227 |
2,828,965 |
Other Assets |
|
|
Long-term investments and accrued
interest |
120,478 |
130,267 |
Deposits and other assets |
135,401 |
131,216 |
Intangible assets, net |
67,410 |
33,858 |
Total Assets |
$ 4,101,620 |
$ 3,718,259 |
|
|
|
Liabilities and Equity |
|
|
Current Liabilities |
|
|
Accounts payable |
$ 42,864 |
$ 65,367 |
Accrued liabilities |
251,594 |
194,292 |
Current portion of long-term debt1,2 |
190,340 |
157,486 |
Total current liabilities |
484,798 |
417,145 |
Other Liabilities |
|
|
Long-term debt1,2 |
1,782,744 |
1,539,139 |
Deferred taxes |
350,868 |
371,655 |
Other liabilities |
65,415 |
68,195 |
Total other liabilities |
2,199,027 |
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; 28,561,160 and 28,200,213 shares issued,
24,807,718 and 25,038,629 shares outstanding (net of treasury
stock), as of December 31, 2014 and December 31, 2013,
respectively |
286 |
282 |
Additional paid-in-capital |
573,133 |
561,481 |
Treasury stock, at cost; 3,753,442 and
3,161,584 shares, respectively |
(145,322) |
(125,826) |
Accumulated other comprehensive loss |
(9,572) |
(10,677) |
Retained earnings |
999,270 |
892,513 |
Total stockholders' equity |
1,417,795 |
1,317,773 |
Noncontrolling interest |
-- |
4,352 |
Total equity |
1,417,795 |
1,322,125 |
Total Liabilities and
Equity |
$ 4,101,620 |
$ 3,718,259 |
|
|
|
1 Balance sheet debt at
December 31, 2014 totaled $1,973.1 million, including the impact of
$35.9 million of unamortized discount. |
|
|
|
2 The face value of our debt
at December 31, 2014 totaled $2,009.0 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 Twelve
Months Ended |
|
December 31,
2014 |
December 31,
2013 |
|
|
|
Operating Activities: |
|
|
Net Income Attributable to Common
Stockholders |
$ 106,757 |
$ 93,837 |
Net income (loss) attributable to
noncontrolling interests |
(4,530) |
152 |
Net Income |
102,227 |
93,989 |
Adjustments to reconcile Net Income to net
cash provided by operating activities: |
|
|
Depreciation and amortization |
138,324 |
101,671 |
Accretion of debt securities
discount |
(7,947) |
(8,889) |
Provision for allowance for doubtful
accounts |
643 |
178 |
Special charge |
12,013 |
18,642 |
Loss on early extinguishment of debt |
-- |
5,518 |
Loss (gain) on disposal of aircraft |
14,679 |
351 |
Deferred taxes |
(12,714) |
22,856 |
Stock-based compensation expense |
13,606 |
16,690 |
Changes in: |
|
|
Accounts receivable |
(21,070) |
(6,029) |
Prepaid expenses and other current
assets |
27,079 |
(4,298) |
Deposits and other assets |
(3,474) |
4,106 |
Accounts payable and accrued
liabilities |
9,779 |
57,308 |
Net cash provided by operating
activities |
273,145 |
302,093 |
|
|
|
Investing Activities: |
|
|
Capital expenditures |
(24,920) |
(29,531) |
Purchase deposits and delivery payments
for flight equipment |
(519,399) |
(573,416) |
Changes in restricted cash |
(7,790) |
(6,491) |
Proceeds from short-term investments |
3,728 |
5,569 |
Proceeds from insurance |
-- |
9,109 |
Proceeds from disposal of aircraft |
-- |
4,780 |
Net cash used for investing activities |
(548,381) |
(589,980) |
|
|
|
Financing Activities: |
|
|
Proceeds from debt issuance |
572,552 |
709,484 |
Customer maintenance reserves
received |
17,555 |
2,907 |
Refund of accelerated share
repurchase |
-- |
21,886 |
Prepayment of accelerated share
repurchase |
-- |
(21,886) |
Proceeds from stock option exercises |
69 |
-- |
Purchase of treasury stock |
(19,496) |
(80,976) |
Excess tax benefit from stock-based
compensation expense |
8 |
465 |
Payment of debt issuance costs |
(17,117) |
(19,769) |
Payments of debt |
(301,550) |
(412,171) |
Net cash provided by financing
activities |
252,021 |
199,940 |
Net decrease in cash and cash
equivalents |
(23,215) |
(87,947) |
Cash and cash equivalents at the beginning of
period |
321,816 |
409,763 |
Cash and cash equivalents at the end of
period |
$ 298,601 |
$ 321,816 |
Non-cash Investing and Financing
Activities: |
|
|
Acquisition of flight equipment and assumed
debt |
$ -- |
$ 90,498 |
Acquisition of flight equipment included in
Accounts payable and accrued liabilities |
$ 29,087 |
$ 21,823 |
Disposition of aircraft included in Accounts
receivable |
$ 5,072 |
$ -- |
|
|
Atlas Air Worldwide
Holdings, Inc. |
Direct
Contribution |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
For the Three
Months Ended |
For the Twelve
Months Ended |
|
December 31,
2014 |
December 31,
2013 |
December 31,
2014 |
December 31,
2013 |
Operating Revenue: |
|
|
|
|
ACMI |
$ 209,162 |
$ 202,297 |
$ 778,091 |
$ 755,008 |
Charter |
251,214 |
251,125 |
906,676 |
852,452 |
Dry Leasing |
24,448 |
13,324 |
100,059 |
35,168 |
Other |
4,041 |
3,855 |
14,372 |
14,272 |
Total Operating Revenue |
$ 488,865 |
$ 470,601 |
$ 1,799,198 |
$ 1,656,900 |
|
|
|
|
|
Direct Contribution: |
|
|
|
|
ACMI |
$ 54,196 |
$ 70,235 |
$ 197,750 |
$ 227,829 |
Charter |
29,139 |
27,426 |
54,099 |
52,546 |
Dry Leasing |
7,594 |
5,723 |
33,224 |
14,017 |
Total Direct Contribution for
Reportable Segments |
$ 90,929 |
$ 103,384 |
$ 285,073 |
$ 294,392 |
|
|
|
|
|
Unallocated income and expenses, net |
(46,458) |
(43,755) |
(165,731) |
(152,059) |
Special charge |
(5,547) |
(18,642) |
(15,114) |
(18,642) |
Loss on early extinguishment of debt |
-- |
-- |
-- |
(5,518) |
Loss (gain) on disposal of aircraft |
-- |
(272) |
(14,679) |
(351) |
Income before Income
Taxes |
38,924 |
40,715 |
89,549 |
117,822 |
|
|
|
|
|
Interest income |
(4,446) |
(4,810) |
(18,480) |
(19,813) |
Interest expense |
25,475 |
21,948 |
104,252 |
83,659 |
Capitalized interest |
(30) |
(365) |
(453) |
(2,350) |
Loss on early extinguishment of debt |
-- |
-- |
-- |
5,518 |
Other expense (income), net |
273 |
539 |
1,104 |
1,954 |
Operating Income |
$ 60,196 |
$ 58,027 |
$ 175,972 |
$ 186,790 |
|
|
|
|
|
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, Charter, and Dry Leasing. Each segment
has different operating and economic characteristics. |
|
Direct Contribution consists of
income (loss) before taxes, excluding special charges, nonrecurring
items, losses (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 |
|
December 31,
2014 |
December 31,
2013 |
Percent Change |
|
|
|
|
Net Income Attributable to Common
Stockholders |
$ 41,644 |
$ 29,958 |
39.0% |
After-tax impact from: |
|
|
|
ETI tax benefit |
(10,742) |
-- |
|
Special charge1 |
7,024 |
11,714 |
|
Accrual for legal matters |
850 |
-- |
|
Loss on disposal of aircraft |
-- |
174 |
|
Adjusted Net Income Attributable to
Common Stockholders |
$ 38,776 |
$ 41,846 |
(7.3%) |
|
|
|
|
Diluted EPS |
$ 1.66 |
$ 1.19 |
39.5% |
After-tax impact from: |
|
|
|
ETI tax benefit |
(0.43) |
-- |
|
Special charge1 |
0.28 |
0.47 |
|
Accrual for legal matters |
0.03 |
-- |
|
Loss on disposal of aircraft |
-- |
0.01 |
|
Adjusted Diluted EPS |
$ 1.553 |
$ 1.663 |
(6.6%) |
|
|
|
|
|
For the Twelve
Months Ended |
|
December 31,
2014 |
December 31,
2013 |
Percent Change |
|
|
|
|
Net Income Attributable to Common
Stockholders |
$ 106,757 |
$ 93,837 |
13.8% |
After-tax impact from: |
|
|
|
ETI tax benefit |
(34,755) |
(14,160) |
|
Special charge1 |
10,930 |
11,714 |
|
Accrual for legal matters |
1,150 |
-- |
|
Loss on early extinguishment of
debt2 |
-- |
5,160 |
|
Loss on disposal of aircraft |
9,389 |
224 |
|
Adjusted Net Income Attributable to
Common Stockholders |
$ 93,471 |
$ 96,775 |
(3.4%) |
|
|
|
|
Diluted EPS |
$ 4.25 |
$ 3.66 |
16.1% |
After-tax impact from: |
|
|
|
ETI tax benefit |
(1.38) |
(0.55) |
|
Special charge1 |
0.43 |
0.46 |
|
Accrual for legal matters |
0.05 |
-- |
|
Loss on early extinguishment of
debt2 |
-- |
0.20 |
|
Loss on disposal of aircraft |
0.37 |
0.01 |
|
Adjusted Diluted EPS |
$ 3.72 |
$ 3.78 |
(1.6%) |
|
|
|
|
1 Included in Special charge in
2014 were a loss on an aircraft held for sale, employee termination
benefits, a loan reserve, and professional fees and tax adjustments
related to GSS. Included in Special charge in 2013 were lease
termination charges related to two leased 747-400BCFs and an
impairment charge for a customer relationship intangible
asset. |
|
|
|
|
2 Loss on early
extinguishment of debt was related to the financing of 747-8F and
777-200LRF 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 |
|
December 31,
2014 |
December 31,
2013 |
|
|
|
Net Cash Provided by Operating
Activities |
$ 104,617 |
$ 97,000 |
Less: |
|
|
Capital expenditures |
7,411 |
4,671 |
Capitalized interest |
30 |
365 |
Free Cash Flow1 |
$ 97,176 |
$ 91,964 |
|
|
|
|
|
|
|
For the Twelve
Months Ended |
|
December 31,
2014 |
December 31,
2013 |
|
|
|
Net Cash Provided by Operating
Activities |
$ 273,145 |
$ 302,093 |
Less: |
|
|
Capital expenditures |
24,920 |
29,531 |
Capitalized interest |
453 |
2,350 |
Free Cash Flow1 |
$ 247,772 |
$ 270,212 |
|
|
|
|
|
|
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 |
For the Twelve
Months Ended |
|
December 31,
2014 |
December 31,
2013 |
December 31,
2014 |
December 31,
2013 |
|
|
|
|
|
Income before income
taxes |
$ 38,924 |
$ 40,715 |
$ 89,549 |
$ 117,822 |
Special charge1 |
5,547 |
18,642 |
15,114 |
18,642 |
Accrual for legal matters |
850 |
-- |
1,319 |
-- |
Loss on early extinguishment of debt2 |
-- |
-- |
-- |
5,518 |
Loss (gain) on disposal of aircraft |
-- |
272 |
14,679 |
351 |
|
|
|
|
|
Adjusted pretax income |
45,321 |
59,629 |
121,661 |
142,333 |
|
|
|
|
|
Interest (income) expense, net |
20,999 |
16,773 |
85,319 |
61,496 |
Other non-operating
expenses (income) |
273 |
539 |
1,104 |
1,954 |
|
|
|
|
|
Adjusted operating
income |
66,593 |
76,941 |
207,084 |
205,783 |
|
|
|
|
|
Depreciation and amortization |
32,392 |
24,549 |
120,793 |
86,389 |
|
|
|
|
|
EBITDA, as adjusted3 |
98,985 |
101,490 |
327,877 |
292,172 |
|
|
|
|
|
Aircraft rent |
35,971 |
41,662 |
140,390 |
160,415 |
|
|
|
|
|
EBITDAR, as adjusted4 |
$ 134,956 |
$ 143,152 |
$ 468,267 |
$ 452,587 |
|
|
|
|
|
1 Included in Special charge in
2014 were a loss on an aircraft held for sale, employee termination
benefits, a loan reserve, and professional fees and tax adjustments
related to GSS. Included in Special charge in 2013 were lease
termination charges related to two leased 747-400BCFs and an
impairment charge for a customer relationship intangible
asset. |
|
|
|
|
|
2 Loss on early
extinguishment of debt was related to the financing of 747-8F and
777-200LRF aircraft. |
|
|
|
|
|
3 Adjusted EBITDA: Earnings
before interest, taxes, depreciation, amortization, special charge,
accrual for legal matters, loss on early extinguishment of debt,
and loss (gain) on disposal of aircraft, as applicable. |
|
|
|
|
|
4 Adjusted EBITDAR: Earnings
before interest, taxes, depreciation, amortization, aircraft rent
expense, special charge, accrual for legal matters, loss on early
extinguishment of debt, and loss (gain) on disposal of aircraft, as
applicable. |
|
|
Atlas Air Worldwide
Holdings, Inc. |
Operating Statistics
and Traffic Results |
(Unaudited) |
|
|
|
|
|
|
|
|
For the Three
Months Ended |
|
For the Twelve
Months Ended |
|
|
December
31, |
Increase/ |
December
31, |
Increase/ |
|
2014 |
2013 |
(Decrease) |
2014 |
2013 |
(Decrease) |
|
|
|
|
|
|
|
Block Hours |
|
|
|
|
|
|
ACMI |
31,272 |
30,084 |
1,188 |
115,042 |
115,358 |
(316) |
Charter |
|
|
|
|
|
|
Cargo |
9,467 |
9,906 |
(439) |
31,612 |
30,816 |
796 |
Passenger |
2,876 |
2,704 |
172 |
13,085 |
11,713 |
1,372 |
Nonrevenue |
555 |
395 |
160 |
1,351 |
1,050 |
301 |
Total Block Hours |
44,170 |
43,089 |
1,081 |
161,090 |
158,937 |
2,153 |
|
|
|
|
|
|
|
Revenue Per Block Hour |
|
|
|
|
|
|
ACMI |
$ 6,688 |
$ 6,724 |
$ (36) |
$ 6,764 |
$ 6,545 |
$ 219 |
Charter |
|
|
|
|
|
|
Cargo |
20,641 |
19,717 |
924 |
20,217 |
19,829 |
388 |
Passenger |
19,404 |
20,640 |
(1,236) |
20,449 |
20,609 |
(160) |
|
|
|
|
|
|
|
Average Utilization (block hours per
day) |
|
|
|
|
|
|
ACMI1 |
10.1 |
9.6 |
0.5 |
9.6 |
10.2 |
(0.6) |
Charter |
|
|
|
|
|
|
Cargo |
11.8 |
11.1 |
0.7 |
9.1 |
7.7 |
1.4 |
Passenger |
6.9 |
6.8 |
0.1 |
7.8 |
7.1 |
0.7 |
All Operating Aircraft1,2 |
10.2 |
9.7 |
0.5 |
9.4 |
9.4 |
-- |
|
|
|
|
|
|
|
Fuel |
|
|
|
|
|
|
Charter |
|
|
|
|
|
|
Average fuel cost per gallon |
$ 2.75 |
$ 3.19 |
$ (0.44) |
$ 3.07 |
$ 3.28 |
$ (0.21) |
Fuel gallons consumed (000s) |
37,445 |
37,893 |
(448) |
131,787 |
124,949 |
6,838 |
|
|
|
|
|
|
|
1 ACMI and All Operating
Aircraft averages in the fourth quarter and full-year 2014 reflect
the impact of increases in the number of CMI aircraft and amount of
CMI flying compared with the same periods 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 |
|
For the Twelve
Months Ended |
|
|
December
31, |
Increase/ |
December
31, |
Increase/ |
|
2014 |
2013 |
(Decrease) |
2014 |
2013 |
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Fleet (average
aircraft equivalents during the period) |
|
|
|
|
|
|
ACMI1 |
|
|
|
|
|
|
747-8F Cargo |
8.5 |
8.0 |
0.5 |
8.5 |
7.8 |
0.7 |
747-400 Cargo |
13.0 |
13.8 |
(0.8) |
12.0 |
12.6 |
(0.6) |
747-400 Dreamlifter |
2.9 |
2.6 |
0.3 |
3.1 |
1.8 |
1.3 |
767-300 Cargo |
2.0 |
2.0 |
-- |
2.0 |
1.8 |
0.2 |
767-200 Cargo |
5.0 |
5.0 |
-- |
5.0 |
5.0 |
-- |
747-400 Passenger |
1.4 |
1.7 |
(0.3) |
1.2 |
1.3 |
(0.1) |
767-300 Passenger |
-- |
-- |
-- |
-- |
0.2 |
(0.2) |
767-200 Passenger |
1.0 |
1.0 |
-- |
1.0 |
0.5 |
0.5 |
Total |
33.8 |
34.1 |
(0.3) |
32.8 |
31.0 |
1.8 |
Charter |
|
|
|
|
|
|
747-8F Cargo |
0.4 |
0.9 |
(0.5) |
0.5 |
0.6 |
(0.1) |
747-400 Cargo |
8.3 |
8.8 |
(0.5) |
9.0 |
10.3 |
(1.3) |
747-400 Passenger |
1.5 |
1.3 |
0.2 |
1.7 |
1.7 |
-- |
767-300 Passenger |
3.0 |
3.0 |
-- |
2.9 |
2.8 |
0.1 |
Total |
13.2 |
14.0 |
(0.8) |
14.1 |
15.4 |
(1.3) |
Dry Leasing |
|
|
|
|
|
|
777-200 Cargo |
6.0 |
3.0 |
3.0 |
6.0 |
1.7 |
4.3 |
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 |
10.0 |
7.0 |
3.0 |
10.0 |
5.7 |
4.3 |
Total Operating
Aircraft |
57.0 |
55.1 |
1.9 |
56.9 |
52.1 |
4.8 |
|
|
|
|
|
|
|
Out of Service2 |
1.0 |
1.1 |
(0.1) |
1.0 |
0.9 |
0.1 |
|
|
|
|
|
|
|
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. |
CONTACT: Dan Loh (Investors) - (914) 701-8200
Bonnie Rodney (Media) - (914) 701-8580
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