Will Discuss During Investor-Analyst Day
Presentations Today
Atlas Air Worldwide Holdings, Inc. (Nasdaq:AAWW) today said that it
is increasing its second-quarter and full-year 2018 earnings
outlooks.
Reflecting the demand for our aircraft and
services, we now anticipate our second-quarter adjusted income from
continuing operations, net of taxes, will grow by 40% to 45%
compared with first-quarter 2018 adjusted net income of $23.8
million, up from 30% to 35% growth expected previously.
For the full year, we expect our adjusted income
from continuing operations, net of taxes, to rise 35% to 40%
compared with 2017 adjusted net income of $133.7 million, an
increase from our prior outlook of low- to mid-30% growth.
Investor-Analyst Day Webcast
As previously announced, the company will
broadcast presentations by senior management at its
investor-analyst day today beginning at 2 p.m. Eastern time and
concluding at approximately 4 p.m.
Interested parties are invited to listen to the Webcast live
over the Internet at:
https://edge.media-server.com/m6/p/za8gzzj6
For those unable to listen to the live Webcast,
an archived replay will be available through the company’s website
(www.atlasair.com) shortly following the conclusion of management’s
presentations.
About Non-GAAP Financial
Measures
We provide guidance on an adjusted basis because
we are unable to predict, with reasonable certainty, the effects of
outstanding warrants and other items that could be material to our
reported results.
To supplement our financial statements presented
in accordance with U.S. GAAP, we present certain non-GAAP financial
measures to assist in the evaluation of our business performance.
These non-GAAP measures include Adjusted income from continuing
operations, net of taxes, which excludes certain noncash income and
expenses, and items impacting year-over-year comparisons of our
results. These non-GAAP measures may not be comparable to similarly
titled measures used by other companies and should not be
considered in isolation or as a substitute for Income from
continuing operations, net of taxes, which is the most directly
comparable measure 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, when considered together with
the corresponding U.S. GAAP financial measures and the
reconciliations to those measures, provide meaningful supplemental
information to assist investors and analysts in understanding our
financial results and assessing our prospects for future
performance.
For example, Adjusted income from continuing
operations, net of taxes, provides a more comparable basis to
analyze operating results and earnings and is a measure commonly
used by shareholders to measure our performance. In addition,
management’s incentive compensation is determined, in part, by
using Adjusted income from continuing operations, net of taxes.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider
of outsourced aircraft and aviation operating services. It is the
parent company of Atlas Air, Inc., Southern Air Holdings, Inc., and
Titan Aviation Holdings, Inc., and is the majority shareholder of
Polar Air Cargo Worldwide, Inc. Our companies operate the world's
largest fleet of 747 freighter aircraft and provide customers a
broad array of Boeing 747, 777, 767, 757 and 737 aircraft for
domestic, regional and international cargo and passenger
operations.
Atlas Air Worldwide's press releases, SEC
filings, and other information may be accessed through the
company's home page, www.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. Those statements are based on management’s beliefs,
plans, expectations and assumptions, and on information currently
available to management. Generally, the words “will,” “may,”
“should,” “expect,” “anticipate,” “intend,” “plan,” “continue,”
“believe,” “seek,” “project,” “estimate,” and similar expressions
used in this release that do not relate to historical facts are
intended to identify forward-looking statements.
Such forward-looking statements speak only as of
the date of this release. They are and will be, as the case may be,
subject to many risks, uncertainties and factors relating to the
operations and business environments of Atlas Air Worldwide and its
subsidiaries (collectively, the “companies”) that may cause the
actual results of the companies to be materially different from any
future results, express or implied, in such forward-looking
statements.
Factors that could cause actual results to
differ materially from these forward-looking statements include,
but are not limited to, the following: our ability to effectively
operate the network service contemplated by our agreements with
Amazon, including the cost and timing of securing any aircraft
necessary to fulfill our agreements; the risk that the anticipated
benefits of our agreements with Amazon will not be realized when
expected, or at all; the possibility that Amazon may terminate its
agreements with the companies; the ability of the companies to
operate pursuant to the terms of their financing facilities; the
ability of the companies to obtain and maintain normal terms with
vendors and service providers; the companies’ ability to maintain
contracts that are critical to their operations; the ability of the
companies to fund and execute their business plan; the ability of
the companies to attract, motivate and/or retain key executives,
pilots and associates; the ability of the companies to attract and
retain customers; the continued availability of our wide-body
aircraft; demand for cargo services in the markets in which the
companies operate; 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, work stoppages and
service slowdowns; the outcome of pending negotiations with our
pilots’ union; 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; changes
to our provisional estimates of the impact of the U.S. Tax Cuts and
Jobs Act of 2017; 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 2018 or
thereafter.
Atlas Air Worldwide assumes no obligation to
update such statements contained in this release to reflect actual
results, changes in assumptions or changes in other factors
affecting such estimates other than as required by law and
expressly disclaims any obligation to revise or update publically
any forward-looking statement to reflect future events or
circumstances.
Atlas Air Worldwide Holdings, Inc.
Reconciliation to Non-GAAP Measures (in thousands, except
per share data) (Unaudited)
|
|
|
For the Three Months Ended |
|
|
|
|
March 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations, net of taxes |
|
|
$ |
9,628 |
|
|
|
Impact from: |
|
|
|
|
|
|
|
Gain on
disposal of aircraft |
|
|
|
- |
|
|
|
Costs
associated with transactions |
|
|
|
270 |
|
|
|
Accrual
for legal matters and professional fees |
|
|
|
218 |
|
|
|
Noncash
expenses and income, net |
|
|
|
6,675 |
|
|
|
Unrealized loss on financial instruments |
|
|
|
7,740 |
|
|
|
Income
tax effect of reconciling items |
|
|
|
(747 |
) |
|
|
Adjusted income
from continuing operations, net of taxes |
|
|
$ |
23,784 |
|
|
|
|
|
|
For the Twelve Months Ended |
|
|
|
|
|
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations, net of taxes |
|
|
$ |
224,338 |
|
|
|
Impact from: |
|
|
|
|
|
|
|
U.S. Tax
Cuts and Jobs Act bonus |
|
|
|
3,684 |
|
|
|
Loss
(gain) on disposal of aircraft |
|
|
|
(31 |
) |
|
|
Special
charge |
|
|
|
106 |
|
|
|
Costs
associated with transactions |
|
|
|
4,772 |
|
|
|
Accrual
for legal matters and professional fees |
|
|
|
4,129 |
|
|
|
Noncash
expenses and income, net |
|
|
|
17,934 |
|
|
|
Charges
associated with refinancing debt |
|
|
|
167 |
|
|
|
Unrealized loss on financial instruments |
|
|
|
12,533 |
|
|
|
Income
tax effect of reconciling items |
|
|
|
(3,962 |
) |
|
|
Income
tax effect of U.S. Tax Cuts and Jobs Act |
|
|
|
(129,977 |
) |
|
|
Adjusted income
from continuing operations, net of taxes |
|
|
$ |
133,693 |
|
|
|
Contacts: Dan Loh (Investors) – (914) 701-8200 Elizabeth Roach
(Media) – (914) 701-6576
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