Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced
record 2021 results, including revenue that rose to $4.0 billion,
and net income that increased to $493.3 million, or $16.16 per
diluted share, compared with $3.2 billion in revenue, and net
income of $360.3 million, or $13.50 per diluted share, in 2020.
On an adjusted basis, EBITDA increased to a
record $1.1 billion in 2021 compared with $844.2 million in 2020.
For the twelve months ended December 31, 2021, adjusted net income
rose to a record $551.0 million, or $18.51 per diluted share,
compared with $379.0 million, or $13.67 per diluted share, in
2020.
“2021 was another outstanding year with
excellent financial and operating performance. Our greatest
strength is our people and I’d like to thank everyone at Atlas for
working together to deliver these very strong results. We are also
very pleased to have achieved a long-term labor agreement with our
pilots that recognizes their significant contributions to
Atlas. With the strength, flexibility and resiliency of our
global business model, our experienced and dedicated team delivered
high-quality service to our customers in an operating environment
with persistent pandemic-related obstacles,” said Atlas Air
Worldwide President and Chief Executive Officer John W.
Dietrich.
“We are leveraging our world-class fleet and
global operating capabilities to increase aircraft utilization and
capitalize on strong demand for our services and dedicated
freighters, as well as on higher airfreight yields.”
He continued: “We have now placed our new
747-8Fs under long-term agreements, enhanced numerous long-term
contracts with strategic customers and further diversified our
customer base. In 2021, we deepened relationships with valued
customers, including Cainiao, CEVA Logistics, DB Schenker, DHL,
DSV, FedEx, Flexport, Geodis, HP Inc., Icelandair, JAS,
Kuehne+Nagel, SF Group and UPS.
“We take a disciplined and balanced approach to
capital allocation. We have strengthened our balance sheet, made
significant investments in our fleet, including new 747-8 and 777
freighter aircraft, and are returning capital to our shareholders.
Consistent with our balanced capital allocation approach, our Board
has authorized a new $200 million share repurchase program, and we
are starting by implementing $100 million in accelerated
repurchases.
“Atlas is very well positioned for the future.
We have a dedicated and talented team of employees, a strong
balance sheet, a formidable fleet of aircraft, an unparalleled
network of customers and unrivaled global operating capabilities.
We also have a strong position and look forward to growing our
Titan dry leasing business. And our strategic focus on express,
e-Commerce and fast-growing markets will continue to drive our
business forward.”
Mr. Dietrich added: “We expect strong
performance in the first quarter of 2022, with adjusted EBITDA and
adjusted net income similar to the first quarter of 2021. We also
anticipate revenue of about $1.0 billion from flying approximately
85,000 block hours.
“This outlook reflects higher yields, including
the contribution from numerous new or enhanced long-term customer
contracts, as well as higher pilot costs from our new joint
collective bargaining agreement that went into effect in September
2021.
“Due to the uncertainty related to the pandemic,
ongoing supply chain disruptions and other factors, we are not
providing additional guidance at this time.”
Full-Year Results
Volumes in 2021 grew to 364,061 block hours
compared with 344,821 in 2020, with revenue increasing to $4.0
billion in 2021 from $3.2 billion in 2020.
For the twelve months ended December 31, 2021,
our reported net income rose to $493.3 million, or $16.16 per
diluted share, compared with $360.3 million, or $13.50 per diluted
share, in 2020.
On an adjusted basis, EBITDA grew to $1.1
billion in 2021 compared with $844.2 million in 2020. For the
twelve months ended December 31, 2021, adjusted net income
increased to $551.0 million, or $18.51 per diluted share, compared
with $379.0 million, or $13.67 per diluted share, in 2020.
Reported results in 2021 included an effective
income tax rate of 23.8%. On an adjusted basis, our results
reflected an effective income tax rate of 22.0%.
Fourth-Quarter Results
Volumes in the fourth quarter of 2021 totaled
91,985 block hours compared with 96,079 in the fourth quarter of
2020, with revenue rising to $1.2 billion compared with $932.5
million in the prior-year quarter.
For the three months ended December 31, 2021,
our reported net income totaled $176.7 million, or $5.55 per
diluted share, compared with net income of $184.0 million, or $6.15
per diluted share, in the fourth quarter of 2020.
On an adjusted basis, EBITDA was $361.8 million
in the fourth quarter this year compared with $279.7 million in the
fourth quarter of 2020. Adjusted net income in the fourth quarter
of 2021 totaled $211.6 million, or $7.05 per diluted share,
compared with $143.2 million, or $4.83 per diluted share, in the
prior-year period.
Reported earnings in the fourth quarter of 2021
also included an effective income tax rate of 24.3%. On an adjusted
basis, our results reflected an effective income tax rate of
21.7%.
Higher Airline Operations revenue primarily
reflected an increase in the average rate per block hour. The
higher average rate per block hour was primarily due to an
increased proportion of higher-yielding flying, including the
impact of new and extended long-term contracts, the ongoing
reduction of available cargo capacity in the market, the continued
disruption of global supply chains, as well as higher fuel costs.
Block-hour volumes during the period reflected a reduction in less
profitable smaller gauge CMI service flying, partially offset by
our ability to increase the utilization of our current fleet to
meet strong customer demand. Block-hour volumes benefited from the
operation of a 747-400 freighter we reactivated during the fourth
quarter of 2020.
Higher Airline Operations segment contribution
in the fourth quarter of 2021 was primarily driven by the positive
factors benefiting segment revenue mentioned above as well as lower
heavy maintenance expense. These improvements were partially offset
by higher pilot costs related to our new joint collective
bargaining agreement (JCBA).
In Dry Leasing, segment revenue and contribution
in the fourth quarter of 2021 were relatively unchanged compared
with the prior-year period.
Unallocated income and expenses, net, increased
during the quarter, primarily due to $67.2 million in CARES Act
grant income in 2020 and a $14.1 million increase related to
adjustments to paid time-off benefits in our new JCBA in 2021 (both
of which were excluded from our adjusted results), as well as a
$6.6 million reduction in refunds of aircraft rent paid in previous
years.
Fleet Management
We have now placed all four of our new and
incoming 747-8Fs under long-term agreements. We expect delivery of
these aircraft between May and October this year.
In addition, we look forward to the deliveries
and placements of the four new 777-200LRFs we recently announced,
for which there is very strong demand. We expect one to be
delivered late in the fourth quarter of this year and three more
throughout 2023.
As previously disclosed, we purchased six of our
existing 747-400Fs during 2021 that were formerly on lease to us.
We are also purchasing another five of our other 747-400Fs at the
end of their leases during the course of this year, which range
from February to December.
Acquiring these widebody freighters underscores
our confidence in the demand for dedicated international airfreight
capacity, particularly in express, e-Commerce and fast-growing
global markets. These investments are consistent with our long-term
strategic growth plan and will provide customers with modern and
environmentally-efficient aircraft, which will drive strong returns
for Atlas in the years ahead.
Cash
At December 31, 2021, our cash, including cash
equivalents and restricted cash, totaled $921.0 million compared
with $856.3 million at December 31, 2020.
The increase resulted from cash provided by
operating activities, partially offset by cash used for investing
and financing activities.
Net cash used for investing activities during
2021 primarily related to payments for flight equipment and
modifications, including all pre-delivery payments for 747-8F
aircraft, as well as capital expenditures, spare engines and GEnx
performance upgrade kits.
Net cash used for financing activities during
the period primarily related to payments on debt obligations,
partially offset by proceeds from debt issuance.
Share Repurchases
In February 2022, our Board of Directors
approved the establishment of a new share repurchase program
authorizing up to $200.0 million of our common stock. Purchases may
be made at our discretion in the form of accelerated share
repurchase programs, open market repurchase programs, privately
negotiated transactions, or a combination of these methods.
As part of the share repurchase program, the
company will enter into a $100.0 million accelerated share
repurchase program (ASR). Purchases under the ASR are expected to
be completed by the end of the second quarter.
Outlook*
We expect strong performance in the first
quarter of 2022, with adjusted EBITDA and adjusted net income
similar to the first quarter of 2021. We anticipate revenue of
about $1.0 billion from flying approximately 85,000 block
hours.
This outlook reflects higher yields, including
the contribution from numerous new or enhanced long-term customer
contracts, as well as higher pilot costs from our new JCBA.
We expect first-quarter results to continue to
be impacted by ongoing pandemic-related expenses, including premium
pay for employees flying into locations significantly impacted by
COVID-19 and other operational costs, including for regulatory
compliance and providing a safe working environment for our
employees.
For the full year in 2022, we expect aircraft
maintenance expense to be similar to 2021, and depreciation and
amortization to total about $300 million. In addition, core capital
expenditures, which exclude aircraft and engine purchases, are
projected to total approximately $135 to $145 million, mainly for
parts and components for our fleet.
Due to the uncertainty related to the pandemic,
ongoing supply chain disruptions and other factors, we are not
providing additional guidance at this time.
Other than with regard to revenue, we provide
guidance on an adjusted basis because we are unable to predict with
reasonable certainty and without unreasonable effort the effects on
future gains and losses on asset sales, special charges and other
unanticipated items that could be material to our reported
results.*
Conference Call
As previously announced, management will host a
conference call to discuss Atlas Air Worldwide’s fourth-quarter and
full-year 2021 financial and operating results at 11:00 a.m.
Eastern Time on Thursday, February 17, 2022.
Interested parties may listen to the call live at Atlas Air
Worldwide’s Investor site or at
https://edge.media-server.com/mmc/p/whtitre6.
For those unable to listen to the live call, a
replay will be archived on the Investor site following the call. A
replay will also be available through February 24 by dialing (855)
859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.)
and using Access Code 9953709#.
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 Adjusted EBITDA; Adjusted net
income; Adjusted Diluted EPS; Adjusted effective tax rate; and Free
Cash Flow, which exclude 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 Net income; Diluted EPS; Effective
tax rate; and Net Cash Provided by Operating Activities, which are
the most directly comparable measures of performance prepared in
accordance with U.S. GAAP, respectively.
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 EBITDA; Adjusted net
income; and Adjusted Diluted EPS provide a more comparable basis to
analyze operating results and earnings and are measures commonly
used by shareholders to measure our performance. In addition,
management’s incentive compensation is determined, in part, by
using Adjusted EBITDA and Adjusted net income.
- Adjusted effective tax rate
provides insight into the tax effects of our ongoing business
operations.
- Free Cash Flow helps investors
assess our ability, over the long term, to create value for our
shareholders as it represents cash available to execute our capital
allocation strategy.
*Other than with regard to revenue, we provide
guidance only on an adjusted basis and are unable to provide
forward-looking guidance on a U.S. GAAP basis or a reconciliation
to the most directly comparable U.S. GAAP measures because we are
unable to predict with reasonable certainty and without
unreasonable effort, the ultimate outcome of certain significant
items, including future gains and losses on asset sales, special
charges and other unanticipated items. These items are uncertain,
depend on various factors, and could have a material impact on our
U.S. GAAP results.
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. 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 the broadest array of
Boeing 747, 777, 767 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.atlasairworldwide.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,” “could,” “would,” “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; 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; changes in U.S. and non-U.S. government trade and tax
policies; economic conditions; the impact of geographical events or
health epidemics such as the COVID-19 pandemic; the impact of
COVID-19 vaccine mandates; our compliance with the requirements and
restrictions under the Payroll Support Program; the effects of any
hostilities or act of war (in the Middle East or elsewhere) or any
terrorist attack; significant data breach or disruption of our
information technology systems; labor costs and relations, work
stoppages and service slowdowns; financing costs; the cost and
availability of war risk insurance; aviation fuel costs;
security-related costs; competitive pressures on pricing
(especially from lower-cost competitors); volatility in the
international currency markets; geopolitical events; weather
conditions; natural disasters; government legislation and
regulation; border restrictions; 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 2022 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 publicly any
forward-looking statement to reflect future events or
circumstances.
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, 2021 |
|
|
December 31, 2020 |
|
|
December31, 2021 |
|
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenue |
|
$ |
1,162,997 |
|
|
$ |
932,475 |
|
|
$ |
4,030,829 |
|
|
$ |
3,211,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits |
|
|
282,023 |
|
|
|
203,363 |
|
|
|
924,440 |
|
|
|
737,963 |
|
Aircraft fuel |
|
|
230,470 |
|
|
|
130,976 |
|
|
|
824,928 |
|
|
|
440,649 |
|
Maintenance, materials and repairs |
|
|
116,038 |
|
|
|
127,211 |
|
|
|
472,537 |
|
|
|
506,297 |
|
Depreciation and amortization |
|
|
73,291 |
|
|
|
68,667 |
|
|
|
281,209 |
|
|
|
257,672 |
|
Navigation fees, landing fees and other rent |
|
|
45,142 |
|
|
|
45,198 |
|
|
|
184,060 |
|
|
|
155,107 |
|
Travel |
|
|
42,401 |
|
|
|
40,043 |
|
|
|
162,986 |
|
|
|
154,792 |
|
Passenger and ground handling services |
|
|
35,125 |
|
|
|
40,467 |
|
|
|
156,962 |
|
|
|
138,822 |
|
Aircraft rent |
|
|
13,817 |
|
|
|
24,343 |
|
|
|
67,745 |
|
|
|
96,865 |
|
Loss (gain) on disposal of aircraft |
|
|
- |
|
|
|
(370 |
) |
|
|
(794 |
) |
|
|
(7,248 |
) |
Special charge |
|
|
- |
|
|
|
(216 |
) |
|
|
- |
|
|
|
16,265 |
|
Transaction-related expenses |
|
|
515 |
|
|
|
494 |
|
|
|
1,001 |
|
|
|
2,780 |
|
Other |
|
|
61,095 |
|
|
|
58,455 |
|
|
|
244,461 |
|
|
|
216,384 |
|
Total Operating Expenses |
|
|
899,917 |
|
|
|
738,631 |
|
|
|
3,319,535 |
|
|
|
2,716,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
263,080 |
|
|
|
193,844 |
|
|
|
711,294 |
|
|
|
494,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating Expenses
(Income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(164 |
) |
|
|
(147 |
) |
|
|
(723 |
) |
|
|
(1,076 |
) |
Interest expense |
|
|
26,147 |
|
|
|
27,886 |
|
|
|
107,492 |
|
|
|
114,635 |
|
Capitalized interest |
|
|
(2,860 |
) |
|
|
(397 |
) |
|
|
(8,316 |
) |
|
|
(925 |
) |
Loss on early extinguishment of debt |
|
|
6,042 |
|
|
|
- |
|
|
|
6,042 |
|
|
|
81 |
|
Unrealized loss (gain) on financial instruments |
|
|
- |
|
|
|
(2,298 |
) |
|
|
113 |
|
|
|
71,053 |
|
Other (income) expense, net |
|
|
469 |
|
|
|
(73,661 |
) |
|
|
(40,705 |
) |
|
|
(185,742 |
) |
Total Non-operating Expenses (Income) |
|
|
29,634 |
|
|
|
(48,617 |
) |
|
|
63,903 |
|
|
|
(1,974 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
233,446 |
|
|
|
242,461 |
|
|
|
647,391 |
|
|
|
496,742 |
|
Income tax expense |
|
|
56,707 |
|
|
|
58,494 |
|
|
|
154,074 |
|
|
|
136,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
176,739 |
|
|
$ |
183,967 |
|
|
$ |
493,317 |
|
|
$ |
360,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
6.07 |
|
|
$ |
6.72 |
|
|
$ |
17.06 |
|
|
$ |
13.64 |
|
Diluted |
|
$ |
5.55 |
|
|
$ |
6.15 |
|
|
$ |
16.16 |
|
|
$ |
13.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
29,107 |
|
|
|
27,395 |
|
|
|
28,910 |
|
|
|
26,408 |
|
Diluted |
|
|
31,821 |
|
|
|
29,666 |
|
|
|
30,543 |
|
|
|
26,690 |
|
Atlas Air Worldwide Holdings,
Inc.Consolidated Balance Sheets(in
thousands, except share data)(Unaudited)
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
910,965 |
|
|
$ |
845,589 |
|
Restricted cash |
|
|
10,052 |
|
|
|
10,692 |
|
Accounts receivable, net of allowance of $4,003 and $1,233,
respectively |
|
|
305,905 |
|
|
|
265,521 |
|
Prepaid expenses, assets held for sale and other current
assets |
|
|
99,100 |
|
|
|
95,919 |
|
Total current assets |
|
|
1,326,022 |
|
|
|
1,217,721 |
|
Property and
Equipment |
|
|
|
|
|
|
|
|
Flight equipment |
|
|
5,449,100 |
|
|
|
5,061,387 |
|
Ground equipment |
|
|
101,824 |
|
|
|
86,670 |
|
Less: accumulated depreciation |
|
|
(1,319,636 |
) |
|
|
(1,147,613 |
) |
Flight equipment purchase deposits and modifications in
progress |
|
|
352,422 |
|
|
|
110,150 |
|
Property and equipment, net |
|
|
4,583,710 |
|
|
|
4,110,594 |
|
Other
Assets |
|
|
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
138,744 |
|
|
|
255,805 |
|
Deferred costs and other assets |
|
|
329,971 |
|
|
|
374,242 |
|
Intangible assets, net and goodwill |
|
|
64,796 |
|
|
|
70,826 |
|
Total
Assets |
|
$ |
6,443,243 |
|
|
$ |
6,029,188 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity |
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
82,885 |
|
|
$ |
107,604 |
|
Accrued liabilities |
|
|
641,978 |
|
|
|
583,160 |
|
Current portion of long-term debt and finance leases |
|
|
639,811 |
|
|
|
298,690 |
|
Current portion of long-term operating leases |
|
|
55,383 |
|
|
|
157,732 |
|
Total current liabilities |
|
|
1,420,057 |
|
|
|
1,147,186 |
|
Other
Liabilities |
|
|
|
|
|
|
|
|
Long-term debt and finance leases |
|
|
1,655,075 |
|
|
|
2,020,451 |
|
Long-term operating leases |
|
|
166,022 |
|
|
|
318,850 |
|
Deferred taxes |
|
|
354,798 |
|
|
|
203,586 |
|
Financial instruments and other liabilities |
|
|
37,954 |
|
|
|
77,576 |
|
Total other liabilities |
|
|
2,213,849 |
|
|
|
2,620,463 |
|
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; 100,000,000 shares authorized;
34,707,860 and 32,877,533 shares issued, 29,215,702 and 27,517,297
shares outstanding (net of treasury stock), as of December 31,
2021 and December 31, 2020, respectively |
|
|
347 |
|
|
|
329 |
|
Additional paid-in capital |
|
|
934,516 |
|
|
|
873,874 |
|
Treasury stock, at cost; 5,492,158 and 5,360,236 shares,
respectively |
|
|
(225,461 |
) |
|
|
(217,889 |
) |
Accumulated other comprehensive loss |
|
|
(511 |
) |
|
|
(1,904 |
) |
Retained earnings |
|
|
2,100,446 |
|
|
|
1,607,129 |
|
Total stockholders’ equity |
|
|
2,809,337 |
|
|
|
2,261,539 |
|
Total Liabilities and
Equity |
|
$ |
6,443,243 |
|
|
$ |
6,029,188 |
|
1 Balance sheet debt at December 31, 2021
totaled $2,294.9 million, including the impact of $31.5 million of
unamortized discount and debt issuance costs of $22.7 million,
compared with $2,319.1 million, including the impact of $50.6
million of unamortized discount and debt issuance costs of $29.3
million at December 31, 2020. 2 The face value of our debt at
December 31, 2021 totaled $2,349.1 million, compared with $2,399.0
million on December 31, 2020.
Atlas Air Worldwide Holdings,
Inc.Consolidated Statements of Cash
Flows(in thousands)(Unaudited)
|
|
For the Twelve Months Ended |
|
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
Operating
Activities: |
|
|
|
|
|
|
|
|
Net Income |
|
$ |
493,317 |
|
|
$ |
360,286 |
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile Net
Income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
357,330 |
|
|
|
328,101 |
|
Accretion of debt securities discount |
|
|
- |
|
|
|
(2 |
) |
Provision for (reversal of) expected credit losses |
|
|
(378 |
) |
|
|
463 |
|
Loss on early extinguishment of debt |
|
|
6,042 |
|
|
|
81 |
|
Special charge, net of cash payments |
|
|
- |
|
|
|
16,265 |
|
Unrealized loss on financial instruments |
|
|
113 |
|
|
|
71,053 |
|
Gain on disposal of aircraft |
|
|
(794 |
) |
|
|
(7,248 |
) |
Deferred taxes |
|
|
152,399 |
|
|
|
133,598 |
|
Stock-based compensation |
|
|
14,014 |
|
|
|
21,997 |
|
Changes
in: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(37,800 |
) |
|
|
26,132 |
|
Prepaid expenses, current assets and other assets |
|
|
(49,763 |
) |
|
|
(56,716 |
) |
Accounts payable, accrued liabilities and other liabilities |
|
|
(11,496 |
) |
|
|
115,532 |
|
Net cash provided by operating
activities |
|
|
922,984 |
|
|
|
1,009,542 |
|
Investing
Activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(90,288 |
) |
|
|
(78,933 |
) |
Purchase deposits and payments for flight equipment and
modifications |
|
|
(407,684 |
) |
|
|
(184,273 |
) |
Investment in joint ventures |
|
|
(4,893 |
) |
|
|
(9,298 |
) |
Proceeds from investments |
|
|
- |
|
|
|
881 |
|
Proceeds from disposal of aircraft |
|
|
9,470 |
|
|
|
126,335 |
|
Net cash used for investing
activities |
|
|
(493,395 |
) |
|
|
(145,288 |
) |
Financing
Activities: |
|
|
|
|
|
|
|
|
Proceeds from debt issuance |
|
|
212,717 |
|
|
|
417,733 |
|
Payment of debt issuance costs |
|
|
(9,541 |
) |
|
|
(6,100 |
) |
Payments of debt and finance lease obligations |
|
|
(542,594 |
) |
|
|
(429,749 |
) |
Proceeds from revolving credit facility |
|
|
- |
|
|
|
75,000 |
|
Payment of revolving credit facility |
|
|
- |
|
|
|
(175,000 |
) |
Customer maintenance reserves and deposits received |
|
|
17,745 |
|
|
|
15,168 |
|
Customer maintenance reserves paid |
|
|
(35,608 |
) |
|
|
(14,437 |
) |
Treasury shares withheld for payment of taxes |
|
|
(7,572 |
) |
|
|
(4,018 |
) |
Net cash used for financing
activities |
|
|
(364,853 |
) |
|
|
(121,403 |
) |
Net increase in cash, cash
equivalents and restricted cash |
|
|
64,736 |
|
|
|
742,851 |
|
Cash, cash equivalents and
restricted cash at the beginning of period |
|
|
856,281 |
|
|
|
113,430 |
|
Cash, cash equivalents and
restricted cash at the end of period |
|
$ |
921,017 |
|
|
$ |
856,281 |
|
|
|
|
|
|
|
|
|
|
Noncash Investing and
Financing Activities: |
|
|
|
|
|
|
|
|
Acquisition of property and equipment included in Accounts payable
and accrued liabilities |
|
$ |
38,985 |
|
|
$ |
36,619 |
|
Acquisition of property and equipment acquired under operating
leases |
|
$ |
16,117 |
|
|
$ |
91,538 |
|
Acquisition of flight equipment under finance leases |
|
$ |
191,994 |
|
|
$ |
18,476 |
|
Customer maintenance reserves settled with sale of aircraft |
|
$ |
- |
|
|
$ |
6,497 |
|
Issuance of shares related to settlement of warrant liability |
|
$ |
31,583 |
|
|
$ |
49,545 |
|
Atlas Air Worldwide Holdings,
Inc.Direct Contribution(in
thousands)(Unaudited)
|
|
For the Three Months Ended |
|
|
For the Twelve Months Ended |
|
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
Operating Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Airline Operations |
|
$ |
1,125,786 |
|
|
$ |
896,936 |
|
|
$ |
3,888,601 |
|
|
$ |
3,066,399 |
|
Dry Leasing |
|
|
41,671 |
|
|
|
41,609 |
|
|
|
163,365 |
|
|
|
165,181 |
|
Customer incentive asset
amortization |
|
|
(10,906 |
) |
|
|
(10,676 |
) |
|
|
(44,162 |
) |
|
|
(39,090 |
) |
Other |
|
|
6,446 |
|
|
|
4,606 |
|
|
|
23,025 |
|
|
|
18,626 |
|
Total Operating
Revenue |
|
$ |
1,162,997 |
|
|
$ |
932,475 |
|
|
$ |
4,030,829 |
|
|
$ |
3,211,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
Contribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Airline Operations |
|
$ |
354,684 |
|
|
$ |
256,624 |
|
|
$ |
1,020,887 |
|
|
$ |
739,619 |
|
Dry Leasing |
|
|
10,822 |
|
|
|
11,023 |
|
|
|
42,587 |
|
|
|
41,070 |
|
Total Direct Contribution
for Reportable Segments |
|
|
365,506 |
|
|
|
267,647 |
|
|
|
1,063,474 |
|
|
|
780,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated income and
(expenses), net |
|
|
(125,503 |
) |
|
|
(27,576 |
) |
|
|
(409,721 |
) |
|
|
(201,016 |
) |
Loss on early extinguishment of
debt |
|
|
(6,042 |
) |
|
|
- |
|
|
|
(6,042 |
) |
|
|
(81 |
) |
Unrealized gain (loss) on
financial instruments |
|
|
- |
|
|
|
2,298 |
|
|
|
(113 |
) |
|
|
(71,053 |
) |
Special charge |
|
|
- |
|
|
|
216 |
|
|
|
- |
|
|
|
(16,265 |
) |
Transaction-related expenses |
|
|
(515 |
) |
|
|
(494 |
) |
|
|
(1,001 |
) |
|
|
(2,780 |
) |
Gain on disposal of aircraft |
|
|
- |
|
|
|
370 |
|
|
|
794 |
|
|
|
7,248 |
|
Income before income
taxes |
|
|
233,446 |
|
|
|
242,461 |
|
|
|
647,391 |
|
|
|
496,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(164 |
) |
|
|
(147 |
) |
|
|
(723 |
) |
|
|
(1,076 |
) |
Interest expense |
|
|
26,147 |
|
|
|
27,886 |
|
|
|
107,492 |
|
|
|
114,635 |
|
Capitalized interest |
|
|
(2,860 |
) |
|
|
(397 |
) |
|
|
(8,316 |
) |
|
|
(925 |
) |
Loss on early extinguishment of
debt |
|
|
6,042 |
|
|
|
- |
|
|
|
6,042 |
|
|
|
81 |
|
Unrealized loss (gain) on
financial instruments |
|
|
- |
|
|
|
(2,298 |
) |
|
|
113 |
|
|
|
71,053 |
|
Other (income) expense, net |
|
|
469 |
|
|
|
(73,661 |
) |
|
|
(40,705 |
) |
|
|
(185,742 |
) |
Operating
Income |
|
$ |
263,080 |
|
|
$ |
193,844 |
|
|
$ |
711,294 |
|
|
$ |
494,768 |
|
Atlas Air Worldwide uses an economic performance
metric, Direct Contribution, to show the profitability of each of
its segments after allocation of direct operating and ownership
costs. Atlas Air Worldwide currently has the following reportable
segments: Airline Operations and Dry Leasing.
Direct Contribution consists of income (loss)
before taxes, excluding loss on early extinguishment of debt,
unrealized loss on financial instruments, special charge,
transaction-related expenses, loss (gain) on disposal of aircraft,
nonrecurring items, and unallocated expenses and (income), net.
Direct operating and ownership costs include
crew costs, maintenance, fuel, ground operations, sales costs,
aircraft rent, interest expense on the portion of debt used for
financing aircraft, interest income on debt securities, and
aircraft depreciation.
Unallocated expenses and (income), net include
corporate overhead, nonaircraft depreciation, noncash expenses and
income, interest expense on the portion of debt used for general
corporate purposes, interest income on nondebt securities,
capitalized interest, foreign exchange gains and losses, other
revenue, other nonoperating costs and CARES Act grant income.
Atlas Air Worldwide Holdings,
Inc.Reconciliation to Non-GAAP
Measures(in thousands, except per share
data)(Unaudited)
|
|
|
For the Three Months Ended |
|
|
|
|
December 31, 2021 |
|
|
|
December 31, 2020 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
$ |
176,739 |
|
|
|
$ |
183,967 |
|
|
|
(3.9 |
)% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
|
|
- |
|
|
|
|
(67,212 |
) |
|
|
|
|
Customer incentive asset amortization |
|
|
|
10,906 |
|
|
|
|
10,676 |
|
|
|
|
|
Adjustments to JCBA paid time-off benefits2 |
|
|
|
14,061 |
|
|
|
|
- |
|
|
|
|
|
Special charge |
|
|
|
- |
|
|
|
|
(216 |
) |
|
|
|
|
Noncash expenses and income, net3 |
|
|
|
4,897 |
|
|
|
|
4,599 |
|
|
|
|
|
Unrealized gain on financial instruments |
|
|
|
- |
|
|
|
|
(2,298 |
) |
|
|
|
|
Other, net4 |
|
|
|
6,931 |
|
|
|
|
294 |
|
|
|
|
|
Income tax effect of reconciling items |
|
|
|
(6,018 |
) |
|
|
|
13,406 |
|
|
|
|
|
Special tax item7 |
|
|
|
4,041 |
|
|
|
|
- |
|
|
|
|
|
Adjusted Net
Income |
|
|
$ |
211,557 |
|
|
|
$ |
143,216 |
|
|
|
47.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding |
|
|
|
31,821 |
|
|
|
|
29,666 |
|
|
|
|
|
effect of convertible notes hedges6 |
|
|
|
(1,802 |
) |
|
|
|
- |
|
|
|
|
|
Adjusted weighted average
diluted shares outstanding |
|
|
|
30,019 |
|
|
|
|
29,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
|
|
$ |
7.05 |
|
|
|
$ |
4.83 |
|
|
|
46.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months Ended |
|
|
|
|
December 31, 2021 |
|
|
|
December 31, 2020 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
$ |
493,317 |
|
|
|
$ |
360,286 |
|
|
|
36.9 |
% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
|
|
(40,944 |
) |
|
|
|
(151,590 |
) |
|
|
|
|
Customer incentive asset amortization |
|
|
|
44,162 |
|
|
|
|
39,090 |
|
|
|
|
|
Adjustments to JCBA paid time-off benefits2 |
|
|
|
29,211 |
|
|
|
|
- |
|
|
|
|
|
Special charge |
|
|
|
- |
|
|
|
|
16,265 |
|
|
|
|
|
Noncash expenses and income, net3 |
|
|
|
19,136 |
|
|
|
|
17,971 |
|
|
|
|
|
Unrealized loss on financial instruments |
|
|
|
113 |
|
|
|
|
71,053 |
|
|
|
|
|
Other, net4 |
|
|
|
7,752 |
|
|
|
|
2,382 |
|
|
|
|
|
Income tax effect of reconciling items |
|
|
|
(5,795 |
) |
|
|
|
23,580 |
|
|
|
|
|
Special tax item7 |
|
|
|
4,041 |
|
|
|
|
- |
|
|
|
|
|
Adjusted Net
Income |
|
|
$ |
550,993 |
|
|
|
$ |
379,037 |
|
|
|
45.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding |
|
|
|
30,543 |
|
|
|
|
26,690 |
|
|
|
|
|
Add: dilutive warrant5 |
|
|
|
- |
|
|
|
|
1,040 |
|
|
|
|
|
effect of convertible notes hedges6 |
|
|
|
(782 |
) |
|
|
|
- |
|
|
|
|
|
Adjusted weighted average
diluted shares outstanding |
|
|
|
29,761 |
|
|
|
|
27,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
|
|
$ |
18.51 |
|
|
|
$ |
13.67 |
|
|
|
35.4 |
% |
Atlas Air Worldwide Holdings,
Inc.Reconciliation to Non-GAAP
Measures(in thousands, except per share
data)(Unaudited)
|
|
|
For the Three Months Ended |
|
|
|
|
December 31, 2021 |
|
|
|
December 31, 2020 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes |
|
|
$ |
233,446 |
|
|
|
$ |
242,461 |
|
|
|
(3.7) |
% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
|
|
- |
|
|
|
|
(67,212 |
) |
|
|
|
|
Customer incentive asset amortization |
|
|
|
10,906 |
|
|
|
|
10,676 |
|
|
|
|
|
Adjustments to JCBA paid time-off benefits2 |
|
|
|
14,061 |
|
|
|
|
- |
|
|
|
|
|
Special charge |
|
|
|
- |
|
|
|
|
(216 |
) |
|
|
|
|
Noncash expenses and income, net3 |
|
|
|
4,897 |
|
|
|
|
4,599 |
|
|
|
|
|
Unrealized gain on financial instruments |
|
|
|
- |
|
|
|
|
(2,298 |
) |
|
|
|
|
Other, net4 |
|
|
|
6,931 |
|
|
|
|
294 |
|
|
|
|
|
Adjusted income before
income taxes |
|
|
|
270,241 |
|
|
|
|
188,304 |
|
|
|
43.5 |
% |
Interest (income) expense, net |
|
|
|
18,226 |
|
|
|
|
22,743 |
|
|
|
|
|
Other (income) expense, net |
|
|
|
469 |
|
|
|
|
(6,449 |
) |
|
|
|
|
Adjusted operating
income |
|
|
$ |
288,936 |
|
|
|
$ |
204,598 |
|
|
|
41.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense |
|
|
$ |
56,707 |
|
|
|
$ |
58,494 |
|
|
|
|
|
Income tax effect of
reconciling items |
|
|
|
(6,018 |
) |
|
|
|
13,406 |
|
|
|
|
|
Special tax item7 |
|
|
|
4,041 |
|
|
|
|
- |
|
|
|
|
|
Adjusted income tax expense |
|
|
|
58,684 |
|
|
|
|
45,088 |
|
|
|
|
|
Adjusted income before
income taxes |
|
|
$ |
270,241 |
|
|
|
$ |
188,304 |
|
|
|
|
|
Effective tax expense
rate |
|
|
|
24.3 |
% |
|
|
|
24.1 |
% |
|
|
|
|
Adjusted effective tax
expense rate |
|
|
|
21.7 |
% |
|
|
|
23.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months Ended |
|
|
|
|
December 31, 2021 |
|
|
|
December 31, 2020 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes |
|
|
$ |
647,391 |
|
|
|
$ |
496,742 |
|
|
|
30.3 |
% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
|
|
(40,944 |
) |
|
|
|
(151,590 |
) |
|
|
|
|
Customer incentive asset amortization |
|
|
|
44,162 |
|
|
|
|
39,090 |
|
|
|
|
|
Adjustments to JCBA paid time-off benefits2 |
|
|
|
29,211 |
|
|
|
|
- |
|
|
|
|
|
Special charge |
|
|
|
- |
|
|
|
|
16,265 |
|
|
|
|
|
Noncash expenses and income, net3 |
|
|
|
19,136 |
|
|
|
|
17,971 |
|
|
|
|
|
Unrealized loss on financial instruments |
|
|
|
113 |
|
|
|
|
71,053 |
|
|
|
|
|
Other, net4 |
|
|
|
7,752 |
|
|
|
|
2,382 |
|
|
|
|
|
Adjusted income before
income taxes |
|
|
|
706,821 |
|
|
|
|
491,913 |
|
|
|
43.7 |
% |
Interest (income) expense, net |
|
|
|
79,317 |
|
|
|
|
94,663 |
|
|
|
|
|
Other (income) expense, net |
|
|
|
239 |
|
|
|
|
(34,071 |
) |
|
|
|
|
Adjusted operating
income |
|
|
$ |
786,377 |
|
|
|
$ |
552,505 |
|
|
|
42.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense |
|
|
$ |
154,074 |
|
|
|
$ |
136,456 |
|
|
|
|
|
Income tax effect of
reconciling items |
|
|
|
(5,795 |
) |
|
|
|
23,580 |
|
|
|
|
|
Special tax item7 |
|
|
|
4,041 |
|
|
|
|
- |
|
|
|
|
|
Adjusted income tax expense |
|
|
|
155,828 |
|
|
|
|
112,876 |
|
|
|
|
|
Adjusted income before
income taxes |
|
|
$ |
706,821 |
|
|
|
$ |
491,913 |
|
|
|
|
|
Effective tax expense
rate |
|
|
|
23.8 |
% |
|
|
|
27.5 |
% |
|
|
|
|
Adjusted effective tax
expense rate |
|
|
|
22.0 |
% |
|
|
|
22.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide Holdings,
Inc.Reconciliation to Non-GAAP
Measures(in thousands, except per share
data)(Unaudited)
|
|
|
For the Three Months Ended |
|
|
|
|
December 31, 2021 |
|
|
|
December 31, 2020 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
$ |
176,739 |
|
|
|
$ |
183,967 |
|
|
|
(3.9) |
% |
Interest expense, net |
|
|
|
23,123 |
|
|
|
|
27,342 |
|
|
|
|
|
Depreciation and
amortization |
|
|
|
73,291 |
|
|
|
|
68,667 |
|
|
|
|
|
Income tax expense |
|
|
|
56,707 |
|
|
|
|
58,494 |
|
|
|
|
|
EBITDA |
|
|
|
329,860 |
|
|
|
|
338,470 |
|
|
|
|
|
CARES Act grant income1 |
|
|
|
- |
|
|
|
|
(67,212 |
) |
|
|
|
|
Customer incentive asset
amortization |
|
|
|
10,906 |
|
|
|
|
10,676 |
|
|
|
|
|
Adjustments to JCBA paid
time-off benefits2 |
|
|
|
14,061 |
|
|
|
|
- |
|
|
|
|
|
Special charge |
|
|
|
- |
|
|
|
|
(216 |
) |
|
|
|
|
Unrealized gain on financial
instruments |
|
|
|
- |
|
|
|
|
(2,298 |
) |
|
|
|
|
Other, net4 |
|
|
|
6,931 |
|
|
|
|
294 |
|
|
|
|
|
Adjusted
EBITDA |
|
|
$ |
361,758 |
|
|
|
$ |
279,714 |
|
|
|
29.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months Ended |
|
|
|
|
December 31, 2021 |
|
|
|
December 31, 2020 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
$ |
493,317 |
|
|
|
$ |
360,286 |
|
|
|
36.9 |
% |
Interest expense, net |
|
|
|
98,453 |
|
|
|
|
112,634 |
|
|
|
|
|
Depreciation and
amortization |
|
|
|
281,209 |
|
|
|
|
257,672 |
|
|
|
|
|
Income tax expense |
|
|
|
154,074 |
|
|
|
|
136,456 |
|
|
|
|
|
EBITDA |
|
|
|
1,027,053 |
|
|
|
|
867,048 |
|
|
|
|
|
CARES Act grant income1 |
|
|
|
(40,944 |
) |
|
|
|
(151,590 |
) |
|
|
|
|
Customer incentive asset
amortization |
|
|
|
44,162 |
|
|
|
|
39,090 |
|
|
|
|
|
Adjustments to JCBA paid
time-off benefits2 |
|
|
|
29,211 |
|
|
|
|
- |
|
|
|
|
|
Special charge |
|
|
|
- |
|
|
|
|
16,265 |
|
|
|
|
|
Unrealized loss on financial
instruments |
|
|
|
113 |
|
|
|
|
71,053 |
|
|
|
|
|
Other, net4 |
|
|
|
7,752 |
|
|
|
|
2,382 |
|
|
|
|
|
Adjusted
EBITDA |
|
|
$ |
1,067,347 |
|
|
|
$ |
844,248 |
|
|
|
26.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 CARES Act grant income in 2021 and 2020
related to income associated with the Payroll Support Program.
2 Adjustments to JCBA paid time-off benefits in
2021 are related to our new JCBA.
3 Noncash expenses and income, net in 2021 and
2020 primarily related to amortization of debt discount on the
convertible notes.
4 Other, net in 2021 primarily related to $6.0
million of costs associated with the refinancing of debt, as well
as leadership transition costs and costs associated with our
acquisition of an airline, partially offset by a gain on the sale
of aircraft. Other, net in 2020 primarily related to a $7.2 million
net gain on the sale of aircraft, as well as costs associated with
the Payroll Support Program, costs associated with the refinancing
of debt, costs associated with our acquisition of an airline and
accrual for legal matters and professional fees.
5 Dilutive warrants represent potentially
dilutive common shares related to warrants issued to a customer.
These warrants are excluded from Diluted EPS prepared in accordance
with GAAP when they would have been antidilutive.
6 Represents the economic benefit from our
convertible notes hedges in offsetting dilution from our
convertible notes as we concluded in no event would economic
dilution result from conversion of each of the convertible notes
when our stock price is below the exercise price of the respective
convertible note warrants.
7 Special tax item in 2021 represents the income
tax expense from the integration of a previously-acquired
airline.
Atlas Air Worldwide Holdings,
Inc.Reconciliation to Non-GAAP
Measures(in thousands, except per share
data)(Unaudited)
|
|
For the Three Months Ended |
|
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities |
|
$ |
314,051 |
|
|
$ |
226,834 |
|
Less: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
26,156 |
|
|
|
33,799 |
|
Capitalized interest |
|
|
2,860 |
|
|
$ |
397 |
|
Free Cash
Flow1 |
|
$ |
285,035 |
|
|
$ |
192,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months Ended |
|
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities |
|
$ |
922,984 |
|
|
$ |
1,009,542 |
|
Less: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
90,288 |
|
|
|
78,933 |
|
Capitalized interest |
|
|
8,316 |
|
|
$ |
925 |
|
Free Cash
Flow1 |
|
$ |
824,380 |
|
|
$ |
929,684 |
|
1 Free Cash Flow = Net Cash from Operations
minus Core Capital Expenditures and Capitalized Interest.
Core Capital Expenditures excludes purchases of
aircraft.
Atlas Air Worldwide Holdings,
Inc.Operating Statistics and Traffic
Results(Unaudited)
|
|
For the Three Months Ended |
|
|
Increase/ |
|
|
For the Twelve Months Ended |
|
|
Increase/ |
|
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
(Decrease) |
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block
Hours |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Airline Operations |
|
|
91,092 |
|
|
|
95,161 |
|
|
|
(4,069 |
) |
|
|
359,862 |
|
|
|
340,294 |
|
|
|
19,568 |
|
Cargo |
|
|
88,661 |
|
|
|
90,704 |
|
|
|
(2,043 |
) |
|
|
343,957 |
|
|
|
323,385 |
|
|
|
20,572 |
|
Passenger |
|
|
2,431 |
|
|
|
4,457 |
|
|
|
(2,026 |
) |
|
|
15,905 |
|
|
|
16,909 |
|
|
|
(1,004 |
) |
Other |
|
|
893 |
|
|
|
918 |
|
|
|
(25 |
) |
|
|
4,199 |
|
|
|
4,527 |
|
|
|
(328 |
) |
Total Block Hours |
|
|
91,985 |
|
|
|
96,079 |
|
|
|
(4,094 |
) |
|
|
364,061 |
|
|
|
344,821 |
|
|
|
19,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Per Block
Hour |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Airline Operations |
|
$ |
12,359 |
|
|
$ |
9,425 |
|
|
$ |
2,934 |
|
|
$ |
10,806 |
|
|
$ |
9,011 |
|
|
$ |
1,795 |
|
Cargo |
|
$ |
12,153 |
|
|
$ |
8,950 |
|
|
$ |
3,203 |
|
|
$ |
10,413 |
|
|
$ |
8,522 |
|
|
$ |
1,891 |
|
Passenger |
|
$ |
19,862 |
|
|
$ |
19,109 |
|
|
$ |
753 |
|
|
$ |
19,290 |
|
|
$ |
18,372 |
|
|
$ |
918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Utilization
(block hours per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Airline Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cargo |
|
|
11.2 |
|
|
|
10.5 |
|
|
|
0.7 |
|
|
|
10.7 |
|
|
|
9.3 |
|
|
|
1.4 |
|
Passenger |
|
|
2.9 |
|
|
|
4.5 |
|
|
|
(1.6 |
) |
|
|
4.4 |
|
|
|
4.3 |
|
|
|
0.1 |
|
All Operating Aircraft1 |
|
|
10.5 |
|
|
|
9.9 |
|
|
|
0.6 |
|
|
|
10.2 |
|
|
|
8.9 |
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel cost per gallon |
|
$ |
2.32 |
|
|
$ |
1.37 |
|
|
$ |
0.95 |
|
|
$ |
2.00 |
|
|
$ |
1.41 |
|
|
$ |
0.59 |
|
Fuel gallons consumed (000s) |
|
|
99,183 |
|
|
|
95,921 |
|
|
|
3,262 |
|
|
|
411,845 |
|
|
|
313,428 |
|
|
|
98,417 |
|
1 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 |
|
|
Increase/ |
|
|
For the Twelve Months Ended |
|
|
Increase/ |
|
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
(Decrease) |
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating
Fleet (average aircraft equivalents
during the period) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Airline Operations1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
747-8F Cargo |
|
|
10.0 |
|
|
|
10.0 |
|
|
|
- |
|
|
|
10.0 |
|
|
|
10.0 |
|
|
|
- |
|
747-400 Cargo |
|
|
34.5 |
|
|
|
33.8 |
|
|
|
0.7 |
|
|
|
34.5 |
|
|
|
32.6 |
|
|
|
1.9 |
|
747-400 Dreamlifter |
|
|
0.3 |
|
|
|
1.7 |
|
|
|
(1.4 |
) |
|
|
0.8 |
|
|
|
2.4 |
|
|
|
(1.6 |
) |
747-400 Passenger |
|
|
4.2 |
|
|
|
5.0 |
|
|
|
(0.8 |
) |
|
|
4.8 |
|
|
|
5.0 |
|
|
|
(0.2 |
) |
777-200 Cargo |
|
|
9.0 |
|
|
|
9.0 |
|
|
|
- |
|
|
|
9.0 |
|
|
|
8.7 |
|
|
|
0.3 |
|
767-300 Cargo |
|
|
24.0 |
|
|
|
24.0 |
|
|
|
- |
|
|
|
24.0 |
|
|
|
24.0 |
|
|
|
- |
|
767-300 Passenger |
|
|
4.9 |
|
|
|
4.8 |
|
|
|
0.1 |
|
|
|
4.9 |
|
|
|
4.8 |
|
|
|
0.1 |
|
767-200 Cargo |
|
|
- |
|
|
|
7.9 |
|
|
|
(7.9 |
) |
|
|
2.0 |
|
|
|
8.7 |
|
|
|
(6.7 |
) |
767-200 Passenger |
|
|
- |
|
|
|
1.0 |
|
|
|
(1.0 |
) |
|
|
0.1 |
|
|
|
1.0 |
|
|
|
(0.9 |
) |
737-800 Cargo |
|
|
8.0 |
|
|
|
7.8 |
|
|
|
0.2 |
|
|
|
8.0 |
|
|
|
5.8 |
|
|
|
2.2 |
|
737-400 Cargo |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2.6 |
|
|
|
(2.6 |
) |
Total |
|
|
94.9 |
|
|
|
105.0 |
|
|
|
(10.1 |
) |
|
|
98.1 |
|
|
|
105.6 |
|
|
|
(7.5 |
) |
Dry Leasing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
777-200 Cargo |
|
|
7.0 |
|
|
|
7.0 |
|
|
|
- |
|
|
|
7.0 |
|
|
|
7.0 |
|
|
|
- |
|
767-300 Cargo |
|
|
21.0 |
|
|
|
21.0 |
|
|
|
- |
|
|
|
21.0 |
|
|
|
21.0 |
|
|
|
- |
|
757-200 Cargo |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.1 |
|
|
|
(0.1 |
) |
737-300 Cargo |
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
737-800 Passenger |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.2 |
|
|
|
(0.2 |
) |
Total |
|
|
29.0 |
|
|
|
29.0 |
|
|
|
- |
|
|
|
29.0 |
|
|
|
29.3 |
|
|
|
(0.3 |
) |
Less: Aircraft Dry Leased to CMI customers |
|
|
(21.0 |
) |
|
|
(21.0 |
) |
|
|
- |
|
|
|
(21.0 |
) |
|
|
(21.0 |
) |
|
|
- |
|
Total Operating Average Aircraft Equivalents |
|
|
102.9 |
|
|
|
113.0 |
|
|
|
(10.1 |
) |
|
|
106.1 |
|
|
|
113.9 |
|
|
|
(7.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Out-of-Service2 |
|
|
- |
|
|
|
0.7 |
|
|
|
(0.7 |
) |
|
|
- |
|
|
|
2.2 |
|
|
|
(2.2 |
) |
1 Airline Operations average fleet excludes spare aircraft
provided by CMI
customers. 2
Out-of-service includes aircraft that are temporarily parked.
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