Atlas Air Worldwide Holdings, Inc. (Nasdaq:AAWW) today announced
record fourth-quarter and full-year 2017 revenue, record
fourth-quarter earnings and robust full-year earnings growth, and a
continued strong outlook in 2018.
“2017 was an exciting year for Atlas and we
expect that to continue in 2018,” said President and Chief
Executive Officer William J. Flynn.
“The strategic initiatives that we have put in
place over many years have transformed our company. Our focus on
express, e-commerce and fast-growing Asian markets has broadened
our customer base and fleet. As a result, we were well-positioned
to capitalize on market dynamics and deliver fourth-quarter and
full-year volumes, revenues, EBITDA and net income that grew
sharply compared to the prior-year.
“In addition, our fourth-quarter and full-year
results benefited from the passage of the U.S. Tax Cuts and Jobs
Act in late December, which generated a significant gain related to
the revaluation of our net deferred tax liabilities.
“We expect the new tax legislation to have a
positive impact on economic activity and corporate growth. On
passage of the law, we were pleased to provide a one-time bonus of
$1,000 to our global personnel in recognition of their hard work
and commitment to the company’s growth.”
Turning to 2018 and beyond, Mr. Flynn stated:
“We are operating in a strong airfreight environment, underpinned
by global economic growth.
“We see tremendous opportunity for continued
growth in the express and e-commerce markets, fueled by a
bourgeoning middle class with higher levels of disposable income.
Further globalization will require expansive and time-definite air
networks to facilitate the international flow of goods.
“From a regional perspective, we believe Asia is
key. It is an important geography to global trade, the source of
40% of global airfreight demand, and the main contributor to the
expanding global middle class.
“In addition to the demand we are seeing for our
aircraft and services, we are capitalizing on the quality, scale
and scope of our operations to drive our revenues and earnings to
greater levels. As a result, we expect our adjusted net income to
grow by a mid-twenty-percent level in 2018 compared with 2017,
including the benefit of a lower corporate income tax rate.
“By comparison, even without any benefit from
tax reform, we would have expected our 2018 adjusted net income to
grow by a teens percentage.”
Fourth-Quarter Results
Volumes in the fourth quarter of 2017 increased
18% to 71,563 block hours, with revenue growing 19% to a record
$628.0 million.
Reported income from continuing operations, net
of taxes, during the period totaled $209.5 million, or $6.71 per
diluted share, compared with $28.7 million, or $1.12 per diluted
share, in the fourth quarter of 2016. Reported results for the
latest quarter included a $130.0 million benefit related to the
revaluation of our deferred tax liabilities as well as an
unrealized gain on outstanding warrants of $23.7 million. Results
in the year-ago period included an unrealized loss of $27.9 million
on outstanding warrants.
On an adjusted basis, income from continuing
operations, net of taxes, in the fourth quarter of 2017 increased
13% to a record $66.6 million, or $2.43 per diluted share, from
adjusted income of $59.0 million, or $2.24 per diluted share, in
the year-ago quarter. EBITDA, as adjusted, increased 14% to $162.7
million.
Record ACMI segment revenues and contribution in
the fourth quarter of 2017 were primarily driven by significant
growth in block-hour volumes, partially offset by higher line
maintenance and labor-related operational disruptions. Block-hour
growth during the period reflected 747-400 flying for several new
customers, 747-8 flying for Cathay Pacific Cargo, additional
seasonal flying for express operators, and the ramp-up of 767-300
operations for Amazon. Five new 767-300s were placed in service for
Amazon during the quarter, raising the current number to 12, in
line with our expectations when we began ramping up this new
service in 2016 and in line with our expectations for a total of 20
aircraft by the end of 2018.
Higher Charter segment contribution during the
period was primarily driven by an increase in commercial yields,
partially offset by higher maintenance costs, the redeployment of
747-8 and 747-400 aircraft to the ACMI segment, and labor-related
operational disruptions. Higher average rates during the quarter
primarily reflected the impact of strong commercial
yields.
In Dry Leasing, higher segment contribution
primarily reflected a reduction in interest expense due to the
scheduled repayment of debt related to dry leased 777 aircraft and
the placement of additional 767-300 converted aircraft.
Reported earnings in the fourth quarter of 2017
also included an effective income tax benefit rate of 95.7%, due
mainly to the revaluation of our deferred tax liabilities as a
result of the Tax Cuts and Jobs Act. On an adjusted basis, our
results reflected an effective income tax rate of 31.4%.
Full-Year Results
Volumes in 2017 increased 20% to 252,802 block
hours, with revenue growing 17% to a record $2.16 billion.
For the twelve months ended December 31, 2017,
our continuing operations generated income of $224.3 million, or
$8.68 per diluted share, which included the $130.0 million benefit
related to the revaluation of our deferred tax liabilities,
partially offset by an unrealized loss on financial instruments of
$12.5 million related to outstanding warrants. For the twelve
months ended December 31, 2016, our income from continuing
operations totaled $42.6 million, or $1.70 per diluted share,
including the negative impacts of transaction-related expenses and
warrant accounting totaling $25.0 million.
On an adjusted basis, income from continuing
operations in 2017 increased 17% to $133.7 million, or $4.93 per
diluted share, compared with $114.3 million, or $4.50 per diluted
share, in 2016. EBITDA, as adjusted, rose 12% to $428.6
million.
Reported earnings in 2017 also included an
effective income tax benefit rate of 56.5%, due mainly to the
revaluation of our deferred tax liabilities as a result of the Tax
Cuts and Jobs Act. On an adjusted basis, our results reflected an
effective income tax rate of 28.4%.
Cash and Short-Term
Investments
At December 31, 2017, our cash, cash
equivalents, short-term investments and restricted cash totaled
$305.5 million, compared with $142.6 million at December 31,
2016.
The change in position resulted from cash
provided by operating and financing activities, partially offset by
cash used for investing activities.
Net cash provided by financing activities during
2017 primarily reflected proceeds from our issuance of convertible
notes and our financings of 767-300 aircraft, partially offset by
payments on debt obligations. During the fourth quarter of 2017, we
completed the financings of six additional 767-300 aircraft, which
generated cash of $145.8 million.
Net cash used for investing activities during
2017 primarily related to capital expenditures and payments for
flight equipment and modifications, including the acquisition of
767-300 aircraft to be converted to freighter configuration, spare
engines and GEnx engine performance upgrade kits.
2018 Outlook
We expect to report strong earnings growth in
2018.
We begin 2018 with solid demand from our
customers for our aircraft and services. With the essential
building blocks we have set in place, we see opportunities to grow
with existing customers and to add new ones.
Globally, economic activity is expanding. The
airfreight market is strong, and airfreight tonnage continues to
grow from record levels.
As a result, we expect significant growth in our
volumes, revenue and adjusted EBITDA in 2018. We see volumes rising
to around 300,000 block hours, revenue growing to approximately
$2.5 billion, and adjusted EBITDA of about $500
million.
We anticipate that our full-year 2018 adjusted
net income will grow by a mid-twenty-percent level compared with
2017, including the benefit of tax reform. Without tax reform, we
would have expected our adjusted net income to grow by a teens
percentage this year. We expect our full-year 2018 adjusted income
tax rate to be approximately 17%.
Given the inherent seasonality of airfreight
demand, we anticipate that results in 2018 will reflect historical
patterns, with more than 70% of our adjusted net income occurring
in the second half. In addition, we expect adjusted EBITDA of
approximately $90 million in the first quarter of 2018, and
adjusted net income to be approximately double adjusted net income
of $8.3 million in the first quarter of 2017.
For the full year, we anticipate total block
hours will increase approximately 19% compared with 2017, with
about 75% of our hours in ACMI and the balance in Charter. To meet
the anticipated increase in ACMI and Charter demand, we have
entered into operating leases for six 747-400 freighter aircraft.
Two of these aircraft entered service in the third quarter and
fourth quarter of 2017; four will enter service throughout
2018.
Aircraft maintenance expense in 2018 is expected
to total approximately $315 million, mainly reflecting an increase
in daily line maintenance due to the anticipated growth in block
hours. Depreciation and amortization is expected to total
approximately $220 million. In addition, core capital expenditures,
which exclude aircraft and engine purchases, are expected to total
approximately $100 to $110 million, mainly for parts and components
for our fleet.
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.
Conference Call
Management will host a conference call to
discuss Atlas Air Worldwide’s fourth-quarter and full-year 2017
financial and operating results at 11:00 a.m. Eastern Time on
Thursday, February 22, 2018.
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:
https://edge.media-server.com/m6/p/3u7eztjr
For those unable to listen to the live call, a
replay will be archived on the above websites following the call. A
replay will also be available through February 28 by dialing (855)
859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.)
and using Access Code 8276523#.
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 EBITDA, as adjusted; Direct
Contribution; Adjusted income from continuing operations, net of
taxes; Adjusted Diluted EPS from continuing operations, net of
taxes; 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 Income from continuing operations, net of taxes;
Diluted EPS from continuing operations, net of taxes; 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.
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. In
addition, management’s incentive compensation is determined, in
part, by using Adjusted Income from continuing operations, net of
taxes. 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.
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 applications.
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. |
|
Consolidated Statements of
Operations |
|
(in thousands, except per share data) |
|
(Unaudited) |
|
|
|
|
For the Three MonthsEnded |
|
|
For the Twelve MonthsEnded |
|
|
December 31,2017 |
|
|
December 31,2016 |
|
|
December 31,2017 |
|
|
December 31,2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenue |
$ |
627,952 |
|
|
$ |
529,725 |
|
|
$ |
2,156,460 |
|
|
$ |
1,839,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries,
wages and benefits |
|
125,995 |
|
|
|
102,967 |
|
|
|
456,075 |
|
|
|
424,332 |
|
Aircraft
fuel |
|
93,080 |
|
|
|
85,131 |
|
|
|
333,046 |
|
|
|
275,113 |
|
Maintenance, materials and repairs |
|
61,634 |
|
|
|
43,886 |
|
|
|
273,676 |
|
|
|
206,106 |
|
Depreciation and amortization |
|
45,800 |
|
|
|
39,154 |
|
|
|
166,713 |
|
|
|
148,876 |
|
Travel |
|
39,189 |
|
|
|
33,457 |
|
|
|
144,699 |
|
|
|
127,748 |
|
Aircraft
rent |
|
39,207 |
|
|
|
36,620 |
|
|
|
142,945 |
|
|
|
146,110 |
|
Navigation fees, landing fees and other rent |
|
39,060 |
|
|
|
22,050 |
|
|
|
116,318 |
|
|
|
78,441 |
|
Passenger
and ground handling services |
|
30,600 |
|
|
|
25,086 |
|
|
|
107,787 |
|
|
|
89,657 |
|
Loss
(gain) on disposal of aircraft |
|
(95 |
) |
|
|
- |
|
|
|
(31 |
) |
|
|
(11 |
) |
Special
charge |
|
106 |
|
|
|
3,509 |
|
|
|
106 |
|
|
|
10,140 |
|
Transaction-related expenses |
|
1,106 |
|
|
|
585 |
|
|
|
4,509 |
|
|
|
22,071 |
|
Other |
|
45,522 |
|
|
|
35,848 |
|
|
|
168,643 |
|
|
|
142,733 |
|
Total
Operating Expenses |
|
521,204 |
|
|
|
428,293 |
|
|
|
1,914,486 |
|
|
|
1,671,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income |
|
106,748 |
|
|
|
101,432 |
|
|
|
241,974 |
|
|
|
168,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
Expenses (Income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
(1,723 |
) |
|
|
(1,207 |
) |
|
|
(6,009 |
) |
|
|
(5,532 |
) |
Interest
expense |
|
26,940 |
|
|
|
21,055 |
|
|
|
99,687 |
|
|
|
84,650 |
|
Capitalized interest |
|
(1,756 |
) |
|
|
(1,207 |
) |
|
|
(7,389 |
) |
|
|
(3,313 |
) |
Loss on
early extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
167 |
|
|
|
132 |
|
Unrealized loss (gain) on financial instruments |
|
(23,692 |
) |
|
|
27,901 |
|
|
|
12,533 |
|
|
|
2,888 |
|
Other
income |
|
(30 |
) |
|
|
442 |
|
|
|
(387 |
) |
|
|
70 |
|
Total
Non-operating Expenses (Income) |
|
(261 |
) |
|
|
46,984 |
|
|
|
98,602 |
|
|
|
78,895 |
|
Income
(loss) from continuing operations before income taxes |
|
107,009 |
|
|
|
54,448 |
|
|
|
143,372 |
|
|
|
89,416 |
|
Income
tax (benefit) expense |
|
(102,445 |
) |
|
|
25,712 |
|
|
|
(80,966 |
) |
|
|
46,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations, net of taxes |
|
209,454 |
|
|
|
28,736 |
|
|
|
224,338 |
|
|
|
42,625 |
|
Loss from
discontinued operations, net of taxes |
|
(6 |
) |
|
|
(319 |
) |
|
|
(865 |
) |
|
|
(1,109 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
209,448 |
|
|
$ |
28,417 |
|
|
$ |
223,473 |
|
|
$ |
41,516 |
|
Earnings per
share from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
8.28 |
|
|
$ |
1.15 |
|
|
$ |
8.89 |
|
|
$ |
1.72 |
|
Diluted |
$ |
6.71 |
|
|
$ |
1.12 |
|
|
$ |
8.68 |
|
|
$ |
1.70 |
|
Loss per share
from discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.00 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.04 |
) |
Diluted |
$ |
(0.00 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.04 |
) |
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
8.28 |
|
|
$ |
1.14 |
|
|
$ |
8.85 |
|
|
$ |
1.67 |
|
Diluted |
$ |
6.71 |
|
|
$ |
1.11 |
|
|
$ |
8.64 |
|
|
$ |
1.65 |
|
Weighted
average shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
25,282 |
|
|
|
25,008 |
|
|
|
25,241 |
|
|
|
24,843 |
|
Diluted |
|
27,435 |
|
|
|
25,554 |
|
|
|
25,854 |
|
|
|
25,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide Holdings,
Inc. |
|
Consolidated Balance Sheets |
|
(in thousands, except share data) |
|
(Unaudited) |
|
|
|
|
December 31,2017 |
|
|
December 31,2016 |
|
Assets |
|
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
280,809 |
|
|
$ |
123,890 |
|
Short-term investments |
|
13,604 |
|
|
|
4,313 |
|
Restricted cash |
|
11,055 |
|
|
|
14,360 |
|
Accounts
receivable, net of allowance of $1,494 and $997, respectively |
|
194,478 |
|
|
|
166,486 |
|
Prepaid
maintenance |
|
13,346 |
|
|
|
4,418 |
|
Prepaid
expenses and other current assets |
|
74,294 |
|
|
|
44,603 |
|
Total
current assets |
|
587,586 |
|
|
|
358,070 |
|
Property and
Equipment |
|
|
|
|
|
|
|
Flight
equipment |
|
4,447,097 |
|
|
|
3,886,714 |
|
Ground
equipment |
|
70,951 |
|
|
|
68,688 |
|
Less: accumulated depreciation |
|
(701,249 |
) |
|
|
(568,946 |
) |
Flight
equipment modifications in progress |
|
186,302 |
|
|
|
154,226 |
|
Property
and equipment, net |
|
4,003,101 |
|
|
|
3,540,682 |
|
Other
Assets |
|
|
|
|
|
|
|
Long-term
investments and accrued interest |
|
15,371 |
|
|
|
27,951 |
|
Deferred
costs and other assets |
|
242,919 |
|
|
|
204,647 |
|
Intangible assets, net and goodwill |
|
106,485 |
|
|
|
116,029 |
|
Total
Assets |
$ |
4,955,462 |
|
|
$ |
4,247,379 |
|
|
|
|
|
|
|
|
|
Liabilities and
Equity |
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
Accounts
payable |
$ |
65,740 |
|
|
$ |
59,543 |
|
Accrued
liabilities |
|
454,843 |
|
|
|
320,887 |
|
Current
portion of long-term debt and capital lease |
|
218,013 |
|
|
|
184,748 |
|
Total
current liabilities |
|
738,596 |
|
|
|
565,178 |
|
Other
Liabilities |
|
|
|
|
|
|
|
Long-term
debt and capital lease |
|
2,008,986 |
|
|
|
1,666,663 |
|
Deferred
taxes |
|
214,694 |
|
|
|
298,165 |
|
Financial
instruments and other liabilities |
|
203,330 |
|
|
|
200,035 |
|
Total
other liabilities |
|
2,427,010 |
|
|
|
2,164,863 |
|
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;
30,104,648 and 29,633,605 shares issued, 25,292,454 and
25,017,242 shares outstanding (net of treasury stock), as of
December 31, 2017 and December 31, 2016,
respectively |
|
301 |
|
|
|
296 |
|
Additional paid-in-capital |
|
715,735 |
|
|
|
657,082 |
|
Treasury
stock, at cost; 4,812,194 and 4,616,363 shares, respectively |
|
(193,732 |
) |
|
|
(183,119 |
) |
Accumulated other comprehensive loss |
|
(3,993 |
) |
|
|
(4,993 |
) |
Retained
earnings |
|
1,271,545 |
|
|
|
1,048,072 |
|
Total
stockholders’ equity |
|
1,789,856 |
|
|
|
1,517,338 |
|
Total
Liabilities and Equity |
$ |
4,955,462 |
|
|
$ |
4,247,379 |
|
|
|
|
|
|
|
|
|
1
Balance sheet debt at December 31, 2017 totaled $2,227.0
million, including the impact of $101.3 million of unamortized
discount and debt issuance costs of $50.5 million. |
|
2 The
face value of our debt at December 31, 2017 totaled $2,378.8
million, compared with $1,943.4 million on December 31, 2016. |
|
|
|
|
|
Atlas Air Worldwide Holdings,
Inc. |
|
Consolidated Statements of Cash
Flows |
|
(in thousands) |
|
(Unaudited) |
|
|
|
|
|
For the Twelve Months Ended |
|
|
December 31,2017 |
|
|
December 31,
2016 |
|
Operating
Activities: |
|
|
|
|
|
|
|
Income from continuing
operations, net of taxes |
$ |
224,338 |
|
|
$ |
42,625 |
|
Less: Loss from
discontinued operations, net of taxes |
|
(865 |
) |
|
|
(1,109 |
) |
Net Income |
|
223,473 |
|
|
|
41,516 |
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile Net Income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
197,463 |
|
|
|
168,721 |
|
Accretion
of debt securities discount |
|
(1,172 |
) |
|
|
(1,277 |
) |
Provision
for allowance for doubtful accounts |
|
198 |
|
|
|
508 |
|
Special
charge, net of cash payments |
|
106 |
|
|
|
10,140 |
|
Loss on
early extinguishment of debt |
|
167 |
|
|
|
132 |
|
Unrealized loss (gain) on financial instruments |
|
12,533 |
|
|
|
2,888 |
|
Loss
(gain) on disposal of aircraft |
|
(31 |
) |
|
|
(11 |
) |
Deferred
taxes |
|
(81,330 |
) |
|
|
47,381 |
|
Stock-based compensation expense |
|
22,319 |
|
|
|
32,724 |
|
Changes
in: |
|
|
|
|
|
|
|
Accounts
receivable |
|
(33,201 |
) |
|
|
22,974 |
|
Prepaid
expenses, current assets and other assets |
|
(67,341 |
) |
|
|
(29,455 |
) |
Accounts
payable and accrued liabilities |
|
58,535 |
|
|
|
(64,059 |
) |
Net cash provided by
operating activities |
|
331,719 |
|
|
|
232,182 |
|
Investing
Activities: |
|
|
|
|
|
|
|
Capital
expenditures |
|
(87,555 |
) |
|
|
(46,717 |
) |
Payments
for flight equipment and modifications |
|
(458,464 |
) |
|
|
(316,993 |
) |
Acquisition of business, net of cash acquired |
|
- |
|
|
|
(105,392 |
) |
Proceeds
from investments |
|
4,462 |
|
|
|
11,714 |
|
Net cash used for
investing activities |
|
(541,557 |
) |
|
|
(457,388 |
) |
Financing
Activities: |
|
|
|
|
|
|
|
Proceeds
from debt issuance |
|
620,568 |
|
|
|
103,492 |
|
Payment
of debt issuance costs |
|
(14,664 |
) |
|
|
(4,034 |
) |
Payments
of debt |
|
(207,093 |
) |
|
|
(179,153 |
) |
Proceeds
from revolving credit facility |
|
150,000 |
|
|
|
- |
|
Payment
of revolving credit facility |
|
(150,000 |
) |
|
|
- |
|
Customer
maintenance reserves and deposits received |
|
25,784 |
|
|
|
15,105 |
|
Customer
maintenance reserves paid |
|
(18,538 |
) |
|
|
- |
|
Proceeds
from sale of convertible note warrants |
|
38,148 |
|
|
|
- |
|
Payments
for convertible note hedges |
|
(70,140 |
) |
|
|
- |
|
Purchase
of treasury stock |
|
(10,613 |
) |
|
|
(11,275 |
) |
Excess
tax benefit from stock-based compensation expense |
|
- |
|
|
|
390 |
|
Net cash provided by
(used for) financing activities |
|
363,452 |
|
|
|
(75,475 |
) |
Net increase (decrease)
in cash, cash equivalents and restricted cash |
|
153,614 |
|
|
|
(300,681 |
) |
Cash, cash equivalents
and restricted cash at the beginning of period |
|
138,250 |
|
|
|
438,931 |
|
Cash, cash equivalents
and restricted cash at the end of period |
$ |
291,864 |
|
|
$ |
138,250 |
|
|
|
|
|
|
|
|
|
Noncash
Investing and Financing Activities: |
|
|
|
|
|
|
|
Acquisition of flight equipment included in Accounts payable and
accrued liabilities |
$ |
68,732 |
|
|
$ |
14,345 |
|
Acquisition of flight equipment under capital lease |
$ |
30,419 |
|
|
$ |
10,800 |
|
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide Holdings,
Inc. |
|
Direct Contribution |
|
(in thousands) |
|
(Unaudited) |
|
|
|
|
For the Three Months Ended |
|
|
For the Twelve Months Ended |
|
|
December 31,2017 |
|
|
December 31,2016 |
|
|
December 31,2017 |
|
|
December 31,2016 |
|
Operating
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
$ |
300,759 |
|
|
$ |
234,225 |
|
|
$ |
988,741 |
|
|
$ |
834,997 |
|
Charter |
|
291,261 |
|
|
|
265,197 |
|
|
|
1,034,562 |
|
|
|
881,991 |
|
Dry Leasing |
|
33,699 |
|
|
|
26,630 |
|
|
|
119,820 |
|
|
|
105,795 |
|
Customer incentive
asset amortization |
|
(2,387 |
) |
|
|
(362 |
) |
|
|
(5,261 |
) |
|
|
(537 |
) |
Other |
|
4,620 |
|
|
|
4,035 |
|
|
|
18,598 |
|
|
|
17,381 |
|
Total Operating
Revenue |
$ |
627,952 |
|
|
$ |
529,725 |
|
|
$ |
2,156,460 |
|
|
$ |
1,839,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
Contribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
$ |
90,136 |
|
|
$ |
78,725 |
|
|
$ |
231,271 |
|
|
$ |
200,563 |
|
Charter |
|
62,509 |
|
|
|
55,146 |
|
|
|
151,388 |
|
|
|
133,727 |
|
Dry Leasing |
|
10,310 |
|
|
|
8,414 |
|
|
|
39,939 |
|
|
|
33,114 |
|
Total Direct
Contribution for Reportable Segments |
|
162,955 |
|
|
|
142,285 |
|
|
|
422,598 |
|
|
|
367,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated income and
expenses, net |
|
(78,521 |
) |
|
|
(55,842 |
) |
|
|
(261,942 |
) |
|
|
(242,768 |
) |
Loss on early
extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
(167 |
) |
|
|
(132 |
) |
Unrealized loss (gain)
on financial instruments |
|
23,692 |
|
|
|
(27,901 |
) |
|
|
(12,533 |
) |
|
|
(2,888 |
) |
Special charge |
|
(106 |
) |
|
|
(3,509 |
) |
|
|
(106 |
) |
|
|
(10,140 |
) |
Transaction-related
expenses |
|
(1,106 |
) |
|
|
(585 |
) |
|
|
(4,509 |
) |
|
|
(22,071 |
) |
Loss (gain) on disposal
of aircraft |
|
95 |
|
|
|
- |
|
|
|
31 |
|
|
|
11 |
|
Income (loss)
from continuing operations before
income taxes |
|
107,009 |
|
|
|
54,448 |
|
|
|
143,372 |
|
|
|
89,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back
(subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
(1,723 |
) |
|
|
(1,207 |
) |
|
|
(6,009 |
) |
|
|
(5,532 |
) |
Interest expense |
|
26,940 |
|
|
|
21,055 |
|
|
|
99,687 |
|
|
|
84,650 |
|
Capitalized
interest |
|
(1,756 |
) |
|
|
(1,207 |
) |
|
|
(7,389 |
) |
|
|
(3,313 |
) |
Loss on early
extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
167 |
|
|
|
132 |
|
Unrealized loss (gain)
on financial instruments |
|
(23,692 |
) |
|
|
27,901 |
|
|
|
12,533 |
|
|
|
2,888 |
|
Other income |
|
(30 |
) |
|
|
442 |
|
|
|
(387 |
) |
|
|
70 |
|
Operating
Income |
$ |
106,748 |
|
|
$ |
101,432 |
|
|
$ |
241,974 |
|
|
$ |
168,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 commercial and economic
characteristics, which are separately reviewed by our chief
operating decision maker.
Direct Contribution consists of income (loss) from continuing
operations before taxes, excluding loss on early extinguishment of
debt, unrealized loss (gain) on financial instruments, special
charge, transaction-related expenses, loss (gain) on the disposal
of aircraft, nonrecurring items, and unallocated income and
expenses, 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 income and expenses, 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 and other
nonoperating costs.
|
|
Atlas Air Worldwide Holdings,
Inc. |
|
Reconciliation to Non-GAAP
Measures |
|
(in thousands, except per share data) |
|
(Unaudited) |
|
|
|
|
|
For the Three Months Ended |
|
|
December 31,2017 |
|
|
December 31,2016 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations, net of taxes |
$ |
209,454 |
|
|
$ |
28,736 |
|
|
|
628.9 |
% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
U.S. Tax
Cuts and Jobs Act special bonus1 |
|
3,684 |
|
|
|
- |
|
|
|
|
|
Loss
(gain) on disposal of aircraft |
|
(95 |
) |
|
|
- |
|
|
|
|
|
Special
charge |
|
106 |
|
|
|
3,509 |
|
|
|
|
|
Costs
associated with transactions2 |
|
1,106 |
|
|
|
585 |
|
|
|
|
|
Accrual
for legal matters and professional fees |
|
2,529 |
|
|
|
(312 |
) |
|
|
|
|
Noncash
expenses and income, net3 |
|
6,397 |
|
|
|
2,304 |
|
|
|
|
|
Unrealized loss (gain) on financial instruments |
|
(23,692 |
) |
|
|
27,901 |
|
|
|
|
|
Charges
associated with benefit plan change in control |
|
- |
|
|
|
(2,642 |
) |
|
|
|
|
Income
tax effect of reconciling items4 |
|
(2,901 |
) |
|
|
(1,116 |
) |
|
|
|
|
Impact of
U.S. Tax Cuts and Jobs Act5 |
|
(129,977 |
) |
|
|
- |
|
|
|
|
|
Adjusted income
from continuing operations, net of taxes |
$ |
66,611 |
|
|
$ |
58,965 |
|
|
|
13.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding |
|
27,435 |
|
|
|
25,554 |
|
|
|
|
|
Add:
dilutive warrant |
|
- |
|
|
|
772 |
|
|
|
|
|
Adjusted weighted
average diluted shares outstanding |
|
27,435 |
|
|
|
26,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Diluted EPS from continuing operations, net of taxes |
$ |
2.43 |
|
|
$ |
2.24 |
|
|
|
8.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months Ended |
|
|
December 31,
2017 |
|
|
December 31,2016 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations, net of taxes |
$ |
224,338 |
|
|
$ |
42,625 |
|
|
|
426.3 |
% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
U.S. Tax
Cuts and Jobs Act special bonus1 |
|
3,684 |
|
|
|
- |
|
|
|
|
|
Loss
(gain) on disposal of aircraft |
|
(31 |
) |
|
|
(11 |
) |
|
|
|
|
Special
charge |
|
106 |
|
|
|
10,140 |
|
|
|
|
|
Costs
associated with transactions2 |
|
4,772 |
|
|
|
45,598 |
|
|
|
|
|
Accrual
for legal matters and professional fees |
|
4,129 |
|
|
|
6,465 |
|
|
|
|
|
Noncash
expenses and income, net3 |
|
17,934 |
|
|
|
8,111 |
|
|
|
|
|
Charges
associated with refinancing debt |
|
167 |
|
|
|
132 |
|
|
|
|
|
Unrealized loss (gain) on financial instruments |
|
12,533 |
|
|
|
2,888 |
|
|
|
|
|
Income
tax effect of reconciling items4 |
|
(3,962 |
) |
|
|
(1,651 |
) |
|
|
|
|
Impact of
U.S. Tax Cuts and Jobs Act5 |
|
(129,977 |
) |
|
|
- |
|
|
|
|
|
Adjusted income
from continuing operations, net of taxes |
$ |
133,693 |
|
|
$ |
114,297 |
|
|
|
17.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding |
|
25,854 |
|
|
|
25,120 |
|
|
|
|
|
Add:
dilutive warrant |
|
1,293 |
|
|
|
299 |
|
|
|
|
|
effect of convertible notes hedges6 |
|
(27 |
) |
|
|
- |
|
|
|
|
|
Adjusted weighted
average diluted shares outstanding |
|
27,120 |
|
|
|
25,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Diluted EPS from continuing operations, net of taxes |
$ |
4.93 |
|
|
$ |
4.50 |
|
|
|
9.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
1
U.S. Tax Cuts and Jobs Act bonus was granted to eligible personnel
below the officer level following enactment. |
|
2
Costs associated with transactions in 2017 primarily related to our
acquisition of Southern Air. Costs associated with transactions in
2016 primarily related to the Amazon transaction, including costs
resulting from a change in control under certain benefit plans
related to the Amazon transaction, and our acquisition of Southern
Air. |
|
3
Noncash expenses and income, net in 2017 primarily related to
amortization of debt discount on outstanding convertible notes and
amortization of customer incentive asset related to outstanding
warrants. Noncash expenses and income, net in 2016 primarily
related to amortization of debt discount on outstanding convertible
notes. |
|
4
Income tax effect of reconciling items in 2017 is primarily
impacted by a nondeductible customer incentive related to
outstanding warrants. Income tax effect of reconciling items in
2016 is primarily impacted by a nondeductible customer incentive
and nondeductible compensation expenses resulting from a change in
control, as defined under certain of the company’s benefit plans,
both related to outstanding warrants. |
|
5
Income tax effect of U.S. Tax Cuts and Jobs Act is due to the
revaluation of our U.S. net deferred tax liability. |
|
6
Impact of the economic benefit from convertible note hedges in
offsetting dilution from convertible notes. |
|
|
|
Atlas Air Worldwide Holdings,
Inc. |
|
Reconciliation to Non-GAAP
Measures |
|
(in thousands, except per share data) |
|
(Unaudited) |
|
|
|
|
For the Three Months Ended |
|
|
December 31,
2017 |
|
|
December 31,
2016 |
|
|
|
|
|
|
|
|
|
Net Cash
Provided by Operating Activities |
$ |
136,613 |
|
|
$ |
131,338 |
|
Less: |
|
|
|
|
|
|
|
Capital expenditures |
|
21,160 |
|
|
|
9,845 |
|
Capitalized interest |
$ |
1,756 |
|
|
$ |
1,207 |
|
Free Cash
Flow1 |
$ |
113,697 |
|
|
$ |
120,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months Ended |
|
|
December 31,
2017 |
|
|
December 31,
2016 |
|
|
|
|
|
|
|
|
|
Net Cash
Provided by Operating Activities |
$ |
331,719 |
|
|
$ |
232,182 |
|
Less: |
|
|
|
|
|
|
|
Capital expenditures |
|
87,555 |
|
|
|
46,717 |
|
Capitalized interest |
$ |
7,389 |
|
|
$ |
3,313 |
|
Free Cash
Flow1 |
$ |
236,775 |
|
|
$ |
182,152 |
|
|
|
|
|
|
|
|
|
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 31,2017 |
|
|
December 31,2016 |
|
|
December 31,2017 |
|
|
December 31,2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations, net of taxes |
$ |
209,454 |
|
|
$ |
28,736 |
|
|
$ |
224,338 |
|
|
$ |
42,625 |
|
Income tax expense |
|
(102,445 |
) |
|
|
25,712 |
|
|
|
(80,966 |
) |
|
|
46,791 |
|
Income from
continuing operations before income taxes |
|
107,009 |
|
|
|
54,448 |
|
|
|
143,372 |
|
|
|
89,416 |
|
U.S. Tax Cuts and Jobs
Act special bonus1 |
|
3,684 |
|
|
|
- |
|
|
|
3,684 |
|
|
|
- |
|
Noncash expenses and
income, net2 |
|
6,397 |
|
|
|
2,304 |
|
|
|
17,934 |
|
|
|
8,111 |
|
Gain on disposal of
aircraft |
|
(95 |
) |
|
|
- |
|
|
|
(31 |
) |
|
|
(11 |
) |
Special charge3 |
|
106 |
|
|
|
3,509 |
|
|
|
106 |
|
|
|
10,140 |
|
Costs associated with
transactions4 |
|
1,106 |
|
|
|
(2,057 |
) |
|
|
4,772 |
|
|
|
45,598 |
|
Accrual for legal
matters and professional fees |
|
2,529 |
|
|
|
(312 |
) |
|
|
4,129 |
|
|
|
6,465 |
|
Charges associated with
refinancing debt |
|
- |
|
|
|
- |
|
|
|
167 |
|
|
|
132 |
|
Unrealized gain on
financial instruments |
|
(23,692 |
) |
|
|
27,901 |
|
|
|
12,533 |
|
|
|
2,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pretax
income |
|
97,044 |
|
|
|
85,793 |
|
|
|
186,666 |
|
|
|
162,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income)
expense, net5 |
|
19,924 |
|
|
|
17,296 |
|
|
|
75,631 |
|
|
|
70,616 |
|
Other non-operating
expenses (income) |
|
(30 |
) |
|
|
442 |
|
|
|
(387 |
) |
|
|
70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating income |
|
116,938 |
|
|
|
103,531 |
|
|
|
261,910 |
|
|
|
233,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
45,800 |
|
|
|
39,154 |
|
|
|
166,713 |
|
|
|
148,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as
adjusted6 |
$ |
162,738 |
|
|
$ |
142,685 |
|
|
$ |
428,623 |
|
|
$ |
382,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense |
$ |
(102,445 |
) |
|
$ |
25,712 |
|
|
$ |
(80,966 |
) |
|
$ |
46,791 |
|
Income tax effect of
reconciling items7 |
|
(2,901 |
) |
|
|
(1,116 |
) |
|
|
(3,962 |
) |
|
|
(1,651 |
) |
Impact of U.S. Tax Cuts and Jobs Act |
|
(129,977 |
) |
|
|
- |
|
|
|
(129,977 |
) |
|
|
- |
|
Adjusted income tax
expense |
|
30,433 |
|
|
|
26,828 |
|
|
|
52,973 |
|
|
|
48,442 |
|
Adjusted pretax
income |
$ |
97,044 |
|
|
$ |
85,793 |
|
|
$ |
186,666 |
|
|
$ |
162,739 |
|
Adjusted
effective tax rate |
|
31.4 |
% |
|
|
31.3 |
% |
|
|
28.4 |
% |
|
|
29.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
U.S. Tax Cuts and Jobs Act bonus was granted to eligible personnel
below the officer level following enactment. |
|
2
Reflects impact of noncash expenses and income related to
convertible notes, debt and investments, and amortization of
customer incentive related to outstanding warrants. |
|
3
Special charge in 2016 primarily represented a loss on engines held
for sale. |
|
4
Costs associated with transactions in 2017 primarily related to our
acquisition of Southern Air. Costs associated with transactions in
2016 primarily related to the Amazon transaction, including costs
resulting from a change in control under certain benefit
plans. |
|
5
Reflects impact of noncash expenses and income related to
convertible notes, debt, operating leases and investments. |
|
6
Adjusted EBITDA: Earnings before interest, taxes, depreciation,
amortization, noncash interest expenses and income, net, gain on
disposal of aircraft, special charge, costs associated with
transactions, accrual for legal matters and professional fees,
charges associated with refinancing debt, and unrealized loss
(gain) on financial instruments, as applicable. |
|
7
See Non-GAAP reconciliation of Adjusted income from continuing
operations, net of taxes. |
|
|
|
|
|
Atlas Air Worldwide Holdings,
Inc. |
|
Operating Statistics and Traffic
Results |
|
(Unaudited) |
|
|
|
|
For the Three
MonthsEnded |
|
|
Increase/ |
|
|
For the Twelve
MonthsEnded |
|
|
Increase/ |
|
|
December 31,2017 |
|
|
December 31,2016 |
|
|
(Decrease) |
|
|
December 31,2017 |
|
|
December 31,2016 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block
Hours |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
55,271 |
|
|
|
43,081 |
|
|
|
12,190 |
|
|
|
189,248 |
|
|
|
151,919 |
|
|
|
37,329 |
|
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cargo |
|
11,718 |
|
|
|
13,678 |
|
|
|
(1,960 |
) |
|
|
42,625 |
|
|
|
40,376 |
|
|
|
2,249 |
|
Passenger |
|
4,009 |
|
|
|
3,650 |
|
|
|
359 |
|
|
|
18,912 |
|
|
|
16,403 |
|
|
|
2,509 |
|
Other |
|
565 |
|
|
|
397 |
|
|
|
168 |
|
|
|
2,017 |
|
|
|
1,746 |
|
|
|
271 |
|
Total
Block Hours |
|
71,563 |
|
|
|
60,806 |
|
|
|
10,757 |
|
|
|
252,802 |
|
|
|
210,444 |
|
|
|
42,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Per
Block Hour |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
$ |
5,442 |
|
|
$ |
5,437 |
|
|
$ |
5 |
|
|
$ |
5,225 |
|
|
$ |
5,496 |
|
|
$ |
(272 |
) |
Charter |
$ |
18,520 |
|
|
$ |
15,305 |
|
|
$ |
3,215 |
|
|
$ |
16,812 |
|
|
$ |
15,534 |
|
|
$ |
1,278 |
|
Cargo |
$ |
19,013 |
|
|
$ |
14,827 |
|
|
$ |
4,186 |
|
|
$ |
17,015 |
|
|
$ |
14,861 |
|
|
$ |
2,155 |
|
Passenger |
$ |
17,079 |
|
|
$ |
17,094 |
|
|
$ |
(15 |
) |
|
$ |
16,354 |
|
|
$ |
17,191 |
|
|
$ |
(837 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Utilization (block hours per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI1 |
|
9.2 |
|
|
|
9.3 |
|
|
|
(0.1 |
) |
|
|
9.0 |
|
|
|
8.9 |
|
|
|
0.1 |
|
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cargo |
|
12.2 |
|
|
|
12.7 |
|
|
|
(0.5 |
) |
|
|
10.2 |
|
|
|
9.6 |
|
|
|
0.6 |
|
Passenger |
|
7.0 |
|
|
|
6.5 |
|
|
|
0.5 |
|
|
|
7.7 |
|
|
|
8.0 |
|
|
|
(0.3 |
) |
All
Operating Aircraft1,2 |
|
9.5 |
|
|
|
9.7 |
|
|
|
(0.2 |
) |
|
|
9.2 |
|
|
|
9.0 |
|
|
|
0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
fuel cost per gallon |
$ |
1.99 |
|
|
$ |
1.65 |
|
|
$ |
0.34 |
|
|
$ |
1.89 |
|
|
$ |
1.68 |
|
|
$ |
0.21 |
|
Fuel
gallons consumed (000s) |
|
46,666 |
|
|
|
51,614 |
|
|
|
(4,948 |
) |
|
|
176,093 |
|
|
|
163,862 |
|
|
|
12,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
ACMI and All Operating Aircraft averages in the fourth quarter and
12 months of 2017 reflect the impact of increases in the number of
CMI aircraft and amount of CMI flying compared with the same
periods of 2016. |
|
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 MonthsEnded |
|
|
Increase/ |
|
|
For the Twelve Months Ended |
|
|
Increase/ |
|
December 31,2017 |
|
|
December 31,2016 |
|
|
(Decrease) |
|
|
December 31,2017 |
|
|
December 31,2016 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Operating Fleet (average aircraft equivalents during
the period) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
747-8F
Cargo |
|
8.7 |
|
|
|
7.8 |
|
|
|
0.9 |
|
|
|
8.2 |
|
|
|
8.1 |
|
|
|
0.1 |
747-400
Cargo |
|
17.4 |
|
|
|
13.7 |
|
|
|
3.7 |
|
|
|
14.8 |
|
|
|
13.1 |
|
|
|
1.7 |
747-400
Dreamlifter |
|
2.9 |
|
|
|
2.4 |
|
|
|
0.5 |
|
|
|
3.0 |
|
|
|
2.8 |
|
|
|
0.2 |
777-200
Cargo |
|
5.0 |
|
|
|
5.0 |
|
|
|
- |
|
|
|
5.0 |
|
|
|
3.7 |
|
|
|
1.3 |
767-300
Cargo |
|
15.2 |
|
|
|
5.3 |
|
|
|
9.9 |
|
|
|
10.4 |
|
|
|
4.3 |
|
|
|
6.1 |
767-200
Cargo |
|
9.0 |
|
|
|
9.0 |
|
|
|
- |
|
|
|
9.0 |
|
|
|
9.0 |
|
|
|
- |
737-400
Cargo |
|
5.0 |
|
|
|
5.0 |
|
|
|
- |
|
|
|
5.0 |
|
|
|
3.7 |
|
|
|
1.3 |
747-400
Passenger |
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
767-200
Passenger |
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
Total |
|
65.2 |
|
|
|
50.2 |
|
|
|
15.0 |
|
|
|
57.4 |
|
|
|
46.7 |
|
|
|
10.7 |
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
747-8F
Cargo |
|
1.3 |
|
|
|
2.2 |
|
|
|
(0.9 |
) |
|
|
1.8 |
|
|
|
1.9 |
|
|
|
(0.1) |
747-400
Cargo |
|
9.1 |
|
|
|
9.5 |
|
|
|
(0.4 |
) |
|
|
9.7 |
|
|
|
9.6 |
|
|
|
0.1 |
747-400
Passenger |
|
2.0 |
|
|
|
2.0 |
|
|
|
- |
|
|
|
2.0 |
|
|
|
2.0 |
|
|
|
- |
767-300
Passenger |
|
4.2 |
|
|
|
4.1 |
|
|
|
0.1 |
|
|
|
4.7 |
|
|
|
3.6 |
|
|
|
1.1 |
Total |
|
16.6 |
|
|
|
17.8 |
|
|
|
(1.2 |
) |
|
|
18.2 |
|
|
|
17.1 |
|
|
|
1.1 |
Dry Leasing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
777-200
Cargo |
|
6.0 |
|
|
|
6.0 |
|
|
|
- |
|
|
|
6.0 |
|
|
|
6.0 |
|
|
|
- |
767-300
Cargo |
|
12.1 |
|
|
|
3.0 |
|
|
|
9.1 |
|
|
|
7.5 |
|
|
|
2.3 |
|
|
|
5.2 |
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 |
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
Total |
|
21.1 |
|
|
|
12.0 |
|
|
|
9.1 |
|
|
|
16.5 |
|
|
|
11.3 |
|
|
|
5.2 |
|
|
(12.1 |
) |
|
|
(3.0 |
) |
|
|
(9.1 |
) |
|
|
(7.5 |
) |
|
|
(2.3 |
) |
|
|
(5.2) |
Less: Aircraft Dry Leased to CMI customers |
Total Operating AverageAircraft |
|
90.8 |
|
|
|
77.0 |
|
|
|
13.8 |
|
|
|
84.6 |
|
|
|
72.8 |
|
|
|
11.8 |
|
|
Equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Out
of Service2 |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
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. |
|
|
Contacts: |
Dan Loh (Investors)
– (914) 701-8200 |
|
Elizabeth Roach (Media)
– (914) 701-6576 |
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