Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced
third-quarter 2020 net income of $74.1 million, or $2.78 per
diluted share, compared with net income of $60.0 million, or $2.32
per diluted share, in the third quarter of 2019.
On an adjusted basis, EBITDA totaled $196.3
million in the third quarter this year compared with $95.6 million
in the third quarter of 2019. Adjusted net income in the third
quarter of 2020 totaled $82.7 million, or $2.84 per diluted share,
compared with $9.5 million, or $0.37 per diluted share, in the
third quarter of 2019.
“The positive momentum of our business continued
in the third quarter, despite a more complex, costly and
challenging operating environment caused by the COVID-19 pandemic,”
said Chief Executive Officer John W. Dietrich. “Our performance is
the result of our entire team pulling together to increase
utilization of our aircraft and execute on strong market demand and
higher yields.
“We continue to broaden our customer base and
grow with existing customers to maximize market opportunities. We
further increased our roster of long-term charter customers,
including the addition of Cainiao, the logistics arm of Alibaba, as
well as expanding with HP Inc. and several large global freight
forwarders.
“We also expanded operations for Amazon, where
we began CMI flying three additional 737 freighters since
September. We are now operating eight 737s for Amazon,
complementing the large fleet of 767s that we have with them.
“Importantly, these long-term customer
agreements provide secure and attractive earnings streams and
deepen our strategic position in the fast-growing e-commerce
sector, as well as in important global markets like China and South
America.
“We are seeing substantial demand for our
long-haul widebody services, both near- and long-term, at
attractive yields. We are leveraging the agility of our business
model and the scale of our fleet and global operations to serve
this increased customer demand.
“We are also excited to announce that Titan
Aircraft Investments, the joint venture between our Titan
subsidiary and Bain Capital Credit, has arranged $500 million in
financing facilities. The funds are available for the acquisition
of freighter aircraft on lease and passenger aircraft for
conversion to freighters. This important step will enable the joint
venture to serve the strong market demand for leasing
freighters.
“I am proud of the important role Atlas is
playing in responding to this pandemic globally, and thank our crew
and ground staff for their dedication in delivering safe and
reliable service. We are taking wide-ranging precautions to
safeguard our employees, while navigating through this complex
operating backdrop.
“Air cargo has always been a vital component in
the global supply chain as it provides speed, security and
reliability that are unmatched by other modes of transportation. We
remain committed to moving goods the world needs most, including
medical equipment, pharmaceuticals, personal protective equipment,
e-commerce, and other manufacturing and consumer products. We are
also actively preparing for our expected role in the timely
distribution of vaccines.”
Mr. Dietrich continued: “Looking to the fourth
quarter, and subject to any material COVID-19 developments, we
anticipate solid volumes and yields driven by continued e-commerce
growth and end-of-the-year airfreight demand, coupled with the
reduction of available cargo capacity in the market. To meet
customer demand, we are reactivating our fourth 747 freighter that
had been previously parked. This will add to the three 747
freighters and the 777 we placed back into service during the
second quarter of 2020.
“As a result, we anticipate fourth-quarter
revenue of about $850 million and adjusted EBITDA of approximately
$215 million.*
“We also expect fourth-quarter 2020 adjusted net
income to grow approximately 25% compared with adjusted net income
of $82.7 million in the third quarter of this year.
“On a full-year basis, we now anticipate revenue
of approximately $3.1 billion and adjusted EBITDA of about $780
million in 2020.”
He concluded: “Atlas is continuing to adapt and
navigate through the challenges of 2020. With our talented team,
world-class fleet, strong balance sheet and agile business model,
we will continue to serve the demand for airfreight and deliver
high-quality service for our customers – in these uncertain times
and beyond.”
Third-Quarter
Results
Volumes in the third quarter of 2020 increased
to 90,528 block hours compared with 79,310 in the third quarter of
2019, with revenue rising to $809.9 million compared with $648.5
million in the prior-year quarter.
Higher ACMI segment revenue during the period
primarily reflected an increase in the average revenue per block
hour and increased flying, partially offset by the redeployment of
747-400 aircraft to the Charter segment. ACMI segment contribution
during the quarter was primarily driven by increased aircraft
utilization, reflecting strong demand from our customers, and a
reduction in aircraft rent and depreciation. Partially offsetting
these improvements were higher pilot costs related to premium pay
for pilots operating in certain areas significantly impacted by
COVID-19 and increased pay rates resulting from our recent interim
agreement with our pilots. In addition, ACMI segment contribution
reflected higher heavy maintenance, including additional engine
overhauls to take advantage of slot availability and opportunities
for vendor pricing discounts, and the redeployment of 747-400
aircraft to the Charter segment to support long-term charter
programs.
Higher Charter segment revenue during the
quarter was primarily due to an increase in flying, partially
offset by a decrease in the average revenue per block hour due to
lower fuel costs. Charter segment contribution was primarily driven
by the increase in commercial cargo yields (excluding fuel) and
demand for freighter aircraft, reflecting a reduction of available
capacity in the market, the disruption of global supply chains due
to the pandemic and our ability to increase utilization. In
addition, segment contribution benefited from a reduction in
aircraft rent and depreciation, and the redeployment of 747-400
aircraft from ACMI and the operation of a 777-200 freighter from
Dry Leasing. These improvements were partially offset by: higher
heavy maintenance expense, including additional engine overhauls to
take advantage of slot availability and opportunities for vendor
pricing discounts; higher pilot costs related to premium pay for
pilots operating in certain areas significantly impacted by
COVID-19; and increased pay rates resulting from our recent interim
agreement with our pilots.
In Dry Leasing, lower segment revenue and
contribution in the third quarter of 2020 primarily related to
changes in leases and the disposition of certain nonessential Dry
Leased aircraft during the first quarter of 2020.
Lower unallocated income and expenses, net,
during the quarter primarily reflected CARES Act grant income of
$64.2 million.
Reported earnings in the third quarter of 2020
included an unrealized loss on outstanding warrants of $43.6
million, compared with an unrealized gain on outstanding warrants
of $83.2 million in the year-ago period.
Reported earnings in the third quarter of 2020 also
included an effective income tax rate of 32.8%, due mainly to
nondeductible changes in the value of outstanding warrants. On an
adjusted basis, our results reflected an effective income tax rate
of 22.8%.
Nine-Month
Results
Reported results for the nine months ended
September 30, 2020 reflected net income of $176.3 million, or $6.72
per diluted share, which included a $73.4 million unrealized loss
on financial instruments. Results compared with net income of
$117.1 million, or $1.34 per diluted share, which included an
unrealized gain on financial instruments of $78.9 million, for the
nine months ended September 30, 2019.
On an adjusted basis, EBITDA totaled $564.5
million in the first nine months of 2020 compared with $300.1
million in the first nine months of 2019. For the nine months ended
September 30, 2020, adjusted net income totaled $235.8 million, or
$8.71 per diluted share, compared with $41.4 million, or $1.54 per
diluted share, in the first nine months of 2019.
Cash
At September 30, 2020, our cash and cash
equivalents, restricted cash and short-term investments totaled
$729.3 million, compared with $114.3 million at December 31,
2019.
Our improved cash balance primarily reflected
cash provided by operating activities, and also included the funds
we received through the Payroll Support Program available to air
cargo carriers under the CARES Act, partially offset by cash used
for investing and financing activities.
Net cash used for investing activities during
the first nine months of 2020 primarily related to capital
expenditures and payments for flight equipment and modifications,
including spare engines and GEnx engine performance upgrade kits,
partially offset by proceeds from the disposal of aircraft.
Net cash used for financing activities during
the first nine months of 2020 primarily related to payments on debt
obligations, including our revolving credit facility, partially
offset by debt issuances.
To mitigate the impact of any continuation or
worsening of the pandemic, we have implemented a number of
cost-reduction initiatives, including a significant reduction in
nonessential employee travel and the use of contractors. We have
also taken actions to increase liquidity and strengthen our
financial position, such as the sale of certain nonessential assets
and our participation in the Payroll Support Program under the
CARES Act.
Amazon
Warrants
On October 9, 2020, Amazon elected a cashless
exercise with respect to 3,607,477 shares vested under a Warrant
issued in 2016. As a result, Amazon acquired 1,375,421 shares of
AAWW common stock, representing approximately 4.99% (after the
exercise) of our outstanding common shares.
2020
Outlook*
Looking to the fourth quarter, and subject to
any material COVID-19 developments, we anticipate solid volumes and
yields driven by continued e-commerce growth and end-of-the-year
airfreight demand, coupled with the reduction of available cargo
capacity in the market.
To meet customer demand, we are reactivating our
fourth 747 freighter that had been previously parked. This will add
to the three 747 freighters and the 777 we placed back into service
during the second quarter of 2020.
As a result, we expect to fly approximately
95,000 block hours in the fourth quarter of 2020, with about 65% of
the hours in ACMI and the remainder in Charter.
We also anticipate revenue of about $850 million
and adjusted EBITDA of approximately $215 million. In addition, we
expect fourth-quarter 2020 adjusted net income to grow
approximately 25% compared with adjusted net income of $82.7
million in the third quarter of this year.*
Aircraft maintenance expense in the fourth
quarter of 2020 is expected to total about $116 million, with
depreciation and amortization totaling around $65 million. Core
capital expenditures, which exclude aircraft and engine purchases,
are projected to total approximately $25 to $35 million, mainly for
parts and components for our fleet.
We also now anticipate full-year 2020 revenue of
approximately $3.1 billion and adjusted EBITDA of about $780
million.
We estimate our full-year 2020 adjusted
effective income tax rate will be approximately 23%.
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 third-quarter 2020 financial and
operating results at 11:00 a.m. Eastern Time on Thursday, November
5, 2020.
Interested parties may listen to the call live
at Atlas Air Worldwide’s Investor site or at
https://edge.media-server.com/mmc/p/ps7u7bvv.
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 November 12 by dialing (855)
859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.)
and using Access Code 1347526#.
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 (loss); 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.
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 improved 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.
*We provide guidance 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
the ultimate outcome of certain significant items. The principal
item is the impact on our results of our outstanding warrant
liability, which is highly dependent on the change in our stock
price during the period reported. 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., 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 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,” “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; our ability to coordinate with Amazon to accept newly
converted aircraft; 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 foreign government trade
policies; economic conditions; the impact of geographical events or
health epidemics such as the COVID-19 pandemic; 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; the
outcome of pending negotiations with our pilots’ union; 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; weather conditions; government
legislation and regulation; consumer perceptions of the companies’
products and services; anticipated and future litigation; and other
risks and uncertainties set forth from time to time in Atlas Air
Worldwide’s reports to the United States Securities and Exchange
Commission.
For additional information, we refer you to the
risk factors set forth under the heading “Risk Factors” in the most
recent Annual Report on Form 10-K and subsequent reports on Form
10-Q filed by Atlas Air Worldwide with the Securities and Exchange
Commission. Other factors and assumptions not identified above may
also affect the forward-looking statements, and these other factors
and assumptions may also cause actual results to differ materially
from those discussed.
Except as stated in this release, Atlas Air
Worldwide is not providing guidance or estimates regarding its
anticipated business and financial performance for 2020 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 Months Ended |
|
For the Nine
Months Ended |
|
|
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenue |
|
$ |
809,886 |
|
|
$ |
648,539 |
|
|
$ |
2,278,641 |
|
|
$ |
1,992,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits |
|
|
194,265 |
|
|
|
145,987 |
|
|
|
534,600 |
|
|
|
432,911 |
|
Maintenance, materials and repairs |
|
|
116,634 |
|
|
|
88,240 |
|
|
|
379,086 |
|
|
|
305,331 |
|
Aircraft fuel |
|
|
118,113 |
|
|
|
123,132 |
|
|
|
309,673 |
|
|
|
351,611 |
|
Depreciation and amortization |
|
|
65,595 |
|
|
|
62,499 |
|
|
|
189,005 |
|
|
|
190,669 |
|
Travel |
|
|
37,731 |
|
|
|
49,110 |
|
|
|
114,749 |
|
|
|
140,513 |
|
Navigation fees, landing fees and other rent |
|
|
42,870 |
|
|
|
32,270 |
|
|
|
109,909 |
|
|
|
110,468 |
|
Passenger and ground handling services |
|
|
36,266 |
|
|
|
34,453 |
|
|
|
98,355 |
|
|
|
97,138 |
|
Aircraft rent |
|
|
24,239 |
|
|
|
40,048 |
|
|
|
72,522 |
|
|
|
122,271 |
|
Gain on disposal of aircraft |
|
|
(163 |
) |
|
|
|
|
|
(6,878 |
) |
|
|
- |
|
Special charge |
|
|
547 |
|
|
|
18,861 |
|
|
|
16,481 |
|
|
|
22,130 |
|
Transaction-related expenses |
|
|
490 |
|
|
|
324 |
|
|
|
2,286 |
|
|
|
3,585 |
|
Other |
|
|
54,107 |
|
|
|
54,494 |
|
|
|
157,929 |
|
|
|
160,548 |
|
Total Operating Expenses |
|
|
690,694 |
|
|
|
649,418 |
|
|
|
1,977,717 |
|
|
|
1,937,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
|
119,192 |
|
|
|
(879 |
) |
|
|
300,924 |
|
|
|
54,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating Expenses
(Income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(225 |
) |
|
|
(653 |
) |
|
|
(929 |
) |
|
|
(3,975 |
) |
Interest expense |
|
|
28,524 |
|
|
|
30,117 |
|
|
|
86,749 |
|
|
|
90,515 |
|
Capitalized interest |
|
|
(203 |
) |
|
|
(853 |
) |
|
|
(528 |
) |
|
|
(1,943 |
) |
Loss on early extinguishment of debt |
|
|
7 |
|
|
|
559 |
|
|
|
81 |
|
|
|
804 |
|
Unrealized loss (gain) on financial instruments |
|
|
43,604 |
|
|
|
(83,175 |
) |
|
|
73,351 |
|
|
|
(78,900 |
) |
Other (income) expense, net |
|
|
(62,689 |
) |
|
|
1,434 |
|
|
|
(112,081 |
) |
|
|
(596 |
) |
Total Non-operating Expenses (Income) |
|
|
9,018 |
|
|
|
(52,571 |
) |
|
|
46,643 |
|
|
|
5,905 |
|
Income before income taxes |
|
|
110,174 |
|
|
|
51,692 |
|
|
|
254,281 |
|
|
|
49,060 |
|
Income tax expense (benefit) |
|
|
36,120 |
|
|
|
(8,282 |
) |
|
|
77,962 |
|
|
|
(68,072 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
74,054 |
|
|
$ |
59,974 |
|
|
$ |
176,319 |
|
|
$ |
117,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.83 |
|
|
$ |
2.32 |
|
|
$ |
6.76 |
|
|
$ |
4.54 |
|
Diluted |
|
$ |
2.78 |
|
|
$ |
2.32 |
|
|
$ |
6.72 |
|
|
$ |
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
26,135 |
|
|
|
25,854 |
|
|
|
26,077 |
|
|
|
25,814 |
|
Diluted |
|
|
26,619 |
|
|
|
25,854 |
|
|
|
26,256 |
|
|
|
26,909 |
|
Atlas Air Worldwide Holdings,
Inc.Consolidated Balance
Sheets(in thousands, except share data)(Unaudited)
|
|
September 30,
2020 |
|
|
December
31,
2019 |
|
Assets |
|
|
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
717,867 |
|
|
$ |
103,029 |
|
Restricted cash |
|
|
11,466 |
|
|
|
10,401 |
|
Short-term investments |
|
|
- |
|
|
|
879 |
|
Accounts receivable, net of allowance of $776 and $1,822,
respectively |
|
|
268,376 |
|
|
|
290,119 |
|
Prepaid expenses, assets held for sale and other current
assets |
|
|
171,780 |
|
|
|
228,103 |
|
Total current assets |
|
|
1,169,489 |
|
|
|
632,531 |
|
Property and
Equipment |
|
|
|
|
|
|
|
|
Flight equipment |
|
|
5,001,481 |
|
|
|
4,880,424 |
|
Ground equipment |
|
|
88,327 |
|
|
|
83,584 |
|
Less: accumulated depreciation |
|
|
(1,113,964 |
) |
|
|
(977,883 |
) |
Flight equipment modifications in progress |
|
|
49,246 |
|
|
|
67,101 |
|
Property and equipment, net |
|
|
4,025,090 |
|
|
|
4,053,226 |
|
Other
Assets |
|
|
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
182,657 |
|
|
|
231,133 |
|
Deferred costs and other assets |
|
|
373,074 |
|
|
|
391,895 |
|
Intangible assets, net and goodwill |
|
|
72,334 |
|
|
|
76,856 |
|
Total
Assets |
|
$ |
5,822,644 |
|
|
$ |
5,385,641 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity |
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
92,805 |
|
|
$ |
79,683 |
|
Accrued liabilities |
|
|
645,094 |
|
|
|
481,725 |
|
Current portion of long-term debt and finance leases |
|
|
296,112 |
|
|
|
395,781 |
|
Current portion of long-term operating leases |
|
|
139,152 |
|
|
|
141,973 |
|
Total current liabilities |
|
|
1,173,163 |
|
|
|
1,099,162 |
|
Other
Liabilities |
|
|
|
|
|
|
|
|
Long-term debt and finance leases |
|
|
2,073,855 |
|
|
|
1,984,902 |
|
Long-term operating leases |
|
|
281,394 |
|
|
|
392,832 |
|
Deferred taxes |
|
|
145,952 |
|
|
|
74,040 |
|
Financial instruments and other liabilities |
|
|
130,857 |
|
|
|
42,526 |
|
Total other liabilities |
|
|
2,632,058 |
|
|
|
2,494,300 |
|
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; 31,497,228 and 31,048,842 shares
issued, 26,138,539 and 25,870,876 shares outstanding (net of
treasury stock), as of September 30, 2020 and
December 31, 2019, respectively |
|
|
315 |
|
|
|
310 |
|
Additional paid-in-capital |
|
|
813,858 |
|
|
|
761,715 |
|
Treasury stock, at cost; 5,358,689 and 5,177,966 shares,
respectively |
|
|
(217,786 |
) |
|
|
(213,871 |
) |
Accumulated other comprehensive loss |
|
|
(2,126 |
) |
|
|
(2,818 |
) |
Retained earnings |
|
|
1,423,162 |
|
|
|
1,246,843 |
|
Total stockholders’ equity |
|
|
2,017,423 |
|
|
|
1,792,179 |
|
Total Liabilities and
Equity |
|
$ |
5,822,644 |
|
|
$ |
5,385,641 |
|
1 Balance sheet debt at September 30,
2020 totaled $2,370.0 million, including the impact of $55.2
million of unamortized discount and debt issuance costs of $31.3
million, compared with $2,380.7 million, including the impact of
$68.6 million of unamortized discount and debt issuance costs of
$35.1 million at December 31, 2019. 2 The face value of
our debt at September 30, 2020 totaled $2,456.5 million, compared
with $2,484.4 million on December 31, 2019.
Atlas Air Worldwide Holdings,
Inc.Consolidated Statements of
Cash Flows(in thousands)(Unaudited)
|
|
For the Nine Months
Ended |
|
|
|
September 30,
2020 |
|
|
September 30,
2019 |
|
|
|
|
|
|
|
|
|
|
Operating
Activities: |
|
|
|
|
|
|
|
|
Net Income |
|
$ |
176,319 |
|
|
$ |
117,132 |
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile Net
Income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
240,826 |
|
|
|
241,284 |
|
|
Accretion of debt securities discount |
|
|
(2 |
) |
|
|
(237 |
) |
|
Provision for (reversal of) expected credit losses |
|
|
76 |
|
|
|
(83 |
) |
|
Loss on early extinguishment of debt |
|
|
81 |
|
|
|
804 |
|
|
Special charge, net of cash payments |
|
|
16,481 |
|
|
|
22,130 |
|
|
Unrealized loss (gain) on financial instruments |
|
|
73,351 |
|
|
|
(78,900 |
) |
|
Gain on disposal of aircraft |
|
|
(6,878 |
) |
|
|
- |
|
|
Deferred taxes |
|
|
75,331 |
|
|
|
(68,552 |
) |
|
Stock-based compensation |
|
|
15,816 |
|
|
|
16,553 |
|
|
Changes in: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
23,072 |
|
|
|
1,397 |
|
|
Prepaid expenses, current assets and other assets |
|
|
(39,823 |
) |
|
|
(69,254 |
) |
|
Accounts payable, accrued liabilities and other liabilities |
|
|
208,058 |
|
|
|
11,016 |
|
|
Net cash provided by operating
activities |
|
|
782,708 |
|
|
|
193,290 |
|
|
Investing
Activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(45,134 |
) |
|
|
(107,594 |
) |
|
Payments for flight equipment and modifications |
|
|
(102,777 |
) |
|
|
(153,706 |
) |
|
Proceeds from insurance |
|
|
- |
|
|
|
38,133 |
|
|
Proceeds from investments |
|
|
881 |
|
|
|
14,367 |
|
|
Proceeds from disposal of aircraft |
|
|
45,660 |
|
|
|
- |
|
|
Net cash used for investing
activities |
|
|
(101,370 |
) |
|
|
(208,800 |
) |
|
Financing
Activities: |
|
|
|
|
|
|
|
|
Proceeds from debt issuance |
|
|
401,419 |
|
|
|
93,723 |
|
|
Payment of debt issuance costs |
|
|
(5,172 |
) |
|
|
(1,316 |
) |
|
Payments of debt and finance lease obligations |
|
|
(353,795 |
) |
|
|
(273,142 |
) |
|
Proceeds from revolving credit facility |
|
|
75,000 |
|
|
|
50,000 |
|
|
Payment of revolving credit facility |
|
|
(175,000 |
) |
|
|
- |
|
|
Customer maintenance reserves and deposits received |
|
|
10,465 |
|
|
|
11,717 |
|
|
Customer maintenance reserves paid |
|
|
(14,437 |
) |
|
|
(8,174 |
) |
|
Treasury shares withheld for payment of taxes |
|
|
(3,915 |
) |
|
|
(9,336 |
) |
|
Net cash used for financing
activities |
|
|
(65,435 |
) |
|
|
(136,528 |
) |
|
Net increase (decrease) in cash,
cash equivalents and restricted cash |
|
|
615,903 |
|
|
|
(152,038 |
) |
|
Cash, cash equivalents and
restricted cash at the beginning of period |
|
|
113,430 |
|
|
|
232,741 |
|
|
Cash, cash equivalents and
restricted cash at the end of period |
|
$ |
729,333 |
|
|
$ |
80,703 |
|
|
|
|
|
|
|
|
|
|
|
Noncash Investing and
Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment included in Accounts payable
and accrued liabilities |
|
$ |
11,357 |
|
|
$ |
55,610 |
|
|
Acquisition of property and equipment acquired under finance and
operating leases |
|
$ |
19,521 |
|
|
$ |
32,794 |
|
|
Customer maintenance reserves settled with sale of aircraft |
|
$ |
6,497 |
|
|
$ |
- |
|
|
Atlas Air Worldwide Holdings,
Inc.Direct
Contribution(in thousands)(Unaudited)
|
|
For the Three Months Ended |
|
|
For the Nine Months
Ended |
|
|
|
September 30,
2020 |
|
|
September
30,
2019 |
|
|
September 30,
2020 |
|
|
September 30,
2019 |
|
Operating
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
$ |
302,756 |
|
|
$ |
289,024 |
|
|
$ |
873,451 |
|
|
$ |
902,869 |
|
Charter |
|
|
470,835 |
|
|
|
324,046 |
|
|
|
1,296,011 |
|
|
|
944,839 |
|
Dry Leasing |
|
|
40,740 |
|
|
|
43,847 |
|
|
|
123,572 |
|
|
|
157,328 |
|
Customer incentive asset
amortization |
|
|
(9,858 |
) |
|
|
(12,796 |
) |
|
|
(28,414 |
) |
|
|
(26,018 |
) |
Other |
|
|
5,413 |
|
|
|
4,418 |
|
|
|
14,021 |
|
|
|
13,122 |
|
Total Operating
Revenue |
|
$ |
809,886 |
|
|
$ |
648,539 |
|
|
$ |
2,278,641 |
|
|
$ |
1,992,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
Contribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
$ |
42,822 |
|
|
$ |
33,401 |
|
|
$ |
109,624 |
|
|
$ |
114,048 |
|
Charter |
|
|
136,619 |
|
|
|
36,339 |
|
|
|
373,371 |
|
|
|
79,554 |
|
Dry Leasing |
|
|
9,627 |
|
|
|
12,028 |
|
|
|
30,046 |
|
|
|
58,646 |
|
Total Direct Contribution
for Reportable Segments |
|
|
189,068 |
|
|
|
81,768 |
|
|
|
513,041 |
|
|
|
252,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated expenses and
(income), net |
|
|
(34,409 |
) |
|
|
(93,507 |
) |
|
|
(173,439 |
) |
|
|
(255,569 |
) |
Loss on early extinguishment of
debt |
|
|
(7 |
) |
|
|
(559 |
) |
|
|
(81 |
) |
|
|
(804 |
) |
Unrealized gain (loss) on
financial instruments |
|
|
(43,604 |
) |
|
|
83,175 |
|
|
|
(73,351 |
) |
|
|
78,900 |
|
Special charge |
|
|
(547 |
) |
|
|
(18,861 |
) |
|
|
(16,481 |
) |
|
|
(22,130 |
) |
Transaction-related expenses |
|
|
(490 |
) |
|
|
(324 |
) |
|
|
(2,286 |
) |
|
|
(3,585 |
) |
Gain on disposal of aircraft |
|
|
163 |
|
|
|
- |
|
|
|
6,878 |
|
|
|
- |
|
Income before income
taxes |
|
|
110,174 |
|
|
|
51,692 |
|
|
|
254,281 |
|
|
|
49,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(225 |
) |
|
|
(653 |
) |
|
|
(929 |
) |
|
|
(3,975 |
) |
Interest expense |
|
|
28,524 |
|
|
|
30,117 |
|
|
|
86,749 |
|
|
|
90,515 |
|
Capitalized interest |
|
|
(203 |
) |
|
|
(853 |
) |
|
|
(528 |
) |
|
|
(1,943 |
) |
Loss on early extinguishment of
debt |
|
|
7 |
|
|
|
559 |
|
|
|
81 |
|
|
|
804 |
|
Unrealized (gain) loss on
financial instruments |
|
|
43,604 |
|
|
|
(83,175 |
) |
|
|
73,351 |
|
|
|
(78,900 |
) |
Other (income) expense, net |
|
|
(62,689 |
) |
|
|
1,434 |
|
|
|
(112,081 |
) |
|
|
(596 |
) |
Operating Income
(Loss) |
|
$ |
119,192 |
|
|
$ |
(879 |
) |
|
$ |
300,924 |
|
|
$ |
54,965 |
|
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: 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 before
taxes, excluding loss on early extinguishment of debt, unrealized
gain (loss) on financial instruments, special charge,
transaction-related expenses, gain (loss) 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 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, 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 |
|
|
|
|
September 30,
2020 |
|
|
|
September 30,
2019 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
$ |
74,054 |
|
|
|
$ |
59,974 |
|
|
|
23.5 |
% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
|
|
(64,211 |
) |
|
|
|
- |
|
|
|
|
|
Customer incentive asset amortization |
|
|
|
9,858 |
|
|
|
|
12,796 |
|
|
|
|
|
Special charge |
|
|
|
547 |
|
|
|
|
18,861 |
|
|
|
|
|
Leadership transition costs |
|
|
|
2,176 |
|
|
|
|
2,852 |
|
|
|
|
|
Noncash expenses and income, net2 |
|
|
|
4,527 |
|
|
|
|
4,696 |
|
|
|
|
|
Unrealized loss (gain) on financial instruments |
|
|
|
43,604 |
|
|
|
|
(83,175 |
) |
|
|
|
|
Other, net3 |
|
|
|
462 |
|
|
|
|
2,371 |
|
|
|
|
|
Income tax effect of reconciling items |
|
|
|
11,731 |
|
|
|
|
(8,859 |
) |
|
|
|
|
Adjusted
Net Income |
|
|
$ |
82,748 |
|
|
|
$ |
9,516 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding |
|
|
|
26,619 |
|
|
|
|
25,854 |
|
|
|
|
|
Add: dilutive warrant4 |
|
|
|
2,478 |
|
|
|
|
- |
|
|
|
|
|
Adjusted weighted average
diluted shares outstanding |
|
|
|
29,097 |
|
|
|
|
25,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
|
|
$ |
2.84 |
|
|
|
$ |
0.37 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months
Ended |
|
|
|
|
September 30,
2020 |
|
|
|
September 30,
2019 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
|
$ |
176,319 |
|
|
|
$ |
117,132 |
|
|
|
50.5 |
% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
|
|
(84,378 |
) |
|
|
|
- |
|
|
|
|
|
Customer incentive asset amortization |
|
|
|
28,414 |
|
|
|
|
26,018 |
|
|
|
|
|
Special charge |
|
|
|
16,481 |
|
|
|
|
22,130 |
|
|
|
|
|
Leadership transition costs |
|
|
|
5,933 |
|
|
|
|
3,393 |
|
|
|
|
|
Noncash expenses and income, net2 |
|
|
|
13,372 |
|
|
|
|
13,743 |
|
|
|
|
|
Unrealized loss (gain) on financial instruments |
|
|
|
73,351 |
|
|
|
|
(78,900 |
) |
|
|
|
|
Other, net3 |
|
|
|
(3,845 |
) |
|
|
|
4,653 |
|
|
|
|
|
Income tax effect of reconciling items |
|
|
|
10,170 |
|
|
|
|
(12,540 |
) |
|
|
|
|
Special tax item5 |
|
|
|
- |
|
|
|
|
(54,272 |
) |
|
|
|
|
Adjusted Net
Income |
|
|
$ |
235,817 |
|
|
|
$ |
41,357 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding |
|
|
|
26,256 |
|
|
|
|
26,909 |
|
|
|
|
|
Add: dilutive warrant4 |
|
|
|
826 |
|
|
|
|
- |
|
|
|
|
|
Adjusted weighted average
diluted shares outstanding |
|
|
|
27,082 |
|
|
|
|
26,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
|
|
$ |
8.71 |
|
|
|
$ |
1.54 |
|
|
|
NM |
|
Atlas Air Worldwide Holdings,
Inc.Reconciliation to Non-GAAP
Measures(in thousands, except per share
data)(Unaudited)
|
|
|
For the Three Months Ended |
|
|
|
|
September 30, 2020 |
|
|
|
September 30, 2019 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes |
|
|
$ |
110,174 |
|
|
|
$ |
51,692 |
|
|
|
NM |
|
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
|
|
(64,211 |
) |
|
|
|
- |
|
|
|
|
|
Customer incentive asset amortization |
|
|
|
9,858 |
|
|
|
|
12,796 |
|
|
|
|
|
Special charge |
|
|
|
547 |
|
|
|
|
18,861 |
|
|
|
|
|
Leadership transition costs |
|
|
|
2,176 |
|
|
|
|
2,852 |
|
|
|
|
|
Noncash expenses and income, net2 |
|
|
|
4,527 |
|
|
|
|
4,696 |
|
|
|
|
|
Unrealized loss (gain) on financial instruments |
|
|
|
43,604 |
|
|
|
|
(83,175 |
) |
|
|
|
|
Other, net3 |
|
|
|
462 |
|
|
|
|
2,371 |
|
|
|
|
|
Adjusted income before
income taxes |
|
|
|
107,137 |
|
|
|
|
10,093 |
|
|
|
NM |
|
Interest expense, net |
|
|
|
23,568 |
|
|
|
|
24,388 |
|
|
|
|
|
Other (income) expense, net |
|
|
|
(62,689 |
) |
|
|
|
1,640 |
|
|
|
|
|
Adjusted operating
income |
|
|
$ |
68,016 |
|
|
|
$ |
36,121 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
|
$ |
36,120 |
|
|
|
$ |
(8,282 |
) |
|
|
|
|
Income tax effect of
reconciling items |
|
|
|
11,731 |
|
|
|
|
(8,859 |
) |
|
|
|
|
Adjusted income tax expense (benefit) |
|
|
|
24,389 |
|
|
|
|
577 |
|
|
|
|
|
Adjusted income before
income taxes |
|
|
$ |
107,137 |
|
|
|
$ |
10,093 |
|
|
|
|
|
Effective tax
expense (benefit)
rate |
|
|
|
32.8 |
% |
|
|
|
(16.0 |
)% |
|
|
|
|
Adjusted effective tax
expense rate |
|
|
|
22.8 |
% |
|
|
|
5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
|
|
|
|
September 30, 2020 |
|
|
|
September 30, 2019 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes |
|
|
$ |
254,281 |
|
|
|
$ |
49,060 |
|
|
|
NM |
|
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
|
|
(84,378 |
) |
|
|
|
- |
|
|
|
|
|
Customer incentive asset amortization |
|
|
|
28,414 |
|
|
|
|
26,018 |
|
|
|
|
|
Special charge |
|
|
|
16,481 |
|
|
|
|
22,130 |
|
|
|
|
|
Leadership transition costs |
|
|
|
5,933 |
|
|
|
|
3,393 |
|
|
|
|
|
Noncash expenses and income, net2 |
|
|
|
13,372 |
|
|
|
|
13,743 |
|
|
|
|
|
Unrealized loss (gain) on financial instruments |
|
|
|
73,351 |
|
|
|
|
(78,900 |
) |
|
|
|
|
Other, net3 |
|
|
|
(3,845 |
) |
|
|
|
4,653 |
|
|
|
|
|
Adjusted income before
income taxes |
|
|
|
303,609 |
|
|
|
|
40,097 |
|
|
|
NM |
|
Interest expense, net |
|
|
|
71,922 |
|
|
|
|
72,273 |
|
|
|
|
|
Other (income) expense, net |
|
|
|
(112,081 |
) |
|
|
|
3,059 |
|
|
|
|
|
Adjusted operating
income |
|
|
$ |
263,450 |
|
|
|
$ |
115,429 |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
|
$ |
77,962 |
|
|
|
$ |
(68,072 |
) |
|
|
|
|
Income tax effect of
reconciling items |
|
|
|
10,170 |
|
|
|
|
(12,540 |
) |
|
|
|
|
Special tax item5 |
|
|
|
- |
|
|
|
|
(54,272 |
) |
|
|
|
|
Adjusted income tax expense (benefit) |
|
|
|
67,792 |
|
|
|
|
(1,260 |
) |
|
|
|
|
Adjusted income before
income taxes |
|
|
$ |
303,609 |
|
|
|
$ |
40,097 |
|
|
|
|
|
Effective tax expense
(benefit) rate |
|
|
|
30.7 |
% |
|
|
|
(138.8 |
)% |
|
|
|
|
Adjusted effective tax
expense (benefit) rate |
|
|
|
22.3 |
% |
|
|
|
(3.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide Holdings,
Inc.Reconciliation to Non-GAAP
Measures(in thousands, except per share
data)(Unaudited)
|
|
|
For the Three Months Ended |
|
|
|
|
September 30, 2020 |
|
|
|
September 30, 2019 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
|
$ |
74,054 |
|
|
|
$ |
59,974 |
|
|
|
23.5 |
% |
Interest expense, net |
|
|
|
28,096 |
|
|
|
|
28,611 |
|
|
|
|
|
Depreciation and
amortization |
|
|
|
65,595 |
|
|
|
|
62,499 |
|
|
|
|
|
Income tax expense
(benefit) |
|
|
|
36,120 |
|
|
|
|
(8,282 |
) |
|
|
|
|
EBITDA |
|
|
|
203,865 |
|
|
|
|
142,802 |
|
|
|
|
|
CARES Act grant income1 |
|
|
|
(64,211 |
) |
|
|
|
- |
|
|
|
|
|
Customer incentive asset
amortization |
|
|
|
9,858 |
|
|
|
|
12,796 |
|
|
|
|
|
Special charge |
|
|
|
547 |
|
|
|
|
18,861 |
|
|
|
|
|
Leadership transition
costs |
|
|
|
2,176 |
|
|
|
|
2,852 |
|
|
|
|
|
Unrealized loss (gain) on
financial instruments |
|
|
|
43,604 |
|
|
|
|
(83,175 |
) |
|
|
|
|
Other, net3 |
|
|
|
462 |
|
|
|
|
1,474 |
|
|
|
|
|
Adjusted
EBITDA |
|
|
$ |
196,301 |
|
|
|
$ |
95,610 |
|
|
|
105.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months
Ended |
|
|
|
|
September 30, 2020 |
|
|
|
September 30, 2019 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
|
$ |
176,319 |
|
|
|
$ |
117,132 |
|
|
|
50.5 |
% |
Interest expense, net |
|
|
|
85,292 |
|
|
|
|
84,597 |
|
|
|
|
|
Depreciation and
amortization |
|
|
|
189,005 |
|
|
|
|
190,669 |
|
|
|
|
|
Income tax expense
(benefit) |
|
|
|
77,962 |
|
|
|
|
(68,072 |
) |
|
|
|
|
EBITDA |
|
|
|
528,578 |
|
|
|
|
324,326 |
|
|
|
|
|
CARES Act grant income1 |
|
|
|
(84,378 |
) |
|
|
|
- |
|
|
|
|
|
Customer incentive asset
amortization |
|
|
|
28,414 |
|
|
|
|
26,018 |
|
|
|
|
|
Special charge |
|
|
|
16,481 |
|
|
|
|
22,130 |
|
|
|
|
|
Leadership transition
costs |
|
|
|
5,933 |
|
|
|
|
3,393 |
|
|
|
|
|
Unrealized loss (gain) on
financial instruments |
|
|
|
73,351 |
|
|
|
|
(78,900 |
) |
|
|
|
|
Other, net3 |
|
|
|
(3,845 |
) |
|
|
|
3,156 |
|
|
|
|
|
Adjusted
EBITDA |
|
|
$ |
564,534 |
|
|
|
$ |
300,123 |
|
|
|
88.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 CARES Act grant income in 2020 is related to
income associated with the Payroll Support Program.
2 Noncash expenses and income, net in 2020 and
2019 is primarily related to amortization of debt discount on the
convertible notes.
3 Other, net in 2020 is primarily related to a
$6.9 million net gain on the sale of aircraft, costs associated
with the Payroll Support Program, costs associated with the
refinancing of debt, costs associated with our acquisition of
Southern Air and accrual for legal matters and professional fees.
Other, net in 2019 is primarily related to a net insurance
recovery, loss on early extinguishment of debt, unique training
aircraft costs required for a customer contract and costs
associated with a customer transaction with warrants, costs
associated with our acquisition of Southern Air and accrual for
legal matters and professional fees.
4 Dilutive warrants in 2020 represented
potentially dilutive common shares related to vested warrants
issued to a customer. These warrants are excluded from Diluted EPS
prepared in accordance with GAAP when they would have been
antidilutive.
5 Special tax item in 2019 represented income
tax benefits from the completion of the 2015 IRS examination that
are not related to ongoing operations.
Atlas Air Worldwide Holdings,
Inc.Reconciliation to Non-GAAP
Measures(in thousands, except per share
data)(Unaudited)
|
|
For the Three Months Ended |
|
|
|
September 30,
2020 |
|
|
September 30,
2019 |
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities |
|
$ |
222,318 |
|
|
$ |
84,293 |
|
Less: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
20,039 |
|
|
|
30,840 |
|
Capitalized interest |
|
|
203 |
|
|
|
853 |
|
Free Cash
Flow1 |
|
$ |
202,076 |
|
|
$ |
52,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months
Ended |
|
|
|
September 30,
2020 |
|
|
September 30,
2019 |
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities |
|
$ |
782,708 |
|
|
$ |
193,290 |
|
Less: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
45,134 |
|
|
|
107,594 |
|
Capitalized interest |
|
|
528 |
|
|
|
1,943 |
|
Free Cash
Flow1 |
|
$ |
737,046 |
|
|
$ |
83,753 |
|
1 Free Cash Flow = Net Cash from Operations
minus Base Capital Expenditures and Capitalized Interest.
Base 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 Nine Months
Ended |
|
|
Increase/ |
|
|
|
September 30,
2020 |
|
|
September 30,
2019 |
|
|
(Decrease) |
|
|
September 30,
2020 |
|
|
September 30,
2019 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block
Hours |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
|
61,154 |
|
|
|
60,337 |
|
|
|
817 |
|
|
|
|
175,064 |
|
|
|
182,060 |
|
|
|
(6,996 |
) |
Charter |
|
|
27,819 |
|
|
|
18,142 |
|
|
|
9,677 |
|
|
|
|
70,069 |
|
|
|
52,463 |
|
|
|
17,606 |
|
Cargo |
|
|
23,333 |
|
|
|
12,717 |
|
|
|
10,616 |
|
|
|
|
57,749 |
|
|
|
37,084 |
|
|
|
20,665 |
|
Passenger |
|
|
4,486 |
|
|
|
5,425 |
|
|
|
(939 |
) |
|
|
|
12,320 |
|
|
|
15,379 |
|
|
|
(3,059 |
) |
Other |
|
|
1,555 |
|
|
|
831 |
|
|
|
724 |
|
|
|
|
3,609 |
|
|
|
2,128 |
|
|
|
1,481 |
|
Total Block Hours |
|
|
90,528 |
|
|
|
79,310 |
|
|
|
11,218 |
|
|
|
|
248,742 |
|
|
|
236,651 |
|
|
|
12,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Per Block
Hour |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
$ |
4,951 |
|
|
$ |
4,790 |
|
|
$ |
161 |
|
|
|
$ |
4,989 |
|
|
$ |
4,959 |
|
|
$ |
30 |
|
Charter |
|
$ |
16,925 |
|
|
$ |
17,862 |
|
|
$ |
(937 |
) |
|
|
$ |
18,496 |
|
|
$ |
18,010 |
|
|
$ |
486 |
|
Cargo |
|
$ |
16,758 |
|
|
$ |
16,745 |
|
|
$ |
13 |
|
|
|
$ |
18,560 |
|
|
$ |
17,379 |
|
|
$ |
1,181 |
|
Passenger |
|
$ |
17,792 |
|
|
$ |
20,480 |
|
|
$ |
(2,688 |
) |
|
|
$ |
18,199 |
|
|
$ |
19,530 |
|
|
$ |
(1,331 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Utilization
(block hours per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI1 |
|
|
9.3 |
|
|
|
8.1 |
|
|
|
1.2 |
|
|
|
|
8.6 |
|
|
|
8.5 |
|
|
|
0.1 |
|
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cargo |
|
|
10.7 |
|
|
|
7.7 |
|
|
|
3.0 |
|
|
|
|
9.8 |
|
|
|
8.0 |
|
|
|
1.8 |
|
Passenger |
|
|
5.0 |
|
|
|
6.6 |
|
|
|
(1.6 |
) |
|
|
|
4.6 |
|
|
|
6.3 |
|
|
|
(1.7 |
) |
All Operating Aircraft1,2 |
|
|
9.4 |
|
|
|
8.0 |
|
|
|
1.4 |
|
|
|
|
8.6 |
|
|
|
8.3 |
|
|
|
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel cost per gallon |
|
$ |
1.35 |
|
|
$ |
2.27 |
|
|
$ |
(0.92 |
) |
|
|
$ |
1.42 |
|
|
$ |
2.29 |
|
|
$ |
(0.87 |
) |
Fuel gallons consumed (000s) |
|
|
87,460 |
|
|
|
54,296 |
|
|
|
33,164 |
|
|
|
|
217,507 |
|
|
|
153,764 |
|
|
|
63,743 |
|
1 ACMI and All Operating Aircraft averages in the third
quarter and first nine months of 2020 reflect the impact of
increases in the number of CMI aircraft and amount of CMI flying
compared with the same periods of 2019.
2 Average of All Operating Aircraft excludes Dry Leasing
aircraft, which do not contribute to block-hour volumes.
Atlas Air Worldwide Holdings,
Inc.Operating Statistics and
Traffic Results(Unaudited)
|
|
For the Three Months Ended |
|
|
Increase/ |
|
|
For the Nine Months
Ended |
|
|
Increase/ |
|
|
|
September 30,
2020 |
|
|
September 30,
2019 |
|
|
(Decrease) |
|
|
September 30,
2020 |
|
|
September 30,
2019 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating
Fleet (average aircraft equivalents
during the period) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
747-8F Cargo |
|
|
8.1 |
|
|
|
7.7 |
|
|
|
0.4 |
|
|
|
8.6 |
|
|
|
8.3 |
|
|
|
0.3 |
|
747-400 Cargo |
|
|
13.0 |
|
|
|
18.3 |
|
|
|
(5.3 |
) |
|
|
13.0 |
|
|
|
18.1 |
|
|
|
(5.1 |
) |
747-400 Dreamlifter |
|
|
2.7 |
|
|
|
3.5 |
|
|
|
(0.8 |
) |
|
|
2.7 |
|
|
|
3.6 |
|
|
|
(0.9 |
) |
777-200 Cargo |
|
|
8.0 |
|
|
|
8.0 |
|
|
|
- |
|
|
|
8.0 |
|
|
|
6.8 |
|
|
|
1.2 |
|
767-300 Cargo |
|
|
23.0 |
|
|
|
25.0 |
|
|
|
(2.0 |
) |
|
|
23.6 |
|
|
|
25.2 |
|
|
|
(1.6 |
) |
767-200 Cargo |
|
|
9.0 |
|
|
|
9.0 |
|
|
|
- |
|
|
|
9.0 |
|
|
|
9.0 |
|
|
|
- |
|
767-200 Passenger |
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
737-800 Cargo |
|
|
5.5 |
|
|
|
3.7 |
|
|
|
1.8 |
|
|
|
5.2 |
|
|
|
1.8 |
|
|
|
3.4 |
|
737-400 Cargo |
|
|
0.8 |
|
|
|
5.0 |
|
|
|
(4.2 |
) |
|
|
3.5 |
|
|
|
5.0 |
|
|
|
(1.5 |
) |
Total |
|
|
71.1 |
|
|
|
81.2 |
|
|
|
(10.1 |
) |
|
|
74.6 |
|
|
|
78.8 |
|
|
|
(4.2 |
) |
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
747-8F Cargo |
|
|
1.9 |
|
|
|
2.2 |
|
|
|
(0.3 |
) |
|
|
1.3 |
|
|
|
1.6 |
|
|
|
(0.3 |
) |
747-400 Cargo |
|
|
19.9 |
|
|
|
15.7 |
|
|
|
4.2 |
|
|
|
19.2 |
|
|
|
15.3 |
|
|
|
3.9 |
|
747-400 Passenger |
|
|
5.0 |
|
|
|
4.1 |
|
|
|
0.9 |
|
|
|
5.0 |
|
|
|
4.0 |
|
|
|
1.0 |
|
777-200 Cargo |
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
0.5 |
|
|
|
- |
|
|
|
0.5 |
|
767-300 Cargo |
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
0.4 |
|
|
|
- |
|
|
|
0.4 |
|
767-300 Passenger |
|
|
4.8 |
|
|
|
4.8 |
|
|
|
- |
|
|
|
4.8 |
|
|
|
4.9 |
|
|
|
(0.1 |
) |
Total |
|
|
33.6 |
|
|
|
26.8 |
|
|
|
6.8 |
|
|
|
31.2 |
|
|
|
25.8 |
|
|
|
5.4 |
|
Dry Leasing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
777-200 Cargo |
|
|
7.0 |
|
|
|
7.0 |
|
|
|
- |
|
|
|
7.0 |
|
|
|
7.3 |
|
|
|
(0.3 |
) |
767-300 Cargo |
|
|
21.0 |
|
|
|
21.0 |
|
|
|
- |
|
|
|
21.0 |
|
|
|
21.2 |
|
|
|
(0.2 |
) |
757-200 Cargo |
|
|
- |
|
|
|
1.0 |
|
|
|
(1.0 |
) |
|
|
0.2 |
|
|
|
1.0 |
|
|
|
(0.8 |
) |
737-300 Cargo |
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
737-800 Passenger |
|
|
- |
|
|
|
1.0 |
|
|
|
(1.0 |
) |
|
|
0.2 |
|
|
|
1.0 |
|
|
|
(0.8 |
) |
Total |
|
|
29.0 |
|
|
|
31.0 |
|
|
|
(2.0 |
) |
|
|
29.4 |
|
|
|
31.5 |
|
|
|
(2.1 |
) |
Less: Aircraft Dry Leased to CMI customers |
|
|
(21.0 |
) |
|
|
(22.7 |
) |
|
|
(1.7 |
) |
|
|
(21.0 |
) |
|
|
(23.1 |
) |
|
|
(2.1 |
) |
Total Operating Average Aircraft Equivalents |
|
|
112.7 |
|
|
|
116.3 |
|
|
|
(3.6 |
) |
|
|
114.2 |
|
|
|
113.0 |
|
|
|
1.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Out-of-Service2 |
|
|
1.0 |
|
|
|
1.0 |
|
|
|
- |
|
|
|
2.7 |
|
|
|
0.7 |
|
|
|
2.0 |
|
1 ACMI average fleet excludes spare aircraft provided by CMI
customers. 2
Out-of-service includes aircraft that are either temporarily parked
or held for sale.
Contacts: Investors – InvestorRelations@atlasair.com
Media – CorpCommunications@atlasair.com
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