Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced
first-quarter 2021 net income of $89.9 million, or $3.05 per
diluted share, compared with $23.4 million, or $0.90 per diluted
share, in the first quarter of 2020.
On an adjusted basis, EBITDA rose to $181.3
million in the first quarter of 2021 compared with $121.2 million
in the prior-year period. Adjusted net income grew to $72.2
million, or $2.45 per diluted share, in the first quarter of 2021
compared with $29.9 million, or $1.15 per diluted share, in the
prior-year period.
“Our performance was driven by the strength and
flexibility of our global business model and our team continuing to
capitalize on the current airfreight environment, with demand and
yields that are well above typical seasonal levels,” said Atlas Air
Worldwide President and Chief Executive Officer John W.
Dietrich.
“Our results also benefited from flying four 747
freighters and one 777 freighter that we reintroduced to our fleet
throughout 2020 to serve customer demand.
“I would like to thank our team for continuing
to deliver safe, high-quality service for our customers in this
very challenging operating environment. We flexed our global
network and increased aircraft utilization to match airfreight
demand. We also positioned ourselves for the future by entering
into and extending numerous long-term charter agreements with
strategic customers.”
Mr. Dietrich added: “We are off to a very good
start in 2021 and are seeing continued business momentum in the
second quarter. We are closely monitoring the market and leveraging
the diversity of our business model. This includes being prepared
to capitalize on global market conditions as well as being able to
successfully adjust to any changes.
“With the strong global demand for airfreight
outpacing air cargo supply, we anticipate airfreight demand and
yields to remain strong, with capacity on long-haul trade lanes
remaining tight. International passenger flying on widebody
aircraft has been slow to recover, and will likely be last to
return as countries continue to struggle with COVID-19 and many
borders remain closed. Recent passenger air traffic has largely
been driven by pent-up demand for domestic and regional leisure
travel with smaller-gauge aircraft, which is less impactful to
international airfreight.
“In the second quarter of 2021, we expect to fly
approximately 90,000 block hours, with revenue of approximately
$950 million, and adjusted EBITDA of about $210 million. In
addition, we anticipate adjusted net income to grow approximately
30% compared with adjusted net income of $72.2 million in the first
quarter of 2021.*
“Given ongoing economic and market-related
uncertainties, including COVID-19, new variants of the virus,
surges in cases globally, travel restrictions, low international
passenger travel and other factors, we are providing a
second-quarter outlook, but not issuing a full-year 2021 earnings
outlook at this time.”
Segment Reporting Change
Beginning with our first-quarter 2021 results,
we have changed our operating and reportable segments to reflect
the evolution of our business. As the ACMI and Charter services
have become more similar, we view and manage them as one
segment.
We now have two operating and reportable
segments: Airline Operations and Dry Leasing. Previously, our
operating and reportable segments were ACMI, Charter and Dry
Leasing. Our Airline Operations segment provides outsourced
aircraft operating services to customers on an ACMI, CMI and
Charter basis. No changes have been made to our Dry Leasing
segment.
First-Quarter Results
Volumes in the first quarter of 2021 increased
to 88,523 block hours compared with 73,247 in the first quarter of
2020, with revenue growing to $861.3 million versus $643.5 million
in the prior-year period.
Higher Airline Operations revenue primarily
reflected a significant increase in flying and a higher average
rate per block hour. Block-hour growth during the period was driven
by increased demand for our commercial cargo Charter and CMI
services, reflecting higher airfreight volumes and a reduction of
available cargo capacity in the market, the disruption of global
supply chains due to the pandemic and our ability to increase
aircraft utilization. In addition, segment revenue benefited from
the operation of four 747-400 freighters we reactivated throughout
2020 and a 777-200 freighter that was previously in our Dry Leasing
business. Partially offsetting these improvements was lower AMC
passenger Charter flying as the U.S. military has taken
precautionary measures to limit the movement of military personnel.
The increase in the average rate per block hour was primarily due
to an increase in higher-yielding commercial cargo Charter flying,
partially offset by lower fuel costs and an increase in CMI
flying.
Higher Airline Operations segment contribution
in the first quarter of 2021 was primarily driven by the positive
factors benefiting segment revenue mentioned above. These
improvements were partially offset by: higher pilot costs related
to premium pay for pilots operating in certain areas significantly
impacted by COVID-19; increased pay rates we provided to our pilots
in May 2020; and higher heavy maintenance.
In Dry Leasing, segment revenue and contribution
in the first quarter of 2021 was relatively unchanged compared with
the prior-year period.
Lower unallocated income and expenses, net,
during the quarter primarily reflected CARES Act grant income of
$40.9 million, which has been excluded from our adjusted
results.
Reported earnings in the first quarter of 2021
also included an effective income tax rate of 23.7%. On an adjusted
basis, our results reflected an effective income tax rate of
21.9%.
Cash
At March 31, 2021, our cash, including cash
equivalents and restricted cash, totaled $714.0 million compared
with $856.3 million at December 31, 2020.
The change in position resulted from cash used
for investing and financing activities, partially offset by cash
provided by operating activities.
Net cash used for investing activities during
the first quarter of 2021 primarily related to capital expenditures
and payments for flight equipment and modifications, including
pre-delivery payments for 747-8F aircraft, spare engines, GEnx
engine overhauls and performance upgrade kits.
Net cash used for financing activities during
the period primarily related to payments on debt obligations,
partially offset by proceeds from debt issuance.
Labor
We remain committed to reaching a new Joint
Collective Bargaining Agreement (JCBA) with our Atlas Air and
Southern Air pilots, and have moved closer to completion. Scheduled
arbitration hearings concluded on April 1, 2021, and the union has
now provided the company with the integrated seniority list, which
is a critical item for implementing the new JCBA. The next step is
for both parties to submit post-hearing briefs. The arbitrator will
then consider all of the information presented and render a binding
decision, which we expect in the second half of this year.
Outlook*
We expect to fly approximately 90,000 block
hours in the second quarter of 2021, with revenue of approximately
$950 million, and adjusted EBITDA of about $210 million. In
addition, we expect second-quarter 2021 adjusted net income to grow
approximately 30% compared with adjusted net income of $72.2
million in the first quarter of 2021.*
Our outlook anticipates commercial cargo charter
yields in the second quarter of 2021 to remain above typical
seasonal levels, but below the historically high yields experienced
during the second quarter of 2020.
We expect second-quarter results to continue to
be impacted by ongoing pandemic-related expenses, including pilot
premium pay and operational costs for providing a safe working
environment for our employees. We also expect higher pilot costs
related to increased pay rates we provided to our pilots in May
2020.
For the full year in 2021, we continue to expect
aircraft maintenance expense to be lower than 2020, and
depreciation and amortization to total about $270 million. In
addition, core capital expenditures, which exclude aircraft and
engine purchases, are projected to total approximately $110 to $120
million, mainly for parts and components for our fleet.
Given ongoing economic and market-related
uncertainties, including COVID-19, new variants of the virus,
surges in cases globally, travel restrictions, low international
passenger travel and other factors, we are providing a
second-quarter outlook, but not issuing a full-year 2021 earnings
outlook at this time.
Other than with regard to revenue, we provide
guidance only on an adjusted basis because we are unable to
predict, with reasonable certainty and without unreasonable effort,
the effects of future gains and losses on asset sales, special
charges and other unanticipated items that could be material to our
reported results.*
Conference Call
As previously announced, management will host a
conference call to discuss Atlas Air Worldwide’s first-quarter 2021
financial and operating results at 11:00 a.m. Eastern Time on
Wednesday, May 5, 2021.
Interested parties may listen to the call live
at Atlas Air Worldwide’s Investor site or at
https://edge.media-server.com/mmc/p/4p2gxgty.
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 May 12 by dialing (855)
859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.)
and using Access Code 8943268#.
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.
*Other than with regard to revenue, we provide
guidance only on an adjusted basis and are unable to provide
forward-looking guidance on a U.S. GAAP basis or a reconciliation
to the most directly comparable U.S. GAAP measures because we are
unable to predict with reasonable certainty and without
unreasonable effort, the ultimate outcome of certain significant
items, including future gains and losses on asset sales, special
charges and other unanticipated items. These items are uncertain,
depend on various factors, and could have a material impact on our
U.S. GAAP results.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider
of outsourced aircraft and aviation operating services. It is the
parent company of Atlas Air, Inc., 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 and arbitration 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; border
restrictions; consumer perceptions of the companies’ products and
services; anticipated and future litigation; and other risks and
uncertainties set forth from time to time in Atlas Air Worldwide’s
reports to the United States Securities and Exchange
Commission.
For additional information, we refer you to the
risk factors set forth under the heading “Risk Factors” in the most
recent Annual Report on Form 10-K and subsequent reports on Form
10-Q filed by Atlas Air Worldwide with the Securities and Exchange
Commission. Other factors and assumptions not identified above may
also affect the forward-looking statements, and these other factors
and assumptions may also cause actual results to differ materially
from those discussed.
Except as stated in this release, Atlas Air
Worldwide is not providing guidance or estimates regarding its
anticipated business and financial performance for 2021 or
thereafter.
Atlas Air Worldwide assumes no obligation to
update such statements contained in this release to reflect actual
results, changes in assumptions or changes in other factors
affecting such estimates other than as required by law and
expressly disclaims any obligation to revise or update publicly any
forward-looking statement to reflect future events or
circumstances.
Atlas Air Worldwide Holdings,
Inc.Consolidated Statements of
Operations(in thousands, except per share
data)(Unaudited)
|
|
For the Three Months Ended |
|
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
Operating
Revenue |
|
$ |
861,300 |
|
|
$ |
643,502 |
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
Salaries, wages and benefits |
|
|
202,614 |
|
|
|
147,744 |
|
Aircraft fuel |
|
|
163,551 |
|
|
|
108,318 |
|
Maintenance, materials and repairs |
|
|
121,133 |
|
|
|
94,152 |
|
Depreciation and amortization |
|
|
67,789 |
|
|
|
57,584 |
|
Navigation fees, landing fees and other rent |
|
|
44,887 |
|
|
|
31,401 |
|
Passenger and ground handling services |
|
|
40,065 |
|
|
|
31,959 |
|
Travel |
|
|
37,672 |
|
|
|
42,391 |
|
Aircraft rent |
|
|
20,756 |
|
|
|
23,967 |
|
Loss (gain) on disposal of aircraft |
|
|
16 |
|
|
|
(6,717 |
) |
Transaction-related expenses |
|
|
201 |
|
|
|
521 |
|
Other |
|
|
58,412 |
|
|
|
51,112 |
|
Total Operating Expenses |
|
|
757,096 |
|
|
|
582,432 |
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
104,204 |
|
|
|
61,070 |
|
|
|
|
|
|
|
|
|
|
Non-operating Expenses
(Income) |
|
|
|
|
|
|
|
|
Interest income |
|
|
(211 |
) |
|
|
(480 |
) |
Interest expense |
|
|
27,180 |
|
|
|
29,275 |
|
Capitalized interest |
|
|
(1,271 |
) |
|
|
(193 |
) |
Unrealized loss (gain) on financial instruments |
|
|
113 |
|
|
|
(924 |
) |
Other (income) expense, net |
|
|
(39,456 |
) |
|
|
1,206 |
|
Total Non-operating Expenses (Income) |
|
|
(13,645 |
) |
|
|
28,884 |
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
117,849 |
|
|
|
32,186 |
|
Income tax expense |
|
|
27,916 |
|
|
|
8,833 |
|
Net Income |
|
$ |
89,933 |
|
|
$ |
23,353 |
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
3.16 |
|
|
$ |
0.90 |
|
Diluted |
|
$ |
3.05 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
Weighted average
shares: |
|
|
|
|
|
|
|
|
Basic |
|
|
28,491 |
|
|
|
25,966 |
|
Diluted |
|
|
29,478 |
|
|
|
25,966 |
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide Holdings,
Inc.Consolidated Balance Sheets(in
thousands, except share data)(Unaudited)
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
703,777 |
|
|
$ |
845,589 |
|
Restricted cash |
|
|
10,247 |
|
|
|
10,692 |
|
Accounts receivable, net of allowance of $1,010 and $1,233,
respectively |
|
|
289,337 |
|
|
|
265,521 |
|
Prepaid expenses, assets held for sale and other current
assets |
|
|
102,665 |
|
|
|
95,919 |
|
Total current assets |
|
|
1,106,026 |
|
|
|
1,217,721 |
|
Property and Equipment |
|
|
|
|
|
|
|
|
Flight equipment |
|
|
5,115,540 |
|
|
|
5,061,387 |
|
Ground equipment |
|
|
93,690 |
|
|
|
86,670 |
|
Less: accumulated depreciation |
|
|
(1,192,724 |
) |
|
|
(1,147,613 |
) |
Flight equipment purchase deposits and modifications in
progress |
|
|
209,730 |
|
|
|
110,150 |
|
Property and equipment, net |
|
|
4,226,236 |
|
|
|
4,110,594 |
|
Other Assets |
|
|
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
238,155 |
|
|
|
255,805 |
|
Deferred costs and other assets |
|
|
355,681 |
|
|
|
374,242 |
|
Intangible assets, net and goodwill |
|
|
69,319 |
|
|
|
70,826 |
|
Total Assets |
|
$ |
5,995,417 |
|
|
$ |
6,029,188 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
110,685 |
|
|
$ |
107,604 |
|
Accrued liabilities |
|
|
501,317 |
|
|
|
583,160 |
|
Current portion of long-term debt and finance leases |
|
|
306,462 |
|
|
|
298,690 |
|
Current portion of long-term operating leases |
|
|
156,119 |
|
|
|
157,732 |
|
Total current liabilities |
|
|
1,074,583 |
|
|
|
1,147,186 |
|
Other Liabilities |
|
|
|
|
|
|
|
|
Long-term debt and finance leases |
|
|
1,990,870 |
|
|
|
2,020,451 |
|
Long-term operating leases |
|
|
276,676 |
|
|
|
318,850 |
|
Deferred taxes |
|
|
230,720 |
|
|
|
203,586 |
|
Financial instruments and other liabilities |
|
|
39,372 |
|
|
|
77,576 |
|
Total other liabilities |
|
|
2,537,638 |
|
|
|
2,620,463 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Preferred stock, $1 par value; 10,000,000 shares authorized; no
shares issued |
|
|
- |
|
|
|
- |
|
Common stock, $0.01 par value; 100,000,000 shares
authorized; 34,495,738 and 32,877,533 shares issued,
29,006,635 and 27,517,297 shares outstanding (net of treasury
stock), as of March 31, 2021 and December 31, 2020,
respectively |
|
|
345 |
|
|
|
329 |
|
Additional paid-in-capital |
|
|
912,728 |
|
|
|
873,874 |
|
Treasury stock, at cost; 5,489,103 and 5,360,236 shares,
respectively |
|
|
(225,239 |
) |
|
|
(217,889 |
) |
Accumulated other comprehensive loss |
|
|
(1,700 |
) |
|
|
(1,904 |
) |
Retained earnings |
|
|
1,697,062 |
|
|
|
1,607,129 |
|
Total stockholders’ equity |
|
|
2,383,196 |
|
|
|
2,261,539 |
|
Total Liabilities and Equity |
|
$ |
5,995,417 |
|
|
$ |
6,029,188 |
|
1 Balance sheet debt at March 31, 2021
totaled $2,297.3 million, including the impact of $45.9 million of
unamortized discount and debt issuance costs of $27.4 million,
compared with $2,319.1 million, including the impact of $50.6
million of unamortized discount and debt issuance costs of $29.3
million at December 31, 2020.2 The face value of our debt at
March 31, 2021 totaled $2,370.6 million, compared with
$2,399.0 million on December 31, 2020.
Atlas Air Worldwide Holdings,
Inc.Consolidated Statements of Cash
Flows(in thousands)(Unaudited)
|
|
For the Three Months Ended |
|
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
Operating
Activities: |
|
|
|
|
|
|
|
|
Net Income |
|
$ |
89,933 |
|
|
$ |
23,353 |
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile Net
Income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
86,172 |
|
|
|
74,352 |
|
Accretion of debt securities discount |
|
|
- |
|
|
|
(2 |
) |
Reversal of expected credit losses |
|
|
(397 |
) |
|
|
(73 |
) |
Unrealized loss (gain) on financial instruments |
|
|
113 |
|
|
|
(924 |
) |
Loss (gain) on disposal of aircraft |
|
|
16 |
|
|
|
(6,717 |
) |
Deferred taxes |
|
|
27,839 |
|
|
|
7,352 |
|
Stock-based compensation |
|
|
4,060 |
|
|
|
3,860 |
|
Changes in: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(22,745 |
) |
|
|
16,515 |
|
Prepaid expenses, current assets and other assets |
|
|
(7,500 |
) |
|
|
(5,476 |
) |
Accounts payable, accrued liabilities and other liabilities |
|
|
(89,366 |
) |
|
|
(40,393 |
) |
Net cash provided by operating
activities |
|
|
88,125 |
|
|
|
71,847 |
|
Investing
Activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(26,662 |
) |
|
|
(8,291 |
) |
Purchase deposits and payments for flight equipment and
modifications |
|
|
(126,807 |
) |
|
|
(26,000 |
) |
Investment in joint ventures |
|
|
(1,608 |
) |
|
|
- |
|
Proceeds from investments |
|
|
- |
|
|
|
881 |
|
Proceeds from disposal of aircraft |
|
|
1,850 |
|
|
|
44,110 |
|
Net cash provided by (used for)
investing activities |
|
|
(153,227 |
) |
|
|
10,700 |
|
Financing
Activities: |
|
|
|
|
|
|
|
|
Proceeds from debt issuance |
|
|
16,161 |
|
|
|
164,000 |
|
Payment of debt issuance costs |
|
|
(900 |
) |
|
|
(2,386 |
) |
Payments of debt and finance lease obligations |
|
|
(77,953 |
) |
|
|
(193,644 |
) |
Proceeds from revolving credit facility |
|
|
- |
|
|
|
75,000 |
|
Customer maintenance reserves and deposits received |
|
|
5,152 |
|
|
|
2,586 |
|
Customer maintenance reserves paid |
|
|
(12,265 |
) |
|
|
(2,080 |
) |
Treasury shares withheld for payment of taxes |
|
|
(7,350 |
) |
|
|
(3,834 |
) |
Net cash provided by (used for)
financing activities |
|
|
(77,155 |
) |
|
|
39,642 |
|
Net increase (decrease) in cash,
cash equivalents and restricted cash |
|
|
(142,257 |
) |
|
|
122,189 |
|
Cash, cash equivalents and
restricted cash at the beginning of period |
|
|
856,281 |
|
|
|
113,430 |
|
Cash, cash equivalents and
restricted cash at the end of period |
|
$ |
714,024 |
|
|
$ |
235,619 |
|
|
|
|
|
|
|
|
|
|
Noncash Investing and
Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment included in Accounts payable
and accrued liabilities |
|
$ |
24,938 |
|
|
$ |
16,368 |
|
Acquisition of property and equipment acquired under operating
leases |
|
$ |
4,015 |
|
|
$ |
670 |
|
Acquisition of flight equipment under finance lease |
|
$ |
20,171 |
|
|
$ |
- |
|
Customer maintenance reserves settled with sale of aircraft |
|
$ |
- |
|
|
$ |
6,497 |
|
Issuance of shares related to settlement of warrant liability |
|
$ |
31,582 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide Holdings,
Inc.Direct Contribution(in
thousands)(Unaudited)
|
For the Three Months Ended |
|
March 31, 2021 |
|
|
March 31, 2020 |
Operating
Revenue: |
|
|
|
|
|
|
Airline Operations |
$ |
826,240 |
|
|
$ |
606,373 |
|
Dry Leasing |
|
40,364 |
|
|
|
41,926 |
|
Customer incentive asset
amortization |
|
(10,481 |
) |
|
|
(9,022 |
) |
Other |
|
5,177 |
|
|
|
4,225 |
|
Total Operating
Revenue |
$ |
861,300 |
|
|
$ |
643,502 |
|
Direct
Contribution: |
|
|
|
|
|
|
|
Airline Operations |
$ |
169,150 |
|
|
$ |
103,087 |
|
Dry Leasing |
|
10,564 |
|
|
|
10,698 |
|
Total Direct
Contribution for Reportable Segments |
|
179,714 |
|
|
|
113,785 |
|
|
|
|
|
|
|
|
|
Unallocated expenses and
(income), net |
|
(61,535 |
) |
|
|
(88,719 |
) |
Unrealized gain (loss) on
financial instruments |
|
(113 |
) |
|
|
924 |
|
Transaction-related
expenses |
|
(201 |
) |
|
|
(521 |
) |
Gain (loss) on disposal of
aircraft |
|
(16 |
) |
|
|
6,717 |
|
Income before income
taxes |
|
117,849 |
|
|
|
32,186 |
|
|
|
|
|
|
|
|
|
Add back (subtract): |
|
|
|
|
|
|
|
Interest income |
|
(211 |
) |
|
|
(480 |
) |
Interest expense |
|
27,180 |
|
|
|
29,275 |
|
Capitalized interest |
|
(1,271 |
) |
|
|
(193 |
) |
Unrealized loss (gain) on
financial instruments |
|
113 |
|
|
|
(924 |
) |
Other (income) expense,
net |
|
(39,456 |
) |
|
|
1,206 |
|
Operating
Income |
$ |
104,204 |
|
|
$ |
61,070 |
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide uses an economic performance
metric, Direct Contribution, to show the profitability of each of
its segments after allocation of direct operating and ownership
costs. Atlas Air Worldwide currently has the following reportable
segments: Airline Operations and Dry Leasing.
Direct Contribution consists of net income
(loss) before income taxes, excluding unrealized (loss) gain on
financial instruments, transaction-related expenses, gain (loss) on
disposal of aircraft, 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, 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 |
|
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
89,933 |
|
|
$ |
23,353 |
|
|
285.1 |
% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
|
(40,944 |
) |
|
|
- |
|
|
|
|
Customer incentive asset amortization |
|
|
10,481 |
|
|
|
9,022 |
|
|
|
|
Noncash expenses and income, net2 |
|
|
4,672 |
|
|
|
4,386 |
|
|
|
|
Unrealized loss (gain) on financial instruments |
|
|
113 |
|
|
|
(924 |
) |
|
|
|
Other, net3 |
|
|
329 |
|
|
|
(5,260 |
) |
|
|
|
Income tax effect of reconciling items |
|
|
7,631 |
|
|
|
(697 |
) |
|
|
|
Adjusted Net
Income |
|
$ |
72,215 |
|
|
$ |
29,880 |
|
|
141.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares outstanding |
|
|
29,478 |
|
|
|
25,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
|
$ |
2.45 |
|
|
$ |
1.15 |
|
|
113.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide Holdings,
Inc.Reconciliation to Non-GAAP
Measures(in thousands, except per share
data)(Unaudited)
|
|
For the Three Months Ended |
|
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
117,849 |
|
|
$ |
32,186 |
|
|
266.1 |
% |
Impact from: |
|
|
|
|
|
|
|
|
|
|
|
CARES Act grant income1 |
|
|
(40,944 |
) |
|
|
- |
|
|
|
|
Customer incentive asset amortization |
|
|
10,481 |
|
|
|
9,022 |
|
|
|
|
Noncash expenses and income, net2 |
|
|
4,672 |
|
|
|
4,386 |
|
|
|
|
Unrealized loss (gain) on financial instruments |
|
|
113 |
|
|
|
(924 |
) |
|
|
|
Other, net3 |
|
|
329 |
|
|
|
(5,260 |
) |
|
|
|
Adjusted income before
income taxes |
|
$ |
92,500 |
|
|
$ |
39,410 |
|
|
134.7 |
% |
Interest expense, net |
|
|
21,026 |
|
|
|
24,216 |
|
|
|
|
Other expense, net |
|
|
1,488 |
|
|
|
1,206 |
|
|
|
|
Adjusted operating
income |
|
$ |
115,014 |
|
|
$ |
64,832 |
|
|
77.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
$ |
27,916 |
|
|
$ |
8,833 |
|
|
|
|
Income tax effect of reconciling items |
|
|
7,631 |
|
|
|
(697 |
) |
|
|
|
Adjusted income tax expense |
|
|
20,285 |
|
|
|
9,530 |
|
|
|
|
Adjusted income before income taxes |
|
$ |
92,500 |
|
|
$ |
39,410 |
|
|
|
|
Effective tax rate |
|
|
23.7 |
% |
|
|
27.4 |
% |
|
|
|
Adjusted effective tax rate |
|
|
21.9 |
% |
|
|
24.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlas Air Worldwide Holdings,
Inc.Reconciliation to Non-GAAP
Measures(in thousands)(Unaudited)
|
|
For the Three Months Ended |
|
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
|
Percent Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
89,933 |
|
|
$ |
23,353 |
|
|
285.1 |
% |
Interest expense, net |
|
|
25,698 |
|
|
|
28,602 |
|
|
|
|
Depreciation and
amortization |
|
|
67,789 |
|
|
|
57,584 |
|
|
|
|
Income tax expense |
|
|
27,916 |
|
|
|
8,833 |
|
|
|
|
EBITDA |
|
|
211,336 |
|
|
|
118,372 |
|
|
|
|
CARES Act grant income1 |
|
|
(40,944 |
) |
|
|
- |
|
|
|
|
Customer incentive asset
amortization |
|
|
10,481 |
|
|
|
9,022 |
|
|
|
|
Unrealized loss (gain) on
financial instruments |
|
|
113 |
|
|
|
(924 |
) |
|
|
|
Other, net3 |
|
|
329 |
|
|
|
(5,260 |
) |
|
|
|
Adjusted
EBITDA |
|
$ |
181,315 |
|
|
$ |
121,210 |
|
|
49.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
1 CARES Act grant income in 2021 related to
income associated with the Payroll Support Program.
2 Noncash expenses and income, net in 2021
and 2020 primarily related to amortization of debt discount on the
convertible notes.
3 Other, net in 2021 primarily related to
costs associated with our acquisition of Southern Air. Other, net
in 2020 primarily related to a $6.7 million net gain on the sale of
aircraft, costs associated with the refinancing of debt and costs
associated with our acquisition of Southern Air.
Atlas Air Worldwide Holdings,
Inc.Reconciliation to Non-GAAP
Measures(in thousands, except per share
data)(Unaudited)
|
|
For the Three Months Ended |
|
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities |
|
$ |
88,125 |
|
|
$ |
71,847 |
|
Less: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
26,662 |
|
|
|
8,291 |
|
Capitalized interest |
|
|
1,271 |
|
|
|
193 |
|
Free Cash
Flow1 |
|
$ |
60,192 |
|
|
$ |
63,363 |
|
|
|
|
|
|
|
|
|
|
1 Free Cash Flow = Cash Flows from
Operations minus Core Capital Expenditures and Capitalized
Interest.
Core Capital Expenditures excludes purchases of
aircraft.
Atlas Air Worldwide Holdings,
Inc.Operating Statistics and Traffic
Results(Unaudited)
|
|
For the Three Months Ended |
|
|
Increase/ |
|
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Block
Hours |
|
|
|
|
|
|
|
|
|
|
|
|
Airline Operations |
|
|
86,758 |
|
|
|
72,644 |
|
|
|
14,114 |
|
Cargo |
|
|
83,110 |
|
|
|
67,838 |
|
|
|
15,272 |
|
Passenger |
|
|
3,648 |
|
|
|
4,806 |
|
|
|
(1,158 |
) |
Other |
|
|
1,765 |
|
|
|
603 |
|
|
|
1,162 |
|
Total Block Hours |
|
|
88,523 |
|
|
|
73,247 |
|
|
|
15,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Per Block
Hour |
|
|
|
|
|
|
|
|
|
|
|
|
Airline Operations |
|
$ |
9,524 |
|
|
$ |
8,347 |
|
|
$ |
1,177 |
|
Cargo |
|
$ |
9,127 |
|
|
$ |
7,594 |
|
|
$ |
1,533 |
|
Passenger |
|
$ |
18,563 |
|
|
$ |
18,973 |
|
|
$ |
(410 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Utilization
(block hours per day) |
|
|
|
|
|
|
|
|
|
|
|
|
Airline Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Cargo |
|
|
10.1 |
|
|
|
7.8 |
|
|
|
2.3 |
|
Passenger |
|
|
3.9 |
|
|
|
4.9 |
|
|
|
(1.0 |
) |
All Operating Aircraft1 |
|
|
9.7 |
|
|
|
7.6 |
|
|
|
2.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel |
|
|
|
|
|
|
|
|
|
|
|
|
Charter |
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel cost per gallon |
|
$ |
1.71 |
|
|
$ |
2.00 |
|
|
$ |
(0.29 |
) |
Fuel gallons consumed (000s) |
|
|
95,586 |
|
|
|
54,279 |
|
|
|
41,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Average of All Operating Aircraft excludes Dry Leasing
aircraft, which do not contribute to block-hour volumes.
Atlas Air Worldwide Holdings,
Inc.Operating Statistics and Traffic
Results(Unaudited)
|
|
For the Three Months Ended |
|
|
Increase/ |
|
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
Segment Operating
Fleet (average aircraft
equivalents during the period) |
|
|
|
|
|
|
|
|
|
Airline Operations1 |
|
|
|
|
|
|
|
|
|
747-8F Cargo |
|
10.0 |
|
|
10.0 |
|
|
- |
|
747-400 Cargo |
|
33.6 |
|
|
31.2 |
|
|
2.4 |
|
747-400 Dreamlifter |
|
1.2 |
|
|
3.6 |
|
|
(2.4 |
) |
747-400 Passenger |
|
4.9 |
|
|
5.0 |
|
|
(0.1 |
) |
777-200 Cargo |
|
9.0 |
|
|
8.0 |
|
|
1.0 |
|
767-300 Cargo |
|
24.0 |
|
|
24.0 |
|
|
- |
|
767-300 Passenger |
|
5.0 |
|
|
4.8 |
|
|
0.2 |
|
767-200 Cargo |
|
5.6 |
|
|
9.0 |
|
|
(3.4 |
) |
767-200 Passenger |
|
0.6 |
|
|
1.0 |
|
|
(0.4 |
) |
737-800 Cargo |
|
8.0 |
|
|
5.0 |
|
|
3.0 |
|
737-400 Cargo |
|
- |
|
|
5.0 |
|
|
(5.0 |
) |
Total |
|
101.9 |
|
|
106.6 |
|
|
(4.7 |
) |
Dry Leasing |
|
|
|
|
|
|
|
|
|
777-200 Cargo |
|
7.0 |
|
|
7.0 |
|
|
- |
|
767-300 Cargo |
|
21.0 |
|
|
21.0 |
|
|
- |
|
757-200 Cargo |
|
- |
|
|
0.5 |
|
|
(0.5 |
) |
737-300 Cargo |
|
1.0 |
|
|
1.0 |
|
|
- |
|
737-800 Passenger |
|
- |
|
|
0.6 |
|
|
(0.6 |
) |
Total |
|
29.0 |
|
|
30.1 |
|
|
(1.1 |
) |
Less: Aircraft Dry Leased to CMI customers |
|
(21.0 |
) |
|
(21.0 |
) |
|
- |
|
Total Operating Average Aircraft Equivalents |
|
109.9 |
|
|
115.7 |
|
|
(5.8 |
) |
|
|
|
|
|
|
|
|
|
|
Out of Service2 |
|
- |
|
|
5.4 |
|
|
(5.4 |
) |
|
|
|
|
|
|
|
|
|
|
1 Airline Operations average fleet excludes spare aircraft
provided by CMI customers.
2 Out-of-service includes aircraft that are temporarily
parked.
Contacts: |
|
Investors – InvestorRelations@atlasair.com Media –
CorpCommunications@atlasair.com |
|
|
|
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