Atlas Air Worldwide Reports Second-Quarter Earnings; Reaffirms Full-Year Outlook

  • Adjusted Net Income of $20.4 Million, $0.79 per Share
  • Reported Net Income of $20.1 Million, $0.78 per Share
  • 1.52 Million Shares Repurchased during Six Months Ended June 30
  • Reaffirms Adjusted EPS Outlook of $4.80

Business Wire

PURCHASE, N.Y.--(BUSINESS WIRE)--

Atlas Air Worldwide Holdings, Inc. (AAWW), a leading global provider of outsourced aircraft and aviation operating solutions, today announced second-quarter 2013 diluted earnings per share in line with expectations presented at the company’s investor-analyst day on May 30 and reaffirmed its full-year adjusted diluted earnings per share outlook of approximately $4.80.

For the three months ended June 30, 2013, adjusted net income attributable to common stockholders totaled $20.4 million, or $0.79 per diluted share, compared with $31.2 million, or $1.18 per diluted share, for the three months ended June 30, 2012.

On a reported basis, second-quarter 2013 net income attributable to common stockholders totaled $20.1 million, or $0.78 per diluted share, compared with $30.9 million, or $1.16 per diluted share, in the second quarter of 2012.

Free cash flow increased to $64.6 million in the second quarter of 2013 from $54.2 million in the second quarter of 2012.

“Earnings in the second quarter of 2013 were driven by the strength of our ACMI operations, especially our new 747-8 freighters,” said William J. Flynn, President and Chief Executive Officer.

“Our diversified business mix, with our expanding 767 service, growing CMI operations, and ongoing continuous improvement initiatives, enabled us to perform well in a quarter that was challenged by lower AMC Charter demand and softer AMC and Commercial Charter rates.

“Reflecting our commitment to enhance shareholder value, we acquired an additional 2.3% of our outstanding common stock through our share repurchase program from May through July. Combined with the shares that we bought through the end of April, we have repurchased approximately 5.7% of our shares so far this year.

“In addition, we are executing a strategic plan that leverages our core competencies. In July, we acquired our second and third 777 freighters for our Dry Leasing business. Each of our 777s was acquired with a long-term customer lease in place with a leading operator in the airfreight industry. These investments enhance our position in an attractive aircraft type, and they generate predictable, long-term revenue and earnings streams.”

Second-Quarter Results

Revenue, volume and profitability growth in our core ACMI business during the second quarter were driven by our new 747-8Fs, with five additional -8F aircraft in service compared with the second quarter of 2012, as well as the continued ramp up of CMI flying for Boeing and DHL Express.

Improved ACMI segment earnings during the period benefited from higher rates per block hour and lower maintenance expense for our 747-8Fs, partially offset by the redeployment of 747-400 aircraft to other business segments.

In AMC Charter, a reduction in cargo and passenger block hours, lower average cargo and passenger revenue per block hour, and a reduction in the number of one-way AMC missions led to a decline in segment contribution. Lower average passenger revenue per block hour during the period stemmed from a higher proportion of passenger flying on smaller-gauge 767 aircraft, which we added to supplement our wide-body 747-400 passenger service and enhance our share of military passenger business.

Segment results in Commercial Charter primarily related to a reduction in yields driven by soft second-quarter global charter-market conditions.

Results in the second quarter were also affected by a reduction in capitalized interest on 747-8F aircraft that entered service.

Income Taxes

Adjusted and reported earnings for the second quarter of 2013 included an effective income tax rate of 32.3%, reflecting the ongoing beneficial impact of lower taxes for certain foreign subsidiaries in our Dry Leasing business.

Half-Year Results

For the six months ended June 30, 2013, adjusted net income attributable to common stockholders totaled $26.3 million, or $1.01 per diluted share, compared with $44.9 million, or $1.69 per diluted share, for the six months ended June 30, 2012.

On a reported basis, first-half 2013 net income attributable to common stockholders totaled $40.1 million, or $1.54 per diluted share, compared with $43.7 million, or $1.65 per diluted share, in the first half of 2012.

Free cash flow in the first six months of 2013 increased to $107.0 million from $55.2 million in the first half of 2012.

Cash, Cash Equivalents and Short-Term Investments

At June 30, 2013, our cash, cash equivalents and short-term investments totaled $367.5 million, compared with $419.9 million at December 31, 2012.

The change in cash, cash equivalents and short-term investments reflected cash provided by operating and financing activities offset by cash used for investing activities.

Net cash used for investing activities in the first six months of 2013 primarily related to the purchase of two 747-8F aircraft as well as a 777-200LRF aircraft for our Dry Leasing business.

Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the acquisitions of these aircraft. These proceeds were partially offset by payments on debt obligations and net payments under accelerated share repurchase (“ASR”) programs.

Share Repurchases

In mid-May, we entered into an ASR with a financial institution for the repurchase of our common stock for an aggregate purchase price of a minimum of $35.0 million up to a maximum of $44.0 million. As of June 30, 2013, we received delivery of an initial 615,791 shares pursuant to the program. This ASR is expected to conclude no later than mid-October.

Through the first six months of 2013, we repurchased a total of 1,519,092 shares, or 5.7%, of our outstanding common stock.

Future repurchases may be made at our discretion, and the actual timing, form and amount will depend on company and market conditions.

Outlook

Looking to full-year 2013, we expect to generate significant earnings and cash flow led by our ACMI business, improving Commercial Charter contribution and productivity improvements and operating efficiencies generated through our continuous improvement initiatives.

We expect market growth during 2013 to be seasonal and second-half weighted. We anticipate a strong peak season in 2013 driven by demand for new consumer electronics, especially in the gaming sector.

Based on our outlook for peak season and in line with our first-half performance, we continue to anticipate a sequential increase in our quarterly earnings throughout the year, with just under 80% of full-year adjusted EPS of approximately $4.80 occurring in the second half.

Full-year 2013 EPS guidance includes actual and expected repurchases of our outstanding stock during the year.

Similar to the first and second quarters, adjusted full-year earnings in 2013 will reflect strong growth in the company’s ACMI business, driven by an increase in the number of 747-8F aircraft in ACMI service compared with 2012.

Block-hour volumes in 2013 are now expected to total approximately 170,000 hours, with ACMI segment flying representing approximately 74% of expected 2013 block hours, Commercial Charter about 15%, and AMC Charter about 11%. Passenger flying should account for more than 11,000 AMC Charter block hours in 2013, with cargo flying totaling more than 7,000 hours.

In addition, we now anticipate that maintenance expense will total approximately $162 million in 2013, about 63% of which was incurred in the first half of the year.

Mr. Flynn concluded: “We have performed well in an environment of continuing global uncertainty. We are well-positioned to serve our customers and the airfreight markets. We are ready to capitalize on market improvements. And we are executing a strategic plan that leverages our core competencies, provides a basis for returning capital to our investors through share repurchases, and will enable us to grow over the long term.”

Conference Call

Management will host a conference call to discuss Atlas Air Worldwide’s second-quarter financial and operating results at 11:00 a.m. Eastern Time on Thursday, August 1, 2013.

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 second-quarter call) or at the following Web address:

http://www.media-server.com/m/p/jqqnzrhr

For those unable to listen to the live call, a replay will be available on the above Web sites following the call. A replay will also be available through August 8 by dialing (855) 859-2056 (domestic) and (404) 537-3406 (international) and using Access Code 13663972#.

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 EBITDAR, as adjusted; EBITDA, as adjusted; Direct Contribution; Adjusted Net Income Attributable to Common Stockholders; Adjusted Diluted EPS; and Free Cash Flow, which exclude certain items. 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 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 provide meaningful 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 the parent company of Atlas Air, Inc. (Atlas) and Titan Aviation Leasing (Titan), and is the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar). Through Atlas and Polar, Atlas Air Worldwide operates the world’s largest fleet of Boeing 747 freighter aircraft.

Atlas, Titan and Polar offer a range of outsourced aircraft and aviation operating solutions that include ACMI service – in which customers receive an aircraft, crew, maintenance and insurance on a long-term basis; CMI service, for customers that provide their own aircraft; express network and scheduled air cargo service; military cargo and passenger charters; commercial cargo and passenger charters; and dry leasing of aircraft and engines.

Atlas Air Worldwide’s press releases, SEC filings and other information can 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. Such forward-looking statements 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: 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 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; 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; 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 2013 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.

Atlas Air Worldwide Holdings, Inc.

Consolidated Statements of Operations

(in thousands, except per share data)

(Unaudited)

 
  For the Three Months Ended   For the Six Months Ended
June 30, 2013   June 30, 2012 June 30, 2013   June 30, 2012
 
Operating Revenue
ACMI $ 181,957 $ 160,421 $ 363,127 $ 315,124
AMC Charter 94,135 138,014 192,172 259,308
Commercial Charter 117,783 120,827 208,883 197,774
Dry Leasing 6,223 2,862 9,970 5,807
Other   3,475     2,581     6,757     5,996  
Total Operating Revenue $ 403,573   $ 424,705   $ 780,909   $ 784,009  
 
Operating Expenses
Aircraft fuel 102,743 117,571 196,101 212,334
Salaries, wages and benefits 72,518 73,378 145,049 144,254
Maintenance, materials and repairs 43,477 43,371 101,846 96,351
Aircraft rent 42,247 42,758 82,255 82,176
Depreciation and amortization 20,371 13,877 38,179 28,180
Passenger and ground handling services 17,300 18,618 34,072 31,389
Navigation fees, landing fees and other rent 16,351 15,882 30,463 28,937
Travel 13,771 14,823 28,950 27,443
Gain on disposal of aircraft (399 ) (1,163 ) (422 ) (1,359 )
Other   26,733     29,472     53,358     57,607  
Total Operating Expenses   355,112     368,587     709,851     707,312  
Operating Income   48,461     56,118     71,058     76,697  
 
Non-operating Expenses (Income)
Interest income (4,978 ) (4,887 ) (10,154 ) (9,796 )
Interest expense 20,677 15,631 39,117 29,594
Capitalized interest (292 ) (5,952 ) (1,694 ) (12,304 )
Loss on early extinguishment of debt 994 142 994 142
Other expense (income), net   1,104     1,082     1,656     785  
Total Non-operating Expenses (Income) 17,505 6,016 29,919 8,421
Income before income taxes 30,956 50,102 41,139 68,276
Income tax expense (benefit)   9,993     18,906     73     26,140  
Net Income 20,963 31,196 41,066 42,136

Less: Net income (loss) attributable to noncontrolling interests

  903     344     928     (1,551 )

Net Income Attributable to Common Stockholders

$ 20,060   $ 30,852   $ 40,138   $ 43,687  
 
Earnings per share:
Basic $ 0.78   $ 1.17   $ 1.54   $ 1.66  
Diluted $ 0.78   $ 1.16   $ 1.54   $ 1.65  
 
Weighted average shares:
Basic   25,691     26,428     26,009     26,394  
Diluted   25,716     26,511     26,076     26,500  
 

Atlas Air Worldwide Holdings, Inc.

Consolidated Balance Sheets

(in thousands, except share data)

(Unaudited)

 
  June 30, 2013   December 31, 2012
Assets
Current Assets
Cash and cash equivalents $ 355,775 $ 409,763
Short-term investments 11,729 10,119
Accounts receivable, net of allowance of $2,006 and $3,172, respectively 113,271 127,704
Prepaid maintenance 20,248 22,293
Deferred taxes 35,083 26,390
Prepaid expenses and other current assets   38,339     36,726  
Total current assets 574,445 632,995
Property and Equipment
Flight equipment 2,682,577 2,209,782
Ground equipment 43,954 39,230
Less: accumulated depreciation (217,534 ) (185,419 )
Purchase deposits for flight equipment   19,817     147,946  
Property and equipment, net 2,528,814 2,211,539
Other Assets
Long-term investments and accrued interest 130,150 140,498
Deposits and other assets 139,795 132,120
Intangible assets, net   33,230     35,533  
Total Assets $ 3,406,434   $ 3,152,685  
 
Liabilities and Equity
Current Liabilities
Accounts payable $ 35,891 $ 20,789
Accrued liabilities 151,923 152,467
Current portion of long-term debt1,2   242,417     154,760  
Total current liabilities 430,231 328,016
Other Liabilities
Long-term debt1,2 1,330,345 1,149,282
Deferred taxes 270,133 265,384
Other liabilities   126,840     121,899  
Total other liabilities 1,727,318 1,536,565
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; 50,000,000 shares authorized; 28,192,693 and 27,672,924 shares issued, 25,237,814 and 26,443,441, shares outstanding (net of treasury stock), as of June 30, 2013 and December 31, 2012, respectively

282 277
Additional paid-in-capital 536,747 544,421
Treasury stock, at cost; 2,954,879 and 1,229,483 shares, respectively (118,103 ) (44,850 )
Accumulated other comprehensive loss (13,451 ) (14,263 )
Retained earnings   838,814     798,676  
Total stockholders’ equity 1,244,289 1,284,261
Noncontrolling interest   4,596     3,843  
Total equity   1,248,885     1,288,104  
Total Liabilities and Equity $ 3,406,434   $ 3,152,685  

1

 

Balance sheet debt at June 30, 2013 totaled $1,572.8 million, including the impact of $44.2 million of unamortized discount.

 

2

The face value of our debt at June 30, 2013 totaled $1,617.0 million, compared with $1,350.8 million on December 31, 2012.

 

Atlas Air Worldwide Holdings, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 
  For the Six Months Ended
June 30, 2013   June 30, 2012
 
Operating Activities:
Net Income Attributable to Common Stockholders $ 40,138 $ 43,687
Net income (loss) attributable to noncontrolling interests   928     (1,551 )
Net Income 41,066 42,136

Adjustments to reconcile Net Income to net cash provided by operating activities:

Depreciation and amortization 45,374 32,447
Accretion of debt securities discount (4,591 ) (4,373 )
Provision for allowance for doubtful accounts 17 637
Loss on early extinguishment of debt 994 142
Gain on disposal of aircraft (422 ) (1,359 )
Deferred taxes (548 ) 25,872
Stock-based compensation expense 7,866 8,994
Changes in:
Accounts receivable 11,844 (5,681 )
Prepaid expenses and other current assets 9,478 7,290
Deposits and other assets 481 (12,964 )
Accounts payable and accrued liabilities   16,618     (7,203 )
Net cash provided by operating activities 128,177 85,938
 
Investing Activities:
Capital expenditures (19,491 ) (18,443 )
Purchase deposits and delivery payments for flight equipment (342,584 ) (161,477 )
Investment in debt securities (1,179 )
Proceeds from short-term investments 4,422 3,915
Proceeds from insurance 9,109
Proceeds from disposal of aircraft   2,100     2,515  
Net cash used for investing activities (346,444 ) (174,669 )
 
Financing Activities:
Proceeds from debt issuance 510,808 328,221
Refund of accelerated share repurchase 13,510
Prepayment of accelerated share repurchase (29,510 )
Purchase of treasury stock (73,253 ) (3,249 )
Excess tax benefit from stock-based compensation expense 465 544
Payment of debt issuance costs (13,096 ) (10,004 )
Payments of debt   (244,645 )   (180,820 )
Net cash provided by financing activities 164,279 134,692
Net increase (decrease) in cash and cash equivalents (53,988 ) 45,961
Cash and cash equivalents at the beginning of period   409,763     187,111  
Cash and cash equivalents at the end of period   355,775     233,072  
 

Atlas Air Worldwide Holdings, Inc.

Direct Contribution

(in thousands)

(Unaudited)

 
  For the Three Months Ended   For the Six Months Ended
June 30, 2013   June 30, 2012 June 30, 2013   June 30, 2012
Operating Revenue:
ACMI $ 181,957 $ 160,421 $ 363,127 $ 315,124
AMC Charter 94,135 138,014 192,172 259,308
Commercial Charter 117,783 120,827 208,883 197,774
Dry Leasing 6,223 2,862 9,970 5,807
Other   3,475     2,581     6,757     5,996  
Total Operating Revenue $ 403,573   $ 424,705   $ 780,909   $ 784,009  
Direct Contribution:
ACMI $ 55,063 $ 40,793 $ 95,007 $ 64,948
AMC Charter 12,658 29,984 25,395 50,565
Commercial Charter (2,480 ) 10,081 (11,164 ) 11,957
Dry Leasing   2,437     1,253     3,613     2,589  
Total Direct Contribution for Reportable Segments $ 67,678   $ 82,111   $ 112,851   $ 130,059  
 
Unallocated income and expenses, net (36,128 ) (33,030 ) (71,141 ) (63,000 )
Loss on early extinguishment of debt (994 ) (142 ) (994 ) (142 )
Gain on disposal of aircraft   399     1,163     422     1,359  
Income before Income Taxes   30,955     50,102     41,138     68,276  
 
Interest income (4,978 ) (4,887 ) (10,154 ) (9,796 )
Interest expense 20,677 15,631 39,117 29,594
Capitalized interest (292 ) (5,952 ) (1,694 ) (12,304 )
Loss on early extinguishment of debt 994 142 994 142
Other expense (income), net   1,104     1,082     1,656     785  
Operating Income $ 48,460   $ 56,118   $ 71,057   $ 76,697  
 

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, AMC Charter, Commercial Charter, and Dry Leasing. Each segment has different operating and economic characteristics, which are separately reviewed by senior management.

Direct Contribution consists of income (loss) before taxes, excluding special charges, nonrecurring items, gains on the sale of aircraft, and unallocated fixed costs.

Direct costs include crew costs, maintenance costs, fuel, ground operations, sales costs, aircraft rent, interest expense related to aircraft debt and aircraft depreciation.

Unallocated income and expenses include corporate overhead, non-aircraft depreciation, interest income, foreign exchange gains and losses, other revenue and other non-operating costs, including one-time items.

Atlas Air Worldwide Holdings, Inc.

Reconciliation to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

 
  For the Three Months Ended
June 30, 2013   June 30, 2012   Percent Change
 
Net Income Attributable to Common Stockholders $ 20,060 $ 30,852 (35.0 %)
After-tax impact from:
Fleet retirement costs1 - 1,043
Loss on early extinguishment of debt2 633 90
Gain on disposal of aircraft   (254 )   (741 )  
Adjusted Net Income Attributable to Common Stockholders   20,439     31,244   (34.6 %)
 
Diluted EPS $ 0.78 $ 1.16 (32.8 %)
After-tax impact from:
Fleet retirement costs1 - 0.04
Loss on early extinguishment of debt2 0.02 0.00
Gain on disposal of aircraft   (0.01 )   (0.03 )  
Adjusted Diluted EPS   0.79    

1.18

3

(33.1 %)
 
For the Six Months Ended
June 30, 2013 June 30, 2012 Percent Change
 
Net Income Attributable to Common Stockholders $ 40,138 $ 43,687

(8.1

%)
After-tax impact from:
Fleet retirement costs1 - 1,968
Loss on early extinguishment of debt2 633 90
ETI tax benefit (14,160 ) -
Gain on disposal of aircraft   (269 )   (866 )  
Adjusted Net Income Attributable to Common Stockholders $ 26,342   $ 44,879   (41.3 %)
 
Diluted EPS $ 1.54 $ 1.65 (6.7 %)
After-tax impact from:
Fleet retirement costs1 - 0.07
Loss on early extinguishment of debt2 0.02 0.00
ETI tax benefit (0.54 ) -
Gain on disposal of aircraft   (0.01 )   (0.03 )  
Adjusted Diluted EPS $ 1.01   $ 1.69   (40.2 %)

1

 

Fleet retirement costs included incremental employee costs related to the retirement of our 747-200 fleet.

 

2

Loss on early extinguishment of debt was related to the financing of 747-8F aircraft.

 

3

Items may not sum due to rounding.

 

Atlas Air Worldwide Holdings, Inc.

Reconciliation to Non-GAAP Measures

(in thousands, except per share data)

(Unaudited)

 
  For the Three Months Ended
      June 30, 2013   June 30, 2012
 
Net Cash Provided by Operating Activities $ 73,788 $ 67,850
Less:
Capital expenditures 8,493 7,717
Capitalized interest   292   5,952  
Free Cash Flow1 $ 64,553   $ 54,181  
 
For the Six Months Ended
June 30, 2013 June 30, 2012
 
Net Cash Provided by Operating Activities $ 128,177 $ 85,938
Less:
Capital expenditures 19,491 18,443
Capitalized interest   1,694   12,304  
Free Cash Flow1 $ 106,992   $ 55,191  

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 Six Months Ended
June 30, 2013   June 30, 2012 June 30, 2013   June 30, 2012
 
Income before income taxes $ 30,956 $ 50,102 $ 41,139 $ 68,276
Fleet retirement costs1 - 1,637 - 3,090
Loss on early extinguishment of debt 994 142 994 142
Gain on disposal of aircraft   (399 )   (1,163 )   (422 )   (1,359 )
 
Adjusted pretax income 31,551 50,718 41,711 70,149
 
Interest (income) expense, net 15,407 4,792 27,269 7,494
Other non-operating expenses   1,104     1,082     1,656     785  
 
Adjusted operating income 48,062 56,592 70,636 78,428
 
Depreciation and amortization   20,371     13,877     38,179     28,180  
 
EBITDA, as adjusted2 68,433 70,469 108,815 106,608
 
Aircraft rent   42,247     42,758     82,255     82,176  
 
EBITDAR, as adjusted3 $ 110,680   $ 113,227   $ 191,070   $ 188,784  

1

 

Fleet retirement costs included incremental employee costs related to the retirement of our 747-200 fleet.

 

2

Adjusted EBITDA: Earnings before interest, taxes, depreciation, amortization, fleet retirement costs, and gains on disposal of aircraft, as applicable.

 

3

Adjusted EBITDAR: Earnings before interest, taxes, depreciation, amortization, aircraft rent expense, fleet retirement costs, and gains on disposal of aircraft, as applicable.

 

Atlas Air Worldwide Holdings, Inc.

Operating Statistics and Traffic Results

(Unaudited)

 
  For the Three Months Ended     For the Six Months Ended  
June 30, Increase/ June 30, Increase/
2013   2012 (Decrease) 2013   2012 (Decrease)
 
Block Hours
ACMI 28,372 25,737 2,635 56,461 50,246 6,215
AMC Charter
Cargo 1,891 2,680 (789 ) 3,765 5,869 (2,104 )
Passenger 2,675 3,389 (714 ) 5,235 5,240 (5 )
Commercial Charter 6,331 5,739 592 11,050 9,429 1,621
Nonrevenue 245   197   48   435   631   (196 )
Total Block Hours 39,514   37,742   1,772   76,946   71,415   5,531  
 
Revenue Per Block Hour
ACMI $ 6,413 $ 6,233 $ 180 $ 6,431 $ 6,272 $ 159
AMC Charter 20,617 22,741 (2,124 ) 21,352 23,342 (1,990 )
Cargo 22,615 25,783 (3,168 ) 22,973 25,295 (2,332 )
Passenger 19,204 20,335 (1,131 ) 20,187 21,155 (968 )
Commercial Charter 18,604 21,054 (2,450 ) 18,903 20,975 (2,072 )
 
Average Utilization (block hours per day)
ACMI1 10.7 12.9 (2.2 ) 10.5 12.6 (2.1 )
AMC Charter
Cargo 7.4 10.2 (2.8 ) 7.2 9.0 (1.8 )
Passenger 6.4 8.3 (1.9 ) 6.7 7.8 (1.1 )
Commercial Charter 7.5   10.0   (2.5 ) 7.4   9.1   (1.7 )
All Operating Aircraft1,2 9.5 11.6 (2.1 ) 9.4 11.2 (1.8 )
 
Fuel
AMC
Average fuel cost per gallon $ 3.63 $ 3.61 $ 0.02 $ 3.63 $ 3.57 $ 0.06
Fuel gallons consumed (000s) 11,105 15,522 (4,417 ) 22,523 29,551 (7,028 )
Commercial Charter
Average fuel cost per gallon $ 3.03 $ 3.31 $ (0.28 ) $ 3.15 $ 3.38 $ (0.23 )
Fuel gallons consumed (000s) 20,628 18,590 2,038 36,254 31,621 4,633

1

 

ACMI and All Operating Aircraft averages in the second quarter and first six months of 2013 reflect the impact of increases in the number of CMI aircraft and amount of CMI flying compared with the same periods of 2012.

 

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

 

 

For the Six Months Ended

 
June 30, Increase/ June 30, Increase/
2013   2012 (Decrease) 2013   2012 (Decrease)
Segment Operating Fleet (average aircraft equivalents during the period)
ACMI1
747-8F Cargo 8.2 3.3 4.9 7.6 3.2 4.4
747-400 Cargo2 13.0 16.2 (3.2 ) 13.9 16.7 (2.8 )
767-300 Cargo 2.0 - 2.0 1.7 - 1.7
767-200 Cargo 5.0 1.5 3.5 5.0 0.9 4.1
747-400 Passenger 1.0 1.0 - 1.0 1.1 (0.1 )
767-300 Passenger -   -   -   0.4   -   0.4  
Total 29.2 22.0 7.2 29.6 21.9 7.7
AMC Charter
747-400 Cargo 2.8 2.9 (0.1 ) 2.9 3.3 (0.4 )
747-200 Cargo - - - - 0.3 (0.3 )
747-400 Passenger 1.8 1.6 0.2 1.8 1.7 0.1
767-300 Passenger 2.8   2.9   (0.1 ) 2.5   2.0   0.5  
Total 7.4 7.4 - 7.2 7.3 (0.1 )
Commercial Charter
747-8F Cargo 0.3 - 0.3 0.1 - 0.1
747-400 Cargo 8.6 6.0 2.6 7.9 4.9 3.0
747-200 Cargo - - - - 0.4 (0.4 )
747-400 Passenger 0.2 0.2 - 0.2 0.2 -
767-300 Passenger 0.2   0.1   0.1   0.1   0.2   (0.1 )
Total 9.3 6.3 3.0 8.3 5.7 2.6
Dry Leasing
777-200 Cargo 1.0 - 1.0 0.6 - 0.6
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 2.0   2.0   -   2.0   2.0   -  
Total 5.0   3.0   2.0   4.6   3.0   1.6  
Total Operating Aircraft 50.9   38.7   12.2   49.7   37.9   11.8  
 
Out of Service3 1.0 - 1.0 0.7 - 0.7

1

 

ACMI average fleet excludes spare aircraft provided by CMI customers.

 

2

Includes 1.6 and 1.1 Large Cargo Freighters in the three-month periods ended June 30, 2013 and 2012, respectively. Includes 1.6 and 1.1 Large Cargo Freighters in the six-month periods ended June 30, 2013 and 2012, respectively.

 

3

Out-of-service aircraft were temporarily parked during the period and are completely unencumbered.

Contact:
Atlas Air Worldwide Holdings, Inc.
Investors
Dan Loh, 914-701-8200
or
Media
Bonnie Rodney, 914-701-8580
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