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Atlas Air Worldwide Holdings, Inc. (AAWW)

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Previous Close56.15
Open56.21
Bid59.01 x 900
Ask59.14 x 3100
Day's Range55.85 - 59.45
52 Week Range14.97 - 61.19
Volume1,279,700
Avg. Volume529,289
Market Cap1.543B
Beta (5Y Monthly)1.75
PE Ratio (TTM)N/A
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  • GlobeNewswire

    Atlas Air Worldwide Reports Second-Quarter 2020 Results

    * Results Reflect Strong Airfreight Demand and Resilient Business Model * Reported Net Income of $78.9 Million * Adjusted EBITDA of $247.0 Million and Adjusted Net Income of $123.2 Million * Expecting Third-Quarter and Full-Year 2020 Earnings Growth PURCHASE, N.Y., Aug. 06, 2020 (GLOBE NEWSWIRE) -- Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced second-quarter 2020 net income of $78.9 million, or $3.01 per diluted share, compared with net income of $86.9 million, or $1.61 per diluted share, in the second quarter of 2019.On an adjusted basis, EBITDA totaled $247.0 million in the second quarter this year compared with $84.1 million in the second quarter of 2019. Adjusted net income in the second quarter of 2020 totaled $123.2 million, or $4.71 per diluted share, compared with $4.5 million, or $0.17 per diluted share, in the second quarter of 2019.“Revenue and earnings in the second quarter continued to exceed our expectations,” said Chief Executive Officer John W. Dietrich. “These positive results were primarily driven by the team capitalizing on strong demand and higher yields in our commercial charter and South America businesses. We also continued to provide the U.S. military with essential services and our ACMI customers flew well above their minimum guarantees.“We continued to execute on very favorable business opportunities in a challenging operating environment, with the safety of our employees as our top priority. We leveraged the scale of our world-class fleet, the scope of our global operations and the flexibility of our business model to capitalize on market dynamics.“To serve this increased demand, we reactivated three of our 747-400 converted freighters and operationalized a 777 freighter from our Dry Leasing business. This enabled us to serve the strong and profitable shorter-term demand, while also entering into numerous new long-term charter programs at attractive yields. We expanded our long-term charter business to include new agreements with manufacturers such as HP Inc., and large freight forwarders like DHL Global Forwarding, APEX Logistics, DB Schenker, Flexport and Geodis, all that wanted to secure committed capacity from us.”Mr. Dietrich added: “We continued to deliver safe and high-quality service for our customers, despite the many challenges presented by this pandemic, including a variety of travel restrictions, testing protocols, quarantine mandates and other operational challenges. This is a true testament to the commitment and dedication of all our Atlas team members, particularly our crew and ground staff out in the field.“We are taking every precaution to safeguard all our employees and ensure that we continue to transport the goods the world needs during these important times. We also appreciate our customers’ and vendors’ commitment to safety, and their partnership and unity as we protect our employees and our operations.”  He said: “Atlas is continuing to play an essential role in the global supply chain, and the goods we carry help save lives, fuel economic activity and support jobs. We are playing a key role in our customers’ operating networks, and are helping businesses and communities manage through COVID-19.“With our broad portfolio of aircraft, including the world’s largest fleet of 747 freighters, along with large fleets of 777s, 767s and 737s, we provide our customers with fleet choices and operating capabilities that are unmatched in our industry.“We have a talented team, a strong balance sheet, and we continue to demonstrate our ability to adjust to market conditions, capitalize on strategic growth opportunities, and navigate through these evolving and uncertain times.“Reflecting our first-half results and our current market expectations, and subject to any material COVID-19 developments, we anticipate full-year 2020 revenue of just over $3 billion and adjusted EBITDA of approximately $750 million.*“Our outlook also expects approximately 50% of our full-year 2020 adjusted net income to occur in the second half of the year. That would result in 2020 adjusted net income being more than double 2019.”Second-Quarter ResultsVolumes in the second quarter of 2020 increased to 84,966 block hours compared with 80,282 in the second quarter of 2019, with revenue rising to $825.3 million compared with $663.9 million in the prior-year quarter.ACMI segment revenue during the period reflected lower block hours, primarily driven by the redeployment of 747-400 aircraft to the Charter segment to support new long-term charter programs with customers seeking to secure committed cargo capacity. This was partially offset by an increase in 777, 737 and 747-400 CMI flying.ACMI segment contribution decreased during the quarter primarily due to higher heavy maintenance, including additional engine overhauls and other maintenance performed to take advantage of slot availability and opportunities for vendor pricing discounts. In addition, segment contribution reflected higher pilot costs related to a 10% increase in pay rates resulting from our recent interim agreement with our pilots and premium pay for pilots operating in certain areas outside of the U.S. significantly impacted by COVID-19; and the redeployment of 747-400 aircraft to the Charter segment to support new long-term charter programs with customers seeking to secure committed cargo capacity. Partially offsetting these items was an increase in 777, 737 and 747-400 CMI flying, and a reduction in aircraft rent and depreciation.Charter segment revenue during the period primarily reflected increased levels of flying and an increase in the average rate per block hour. Block-hour volume growth was primarily driven by increased demand for freighter aircraft, reflecting a combination of increased demand for cargo, as well as the reduction of available cargo capacity in the market, the disruption of global supply chains due to the pandemic and our ability to increase utilization. As a result of this increase in demand and in support of new long-term charter programs with customers seeking to secure committed cargo capacity, we redeployed 747-400 aircraft from ACMI and began operating a 777 from our Dry Leasing business. The increase in the average rate per block hour primarily reflected higher commercial cargo yields (excluding fuel), partially offset by lower levels of 747 passenger flying for the U.S. military.Charter segment contribution was driven by the increase in commercial cargo yields (excluding fuel), and demand for freighter aircraft, reflecting a combination of increased demand for cargo, as well as the reduction of available capacity in the market, the disruption of the global supply chain 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 a 777 freighter from Dry Leasing. These improvements were partially offset by: higher heavy maintenance expense, including additional engine overhauls and other maintenance performed to take advantage of slot availability and opportunities for vendor pricing discounts; lower U.S. military passenger flying as the pandemic disrupted the movement of U.S. military personnel; and higher pilot costs related to a 10% increase in pay rates resulting from our recent interim agreement with our pilots and premium pay for pilots operating in certain areas outside of the U.S. significantly impacted by COVID-19.In Dry Leasing, lower segment revenue and contribution in the second 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 a $24.3 million (after tax) refund of aircraft rent paid in previous years.Reported earnings in the second quarter of 2020 also included an effective income tax rate of 29.5%, due mainly to nondeductible changes in the value of outstanding warrants. On an adjusted basis, our results reflected an effective income tax rate of 21.6%.Cash and Short-Term InvestmentsAt June 30, 2020, our cash and cash equivalents, restricted cash and short-term investments totaled $739.2 million, compared with $114.3 million at December 31, 2019.Our improved cash balance primarily reflected strong 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. Those funds will be utilized to pay the salaries, wages and benefits of employees, and helps us to protect the jobs of our highly-skilled team during this period of global uncertainty.Net cash provided by financing activities during the first six months of 2020 primarily related to proceeds from debt issuance and from our revolving credit facility, partially offset by payments on debt obligations.Net cash used for investing activities during the first six 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.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, the use of contractors and ground staff hiring. 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.Half-Year ResultsReported results for the six months ended June 30, 2020 reflected net income of $102.3 million, or $3.92 per diluted share, which included a $29.7 million unrealized loss on financial instruments. Results for the first half compared with net income of $57.2 million, or $2.21 per diluted share, which included an unrealized loss on financial instruments of $4.3 million, for the six months ended June 30, 2019.On an adjusted basis, EBITDA totaled $368.2 million in the first half of 2020 compared with $204.5 million in the first half of 2019. First-half 2020 adjusted net income totaled $153.1 million, or $5.87 per diluted share, compared with $31.8 million, or $1.16 per diluted share, in the first half of 2019.2020 Outlook*Reflecting our first-half results and our current market expectations for the balance of the year, and subject to any material COVID-19 developments, we expect to fly more than 330,000 block hours in 2020, with about 70% of the hours in ACMI and the remainder in Charter.We also anticipate revenue of just over $3 billion and adjusted EBITDA of approximately $750 million. Our outlook also expects approximately 50% of our full-year 2020 adjusted net income to occur in the second half of the year. That would result in 2020 adjusted net income being more than double 2019.Historically, we have generated the vast majority of our earnings in the second half of the year. This year, however, due to the strength of the first half, we anticipate our full-year 2020 adjusted net income to be more evenly split between the first and second half. Our second-quarter results this year benefited from commercial charter yields that were significantly above typical levels and from a $24.3 million (after tax) refund of excess aircraft rent paid in previous years.Aircraft maintenance expense in 2020 is expected to total about $480 million, with depreciation and amortization totaling around $255 million. Core capital expenditures, which exclude aircraft and engine purchases, are projected to total approximately $80 to $90 million, mainly for parts and components for our fleet.We estimate our full-year 2020 adjusted effective income tax rate will be approximately 23%. For the third quarter of 2020, we expect commercial charter yields to moderate from the second quarter, but still remain elevated compared with typical yields for this time of year. We anticipate flying more than 85,000 block hours (about 70% in ACMI), with revenue of nearly $800 million and adjusted EBITDA of about $170 million. We also expect that our third-quarter adjusted net income will represent approximately 20% of our full-year 2020 adjusted net income, or to be more than six times higher than third-quarter 2019 adjusted net income of $9.5 million.  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 CallManagement will host a conference call to discuss Atlas Air Worldwide’s second-quarter 2020 financial and operating results at 11:00 a.m. Eastern Time on Thursday, August 6, 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/9fgsqxqz.  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 August 14 by dialing (855) 859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.) and using Access Code 1098299.About Non-GAAP Financial MeasuresTo 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. Effective during the three months ended September 30, 2019, we changed our method of calculating Adjusted EBITDA to include Other Non-operating expenses (income) to enhance the usefulness for investors and analysts, and the comparability of the calculation to that of other companies. Prior period amounts have been adjusted for comparability.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 are 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.Contacts:  Investors – InvestorRelations@atlasair.com Media –  CorpCommunications@atlasair.com 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, 2020  June 30, 2019  June 30, 2020  June 30, 2019                    Operating Revenue $825,253  $663,918  $1,468,755  $1,343,601                    Operating Expenses                 Salaries, wages and benefits  192,591   141,450   340,335   286,924  Maintenance, materials and repairs  168,300   113,471   262,452   217,091  Aircraft fuel  83,242   122,158   191,560   228,479  Depreciation and amortization  65,826   63,689   123,410   128,170  Travel  34,627   46,374   77,018   91,403  Navigation fees, landing fees and other rent  35,638   37,982   67,039   78,198  Passenger and ground handling services  30,130   30,525   62,089   62,685  Aircraft rent  24,316   40,335   48,283   82,223  Loss (gain) on disposal of aircraft  2   -   (6,715)  -  Special charge  15,934   3,269   15,934   3,269  Transaction-related expenses  1,275   734   1,796   3,261  Other  52,710   54,961   103,822   106,054  Total Operating Expenses  704,591   654,948   1,287,023   1,287,757                    Operating Income  120,662   8,970   181,732   55,844                    Non-operating Expenses (Income)                 Interest income  (224)  (1,278)  (704)  (3,322) Interest expense  28,950   30,045   58,225   60,398  Capitalized interest  (132)  (627)  (325)  (1,090) Loss on early extinguishment of debt  74   -   74   245  Unrealized loss (gain) on financial instruments  30,671   (42,300)  29,747   4,275  Other (income) expense, net  (50,598)  945   (49,392)  (2,030) Total Non-operating Expenses (Income)  8,741   (13,215)  37,625   58,476    Income (loss) before income taxes  111,921   22,185   144,107   (2,632) Income tax expense (benefit)  33,009   (64,683)  41,842   (59,790)                   Net Income $78,912  $86,868  $102,265  $57,158                    Earnings per share:                 Basic $3.02  $3.36  $3.93  $2.22  Diluted $3.01  $1.61  $3.92  $2.21                    Weighted average shares:                 Basic  26,129   25,851   26,048   25,794  Diluted  26,182   26,953   26,074   25,921  Atlas Air Worldwide Holdings, Inc. Consolidated Balance Sheets (in thousands, except share data) (Unaudited)   June 30, 2020  December 31, 2019  Assets         Current Assets         Cash and cash equivalents $726,402  $103,029  Restricted cash  12,776   10,401  Short-term investments  -   879  Accounts receivable, net of allowance of $886 and $1,822, respectively  239,051   290,119  Prepaid expenses, assets held for sale and other current assets  177,978   228,103  Total current assets  1,156,207   632,531  Property and Equipment         Flight equipment  4,962,987   4,880,424  Ground equipment  86,341   83,584  Less:  accumulated depreciation  (1,068,347)  (977,883) Flight equipment modifications in progress  26,960   67,101  Property and equipment, net  4,007,941   4,053,226  Other Assets         Operating lease right-of-use assets  200,194   231,133  Deferred costs and other assets  378,567   391,895  Intangible assets, net and goodwill  73,841   76,856  Total Assets $5,816,750  $5,385,641            Liabilities and Equity         Current Liabilities         Accounts payable $73,812  $79,683  Accrued liabilities  653,253   481,725  Current portion of long-term debt and finance leases  275,017   395,781  Current portion of long-term operating leases  143,225   141,973  Total current liabilities  1,145,307   1,099,162  Other Liabilities         Long-term debt and finance leases  2,238,664   1,984,902  Long-term operating leases  322,450   392,832  Deferred taxes  111,802   74,040  Financial instruments and other liabilities  68,160   42,526  Total other liabilities  2,741,076   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;   31,493,328 and 31,048,842 shares issued, 26,135,945 and 25,870,876   shares outstanding (net of treasury stock), as of June 30, 2020   and December 31, 2019, respectively  315   310  Additional paid-in-capital  801,002   761,715  Treasury stock, at cost; 5,357,383 and 5,177,966 shares, respectively  (217,711)  (213,871) Accumulated other comprehensive loss  (2,347)  (2,818) Retained earnings  1,349,108   1,246,843  Total stockholders’ equity  1,930,367   1,792,179  Total Liabilities and Equity $5,816,750  $5,385,641  1  Balance sheet debt at June 30, 2020 totaled $2,513.7 million, including the impact of $59.7 million of unamortized discount and debt issuance costs of $33.0 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 June 30, 2020 totaled $2,606.4 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 Six Months Ended   June 30, 2020 June 30, 2019         Operating Activities:       Net Income  $102,265  $57,158          Adjustments to reconcile Net Income to net cash provided by operating activities:       Depreciation and amortization  157,509   157,820  Amortization (accretion) of debt securities discount  (2)   208  Provision for (reversal of) expected credit losses  (6)   4  Loss on early extinguishment of debt  74   245  Special charge, net of cash payments  15,934   3,269  Unrealized loss (gain) on financial instruments  29,747   4,275  Loss (gain) on disposal of aircraft  (6,715)   -  Deferred taxes  39,518   (60,122)  Stock-based compensation  10,506   10,025  Changes in:       Accounts receivable  51,781   26  Prepaid expenses, current assets and other assets  (19,115)   (23,835)  Accounts payable, accrued liabilities and other liabilities  178,894   (40,076)  Net cash provided by operating activities  560,390   108,997  Investing Activities:       Capital expenditures  (25,095)   (76,754)  Payments for flight equipment and modifications  (59,919)   (99,161)  Proceeds from insurance  -   38,133  Proceeds from investments  881   9,313  Proceeds from disposal of aircraft  44,110   -  Net cash used for investing activities  (40,023)  (128,469)  Financing Activities:       Proceeds from debt issuance  321,518   19,723  Payment of debt issuance costs  (3,910)   (955)  Payments of debt and finance lease obligations  (274,960)   (160,091)  Proceeds from revolving credit facility  75,000   50,000  Customer maintenance reserves and deposits received  6,010   8,039  Customer maintenance reserves paid  (14,437)   -  Treasury shares withheld for payment of taxes  (3,840)   (9,227) Net cash provided by (used for) financing activities  105,381   (92,511)  Net increase (decrease) in cash, cash equivalents and restricted cash  625,748   (111,983)  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 $739,178  $120,758          Noncash Investing and Financing Activities:               Acquisition of flight equipment included in Accounts payable and accrued liabilities $13,613  $51,996  Acquisition of property and equipment acquired under operating leases $1,918  $-  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 Six Months Ended    June 30, 2020  June 30, 2019  June 30, 2020  June 30, 2019  Operating Revenue:                 ACMI $291,951  $307,278  $570,695  $613,845  Charter  497,547   315,679   825,176   620,793  Dry Leasing  40,906   43,535   82,832   113,481  Customer incentive asset amortization  (9,534)  (6,936)  (18,556)  (13,222) Other  4,383   4,362   8,608   8,704  Total Operating Revenue $825,253  $663,918  $1,468,755  $1,343,601                    Direct Contribution:                 ACMI $14,495  $40,640  $66,802  $80,647  Charter  185,969   14,084   236,750   43,217  Dry Leasing  9,721   11,091   20,420   46,618  Total Direct Contribution for Reportable Segments  210,185   65,815   323,972   170,482                    Unallocated expenses and (income), net  (50,308)  (81,927)  (139,029)  (162,064) Loss on early extinguishment of debt  (74)  -   (74)  (245) Unrealized gain (loss) on financial instruments  (30,671)  42,300   (29,747)  (4,275) Special charge  (15,934)  (3,269)  (15,934)  (3,269) Transaction-related expenses  (1,275)  (734)  (1,796)  (3,261) Gain (loss) on disposal of aircraft  (2)  -   6,715   -  Income (loss) before income taxes  111,921   22,185   144,107   (2,632)                   Add back (subtract):                 Interest income  (224)  (1,278)  (704)  (3,322) Interest expense  28,950   30,045   58,225   60,398  Capitalized interest  (132)  (627)  (325)  (1,090) Loss on early extinguishment of debt  74   -   74   245  Unrealized (gain) loss on financial instruments  30,671   (42,300)  29,747   4,275  Other (income) expense, net  (50,598)  945   (49,392)  (2,030) Operating Income $120,662  $8,970  $181,732  $55,844  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 (loss) before taxes, excluding loss on early extinguishment of debt, unrealized gain (loss) on financial instruments, special charge, transaction-related expenses, loss (gain) on disposal of aircraft, nonrecurring items, and unallocated expenses and (income), net.Direct operating and ownership costs include crew costs, maintenance, fuel, ground operations, sales costs, aircraft rent, interest expense on the portion of debt used for financing aircraft, interest income on debt securities, and aircraft depreciation.Unallocated expenses and (income), net include corporate overhead, nonaircraft depreciation, noncash expenses and income, interest expense on the portion of debt used for general corporate purposes, interest income on nondebt securities, capitalized interest, foreign exchange gains and losses, other revenue and other nonoperating costs.   Atlas Air Worldwide Holdings, Inc. Reconciliation to Non-GAAP Measures (in thousands, except per share data) (Unaudited) For the Three Months Ended  June 30, 2020  June 30, 2019  Percent Change            Net Income$78,912  $86,868  (9.2)%  Impact from:          CARES Act grant income1 (20,167)  -    Customer incentive asset amortization 9,534   6,936    Special charge 15,934   3,269    Costs associated with transactions2 1,275   734    Leadership transition costs 3,156   541    Noncash expenses and income, net3 4,458   4,579    Unrealized loss (gain) on financial instruments 30,671   (42,300)   Other, net4 279   1,815    Income tax effect of reconciling items (863)  (3,652)   Special tax item6 -   (54,272)   Adjusted Net Income$123,189  $4,518  NM             Adjusted weighted average diluted shares outstanding 26,182   26,953               Adjusted Diluted EPS $4.71  $0.17  NM              For the Six Months Ended  June 30, 2020  June 30, 2019  Percent Change            Net Income $102,265  $57,158  78.9% Impact from:          CARES Act grant income1 (20,167)  -    Customer incentive asset amortization 18,556   13,222    Special charge 15,934   3,269    Costs associated with transactions2 1,796   3,261    Leadership transition costs 3,757   541    Noncash expenses and income, net3 8,844   9,047    Unrealized loss on financial instruments 29,747   4,275    Other, net4 (6,103)  (979)   Income tax effect of reconciling items (1,559)  (3,681)   Special tax item6 -   (54,272)   Adjusted Net Income $153,070  $31,841  NM             Adjusted weighted average diluted shares outstanding 26,074   27,437               Adjusted Diluted EPS$5.87  $1.16  NM  Atlas Air Worldwide Holdings, Inc. Reconciliation to Non-GAAP Measures (in thousands, except per share data) (Unaudited) For the Three Months Ended   June 30, 2020  June 30, 2019  Percent Change              Income before taxes$111,921  $22,185  NM  Impact from:           CARES Act grant income1 (20,167)  -     Customer incentive asset amortization 9,534   6,936     Special charge 15,934   3,269     Costs associated with transactions2 1,275   734     Leadership transition costs 3,156   541     Noncash expenses and income, net3 4,458   4,579     Unrealized loss (gain) on financial instruments 30,671   (42,300)    Other, net4 279   1,815     Adjusted income (loss) before income taxes$157,061  $(2,241) NM  Interest expense, net5 24,136   24,034     Other (income) expense, net (50,598)  945     Adjusted operating income$130,599  $22,738  NM              Income tax expense (benefit)$33,009  $(64,683)    Income tax effect of reconciling items (863)  (3,652)    Special tax item6 -   (54,272)    Adjusted income tax expense (benefit) 33,872   (6,759)    Adjusted income (loss) before income taxes$157,061  $(2,241)    Effective tax expense (benefit) rate 29.5%  (291.6)%    Adjusted effective tax expense (benefit) rate 21.6%  (301.6)%        For the Six Months Ended  June 30, 2020  June 30, 2019  Percent Change              Income (loss) before taxes $144,107  $(2,632) NM  Impact from:           CARES Act grant income1 (20,167)  -     Customer incentive asset amortization 18,556   13,222     Special charge 15,934   3,269     Costs associated with transactions2   1,796   3,261     Leadership transition costs 3,757   541     Noncash expenses and income, net3 8,844   9,047     Unrealized loss on financial instruments 29,747   4,275     Other, net4 (6,103)  (979)    Adjusted income before income taxes$196,471  $30,004  NM  Interest expense, net5 48,352   47,885     Other (income) expense, net (49,392)  (2,030)    Adjusted operating income$195,431  $75,859  157.6%             Income tax expense (benefit)$41,842  $(59,790)    Income tax effect of reconciling items (1,559)  (3,681)    Special tax item6 -   (54,272)    Adjusted income tax expense (benefit) 43,401   (1,837)    Adjusted income before income taxes$196,471  $30,004     Effective tax expense (benefit) rate 29.0%  (2,271.7)%    Adjusted effective tax expense (benefit) rate 22.1%  (6.1)%                Atlas Air Worldwide Holdings, Inc. Reconciliation to Non-GAAP Measures (in thousands, except per share data) (Unaudited) For the Three Months Ended   June 30, 2020  June 30, 2019  Percent Change              Net Income $78,912  $86,868  (9.2)% Interest expense, net 28,594   28,140     Depreciation and amortization 65,826   63,689     Income tax expense (benefit) 33,009   (64,683)    EBITDA 206,341   114,014     CARES Act grant income1 (20,167)  -     Customer incentive asset amortization 9,534   6,936     Special charge 15,934   3,269     Costs associated with transactions2 1,275   734     Leadership transition costs 3,156   541     Unrealized loss (gain) on financial instruments 30,671   (42,300)    Other, net4  279   954     Adjusted EBITDA$247,023  $84,148  193.6%                          For the Six Months Ended   June 30, 2020  June 30, 2019  Percent Change              Net Income $102,265  $57,158  78.9% Interest expense, net 57,196   55,986     Depreciation and amortization 123,410   128,170     Income tax expense (benefit) 41,842   (59,790)    EBITDA 324,713   181,524     CARES Act grant income1 (20,167)  -     Customer incentive asset amortization 18,556   13,222     Special charge 15,934   3,269     Costs associated with transactions2 1,796   3,261     Leadership transition costs 3,757   541     Unrealized loss on financial instruments 29,747   4,275     Other, net4 (6,103)  (1,580)    Adjusted EBITDA$368,233  $204,512  80.1%             1 CARES Act grant income in 2020 is related to income associated with the Payroll Support Program.2 Costs associated with transactions in 2020 primarily related to costs associated with the Payroll Support Program and our acquisition of Southern Air. Costs associated with transactions in 2019 primarily related to a customer transaction with warrants and other costs associated with our acquisition of Southern Air.3 Noncash expenses and income, net in 2020 and 2019 is primarily related to amortization of debt discount on the convertible notes.4 Other, net in 2020 is primarily related to a $6.7 million net gain on the sale of aircraft, costs associated with the refinancing of debt 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 accrual for legal matters and professional fees.5 Interest expense, net excludes noncash expenses primarily related to the amortization of debt discount on convertible notes.6 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  June 30, 2020  June 30, 2019         Net Cash Provided by Operating Activities$488,543  $55,228 Less:         Capital expenditures 16,804   46,170   Capitalized interest 132   627 Free Cash Flow1$471,607  $8,431                          For the Six Months Ended  June 30, 2020  June 30, 2019         Net Cash Provided by Operating Activities$560,390  $108,997 Less:         Capital expenditures 25,095   76,754   Capitalized interest 325   1,090 Free Cash Flow1$534,970  $31,153 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 Six Months Ended  Increase/    June 30, 2020  June 30, 2019  (Decrease)  June 30, 2020  June 30, 2019  (Decrease)                            Block Hours                         ACMI  59,531   61,942   (2,411)  113,910   121,722   (7,812) Charter  23,984   17,661   6,323   42,250   34,321   7,929  Cargo  20,876   12,888   7,988   34,416   24,367   10,049  Passenger  3,108   4,773   (1,665)  7,834   9,954   (2,120) Other  1,451   679   772   2,053   1,299   754  Total Block Hours  84,966   80,282   4,684   158,213   157,342   871                            Revenue Per Block Hour                         ACMI $4,904  $4,961  $(57) $5,010  $5,043  $(33) Charter $20,745  $17,874  $2,871  $19,531  $18,088  $1,443  Cargo $21,260  $17,473  $3,787  $19,781  $17,710  $2,071  Passenger $17,285  $18,957  $(1,672) $18,431  $19,012  $(581)                           Average Utilization (block hours per day)                         ACMI1  8.7   8.7   -   8.2   8.7   (0.5) Charter                         Cargo  10.7   8.4   2.3   9.3   8.2   1.1  Passenger  3.5   5.9   (2.4)  4.4   6.2   (1.8) All Operating Aircraft1,2  8.8   8.5   0.3   8.2   8.4   (0.2)                           Fuel                         Charter                         Average fuel cost per gallon $1.10  $2.37  $(1.27) $1.47  $2.30  $(0.83) Fuel gallons consumed (000s)  75,769   51,596   24,173   130,047   99,468   30,579  1 ACMI and All Operating Aircraft averages in the second quarter and first six 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 Six Months Ended  Increase/    June 30, 2020  June 30, 2019  (Decrease)  June 30, 2020  June 30, 2019  (Decrease)                            Segment Operating Fleet (average aircraft equivalents during the period)                         ACMI1                         747-8F Cargo  8.8   8.2   0.6   8.9   8.6   0.3  747-400 Cargo  13.1   18.4   (5.3)  13.0   18.0   (5.0) 747-400 Dreamlifter  1.8   3.6   (1.8)  2.7   3.6   (0.9) 777-200 Cargo  8.1   6.4   1.7   8.1   6.2   1.9  767-300 Cargo  23.7   25.0   (1.3)  23.8   25.3   (1.5) 767-200 Cargo  9.0   9.0   -   9.0   9.0   -  737-800 Cargo  5.0   1.8   3.2   5.0   0.9   4.1  737-400 Cargo  4.6   5.0   (0.4)  4.8   5.0   (0.2) 767-200 Passenger  1.0   1.0   -   1.0   1.0   -  Total  75.1   78.4   (3.3)  76.3   77.6   (1.3) Charter                         747-8F Cargo  1.1   1.6   (0.5)  1.1   1.3   (0.2) 747-400 Cargo  19.4   15.2   4.2   18.8   15.1   3.7  777-200 Cargo  0.6   -   0.6   0.3   -   0.3  767-300 Cargo  0.3   -   0.3   0.2   -   0.2  747-400 Passenger  5.0   4.0   1.0   5.0   4.0   1.0  767-300 Passenger  4.8   4.9   (0.1)  4.8   4.9   (0.1) Total  31.2   25.7   5.5   30.2   25.3   4.9  Dry Leasing                         777-200 Cargo  7.0   7.0   -   7.0   7.5   (0.5) 767-300 Cargo  21.0   21.0   -   21.0   21.3   (0.3) 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)  0.3   1.0   (0.7) Total  29.0   31.0   (2.0)  29.5   31.8   (2.3) Less: Aircraft Dry Leased to CMI    customers  (21.0)  (23.0)  (2.0)  (21.0)  (23.3)  (2.3) Total Operating Average Aircraft Equivalents  114.3   112.1   2.2   115.0   111.4   3.6                            Out-of-Service2  1.7   1.0   0.7   3.5   0.5   3.0  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.

  • GlobeNewswire

    Atlas Air Worldwide to Report Second-Quarter 2020 Results On Thursday, August 6

    PURCHASE, N.Y, July 16, 2020 --  Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW)  will release results for the second quarter ended June 30, 2020, prior to the opening of.

  • GlobeNewswire

    Atlas Air Worldwide Appoints Lillian A. Dukes Senior Vice President, Technical Operations

    Atlas Air Worldwide Holdings, Inc. (AAWW) announced today that Lillian A. Dukes has been appointed Senior Vice President, Technical Operations. Ms. Dukes will lead the company’s Technical Operations, overseeing all maintenance and engineering activities at the Company, and report to James A. Forbes, Executive Vice President and Chief Operating Officer.