2000 Westchester Avenue, Purchase, New York 10577 •?(914) 701-8400 FOR IMMEDIATE RELEASE Contacts: Dan Loh (Investors) –?(914) 701-8200 Bonnie Rodney (Media) – (914) 701-8580
Atlas Air Worldwide Reports Third-Quarter Earnings
•
Adjusted Net Income of $28.6 Million, $1.13 per Share
•
Reported Net Income of $23.7 Million, $0.94 per Share
•
Expect Full-Year Adjusted EPS of $3.40 to $3.80
•
Repurchased 1.724 Million Shares in 2013, 6.5% of Outstanding
•
Board Increases Share Repurchase Authorization
PURCHASE, N.Y.,November 7, 2013 –Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), a leading global provider of outsourced aircraft and aviation operating solutions, today announced adjusted net income attributable to common stockholders of $28.6 million, or $1.13 per diluted share, for the three months ended September 30, 2013, compared with $33.4 million, or $1.26 per diluted share, for the three months ended September 30, 2012.
On a reported basis, third-quarter 2013 net income attributable to common stockholders totaled $23.7 million, or $0.94 per diluted share, compared with $33.9 million, or $1.27 per diluted share, in the third quarter of 2012. Free cash flow of $73.8 million in the third quarter of 2013 compared with $98.9 million in the third quarter of 2012.
“Earnings in the third quarter of 2013 were below our expectations, reflecting market factors,” said William J. Flynn, President and Chief Executive Officer. “Demand in the commercial airfreight peak season through September was less than we anticipated. Airfreight yields remained under pressure, impacting our Commercial Charter segment. In addition, a decline in military demand led to a reduction in AMC volumes and fewer favorable one-way missions.
“Results during the quarter were supported by strength in our core ACMI operations and growth in our Dry Leasing business. Led by our new 747-8 freighters in ACMI, we saw increasing contributions during the quarter from investments to diversify our business mix, including the addition of 777 freighters with predictable, long-term revenue and earnings streams in Dry Leasing; our expanding 767 service; growing CMI operations within ACMI; and ongoing continuous improvement initiatives.
“Reflecting our commitment to enhance stockholder value, we acquired a further 3.1% of our outstanding common stock through our share repurchase program from May through August. Combined with the shares that we bought through the end of April, we have repurchased approximately 6.5% of our shares for $72 million this year. In addition, our board of directors has increased our existing authority to repurchase shares from $9 million to $60 million.”
Third-Quarter Results
Revenue, volume and profitability growth in our core ACMI business during the third quarter were driven by our new 747-8Fs, with an average of 3.3 additional -8F aircraft in service compared with the third quarter of 2012, and the continued ramp up and expansion of CMI service.
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 Dry Leasing, revenue and profitability grew following the acquisition of one 777-200LRF aircraft in March 2013 and two 777-200LRF aircraft in July 2013. Each aircraft was acquired with a long-term customer lease already in effect.
In AMC Charter, a reduction in cargo and passenger block hours, as well as a reduced number of one-way AMC missions and a change in the proportion of those missions from outbound U.S. to inbound U.S., led to a significant decline in segment contribution. Higher average cargo and passenger revenue per block hour during the period stemmed from an increase in the average pegged fuel price set by the U.S. military.
Segment results in Commercial Charter primarily related to a reduction in yields driven by soft third-quarter global charter-market conditions. Results also reflected a reduction in return legs due to the change in the number and direction of one-way AMC missions.
Results in the third quarter were also affected by a reduction in capitalized interest on 747-8F aircraft that entered service.
Income Taxes
Reported earnings for the third quarter of 2013 included an effective income tax rate of 31.3%, reflecting both the ongoing beneficial impact of lower taxes for certain foreign subsidiaries in our Dry Leasing business and the net impact of the resolution of certain income tax liabilities.
Nine-Month Results
For the nine months ended September 30, 2013, adjusted net income attributable to common stockholders totaled $54.9 million, or $2.13 per diluted share, compared with $78.3 million, or $2.95 per diluted share, for the nine months ended September 30, 2012.
On a reported basis, nine-month 2013 net income attributable to common stockholders totaled $63.9 million, or $2.48 per diluted share, compared with $77.5 million, or $2.92 per diluted share, in the first nine months of 2012.
Free cash flow in the first nine months of 2013 increased to $180.8 million from $154.1 million in the first nine months of 2012.
Cash and Short-Term Investments
At September 30, 2013, our cash, cash equivalents, short-term investments and restricted cash totaled $298.4 million, compared with $419.9 million at December 31, 2012.
The change in position at September 30 reflected cash provided by operating and financing activities offset by cash used for investing activities.
Net cash used for investing activities in the first nine months of 2013 primarily related to the purchase of two 747-8F aircraft as well as three 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. Those proceeds were partially offset by payments on debt obligations and debt issuance costs.
Share Repurchases
Between mid-May and mid-August, we repurchased 820,276 shares of our common stock for $35.6 million. The shares were acquired pursuant to an accelerated share repurchase program with a financial institution that settled in August.
Through the nine months ended September 30, 2013, we repurchased a total of 1,723,577 shares, or 6.5%, of our outstanding common stock at December 31, 2012.
Future repurchases under our new $60 million authority 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 fully diluted earnings per share to total between $3.40 and $3.80 on an adjusted basis and $3.75 and $4.15 on a reported basis.
Our current outlook reflects a much less robust commercial airfreight peak season than previously anticipated. While commercial airfreight volumes are strengthening, airfreight yields remain volatile. In addition, military cargo volumes have declined at a more rapid rate. Together, these factors affected our third-quarter results and have reduced anticipated profitability for the fourth quarter.
Partially offsetting these challenges are increasing contributions from investments to diversify the company’s business mix, led by new 747-8 freighters in the company’s core ACMI business; the addition of 777 freighters with predictable, long-term revenue and earnings streams in Dry Leasing; an expanding 767 service platform; entry into military and commercial charter passenger operations; and continuing growth in the company’s non-asset-intensive CMI operations. Also contributing are ongoing continuous improvement productivity and efficiency initiatives.
Mr. Flynn added: “Airfreight remains a long-term growth industry despite current market challenges. We are focused on the long-term growth of our business, and we are well-positioned to capitalize on market improvements. Our business model is solid and is complemented by substantial operating leverage, strong customer relationships and a superior fleet. We continue to strengthen our competitive position and generate substantial free cash flow, which will enhance stockholder value.”
Conference Call
Management will host a conference call to discuss Atlas Air Worldwide’s third-quarter financial and operating results at 11:00 a.m. Eastern Time on Thursday, November 7, 2013.
Interested parties are invited to listen to the call live over the Internet atwww.atlasair.com (click on “Investor Information”, click on “Presentations” and on the link to the third-quarter call) or at the following Web address:
http://www.media-server.com/m/p/rq4h455p
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 November 14 by dialing (855) 859-2056 (domestic) and (404) 537-3406 (international) and using Access Code 88980639#.
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.
* * *
1
Atlas Air Worldwide Holdings, Inc. Consolidated Statements of Operations (in thousands, except per share data) (Unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30, 2013
September 30, 2012
September 30, 2013
September 30, 2012
Operating Revenue
ACMI
$
189,583
$
177,722
$
552,710
$
492,846
AMC Charter
95,668
117,377
287,840
376,685
Commercial Charter
104,605
108,078
313,488
305,852
Dry Leasing
11,874
3,057
21,844
8,864
Other
3,660
3,017
10,417
9,013
Total Operating Revenue
$
405,390
$
409,251
$
1,186,299
$
1,193,260
Operating Expenses
Aircraft fuel
93,434
99,080
289,535
311,414
Salaries, wages and benefits
74,167
71,386
219,216
215,640
Maintenance, materials and repairs
31,306
40,524
133,152
136,875
Aircraft rent
48,448
44,133
130,703
126,309
Depreciation and amortization
23,661
16,612
61,840
44,792
Passenger and ground handling services
18,037
18,711
52,109
50,100
Navigation fees, landing fees and other rent
16,438
15,153
46,901
44,090
Travel
14,535
14,746
43,485
42,189
Loss (gain) on disposal of aircraft
501
(1,058
)
79
(2,417
)
Other
27,157
27,699
80,515
85,306
Total Operating Expenses
347,684
346,986
1,057,535
1,054,298
Operating Income
57,706
62,265
128,764
138,962
Non-operating Expenses (Income)
Interest income
(4,849
)
(4,833
)
(15,003
)
(14,629
)
Interest expense
22,594
17,004
61,711
46,598
Capitalized interest
(291
)
(4,052
)
(1,985
)
(16,356
)
Loss on early extinguishment of debt
4,524
143
5,518
285
Other expense (income), net
(241
)
(331
)
1,415
454
Total Non-operating Expenses (Income)
21,737
7,931
51,656
16,352
Income before income taxes
35,969
54,334
77,108
122,610
Income tax expense
11,247
19,759
11,320
45,899
Net Income
24,722
34,575
65,788
76,711
Less: Net income (loss) attributable
to noncontrolling interests
981
717
1,909
(834
)
Net Income Attributable
to Common Stockholders
$
23,741
$
33,858
$
63,879
$
77,545
Earnings per share:
Basic
$
0.94
$
1.28
$
2.48
$
2.94
Diluted
$
0.94
$
1.27
$
2.48
$
2.92
Weighted average shares:
Basic
25,124
26,443
25,710
26,410
Diluted
25,212
26,580
25,784
26,527
2
Atlas Air Worldwide Holdings, Inc. Consolidated Balance Sheets (in thousands, except share data) (Unaudited)
September 30,
2013
December 31, 2012
Assets
Current Assets
Cash and cash equivalents
$
280,967
$
409,763
Short-term investments
11,573
10,119
Restricted cash
5,886
¯
Accounts receivable, net of allowance of $1,539 and $3,172, respectively
118,515
127,704
Prepaid maintenance
21,004
22,293
Deferred taxes
53,799
26,390
Prepaid expenses and other current assets
36,628
36,726
Total current assets
528,372
632,995
Property and Equipment
Flight equipment
2,971,696
2,209,782
Ground equipment
45,049
39,230
Less: accumulated depreciation
(238,992
)
(185,419
)
Purchase deposits for flight equipment
38,978
147,946
Property and equipment, net
2,816,731
2,211,539
Other Assets
Long-term investments and accrued interest
129,665
140,498
Deposits and other assets
133,238
132,120
Intangible assets, net
35,947
35,533
Total Assets
$
3,643,953
$
3,152,685
Liabilities and Equity
Current Liabilities
Accounts payable
$
42,700
$
20,789
Accrued liabilities
150,741
152,467
Current portion of long-term debt1,2
262,568
154,760
Total current liabilities
456,009
328,016
Other Liabilities
Long-term debt1,2
1,473,685
1,149,282
Deferred taxes
302,274
265,384
Other liabilities
124,897
121,899
Total other liabilities
1,900,856
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; 28,198,464 and
27,672,924 shares issued, 25,037,540 and 26,443,441, shares outstanding
(net of treasury stock), as of September 30, 2013 and December 31, 2012, respectively
282
277
Additional paid-in-capital
557,078
544,421
Treasury stock, at cost; 3,160,924 and 1,229,483 shares, respectively
(125,796
)
(44,850
)
Accumulated other comprehensive loss
(12,790
)
(14,263
)
Retained earnings
862,555
798,676
Total stockholders’ equity
1,281,329
1,284,261
Noncontrolling interest
5,759
3,843
Total equity
1,287,088
1,288,104
Total Liabilities and Equity
$
3,643,953
$
3,152,685
1 Balance sheet debt at September 30, 2013 totaled $1,736.3 million, including the impact of $42.8 million of unamortized discount.
2 The face value of our debt at September 30, 2013 totaled $1,779.1 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 Nine Months Ended
September 30, 2013
September 30, 2012
Operating Activities:
Net Income Attributable to Common Stockholders
$
63,879
$
77,545
Net income (loss) attributable to noncontrolling interests
1,909
(834
)
Net Income
65,788
76,711
Adjustments to reconcile Net Income
to net cash provided by operating activities:
Depreciation and amortization
73,324
51,509
Accretion of debt securities discount
(6,758
)
(6,454
)
Provision for allowance for doubtful accounts
217
897
Loss on early extinguishment of debt
5,518
285
Loss (gain) on disposal of aircraft
79
(2,417
)
Deferred taxes
10,511
45,346
Stock-based compensation expense
12,176
12,243
Changes in:
Accounts receivable
6,818
(334
)
Prepaid expenses and other current assets
12,494
38,991
Deposits and other assets
2,834
(10,315
)
Accounts payable and accrued liabilities
24,665
(9,256
)
Net cash provided by operating activities
207,666
197,206
Investing Activities:
Capital expenditures
(24,860
)
(26,732
)
Purchase deposits and delivery payments for flight equipment
(561,979
)
(312,494
)
Changes in restricted cash
(5,886
)
Investment in debt securities
¯
(1,179
)
Proceeds from short-term investments
4,672
4,342
Proceeds from insurance
9,109
¯
Proceeds from disposal of aircraft
4,250
2,715
Net cash used for investing activities
(574,694
)
(333,348
)
Financing Activities:
Proceeds from debt issuance
709,484
639,628
Refund of accelerated share repurchase
21,886
¯
Prepayment of accelerated share repurchase
(21,886
)
¯
Purchase of treasury stock
(80,946
)
(3,318
)
Excess tax benefit from stock-based compensation expense
472
550
Payment of debt issuance costs
(19,682
)
(24,808
)
Payments of debt
(371,096
)
(347,232
)
Net cash provided by financing activities
238,232
264,820
Net (decrease) increase in cash and cash equivalents
(128,796
)
128,678
Cash and cash equivalents at the beginning of period
409,763
187,111
Cash and cash equivalents at the end of period
$
280,967
$
315,789
Non-cash Investing and Financing Activities:
Acquisition of flight equipment and assumed debt
$
90,498
$
¯
Atlas Air Worldwide Holdings, Inc. Direct Contribution (in thousands) (Unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30, 2013
September 30, 2012
September 30, 2013
September 30, 2012
Operating Revenue:
ACMI
$
189,583
$
177,722
$
552,710
$
492,846
AMC Charter
95,668
117,377
287,840
376,685
Commercial Charter
104,605
108,078
313,488
305,852
Dry Leasing
11,874
3,057
21,844
8,864
Other
3,660
3,017
10,417
9,013
Total Operating Revenue
$
405,390
$
409,251
$
1,186,299
$
1,193,260
Direct Contribution:
ACMI
$
62,587
$
51,625
$
157,594
$
116,573
AMC Charter
14,749
25,437
40,144
76,002
Commercial Charter
(3,859
)
3,602
(15,023
)
15,559
Dry Leasing
4,681
1,378
8,294
3,967
Total Direct Contribution for Reportable Segments
$ 78,158
$82,042
$191,009
$212,101
Unallocated income and expenses, net
(37,163)
(28,623)
(108,304)
(91,623)
Loss on early extinguishment of debt
(4,524)
(143)
(5,518)
(285)
Loss (gain) on disposal of aircraft
(501
)
1,058
(79
)
2,417
Income before Income Taxes
35,970
54,334
77,108
122,610
Interest income
(4,849
)
(4,833
)
(15,003
)
(14,629
)
Interest expense
22,594
17,004
61,711
46,598
Capitalized interest
(291
)
(4,052
)
(1,985
)
(16,356
)
Loss on early extinguishment of debt
4,524
143
5,518
285
Other expense (income), net
(241
)
(331)
1,415
454
Operating Income
$
57,707
$
62,265
$
128,764
$
138,962
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, losses (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.
3
Atlas Air Worldwide Holdings, Inc. Reconciliation to Non-GAAP Measures (in thousands, except per share data) (Unaudited)
For the Three Months Ended
September 30, 2013
September 30, 2012
Percent Change
Net Income Attributable to Common Stockholders
$
23,741
$
33,858
(29.9
%)
After-tax impact from:
Fleet retirement costs1
-
125
Loss on early extinguishment of debt2
4,524
91
Loss (gain) on disposal of aircraft
319
(674
)
Adjusted Net Income Attributable to Common Stockholders
$ 28,584
$ 33,400
(14.4%)
Diluted EPS
$
0.94
$
1.27
(26.0
%)
After-tax impact from:
Fleet retirement costs1
-
—
Loss on early extinguishment of debt2
0.18
—
Loss (gain) on disposal of aircraft
0.01
(0.03
)
Adjusted Diluted EPS
$
1.13
$ 1.263
(10.3
%)
For the Nine Months Ended
September 30, 2013
September 30, 2012
Percent Change
Net Income Attributable to Common Stockholders
$
63,879
$
77,545
(17.6
%)
After-tax impact from:
Fleet retirement costs1
-
2,093
Loss on early extinguishment of debt2
5,157
182
ETI tax benefit
(14,160
)
-
Loss (gain) on disposal of aircraft
50
(1,540
)
Adjusted Net Income Attributable to Common Stockholders
$ 54,926
$ 78,280
(29.8%)
Diluted EPS
$
2.48
$
2.92
(15.1
%)
After-tax impact from:
Fleet retirement costs1
-
0.08
Loss on early extinguishment of debt2
0.20
0.01
ETI tax benefit
(0.55
)
-
Loss (gain) on disposal of aircraft
-
(0.06
)
Adjusted Diluted EPS
$
2.13
$
2.95
(27.8
%)
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 and 777-200LRF 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)
Full-Year 2013 Diluted EPS Guidance
GAAP Measure
$3.75 to 4.15
Loss on early extinguishment of debt
0.20
ETI tax benefit
(0.55
)
Loss on disposal of aircraft
-
Non-GAAP Measure
$3.40 to 3.80
For the Three Months Ended
September 30, 2013
September 30, 2012
Net Cash Provided by Operating Activities
$
79,489
$
111,268
Less:
Capital expenditures
5,369
8,289
Capitalized interest
291
4,052
Free Cash Flow1
$
73,829
$
98,927
For the Nine Months Ended
September 30, 2013
September 30, 2012
Net Cash Provided by Operating Activities
$
207,666
$
197,206
Less:
Capital expenditures
24,860
26,732
Capitalized interest
1,985
16,356
Free Cash Flow1
$
180,821
$
154,118
1
Free Cash Flow = Cash Flows from Operations minus Base Capital Expenditures and Capitalized Interest.
Base Capital Expenditures excludes purchases of aircraft.
4
Atlas Air Worldwide Holdings, Inc. Reconciliation to Non-GAAP Measures (in thousands) (Unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30, 2013
September 30, 2012
September 30, 2013
September 30, 2012
Income before income taxes
$
35,969
$
54,334
$
77,108
$
122,610
Fleet retirement costs1
-
196
-
3,286
Loss on early extinguishment of debt
4,524
143
5,518
285
Loss (gain) on disposal of aircraft
501
(1,058
)
79
(2,417
)
Adjusted pretax income
40,994
53,615
82,705
123,764
Interest (income) expense, net
��
17,454
8,119
44,723
15,613
Other non-operating expenses (income)
(241)
(331)
1,415
454
Adjusted operating income
58,207
61,403
128,843
139,831
Depreciation and amortization
23,661
16,612
61,840
44,792
EBITDA, as adjusted2
81,868
78,015
190,683
184,623
Aircraft rent
48,448
44,133
130,703
126,309
EBITDAR, as adjusted3
$
130,316
$
122,148
$
321,386
$
310,932
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 losses (gains) on disposal of aircraft, as applicable.
3
Adjusted EBITDAR: Earnings before interest, taxes, depreciation, amortization, aircraft rent expense, fleet retirement costs, and losses (gains) on disposal of aircraft, as applicable.
5
Atlas Air Worldwide Holdings, Inc. Operating Statistics and Traffic Results (Unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30,
Increase/
September 30,
Increase/
2013
2012
(Decrease)
2013
2012
(Decrease)
Block Hours
ACMI
28,813
28,451
362
85,274
78,698
6,576
AMC Charter
Cargo
1,531
2,283
(752
)
5,296
8,152
(2,856
)
Passenger
3,029
3,882
(853
)
8,264
9,121
(857
)
Commercial Charter
5,310
5,331
(21
)
16,360
14,761
1,599
Nonrevenue
220
277
(57
)
655
908
(253
)
Total Block Hours
38,903
40,224
(1,321
)
115,849
111,640
4,209
Revenue Per Block Hour
ACMI
$
6,580
$
6,247
$
333
$
6,482
$
6,262
$
220
AMC Charter
20,980
19,039
1,941
21,227
21,808
(581
)
Cargo
21,962
19,853
2,109
22,681
23,771
(1,090
)
Passenger
20,483
18,561
1,922
20,296
20,053
243
Commercial Charter
19,700
20,273
(573
)
19,162
20,720
(1,558
)
Average Utilization (block hours per day)
ACMI1
10.1
11.9
(1.8
)
10.4
12.3
(1.9
)
AMC Charter
Cargo
5.4
9.2
(3.8
)
6.7
9.0
(2.3
)
Passenger
8.0
9.0
(1.0
)
7.0
8.3
(1.3
)
Commercial Charter
6.3
9.3
(3.0
)
7.0
9.1
(2.1
)
All Operating Aircraft1,2
8.9
11.0
(2.1
)
9.3
11.2
(1.9
)
Fuel
AMC
Average fuel cost
per gallon
$
3.62
$
2.67
$
0.95
$
3.63
$
3.27
$
0.36
Fuel gallons
11,324
15,357
(4,033
)
33,847
44,909
(11,062
)
consumed (000s)
Commercial Charter
Average fuel cost
per gallon
$
3.09
$
3.29
$
(0.20
)
$
3.13
$
3.34
$
(0.21
)
Fuel gallons
16,956
17,637
(681
)
53,210
49,256
3,954
consumed (000s)
1 ACMI and All Operating Aircraft averages in the third quarter and first nine 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 Nine Months Ended
September 30,
Increase/
September 30,
Increase/
2013
2012
(Decrease)
2013
2012
(Decrease)
Segment Operating Fleet (average
aircraft equivalents during the period)
ACMI1
747-8F Cargo
8.0
4.7
3.3
7.7
3.7
4.0
747-400 Cargo2
13.6
16.5
(2.9
)
13.8
16.7
(2.9
)
767-300 Cargo
2.0
—
2.0
1.8
—
1.8
767-200 Cargo
5.0
3.8
1.2
5.0
1.8
3.2
747-400 Passenger
1.4
1.0
0.4
1.1
1.1
—
767-300 Passenger
—
—
—
0.3
—
0.3
767-200 Passenger
1.0
—
1.0
0.3
—
0.3
Total
31.0
26.0
5.0
30.0
23.3
6.7
AMC Charter
747-400 Cargo
3.1
2.7
0.4
2.9
3.1
(0.2
)
747-200 Cargo
—
—
—
—
0.2
(0.2
)
747-400 Passenger
1.4
1.8
(0.4
)
1.7
1.7
—
767-300 Passenger
2.7
2.9
(0.2
)
2.6
2.3
0.3
Total
7.2
7.4
(0.2
)
7.2
7.3
(0.1
)
Commercial Charter
747-8F Cargo
1.0
—
1.0
0.4
—
0.4
747-400 Cargo
7.7
5.9
1.8
7.8
5.3
2.5
747-200 Cargo
—
—
—
—
0.2
(0.2
)
747-400 Passenger
0.2
0.2
—
0.2
0.2
—
767-300 Passenger
0.2
0.1
0.1
0.2
0.2
—
Total
9.1
6.2
2.9
8.6
5.9
2.7
Dry Leasing
777-200 Cargo
2.6
—
2.6
1.3
—
1.3
757-200 Cargo
1.0
1.0
—
1.0
1.0
—
737-300 Cargo
1.0
0.8
0.2
1.0
0.3
0.7
737-800 Passenger
2.0
2.0
—
2.0
2.0
—
Total
6.6
3.8
2.8
5.3
3.3
2.0
Total Operating Aircraft
53.9
43.4
10.5
51.1
39.8
11.3
Out of Service3
1.0
-
1.0
0.8
-
0.8
1 ACMI average fleet excludes spare aircraft provided by CMI customers. 2 Includes 1.6 and 1.3 Large Cargo Freighters in the three-month periods ended September 30, 2013 and 2012, respectively. Includes 1.6 and 1.1 Large Cargo Freighters in the nine-month periods ended September 30, 2013 and 2012, respectively.
3 Out-of-service aircraft were temporarily parked during the period and are completely unencumbered.
6
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