Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Nov. 07, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Air Transport Services Group, Inc. | ||
Entity Central Index Key | 894,081 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 59,568,299 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 551,045,344 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 47,186 | $ 17,697 |
Accounts receivable, net of allowance of $289 in 2016 and $415 in 2015 | 66,285 | 57,986 |
Inventory | 14,054 | 12,963 |
Prepaid supplies and other | 15,571 | 12,660 |
TOTAL CURRENT ASSETS | 143,096 | 101,306 |
Property and equipment, net | 960,998 | 875,401 |
Other assets | 72,720 | 26,285 |
Goodwill and acquired intangibles | 38,518 | 38,729 |
Intangibles | 4,123 | |
TOTAL ASSETS | 1,215,332 | 1,041,721 |
CURRENT LIABILITIES: | ||
Accounts payable | 57,831 | 44,417 |
Accrued salaries, wages and benefits | 27,338 | 27,454 |
Accrued expenses | 8,959 | 8,107 |
Current portion of debt obligations | 35,268 | 33,740 |
Unearned revenue | 13,151 | 12,963 |
TOTAL CURRENT LIABILITIES | 142,547 | 126,681 |
Long term debt | 413,865 | 283,918 |
Post-retirement obligations | 97,646 | 108,194 |
Other liabilities | 62,309 | 61,913 |
Stock warrants | 65,977 | 0 |
Deferred income taxes | 109,827 | 96,858 |
TOTAL LIABILITIES | 892,171 | 677,564 |
Commitments and contingencies (Notes B and G) | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, 20,000,000 shares authorized, including 75,000 Series A Junior Participating Preferred Stock | 0 | 0 |
Common stock, par value $0.01 per share; 85,000,000 shares authorized; 59,598,299 and 64,077,140 shares issued and outstanding in 2016 and 2015, respectively | 596 | 641 |
Additional paid-in capital | 448,833 | 518,259 |
Accumulated deficit | (33,775) | (55,731) |
Accumulated other comprehensive loss | (92,493) | (99,012) |
TOTAL STOCKHOLDERS’ EQUITY | 323,161 | 364,157 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,215,332 | $ 1,041,721 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets, Current [Abstract] | ||
Allowance for doubtful accounts | $ 289 | $ 415 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 85,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 59,598,299 | 64,077,140 |
Common stock, shares outstanding (in shares) | 59,598,299 | 64,077,140 |
Preferred Stock [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Series A Junior Participating Preferred Stock [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 75,000 | 75,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUES | $ 193,261 | $ 142,305 | $ 547,195 | $ 437,683 |
OPERATING EXPENSES | ||||
Salaries, wages and benefits | 59,405 | 41,624 | 165,471 | 127,339 |
Fuel | 24,372 | 12,029 | 58,171 | 35,082 |
Maintenance, materials and repairs | 27,356 | 24,655 | 81,089 | 71,341 |
Depreciation and amortization | 33,939 | 30,754 | 99,605 | 91,147 |
Travel | 5,440 | 3,989 | 14,926 | 12,754 |
Contracted ground and aviation services | 12,865 | 3,640 | 32,664 | 10,177 |
Rent | 3,309 | 2,246 | 8,515 | 8,900 |
Landing and ramp | 3,220 | 2,108 | 9,523 | 6,982 |
Insurance | 1,099 | 832 | 3,335 | 2,636 |
Other operating expenses | 7,800 | 7,511 | 28,288 | 21,085 |
Operating Expenses | 178,805 | 129,388 | 501,587 | 387,443 |
OPERATING INCOME | 14,456 | 12,917 | 45,608 | 50,240 |
OTHER INCOME (EXPENSE) | ||||
Interest income | 37 | 18 | 98 | 64 |
Net gain (loss) on financial instruments | (8,473) | 96 | (3,443) | 347 |
Interest expense | (2,897) | (2,684) | (8,229) | (8,588) |
Other Nonoperating Income (Expense) | (11,333) | (2,570) | (11,574) | (8,177) |
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 3,123 | 10,347 | 34,034 | 42,063 |
INCOME TAX EXPENSE | (1,007) | (4,000) | (12,219) | (16,251) |
EARNINGS FROM CONTINUING OPERATIONS | 2,116 | 6,347 | 21,815 | 25,812 |
EARNINGS FROM DISCONTINUED OPERATIONS, NET OF TAXES | 47 | 214 | 141 | 642 |
NET EARNINGS | $ 2,163 | $ 6,561 | $ 21,956 | $ 26,454 |
BASIC EARNINGS PER SHARE | ||||
Basic earnings per share from continuing operations (in dollars per share) | $ 0.04 | $ 0.10 | $ 0.35 | $ 0.40 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.01 |
TOTAL BASIC EARNINGS PER SHARE (in dollars per share) | 0.04 | 0.10 | 0.35 | 0.41 |
DILUTED EARNINGS PER SHARE | ||||
Diluted earnings per share from continuing operations (in dollars per share) | 0.04 | 0.10 | 0.34 | 0.40 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
TOTAL DILUTED NET EARNINGS PER SHARE (in dollars per share) | $ 0.04 | $ 0.10 | $ 0.34 | $ 0.40 |
WEIGHTED AVERAGE SHARES | ||||
Basic (in shares) | 59,379 | 64,239 | 62,084 | 64,411 |
Diluted (in shares) | 60,283 | 65,171 | 64,024 | 65,341 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
NET EARNINGS | $ 2,163 | $ 6,561 | $ 21,956 | $ 26,454 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (4) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (256) | (55) | 54 | (351) |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Income tax (expense) or benefit | 0 | 46 | ||
TOTAL COMPREHENSIVE INCOME, net of tax | 4,062 | 7,608 | 28,475 | 29,405 |
Pension Plans [Member] | ||||
Other comprehensive income (loss), net of tax | 2,146 | 1,142 | 6,438 | 3,426 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Income tax (expense) or benefit | (1,222) | (651) | (3,666) | (1,953) |
Post-Retirement Plans [Member] | ||||
Other comprehensive income (loss), net of tax | 9 | (40) | 27 | (120) |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Income tax (expense) or benefit | (5) | $ 23 | (15) | 69 |
Retained Earnings [Member] | ||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
TOTAL COMPREHENSIVE INCOME, net of tax | $ 2,163 | $ 21,956 | $ 26,454 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Purchase of common stock | $ (62,155) | $ 6,919 |
OPERATING ACTIVITIES: | ||
Net earnings from continuing operations | 21,815 | 25,812 |
Net earnings from discontinued operations | 141 | 642 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortizations | 101,971 | 91,147 |
Pension and post-retirement | 10,146 | 5,190 |
Deferred income taxes | 12,057 | 15,988 |
Amortization of stock-based compensation | 2,248 | 1,968 |
Amortization of DHL promissory note | 0 | (1,550) |
Net loss on financial instruments | 3,443 | (347) |
Changes in assets and liabilities: | ||
Accounts receivable | 2,750 | 4,200 |
Inventory and prepaid supplies | (4,203) | 1,089 |
Accounts payable | 726 | 3,817 |
Unearned revenue | (2,883) | 1,531 |
Accrued expenses, salaries, wages, benefits and other liabilities | 4,267 | (1,527) |
Pension and post-retirement assets | (10,551) | (13,727) |
Other | 1,670 | 401 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 143,597 | 134,634 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (182,106) | (110,973) |
Proceeds from property and equipment | 7 | 1,370 |
NET CASH (USED IN) INVESTING ACTIVITIES | (182,099) | (109,603) |
FINANCING ACTIVITIES: | ||
Principal payments on long term obligations | (23,623) | (53,197) |
Proceeds from borrowings | 155,000 | 20,000 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 67,991 | (40,730) |
Taxes paid for conversion of employee stock awards | (1,231) | 614 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 29,489 | (15,699) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 17,697 | 30,560 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 47,186 | 14,861 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid, net of amount capitalized | 7,793 | 8,219 |
Federal alternative minimum and state income taxes paid | 761 | 871 |
SUPPLEMENTAL NON-CASH INFORMATION: | ||
Debt extinguished | 0 | 1,550 |
Accrued capital expenditures | $ 19,721 | $ 13,241 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at at Dec. 31, 2015 | $ 364,157 | ||
Balance at (in shares) at Dec. 31, 2015 | 64,077,140 | ||
Stock-based compensation plans | |||
Total comprehensive income (loss) | $ 28,475 | $ 21,956 | $ 6,519 |
Balance at at Sep. 30, 2016 | $ 323,161 | ||
Balance at (in shares) at Sep. 30, 2016 | 59,598,299 |
Summary of Financial Statement
Summary of Financial Statement Preparation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Financial Statement Preparation and Significant Accounting Policies | SUMMARY OF FINANCIAL STATEMENT PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Air Transport Services Group, Inc. is a holding company whose principal subsidiaries include an aircraft leasing company and two independently certificated airlines. The Company provides airline operations, aircraft leases, aircraft maintenance and other support services primarily to the cargo transportation and package delivery industries. Through the Company's subsidiaries, it offers a range of complementary services to delivery companies, freight forwarders, airlines and government customers. The Company's leasing subsidiary, Cargo Aircraft Management, Inc. (“CAM”), leases aircraft to each of the Company's airlines as well as to non-affiliated airlines and other lessees. The airlines, ABX Air, Inc. (“ABX”) and Air Transport International, Inc. (“ATI”), each have the authority, through their separate U.S. Department of Transportation ("DOT") and Federal Aviation Administration ("FAA") certificates, to transport cargo worldwide. ATI provides passenger transportation, primarily to the U.S. Military, using "combi" aircraft, which are certified to carry passengers as well as cargo on the main deck. The Company serves a base of concentrated customers who typically have a diverse line of international cargo traffic. The Company provides aircraft and airline operations to its customers, typically under contracts providing for a combination of aircraft, crews, maintenance and insurance ("ACMI") services. In addition to its airline operations and aircraft leasing services, the Company sells aircraft parts, provides aircraft and equipment maintenance services, and operates mail and package sorting facilities. Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and such principles are applied on a basis consistent with the financial statements reflected in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations promulgated by the SEC related to interim financial statements. In the opinion of management, the accompanying financial statements contain all adjustments, including normal recurring adjustments, necessary for the fair presentation of the Company’s results of operations and financial position for the periods presented. Due to seasonal fluctuations, among other factors common to the airline industry, the results of operations for the periods presented are not necessarily indicative of the results of operations to be expected for the entire year or any interim period. The preparation of consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. The accounting estimates reflect the best judgment of management, but actual results could differ materially from those estimates. The accompanying condensed consolidated financial statements include the accounts of Air Transport Services Group, Inc. and its wholly-owned subsidiaries. Investments in an affiliate in which the Company has significant influence but does not exercise control are accounted for using the equity method of accounting. Using the equity method, the Company’s share of the nonconsolidated affiliate's income or loss is recognized in the consolidated statement of earnings and cumulative post-acquisition changes in the investment are adjusted against the carrying amount of the investment. Inter-company balances and transactions are eliminated. New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, "Improvements to Employee Share-Based Payment Accounting," (“ASU 2016-09”) which addresses several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-9 is effective for annual reporting periods beginning after December 15, 2016 and earlier adoption is permitted. The new standard requires that an entity recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. Under the previous standard, excess tax benefits are recognized in additional paid-in capital and tax deficiencies are recognized either as an offset to accumulated excess tax benefits, or in the income statement. The Company elected to early adopt this standard in the quarter ended March 31, 2016. The impact of the early adoption resulted in the Company recording a tax benefit of $0.7 million within income tax expense for the three months ended March 31, 2016 related to the excess tax benefit on stock incentive awards that settled during the quarter ended March 31, 2016. The tax benefit for the nine months ended September 30, 2016 was $0.7 million . Prior to adoption of ASU 2016-09, this amount would have been recorded as an increase of additional paid-in capital. The tax benefit for the nine months ended September 30, 2015 would have been $0.4 million . The Company accounts for forfeitures as they occur. Under ASU 2016-09, excess tax benefits related to employee share-based payments are not reclassified from operating activities to financing activities in the statement of cash flows. The Company applied the effect of ASU 2016-09 to the presentation of excess tax benefits in the statement of cash flows, prospectively. Under ASU 2016-09, cash paid when withholding shares for tax withholding purposes are classified as a financing activity in the statement of cash flows. The Company has applied the effect of this change on prior period statements of cash flows retrospectively. The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the quarter ended September 30, 2016. This increased the diluted weighted average common shares outstanding by 151,421 shares. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 with earlier adoption permitted for reporting periods beginning after December 15, 2016. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect the standard is expected to have on the Company's consolidated financial position, results of operations or cash flows and related disclosures. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"). ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. As a result of the adoption of ASU 2015-03, the amounts of debt issuance costs were reclassified on the Company's balance sheets from other assets to long term debt. In July 2015, FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory" ("ASU 2015-11"). ASU 2015-11 more closely aligns the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards ("IFRS"). The amendment in ASU 2015-11 is for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company does not expect the impact of adopting ASU 2015-11 to be material to the Company's financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" which will require the recognition of right to-use-assets and lease liabilities for leases previously classified as operating leases by lessees. The standard will take effect for annual reporting periods beginning after December 15, 2018, including interim reporting periods. Early application will be permitted for all entities. In addition, the FASB has decided to require a lessee to apply a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements (the date of initial application). The modified retrospective approach would not require any transition accounting for leases that expired before the date of initial application. The FASB decided to not permit a full retrospective transition approach. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. In January 2016, the FASB issued an Exposure Draft of a proposed ASU, "Compensation - Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The proposed ASU would require an employer to report the service cost component of retiree benefits in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost would be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If adopted, the proposed standard would impact the Operating Income subtotal as reported in the Company's Consolidated Statement of Operations by excluding interest expense and investment returns components of retiree benefit expenses. |
Significant Customers
Significant Customers | 9 Months Ended |
Sep. 30, 2016 | |
Significant Customers [Abstract] | |
Significant Customers | SIGNIFICANT CUSTOMERS DHL The Company's largest customer is DHL Network Operations (USA), Inc. and its affiliates ("DHL"). The Company has had long-term contracts with DHL since August 2003. Revenues from continuing operations performed for DHL were approximately 34% and 35% of the Company's consolidated revenues from continuing operations for the three and nine month periods ended September 30, 2016, respectively, compared to 47% and 49% for the corresponding periods of 2015. The Company’s balance sheets include accounts receivable with DHL of $5.0 million and $9.8 million as of September 30, 2016 and December 31, 2015, respectively. The Company leases Boeing 767 aircraft to DHL under both long-term and short-term lease agreements. Under a separate crew, maintenance and insurance (“CMI”) agreement, the Company operates Boeing 767 aircraft that DHL leases from the Company. Pricing for services provided through the CMI agreement is based on pre-defined fees, scaled for the number of aircraft operated and the number of flight crews provided to DHL for its U.S. network. The Company provides DHL with scheduled maintenance services for aircraft that DHL leases or owns. The Company also provides Boeing 767 and Boeing 757 air cargo transportation services for DHL through additional ACMI agreements in which the Company provides the aircraft, crews, maintenance and insurance under a single contract. Revenues generated from the ACMI agreements are typically based on hours flown. The Company also provides ground equipment, such as power units, air starts and related maintenance services to DHL under separate agreements. Amazon During September 2015, the Company began to operate a trial air network for Amazon Fulfillment Services, Inc. (“AFS”), a subsidiary of Amazon.com, Inc. (“Amazon”). The network grew to five freighter aircraft through first quarter of 2016 and included services for cargo handling and logistical support. On March 8, 2016, the Company entered into an Air Transportation Services Agreement (the “ATSA”) with AFS pursuant to which CAM will lease 20 Boeing 767 freighter aircraft to AFS, including 12 Boeing 767-200 freighter aircraft for a term of five years and eight Boeing 767-300 freighter aircraft for a term of seven years. The ATSA, which has a term of five years, also provides for the operation of those aircraft by the Company’s airline subsidiaries, and the performance of hub and gateway services by the Company's subsidiary LGSTX, Services Inc. ("LGSTX"). CAM owns all of the Boeing 767 aircraft that will be leased and operated under the ATSA. The Boeing 767-300 aircraft are being converted to freighter aircraft. The ATSA became effective on April 1, 2016. Revenues from continuing operations performed for AFS comprised approximately 31% and 24% of the Company's consolidated revenues from continuing operations for the three and nine month periods ending September 30, 2016, respectively. The Company’s balance sheets include accounts receivable with AFS of $18.2 million and $10.5 million as of September 30, 2016 and December 31, 2015, respectively. In conjunction with the execution of the ATSA, the Company and Amazon entered into an Investment Agreement and a Stockholders Agreement on March 8, 2016. The Investment Agreement calls for the Company to issue warrants in three tranches, which will grant Amazon the right to acquire up to 19.9% of the Company’s outstanding common shares as described below. The first tranche of warrants, issued upon execution of the Investment Agreement, grants Amazon the right to purchase approximately 12.81 million ATSG common shares, with the right to purchase 7.69 million common shares vesting upon issuance on March 8, 2016 and the right to purchase the remaining 5.12 million common shares vesting as the Company delivers additional aircraft leased under the ATSA, or as the Company achieves specified revenue targets in connection with the ATSA. The second tranche of warrants grants Amazon a right to purchase approximately 1.59 million ATSG common shares, and will be issued on March 8, 2018. The third tranche of warrants will be issued on September 8, 2020. The third tranche of warrants will grant Amazon the right to purchase such additional number of ATSG common shares as is necessary to bring Amazon’s ownership to 19.9% of the Company’s pre-transaction outstanding common shares measured on a GAAP-diluted basis, adjusted for share issuances and repurchases by the Company following the date of the Investment Agreement and after giving effect to the warrants granted. The exercise price of the warrants will be $9.73 per share, which represents the closing price of ATSG’s common shares on February 9, 2016. Each of the three tranches of warrants will be exercisable in accordance with its terms through March 8, 2021. The Company anticipates making available the common shares required for the underlying warrants through a combination of share repurchases and the issuance of additional shares. The Company’s accounting for the warrants has been determined in accordance with the financial reporting guidance for equity-based payments to non-employees and for financial instruments. The fair value of the warrants issued to Amazon as of March 8, 2016 was determined to be $4.89 per share using a Black-Scholes pricing model which considers the Company’s common stock price and various assumptions, such as the volatility of the Company’s common stock, the expected dividend yield, and the risk-free interest rate. The fair value of the 7.69 million vested warrants issued to Amazon was recorded as a lease incentive asset and is amortized against revenues over the duration of the aircraft leases. In March 2016, the value of these warrants was recorded in additional paid in capital, except for the fair value of 0.28 million warrants, which was recorded in liabilities because the Company did not have enough authorized shares to settle these warrants. On May 12, 2016, the Company’s stockholders approved an amendment to the Certificate of Incorporation of the Company at the annual meeting of stockholders to increase the number of authorized common shares and to approve the warrants in full as required under the rules of the Nasdaq Global Select Market. The stockholders' approval enabled features of the warrants that require the vested warrants of the first tranche and the warrants of the second and third tranches to be classified as financial derivatives as of May 12, 2016. Accordingly, the fair value of those warrants was measured and classified in liabilities on that date. As of September 30, 2016, the warrants were remeasured to fair value, resulting in a non-operating loss of $8.8 million and $3.5 million before the effect of income taxes, for the three and nine month periods ended September 30, 2016, respectively. As of June 30, 2016 and September 30, 2016, the Company's liabilities reflected 9.83 million warrants having a fair value of $5.81 and $6.71 per share, respectively, using a Black-Scholes pricing model. The Company's earnings in future periods will be impacted by the number of warrants granted, the re-measurements of warrant fair value, amortizations of the lease incentive asset and the related income tax effects. For income tax calculations, the value and timing of related tax deductions will likely differ from the guidance described above for financial reporting. U.S. Military A substantial portion of the Company's revenues is also derived from the U.S. Military. The U.S. Military awards flights to U.S. certificated airlines through annual contracts and through temporary "expansion" routes. Revenues from services performed for the U.S. Military were approximately 12% and 13% of the Company's total revenues from continuing operations for the three and nine month periods ended September 30, 2016, respectively, compared to 17% and 17% for the corresponding periods of 2015. The Company's balance sheets included accounts receivable with the U.S. Military of $8.3 million and $9.7 million as of September 30, 2016 and December 31, 2015, respectively. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL, INTANGIBLES AND OTHER ASSETS The Company has one reporting unit that has goodwill, CAM. The carrying amounts of goodwill are as follows (in thousands): CAM Carrying value as of December 31, 2015 $ 34,395 Carrying value as of September 30, 2016 $ 34,395 The Company's intangible assets by reportable segment are as follows (in thousands): Customer Airline Relationships Certificates Total ACMI Services Carrying value as of December 31, 2015 $ 1,334 $ 3,000 $ 4,334 Amortization (211 ) — (211 ) Carrying value as of September 30, 2016 $ 1,123 $ 3,000 $ 4,123 The customer relationship intangible amortizes through 2020. The airline certificates have an indefinite life and therefore are not amortized. In January 2014, the Company acquired a 25 percent equity interest in West Atlantic AB of Gothenburg, Sweden ("West"). West, through its two airlines, Atlantic Airlines Ltd. and West Atlantic Sweden AB, operates a fleet of aircraft on behalf of European regional mail carriers and express logistics providers. The airlines operate a combined fleet of British Aerospace ATPs, Bombardier CRJ-200-PFs, and Boeing 767 and 737 aircraft. West leases three Boeing 767 aircraft from the Company. The Company’s carrying value of West was $10.3 million and $13.1 million at September 30, 2016 and December 31, 2015, respectively. The carrying value is reflected in “Other Assets” in the Company’s consolidated balance sheets. The Company's lease incentive is as follows (in thousands): Lease Incentive Carrying value as of December 31, 2015 $ — Warrants granted March 2016 (see Note B) 37,586 Amortization — Carrying value as of March 31, 2016 37,586 Warrants granted May 2016 (see Note B) 13,758 Amortization (934 ) Carrying value as of June 30, 2016 50,410 Amortization (1,432 ) Carrying value as of September 30, 2016 $ 48,978 The lease incentive began to amortize in April 2016, with the commencement of certain aircraft leases, over the duration of the related leases. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company’s money market funds and interest rate swaps are reported on the Company’s consolidated balance sheets at fair values based on market values from identical or comparable transactions. The fair value of the Company’s money market funds and interest rate swaps is based on observable inputs (Level 2) from comparable market transactions. The use of significant unobservable inputs (Level 3) was not necessary in determining the fair value of the Company’s financial assets and liabilities. The following table reflects assets and liabilities that are measured at fair value on a recurring basis (in thousands): As of September 30, 2016 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 21,556 $ — $ 21,556 Total Assets $ — $ 21,556 $ — $ 21,556 Liabilities Interest rate swap $ — $ (438 ) $ — $ (438 ) Stock warrants (see note B) $ — $ (65,977 ) $ — $ (65,977 ) Total Liabilities $ — $ (66,415 ) $ — $ (66,415 ) As of December 31, 2015 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 8,711 $ — $ 8,711 Total Assets $ — $ 8,711 $ — $ 8,711 Liabilities Interest rate swap $ — $ (499 ) $ — $ (499 ) Total Liabilities $ — $ (499 ) $ — $ (499 ) As a result of lower market interest rates compared to the stated interest rates of the Company’s fixed and variable rate debt obligations, the fair value of the Company’s debt obligations, based on Level 2 observable inputs, was approximately $2.1 million more than the carrying value, which was $449.1 million at September 30, 2016 . As of December 31, 2015, the fair value of the Company’s debt obligations was approximately $1.3 million more than the carrying value, which was $317.7 million . The non-financial assets, including goodwill, intangible assets and property and equipment are measured at fair value on a non-recurring basis. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT The Company's property and equipment consists primarily of cargo aircraft, aircraft engines and other flight equipment. Property and equipment, to be held and used, is summarized as follows (in thousands): September 30, December 31, Flight equipment $ 1,473,826 $ 1,372,099 Ground equipment 42,042 36,593 Leasehold improvements, facilities and office equipment 26,459 25,327 Aircraft modifications and projects in progress 117,368 52,717 1,659,695 1,486,736 Accumulated depreciation (698,697 ) (611,335 ) Property and equipment, net $ 960,998 $ 875,401 CAM owned aircraft with a carrying value of $446.8 million and $369.2 million that were under leases to external customers as of September 30, 2016 and December 31, 2015, respectively. |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Obligations | DEBT OBLIGATIONS Long term obligations consisted of the following (in thousands): September 30, December 31, 2016 2015 Unsubordinated term loan $ 89,352 $ 100,708 Revolving credit facility 335,000 180,000 Aircraft loans 24,781 36,950 Total long term obligations 449,133 317,658 Less: current portion (35,268 ) (33,740 ) Total long term obligations, net $ 413,865 $ 283,918 The Company executed a syndicated credit agreement ("Senior Credit Agreement") in May 2011 which includes an unsubordinated term loan and a revolving credit facility. On May 31, 2016, the Company executed an amendment to the Senior Credit Agreement (the "Sixth Credit Amendment"). The Sixth Credit Amendment extended the maturity of the term loan and revolving credit facility to May 30, 2021, increased the capacity of the Revolving credit facility by $100.0 million to $425.0 million and increased the accordion feature such that the Company can now draw up to an additional $100.0 million , subject to the lenders' consent. Under the terms of the Senior Credit Agreement, the Company is required to maintain collateral coverage equal to 150% of the outstanding balance of the term loan and the maximum capacity of the revolving credit facility or 175% of the outstanding balance of the term loan and the total funded revolving credit facility, whichever is less. The minimum collateral coverage which must be maintained is 50% of the outstanding balance of the term loan plus the revolving credit facility commitment, which was $425.0 million . The revolving credit facility has permitted additional indebtedness of $150.0 million . Each year, through May 6, 2019, the Company may request a one year extension of the final maturity date, subject to the lenders' consent. The balances of the unsubordinated term loan are net of debt issuance costs of $0.6 million and $0.5 million for the periods ending September 30, 2016 and December 31, 2015, respectively. The Senior Credit Agreement provides for the issuance of letters of credit on the Company's behalf. As of September 30, 2016, the unused revolving credit facility totaled $81.5 million , net of draws of $335.0 million and outstanding letters of credit of $8.5 million . Under the terms of the Senior Credit Agreement, interest rates are adjusted quarterly based on the Company's earnings before interest, taxes, depreciation and amortization expenses ("EBITDA"), its outstanding debt level and prevailing LIBOR or prime rates. At the Company's current debt-to-EBITDA ratio, the LIBOR-based financing for the unsubordinated term loan and revolving credit facility bear a variable interest rate of 2.28% and 2.28% , respectively. The aircraft loans are collateralized by five aircraft, and amortize monthly with a balloon payment of approximately 20% with maturities between 2016 and early 2018. The interest rates for the aircraft loans range from 6.74% to 7.06% per annum payable monthly. The Senior Credit Agreement is collateralized by certain of the Company's Boeing 767 and 757 aircraft that are not collateralized under aircraft loans. The Senior Credit Agreement contains covenants including, among other things, limitations on certain additional indebtedness, guarantees of indebtedness, as well as a total debt-to-EBITDA ratio and a fixed charge coverage ratio. The Senior Credit Agreement stipulates events of default, including unspecified events that may have material adverse effects on the Company. If an event of default occurs, the Company may be forced to repay, renegotiate or replace the Senior Credit Agreement. The Senior Credit Agreement limits the amount of dividends the Company can pay and the amount of common stock it can repurchase to $75.0 million during any calendar year, provided the Company's total debt-to-EBITDA ratio is under 2.75 times, after giving effect to the dividend or repurchase. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases portions of the air park in Wilmington, Ohio, under lease agreements with a regional port authority, the terms of which expire between May of 2019 and June of 2036 with options to extend the leases. The leased facilities include corporate offices, 310,000 square feet of maintenance hangars and a 100,000 square foot component repair shop at the air park. ABX also has the non-exclusive right to use the airport, which includes one active runway, taxi ways and ramp space. Additionally, the Company leases certain equipment and airport facilities, office space, and maintenance facilities at locations outside of the airpark in Wilmington. Purchase Commitments The Company has agreements with Israel Aerospace Industries Ltd. ("IAI") for the conversion of Boeing 767 passenger aircraft into a standard freighter configuration. The conversion primarily consists of the installation of a standard cargo door and loading system. At September 30, 2016, the Company owned seven Boeing 767-300 aircraft that were in or awaiting induction into the freighter modification process. The Company expects to complete the modification of two Boeing 767-300 aircraft during the remainder of 2016. The Company is committed to the purchase of additional aircraft and to induct twelve aircraft into the freighter modification process during 2017. As of September 30, 2016, the Company's commitments to complete the conversions of aircraft it owns or has the contracts to purchase totaled $291.8 million . Additionally, the Company could incur a cancellation fee for part kits for any aircraft that is not inducted into conversion at IAI. Guarantees and Indemnifications Certain leases and agreements of the Company contain guarantees and indemnification obligations to the lessor, or one or more other parties that are considered reasonable and customary (e.g. use, tax and environmental indemnifications), the terms of which range in duration and are often limited. Such indemnification obligations may continue after expiration of the respective lease or agreement. Other In September 2015, the Company entered into a joint venture agreement to establish an express cargo airline serving multiple destinations within the People's Republic of China (including Hong Kong, Macau and Taiwan) and surrounding countries. The airline will be based in Tianjin, China with registered capital of 400 million RMB (US$63 million). It will be established pending the receipt of required governmental approvals and plans to commence flight operations by mid 2017. The Company may offer the new airline aircraft leases to build its fleet. The Company expects to contribute $16 million to the joint venture through 2017. The Company is currently a party to legal proceedings, including FAA enforcement actions, in various federal and state jurisdictions arising out of the operation of the Company's business. The amount of alleged liability, if any, from these proceedings cannot be determined with certainty; however, the Company believes that its ultimate liability, if any, arising from the pending legal proceedings, as well as from asserted legal claims and known potential legal claims which are probable of assertion, taking into account established accruals for estimated liabilities, should not be material to the Company's financial condition or results of operations. Employees Under Collective Bargaining Agreements As of September 30, 2016 , the flight crewmember employees of ABX and ATI were represented by the labor unions listed below: Airline Labor Agreement Unit Percentage of the Company’s Employees ABX International Brotherhood of Teamsters 9.3% ATI Air Line Pilots Association 6.2% |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Post-Retirement Benefit Plans | PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS Defined Benefit and Post-retirement Healthcare Plans ABX sponsors a qualified defined benefit pension plan for ABX crewmembers and a qualified defined benefit pension plan for a major portion of its other ABX employees that meet minimum eligibility requirements. ABX also sponsors non-qualified defined benefit pension plans for certain employees. These non-qualified plans are unfunded. Employees are no longer accruing benefits under any of the defined benefit pension plans. ABX also sponsors a post-retirement healthcare plan for its ABX employees, which is unfunded. Benefits for covered individuals terminate upon reaching age 65 under the post-retirement healthcare plans. The accounting and valuation for these post-retirement obligations are determined by prescribed accounting and actuarial methods that consider a number of assumptions and estimates. The selection of appropriate assumptions and estimates is significant due to the long time period over which benefits will be accrued and paid. The long-term nature of these benefit payouts increases the sensitivity of certain estimates of our post-retirement costs. The assumptions considered most sensitive in actuarially valuing ABX’s pension obligations and determining related expense amounts are discount rates and expected long-term investment returns on plan assets. Additionally, other assumptions concerning retirement ages, mortality and employee turnover also affect the valuations. Actual results and future changes in these assumptions could result in future costs significantly higher than those recorded in our results of operations. The Company's net periodic benefit costs for its defined benefit pension plans and post-retirement healthcare plans for both continuing and discontinued operations are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Pension Plans Post-Retirement Healthcare Plan Pension Plans Post-Retirement Healthcare Plan 2016 2015 2016 2015 2016 2015 2016 2015 Service cost $ — $ — $ 31 $ 44 $ — $ — 93 132 Interest cost 8,968 8,646 42 48 26,904 25,938 126 144 Expected return on plan assets (10,264 ) (11,020 ) — — (30,792 ) (33,060 ) — — Amortization of prior service cost — — (26 ) (136 ) — — (78 ) (408 ) Amortization of net (gain) loss 3,368 1,793 40 73 10,104 5,379 120 219 Net periodic benefit cost (gain) $ 2,072 $ (581 ) $ 87 $ 29 $ 6,216 $ (1,743 ) $ 261 $ 87 During the three and nine month periods ended September 30, 2016, the Company contributed $5.3 million and $6.3 million to the pension plans, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes for interim periods is based on management's best estimate of the effective income tax rate expected to be applicable for the current year, plus any adjustments arising from changes in the estimated amount of taxable income related to prior periods. Income tax expense recorded through September 30, 2016 has been estimated utilizing a 38.5% rate based upon year-to-date income and projected results for the full year. Additionally, the Company recorded a discrete tax benefit of $0.7 million related to the conversion of employee stock awards during the first quarter of 2016. The final effective tax rate applied to 2016 will depend on the actual amount of non-deductible items, pre-tax book income generated by the Company for the full year and taxes related to the stock warrants granted to Amazon. The Company has operating loss carryforwards for U.S. federal income tax purposes. Management expects to utilize the loss carryforwards to offset federal income tax liabilities in the future. Due to the Company's deferred tax assets, including its loss carryforwards, management does not expect to pay federal income taxes until 2019 or later. The Company may, however, be required to pay alternative minimum taxes and certain state and local income taxes before then. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company's Senior Credit Agreement requires the Company to maintain derivative instruments for protection from fluctuating interest rates, for at least fifty percent of the outstanding balance of the term loan. Accordingly, the Company entered into interest rate swaps. The Company entered into a new interest rate swap in February of 2016 having an initial notional value of $48.8 million and a forward start date of May 9, 2016. Under this swap, the Company will pay a fixed rate of 1.09% and receive a floating rate that resets monthly based on LIBOR. The interest rate swaps are described in the table below (in thousands): September 30, 2016 December 31, 2015 Expiration Date Stated Interest Rate Notional Amount Market Value (Liability) Notional Amount Market Value (Liability) May 9, 2016 2.020 % — — 50,625 (247 ) June 30, 2017 1.183 % 45,000 (173 ) 50,625 (252 ) May 5, 2021 1.090 % 45,000 (265 ) — — The outstanding interest rate swaps are not designated as hedges for accounting purposes. The effects of future fluctuations in LIBOR interest rates on derivatives held by the Company will result in the recording of unrealized gains and losses into the statement of operations. The Company recorded net effects on derivatives of a $0.1 million gain and a $0.3 million gain for the nine month periods ended September 30, 2016 and 2015, respectively. The liability for outstanding derivatives is recorded in other liabilities and in accrued expenses. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) includes the following components for the three and nine month periods ending September 30, 2016 and 2015 (in thousands): Defined Benefit Pension Defined Benefit Post-Retirement Gains and Losses on Derivative Foreign Currency Translation Total Balance as of June 30, 2015 (78,907 ) (710 ) — (1,355 ) (80,972 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (84 ) (84 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 1,793 73 — — 1,866 Negative prior service cost (reclassified to salaries, wages and benefits) — (136 ) — — (136 ) Income Tax (Expense) or Benefit (651 ) 23 — 29 (599 ) Other comprehensive income (loss), net of tax 1,142 (40 ) — (55 ) 1,047 Balance as of September 30, 2015 (77,765 ) (750 ) — (1,410 ) (79,925 ) Balance as of December 31, 2014 (81,191 ) (630 ) 4 (1,059 ) (82,876 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (537 ) (537 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 5,379 219 — — 5,598 Negative prior service cost (reclassified to salaries, wages and benefits) — (408 ) — — (408 ) Hedging gain (reclassified to interest expense) — — (50 ) — (50 ) Income Tax (Expense) or Benefit (1,953 ) 69 46 186 (1,652 ) Other comprehensive income (loss), net of tax 3,426 (120 ) (4 ) (351 ) 2,951 Balance as of September 30, 2015 (77,765 ) (750 ) — (1,410 ) (79,925 ) Defined Benefit Pension Defined Benefit Post-Retirement Gains and Losses on Derivative Foreign Currency Translation Total Balance as of June 30, 2016 (93,010 ) (297 ) — (1,085 ) (94,392 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (397 ) (397 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 3,368 40 — — 3,408 Negative prior service cost (reclassified to salaries, wages and benefits) — (26 ) — — (26 ) Income Tax (Expense) or Benefit (1,222 ) (5 ) — 141 (1,086 ) Other comprehensive income (loss), net of tax 2,146 9 — (256 ) 1,899 Balance as of September 30, 2016 (90,864 ) (288 ) — (1,341 ) (92,493 ) Balance as of December 31, 2015 (97,302 ) (315 ) — (1,395 ) (99,012 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — 75 75 Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 10,104 120 — — 10,224 Negative prior service cost (reclassified to salaries, wages and benefits) — (78 ) — — (78 ) Income Tax (Expense) or Benefit (3,666 ) (15 ) — (21 ) (3,702 ) Other comprehensive income (loss), net of tax 6,438 27 — 54 6,519 Balance as of September 30, 2016 (90,864 ) (288 ) — (1,341 ) (92,493 ) |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company's Board of Directors has granted stock incentive awards to certain employees and board members pursuant to a long term incentive plan which was approved by the Company's stockholders in May 2005 and in May 2015. Employees have been awarded non-vested stock units with performance conditions, non-vested stock units with market conditions and non-vested restricted stock. The restrictions on the non-vested restricted stock awards lapse at the end of a specified service period, which is typically approximately three years from the date of grant. Restrictions could lapse sooner upon a business combination, death, disability or after an employee qualifies for retirement. The non-vested stock units will be converted into a number of shares of Company stock depending on performance and market conditions at the end of a specified service period, lasting approximately three years. The performance condition awards will be converted into a number of shares of Company stock based on the Company's average return on invested capital during the service period. Similarly, the market condition awards will be converted into a number of shares depending on the appreciation of the Company's stock compared to the NASDAQ Transportation Index. Board members were granted time-based awards with vesting periods of approximately six or twelve months. The Company expects to settle all of the stock unit awards by issuing new shares of stock. The table below summarizes award activity. Nine Months Ended September 30, 2016 September 30, 2015 Number of Awards Weighted average grant-date fair value Number of Awards Weighted average grant-date fair value Outstanding at beginning of period 1,157,659 $ 7.52 1,406,550 $ 6.21 Granted 294,060 15.43 390,200 9.61 Converted (160,500 ) 7.20 (263,791 ) 6.42 Expired — — (1,600 ) 10.11 Forfeited (9,200 ) 10.23 (13,800 ) 7.36 Outstanding at end of period 1,282,019 $ 9.36 1,517,559 $ 7.03 Vested 338,919 $ 6.12 329,059 $ 5.61 The average grant-date fair value of each performance condition award, non-vested restricted stock award and time-based award granted by the Company in 2016 was $14.39 , the fair value of the Company’s stock on the date of grant. The average grant-date fair value of each market condition award granted in 2016 was $19.65 . The market condition awards were valued using a Monte Carlo simulation technique, a risk-free interest rate of 1.1% and a volatility of 36.9% based on volatility over three years using daily stock prices. For the nine month periods ended September 30, 2016 and 2015, the Company recorded expense of $2.2 million and $2.0 million , respectively, for stock incentive awards. At September 30, 2016, there was $3.9 million of unrecognized expense related to the stock incentive awards that is expected to be recognized over a weighted-average period of 1.3 years. As of September 30, 2016, none of the awards were convertible, 338,919 units of the Board members time-based awards had vested and none of the outstanding shares of the restricted stock had vested. These awards could result in a maximum number of 1,544,219 additional outstanding shares of the Company’s common stock depending on service, performance and market results through December 31, 2018. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | COMMON STOCK AND EARNINGS PER SHARE Earnings per Share The calculation of basic and diluted earnings per common share follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Earnings from continuing operations $ 2,116 $ 6,347 $ 21,815 $ 25,812 Weighted-average shares outstanding - basic 59,379 64,239 62,084 64,411 Common equivalent shares: Effect of stock-based compensation awards 904 932 1,940 930 Weighted-average shares outstanding - diluted 60,283 65,171 64,024 65,341 Basic earnings per share from continuing operations $ 0.04 $ 0.10 $ 0.35 $ 0.40 Diluted earnings per share from continuing operations $ 0.04 $ 0.10 $ 0.34 $ 0.40 The determination of diluted earnings per share in accordance with GAAP requires the adjustment to the numerator, of the fair value re-measurement of the stock warrants recorded as a liability (see Note B) when the inclusion of the warrants has a dilutive effect on earnings per share. The dilutive effect of the stock warrants on the weighted-average shares outstanding is calculated using the treasury stock method. Under this method, the number of diluted shares is determined by dividing the assumed proceeds of the warrants by the average stock price during the period and comparing that amount with the number of warrants outstanding. The assumed proceeds are determined by multiplying the number of shares underlying the warrants by the strike price. The number of equivalent shares that were not included in weighted average shares outstanding assuming dilution, because their effect would have been anti-dilutive, was 3.3 million and 1.1 million for the three and nine month periods ended September 30, 2016 , respectively. The underlying warrants as of September 30, 2016, could result in 9.8 million additional outstanding shares of the Company’s common stock if the warrants are settled by tendering cash. Purchase of Common Stock The Company's Board of Directors has authorized management to repurchase outstanding common stock of the Company from time to time on the open market or in privately negotiated transactions. The authorization does not require the Company to repurchase a specific number of shares and the Company may terminate the repurchase program at any time. Upon the retirement of common stock repurchased, the excess purchase price over the par value for retired shares of common stock is recorded to additional paid-in-capital. On July 5, 2016 the Company purchased 3,825,554 shares of the Company's common stock from its largest shareholder, Red Mountain Partners, L.P., a fund that is affiliated with Red Mountain Capital Partners, LLC (“Red Mountain”), a related party, for an aggregate purchase price of $50.0 million . The purchase price was previously negotiated based on the closing price of the shares on June 20, 2016. The purchase price of $13.07 per share represents a large block discount of 2.5% and 6.2%, respectively, from the volume-weighted average prices of $13.41 for the 10 trading days and $13.93 for the 60 trading days prior to June 20, 2016. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company operates in two reportable segments. The CAM segment consists of the Company's aircraft leasing operations and its segment earnings include an allocation of interest expense. The ACMI Services segment consists of the Company's airline operations, including CMI agreements as well as ACMI and charter service agreements that the Company has with other customers. Due to the similarities among the Company's airline operations, the airline operations are aggregated into a single reportable segment, ACMI Services. The Company's other activities, which include contracts with the U.S. Postal Service ("USPS"), the sale of aircraft parts and maintenance services, hub management services, facility and ground equipment maintenance services, the sales of aviation fuel and management services for workers' compensation, while managed separately, are not large enough to constitute reportable segments and are combined in “All other” with inter-segment profit eliminations. Inter-segment revenues are valued at arms-length market rates. Cash, cash equivalents and deferred tax assets are reflected in Assets - All other below. The Company's segment information from continuing operations is presented below (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Total revenues: CAM $ 46,346 $ 42,574 $ 145,511 $ 131,060 ACMI Services 128,702 99,918 357,803 309,278 All other 65,328 38,398 177,592 106,183 Eliminate inter-segment revenues (47,115 ) (38,585 ) (133,711 ) (108,838 ) Total $ 193,261 $ 142,305 $ 547,195 $ 437,683 Customer revenues: CAM $ 27,920 $ 23,671 $ 86,068 $ 68,212 ACMI Services 128,702 98,820 357,803 308,180 All other 36,639 19,814 103,324 61,291 Total $ 193,261 $ 142,305 $ 547,195 $ 437,683 Depreciation and amortization expense: CAM $ 22,958 $ 21,305 $ 68,295 $ 64,571 ACMI Services 10,528 9,461 30,300 26,579 All other 453 (12 ) 1,010 (3 ) Total $ 33,939 $ 30,754 $ 99,605 $ 91,147 Segment earnings (loss): CAM $ 16,110 $ 13,482 $ 51,849 $ 42,361 ACMI Services (9,686 ) (4,914 ) (27,172 ) (6,359 ) All other 5,089 2,077 13,087 6,993 Net unallocated interest expense 83 (394 ) (287 ) (1,279 ) Net gain (loss) on financial instruments (8,473 ) 96 (3,443 ) 347 Pre-tax earnings from continuing operations $ 3,123 $ 10,347 $ 34,034 $ 42,063 The Company's assets are presented below by segment (in thousands): September 30, December 31, 2016 2015 Assets: CAM $ 941,050 $ 804,776 ACMI Services 164,755 154,852 All other 109,527 82,093 Total $ 1,215,332 $ 1,041,721 Interest expense allocated to CAM was $2.9 million and $7.8 million for the three and nine month periods ending September 30, 2016, respectively, compared to $2.3 million and $7.2 million for the corresponding periods of 2015, respectively. |
Summary of Financial Statemen22
Summary of Financial Statement Preparation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and such principles are applied on a basis consistent with the financial statements reflected in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations promulgated by the SEC related to interim financial statements. In the opinion of management, the accompanying financial statements contain all adjustments, including normal recurring adjustments, necessary for the fair presentation of the Company’s results of operations and financial position for the periods presented. Due to seasonal fluctuations, among other factors common to the airline industry, the results of operations for the periods presented are not necessarily indicative of the results of operations to be expected for the entire year or any interim period. The preparation of consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. The accounting estimates reflect the best judgment of management, but actual results could differ materially from those estimates. The accompanying condensed consolidated financial statements include the accounts of Air Transport Services Group, Inc. and its wholly-owned subsidiaries. Investments in an affiliate in which the Company has significant influence but does not exercise control are accounted for using the equity method of accounting. Using the equity method, the Company’s share of the nonconsolidated affiliate's income or loss is recognized in the consolidated statement of earnings and cumulative post-acquisition changes in the investment are adjusted against the carrying amount of the investment. Inter-company balances and transactions are eliminated. |
New Accounting Pronouncements | New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, "Improvements to Employee Share-Based Payment Accounting," (“ASU 2016-09”) which addresses several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-9 is effective for annual reporting periods beginning after December 15, 2016 and earlier adoption is permitted. The new standard requires that an entity recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. Under the previous standard, excess tax benefits are recognized in additional paid-in capital and tax deficiencies are recognized either as an offset to accumulated excess tax benefits, or in the income statement. The Company elected to early adopt this standard in the quarter ended March 31, 2016. The impact of the early adoption resulted in the Company recording a tax benefit of $0.7 million within income tax expense for the three months ended March 31, 2016 related to the excess tax benefit on stock incentive awards that settled during the quarter ended March 31, 2016. The tax benefit for the nine months ended September 30, 2016 was $0.7 million . Prior to adoption of ASU 2016-09, this amount would have been recorded as an increase of additional paid-in capital. The tax benefit for the nine months ended September 30, 2015 would have been $0.4 million . The Company accounts for forfeitures as they occur. Under ASU 2016-09, excess tax benefits related to employee share-based payments are not reclassified from operating activities to financing activities in the statement of cash flows. The Company applied the effect of ASU 2016-09 to the presentation of excess tax benefits in the statement of cash flows, prospectively. Under ASU 2016-09, cash paid when withholding shares for tax withholding purposes are classified as a financing activity in the statement of cash flows. The Company has applied the effect of this change on prior period statements of cash flows retrospectively. The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the quarter ended September 30, 2016. This increased the diluted weighted average common shares outstanding by 151,421 shares. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 with earlier adoption permitted for reporting periods beginning after December 15, 2016. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect the standard is expected to have on the Company's consolidated financial position, results of operations or cash flows and related disclosures. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"). ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. As a result of the adoption of ASU 2015-03, the amounts of debt issuance costs were reclassified on the Company's balance sheets from other assets to long term debt. In July 2015, FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory" ("ASU 2015-11"). ASU 2015-11 more closely aligns the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards ("IFRS"). The amendment in ASU 2015-11 is for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company does not expect the impact of adopting ASU 2015-11 to be material to the Company's financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" which will require the recognition of right to-use-assets and lease liabilities for leases previously classified as operating leases by lessees. The standard will take effect for annual reporting periods beginning after December 15, 2018, including interim reporting periods. Early application will be permitted for all entities. In addition, the FASB has decided to require a lessee to apply a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements (the date of initial application). The modified retrospective approach would not require any transition accounting for leases that expired before the date of initial application. The FASB decided to not permit a full retrospective transition approach. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. In January 2016, the FASB issued an Exposure Draft of a proposed ASU, "Compensation - Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The proposed ASU would require an employer to report the service cost component of retiree benefits in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost would be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If adopted, the proposed standard would impact the Operating Income subtotal as reported in the Company's Consolidated Statement of Operations by excluding interest expense and investment returns components of retiree benefit expenses. |
Summary of Financial Statemen23
Summary of Financial Statement Preparation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | Property and equipment, to be held and used, is summarized as follows (in thousands): September 30, December 31, Flight equipment $ 1,473,826 $ 1,372,099 Ground equipment 42,042 36,593 Leasehold improvements, facilities and office equipment 26,459 25,327 Aircraft modifications and projects in progress 117,368 52,717 1,659,695 1,486,736 Accumulated depreciation (698,697 ) (611,335 ) Property and equipment, net $ 960,998 $ 875,401 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Lease Incentive [Line Items] | |
Schedule of Lease Incentive [Table Text Block] | The Company's lease incentive is as follows (in thousands): Lease Incentive Carrying value as of December 31, 2015 $ — Warrants granted March 2016 (see Note B) 37,586 Amortization — Carrying value as of March 31, 2016 37,586 Warrants granted May 2016 (see Note B) 13,758 Amortization (934 ) Carrying value as of June 30, 2016 50,410 Amortization (1,432 ) Carrying value as of September 30, 2016 $ 48,978 |
Schedule of Goodwill | The carrying amounts of goodwill are as follows (in thousands): CAM Carrying value as of December 31, 2015 $ 34,395 Carrying value as of September 30, 2016 $ 34,395 |
Schedule Intangible Assets by Major Class | The Company's intangible assets by reportable segment are as follows (in thousands): Customer Airline Relationships Certificates Total ACMI Services Carrying value as of December 31, 2015 $ 1,334 $ 3,000 $ 4,334 Amortization (211 ) — (211 ) Carrying value as of September 30, 2016 $ 1,123 $ 3,000 $ 4,123 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table reflects assets and liabilities that are measured at fair value on a recurring basis (in thousands): As of September 30, 2016 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 21,556 $ — $ 21,556 Total Assets $ — $ 21,556 $ — $ 21,556 Liabilities Interest rate swap $ — $ (438 ) $ — $ (438 ) Stock warrants (see note B) $ — $ (65,977 ) $ — $ (65,977 ) Total Liabilities $ — $ (66,415 ) $ — $ (66,415 ) As of December 31, 2015 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 8,711 $ — $ 8,711 Total Assets $ — $ 8,711 $ — $ 8,711 Liabilities Interest rate swap $ — $ (499 ) $ — $ (499 ) Total Liabilities $ — $ (499 ) $ — $ (499 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment, to be held and used, is summarized as follows (in thousands): September 30, December 31, Flight equipment $ 1,473,826 $ 1,372,099 Ground equipment 42,042 36,593 Leasehold improvements, facilities and office equipment 26,459 25,327 Aircraft modifications and projects in progress 117,368 52,717 1,659,695 1,486,736 Accumulated depreciation (698,697 ) (611,335 ) Property and equipment, net $ 960,998 $ 875,401 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long term obligations consisted of the following (in thousands): September 30, December 31, 2016 2015 Unsubordinated term loan $ 89,352 $ 100,708 Revolving credit facility 335,000 180,000 Aircraft loans 24,781 36,950 Total long term obligations 449,133 317,658 Less: current portion (35,268 ) (33,740 ) Total long term obligations, net $ 413,865 $ 283,918 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | As of September 30, 2016 , the flight crewmember employees of ABX and ATI were represented by the labor unions listed below: Airline Labor Agreement Unit Percentage of the Company’s Employees ABX International Brotherhood of Teamsters 9.3% ATI Air Line Pilots Association 6.2% |
Pension and Other Post-Retire29
Pension and Other Post-Retirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The Company's net periodic benefit costs for its defined benefit pension plans and post-retirement healthcare plans for both continuing and discontinued operations are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Pension Plans Post-Retirement Healthcare Plan Pension Plans Post-Retirement Healthcare Plan 2016 2015 2016 2015 2016 2015 2016 2015 Service cost $ — $ — $ 31 $ 44 $ — $ — 93 132 Interest cost 8,968 8,646 42 48 26,904 25,938 126 144 Expected return on plan assets (10,264 ) (11,020 ) — — (30,792 ) (33,060 ) — — Amortization of prior service cost — — (26 ) (136 ) — — (78 ) (408 ) Amortization of net (gain) loss 3,368 1,793 40 73 10,104 5,379 120 219 Net periodic benefit cost (gain) $ 2,072 $ (581 ) $ 87 $ 29 $ 6,216 $ (1,743 ) $ 261 $ 87 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The interest rate swaps are described in the table below (in thousands): September 30, 2016 December 31, 2015 Expiration Date Stated Interest Rate Notional Amount Market Value (Liability) Notional Amount Market Value (Liability) May 9, 2016 2.020 % — — 50,625 (247 ) June 30, 2017 1.183 % 45,000 (173 ) 50,625 (252 ) May 5, 2021 1.090 % 45,000 (265 ) — — |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) includes the following components for the three and nine month periods ending September 30, 2016 and 2015 (in thousands): Defined Benefit Pension Defined Benefit Post-Retirement Gains and Losses on Derivative Foreign Currency Translation Total Balance as of June 30, 2015 (78,907 ) (710 ) — (1,355 ) (80,972 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (84 ) (84 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 1,793 73 — — 1,866 Negative prior service cost (reclassified to salaries, wages and benefits) — (136 ) — — (136 ) Income Tax (Expense) or Benefit (651 ) 23 — 29 (599 ) Other comprehensive income (loss), net of tax 1,142 (40 ) — (55 ) 1,047 Balance as of September 30, 2015 (77,765 ) (750 ) — (1,410 ) (79,925 ) Balance as of December 31, 2014 (81,191 ) (630 ) 4 (1,059 ) (82,876 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (537 ) (537 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 5,379 219 — — 5,598 Negative prior service cost (reclassified to salaries, wages and benefits) — (408 ) — — (408 ) Hedging gain (reclassified to interest expense) — — (50 ) — (50 ) Income Tax (Expense) or Benefit (1,953 ) 69 46 186 (1,652 ) Other comprehensive income (loss), net of tax 3,426 (120 ) (4 ) (351 ) 2,951 Balance as of September 30, 2015 (77,765 ) (750 ) — (1,410 ) (79,925 ) Defined Benefit Pension Defined Benefit Post-Retirement Gains and Losses on Derivative Foreign Currency Translation Total Balance as of June 30, 2016 (93,010 ) (297 ) — (1,085 ) (94,392 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (397 ) (397 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 3,368 40 — — 3,408 Negative prior service cost (reclassified to salaries, wages and benefits) — (26 ) — — (26 ) Income Tax (Expense) or Benefit (1,222 ) (5 ) — 141 (1,086 ) Other comprehensive income (loss), net of tax 2,146 9 — (256 ) 1,899 Balance as of September 30, 2016 (90,864 ) (288 ) — (1,341 ) (92,493 ) Balance as of December 31, 2015 (97,302 ) (315 ) — (1,395 ) (99,012 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — 75 75 Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 10,104 120 — — 10,224 Negative prior service cost (reclassified to salaries, wages and benefits) — (78 ) — — (78 ) Income Tax (Expense) or Benefit (3,666 ) (15 ) — (21 ) (3,702 ) Other comprehensive income (loss), net of tax 6,438 27 — 54 6,519 Balance as of September 30, 2016 (90,864 ) (288 ) — (1,341 ) (92,493 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Equity Instruments Other Than Options, Activity | The table below summarizes award activity. Nine Months Ended September 30, 2016 September 30, 2015 Number of Awards Weighted average grant-date fair value Number of Awards Weighted average grant-date fair value Outstanding at beginning of period 1,157,659 $ 7.52 1,406,550 $ 6.21 Granted 294,060 15.43 390,200 9.61 Converted (160,500 ) 7.20 (263,791 ) 6.42 Expired — — (1,600 ) 10.11 Forfeited (9,200 ) 10.23 (13,800 ) 7.36 Outstanding at end of period 1,282,019 $ 9.36 1,517,559 $ 7.03 Vested 338,919 $ 6.12 329,059 $ 5.61 |
Schedule of Share-based Payment Award, Equity Instruments Other Than Options, Valuation Assumptions | The market condition awards were valued using a Monte Carlo simulation technique, a risk-free interest rate of 1.1% and a volatility of 36.9% based on volatility over three years using daily stock prices. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted earnings per common share follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Earnings from continuing operations $ 2,116 $ 6,347 $ 21,815 $ 25,812 Weighted-average shares outstanding - basic 59,379 64,239 62,084 64,411 Common equivalent shares: Effect of stock-based compensation awards 904 932 1,940 930 Weighted-average shares outstanding - diluted 60,283 65,171 64,024 65,341 Basic earnings per share from continuing operations $ 0.04 $ 0.10 $ 0.35 $ 0.40 Diluted earnings per share from continuing operations $ 0.04 $ 0.10 $ 0.34 $ 0.40 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The Company's segment information from continuing operations is presented below (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Total revenues: CAM $ 46,346 $ 42,574 $ 145,511 $ 131,060 ACMI Services 128,702 99,918 357,803 309,278 All other 65,328 38,398 177,592 106,183 Eliminate inter-segment revenues (47,115 ) (38,585 ) (133,711 ) (108,838 ) Total $ 193,261 $ 142,305 $ 547,195 $ 437,683 Customer revenues: CAM $ 27,920 $ 23,671 $ 86,068 $ 68,212 ACMI Services 128,702 98,820 357,803 308,180 All other 36,639 19,814 103,324 61,291 Total $ 193,261 $ 142,305 $ 547,195 $ 437,683 Depreciation and amortization expense: CAM $ 22,958 $ 21,305 $ 68,295 $ 64,571 ACMI Services 10,528 9,461 30,300 26,579 All other 453 (12 ) 1,010 (3 ) Total $ 33,939 $ 30,754 $ 99,605 $ 91,147 Segment earnings (loss): CAM $ 16,110 $ 13,482 $ 51,849 $ 42,361 ACMI Services (9,686 ) (4,914 ) (27,172 ) (6,359 ) All other 5,089 2,077 13,087 6,993 Net unallocated interest expense 83 (394 ) (287 ) (1,279 ) Net gain (loss) on financial instruments (8,473 ) 96 (3,443 ) 347 Pre-tax earnings from continuing operations $ 3,123 $ 10,347 $ 34,034 $ 42,063 |
Reconciliation of Assets from Segment to Consolidated | The Company's assets are presented below by segment (in thousands): September 30, December 31, 2016 2015 Assets: CAM $ 941,050 $ 804,776 ACMI Services 164,755 154,852 All other 109,527 82,093 Total $ 1,215,332 $ 1,041,721 |
Summary of Financial Statemen35
Summary of Financial Statement Preparation and Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | ||||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 700 | $ 700 | $ 400 | |
payroll taxes paid for employee stock awards | 1,231 | $ (614) | ||
Unamortized Debt Issuance Expense | $ 600 | $ 500 |
Significant Customers (Details)
Significant Customers (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | May 12, 2016 | Mar. 08, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||||||||
Accounts receivable | $ 66,285 | $ 66,285 | $ 57,986 | ||||||
fair value warrants issued, per share | $ 6.71 | $ 6.71 | $ 5.81 | $ 4.89 | |||||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 7,686 | $ 9,833 | |||||||
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Warrants Issued | 280 | ||||||||
gain (loss) on stock warrants, pretax | $ (8,849) | $ (3,504) | |||||||
DHL [Member] | Revenues from Leases and Contracted Services [Member] | Customer Concentration Risk [Member] | |||||||||
Concentration Risk [Line Items] | |||||||||
Percentage of consolidated revenues | 34.00% | 47.00% | 35.00% | 49.00% | |||||
DHL [Member] | Accounts Receivable [Member] | |||||||||
Concentration Risk [Line Items] | |||||||||
Accounts receivable | $ 5,000 | $ 5,000 | 9,800 | ||||||
Amazon [Member] [Member] | Revenues from Services Performed [Member] | Customer Concentration Risk [Member] | |||||||||
Concentration Risk [Line Items] | |||||||||
Percentage of consolidated revenues | 31.00% | 24.00% | |||||||
Amazon [Member] [Member] | Accounts Receivable [Member] | |||||||||
Concentration Risk [Line Items] | |||||||||
Accounts receivable | $ 18,200 | $ 18,200 | 10,500 | ||||||
US Military [Member] | Revenues from Services Performed [Member] | Customer Concentration Risk [Member] | |||||||||
Concentration Risk [Line Items] | |||||||||
Percentage of consolidated revenues | 12.00% | 17.00% | 13.00% | 17.00% | |||||
US Military [Member] | Accounts Receivable [Member] | |||||||||
Concentration Risk [Line Items] | |||||||||
Accounts receivable | $ 8,300 | $ 8,300 | 9,700 | ||||||
CAM [Member] | |||||||||
Concentration Risk [Line Items] | |||||||||
Incentive to Lessee | $ 48,978 | $ 37,586 | $ 48,978 | $ 50,410 | $ 13,758 | $ 37,586 | $ 0 |
Goodwill and Other Intangible37
Goodwill and Other Intangibles (Schedule of Goodwill) (Details) - CAM [Member] $ in Thousands | Sep. 30, 2016USD ($) |
Goodwill [Roll Forward] | |
Carrying value, beginning balance | $ 34,395 |
Carrying value, ending balance | $ 34,395 |
Goodwill and Other Intangible38
Goodwill and Other Intangibles (Schedule Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | May 12, 2016 | Mar. 31, 2016 | Mar. 08, 2016 | Dec. 31, 2015 | |
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||||
Amortization expense | $ (211) | ||||||
Carrying value at end of period | $ 4,123 | 4,123 | |||||
ACMI Services [Member] | |||||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||||
Carrying value at beginning of period | 4,334 | ||||||
ACMI Services [Member] | Customer Relationships [Member] | |||||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||||
Carrying value at beginning of period | 1,334 | ||||||
Amortization expense | 211 | ||||||
Carrying value at end of period | 1,123 | 1,123 | |||||
ACMI Services [Member] | Airline Certificates [Member] | |||||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||||
Carrying value at beginning of period | 3,000 | ||||||
Amortization expense | 0 | ||||||
Carrying value at end of period | 3,000 | 3,000 | |||||
CAM [Member] | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Incentive to Lessee | 48,978 | $ 50,410 | $ 48,978 | $ 13,758 | $ 37,586 | $ 37,586 | $ 0 |
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||||
Amortization expense | $ 1,432 | $ 934 |
Goodwill and Other Intangible39
Goodwill and Other Intangibles Investment in West Atlantic (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 10.3 | $ 13.1 |
Goodwill and Other Intangible40
Goodwill and Other Intangibles Schedule of Lease Incentive (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | May 12, 2016 | Mar. 31, 2016 | Mar. 08, 2016 | Dec. 31, 2015 | |
Schedule of Lease Incentive [Line Items] | |||||||
Amortization of Intangible Assets | $ 211 | ||||||
CAM [Member] | |||||||
Schedule of Lease Incentive [Line Items] | |||||||
Incentive to Lessee | $ 48,978 | $ 50,410 | $ 48,978 | $ 13,758 | $ 37,586 | $ 37,586 | $ 0 |
Amortization of Intangible Assets | $ (1,432) | $ (934) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents - money market | $ 0 | $ 0 |
Total Assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate swap | 0 | 0 |
Fair Value of Warrant Liability | 0 | |
Total Liabilities | 0 | 0 |
Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents - money market | 21,556 | 8,711 |
Total Assets | 21,556 | 8,711 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate swap | (438) | (499) |
Fair Value of Warrant Liability | (65,977) | |
Total Liabilities | (66,415) | (499) |
Difference between fair value and carrying value, debt | 2,100 | 1,300 |
Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents - money market | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate swap | 0 | 0 |
Fair Value of Warrant Liability | 0 | |
Total Liabilities | 0 | 0 |
Total [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents - money market | 21,556 | 8,711 |
Total Assets | 21,556 | 8,711 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate swap | (438) | (499) |
Fair Value of Warrant Liability | 65,977 | |
Total Liabilities | (66,415) | (499) |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Carrying value, debt | $ 449,100 | $ 317,700 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 1,659,695 | $ 1,486,736 |
Accumulated depreciation | (698,697) | (611,335) |
Property and equipment, net | 960,998 | 875,401 |
Flight Equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 1,473,826 | 1,372,099 |
Ground equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 42,042 | 36,593 |
facilities, leasehold improvements and office equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 26,459 | 25,327 |
Construction in Progress [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 117,368 | $ 52,717 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
CAM [Member] | Flight Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leased aircraft, carrying value | $ 446.8 | $ 369.2 |
Debt Obligations (Schedule of L
Debt Obligations (Schedule of Long Term Obligations) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | May 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Total long term obligations | $ 449,133 | $ 317,658 | |
Less: current portion | (35,268) | (33,740) | |
Total long term obligations, net | $ 413,865 | 283,918 | |
Unsubordinated term loan and Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Collateral, Coverage Percentage | 150.00% | ||
Unsubordinated term loan [Member] | |||
Debt Instrument [Line Items] | |||
Total long term obligations | $ 89,352 | 100,708 | |
Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Accordion Feature Amount | $ 100,000 | ||
Total long term obligations | 335,000 | 180,000 | |
Aircraft loans [Member] | |||
Debt Instrument [Line Items] | |||
Total long term obligations | $ 24,781 | $ 36,950 |
Debt Obligations (Schedule of45
Debt Obligations (Schedule of Long Term Debt Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Total long term obligations | $ 449,133 | $ 317,658 |
Debt Obligations (Narrative) (D
Debt Obligations (Narrative) (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016USD ($)aircrafts | May 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Long term obligations | $ 449,133 | $ 317,658 | |
Unamortized Debt Issuance Expense | $ 600 | 500 | |
Unsubordinated term loan and Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Collateral coverage percentage | 150.00% | ||
Unsubordinated term loan [Member] | |||
Debt Instrument [Line Items] | |||
Long term obligations | $ 89,352 | 100,708 | |
Additional Indebtedness Long-Term Debt | $ 150,000 | ||
Variable interest rate | 2.28% | ||
Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Long term obligations | $ 335,000 | 180,000 | |
Accordion feature amount | 100,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 425,000 | ||
Variable interest rate | 2.28% | ||
Credit facility, revolving credit loan, remaining borrowing capacity | $ 81,500 | ||
Letters of credit outstanding | 8,500 | ||
Aircraft loans [Member] | |||
Debt Instrument [Line Items] | |||
Long term obligations | $ 24,781 | $ 36,950 | |
Collateralized property (in aircrafts) | aircrafts | 5 | ||
Balloon payment percentage | 20.00% | ||
Variable interest rate, minimum | 6.74% | ||
Variable interest rate, maximum | 7.06% | ||
Maximum [Member] | Unsubordinated term loan and Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Collateral coverage percentage | 175.00% | ||
Maximum amount of common stock authorized for repurchase | $ 75,000 | ||
Minimum [Member] | Unsubordinated term loan and Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Collateral coverage percentage | 50.00% |
Commitments and Contingencies47
Commitments and Contingencies (Commitments) (Details) | Sep. 30, 2016USD ($) |
Long-term Purchase Commitment [Line Items] | |
aircraft under modification | 7 |
costs to complete aircraft modification | $ 291,800,000 |
Commitments and Contingencies48
Commitments and Contingencies (Labor Unions) (Details) - Workforce Subject to Collective Bargaining Arrangements [Member] - Labor Unions [Member] | 9 Months Ended |
Sep. 30, 2016 | |
ABX [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 9.30% |
ATI [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 6.20% |
Pension and Other Post-Retire49
Pension and Other Post-Retirement Benefit Plans (Funded Status) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Plans [Member] | ||||
Change in benefit obligation [Roll Forward] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 8,968 | 8,646 | 26,904 | 25,938 |
Change in plan assets [Roll Forward] | ||||
Employer contributions | 5,320 | 6,348 | ||
Post-Retirement Healthcare Plans [Member] | ||||
Change in benefit obligation [Roll Forward] | ||||
Service cost | 31 | 44 | 93 | 132 |
Interest cost | $ 42 | $ 48 | $ 126 | $ 144 |
Pension and Other Post-Retire50
Pension and Other Post-Retirement Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 8,968 | 8,646 | 26,904 | 25,938 |
Expected return on plan assets | 10,264 | 11,020 | (30,792) | (33,060) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of net (gain) loss | (3,368) | (1,793) | 10,104 | 5,379 |
Net periodic benefit cost (gain) | 2,072 | (581) | 6,216 | (1,743) |
Post-Retirement Healthcare Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 31 | 44 | 93 | 132 |
Interest cost | 42 | 48 | 126 | 144 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (26) | (136) | (78) | (408) |
Amortization of net (gain) loss | 40 | 73 | 120 | (219) |
Net periodic benefit cost (gain) | $ 87 | $ 29 | $ 261 | $ 87 |
Pension and Other Post-Retire51
Pension and Other Post-Retirement Benefit Plans (Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 5,320 | $ 6,348 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Line Items] | |||
Effective Income Tax Rate Reconciliation, Percent | (38.50%) | ||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 0.7 | $ 0.7 | $ 0.4 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Deferred taxes: | ||||
Total income tax expense from continuing operations | $ 1,007 | $ 4,000 | $ 12,219 | $ 16,251 |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) | 9 Months Ended |
Sep. 30, 2016Rate | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, Percent | (38.50%) |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Feb. 29, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||||
Pre-tax (charge) on derivative instruments | $ (100) | $ (300) | ||
Net loss on financial instruments | $ 3,443 | $ (347) | ||
May 9, 2016 [Member] | Swap [Member] | ||||
Derivative [Line Items] | ||||
Stated Interest Rate | 2.02% | |||
Market Value (Liability) | $ 0 | $ (247) | ||
Derivative Liability, Notional Amount | $ 0 | 50,625 | ||
June 30, 2017 [Member] [Member] | Swap [Member] | ||||
Derivative [Line Items] | ||||
Stated Interest Rate | 1.1825% | |||
Market Value (Liability) | $ (173) | (252) | ||
Derivative Liability, Notional Amount | $ 45,000 | 50,625 | ||
May 5, 2021 [Member] [Member] | Swap [Member] | ||||
Derivative [Line Items] | ||||
Stated Interest Rate | 1.09% | |||
Market Value (Liability) | $ (265) | 0 | ||
Derivative Liability, Notional Amount | $ 45,000 | $ 48,750 | $ 0 |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (1,341) | $ (1,410) | $ (1,341) | $ (1,410) | $ (1,085) | $ (1,395) | $ (1,355) | $ (1,059) |
Accumulated other comprehensive income (loss), beginning balance | (94,392) | (80,972) | (99,012) | (82,876) | ||||
Other comprehensive income (loss) before reclassifications: | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | (397) | (84) | 75 | (537) | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 141 | 29 | (21) | 186 | ||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | 3,408 | 1,866 | 10,224 | 5,598 | ||||
Negative prior service cost (reclassified to salaries, wages and benefits) | (26) | (136) | (78) | (408) | ||||
Hedging gain (reclassified to interest expense) | (50) | |||||||
Income Tax (Expense) or Benefit | 0 | 46 | ||||||
Income Tax (Expense) or Benefit | (1,086) | (599) | (3,702) | (1,652) | ||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (4) | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (256) | (55) | 54 | (351) | ||||
Accumulated other comprehensive income (loss), ending balance | (92,493) | (79,925) | (92,493) | (79,925) | ||||
Total comprehensive income (loss) | 4,062 | 7,608 | 28,475 | 29,405 | ||||
Pension Plans [Member] | ||||||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated other comprehensive income (loss), beginning balance | (93,010) | (78,907) | (97,302) | (81,191) | ||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | 3,368 | 1,793 | 10,104 | 5,379 | ||||
Income Tax (Expense) or Benefit | (1,222) | (651) | (3,666) | (1,953) | ||||
Other comprehensive income (loss), net of tax | 2,146 | 1,142 | 6,438 | 3,426 | ||||
Accumulated other comprehensive income (loss), ending balance | (90,864) | (77,765) | (90,864) | (77,765) | ||||
Post-Retirement Plans [Member] | ||||||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated other comprehensive income (loss), beginning balance | (297) | (710) | (315) | (630) | ||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | 40 | 73 | 120 | 219 | ||||
Negative prior service cost (reclassified to salaries, wages and benefits) | (26) | (136) | (78) | (408) | ||||
Income Tax (Expense) or Benefit | (5) | 23 | (15) | 69 | ||||
Other comprehensive income (loss), net of tax | 9 | (40) | 27 | (120) | ||||
Accumulated other comprehensive income (loss), ending balance | (288) | (750) | (288) | (750) | ||||
Derivative [Member] | ||||||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated other comprehensive income (loss), beginning balance | 0 | 0 | 0 | 4 | ||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||
Accumulated other comprehensive income (loss), ending balance | 0 | 0 | 0 | 0 | ||||
AOCI Attributable to Parent [Member] | ||||||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||
Total comprehensive income (loss) | $ 1,899 | $ 1,047 | $ 6,519 | $ 2,951 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 1,157,659 | 1,406,550 |
Granted (in shares) | 294,060 | 390,200 |
Converted (in shares) | (160,500) | (263,791) |
Expired (in shares) | 0 | (1,600) |
Forfeited (in shares) | (9,200) | (13,800) |
Outstanding at end of period (in shares) | 1,282,019 | 1,517,559 |
Vested (in shares) | 338,919 | 329,059 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Outstanding at beginning of period, Weighted average grant-date fair value (in dollars per share) | $ 7.52 | $ 6.21 |
Granted, Weighted average grant-date fair value (in dollars per share) | 15.43 | 9.61 |
Converted, Weighted average grant-date fair value (in dollars per share) | 7.20 | 6.42 |
Expired, Weighted average grant-date fair value (in dollars per share) | 0 | 10.11 |
Forfeited, Weighted average grant-date fair value (in dollars per share) | 10.23 | 7.36 |
Outstanding at end of period, Weighted average grant-date fair value (in dollars per share) | 9.36 | 7.03 |
Vested (in dollars per share) | $ 6.12 | $ 5.61 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Share-based compensation expense | $ 2.2 | $ 2 |
Unrecognized share-based compensation expense | $ 3.9 | |
Unrecognized share-based compensation, weighted average recognition period | 1 year 3 months | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Requisite service period | 3 years | |
Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Requisite service period | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.10% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 36.90% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Historical volatility period | 3 years | |
Market Condition Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Granted, Weighted average grant-date fair value (in dollars per share) | $ 19.65 | |
Performance Condition Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Granted, Weighted average grant-date fair value (in dollars per share) | $ 14.39 | |
Time-Based Awards [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Number of additional outstanding shares issued (in shares) | 1,544,219 | |
Director [Member] | Time-Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Vested (in shares) | 338,919 | |
Director [Member] | Time-Based Awards [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Requisite service period | 6 months | |
Director [Member] | Time-Based Awards [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Requisite service period | 12 months |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock Repurchased During Period, Shares | 3,825,554 | |||
Accelerated Share Repurchases, Cash or Stock Settlement | 50,000 | |||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 13.07 | |||
Earnings Per Share Reconciliation [Abstract] | ||||
Earnings from continuing operations | $ 2,116 | $ 6,347 | $ 21,815 | $ 25,812 |
Weighted-average shares outstanding for basic earnings per share (in shares) | 59,379,000 | 64,239,000 | 62,084,000 | 64,411,000 |
Common equivalent shares: | ||||
Effect of stock-based compensation awards (in shares) | 904,000 | 932,000 | 1,940,000 | 930,000 |
Weighted-average shares outstanding assuming dilution (in shares) | 60,283,000 | 65,171,000 | 64,024,000 | 65,341,000 |
Basic earnings per share from continuing operations (in dollars per share) | $ 0.04 | $ 0.10 | $ 0.35 | $ 0.40 |
Diluted earnings per share from continuing operations (in dollars per share) | $ 0.04 | $ 0.10 | $ 0.34 | $ 0.40 |
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 3,342,000 | 1,114,000 |
Segment Information (Segment Re
Segment Information (Segment Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
REVENUES | $ 193,261 | $ 142,305 | $ 547,195 | $ 437,683 | |
Customer revenues | 193,261 | 142,305 | 547,195 | 437,683 | |
Depreciation and amortization expense | 33,939 | 30,754 | 99,605 | 91,147 | |
Net unallocated interest expense | (2,897) | (2,684) | (8,229) | (8,588) | |
Net loss on financial instruments | (100) | (300) | |||
Net gain (loss) on financial instruments | (8,473) | 96 | (3,443) | 347 | |
Pre-tax earnings from continuing operations | 3,123 | 10,347 | 34,034 | 42,063 | |
Assets | 1,215,332 | 1,215,332 | $ 1,041,721 | ||
Customer Revenues [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 193,261 | 142,305 | 547,195 | 437,683 | |
Customer revenues | 193,261 | 142,305 | 547,195 | 437,683 | |
CAM [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 46,346 | 42,574 | 145,511 | 131,060 | |
Customer revenues | 46,346 | 42,574 | 145,511 | 131,060 | |
Depreciation and amortization expense | 22,958 | 21,305 | 68,295 | 64,571 | |
Segment earnings (loss) | 16,110 | 13,482 | 51,849 | 42,361 | |
Net unallocated interest expense | (2,900) | (2,300) | (7,800) | (7,200) | |
Assets | 941,050 | 941,050 | 804,776 | ||
CAM [Member] | Customer Revenues [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 27,920 | 23,671 | 86,068 | 68,212 | |
Customer revenues | 27,920 | 23,671 | 86,068 | 68,212 | |
ACMI Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 128,702 | 99,918 | 357,803 | 309,278 | |
Customer revenues | 128,702 | 99,918 | 357,803 | 309,278 | |
Depreciation and amortization expense | 10,528 | 9,461 | 30,300 | 26,579 | |
Segment earnings (loss) | (9,686) | (4,914) | (27,172) | (6,359) | |
Assets | 164,755 | 164,755 | 154,852 | ||
ACMI Services [Member] | Customer Revenues [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 128,702 | 98,820 | 357,803 | 308,180 | |
Customer revenues | 128,702 | 98,820 | 357,803 | 308,180 | |
All other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 65,328 | 38,398 | 177,592 | 106,183 | |
Customer revenues | 65,328 | 38,398 | 177,592 | 106,183 | |
Depreciation and amortization expense | 453 | (12) | 1,010 | (3) | |
Segment earnings (loss) | 5,089 | 2,077 | 13,087 | 6,993 | |
Assets | 109,527 | 109,527 | $ 82,093 | ||
All other [Member] | Customer Revenues [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 36,639 | 19,814 | 103,324 | 61,291 | |
Customer revenues | 36,639 | 19,814 | 103,324 | 61,291 | |
Significant Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net unallocated interest expense | 83 | (394) | (287) | 1,279 | |
Eliminate inter-segment revenues [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | (47,115) | (38,585) | (133,711) | (108,838) | |
Customer revenues | $ (47,115) | $ (38,585) | $ (133,711) | $ (108,838) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)segments | Sep. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments (in segments) | segments | 2 | |||
Interest expense | $ 2,897 | $ 2,684 | $ 8,229 | $ 8,588 |
CAM [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense | $ 2,900 | $ 2,300 | $ 7,800 | $ 7,200 |
Segment Information (Entity-Wid
Segment Information (Entity-Wide Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Customer revenues | $ 193,261 | $ 142,305 | $ 547,195 | $ 437,683 |
Customer Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Customer revenues | 193,261 | 142,305 | 547,195 | 437,683 |
CAM [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Customer revenues | 46,346 | 42,574 | 145,511 | 131,060 |
CAM [Member] | Customer Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Customer revenues | 27,920 | 23,671 | 86,068 | 68,212 |
All other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Customer revenues | 65,328 | 38,398 | 177,592 | 106,183 |
All other [Member] | Customer Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Customer revenues | $ 36,639 | $ 19,814 | $ 103,324 | $ 61,291 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUES | $ 193,261 | $ 142,305 | $ 547,195 | $ 437,683 |
Net earnings from continuing operations | 2,116 | 6,347 | 21,815 | 25,812 |
EARNINGS FROM DISCONTINUED OPERATIONS, NET OF TAXES | $ 47 | $ 214 | $ 141 | $ 642 |
Weighted average shares: | ||||
Basic (in shares) | 59,379 | 64,239 | 62,084 | 64,411 |
Diluted (in shares) | 60,283 | 65,171 | 64,024 | 65,341 |
Earnings (loss) per share from continuing operations | ||||
Basic (in dollars per share) | $ 0.04 | $ 0.10 | $ 0.35 | $ 0.40 |
Diluted (in dollars per share) | $ 0.04 | $ 0.10 | $ 0.34 | $ 0.40 |
ACMI Services [Member] | ||||
REVENUES | $ 128,702 | $ 99,918 | $ 357,803 | $ 309,278 |