Atlas Air Worldwide Preannounces Expected Third-Quarter EPS, Updates
Full-Year EPS Outlook
PURCHASE, N.Y. -- October 31, 2013
Atlas Air Worldwide Holdings, Inc. (Nasdaq:AAWW) today said that it expects to
report fully diluted earnings per share of approximately $1.13 on an adjusted
basis and $0.94 on a reported basis when it releases results for the three
months ended September 30, 2013.
The company also anticipates that fully diluted earnings per share for the
year ending December 31, 2013, will total between $3.40 and $3.80 on an
adjusted basis and $3.75 and $4.15 on a reported basis.
Forecast third-quarter and full-year earnings per share reflect a much less
robust commercial airfreight peak season than previously anticipated. While
commercial airfreight volumes are strengthening, airfreight yields remain
under pressure. In addition, military cargo volumes have declined at a more
rapid rate. Together, a lower-than-expected commercial airfreight market and
lesser expected military cargo demand have reduced anticipated profitability
for the third and fourth quarters of 2013.
Partially offsetting these challenges are increasing contributions from
investments to diversify the company’s business mix, led by new 747-8
freighters in the company’s core ACMI business; the addition of 777 freighters
with predictable, long-term revenue and earnings streams in Dry Leasing; an
expanding 767 service platform; entry into military and commercial charter
passenger operations; and continuing growth in the company’s
non-asset-intensive CMI operations. Also contributing are ongoing continuous
improvement productivity and efficiency initiatives.
“The initiatives we have undertaken to strengthen our core ACMI operations,
diversify our business mix, and enhance our operating efficiency have enabled
us to continue to generate significant profitability despite soft commercial
charter market yields over the past three years and a material reduction in
U.S. military cargo demand that we have long prepared for,” said President and
Chief Executive Officer William J. Flynn.
Mr. Flynn added: “We remain focused on the long-term growth of our business,
and will continue to leverage our core competencies and industry leadership to
deliver advantages and value to our customers and stockholders.”
Atlas Air Worldwide intends to report full results for the third quarter on
November 7, 2013. The company will also provide details about its revised
outlook for 2013 on that date.
Reconciliation to Non-GAAP Measures
Third-Quarter 2013 Full-Year 2013
Expected Diluted EPS^1 Diluted EPS
GAAP Measure $ 0.94 $ 3.75 to $ 4.15
Loss on early 0.18 0.20
extinguishment of debt
ETI tax benefit - (0.55)
Gain on disposal of 0.01 -
Non-GAAP Measure $ 1.13 $ 3.40 to $ 3.80
^1 Approximate $/share.
About Atlas Air Worldwide:
Atlas Air Worldwide is the parent company of Atlas Air, Inc. (Atlas) and Titan
Aviation Leasing (Titan), and is the majority shareholder of Polar Air Cargo
Worldwide, Inc. (Polar). Atlas Air Worldwide also maintains a 49% interest in
Global Supply Systems Limited (GSS). Through Atlas and Polar, Atlas Air
Worldwide operates the world’s largest fleet of Boeing 747 freighter aircraft.
Atlas, Titan and Polar offer a range of outsourced aircraft and aviation
operating services that include ACMI service – in which customers receive an
aircraft, crew, maintenance and insurance on a long-term basis; CMI service,
for customers that provide their own aircraft; express network and scheduled
air cargo service; military cargo and passenger charters; commercial cargo and
passenger charters; and dry leasing of aircraft and engines.
Atlas Air Worldwide’s press releases, SEC filings and other information can be
accessed through the Company’s home page, www.atlasair.com.
This release contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995 that reflect Atlas Air
Worldwide’s current views with respect to certain current and future events
and financial performance. Such forward-looking statements are and will be, as
the case may be, subject to many risks, uncertainties and factors relating to
the operations and business environments of Atlas Air Worldwide and its
subsidiaries (collectively, the “companies”) that may cause the actual results
of the companies to be materially different from any future results, express
or implied, in such forward-looking statements.
Factors that could cause actual results to differ materially from these
forward-looking statements include, but are not limited to, the following:the
ability of the companies to operate pursuant to the terms of their financing
facilities; the ability of the companies to obtain and maintain normal terms
with vendors and service providers; the companies’ ability to maintain
contracts that are critical to their operations; the ability of the companies
to fund and execute their business plan; the ability of the companies to
attract, motivate and/or retain key executives and associates; the ability of
the companies to attract and retain customers; the continued availability of
our wide-body aircraft; demand for cargo services in the markets in which the
companies operate; economic conditions; the effects of any hostilities or act
of war (in the Middle East or elsewhere) or any terrorist attack; labor costs
and relations; financing costs; the cost and availability of war risk
insurance; our ability to maintain adequate internal controls over financial
reporting; aviation fuel costs; security-related costs; competitive pressures
on pricing (especially from lower-cost competitors); volatility in the
international currency markets; weather conditions; government legislation and
regulation; consumer perceptions of the companies’ products and services;
anticipated and future litigation; and other risks and uncertainties set forth
from time to time in Atlas Air Worldwide’s reports to the United States
Securities and Exchange Commission.
For additional information, we refer you to the risk factors set forth under
the heading “Risk Factors” in the most recent Annual Report on Form 10-K and
subsequent reports on Form 10-Q filed by Atlas Air Worldwide with the
Securities and Exchange Commission. Other factors and assumptions not
identified above may also affect the forward-looking statements, and these
other factors and assumptions may also cause actual results to differ
materially from those discussed.
Except as stated in this release, Atlas Air Worldwide is not providing
guidance or estimates regarding its anticipated business and financial
performance for 2013 or thereafter.
Atlas Air Worldwide assumes no obligation to update such statements contained
in this release to reflect actual results, changes in assumptions or changes
in other factors affecting such estimates other than as required by law.
Atlas Air Worldwide Holdings, Inc.
Dan Loh, 914-701-8200
Bonnie Rodney , 914-701-8580
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