Atlas Air Reports 64% Rise in Net Income and Record Third Quarter Results.Business Editors PURCHASE, N.Y.--(BUSINESS WIRE)--Oct. 24, 2000 Atlas Air Atlas Air is an American cargo airline based in Purchase, New York, United States. It operates scheduled freight flights on an ACMI contract basis for some of the world's leading airlines, flying to 101 cities in 46 countries. , Inc. (NYSE NYSE See: New York Stock Exchange : CGO CGO Cargo CGO Code Generation and Optimization CGO Cogeco Inc (stock symbol) CGO Zhengzhou, China (Airport Code) CGO Chief Globalization Officer CGO Company Grade Officer ) today reported that its net income rose by 64% to a record $23.1 million or $0.60 per fully diluted share for the quarter ended September 30, 2000, versus $14.1 million or $0.41 per fully diluted share for the year-earlier period, on 12% greater shares. Revenue for the quarter equaled $208.6 million, a 29% increase over third quarter 1999 revenue. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the third quarter of 2000 was $62.0 million, representing a 30% margin, compared to operating income of $48.2 million for the third quarter of 1999, an increase of 29%. The third quarter operating results were the highest in the airline's history. Pre-tax income rose to $37.2 million from $22.5 million, an increase of 65%, the second highest level in the Company's history. Net income for the first nine months of 2000 increased 44% to $54.1 million versus $37.6 million before one-time and extraordinary charges for the year-earlier period. Revenue for the first nine months of 2000 equaled $566.8 million, a 29% increase over comparable 1999 revenue. Operating income for the first nine months of 2000 was $163.5 million, compared to $126.0 million for the same period in 1999, a 30% improvement. Pre-tax earnings increased from $60.2 million to $87.3 million, or 45%. "The third quarter was another exceptional period for us," said Richard H. Shuyler, Executive Vice President of Atlas Air, Inc. "We recorded the highest operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. in our history, and net income for the period was exceeded only by last year's fourth quarter results. Pre-tax earnings rose by 65% year-over-year and net income increased 64%. Notably, our pre-tax margin for the quarter rose to 18% from the 14% margin achieved last year, and our EBITDAR Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring Costs - EBITDAR An indicator of a company's financial performance calculated as: = Revenue - Expenses (excluding tax, interest, depreciation, amortization, and restructuring costs) margin also increased, from 50% to 51%. These results clearly reflect the continuing strength of the international air cargo air cargo: see aviation. market. Total block hours In aviation, block hours is the time between an aircraft leaving from the departure gate and ariving at the destination gate. for the quarter increased by 27%, despite only a 10% increase in fleet size. Put another way, average aircraft utilization Average numbers of hours during each 24-hour period that an aircraft is actually in flight. rose by 15%, as our customers continued to fly at higher and higher levels. At the same time, our revenue per block hour rose by 2%, helping boost our total revenues by 29% for the quarter. With our insulation from fuel costs, total unit costs actually declined by 3%, as our cost efficiency and debt reduction programs continue to bear fruit. "Looking ahead to the remainder of the year, all signs point to another very strong, if not record-breaking, peak cargo season," continued Shuyler. "The fourth quarter should further build upon the strong double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" traffic growth seen in the first half of 2000 in most of the regions of the world served by Atlas Air. With air shipment backlogs already being experienced in countries such as Korea, and Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. predicting a record cargo year, the outlook for Asian cargo, in particular, remains very positive. This should enable Atlas Air to end the year on another record-breaking note." "This year has been a most gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. one for Atlas Air," said Michael A. Chowdry, Chairman, Chief Executive Officer and President of Atlas Air, Inc. "We have successfully added both new aircraft and new customers to our operations, and have done so while increasing our profitability, as well as our margins. In particular, I'm pleased at the tremendous presence we have established this year in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China. With the recent addition of our newest customer, China Eastern, we now have the top four airlines serving that country as Atlas Air customers. Chinese exports were up by 38% during the first half of the year, reinforcing our view of the huge air cargo potential represented by China. We expect this market to become increasingly important to world trade in general, and to Atlas Air in particular. "With this expansion into China, and the ongoing strong growth forecast for international air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f , we are continuing to increase the scope of our operations. Three 747's are being added to our fleet this quarter, with customers already in place. This will bring our fleet size by year-end to 37 747's, by far the world's largest such fleet of cargo aircraft A cargo aircraft is an airplane designed and used for the carriage of goods, rather than passengers. This role demands a number of features that makes a cargo aircraft instantly identifiable; a "fat" looking fuselage, a high-wing to allow the cargo area to sit near the ground, a . In addition, I'm pleased to announce that Atlas Air has exercised options for the delivery of four new 747-400's from Boeing for delivery in 2002. These aircraft will come with the same attractive economics as the 12 747-400's currently in our fleet. We look forward to the delivery of these aircraft and their profitable placement into service. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , we are negotiating for the addition of several used 747-200's to the fleet across the course of next year, with a resulting growth rate that we expect will equal or exceed this year's. All in all, we remain highly positive about the prospects for the remainder of this year, as well as for next year, and look forward to continuing successes for Atlas Air." Significant events during the third quarter of 2000: - Atlas Air entered into a contract with China Eastern Airlines, Ltd., the second largest airline in the People's Republic of China, for ACMI cargo services. - The Miami Airport Authority announced that Atlas Air was Miami International Airport's largest cargo operator during the first half of 2000, with volume up 47% compared to first half 1999. - Atlas Air completed the retirement of approximately $100 million of long-term indebtedness with the proceeds of a 3.5 million-share public equity offering. - Atlas Air's common stock was added to the S&P MidCap400 Index. Atlas Air is a United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. certificated air carrier that operates a fleet of 747 freighters under ACMI contracts. These contracts include the provision by Atlas Air of air cargo capacity for some of the world's leading international carriers. Atlas Air operates scheduled flights on behalf of its customer airlines to 101 cities in 46 countries. To the extent that any of the statements contained herein relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's expectations, assumptions and other Company matters are forward-looking, they are made in reliance upon the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are based on current expectations that involve a number of uncertainties and risks that could cause actual results to differ materially from those projected in the forward-looking statements, including, but not limited to, risks associated with: worldwide business and economic conditions; product demand and the rate of growth in the air cargo industry; the impact of competitors and competitive aircraft and aircraft financing availability; the ability to attract and retain new and existing customers; normalized aircraft operating costs and reliability; management of growth; the continued productivity of its workforce; dependence on key personnel; and regulatory matters. For additional information regarding these and other risk factors, reference is made to the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1999, and the Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the period ended June 30, 2000.
Atlas Air, Inc.
SUMMARY FINANCIAL RESULTS
($ Millions, except share data)
Quarter Ended 9/30
2000 1999
---- ----
Operating Revenues $208.6 $161.9
Operating Income 62.0 48.2
Pre-Tax Income 37.2 22.5
Net Income 23.1 14.1
Diluted Earnings Per Share $0.60 $0.41
Diluted Weighted Average Common Shares
Outstanding (000's) 38,618 34,613
Total Block Hours 35,007 27,650
Atlas Air, Inc.
SUMMARY FINANCIAL RESULTS
($ Millions, except share data)
Nine Months Ended 9/30
2000 1999
---- ----
Operating Revenues $566.8 $438.3
Operating Income 163.5 126.0
Pre-Tax Income 87.3 60.2
Income before Extraordinary Item and
Cumulative Effect of a Change in
Accounting Principle 54.1 37.6
Extraordinary Item:
Loss from Extinguishment of Debt,
Less Applicable Tax Benefit of $3.9 --- (6.6)
Cumulative Effect of a Change in
Accounting Principle:
Write Off of Start-Up Costs, less
Applicable Tax Benefit of $0.8 --- (1.4)
Net Income 54.1 29.6
Diluted Earnings Per Share:
Before Extraordinary Item and
Cumulative Effect of a Change in
Accounting Principle $1.49 $1.09
Extraordinary Item --- (0.19)
Cumulative Effect of a Change
In Accounting Principle --- (0.04)
Net Income $1.49 $0.86
Diluted Weighted Average Common Shares
Outstanding (000's) 36,416 34,503
Total Block Hours 97,340 75,442
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