Atlas Air Reports Record Second Quarter Results On 38% Revenue Increase.Business Editors PURCHASE, N.Y.--(BUSINESS WIRE)--July 25, 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 43% to a record $19.0 million or $0.53 per fully diluted share for the quarter ended June 30, 2000, versus $13.3 million or $0.38 per fully diluted share for the year-earlier period, on 4% greater shares. Revenue for the quarter equaled $191.8 million, a 38% increase over second 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 second quarter of 2000 was $58.4 million compared to operating income of $41.1 million for the second quarter 1999, an increase of 42%. Net income for the first six months of 2000 increased 32% to $31.0 million versus $23.5 million before one-time and extraordinary charges for the year-earlier period. Revenue for the first half of 2000 equaled $358.2 million, a 30% increase over first half 1999 revenue. Operating income for the first six months of 2000 was $101.6 million, compared to $77.8 million for the same period in 1999, a 31% improvement. "Atlas Air continued its record-breaking financial performance," said Richard Shuyler, Executive Vice President of Atlas Air, Inc., "with our tenth consecutive record for a quarterly period, and the second-best quarter in our history. We excelled in every category. Both our revenues and block hour production grew by over 38%, on an aircraft capacity increase of only 15%. That reflected both higher revenues per hour related to our contract operations and an impressive 21% increase in our rate of aircraft utilization Average numbers of hours during each 24-hour period that an aircraft is actually in flight. , to over 1,000 hours per aircraft. At the same time, we reduced our unit costs by 1.5%, as our ongoing cost-efficiency programs continued to yield favorable results, and as we remain insulated in·su·late tr.v. in·su·lat·ed, in·su·lat·ing, in·su·lates 1. To cause to be in a detached or isolated position. See Synonyms at isolate. 2. from high fuel costs. All of this resulted in an operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of over 30% for the quarter, and a pre-tax margin of 16%, versus 15.3% last year. "Additionally, we were pleased to see Atlas' consistently strong financial record further recognized by the financial marketplace during the quarter. Not only did we very successfully issue 3.5 million shares of common stock in the second quarter, but we were selected for inclusion in the S&P MidCap 400 Index. We believe these accomplishments are real testaments to the strength of the business model we have created at Atlas." "The market for our services remains as vibrant and as rich with potential as any we have seen," said Michael Chowdry Michael A. Chowdry (1955-2001) was a Pakistani American businessman who became the founder of American-based cargo carrier Atlas Air in 1992. He made the Forbes 400 list and with a net worth of $920 million, ranked among the richest American businessmen of Pakistani heritage before , Chairman, Chief Executive Officer and President of Atlas Air, Inc. "The growth of air cargo air cargo: see aviation. traffic in the international arena, where Atlas operates, has been phenomenal. During the quarter, growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. throughout our customer system ranged from 17% in Korea to over 30% in Taiwan, with many of our European customers reporting their strongest-ever quarterly traffic, including Alitalia, our newest 747-400 customer. The extent of the tremendous rebound being witnessed in Asia was perhaps best reflected by Hong Kong's new ranking as the second largest cargo center in the world, on a 24% quarterly traffic increase. At the same time, Atlas significantly expanded the scope of both our Asian and our China presence by adding two prestigious carriers from the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China to our customer roster - Dragonair and Air China. With three of China's top four carriers now as Atlas customers, we expect to be a major participant in the fast-growing China air cargo market, which increased by 20% in the first four months of this year. Indeed, we see even further opportunities to add to our operations in this increasingly-important part of the world. "Going forward, we see more of the same for Atlas. We will add three additional 747's to our fleet in the fourth quarter, with final customer announcements forthcoming. We anticipate continued growth in the international air freight air freight n → flete m por avión air freight n → fret aérien air freight air n → Luftfracht f business, with all signs pointing to yet another record cargo peak season. We will continue to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our strong and unique business model, which has once more produced record financial results for Atlas. And we will continue to produce and enhance the reliable, efficient product for our customers which has been our hallmark. Indeed, our efforts have once again been recognized by the prestigious publication, Aviation Week & Technology, which has just ranked Atlas Air as the fifth best-managed airline in the world. I'm proud of what we have accomplished at Atlas and look forward to further successes over the coming years." Significant events during the second quarter of 2000: -- Atlas Air took delivery of two new Boeing 747-400 freighter aircraft. -- Atlas Air completed a private refinancing of two secured aircraft term loan facilities and its existing Revolving Credit Agreement. -- The Miami Airport Authority announced that Atlas Air was Miami International Airport's largest cargo operator during 1999. -- Atlas Air entered into an agreement to purchase two used General Electric-powered B747-300 combi aircraft for delivery in 2000. Atlas Air also acquired, under a long-term lease, an additional used General Electric-powered B747-300 combi aircraft for delivery in 2000. The three aircraft will be converted to all-freighter configurations and will enter revenue service in late 2000. -- Atlas Air placed a new Boeing 747-400F aircraft with Alitalia Airlines. -- Atlas Air entered into a contract with 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. Dragon Airlines Ltd., (Dragonair) for Boeing 747 freighter service. -- In June, Atlas Air completed an equity offering of 3.5 million shares of common stock. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the offering are being used to pay down existing debt. -- Subsequently, each of S&P and Moody's raised their corporate and debt ratings on Atlas. -- Air China signed its first contract with Atlas Air for a Boeing 747 freighter aircraft. -- Standard & Poor's announced that Atlas Air would be added to the S&P MidCap 400 Index, subject to the conclusion of a merger related to the company that Atlas will replace on the 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 ACMI Aircraft, Crew, Maintenance and Insurance (wet lease) ACMI Art & Creative Materials Institute ACMI Air Combat Maneuvering Instrumentation ACMI American College of Medical Informatics ACMI Australian Center for the Moving Image contracts. These contracts include the provision by Atlas of air cargo capacity for some of the world's leading international carriers. Atlas 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , 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 operating costs npl → gastos mpl operacionales 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 March 31, 2000.
Atlas Air, Inc.
SUMMARY FINANCIAL RESULTS
($ Millions, except share data)
Quarter Ended 6/30
2000 1999
---- ----
Operating Revenues $191.8 $138.6
Operating Income 58.4 41.1
Pre-Tax Income 30.7 21.2
Net Income 19.0 13.3
Diluted Earnings Per Share $0.53 $0.38
Diluted Weighted Average Common Shares
Outstanding (000's) 36,021 34,570
Total Block Hours 33,140 23,861
Atlas Air, Inc.
SUMMARY FINANCIAL RESULTS
($ Millions, except share data)
Six Months Ended 6/30
2000 1999
---- ----
Operating Revenues $358.2 $276.4
Operating Income 101.6 77.8
Pre-Tax Income 50.1 37.6
Income before Extraordinary Item and
Cumulative Effect of a Change in
Accounting Principle 31.0 23.5
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 31.0 15.5
Diluted Earnings Per Share:
Before Extraordinary Item and
Cumulative Effect of a Change in
Accounting Principle $0.88 $0.68
Extraordinary Item --- (0.19)
Cumulative Effect of a Change
In Accounting Principle --- (0.04)
Net Income $0.88 $0.45
Diluted Weighted Average Common Shares
Outstanding (000's) 35,315 34,449
Total Block Hours 62,333 47,792
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