Atlas Air Worldwide Holdings, Inc. Comments on Preliminary Unaudited Business and Financial Measures for 2004; Expects Improved Revenues, Operating Income Versus Plan and 2003 Results.PURCHASE, N.Y. -- Company Also Highlights Strategic Initiatives 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. Worldwide Holdings, Inc. (AAWW AAWW Asian American Writers' Workshop AAWW Alpaca Association of Western Washington AAWW Anti-Air Warfare Warship ) (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : AAWWV.PK), a leading provider of global air cargo air cargo: see aviation. services, today provided preliminary unaudited estimates for the year ended December December: see month. 31, 2004, for certain business and financial measures tracked by management in evaluating the performance of its business. AAWW completed a financial restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and emerged from Chapter 11 bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party in July July: see month. 2004. The Company expects to file its 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 2004 as soon as practicable practicable adj. when something can be done or performed. , but not prior to May 2005. The preliminary business and financial measures disclosed today are intended to assist AAWW stockholders to better understand the Company's 2004 performance prior to the completion of its audited financial statements for the full year. AAWW expects to report 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 full year 2004 in the range of $56 million to $74 million, an improvement of about $10 million to $28 million compared with operating income of $46 million in the 2004 Business Plan set forth in AAWW's Second Amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. Disclosure Statement filed with the Securities and Exchange Commission on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. on July 26, 2004 (the "Plan"). It also represents an improvement of approximately $62 million to $80 million compared with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $6 million for the full year 2003. Excluding the impact of pre-petition reorganization costs, operating income in 2004 is expected to total $70 million to $83 million. Commenting on AAWW's performance during 2004, President and Chief Executive Officer Jeffrey H. Erickson Erickson can refer to several persons:
"We are pleased by the anticipated improvement in our operating profitability for 2004. It is a function of the financial and operational restructuring efforts that we initiated in 2003 and continued in 2004 as well as the general improvement in demand for global air cargo services in 2004. "The improvements in our underlying financial and operating performance are further demonstrated by 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) and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become results. Going forward, however, we know that we must continue to strengthen our business and improve our processes, including our internal financial controls." Revenues for the full year are expected to total about $1,414 million, $258 million greater than Plan revenues of $1,156 million and $30 million greater than revenues of $1,384 million in 2003. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. are expected to be in the range of $1,340 million to $1,358 million in 2004, $230 million to $248 million above Plan, but $32 million to $50 million lower than in 2003. Operating expenses in 2004 are expected to include between $9 million and $14 million of reorganization costs, as well as approximately $10 million in other operating expenses that management does not expect to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. in the future. None of these items, which total about $19 million to $24 million, were included in the Plan. AAWW also expects to report results ranging from a pretax loss pretax loss A loss reported before tax benefits are considered. of $1 million to pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. of $21 million for the full year 2004, including a net benefit of $8 million to $15 million for debt forgiveness Forgiveness Angelica, Suor is forgiven by the Virgin Mary for ill-considered suicide. [Ital. Opera: Puccini, Suor Angelica, Westerman, 364] Bishop of Digne , reorganization costs and fresh-start accounting adjustments associated with its Chapter 11 restructuring. Excluding the net benefit, AAWW expects to realize between $9 million of pretax loss and $6 million of pretax income for the year. In contrast with the outlook for pretax income in 2004, the Plan anticipated a pretax loss of $32 million compared with a pretax loss of $101 million in 2003. Excluding net reorganization expenses of $36 million in the Plan and $44 million incurred in 2003, Plan pretax income would have been $4 million versus a pretax loss of $57 million in 2003. With respect to non-GAAP measures frequently used by management to analyze its results, AAWW anticipates full-year 2004 EBITDAR (earnings before interest, taxes, depreciation, amortization, aircraft rent expense, and reorganization expense) in the range $266 million to $278 million compared with Plan EBITDAR of $225 million and 2003 EBITDAR of $281 million. In addition, the Company anticipates full-year EBITDA (earnings before interest, taxes, depreciation, amortization and reorganization expense) of approximately $123 million to $136 million versus Plan EBITDA of $84 million and 2003 EBITDA of $98 million. Strategic Measures "Going forward, our goal is to be the world's most capable, efficient and diversified diversified (di·verˑ·s operator of long-haul long haul n. 1. A long distance: It is a long haul from New York to Los Angeles. 2. A long period of time: Over the long haul the candidates performed well. freighter aircraft," noted Mr. Erickson. "Our focus will continue to be on optimizing the allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of assets among our four business lines in order to maximize profitability and minimize risk. "We still face a number of significant challenges," he continued, "and we are undertaking a number of strategic measures to restore and to sustain our profitability and to rebuild stockholder value." Specific strategic initiatives being pursued by AAWW include: --Optimizing the Scheduled Service segment network so that this business segment can ultimately reach profitability; --Continuing efforts to reduce overhead and operating costs operating costs npl → gastos mpl operacionales ; --Improving operations by overhauling procedures in several key facets of flight operations, ground operations, and maintenance; --Selectively disposing of unproductive assets, which may include aging aircraft; --Pursuing growth opportunities, which may include forming strategic alliances with synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. carriers and offering customers new services and fleet types; and --Continuing efforts to maximize the Company's financial flexibility, which may include refinancing Refinancing An extension and/or increase in amount of existing debt. certain indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . 2004 Performance Highlights Versus Plan Each of AAWW's four main operating segments, 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 Lease Contracts, Scheduled Service, Military (AMC (Advanced Mezzanine Card) See AdvancedTCA. ) Charters, and Commercial Charters, is expected to achieve better than planned operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. in 2004. The revenue improvement is expected to be a function of increases in block-hour activity in the ACMI and AMC segments and improvement in yields in all of the operating segments, including a 15% improvement in Scheduled Service RATM RATM Rage Against The Machine (band) (revenue per available ton mile 1. (Railroads) A unit of measurement of the freight transportation performed by a railroad during a given period, usually a year, the total of which consists of the sum of the products obtained by multiplying the aggregate weight of each shipment in tons during the given ) versus Plan. With total block-hour activity expected to increase approximately 13%, and with the average number of operating aircraft up about 4%, overall aircraft utilization Average numbers of hours during each 24-hour period that an aircraft is actually in flight. is anticipated to improve compared with Plan. Other revenues, which primarily reflect income from dry leased aircraft, are expected to increase by approximately $14 million, or 44%, versus Plan. The expected improvement in Other Revenue is primarily due to the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. revenues related to AAWW's dry leasing activities. The Plan had assumed certain dry lease income would be an offset to aircraft rent expense; instead, that dry lease income has been recorded in Other Revenue (reflecting the restructuring of several financing agreements Financing Agreements In the context of project financing, the documents which provide the project financing and sponsor support for the project as defined in the project contracts. , previously classified as operating leases Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. , relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc aircraft in which AAWW has acquired an ownership interest). The effect of this reclassification is to improve operating revenue and increase aircraft rent expense, improving EBITDAR, but it has no net effect on operating or pretax income. Approximately 44% of the increase in total operating expenses compared with Plan is expected to relate to increased fuel expense, and about 4% to 6% is expected to relate to reorganization costs included in operating expenses. In addition, maintenance and other direct operating expenses are anticipated to increase in conjunction with the 13% increase in block-hour activity versus Plan. Notwithstanding the increase in fuel and other operating expenses, the anticipated increase in operating revenues in 2004 is expected to result in an improvement in overall operating profitability versus Plan. Ownership expenses during 2004, including aircraft rent, depreciation, and interest expense, reflect the impact of the Chapter 11 bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most reorganization and the expected impact of fresh-start accounting adjustments following AAWW's exit from bankruptcy in July 2004. As a consequence of the reorganization, certain aircraft that were previously accounted for as operating leases have been reclassified and are now treated as capital leases or owned aircraft. The Plan for 2004 included an assumption that these aircraft would continue to be treated as operating leases. This reclassification has had the impact of increasing interest expense and reducing aircraft rent expense. Interest expense is also expected to increase due to the impact of fresh-start accounting, reflecting market-value adjustments to debt that will flow through interest expense. The expected net increase in aircraft rent expense versus Plan is partially attributable to the reclassification of dry lease income that the 2004 Plan had assumed would offset aircraft rent expense; this dry lease income has been recorded as Other Revenue. 2004 Performance Highlights Versus 2003 Both an improvement in operating revenues and a reduction in operating expenses are expected to contribute to a significant improvement in AAWW's operating income in 2004 compared with 2003. Operating revenues for the year ended December 31, 2004, gained on strong contributions from AAWW's Scheduled Service and ACMI segments, offset in part by lower revenues in the military (AMC) and commercial charter segments. Operating revenues during 2004 reflect block-hour activity that totaled 153,979 hours for the year, down 3% from 2003. The modest decline in block hours In aviation, block hours is the time between an aircraft leaving from the departure gate and ariving at the destination gate. contrasts with a sharp 16% reduction in average operating aircraft during the year, principally due to the rejection and return of aircraft in conjunction with AAWW's restructuring. In the Scheduled Service segment, revenues benefited from higher yields, improved unit revenue, and an increased load factor. In addition, the Scheduled Service segment commenced operations in China in December 2004 under a route authority granted to AAWW by the U.S. Department of Transportation in October October: see month. 2004. With six weekly frequencies from the 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. to China, increasing to nine frequencies in March 2005, AAWW anticipates that its Chinese Chinese, subfamily of the Sino-Tibetan family of languages (see Sino-Tibetan languages), which is also sometimes grouped with the Tai, or Thai, languages in a Sinitic subfamily of the Sino-Tibetan language stock. operations will improve the profitability of its Scheduled Service business. In ACMI, both an increase in the volume of ACMI leasing activity and an improvement in contract lease rates contributed to the expansion in ACMI revenues. The decline in AMC Charter revenues was primarily due to a reduction in the volume of charter flights requested by the military compared with higher activity in 2003 associated with the buildup build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. to the military conflict in Iraq Iraq or Irak (both: ēräk`, ĭrăk`), officially Republic of Iraq, republic (2005 est. pop. 26,075,000), 167,924 sq mi (434,924 sq km), SW Asia. , partly offset by an increase in AMC charter rates. Despite an overall improvement in air cargo demand in 2004, Commercial Charter revenues decreased due to a reduction in available capacity caused by the combination of increased ACMI flying and a reduction in AAWW's total operating fleet as a result of the Chapter 11 bankruptcy reorganization. Complementing the improvement in operating revenues, operating expenses declined in 2004 versus 2003. Lower aircraft rents and depreciation, travel expenses, reductions in other operating expenses, and lower pre-petition costs and related professional fees were partly offset by increases in maintenance, materials and repairs, aircraft fuel, and other items. Higher maintenance costs were principally due to an expected increase in the number of airframe D-check overhaul events versus 2003. Increased fuel expense largely reflected a higher fuel price environment. Cash and Equivalents Cash and cash equivalents totaled about $134 million at December 31, 2004, an improvement of $41 million over both the 2004 Plan balance of $93 million and the 2003 balance of $93 million. In the third quarter of 2004, AAWW fully repaid its outstanding DIP (Debtor-in-Possession) loan borrowings of $18 million from existing cash on hand. Also in the third quarter, AAWW transferred $20 million from cash on hand into the Polar Creditor An individual to whom an obligation is owed because he or she has given something of value in exchange. One who may legally demand and receive money, either through the fulfillment of a contract or due to injury sustained as a result of another's Negligence Trust, a segregated interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid account established for the benefit of allowed general unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. claims against the Company's wholly owned Polar Air Cargo Polar Air Cargo is an American cargo airline based in Purchase, New York, USA. It operates scheduled all-cargo services to Asia, Europe, Australia, New Zealand and the Americas. Its main base is John F. , Inc. subsidiary, as required by AAWW's Plan of Reorganization. Balances currently in the Polar Creditor Trust are not included in, and are not treated as, cash and cash equivalents by AAWW. Forecast cash balances in the 2004 Plan did not contemplate the $20 million funding of the Polar Creditor Trust. The Plan also assumed that AAWW would draw on a new exit credit facility to replenish re·plen·ish v. re·plen·ished, re·plen·ish·ing, re·plen·ish·es v.tr. 1. To fill or make complete again; add a new stock or supply to: replenish the larder. 2. the cash used for repayment of the $18 million DIP facility. Notice Regarding Preliminary Estimates AAWW cautions readers not to place undue reliance upon the business and financial measure estimates in this release and in the accompanying tables, which are unaudited. AAWW's independent public accountants, Ernst & Young LLP LLP - Lower Layer Protocol , will be conducting an audit of AAWW's financial statements for the year ended December 31, 2004, but such audit has not commenced. The financial information contained in this release and in the accompanying tables is limited to certain items from AAWW's financial statements. This release does not contain certain of the business and financial information that an investor may consider important, nor does it contain all of the information required to be included in financial statements by generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), required to be included in annual or quarterly financial reports filed pursuant to the Securities Exchange Act of 1934, or required by any other prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). form or format. The preliminary unaudited estimates released today are subject to adjustment in connection with the conduct of AAWW's continued review of the 2004 financial statements and the audit of its financial statements. For these reasons, among others, the business and financial information in the commentary and in the accompanying tables may not be indicative of AAWW's financial statements in reports that would be required to be filed pursuant to the Securities Exchange Act of 1934. About Non-GAAP Financial Measures To supplement AAWW's financial statements presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP, AAWW uses certain non-GAAP financial measures in evaluating the performance of its business. These non-GAAP measures include EBITDAR and EBITDA, each excluding pre-petition and post-petition reorganization costs. AAWW's management uses these non-GAAP financial measures in assessing the performance of the Company's ongoing operations and liquidity and in planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to AAWW's historical operating results. About Atlas Air Worldwide Holdings, Inc.: AAWW is the parent company of Atlas Air, Inc. (Atlas Atlas, in Greek mythology Atlas (ăt`ləs), in Greek mythology, a Titan; son of Iapetus and Clymene and the brother of Prometheus. ) and Polar Air Cargo, Inc. (Polar), which together operate the world's largest fleet of Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. 747 freighter aircraft. Atlas is the world's leading provider of ACMI (aircraft, crew, maintenance and insurance) freighter aircraft to major airlines around the globe. Polar is among the world's leading providers of airport-to-airport freight carriage. Polar operates a global, scheduled-service network and serves major trade lanes of the world. Through both of its principal subsidiaries, AAWW also provides commercial and military charter services. This release contains "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. " within the meaning 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 that reflect AAWW'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 AAWW 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 those forward-looking statements with respect to our preliminary financial reporting for 2004 include, but are not limited to, the following: receipt of additional information impacting AAWW's 2004 results, further analysis of revenues and expenses in 2004, changes in the preliminary allocation of items of revenue and expense between operating and reorganization classifications and other risks and uncertainties set forth from time to time in AAWW's reports to the United States Securities and Exchange Commission. Factors that could cause actual results to differ materially from those forward-looking statements with respect to other matters 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 ability of the companies to continue as going concerns; 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 remedy weaknesses in our 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; pending and future litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; the market acceptance of AAWW's new common stock; and other risks and uncertainties set forth from time to time in AAWW'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 Current Report on Form 8-K filed by AAWW with the Securities and Exchange Commission on February 10, 2005 and in the Plan, which is set forth in the Current Report on Form 8-K filed by AAWW with the Securities and Exchange Commission on July 26, 2004. Other factors and assumptions not identified above are also involved in the preparation of forward-looking statements, and the failure of such other factors and assumptions to be realized may also cause actual results to differ materially from those discussed. The information contained in this release relates to AAWW's anticipated business and financial performance in 2004. This information should not be construed as indicative of AAWW's expected financial performance in 2005. AAWW is not providing guidance regarding its anticipated business and financial performance in 2005. AAWW assumes no obligation to update the 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
Business and Financial Measures
Preliminary Unaudited 2004 vs. Plan 2004
Pre. Unaudited Plan Preliminary 2004 vs. Plan
---------------------------------
($ in Millions) 2004 2004 Increase/(Decrease)Percent Change
--------------- ----- ---------------------------------
OPERATING
REVENUES
Scheduled
Service 640 - 640 594 46 - 46 8%- 8%
Charter
Service 69 - 69 68 1 - 1 1%- 1%
ACMI Lease
Contracts 377 - 377 310 67 - 67 22%- 22%
AMC Charter 283 - 283 152 131 - 131 86%- 86%
Other Revenue 46 - 46 32 14 - 14 44%- 44%
------ ---- ---- ----- -----
Total
Operating
Revenue 1,414 - 1,414 1,156 258 - 258 22%- 22%
OPERATING
EXPENSES
Maintenance,
Materials
and Repairs 233 - 231 210 23 - 21 11%- 10%
Aircraft Fuel 353 - 349 245 108 - 104 44%- 42%
Aircraft Rent 143 - 142 141 2 - 1 1%- 1%
Depreciation 53 - 53 37 16 - 16 43%- 43%
Pre-Petition
Reorganization
Costs 14 - 9 - 14 - 9 NM - NM
Other Op.
Expenses 561 - 555 477 84 - 78 18%- 16%
------ ---- ---- ----- -----
Total
Operating
Expenses 1,358 - 1,340 1,110 248 - 230 22%- 21%
Operating
Income
(Loss) 56 - 74 46 10 - 28 22%- 61%
Interest
Expense,
net 81 - 79 43 38 - 36 88%- 84%
Other Non-
Operating
Expense
(Income) (2)- (2) - (2)- (2) NM - NM
Reorganization
items, net (22)- (24) 36 (58)- (60) (261%)- (267%)
Pretax
Income/(Loss) (1)- 21 (32) 31 - 53 NM - NM
Ending Cash and
Equivalents
Balance 134 - 134 93 41 - 41 44%- 44%
Atlas Air Worldwide Holdings
Business and Financial Measures
Preliminary Unaudited 2004 vs. Audited 2003
Pre. Unaudited Audited Preliminary 2004 vs. 2003
--------------------------------
($ in Millions) 2004 2003 Increase/(Decrease)Percent Change
-------------- ----------------------------------------
OPERATING
REVENUES
Scheduled
Service 640 - 640 524 116 - 116 22% - 22%
Charter
Service 69 - 69 87 (18)- (18) (21%)- (21%)
ACMI Lease
Contracts 377 - 377 305 72 - 72 24% - 24%
AMC Charter 283 - 283 430 (147)- (147) (34%)- (34%)
Other Revenue 46 - 46 37 9 - 9 24% - 24%
------ ----- ----- ------ ------
Total
Operating
Revenue 1,414 - 1,414 1,384 30 - 30 2% - 2%
OPERATING
EXPENSES
Maintenance,
Materials
and Repairs 233 - 231 198 35 - 33 18% - 17%
Aircraft Fuel 353 - 349 326 27 - 23 8% - 7%
Aircraft Rent 143 - 142 183 (40)- (41) (22%)- (22%)
Depreciation 53 - 53 60 (7)- (7) (12%)- (12%)
Pre-Petition
Reorganization
Costs 14 - 9 44 (30)- (35) (68%)- (80%)
Other Op.
Expenses 561 - 555 578 (17)- (23) (3%)- (4%)
------ ----- ----- ------ ------
Total
Operating
Expenses 1,358 - 1,340 1,390 (32)- (50) (2%)- (4%)
Operating
Income
(Loss) 56 - 74 (6) 62 - 80 NM - NM
Interest
Expense,
net 81 - 79 94 (13)- (15) (14%)- (16%)
Other Non-
Operating
Expense
(Income) (2)- (2) 1 (3)- (3) (300%)- (300%)
Reorganization
items, net (22)- (24) - (22)- (24) NM - NM
Pretax
Income/(Loss) (1)- 21 (101) 100 - 122 NM - NM
Ending Cash and
Equivalents
Balance 134 - 134 93 41 - 41 44% - 44%
Atlas Air Worldwide Holdings
Business and Financial Measures
Reconciliation to Non-GAAP Measures
Preliminary Unaudited 2004 vs. Plan 2004
Pre. Plan Preliminary 2004 vs. 2003
Unaudited
----------------------------------
($ in Millions) 2004 2004 Increase/(Decrease) Percent Change
---------- ------ ------------------- --------------
Pretax
Income/(Loss) (1)- 21 (32) 31 - 53 NM - NM
Reorganization
items, net (22)- (24) 36 (58)- (60) (261%)- (267%)
Pre-Petition
Reorganization
Costs 14 - 9 - 14 - 9 NM - NM
----- ----- ----- ------ ----
Pretax Income
(loss) before
Reorganization
Costs (9) 6 4 (13)- 2 (325%)- 50%
Interest Expense,
net 81 - 79 43 38 - 36 88% - 84%
Other Non-
Operating
Expense
(Income) (2)- (2) - (2)- (2) NM - NM
----- ----- ----- ------ ----
Operating Income
(loss) before
Non-Operating
and
Reorganization
Costs 70 83 47 23 - 36 49% - 77%
Depreciation 53 - 53 37 16 - 16 43% - 43%
----- ----- ----- ------ ----
EBITDA 123 136 84 39 - 52 46% - 62%
Aircraft Rent 143 - 142 141 2 - 1 1% - 1%
----- ----- ----- ------ ----
EBITDAR 266 278 225 41 - 53 18% - 24%
Atlas Air Worldwide Holdings
Business and Financial Measures
Reconciliation to Non-GAAP Measures
Preliminary Unaudited 2004 vs. Audited 2003
Pre. Audited Preliminary 2004 vs. 2003
Unaudited
----------------------------------
($ in Millions) 2004 2003 Increase/(Decrease) Percent Change
----------- --------------------------- --------------
Pretax
Income/(Loss) (1)- 21 (101) 100 - 122 NM - NM
Reorganization
items, net (22)-(24) - (22)- (24) NM - NM
Pre-Petition
Reorganization
Costs 14 - 9 44 (30)- (35) (68%)- (80%)
--------- ------ ------- -------
Pretax Income
(loss) before
Reorganization
Costs (9) 6 (57) 48 - 63 NM- NM
Interest
Expense, net 81 - 79 94 (13)- (15) (14%)- (16%)
Other Non-
Operating
Expense
(Income) (2)- (2) 1 (3)- (3) (400%)-(400%)
--------- ------ ------- -------
Operating Income
(loss) before
Non-Operating
and
Reorganization
Costs 70 83 38 32 - 45 84% - 118%
Depreciation 53 - 53 60 (7)- (7) (12%)- (12%)
--------- ------ ------- -------
EBITDA 123 136 98 25 - 38 26% - 39%
Aircraft Rent 143 -142 183 (40)- (41) (22%)- (22%)
--------- ------ ------- -------
EBITDAR 266 278 281 (15)- (3) (5%)- (1%)
Atlas Air Worldwide Holdings
Preliminary System Statistics & Traffic Results
2004 vs. 2004 Plan and 2003
Percent Change
--------------
OPERATING STATISTICS Plan
2004 Plan 2004 2003 2004 2003
------- --------------- ------ -----
Operating Fleet (average
aircraft)
Aircraft count (1) 37.7 36.3 45.0 4% (16%)
Block Hours
Scheduled Service 55,111 56,672 54,217 (3%) 2%
Charter Service 4,973 6,559 7,957 (24%) (38%)
ACMI Lease Contracts 70,343 59,327 58,536 19% 20%
AMC Charter 22,376 13,200 34,959 70% (36%)
Other Product - - 1,495 NM (100%)
Non Revenue 1,176 784 1,524 50% (23%)
------- --------------- ------ -------
Total Block Hours 153,979 136,542 158,688 13% (3%)
Scheduled Service Traffic
RTM's (millions) 2,021.9 1,975.7 1,843.9 2% 10%
ATM's (millions) 3,222.9 3,456.9 3,253.2 -7% -1%
RATM (cents) (2) 19.8 17.2 16.1 15% 23%
RTM Yield (cents) (3) 31.6 30.1 28.4 5% 11%
Load Factor 62.7% 57.2% 56.7% 5.6 pts 6.1 pts
(1) Operating Fleet
excludes the following
aircraft count that were
dry leased or parked:
Dry Leased 4.0 4.9 3.7 -18% 8%
Parked 3.3 2.1 3.3 57% 0%
(2) RATM represents scheduled service revenue dollars per available
ton mile
(3) RTM Yield represents scheduled service revenue dollars per revenue
ton mile
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