Atlas Air Worldwide Holdings Reports First Quarter Results.Business Editors PURCHASE, N.Y.--(BUSINESS WIRE)--May 10, 2002 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. ("AAWH AAWH American Association for World Health ") (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 a first quarter 2002 loss of $6.7 million, or $0.17 per share, for the period ended March 31, 2002, compared to a $1.6 million loss, or $.04 a share, in the same period of 2001. "The first half of the year is traditionally the weaker season for the cargo market," said Richard Shuyler, Chief Executive Officer. "In 2002, it is being exacerbated by the continuing severe economic stress that the cargo industry has been under for the past twelve months. The resulting softness in our traditional 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 markets, however, has been somewhat offset by strong charter revenues, particularly the ongoing demand from the US military. We continue to see these as important transitional opportunities while the international air cargo air cargo: see aviation. market begins to return to its historical growth mode. In addition, we have been gratified 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. by the solid performance of our 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. subsidiary." Total revenues for the quarter, including those of Polar Air Cargo, which was acquired by the Company late last year, rose to $246.2 million from $180.3 million, an increase of 37%. Consolidated block hours In aviation, block hours is the time between an aircraft leaving from the departure gate and ariving at the destination gate. increased 10.1% to 32,785, of which 23,189 hours were recorded by Atlas Air, Inc., a 22.1% decline from the 28,776 hours reported in the first quarter of 2001. 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 quarter was $7.7 million versus operating income of $15.4 million for the year-earlier period. Consolidated earnings before interest, taxes, depreciation and aircraft rentals (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) ), an important measure of pre-leverage cash flow, totaled $76.3 million for the quarter, a margin of 31%, compared to $66.9 million or 37.1% for the comparable period of 2001. "During the past year, we have taken a number of significant steps to reshape our company to better reflect the environment in which we find ourselves today," said Shuyler. "These have included a number of innovative product initiatives, most notably the Atlas Air Partnership Program, which is seeing increasing success. This independent global network for cargo industry participants, with its strategically-located hub operations around the world, has received strong response from the marketplace. Atlas Air has already attracted a number of both existing and new customers who are now participating in the Partnership Program under either partial or fractional fractional size expressed as a relative part of a unit. fractional catabolic rate the percentage of an available pool of body component, e.g. protein, iron, which is replaced, transferred or lost per unit of time. ACMI agreements. This new source of revenue growth for Atlas Atlas, in Greek mythology Atlas (ăt`ləs), in Greek mythology, a Titan; son of Iapetus and Clymene and the brother of Prometheus. will be increasingly important as the network continues to expand in both size and scope, and as the cargo market rebounds. "In addition, we are encouraged by the results from Polar Air Cargo. The combination of substantial military activity, and its restructured operations and costs under AAWH, has already resulted in the achievement of profitability at this new subsidiary. Its core scheduled service operations, excluding any military activities, were profitable in the month of March, reversing a long history of losses in that area prior to our acquisition. We look forward to continuing contributions from Polar as we move further into the year. "Nevertheless, we and other cargo lift suppliers will continue to see a difficult earnings environment until a more robust recovery takes hold," continued Shuyler. "In that regard, we continue to see tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. signs of a recovery, particularly given the strong finish to the first quarter we experienced. At the same time, our cash and investment balance of $266 million, which reflects the fact that we have now paid over 40% of the debt and interest payments required for the full year, continues to provide us a solid financial foundation as we await AWAIT, crim. law. Seems to signify what is now understood by lying in wait, or way-laying. the market's return. We expect to close 2002 with a similar level. In addition, we are in the process of finalizing our talks with Boeing regarding the four B747-400 aircraft Atlas Air has on order. Delivery of one of the four aircraft has now been deferred to late next year, and the delivery schedules for the remaining aircraft are in the process of being revised. We are also finalizing negotiations with Boeing regarding full lease financing for the 2002 scheduled aircraft. These developments are important steps as we look forward to the recovery of the cargo sector as we move into the second half of 2002." Atlas Air Worldwide Holdings, Inc. is the parent company of Atlas Air, Inc. ("Atlas Air"), and of Polar Air Cargo ("Polar"). Atlas Air offers its customers a complete line of freighter services, specializing in ACMI (Aircraft, Crew, Maintenance, and Insurance) contracts, with its fleet of B747 aircraft. Polar Air Cargo's fleet of Boeing 747 freighter aircraft specialize spe·cial·ize v. 1. To limit one's profession to a particular specialty or subject area for study, research, or treatment. 2. To adapt to a particular function or environment. in time-definite, cost-effective, airport-to-airport scheduled airfreight air·freight n. 1. A system of transporting freight by air. 2. The amount charged for transporting freight by air. air service. Polar Air Cargo and Atlas Air are operated as separate subsidiaries of the parent company. EDITOR'S NOTE Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : AAWH will discuss first quarter results with analysts and investors in a conference call today, May 10, at 2:30 PM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The access number is 800-289-0437. From outside 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. , call 913-981-5508. After the call, a replay will be available for a period of one week at 888-203-1112, or 719-457-0820, passcode 283726. 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 our 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, 2001.
Atlas Air Worldwide Holdings, Inc.
CONSOLIDATED FINANCIAL RESULTS (UNAUDITED)
(in thousands, except per share data)
Three Months Ended March 31,
2002* 2001
--------- ---------
Revenues
Contracted services $ 108,567 $ 160,648
Charter services and other revenues 87,715 19,664
Scheduled services 49,889 -
--------- ---------
Total operating revenues 246,171 180,312
--------- ---------
Expenses
Salaries, wages and benefits 40,402 30,159
Aircraft rentals 46,919 31,386
Depreciation and amortization 21,695 20,186
Ground handling and airport fees 25,592 3,954
Maintenance, materials and repairs 38,192 29,408
Aircraft fuel 30,918 2,836
Pilot profit sharing settlement - 22,815
Other operating expenses 34,779 24,203
--------- ---------
Total operating expenses 238,497 164,947
--------- ---------
Operating income 7,674 15,365
Other Income (Expense)
Interest income 3,311 7,634
Interest expense (25,784) (25,377)
Interest capitalized 2,457 2,863
Change in hedge fair value 1,368 (2,061)
--------- ---------
(18,648) (16,941)
--------- ---------
Loss before income taxes and cumulative
effect of a change in accounting principle (10,974) (1,576)
Income tax benefit (4,324) (1,583)
--------- ---------
Loss before cumulative effect of a change in
accounting principle (6,650) 7
Cumulative effect of a change in accounting
principle, net of applicable tax benefit of - (1,589)
$933 --------- ---------
Net Loss $ (6,650) $ (1,582)
========= =========
Loss per basic and diluted share
Loss before cumulative effect of a change in
accounting principle $ (0.17) $ -
Cumulative effect of a change in accounting
principle - (0.04)
--------- ---------
Net loss $ (0.17) $ (0.04)
--------- ---------
(*) 2002 results include the results of Polar Air Cargo whereas
the 2001 results do not
Note: Certain amounts have been reclassified to conform to 2002
presentation.
Atlas Air Worldwide Holdings, Inc.
Operating Statistics
for the Quarter ended,
March 31,
2002* 2001
-------------------------
Block Hours:
Atlas 23,189 28,776
ACMI services 67% 89%
Hub services 12%
Charter services and other services 21% 11%
Polar 9,596 -
Scheduled service 56% -
Charter services and other services 34% -
ACMI services 10% -
Scheduled Service
Revenue Ton Miles (000's) 202,756 -
Available Ton Miles (000's) 328,869 -
Load Factor 61.70% -
Yield per RTM (cents) 24.99 -
Revenue per ATM (cents) 15.4 -
Operating Aircraft at end of period**
Atlas 31 37
Polar 12 -
Total operating aircraft 43 37
* 2002 Operating statistics include Polar whereas 2001
statistics do not
** Operating aircraft do not include grounded and held for sale
B747-200
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