Po Boy
11th May 2002, 14:32
Atlas Air Q1 Earnings
Friday May 10, 2:16 pm Eastern Time
Press Release
SOURCE: Atlas Air Worldwide Holdings
Atlas Air Worldwide Holdings Reports First Quarter Results
PURCHASE, N.Y.--(BUSINESS WIRE)--May 10, 2002--Atlas Air Worldwide Holdings, Inc. ("AAWH") (NYSE:CGO - News) 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 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 market begins to return to its historical growth mode. In addition, we have been gratified by the solid performance of our Polar Air Cargo 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 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 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), 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 ACMI agreements. This new source of revenue growth for Atlas 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 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 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 in time-definite, cost-effective, airport-to-airport scheduled airfreight service. Polar Air Cargo and Atlas Air are operated as separate subsidiaries of the parent company.
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Friday May 10, 2:16 pm Eastern Time
Press Release
SOURCE: Atlas Air Worldwide Holdings
Atlas Air Worldwide Holdings Reports First Quarter Results
PURCHASE, N.Y.--(BUSINESS WIRE)--May 10, 2002--Atlas Air Worldwide Holdings, Inc. ("AAWH") (NYSE:CGO - News) 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 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 market begins to return to its historical growth mode. In addition, we have been gratified by the solid performance of our Polar Air Cargo 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 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 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), 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 ACMI agreements. This new source of revenue growth for Atlas 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 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 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 in time-definite, cost-effective, airport-to-airport scheduled airfreight service. Polar Air Cargo and Atlas Air are operated as separate subsidiaries of the parent company.
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