To All:
Here is the press release for those interested:
Wednesday February 11, 8:04 am Eastern Time
Company Press Release
Atlas Air Reports Earnings for Fourth Quarter and Full Year 1997
GOLDEN, Colo.--(BUSINESS WIRE)--Feb. 11, 1998--Atlas Air Inc. (NYSE:CGO - news) today reported net income for
the quarter ended Dec. 31, 1997 of $9.1 million, or $.41 per share, the second best such quarter in its history. Operating
income for the quarter was $27.8 million and revenues were $120.9 million.
That compares to net income of $13.4 million, or $.60 per share, for the fourth quarter of 1996. Operating income for such
quarter was $29.9 million and revenues were $104.7 million.
Net income for full year 1997 equaled $23.4 million, or $1.04 per share, versus $37.8 million, or $1.76 per share, for full year
1996. Operating income for 1997 was $83.1 million, excluding special items, which represented a 21% margin, as compared
to $88.1 million in operating income for 1996. Revenues for the year 1997 increased 27%, to $401.0 million from $315.7
million for the prior year.
Richard Shuyler, senior vice president and chief financial officer of Atlas Air said: ''Our results for the fourth quarter brought
the year to a highly successful close. As we had anticipated, the air cargo market was extremely strong during the quarter and
our customers flew at all-time record levels. This was reflected in the 22,333 block hours produced in the quarter, which was
achieved even with one of the Federal Express aircraft out of service.
''More importantly, the healthy cargo market has continued into the first quarter and shows every sign of remaining strong
throughout all of 1998. We continue to believe that 1998 will be a positive freight year for our customers.''
Michael A. Chowdry, Atlas Air's president and chief executive officer, said: ''The strength of our fourth quarter earnings has
fully set the stage for 1998. The various challenges that Atlas had been facing now appear to be successfully resolved. All five
of the Federal Express aircraft were returned at year-end, removing the major negative factor that had been affecting our
financial performance. In addition, despite outside fears to the contrary, the strong cargo market has continued undaunted.
''Also, we were gratified that our pilot work force again elected not to seek union representation. Finally, our 747-400 delivery
schedules from Boeing now appear to be relatively firm. Our expectation now is that the four new aircraft we have ordered will
indeed be delivered to Atlas within the 60-day window we had earlier anticipated.
''These aircraft, coupled with the two used ex-Philippine Airline 747-200s that will shortly enter service, will be very favorable
additions to our fleet. Indeed, our view of the marketplace is sufficiently positive that we have just reached agreement with
Boeing to advance one of our remaining six delivery positions into late fourth quarter this year. All in all, we are looking forward
to 1998 with great anticipation.''
In addition, Atlas indicated that it has completed the placement of approximately $539 million in Enhanced Equipment Trust
Certificates (EETC's) that will provide permanent financing for all five of the new Boeing 747-400 aircraft to be delivered to
Atlas in 1998. The transaction, priced at a blended rate of approximately 7.5%, closed on Feb. 9th.
Atlas Air is a United States certificated air carrier that operates a fleet of 747 freighters under long-term ACMI contracts.
These contracts include the provision by Atlas of Aircraft, Crew, Maintenance and Insurance for some of the world's leading
air carriers, including British Airways, China Airlines, Emirates, Fast Air, KLM, LAS, Lufthansa, SAS, and Thai International
Airways, serving a total of 62 cities in 38 countries. |
