Atlas Air Profit Rises 31%
It beat the street estimate ! Let see how much it will rebound today !
Is $ 35 a possibility ???
Reports Record Earnings and Revenues for Fourth Quarter and Full Year 1999
GOLDEN, Colo.--(BUSINESS WIRE)--Jan. 26, 2000--Atlas Air, Inc. (NYSE: CGO - news) today reported record net income for the quarter
ended December 31, 1999, of $23.7 million, or $.69 per diluted share. Revenues for the quarter rose by 37% to $198.8 million, and operating
income increased from $47.1 million to $61.5 million, both of which were also records for the Company. The fourth-quarter results represent
a 31% operating margin.
The Company's fourth-quarter net income of $23.7 million reflected a 31% increase compared to net income of $18.1 million for the year
earlier quarter. Fourth-quarter 1999 earnings per diluted share of $.69 compared to $.53 per diluted share for the same period in 1998, an
increase of 30%.
Atlas also reported record net income for full year 1999 of $61.3 million or $1.77 per diluted share, before previously-announced one-time
and extraordinary charges in the first quarter of 1999, compared to $46.2 million or $1.37 per diluted share for 1998. This represents a 33%
increase year over year. Full year 1999 revenues and operating income were also all-time records for the Company. Revenues totaled $637.1
million compared to $422.2 million in 1998, an increase of 51%, and 1999 operating income was $187.5 million compared to $135.8 million, an
increase of 38% over the prior year.
''Our fourth-quarter results were, by far, the strongest in our history,'' said Richard Shuyler, Executive Vice President of Atlas Air, Inc.
''Not only did we set new records for block hours, revenues and earnings, but we did so in an environment in which reduced traffic or
volumes, and especially higher fuel costs, have impacted much of the rest of the airline and air freight industry. This serves to once again
contrast Atlas Air's unique business model with that of traditional airlines. Because our customers pay for the fuel for our operations,
Atlas has virtually no fuel price exposure. Moreover, our business is centered exclusively on the fast-growing international heavy air
freight sector, which saw strong growth throughout 1999. All signs point to even further growth in 2000, with the continued resurgence of
the Asian air cargo market, which is projected to experience double digit increases over 1999. This trend was underscored by the new
long-term ACMI contract we have just entered into with China Southern Airlines, Mainland China's largest airline. This historic agreement,
the first of its kind in Mainland China, reflects the significant growth foreseen for exports coming out of the Mainland over the next several
years.
''1999 was important in other ways, as well,'' continued Shuyler. ''We were particularly pleased with the fact that we grew our production
by an impressive 44% over the course of the year, while increasing our revenues by an even greater 51%. This reflected our now-proven
ability to quickly place additionally-acquired aircraft with customers and to expand our customer base, as well. In fact, during the course of
the year, we placed into service four new 747-400 deliveries from Boeing, and added five new customers to our portfolio, and did so while
actually improving our revenue economics. The resulting continued strengthening of our already-solid financial position led to our being
ranked ''The Most Financially-Fit Airline in the World'' by Air Watch Report for the third time. This honor was then added to by Michael
Chowdry's selection as the nation's ''Entrepreneur of the Year'' for 1999 in Ernst & Young's Commercial Transportation Services category.
''Looking forward, we anticipate another successful year in 2000 for Atlas,'' Shuyler said. ''We have now completed all of our 2000 debt
financing requirements, with last weeks' favorable EETC aircraft financing. We will continue to add to our fleet and our customer base, with
the delivery of three new 747-400's from Boeing and our just-announced China Southern contract. In fact, as a result of the agreements we
have signed over the past few months, approximately 95% of our projected block hour production for the entire year is now already under
contract. That, coupled with the expected strong economic growth in Asia and elsewhere, means that 2000 should be another outstanding
year for Atlas Air.''
''The fourth quarter capped off an already-impressive year for Atlas,'' said Michael A. Chowdry, Chairman, Chief Executive Officer and
President of Atlas Air, Inc. ''As predicted, this peak cargo season set new records. As an example, Taiwan's exports rose by some 22%
during the quarter and Hong Kong's air cargo was up by 34% in December alone. More importantly, our customers continue to tell us that
we'll see more of the same as we enter 2000. With our existing status as the world's largest 747 freighter operator, and with further aircraft
deliveries in place, Atlas is extremely well-positioned to take advantage of the continuing growth in our business sector. We are especially
excited about our first entry into Mainland China, and expect that to be a major growth focus for air cargo in general, and Atlas in
particular. All in all, we look forward to this first year of the new millennium with great anticipation.''
Significant events during 1999:
In January, the Company redeemed in full its $100 million issue of 12.25% Senior Secured Notes due December 1, 2002.
Also in January, the Company declared a 3-for-2 common stock split.
In February, the Company exercised options for firm delivery of two B747-400F aircraft in the year 2000.
Also in February, the Company announced the placement of a B747-200F with Lan Chile under an ACMI contract and renewed its
contract with Emirates.
In March, the Company was ranked the number one carrier for 1998 for total cargo tonnage out of Miami, as determined by the
Miami International Airport Authority.
In April, Atlas successfully completed the debt financing for five B747-400F aircraft, under an EETC debt structure, at a fixed
interest rate of approximately 7.6%.
In May, Air Watch Report ranked Atlas as the most financially fit airline in the world. Additionally, Aviation Week & Space
Technology magazine ranked Atlas as the seventh best managed airline in the world.
In June, Michael A. Chowdry, Chairman, Chief Executive Officer and President of Atlas Air was selected as ''Entrepreneur of the
Year'' by Ernst & Young in the Commercial Transportation Services category in Denver, Colorado.
Also in June, Atlas announced the signing of a long-term B747-200F aircraft agreement with Air France.
During July, Atlas announced a short-term B747-200F agreement with Cathay Pacific Airways; two long-term B747-200F
agreements with China Airlines; a long-term B747-400F agreement with Korean Airlines; and a second B747-200F agreement with
Air France.
In August, Atlas announced a long-term B747-200F agreement with Sterling European Kommanditaktieselskab.
During September, Atlas completed long-term leveraged lease financing of two B747-400F aircraft.
In November, Atlas announced a major four-aircraft contract with a new customer, Malaysian Airlines (MAS Kargo).
In December, Moody's raised its senior implied credit rating of Atlas Air to B2.
Also in December, Atlas announced the relocation of its corporate headquarters to White Plains, NY, to take place during the
second half of 2000.
In January 2000, Atlas announced a long-term B747 agreement with China Southern Airlines of the Peoples Republic of China.
Also in January, the Company successfully completed EETC debt financing for all of its remaining 2000 aircraft deliveries.
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 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 the Company's expectations, assumptions and other Company matters
are forward-looking, they are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act 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, 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
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 for the
year ended December 31, 1998 and the Quarterly Report on Form 10-Q for the period ended September 30, 1999.
Atlas Air, Inc.
SUMMARY FINANCIAL RESULTS
($ Millions, except per share data)
Quarter Ended 12/31
1999 1998
------------ -------------
Operating Revenues $198.8 $145.5
Operating Income 61.5 47.1
Pre-Tax Income 38.7 28.8
Net Income 23.7 18.1
Diluted Earnings Per Share $ 0.69 $ 0.53
Weighted Average Shares
Outstanding (000's) 34,489 33,833
Total Block Hours 34,166 25,134
Atlas Air, Inc.
SUMMARY FINANCIAL RESULTS
($ Millions, except per share data)
Full Year
1999 1998
---- ----
Operating Revenues $637.1 $422.2
Operating Income 187.5 135.8
Pre-Tax Income 98.8 73.6
----------------------------------------------------------------------
Income before Extraordinary Item and
Cumulative Effect of a Change in
Accounting Principle 61.3 46.2
Extraordinary Item:
Loss from Extinguishment of Debt,
Net of Applicable Tax
Benefit of $3.9 (6.6) --
Cumulative Effect of a Change in
Accounting Principle:
Write Off of Start-Up Costs, Net
of Applicable Taxes of $0.8 (1.4) --
----------------------------------------------------------------------
Net Income $ 53.3 $ 46.2
Diluted Earnings Per Share:
Before Extraordinary Item and
Cumulative Effect of a Change in
Accounting Principle $ 1.77 $ 1.37
----------------------------------------------------------------------
Extraordinary Item (0.19) --
Cumulative Effect of a Change in
Accounting Principle (0.04) --
----------------------------------------------------------------------
Net Income $ 1.54 $ 1.37
Diluted Weighted Average Shares
Outstanding (000's) 34,500 33,841
Total Block Hours 109,608 76,276
Contact:
Atlas Air, Inc.
Richard H. Shuyler, 303/526-5050
More Quotes and News:
Atlas Air, Inc. (NYSE:CGO - news)
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