ENP Newswire -
Release date- 01052014 -
On a reported basis, net income attributable to common stockholders in the first quarter of 2014 totaled
Adjusted earnings in the first quarter of 2014 exclude a special charge of
'2014 is off to a good start, led by the initiatives we've undertaken to diversify our business mix, expand our aircraft and service offerings, develop new customers and position Atlas to take advantage of market opportunities,' said
'In addition, the expansion of our 767 aircraft service solutions and our growth into passenger charter operations supported the improvement in our results despite a seasonally soft contribution in Commercial Charter and the continued reduction in AMC Charter cargo volumes.
'Reflecting our global market leadership in outsourced aircraft assets and services, we have developed several new strategic customer relationships since the first quarter of 2013 that have enhanced the resilience of our business model. 'In ACMI, these include
Separately, the company today announced the placement of two 747-8 freighters in
Increased revenues and profitability in our
In AMC Charter, lower cargo demand led to a decline in segment revenues and contribution. Segment results in Commercial Charter reflected the seasonal nature of this business, the deployment of additional aircraft into the segment and an increase in flying to more expensive locations, partially offset by an increase in block-hour volumes.
Reported earnings for the first quarter of 2014 included an effective income tax rate of 38.7%, reflecting losses associated with
The change in position reflected cash provided by operating and financing activities offset by cash used for investing activities.
Net cash used for investing activities during the first quarter of 2014 primarily related to the purchase of three 777F aircraft for our
Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the acquisitions of these aircraft. Those proceeds were partially offset by payments on debt obligations and debt issuance costs.
We are encouraged by our first-quarter performance and the positive direction of market trends so far in 2014, but we are maintaining our earnings outlook for the full year.
Airfreight volumes are improving, and recent forecasts suggest that airfreight demand will grow by a few percentage points in 2014 - the first real growth after three essentially flat years. Forecast airfreight yields continue to lag behind, however.
With still limited visibility into second-half airfreight market demand and yields, we continue to expect results in 2014 to approximate 2013, excluding an expected decline in our AMC Charter operations as we have previously discussed.
On a per share basis, earnings in the second quarter of this year should be similar to or slightly higher than our adjusted first-quarter earnings. As the majority of our earnings are typically generated in the second half of the year, we expect to update our expectations as the year progresses.
For the full year, we expect total block hours to be a few percentage points lower than 2013 block hours, with more than 70% in
We remain confident in the resilience of our business model and our ability to leverage the scale and efficiencies in our operations. The business initiatives we have undertaken and the investments we have made have transformed the company to deliver meaningful earnings in any environment.
Should 2014 be the inflection point when growth returns to commercial airfreight and yields improve, our business initiatives and the investments we have made have positioned Atlas to be one of the prime beneficiaries.
Management will host a conference call to discuss
For those unable to listen to the live call, a replay will be available on the above Web sites following the call. A replay will also be available through
About Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with U.S. GAAP, we present certain non-GAAP financial measures to assist in the evaluation of our business performance. These non-GAAP measures include EBITDAR, as adjusted; EBITDA, as adjusted; Direct Contribution; Adjusted Net Income Attributable to Common Stockholders; Adjusted Diluted EPS and Free Cash Flow, which exclude certain items. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP.
Our management uses these non-GAAP financial measures in assessing the performance of the Company's ongoing operations and in planning and forecasting future periods. We believe that these adjusted measures provide meaningful information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance.
Atlas, Titan and Polar offer a range of outsourced aircraft and aviation operating services that include
This release contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect
Factors that could cause actual results to differ materially from these forward-looking statements 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 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
For additional information, we refer you to the risk factors set forth under the heading 'Risk Factors' in the most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q filed by
Except as stated in this release,
Tel: +1 914 701 8200
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