Atlas Air Worldwide Q4 Profit Down, But Results Top Estimates - Quick Facts

(RTTNews) - Atlas Air Worldwide Holdings Inc. (AAWW) said that its fourth-quarter 2013 net income attributable to common stockholders totaled $30.0 million, or $1.19 per share, down from $52.4 million or $1.97 per share in the fourth quarter of 2012.

Reported fourth-quarter results included a special charge of $18.6 million, primarily related to a lease termination charge for the two 747-400BCFs parked in December.

Reported earnings for the fourth quarter of 2013 also included an effective income tax rate of 30.7%, reflecting the ongoing beneficial impact of lower taxes for certain foreign subsidiaries in our Dry Leasing business.

Quarterly adjusted net income attributable to common stockholders declined to $41.8 million or $1.66 per share, from $48.7 million or $1.83 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.43 per share for the quarter. Analysts' estimates typically exclude special items.

Total operating revenue for the quarter rose to $470.60 million from $452.77 million in the prior year quarter. Seven analysts had consensus revenue estimate of $ 433.64 million for the quarter.

"Earnings in the fourth quarter of 2013 were led by our ACMI operations, a strong contribution by our Commercial Charter segment, which reported a profit for the full year, and growth in our Dry Leasing business," said William J. Flynn, President and Chief Executive Officer. "Results were also affected by a substantial reduction in AMC Charter volumes and segment contribution, reflecting lower demand levels than previously forecast by the military.

The company said it enter 2014 confident about the resilience of its business model and its ability to leverage the scale and efficiencies in its operations. Reflecting the business initiatives it has undertaken and the investments it has made, it has transformed the company to deliver meaningful earnings in any environment.

The company said its current outlook reflects two primary considerations.

One, as U.S. military activities overseas are scaled down, the military's demand for outsourced airlift, particularly cargo airfreight, also declines. The company's most recent indication is that the decline will be steeper and faster than previously forecasted by the military. For 2014, the firm estimates that this decline will reduce earnings by approximately $0.70 per share from 2013 levels.

Two, global airfreight volumes have been essentially flat for the last three years. Atlas has remained healthy and profitable throughout this period by capitalizing on strategic initiatives to strengthen and diversify its business mix; generate operating efficiencies and continuous improvement gains; and enhance its portfolio of assets and services.

Should 2014 be the inflection point when growth returns to commercial airfreight, our business initiatives and the investments we have made have positioned Atlas to be one of the prime beneficiaries. If 2014 remains flat, the firm expects results to approximate 2013, excluding the $0.70 per share decline in AMC Charter.