10-Q 1 aaww-20220630.htm 10-Q 10-Q
false0Q200011351850--12-310001135185aaww:CMIOperationMember2022-06-300001135185aaww:BrazilianCustomsClaimMember2022-01-012022-06-300001135185aaww:DryLeasingMember2021-01-012021-06-3000011351852022-03-310001135185aaww:DryLeasingJointVentureMember2022-01-012022-06-300001135185aaww:DHLMember2022-01-012022-06-3000011351852022-02-280001135185us-gaap:AdditionalPaidInCapitalMember2020-12-310001135185aaww:DeferredTaxLiabilitiesMember2022-01-010001135185aaww:BrazilianCustomsClaimMember2021-12-310001135185aaww:CargoMemberaaww:AirlineOperationsMember2022-01-012022-06-300001135185aaww:TwoThousandSeventeenConvertibleNotesMemberus-gaap:WarrantMember2022-06-300001135185aaww:CMIOperationMember2019-03-310001135185us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300001135185aaww:AirlineOperationsMemberus-gaap:PassengerMember2021-04-012021-06-300001135185us-gaap:AdditionalPaidInCapitalMember2021-12-310001135185us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-06-300001135185us-gaap:RetainedEarningsMember2021-04-012021-06-300001135185us-gaap:TreasuryStockMember2020-12-310001135185us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001135185us-gaap:RetainedEarningsMember2022-01-012022-06-300001135185srt:MaximumMember2019-03-012019-03-310001135185us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300001135185aaww:AMCCharterMemberaaww:AirlineOperationsMember2021-01-012021-06-300001135185us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-06-300001135185us-gaap:RevolvingCreditFacilityMember2021-12-310001135185aaww:WarrantAMember2016-05-012016-05-310001135185aaww:AMCCharterMemberaaww:AirlineOperationsMemberus-gaap:PassengerMember2021-04-012021-06-300001135185aaww:WarrantCMember2022-06-300001135185us-gaap:TreasuryStockMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310001135185us-gaap:WarrantMember2021-04-012021-06-300001135185us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310001135185aaww:AirlineOperationsMember2021-04-012021-06-300001135185us-gaap:TreasuryStockMember2021-12-310001135185aaww:WarrantBMember2022-01-012022-06-300001135185aaww:PolarMemberaaww:DHLMember2022-06-300001135185us-gaap:RevolvingCreditFacilityMember2022-06-300001135185srt:MaximumMemberaaww:WarrantCMember2019-03-012019-03-310001135185us-gaap:WarrantMember2022-04-012022-06-300001135185srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310001135185us-gaap:CommonStockMember2020-12-310001135185us-gaap:CommonStockMember2022-03-310001135185us-gaap:RevolvingCreditFacilityMember2016-01-012016-12-310001135185aaww:SevenFourSevenEightFTermLoanMember2022-04-012022-04-300001135185aaww:NonDryLeaseRevenueContractsWithCustomersMember2021-12-310001135185us-gaap:RetainedEarningsMember2020-12-310001135185aaww:CargoMemberaaww:AirlineOperationsMember2022-04-012022-06-300001135185us-gaap:CommonStockMember2021-06-300001135185aaww:SouthernAirMember2022-01-012022-06-300001135185aaww:WarrantBMember2022-06-300001135185aaww:WarrantCMember2022-01-012022-06-3000011351852021-01-012021-12-310001135185us-gaap:AdditionalPaidInCapitalMember2022-06-300001135185us-gaap:CommonStockMember2022-06-300001135185aaww:CargoMemberaaww:AMCCharterMemberaaww:AirlineOperationsMember2022-01-012022-06-300001135185us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001135185us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-06-300001135185us-gaap:ConvertibleDebtMember2022-01-012022-06-300001135185aaww:AirlineOperationsMemberus-gaap:PassengerMember2022-01-012022-06-300001135185us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001135185us-gaap:TreasuryStockMember2022-03-3100011351852022-04-012022-06-300001135185us-gaap:AdditionalPaidInCapitalMember2022-03-310001135185aaww:AcceleratedShareRepurchaseProgramMember2022-02-012022-02-280001135185us-gaap:CommonStockMember2021-12-310001135185aaww:WarrantAMember2016-05-310001135185aaww:AcceleratedShareRepurchaseProgramMember2022-04-300001135185aaww:TwoThousandSeventeenConvertibleNotesMember2017-05-012017-05-310001135185aaww:BrazilianCustomsClaimMember2022-06-300001135185us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300001135185us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberaaww:PartsJointVentureMember2022-06-300001135185us-gaap:FairValueInputsLevel3Member2021-12-310001135185aaww:PolarMember2022-06-3000011351852021-03-310001135185us-gaap:CommonStockMember2021-03-310001135185aaww:AtlasAndPolarDispatchersMember2022-01-012022-06-300001135185aaww:SevenFourSevenEightFTermLoanMember2022-01-012022-06-300001135185us-gaap:RetainedEarningsMember2021-01-012021-06-300001135185aaww:DryLeasingMember2022-01-012022-06-300001135185us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberaaww:PartsJointVentureMember2021-12-310001135185aaww:Aircraft7478FAnd777200LrfMembersrt:ScenarioForecastMember2022-01-012022-12-310001135185us-gaap:FairValueInputsLevel1Member2021-12-310001135185aaww:UnitedStatesDepartmentOfTreasuryMembersrt:MaximumMemberaaww:PayrollSupportProgramAgreementMember2022-06-300001135185aaww:AirlineOperationsMember2021-01-012021-06-300001135185us-gaap:AdditionalPaidInCapitalMember2021-03-310001135185us-gaap:TreasuryStockMember2021-01-012021-06-300001135185aaww:DryLeasingMember2021-04-012021-06-300001135185aaww:SevenFourSevenEightFTermLoanMember2022-05-310001135185us-gaap:TreasuryStockMember2022-06-300001135185us-gaap:ConvertibleDebtMember2022-01-012022-03-310001135185aaww:PolarMember2022-04-012022-06-300001135185aaww:AcceleratedShareRepurchaseProgramMember2022-02-280001135185aaww:TwoThousandFifteenConvertibleNotesMember2015-06-300001135185us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001135185aaww:AirlineOperationsMemberus-gaap:PassengerMemberaaww:CommercialCustomersMember2022-01-012022-06-300001135185aaww:AMCCharterMemberaaww:AirlineOperationsMember2021-04-012021-06-3000011351852022-06-300001135185us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-300001135185us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-06-300001135185aaww:AMCCharterMemberaaww:AirlineOperationsMemberus-gaap:PassengerMember2022-04-012022-06-300001135185us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001135185aaww:DryLeasingJointVentureMember2019-12-012019-12-310001135185us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310001135185aaww:AirlineOperationsMemberaaww:CommercialCustomersMember2021-04-012021-06-300001135185aaww:AirlineOperationsMemberaaww:CommercialCustomersMember2021-01-012021-06-300001135185aaww:AcceleratedShareRepurchaseProgramMember2022-04-012022-04-300001135185us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001135185aaww:CMIOperationMember2022-01-012022-06-3000011351852021-06-300001135185aaww:AirlineOperationsMemberaaww:CommercialCustomersMember2022-01-012022-06-300001135185aaww:TwoThousandFifteenConvertibleNotesMemberus-gaap:ConvertibleDebtMember2022-06-010001135185srt:MaximumMemberaaww:WarrantBMember2016-05-012016-05-310001135185aaww:PolarMember2021-01-012021-06-300001135185srt:ParentCompanyMemberaaww:MergerAgreementMemberus-gaap:SubsequentEventMember2022-08-040001135185us-gaap:FairValueInputsLevel1Member2022-06-300001135185aaww:AirlineOperationsMemberus-gaap:PassengerMemberaaww:CommercialCustomersMember2022-04-012022-06-300001135185aaww:PolarMember2021-12-310001135185aaww:DHLMember2021-04-012021-06-300001135185aaww:AirlineOperationsMember2022-04-012022-06-300001135185us-gaap:CommonStockMember2021-01-012021-06-300001135185us-gaap:RevolvingCreditFacilityMember2016-12-310001135185aaww:UnitedStatesDepartmentOfTreasuryMemberaaww:PayrollSupportProgramAgreementMember2020-05-012020-05-310001135185us-gaap:TreasuryStockMember2022-01-012022-06-300001135185us-gaap:CommonStockMember2022-04-012022-06-300001135185aaww:DHLMember2021-01-012021-06-300001135185us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001135185us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001135185aaww:UnitedStatesDepartmentOfTreasuryMemberaaww:PayrollSupportProgramAgreementMember2022-06-300001135185aaww:CargoMemberaaww:AirlineOperationsMember2021-04-012021-06-300001135185aaww:Aircraft777200LrfMember2021-12-012021-12-310001135185us-gaap:TreasuryStockMember2021-06-300001135185us-gaap:RetainedEarningsMember2022-01-010001135185aaww:CargoMemberaaww:AirlineOperationsMember2021-01-012021-06-300001135185us-gaap:OtherNonoperatingIncomeExpenseMemberaaww:PayrollSupportProgramAgreementMemberus-gaap:GrantMember2021-01-012021-06-300001135185us-gaap:TreasuryStockMember2021-03-310001135185aaww:NonDryLeaseRevenueContractsWithCustomersMember2022-01-012022-06-300001135185aaww:AirlineOperationsMember2022-01-012022-06-300001135185aaww:AMCCharterMemberaaww:AirlineOperationsMember2022-01-012022-06-3000011351852021-12-310001135185us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001135185aaww:AirlineOperationsMemberus-gaap:PassengerMember2021-01-012021-06-300001135185us-gaap:AccumulatedTranslationAdjustmentMember2021-12-3100011351852022-07-300001135185us-gaap:ConvertibleDebtMember2021-04-012021-06-300001135185us-gaap:CommonStockMember2021-04-012021-06-300001135185aaww:UnitedStatesDepartmentOfTreasuryMemberaaww:PayrollSupportProgramAgreementMember2022-01-012022-06-300001135185us-gaap:WarrantMember2021-01-012021-06-300001135185aaww:DryLeasingJointVentureMember2021-01-012021-06-300001135185us-gaap:RetainedEarningsMember2021-03-3100011351852020-12-310001135185aaww:TwoThousandFifteenConvertibleNotesMemberus-gaap:ConvertibleDebtMember2015-06-012015-06-300001135185aaww:AtlasPilotsMember2022-01-012022-06-300001135185aaww:AirlineOperationsMemberus-gaap:PassengerMemberaaww:CommercialCustomersMember2021-04-012021-06-300001135185us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-3000011351852021-04-012021-06-300001135185aaww:TwoThousandFifteenConvertibleNotesMember2015-06-012015-06-300001135185aaww:CargoMemberaaww:AMCCharterMemberaaww:AirlineOperationsMember2021-01-012021-06-300001135185aaww:CargoMemberaaww:AirlineOperationsMemberaaww:CommercialCustomersMember2021-04-012021-06-300001135185aaww:AirlineOperationsMemberus-gaap:PassengerMember2022-04-012022-06-300001135185us-gaap:TreasuryStockMember2022-04-012022-06-300001135185us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001135185aaww:CertainSpareCF680EnginesMember2021-12-310001135185aaww:CargoMemberaaww:AirlineOperationsMemberaaww:CommercialCustomersMember2022-01-012022-06-300001135185aaww:PolarMember2022-01-012022-06-300001135185aaww:NonDryLeaseRevenueContractsWithCustomersMember2022-06-300001135185us-gaap:RevolvingCreditFacilityMember2021-01-012021-12-310001135185aaww:PolarAirCargoWorldwideIncMember2022-01-012022-06-300001135185us-gaap:TreasuryStockMember2021-04-012021-06-300001135185aaww:TwoThousandSeventeenConvertibleNotesMember2017-05-310001135185aaww:CargoMemberaaww:AirlineOperationsMemberaaww:CommercialCustomersMember2021-01-012021-06-300001135185us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberaaww:PartsJointVentureMember2022-01-012022-06-300001135185aaww:CertainSpareCF680EnginesMember2022-01-012022-06-300001135185us-gaap:RetainedEarningsMember2022-04-012022-06-300001135185aaww:AMCCharterMemberaaww:AirlineOperationsMember2022-04-012022-06-300001135185us-gaap:WarrantMember2022-01-012022-06-300001135185aaww:DHLMember2022-04-012022-06-300001135185us-gaap:AccumulatedTranslationAdjustmentMember2022-06-300001135185aaww:DryLeasingJointVentureMember2022-04-012022-06-300001135185us-gaap:ConvertibleDebtMember2022-04-012022-06-300001135185us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-06-300001135185aaww:DryLeasingJointVentureMember2021-04-012021-06-300001135185aaww:SevenFourSevenEightFTermLoanMember2022-04-300001135185aaww:PolarAirCargoWorldwideIncMember2022-06-300001135185aaww:CMIOperationMember2019-03-012019-03-310001135185srt:MaximumMemberaaww:DryLeasingJointVentureMember2022-06-300001135185aaww:WarrantAMember2022-01-012022-06-300001135185us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberaaww:PartsJointVentureMember2021-01-012021-12-310001135185aaww:AMCCharterMemberaaww:AirlineOperationsMemberus-gaap:PassengerMember2022-01-012022-06-300001135185aaww:PolarMember2021-04-012021-06-300001135185aaww:WarrantBMember2016-05-310001135185us-gaap:AdditionalPaidInCapitalMember2021-06-300001135185aaww:CertainSpareCF680EnginesMemberaaww:PrepaidExpenseAssetsHeldForSaleAndOtherCurrentAssetsMember2021-12-310001135185aaww:Aircraft7478FAnd777200LrfMembersrt:ScenarioForecastMember2023-01-012023-12-310001135185us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310001135185aaww:TwoThousandSeventeenConvertibleNotesMember2022-01-012022-06-300001135185us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-06-300001135185us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001135185us-gaap:RetainedEarningsMember2021-06-300001135185aaww:CertainSpareCF680EnginesMember2022-06-300001135185us-gaap:RetainedEarningsMember2021-12-3100011351852022-01-010001135185us-gaap:CommonStockMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-3100011351852022-03-012022-03-310001135185us-gaap:ConvertibleDebtMember2021-01-012021-06-300001135185aaww:DryLeasingJointVentureMember2021-12-310001135185us-gaap:AdditionalPaidInCapitalMember2022-01-010001135185aaww:AMCCharterMemberaaww:AirlineOperationsMemberus-gaap:PassengerMember2021-01-012021-06-300001135185aaww:Aircraft7478FMember2021-01-012021-01-310001135185aaww:TwoThousandFifteenConvertibleNotesMemberus-gaap:ConvertibleDebtMember2022-05-312022-06-010001135185aaww:DryLeasingMember2022-04-012022-06-300001135185aaww:AMCCharterMemberaaww:CargoMemberaaww:AirlineOperationsMember2021-04-012021-06-300001135185aaww:TwoThousandSeventeenConvertibleNotesMember2022-06-300001135185aaww:AirlineOperationsMemberaaww:CommercialCustomersMember2022-04-012022-06-300001135185us-gaap:CommonStockMember2022-01-012022-06-300001135185aaww:WarrantBMember2016-05-012016-05-310001135185us-gaap:RetainedEarningsMember2022-06-300001135185us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300001135185aaww:AirlineOperationsMemberus-gaap:PassengerMemberaaww:CommercialCustomersMember2021-01-012021-06-300001135185aaww:WarrantCMember2019-03-012019-03-310001135185us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001135185aaww:CargoMemberaaww:AirlineOperationsMemberaaww:CommercialCustomersMember2022-04-012022-06-300001135185us-gaap:RetainedEarningsMember2022-03-310001135185us-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-3000011351852021-01-012021-06-300001135185us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-3100011351852022-01-012022-06-300001135185aaww:PolarMemberaaww:DHLMember2022-01-012022-06-300001135185aaww:WarrantCMember2019-03-310001135185us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-06-300001135185aaww:AMCCharterMemberaaww:CargoMemberaaww:AirlineOperationsMember2022-04-012022-06-300001135185us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310001135185us-gaap:FairValueInputsLevel3Member2022-06-300001135185aaww:DryLeasingJointVentureMember2022-06-300001135185aaww:DryLeasesMember2022-06-30aaww:Enginexbrli:pureaaww:Aircraftssaaww:Subsidiaryxbrli:sharesaaww:Daysaaww:Segmentiso4217:USDiso4217:USDxbrli:shares

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-16545

 

img197048590_0.jpg 

Atlas Air Worldwide Holdings, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

13-4146982

(State or other jurisdiction of incorporation)

 

(IRS Employer Identification No.)

 

 

 

2000 Westchester Avenue, Purchase, New York

 

10577

(Address of principal executive offices)

 

(Zip Code)

 

(914) 701-8000

(Registrant’s telephone number, including area code)

 

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.01 Par Value

 

AAWW

 

The NASDAQ Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

As of July 30, 2022, there were 28,321,763 shares of the registrant’s Common Stock outstanding.

 

 

 


 

TABLE OF CONTENTS

 

 

 

 

 

Page

 

 

 

Part I. FINANCIAL INFORMATION

 

3

 

 

 

 

 

Item 1.

 

Financial Statements

 

3

 

 

 

 

 

 

 

Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (unaudited)

 

3

 

 

 

 

 

 

 

Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021 (unaudited)

 

4

 

 

 

 

 

 

 

Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2022 and 2021 (unaudited)

 

5

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 (unaudited)

 

6

 

 

 

 

 

 

 

Consolidated Statements of Stockholders’ Equity as of and for the Three and Six Months Ended June 30, 2022 and 2021 (unaudited)

 

7

 

 

 

 

 

 

 

Notes to Unaudited Consolidated Financial Statements

 

8

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

20

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

33

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

33

 

 

 

PART II. OTHER INFORMATION

 

34

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

34

 

 

 

 

 

Item 1A.

 

Risk Factors

 

34

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

36

 

 

 

 

 

Item 6.

 

Exhibits

 

36

 

 

 

 

 

 

 

Exhibit Index

 

37

 

 

 

 

 

 

 

Signatures

 

38

 

 


 

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Atlas Air Worldwide Holdings, Inc.

Consolidated Balance Sheets

(in thousands, except share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Assets

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

606,567

 

 

$

910,965

 

Restricted cash

 

 

10,361

 

 

 

10,052

 

Accounts receivable, net of allowance of $3,929 and $4,003, respectively

 

 

279,033

 

 

 

305,905

 

Prepaid expenses, assets held for sale and other current assets

 

 

97,057

 

 

 

99,100

 

Total current assets

 

 

993,018

 

 

 

1,326,022

 

Property and Equipment

 

 

 

 

 

 

Flight equipment

 

 

5,752,365

 

 

 

5,449,100

 

Ground equipment

 

 

107,302

 

 

 

101,824

 

Less: accumulated depreciation

 

 

(1,415,347

)

 

 

(1,319,636

)

Flight equipment purchase deposits and modifications in progress

 

 

365,920

 

 

 

352,422

 

Property and equipment, net

 

 

4,810,240

 

 

 

4,583,710

 

Other Assets

 

 

 

 

 

 

Operating lease right-of-use assets

 

 

122,993

 

 

 

138,744

 

Deferred costs and other assets

 

 

310,976

 

 

 

329,971

 

Intangible assets, net and goodwill

 

 

61,781

 

 

 

64,796

 

Total Assets

 

$

6,299,008

 

 

$

6,443,243

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

83,771

 

 

$

82,885

 

Accrued liabilities

 

 

654,498

 

 

 

641,978

 

Current portion of long-term debt and finance leases

 

 

355,595

 

 

 

639,811

 

Current portion of long-term operating leases

 

 

55,138

 

 

 

55,383

 

Total current liabilities

 

 

1,149,002

 

 

 

1,420,057

 

Other Liabilities

 

 

 

 

 

 

Long-term debt and finance leases

 

 

1,720,082

 

 

 

1,655,075

 

Long-term operating leases

 

 

138,704

 

 

 

166,022

 

Deferred taxes

 

 

397,890

 

 

 

354,798

 

Financial instruments and other liabilities

 

 

28,764

 

 

 

37,954

 

Total other liabilities

 

 

2,285,440

 

 

 

2,213,849

 

Commitments and contingencies

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued

 

 

-

 

 

 

-

 

Common stock, $0.01 par value; 100,000,000 shares authorized;
    
35,227,975 and 34,707,860 shares issued, 28,320,835 and 29,215,702
    shares outstanding (net of treasury stock), as of June 30, 2022
    and December 31, 2021, respectively

 

 

352

 

 

 

347

 

Additional paid-in capital

 

 

863,014

 

 

 

934,516

 

Treasury stock, at cost; 6,907,140 and 5,492,158 shares, respectively

 

 

(337,635

)

 

 

(225,461

)

Accumulated other comprehensive income (loss)

 

 

75

 

 

 

(511

)

Retained earnings

 

 

2,338,760

 

 

 

2,100,446

 

Total stockholders’ equity

 

 

2,864,566

 

 

 

2,809,337

 

Total Liabilities and Equity

 

$

6,299,008

 

 

$

6,443,243

 

 

See accompanying Notes to Unaudited Consolidated Financial Statements

3


 

Atlas Air Worldwide Holdings, Inc.

Consolidated Statements of Operations

(in thousands, except per share data)

(Unaudited)

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30, 2022

 

 

June 30, 2021

 

 

June 30, 2022

 

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenue

 

$

1,179,971

 

 

$

990,432

 

 

$

2,217,127

 

 

$

1,851,732

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft fuel

 

 

385,882

 

 

 

214,269

 

 

 

630,219

 

 

 

377,820

 

Salaries, wages and benefits

 

 

285,906

 

 

 

208,366

 

 

 

583,925

 

 

 

410,980

 

Maintenance, materials and repairs

 

 

108,055

 

 

 

132,547

 

 

 

226,954

 

 

 

253,680

 

Depreciation and amortization

 

 

74,358

 

 

 

66,661

 

 

 

146,560

 

 

 

134,450

 

Travel

 

 

52,719

 

 

 

39,947

 

 

 

95,487

 

 

 

77,619

 

Navigation fees, landing fees and other rent

 

 

39,091

 

 

 

47,409

 

 

 

78,445

 

 

 

92,296

 

Passenger and ground handling services

 

 

34,747

 

 

 

41,504

 

 

 

69,683

 

 

 

81,569

 

Aircraft rent

 

 

12,613

 

 

 

17,687

 

 

 

25,608

 

 

 

38,443

 

Loss (gain) on disposal of flight equipment

 

 

19

 

 

 

-

 

 

 

(6,221

)

 

 

16

 

Special charge

 

 

-

 

 

 

-

 

 

 

2,633

 

 

 

-

 

Transaction-related expenses

 

 

-

 

 

 

117

 

 

 

-

 

 

 

318

 

Other

 

 

54,435

 

 

 

61,848

 

 

 

110,292

 

 

 

120,260

 

Total Operating Expenses

 

 

1,047,825

 

 

 

830,355

 

 

 

1,963,585

 

 

 

1,587,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

 

132,146

 

 

 

160,077

 

 

 

253,542

 

 

 

264,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating Expenses (Income)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

(873

)

 

 

(189

)

 

 

(1,113

)

 

 

(400

)

Interest expense

 

 

19,924

 

 

 

26,992

 

 

 

40,347

 

 

 

54,172

 

Capitalized interest

 

 

(3,339

)

 

 

(1,850

)

 

 

(7,103

)

 

 

(3,121

)

Loss on early extinguishment of debt

 

 

689

 

 

 

-

 

 

 

689

 

 

 

-

 

Unrealized loss on financial instruments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

113

 

Other (income) expense, net

 

 

837

 

 

 

(4,854

)

 

 

219

 

 

 

(44,310

)

Total Non-operating Expenses (Income)

 

 

17,238

 

 

 

20,099

 

 

 

33,039

 

 

 

6,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

114,908

 

 

 

139,978

 

 

 

220,503

 

 

 

257,827

 

Income tax expense

 

 

26,650

 

 

 

32,868

 

 

 

50,734

 

 

 

60,784

 

Net Income

 

$

88,258

 

 

$

107,110

 

 

$

169,769

 

 

$

197,043

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

3.12

 

 

$

3.69

 

 

$

5.95

 

 

$

6.85

 

Diluted

 

$

2.65

 

 

$

3.53

 

 

$

5.03

 

 

$

6.59

 

Weighted average shares:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

28,243

 

 

 

29,011

 

 

 

28,547

 

 

 

28,752

 

Diluted

 

 

33,679

 

 

 

30,319

 

 

 

34,184

 

 

 

29,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to Unaudited Consolidated Financial Statements

4


 

Atlas Air Worldwide Holdings, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(Unaudited)

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30, 2022

 

 

June 30, 2021

 

 

June 30, 2022

 

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

88,258

 

 

$

107,110

 

 

$

169,769

 

 

$

197,043

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification to loss on early extinguishment of debt

 

 

639

 

 

 

-

 

 

 

639

 

 

 

-

 

Reclassification to interest expense

 

 

17

 

 

 

256

 

 

 

122

 

 

 

524

 

Income tax benefit

 

 

(148

)

 

 

(60

)

 

 

(175

)

 

 

(124

)

Other comprehensive income

 

 

508

 

 

 

196

 

 

 

586

 

 

 

400

 

Comprehensive Income

 

$

88,766

 

 

$

107,306

 

 

$

170,355

 

 

$

197,443

 

 

See accompanying Notes to Unaudited Consolidated Financial Statements

5


 

Atlas Air Worldwide Holdings, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

 

 

For the Six Months Ended

 

 

June 30, 2022

 

 

June 30, 2021

 

 

Operating Activities:

 

 

 

 

 

 

 

Net Income

 

$

169,769

 

 

$

197,043

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile Net Income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

172,449

 

 

 

172,216

 

 

Reversal of expected credit losses

 

 

(6

)

 

 

(381

)

 

Loss on early extinguishment of debt

 

 

689

 

 

 

-

 

 

Special charge

 

 

2,633

 

 

 

-

 

 

Unrealized loss on financial instruments

 

 

-

 

 

 

113

 

 

Loss (gain) on disposal of flight equipment

 

 

(6,221

)

 

 

16

 

 

Deferred taxes

 

 

49,981

 

 

 

60,086

 

 

Stock-based compensation

 

 

5,656

 

 

 

7,466

 

 

Changes in:

 

 

 

 

 

 

 

Accounts receivable

 

 

28,676

 

 

 

(24,730

)

 

Prepaid expenses, current assets and other assets

 

 

(15,806

)

 

 

(12,452

)

 

Accounts payable, accrued liabilities and other liabilities

 

 

18,168

 

 

 

(56,271

)

 

Net cash provided by operating activities

 

 

425,988

 

 

 

343,106

 

 

Investing Activities:

 

 

 

 

 

 

 

Capital expenditures

 

 

(54,193

)

 

 

(43,359

)

 

Purchase deposits and payments for flight equipment and modifications

 

 

(329,774

)

 

 

(224,922

)

 

Investment in joint ventures

 

 

(5,288

)

 

 

(1,636

)

 

Proceeds from disposal of flight equipment

 

 

13,500

 

 

 

1,850

 

 

Net cash used for investing activities

 

 

(375,755

)

 

 

(268,067

)

 

Financing Activities:

 

 

 

 

 

 

 

Proceeds from debt issuance

 

 

230,000

 

 

 

23,948

 

 

Payment of debt issuance costs

 

 

(2,176

)

 

 

(1,257

)

 

Payments of debt and finance lease obligations

 

 

(478,940

)

 

 

(171,223

)

 

Purchase of treasury stock

 

 

(100,000

)

 

 

-

 

 

Customer maintenance reserves and deposits received

 

 

8,859

 

 

 

9,029

 

 

Customer maintenance reserves paid

 

 

-

 

 

 

(23,932

)

 

Treasury shares withheld for payment of taxes

 

 

(12,065

)

 

 

(7,432

)

 

Net cash used for financing activities

 

 

(354,322

)

 

 

(170,867

)

 

Net decrease in cash, cash equivalents and restricted cash

 

 

(304,089

)

 

 

(95,828

)

 

Cash, cash equivalents and restricted cash at the beginning of period

 

 

921,017

 

 

 

856,281

 

 

Cash, cash equivalents and restricted cash at the end of period

 

$

616,928

 

 

$

760,453

 

 

 

 

 

 

 

 

 

 

Noncash Investing and Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of property and equipment included in Accounts payable and accrued liabilities

 

$

-

 

 

$

7,928

 

 

Acquisition of property and equipment acquired under operating leases

 

$

488

 

 

$

8,875

 

 

Acquisition of flight equipment under finance leases

 

$

3,154

 

 

$

121,313

 

 

Issuance of shares related to settlement of warrant liability

 

$

-

 

 

$

31,582

 

 

Issuance of shares related to settlement of convertible notes

 

$

7,901

 

 

$

-