Wednesday, Atlas Air Worldwide Holdings, Inc. (AAWW) reported a significant decrease in the fourth quarter profit, hurt by lower revenues which was affected by deconsolidation of Polar. However, both earnings and revenues came in ahead of Street expectations for the quarter. The company also provided earnings guidance for the fiscal 2010.
Atlas Air Worldwide's net income attributable to parent plunged to $28.3 million or $1.17 per share, from $62.3 million or $2.97 per share in the prior year quarter.
Results for the current quarter included a non-cash pretax special charge of $8.2 million associated with the retirement and impairment of 747-200 freighter assets.
Excluding these items, net income for the fourth quarter totaled $33.4 million or $1.38 per share, up from $29.6 million or $1.41 per share in the year-ago period.
On average, eight analysts polled by Thomson Reuters expected the company to report a profit of $1.02 per share for the quarter. Analysts' estimates typically exclude one-time items.
The Purchase, New York-based company's operating revenues for the fourth quarter was $321.6 million, down $335 million in the same quarter last year, mainly due to the deconsolidation of Polar, largely offset by a significant increase in Commercial Charter revenue. Analysts expected revenue of $257.52 million for the quarter.
AMC Charter revenues of $91.8 million, declined 8.8%, in the latest quarter due to a lower fuel component for the AMC mileage rate, partly offset by an increase in flying volumes. Commercial Charter revenues of $102.2 million increased 118.8%, while ACMI revenues of $123.3 million was almost flat compared to last year quarter. Dry Leasing revenues of $0.7 million was 94.5% lower than last year.
Total operating expenses declined to $269.4 million from $374.7 million with aircraft fuel expense down 29.5%, travel expense edging down 16.5%, other operating expenses declining 7.2% in the fourth quarter. Maintenance expense for the quarter increased 20.2% and labor expense was up 5.5% compared to last year quarter.
For the year, the company posted an increase in net income of $77.8 million or $3.56 per share from $63.7 million or $2.97 per share a year-ago. Results included a non-cash pretax special charge of $8.2 million, one-time pretax earnings benefits of $10.0 million, $2.7 million for a gain on the early extinguishment of debt, and $1.0 million for a gain on the sale of an aircraft and retired engines.
Excluding these items, net income surged to $74.4 million or $3.41 per share from $34.2 million or $1.59 per share last year. Revenue reported was $1.06 billion for the full year compared to $1.61 billion in the prior year.
Street analysts estimated earnings of $2.98 per share on revenue of $993.09 million for the fiscal 2009
Looking forward, for the fiscal 2010 the company projects net earnings of about $80 million or $3.08 per share. Atlas Air Worldwide also expect earnings in the first quarter to be consistent with first-quarter 2009 results, excluding special items.
Analysts expect earnings of $0.44 per share for the first quarter and $2.79 per share for the fiscal 2010.
AAWW is currently trading at $41.90, up $2.02 or 5.07% on a volume of 0.66 million shares on the Nasdaq.
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