Atlas Air Worldwide Holdings (AAWW) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $28.42 million, or $ 1.11 a share in the quarter, against a net loss of $37.58 million, or $1.53 a share in the last year period.
Revenue during the quarter grew 12.21 percent to $529.72 million from $472.08 million in the previous year period. Gross margin for the quarter expanded 444 basis points over the previous year period to 68.73 percent. Operating margin for the quarter period stood at positive 19.15 percent as compared to a negative 9.27 percent for the previous year period.
Operating income for the quarter was $101.43 million, compared with an operating loss of $43.74 million in the previous year period.
However, the adjusted operating income for the quarter stood at $103.53 million compared to $73.74 million in the prior year period. At the same time, adjusted operating margin improved 392 basis points in the quarter to 19.54 percent from 15.62 percent in the last year period.
"2016 was a historic year for Atlas, and we finished it on a strong note," said William J. Flynn, president and chief executive officer. "We acquired Southern Air, expanding the array of aircraft and services that we provide, especially to the fast-growing express market. We entered into strategic, long-term agreements with Amazon to serve its rapidly growing e-commerce business. And we generated strong sequential and year-over-year improvements in our block-hour volumes, revenue, profitability and margins in the fourth quarter. In addition to record revenues in the quarter, we delivered a significant increase in reported earnings and record adjusted earnings for the period.
Operating cash flow drops significantlyAtlas Air Worldwide Holdings has generated cash of $232.18 million from operating activities during the year, down 37.73 percent or $140.70 million, when compared with the last year. The company has spent $457.39 million cash to meet investing activities during the year as against cash outgo of $166.34 million in the last year.
The company has spent $75.48 million cash to carry out financing activities during the year as against cash outgo of $80.49 million in the last year period.
Cash and cash equivalents stood at $123.89 million as on Dec. 31, 2016, down 70.91 percent or $302.06 million from $425.95 million on Dec. 31, 2015.
Working capital turns negative
Working capital of Atlas Air Worldwide Holdings has turned negative to $207.11 million on Dec. 31, 2016 from positive $103.71 million on Dec. 31, 2015. Current ratio was at 0.63 as on Dec. 31, 2016, down from 1.19 on Dec. 31, 2015.
Debt comes down marginallyAtlas Air Worldwide Holdings has recorded a decline in total debt over the last one year. It stood at $1,851.41 million as on Dec. 31, 2016, down 2.62 percent or $49.90 million from $1,901.31 million on Dec. 31, 2015. Total debt was 43.59 percent of total assets as on Dec. 31, 2016, compared with 45.66 percent on Dec. 31, 2015. Debt to equity ratio was at 1.22 as on Dec. 31, 2016, down from 1.31 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
