Atlas Air Worldwide Holdings Inc (AAWW) saw its loss narrow to $7.95 million, or $0.32 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $12.75 million, or $0.51 a share.
Revenue during the quarter went down marginally by 0.42 percent to $448.02 million from $449.90 million in the previous year period. Gross margin for the quarter expanded 322 basis points over the previous year period to 66.32 percent. Total expenses were 94.20 percent of quarterly revenues, up from 89.11 percent for the same period last year. That has resulted in a contraction of 509 basis points in operating margin to 5.80 percent.
Operating income for the quarter was $26 million, compared with $49 million in the previous year period.
However, the adjusted operating income for the quarter stood at $56.62 million compared to $59.01 million in the prior year period. At the same time, adjusted operating margin contracted 48 basis points in the quarter to 12.64 percent from 13.12 percent in the last year period.
“During the third quarter, we continued to focus on increasing our alignment with the faster-growing express and e-commerce markets,” said William J. Flynn, president and chief executive pfficer.
Operating cash flow drops significantly
Atlas Air Worldwide Holdings Inc has generated cash of $100.84 million from operating activities during the nine month period, down 62.07 percent or $165 million, when compared with the last year period.
The company has spent $374.54 million cash to meet investing activities during the nine month period as against cash outgo of $6.22 million in the last year period.
The company has spent $51.59 million cash to carry out financing activities during the nine month period as against cash outgo of $181.53 million in the last year period.
Cash and cash equivalents stood at $100.67 million as on Sep. 30, 2016, down 73.28 percent or $276.02 million from $376.70 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Atlas Air Worldwide Holdings Inc has turned negative to $215.97 million on Sep. 30, 2016 from positive $165.69 million on Sep. 30, 2015. Current ratio was at 0.60 as on Sep. 30, 2016, down from 1.35 on Sep. 30, 2015.
Days sales outstanding went down to 32 days for the quarter compared with 33 days for the same period last year.
At the same time, days payable outstanding was almost stable at 27 days for the quarter, when compared with the previous year period.
Debt moves up marginally
Atlas Air Worldwide Holdings Inc has witnessed an increase in total debt over the last one year. It stood at $1,872.64 million as on Sep. 30, 2016, up 4.33 percent or $77.80 million from $1,794.84 million on Sep. 30, 2015. Total debt was 44.94 percent of total assets as on Sep. 30, 2016, compared with 44.56 percent on Sep. 30, 2015. Debt to equity ratio was at 1.26 as on Sep. 30, 2016, up from 1.21 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 1.22 for the quarter from 2.22 for the same period last year.
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