Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW) Q3 2017 Earnings Conference Call - Final Transcript

Nov 07, 2017 • 11:00 am ET

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Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW) Q3 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter 2017 Earnings Call for Atlas Air Worldwide. [Operator Instructions]

Thank you. Atlas Air, you may begin your conference.

Executive
Edward McGarvey

Thank you, Sarah, and good morning, everyone. I am Ed McGarvey, Treasurer for Atlas Air Worldwide. Welcome to our third quarter 2017 results conference call. Today's call will be hosted by Bill Flynn, our Chief Executive Officer; and Spencer Schwartz, our Chief Financial Officer. As a reminder, today's call is complimented by slide presentation that can be viewed at atlasair.com. You may find the slides by clicking on the link to presentations in the investor information section of the site.

As indicated on Slide 2, we'd like to remind you that our discussion about the Company's performance today includes some forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events and expectations and they involve risks and uncertainties. Our actual results or actions may differ materially from those projected in any forward-looking statements.

For information about risk factors related to our business, please refer to our 2016 Form 10-K as amended or supplemented by our subsequently filed SEC reports. Any references to non-GAAP measures are meant to provide meaningful insights and are reconciled with GAAP in today's press release and in the Appendix that is attached to today's slides. You can also find these at atlasair.com.

During our question and answer period today, we'd like to ask participants to limit themselves to one principal question and one follow-up question, so that we may accommodate as many participants as possible. After we've gone through the queue, we'd be happy to answer any additional questions as time permits.

At this point, I'd like to draw your attention to Slide 3, and turn the call over to Bill Flynn.

Executive
William J. Flynn

Thank you, Ed, and good morning, everyone. Our third quarter saw continued good momentum in our business. Revenues and volumes grew significantly and direct contribution in each of our segments increased during the quarter. Yield in aircraft utilization also grew, reflecting the strong demand for our services. We believe the future for Atlas and for air freight is bright. Growth in Asia and an expansion of the global middle class are transforming the global economy. Increased disposable income will support a strong future for trade and the consumptions of goods. And our strategic focus on express and e-commerce as well as the faster growing Asian markets, positioned us for further business growth as we carry through the balance of this year into 2018 and beyond.

Moving to Slide 4, our third quarter earnings reflected a 20% increase in revenue, 20% increase in block hours, higher yields and enhanced aircraft utilization and higher direct contribution in all of our segments. In addition, we placed and began operating our seventh 767-300 aircraft for Amazon. We also introduced Aircraft 8, 9 and 10