AMR Corp. (AMR, Financial) filed Quarterly Report for the period ended 2010-09-30.
Amr Corp. has a market cap of $2.17 billion; its shares were traded at around $6.52 with and P/S ratio of 0.1. AMR is in the portfolios of David Tepper of APPALOOSA MANAGEMENT LP, PRIMECAP Management, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Bruce Kovner of Caxton Associates, Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
As of September 30, 2010, the Company is required to make scheduled principal payments of approximately $263 million on long-term debt and approximately $8 million in payments on capital leases, and the Company expects to spend approximately $629 million on capital expenditures, including aircraft commitments, for the remainder of 2010. The Company plans to meet these obligations and its other obligations with a combination of internally generated cash and external funding. However, the Companys funding needs are subject to change due to the protracted recovery from the global economic downturn, rising fuel prices, the possibility of being required to post reserves under credit card processing agreements, and the obligation to post cash collateral on fuel hedging contracts and fund pension plan contributions, among other things. These factors may in the future negatively impact the Companys liquidity.
As of September 30, 2010, payments for the above purchase commitments will approximate $488 million in the remainder of 2010, $883 million in 2011, $951 million in 2012, $557 million in 2013, $225 million in 2014, and $248 million for 2015 and beyond. These amounts are net of purchase deposits currently held by the manufacturers.
The Company is required to make minimum contributions to its defined benefit pension plans under the minimum funding requirements of ERISA, the Pension Funding Equity Act of 2004 and the Pension Protection Act of 2006. In June of 2010, President Obama signed the Relief Act into law. The Relief Act provides for temporary, targeted funding relief (subject to certain terms and conditions) for single employer and multiemployer pension plans that suffered significant losses in asset value due to the steep market slide in 2008. Under the Relief Act, the Companys 2010 minimum contribution to its defined benefit pension plans was reduced from $525 million to approximately $460 million, which has been completed as of the date of this filing. The Company estimates its 2011 minimum required contribution to its defined benefit pension plans to be approximately $520 million. This estimate is subject to change based on final plan asset values as of December 31, 2010.
At September 30, 2010, the Company had $4.6 billion in unrestricted cash and short-term investments, which is an increase of $158 million from the balance as of December 31, 2009. Net cash provided by operating activities in the nine-month period ended September 30, 2010 was $1.1 billion, which was comparable to $926 million over the same period in 2009, which reflects an improved operating environment in 2010.
The Companys revenues increased approximately $715 million, or 13.9 percent, to $5.8 billion in the third quarter of 2010 from the same period last year. Americans passenger revenues increased by 14.8 percent, or $573 million, on a 3.6 percent increase in capacity (available seat mile) (ASM). Americans passenger load factor remained static at 84.0 percent while passenger yield increased by 10.7 percent to 13.28 cents. This resulted in an increase in passenger revenue per available seat mile (RASM) of 10.7 percent to 11.15 cents. Following is additional information regarding Americans domestic and international RASM and capacity:
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Amr Corp. has a market cap of $2.17 billion; its shares were traded at around $6.52 with and P/S ratio of 0.1. AMR is in the portfolios of David Tepper of APPALOOSA MANAGEMENT LP, PRIMECAP Management, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Bruce Kovner of Caxton Associates, Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
The increases in comparative third quarter revenue were partially offset by a significant year-over-year increase in fuel prices from an average of $2.07 per gallon in the third quarter of 2009 to an average of $2.24 per gallon in the third quarter of 2010, including the effects of hedging. The price increase resulted in $123 million in incremental year-over-year fuel expense in the three months ended September 30, 2010 (based on the year-over-year increase in the average price per gallon multiplied by gallons consumed).As of September 30, 2010, the Company is required to make scheduled principal payments of approximately $263 million on long-term debt and approximately $8 million in payments on capital leases, and the Company expects to spend approximately $629 million on capital expenditures, including aircraft commitments, for the remainder of 2010. The Company plans to meet these obligations and its other obligations with a combination of internally generated cash and external funding. However, the Companys funding needs are subject to change due to the protracted recovery from the global economic downturn, rising fuel prices, the possibility of being required to post reserves under credit card processing agreements, and the obligation to post cash collateral on fuel hedging contracts and fund pension plan contributions, among other things. These factors may in the future negatively impact the Companys liquidity.
As of September 30, 2010, payments for the above purchase commitments will approximate $488 million in the remainder of 2010, $883 million in 2011, $951 million in 2012, $557 million in 2013, $225 million in 2014, and $248 million for 2015 and beyond. These amounts are net of purchase deposits currently held by the manufacturers.
The Company is required to make minimum contributions to its defined benefit pension plans under the minimum funding requirements of ERISA, the Pension Funding Equity Act of 2004 and the Pension Protection Act of 2006. In June of 2010, President Obama signed the Relief Act into law. The Relief Act provides for temporary, targeted funding relief (subject to certain terms and conditions) for single employer and multiemployer pension plans that suffered significant losses in asset value due to the steep market slide in 2008. Under the Relief Act, the Companys 2010 minimum contribution to its defined benefit pension plans was reduced from $525 million to approximately $460 million, which has been completed as of the date of this filing. The Company estimates its 2011 minimum required contribution to its defined benefit pension plans to be approximately $520 million. This estimate is subject to change based on final plan asset values as of December 31, 2010.
At September 30, 2010, the Company had $4.6 billion in unrestricted cash and short-term investments, which is an increase of $158 million from the balance as of December 31, 2009. Net cash provided by operating activities in the nine-month period ended September 30, 2010 was $1.1 billion, which was comparable to $926 million over the same period in 2009, which reflects an improved operating environment in 2010.
The Companys revenues increased approximately $715 million, or 13.9 percent, to $5.8 billion in the third quarter of 2010 from the same period last year. Americans passenger revenues increased by 14.8 percent, or $573 million, on a 3.6 percent increase in capacity (available seat mile) (ASM). Americans passenger load factor remained static at 84.0 percent while passenger yield increased by 10.7 percent to 13.28 cents. This resulted in an increase in passenger revenue per available seat mile (RASM) of 10.7 percent to 11.15 cents. Following is additional information regarding Americans domestic and international RASM and capacity:
Read the The complete Report
