AIR TRANS SVCS GROUPINC COM (ATSG, Financial) filed Quarterly Report for the period ended 2010-03-31.
Air Trans Svcs Groupinc Com has a market cap of $314.13 million; its shares were traded at around $4.95 with a P/E ratio of 9.52 and P/S ratio of 0.38. ATSG is in the portfolios of Mohnish Pabrai of Pabrai Mohnish, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.
Our pre-tax earnings from discontinued DHL operations were $0.6 million during the first quarter of 2010 compared to $4.6 million for the first quarter of 2009. The decline reflects the discontinuance of sorting operations for DHL in the third quarter of 2009. Our pre-tax earnings from the discontinued DHL operations for the first quarter of 2009 included $2.0 million from contractual cost mark-ups and $2.6 million for the reimbursement from DHL of employee vacation benefits that ABX paid to terminated employees under the S&R agreement. Our pre-tax earnings from the discontinued DHL operations for the first quarter of 2010 of $0.6 million resulted from the reimbursement from DHL of employee vacation benefits.
Consolidated net earnings from continuing operations decreased $1.4 million for the quarter ended March 31, 2010 compared to the corresponding 2009 quarter. Pre-tax earnings from CAM Leasing improved by $1.8 million during the quarter due to additional aircraft leases since the beginning of 2009. Pre-tax earnings from the DHL segment increased $0.2 million, compared to the first quarter of 2009 driven by higher negotiated mark-ups. Additionally, pre-tax earnings improved $0.4 million compared to the first quarter of 2009 due to lower non-reimbursed interest expense. Results for ACMI Services in 2010 negatively impacted consolidated pre-tax earnings. ACMI Services experienced losses on ABXs transatlantic scheduled service (until ABX transitioned to a standard ACMI agreement in February 2010), and higher aircraft maintenance expenses during the first quarter of 2010. As a result, pre-tax earnings from ACMI services declined $2.8 million in the first quarter of 2010 compared to the first quarter of 2009. Pre-tax earnings from other activities declined $2.0 million during the first quarter of 2010 compared to the first quarter of 2009, when sales of spare engines and parts were higher.
Net cash generated from operating activities was $53.4 million for the first three months of 2010 compared to $25.8 million in the first three months of 2009. The increase in operating cash flows was primarily driven by the collection of receivables due from DHL. We contributed $4.0 million to our pension plans in the first three months of 2010 and plan to contribute $36.1 million more during the remainder of 2010. In April 2010, $25.0 million of the $36.1 million was contributed to the ABX flight crew member pension trust in conjunction with amending the ABX pilot collective bargaining agreement.
Capital spending levels are primarily a result of aircraft modification costs. Cash payments for capital expenditures were $19.2 million in the first three months of 2010 compared to $10.0 million in the first three months of 2009. Capital expenditures in the first quarter of 2010 and 2009 included aircraft and cargo modification costs for three aircraft. Our capital expenditures for 2010 included $12.9 million for aircraft modifications, $5.0 million for required heavy maintenance and $1.3 million for other equipment costs. We estimate the total level of capital spending for all of 2010 will be approximately $114 million compared to $101 million in 2009. Our estimated 2010 capital spending has been increased from $102 million projected in our 2009 Form 10-K to reflect the Companys potential acquisition and partial freighter conversion of three Boeing 767-300 aircraft on which the Company placed refundable deposits in the second quarter of 2010. Actual capital spending for any future period will be impacted by progress in the aircraft modification process.
At March 31, 2010, the Company had approximately $108.7 million of cash balances. The Company had $41.7 million of unused credit facility, net of draws of $18.5 million and outstanding letters of credit of $14.8 million, through a syndicated Credit Agreement that expires in December 2012. As of March 31, 2010, DHL owes the Company $23.4 million. Additionally, in conjunction with the termination of the ACMI agreement, ABX and DHL entered into a termination agreement which addressed several open issues between the parties. Under the termination agreement, DHL agreed to pay ABX, in May 2010, its carrying value of $29.7 million to complete the sale of aircraft that ABX previously put to DHL under provisions of the ACMI. The S&R agreement was terminated effective April 1, 2010 and DHL agreed to reimburse ABX for $11.2 million of accrued vacation payments which ABX had previously paid to terminated employees. We believe that our current cash balances and forecasted cash flows provided from our operating agreements, combined with our credit facility will be sufficient to fund our planned operations, pension funding and capital expenditures.
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Air Trans Svcs Groupinc Com has a market cap of $314.13 million; its shares were traded at around $4.95 with a P/E ratio of 9.52 and P/S ratio of 0.38. ATSG is in the portfolios of Mohnish Pabrai of Pabrai Mohnish, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:
ACMI Services revenues, excluding directly reimbursed fuel expenses, were $76.9 million and $69.9 million during the first quarter of 2010 and 2009, respectively, increasing 10% in 2010 compared to the previous year. This increase in revenues was due to more block hours and the higher cost of aviation fuel for those ACMI, block space and charter contracts that include fuel in their price. Block hours increased 4% for the first quarter of 2010, to 14,889 hours compared to 14,369 hours in the corresponding 2009 quarter. Increased block hours reflect additional Boeing 767 and Boeing 757 aircraft placed into service since the beginning of 2009. The price per gallon of aviation fuel in the first quarter of 2010 increased approximately 31% compared to the first quarter of 2009 ACMI Services results included revenues of $5.5 million and $2.4 million from Boeing 767 freighter aircraft that ABX supplied to DHL during the first quarters of 2010 and 2009, respectively under short-term supplemental agreements.Our pre-tax earnings from discontinued DHL operations were $0.6 million during the first quarter of 2010 compared to $4.6 million for the first quarter of 2009. The decline reflects the discontinuance of sorting operations for DHL in the third quarter of 2009. Our pre-tax earnings from the discontinued DHL operations for the first quarter of 2009 included $2.0 million from contractual cost mark-ups and $2.6 million for the reimbursement from DHL of employee vacation benefits that ABX paid to terminated employees under the S&R agreement. Our pre-tax earnings from the discontinued DHL operations for the first quarter of 2010 of $0.6 million resulted from the reimbursement from DHL of employee vacation benefits.
Consolidated net earnings from continuing operations decreased $1.4 million for the quarter ended March 31, 2010 compared to the corresponding 2009 quarter. Pre-tax earnings from CAM Leasing improved by $1.8 million during the quarter due to additional aircraft leases since the beginning of 2009. Pre-tax earnings from the DHL segment increased $0.2 million, compared to the first quarter of 2009 driven by higher negotiated mark-ups. Additionally, pre-tax earnings improved $0.4 million compared to the first quarter of 2009 due to lower non-reimbursed interest expense. Results for ACMI Services in 2010 negatively impacted consolidated pre-tax earnings. ACMI Services experienced losses on ABXs transatlantic scheduled service (until ABX transitioned to a standard ACMI agreement in February 2010), and higher aircraft maintenance expenses during the first quarter of 2010. As a result, pre-tax earnings from ACMI services declined $2.8 million in the first quarter of 2010 compared to the first quarter of 2009. Pre-tax earnings from other activities declined $2.0 million during the first quarter of 2010 compared to the first quarter of 2009, when sales of spare engines and parts were higher.
Net cash generated from operating activities was $53.4 million for the first three months of 2010 compared to $25.8 million in the first three months of 2009. The increase in operating cash flows was primarily driven by the collection of receivables due from DHL. We contributed $4.0 million to our pension plans in the first three months of 2010 and plan to contribute $36.1 million more during the remainder of 2010. In April 2010, $25.0 million of the $36.1 million was contributed to the ABX flight crew member pension trust in conjunction with amending the ABX pilot collective bargaining agreement.
Capital spending levels are primarily a result of aircraft modification costs. Cash payments for capital expenditures were $19.2 million in the first three months of 2010 compared to $10.0 million in the first three months of 2009. Capital expenditures in the first quarter of 2010 and 2009 included aircraft and cargo modification costs for three aircraft. Our capital expenditures for 2010 included $12.9 million for aircraft modifications, $5.0 million for required heavy maintenance and $1.3 million for other equipment costs. We estimate the total level of capital spending for all of 2010 will be approximately $114 million compared to $101 million in 2009. Our estimated 2010 capital spending has been increased from $102 million projected in our 2009 Form 10-K to reflect the Companys potential acquisition and partial freighter conversion of three Boeing 767-300 aircraft on which the Company placed refundable deposits in the second quarter of 2010. Actual capital spending for any future period will be impacted by progress in the aircraft modification process.
At March 31, 2010, the Company had approximately $108.7 million of cash balances. The Company had $41.7 million of unused credit facility, net of draws of $18.5 million and outstanding letters of credit of $14.8 million, through a syndicated Credit Agreement that expires in December 2012. As of March 31, 2010, DHL owes the Company $23.4 million. Additionally, in conjunction with the termination of the ACMI agreement, ABX and DHL entered into a termination agreement which addressed several open issues between the parties. Under the termination agreement, DHL agreed to pay ABX, in May 2010, its carrying value of $29.7 million to complete the sale of aircraft that ABX previously put to DHL under provisions of the ACMI. The S&R agreement was terminated effective April 1, 2010 and DHL agreed to reimburse ABX for $11.2 million of accrued vacation payments which ABX had previously paid to terminated employees. We believe that our current cash balances and forecasted cash flows provided from our operating agreements, combined with our credit facility will be sufficient to fund our planned operations, pension funding and capital expenditures.
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