BoeingBoy
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Something else for anyone interested - the December financial report filed with the BK court.
December Finalcial Statement
Jim
December Finalcial Statement
Jim
December Financial Performance
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CaptianBoomer
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Jim:
Am still very much intrigued by the "other" column.
Don't know how long U can hold on losing that kind of money, even after all the cuts.
I saw they burned $170 mil in cash? Is that right?
Boomer
Am still very much intrigued by the "other" column.
Don't know how long U can hold on losing that kind of money, even after all the cuts.
I saw they burned $170 mil in cash? Is that right?
Boomer
BoeingBoy
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CaptianBoomer said:
As for the "Other" catagory, maybe something will be in the annual report....
I only look at "unrestricted" cash and cash equivalents (technically partly restricted by the ATSB agreement) and that went down almost $85 million from Nov 30 to Dec 31, but it had gone up $32 million between Sep 12 and Oct 31 - net drop since entering BK2 was almost $53 million. A lot of the 1110 agreements called for bringing pre-BK payments up to date in December, so I'm a little surprised the Dec drop wasn't bigger.
Other good news - labor costs declined throughout the BK period (as one would expect). Sep 12 - Oct 31 was $6.84 million per day average, Nov was $5.56 million per day, and Dec was $5.21 million per day.
That's the good news....
Net losses per day were almost $3.8 million for the Sep 12 thru Oct 31 period. That dropped to $1.95 million in Nov when the interim pay cuts took effect. But in Dec the losses increased to over $2.8 million per day.
Passenger revenue (again averaged per day) were $16.25 million in the Sep 12 - Oct 31 period. That increased to $16.49 million in Nov, but dropped to $14.85 million in December.
Jim
It's not unusual to have A/R in the 0-30 day range. Tons of random things happen in this zone.
I am curious about the $2.5B in Goodwill. This number started to show up in the books when US exited bankruptcy #1. What does it represent in this case?
I am curious about the $2.5B in Goodwill. This number started to show up in the books when US exited bankruptcy #1. What does it represent in this case?
Fatherknowsbest
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I saw last week that MESA reported a profit in their latest Qtr report. US spent almost $70 million on Express capacity purchases in December alone, if I read the figures right. How much of this went to MESA? Why are we making sure that MESA makes money when US is desperate for cash?
Nuts!
Nuts!
The regional contractors are guaranteed a profit by the mainlines via fee-for-departure schemes whre the commuter gets paid even if the flight has 2 people on board. That's one reason that the regionals show a profit, even while flying very high casm RJs and another reason why all the PROFITABLE airlines DON'T subsidize high cost RJ operations.
mweiss said:
It dates back to the mergers and represents payments in excess of book value as well as certain capitalizations. Startup costs on foreign routes are often capitalized. The amazing thing about bankruptcy #1 was that goodwill and other intangibles actually GREW during the period of court supervision - how you manage to do that I don't know.
Rob,
I realize that the acquisitions would have resulted in Goodwill. What I don't understand is how it could have grown by approximately $2B in bankruptcy #1. Sounds like you don't know, either.
Where's a professional accountant when you need one? 🙂
I realize that the acquisitions would have resulted in Goodwill. What I don't understand is how it could have grown by approximately $2B in bankruptcy #1. Sounds like you don't know, either.
Where's a professional accountant when you need one? 🙂
BoeingBoy
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I can't exlain it but this is what the 2003 annual report had to say...
[As of March 31, 2003, .....] In addition, goodwill of $2.41 billion was recorded to reflect the excess of the estimated fair value of liabilities and equity over identifiable assets. Subsequent to March 31, 2003, the Company recorded an additional $62 million of adjustments to reflect assets and liabilities at fair value, including a $281 million decrease to Property and Equipment, net, a $121 million decrease to Long-term debt, net of current maturities, a $13 million increase to Deferred gains and credits, net, a $54 million increase to Other intangibles, net, a $15 million decrease to Employee benefit liabilities and other and a $6 million decrease to Accounts payable. An adjustment of $62 million was also made to Goodwill as a result of the above fair value adjustments.
Jim
[As of March 31, 2003, .....] In addition, goodwill of $2.41 billion was recorded to reflect the excess of the estimated fair value of liabilities and equity over identifiable assets. Subsequent to March 31, 2003, the Company recorded an additional $62 million of adjustments to reflect assets and liabilities at fair value, including a $281 million decrease to Property and Equipment, net, a $121 million decrease to Long-term debt, net of current maturities, a $13 million increase to Deferred gains and credits, net, a $54 million increase to Other intangibles, net, a $15 million decrease to Employee benefit liabilities and other and a $6 million decrease to Accounts payable. An adjustment of $62 million was also made to Goodwill as a result of the above fair value adjustments.
Jim
Oh, OK. I get it now. Since in bankruptcy the creditors "own" the company, the amount owed to them is considered the amount they "paid" for the company.
Since the assets minus the liabilities was -$2.41B (!!!), that's the amount of Goodwill that was established during the purchase.
The subsequent adjustments came from various things, such as the glut of aircraft in the desert, which drove down the market value of the ones in the fleet.
Since the assets minus the liabilities was -$2.41B (!!!), that's the amount of Goodwill that was established during the purchase.
The subsequent adjustments came from various things, such as the glut of aircraft in the desert, which drove down the market value of the ones in the fleet.
