So.. Where Do You Think The $34m Went?

[usair_begins_with_u]

Lets see.. They post a $34M profit, but restricted cash (this is the important cash account because of the loan guarantee) goes down $3 Million. Where did the profit go?? Talk about poor cash management??

I think they ought to shake these thieves out when they walk out of the crystal palace in CCY.. make sure no one is stuffing their pockets wth loot. They post some really strange results..

Who audits UAir financials??

 

[RowUnderDCA]

Geez, haven't you been reading these boards? Reasons why are all over.

 

[Rob]

The cash number, by itself, is interesting; but the company can manage it to some extent. You need the complete balance sheet to figure out what really happened.

In recent years, US has not released its balance sheet concurrent with earnings announcements.

 

[BoeingBoy]

usair_begins_with_u,

I'm sure it's what you meant to say, but UNrestricted cash went down $3 million. Assuming that, you're right - it's the important number.

Jim

 

[BoeingBoy]

And I'm not defending anyone, but there are severial reasons why a $34 million profit can result in unrestricted cash going down. One big one is increased deposits with the credit card processor (turning unrestricted cash into restricted cash).

Jim

 

[usair_begins_with_u]

Not looking for why... looking for where?? 😛h34r:

yeah.. unrestricted cash.. thx BB

 

[JayBrian]

Maybe they paid some bills.


Jay

 

[delldude]

Maybe they paid some bills.


Jay

like their outlandish higher than industry average non employee costs...

 

[genejockey]

One pending debit that is now (3Q) qualified as restricted cash is a $110 million pension payment due in September.

 

[burghlaw1]

I have another question, which may be off topic: where is management getting the rest of the $700 million savings that is part of the recovery plan? :blink:

 

[BoeingBoy]

"where is management getting the rest of the $700 million savings that is part of the recovery plan?"

Seems that "mum's the word..."

Jim

 

[tadjr]

I have another question, which may be off topic: where is management getting the rest of the $700 million savings that is part of the recovery plan? :blink:

You dont really expect an answer from Real World, Hawk, Flyonthewall or SpinDoc to that question do you? They're too busy belittleing the help and getting all worked up over cutting our $ and bennies to worry about what really needs to be worked on (at least in tandem with some employee reworking of contracts). I'll be waiting anxisouly for their reply. Wake me when it happens. 😛h34r:

 

[funguy2]

Lets see.. They post a $34M profit, but restricted cash (this is the important cash account because of the loan guarantee) goes down $3 Million. Where did the profit go?? Talk about poor cash management??

I think they ought to shake these thieves out when they walk out of the crystal palace in CCY.. make sure no one is stuffing their pockets wth loot. They post some really strange results..

Who audits UAir financials??

Well.... Per Boeing Boy's quotes in the other thread...

$20Mil Unrestricted Cash became restricted as collateral to cover the credit card servicing agreement with American Express...

$57mil cash went from unrestricted to restricted to cover payroll taxes, the ticket taxes collected by US Airways and later forwarded to the gov't, and PFC's collected by US Airways and later forwarded to various airports.

$8Mil went to Capital Expenditures (probably support equip and/or Spare parts for the EMB-170's)

$17Mil went to short-term investments (probably the fuel hedge).

That's $102mil of spent or newly restricted cash... more than enough to cover the $34mil profit.

 

[PITbull]

Maybe they paid some bills.


Jay

yea, $7 million went to Seigel and Cohen in the second quarter, otherwise, the profit reported would have been $41 million.

Its disbursement will probably show up as (OTHER)

 

[WestCoastGuy]

yea, $7 million went to Seigel and Cohen in the second quarter, otherwise, the profit reported would have been $41 million.

Its dispursement will probably show up as (OTHER)

We certainly would want to honor their contracts , would we? After all, they were so dazzling brilliant running the company.