-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HkCwH6ygxVIhw+V8lkga4wDJz1w3v883LqeAxdeDmnH6nPhal0WOkRYhPm/JcJIY +C9Ocl9sKmT/rPm5fVsmww== 0000003000-98-000026.txt : 19981116 0000003000-98-000026.hdr.sgml : 19981116 ACCESSION NUMBER: 0000003000-98-000026 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AIRBORNE FREIGHT CORP /DE/ CENTRAL INDEX KEY: 0000003000 STANDARD INDUSTRIAL CLASSIFICATION: AIR COURIER SERVICES [4513] IRS NUMBER: 910837469 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-06512 FILM NUMBER: 98747139 BUSINESS ADDRESS: STREET 1: P O BOX 662 CITY: SEATTLE STATE: WA ZIP: 98111 BUSINESS PHONE: 2062854600 10-Q 1 09/30/98 FORM 10Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended September 30, 1998 Commission File Number 1-6512 AIRBORNE FREIGHT CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware ---------------------------------------- (State of incorporation or organization) 91-0837469 --------------------------------- (IRS Employer Identification No.) 3101 Western Avenue P.O. Box 662 Seattle, Washington 98111-0662 ------------------------------ (Address of Principal Executive Office) Registrant's telephone number, including area code: (206) 285-4600 -------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes: XXX No: --- --- Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the close of the period covered by this report. Common Stock, par value $1 per share Outstanding (net of 2,497,078 treasury shares) as of September 30, 1998 48,286,791 shares ----------------- 2 AIRBORNE FREIGHT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF NET EARNINGS (Dollars in thousands except per share data) (Unaudited)
Three Months Ended Nine Months Ended ------------------ ----------------- September 30 September 30 ------------ ------------ 1998 1997 1998 1997 ---- ---- ---- ---- REVENUES: Domestic $678,650 $687,549 $2,013,546 $1,861,659 International 90,432 101,049 269,866 295,245 -------- -------- ---------- ---------- 769,082 788,598 2,283,412 2,156,904 OPERATING EXPENSES: Transportation purchased 237,503 242,521 702,623 680,074 Station and ground operations 228,339 224,945 679,315 636,051 Flight operations and maintenance 121,102 110,949 355,985 315,645 General and administrative 62,811 64,842 184,701 173,942 Sales and marketing 18,288 19,742 53,256 53,821 Depreciation and amortization 45,954 41,688 136,024 126,169 -------- -------- ---------- ---------- 713,997 704,687 2,111,904 1,985,702 -------- -------- ---------- ---------- EARNINGS FROM OPERATIONS 55,085 83,911 171,508 171,202 INTEREST, NET 3,005 7,026 9,881 23,522 -------- -------- ---------- ---------- EARNINGS BEFORE INCOME TAXES 52,080 76,885 161,627 147,680 INCOME TAXES 19,267 30,266 62,627 58,400 -------- -------- ---------- ---------- NET EARNINGS 32,813 46,619 99,000 89,280 ======== ======== ========== ========== NET EARNINGS PER SHARE Basic $ .66 $ 1.05 $ 1.98 $ 2.06 ======== ======== ========== ========== Diluted $ .65 $ .94 $ 1.94 $ 1.84 ======== ======== ========== ========== DIVIDENDS PER SHARE $ .040 $ .038 $ .118 $ .113 ======== ======== ========== ========== See notes to consolidated financial statements.
3 AIRBORNE FREIGHT CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
September 30 December 31 ------------ ----------- ASSETS 1998 1997 ------ ---- ---- (Unaudited) (Unaudited) CURRENT ASSETS: Cash $ 14,088 $ 25,525 Trade accounts receivable, less allowance of $9,990 and $10,290 316,589 322,549 Spare parts and fuel inventory 38,960 37,966 Deferred income tax assets 16,407 14,530 Prepaid expenses and other 26,329 25,982 ---------- ---------- TOTAL CURRENT ASSETS 412,373 426,552 PROPERTY AND EQUIPMENT, NET 976,107 916,331 EQUIPMENT DEPOSITS and OTHER ASSETS 36,585 23,090 ---------- ---------- TOTAL ASSETS $1,425,065 $1,365,973 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ CURRENT LIABILITIES: Accounts payable $ 142,366 $ 143,966 Salaries, wages and related taxes 67,099 80,154 Accrued expenses 90,974 100,126 Income taxes payable 3,130 5,440 Current portion of debt 400 381 ---------- ---------- TOTAL CURRENT LIABILITIES 303,969 330,067 LONG-TERM DEBT 250,289 250,559 DEFERRED INCOME TAX LIABILITIES 81,383 65,322 OTHER LIABILITIES 57,506 49,110 SHAREHOLDERS' EQUITY: Preferred Stock, without par value - Authorized 5,200,000 shares, no shares issued Common stock, par value $1 per share - Authorized 120,000,000 shares Issued 50,783,869 and 50,428,548 shares 50,784 50,429 Additional paid-in capital 293,549 287,208 Retained earnings 427,186 334,083 ---------- ---------- 771,519 671,720 Treasury stock, 2,497,078 and 522,300 shares, at cost (39,601) (805) ---------- ---------- 731,918 670,915 ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,425,065 $1,365,973 ========== ========== See notes to consolidated financial statements.
4 AIRBORNE FREIGHT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (Unaudited)
Nine Months Ended ----------------- September 30 ----------------- 1998 1997 ---- ---- OPERATING ACTIVITIES: Net Earnings $ 99,000 $ 89,280 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 124,002 116,303 Provision for aircraft engine overhauls 12,022 9,866 Deferred income taxes 14,184 17,903 Other 8,535 2,411 -------- -------- CASH PROVIDED BY OPERATIONS 257,743 235,763 Change in: Receivables 5,960 (57,859) Inventories and prepaid expenses (1,341) (2,760) Accounts payable (1,600) (1,063) Accrued expenses, salaries and taxes payable (24,176) 49,788 -------- -------- NET CASH PROVIDED BY OPERATING ACTIVITIES 236,586 223,869 INVESTING ACTIVITIES: Additions to property and equipment (193,497) (135,433) Disposition of property and equipment 951 4,425 Expenditures for engine overhauls (15,521) (8,821) Proceeds from insurance on aircraft accident -- 18,000 Other (1,367) 214 -------- -------- NET CASH USED IN INVESTING ACTIVITIES (209,434) (121,615) FINANCING ACTIVITIES: Payments on bank notes, net -- (117,300) Principal payments on debt (251) (316) Repurchase of common stock (38,835) -- Proceeds from common stock issuance 6,394 6,596 Dividends paid (5,897) (4,894) -------- -------- NET CASH USED BY FINANCING ACTIVITIES (38,589) (115,914) -------- -------- NET DECREASE IN CASH (11,437) (13,660) CASH AT JANUARY 1 25,525 35,816 -------- -------- CASH AT SEPTEMBER 30 $ 14,088 $ 22,156 ======== ======== See notes to consolidated financial statements.
5 AIRBORNE FREIGHT CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 1998 (Unaudited) NOTE A - SUMMARY OF FINANCIAL STATEMENT PREPARATION: The consolidated financial statements included herein are unaudited but include all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations and cash flows for the interim periods reported. Certain amounts for prior periods have been reclassified to conform to the 1998 presentation. NOTE B - LONG-TERM DEBT: Long-term debt consists of the following:
September 30 December 31 ------------ ------------ 1998 1997 ---- ---- (In thousands) Senior debt: Notes payable 30,000 30,000 Senior notes 200,000 200,000 Revenue bonds 13,200 13,200 Other debt 7,489 7,740 --------- --------- 250,689 250,940 Less current portion 400 381 --------- --------- $ 250,289 $ 250,559 ========= =========
NOTE C - SHARE REPURCHASE: In August 1998, the Company's Board of Directors authorized the repurchase of up to 2 million shares of its common stock. The repurchase of 2 million shares was completed by the end of September for a total purchase price of $38.8 million. The repurchased shares were not retired or canceled but rather held as treasury stock. NOTE D - EARNINGS PER SHARE: Basic earnings per share are based upon the weighted average number of common shares outstanding during the interim period. Diluted earnings per share are based upon the weighted average number of shares outstanding during the interim period plus dilutive common equivalent shares applicable to the assumed exercise of outstanding stock options. Diluted earnings per share for the three and nine months ended September 30, 1997 assumes conversion of the Company's convertible subordinated debentures as of the beginning of the period as well as the dilutive common equivalent shares applicable to the assumed exercise of stock options. Net earnings as adjusted for the elimination of interest expense, net of 6 applicable taxes, relative to the assumed conversion was $47,459,000 for the three month period and $92,249,000 for the nine month period. Weighted average shares outstanding used in earnings per share computations were as follows:
Three Months Ended Nine Months Ended ------------------ ----------------- September 30 September 30 ------------ ------------ 1998 1997 1998 1997 ---- ---- ---- ---- WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 49,921 44,325 50,056 43,246 Diluted 50,682 50,631 51,051 50,099
NOTE E - NEW ACCOUNTING PRONOUNCEMENTS: ACCOUNTING FOR DERIVATIVE INSTRUMENTS: In June 1998, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities" which will be effective for fiscal year 2000. SFAS No. 133 requires an entity to recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. The Company has entered into certain derivative contracts with financial institutions to limit its exposure to volatility in jet fuel prices. Under terms of the contracts, the Company either makes or receives payments if the market price of heating oil, as determined by an index of monthly NYMEX Heating Oil futures contracts, is lower or exceeds certain prices agreed to between the Company and the financial institutions. The contracts, which have no cost basis, are accounted for as hedges since there has historically existed a high correlation between the changes in the NYMEX index and the price of jet fuel. Settlements are made in cash and are recorded in the earnings statement in the period of settlement as either an increase or decrease to fuel expense. Under the cash flow hedge provisions of SFAS No. 133, the Company will be required to record the contracts at fair value, with corresponding changes in fair value recorded as a component of other comprehensive income. The Company has not adopted the provisions of SFAS No. 133 as of September 30, 1998. However, if the provisions of the statement had been adopted, a cumulative charge of $1,000,000, net of tax, would have been recorded to shareholders' equity and a credit to comprehensive income of approximately $1,300,000 would have been reported for the three month period ended September 30, 1998. A charge to comprehensive income of approximately $400,000, would have been reported for the nine month period ended September 30, 1998. 7 OTHER PRONOUNCEMENTS: The FASB has also issued SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information" which establishes standards for reporting information about operating segments and SFAS No. 132, "Employers' Disclosures about Pensions and Other Postretirement Benefits" which revises disclosures requirements for pension and other postretirement benefit plans. Both of these pronouncements govern only financial statement disclosures and will be incorporated into the Company's financial statements for the year ending December 31, 1998. Implementation of the pronouncements are not expected to have a material impact on the Company's financial position or results of operations. 8 MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION RESULTS OF OPERATIONS: Net earnings for the third quarter of 1998 were $32.8 million, or $.65 per share on a diluted basis, on revenues of $769 million. Current period results are not directly comparable with the prior year in certain respects, as the Company benefited in the third quarter of 1997 from a strike at United Parcel Service which added $50 - $55 million in incremental domestic revenues and increased earnings per share results by $.28 to $.30. Total net earnings for the third quarter of 1997 were $46.6 million or $.94 per diluted share on revenues of $789 million. Because of weaker economic conditions, the Company experienced basically stagnant third quarter 1998 total shipment and revenue growth on a sequential basis over second quarter. However, the Company is pleased with the operating performance achieved for the third quarter as signified by the 7.2% operating margin, despite the slower growth. This strong performance was primarily due to the improvement in the domestic yield, as measured by revenue per shipment, which was $8.59 in the third quarter compared to $8.49 in the second quarter of 1998. Net earnings for the first nine months of 1998 increased 10.9% to $99.0 million, or $1.94 per diluted share compared to $89.3 million, or $1.84 per share for the first nine months of 1997. Total revenues for the first nine months of 1998 were $2.283 billion, a 5.9% increase over the comparable period of 1997. This 1998 year-to-date performance represents approximately a 25% increase in earnings per share over 1997, on a comparative basis when the benefit realized from the 1997 UPS strike is eliminated, a significant improvement considering the prevailing weak economic conditions. The following table sets forth selected shipment and revenue data for the periods indicated:
Three Months Ended Nine Months Ended ------------------ ----------------- September 30 September 30 ------------ % ----------- % 1998 1997 Change 1998 1997 Change ---- ---- ------ ---- ---- ------ Shipments (in thousands): Domestic Overnight 46,792 45,675 2.4% 139,183 127,601 9.1% Next Afternoon Service 14,640 14,026 4.4% 43,741 39,907 9.6% Second Day Service 17,497 19,482 -10.2% 53,181 51,948 2.4% 100 Lbs. & Over 91 96 -5.2% 269 250 7.6% ------ ------ ------- ------- Total Domestic 79,020 79,279 -0.3% 236,374 219,706 7.6% ------ ------ ------- ------- International Express 1,522 1,351 12.7% 4,418 3,803 16.2% Freight 105 118 -11.0% 328 356 -7.9% ------ ------ ------- ------- Total International 1,627 1,469 10.8% 4,746 4,159 14.1% ------ ------ ------- ------- Total Shipments 80,647 80,748 -0.1% 241,120 223,865 7.7% ====== ====== ======= ======= Average Pounds per Shipment: Domestic 4.26 4.71 -9.6% 4.28 4.45 -3.8% International 41.06 50.32 -18.4% 42.23 51.33 -17.7% Average Revenue per Pound: Domestic $1.98 $1.82 8.8% $1.96 $1.89 3.7% International $1.34 $1.34 -- $1.33 $1.36 -2.2% Average Revenue per Shipment: Domestic $8.59 $8.67 -0.9% $8.51 $8.46 0.6% International $55.58 $68.79 -19.2% $56.86 $70.99 -19.9%
9 Domestic shipments decreased .3% in the third quarter of 1998, but increased 7.6% in the first nine months of 1998, compared to the same periods in 1997. Domestic shipment comparisons for 1998 over 1997 are less meaningful due to the effect of the UPS strike in the third quarter of 1997 referred to above. The growth rate in the higher yielding domestic overnight segment increased 2.4% in the third quarter of 1998, and 9.1% in the first nine months of 1998, a higher growth rate than overall domestic shipment growth. This helped the domestic revenue per shipment improve to $8.59 per shipment for the third quarter of 1998, compared to the second quarter of 1998, and to $8.51 per shipment for the first nine months of 1998. Overnight shipments accounted for approximately 59.2% of total domestic shipments in the third quarter of 1998 compared to 57.6% in the comparable period of 1997. Domestic revenues for 1997 included $15.5 million of fuel surcharge revenue which was realized in the first two quarters of 1997. This fuel surcharge revenue added approximately $.15 per share to 1997 operating results. International revenues decreased 10.5% and 8.6% in the third quarter and first nine months of 1998, respectively, versus comparable periods in 1997, primarily the result of slower global economic conditions prevailing, especially in parts of Asia. Shipments in the heavier weight, higher revenue per shipment freight segment continued to decline as measured both year to year and sequentially over prior quarter. Mitigating some of the weakness in freight volumes, the Company experienced strong growth in its international express segment, resulting in gross margins on overall international business remaining relatively stable. International express shipments increased 12.7% and 16.2% in the third quarter and first nine months of 1998, respectively, compared to the corresponding periods of 1997. Operating expenses as a percentage of revenues were 92.5% for the first nine months of 1998 compared to 92.1% in the first nine months of 1997 and 92.3% for all of 1997. Operating cost per shipment handled decreased 1.3% to $8.76 for the first nine months of 1998 compared to the first nine months of 1997. The operating cost per shipment for the third quarter of 1998 increased 1.4% to $8.85, compared to the third quarter of 1997 while operating expense as a percentage of revenues was 92.8%. Most of the decrease in year-to-date operating cost per shipment was attributable to lower costs related to lower international freight volumes. The Company experienced a 2.1% decline in productivity for the third quarter of 1998, compared to the third quarter of 1997, as measured by shipments handled per paid employee hour. It was difficult to achieve productivity improvement given the overall stagnant shipment growth experienced during the third quarter of 1998, however, the Company achieved a 1.9% productivity improvement for the first nine months of 1998. Continued emphasis on cost control and productivity improvement were factors having a positive impact on 1998 operating results. Comparisons of certain operating expense components are discussed below. Transportation purchased decreased as a percentage of revenues to 30.8% in the first nine months of 1998 compared to 31.5% in the comparable period of 1997. This decrease was primarily due to commercial airline costs which were lower in total and as a percentage of total revenues in the first nine months of 1998 due to the lower volumes of international freight shipments discussed above. The suspension of the Federal Aviation Excise Tax reduced costs in the first quarter of 1997 by $4.3 million. The Aviation Excise Tax moratorium was effective through March 6, 1997, subsequent to which the tax became effective once again; therefore, no cost reduction was realized in 1998. Station and ground expense increased as a percentage of revenues to 29.7% for the first nine months of 1998 compared to 29.5% in the same period of 1997, primarily the result of lower productivity. 10 Flight operations and maintenance expense as a percentage of revenues during the first nine months of 1998 was 15.6%, compared to 14.6% in the first nine months of 1997, and was 15.7% in the third quarter of 1998 compared to 14.1% in 1997. During the second and third quarters of 1997, costs associated with periodic aircraft maintenance were lower as a percentage of revenues versus the comparable quarters of 1998, due to fewer maintenance checks performed. The average aviation fuel price for the third quarter and first nine months of 1998 was $.55 per gallon and $.58 per gallon, respectively, compared to $.70 per gallon and $.74 per gallon for the comparable periods of 1997. Aviation fuel consumption increased to 136.0 million gallons in the first nine months of 1998, a 8.7% increase over the comparable period of 1997. As a result of fuel hedging contracts, the Company incurred settlement expense equivalent to approximately $.06 per gallon in the third quarter of 1998, and $.04 per gallon in the first nine months of 1998 compared to $.01 per gallon benefit realized in the first nine months of 1997. General and administrative expense as a percentage of revenues in the first nine months of 1998 was 8.1% which was comparable to the same period of 1997. This category of expense decreased as a percentage of revenues as well as in total cost in the third quarter of 1998 versus the third quarter of 1997, primarily the result of higher incremental accrued profit sharing costs in 1997. Sales and marketing expense decreased both in total cost and as a percentage of revenues to 2.3% in the first nine months of 1998 compared to 2.5% in the first nine months of 1997. This decline is primarily due to lower sales incentive compensation associated with slower shipment and revenue growth. The increase in depreciation and amortization expense in the first nine months of 1998 is due in large part to the increased number of aircraft in service since the third quarter of 1997. Interest expense in the first nine months of 1998 was significantly lower than the same period of 1997. This is primarily attributable to the significant reduction in average outstanding borrowings during the first nine months of 1998 compared to the corresponding period of 1997. The Company's effective tax rate was 38.7% in the first nine months of 1998 compared to 39.5% in the first nine months of 1997 and 39.2% for all of 1997. The Company anticipates the effective tax rate for the 1998 annual period will approximate 38.5%. YEAR 2000 ISSUE: The Company has implemented a compliance program to address the challenges Year 2000 issues may present to its business. This program includes computer systems and applications operated by the Company, computer systems of third parties upon whose data or functionality the Company relies, and certain other fixed assets, including aircraft, which contain date sensitive technology critical to their operation. Management anticipates modifications to its critical operational and financial systems, conversions to new software, and related testing will be substantially complete by the end of 1998. Remediation efforts and related testing on less critical applications are scheduled to be completed by early 1999. As part of the compliance program, the Company has also initiated communications with third parties (primarily customers, vendors, airport authorities, and other governmental agencies, including the Federal Aviation Administration) whose failure to have Year 2000 compliant systems could have an adverse impact on the Company's operations. The Company is scheduling testing of customer interfaces of shipment information as this data is critical to providing services and billing. 11 Although the Company does not believe the Year 2000 issue will have a material impact on its operations, there can be no guarantee that the Company's nor any third party's Year 2000 remediation efforts will be fully compliant. If non-compliance is extensive and involves some form of temporary suspension of operations, this could have a material adverse effect on the Company's business, financial condition and results of operation. In an attempt to mitigate the risk of noncompliance, the Company is in the process of developing contingency plans regarding critical systems should they fail to become Year 2000 compliant. These plans are focusing on the Company's own critical operational and financial systems as well as customer interfaces of shipment information. Contingency plans covering the failure of material third party systems will also be developed as the status readiness becomes fully known. Management estimates the total cost of its Year 2000 compliance program to be approximately $2.5 million, of which $1 million has cumulatively been incurred through September 30, 1998. Total information technology costs are not expected to differ from the normal recurring costs that are incurred for systems development, in part due to the reallocation of internal resources and the deferral of other projects. These costs could differ materially if either the scope or schedule of its compliance program is significantly altered. LIQUIDITY AND CAPITAL RESOURCES: Cash provided by operations net of changes in working capital increased for the first nine months of 1998 to $237 million, compared to $224 million in the first nine months of 1997. This increased liquidity is primarily the result of the increase in profitability in 1998. Capital expenditures continue to be a primary factor affecting the financial condition of the Company. The Company anticipates total capital expenditures to approximate $250 million in 1998, down from the original estimate of $274 million. During the first nine months of 1998, total capital expenditures net of dispositions were $193 million. Cash provided by operations was the primary source for funding capital expenditures. In August 1998, the Board of Directors authorized a stock repurchase program for up to 2 million shares of the Company's common stock. The Company accomplished the repurchase of 2 million shares by the end of September for approximately $38.8 million. These shares were added to the Company's treasury stock. In November 1998, the Board of Directors authorized a second stock repurchase program for up to 4 million shares of the Company's common stock. All shares may be acquired, at management's discretion, over time on the open market. Shares repurchased will not be retired or canceled, but will be held as treasury stock. The Company's strong operating cashflow has become the major source of liquidity, whereas, the Company's $250 million unsecured revolving bank credit agreement has traditionally been used as the major source of liquidity for periods between other financing transactions. The Company also has available $65 million under unsecured uncommitted money market lines of credit with several banks, used in conjunction with the revolving credit agreement to facilitate settlement and accommodate short-term borrowing fluctuations. A total of $30.0 million was outstanding at September 30, 1998 under the revolving bank credit and money market credit lines, compared to $30.0 million outstanding at December 31, 1997, and $71.2 million outstanding at September 30, 1997. In management's opinion, the available capacity under the bank credit agreements coupled with internally generated cash flow from remaining 1998 operations should provide adequate flexibility to finance anticipated capital expenditures for the balance of 1998. 12 PART II. OTHER INFORMATION -------------------------- Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits Exhibit No. 27 - Financial Data Schedule 13 SIGNATURES ---------- Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized: AIRBORNE FREIGHT CORPORATION ---------------------------- (Registrant)
Date: 11/13/98 /s/Roy C. Liljebeck -------- ------------------- Roy C. Liljebeck Executive Vice President, Chief Financial Officer Date: 11/13/98 /s/Lanny H. Michael -------- ------------------- Lanny H. Michael Senior Vice President, Treasurer and Controller
EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 9-MOS DEC-31-1998 JAN-01-1998 SEP-30-1998 14,088 0 326,579 9,990 38,960 412,373 1,990,131 1,014,024 1,425,065 303,969 250,289 0 0 50,784 681,134 1,425,065 0 2,283,412 0 2,111,904 0 0 9,881 161,627 62,627 99,000 0 0 0 99,000 1.98 1.94 EARNINGS PER SHARE - BASIC EARNINGS PER SHARE - DILUTED
-----END PRIVACY-ENHANCED MESSAGE-----