-----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, ChP0k22JMhiN5oOLWKYmNrqLmSUPEqGLQNSiNMlJyAWK0OtsdZs0bp8eCbYSpwXZ wdOdN9zWPdTTp2H1W8qYnw== 0000006201-00-000002.txt : 20000202 0000006201-00-000002.hdr.sgml : 20000202 ACCESSION NUMBER: 0000006201-00-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000119 ITEM INFORMATION: FILED AS OF DATE: 20000120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMR CORP CENTRAL INDEX KEY: 0000006201 STANDARD INDUSTRIAL CLASSIFICATION: AIR TRANSPORTATION, SCHEDULED [4512] IRS NUMBER: 751825172 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08400 FILM NUMBER: 510271 BUSINESS ADDRESS: STREET 1: 4333 AMON CARTER BLVD CITY: FORT WORTH STATE: TX ZIP: 76155 BUSINESS PHONE: 8179631234 MAIL ADDRESS: STREET 1: 4333 AMON CARTER BLVD CITY: FORT WORTH STATE: TX ZIP: 75261-9616 8-K 1 1 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 _____________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of earliest event reported: January 19, 2000 AMR CORPORATION (Exact name of registrant as specified in its charter) Delaware 1-8400 75-1825172 (State of Incorporation) ( Commission File Number) (IRS Employer Identification No.) 4333 Amon Carter Blvd. Fort Worth, Texas 76155 (Address of principal executive offices) (Zip Code) (817) 963-1234 (Registrant's telephone number) 2 Item 5. Other Events AMR Corporation (the "Company") is filing herewith a press release issued on January 19, 2000 by the Company as Exhibit 99.1 which is included herein. This press release was issued to report fourth quarter and full year 1999 earnings. Item 7. Financial Statements and Exhibits The following exhibit is included herein: 99.1 Press Release 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMR CORPORATION /s/ Charles D. MarLett Charles D. MarLett Corporate Secretary Dated: January 20, 2000 4 EXHIBIT INDEX Exhibit Description 99.1 Press Release 5 Exhibit 99.1 Contact: Corporate Communications Fort Worth, Texas 817-967-1577 FOR RELEASE: Wednesday, Jan. 19, 2000 AMR REPORTS FOURTH QUARTER EARNINGS OF $105 MILLION BEFORE SPECIAL ITEMS FORT WORTH, Texas -- AMR Corporation, parent company of American Airlines, Inc., today reported fourth quarter net earnings of $105 million, or $0.69 per common share diluted, before special items. This compares to net earnings of $167 million, or $1.00 per common share diluted, before a special item in the same period in 1998. "The fourth quarter was a milestone for us with the announced spin-off of Sabre to our shareholders," said Donald J. Carty, American's chairman and chief executive officer. "This was the last of the non-airline businesses under the AMR corporate umbrella and we can now focus all of our attention to maintaining our airline industry leadership. "Financially, we had a decent quarter, although higher fuel costs and lower bookings due to the millennium celebration and the Y2K issue did impact it." Profit sharing will also be paid for the sixth consecutive year, Carty said. Employees will divide $204 million, the fourth highest payout since profit sharing began. After accounting for four special items noted below, AMR reported net earnings of $280 million ($1.84 per common share diluted) for the quarter, as compared to net earnings of $182 million ($1.09 per common share diluted) in 1998. - more - 6 AMR Fourth Quarter Earnings Jan. 19, 2000 Page 2 The special items include: - Gain of $92 million ($0.60 per common share diluted) on sale of preferred stock of Canadian International Airlines Limited (Canadian) and recognition of the tax benefit resulting from the tax loss on the investment. - Gain of $80 million ($0.53 per common share diluted) on the sale of a portion of Equant N.V., net of minority interest. - Increase of $28 million ($0.19 per common share diluted) in passenger revenue resulting from a change in estimate. - Provision of $25 million ($0.17 per common share diluted) for certain litigation items.
1999 Fourth Quarter Results (in millions, except per share Diluted amounts) Amount earnings (net of per tax) share Net earnings before special items $105 $0.69 Gain on sale of preferred stock of Canadian and recognition of the tax benefit resulting from the tax loss on the investment 92 0.60 Gain on sale of a portion of Equant N.V., net of minority interest 80 0.53 Increase in passenger revenue resulting from a change in estimate 28 0.19 Provision for certain litigation items (25) (0.17) Net earnings as reported $280 $1.84
AMR's fourth quarter results brought the company's full-year 1999 net earnings to $737 million, or $4.68 per common share diluted, before special items. This compares with net earnings of $1.3 billion, or $7.52 per common share diluted, in 1998. Including special items, AMR's full-year 1999 earnings were $985 million, or $6.26 per common share diluted. - more - 7 AMR Fourth Quarter Earnings Jan. 19, 2000 Page 3 "We are quite excited about 2000," Carty said. "American Airlines added 45 new Boeing aircraft to its fleet last year and will take delivery on 41 more this year. American Eagle accepted 34 regional jets - including its first ERJ135 - in 1999 and will add another 29 RJs this year. Our American family grew by about 2,000 employees as we successfully integrated Reno Air, and American Eagle began integrating Business Express Airline into its operation. "While we continue to be concerned about the price of fuel, we are encouraged by the strength of the U.S. economy and more favorable recent trends in industry capacity," Carty said. "In addition, the modernization of our fleet, our many service and product enhancements, and our success in e-commerce marketing during 1999 all position American well for the year 2000," he added. ---- Editor's note: AMR's Chief Financial Officer, Gerard J. Arpey, will be available to answer questions during a telephone news conference on Wednesday, Jan. 19, from 3 p.m. to 3:45 p.m. EST. Reporters interested in joining the conference should call 817-967-1577 for details. ---- Statements in this news release contain various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which represents the Company's expectations or beliefs concerning future events. When used in this release, the word "expects" and similar expressions are intended to identify forward-looking statements. All forward- looking statements in this release are based on information available to the Company on the date of this release. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are subject to a number of factors that could cause actual results to differ materially from our expectations. Additional information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to the Form 10-K for the year ended Dec. 31, 1998. Detailed financial information follows. 8 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited)
Three Months Ended December 31, Percent 1999 1998 Change Revenues Airline Group Passenger - American Airlines $3,736 $3,457 8.1 - AMR Eagle 331 272 21.7 Cargo 174 166 4.8 Other 236 264 (10.6) 4,477 4,159 7.6 Other 11 20 (45.0) Less: Intersegment revenues (1) (12) (91.7) Total operating revenues 4,487 4,167 7.7 Expenses Wages, salaries and benefits 1,559 1,493 4.4 Aircraft fuel 477 385 23.9 Commissions to agents 262 292 (10.3) Depreciation and amortization 295 258 14.3 Maintenance, materials and repairs 260 232 12.1 Other rentals and landing fees 224 197 13.7 Food service 192 152 26.3 Aircraft rentals 147 142 3.5 Other operating expenses 801 710 12.8 Total operating expenses 4,217 3,861 9.2 Operating Income 270 306 (11.8) Other Income (Expense) Interest income 33 30 10.0 Interest expense (98) (92) 6.5 Interest capitalized 29 33 (12.1) Miscellaneous - net 14 - - (22) (29) (24.1) Income From Continuing Operations Before Income Taxes 248 277 (10.5) Income tax provision 39 113 (65.5) Income From Continuing Operations 209 164 27.4 Discontinued Operations (net of applicable income taxes and minority interest 71 18 * Net Earnings $ 280 $ 182 53.8
Continued on next page. 9 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS - (CONTINUED) (in millions, except per share amounts) (Unaudited)
Three Months Ended December 31, 1999 1998 Earnings Per Common Share Basic Income from Continuing Operations $ 1.42 $ 1.01 Discontinued Operations 0.47 0.11 Net Earnings $ 1.89 $ 1.12 Diluted Income from Continuing Operations $ 1.37 $ 0.98 Discontinued Operations 0.47 0.11 Net Earnings $ 1.84 $ 1.09 Number of Shares Used in Computation Basic 148 162 Diluted 153 167 * Greater than 100%
Note: Certain amounts from 1998 have been reclassified to conform with 1999 presentation. 10 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (Unaudited)
Year Ended December 31, Percent 1999 1998 Change Revenues Airline Group Passenger - American Airlines $14,707 $14,695 0.1 - AMR Eagle 1,294 1,121 15.4 Cargo 643 656 (2.0) Other 1,031 1,003 2.8 17,675 17,475 1.1 Other 71 72 (1.4) Less: Intersegment revenues (16) (31) (48.4) Total operating revenues 17,730 17,516 1.2 Expenses Wages, salaries and benefits 6,120 5,793 5.6 Aircraft fuel 1,696 1,604 5.7 Commissions to agents 1,162 1,226 (5.2) Depreciation and amortization 1,092 1,040 5.0 Maintenance, materials and repairs 1,003 935 7.3 Other rentals and landing fees 942 839 12.3 Food service 740 675 9.6 Aircraft rentals 630 569 10.7 Other operating expenses 3,189 2,847 12.0 Total operating expenses 16,574 15,528 6.7 Operating Income 1,156 1,988 (41.9) Other Income (Expense) Interest income 89 114 (21.9) Interest expense (393) (372) 5.6 Interest capitalized 118 104 13.5 Miscellaneous - net 36 (1) * (150) (155) (3.2) Income From Continuing Operations Before Income Taxes 1,006 1,833 (45.1) Income tax provision 350 719 (51.3) Income From Continuing Operations 656 1,114 (41.1) Income From Discontinued Operations (net of applicable income taxes and minority interest) 265 200 32.5 Gain on Sale of Discontinued Operations (net of applicable income taxes) 64 - * Net Earnings $ 985 $ 1,314 (25.0)
Continued on next page. 11 AMR CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (in millions, except per share amounts) (Unaudited)
Year Ended December 31, 1999 1998 Earnings Per Common Share Basic Income from Continuing Operations $ 4.30 $ 6.60 Discontinued Operations 2.16 1.18 Net Earnings $ 6.46 $ 7.78 Diluted Income from Continuing Operations $ 4.17 $ 6.38 Discontinued Operations 2.09 1.14 Net Earnings $ 6.26 $ 7.52 Number of Shares Used in Computation Basic 152 169 Diluted 157 175 * Greater than 100%
Note: Certain amounts from 1998 have been reclassified to conform with 1999 presentation. 12 AMR CORPORATION BUSINESS SEGMENT FINANCIAL HIGHLIGHTS (in millions) (Unaudited)
Three Months Ended December 31, Percent 1999 1998 Change Airline Group Revenues Passenger - American Airlines $3,736 $3,457 8.1 - AMR Eagle 331 272 21.7 Cargo 174 166 4.8 Other 236 264 (10.6) 4,477 4,159 7.6 Expenses Wages, salaries and benefits 1,554 1,489 4.4 Aircraft fuel 477 385 23.9 Commissions to agents 262 292 (10.3) Depreciation and amortization 294 258 14.0 Maintenance, materials and repairs 260 232 12.1 Other rentals and landing fees 224 196 14.3 Food service 192 152 26.3 Aircraft rentals 147 142 3.5 Other operating expenses 796 716 11.2 Total operating expenses 4,206 3,862 8.9 Operating Income 271 297 (8.8) Other Income (Expense) Interest income 32 34 (5.9) Interest expense (98) (92) 6.5 Interest capitalized 29 33 (12.1) Miscellaneous - net (6) (4) 50.0 (43) (29) 48.3 Earnings Before Income Taxes $ 228 $ 268 (14.9) Pre-tax Margin 5.1% 6.4% (1.3) pts. Sabre Revenues $ 541 $ 571 (5.3) Operating Expenses 497 543 (8.5) Operating Income 44 28 57.1 Other Income 110 3 * Earnings Before Income Taxes $ 154 $ 31 * Pre-tax Margin 28.5% 5.4% 23.1 pts. * Greater than 100%
Note: Certain amounts from 1998 have been reclassified to conform with 1999 presentation. 13 AMR CORPORATION BUSINESS SEGMENT FINANCIAL HIGHLIGHTS (in millions) (Unaudited)
Year Ended December 31, Percent 1999 1998 Change Airline Group Revenues Passenger - American Airlines $14,707 $14,695 0.1 - AMR Eagle 1,294 1,121 15.4 Cargo 643 656 (2.0) Other 1,031 1,003 2.8 17,675 17,475 1.1 Expenses Wages, salaries and benefits 6,101 5,774 5.7 Aircraft fuel 1,696 1,604 5.7 Commissions to agents 1,162 1,226 (5.2) Depreciation and amortization 1,091 1,039 5.0 Maintenance, materials and repairs 1,002 934 7.3 Other rentals and landing fees 941 837 12.4 Food service 740 675 9.6 Aircraft rentals 630 569 10.7 Other operating expenses 3,174 2,859 11.0 Total operating expenses 16,537 15,517 6.6 Operating Income 1,138 1,958 (41.9) Other Income (Expense) Interest income 97 131 (26.0) Interest expense (398) (374) 6.4 Interest capitalized 118 104 13.5 Miscellaneous - net 9 (21) * (174) (160) 8.8 Earnings Before Income Taxes $ 964 $ 1,798 (46.4) Pre-tax Margin 5.5% 10.3% (4.8) pts. Sabre Revenues $2,435 $ 2,306 5.6 Operating Expenses 2,062 1,956 5.4 Operating Income 373 350 6.6 Other Income 155 21 * Earnings Before Income Taxes $ 528 $ 371 42.3 Pre-tax Margin 21.7% 16.1% 5.6 pts.
* Greater than 100% Note: Certain amounts from 1998 have been reclassified to conform with 1999 presentation. 14 AIRLINE GROUP OPERATING STATISTICS (Unaudited)
Three Months Ended December 31, Percent 1999 1998 Change American Airlines Jet Operations: Revenue passenger miles (millions) 27,545 26,512 3.9 Available seat miles (millions) 40,857 38,821 5.2 Cargo ton miles (millions) 585 489 19.6 Passenger load factor 67.4% 68.3% (0.9) pts. Breakeven load factor 62.3% 62.1% 0.2 pts. Passenger revenue yield per passenger mile (cents) 13.56 13.04 4.0 Passenger revenue per available seat mile (cents) 9.14 8.91 2.6 Cargo revenue yield per ton mile (cents) 29.38 33.50 (12.3) Operating expenses per available seat mile (cents) 9.44 9.20 2.6 Fuel consumption (gallons, in millions) 745 706 5.5 Fuel price per gallon (cents) 61.1 52.7 15.9 Fuel price per gallon, excluding fuel taxes (cents) 55.9 47.9 16.7 Operating aircraft at period-end 697 648 7.6 AMR Eagle: Revenue passenger miles (millions) 876 712 23.0 Available seat miles (millions) 1,504 1,145 31.4 (millions) Passenger load factor 58.3% 62.1% (3.8) pts. Operating aircraft at period-end 268 209 28.2 AMR Corporation Average Equivalent Number of Employees Airline Group: AA Jet Operations 88,500 81,700 Other 12,800 10,700 Total Airline Group 101,300 92,400 Sabre 10,400 11,800 Other 1,300 12,700 Total 113,000 116,900
15 AIRLINE GROUP OPERATING STATISTICS (Unaudited)
Year Ended December 31, Percent 1999 1998 Change American Airlines Jet Operations: Revenue passenger miles (millions) 112,067 108,955 2.9 Available seat miles (millions) 161,211 155,297 3.8 Cargo ton miles (millions) 2,068 1,974 4.8 Passenger load factor 69.5% 70.2% (0.7) pts. Breakeven load factor 63.8% 59.9% 3.9 pts. Passenger revenue yield per passenger mile (cents) 13.12 13.49 (2.7) Passenger revenue per available seat mile (cents) 9.12 9.46 (3.6) Cargo revenue yield per ton mile (cents) 30.70 32.85 (6.5) Operating expenses per available seat mile (cents) 9.39 9.25 1.5 Fuel consumption (gallons, in millions) 2,957 2,826 4.6 Fuel price per gallon (cents) 54.8 54.9 (0.2) Fuel price per gallon, excluding fuel taxes (cents) 50.1 50.1 - Operating aircraft at period-end 697 648 7.6 AMR Eagle: Revenue passenger miles (millions) 3,371 2,788 20.9 Available seat miles (millions) 5,640 4,471 26.1 Passenger load factor 59.8% 62.4% (2.6) pts. Operating aircraft at period-end 268 209 28.2 AMR Corporation Average Equivalent Number of Employees Airline Group: AA Jet Operations 86,100 81,600 Other 12,600 10,400 Total Airline Group 98,700 92,000 Sabre 11,600 11,400 Other 1,350 12,900 Total 111,650 116,300
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