ABX Air, Inc., formerly Airborne Express, is a cargo airline headquartered at Wilmington Air Park (formerly Airborne Airpark) in unincorporated Clinton County, Ohio, United States, near the City of Wilmington.[1] ABX Air operates scheduled, ad hoc charter and ACMI freight services. It also provides specialist training, maintenance and engineering services, and part sales. ABX Air is owned by Air Transport Services Group (NASDAQ: ATSG).
ABX Air's main customer is DHL, and the vast majority of the freight it carries is for that company. Most of ABX Air's aircraft are painted with DHL's yellow and red livery.
ABX also does cargo flights on behalf of Air Jamaica between Miami and the two Jamaican cities of Montego Bay (Donald Sangster International Airport) and Kingston (Norman Manley International Airport). One of their Boeing 767-200s routinely handles the flights, replacing the Douglas DC-8 types that flew previously. The aircraft fly with an Air Jamaica callsign of "Jamaica".
Air Transport Services Group, Inc. (ATSG), through its subsidiaries, provides aircraft, airline operations and other related services to the shipping and transportation industries. ATSG wholly owns three independent airlines, ABX Air, Inc. (ABX), Capital Cargo International Airlines, Inc. (CCIA) and Air Transport International, LLC (ATI). These United States certificated airlines transport cargo within the United States and include operations in Europe, Asia, Africa and throughout the Americas. ATSG’s leasing subsidiary, Cargo Aircraft Management, Inc. (CAM), leases aircraft to ATSG’s airlines and to external customers. During the year ended December 31, 2009, the Company operated three segments: DHL, ACMI Services and CAM. The Company’s other business operations, including aircraft maintenance and modification services, aircraft part sales, equipment leasing and maintenance, mail handling for the United States Postal Service (USPS) and specialized services for aircraft fuel management and freight logistics do not constitute segments.
ABX Cargo Services, Inc. (ACS) manages three USPS mail sort centers in Indianapolis, Indiana, Dallas, Texas and Memphis, Tennessee. Primarily through its LGSTX Fuel, Inc. (LGSTX) subsidiary, the Company provides brokerage services for airlift. The Company provides aircraft maintenance and modification services to other airlines through ABX and Airborne Maintenance and Engineering Services, Inc. (AMES). In May 2009, much of the aircraft maintenance and engineering business operations of ABX were transferred to a newly formed ATSG subsidiary, AMES.
ABX Material Services, Inc. (AMS), which holds a certificate relating to free trade zone rights, is an Aviation Suppliers Association 100 Certified reseller and broker of aircraft parts. ABX Equipment and Facility Services (AEFS) provide contract services for operators of warehouses and facilities throughout the United States. ABX and CCIA offers flight crew training to customers and rent usage of their flight simulators for outside training programs. ATSG owns six flight simulators, including one Boeing 767, one DC-8, two Boeing 727 and two DC-9 flight simulators.
DHL segment
ABX operated under two commercial agreements: the aircraft, crew, maintenance and insurance agreement with DHL Network Operations (USA), Inc. (DHL ACMI agreement) and the hub services agreement (Hub Services agreement) with DHL Express (USA), Inc. Under these agreements, ABX and DHL operated under a cost-plus pricing structure. (DHL Network Operations (USA), Inc. and DHL Express (USA), Inc. is individually and collectively referred to as DHL). ABX managed a United States network of 19 hubs for DHL, including DHL’s primary United States sorting facility, which was located in the air park in Wilmington, Ohio. Through March 31, 2010, ABX provides airlift under the DHL ACMI agreement for DHL’s international delivery services in the United States through ABX’s Boeing 767 aircraft.
ACMI Services
The Company, through its three airlines, provides airlift to freight forwarders, other airlines and other customers, under ACMI and charter contracts. An ACMI contract requires the ATSG airline to supply, at a specific rate per block hour, the aircraft, crew, maintenance and insurance for specified cargo operations, while the customer is responsible for all other aircraft operating expenses, including fuel, landing fees, parking fees and ground and cargo handling expenses. CCIA and ATI each have contracts to provide airlift to BAX Global, Inc. (BAX) under ACMI agreements. BAX provides freight transportation and supply chain management services, specializing in the heavy freight market for business-to-business shipping.
CAM
CAM’s fleet consists of Boeing 767, Boeing 757, Boeing 727 and DC-8 aircraft. CAM leases aircraft to ATSG airlines and to external customers under multi-year contracts with a schedule of fixed monthly payments. Under a lease arrangement, the customer maintains the aircraft in serviceable condition at its own cost. CAM examines the creditworthiness of customers, their short and long-term growth prospects, their financial condition and backing, the experience of their management, and the impact of governmental regulation on the market when determining the lease rate that is offered to the customer. In addition, CAM monitors the customer’s business and financial status throughout the term of the lease.
OVERALL
Beta: 3.91
Market Cap (Mil.): $517.09
Shares Outstanding (Mil.): 64.31
Annual Dividend: --
Yield (%): --
FINANCIALS
ATSG.O Industry Sector
P/E (TTM): 12.90 4.51 15.79
EPS (TTM): 39.70 -- --
ROI: 5.01 0.76 2.81
ROE: 14.56 1.21 5.15
Name Age Since Current Position
Carey, James 78 2004 Independent Chairman of the Board
Hete, Joseph 56 President, Chief Executive Officer, Director; Chief Executive Officer of ABX Air, Inc.
Turner, Quint 48 2008 Chief Financial Officer of Air Transport Services Group, Inc. and ABX Air, Inc.
Manibusan, Dennis 61 2010 President of Capital Cargo International Airlines Inc.
Graber, John 53 2008 President of ABX Air, Inc
Corrado, Richard 51 2010 Chief Commercial Officer; President of Cargo Aircraft Management, Inc
Hobson, James 68 2010 President of Air Transport International, LLC.
Templeton, Brady 50 2009 President, Airborne Maintenance & Engineering Services, Inc.
Payne, W. Joseph 47 2008 Sr. VP, Corporate General Counsel, Secretary; VP, General Counsel, Secretary ABX Air, Inc.
Bushman, James 66 2004 Independent Director
Geary, John 84 2004 Independent Director
Vorholt, Jeffrey 58 2004 Independent Director
Rademacher, Randy 54 2006 Independent Director
Dominick, Jeffrey 46 2008 Independent Director
Teets, John 38 2009 Independent Director
Location Type Branch
Annual Sales (Estimated) $100 to 500 million
Employees (Estimated) 1,000 to 4,999
5,620 **
At this location
500
SIC Code 559908, Aircraft Equipment Parts & Supplies
NAICS Code 441229, All Other Motor Vehicle Dealers
Products, Services
and Brands
Information not found
State of Incorporation Information not found
Years in Business 30
In Millions of USD (except for per share items) 3 months ending 2010-12-31 3 months ending 2010-09-30 3 months ending 2010-06-30 3 months ending 2010-03-31 3 months ending 2009-12-31
Revenue 178.60 167.73 160.11 160.94 250.51
Other Revenue, Total - - - - -
Total Revenue 178.60 167.73 160.11 160.94 250.51
Cost of Revenue, Total 110.47 102.68 97.96 102.57 181.32
Gross Profit 68.13 65.04 62.15 58.37 69.19
Selling/General/Admin. Expenses, Total 11.46 12.68 11.32 11.77 12.39
Research & Development - - - - -
Depreciation/Amortization 22.28 22.76 21.75 20.80 21.61
Interest Expense(Income) - Net Operating - - - - -
Unusual Expense (Income) - - - - 0.00
Other Operating Expenses, Total 10.25 8.38 8.67 9.91 11.78
Total Operating Expense 154.46 146.50 139.70 145.04 227.10
Operating Income 24.14 21.23 20.41 15.90 23.41
Interest Income(Expense), Net Non-Operating - - - - -
Gain (Loss) on Sale of Assets - - - - -
Other, Net - - - - -
Income Before Tax 19.96 16.67 15.90 10.78 17.65
Income After Tax 11.85 11.39 9.91 6.75 10.31
Minority Interest - - - - -
Equity In Affiliates - - - - -
Net Income Before Extra. Items 11.85 11.39 9.91 6.75 10.31
Accounting Change - - - - -
Discontinued Operations - - - - -
Extraordinary Item - - - - -
Net Income 11.84 11.16 9.68 7.16 11.51
Preferred Dividends - - - - -
Income Available to Common Excl. Extra Items 11.85 11.39 9.91 6.75 10.31
Income Available to Common Incl. Extra Items 11.84 11.16 9.68 7.16 11.51
Basic Weighted Average Shares - - - - -
Basic EPS Excluding Extraordinary Items - - - - -
Basic EPS Including Extraordinary Items - - - - -
Dilution Adjustment - 0.00 0.00 0.00 0.00
Diluted Weighted Average Shares 63.81 64.20 64.42 63.60 63.57
Diluted EPS Excluding Extraordinary Items 0.19 0.18 0.15 0.11 0.16
Diluted EPS Including Extraordinary Items - - - - -
Dividends per Share - Common Stock Primary Issue 0.00 0.00 0.00 0.00 0.00
Contact
1111 Airport Road # 2065-A
Wilmington, OH 45177-8904
ABX Air's main customer is DHL, and the vast majority of the freight it carries is for that company. Most of ABX Air's aircraft are painted with DHL's yellow and red livery.
ABX also does cargo flights on behalf of Air Jamaica between Miami and the two Jamaican cities of Montego Bay (Donald Sangster International Airport) and Kingston (Norman Manley International Airport). One of their Boeing 767-200s routinely handles the flights, replacing the Douglas DC-8 types that flew previously. The aircraft fly with an Air Jamaica callsign of "Jamaica".
Air Transport Services Group, Inc. (ATSG), through its subsidiaries, provides aircraft, airline operations and other related services to the shipping and transportation industries. ATSG wholly owns three independent airlines, ABX Air, Inc. (ABX), Capital Cargo International Airlines, Inc. (CCIA) and Air Transport International, LLC (ATI). These United States certificated airlines transport cargo within the United States and include operations in Europe, Asia, Africa and throughout the Americas. ATSG’s leasing subsidiary, Cargo Aircraft Management, Inc. (CAM), leases aircraft to ATSG’s airlines and to external customers. During the year ended December 31, 2009, the Company operated three segments: DHL, ACMI Services and CAM. The Company’s other business operations, including aircraft maintenance and modification services, aircraft part sales, equipment leasing and maintenance, mail handling for the United States Postal Service (USPS) and specialized services for aircraft fuel management and freight logistics do not constitute segments.
ABX Cargo Services, Inc. (ACS) manages three USPS mail sort centers in Indianapolis, Indiana, Dallas, Texas and Memphis, Tennessee. Primarily through its LGSTX Fuel, Inc. (LGSTX) subsidiary, the Company provides brokerage services for airlift. The Company provides aircraft maintenance and modification services to other airlines through ABX and Airborne Maintenance and Engineering Services, Inc. (AMES). In May 2009, much of the aircraft maintenance and engineering business operations of ABX were transferred to a newly formed ATSG subsidiary, AMES.
ABX Material Services, Inc. (AMS), which holds a certificate relating to free trade zone rights, is an Aviation Suppliers Association 100 Certified reseller and broker of aircraft parts. ABX Equipment and Facility Services (AEFS) provide contract services for operators of warehouses and facilities throughout the United States. ABX and CCIA offers flight crew training to customers and rent usage of their flight simulators for outside training programs. ATSG owns six flight simulators, including one Boeing 767, one DC-8, two Boeing 727 and two DC-9 flight simulators.
DHL segment
ABX operated under two commercial agreements: the aircraft, crew, maintenance and insurance agreement with DHL Network Operations (USA), Inc. (DHL ACMI agreement) and the hub services agreement (Hub Services agreement) with DHL Express (USA), Inc. Under these agreements, ABX and DHL operated under a cost-plus pricing structure. (DHL Network Operations (USA), Inc. and DHL Express (USA), Inc. is individually and collectively referred to as DHL). ABX managed a United States network of 19 hubs for DHL, including DHL’s primary United States sorting facility, which was located in the air park in Wilmington, Ohio. Through March 31, 2010, ABX provides airlift under the DHL ACMI agreement for DHL’s international delivery services in the United States through ABX’s Boeing 767 aircraft.
ACMI Services
The Company, through its three airlines, provides airlift to freight forwarders, other airlines and other customers, under ACMI and charter contracts. An ACMI contract requires the ATSG airline to supply, at a specific rate per block hour, the aircraft, crew, maintenance and insurance for specified cargo operations, while the customer is responsible for all other aircraft operating expenses, including fuel, landing fees, parking fees and ground and cargo handling expenses. CCIA and ATI each have contracts to provide airlift to BAX Global, Inc. (BAX) under ACMI agreements. BAX provides freight transportation and supply chain management services, specializing in the heavy freight market for business-to-business shipping.
CAM
CAM’s fleet consists of Boeing 767, Boeing 757, Boeing 727 and DC-8 aircraft. CAM leases aircraft to ATSG airlines and to external customers under multi-year contracts with a schedule of fixed monthly payments. Under a lease arrangement, the customer maintains the aircraft in serviceable condition at its own cost. CAM examines the creditworthiness of customers, their short and long-term growth prospects, their financial condition and backing, the experience of their management, and the impact of governmental regulation on the market when determining the lease rate that is offered to the customer. In addition, CAM monitors the customer’s business and financial status throughout the term of the lease.
OVERALL
Beta: 3.91
Market Cap (Mil.): $517.09
Shares Outstanding (Mil.): 64.31
Annual Dividend: --
Yield (%): --
FINANCIALS
ATSG.O Industry Sector
P/E (TTM): 12.90 4.51 15.79
EPS (TTM): 39.70 -- --
ROI: 5.01 0.76 2.81
ROE: 14.56 1.21 5.15
Name Age Since Current Position
Carey, James 78 2004 Independent Chairman of the Board
Hete, Joseph 56 President, Chief Executive Officer, Director; Chief Executive Officer of ABX Air, Inc.
Turner, Quint 48 2008 Chief Financial Officer of Air Transport Services Group, Inc. and ABX Air, Inc.
Manibusan, Dennis 61 2010 President of Capital Cargo International Airlines Inc.
Graber, John 53 2008 President of ABX Air, Inc
Corrado, Richard 51 2010 Chief Commercial Officer; President of Cargo Aircraft Management, Inc
Hobson, James 68 2010 President of Air Transport International, LLC.
Templeton, Brady 50 2009 President, Airborne Maintenance & Engineering Services, Inc.
Payne, W. Joseph 47 2008 Sr. VP, Corporate General Counsel, Secretary; VP, General Counsel, Secretary ABX Air, Inc.
Bushman, James 66 2004 Independent Director
Geary, John 84 2004 Independent Director
Vorholt, Jeffrey 58 2004 Independent Director
Rademacher, Randy 54 2006 Independent Director
Dominick, Jeffrey 46 2008 Independent Director
Teets, John 38 2009 Independent Director
Location Type Branch
Annual Sales (Estimated) $100 to 500 million
Employees (Estimated) 1,000 to 4,999
5,620 **
At this location
500
SIC Code 559908, Aircraft Equipment Parts & Supplies
NAICS Code 441229, All Other Motor Vehicle Dealers
Products, Services
and Brands
Information not found
State of Incorporation Information not found
Years in Business 30
In Millions of USD (except for per share items) 3 months ending 2010-12-31 3 months ending 2010-09-30 3 months ending 2010-06-30 3 months ending 2010-03-31 3 months ending 2009-12-31
Revenue 178.60 167.73 160.11 160.94 250.51
Other Revenue, Total - - - - -
Total Revenue 178.60 167.73 160.11 160.94 250.51
Cost of Revenue, Total 110.47 102.68 97.96 102.57 181.32
Gross Profit 68.13 65.04 62.15 58.37 69.19
Selling/General/Admin. Expenses, Total 11.46 12.68 11.32 11.77 12.39
Research & Development - - - - -
Depreciation/Amortization 22.28 22.76 21.75 20.80 21.61
Interest Expense(Income) - Net Operating - - - - -
Unusual Expense (Income) - - - - 0.00
Other Operating Expenses, Total 10.25 8.38 8.67 9.91 11.78
Total Operating Expense 154.46 146.50 139.70 145.04 227.10
Operating Income 24.14 21.23 20.41 15.90 23.41
Interest Income(Expense), Net Non-Operating - - - - -
Gain (Loss) on Sale of Assets - - - - -
Other, Net - - - - -
Income Before Tax 19.96 16.67 15.90 10.78 17.65
Income After Tax 11.85 11.39 9.91 6.75 10.31
Minority Interest - - - - -
Equity In Affiliates - - - - -
Net Income Before Extra. Items 11.85 11.39 9.91 6.75 10.31
Accounting Change - - - - -
Discontinued Operations - - - - -
Extraordinary Item - - - - -
Net Income 11.84 11.16 9.68 7.16 11.51
Preferred Dividends - - - - -
Income Available to Common Excl. Extra Items 11.85 11.39 9.91 6.75 10.31
Income Available to Common Incl. Extra Items 11.84 11.16 9.68 7.16 11.51
Basic Weighted Average Shares - - - - -
Basic EPS Excluding Extraordinary Items - - - - -
Basic EPS Including Extraordinary Items - - - - -
Dilution Adjustment - 0.00 0.00 0.00 0.00
Diluted Weighted Average Shares 63.81 64.20 64.42 63.60 63.57
Diluted EPS Excluding Extraordinary Items 0.19 0.18 0.15 0.11 0.16
Diluted EPS Including Extraordinary Items - - - - -
Dividends per Share - Common Stock Primary Issue 0.00 0.00 0.00 0.00 0.00
Contact
1111 Airport Road # 2065-A
Wilmington, OH 45177-8904