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<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarter ended: June 30, 1994
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from
______________________________ to______________________________________
Commission file number: 1-8400
AMR CORPORATION
(Exact name of registrant as specified in its charter)
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<S> <C>
DELAWARE 75-1825172
(State or other jurisdiction of (IRS Employer identification No.)
incorporation or organization)
4333 AMON CARTER BLVD.
FORT WORTH, TEXAS 76155
(Address of principal executive offices) (Zip Code)
</TABLE>
Registrant's telephone number, including area code: (817) 963-1234
(Former name, former address and former fiscal year, if changed since
last report.)
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 X No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.
Common Stock, $1 Par Value - 75,858,777 shares outstanding as of July 29, 1994
<PAGE> 2
AMR CORPORATION
INDEX
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Page
Number
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Part I: FINANCIAL INFORMATION
Consolidated Statement of Operations for the three and six
months ended June 30, 1994 and 1993 1
Condensed Consolidated Balance Sheet
at June 30, 1994 and December 31, 1993 2
Condensed Consolidated Statement of Cash Flows for
the six months ended June 30, 1994 and 1993 3
Notes to Financial Statements 4
Management's Discussion and Analysis of
Financial Condition and Results of Operations 5
Part II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 13
Signature 14
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<PAGE> 3 PART I
Item 1. Consolidated Financial Statements
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AMR CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(in millions, Three Months Ended June 30, Six Months Ended June 30,
except per share amounts) 1994 1993 1994 1993
<S> <C> <C> <C> <C>
Revenues
Air Transportation Group:
Passenger - American Airlines $ 3,267 $ 3,484 $ 6,295 $ 6,611
- AMR Eagle 207 180 388 345
Cargo 165 164 321 316
Other 149 130 288 268
3,788 3,958 7,292 7,540
The SABRE Group 388 347 774 677
AMR Management Services Group 127 106 258 211
Less: Intergroup revenues (202) (199) (415) (402)
Total operating revenues 4,101 4,212 7,909 8,026
Expenses
Wages, salaries and benefits 1,396 1,364 2,764 2,676
Aircraft fuel 388 495 783 970
Commissions to agents 339 376 665 711
Depreciation and amortization 320 304 640 596
Other rentals and landing fees 206 213 417 426
Aircraft rentals 172 184 351 370
Food service 171 182 333 350
Maintenance materials and repairs 149 171 292 346
Other operating expenses 559 559 1,104 1,101
Total operating expenses 3,700 3,848 7,349 7,546
Operating Income 401 364 560 480
Other Income (Expense)
Interest income 7 14 13 32
Interest expense (154) (168) (306) (343)
Interest capitalized 4 13 11 30
Miscellaneous - net (10) (144) (28) (148)
(153) (285) (310) (429)
Earnings Before Income Taxes 248 79 250 51
Income tax provision 95 32 104 26
Net Earnings 153 47 146 25
Preferred stock dividends 17 17 33 27
Earnings (Loss) Applicable to
Common Shares $ 136 $ 30 $ 113 $ (2)
Earnings (Loss) Per Common
Share:
Primary $ 1.77 $ 0.39 $ 1.48 $ (0.03)
Fully diluted $ 1.68 $ 0.39 $ 1.48 $ (0.03)
Number of common shares
used in computations
Primary 76 76 76 76
Fully diluted 90 76 76 76
</TABLE>
See accompanying notes.
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<PAGE> 4
<TABLE>
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AMR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
June 30, December 31,
(Unaudited) (in millions) 1994 1993
<S> <C> <C>
Current Assets
Cash $ 65 $ 63
Short-term investments 568 523
Receivables, net 1,040 910
Inventories, net 680 688
Other current assets 526 506
Total current assets 2,879 2,690
Equipment and Property
Flight equipment, net 10,107 9,783
Purchase deposits for flight equipment 142 350
10,249 10,133
Other equipment and property, net 2,051 2,128
12,300 12,261
Equipment and Property Under Capital
Leases
Flight equipment, net 1,664 1,543
Other equipment and property, net 173 173
1,837 1,716
Route acquisition costs, net 1,046 1,061
Other assets, net 1,805 1,598
$ 19,867 $ 19,326
Current Liabilities
Accounts payable $ 917 $ 921
Accrued liabilities 1,815 1,726
Air traffic liability 1,627 1,460
Current maturities of long-term debt 61 200
Current obligations under capital leases 128 110
Total current liabilities 4,548 4,417
Long-term debt 5,441 5,431
Obligations under capital leases 2,269 2,123
Deferred income taxes 410 310
Other liabilities, deferred gains,
deferred credits and postretirement benefits 2,800 2,769
Stockholders' Equity
Convertible preferred stock 1,081 1,081
Common stock 76 76
Additional paid-in capital 2,038 2,035
Retained earnings 1,204 1,084
4,399 4,276
$ 19,867 $ 19,326
See accompanying notes.
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<PAGE> 5
<TABLE>
<CAPTION>
AMR CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Six Months Ended June 30,
(Unaudited) (in millions) 1994 1993
<S> <C> <C>
Net Cash Provided by Operating Activities $ 992 $ 867
Cash Flow from Investing Activities:
Capital expenditures (612) (1,284)
Net increase in short-term investments (44) (272)
Investment in Canadian Airlines
International, Ltd. (177) -
Other, net 7 6
Net cash used for investing activities (826) (1,550)
Cash Flow from Financing Activities:
Proceeds from:
Issuance of long-term debt 109 166
Issuance of preferred stock - 1,081
Net repayments of short-term borrowings with
maturities of 90 days or less - (350)
Other short-term borrowings 200 -
Payments on other short-term borrowings (200) (29)
Payments on long-term debt and capital
lease obligations (242) (138)
Payments of dividends on preferred stock (33) (16)
Other, net 2 4
Net cash (used for) provided by
financing activities (164) 718
Net increase in cash 2 35
Cash at beginning of period 63 45
Cash at end of period $ 65 $ 80
Cash Payments (Refunds) For:
Interest (net of amounts capitalized) $ 294 $ 295
Income taxes (58) (117)
Financing Activities Not Affecting Cash:
Capital lease obligations incurred $ 190 $ 21
</TABLE>
See accompanying notes.
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<PAGE> 6
AMR CORPORATION
Notes to Financial Statements
(Unaudited)
1. In the opinion of management, these financial statements contain
all adjustments necessary to present fairly the financial
position, results of operations and cash flows for the periods
indicated. Such adjustments are of a normal recurring nature
except as disclosed. These financial statements and related notes
should be read in conjunction with the financial statements and
notes included in AMR's Annual Report on Form 10-K for the year
ended December 31, 1993.
2. Passenger revenues for the three and six months ended June 30,
1994, include a positive adjustment of $35 million produced by a
change in the Company's estimate of the usage patterns of miles
sold to participating companies in American's AAdvantage
frequent flyer program. Included in Passenger revenues for the
three and six months ended June 30, 1993, is a positive
adjustment of $115 million resulting from a change in estimate
relating to certain earned passenger revenues.
3. Included in Miscellaneous - net for the three and six months
ended June 30, 1993, is a $125 million charge related to the
retirement of 31 DC-10 aircraft. The charge represents the
Company's best estimate of the expected loss based upon the
anticipated method of disposition. However, should the ultimate
method of disposition differ, the actual loss could be different
than the amount estimated.
4. Accumulated depreciation of owned equipment and property at June
30, 1994 and December 31, 1993 was $5.2 billion and $4.9 billion,
respectively. Accumulated amortization of equipment and property
under capital leases at June 30, 1994 and December 31, 1993 was
$825 million and $760 million, respectively.
5.In April 1994 AMR signed a comprehensive 20-year services ag
reement with Canadian Airlines International (CAI). Among the
services AMR will provide CAI are accounting, data processing and
communications operations, operations planning, pricing and yield
management, international services, passenger services procedures
training, and U. S. originating reservations activity. Revenues
from the contract are expected to exceed $100 million in the
first full year and exceed $2.0 billion over the 20-year
contract. In April 1994 AMR also made a $177 million investment
in CAI, giving it approximately a one-third economic interest in
the company.
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<PAGE> 7
Item 2. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION
RESULTS OF OPERATIONS
Summary AMR recorded net earnings of $153 million ($1.77 per common
share primary, $1.68 fully diluted) for the three months ended June
30, 1994, compared with net earnings of $47 million ($0.39 per
common share, both primary and fully diluted) for the same period in
1993. AMR's second quarter operating income increased 10.2 percent
to $401 million.
For the six months ended June 30, 1994, AMR recorded net earnings of
$146 million ($1.48 per common share, both primary and fully
diluted) compared with net earnings of $25 million ($0.03 loss per
common share, both primary and fully diluted) for the same period of
1993. AMR's operating income improved 16.7 percent to $560 million.
AMR's results for the three and six months ended June 30, 1994,
included a $35 million positive adjustment ($22 million after tax)
to Passenger revenues produced by a change in the Company's estimate
of the usage patterns of miles sold to participating companies in
American's AAdvantage frequent flyer program.
The results for the three and six months ended June 30, 1993,
included a positive $115 million adjustment ($67 million net of
related commission expense and taxes) to passenger revenues for a
change in estimate related to certain earned passenger revenues and
a $125 million charge ($79 million after tax) for the retirement of
31 McDonnell Douglas DC-10 aircraft.
The improvement in AMR's results reflected better performance by two
of the Company's three business units - the Air Transportation
Group, which includes American Airlines, Inc.'s Passenger and Cargo
divisions and AMR Eagle, Inc.; and The SABRE Group, which includes
AMR's information technology businesses. AMR's third business unit
is the Management Services Group, which includes AMR's airline
management, aviation services, training, consulting, and investment
service activities.
The following sections provide a discussion of AMR's results by
reporting segment. A description of the businesses in each
reporting segment is included in AMR's Annual Report on Form 10-K
for the year ended December 31, 1993.
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<PAGE> 8
RESULTS OF OPERATIONS (CONTINUED)
For the Three Months Ended June 30, 1994 and 1993
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AIR TRANSPORTATION GROUP
FINANCIAL HIGHLIGHTS
(in millions)
Three Months Ended June 30,
1994 1993
<S> <C> <C>
Revenues
Passenger - American Airlines $ 3,267 $ 3,484
- AMR Eagle 207 180
Cargo 165 164
Other 149 130
3,788 3,958
Expenses
Wages, salaries and benefits 1,232 1,237
Aircraft fuel 388 495
Commission to agents 339 376
Depreciation and amortization 262 251
Other operating expenses 1,280 1,328
Total operating expenses 3,501 3,687
Operating Income 287 271
Other Income (Expense) (138) (277)
Earnings (Loss) Before Income Taxes $ 149 $ (6)
</TABLE>
American's passenger revenues decreased 6.2 percent, $217 million,
in the second quarter of 1994. Passenger revenue yield per passenger
mile decreased 2.9 percent to 13.37 cents in the second quarter.
Excluding the impact of the passenger revenue adjustments mentioned
previously, yield would have decreased 0.7 percent. Revenue
passenger miles decreased 3.4 percent while available seat miles
(ASMs) fell 7.8 percent, resulting in an improvement of 2.9 points
in the passenger load factor. As a result, American's passenger
revenue per available seat mile increased by 1.7 percent.
The decrease in American's ASMs is the result of retiring 71
aircraft (31 McDonnell Douglas DC-10 and 40 Boeing 727 aircraft) and
subleasing two McDonnell Douglas MD-11 aircraft, partially offset by
the addition of 35 new aircraft (24 Fokker F100, seven Boeing 757,
and four Boeing 767 aircraft) since June 30, 1993.
American's domestic traffic fell 5.4 percent while capacity was
reduced 8.6 percent. International traffic grew 2.2 percent while
capacity decreased 4.8 percent. The major growth in international
traffic was in Latin America, which increased 6.3 percent on a
capacity decrease of 2.0 percent.
Passenger revenues of the AMR Eagle carriers increased 15.0 percent,
$27 million, primarily due to the expansion of regional operations
into new and larger markets. Traffic on the AMR Eagle carriers
increased 20.9 percent on a capacity increase of 17.5 percent. The
increase in the AMR Eagle carriers' ASMs is the result of the
addition of 26 aircraft: (nine 64-seat Super ATR and 17 34-seat
Saab 340 aircraft) partially offset by the retirement of 29 19-seat
Jetstream 31 aircraft.
Cargo revenues were unchanged, as a 6.5 percent increase in
American's cargo volumes offset a 5.0 percent decline in yields.
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<PAGE> 9
RESULTS OF OPERATIONS (CONTINUED)
The Air Transportation Group's operating expenses decreased 5.0
percent, $186 million. Since capacity decreased more rapidly than
expenses, American's Passenger Division operating expenses per ASM
increased 1.0 percent to 8.36 cents. Wages, salaries and benefits
fell 0.4 percent, $5 million, due to a 4.3 percent reduction in the
average number of equivalent employees partially offset by salary
adjustments for existing employees. Aircraft fuel expense fell 21.6
percent, $107 million, due primarily to a 14.0 percent decrease in
American's average price per gallon combined with a 9.8 percent
decline in gallons consumed by American. Commissions to agents
decreased 9.8 percent, $37 million, due principally to the decrease
in passenger revenues. New aircraft acquisitions and other capital
expenditures raised depreciation and amortization 4.4 percent, $11
million. Other operating expenses, consisting of aircraft rentals,
other rentals and landing fees, food service costs, maintenance
costs and other miscellaneous operating expenses decreased 3.6
percent, $48 million. Maintenance expenses were lower as a result
of retiring older jet aircraft from the fleet and increased
operating efficiencies. Food service costs and landing fees fell as
a result of declines in traffic and capacity, respectively.
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AIR TRANSPORTATION GROUP OPERATING STATISTICS
Three Months Ended June 30, Percent
(Unaudited) 1994 1993 Change
<S> <C> <C> <C>
American Airlines Passenger
Division:
Revenue passenger miles 24,443 25,307 (3.4)
(millions)
Available seat miles (millions) 37,953 41,145 (7.8)
Passenger load factor 64.4% 61.5% 2.9 pts.
Passenger revenue yield
per passenger mile (cents) 13.37 13.77 (2.9)
Passenger revenue per
available seat mile (cents) 8.61 8.47 1.7
Operating expenses
per available seat mile (cents) 8.36 8.28 1.0
Fuel consumption (gallons, in
millions) 681 755 (9.8)
Fuel price per gallon (cents) 54.8 63.7 (14.0)
American Airlines Cargo Division:
Cargo ton miles (millions) 494 464 6.5
Revenue yield per ton mile (cents) 33.44 35.21 (5.0)
AMR Eagle, Inc.:
Revenue passenger miles (millions) 642 531 20.9
Available seat mile (millions) 1,123 956 17.5
Passenger load factor 57.2% 55.5% 1.7 pts.
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<PAGE> 10
RESULTS OF OPERATIONS (CONTINUED)
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THE SABRE GROUP
FINANCIAL HIGHLIGHTS
(in millions) Three Months Ended June 30,
1994 1993
<S> <C> <C>
Revenues $ 388 $ 347
Expenses
Wages, salaries and benefits 123 103
Depreciation and amortization 46 43
Other operating expenses 118 120
Total operating expenses 287 266
Operating Income 101 81
Other Income (Expense) (6) (1)
Earnings Before Income Taxes $ 95 $ 80
</TABLE>
Revenues
Revenues for The SABRE Group increased 11.8 percent, $41 million,
primarily due to increased booking fee revenues resulting from
growth in booking volumes, increases in average fees per booking
collected from participating vendors and the introduction of a
premium product.
Expenses
Wages, salaries and benefits increased 19.4 percent, $20 million,
due to a 5.2 percent increase in the average number of equivalent
employees and wage and salary increases.
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<CAPTION>
AMR MANAGEMENT SERVICES GROUP
FINANCIAL HIGHLIGHTS
(in millions) Three Months Ended June 30,
1994 1993
<S> <C> <C>
Revenues $ 127 $ 106
Expenses
Wages, salaries and benefits 41 24
Other operating expenses 73 70
Total operating expenses 114 94
Operating Income 13 12
Other Income (Expense) (9) (7)
Earnings Before Income Taxes $ 4 $ 5
</TABLE>
Revenues
Revenues for the AMR Management Services Group increased 19.8
percent, $21 million. AMR Services' revenues increased 19.9
percent to $80 million, primarily as a result of strong domestic
fuel sales, expansion of European operations, and the acquisition of
an additional domestic fixed-base operator in November 1993.
Americas Ground Services, which began operations in the second
quarter of 1993, contributed $7 million in revenues. Revenues of
AMR Training and Consulting Group, which began operations in the
first quarter of 1993, increased by approximately $8 million in the
second quarter of 1994.
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<PAGE> 11
RESULTS OF OPERATIONS (CONTINUED)
Expenses
Wages, salaries and benefits increased 70.8 percent, $17 million,
due primarily to a 42.2 percent increase in the average number of
equivalent employees driven by the acquisition and startup of the
new operations mentioned above.
For the Six Months Ended June 30, 1994 and 1993
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AIR TRANSPORTATION GROUP
FINANCIAL HIGHLIGHTS
(in millions) Six Months Ended June 30,
1994 1993
<S> <C> <C>
Revenues
Passenger - American Airlines $ 6,295 $ 6,611
- AMR Eagle 388 345
Cargo 321 316
Other 288 268
7,292 7,540
Expenses
Wages, salaries and benefits 2,443 2,422
Aircraft fuel 783 970
Commission to agents 665 711
Depreciation and amortization 526 490
Other operating expenses 2,542 2,644
Total operating expenses 6,959 7,237
Operating Income 333 303
Other Income (Expense) (285) (413)
Earnings (Loss) Before Income Taxes $ 48 $ (110)
</TABLE>
American's passenger revenues decreased 4.8 percent, $316 million,
in the first six months of 1994. Passenger revenue yield per
passenger mile decreased 2.3 percent to 13.44 cents in 1994.
Excluding the impact of the passenger revenue adjustments mentioned
previously, yield would have decreased 1.1 percent. Revenue
passenger miles decreased 2.5 percent while available seat miles
(ASMs) fell 7.1 percent, resulting in an improvement of 2.9 points
in the passenger load factor. As a result, American's passenger
revenue per available seat mile increased by 2.4 percent.
The decrease in American's ASMs is the result of retiring 71
aircraft (31 McDonnell Douglas DC-10 and 40 Boeing 727 aircraft) and
subleasing two McDonnell Douglas MD-11 aircraft, partially offset by
the addition of 35 new aircraft (24 Fokker F100, seven Boeing 757,
and four Boeing 767 aircraft) since June 30, 1993.
For the first six months of 1994 compared to the same period in
1993, American's domestic traffic decreased 4.1 percent on capacity
reductions of 7.8 percent and international traffic grew 1.7 percent
on a capacity reduction of 5.0 percent. The change in international
traffic was driven by an 8.8 percent growth in Latin America with
capacity growth of 0.4 percent, offset by a 4.5 percent decrease in
traffic to Europe primarily driven by a capacity reduction of 10.9
percent.
Passenger revenues of the AMR Eagle carriers increased 12.5 percent,
$43 million, primarily due to the expansion of regional operations
into larger markets. Traffic on the AMR Eagle carriers increased
21.0 percent, while capacity grew 14.3 percent.
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<PAGE> 12
RESULTS OF OPERATIONS (CONTINUED)
Cargo revenues increased 1.6 percent, $5 million, driven by a 7.2
percent increase in American's domestic and international cargo
volumes, partially offset by a decrease in yields of 4.4 percent
brought about by strong price competition resulting from excess
industry capacity.
American's capacity or ASMs decreased 7.1 percent in the first six
months of 1994 primarily as a result of the fleet changes mentioned
previously. Air Transportation Group's operating expenses decreased
3.8 percent, $278 million. Because capacity decreased more rapidly
than expenses, American's passenger division cost per ASM increased
by 2.0 percent to 8.51 cents. Wages, salaries and benefits rose 0.9
percent, $21 million, due primarily to salary adjustments for
existing employees, partially offset by a 3.8 percent reduction in
the average number of equivalent employees. Aircraft fuel expense
decreased 19.3 percent, $187 million, due to an 11.8 percent
decrease in American's average price per gallon, combined with a 9.1
percent decrease in gallons consumed by American. Commissions to
agents decreased 6.5 percent, $46 million, due principally to
decreased passenger revenues. New aircraft acquisitions and other
capital improvements raised depreciation and amortization costs 7.3
percent, $36 million. Other operating expenses, consisting of
aircraft rentals, other rentals and landing fees, food service
costs, maintenance costs and other miscellaneous operating expenses
decreased 3.9 percent, $102 million, primarily due to lower
maintenance costs as a result of retiring older jet aircraft from
the fleet and increased operating efficiencies. In addition, food
costs and landing fees fell as a result of declines in traffic and
capacity, respectively.
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AIR TRANSPORTATION GROUP OPERATING STATISTICS
Six Months Ended June 30, Percent
(Unaudited) 1994 1993 Change
<S> <C> <C> <C>
American Airlines Passenger
Division:
Revenue passenger miles 46,822 48,034 (2.5)
(millions)
Available seat miles (millions) 74,668 80,337 (7.1)
Passenger load factor 62.7% 59.8% 2.9 pts.
Passenger revenue yield
per passenger mile (cents) 13.44 13.76 (2.3)
Passenger revenue per
available seat mile (cents) 8.43 8.23 2.4
Operating expenses
per available seat mile (cents) 8.51 8.34 2.0
Fuel consumption (gallons, in
millions) 1,344 1,479 (9.1)
Fuel price per gallon (cents) 56.2 63.7 (11.8)
Operating aircraft at period end 650 687 (5.4)
American Airlines Cargo Division:
Cargo ton miles (millions) 937 874 7.2
Revenue yield per ton mile (cents) 34.26 35.85 (4.4)
AMR Eagle, Inc.:
Revenue passenger miles (millions) 1,182 977 21.0
Available seat miles (millions) 2,116 1,852 14.3
Passenger load factor 55.9% 52.8% 3.1 pts.
Operating aircraft at period end 278 281 (1.1)
</TABLE>
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<PAGE> 13
RESULTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
THE SABRE GROUP
FINANCIAL HIGHLIGHTS
(in millions) Six Months Ended June 30,
1994 1993
<S> <C> <C>
Revenues $ 774 $ 677
Expenses
Wages, salaries and benefits 243 204
Depreciation and amortization 91 87
Other operating expenses 236 230
Total operating expenses 570 521
Operating Income 204 156
Other Income (Expense) (10) (3)
Earnings Before Income Taxes $ 194 $ 153
</TABLE>
Revenues
Revenues for The SABRE Group increased 14.3 percent, $97 million,
primarily due to increased booking fee revenues resulting from
growth in booking volumes, increases in average fees per booking
collected from participating vendors and the introduction of a
premium product.
Expenses
Wages, salaries and benefits increased 19.1 percent, $39 million,
due to wage and salary increases and a 7.3 percent increase in the
average number of equivalent employees. Other operating expenses
increased 2.6 percent, $6 million, due to higher incentive payments
to travel agents partially offset by a decrease in maintenance costs
on computer equipment.
<TABLE>
<CAPTION>
AMR MANAGEMENT SERVICES GROUP
FINANCIAL HIGHLIGHTS
(in millions) Six Months Ended June 30,
1994 1993
<S> <C> <C>
Revenues $ 258 $ 211
Expenses
Wages, salaries and benefits 78 50
Other operating expenses 157 140
Total operating expenses 235 190
Operating Income 23 21
Other Income (Expense)
(15) (13)
Earnings Before Income Taxes $ 8 $ 8
</TABLE>
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<PAGE> 14
RESULTS OF OPERATIONS (CONTINUED)
Revenues
Revenues for the AMR Management Service Group increased 22.3
percent, $47 million. AMR Services' revenues increased 20.5 percent
to $165 million, primarily as a result of strong domestic fuel and
deicing service sales, expansion of European operations, and the
acquisition of an additional domestic fixed-base operator in
November 1993. Americas Ground Services, which began operations in
the second quarter of 1993, contributed $13 million in revenues.
Revenues of AMR Training and Consulting Group, which began
operations in the first quarter of 1993, increased by approximately
$14 million in the first six months of 1994.
Expenses
Wages, salaries and benefits increased 56.0 percent, $28 million,
due primarily to a 38.5 percent increase in the average number of
equivalent employees. Other operating expenses increased 12.1
percent, $17 million, due primarily to the startup of operations for
Americas Ground Services and AMR Training and Consulting Group and
the expansion of AMR Services.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities in the six month period
ended June 30, 1994, was $992 million compared to $867 million in
1993. Capital expenditures for the first six months of 1994 were
$612 million and included the acquisition of 16 jet aircraft by
American: two Boeing 757-200, one Boeing 767-300ER and thirteen
Fokker 100. AMR Eagle acquired eleven turboprop aircraft: eight
Super ATRs and three Saab 340Bs. In the second quarter of 1994 AMR
expended $177 million to acquire an approximate one-third economic
interest in Canadian Airlines International, Ltd. These
expenditures, plus an expansion of certain airport facilities, were
financed by internally generated cash and the issuance of long-term
debt.
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<PAGE> 15
PART II
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits filed with this report:
Part I - Exhibit 11(a): Computation of primary
earnings (loss) per share for
the three and six months ended
June 30, 1994 and 1993.
Part I - Exhibit 11(b): Computation of earnings
(loss) per share assuming full
dilution for the three and six
months ended June 30, 1994 and
1993.
(b) Reports on Form 8-K or amendments:
None.
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<PAGE> 16
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 thereunto duly authorized.
AMR CORPORATION
BY: /s/ Donald J. Carty
Donald J. Carty
Executive Vice President and
Chief Financial Officer
DATE: August 2, 1994
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<PAGE> 17
PART I - EXHIBIT 11
(a)
AMR CORPORATION
Computation of Primary Earnings (Loss) per Share
(in millions, except per share amounts)
<TABLE>
<CAPTION> Three Months Ended Six Months Ended
June 30, June 30,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Earnings (loss) as adjusted:
Net earnings (loss) $ 153 $ 47 $ 146 $ 25
Less: Preferred dividend
requirements 17 17 33 27
Earnings (loss) applicable to
common shares $ 136 $ 30 $ 113 $ (2)
Shares, as adjusted
Average number of shares
outstanding 76 75 76 75
Add shares issued upon
assumed exercise of dilutive
options,stock appreciation rights
and warrants and shares assumed
issued for deferred stock
granted 3 3 2 2
Less assumed treasury
shares repurchased (3) (2) (2) (1)
Shares, as adjusted 76 76 76 76
Primary earnings (loss) per share $ 1.77 $ 0.39 $ 1.48 $ (0.03)
</TABLE>
-15-
<PAGE> 18 PART I - EXHIBIT 11
(b)
AMR CORPORATION
Computation of Earnings (Loss) per Share
Assuming Full Dilution
(in millions, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Earnings (loss) as adjusted:
Net earnings (loss) $ 153 $ 47 $ 146 $ 25
Less: Preferred Dividend
Requirements 17 17 33 27
Earnings (loss) applicable to
common shares 136 30 113 (2)
Adjustments:
Add dividends upon assumed
conversion of convertible
preferred stock 17 - (a) -
Earnings (loss), as adjusted $ 153 $ 30 $ 113 $ (2)
Shares, as adjusted:
Average number of shares
outstanding 76 75 76 75
Add shares issued upon:
Assumed conversion of
preferred stock 14 - (a) -
Assumed exercise of
dilutive options, stock
appreciation rights and
warrants and shares
assumed issued for
deferred stock granted 3 3 2 2
Less assumed treasury
shares repurchased (3) (2) (2) (1)
Shares, as adjusted 90 76 76 76
Earnings (loss) per share
assuming full dilution $ 1.68 $ 0.39 $ 1.48 $ (0.03)
</TABLE>
(a) Conversion not assumed as results would be anti-
dilutive.
-16-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> JUN-30-1994
<CASH> 65
<SECURITIES> 568
<RECEIVABLES> 1,078
<ALLOWANCES> 38
<INVENTORY> 680
<CURRENT-ASSETS> 2,879
<PP&E> 20,120
<DEPRECIATION> 5,983
<TOTAL-ASSETS> 19,867
<CURRENT-LIABILITIES> 4,548
<BONDS> 0
<COMMON> 2,114
0
1,081
<OTHER-SE> 1,204
<TOTAL-LIABILITY-AND-EQUITY> 19,867
<SALES> 0
<TOTAL-REVENUES> 7,909
<CGS> 0
<TOTAL-COSTS> 7,349
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 306
<INCOME-PRETAX> 250
<INCOME-TAX> 104
<INCOME-CONTINUING> 146
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 146
<EPS-PRIMARY> 1.48
<EPS-DILUTED> 1.48
</TABLE>
