COVER SHEET - 2Go
COVER SHEET - 2Go
COVER SHEET - 2Go
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MANAGEMENT REPORT<br />
I. CONSOLIDATED AUDITED FINANCIAL STATEMENTS<br />
1<br />
The Consolidated Audited Financial Statements for the year ended and as of December 31, 2010 are<br />
attached to this report.<br />
II. DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES<br />
There was no event in the past years where SGV and the Corporation had any disagreements with<br />
regard to any matter relating to accounting principles or practices, financial statement disclosure or<br />
auditing scope or procedure.<br />
III. MANAGEMENT’S DISCUSSION AND ANALYSIS<br />
Key Performance Indicators (KPI)<br />
The following KPI’s are used to evaluate the financial performance of ATS and its subsidiaries:<br />
a. Revenues – ATS revenues are mainly composed of freight and passage revenues and they are<br />
recognized when the related services are rendered. Total Revenue for the three months ended<br />
March 31, 2011 is P3.0 billion. Further, in 2010, total revenue is P11.6 billion compared to P10.5<br />
billion in 2009.<br />
b. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) - is calculated by adding<br />
back interest expense, amortization and depreciation into income before income tax, excluding<br />
extraordinary gains or losses. EBITDA for March 31, 2011 is P115 million while in 2010, the<br />
Company’s EBITDA is P742million.<br />
c. Income before income tax (IBT)<br />
– is the earnings of the company before income tax expense. The<br />
Loss Before Income Tax for 2010 is P1.5 billion, 326% lower compared to P679.0 million in 2009.<br />
ATS reflected close to P897 million other charges brought about by Impairment loss on ships in<br />
operation and finance costs. The Loss Before Income Tax for March 31, 2011 is P320.3 million.<br />
d. Debt-to<br />
to-equity ratio – is determined by dividing total liabilities over stockholders’ equity. ATS’<br />
debt-to-equity ratio in 2010 is 2.14:1:00. ATS’ debt-to-equity ratio in 2011 is 2.37:1:0. Total<br />
liabilities increased by P304 million due to additional borrowings and Total equity stood at P3. 7<br />
billion or 7% lower compared to 2010 due to the loss for the first quarter of 2011.<br />
e. Current ratio – is measured by dividing total current assets by total current liabilities. The<br />
Company’s current ratio in 2010 is 0.56:1:00. Further, the Company’s current ratio as of March 31,<br />
2011 is 1.05:1:00. Total current assets is P5 billion or 6% higher than 2010. Total current liabilities<br />
are P4.7 billion or 43% decrease compared to 2010.<br />
The following table shows comparative figures of the Top Five key performance indicators (KPI) for<br />
2010, 2009, and 2008 (amounts in millions except for the financial ratios) based on the consolidated<br />
financial statements of ATS as well as each of its subsidiaries:<br />
Consolidated ATS and Subsidiaries<br />
March 31, 2011 Dec. 31, 2010 Dec. 31, 2009 Dec. 31, 2008<br />
Revenues 3,048 11,611 10,510 10,273<br />
EBITDA (a) 115 742 1,394 944<br />
IBT (b) (320) (1,536) 679 119<br />
Debt-to-Equity Ratio (c) 2.37:1.0 2.14:1.00 1.05:1.00 1.1:1.00<br />
Current Ratio (d) 1.05:1.00 0.56:1.00 0.9:1.00 0.9:1.00<br />
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