COVER SHEET - 2Go

Material changes (+/- 5% or more) in the financial statements
Income Statement
• 9% increase in freight revenues is largely due to higher average freight rates and increased
revenues from its subsidiary companies Zoom in Packages and Aboitiz One, Inc.
• 4% decrease in passage revenues is due to lower volume and average passenger rates
• 418% higher revenues from sale of goods generated by its value added businesses, Scanasia, a
company purchased by Aboitiz One, Inc. in June 2008 and Aboitiz One Distribution, Inc.
• 28% higher service fees revenues from logistics, warehousing and sales merchandise.
• 37% increase in other revenues is due to overall higher passage auxiliary revenues.
• 25% increase in total revenues largely from the increase in freight revenues.
• 8% increase in operating expenses primarily due to 28% rise in fuel costs
• 20% increase in terminal expenses largely due to the 125% increase in transportation and
delivery costs which comprises the bulk of the company’s terminal expenses.
• 414% increase in cost of sales because of Scanasia, a company acquired in June 2008.
• 88% reduction on gain on disposal of property and equipment primarily because of the sale of
three vessels in 2007.
• 18% lower net finance costs due to lower interest bearing debt for the year.
• 141% lower net foreign exchange gain is due to the weakening of the peso against the dollar
throughout the year.
• 1963% higher equity in net losses of associates is due to the Company’s share in MCC
Philippines’ net loss.
• 42% higher other income is largely attributable to management fee income rendered to third
party entities.
• 74% lower income tax principally because of lower taxable income.
• 80% lower net income attributable to equity holders of parent largely because of vessel sales in
2007.
Balance Sheet
• 6% higher net receivables due to higher trade receivables
• 39% higher inventories because of higher materials, parts and supplies and higher fuel
inventory.
• 220% increase in loans payable mainly to finance the expansion of its supply-chain business
• 5% higher accounts payable and other current liabilities largely due to higher trade payables
All of these material changes were explained in detail in the management’s discussion and
analysis of financial condition and results of operations stated above.
Other Information
Other material events and uncertainties known to management that would address the past and would
have an impact on ATS’ future operations are discussed below.
i. Total fuel/lubes expense is a major component of ATS’ total cost and expenses. Fuel
prices continue to rise amidst turmoil in the Middle East and Africa. Fuel oil MTD May
2011 is US$105/barrel. ATS is constantly looking for ways to reduce fuel consumption to
lessen the impact of the increasing fuel prices on the bottom line.
ii.
Except as disclosed in the management discussion and notes to the financial statements,
there are no other known events that will trigger direct or contingent financial obligation
that is material to ATS, including any default or acceleration of an obligation. There are
also no other known trends, events or uncertainties that have had or that are reasonably
expected to have a material favorable or unfavorable impact on revenues or income from
operations.
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