COVER SHEET - 2Go
COVER SHEET - 2Go
COVER SHEET - 2Go
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
iii.<br />
iv.<br />
All significant elements of income or loss from continuing operations are already<br />
discussed in the management discussion and notes to financial statements. Likewise any<br />
significant elements of income or loss that did not arise from ATS’ continuing operations<br />
are disclosed either in the management discussion or notes to financial statements.<br />
There is no material off-balance sheet transaction, arrangement, obligation, and other<br />
relationships of ATS with unconsolidated entities or other persons created during the<br />
reporting period.<br />
v. Seasonal aspects of the business are considered in ATS’ financial forecast.<br />
vi.<br />
ATS does not expect any liquidity or cash problem within the next twelve months. Capital<br />
expenditures are funded through cash generated from operations and additional<br />
borrowings.<br />
Outlook<br />
With its full fleet now in operation, focus will be on maximizing earnings. We aim to continue providing<br />
value added services at the lowest cost. Super Ferry vessels, with lower cost per slot can command<br />
higher service margins from its frequency, speed, reliability and overall better service. The<br />
strengthening of the Peso will help keep the company competitive. We are experiencing a thriving<br />
economy, with freight and passenger market growing at 9% and 14% respectively during the period in<br />
review. With no scheduled dry-docking in 2011, ATS is poised and ready to capitalize on the growth.<br />
Furthermore, ATS, jointly with NENACO, is expected to be a better and stronger company, creating<br />
greater value to shareholders.<br />
IV.<br />
BRIEF DESCRIPTION OF THE GENERAL NATURE AND SCOPE OF THE BUSINESS OF THE<br />
REGISTRANT AND ITS SUBSIDIARIES<br />
ATS is the only integrated transport solutions provider in the country. Its principal business units are<br />
engaged in the movement of people operating under brand names ‘SuperFerry’, ‘SuperCat’, and ‘Cebu<br />
Ferries’ and the movement of cargos operating under the brand name ‘2GO’. ATS’ array of services<br />
geared towards cargo movements includes containerization, RoRo services, logistics and supply chain<br />
solutions. As of December 31, 2010, ATS has a total fleet of 23 operating vessels, of which 19 are<br />
company-owned ships.<br />
ATS’ was formed and organized in May 26, 1949 under the corporate name William Lines, Inc. It is<br />
majority owned by NENACO, one of the oldest domestic shipping companies in the Philippines.<br />
Many companies work together to bring the brands of ATS to life. They enable us to deliver on our<br />
brand promises. There are instances when two or more companies work together to provide the<br />
products and service offered by a single brand, such as the case of 2GO, which has evolved into a total<br />
supply chain solutions provider.<br />
In 2010, ATS has 9 operating subsidiaries and affiliates, Aboitiz One, Inc. (AONE), Supercat Fast Ferry<br />
Corp. (SFFC), Zoom in Packages, Inc. (ZIP), Reefer Van Specialists, Inc., Aboitiz Jebsen Bulk Transport<br />
Corporation (ABOJEB), Aboitiz Jebsen Manpower Solutions, Inc. (AJMSI), Jebsen Maritime Inc. (JMI),<br />
Jebsen Management (BVI) Limited and MCC Transport Philippines, Inc (MCCP).<br />
However, ZIP and RVSI were merged into ATS by way of a statutory merger in July and September<br />
2010, respectively.<br />
Further, in December of the same period, the Board of ATS approved to sell its 62.5% equity stake in<br />
ABOJEB, AJMSI and JMI to AEV. The Board also approved the sale 50% ownership in JMBVI to ACO.<br />
Both sales were a result of the implementation of the terms and conditions for the acquisition by<br />
NENACO of AEV’s and ACO’s shares in ATS.<br />
29