Exhibit 99.1
Exhibit 99.1
Shareholder Meeting May 5, 2005
Then
1980
52 aircraft 11 types 550 employees 161,000 pounds/day 195,000 pound lift capacity 94,000 gallons of fuel/night
Now
2005
114 aircraft in service 3 types 8,000+ employees 10,437,000 pounds/day 4,028,000 pound lift capacity 574,500 gallons of fuel/night
A Historical Snapshot
The 1980s
Airborne/Midwest Charter Merger
Added the first DC-9 (Dec. 1980)
Started flying DC-8s (April 1986)
C-Container Patented
Added two sort buildings
Added a new hangar
The 1990s
Added another hangar
Built three more sort buildings 100th aircraft in service Second Runway
Added Boeing 767
2000 & beyond
Separated from Airborne
DHL as primary customer
114 aircraft—3 types in service
The ABX Numbers
=1,000 employees =100,000 pieces =10 aircraft
2004 Milestones
Hub Consolidation Fleet Rationalization Seven new Hubs Impact on Linehaul 767 Special Freighter Non DHL Business
Hub Consolidation
DHL announced Wilmington as consolidated Hub location in June 2004 Targeted Completion 3rd Q 2005 2nd Largest International Gateway in U.S.
Construction progress
F Building
The changing face of where we do business
Wilmington – Building F
E Ramp
The changing face of where we do business
Wilmington – Ramp E
(previously employee parking)
4/9/05
A Ramp
The changing face of where we do business
Wilmington – Ramp A / Bldg 11 / Bldg F
Building F
Ramp A (existing)
Ramp A (extension)
Bldg 11
D Ramp
The changing face of where we do business
Wilmington – Ramp D (extension) New Parking
New Parking
Extension
2004 Milestones
Hub Consolidation Fleet Rationalization Seven new Hubs Impact on Linehaul 767 Special Freighter Non DHL Business
Fleet Rationalization
Planned changes 26 aircraft (net 22 flights) Approx. 20% of existing capacity
Impact when fully implemented Revenue Impact of $86-96m Earnings Impact $0.8-1.5m Cash Flow $3.5-4.2m
2004 Milestones
Hub Consolidation Fleet Rationalization Seven new Hubs Impact on Linehaul 767 Special Freighter Non DHL Business
Regional Hub Expansion
Seven new hubs added throughout the U.S. Managed by ABX New total 18 regional hubs
Regional Hub coverage pre-2004
Regional Hub coverage NOW
2004 Milestones
Hub Consolidation Fleet Rationalization Seven new Hubs Impact on Linehaul 767 Special Freighter Non DHL Business
Impact on Linehaul
2003
Total lanes (trips) 420,075
2004
Total lanes (trips) 524,409 24.8% increase
2004 Milestones
Hub Consolidation Fleet Rationalization Seven new Hubs Impact on Linehaul 767 Special Freighter Non DHL Business
First 767 Freighter in-service
First ever Passenger to Special Freighter Modification Completed by IAI Currently have three 767 Special Freighters Higher degree of utility Increased cube capacity
2004 Milestones
Hub Consolidation Fleet Rationalization Seven new Hubs Impact on Linehaul 767 Special Freighter Non DHL Business
Non DHL Business
ACMI Services
Space-available Services Aircraft Maintenance and Technical Services Flight Training Sort Services Resale Spare Parts www.abxair.com
ABX and the USPS
Indianapolis HASP (Hub and Spoke) Christmas Network Space available
The Financials
2004 Year-end Results Incremental Mark-up 101 ACMI & Hub 2004 Results Non DHL Revenue Overview 2005 1st Quarter Results ACMI & Hub 1st Q Cost Results ACMI & Hub 1st Q Service Results ABX Stock Performance
Year end 2004—Financial Results (000’s)
DHL Non-DHL Total
Base $1,161,363 $26,705 $1,188,068
Incremental 14,441 - 14,441
Total
Revenues 1,175,804 26,705 1,202,509
Expenses - 19,935 1,165,536
Earnings $30,203 $6,770 $36,973
Achieved 87.1% of the maximum incremental markup Non DHL Earnings increased $4.1 million over 2003 (more than double)
Revenues for achieving annual cost and service related goals are measured and reconciled at the end of each year.
ACMI Hub Reimbursable
Base $475,826 $440,602 $244,935
QTR-Incremental 2,309 1,255
YR-Incremental 4,967 5,910 - -
Total Revenues 483,102 447,767 244,935
Expenses 467,642 433,024 244,935
Earnings $15,460 $14,743 -
Incremental Mark-up 101
Status Quo Increase Costs 5% Reduce Costs 5%
ABX Costs
ABX Revenue
ABX Costs
ABX Revenue
ABX Costs
ABX Revenue $10,000 $10,000
175 10,175
BASE
ABX Profit
$175 $10,500 $10,500
184 10,684
BASE
ABX Profit
$184 $9,500 $9,500
166 128 10,684
BASE Cut Cost
ABX Profit
$294
2004 ACMI & Hub Mark-up Potential vs. Earned
Jan.-Dec 2004
ACMI
%
1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00
.35 1.35
.25
.20
Potential Cost Markup Earned Cost Markup Potential Service Markup Earned Service Markup
%
1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00
Hub
1.35
.90
.75
Non DHL Revenues—Full Year (000’s)
30,000
25,000 20,000
15,000 10,000 5,000 0
2003 2004
Other
Aircraft Tech & Parts USPS C-NET
Non DHL ACMI
1st Quarter 2005—Financial Results (000’s)
DHL Other Total
Base $339,533 $6,420 $345,953
Incremental 641 - 641
Total
Revenues 340,174 6,420 346,594
Expenses 335,069 4,442 339,511
Earnings $5,105 $1,978 $7,083
Achieved 46.5% of the maximum incremental markup Non DHL Earnings increased $0.7 million over 2004 Q1 (up 55.6%)
Q1 does NOT include markup for performance against service or annual cost targets
ACMI Hub Reimbursable
Base $122,698 $136,880 $79,955
Incremental 561 80 -
Total Revenues 123,259 136,960 79,955
Expenses 120,588 134,526 79,955
Earnings $2,671 $2,434 -
2005 ACMI & Hub Mark-up Potential vs. Earned
1st Quarter 2005
%
1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00
ACMI
.54 .47
Potential Cost Markup Earned Cost Markup
%
1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00
Hub
.54
.06
2005 ACMI & Hub Mark-up Annual Service
1st Quarter 2005
%
1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00
ACMI
.25 .10
Potential Service Markup Year-to-date Results
%
1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00
Hub
.75
.28
Non DHL Revenues—1st Quarter (000’s)
7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
1Q 2004 1Q 2005
Other
Aircraft Tech & Parts Non DHL ACMI
ABX Stock Performance
Market Cap in $millions
Stock Closing Price
$88 $145 $251 $370 $398 $379 $518 $422 $450
Aug. 16, 2003 Sept. 30, 2003 Dec. 31, 2003 March 31, 2004 June 30, 2004 Sept. 30, 2004 Dec. 31, 2004 March 31, 2005 May 3, 2005
www.abxair.com
