Exhibit 99.1
ABX HOLDINGS, INC. May 13, 2008
Shareholders’ Meeting
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ABX HOLDINGS, INC.
Safe Harbor Statement
Except for historical information contained herein, the matters discussed in this presentation contain forward-looking statements that involve risks and uncertainties. ABX Holdings’ actual results may differ materially from the results discussed in the forward-looking statements. There are a number of important factors that could cause the Company’s actual results to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, ABX Holdings’ ability to leverage synergies arising from the acquisition of Cargo Holdings International, ABX Air’s ability to maintain cost and service level performance under its commercial agreements with DHL, significant reductions in the scope of services under ABX Air’s commercial agreements with DHL, ABX Holdings’ ability to generate revenues and earnings from sources other than DHL and other factors that are contained from time to time in ABX Holdings’ filings with the U.S. Securities and Exchange Commission, including ABX Holdings’ Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should carefully review this presentation and should not place undue reliance on the Company’s forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this presentation. ABX Holdings undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
ABX Holdings, Inc. Non-GAAP Reconciliation
Net Earnings to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited)
Twelve Months Ended December 31
2004 2005 2006 2007 2007 pro forma
GAAP Net Earnings $ 36,973 $ 30,312 $ 90,054 $ 19,587 $ 23,354
Depreciation & Amortization 36,817 41,167 45,660 51,747 94,160
Interest Expense 8,956 10,805 11,547 14,067 38,416
Interest Income (931) (2,354) (4,775) (4,557) (6,376)
Income Tax Expense (Benefit) 0 0 (54,041) 13,701 15,691
Earnings Before Interest, Taxes Depreciation & Amortization $81,815 $79,930 $88,445 $94,545 $165,245
EBITDA is a non-GAAP financial measure and should not be considered an alternative to net income (loss) or any other performance measure derived in accordance with GAAP. EBITDA is defined as income (loss) from operations plus net interest expense, provision for income taxes, depreciation and amortization. The Company’s management uses this adjusted financial measure in conjunction with GAAP financial measures to monitor and evaluate the performance of the Company, including as a measure of liquidity. EBITDA should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP, or as an alternative measure of liquidity.
ABX HOLDINGS, INC.
Agenda
• 2007 In Review
• First Quarter 2008
• Diversification Progress
• 2008 Focus
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ABX HOLDINGS, INC.
2007 Accomplishments
• Placed seven additional 767s into service
• Expanded global reach of ACMI operations into Asia
• Received IATA International Safety Certification
• Formed holding company
• Acquired Cargo Holdings International, Inc. (CHI)
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ABX HOLDINGS, INC.
Financial Results 2007 vs 2006
Revenues
$1.26B
DHL $1.21B
ACMI SVCS $24.4M
OTHER $24.1M
2006
$1.17B
DHL $1.08B
ACMI SVCS $55.6M
OTHER $36.0M
2007
-7%
Earnings
Pre-tax
$36.0M
DHL $22.5M
ACMI SVCS $3.7M
OTHER $9.8M
2006
$33.3M
DHL $21.2M
ACMI SVCS $4.6M
OTHER $7.5M
2007
-8%
+2%
Excluding linehaul, 2006
-1%
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ABX HOLDINGS, INC.
EBITDA*
$81.8M
2004
$79.9M
2005
$88.4M
2006
$94.5M
2007
$165.2M
2007
pro forma
*EBITDA is defined as income from operations plus net interest expense, provision for income taxes, depreciation and amortization. It is a non-GAAP financial measure and should not be considered an alternative to net income (loss) or any other performance measure derived in accordance with GAAP. Please refer to Slide 2 for a statement showing a reconciliation of EBITDA to GAAP Net Income.”
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ABX HOLDINGS, INC.
Capital Expenditure Trends
$74M
$65
$9
2004
$61M
$49
$12
2005
$100M
$75
$14
2006
$160M
$142
$18
2007
~$130M
2008E
Maintenance Growth
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ABX HOLDINGS, INC.
First Quarter 2008
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ABX HOLDINGS, INC.
First Quarter Accomplishments
• Renewed BAX/Schenker contract
• Renewed and extended ANA agreement
• Completed modification of our first 757
• Expanded DHL-US ACMI fleet
• Executed first 767 dry lease
• Staffed Osaka domicile
• Met service commitments to DHL during severe weather at Wilmington (ILN) Hub
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ABX HOLDINGS, INC.
First Quarter 2008 Results
(in thousands) DHL ACMI CAM/OTHER TOTAL
Base $279,974 $ 93,293 $ 7,946 $381,213
Incremental 843 — — 843
Revenues 280,817 93,293 7,946 382,056
Expenses (276,856) (92,204) (3,197) (372,257)
Interest — — (3,592) (3,592)
Pretax $ 3,961 $ 1,089 $ 1,157 $ 6,207
Earnings
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ABX HOLDINGS, INC.
1Q 2007 vs 1Q 2008
Revenues Earnings
$382.0M Pre-tax
DHL
$280.8M
$288.1M $6.9M
DHL DHL $6.2M
$273.0M $3.8M
DHL
$3.9M
ACMI SVCS
$1.0M
ACMI SVCS
ACMI SVCS $1.1M
ACMI SVCS $93.3M CAM/OTHER
$7.0M $2.1M CAM/OTHER
CAM/OTHER CAM/OTHER $1.2M
$8.1M $7.9M
1Q 2007 1Q 2008 1Q 2007 1Q 2008
33% -10%
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ABX HOLDINGS, INC.
Diversification
Results
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ABX HOLDINGS, INC.
Our Business
Market Dynamics
Favorable demand/supply dynamics
Growth for ACMI solutions
Attractive Freighter Aircraft
Largest fleet of 767 freighters
Scarce, efficient assets delivering lowest unit operating costs
Introducing 757
Significant Customer Relationships
DHL
BAX/Schenker
U.S. Military
USPS
Diversified Portfolio of Assets & Services
ACMI
Dry Leasing
Air Mobility Command - Combis
Commercial Charter
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ABX HOLDINGS, INC.
3 Airlines, 3 Distinct Opportunities
• 27-year history geared toward supporting U.S. express market
• DHL’s largest U.S. air service provider
• Superior service reputation and technical capabilities
• Fleet makeup – 767s, DC-9s
• International, military support, DC-8 combis with passenger/cargo capability
• Heavyweight domestic freight for BAX/Schenker
• Flexibility to serve long haul routes with efficient cost structure
• Fleet makeup – DC-8s, anticipating 767 certification Summer 2008
• On-demand charter, focused on ACMI and wet lease market
• Heavyweight domestic freight for BAX/Schenker
• Fleet makeup – 727s, 757 certification May 2008
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ABX HOLDINGS, INC.
CAM Offers Leasing Flexibility
Today
• Own 23 of 30 DC8/727 aircraft operated by ATI and CCIA
• Lease one 757 to CCIA and one 767 to ABX Air
• Own an additional 767 ready for lease
By year end 2008
• Anticipate six 767s owned and available for service
• Two more in First Quarter 2009
• Two 767s dry-leased to external customer
Future
• CAM has flexibility to dry-lease aircraft to any airline
• Choose aircraft deployment to achieve highest and best use
• Passenger to freighter conversion management
• Offer complementary support services to lessees:
– training, maintenance, and parts support
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ABX HOLDINGS, INC.
Diversification Progress
New Businesses Bring Strong Returns
2004 2007 2007 pro forma
Revenues 2% 8% 27%
98% 92% 73%
EBITDA 7% 27% 58%
93% 73% 42%
DHL
OTHER
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ABX HOLDINGS, INC.
2008
Focus
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ABX HOLDINGS, INC.
Solid Platform for Growth
Customer & Geographic Market Expansion
Expand relationships with new and existing customers
Asia
Latin America
Fleet Expansion
Evaluate additional aircraft types for new markets
Additional 767s
757
Dry Leasing
Expand service offerings, broaden customer base
Acquisition of CAM
Freighter aircraft
Logical Extensions to ACMI Business
Expand ACMI franchise into related services
Crew training
Aircraft management and servicing
Business Combinations and Alliances
Enhance profitability and competitive position
BAX/Schenker
Neutral gateway
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ABX HOLDINGS, INC.
Core Customers
• Revenues principally from ACMI and Hub Services support of DHL’s-US Express network. ABX Air is by far DHL’s largest U.S. business partner.
• Two 767-200 freighters from ABX supporting DHL’s U.S. Express network under separate ACMI arrangements though 2008.
• CCIA supporting DHL with 757 service from U.S. to Latin America
• Proposing options concerning U.S. network restructuring plans and role of 767s in improving efficiency and reliability
• Cargo Holdings International acquired ATI from BAX Global in February 2006.
• Exclusive provider of main-deck freighter lift in the BAX/Schenker-U.S. domestic system through 2011.
• Relationship with Deutsche Bahn’s BAX/Schenker remains strong. Core operations are fully dependent on the services of ATI and CCIA.
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ABX HOLDINGS, INC.
Realizable Cash Flow
767 vs DC-9
DC-9s
767
1 55
~ $20M ~ $20M
(FMV of 767-200SF) (Remaining NBV)
Addition of one 767 freighter generates same cash flow from depreciation as remaining net book value of DC-9s in DHL network.
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ABX HOLDINGS, INC.
Growth Driven Demand for ACMI Solutions
Intra-North
America
3.8%
Intra-Asia
8.6%
North
America-
Latin
America
5.6%
World Average – 6.1%
Data Source: Boeing World
Cargo Forecast 2006-2007
#1 Growth Market – Domestic China – 10.8.%
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ABX HOLDINGS, INC.
Medium Wide-body Fleet Overview
47
ABXA owned aircraft in MOD delivery by March 31, 2009.
40
ABXA in service as of March 31, 2008
6
5
4
1
ABXA ASTAR Florida West Tampa Tradewinds
Source: Flight
International
(767) (A300) (767) (767) (A300)
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ABX HOLDINGS, INC.
Newer Technology, lower unit cost
Uniquely positioned as leading provider of 767 ACMI aircraft
Eight additional 767 freighter aircraft scheduled in 2008-2009
Lack of used passenger aircraft for cargo conversion is a barrier to entry
Fuel Efficiency
27% lower fuel burn per block hour than the A300
Capacity & Range
60% greater range than the A300 with 95,000 lb. payload
Design
More fuel-efficient engines
2-crew flight deck
Reduced maintenance costs
Cargo Loading
Perishable capability
Five main deck load configurations
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ABX HOLDINGS, INC.
Projected Medium Wide-body Growth
Medium wide-body fleet is projected to be the fastest growing through 2027
3,910
• Through 2012: 7.6% CAGR; total global freighter fleet 2.9%
• Through 2027: 4.9% CAGR; total global freighter fleet 3.9% 3,315
1,372
2,654 1,067
2,083 808
1,797 1,179
667 1,054
552 877
453 652 575
540
400
263 260
529 504 569 654 784
Source: Air Cargo 2007 2012 2017 2022 2027
Management
Group, 2008 small medium narrow medium wide large
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ABX HOLDINGS, INC.
Other Lines of Business
• Third-party maintenance and technical services
• Heavy Maintenance
• Line Maintenance
• Spare parts
• Component repairs
• USPS – Sort Center Management/Operation
• Three additional facilities for bid in 2008
• LGSTX – charter management, fuel management
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ABX HOLDINGS, INC.
Our Value Proposition
• Strong cash flow from high-profile strategic customers, including DHL, BAX/Schenker, ANA, U.S. Military, U.S. Postal Service, UPS.
• Federal tax liability offset by deferred tax assets through 2011.
• Nominal fuel-cost exposure via either ACMI or dry-lease business models.
• World’s largest combined fleet of scarce, efficient 767s.
• Exceptional service quality record with in excess of 98% on-time performance for major ACMI customers.
• Opportunities to supplement aircraft leasing with technical, fuel management, and logistics support services.
• Global presence, including fast-growing Asian and Latin American markets.
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ABX HOLDINGS, INC.
Thank
you
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ABX HOLDINGS, INC.
ABX Holdings, Inc. becomes …
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