01—Abstract
Summary
Summary of the 10-K/A filed March 17, 2005. Cited figures are marked; the original filing is the authoritative source.
UAL Corporation, now United Airlines Holdings, Inc., filed this Form 10-K/A (Amendment No. 1) for fiscal year 2004.
The amendment was filed solely to re-file the Report of Independent Registered Public Accounting Firm under Items 8 and 9A and Exhibit 23, because the original March 16, 2005 filing inadvertently omitted Deloitte & Touche LLP's name and conformed signature. The financial statements themselves are the company's 2004 results as a debtor-in-possession under Chapter 11, which it filed on December 9, 2002. For 2004, operating revenues were $16.39 billiona, operating expenses were $17.25 billion, and the loss from operations was $854 million.
Net loss was $1.72 billionb, or $15.25 per share, compared with a net loss of $2.81 billion in 2003. Reorganization items, net, were $611 million. Deloitte's report includes an explanatory paragraph on the Chapter 11 filing and substantial doubt about the company's ability to continue as a going concern.
The filing states that management expects to file a plan of reorganization providing for emergence later in 2005, and that UAL's presently outstanding equity securities will have no value and will be canceled under any plan the company proposes. At December 31, 2004, total assets were $20.71 billionc and liabilities subject to compromise were $16.04 billion. Stockholders' deficit was $7.68 billion.
Cash and cash equivalents were $1.22 billiond. The DIP Financing was modified effective February 22, 2005, extending its maturity to September 30, 2005. Approximately 13,000 proofs of claim totaling $57 billion remained on file with the Bankruptcy Court as of December 31, 2004.
02—Key points
Key Highlights
- 2004 operating revenues of $16.39 billion, up from $14.93 billion in 2003, with an operating loss of $854 million
- Net loss of $1.72 billion ($15.25 per share) in 2004, compared with $2.81 billion ($27.36 per share) in 2003
- Reorganization items, net, of $611 million in 2004, including a $341 million aircraft rejection charge and a $152 million pension curtailment charge
- Auditor's report includes a going-concern explanatory paragraph; the company remains in Chapter 11 and expects to file a plan of reorganization providing for emergence later in 2005
- Management states UAL's presently outstanding equity securities will have no value and will be canceled under any plan, and urges caution regarding investments in any UAL security
- Stockholders' deficit of $7.68 billion at December 31, 2004, with liabilities subject to compromise of $16.04 billion
- DIP Financing amended February 22, 2005 to extend maturity to September 30, 2005; approximately 13,000 claims totaling $57 billion remained outstanding at year-end 2004
03—Questions
Frequently Asked Questions
Why was this amended 10-K filed?
The amendment re-files the Report of Independent Registered Public Accounting Firm under Items 8 and 9A and Exhibit 23 (the auditor's consent). The original filing, made March 16, 2005, inadvertently omitted the name and conformed signature of Deloitte & Touche LLP. The filing states that this is the sole reason for the amendment.
What is the company's status under Chapter 11?
UAL, United and 26 direct and indirect wholly owned subsidiaries filed Chapter 11 petitions on December 9, 2002. They operate as debtors-in-possession under Bankruptcy Court jurisdiction. The company expects to file a plan of reorganization providing for UAL's emergence from bankruptcy later in 2005, but states there can be no assurance the court will confirm a plan or that it will be implemented successfully.
What did the company report for 2004 results?
The company reported operating revenues of $16.39 billion, operating expenses of $17.25 billion, and a loss from operations of $854 million. The net loss was $1.72 billion, or $15.25 per share, compared with a net loss of $2.81 billion, or $27.36 per share, in 2003. Fuel expense rose to $2.94 billion from $2.07 billion.
What do the filing's disclosures mean for current equity holders?
The filing states that UAL's presently outstanding equity securities will have no value and will be canceled under any plan of reorganization the company proposes. It urges that caution be exercised with respect to existing and future investments in any UAL security. Stock options are also expected to become worthless upon emergence from bankruptcy.
04—Continue