Transmile Again

It's been a while since I wrote on this stock. Transmile reported its earnings last night and it was not pretty. This morning, Business Times carried the following article on it.

• Transmile reports lower Q3 net loss
  
  Published: 2008/11/26
  
  LOCAL air cargo carrier Transmile Group Bhd (7000) reported a narrower third-quarter net loss, helped by cost reduction and higher charter revenue and general freight sales.
  
  Net loss for the quarter ended September 30 2008 narrowed to RM26.3 million, compared with a net loss of RM84.8 million during the same period a year ago.
  
  In a statement issued yesterday, Transmile, controlled by Hong Kong-based billionaire Tan Sri Robert Kuok, said the net loss included an unrealised foreign exchange loss of RM24.6 million on US dollar loans taken by a subsidiary company.
  
  If the unrealised foreign exchange loss were excluded, the group's net loss for the quarter would have been RM1.7 million.
  
  However, revenue slid 35 per cent to RM68.1 million from RM104.8 million, due to the lower flight hours as a result of the cessation of unprofitable routes flown by its four MD-11 planes since end-March 2008.
  
  Transmile managing director Liu Tai Shin said the group will continue to look for new business opportunities, including having discussions with prospective strategic partners on the possibility of flying new regional routes.
  
  He added that discussions were ongoing with the lenders on the proposed restructuring of its outstanding debts totalling RM554.1 million.
  
  "We are optimistic that a mutually agreed settlement will be reached and the restructuring of the outstanding debt will allow Transmile to pay all the debts that are due and payable in the next 12 months," he said.
  
  It is also pursuing the disposal of its MD-11 aircraft to raise cash for the repayment of its outstanding borrowings, which were raised to purchase the said aircraft.
  
  The net loss for the nine months through September 30 2008 also narrowed to RM94.9 million from RM149.3 million.
  
  Revenue was RM237.2 million, down 42 per cent from RM408.7 million.

So I decided to have a look at its Balance Sheet.

Ok, the receivables has corrected significantly ( but it's still a bit high in my opinion.) and the cash balances has diminished quite a bit (if one compares it to the same period, previous fiscal year)

And the borrowings remains high.


Here are past postings on the Transmile saga:

1. Transmile Receivables,
2. How about TransMile?,
3. TransMile,
4. More on TransMile,
5. 50 Million Adjustment for TransMile?
6. The Full audit Statement on Transmile!
7. Reviewing the events at TransMile
8. Cooking And More Cooking!!