Originally Posted by
Roger
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What to do with all that cash ?
Last year cash flow from operations was a remarkable $1.1b, just on $1 per share ! Tony Carter after the ASM mused that perhaps this is the highest operating cash flow of any NZX company ?
Yes they have a $2.6b fleet upgrade program over the next 4 years but normal depreciation with the expanded fleet size will be approx. $1.8b over this period so by my estimation so that's really only a net outlay in the order of $600m after fleet disposal proceeds from the 767's and Beechcraft 1900's. Further, some of the new acquisitions will be by way of operating lease not purchase.
But wait there's more ! Some of the cost of the two Dreamliner's that came online in early FY16 was funded by up-front payments in FY15 and they specifically mentioned they'd made more advanced payments on these aircraft (implying more than normal), to gain further discounts from Boeing so the politically correct speak of $2.6b of new fleet isn't really going to drain cash flow at all !
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