(Logo: http://photos.prnewswire.com/prnh/20040827/LAF044LOGO)
Reflecting economic fuel expense, the Company reported adjusted net income of
Second Quarter Financial Results
The Company reported operating income of
Second quarter 2012 operating revenue was
Total operating expenses for the second quarter 2012 decreased 2.1% to
Aircraft fuel costs in the second quarter increased 11.1% year-over-year to
The Company believes that economic fuel expense is the best measure of the effect of fuel prices on its business as it most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period. The Company defines economic fuel expense as GAAP fuel expense plus (gains)/losses realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period. For the three months ended
In the quarter ended
Liquidity, Capital Resources and Fuel Hedging
As of
- Unrestricted cash and cash equivalents of
$446.6 million and$5.0 million in restricted cash. - Available borrowing capacity of
$65.6 million under Hawaiian's Revolving Credit Facility. - Outstanding debt and capital lease obligations of
$686.8 million consisting of the following:$256.0 million outstanding under four secured loan agreements to finance a portion of the purchase price for Airbus A330-200 aircraft.$178.3 million in secured loan agreements for a portion of the purchase price for 15 previously leasedBoeing 717-200 aircraft.$110.0 million in capital lease obligations for an Airbus A330-200 and twoBoeing 717-200 aircraft.$71.2 million outstanding under floating rate notes issued in conjunction with the acquisition of threeBoeing 767-300 ER aircraft.$70.9 million outstanding of Convertible Senior Notes.$0.4 million of non-aircraft related capital lease obligations.
A summary of the Company's fuel derivatives contracts as of
Second Quarter Highlights
- The Company led the U.S. airline industry in March, April and May, ranking #1 nationally for on-time performance, as reported by the
U.S. Department of Transportation Air Travel Consumer Report . - In April, the Company launched daily non-stop service from
Honolulu toFukuoka, Japan . - In April, the Company ratified a three-year contract with the
Association of Flight Attendants . - In May, the Company announced new non-stop flights between
Honolulu andSapporo, Japan , with service three times per week beginning inNovember 2012 , pending Japanese government approval. - In May, the Company announced a reciprocal frequent flyer agreement with
JetBlue . - In April, May and June, the Company added three new Airbus A330-200 aircraft to the fleet.
- In June, the Company launched daily non-stop flights between
Honolulu andNew York 'sJohn F. Kennedy International Airport . - In June, the Company announced new non-stop flights between
Honolulu andBrisbane, Australia , with service three times weekly beginning in November 2012.
Investor Conference Call
About
Hawaiian has led all U.S. carriers in on-time performance for each of the past eight years (2004-2011) as reported by the
Now in its 83rd year of continuous service in
Forward-Looking Statements
Statements in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company's current views with respect to certain current and future events and financial performance. Such forward-looking statements include, without limitation, statements regarding: our plans regarding growth and diversification; inauguration of service to new destinations; our total capacity and yield on new and existing routes; potential route expansion; changes in our fleet plan; the effects of fuel prices on our business; and statements as to other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing. Words such as "expects," "anticipates," "projects," "intends," "plans," "believes," "estimates," variations of such words, and similar expressions are also intended to identify such forward-looking statements. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment, all of which may cause the Company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements.
The risks, uncertainties and assumptions referred to above that could cause the Company's results to differ materially from the results expressed or implied by such forward-looking statements also include the risks, uncertainties and assumptions discussed from time to time in the Company's other public filings and public announcements, including the Company's Annual Report on Form 10-K for the year ended December 31, 2011. All forward-looking statements included in this document are based on information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements to reflect events or circumstances that may arise after the date of this release.
Table 1. |
||||||||
Hawaiian Holdings, Inc. |
||||||||
Consolidated Statements of Operations |
||||||||
(in thousands, except for per share data) (unaudited) |
||||||||
Three Months Ended |
Six Months Ended |
|||||||
June 30, |
June 30, |
|||||||
2012 |
2011 |
2012 |
2011 |
|||||
Operating Revenue: |
||||||||
Passenger |
$ 438,137 |
$ 353,397 |
$ 829,063 |
$ 678,679 |
||||
Other |
46,414 |
41,618 |
90,982 |
81,946 |
||||
Total |
484,551 |
395,015 |
920,045 |
760,625 |
||||
Operating Expenses: |
||||||||
Aircraft fuel, including taxes and oil |
150,465 |
135,471 |
290,783 |
244,834 |
||||
Wages and benefits |
96,699 |
79,713 |
186,823 |
157,285 |
||||
Aircraft rent |
24,864 |
31,154 |
48,086 |
65,229 |
||||
Maintenance materials and repairs |
49,409 |
42,724 |
93,121 |
86,138 |
||||
Aircraft and passenger servicing |
24,654 |
19,620 |
46,000 |
38,043 |
||||
Commissions and other selling |
28,611 |
23,292 |
58,027 |
49,525 |
||||
Depreciation and amortization |
21,553 |
15,604 |
40,704 |
30,307 |
||||
Other rentals and landing fees |
21,218 |
17,341 |
40,966 |
33,665 |
||||
Other |
37,750 |
30,263 |
73,307 |
60,711 |
||||
Lease termination charges |
- |
70,014 |
- |
70,014 |
||||
Total |
455,223 |
465,196 |
877,817 |
835,751 |
||||
Operating Income (Loss) |
29,328 |
(70,181) |
42,228 |
(75,126) |
||||
Nonoperating Income (Expense): |
||||||||
Interest and amortization of debt discounts |
||||||||
and issuance costs |
(10,722) |
(4,889) |
(19,770) |
(8,083) |
||||
Interest income |
167 |
338 |
381 |
695 |
||||
Capitalized interest |
2,176 |
1,944 |
4,749 |
3,160 |
||||
Losses on fuel derivatives |
(14,823) |
(10,453) |
(9,003) |
(2,074) |
||||
Other, net |
183 |
668 |
(417) |
341 |
||||
Total |
(23,019) |
(12,392) |
(24,060) |
(5,961) |
||||
Income (Loss) Before Income Taxes |
6,309 |
(82,573) |
18,168 |
(81,087) |
||||
Income tax (benefit) expense |
2,405 |
(32,531) |
7,006 |
(31,900) |
||||
Net Income (Loss) |
$ 3,904 |
$ (50,042) |
$ 11,162 |
$ (49,187) |
||||
Net Income (Loss) Per Common Stock Share: |
||||||||
Basic |
$ 0.08 |
$ (0.99) |
$ 0.22 |
$ (0.97) |
||||
Diluted |
$ 0.07 |
$ (0.99) |
$ 0.21 |
$ (0.97) |
||||
Weighted Average Number of |
||||||||
Common Stock Shares Outstanding: |
||||||||
Basic |
51,283 |
50,700 |
51,145 |
50,609 |
||||
Diluted |
52,457 |
50,700 |
52,380 |
50,609 |
||||
Table 2. |
||||||||||||
Hawaiian Holdings, Inc. |
||||||||||||
Selected Statistical Data (unaudited) |
||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||
June 30, |
June 30, |
|||||||||||
2012 |
2011 |
Change |
2012 |
2011 |
Change |
|||||||
Scheduled Operations: |
||||||||||||
Revenue passenger miles (RPM) (a) |
2,925.2 |
2,502.8 |
16.9% |
5,555.5 |
4,843.9 |
14.7% |
||||||
Available seat miles (ASM) (a) |
3,480.6 |
2,982.4 |
16.7% |
6,620.6 |
5,765.1 |
14.8% |
||||||
Passenger revenue per RPM (Yield) |
14.98 |
¢ |
14.12 |
¢ |
6.1% |
14.92 |
¢ |
14.01 |
¢ |
6.5% |
||
Passenger load factor (RPM/ASM) |
84.0% |
83.9% |
0.1 |
pt. |
83.9% |
84.0% |
(0.1) |
pt. |
||||
Passenger revenue per ASM (PRASM) |
12.59 |
¢ |
11.85 |
¢ |
6.2% |
12.52 |
¢ |
11.77 |
¢ |
6.4% |
||
Total Operations: |
||||||||||||
Revenue passenger miles (RPM) (a) |
2,930.8 |
2,504.9 |
17.0% |
5,562.3 |
4,846.8 |
14.8% |
||||||
Available seat miles (ASM) (a) |
3,487.0 |
2,984.7 |
16.8% |
6,628.4 |
5,768.7 |
14.9% |
||||||
Passenger load factor (RPM/ASM) |
84.0% |
83.9% |
0.1 |
pt. |
83.9% |
84.0% |
(0.1) |
pt. |
||||
Operating revenue per ASM (RASM) |
13.90 |
¢ |
13.23 |
¢ |
5.1% |
13.88 |
¢ |
13.19 |
¢ |
5.2% |
||
Operating cost per ASM (CASM) |
13.05 |
¢ |
15.59 |
¢ |
(16.3%) |
13.24 |
¢ |
14.49 |
¢ |
(8.6%) |
||
CASM excluding lease termination costs related to |
||||||||||||
Boeing 717 aircraft purchase |
13.05 |
¢ |
13.24 |
¢ |
(1.4%) |
13.24 |
¢ |
13.28 |
¢ |
(0.3%) |
||
CASM excluding aircraft fuel |
8.74 |
¢ |
11.05 |
¢ |
(20.9%) |
8.86 |
¢ |
10.25 |
¢ |
(13.6%) |
||
CASM excluding lease termination costs and aircraft fuel |
8.74 |
¢ |
8.70 |
¢ |
0.5% |
8.86 |
¢ |
9.04 |
¢ |
(2.0%) |
||
Gallons of jet fuel consumed (a) |
47.3 |
40.6 |
16.7% |
90.5 |
78.8 |
14.8% |
||||||
Average cost per gallon of jet fuel (actual) (b) |
$ 3.18 |
$ 3.34 |
(4.8%) |
$ 3.21 |
3.11 |
3.2% |
||||||
(a) in millions |
||||||||||||
(b) includes applicable taxes and fees |
||||||||||||
Table 3. |
||||||||||||
Hawaiian Holdings, Inc. |
||||||||||||
Economic Fuel Expense |
||||||||||||
(in thousands, except per-gallon amounts) (unaudited) |
||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||
2012 |
2011 |
Change |
2012 |
2011 |
Change |
|||||||
Aircraft fuel expense, including taxes and oil |
$ 150,465 |
$ 135,471 |
11.1% |
$ 290,783 |
$ 244,834 |
18.8% |
||||||
Realized (gains) losses on settlement of fuel derivative contracts |
1,874 |
(3,057) |
161.3% |
2,729 |
(4,616) |
159.1% |
||||||
Economic fuel expense |
$ 152,339 |
$ 132,414 |
15.0% |
$ 293,512 |
$ 240,218 |
22.2% |
||||||
Fuel gallons consumed |
47,346 |
40,572 |
16.7% |
90,472 |
78,821 |
14.8% |
||||||
Economic fuel cost per gallon |
$ 3.22 |
$ 3.26 |
(1.2%) |
$ 3.24 |
$ 3.05 |
6.2% |
Table 4. |
||||||||||||||||
Hawaiian Holdings, Inc. |
||||||||||||||||
Pro-forma Net Income (Loss) and Diluted Net Earnings (Loss) Per Share Reflecting Economic Fuel Expense and Excluding Lease |
||||||||||||||||
(in thousands, except per-share data) (unaudited) |
||||||||||||||||
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
2012 |
2011 |
2012 |
2011 |
|||||||||||||
Net income |
Diluted net income per share |
Net income (loss) |
Diluted net income (loss) |
Net income |
Diluted net income |
Net income (loss) |
Diluted net income (loss) |
|||||||||
As reported - GAAP |
$ 3,904 |
$ 0.07 |
$ (50,042) |
$ (0.99) |
$ 11,162 |
$ 0.21 |
$ (49,187) |
$ (0.97) |
||||||||
Add: lease termination expenses related to Boeing |
||||||||||||||||
717-200 aircraft purchase, net of tax |
- |
- |
42,008 |
0.83 |
- |
- |
42,008 |
0.83 |
||||||||
Reflecting lease termination costs |
$ 3,904 |
$ 0.07 |
$ (8,034) |
$ (0.16) |
$ 11,162 |
$ 0.21 |
$ (7,179) |
$ (0.14) |
||||||||
Less: unrealized losses on fuel derivative |
||||||||||||||||
contracts, net of tax |
(7,769) |
(0.15) |
(8,106) |
(0.16) |
(3,764) |
(0.07) |
(4,014) |
(0.08) |
||||||||
Reflecting economic fuel expense and |
||||||||||||||||
lease termination costs |
$ 11,673 |
$ 0.22 |
$ 72 |
$ - |
$ 14,926 |
$ 0.28 |
$ (3,165) |
$ (0.06) |
||||||||
Table 5. |
|||||||
Hawaiian Holdings, Inc. |
|||||||
Fuel Derivative Contract Summary |
|||||||
As of July 16, 2012 |
|||||||
Weighted Average Contract Price |
Percentage of Projected |
Fuel Barrels Hedged |
|||||
Cap |
Floor |
||||||
Third Quarter 2012 |
|||||||
Heating Oil (per gallon) |
|||||||
Collars |
$3.05 |
$2.66 |
13% |
168,000 |
|||
Crude Oil (per barrel) |
|||||||
Brent Call Options |
$127.76 |
N/A |
47% |
610,000 |
|||
WTI Call Options |
$112.56 |
N/A |
1% |
7,000 |
|||
Brent Collars |
$111.48 |
$96.56 |
3% |
42,000 |
|||
WTI Collars |
$107.30 |
$90.30 |
2% |
28,000 |
|||
Total |
66% |
855,000 |
|||||
Fourth Quarter 2012 |
|||||||
Heating Oil (per gallon) |
|||||||
Collars |
$3.07 |
$2.65 |
6% |
71,000 |
|||
Crude Oil (per barrel) |
|||||||
Brent Call Options |
$118.33 |
N/A |
46% |
593,000 |
|||
Brent Collars |
$111.00 |
$95.01 |
3% |
42,000 |
|||
Total |
55% |
706,000 |
|||||
First Quarter 2013 |
|||||||
Crude Oil (per barrel) |
|||||||
Brent Call Options |
$116.96 |
N/A |
41% |
526,000 |
|||
Total |
41% |
526,000 |
|||||
Second Quarter 2013 |
|||||||
Crude Oil (per barrel) |
|||||||
Brent Call Options |
$114.01 |
N/A |
30% |
400,000 |
|||
Total |
30% |
400,000 |
|||||
Third Quarter 2013 |
|||||||
Crude Oil (per barrel) |
|||||||
Brent Call Options |
$114.27 |
N/A |
21% |
300,000 |
|||
Total |
21% |
300,000 |
|||||
Fourth Quarter 2013 |
|||||||
Crude Oil (per barrel) |
|||||||
Brent Call Options |
$112.21 |
N/A |
9% |
120,000 |
|||
Total |
9% |
120,000 |
|||||
Table 6. |
||||||||
Hawaiian Holdings, Inc. |
||||||||
Reconciliation of Non-GAAP Operating Expenses and CASM, Excluding Aircraft Fuel and Lease Termination Charges |
||||||||
(in millions, except for CASM data) (unaudited) |
||||||||
Three Months Ended |
Six Months Ended |
|||||||
June 30, |
June 30, |
|||||||
2012 |
2011 |
2012 |
2011 |
|||||
GAAP operating expenses |
$ 455.2 |
$ 465.2 |
$ 877.8 |
$ 835.8 |
||||
Less: lease termination costs related to Boeing 717 aircraft purchase |
- |
70.0 |
- |
70.0 |
||||
Adjusted operating expenses - excluding lease termination costs related to |
||||||||
Boeing 717 aircraft purchase |
455.2 |
395.2 |
877.8 |
765.8 |
||||
Less: aircraft fuel, including taxes and oil |
150.5 |
135.5 |
290.8 |
244.8 |
||||
Adjusted operating expense - excluding lease termination costs related to |
||||||||
Boeing 717 aircraft purchase and aircraft fuel |
$ 304.7 |
$ 259.7 |
$ 587.0 |
$ 521.0 |
||||
Available Seat Miles |
3,487.0 |
2,984.7 |
6,628.4 |
5,768.7 |
||||
CASM - GAAP |
13.05 |
¢ |
15.59 |
¢ |
13.24 |
¢ |
14.49 |
¢ |
Less: lease termination costs related to Boeing 717 aircraft purchase |
- |
2.35 |
- |
1.21 |
||||
CASM - excluding lease termination costs related to Boeing 717 aircraft purchase |
13.05 |
13.24 |
13.24 |
13.28 |
||||
Less: aircraft fuel |
4.31 |
4.54 |
4.38 |
4.24 |
||||
CASM - excluding aircraft fuel and lease termination costs related to |
||||||||
Boeing 717 aircraft purchase |
8.74 |
¢ |
8.70 |
¢ |
8.86 |
¢ |
9.04 |
¢ |
SOURCE
Company, Scott Topping, CFO, Hawaiian Airlines, +1-808-835-3700, scott.topping@hawaiianair.com, Investor Relations, Susan Donofrio, Sr. Director, +1-908-719-3206, susan.donofrio@hawaiianair.com, Media, Keoni Wagner, VP, Hawaiian Airlines, +1-808-838-6778, keoni.wagner@hawaiianair.com