(Logo: http://photos.prnewswire.com/prnh/20040827/LAF044LOGO)
- Adjusted net income, reflecting economic fuel expense, of
$12.6 million or$0.24 per diluted share. - GAAP net income of
$11.3 million or$0.21 cents per diluted share. - Available seat miles (ASMs) increase of 20.9% year-over-year.
- Cost per available seat mile (CASM), excluding fuel, decrease of 11.2% year-over-year.
- CASM decrease of 9.7% year-over-year.
"Everyone in the company worked hard as we continued with the heavy pace of new developments. We inaugurated new routes, we secured financing for future aircraft deliveries on very favorable terms, we implemented new computer systems and completed countless other initiatives. Throughout, my colleagues on the ground and in the air continue to keep us ahead of the field in taking care of our customers safely, efficiently and with the hospitality that is our hallmark."
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.
Liquidity and Capital Resources
As of
- Unrestricted cash and cash equivalents of
$478 million . - Available borrowing capacity of
$70 million under Hawaiian's Revolving Credit Facility. - Outstanding debt and capital lease obligations of approximately
$767 million consisting of the following:$369 million outstanding under secured loan agreements to finance a portion of the purchase price for six Airbus A330-200 aircraft.$163 million outstanding under secured loan agreements to finance a portion of the purchase price for 15Boeing 717-200 aircraft.$103 million in capital lease obligations to finance an Airbus A330-200 and twoBoeing 717-200 aircraft.$58 million outstanding under floating rate notes issued in conjunction with the acquisition of threeBoeing 767-300 ER aircraft.$74 million outstanding of Convertible Senior Notes.
Business Highlights
Operational
- Ranked #1 nationally for on-time performance for the months of March, April and
May 2013 by theU.S. Department of Transportation Air Travel Consumer Report . - Ranked the #1 domestic carrier for travel to Hawai'i by Travel + Leisure.
- Expanded our frequent flyer partnership with
American Airlines . - Announced codeshare and interline agreements with
China Airlines for connecting travel throughTaipei, Taiwan .
Fleet and Financing
- Financed our next six Airbus A330-200 aircraft deliveries through 2014 with Enhanced Equipment Trust Certificates (EETC).
- Added three new Airbus A330-200 aircraft for
North America and International service.
New routes and increased frequencies
Honolulu to Sendai,Japan three-times-weekly service launchedJune 25, 2013 .Honolulu toTaipei, Taiwan three-times-weekly service launchedJuly 9, 2013 .
The table below summarizes the Company's expectations for the quarter ending
Third |
||
Quarter |
||
Item |
2012 |
Guidance |
Cost per ASM Excluding Fuel (cents) |
7.62 |
Up 2.5% to up 5.5% |
Passenger Revenue Per ASM (cents) |
12.30 |
Down 0.5% to up 2.5% |
Operating Revenue Per ASM (cents) |
13.56 |
Down 0.5% to up 2.5% |
Passenger Revenue Per RPM (cents) |
14.77 |
Down 2.5% to up 0.5% |
Passenger Load Factor |
83.3% |
Up 1 pts to Up 3 pts |
ASMs (millions) |
4,052.2 |
Up 7.5% to up 10.5% |
Gallons of jet fuel consumed (millions) |
54.5 |
Up 7% to up 10% |
Full Year |
||
Item |
2012 |
Guidance |
Cost per ASM Excluding Fuel (cents) |
8.18 |
Down in the low single digits |
ASMs (millions) |
14,687.5 |
Up 12.5% to up 15.5% |
Investor Conference Call
About
Hawaiian has led all U.S. carriers in on-time performance for each of the past nine years (2004-2012) as reported by the
Now in its 84th year of continuous service, Hawaiian is Hawai'i's biggest and longest-serving airline, as well as the largest provider of passenger air service from its primary visitor markets on the U.S. mainland. Hawaiian offers nonstop service to Hawai'i from more U.S. gateway cities (11) than any other airline, along with service from
Forward-Looking Statements
This press release contains "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 by our CEO relating to the 2013 fiscal year, capacity, demand, the Company's
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
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, |
|||||||||||||
2013 |
2012 |
% Change |
2013 |
2012 |
% Change |
|||||||||
Operating Revenue: |
||||||||||||||
Passenger |
$ 481,461 |
$ 438,137 |
9.9 |
% |
$ 921,400 |
$ 829,063 |
11.1 |
% |
||||||
Other |
52,467 |
46,414 |
13.0 |
% |
103,282 |
90,982 |
13.5 |
% |
||||||
Total |
533,928 |
484,551 |
10.2 |
% |
1,024,682 |
920,045 |
11.4 |
% |
||||||
Operating Expenses: |
||||||||||||||
Aircraft fuel, including taxes and delivery |
169,223 |
150,465 |
12.5 |
% |
343,712 |
290,783 |
18.2 |
% |
||||||
Wages and benefits |
103,384 |
96,699 |
6.9 |
% |
206,119 |
186,823 |
10.3 |
% |
||||||
Aircraft rent |
28,285 |
24,864 |
13.8 |
% |
54,304 |
48,086 |
12.9 |
% |
||||||
Maintenance materials and repairs |
53,036 |
49,409 |
7.3 |
% |
108,295 |
93,121 |
16.3 |
% |
||||||
Aircraft and passenger servicing |
29,228 |
24,654 |
18.6 |
% |
58,287 |
46,000 |
26.7 |
% |
||||||
Commissions and other selling |
32,186 |
28,611 |
12.5 |
% |
65,997 |
58,027 |
13.7 |
% |
||||||
Depreciation and amortization |
19,788 |
21,553 |
(8.2) |
% |
38,901 |
40,704 |
(4.4) |
% |
||||||
Other rentals and landing fees |
19,630 |
21,218 |
(7.5) |
% |
38,777 |
40,966 |
(5.3) |
% |
||||||
Other |
41,777 |
37,750 |
10.7 |
% |
84,825 |
73,307 |
15.7 |
% |
||||||
Total |
496,537 |
455,223 |
9.1 |
% |
999,217 |
877,817 |
13.8 |
% |
||||||
Operating Income |
37,391 |
29,328 |
25,465 |
42,228 |
||||||||||
Nonoperating Income (Expense): |
||||||||||||||
Interest expense and amortization of debt discounts and issuance costs |
(12,163) |
(10,722) |
(23,540) |
(19,770) |
||||||||||
Interest income |
126 |
167 |
253 |
381 |
||||||||||
Capitalized interest |
2,891 |
2,176 |
6,331 |
4,749 |
||||||||||
Losses on fuel derivatives |
(6,906) |
(14,823) |
(13,467) |
(9,003) |
||||||||||
Other, net |
(3,124) |
183 |
(4,206) |
(417) |
||||||||||
Total |
(19,176) |
(23,019) |
(34,629) |
(24,060) |
||||||||||
Income (Loss) Before Income Taxes |
18,215 |
6,309 |
(9,164) |
18,168 |
||||||||||
Income tax expense (benefit) |
6,899 |
2,405 |
(3,335) |
7,006 |
||||||||||
Net Income (Loss) |
$ 11,316 |
$ 3,904 |
$ (5,829) |
$ 11,162 |
||||||||||
Net Income (Loss) Per Common Stock Share: |
||||||||||||||
Basic |
$ 0.22 |
$ 0.08 |
$ (0.11) |
$ 0.22 |
||||||||||
Diluted |
$ 0.21 |
$ 0.07 |
$ (0.11) |
$ 0.21 |
||||||||||
Weighted Average Number of |
||||||||||||||
Common Stock Shares Outstanding: |
||||||||||||||
Basic |
52,008 |
51,283 |
51,837 |
51,145 |
||||||||||
Diluted |
53,071 |
52,457 |
51,837 |
52,380 |
Table 2. Hawaiian Holdings, Inc. |
||||||||||||
Selected Statistical Data (unaudited) |
||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||
June 30, |
June 30, |
|||||||||||
2013 |
2012 |
% Change |
2013 |
2012 |
% Change |
|||||||
Scheduled Operations: |
||||||||||||
Revenue passenger miles (RPM) (a) |
3,405.7 |
2,925.2 |
16.4% |
6,611.1 |
5,555.5 |
19.0% |
||||||
Available seat miles (ASM) (a) |
4,211.5 |
3,480.6 |
21.0% |
8,171.8 |
6,620.6 |
23.4% |
||||||
Passenger revenue per RPM (Yield) |
14.14 |
¢ |
14.98 |
¢ |
(5.6%) |
13.94 |
¢ |
14.92 |
¢ |
(6.6%) |
||
Passenger load factor (RPM/ASM) |
80.9% |
84.0% |
(3.1) |
pt |
80.9% |
83.9% |
(3.0) |
pt |
||||
Passenger revenue per ASM (PRASM) |
11.43 |
¢ |
12.59 |
¢ |
(9.2%) |
11.28 |
¢ |
12.52 |
¢ |
(9.9%) |
||
Total Operations: |
||||||||||||
Revenue passenger miles (RPM) (a) |
3,409.0 |
2,930.8 |
16.3% |
6,619.6 |
5,562.3 |
19.0% |
||||||
Available seat miles (ASM) (a) |
4,215.9 |
3,487.0 |
20.9% |
8,181.7 |
6,628.4 |
23.4% |
||||||
Passenger load factor (RPM/ASM) |
80.9% |
84.0% |
(3.1) |
pt |
80.9% |
83.9% |
(3.0) |
pt |
||||
Operating revenue per ASM (RASM) |
12.66 |
¢ |
13.90 |
¢ |
(8.9%) |
12.52 |
¢ |
13.88 |
¢ |
(9.8%) |
||
Operating cost per ASM (CASM) |
11.78 |
¢ |
13.05 |
¢ |
(9.7%) |
12.21 |
¢ |
13.24 |
¢ |
(7.8%) |
||
CASM excluding aircraft fuel (b) |
7.76 |
¢ |
8.74 |
¢ |
(11.2%) |
8.01 |
¢ |
8.86 |
¢ |
(9.6%) |
||
Gallons of jet fuel consumed (a) |
56.6 |
47.3 |
19.7% |
110.6 |
90.5 |
22.2% |
||||||
Average cost per gallon of jet fuel (actual) (c) |
$ 2.99 |
$ 3.18 |
(6.0%) |
$ 3.11 |
$ 3.21 |
(3.1%) |
||||||
Economic fuel cost per gallon (c)(d) |
$ 3.07 |
$ 3.22 |
(4.7%) |
$ 3.18 |
$ 3.24 |
(1.9%) |
||||||
(a) |
In millions. |
(b) |
See Table 4 for reconciliations of operating expenses excluding aircraft fuel. |
(c) |
Includes applicable taxes and fees. |
(d) |
See Table 3 for a reconciliation of economic fuel costs. |
Table 3. |
Hawaiian Holdings, Inc. |
Economic Fuel Expense |
(in thousands, except per-gallon amounts) (unaudited)
|
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.
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
2013 |
2012 |
% Change |
2013 |
2012 |
% Change |
||||||
Aircraft fuel expense, including taxes and delivery |
$ 169,223 |
$ 150,465 |
12.5% |
$ 343,712 |
$ 290,783 |
18.2% |
|||||
Realized losses on settlement of fuel derivative contracts |
4,740 |
1,874 |
152.9% |
7,436 |
2,729 |
172.5% |
|||||
Economic fuel expense |
$ 173,963 |
$ 152,339 |
14.2% |
$ 351,148 |
$ 293,512 |
19.6% |
|||||
Fuel gallons consumed |
56,625 |
47,346 |
19.6% |
110,560 |
90,472 |
22.2% |
|||||
Economic fuel cost per gallon |
$ 3.07 |
$ 3.22 |
(4.7%) |
$ 3.18 |
$ 3.24 |
(1.9%) |
Table 4. |
Hawaiian Holdings, Inc. |
Non-GAAP Financial Reconciliation |
(in thousands, except per-share data) (unaudited)
|
The Company evaluates its financial performance utilizing various GAAP and non-GAAP financial measures, including, net income, diluted net income per share, CASM, PRASM, RASM and Passenger Revenue per RPM. Pursuant to Regulation G, the Company has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis. The Company believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence.
|
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||||||
Net income |
Diluted net income |
Net income |
Diluted net income |
Net loss |
Diluted net loss |
Net income |
Diluted net income |
|||||||||
As reported - GAAP |
$ 11,316 |
$ 0.21 |
$ 3,904 |
$ 0.07 |
$ (5,829) |
$ (0.11) |
$ 11,162 |
$ 0.21 |
||||||||
Less: unrealized losses on fuel derivative contracts, net of tax |
(1,300) |
(0.03) |
(7,769) |
(0.15) |
(3,619) |
(0.07) |
(3,764) |
(0.07) |
||||||||
Reflecting economic fuel expense |
$ 12,616 |
$ 0.24 |
$ 11,673 |
$ 0.22 |
$ (2,210) |
$ (0.04) |
$ 14,926 |
$ 0.28 |
Three Months Ended |
Six Months Ended |
|||||||
June 30, |
June 30, |
|||||||
2013 |
2012 |
2013 |
2012 |
|||||
GAAP operating expenses |
$ 496.5 |
$ 455.2 |
$ 999.2 |
$ 877.8 |
||||
Less: aircraft fuel, including taxes and delivery |
169.2 |
150.5 |
343.7 |
290.8 |
||||
Adjusted operating expense - excluding aircraft fuel |
$ 327.3 |
$ 304.7 |
$ 655.5 |
$ 587.0 |
||||
Available Seat Miles |
4,215.9 |
3,487.0 |
8,181.7 |
6,628.4 |
||||
CASM - GAAP |
11.78 |
¢ |
13.05 |
¢ |
12.21 |
¢ |
13.24 |
¢ |
Less: aircraft fuel |
4.02 |
4.31 |
4.20 |
4.38 |
||||
CASM - excluding aircraft fuel |
7.76 |
¢ |
8.74 |
¢ |
8.01 |
¢ |
8.86 |
¢ |
Table 5. Hawaiian Holdings, Inc. Fuel Derivative Contract Summary(unaudited) As of July 19, 2013 |
|||||||
Weighted Average Contract Price |
Percentage of Projected Fuel Requirements Hedged |
Fuel Barrels Hedged |
|||||
Cap |
Floor |
||||||
Third Quarter 2013 |
|||||||
Crude Oil (per barrel) |
|||||||
Brent Call Options |
$114.95 |
N/A |
37% |
532,000 |
|||
Brent Collars |
$110.25 |
$90.00 |
17% |
240,000 |
|||
Total |
54% |
772,000 |
|||||
Fourth Quarter 2013 |
|||||||
Crude Oil (per barrel) |
|||||||
Brent Call Options |
$114.05 |
N/A |
39% |
523,000 |
|||
Brent Collars |
$108.64 |
$87.50 |
18% |
240,000 |
|||
Total |
57% |
763,000 |
|||||
First Quarter 2014 |
|||||||
Crude Oil (per barrel) |
|||||||
Brent Call Options |
$112.54 |
N/A |
40% |
558,000 |
|||
Brent Collars |
$109.64 |
$84.29 |
7% |
105,000 |
|||
Total |
47% |
663,000 |
|||||
Second Quarter 2014 |
|||||||
Crude Oil (per barrel) |
|||||||
Brent Call Options |
$110.47 |
N/A |
19% |
279,000 |
|||
Brent Collars |
$110.23 |
$82.38 |
15% |
216,000 |
|||
Total |
34% |
495,000 |
|||||
Third Quarter 2014 |
|||||||
Crude Oil (per barrel) |
|||||||
Brent Call Options |
$107.80 |
N/A |
11% |
163,000 |
|||
Brent Collars |
$107.51 |
$82.78 |
9% |
135,000 |
|||
Total |
20% |
298,000 |
|||||
Fourth Quarter 2014 |
|||||||
Crude Oil (per barrel) |
|||||||
Brent Call Options |
$104.92 |
N/A |
9% |
135,000 |
|||
Brent Collars |
$106.52 |
$82.50 |
4% |
65,000 |
|||
Total |
13% |
200,000 |
Table 6. Hawaiian Holdings, Inc. Foreign Exchange Forward Contract Summary (unaudited) As of July 19, 2013 |
||||||||||||||||
Japanese Yen |
Australian Dollar |
Korean Won |
New Zealand Dollar |
|||||||||||||
Quarter of Settlement |
Weighted Average Forward Contract Price |
Percentage of Projected Foreign Denominated JPY Sales Hedged |
Weighted Average Forward Contract Price |
Percentage of Projected Foreign Denominated AUD Sales Hedged |
Weighted Average Forward Contract Price |
Percentage of Projected Foreign Denominated KRW Sales Hedged |
Weighted Average Forward Contract Price |
Percentage of Projected Foreign Denominated NZD Sales Hedged |
||||||||
(in USD|JPY) |
(in AUD|USD) |
(in USD|KRW) |
(in NZD|USD) |
|||||||||||||
Third Quarter 2013 |
¥94.61 |
64% |
AUD 1.00 |
48% |
₩1,116 |
55% |
NZD 0.82 |
65% |
||||||||
Fourth Quarter 2013 |
¥95.78 |
58% |
AUD 0.99 |
39% |
₩1,117 |
41% |
NZD 0.81 |
55% |
||||||||
First Quarter 2014 |
¥95.85 |
61% |
AUD 1.00 |
25% |
₩1,130 |
36% |
NZD 0.80 |
34% |
||||||||
Second Quarter 2014 |
¥99.62 |
49% |
AUD 0.96 |
18% |
₩1,128 |
20% |
NZD 0.79 |
27% |
||||||||
Third Quarter 2014 |
¥99.89 |
29% |
AUD 0.92 |
17% |
₩1,141 |
20% |
NZD 0.78 |
13% |
||||||||
Fourth Quarter 2014 |
¥97.62 |
12% |
SOURCE
COMPANY: Scott Topping, CFO - (808) 835-3700, scott.topping@hawaiianair.com; or INVESTOR RELATIONS: Ashlee Kishimoto, Sr. Director - (808) 838-5421, ashlee.kishimoto@hawaiianair.com; or MEDIA RELATIONS: Ann Botticelli, SVP - (808) 838-6758, ann.botticelli@hawaiianair.com