HONOLULU, Jan. 24, 2017 /PRNewswire/ -- Hawaiian Holdings, Inc. (NASDAQ: HA) ("Holdings" or the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the fourth quarter and full year 2016.

 

Fourth Quarter 2016 - Key Financial Metrics

   

GAAP

 

YoY Change

 

Adjusted

 

YoY Change

Net Income

 

$10.6M

 

-$27.3M

 

$68.8M

 

+$20.2M

Diluted EPS

 

$0.20

 

-$0.46

 

$1.28

 

+$0.43

Pre-tax Margin

 

2.8%

 

-7.9 pts.

 

17.6%

 

+3.8 pts.

 

Full Year 2016 - Key Financial Metrics

   

GAAP

 

YoY Change

 

Adjusted

 

YoY Change

Net Income

 

$244.1M

 

+$61.5M

 

$280.1M

 

+$90.8M

Diluted EPS

 

$4.52

 

+$1.54

 

$5.19

 

+$2.10

Pre-tax Margin

 

16.1%

 

+3.4 pts.

 

18.4%

 

+5.2 pts.

 

"2016 was a great year for us," said Mark Dunkerley, Hawaiian Airlines president and CEO. "The business environment has been characterized by strong demand, balanced industry capacity in our markets and manageable fuel prices. Our hard working team has done a good job ensuring that the investments we made in our business at the beginning of this decade continue to deliver the returns we anticipated from them. Our business is stronger and we are growing value for our shareholders, giving us great confidence for 2017 and beyond."

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 December 31, 2016 the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $610 million.
  • Outstanding debt and capital lease obligations of $557 million.

The Company has also renewed and increased its existing revolving credit facility to $225 million.

2016 Highlights

People

  • Enhanced the Company's profit sharing program electing to reward all employees in 2016.
  • Contributed $31 million to its pension plans in the fourth quarter for a full year total of $58 million, significantly in excess of minimum requirements.
  • Ratified a five year contract with its dispatchers represented by the Transport Workers Union.
  • Ratified five year contracts with the International Association of Machinists and Aerospace Workers.

Operational

  • Ranked #1 globally for on-time performance for 2016 by OAG.
  • Ranked #1 nationally for on-time performance for all reported months in 2016 except for July in the U.S. Department of Transportation Air Travel Consumer Report.
  • Flew a record 11.1 million passengers in 2016.
  • Insourced sales teams in Australia, New Zealand, and Japan to position the Company for long-term success in these markets.
  • Purchased an Airbus A320 Full Flight Simulator for on-site pilot training.

New routes

  • Expanded service to Japan with additional routes and frequencies to Tokyo.

Product and loyalty

  • Led the U.S. airline industry in unit revenue growth in 2016.
  • Won the 2016 Skytrax World Airline Award for 'Best Airline Staff' in North America.
  • Unveiled new uniforms for front line employees to debut in 2017.
  • Launched Bid Up, an auction offering North America guests a chance to name their price for first class upgrades.
  • Began revenue flights for the newly retrofitted A330 aircraft in December with a new 278 passenger seat configuration featuring 18 fully lie-flat Premium Cabin seats, 68 Extra Comfort seats and 192 Main Cabin seats.
  • Achieved a record $50 million in Extra Comfort and Preferred Seat sales in 2016.

Fleet and financing

  • Took delivery of the 23rd A330-200 in June under a six-year lease and announced the purchase of an additional A330 for delivery in the fourth quarter of 2017.
  • Took delivery of two additional 717s in the fourth quarter of 2016 under six-year leases.
  • Announced the lease of two additional A321neos for delivery in the first quarter of 2018.
  • Announced the planned retirement of its remaining fleet of 767s by the end of 2018.

First Quarter and Full Year 2017 Outlook

The table below summarizes the Company's expectations for the first quarter ending March 31, 2017 and the full year ending December 31, 2017, expressed as an expected percentage change compared to the results for the quarter ended March 31, 2016 or the year ended December 31, 2016, as applicable.

   

First Quarter

     

First Quarter

Item

 

2017 Guidance

 

GAAP Equivalent

 

2017 Guidance

Cost per ASM excluding Fuel (a)

 

Up 3% to up 6%

 

Cost per ASM (a)

 

Up 8.7% to up 12.5%

Operating Revenue Per ASM

 

Up 4% to up 7%

       

ASMs

 

Up 2.5% to up 4.5%

       

Gallons of jet fuel consumed

 

Up 4.5% to 6.5%

       

Economic fuel cost per gallon (b)(c)

 

$1.60 to $1.70

 

Fuel cost per gallon (b)

 

$1.66 to $1.76

 
   

Full Year

     

Full Year

Item

 

2017 Guidance

 

GAAP Equivalent

 

2017 Guidance

Cost per ASM excluding Fuel (a)

 

Up in the mid-single digit range

 

Cost per ASM (a)

 

Up in the mid-single digit range

ASMs

 

Up 1% to up 4%

       

Gallons of jet fuel consumed

 

Up 2.5% to up 5.5%

       

Economic fuel cost per gallon (b)(c)

 

$1.75 to $1.85

 

Fuel cost per gallon (b)

 

$1.77 to $1.87

   

(a)

See Table 4 for a reconciliation of operating expenses to operating expenses excluding aircraft fuel.

(b)

Economic fuel cost per gallon estimates are based on the January 17, 2017 fuel forward curve.

(c)

See Table 3 for a reconciliation of actual fuel costs to economic fuel costs.

 

Investor Conference Call

Hawaiian Holdings' quarterly and full year earnings conference call is scheduled to begin today (January 24, 2017) at 4:30 p.m. Eastern Time (USA).  The conference call will be broadcast live over the Internet. Investors may listen to the live audio webcast on the investor relations section of the Company's website at www.HawaiianAirlines.com. For those who are not available for the live webcast, the call will be archived and available for 90 days on the Company's investor website.

About Hawaiian Airlines

Hawaiian®, the world's most punctual airline as reported by OAG, has led all U.S. carriers in on-time performance for 12 years (2004-2015) as reported by the U.S. Department of Transportation. Consumer surveys by Condé Nast Traveler, Travel + Leisure and Zagat have all ranked Hawaiian the highest of all domestic airlines serving Hawai'i.

Now in its 88th 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 Japan, South Korea, China, Australia, New Zealand, American Samoa and Tahiti. Hawaiian also provides approximately 160 jet flights daily between the Hawaiian Islands, with a total of more than 200 daily flights system-wide.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com. Follow updates on Twitter about Hawaiian (@HawaiianAir) and its special fare offers (@HawaiianFares), and become a fan on its Facebook page.

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, the Company's expectations regarding cost per available seat mile, cost per available seat mile excluding fuel, available seat miles, gallons of jet fuel consumed, fuel cost per gallon, and economic fuel cost per gallon each for the quarter ending March 31, 2017 and for the full year ending December 31, 2017; the Company's expectations regarding operating revenue per available seat mile for the quarter ending March 31, 2017; 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 assumptions 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.  These risks and uncertainties include, without limitation, the Company's ability to accurately forecast quarterly and annual results; economic volatility; macroeconomic developments; political developments; the price and availability of aircraft fuel; fluctuations in demand for transportation in the markets in which the Company operates; the Company's dependence on tourist travel; labor negotiations and related developments; competitive pressures; foreign currency exchange rate fluctuations; and the Company's ability to implement its growth strategy and related cost reduction goals.

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 and the Company's Quarterly Reports on Form 10-Q, as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission.  All forward-looking statements included in this document are based on information available to the Company on the date hereof.  The Company does not undertake to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized.

 

Table 1.

Hawaiian Holdings, Inc.

Consolidated Statements of Operations

(in thousands, except for per share data) (unaudited)

 
   

Three Months Ended December 31,

 

Twelve Months Ended December 31,

   

2016

 

2015

 

% Change

 

2016

 

2015

 

% Change

Operating Revenue:

                       

Passenger

 

$

553,647

   

$

500,149

   

10.7

%

 

$

2,145,742

   

$

2,025,610

   

5.9

%

Other

 

79,326

   

74,005

   

7.2

%

 

304,838

   

291,857

   

4.4

%

Total

 

632,973

   

574,154

   

10.2

%

 

2,450,580

   

2,317,467

   

5.7

%

Operating Expenses:

                       

Aircraft fuel, including taxes and delivery

 

95,806

   

88,399

   

8.4

%

 

344,322

   

417,728

   

(17.6)

%

Wages and benefits

 

144,598

   

129,631

   

11.5

%

 

555,534

   

499,506

   

11.2

%

Aircraft rent

 

32,220

   

28,921

   

11.4

%

 

124,565

   

115,653

   

7.7

%

Maintenance materials and repairs

 

62,069

   

56,136

   

10.6

%

 

228,970

   

224,648

   

1.9

%

Aircraft and passenger servicing

 

33,631

   

29,501

   

14.0

%

 

126,876

   

117,449

   

8.0

%

Commissions and other selling

 

31,795

   

28,529

   

11.4

%

 

125,731

   

119,746

   

5.0

%

Depreciation and amortization

 

26,499

   

26,804

   

(1.1)

%

 

108,128

   

105,581

   

2.4

%

Other rentals and landing fees

 

29,749

   

24,248

   

22.7

%

 

108,087

   

95,055

   

13.7

%

Purchased services

 

23,385

   

21,294

   

9.8

%

 

96,274

   

81,838

   

17.6

%

Other

 

33,210

   

31,845

   

4.3

%

 

127,489

   

114,160

   

11.7

%

Special items

 

95,142

   

   

%

 

95,142

   

   

%

Total

 

608,104

   

465,308

   

30.7

%

 

2,041,118

   

1,891,364

   

7.9

%

Operating Income

 

24,869

   

108,846

   

(77.2)

%

 

409,462

   

426,103

   

(3.9)

%

Nonoperating Income (Expense):

                       

Interest expense and amortization of debt discounts and issuance costs

 

(8,159)

   

(12,936)

       

(36,612)

   

(55,678)

     

Interest income

 

963

   

759

       

4,007

   

2,811

     

Capitalized interest

 

1,244

   

295

       

2,651

   

3,261

     

Gains (losses) on fuel derivatives

 

4,685

   

(31,261)

       

20,106

   

(59,931)

     

Loss on extinguishment of debt

 

(480)

   

(4,762)

       

(10,473)

   

(12,058)

     

Other, net

 

(5,561)

   

505

       

4,323

   

(8,820)

     

Total

 

(7,308)

   

(47,400)

       

(15,998)

   

(130,415)

     

Income Before Income Taxes

 

17,561

   

61,446

       

393,464

   

295,688

     

Income tax expense

 

6,920

   

23,546

       

149,333

   

113,042

     

Net Income

 

$

10,641

   

$

37,900

       

$

244,131

   

$

182,646

     

Net Income Per Common Stock Share:

                       

Basic

 

$

0.20

   

$

0.71

       

$

4.56

   

$

3.38

     

Diluted

 

$

0.20

   

$

0.66

       

$

4.52

   

$

2.98

     

Weighted Average Number of Common Stock Shares Outstanding:

                       

Basic

 

53,433

   

53,335

       

53,502

   

54,031

     

Diluted

 

53,910

   

57,591

       

53,958

   

61,256

     

 

 

Table 2.

Hawaiian Holdings, Inc.

Selected Statistical Data (unaudited)

 
   

Three Months Ended December 31,

 

Twelve Months Ended December 31,

   

2016

 

2015

 

% Change

 

2016

 

2015

 

% Change

   

(in thousands, except as otherwise indicated)

Scheduled Operations (a) :

                       

Revenue passengers flown

 

2,728

   

2,655

   

2.7

%

 

11,044

   

10,665

   

3.6

%

Revenue passenger miles (RPM)

 

3,929,846

   

3,634,033

   

8.1

%

 

15,484,369

   

14,450,564

   

7.2

%

Available seat miles (ASM)

 

4,565,978

   

4,383,706

   

4.2

%

 

18,371,544

   

17,710,309

   

3.7

%

Passenger revenue per RPM (Yield)

 

14.09

¢

 

13.76

¢

 

2.4

%

 

13.86

¢

 

14.02

¢

 

(1.1)

%

Passenger load factor (RPM/ASM)

 

86.1

%

 

82.9

%

 

3.2

pt.

 

84.3

%

 

81.6

%

 

2.7

pt.

Passenger revenue per ASM (PRASM)

 

12.13

¢

 

11.41

¢

 

6.3

%

 

11.68

¢

 

11.44

¢

 

2.1

%

Total Operations (a) :

                       

Revenue passengers flown

 

2,730

   

2,658

   

2.7

%

 

11,051

   

10,673

   

3.5

%

RPM

 

3,932,713

   

3,639,219

   

8.1

%

 

15,492,509

   

14,462,191

   

7.1

%

ASM

 

4,570,679

   

4,391,792

   

4.1

%

 

18,384,637

   

17,726,322

   

3.7

%

Passenger load factor (RPM/ASM)

 

86.0

%

 

82.9

%

 

3.1

pt.

 

84.3

%

 

81.6

%

 

2.7

pt.

Operating revenue per ASM (RASM)

 

13.85

¢

 

13.07

¢

 

6.0

%

 

13.33

¢

 

13.07

¢

 

2.0

%

Operating cost per ASM (CASM)

 

13.30

¢

 

10.59

¢

 

25.6

%

 

11.10

¢

 

10.67

¢

 

4.0

%

CASM excluding aircraft fuel and special items (b)

 

9.12

¢

 

8.58

¢

 

6.3

%

 

8.71

¢

 

8.31

¢

 

4.8

%

Aircraft fuel expense per ASM (c)

 

2.10

¢

 

2.01

¢

 

4.5

%

 

1.87

¢

 

2.36

¢

 

(20.8)

%

Revenue block hours operated

 

44,627

   

42,488

   

5.0

%

 

179,254

   

173,546

   

3.3

%

Gallons of jet fuel consumed

 

61,647

   

58,008

   

6.3

%

 

244,118

   

234,183

   

4.2

%

Average cost per gallon of jet fuel (actual) (c)

 

$

1.55

   

$

1.52

   

2.0

%

 

$

1.41

   

$

1.78

   

(20.8)

%

Economic fuel cost per gallon (c)(d)

 

$

1.51

   

$

1.80

   

(16.1)

%

 

$

1.52

   

$

2.04

   

(25.5)

%

   

(a)

Includes the operations of the Company's contract carrier under a capacity purchase agreement.

(b) 

See Table 4 for a reconciliation 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 December 31,

 

Twelve Months Ended December 31,

   

2016

 

2015

 

% Change

 

2016

 

2015

 

% Change

   

(in thousands, except per-
gallon amounts)

     

(in thousands, except per-
gallon amounts)

   

Aircraft fuel expense, including taxes and delivery

 

$

95,806

   

$

88,399

   

8.4

%

 

$

344,322

   

$

417,728

   

(17.6)

%

Realized losses (gains) on settlement of fuel derivative contracts

 

(2,778)

   

16,025

   

(117.3)

%

 

27,572

   

60,946

   

(54.8)

%

Economic fuel expense

 

$

93,028

   

$

104,424

   

(10.9)

%

 

$

371,894

   

$

478,674

   

(22.3)

%

Fuel gallons consumed

 

61,647

   

58,008

   

6.3

%

 

244,118

   

234,183

   

4.2

%

Economic fuel costs per gallon

 

$

1.51

   

$

1.80

   

(16.1)

%

 

$

1.52

   

$

2.04

   

(25.5)

%

 

   

Estimated three months ending
March 31, 2017

 

 Estimated full year ending
December 31, 2017

   

(in thousands, except per-gallon amounts)

 

(in thousands, except per-gallon amounts)

Aircraft fuel expense, including taxes and delivery

 

$

100,235

 

-

$

108,248

   

$

442,865

 

-

$

481,343

 

Realized (gains)/losses on settlement of fuel derivative contracts

 

(3,500)

 

-

(3,500)

   

(5,000)

 

-

(5,000)

 

Economic fuel expense

 

$

96,735

 

-

$

104,748

   

$

437,865

 

-

$

476,343

 

Fuel gallons consumed

 

60,459

 

-

61,616

   

250,209

 

-

257,532

 

Economic fuel costs per gallon

 

$

1.60

 

-

$

1.70

   

$

1.75

 

-

$

1.85

 

 

Table 4.

Hawaiian Holdings, Inc.

Non-GAAP Financial Reconciliation

(in thousands, except per-share and CASM 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, Passenger Revenue per RPM and EBITDAR.  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 adjustments are described below:

   

 

Changes in fair value of derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period. This line item includes the unrealized amounts of fuel and interest rate derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts.  Excluding the impact of these derivative adjustments allows investors to better analyze the Company's core operational performance and more readily compare its results to other airlines in the periods presented below.

   

 

Loss on extinguishment of debt, net of tax, is excluded to allow investors to better analyze the Company's core operational performance and more readily compare its results to other airlines in the periods presented below.

   

 

The impairment and contract termination charges related to the early retirement of the Company's fleet of 767 aircraft, engines, and related assets along with the bonuses and a proposed collective bargaining agreement payment are considered special items by the Company and are not expected to represent ongoing expenses to the Company. Excluding these special items allows investors to better analyze the Company's core operational performance and more readily compare its results to other airlines in the periods presented below.

 
   

Three Months Ended December 31,

 

Twelve Months Ended December 31,

   

2016

 

2015

 

2016

 

2015

   

Net
Income

 

Diluted
Net
Income
Per Share

 

Net
Income

 

Diluted
Net
Income
Per Share

 

Net
Income

 

Diluted
Net
Income
Per Share

 

Net
Income

 

Diluted
Net
Income
Per Share

As reported—GAAP

 

$

10,641

   

$

0.20

   

$

37,900

   

$

0.66

   

$

244,131

   

$

4.52

   

$

182,646

   

$

2.98

 

Add: changes in fair value of derivative contracts

 

(1,907)

   

(0.04)

   

12,968

   

0.23

   

(47,678)

   

(0.88)

   

(1,015)

   

(0.02)

 

Add: loss on extinguishment of debt

 

480

   

0.01

   

4,762

   

0.08

   

10,473

   

0.19

   

12,058

   

0.20

 

Add: special items

                               

Impairment charge

 

49,361

   

0.92

   

   

   

49,361

   

0.92

   

   

 

Termination charge

 

21,000

   

0.39

   

   

   

21,000

   

0.39

   

   

 

Bonuses and a proposed collective bargaining agreement payment

 

24,781

   

0.46

   

   

   

24,781

   

0.46

   

   

 

Tax effect of adjustments

 

(35,583)

   

(0.66)

   

(7,092)

   

(0.12)

   

(21,987)

   

(0.41)

   

(4,417)

   

(0.07)

 

Adjusted net income

 

$

68,773

   

$

1.28

   

$

48,538

   

$

0.85

   

$

280,081

   

$

5.19

   

$

189,272

   

$

3.09

 

 

   

Three months ended December 31,

 

Twelve months ended December 31,

   

2016

 

2015

 

2016

 

2015

Income Before Income Taxes, as reported

 

$

17,561

   

$

61,446

   

$

393,464

   

$

295,688

 

Add: changes in fair value of derivative contracts

 

(1,907)

   

12,968

   

(47,678)

   

(1,015)

 

Add: loss on extinguishment of debt

 

480

   

4,762

   

10,473

   

12,058

 

Add: special items

               

Impairment charge

 

49,361

   

   

49,361

   

 

Termination charge

 

21,000

   

   

21,000

   

 

Bonuses and a proposed collective bargaining agreement payment

 

24,781

   

   

24,781

   

 

Adjusted Income Before Income Taxes

 

$

111,276

   

$

79,176

   

$

451,401

   

$

306,731

 

 

Operating Costs per Available Seat Mile (CASM)

The Company has separately listed in the table below its fuel costs per ASM and non-GAAP unit costs, excluding fuel.  These amounts are included in CASM, but for internal purposes the Company consistently uses cost metrics that exclude fuel and non-recurring items (if applicable) to measure and monitor its costs.

   

Three Months Ended December 31,

 

Twelve Months Ended December 31,

   

2016

 

2015

 

2016

 

2015

   

(in thousands, except as otherwise indicated)

GAAP operating expenses

 

$

608,104

   

$

465,308

   

$

2,041,118

   

$

1,891,364

 

Less: aircraft fuel, including taxes and delivery

 

(95,806)

   

(88,399)

   

(344,322)

   

(417,728)

 

Less: special items

               

Impairment charge

 

(49,361)

   

   

(49,361)

   

 

Termination charge

 

(21,000)

   

   

(21,000)

   

 

Bonuses and a proposed collective bargaining agreement payment

 

(24,781)

   

   

(24,781)

   

 

Adjusted operating expenses—excluding aircraft fuel and special items

 

$

417,156

   

$

376,909

   

$

1,601,654

   

$

1,473,636

 

Available Seat Miles

 

4,570,679

   

4,391,792

   

18,384,637

   

17,726,322

 

CASM—GAAP

 

13.30

¢

 

10.59

¢

 

11.10

¢

 

10.67

¢

Less: aircraft fuel

 

(2.10)

   

(2.01)

   

(1.87)

   

(2.36)

 

Less: special items

               

Impairment charge

 

(1.08)

   

   

(0.28)

   

 

Termination charge

 

(0.46)

   

   

(0.11)

   

 

Bonuses and a proposed collective bargaining agreement payment

 

(0.54)

   

   

(0.13)

   

 

CASM—excluding aircraft fuel and special items

 

9.12

¢

 

8.58

¢

 

8.71

¢

 

8.31

¢

 

   

Estimated three months ending March 31, 2017

GAAP operating expenses

 

$

511,591

 

-

$

539,845

 

Less: aircraft fuel, including taxes and delivery

 

(100,235)

 

-

(108,248)

 

Adjusted operating expenses - excluding aircraft fuel

 

$

411,356

 

-

$

431,597

 

Available Seat Miles

 

4,477,298

 

-

4,564,660

 

CASM - GAAP

 

11.43

¢

-

11.83

¢

Less: aircraft fuel

 

(2.24)

 

-

(2.37)

 

CASM - excluding aircraft fuel

 

9.19

¢

-

9.46

¢

 

Given that the Company is providing only general directional guidance on its Full Year 2017 CASM excluding fuel and Full Year 2017 CASM, it is unable to provide a meaningful reconciliation of these metrics.

Pre-tax margin

The Company excludes unrealized (gains) losses from fuel derivative contracts, losses on extinguishment of debt and special items from pre-tax margin for the same reasons as described above.

   

Three months ended December 31,

 

Twelve months ended December 31,

   

2016

 

2015

 

2016

 

2015

Pre-Tax Margin, as reported

 

2.8

%

 

10.7

%

 

16.1

%

 

12.7

%

Add: changes in fair value of derivative contracts

 

(0.3)

%

 

2.3

%

 

(2.0)

%

 

%

Add: loss on extinguishment of debt

 

0.1

%

 

0.8

%

 

0.4

%

 

0.5

%

Add: special items

               

Impairment charge

 

7.8

%

 

%

 

2.0

%

 

%

Termination charge

 

3.3

%

 

%

 

0.9

%

 

%

Bonuses and a proposed collective bargaining agreement payment

 

3.9

%

 

%

 

1.0

%

 

%

Adjusted Pre-Tax Margin

 

17.6

%

 

13.8

%

 

18.4

%

 

13.2

%

 

Leverage ratio

The Company uses adjusted total debt, including aircraft rent, in addition to long-term adjusted debt and capital leases, to represent long-term financial obligations. The Company excludes unrealized (gains) losses from fuel derivative contracts, losses on extinguishment of debt and special items from earnings before interest, taxes, depreciation, amortization and rent (EBITDAR) for the reasons as described above.  Management believes this metric is helpful to investor in assessing the Company's overall debt.

   

Twelve months ended

   

December 31, 2016

Debt and capital lease obligations

 

$

556,807

Plus: Aircraft leases capitalized at 7x last twelve months' aircraft rent

 

871,955

Adjusted debt and capital lease obligations

 

$

1,428,762

     

EBITDAR:

   

Income Before Income Taxes

 

$

393,464

Add back:

   

Interest and amortization of debt expense

 

36,612

Depreciation and amortization

 

108,128

Aircraft rent

 

124,565

EBITDAR

 

$

662,769

     

Adjustments:

   

Add: Changes in fair value of derivative contracts

 

(47,678)

Add: Loss on extinguishment of debt

 

10,473

Add: Special items

   

Impairment charge

 

49,361

Termination charge

 

21,000

Bonuses and a proposed collective bargaining agreement payment

 

24,781

Adjusted EBITDAR

 

$

720,706

     

Leverage Ratio

 

2.0x

 

 

To view the original version on PR Newswire, visit:https://www.prnewswire.com/news-releases/hawaiian-holdings-reports-2016-fourth-quarter-and-full-year-financial-results-300395864.html

SOURCE Hawaiian Holdings, Inc.