HONOLULU, April 20, 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 first quarter of 2017.
|
First Quarter 2017
- Key Financial Metrics
|
|
|
GAAP
|
|
YoY
Change
|
|
Adjusted
|
|
YoY
Change
|
|
Net
Income
|
|
$36.9M
|
|
($14.6M)
|
|
$56.0M
|
|
+$12.9M
|
|
Diluted
EPS
|
|
$0.68
|
|
($0.27)
|
|
$1.04
|
|
+$0.24
|
|
Pre-tax
Margin
|
|
8.4%
|
|
(6.7) pts.
|
|
13.3%
|
|
+0.7 pts.
|
|
|
|
|
|
|
|
|
|
"The year has started extremely well," said Mark Dunkerley, Hawaiian Airlines president and
CEO. "Strong demand coupled with benign industry capacity growth in
our geographies have given us a robust operating environment
sufficient to more than offset the impact of the rising price of
fuel. Beyond the financial numbers, the company continues to
perform well thanks to the hard work of my 6,500 colleagues. We are
looking forward to the months ahead."
Statistical information, as well as a reconciliation of the
non-GAAP financial measures, can be found in the accompanying
tables.
The first quarter results include the adoption of a new
accounting standard which positively impacted the tax expense,
resulting in a 10 cent increase to
GAAP and adjusted EPS.
Liquidity and Capital Resources
As of March 31, 2017, the Company had:
- Unrestricted cash, cash equivalents and short-term investments
of $740 million.
- Outstanding debt and capital lease obligations of $536 million.
The Company also replenished its share repurchase authorization
to $100 million while concurrently
extending the program through May
2019.
First Quarter 2017 Highlights
People
- Ratified a 63-month contract with its pilots represented by the
Airline Pilots Association (ALPA).
- Electively contributed approximately $6
million to further reduce its pension obligations.
Operational
- Ranked #1 nationally for on-time performance for the month of
January 2017 as reported in the U.S.
Department of Transportation Air Travel Consumer Report.
- Named "Airline of the Year" for 2016 by Incheon International
Airport.
- Expanded in-house pilot training capabilities with the addition
of a new A321neo simulator.
New routes
- Launched daily round trip flights from Maui's Kapalua Airport (JHM) to Honolulu International Airport (HNL) and
Kahului Airport (OGG).
- Launched daily round trip flights from Kaua'i's Lîhu'e Airport (LIH) to Kona
International Airport (KOA).
Product and loyalty
- Continued remodeling of its A330 fleet with the addition of lie
flat premium seats and expanded Extra Comfort capacity.
- Unveiled innovative A321neo cabin design elevating island
hospitality and preeminent premium leisure experience.
Second Quarter and Full Year 2017 Outlook
The table below summarizes the Company's expectations for the
second quarter ending June 30, 2017
and full year ending December 31,
2017, expressed as an expected percentage change compared to
the results for the quarter ended June 30,
2016 and full year ended December 31,
2016, as applicable.
The Company is raising its guidance range for available seat
miles (ASMs) and gallons of jet fuel to be consumed for the full
year ending December 31, 2017 due to
planned increases in flying and higher than expected
payload increases from cargo and passengers.
|
Item
|
|
Second Quarter
2017
Guidance
|
|
GAAP
Equivalent
|
|
Second
Quarter
2017 Guidance
|
|
Cost per ASM
Excluding Fuel (a)
|
|
Up 4.5% to up
7.5%
|
|
Cost per ASM
(a)
|
|
Up 8% to up
11%
|
|
Operating Revenue Per
ASM
|
|
Up 5.5% to up
8.5%
|
|
|
|
|
|
ASMs
|
|
Up 3% to up
5%
|
|
|
|
|
|
Gallons of jet fuel
consumed
|
|
Up 6.5% to up
8.5%
|
|
|
|
|
|
Economic fuel cost
per gallon (b)(c)
|
|
$1.65 to
$1.75
|
|
Fuel cost per gallon
(b)
|
|
$1.65 to
$1.75
|
|
|
|
|
|
|
|
|
Item
|
|
Full
Year
2017 Guidance
|
|
GAAP
Equivalent
|
|
Full
Year
2017 Guidance
|
|
Cost per ASM
Excluding Fuel and Special Items (a)
|
|
Up in mid-single
digit
range
|
|
Cost per ASM
(a)
|
|
Up in high single
digit
range
|
|
ASMs
|
|
Up 2% to up
5%
|
|
|
|
|
|
Gallons of jet fuel
consumed
|
|
Up 4.5% to up
7.5%
|
|
|
|
|
|
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 April 10, 2017 fuel forward
curve.
|
|
(c)
|
See Table 3 for a
reconciliation of GAAP fuel costs to economic fuel
costs.
|
Investor Conference Call
Hawaiian Holdings' quarterly earnings conference call is
scheduled to begin today (April 20, 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 for 90
days on the investor relations section of the Company's
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 13 years (2004-2016) 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 170 jet flights daily
between the Hawaiian Islands, with a total of more than 250 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,
available seat miles, gallons of jet fuel consumed, fuel cost per
gallon, and economic fuel cost per gallon each for the quarter
ending June 30, 2017 and full year
ending December 31, 2017; the
Company's expectations regarding operating revenue per available
seat mile and cost per available seat mile excluding fuel for the
quarter ending June 30, 2017; the
Company's expectations regarding cost per available seat mile
excluding fuel and special items for the full year ending
December 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
March 31,
|
|
|
2017
|
|
2016
(a)
|
|
%
Change
|
|
Operating
Revenue:
|
|
|
|
|
|
|
|
Passenger
|
|
$
|
537,590
|
|
|
$
|
482,027
|
|
|
11.5
|
%
|
|
Other
|
|
76,595
|
|
|
69,153
|
|
|
10.8
|
%
|
|
Total
|
|
614,185
|
|
|
551,180
|
|
|
11.4
|
%
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
Aircraft fuel,
including taxes and delivery
|
|
103,538
|
|
|
69,900
|
|
|
48.1
|
%
|
|
Wages and
benefits
|
|
151,053
|
|
|
128,561
|
|
|
17.5
|
%
|
|
Aircraft
rent
|
|
33,135
|
|
|
29,388
|
|
|
12.8
|
%
|
|
Maintenance,
materials and repairs
|
|
59,404
|
|
|
60,504
|
|
|
(1.8)
|
%
|
|
Aircraft and
passenger servicing
|
|
33,458
|
|
|
28,551
|
|
|
17.2
|
%
|
|
Commissions and other
selling
|
|
33,186
|
|
|
33,031
|
|
|
0.5
|
%
|
|
Depreciation and
amortization
|
|
27,468
|
|
|
27,146
|
|
|
1.2
|
%
|
|
Other rentals and
landing fees
|
|
28,336
|
|
|
24,434
|
|
|
16.0
|
%
|
|
Purchased
services
|
|
26,637
|
|
|
22,732
|
|
|
17.2
|
%
|
|
Special
items
|
|
18,679
|
|
|
—
|
|
|
N/A
|
|
|
Other
|
|
31,997
|
|
|
29,983
|
|
|
6.7
|
%
|
|
Total
|
|
546,891
|
|
|
454,230
|
|
|
20.4
|
%
|
|
Operating
Income
|
|
67,294
|
|
|
96,950
|
|
|
(30.6)
|
%
|
|
Nonoperating
Income (Expense):
|
|
|
|
|
|
|
|
Interest expense and
amortization of debt discounts and issuance costs
|
|
(8,003)
|
|
|
(11,004)
|
|
|
|
|
Interest
income
|
|
1,152
|
|
|
844
|
|
|
|
|
Capitalized
interest
|
|
1,760
|
|
|
225
|
|
|
|
|
Gains (Losses) on
fuel derivatives
|
|
(8,798)
|
|
|
(2,065)
|
|
|
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
(3,350)
|
|
|
|
|
Other components of
net periodic benefit cost
|
|
(4,751)
|
|
|
(5,082)
|
|
|
|
|
Other, net
|
|
2,828
|
|
|
6,586
|
|
|
|
|
Total
|
|
(15,812)
|
|
|
(13,846)
|
|
|
|
|
Income Before
Income Taxes
|
|
51,482
|
|
|
83,104
|
|
|
|
|
Income tax
expense
|
|
14,570
|
|
|
31,638
|
|
|
|
|
Net
Income
|
|
$
|
36,912
|
|
|
$
|
51,466
|
|
|
|
|
Net Income Per
Share
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.69
|
|
|
$
|
0.96
|
|
|
|
|
Diluted
|
|
$
|
0.68
|
|
|
$
|
0.95
|
|
|
|
|
Weighted Average
Number of Common Stock Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
53,562
|
|
|
53,656
|
|
|
|
|
Diluted
|
|
53,980
|
|
|
53,955
|
|
|
|
|
|
|
(a)
|
The other components
of net benefit cost are required to be presented in the income
statement separately from the service cost component and outside a
subtotal of income from operations, if one is presented.
Accounting Standard Update 2017-07 (ASU 2017-07) is effective for
fiscal years, and interim periods within those fiscal years,
beginning after December 15, 2017, with early adoption only
permitted for the Company in the first quarter of 2017, provided
all provisions of the ASU are adopted. The Company early adopted
this standard during the first quarter of 2017. The adoption of ASU
2017-07 resulted in a reclassification of $5.1 million from wages
and benefits to other components of net periodic benefit cost on
the Company's consolidated statement of operations for the three
months ended March 31, 2016.
|
|
Table
2.
|
|
Hawaiian
Holdings, Inc.
|
|
Selected
Statistical Data (unaudited)
|
|
|
|
Three months ended
March 31,
|
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
(in thousands, except as otherwise indicated)
|
|
Scheduled
Operations (a) :
|
|
|
|
|
|
|
|
Revenue passengers
flown
|
|
2,704
|
|
|
2,646
|
|
|
2.2
|
%
|
|
Revenue passenger
miles (RPM)
|
|
3,797,725
|
|
|
3,541,069
|
|
|
7.2
|
%
|
|
Available seat miles
(ASM)
|
|
4,521,098
|
|
|
4,366,995
|
|
|
3.5
|
%
|
|
Passenger revenue per
RPM (Yield)
|
|
14.16
|
¢
|
|
13.61
|
¢
|
|
4.0
|
%
|
|
Passenger load factor
(RPM/ASM)
|
|
84.0
|
%
|
|
81.1
|
%
|
|
2.9
|
pt.
|
|
Passenger revenue per
ASM (PRASM)
|
|
11.89
|
¢
|
|
11.04
|
¢
|
|
7.7
|
%
|
|
Total Operations
(a) :
|
|
|
|
|
|
|
|
Revenue passengers
flown
|
|
2,704
|
|
|
2,647
|
|
|
2.2
|
%
|
|
Revenue passenger
miles (RPM)
|
|
3,798,493
|
|
|
3,542,059
|
|
|
7.2
|
%
|
|
Available seat miles
(ASM)
|
|
4,522,353
|
|
|
4,368,096
|
|
|
3.5
|
%
|
|
Operating revenue per
ASM (RASM)
|
|
13.58
|
¢
|
|
12.62
|
¢
|
|
7.6
|
%
|
|
Operating cost per
ASM (CASM)
|
|
12.09
|
¢
|
|
10.40
|
¢
|
|
16.3
|
%
|
|
CASM excluding
aircraft fuel and special items (b)
|
|
9.39
|
¢
|
|
8.80
|
¢
|
|
6.7
|
%
|
|
Aircraft fuel expense
per ASM (c)
|
|
2.29
|
¢
|
|
1.60
|
¢
|
|
43.1
|
%
|
|
Revenue block hours
operated
|
|
45,005
|
|
|
42,726
|
|
|
5.3
|
%
|
|
Gallons of jet fuel
consumed
|
|
61,738
|
|
|
57,855
|
|
|
6.7
|
%
|
|
Average cost per
gallon of jet fuel (actual) (c)
|
|
$
|
1.68
|
|
|
$
|
1.21
|
|
|
38.8
|
%
|
|
Economic fuel cost
per gallon (c)(d)
|
|
$
|
1.64
|
|
|
$
|
1.54
|
|
|
6.5
|
%
|
|
|
|
|
(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 to operating expenses
excluding aircraft fuel and special items.
|
|
(c)
|
Includes
applicable taxes and fees.
|
|
(d)
|
See Table 3 for a
reconciliation of GAAP fuel costs to 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
March 31,
|
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
(in thousands,
except per-
gallon amounts)
|
|
|
|
Aircraft fuel
expense, including taxes and delivery
|
|
$
|
103,538
|
|
|
$
|
69,900
|
|
|
48.1
|
%
|
|
Realized losses
(gains) on settlement of fuel derivative contracts
|
|
(2,589)
|
|
|
19,025
|
|
|
(113.6)
|
%
|
|
Economic fuel
expense
|
|
$
|
100,949
|
|
|
$
|
88,925
|
|
|
13.5
|
%
|
|
Fuel gallons
consumed
|
|
61,738
|
|
|
57,855
|
|
|
6.7
|
%
|
|
Economic fuel costs
per gallon
|
|
$
|
1.64
|
|
|
$
|
1.54
|
|
|
6.5
|
%
|
|
|
Estimated three months
ending
June 30,
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
|
|
$
|
104,903
|
|
to
|
$
|
113,350
|
|
|
$
|
442,865
|
|
to
|
$
|
481,343
|
|
|
Realized
(gains)/losses on settlement of fuel derivative
contracts
|
|
—
|
|
|
—
|
|
|
(5,000)
|
|
|
(5,000)
|
|
|
Economic fuel
expense
|
|
$
|
104,903
|
|
to
|
$
|
113,350
|
|
|
$
|
437,865
|
|
to
|
$
|
476,343
|
|
|
Fuel gallons
consumed
|
|
63,577
|
|
to
|
64,771
|
|
|
250,209
|
|
to
|
257,532
|
|
|
Economic fuel costs
per gallon
|
|
$
|
1.65
|
|
to
|
$
|
1.75
|
|
|
$
|
1.75
|
|
to
|
$
|
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.
The Company believes that excluding the impact of these derivative
adjustments allows investors to better analyze the Company's
operational performance and 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 operational performance and compare
its results to other airlines in the periods presented
below.
|
|
|
•
|
The Company accrued
an additional $18.7 million related to (1) a one-time payment to
reduce the future 401K employer contribution for certain pilot
groups, and (2) a one-time true up of the pilot vacation accrual at
the new negotiated contract rates. These one-time charges
are considered special items by the Company and are not
expected to represent ongoing expenses to the Company. The Company
believes that excluding such special items allows investors to
better analyze the Company's operational performance and compare
its results to other airlines in the periods presented
below.
|
|
|
|
Three months ended
March 31,
|
|
|
2017
|
|
2016
|
|
|
Total
|
|
Diluted Per
Share
|
|
Total
|
|
Diluted Per
Share
|
|
GAAP net income, as
reported
|
|
$
|
36,912
|
|
|
$
|
0.68
|
|
|
$
|
51,466
|
|
|
$
|
0.95
|
|
|
Add: changes in fair
value of derivative contracts
|
|
11,387
|
|
|
0.21
|
|
|
(16,960)
|
|
|
(0.31)
|
|
|
Add: loss on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
3,350
|
|
|
0.06
|
|
|
Add: special
items
|
|
18,679
|
|
|
0.35
|
|
|
—
|
|
|
—
|
|
|
Tax effect of
adjustments
|
|
(11,001)
|
|
|
(0.20)
|
|
|
5,172
|
|
|
0.10
|
|
|
Adjusted net
income
|
|
$
|
55,977
|
|
|
$
|
1.04
|
|
|
$
|
43,028
|
|
|
$
|
0.80
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2017
|
|
2016
|
|
Income Before Income
Taxes, as reported
|
|
$
|
51,482
|
|
|
$
|
83,104
|
|
|
Add: changes in fair
value of derivative contracts
|
|
11,387
|
|
|
(16,960)
|
|
|
Add: loss on
extinguishment of debt
|
|
—
|
|
|
3,350
|
|
|
Add: special
items
|
|
$
|
18,679
|
|
|
$
|
—
|
|
|
Adjusted Income
Before Income Taxes
|
|
$
|
81,548
|
|
|
$
|
69,494
|
|
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 and special
items. These amounts are included in CASM, but for internal
purposes the Company consistently uses cost metrics that exclude
fuel and special items (if applicable) to measure and monitor its
costs.
|
|
Three months ended
March 31,
|
|
|
2017
|
|
2016
(a)
|
|
GAAP operating
expenses
|
|
$
|
546,891
|
|
|
$
|
454,230
|
|
|
Less: aircraft fuel,
including taxes and delivery
|
|
(103,538)
|
|
|
(69,900)
|
|
|
Less: special
items
|
|
$
|
(18,679)
|
|
|
$
|
—
|
|
|
Adjusted operating
expenses - excluding aircraft fuel and special items
|
|
$
|
424,674
|
|
|
$
|
384,330
|
|
|
Available Seat
Miles
|
|
4,522,353
|
|
|
4,368,096
|
|
|
CASM -
GAAP
|
|
12.09
|
¢
|
|
10.40
|
¢
|
|
Less: aircraft
fuel
|
|
(2.29)
|
|
|
(1.60)
|
|
|
Less: special
items
|
|
(0.41)
|
|
|
—
|
|
|
CASM - excluding
aircraft fuel and special items
|
|
9.39
|
¢
|
|
8.80
|
¢
|
|
|
|
(a)
|
The other components
of net benefit cost are required to be presented in the income
statement separately from the service cost component and outside a
subtotal of income from operations, if one is presented. Accounting
Standard Update 2017-07 (ASU 2017-07) is effective for fiscal
years, and interim periods within those fiscal years, beginning
after December 15, 2017, with early adoption only permitted for the
Company in the first quarter of 2017, provided all provisions of
the ASU are adopted. The Company early adopted this standard during
the first quarter of 2017. The adoption of ASU 2017-07 resulted in
a reclassification of $5.1 million from wages and benefits to other
components of net periodic benefit cost on the Company's
consolidated statement of operations for the three months ended
March 31, 2016.
|
|
|
Estimated three
months ending
June 30,
2017
|
|
GAAP operating
expenses
|
|
$
|
521,281
|
|
to
|
$
|
549,999
|
|
|
Less: aircraft fuel,
including taxes and delivery
|
|
(104,903)
|
|
to
|
(113,350)
|
|
|
Adjusted operating
expenses - excluding aircraft fuel
|
|
$
|
416,378
|
|
to
|
$
|
436,649
|
|
|
Available Seat
Miles
|
|
4,687,625
|
|
to
|
4,778,647
|
|
|
CASM -
GAAP
|
|
11.12
|
¢
|
to
|
11.51
|
¢
|
|
Less: aircraft
fuel
|
|
(2.24)
|
|
to
|
(2.37)
|
|
|
CASM - excluding
aircraft fuel
|
|
8.88
|
¢
|
to
|
9.14
|
¢
|
Given that the Company is providing only general directional
guidance on its Full Year 2017 CASM excluding fuel and special
items and Full Year 2017 CASM, it is unable to provide a meaningful
reconciliation of these metrics.
Pre-tax margin
The Company excludes unrealized gains 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
March 31,
|
|
|
2017
|
|
2016
|
|
Pre-Tax Margin, as
reported
|
|
8.4
|
%
|
|
15.1
|
%
|
|
Add: changes in fair
value of derivative contracts
|
|
1.9
|
%
|
|
(3.1)
|
%
|
|
Add: loss on
extinguishment of debt
|
|
—
|
%
|
|
0.6
|
%
|
|
Add: special
items
|
|
3.0
|
%
|
|
—
|
%
|
|
Adjusted Pre-Tax
Margin
|
|
13.3
|
%
|
|
12.6
|
%
|
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 investors in assessing the Company's overall
debt.
|
|
Twelve months
ended
March 31,
2017
|
|
Debt and capital
lease obligations
|
|
$
|
535,528
|
|
Plus: Aircraft leases
capitalized at 7x last twelve months' aircraft rent
|
|
898,184
|
|
Adjusted debt and
capital lease obligations
|
|
$
|
1,433,712
|
|
|
|
|
EBITDAR:
|
|
|
|
Income Before Income
Taxes
|
|
$
|
361,841
|
|
Add back:
|
|
|
|
Interest and
amortization of debt discounts and issuance costs
|
|
33,498
|
|
Depreciation and
amortization
|
|
108,451
|
|
Aircraft
rent
|
|
128,312
|
|
EBITDAR
|
|
$
|
632,102
|
|
|
|
|
Adjustments:
|
|
|
|
Add: changes in fair
value of derivative contracts
|
|
(19,330)
|
|
Add: loss on
extinguishment of debt
|
|
7,123
|
|
Add: special
items
|
|
113,821
|
|
Adjusted
EBITDAR
|
|
$
|
733,718
|
|
|
|
|
Leverage
Ratio
|
|
2.0x
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hawaiian-holdings-reports-2017-first-quarter-financial-results-300442976.html
SOURCE Hawaiian Holdings, Inc.