HONOLULU, July 25, 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 second quarter of 2017.
|
Second Quarter
2017 - Key Financial Metrics
|
|
|
GAAP
|
|
YoY
Change
|
|
Adjusted
|
|
YoY
Change
|
Net
Income
|
|
$80.4M
|
|
+$0.9M
|
|
$85.3M
|
|
+$20.1M
|
Diluted
EPS
|
|
$1.49
|
|
+$0.01
|
|
$1.58
|
|
+$0.37
|
Pre-tax
Margin
|
|
19.2%
|
|
(2.4) pts.
|
|
20.3%
|
|
+2.6 pts.
|
|
|
|
|
|
|
|
|
|
"Our string of outstanding results continued into the second
quarter," said Mark Dunkerley,
Hawaiian Airlines president and CEO. "These results have come
courtesy of strong demand for the Hawai'i vacation, low fuel
prices, moderate industry capacity, and an excellent job done by my
colleagues in finding new ways to strengthen our performance.
My thanks go to all of Hawaiian's employees who contributed to our
terrific financial and operational performance."
Statistical information, as well as a reconciliation of the
non-GAAP financial measures, can be found in the accompanying
tables.
Liquidity and Capital Resources
As of June 30, 2017, the Company had:
- Unrestricted cash, cash equivalents and short-term investments
of $844 million.
- Outstanding debt and capital lease obligations of $528 million.
In addition, the Company repurchased approximately 83
thousand shares of common stock for approximately $4.3 million in the second quarter.
Second Quarter 2017 Highlights
People
- Contributed approximately $8
million to further reduce its pension obligations.
- Began operating under the 63-month contract ratified in the
prior quarter with its pilots represented by the Airline Pilots
Association (ALPA).
Operational
- Ranked #1 nationally for on-time performance for the months of
April and May 2017 as reported in the
U.S. Department of Transportation Air Travel Consumer Report.
- Relocated operations at Los
Angeles International Airport (LAX) from Terminal 2 to
Terminal 5.
New routes and increased frequencies
- Extended seasonal non-stop service between Los Angeles International Airport (LAX) and
Kaua'i's Lihu'e Airport (LIH) to
year-round non-stop service.
- Commenced summer seasonal service with daily non-stop flights
from Oakland International Airport
(OAK) to Kaua'i's Lihu'e Airport
(LIH), and thrice weekly flights from Los
Angeles International Airport (LAX) to Kona International
Airport (KOA).
- Announced expanded service for 2018 between North America and Hawai'i capitalizing on the
introduction of the A321neo to Hawaiian's fleet, including:
-
- New non-stop service between Portland International Airport
(PDX) and Kahului Airport (OGG) beginning January 2018
- Extending seasonal non-stop service between Los Angeles International Airport (LAX) and
Kona International Airport (KOA) to year-round non-stop service
beginning March 2018
- Extending seasonal non-stop service between Oakland International Airport (OAK) and
Kaua'i's Lihu'e Airport (LIH) to
year-round non-stop service beginning April
2018
Product and loyalty
- Continued remodeling of its A330 fleet with the addition of lie
flat premium seats and expanded Extra Comfort capacity.
Fleet and financing
- Completed a sale-leaseback transaction covering three Boeing
767 aircraft as part of the planned exit from its 767 fleet.
Third Quarter and Full Year 2017 Outlook
The table below summarizes the Company's expectations for the
quarter ending September 30, 2017 and
full year ending December 31, 2017,
expressed as an expected percentage change compared to the results
for the quarter ended September 30,
2016 and full year ended December 31,
2016, as applicable.
The Company is lowering its guidance range for economic fuel
cost per gallon for the full year ending December 31, 2017 due to lower than expected
year-to-date fuel costs and the forward fuel price curve as of
July 14, 2017.
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
|
|
Third
Quarter
|
Item
|
|
2017
Guidance
|
|
GAAP
Equivalent
|
|
2017
Guidance
|
Cost per ASM
excluding Fuel and Special Items (a)
|
|
Up 7% to up
10%
|
|
Cost per ASM
(a)
|
|
Up 17.6% to up
21.1%
|
Operating Revenue Per
ASM
|
|
Up 4.5% to up
7.5%
|
|
|
|
|
ASMs
|
|
Up 0.5% to up
2.5%
|
|
|
|
|
Gallons of jet fuel
consumed
|
|
Up 3% to up
5%
|
|
|
|
|
Economic fuel cost
per gallon (b)(c)
|
|
$1.55 to
$1.65
|
|
Fuel cost per gallon
(b)
|
|
$1.50 to
$1.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
Year
|
|
|
|
Full
Year
|
Item
|
|
2017
Guidance
|
|
GAAP
Equivalent
|
|
2017
Guidance
|
Cost per ASM
excluding Fuel and Special Items (a)
|
|
Up 4.5% to up
7.5%
|
|
Cost per ASM
(a)
|
|
Up 3.8% to up
7.2%
|
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)
|
|
$1.55 to
$1.65
|
|
Fuel cost per gallon
(b)
|
|
$1.53 to
$1.63
|
|
|
|
|
|
|
|
(a)
|
See Table 4 for a
reconciliation of operating expenses to operating expenses
excluding aircraft fuel and special items.
|
|
|
(b)
|
Economic fuel cost
per gallon estimates are based on the July 14, 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 (July 25, 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 each of the past 13 years (2004-2016) as reported by the U.S.
Department of Transportation. Consumer surveys by Condé Nast
Traveler, Travel + Leisure and Zagat have ranked
Hawaiian among 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. 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, cost
per available seat mile excluding fuel and special items, available
seat miles, gallons of jet fuel consumed, fuel cost per gallon, and
economic fuel cost per gallon each for the quarter ending
September 30, 2017 and full year
ending December 31, 2017; the
Company's expectations regarding operating revenue per available
seat mile for the quarter ending September
30, 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, including the
potential impact of rising industry capacity between North America and Hawai'i; 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
(a)
|
|
%
Change
|
|
2017
|
|
2016
(a)
|
|
%
Change
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
|
$
|
593,210
|
|
$
|
518,572
|
|
14.4%
|
|
$
|
1,130,800
|
|
$
|
1,000,599
|
|
13.0%
|
Other
|
82,125
|
|
76,018
|
|
8.0%
|
|
158,720
|
|
145,171
|
|
9.3%
|
Total
|
675,335
|
|
594,590
|
|
13.6%
|
|
1,289,520
|
|
1,145,770
|
|
12.5%
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel,
including taxes and delivery
|
102,774
|
|
83,798
|
|
22.6%
|
|
206,312
|
|
153,698
|
|
34.2%
|
Wages and
benefits
|
154,660
|
|
130,801
|
|
18.2%
|
|
305,713
|
|
259,362
|
|
17.9%
|
Aircraft
rent
|
34,553
|
|
30,066
|
|
14.9%
|
|
67,688
|
|
59,454
|
|
13.8%
|
Maintenance,
materials and repairs
|
52,566
|
|
54,585
|
|
(3.7)%
|
|
111,970
|
|
115,089
|
|
(2.7)%
|
Aircraft and
passenger servicing
|
34,751
|
|
30,723
|
|
13.1%
|
|
68,209
|
|
59,274
|
|
15.1%
|
Commissions and other
selling
|
32,557
|
|
31,425
|
|
3.6%
|
|
65,738
|
|
64,456
|
|
2.0%
|
Depreciation and
amortization
|
27,872
|
|
26,988
|
|
3.3%
|
|
55,340
|
|
54,134
|
|
2.2%
|
Other rentals and
landing fees
|
27,438
|
|
24,978
|
|
9.8%
|
|
55,774
|
|
49,412
|
|
12.9%
|
Purchased
services
|
28,055
|
|
24,543
|
|
14.3%
|
|
54,692
|
|
47,275
|
|
15.7%
|
Special
items
|
4,771
|
|
—
|
|
—%
|
|
23,450
|
|
—
|
|
—%
|
Other
|
32,789
|
|
32,731
|
|
0.2%
|
|
64,791
|
|
62,714
|
|
3.3%
|
Total
|
532,786
|
|
470,638
|
|
13.2%
|
|
1,079,677
|
|
924,868
|
|
16.7%
|
Operating
Income
|
142,549
|
|
123,952
|
|
15.0%
|
|
209,843
|
|
220,902
|
|
(5.0)%
|
Nonoperating
Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
amortization of debt discounts and issuance costs
|
(7,711)
|
|
(8,910)
|
|
|
|
(15,714)
|
|
(19,914)
|
|
|
Interest
income
|
1,467
|
|
1,087
|
|
|
|
2,619
|
|
1,931
|
|
|
Capitalized
interest
|
2,082
|
|
463
|
|
|
|
3,842
|
|
688
|
|
|
Gains (losses) on
fuel derivatives
|
(4,712)
|
|
21,087
|
|
|
|
(13,510)
|
|
19,022
|
|
|
Loss on
extinguishment of debt
|
—
|
|
(6,643)
|
|
|
|
—
|
|
(9,993)
|
|
|
Other components of
net periodic benefit cost
|
(4,750)
|
|
(5,082)
|
|
|
|
(9,501)
|
|
(10,164)
|
|
|
Other, net
|
433
|
|
2,686
|
|
|
|
3,261
|
|
9,272
|
|
|
Total
|
(13,191)
|
|
4,688
|
|
|
|
(29,003)
|
|
(9,158)
|
|
|
Income Before
Income Taxes
|
129,358
|
|
128,640
|
|
|
|
180,840
|
|
211,744
|
|
|
Income tax
expense
|
48,925
|
|
49,070
|
|
|
|
63,495
|
|
80,708
|
|
|
Net
Income
|
$
|
80,433
|
|
$
|
79,570
|
|
|
|
$
|
117,345
|
|
$
|
131,036
|
|
|
Net Income Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.50
|
|
$
|
1.48
|
|
|
|
$
|
2.19
|
|
$
|
2.45
|
|
|
Diluted
|
$
|
1.49
|
|
$
|
1.48
|
|
|
|
$
|
2.18
|
|
$
|
2.43
|
|
|
Weighted Average
Number of Common Stock Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
53,626
|
|
53,634
|
|
|
|
53,595
|
|
53,574
|
|
|
Diluted
|
53,914
|
|
53,853
|
|
|
|
53,948
|
|
53,833
|
|
|
|
|
(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 and $10.2
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 and six months ended June 30, 2016,
respectively.
|
|
|
Table
2.
|
Hawaiian
Holdings, Inc.
|
Selected
Statistical Data (unaudited)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
2017
|
|
2016
|
|
%
Change
|
|
2017
|
|
2016
|
|
%
Change
|
|
(in thousands, except as otherwise indicated)
|
|
(in thousands, except as otherwise indicated)
|
Scheduled
Operations (a) :
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passengers
flown
|
2,885
|
|
|
2,755
|
|
|
4.7
|
%
|
|
5,588
|
|
|
5,401
|
|
|
3.5
|
%
|
Revenue passenger
miles (RPM)
|
4,099,122
|
|
|
3,846,966
|
|
|
6.6
|
%
|
|
7,896,847
|
|
|
7,388,033
|
|
|
6.9
|
%
|
Available seat miles
(ASM)
|
4,735,335
|
|
|
4,550,964
|
|
|
4.1
|
%
|
|
9,256,433
|
|
|
8,917,956
|
|
|
3.8
|
%
|
Passenger revenue per
RPM (Yield)
|
14.47
|
¢
|
|
13.48
|
¢
|
|
7.3
|
%
|
|
14.32
|
¢
|
|
13.54
|
¢
|
|
5.8
|
%
|
Passenger load factor
(RPM/ASM)
|
86.6
|
%
|
|
84.5
|
%
|
|
2.1
|
pt.
|
|
85.3
|
pt.
|
|
82.8
|
pt.
|
|
2.5
|
pt.
|
Passenger revenue per
ASM (PRASM)
|
12.53
|
¢
|
|
11.39
|
¢
|
|
10.0
|
%
|
|
12.22
|
¢
|
|
11.22
|
¢
|
|
8.9
|
%
|
Total Operations
(a) :
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passengers
flown
|
2,886
|
|
|
2,756
|
|
|
4.7
|
%
|
|
5,590
|
|
|
5,403
|
|
|
3.5
|
%
|
Revenue passenger
miles (RPM)
|
4,099,261
|
|
|
3,847,065
|
|
|
6.6
|
%
|
|
7,897,754
|
|
|
7,389,122
|
|
|
6.9
|
%
|
Available seat miles
(ASM)
|
4,735,491
|
|
|
4,551,094
|
|
|
4.1
|
%
|
|
9,257,844
|
|
|
8,919,188
|
|
|
3.8
|
%
|
Operating revenue per
ASM (RASM)
|
14.26
|
¢
|
|
13.06
|
¢
|
|
9.2
|
%
|
|
13.93
|
¢
|
|
12.85
|
¢
|
|
8.4
|
%
|
Operating cost per
ASM (CASM)
|
11.25
|
¢
|
|
10.34
|
¢
|
|
8.8
|
%
|
|
11.66
|
¢
|
|
10.37
|
¢
|
|
12.4
|
%
|
CASM excluding
aircraft fuel and special items (b)
|
8.98
|
¢
|
|
8.50
|
¢
|
|
5.6
|
%
|
|
9.18
|
¢
|
|
8.65
|
¢
|
|
6.1
|
%
|
Aircraft fuel expense
per ASM (c)
|
2.17
|
¢
|
|
1.84
|
¢
|
|
17.9
|
%
|
|
2.23
|
¢
|
|
1.72
|
¢
|
|
29.7
|
%
|
Revenue block hours
operated
|
47,569
|
|
|
44,367
|
|
|
7.2
|
%
|
|
92,574
|
|
|
87,093
|
|
|
6.3
|
%
|
Gallons of jet fuel
consumed
|
64,506
|
|
|
59,697
|
|
|
8.1
|
%
|
|
126,244
|
|
|
117,553
|
|
|
7.4
|
%
|
Average cost per
gallon of jet fuel (actual) (c)
|
$
|
1.59
|
|
|
$
|
1.40
|
|
|
13.6
|
%
|
|
$
|
1.63
|
|
|
$
|
1.31
|
|
|
24.4
|
%
|
Economic fuel cost
per gallon (c)(d)
|
$
|
1.62
|
|
|
$
|
1.55
|
|
|
4.5
|
%
|
|
$
|
1.63
|
|
|
$
|
1.54
|
|
|
5.8
|
%
|
|
|
(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 a good 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 losses/(gains) 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,
|
|
2017
|
|
2016
|
|
%
Change
|
|
2017
|
|
2016
|
|
%
Change
|
|
(in thousands,
except per-
gallon amounts)
|
|
(in thousands,
except per-
gallon amounts)
|
Aircraft fuel
expense, including taxes and delivery
|
$
|
102,774
|
|
$
|
83,798
|
|
22.6%
|
|
$
|
206,312
|
|
$
|
153,698
|
|
34.2%
|
Realized losses
(gains) on settlement of fuel derivative contracts
|
1,902
|
|
8,799
|
|
(78.4)%
|
|
(687)
|
|
27,824
|
|
(102.5)%
|
Economic fuel
expense
|
$
|
104,676
|
|
$
|
92,597
|
|
13.0%
|
|
$
|
205,625
|
|
$
|
181,522
|
|
13.3%
|
Fuel gallons
consumed
|
64,506
|
|
59,697
|
|
8.1%
|
|
126,244
|
|
117,553
|
|
7.4%
|
Economic fuel costs
per gallon
|
$
|
1.62
|
|
$
|
1.55
|
|
4.5%
|
|
$
|
1.63
|
|
$
|
1.54
|
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated three
months ending
September 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
|
$
|
100,442
|
to
|
$
|
109,270
|
|
$
|
390,910
|
to
|
$
|
428,504
|
Realized losses on
settlement of fuel derivative contracts
|
3,200
|
|
3,200
|
|
4,500
|
|
4,500
|
Economic fuel
expense
|
$
|
103,642
|
to
|
$
|
112,470
|
|
$
|
395,410
|
to
|
$
|
433,004
|
Fuel gallons
consumed
|
66,866
|
to
|
68,164
|
|
255,103
|
to
|
262,427
|
Economic fuel costs
per gallon
|
$
|
1.55
|
to
|
$
|
1.65
|
|
$
|
1.55
|
to
|
$
|
1.65
|
|
|
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 helps investors 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 help
investors analyze the Company's operational performance and compare
its results to other airlines in the periods presented below.
- The collective bargaining charge 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. The loss on sale
of aircraft was a result of a sale-leaseback transaction
covering three Boeing 767 aircraft as part of the planned exit from
its 767 fleet. These one-time charges will have no impact on CASM
excluding fuel and special items as they are considered special
items by the Company and are not expected to represent ongoing
expenses. The Company believes that excluding such special items
helps investors analyze the Company's operational performance and
compare its results to other airlines in the periods presented
below.
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Total
|
|
Diluted
Per Share
|
|
Total
|
|
Diluted
Per Share
|
|
Total
|
|
Diluted
Per Share
|
|
Total
|
|
Diluted
Per Share
|
GAAP net income, as
reported
|
|
$
|
80,433
|
|
|
$
|
1.49
|
|
|
$
|
79,570
|
|
|
$
|
1.48
|
|
|
$
|
117,345
|
|
|
$
|
2.18
|
|
|
$
|
131,036
|
|
|
$
|
2.43
|
|
Add: changes in fair
value of derivative contracts
|
|
2,810
|
|
|
0.05
|
|
|
(29,886)
|
|
|
(0.55)
|
|
|
14,197
|
|
|
0.26
|
|
|
(46,846)
|
|
|
(0.87)
|
|
Add: loss on
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
6,643
|
|
|
0.12
|
|
|
—
|
|
|
—
|
|
|
9,993
|
|
|
0.19
|
|
Add: special
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
aircraft
|
|
4,771
|
|
|
0.09
|
|
|
—
|
|
|
—
|
|
|
4,771
|
|
|
0.09
|
|
|
—
|
|
|
—
|
|
Collective bargaining
charge
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,679
|
|
|
0.34
|
|
|
—
|
|
|
—
|
|
Total special
items
|
|
4,771
|
|
|
0.09
|
|
|
—
|
|
|
—
|
|
|
23,450
|
|
|
0.43
|
|
|
—
|
|
|
—
|
|
Add tax effect of
adjustments
|
|
(2,764)
|
|
|
(0.05)
|
|
|
8,832
|
|
|
0.16
|
|
|
(13,764)
|
|
|
(0.26)
|
|
|
14,004
|
|
|
0.26
|
|
Adjusted net
income
|
|
$
|
85,250
|
|
|
$
|
1.58
|
|
|
$
|
65,159
|
|
|
$
|
1.21
|
|
|
$
|
141,228
|
|
|
$
|
2.61
|
|
|
$
|
108,187
|
|
|
$
|
2.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
(a)
|
Income Before Income
Taxes, as reported
|
|
$
|
129,358
|
|
|
$
|
128,640
|
|
|
$
|
180,840
|
|
|
$
|
211,744
|
|
Add: changes in fair
value of derivative contracts
|
|
2,810
|
|
|
(29,886)
|
|
|
14,197
|
|
|
(46,846)
|
|
Add: loss on
extinguishment of debt
|
|
—
|
|
|
6,643
|
|
|
—
|
|
|
9,993
|
|
Add: special
items
|
|
|
|
|
|
|
|
|
Loss on sale of
aircraft
|
|
4,771
|
|
|
—
|
|
|
4,771
|
|
|
—
|
|
Collective bargaining
charge
|
|
—
|
|
|
—
|
|
|
18,679
|
|
|
—
|
|
Total special
items
|
|
4,771
|
|
|
—
|
|
|
23,450
|
|
|
—
|
|
Adjusted Income
Before Income Taxes
|
|
136,939
|
|
|
105,397
|
|
|
218,487
|
|
|
174,891
|
|
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
June 30,
|
|
Six months ended
June 30,
|
|
|
2017
|
|
2016
(a)
|
|
2017
|
|
2016
(a)
|
GAAP operating
expenses
|
|
$
|
532,786
|
|
|
$
|
470,638
|
|
|
$
|
1,079,677
|
|
|
$
|
924,868
|
|
Less: aircraft fuel,
including taxes and delivery
|
|
(102,774)
|
|
|
(83,798)
|
|
|
(206,312)
|
|
|
(153,698)
|
|
Loss on sale of
aircraft
|
|
$
|
(4,771)
|
|
|
$
|
—
|
|
|
$
|
(4,771)
|
|
|
$
|
—
|
|
Collective bargaining
charge
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(18,679)
|
|
|
$
|
—
|
|
Less: special
items
|
|
$
|
(4,771)
|
|
|
$
|
—
|
|
|
$
|
(23,450)
|
|
|
$
|
—
|
|
Adjusted operating
expenses - excluding aircraft fuel and special items
|
|
$
|
425,241
|
|
|
$
|
386,840
|
|
|
$
|
849,915
|
|
|
$
|
771,170
|
|
Available Seat
Miles
|
|
4,735,491
|
|
|
4,551,094
|
|
|
9,257,844
|
|
|
8,919,188
|
|
CASM -
GAAP
|
|
11.25
|
¢
|
|
10.34
|
¢
|
|
11.66
|
¢
|
|
10.37
|
¢
|
Less: aircraft
fuel
|
|
(2.17)
|
|
|
(1.84)
|
|
|
(2.23)
|
|
|
(1.72)
|
|
Less: special
items
|
|
|
|
|
|
|
|
|
Loss on sale of
aircraft
|
|
(0.10)
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
Collective bargaining
charge
|
|
—
|
|
|
—
|
|
|
(0.15)
|
|
|
—
|
|
Total special
items
|
|
(0.10)
|
|
|
—
|
|
|
(0.20)
|
|
|
—
|
|
CASM - excluding
aircraft fuel and special items
|
|
8.98
|
¢
|
|
8.50
|
¢
|
|
9.18
|
¢
|
|
8.65
|
¢
|
|
|
(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 and $10.2 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
and six months ended June 30, 2016, respectively.
|
|
|
|
|
|
|
Estimated three
months ending
September 30,
2017
|
|
Estimated full
year ending
December 31,
2017
|
GAAP operating
expenses
|
|
$
|
582,372
|
|
to
|
$
|
611,953
|
|
|
$
|
2,154,194
|
|
to
|
$
|
2,291,562
|
|
Less: aircraft fuel,
including taxes and delivery
|
|
(100,442)
|
|
to
|
(109,270)
|
|
|
(390,910)
|
|
to
|
(428,504)
|
|
Less: special
items
|
|
|
|
|
|
|
|
|
Loss on sale of
aircraft
|
|
—
|
|
|
—
|
|
|
(4,771)
|
|
|
(4,771)
|
|
Collective bargaining
charge
|
|
—
|
|
|
—
|
|
|
(18,679)
|
|
|
(18,679)
|
|
Post retirement
benefits related (a)
|
|
(54,000)
|
|
|
(54,000)
|
|
|
(54,000)
|
|
|
(54,000)
|
|
Adjusted operating
expenses - excluding aircraft fuel and special items
|
|
$
|
427,930
|
|
to
|
$
|
448,683
|
|
|
$
|
1,685,834
|
|
to
|
$
|
1,785,608
|
|
Available Seat
Miles
|
|
4,919,242
|
|
to
|
5,017,137
|
|
|
18,752,329
|
|
to
|
19,303,868
|
|
CASM -
GAAP
|
|
11.84
|
¢
|
to
|
12.20
|
¢
|
|
11.49
|
¢
|
to
|
11.87
|
¢
|
Less: aircraft
fuel
|
|
(2.04)
|
|
to
|
(2.18)
|
|
|
(2.08)
|
|
to
|
(2.22)
|
|
Less: special
items
|
|
|
|
|
|
|
|
|
Loss on sale of
aircraft
|
|
—
|
|
to
|
—
|
|
|
(0.03)
|
|
to
|
(0.02)
|
|
Collective bargaining
charge
|
|
—
|
|
to
|
—
|
|
|
(0.10)
|
|
to
|
(0.10)
|
|
Post retirement
benefits related (a)
|
|
(1.10)
|
|
to
|
(1.08)
|
|
|
(0.29)
|
|
to
|
(0.28)
|
|
Total special
items
|
|
(1.10)
|
¢
|
|
(1.08)
|
¢
|
|
(0.42)
|
¢
|
|
(0.40)
|
¢
|
CASM - excluding
aircraft fuel and special items
|
|
8.70
|
¢
|
to
|
8.94
|
¢
|
|
8.99
|
¢
|
to
|
9.25
|
¢
|
|
|
(a)
|
The Company expects
to incur charges related to the termination of its Salaried &
IAM Merged Pension Plan and the settlement of a portion of its
outstanding other post-retirement medical plan obligation with its
pilots, which are considered special items by the Company and are
not expected to represent ongoing expenses to the Company.
Excluding such special items helps investors analyze the Company's
core operational performance and more readily compare its results
to other airlines in the periods presented above.
|
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
June 30,
|
|
Six months ended
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Pre-Tax Margin, as
reported
|
|
19.2
|
%
|
|
21.6
|
%
|
|
14.0
|
%
|
|
18.5
|
%
|
Add: changes in fair
value of derivative contracts
|
|
0.4
|
%
|
|
(5.0)
|
%
|
|
1.1
|
%
|
|
(4.1)
|
%
|
Add: loss on
extinguishment of debt
|
|
—
|
%
|
|
1.1
|
%
|
|
—
|
%
|
|
0.9
|
%
|
Add: special
items
|
|
|
|
|
|
|
|
|
Loss on sale of
aircraft
|
|
0.7
|
%
|
|
—
|
%
|
|
0.4
|
%
|
|
—
|
%
|
Collective bargaining
charge
|
|
—
|
%
|
|
—
|
%
|
|
1.4
|
%
|
|
—
|
%
|
Total special
items
|
|
0.7
|
%
|
|
—
|
%
|
|
1.8
|
%
|
|
—
|
%
|
Adjusted Pre-Tax
Margin
|
|
20.3
|
%
|
|
17.7
|
%
|
|
16.9
|
%
|
|
15.3
|
%
|
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
|
|
|
June 30,
2017
|
Debt and capital
lease obligations
|
|
$
|
527,511
|
|
Plus: Aircraft leases
capitalized at 7x last twelve months' aircraft rent
|
|
929,593
|
|
Adjusted debt and
capital lease obligations
|
|
$
|
1,457,104
|
|
|
|
|
EBITDAR:
|
|
|
Income Before Income
Taxes
|
|
$
|
362,560
|
|
Add back:
|
|
|
Interest and
amortization of debt discounts and issuance costs
|
|
32,412
|
|
Depreciation and
amortization
|
|
109,334
|
|
Aircraft
rent
|
|
132,799
|
|
EBITDAR
|
|
$
|
637,105
|
|
|
|
|
Adjustments:
|
|
|
Add: changes in fair
value of derivative contracts
|
|
13,365
|
|
Add: loss on
extinguishment of debt
|
|
480
|
|
Add: special
items
|
|
132,592
|
|
Adjusted
EBITDAR
|
|
$
|
783,542
|
|
|
|
|
Leverage
Ratio
|
|
1.9
|
x
|
View original
content:http://www.prnewswire.com/news-releases/hawaiian-holdings-reports-2017-second-quarter-financial-results-300493884.html
SOURCE Hawaiian Holdings, Inc.