EX-99.1 3 d497031dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

ITEM 6. SELECTED FINANCIAL DATA.

Explanatory Note: United Continental Holdings, Inc. (together with its consolidated subsidiaries, “UAL” or the “Company”) is a holding company and its principal, wholly-owned subsidiary is United Airlines, Inc. (together with its consolidated subsidiaries, “United”). We sometimes use the words “we,” “our,” and “us” in this Exhibit 99.1 of this Current Report on Form 8-K for disclosures that relate to all of UAL and United. The following table shows the Company’s selected financial data for the periods and as of the dates indicated, which is derived from the consolidated financial statements. The information contained herein should be read together with, and is qualified in its entirety by reference to the consolidated financial statements and the accompanying notes included as Exhibit 99.3 of this Current Report on Form 8-K.

The Company’s consolidated financial statements and statistical data are provided in the tables below.

UAL Statement of Consolidated Operations Data

 

(In millions, except per share amounts)

    Year Ended December 31,  
     2012     2011      2010      2009     2008  

Income Statement Data:

             

Operating revenue

    $ 37,152      $ 37,110       $ 23,325       $ 16,335      $ 20,194   

Operating expense

      37,113        35,288         22,349         16,496        24,632   

Operating income (loss)

      39        1,822         976         (161 )      (4,438 ) 

Net income (loss)

      (723 )      840         253         (651 )      (5,396 ) 

Net income (loss) excluding special items (a)

      589        1,323         942         (1,128 )      (1,773 ) 

Basic earnings (loss) per share

      (2.18 )      2.54         1.22         (4.32 )      (42.59 ) 

Diluted earnings (loss) per share

      (2.18 )      2.26         1.08         (4.32 )      (42.59 ) 

Balance Sheet Data at December 31:

             

Unrestricted cash, cash equivalents and short-term investments

    $ 6,543      $ 7,762       $ 8,680       $ 3,042      $ 2,039   

Total assets

      37,628        37,988         39,598         18,684        19,465   

Debt and capital lease obligations

      13,166        12,735         15,133         8,543        8,004   

 

(a) See “Reconciliation of GAAP to non-GAAP Financial Measures” in this Item 6 for further details related to items that significantly impacted UAL’s results.

UAL Selected Operating Data

Presented below is the Company’s operating data for the years ended December 31.

 

    Year Ended December 31,  
    2012     2011     2010     2009     2008  

Mainline

          

Passengers (thousands) (a)

     93,595        96,360        65,365        56,082        63,149   

Revenue passenger miles (“RPMs”) (millions) (b)

     179,416        181,763        122,182        100,475        110,061   

Available seat miles (“ASMs”) (millions) (c)

     216,330        219,437        145,738        122,737        135,861   

Cargo ton miles (millions)

     2,460        2,646        2,176        1,603        1,921   

Passenger load factor (d)

          

Mainline

     82.9 %      82.8 %      83.8 %      81.9 %      81.0 % 

Domestic

     84.9 %      85.1 %      84.8 %      83.7 %      82.6 % 

International

     80.9 %      80.5 %      82.7 %      79.4 %      79.0 % 

Passenger revenue per available seat mile (“PRASM”) (cents)

     11.93        11.84        10.99        9.22        10.91   

Total revenue per available seat mile (cents)

     13.92        13.77        12.91        10.81        12.58   

Average yield per revenue passenger mile (“Yield”) (cents) (e)

     14.38        14.29        13.11        11.26        13.47   

Average fare per revenue passenger (f)

   $ 275.70      $ 269.56      $ 245.06      $ 201.72      $ 234.71   

 

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Cost per available seat mile (“CASM”) (cents)

      14.12        13.15        12.51        11.05        15.74   

Average price per gallon of fuel, including fuel taxes

    $ 3.27      $ 3.01      $ 2.27      $ 1.75      $ 3.54   

Fuel gallons consumed (millions)

      3,275        3,303        2,280        1,942        2,182   

Aircraft in fleet at end of period (g)

      702        701        710        360        409   

Average stage length (miles) (h)

      1,895        1,844        1,789        1,701        1,677   

Average daily utilization of each aircraft (hours) (i)

      10:38        10:42        10:47        10:47        10:42   

Regional

           

Passengers (thousands) (a)

      46,846        45,439        32,764        25,344        23,278   

RPMs (millions) (b)

      26,069        25,768        18,675        13,770        12,155   

ASMs (millions) (c)

      32,530        33,091        23,827        17,979        16,164   

Passenger load factor (d)

      80.1 %      77.9 %      78.4 %      76.6 %      75.2 % 

PRASM (cents)

      20.84        19.75        17.70        16.04        18.44   

Yield (cents) (e)

      26.00        25.36        22.58        20.95        24.52   

Aircraft in fleet at end of period (g)

      551        555        552        292        280   

Consolidated

           

Passengers (thousands) (a)

      140,441        141,799        98,129        81,426        86,427   

RPMs (millions) (b)

      205,485        207,531        140,857        114,245        122,216   

ASMs (millions) (c)

      248,860        252,528        169,565        140,716        152,025   

Passenger load factor (d)

      82.6 %      82.2 %      83.1 %      81.2 %      80.4 % 

PRASM (cents)

      13.09        12.87        11.93        10.09        11.71   

Yield (cents) (e)

      15.86        15.67        14.37        12.43        14.57   

CASM (cents)

      14.91        13.97        13.18        11.72        16.20   

Average price per gallon of fuel, including fuel taxes

    $ 3.27      $ 3.06      $ 2.39      $ 1.80      $ 3.52   

Fuel gallons consumed (millions)

      4,016        4,038        2,798        2,338        2,553   

 

(a) The number of revenue passengers measured by each flight segment flown.
(b) The number of scheduled miles flown by revenue passengers.
(c) The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown.
(d) RPM divided by ASM.
(e) The average passenger revenue received for each revenue passenger mile flown.
(f) Passenger revenue divided by number of passengers.
(g) Excludes aircraft that were removed from service. Regional aircraft include aircraft operated by all carriers under capacity purchase agreements, but exclude any aircraft that were subleased to other operators but not operated on our behalf.
(h) Average stage length equals the average distance a flight travels weighted for size of aircraft.
(i) The average number of hours per day that an aircraft flown in revenue service is operated (from gate departure to gate arrival).

Reconciliation of GAAP to non-GAAP Financial Measures

The Company evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (“GAAP”) and non-GAAP financial measures including net income/loss, net earnings/loss per share and cost per available seat mile (“CASM”), among others. CASM is a common metric used in the airline industry to measure an airline’s cost structure and efficiency. 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. Fuel hedge mark-to-market (“MTM”) gains (losses) are excluded as the Company did not apply cash flow hedge accounting for certain of the periods presented, and these adjustments may provide a better comparison to the Company’s peers, most of which either apply cash flow hedge accounting or exclude cash MTM gains or losses in certain disclosures of fuel expense. The Company believes that adjusting for special items is useful to investors because the special items are non-recurring items not indicative of the Company’s ongoing performance. The Company also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, fuel sales and non-air mileage redemptions, provides more meaningful disclosure because these expenses are not directly related to the Company’s core business. Pursuant to SEC Regulation G, the Company has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis (in millions, except CASM amounts). For further information related to special items, see Note 20 to the financial statements included under Exhibit 99.3 of this Current Report on Form 8-K.

 

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     Year ended December 31,  
     2012     2011     2010     2009     2008  

Net income (loss) excluding special items:

           

Net income (loss)

    $ (723 )    $ 840      $ 253      $ (651 )    $ (5,396 ) 

Total special items—income (expense)

(see detail below)

      (1,312 )      (483 )      (689 )      477        (3,623 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) excluding special items

    $ 589      $ 1,323      $ 942      $ (1,128 )    $ (1,773 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Special items—income (expense) (millions)

           

Special revenue item

    $ —        $ 107      $ —        $ —        $ —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Merger and integration-related costs

      (739 )      (517 )      (564 )      —          —     

Labor agreement costs

      (475 )      —          —          —          —     

Voluntary severance and benefits

      (125 )      —          —          —          —     

Goodwill impairment (charge) credit

      —          —          64        —          (2,277 ) 

Other intangible impairments

      (30 )      (4 )      (29 )      (150 )      (64 ) 

Other asset impairments

      —          —          (136 )      (93 )      (250 ) 

Municipal bond litigation

      —          —          —          (27 )      —     

Termination of maintenance service contract

      —          (58 )      —          —          —     

Other

      46        (13 )      (4 )      (104 )      (25 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Special operating expense

      (1,323 )      (592 )      (669 )      (374 )      (2,616 ) 

Other operating expense items

      —          —          —          (35 )      (191 ) 

Operating non-cash MTM gain (loss)

      —          —          (32 )      586        (568 ) 

Non-operating non-cash MTM gain (loss) (a)

      —          —          —          279        (279 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other expense items

      —          —          (32 )      830        (1,038 ) 

Income tax benefit

      11        2        12        21        31   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total special items (b)

    $ (1,312 )    $ (483 )    $ (689 )    $ 477      $ (3,623 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Mainline CASM excluding special charges and aircraft fuel and related taxes:

           

Operating expense

    $ 30,539      $ 28,850      $ 18,228       

Special charges

      (1,323 )      (592 )      (669 )     

Third-party business expenses

      (298 )      (235 )      (218 )     

Aircraft fuel and related taxes

      (10,713 )      (9,936 )      (5,387 )     

Profit sharing

      (119 )      (265 )      (166 )     
  

 

 

    

 

 

    

 

 

      

Operating expense excluding above items

    $ 18,086      $ 17,822      $ 11,788       
  

 

 

    

 

 

    

 

 

      

ASMs—mainline

      216,330        219,437        145,738       

CASM (cents)

      14.12        13.15        12.51       

CASM, excluding special items

      13.51        12.88        12.03       

CASM, excluding special items and third-party business expenses

      13.37        12.77        11.88       

CASM, excluding special items, third-party business expenses and fuel

      8.42        8.24        8.20       

CASM, excluding special items, third-party business expenses, fuel and profit sharing

      8.36        8.12        8.09       

 

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Consolidated CASM excluding special charges and aircraft fuel and related taxes:

            

Operating expense

    $ 37,113      $ 35,288      $ 22,349        

Special charges

      (1,323 )      (592 )      (669 )      

Third-party business expenses

      (298 )      (235 )      (218 )      

Aircraft fuel and related taxes

      (13,138 )      (12,375 )      (6,687 )      

Profit Sharing

      (119 )      (265 )      (166 )      
  

 

 

    

 

 

    

 

 

       

Operating expense excluding above items

    $ 22,235      $ 21,821      $ 14,609        
  

 

 

    

 

 

    

 

 

       

ASMs—consolidated

      248,860        252,528        169,565        

CASM (cents)

      14.91        13.97        13.18        

CASM, excluding special items

      14.38        13.74        12.77        

CASM, excluding special items and third-party business expenses

      14.26        13.65        12.64        

CASM, excluding special items, third-party business expenses and fuel

      8.98        8.75        8.71        

CASM, excluding special items, third-party business expenses, fuel and profit sharing

      8.93        8.64        8.62        

 

(a) In 2009 and 2008, the Company included Non-operating non-cash MTM gains (losses) in special items for certain presentations of net income excluding special items. The Company no longer includes Non-operating non-cash MTM gains (losses) in special items.
(b) See Note 20 to the financial statements included under Exhibit 99.3 of this Current Report on Form 8-K.

 

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