Delaware | 000-49728 | 87-0617894 | ||
(State of Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit | ||||
Number | Description | |||
99.1 | Press Release dated October 26, 2011 of JetBlue Airways
Corporation announcing financial results for the third quarter
ended September 30, 2011. |
JETBLUE AIRWAYS CORPORATION (Registrant) |
||||
Date: October 26, 2011 | By: | /s/ Donald Daniels | ||
Vice President, Controller and | ||||
Chief Accounting Officer (Principal Accounting Officer) |
Exhibit | ||||
Number | Exhibit | |||
99.1 | Press Release dated October 26, 2011 announcing financial
results for the third quarter ended September 30, 2011. |
| Operating income for the quarter was $108 million, resulting in a 9.0% operating margin, compared to operating income of $140 million and a 13.6% operating margin in the third quarter of 2010. |
| Pre-tax income of $56 million in the third quarter, which includes a one-time loss related to the early extinguishment of portions of JetBlues convertible debt. Excluding this one-time item, JetBlues pre-tax income for the quarter was $61 million. This compares to pre-tax income of $97 million in the third quarter of 2010. |
| Net income for the third quarter was $35 million, or $0.11 per diluted share. Excluding the one-time item, JetBlue reported net income of $38 million, or $0.12 per diluted share. This compares to JetBlues third quarter 2010 net income of $59 million, or $0.18 per diluted share. |
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Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | Percent | September 30, | Percent | |||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||||
Passenger |
$ | 1,087 | $ | 932 | 16.6 | $ | 3,039 | $ | 2,569 | 18.3 | ||||||||||||||
Other |
108 | 98 | 10.2 | 319 | 272 | 17.3 | ||||||||||||||||||
Total operating revenues |
1,195 | 1,030 | 16.0 | 3,358 | 2,841 | 18.2 | ||||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||
Aircraft fuel and related taxes |
454 | 292 | 55.3 | 1,246 | 825 | 50.9 | ||||||||||||||||||
Salaries, wages and benefits |
236 | 227 | 3.7 | 706 | 664 | 6.3 | ||||||||||||||||||
Landing fees and other rents |
65 | 61 | 6.8 | 185 | 173 | 7.2 | ||||||||||||||||||
Depreciation and amortization |
57 | 54 | 3.8 | 171 | 165 | 3.3 | ||||||||||||||||||
Aircraft rent |
32 | 31 | 4.7 | 102 | 93 | 9.9 | ||||||||||||||||||
Sales and marketing |
49 | 47 | 5.6 | 145 | 130 | 12.0 | ||||||||||||||||||
Maintenance materials and repairs |
59 | 44 | 34.8 | 165 | 124 | 33.1 | ||||||||||||||||||
Other operating expenses |
135 | 134 | 1.1 | 399 | 389 | 2.7 | ||||||||||||||||||
Total operating expenses |
1,087 | 890 | 22.1 | 3,119 | 2,563 | 21.7 | ||||||||||||||||||
OPERATING INCOME |
108 | 140 | (23.1 | ) | 239 | 278 | (14.1 | ) | ||||||||||||||||
Operating margin |
9.0 | % | 13.6 | % | (4.6 | ) pts. | 7.1 | % | 9.8 | % | (2.7 | ) pts. | ||||||||||||
OTHER INCOME (EXPENSE) |
||||||||||||||||||||||||
Interest expense |
(45 | ) | (45 | ) | 0.1 | (133 | ) | (135 | ) | (1.1 | ) | |||||||||||||
Capitalized interest |
1 | 1 | 19.6 | 3 | 3 | 24.9 | ||||||||||||||||||
Interest income and other |
(8 | ) | 1 | (936.1 | ) | (4 | ) | 2 | (320.5 | ) | ||||||||||||||
Total other income (expense) |
(52 | ) | (43 | ) | 21.6 | (134 | ) | (130 | ) | 3.4 | ||||||||||||||
INCOME BEFORE INCOME TAXES |
56 | 97 | 105 | 148 | ||||||||||||||||||||
Pre-tax margin |
4.6 | % | 9.4 | % | (4.8 | ) pts. | 3.1 | % | 5.2 | % | (2.1 | ) pts. | ||||||||||||
Income tax expense |
21 | 38 | 42 | 59 | ||||||||||||||||||||
NET INCOME |
$ | 35 | $ | 59 | $ | 63 | $ | 89 | ||||||||||||||||
EARNINGS PER COMMON SHARE: |
||||||||||||||||||||||||
Basic |
$ | 0.12 | $ | 0.21 | $ | 0.23 | $ | 0.32 | ||||||||||||||||
Diluted |
$ | 0.11 | $ | 0.18 | $ | 0.21 | $ | 0.28 | ||||||||||||||||
Weighted average shares outstanding (thousands): |
||||||||||||||||||||||||
Basic |
279,099 | 275,731 | 278,280 | 275,011 | ||||||||||||||||||||
Diluted |
346,253 | 346,934 | 347,680 | 346,152 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | Percent | September 30, | Percent | |||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||
Revenue passengers (thousands) |
7,016 | 6,573 | 6.7 | 19,677 | 18,215 | 8.0 | ||||||||||||||||||
Revenue passenger miles (millions) |
8,332 | 7,699 | 8.2 | 22,948 | 21,295 | 7.8 | ||||||||||||||||||
Available seat miles (ASMs) (millions) |
9,855 | 9,102 | 8.3 | 27,807 | 26,214 | 6.1 | ||||||||||||||||||
Load factor |
84.5 | % | 84.6 | % | (0.1 | )pts. | 82.5 | % | 81.2 | % | 1.3 | pts. | ||||||||||||
Aircraft utilization (hours per day) |
12.0 | 12.0 | 0.2 | 11.7 | 11.9 | (1.1 | ) | |||||||||||||||||
Average fare |
$ | 154.88 | $ | 141.79 | 9.2 | $ | 154.44 | $ | 141.03 | 9.5 | ||||||||||||||
Yield per passenger mile (cents) |
13.04 | 12.10 | 7.7 | 13.24 | 12.06 | 9.8 | ||||||||||||||||||
Passenger revenue per ASM (cents) |
11.03 | 10.24 | 7.7 | 10.93 | 9.80 | 11.5 | ||||||||||||||||||
Operating revenue per ASM (cents) |
12.12 | 11.32 | 7.1 | 12.08 | 10.84 | 11.4 | ||||||||||||||||||
Operating expense per ASM (cents) |
11.03 | 9.78 | 12.8 | 11.22 | 9.78 | 14.7 | ||||||||||||||||||
Operating expense per ASM, excluding fuel (cents) |
6.43 | 6.57 | (2.2 | ) | 6.74 | 6.63 | 1.6 | |||||||||||||||||
Airline operating expense per ASM (cents) (a) |
10.88 | 9.53 | 14.2 | 11.04 | 9.56 | 15.5 | ||||||||||||||||||
Departures |
63,099 | 58,935 | 7.1 | 181,437 | 169,504 | 7.0 | ||||||||||||||||||
Average stage length (miles) |
1,108 | 1,103 | 0.5 | 1,092 | 1,102 | (0.9 | ) | |||||||||||||||||
Average number of operating aircraft during period |
165.8 | 153.4 | 8.1 | 163.9 | 151.8 | 8.0 | ||||||||||||||||||
Average fuel cost per gallon |
$ | 3.25 | $ | 2.26 | 43.5 | $ | 3.18 | $ | 2.25 | 41.0 | ||||||||||||||
Fuel gallons consumed (millions) |
139 | 130 | 8.3 | 392 | 367 | 7.1 | ||||||||||||||||||
Full-time equivalent employees at period end (a) |
11,443 | 10,669 | 7.3 |
(a) | Excludes operating expenses and employees of LiveTV, LLC, which are unrelated to our airline operations. |
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
Cash and cash equivalents |
$ | 632 | $ | 465 | ||||
Total investment securities |
607 | 628 | ||||||
Total assets |
6,911 | 6,593 | ||||||
Total debt |
3,057 | 3,033 | ||||||
Stockholders equity |
1,707 | 1,654 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2011 | September 30, 2011 | |||||||||||||||
$ | Pre-tax margin | $ | Pre-tax margin | |||||||||||||
Pre-tax income, excluding loss on extinguishment of debt |
||||||||||||||||
Income before income taxes, as reported |
$ | 56 | 4.6 | % | $ | 105 | 3.1 | % | ||||||||
Loss on extinguishment of debt |
5 | 5 | ||||||||||||||
Income before income taxes, excluding loss on
extinguishment of debt |
61 | 5.1 | % | 110 | 3.3 | % | ||||||||||
Net income, excluding loss on extinguishment of debt |
||||||||||||||||
Net income, as reported |
$ | 35 | $ | 63 | ||||||||||||
Loss on extinguishment of debt |
5 | 5 | ||||||||||||||
Income tax expense related to loss on
extinguishment of debt |
(2 | ) | (2 | ) | ||||||||||||
Net Income, excluding loss on
extinguishment of debt |
38 | 66 | ||||||||||||||
Diluted earnings per share, excluding loss on extinguishment of debt |
||||||||||||||||
Diluted earnings per share, as reported |
$ | 0.11 | $ | 0.21 | ||||||||||||
Impact of Loss on extinguishment of debt |
0.01 | 0.01 | ||||||||||||||
Diluted earnings per share, excluding loss on |
$ | 0.12 | $ | 0.22 | ||||||||||||
extinguishment of debt |
(b) | The third quarter of 2011 includes a loss on the early extinguishment of a portion of our convertible debt. In managements view, it is useful for investors to consider separately the impact of this early debt extinguishment on the third quarter and year to date operating results. We believe the presentation on these non-GAAP financial measures is useful in order to facilitate our investors understanding of some of the key reasons for period to period fluctuations in our operating results and to distinguish between those reasons that relate to our ongoing operations and those that are a result of this early extinguishment of debt. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. |