Delaware | 1-31443 | 71-0879698 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
99.1 | Hawaiian Holdings Reports 2016 Second Quarter Financial Results, Press Release, Dated July 21, 2016. |
Dated: July 21, 2016 | |||
HAWAIIAN HOLDINGS, INC. | |||
By: | /s/ Shannon L. Okinaka | ||
Name: | Shannon L. Okinaka | ||
Title: | Executive Vice President, Chief Financial Officer and Treasurer |
99.1 | Hawaiian Holdings Reports 2016 Second Quarter Financial Results, Press Release, Dated July 21, 2016. |
FOR IMMEDIATE RELEASE Thursday, July 21, 2016 | COMPANY CONTACT: Shannon Okinaka, EVP & CFO - (808) 835-3700 Shannon.Okinaka@HawaiianAir.com INVESTOR RELATIONS CONTACT: Ashlee Kishimoto, Sr. Director - (808) 838-5421 Ashlee.Kishimoto@HawaiianAir.com | |
MEDIA RELATIONS CONTACT: Alison Croyle, Director - (808) 835-3886 Alison.Croyle@HawaiianAir.com |
Second Quarter 2016 - Key Financial Metrics | ||||||||
GAAP | YoY Change | Adjusted | YoY Change | |||||
Net Income | $79.6M | +$30.7M | $65.2M | +$27.7M | ||||
Diluted EPS | $1.48 | +$0.69 | $1.21 | +$0.60 | ||||
Pre-tax Margin | 21.6% | +7.7 pts. | 17.7% | +7 pts. |
· | Awarded three times weekly non-stop service between Kona International Airport and Tokyo’s Haneda International Airport and additional non-stop frequencies four times weekly between Honolulu International Airport and Haneda International Airport beginning December 2016. |
· | Won the 2016 Skytrax World Airline Award for 'Best Airline Staff' in North America. |
· | Announced new uniforms for front line employees to debut in 2017. |
· | Launched Bid Up, a new first class upgrade auction offering North America guests the chance to name their price for first class seats. |
· | Welcomed the first retrofitted A330 aircraft with the new 278 passenger seat configuration featuring 18 fully lie-flat Premium Cabin seats, 68 Extra Comfort seats, and 192 Main Cabin seats. |
Third Quarter | ||||||
Item | 2015 | Third Quarter 2016 Guidance | ||||
Cost per ASM Excluding Fuel (cents)(a) | 7.97 | Up 2% to up 5% | ||||
Operating Revenue Per ASM (cents) | 13.55 | Down 1% to up 2% | ||||
ASMs (millions) | 4,663.2 | Up 4.5% to up 6.5% | ||||
Gallons of jet fuel consumed (millions) | 61.2 | Up 4% to 6% | ||||
Economic fuel cost per gallon (a)(b) | $ | 1.95 | $1.50 to $1.60 |
Full Year | ||||||
Item | 2015 | Full Year 2016 Guidance | ||||
Cost per ASM Excluding Fuel (cents)(a) | 8.31 | Up 2.5% to up 4.5% | ||||
ASMs (millions) | 17,726.3 | Up 3% to up 5% | ||||
Gallons of jet fuel consumed (millions) | 234.2 | Up 2.5% to up 4.5% | ||||
Economic fuel cost per gallon (a)(b) | $ | 2.04 | $1.50 to $1.60 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||||
Operating Revenue: | ||||||||||||||||||||||
Passenger | $ | 518,572 | $ | 499,387 | 3.8 | % | $ | 1,000,599 | $ | 968,532 | 3.3 | % | ||||||||||
Other | 76,018 | 71,908 | 5.7 | % | 145,171 | 143,043 | 1.5 | % | ||||||||||||||
Total | 594,590 | 571,295 | 4.1 | % | 1,145,770 | 1,111,575 | 3.1 | % | ||||||||||||||
Operating Expenses: | ||||||||||||||||||||||
Aircraft fuel, including taxes and delivery | 83,798 | 112,519 | (25.5 | )% | 153,698 | 223,846 | (31.3 | )% | ||||||||||||||
Wages and benefits | 135,883 | 123,977 | 9.6 | % | 269,526 | 243,991 | 10.5 | % | ||||||||||||||
Aircraft rent | 30,066 | 28,817 | 4.3 | % | 59,454 | 57,188 | 4.0 | % | ||||||||||||||
Maintenance, materials and repairs | 54,585 | 57,071 | (4.4 | )% | 115,089 | 112,316 | 2.5 | % | ||||||||||||||
Aircraft and passenger servicing | 30,723 | 29,348 | 4.7 | % | 59,274 | 57,664 | 2.8 | % | ||||||||||||||
Commissions and other selling | 31,425 | 30,484 | 3.1 | % | 64,456 | 60,912 | 5.8 | % | ||||||||||||||
Depreciation and amortization | 26,988 | 27,537 | (2.0 | )% | 54,134 | 52,716 | 2.7 | % | ||||||||||||||
Other rentals and landing fees | 24,978 | 23,248 | 7.4 | % | 49,412 | 46,079 | 7.2 | % | ||||||||||||||
Purchased services | 24,543 | 19,842 | 23.7 | % | 47,275 | 41,081 | 15.1 | % | ||||||||||||||
Other | 32,731 | 27,036 | 21.1 | % | 62,714 | 53,202 | 17.9 | % | ||||||||||||||
Total | 475,720 | 479,879 | (0.9 | )% | 935,032 | 948,995 | (1.5 | )% | ||||||||||||||
Operating Income | 118,870 | 91,416 | 30.0 | % | 210,738 | 162,580 | 29.6 | % | ||||||||||||||
Nonoperating Income (Expense): | ||||||||||||||||||||||
Interest expense and amortization of debt discounts and issuance costs | (8,910 | ) | (13,718 | ) | (19,914 | ) | (29,236 | ) | ||||||||||||||
Interest income | 1,087 | 725 | 1,931 | 1,361 | ||||||||||||||||||
Capitalized interest | 463 | 975 | 688 | 2,268 | ||||||||||||||||||
Gains on fuel derivatives | 21,087 | 2,026 | 19,022 | (3,661 | ) | |||||||||||||||||
Loss on extinguishment of debt | (6,643 | ) | (287 | ) | (9,993 | ) | (7,242 | ) | ||||||||||||||
Other, net | 2,686 | (1,876 | ) | 9,272 | (4,810 | ) | ||||||||||||||||
Total | 9,770 | (12,155 | ) | 1,006 | (41,320 | ) | ||||||||||||||||
Income Before Income Taxes | 128,640 | 79,261 | 211,744 | 121,260 | ||||||||||||||||||
Income tax expense | 49,070 | 30,427 | 80,708 | 46,543 | ||||||||||||||||||
Net Income | $ | 79,570 | $ | 48,834 | $ | 131,036 | $ | 74,717 | ||||||||||||||
Net Income Per Share | ||||||||||||||||||||||
Basic | $ | 1.48 | $ | 0.89 | $ | 2.45 | $ | 1.37 | ||||||||||||||
Diluted | $ | 1.48 | $ | 0.79 | $ | 2.43 | $ | 1.18 | ||||||||||||||
Weighted Average Number of Common Stock Shares Outstanding: | ||||||||||||||||||||||
Basic | 53,634 | 54,619 | 53,574 | 54,617 | ||||||||||||||||||
Diluted | 53,853 | 61,855 | 53,833 | 63,390 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||||
(in thousands, except as otherwise indicated) | ||||||||||||||||||||||
Scheduled Operations (a) : | ||||||||||||||||||||||
Revenue passengers flown | 2,755 | 2,659 | 3.5 | % | 5,401 | 5,180 | 4.3 | % | ||||||||||||||
Revenue passenger miles (RPM) | 3,846,966 | 3,588,246 | 7.2 | % | 7,388,033 | 6,933,627 | 6.6 | % | ||||||||||||||
Available seat miles (ASM) | 4,550,964 | 4,439,349 | 2.5 | % | 8,917,956 | 8,666,390 | 2.9 | % | ||||||||||||||
Passenger revenue per RPM (Yield) | 13.48 | ¢ | 13.92 | ¢ | (3.2 | )% | 13.54 | ¢ | 13.97 | ¢ | (3.1 | )% | ||||||||||
Passenger load factor (RPM/ASM) | 84.5 | % | 80.8 | % | 3.7 pt. | 82.8 | % | 80.0 | % | 2.8 pt. | ||||||||||||
Passenger revenue per ASM (PRASM) | 11.39 | ¢ | 11.25 | ¢ | 1.2 | % | 11.22 | ¢ | 11.18 | ¢ | 0.4 | % | ||||||||||
Total Operations (a) : | ||||||||||||||||||||||
Revenue passengers flown | 2,756 | 2,660 | 3.6 | % | 5,403 | 5,182 | 4.3 | % | ||||||||||||||
Revenue passenger miles (RPM) | 3,847,065 | 3,590,510 | 7.1 | % | 7,389,122 | 6,938,120 | 6.5 | % | ||||||||||||||
Available seat miles (ASM) | 4,551,094 | 4,441,648 | 2.5 | % | 8,919,188 | 8,671,330 | 2.9 | % | ||||||||||||||
Operating revenue per ASM (RASM) | 13.06 | ¢ | 12.86 | ¢ | 1.6 | % | 12.85 | ¢ | 12.82 | ¢ | 0.2 | % | ||||||||||
Operating cost per ASM (CASM) | 10.45 | ¢ | 10.80 | ¢ | (3.2 | )% | 10.48 | ¢ | 10.94 | ¢ | (4.2 | )% | ||||||||||
CASM excluding aircraft fuel (b) | 8.61 | ¢ | 8.27 | ¢ | 4.1 | % | 8.76 | ¢ | 8.36 | ¢ | 4.8 | % | ||||||||||
Aircraft fuel expense per ASM (c) | 1.84 | ¢ | 2.53 | ¢ | (27.3 | )% | 1.72 | ¢ | 2.58 | ¢ | (33.3 | )% | ||||||||||
Revenue block hours operated | 44,367 | 43,418 | 2.2 | % | 87,093 | 85,653 | 1.7 | % | ||||||||||||||
Gallons of jet fuel consumed | 59,697 | 57,998 | 2.9 | % | 117,553 | 114,996 | 2.2 | % | ||||||||||||||
Average cost per gallon of jet fuel (actual) (c) | $ | 1.40 | $ | 1.94 | (27.8 | )% | $ | 1.31 | $ | 1.95 | (32.8 | )% | ||||||||||
Economic fuel cost per gallon (c)(d) | $ | 1.55 | $ | 2.23 | (30.5 | )% | $ | 1.54 | $ | 2.22 | (30.6 | )% |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
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 | $ | 83,798 | $ | 112,519 | (25.5 | )% | $ | 153,698 | $ | 223,846 | (31.3 | )% | ||||||||||
Realized losses on settlement of fuel derivative contracts | 8,799 | 16,553 | (46.8 | )% | 27,824 | 31,144 | (10.7 | )% | ||||||||||||||
Economic fuel expense | $ | 92,597 | $ | 129,072 | (28.3 | )% | $ | 181,522 | $ | 254,990 | (28.8 | )% | ||||||||||
Fuel gallons consumed | 59,697 | 57,998 | 2.9 | % | 117,553 | 114,996 | 2.2 | % | ||||||||||||||
Economic fuel costs per gallon | $ | 1.55 | $ | 2.23 | (30.5 | )% | $ | 1.54 | $ | 2.22 | (30.6 | )% |
• | 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 our operational performance and compare our 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. |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||||
Total | Diluted Per Share | Total | Diluted Per Share | Total | Diluted Per Share | Total | Diluted Per Share | |||||||||||||||||||||||||
GAAP net income | $ | 79,570 | $ | 1.48 | $ | 48,834 | $ | 0.79 | $ | 131,036 | $ | 2.43 | $ | 74,717 | $ | 1.18 | ||||||||||||||||
Changes in fair value of derivative contracts | (29,886 | ) | (0.55 | ) | (18,579 | ) | (0.30 | ) | (46,846 | ) | (0.87 | ) | (27,483 | ) | (0.43 | ) | ||||||||||||||||
Loss on extinguishment of debt | 6,643 | 0.12 | 287 | — | 9,993 | 0.19 | 7,242 | 0.11 | ||||||||||||||||||||||||
Tax effect of adjustments | 8,832 | 0.16 | 6,951 | 0.12 | 14,004 | 0.26 | 7,730 | 0.12 | ||||||||||||||||||||||||
Adjusted net income | $ | 65,159 | $ | 1.21 | $ | 37,493 | $ | 0.61 | $ | 108,187 | $ | 2.01 | $ | 62,206 | $ | 0.98 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Income Before Income Taxes, as reported | $ | 128,640 | $ | 79,261 | $ | 211,744 | $ | 121,260 | ||||||||
Changes in fair value of derivative contracts | (29,866 | ) | (18,579 | ) | (46,846 | ) | (27,484 | ) | ||||||||
Loss on extinguishment of debt | 6,643 | 287 | 9,993 | 7,242 | ||||||||||||
Adjusted Income Before Income Taxes | $ | 105,417 | $ | 60,969 | $ | 174,891 | $ | 101,018 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
GAAP operating expenses | $ | 475,720 | $ | 479,879 | $ | 935,032 | $ | 948,995 | ||||||||
Less: aircraft fuel, including taxes and delivery | (83,798 | ) | (112,519 | ) | (153,698 | ) | (223,846 | ) | ||||||||
Adjusted operating expenses - excluding aircraft fuel | $ | 391,922 | $ | 367,360 | $ | 781,334 | $ | 725,149 | ||||||||
Available Seat Miles | 4,551,094 | 4,441,648 | 8,919,188 | 8,671,330 | ||||||||||||
CASM - GAAP | 10.45 | ¢ | 10.80 | ¢ | 10.48 | ¢ | 10.94 | ¢ | ||||||||
Less: aircraft fuel | (1.84 | ) | (2.53 | ) | (1.72 | ) | (2.58 | ) | ||||||||
CASM - excluding aircraft fuel | 8.61 | ¢ | 8.27 | ¢ | 8.76 | ¢ | 8.36 | ¢ |
Three months ended June 30, | Six months ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Pre-Tax Margin, as reported | 21.6 | % | 13.9 | % | 18.5 | % | 10.9 | % | ||||
Changes in fair value of derivative contracts | (5.0 | )% | (3.3 | )% | (4.1 | )% | (2.5 | )% | ||||
Loss on extinguishment of debt | 1.1 | % | 0.1 | % | 0.9 | % | 0.7 | % | ||||
Adjusted Pre-Tax Margin | 17.7 | % | 10.7 | % | 15.3 | % | 9.1 | % |
Twelve months ended | ||||
June 30, 2016 | ||||
Debt and capital lease obligations | $ | 585,977 | ||
Plus: Aircraft leases capitalized at 7x last twelve months' aircraft rent | 825,433 | |||
Adjusted debt and capital lease obligations | $ | 1,411,410 | ||
EBITDAR: | ||||
Income Before Income Taxes | $ | 386,172 | ||
Add back: | ||||
Interest and amortization of debt discounts and issuance costs | 46,245 | |||
Depreciation and amortization | 106,999 | |||
Aircraft rent | 117,918 | |||
EBITDAR | $ | 657,334 | ||
Adjustments: | ||||
Add: changes in fair value of derivative contracts | (20,378 | ) | ||
Add: loss on extinguishment of debt | 14,809 | |||
Adjusted EBITDAR | $ | 651,765 | ||
Leverage Ratio | 2.2 | x |