-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, H5qoYxDIwPz0XCb74Dd08khH6YfbLqPM8YpbJNhfsGUf3yeMH36yaWPTi5NesGEj BPO0OVjZaj96dxNePK2jqw== 0000912057-96-017860.txt : 19960816 0000912057-96-017860.hdr.sgml : 19960816 ACCESSION NUMBER: 0000912057-96-017860 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960814 SROS: AMEX SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HAWAIIAN AIRLINES INC/HI CENTRAL INDEX KEY: 0000046205 STANDARD INDUSTRIAL CLASSIFICATION: AIR TRANSPORTATION, SCHEDULED [4512] IRS NUMBER: 990212598 STATE OF INCORPORATION: HI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08836 FILM NUMBER: 96614042 BUSINESS ADDRESS: STREET 1: 3375 KOAPAKA ST STREET 2: STE G350 CITY: HONOLULU STATE: HI ZIP: 96819 BUSINESS PHONE: 8088353700 FORMER COMPANY: FORMER CONFORMED NAME: HAL INC /HI/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: HAWAIIAN AIRLINES INC DATE OF NAME CHANGE: 19850314 FORMER COMPANY: FORMER CONFORMED NAME: INTER ISLAND AIRWAYS LTD DATE OF NAME CHANGE: 19670920 10-Q 1 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ----- ----- Commission file number 1-8836 HAWAIIAN AIRLINES, INC. (Exact Name of Registrant as Specified in Its Charter) HAWAII 99-0042880 (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) 3375 Koapaka Street, Suite G-350 Honolulu, Hawaii 96819 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code: (808) 835-3700 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. (X) Yes ( ) No Indicate by check mark whether the Registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. (X) Yes ( ) No As of August 14, 1996, 26,409,421 shares of Common Stock were outstanding. PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS HAWAIIAN AIRLINES, INC. CONDENSED BALANCE SHEETS (IN THOUSANDS) (UNAUDITED)
JUNE 30, DECEMBER 31 1996 1995 - ------------------------------------------------------------------------------------------------------------ ASSETS CURRENT ASSETS: Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . $ 15,182 $ 5,389 Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . 26,054 18,178 Inventories, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,150 7,648 Assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,344 1,344 Prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,818 5,804 ---------- ---------- TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . 53,548 38,363 ---------- ---------- Property and equipment, less accumulated depreciation and amortization of $7,348 and $5,043 in 1996 and 1995, respectively . . . . . 41,511 41,391 Assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,154 8,336 Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,047 6,217 Reorganization value in excess of amounts allocable to identifiable assets, net ("Excess Reorganization Value"). . . 64,619 67,333 ---------- ---------- TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 170,879 $ 161,640 ---------- ---------- ---------- ---------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt. . . . . . . . . . . . . . . . . . . . . $ 4,895 $ 6,027 Current portion of capital lease obligations . . . . . . . . . . . . . . . 2,787 2,662 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,785 35,182 Air traffic liability. . . . . . . . . . . . . . . . . . . . . . . . . . . 23,430 30,461 Accrued liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,150 15,730 ---------- ---------- TOTAL CURRENT LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . . 69,047 90,062 ---------- ---------- Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,931 5,523 Capital lease obligations. . . . . . . . . . . . . . . . . . . . . . . . . . 8,676 10,102 Other liabilities and deferred credits . . . . . . . . . . . . . . . . . . . 29,308 26,775 SHAREHOLDERS' EQUITY: Common and Special Preferred Stock . . . . . . . . . . . . . . . . . . . . 269 94 Capital in excess of par value . . . . . . . . . . . . . . . . . . . . . . 58,873 41,193 Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,646 900 Unearned compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . - (182) Minimum pension liability. . . . . . . . . . . . . . . . . . . . . . . . . (1,170) (1,170) Accumulated deficit. . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,701) (11,657) ---------- ---------- SHAREHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . 49,917 29,178 ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY . . . . . . . . . . . . . . . $ 170,879 $ 161,640 ---------- ---------- ---------- ----------
-2- . HAWAIIAN AIRLINES, INC. CONDENSED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------------- ----------------------------- 1996 1995 1996 1995 - ---------------------------------------------------------------------------------------------------------------------- OPERATING REVENUES: Passenger . . . . . . . . . . . . . . . . . . . . . $ 81,398 $ 73,671 $ 161,209 $ 139,272 Charter . . . . . . . . . . . . . . . . . . . . . . 6,966 5,180 13,937 8,747 Cargo . . . . . . . . . . . . . . . . . . . . . . . 5,061 4,577 9,874 8,538 Other . . . . . . . . . . . . . . . . . . . . . . . 2,584 2,036 5,051 4,415 --------- ---------- ---------- ---------- TOTAL. . . . . . . . . . . . . . . . . . . . . . 96,009 85,464 190,071 160,972 --------- ---------- ---------- ---------- OPERATING EXPENSES: Flying operations . . . . . . . . . . . . . . . . . 30,264 25,572 59,579 49,861 Maintenance . . . . . . . . . . . . . . . . . . . . 19,673 19,524 39,728 37,305 Passenger service . . . . . . . . . . . . . . . . . 10,613 9,787 21,151 19,055 Aircraft and traffic servicing. . . . . . . . . . . 14,076 13,447 28,591 26,989 Promotion and sales . . . . . . . . . . . . . . . . 11,589 10,827 23,209 21,025 General and administrative. . . . . . . . . . . . . 4,767 4,033 10,530 8,064 Depreciation and amortization . . . . . . . . . . . 1,923 1,843 3,783 3,669 Early retirement provision. . . . . . . . . . . . . - - - 2,000 --------- ---------- ---------- ---------- TOTAL. . . . . . . . . . . . . . . . . . . . . . 92,905 85,033 186,571 167,968 --------- ---------- ---------- ---------- OPERATING INCOME (LOSS). . . . . . . . . . . . . 3,104 431 3,500 (6,996) --------- ---------- ---------- ---------- NONOPERATING INCOME (EXPENSE): Interest expense, net. . . . . . . . . . . . . . . (963) (927) (1,919) (1,954) Gain (loss) on disposition of equipment. . . . . . (336) (43) (328) 5 Other, net . . . . . . . . . . . . . . . . . . . . 8 88 (22) 200 --------- ---------- ---------- ---------- TOTAL . . . . . . . . . . . . . . . . . . . . . (1,291) (882) (2,269) (1,749) --------- ---------- ---------- ---------- INCOME (LOSS) BEFORE INCOME TAXES AND EXTRAORDINARY GAIN. . . . . . . . . . . . . . . 1,813 (451) 1,231 (8,745) INCOME TAXES: Currently payable. . . . . . . . . . . . . . . . . (25) - (25) - Reduction to Excess Reorganization Value . . . . . (590) - (590) - --------- ---------- ---------- ---------- TOTAL . . . . . . . . . . . . . . . . . . . . . (615) - (615) - --------- ---------- ---------- ---------- NET INCOME (LOSS) BEFORE EXTRAORDINARY GAIN . . . . . . 1,198 (451) 616 (8,745) EXTRAORDINARY GAIN, NET OF INCOME TAXES (Currently Payable of $14, Reduction to Excess Reorganization Value of $326). . . . . . . . . . . . . . . . . . . 340 - 340 - --------- ---------- ---------- ---------- NET INCOME (LOSS) . . . . . . . . . . . . . . . . . . . $ 1,538 $ (451) $ 956 $ (8,745) --------- ---------- ---------- ---------- --------- ---------- ---------- ---------- NET INCOME (LOSS) PER COMMON STOCK SHARE: Before extraordinary gain . . . . . . . . . . . . . $ 0.04 $ (0.05) $ 0.03 $ (0.93) Extraordinary gain, net of income taxes . . . . . . 0.01 - 0.01 - --------- ---------- ---------- ---------- NET INCOME (LOSS) PER COMMON STOCK SHARE . . . . . . . . $ 0.05 $ (0.05) $ 0.04 $ (0.93) --------- ---------- ---------- ---------- --------- ---------- ---------- ---------- WEIGHTED AVERAGE NUMBER OF COMMON STOCK SHARES AND COMMON STOCK SHARE EQUIVALENTS . . . . . . . . . . Primary . . . . . . . . . . . . . . . . . . . . . . 29,127 * 9,400 * 25,976 * 9,400 * --------- ---------- ---------- ---------- --------- ---------- ---------- ---------- Fully Diluted . . . . . . . . . . . . . . . . . . . 29,199 * N/A * 26,257 * N/A * --------- ---------- ---------- ---------- --------- ---------- ---------- ----------
* Includes shares reserved for issuance under the consolidated Plan of Reorganization dated September 21, 1993 as amended -3- HAWAIIAN AIRLINES, INC. CONDENSED STATEMENTS OF CASH FLOWS (IN THOUSANDS)(UNAUDITED)
SIX MONTHS ENDED JUNE 30, -------------------------- 1996 1995 - ---------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss). . . . . . . . . . . . . . . . . . . . . . . . $ 956 $ (8,745) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization . . . . . . . . . . . . . . . . 3,783 3,796 Net periodic postretirement benefit cost. . . . . . . . . . . 1,134 1,752 Stock option compensation . . . . . . . . . . . . . . . . . . 964 - Early retirement provision. . . . . . . . . . . . . . . . . . - 2,000 Loss (gain) from disposition of equipment . . . . . . . . . . 328 (5) Income tax benefit recognized as a reduction to Excess Reorganization Value . . . . . . . . . . . . 916 - Extraordinary gain, net of income taxes currently payable . . (666) - Increase in accounts receivable . . . . . . . . . . . . . . . (6,186) (4,440) Decrease (increase) in inventories. . . . . . . . . . . . . . 498 (859) Decrease in prepaid expenses. . . . . . . . . . . . . . . . . 1,167 792 Increase (decrease) in accounts payable . . . . . . . . . . . (57) 9,991 Increase (decrease) air traffic liability . . . . . . . . . . (7,031) 3,296 Decrease in accrued liabilities . . . . . . . . . . . . . . . (2,708) (2,670) Other, net. . . . . . . . . . . . . . . . . . . . . . . . . . 3,132 4,048 --------- --------- NET CASH PROVIDED BY (USED IN) OPERATIING ACTIVITIES . . . (3,770) 8,956 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment. . . . . . . . . . . . . . . (2,580) (5,074) Net proceeds from disposition of equipment. . . . . . . . . . . 1,294 1,832 --------- --------- NET CASH USED IN INVESTING ACTIVITIES . . . . . . . . . . . (1,286) (3,242) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock. . . . . . . . . . . . . . 17,782 - Repurchase of common stock . . . . . . . . . . . . . . . . . . . (909) - Issuance of long-term debt . . . . . . . . . . . . . . . . . . . 7,196 1,247 Repayment of long-term debt . . . . . . . . . . . . . . . . . . . (7,919) (5,710) Repayment of capital lease obligations . . . . . . . . . . . . . (1,301) (1,467) --------- --------- NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES. . . . . . 14,849 (5,930) --------- --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . 9,793 (216) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD. . . . . . . . 5,389 3,501 --------- --------- CASH AND CASH EQUIVALENTS - END OF PERIOD . . . . . . . . . . $ 15,182 $ 3,285 --------- --------- --------- ---------
-4- HAWAIIAN AIRLINES, INC. STATISTICAL DATA (IN THOUSANDS, EXCEPT AS OTHERWISE INDICATED) (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------------- ---------------------------- 1996 1995 1996 1995 - ------------------------------------------------------------------------- ----------------------------- SCHEDULED OPERATIONS: Revenue passengers . . . . . . . . . . . 1,249 1,197 2,518 2,349 Revenue passenger miles . . . . . . . . 848,362 791,658 1,658,159 1,472,000 Available seat miles . . . . . . . . . . 1,133,041 1,034,221 2,245,566 1,973,764 Passenger load factor. . . . . . . . . . 74.9% 76.5% 73.8% 74.6% Revenue ton miles . . . . . . . . . . . 100,162 91,460 194,762 168,464 Revenue plane miles. . . . . . . . . . . 4,819 4,314 9,500 8,270 Passenger revenue per passenger mile . . 9.6 c 9.3 c 9.7 c 9.5 c OVERSEAS CHARTER OPERATIONS: Revenue passengers . . . . . . . . . . . 46 37 93 62 Revenue passenger miles . . . . . . . . 125,660 100,442 255,472 169,710 Available seat miles . . . . . . . . . . 131,767 102,451 262,761 172,981
-5- ITEM 1. (CONTINUED) Hawaiian Airlines, Inc. Notes to Condensed Financial Statements (Unaudited) 1. BASIS OF PRESENTATION The accompanying unaudited condensed financial statements of Hawaiian Airlines, Inc. ("Hawaiian Airlines" or the "Company") have been prepared in accordance with generally accepted accounting principles for interim financial information and the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, in the opinion of management, the unaudited condensed financial statements included in this report contain all adjustments necessary for a fair presentation of the results of operations and cash flows for the interim periods covered and the financial condition of Hawaiian Airlines as of June 30, 1996 and December 31, 1995. All such adjustments are of a normal recurring nature, unless otherwise disclosed in this Form 10-Q. The operating results for the interim period are not necessarily indicative of the results to be expected for the full fiscal year. The accompanying financial statements should be read in conjunction with the financial statements and the notes thereto contained in Hawaiian Airlines' Annual Report on Form 10-K for the year ended December 31, 1995, as amended, and the condensed financial statements and notes thereto in the Company's quarterly report on SEC Form 10-Q for the quarter ended March 31, 1996, which are incorporated herein by reference. 2. DEBT AND CAPITAL TRANSACTIONS On April 29, 1996, the Company's credit facility provided by CIT Group/Credit Finance, Inc. (the "Credit Facility") was amended to increase the borrowing capacity thereunder from $8.15 million to $15.0 million. The $15.0 million Credit Facility consists of two secured term loans and a secured revolving line of credit including up to $6.0 million of letters of credit. The term loans are in the amounts of $5.4 million and $1.3 million and will amortize in equal installments over periods of 48 and 60 months, respectively. The outstanding principal amounts of the term loans will become due and payable upon termination of the Credit Facility. Available credit is subject to change determined by recalculation of the borrowing base, repayments due under the term loans and repayments arising from the disposition of, and other changes in, the related collateral securing the Credit Facility. As of June 30, 1996, the total remaining availability under the Credit Facility was $8.3 million, including $5.9 million in letters of credit. The Credit Facility has an initial term of three years from April 29, 1996, and renews automatically for successive terms of two years each, unless terminated by either party on at least 60 days notice prior to the end of the then-current term. The Company may terminate the Credit Facility at any time, on 30 days notice and payment of certain early termination fees during the initial term and without payment of termination fees during any renewal term. The Credit Facility is secured by a first lien on substantially all of the Company's property, excluding the Company's owned and leased aircraft, the Company's aircraft engines while installed on aircraft and certain security deposits. As required by the provider of the Credit Facility in connection with the amendment thereof, on April 29, 1996, the Company exercised an option to repurchase all of the shares of Common Stock owned by GPA Group plc and its affiliate AeroUSA, Inc. (collectively the "GPA Companies") and repaid certain secured -6- and unsecured promissory notes held by the GPA Companies. The stock repurchase price was $1.10 per share and the promissory notes were repaid at approximately 85.0% of the then carrying value of the notes, including any deferred costs and other expenses owed. Based on 827,221 shares of Common Stock owned by the GPA Companies and the carrying value of the notes as of such date, the Company paid approximately $4.7 million to the GPA Companies to repurchase the shares and repay the notes. These transactions resulted in an extraordinary gain, net of estimated income taxes, of approximately $340,000. The payment to the GPA Companies was funded by borrowings under the Credit Facility on April 29, 1996. 3. INCOME TAXES Income tax expense is based on estimated annual effective tax rates which differ from the federal statutory rate of 35.0%, primarily due to state income taxes and certain nondeductible expenses. The estimated income tax benefit from the expected utilization of net operating losses incurred prior to the Company's emergence from Chapter 11 has been applied as a reduction to reorganization value in excess of amounts allocable to identifiable assets. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES CURRENT STATUS As of June 30, 1996, the Company's net working capital position had improved significantly from December 31, 1995. As of June 30, 1996, the Company had a net working capital deficit of $15.5 million, which represents a $36.2 million improvement from the net working capital deficit of $51.7 million at December 31, 1995. As described above, at June 30, 1996, the total remaining availability under the Credit Facility was $8.3 million, including $5.9 million in letters of credit. The Company's cash and cash equivalents as of June 30, 1996 was $9.8 million greater than that at December 31, 1995, primarily due to a $20.0 million cash investment by Airline Investors Partnership, L.P. ("AIP") through the purchase of 18,181,818 shares of Common Stock and four shares of Series B Special Preferred Stock (the "AIP Investment") consummated on January 31, 1996. Accounts payable at June 30, 1996 was $11.4 million lower than at December 31, 1995, principally due to certain agreements and arrangements with American Airlines, Inc. ("American"), which provided for, among other things, the satisfaction of $10.0 million of previously deferred lease rents and maintenance payments and interest thereon and the reimbursement of $250,000 of American's fees and expenses in connection with the transaction through the issuance by the Company to American of a $10.25 million promissory note secured by certain assets of the Company. These positive changes to working capital were augmented by a $7.9 million increase in accounts receivable and a $7.0 million decrease in air traffic liability from December 31, 1995 to June 30, 1996. CASH FLOWS Cash and cash equivalents totaled $15.2 million at June 30, 1996, an increase of $9.8 million from $5.4 million at December 31, 1995. Operating and investing activities for the six month period ended June 30, 1996 used $7.4 million in cash and cash equivalents. Financing activities for the six month period ended June 30, 1996 provided $17.2 million in cash and cash equivalents. This was a direct result of the $20.0 -7- million AIP Investment described above and the Company borrowing an additional $7.2 million through the Credit Facility during the six month period ended June 30, 1996. As noted above, $4.7 million of the funds from the Credit Facility borrowings were used to repurchase shares of Common Stock from, and repay approximately $4.5 million of long-term debt to, the GPA Companies at a 15.0% discount. Further, the Company made principal payments of $5.4 million on its other outstanding long-term debt and capital lease obligations during the period. The Company plans to make approximately $12.0 million of necessary capital expenditures in the ordinary course of business during 1996. These expenditures include the capitalized portions of two scheduled DC-9-50 maintenance checks (D- checks) and certain JT8D engine overhauls. Also included are expenditures for rotable equipment and ground equipment, software and related hardware, facilities and certain other projects. The Company made approximately $2.6 million of these planned capital expenditures during the six months ended June 30, 1996. RIGHTS AND INVESTOR OFFERINGS The Company is currently conducting a rights offering and investor offering, which potentially could result in the Company issuing up to 12,100,000 additional shares of Common Stock. The offerings are intended to permit the Company's shareholders, other than AIP, to reduce the dilutive effect of the AIP Investment on their equity investment in the Company and to raise additional equity capital. The subscription price was established on August 1, 1996 at $3.25 per share. The Company has entered into stock purchase agreements with certain investors pursuant to which the investors have severally agreed, subject to certain conditions, to purchase from the Company 2,250,000 shares of Common Stock at the $3.25 subscription price. In addition, the investors have agreed to purchase from the Company at the $3.25 subscription price an amount of additional shares necessary to generate a minimum of $25.0 million in gross proceeds from the offerings. The investors have also been granted the right to acquire additional shares subject to their availability. The Company's capital resources have been increased substantially due to the AIP Investment, the arrangements with American and the amendment of the Credit Facility. Proceeds from the offerings referred to above will further improve the Company's liquidity. It is anticipated that the combination of the Company's improved liquidity and reduced operating costs will enable the Company to make necessary capital expenditures, take advantage of prompt payment discounts, avoid the need to provide early payment incentives to wholesalers and eliminate the Company's historical dependence on ticket discounting, thereby further improving yields, profitability and liquidity. Nevertheless, the Company will continue to seek additional sources of liquidity. If the Company is unsuccessful in obtaining additional sources of liquidity, an adverse change in events and circumstances could result in the Company being unable to meet its financial obligations after it exhausts its current and foreseeable capital resources. No assurance can be given that all conditions for successful completion of the offerings will occur or that proceeds from the offerings will exceed $25.0 million. Further, no assurance can be given that the Company will be able to obtain other sources of liquidity. -8- RESULTS OF OPERATIONS During the quarter ended June 30, 1996, the Company generated operating and net income of $3.1 million and $1.5 million, respectively, including a $340,000 extraordinary gain, net of estimated income taxes. This represents a $2.7 million improvement from second quarter 1995 operating income of $431,000 and a $2.0 million improvement from the second quarter 1995 net loss of $451,000. OPERATING REVENUES The following table compares second quarter 1996 operating revenues to those in second quarter 1995, in thousands, by service type: Three Months Ended June 30, ---------------------------- Increase 1996 1995 (Decrease) ------------------------------------------ Interisland: Passenger . . . . . . . . . . $ 33,417 31,144 2,273 Charter . . . . . . . . . . . - 12 (12) Cargo . . . . . . . . . . . . 1,325 1,734 (409) Other . . . . . . . . . . . . 1,527 1,295 232 ----------- ---------- ---------- 36,269 34,185 2,084 ----------- ---------- ---------- Transpacific ("Transpac"): Passenger. . . . . . . . . 43,427 37,767 5,660 Cargo. . . . . . . . . . . 3,132 2,375 757 Other. . . . . . . . . . . 972 661 311 ----------- ---------- ---------- 47,531 40,803 6,728 ----------- ---------- ---------- South Pacific ("Southpac"): Passenger . . . . . . . . . 4,554 4,761 (207) Cargo . . . . . . . . . . . 604 463 141 Other . . . . . . . . . . . 85 83 2 ----------- ---------- ---------- 5,243 5,307 (64) ----------- ---------- ---------- Overseas Charter: Passenger . . . . . . . . . 6,966 5,169 1,797 ----------- ---------- ---------- Total. . . . . . $ 96,009 $ 85,464 $ 10,545 ----------- ---------- ---------- ----------- ---------- ---------- -9- The following table compares applicable second quarter 1996 operating and passenger revenue statistics to those in second quarter 1995, in thousands except as otherwise indicated:
THREE MONTHS ENDED JUNE 30, --------------------------------- INCREASE 1996 1995 (DECREASE) % ------------------------------------------------------------ Interisland: Revenue passengers. . . . . . . . . . . 955 933 22 2.4 Revenue passenger miles . . . . . . . . 127,136 123,272 3,864 3.1 Available seat miles. . . . . . . . . . 240,757 232,380 8,377 3.6 Passenger load factor . . . . . . . . . 52.8% 53.0% (0.2) (0.5) Yield . . . . . . . . . . . . . . . . . 26.3 c 25.3 c 1.0 c 4.0 Transpac: Revenue passengers . . . . . . . . . . 279 248 31 12.5 Revenue passenger miles. . . . . . . . 680,692 624,251 56,441 9.0 Available seat miles . . . . . . . . . 823,510 737,325 86,185 11.7 Passenger load factor. . . . . . . . . 82.7% 84.7% (2.0) (2.4) Yield. . . . . . . . . . . . . . . . . 6.4 c 6.0 c 0.4 c 6.7 Southpac: Revenue passengers . . . . . . . . . . 15 16 (1) (6.3) Revenue passenger miles. . . . . . . . 40,534 44,135 (3,601) (8.2) Available seat miles . . . . . . . . . 68,774 64,516 4,258 6.6 Passenger load factor. . . . . . . . . 58.9% 68.4% (9.5) (13.8) Yield . . . . . . . . . . . . . . . . 11.2 c 10.8 c 0.4 c 4.1 Overseas Charter: Revenue passengers . . . . . . . . . . 46 37 9 24.3 Revenue passenger miles. . . . . . . . 125,660 100,442 25,218 25.1 Available seat miles . . . . . . . . . 131,767 102,451 29,316 28.6
Operating revenues totaled $96.0 million during second quarter 1996, an increase of $10.5 million or 12.3% over 1995 second quarter operating revenues of $85.5 million. Significant period to period variances were as follows: - - Revenues from Interisland passenger service totaled $33.4 million during second quarter 1996, an increase of $2.3 million or 7.3% from second quarter 1995. Increases of 2.4% and 3.1% in Interisland revenue passengers carried and revenue passenger miles, respectively, were complimented by an increase in Interisland yield of 1.0 CENTS or 4.0%. Increases in revenue passengers carried and revenue passenger miles were primarily caused by the continued recovery of the Hawaii tourism market and increased frequencies by the Company as evidenced by a 3.6% increase in available seat miles period over period. Interisland yield in second quarter 1996 increased compared to second quarter 1995 due to (1) the dilutional effects of promotional fare ticket programs being less prevalent in 1996 as most promotion tickets were sold in 1994 and used throughout 1995 and (2) the Company maintaining and/or increasing certain Interisland fares; - - Revenues from Transpac passenger operations amounted to $43.4 million during second quarter 1996 compared to $37.8 million in second quarter 1995, an increase of $5.7 million or 15.0%. The -10- Company experienced increases of 12.5% and 9.0% in revenue passengers carried and revenue passenger miles, respectively. Similar to the Interisland market, increased revenue passengers carried and revenue passenger miles were a direct result of increased frequencies in the Transpac market as denoted by the increase in Transpac available seat miles of 11.7%. Transpac yield also increased by 0.4 CENTS or 6.7% in second quarter 1996 as compared to second quarter 1995. Again, the increase in yield was primarily caused by the effects of promotional fare ticket programs being less prevalent in 1996 and general increases in certain Transpac fare bases; and - - Overseas charter revenues totaled $7.0 million in second quarter 1996, representing an increase of $1.8 million or 34.8% from second quarter 1995. The increase was due to the Company operating six charters per week in second quarter 1996 versus, on average, four charters per week in second quarter 1995 between Honolulu and Las Vegas. On May 22, 1996, the Company entered into a cooperative marketing agreement with Northwest Airlines, Inc. ("Northwest"), effective July 1, 1996, which provides for extensive marketing cooperation, including a code sharing arrangement, coordinated customer service and frequent flyer program cooperation. Under the code sharing agreement, a Northwest flight code will appear in travel agent computers on many of Hawaiian Airlines' flights between Honolulu and several of the other Hawaiian islands. Northwest will coordinate its flight schedules to Honolulu to provide convenient connections to the Company's Interisland flights. Further, in June 1996, the Company entered into a code sharing agreement with Mahalo Air, Inc. ("Mahalo"), pursuant to which the Company began placing its flight code on Mahalo's five daily flights between Honolulu and Molokai and its five daily flights between Honolulu and West Maui's Kapalua Airport starting July 1, 1996. Pursuant to the agreement, the Company will also provide certain airport services to Mahalo. While the Company believes that these agreements will increase passenger revenues and enhance profitability, there can be no assurance that these programs will be successful. Prior to 1996, the airline industry was subject to a 10.0% excise tax on each ticket sold (other than Transpac flights), a 6.25% cargo excise tax and a $6.00 international departure tax (including Transpac flights). These taxes lapsed on January 1, 1996. On August 2, 1996, Congress passed legislation approving reinstatement of these taxes, which is expected to be signed into law by President Clinton. The taxes will be effective from seven days after the bill is signed through December 31, 1996. If the excise taxes are reinstated, the Company would either have to absorb the excise taxes, which would adversely affect operating results, or raise ticket prices and cargo transportation fees in order to offset the excise taxes. If the Company were to raise ticket prices and cargo transportation fees, there is no assurance that the Company would be able to maintain such increases or that operating results would not be adversely affected by the increases. -11- OPERATING EXPENSES The following table compares operating expenses for second quarter 1996 with second quarter 1995 by major category, in thousands of dollars:
Three Months Ended June 30, --------------------------- Increase 1996 1995 (Decrease) --------------------------------------------- Wages and benefits . . . . . . . . . . . . . . . $ 26,968 $ 27,005 $ (37) Aircraft fuel, including taxes and oil . . . . . 17,893 13,434 4,459 Maintenance materials and repairs. . . . . . . . 15,453 14,736 717 Purchased services . . . . . . . . . . . . . . . 5,446 5,033 413 Aircraft rentals . . . . . . . . . . . . . . . . 4,083 4,004 79 Sales commissions. . . . . . . . . . . . . . . . 3,445 3,103 342 Passenger food . . . . . . . . . . . . . . . . . 2,490 2,527 (37) Advertising and promotion. . . . . . . . . . . . 2,539 2,016 523 Rentals other than aircraft and engines. . . . . 2,346 2,285 61 Landing fees . . . . . . . . . . . . . . . . . . 2,221 1,904 317 Depreciation and amortization. . . . . . . . . . 2,089 1,944 145 Reservation fees and services. . . . . . . . . . 1,993 1,887 106 Personnel expenses . . . . . . . . . . . . . . . 1,053 1,020 33 Insurance-hull and liability . . . . . . . . . . 995 970 25 Interrupted trips. . . . . . . . . . . . . . . . 699 372 327 Other. . . . . . . . . . . . . . . . . . . . . . 3,192 2,793 399 ----------- ------------ ------------ Total . . . . . . . . . . . . . . . . . $ 92,905 $ 85,033 $ 7,872 ----------- ------------ ------------ ----------- ------------ ------------
Operating expenses totaled $92.9 million in second quarter 1996, an increase of $7.9 million or 9.3% over second quarter 1995. Significant period to period variances were as follows: - - The reduction in wages and benefits in second quarter 1996 versus second quarter 1995 is primarily a result of a $963,000 reduction in estimated workers' compensation expense due to favorable decreases in the Company's workers' compensation claims and loss experience. This decrease was partially offset by $862,000 of additional labor costs in second quarter 1996 over second quarter 1995 principally due to severance accruals and increased crew expense from additional flight hours; - - Aircraft fuel, including taxes and oil, increased by $4.5 million or 33.2% quarter over quarter. The increase was principally due to (1) approximately $1.0 million more in fuel taxes incurred in second quarter 1996 than second quarter 1995 due to the Company becoming subject to an additional 4.3 CENTS per gallon tax effective October 1, 1995; (2) $1.3 million in additional fuel cost as the Company consumed approximately 1.8 million or 7.8% more gallons of aircraft fuel in second quarter 1996 than in second quarter 1995 due to increased flying hours; and (3) $2.2 million in added fuel expense as the average cost per gallon, excluding the 4.3 CENTS per gallon tax, increased by 9.6 CENTS or 16.3%; - - Maintenance materials and repairs increased $717,000 or 4.9% over 1995. In second quarter 1996, the Company incurred approximately $1.7 million more in DC-10-10 maintenance expense due to (1) $1.4 million additional maintenance expense as a result of the Company utilizing eight DC-10-10 aircraft in second quarter 1996 versus seven DC-10-10 aircraft in second quarter 1995 and (2) $346,000 of -12- additional maintenance costs due to higher maintenance rates in second quarter 1996. The increase was offset in part by decreased DC-9-50 maintenance expense of $931,000 as the Company's DC-9-50 fleet required fewer service checks and airframe and engine maintenance in second quarter 1996 compared to second quarter 1995. EXTRAORDINARY GAIN As described above, during second quarter 1996, the Company paid approximately $4.7 million to the GPA Companies to repurchase 827,221 shares of Common Stock and to repay approximately $4.5 million of long-term debt at a 15.0% discount, including any deferred costs and other expenses owed. These transactions resulted in an extraordinary gain, net of estimated income taxes, of approximately $340,000. NEW ACCOUNTING PRONOUNCEMENTS LONG-LIVED ASSETS In March 1995, the Financial Accounting Standards Board (the "FASB") issued Statement of Financial Accounting Standards (the "SFAS") No. 121, "Accounting for the Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of." SFAS No. 121 requires that long-lived assets and certain identifiable intangible assets held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the future cash flows expected to result from use of the asset (undiscounted and without interest charges) are less than the carrying amount of the asset, an impairment loss is recognized. Measurement of that loss is based on the fair value of that asset. Generally, SFAS No. 121 also requires that long-lived assets and certain identifiable intangible assets to be disposed of be reported at the lower of the asset carrying amount or fair value, less cost to sell. The Company adopted the provisions of SFAS No. 121 on January 1, 1996. The adoption of SFAS No. 121 did not have a material effect on the Company's financial condition or results of operations. STOCK-BASED COMPENSATION In October 1995, the FASB issued SFAS No. 123, "Accounting for Stock-Based Compensation." SFAS No. 123 establishes a new, fair value-based method of accounting for stock-based compensation, but does not require an entity to adopt the new method for purposes of preparing its basic financial statements. For entities not adopting the new method, SFAS No. 123 requires footnote disclosure of pro forma net income and earnings per share information as if the fair value- based method had been adopted. The disclosure requirements of SFAS No. 123 are effective for financial statements for fiscal years beginning after December 15, 1995. The Company will comply with the disclosure requirements of SFAS No. 123 in its 1996 financial statements. -13- PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS No material developments in matters previously reported or reportable events arising in the three months ended June 30, 1996 were noted. ITEM 2. CHANGES IN SECURITIES At the June 6, 1996 Annual Meeting of Shareholders of Hawaiian Airlines, Inc., the shareholders approved (i) the conversion of the outstanding shares of Class B Common Stock into a like number of shares of Class A Common Stock and (ii) the Amendment to the Company's Amended Articles of Incorporation to eliminate the Class B Common Stock and to designate the Company's Class A Common Stock as "Common Stock". The modification to the securities is in name only. All other rights of the holders of Class A Common Stock remain the same except in name. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None. -14- ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS At the June 6, 1996 Annual Meeting of Shareholders of Hawaiian Airlines, Inc., the following matters were voted upon: DESCRIPTION VOTES ----------- ----- 1. Election of Board of Directors John W. Adams 24,471,386 For 164,462 Withheld Todd G. Cole 24,467,189 For 168,659 Withheld Richard F. Conway 24,469,616 For 166,232 Withheld Robert G. Coo 24,470,132 For 165,716 Withheld Carol A. Fukunaga 24,475,763 For 160,085 Withheld William Boyce Lum 24,481,340 For 154,508 Withheld Richard K. Matros 24,476,481 For 159,367 Withheld Reno F. Morella 24,475,386 For 160,462 Withheld Bruce R. Nobles 24,432,581 For 202,267 Withheld Samson Poomaihealani 24,449,962 For 185,886 Withheld Edward Z. Safady 24,475,361 For 160,487 Withheld 2. Approval of Amendment to the 23,529,042 For Company's Amended Articles of 55,931 Against Incorporation to reflect the 842,532 Abstain Company's current address 208,343 Broker Non-Votes -15- 3. Ratification of the conversion 20,504,088 For of Class B Common Stock to Class 113,722 Against A Common Stock and approval of 868,602 Abstain Amendment to the Company's Amended 3,149,436 Broker Articles of the Incorporation to Non-Votes eliminate the Class B Common Stock and to designate the Company's Class A Common Stock as "Common Stock" 4. Approval of Amendment to the 23,605,576 For Company's Amended Articles of 96,872 Against Incorporation to eliminate provisions 933,400 Abstain required by the Third Amended Plan None Broker of Reorganization or Section 1123 Non-Votes of the U.S. Bankruptcy Code 5. Approval of Amendment to the 20,349,422 For Company's Amended Articles of 189,229 Against Incorporation to eliminate 947,761 Abstain preemptive rights 3,149,436 Broker Non-Votes 6. Approval of Amendment to the 23,404,045 For Company's Amended Articles of 339,889 Against Incorporation to designate officer 891,624 Abstain titles in the Bylaws and delete 290 Broker officer qualifications Non-Votes 7. Approval of the 1996 Stock 20,356,350 For Incentive Plan 233,171 Against 896,891 Abstain 3,149,436 Broker Non-Votes ITEM 5. OTHER INFORMATION None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits Exhibit 3 Certificate of Amendments of the Restated Articles of Incorporation dated June 12, 1996, as filed July 10, 1996 -16- Exhibit 4 1996 Incentive Stock Plan, as amended* Exhibit 11 Computation of Primary and Fully Diluted Earnings Per Common Share Exhibit 27 Financial Data Schedule (b) Reports of Form 8-K None * Previously filed with the SEC as an exhibit to Amendment No. 1 to the Company's Registration Statement on Form S-2 as filed July 12, 1996 (File No. 333-04817) and incorporated herein by reference. -17- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. HAWAIIAN AIRLINES, INC. August 14, 1996 By /S/ JOHN L. GARIBALDI ----------------------- John L. Garibaldi Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) EX-3 2 EXHIBIT 3 Exhibit 3 CERTIFICATE OF AMENDMENTS OF THE RESTATED ARTICLES OF INCORPORATION OF HAWAIIAN AIRLINES, INC. HAWAIIAN AIRLINES, INC., a corporation organized under the laws of the Territory of Hawaii and existing under the laws of the State of Hawaii, DOES HEREBY CERTIFY: FIRST: That as of March 15, 1996, the Board of Directors of the Corporation adopted resolutions proposing and declaring advisable that the Restated Articles of Incorporation of this Corporation (the "Restated Articles") be amended as follows: (A) that Article II be amended to read as follows: "The location of the principal office of the Corporation shall be in the City of Honolulu, Island of Oahu, State of Hawaii, and the mailing address of the principal office of the Corporation shall be 3375 Koapaka Street, Suite G-350, Honolulu, Hawaii 96819, or such other mailing address as shall be specified by an amendment to the Bylaws of the Corporation. The Corporation may have such other offices within and without the State of Hawaii as its business may from time to time require." (B) that Article IV, Section C be amended to read as follows: "C.The total number of shares of Preferred Stock which this Corporation is authorized to issue is two million (2,000,000) shares having a par value of $.01 each and which may be issued from time to time in one or more series. Prior to or simultaneously with the creation and/or issuance of any such series, the Board of Directors is hereby authorized to fix the voting powers, designations, preferences and participating, optional, relative or other special rights, and qualifications, limitations or restrictions thereof to the full extent permitted by the laws of the State of Hawaii, unless such voting powers, designations, preferences, rights and qualifications, limitations or restrictions thereof are otherwise established by these Amended Articles of Incorporation; provided that, in no event shall any shares, except shares of the Series A Junior Participating Cumulative Preferred Stock, par value $.01 per share, be entitled to more than one vote per share on any matters for which shareholder approval is required. Unless otherwise provided in the resolution creating a series, all shares of that series redeemed, repurchased or otherwise reacquired, as well as shares of a series authorized but not yet issued, shall thereupon, without further action by the Board of Directors, be or become authorized but unissued shares subject to all of the authority of the Board of Directors in this Article IV provided." (C) that Article IV, Section F be deleted in its entirety. (D) that Article IV, Section D be amended to read as follows: "D. No holder of the shares of any class of capital stock or other securities of the Corporation shall have any preemptive or preferential right of subscription for or to purchase any shares of any class of stock or other securities of the Corporation, whether now or hereafter authorized, other than such right or rights, if any, and upon such terms and at such prices as the Board of Directors, in its discretion, from time to time may determine. The Board of Directors may issue shares of capital stock or other securities without offering the same in whole or part to the holders of the capital stock or any other securities of the Corporation." (E) that the Designation of Preferred Stock be amended to add a new Section 12 to read as follows: "SECTION 12. PREEMPTIVE RIGHTS. No holder of shares of Series A Preferred Stock shall have any preemptive or preferential rights of subscription for or to purchase any shares of any class of stock or other securities of the Corporation, whether now or hereafter authorized, other than such right or rights, if any, and upon such terms and at such prices as the Board of Directors, in its discretion, from time to time may determine. The Board of Directors may issue shares of any class of stock or other securities without offering the same in whole or in part to the stockholders of the Corporation." (F) that Article VI be amended to read as follows: "The officers of the Corporation shall consist of such officers and assistant officers and agents as may be prescribed by the Bylaws. The officers shall be elected or appointed, hold office and may be removed, and shall have such qualifications, as may be prescribed by the Bylaws. Any two or more offices may be held by the same person, provided, however, that not less than two (2) persons shall be officers. All officers and agents of the Corporation, as between themselves and the Corporation, shall have such authority and perform such duties in the management of the Corporation as may be prescribed by the Bylaws, or as may be determined by resolution of the Board of Directors not inconsistent with the Bylaws." SECOND: That as of May 1, 1996, the Board of Directors of the Corporation adopted resolutions proposing and declaring advisable that the Restated Articles be amended as follows: (A) that Article IV, Sections A and B be amended to read as follows: "A. The Corporation is authorized to issue two classes of shares of capital stock, which shall be designated Common Stock and Preferred Stock, respectively. The total number of shares of capital stock which the Corporation is authorized to issue is sixty-two million (62,000,000) shares. B. (i) The total number of shares of Common Stock which the Corporation shall have authority to issue is sixty million (60,000,000) shares, and all such shares shall have a par value of $.01 per share. (ii) The Common Stock shall have all the voting rights provided under the Hawaii Business Corporation Act for voting common stock except as otherwise provided in these Restated Articles of Incorporation. (iii) The ownership or control of more than twenty- five percent (25%) of the issued and outstanding voting capital stock of the Corporation by persons who are not "citizens of the United States" as defined in Section 102(a)(15) of the Transportation Act (49 U.S.C. Section 40101, ET SEQ., the "Act") is prohibited; provided, however, that such percentage shall be deemed to be automatically increased or decreased from time to time to that percentage of ownership which is then permissible by persons who are not "citizens of the United States" under the Act or under any successor or other law of the United States of America which provides for the regulation of, or is otherwise applicable to, the Corporation or its subsidiaries in their business activities. As used in the preceding sentence, capital stock of the Corporation means the Common Stock 2 and any shares of Preferred Stock of the Corporation entitled to vote on matters generally referred to the shareholders for a vote. (iv) All shares of Common Stock shall rank equally in the event of liquidation of the Corporation and shall be entitled to any assets of the Corporation available for distribution to shareholders after payment in full of any preferential amount to which holders of Preferred Stock may be entitled. (v) Any certificates that represent shares of Class A Common Stock and any documents that refer to shares of Class A Common Stock shall for all purposes be deemed to represent and refer to shares of Common Stock of the Company." THIRD: That the foregoing amendments have been duly adopted in accordance with the provisions of Section 415-59 of the Hawaii Business Corporation Act by the affirmative vote of the holders of two-thirds of the shares of the Corporation entitled to vote thereon at the annual meeting of shareholders held on June 6, 1996, voting together as a single class. The effective time of the amendments herein certified shall be June 6, 1996. HAWAIIAN AIRLINES, INC. By: /s/ Rae A. Capps Print Name: Rae A. Capps Title: Vice President, General Counsel and Corporate Secretary ATTEST: By: /s/ Rae A. Capps Print Name: Rae A. Capps Title: Vice President, General Counsel and Corporate Secretary 3 EX-11 3 EXHIBIT 11 Exhibit 11 HAWAIIAN AIRLINES, INC. COMPUTATION OF PRIMARY AND FULLY DILUTED NET INCOME PER COMMON SHARE FOR THE THREE MONTHS ENDED JUNE 30, 1996 (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
THREE MONTHS ENDED JUNE 30, 1996 ---------------------------- Fully Primary Diluted ---------- ------------ Weighted average common shares outstanding. . . . . 27,018 * 27,018 * Common shares issuable upon exercise of outstanding warrants and stock options (treasury stock method). . . . . . . . . . . . . 2,109 2,181 ------- ------- Weighted average common shares and common share equivalents. . . . . . . . . . . . 29,127 29,199 ------- ------- ------- ------- Net income before extraordinary gain. . . . . . . . $ 1,198 $ 1,198 Extraordinary gain, net of income taxes . . . . . . 340 340 ------- ------- Net income for per share computations . . . . . . . $ 1,538 $ 1,538 ------- ------- ------- ------- Net income before extraordinary gain per common share . . . . . . . . . . . . . . . . $ 0.04 $ 0.04 Extraordinary gain, net of income taxes per common share . . . . . . . . . . . . . . . . 0.01 0.01 ------- -------- Net income per common share . . . . . . . . . . . . $ 0.05 $ 0.05 ------- -------- ------- --------
* Includes shares reserved for issuance under the consolidated Plan of Reorganization dated September 21, 1993, as amended Exhibit 11 (continued) HAWAIIAN AIRLINES, INC. COMPUTATION OF PRIMARY AND FULLY DILUTED NET INCOME PER COMMMON SHARE FOR THE SIX MONTHS ENDED JUNE 30, 1996 (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Caption> SIX MONTHS ENDED JUNE 30, 1996 ------------------------- Fully Primary Diluted --------- --------- Weighted average common shares outstanding . . . 24,203 * 24,203 * Common shares issuable upon exercise of outstanding warrants and stock options (treasury stock method) . . . . . . . . . . . . 1,773 2,054 ------- ------- Weighted average common shares and common share equivalents . . . . . . . . . . 25,976 26,257 ------- ------- ------- ------- Net income before extraordinary gain . . . . . . . $ 616 $ 616 Extraordinary gain, net of income taxes. . . . . . 340 340 ------- ------- Net income for per share computations. . . . . . . $ 956 $ 956 ------- ------- ------- ------- Net income before extraordinary gain per common share. . . . . . . . . . . . . . . . $ 0.03 $ 0.03 Extraordinary gain, net of income taxes per common share. . . . . . . . . . . . . . . . 0.01 0.01 ------- ------- Net income per common share. . . . . . . . . . . . $ 0.04 $ 0.04 ------- ------- ------- -------
* Includes shares reserved for issuance under the consolidated Plan of Reorganization dated September 21, 1993, as amended EX-27 4 EXHIBIT 27 FINANCIAL DATA SCHEDULE
5 1,000 6-MOS DEC-31-1996 JAN-01-1996 JUN-30-1996 15,182 0 26,554 500 7,150 53,548 48,859 7,348 170,879 69,047 22,607 0 0 269 49,648 170,879 190,071 190,071 186,571 186,571 350 0 1,919 1,231 615 616 0 340 0 956 0.04 0.04
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