EX-99.1 14 p66064ex99-1.txt EX-99.1 EXHIBIT 99.1 Contacts: (Media) Jim Sabourin 480/693-5729 (Investors) Derek Kerr 480/693-5710 FOR IMMEDIATE RELEASE: Thurs., Jan. 31, 2002 AMERICA WEST REPORTS FOURTH QUARTER AND FULL-YEAR 2001 FINANCIAL RESULTS - Net loss for the fourth quarter was $60.9 million or $1.81 per share, including non-recurring charges and federal financial assistance related to the September 11 terrorist attacks. - Passenger revenue per available seat mile (RASM) declined 17.7 percent from the fourth quarter of 2000 due to a reduction in demand for air travel following the September 11 attacks and a reduction in business travel driven by an already slowing economy. RASM improved consistently throughout the fourth quarter. - Cost per available seat mile (CASM) declined 2.3 percent due to a 33 percent drop in average fuel price. - Operating performance continued to improve. Percentage of flights cancelled declined 85 percent. On-time performance improved 33 percent. Mishandled baggage was reduced by 39 percent. PHOENIX (NYSE:AWA)--America West Holdings Corporation, parent company of America West Airlines, Inc. and The Leisure Company, today reported a fourth quarter net loss of $60.9 million and a diluted loss per share of $1.81. For the same period a year ago, America West reported a net loss of $41.7 million, or $1.24 per share. The results include approximately $8.8 million of pre-tax, non-recurring employee benefit expenses ($5.5 million after taxes) and $2.7 million of pre-tax special charges ($1.7 million after taxes) related to the early termination of aircraft leases offset by an $8.8 million pre-tax gain from an insurance settlement ($5.5 million after taxes). The results also include approximately $48 million of pre-tax federal financial assistance ($29.9 million after taxes) following the September 11 terrorist attacks. more... AMERICA WEST FINANCIAL RESULTS / 2 Excluding the non-recurring items and federal grant, the company's net loss for the quarter was $89.1 million, or $2.64 per share. "America West's fourth quarter results reflect the continued impact on the airline industry of the September 11 terrorist attacks," said W. Douglas Parker, chairman and chief executive officer. "Despite the difficult times facing the airline industry, we are encouraged by our improved liquidity position, our incredible turnaround in operations and the trends in revenue performance." Operating revenues for the quarter were $400 million, down 30 percent from the same period in 2000. Available seat miles (ASMs) declined 14.8 percent due to a reduction in scheduled flights after September 11, driven by reduced demand. Revenue passenger miles were 4.0 billion, down 14.8 percent from fourth quarter 2000, consistent with the reduction in capacity. The airline's passenger load factor was 68.5 percent. Passenger yields fell 17.8 percent to 9.38 cents due to an industry-wide decline in business travel and aggressive fare sales since September 11. The decrease in yields caused passenger revenue per available seat mile (RASM) to decline 17.7 percent to 6.42 cents. RASM improved throughout the quarter, however, as December's year-over-year decline in RASM of 15.1 percent was significantly better than the 21.1 percent recorded in October or 17.4 percent in November. Operating cost per available seat mile (CASM) for the fourth quarter of 2001 declined 2.3 percent due to a 33 percent decline in average fuel price. Average fuel price excluding tax was 71.8 cents per gallon versus $1.08 in the fourth quarter of 2000. Excluding fuel and non-recurring items, CASM increased 7.7 percent as ASMs were reduced significantly without a commensurate reduction in costs. For the full year 2001, America West reported a net loss of $147.9 million and a diluted loss per share of $4.39. Revenues for the full year decreased 11.9 percent to $2.1 billion. more... AMERICA WEST FINANCIAL RESULTS / 3 America West continued its dramatic climb in operating performance through the fourth quarter of 2001. For the fourth quarter, as reported to the Department of Transportation (DOT), 85.2 percent of America West flights arrived on-time, compared with 64.1 percent in the same quarter of 2000. Completion factor increased to 99.3 percent from 95.4 percent. Additionally, America West posted a 39 percent improvement in mishandled baggage. As a result of the dramatic improvements, the airline currently ranks near the top of the industry in these important service measurements, and customer complaints to the DOT have dropped 55 percent. "Our employees deserve credit for the outstanding job they've done in improving the airline's operations in 2001, and for maintaining this level of service while providing a heightened level of security for our customers," added Parker. "It's clear that America West is operating a far different airline today than it was 18 months ago." On January 18, 2002, America West closed a term loan in the amount of $429 million and completed arrangements for more than $600 million in concessions, financing and financial assistance following final approval by the Air Transportation Stabilization Board (ATSB) of approximately $380 million in loan guarantees under the Air Transportation Safety and Stabilization Act. Key terms of the loan agreement and related transactions are disclosed in the company's Form 8-K to be filed with the Securities and Exchange Commission today. America West will conduct a live audio webcast of its fourth quarter earnings conference call today at 1:00 p.m. EST (11:00 a.m. MST). The webcast will be available to the public on a listen-only basis at www.americawest.com. An archive will be available through Feb. 3, 2002. more... AMERICA WEST FINANCIAL RESULTS / 4 America West Holdings Corporation is an aviation and travel services company. Wholly owned subsidiary America West Airlines is the nation's eighth largest carrier serving 88 destinations in the U.S., Canada and Mexico. The Leisure Company, also a wholly owned subsidiary, is one of the nation's largest tour packagers. Financial and statistical tables follow: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause America West's actual results and financial position to differ materially from these statements. The risks and uncertainties include, but are not limited to, the aftermath of the September 11 terrorist attacks, the resulting negative impacts on revenues due to airport closures and reduced demand for air travel, increased costs due to enhanced security measures and related government directives, the ability of the company to obtain sufficient additional financing if necessary to survive the adverse economic effects following the September 11 attacks, limitations on financing flexibility due to high levels of debt, financial and other covenants in debt instruments and cross default provisions and the potential dilutive impact of the warrants and convertible notes issued in connection with the term loan and related transactions, the cyclical nature of the airline industry, competitive practices in the industry, the impact of changes in fuel prices, relations with unionized employees generally and the impact of the process of negotiation of labor contracts on the company's operations, the outcome of negotiations of collective bargaining agreements and the impact of these agreements on labor costs, the impact of industry regulations and other factors described from time to time in the company's publicly available SEC reports. The company undertakes no obligation to publicly update any forward-looking statement to reflect events or circumstances that may arise after the date of this press release. America West Holdings Corporation Fourth Quarter 2001 Financial Results / 5 America West Holdings Corporation Condensed Consolidated Statements of Operations (in thousands except per share amounts) (unaudited)
3 Months Ended 3 Months Ended December 31, December 31, Percent 2001 2000 Change --------- --------- --------- Operating revenues: Passenger $ 378,338 $ 539,958 (29.9) Cargo 6,225 9,593 (35.1) Other 15,323 23,445 (34.6) --------- --------- Total operating revenues 399,886 572,996 (30.2) --------- --------- Operating expenses: Salaries and related costs 151,088 149,094 1.3 Aircraft rental 90,108 86,354 4.3 Rentals and landing fees 35,587 33,942 4.8 Aircraft fuel 64,547 115,863 (44.3) Agency commissions 13,068 18,775 (30.4) Aircraft maintenance materials and repairs 60,072 72,958 (17.7) Depreciation and amortization 16,516 15,125 9.2 Reorganization value amortization 4,974 4,974 -- Special charges 2,657 -- -- Other 98,918 148,125 (33.2) --------- --------- Total operating expenses 537,535 645,210 (16.7) --------- --------- Operating loss (137,649) (72,214) 90.6 --------- --------- Nonoperating income (expenses): Interest income 3,415 4,606 (25.9) Interest expense, net (7,209) (4,048) 78.1 Federal government assistance 47,964 -- -- Other, net (68) 620 -- --------- --------- Total nonoperating income (expenses), net 44,102 1,178 -- --------- --------- Loss before income taxes (93,547) (71,036) 31.7 --------- --------- Income tax benefit (32,675) (29,293) 11.5 --------- --------- Net loss $ (60,872) $ (41,743) 45.8 ========= ========= Earnings (loss) per share: Basic: $ (1.81) $ (1.24) 45.6 ========= ========= Diluted: $ (1.81) $ (1.24) 45.6 ========= ========= Shares used for computation: Basic: 33,720 33,784 (0.2) ========= ========= Diluted: 33,720 33,784 (0.2) ========= =========
America West Holdings Corporation Fourth Quarter 2001 Financial Results / 6 America West Airlines, Inc. Statements of Operations (in thousands) (unaudited)
3 Months Ended 3 Months Ended December 31, December 31, Percent 2001 2000 Change --------- --------- --------- Operating revenues: Passenger $ 378,338 $ 539,958 (29.9) Cargo 6,225 9,593 (35.1) Other 6,755 13,165 (48.7) --------- --------- Total operating revenues 391,318 562,716 (30.5) --------- --------- Operating expenses: Salaries and related costs 150,740 148,524 1.5 Aircraft rental 90,108 86,354 4.3 Rentals and landing fees 35,587 33,941 4.8 Aircraft fuel 64,547 115,863 (44.3) Agency commissions 13,068 18,775 (30.4) Aircraft maintenance materials and repairs 60,072 72,958 (17.7) Depreciation and amortization 16,516 15,125 9.2 Reorganization value amortization 4,974 4,974 -- Special charges 2,657 -- -- Other 91,135 139,150 (34.5) --------- --------- Total operating expenses 529,404 635,664 (16.7) --------- --------- Operating loss (138,086) (72,948) 89.3 --------- --------- Nonoperating income (expenses): Interest income 4,875 6,796 (28.3) Interest expense, net (8,581) (5,936) 44.6 Federal government assistance 47,964 -- -- Other, net 161 1,768 (90.9) --------- --------- Total nonoperating income (expenses), net 44,419 2,628 -- --------- --------- Loss before income taxes $(93,667) $ (70,320) 33.2 ========= =========
America West Holdings Corporation Fourth Quarter 2001 Financial Results / 7
3 Months Ended 3 Months Ended December 31, December 31, Percent 2001 2000 Change --------- --------- --------- Operating Statistics: Number of aircraft at end of period 146 138 5.8 Available seat miles/ASMs (in millions) 5,892 6,918 (14.8) Block hours 110,714 132,262 (16.3) Average stage length (miles) 901 885 1.8 Revenue passenger miles/RPMs (in millions) 4,034 4,733 (14.8) Load factor (%) 68.5 68.4 0.1 points Passenger enplanements (000) 4,144 4,958 (16.4) Passenger yield (cents) 9.38 11.41 (17.8) Passenger revenue per ASM (cents) 6.42 7.80 (17.7) Operating revenue per ASM (cents) 6.64 8.13 (18.3) Operating cost per ASM (cents) 8.98 9.19 (2.3) Operating cost per ASM excluding non-recurring charges (cents) 8.94 8.96 (0.2) Operating cost per ASM excluding fuel and 7.84 7.28 7.7 non-recurring charges (cents) Average fuel cost per gallon (cents) 71.81 107.81 (33.4) Fuel gallons consumed (in millions) 89.9 107.4 (16.3)
America West Holdings Corporation Adjustment for Amortization of Excess Reorganization Value (ERV)(a) (in thousands except per share data)
3 Months Ended 3 Months Ended December 31, 2001 December 31, 2000 ---------- ---------- Diluted EPS - as reported $ (1.81) $ (1.24) Pretax amortization of ERV (b) 5,373 5,373 After-tax amortization of ERV (c) 5,373 5,373 Diluted shares 33,720 33,784 Amortization of ERV per share $ 0.16 $ 0.16 Diluted EPS - as adjusted $ (1.65) $ (1.08)
(a) ERV is an intangible asset that was established upon the Company's emergence from financial restructuring in August 1994 and is being amortized over a 20-year period. (b) Includes $399,000 of ERV for the fourth quarter 2001 and 2000, respectively, classified as TLC expenses. (c) Amortization of ERV is not a tax-deductible expense. America West Holdings Corporation Fourth Quarter 2001 Financial Results / 8 America West Holdings Corporation Condensed Consolidated Balance Sheets (in thousands of dollars)
December 31, 2001 December 31, 2000 ---------- ---------- (Unaudited) Assets Current assets Cash equivalents and short-term investments $ 156,865 $ 194,824 Other current assets, net 204,533 236,276 ---------- ---------- Total current assets 361,398 431,100 ---------- ---------- Property and equipment, net 825,903 754,327 Other assets Restricted cash 54,546 34,554 Reorganization value in excess of amounts allocable to identifiable assets, net 272,283 293,780 Other assets 56,779 54,754 ---------- ---------- Total assets $1,570,909 $1,568,515 ========== ========== Liabilities and Stockholders' Equity Current liabilities Current maturities of long-term debt and capital leases $ 119,141 $ 159,667 Other liabilities 561,998 454,530 ---------- ---------- Total current liabilities 681,139 614,197 ---------- ---------- Long-term debt, less current maturities 222,955 145,578 Deferred credits and other noncurrent liabilities 133,779 101,122 Deferred tax liability, net 10,692 40,545 Stockholders' equity 522,344 667,073 ---------- ---------- Total liabilities and stockholders' equity $1,570,909 $1,568,515 ========== ==========
America West Holdings Corporation Fourth Quarter 2001 Financial Results / 9 America West Holdings Corporation Condensed Consolidated Statements of Operations (in thousands except per share amounts) (unaudited)
12 Months Ended 12 Months Ended Percent December 31, 2001 December 31, 2000 Change ----------- ----------- ----- Operating revenues: Passenger $ 1,941,877 $ 2,179,811 (10.9) Cargo 33,824 37,377 (9.5) Other 90,212 127,166 (29.1) ----------- ----------- Total operating revenues 2,065,913 2,344,354 (11.9) ----------- ----------- Operating expenses: Salaries and related costs 603,819 559,578 7.9 Aircraft rental 355,517 331,005 7.4 Rentals and landing fees 140,372 130,680 7.4 Aircraft fuel 343,224 373,313 (8.1) Agency commissions 75,085 86,469 (13.2) Aircraft maintenance materials and repairs 257,939 258,432 (0.2) Depreciation and amortization 63,178 54,313 16.3 Reorganization value amortization 19,896 19,896 -- Special charges 38,352 -- -- Other 483,116 543,305 (11.1) ----------- ----------- Total operating expenses 2,380,498 2,356,991 1.0 ----------- ----------- Operating loss (314,585) (12,637) -- ----------- ----------- Nonoperating income (expenses): Interest income 14,785 15,980 (7.5) Interest expense, net (26,349) (15,449) 70.6 Federal government assistance 108,246 -- Other, net (3,198) 36,849 -- ----------- ----------- Total nonoperating income (expenses), net 93,484 37,380 -- ----------- ----------- Income (loss) before income taxes (221,101) 24,743 -- ----------- ----------- Income taxes (benefit) (73,230) 17,064 -- ----------- ----------- Net income (loss) $ (147,871) $ 7,679 -- =========== =========== Earnings (loss) per share: Basic: $ (4.39) $ 0.22 -- =========== =========== Diluted: $ (4.39) $ 0.22 -- =========== =========== Shares used for computation: Basic: 33,670 35,139 (4.2) =========== =========== Diluted: 33,670 35,688 (5.7) =========== ===========
America West Holdings Corporation Fourth Quarter 2001 Financial Results / 10 America West Airlines, Inc. Statements of Operations (in thousands) (unaudited)
12 Months Ended 12 Months Ended Percent December 31, 2001 December 31, 2000 Change ----------- ----------- ----- Operating revenues: Passenger $ 1,941,877 $ 2,179,811 (10.9) Cargo 33,824 37,377 (9.5) Other 45,262 73,683 (38.6) ----------- ----------- Total operating revenues 2,020,963 2,290,871 (11.8) ----------- ----------- Operating expenses: Salaries and related costs 601,986 556,906 8.1 Aircraft rental 355,517 331,005 7.4 Rentals and landing fees 140,372 130,679 7.4 Aircraft fuel 343,224 373,313 (8.1) Agency commissions 75,085 86,469 (13.2) Aircraft maintenance materials and repairs 257,939 258,432 (0.2) Depreciation and amortization 63,178 54,313 16.3 Reorganization value amortization 19,896 19,896 -- Special charges 38,352 -- -- Other 445,525 492,596 (9.6) ----------- ----------- Total operating expenses 2,341,074 2,303,609 1.6 ----------- ----------- Operating loss (320,111) (12,738) -- ----------- ----------- Nonoperating income (expenses): Interest income 22,654 23,706 (4.4) Interest expense, net (33,789) (22,939) 47.3 Federal government assistance 108,246 -- -- Other, net 63 27,112 (99.8) ----------- ----------- Total nonoperating income (expenses), net 97,174 27,879 -- ----------- ----------- Income (loss) before income taxes $ (222,937) $ 15,141 -- =========== ===========
America West Holdings Corporation Fourth Quarter 2001 Financial Results / 11
12 Months Ended 12 Months Ended Percent December 31, 2001 December 31, 2000 Change ----------- ----------- ----- Operating Statistics: Number of aircraft at end of period 146 138 5.8 Available seat miles/ASMs (in millions) 26,539 27,112 (2.1) Block hours 508,036 516,757 (1.7) Average stage length (miles) 894 878 1.8 Revenue passenger miles/RPMs (in millions) 19,074 19,113 (0.2) Load factor (%) 71.9 70.5 1.4 points Passenger enplanements (000) 19,576 19,954 (1.9) Passenger yield (cents) 10.18 11.40 (10.7) Passenger revenue per ASM (cents) 7.32 8.04 (9.0) Operating revenue per ASM (cents) 7.61 8.45 (9.9) Operating cost per ASM (cents) 8.82 8.50 3.8 Operating cost per ASM excluding non-recurring charges (cents) 8.68 8.44 2.8 Operating cost per ASM excluding fuel and 7.38 4.5 non-recurring charges (cents) 7.06 Average fuel cost per gallon (cents) 83.0 88.08 (5.8) Fuel gallons consumed (in millions) 413.5 423.8 (2.4)
America West Holdings Corporation Adjustment for Amortization of Excess Reorganization Value (ERV)(a) (in thousands except per share data)
12 Months Ended 12 Months Ended December 31, 2001 December 31, 2000 ------------ ------------ Diluted EPS - as reported $ (4.39) $ 0.22 Pretax amortization of ERV (b) 21,496 21,496 After-tax amortization of ERV (c) 21,496 21,496 Diluted shares 33,670 35,688 Amortization of ERV per share $ 0.64 $ 0.60 Diluted EPS - as adjusted $ (3.75) $ 0.82
(a) ERV is an intangible asset that was established upon the Company's emergence from financial restructuring in August 1994 and is being amortized over a 20-year period. (b) Includes $1,600,000 of ERV for the twelve months ended December 31, 2001 and 2000, respectively, classified as TLC expenses. (c) Amortization of ERV is not a tax-deductible expense.