-----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, KQ9BN4nPAMCX35V5+owy+f8u4D8SbyfXb8fvYcvCugbFiJXW+5G8kahiyecKSgYD XGmWr07ylkoEtxXmUhpOJA== 0000766421-95-000008.txt : 19951102 0000766421-95-000008.hdr.sgml : 19951102 ACCESSION NUMBER: 0000766421-95-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951101 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALASKA AIR GROUP INC CENTRAL INDEX KEY: 0000766421 STANDARD INDUSTRIAL CLASSIFICATION: AIR TRANSPORTATION, SCHEDULED [4512] IRS NUMBER: 911292054 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08957 FILM NUMBER: 95586221 BUSINESS ADDRESS: STREET 1: 19300 PACIFIC HWY SOUTH CITY: SEATTLE STATE: WA ZIP: 98188 BUSINESS PHONE: 2064333200 MAIL ADDRESS: STREET 1: PO BOX 68947 CITY: SEATTLE STATE: WA ZIP: 98168-0947 10-Q 1 ALASKA AIR GROUP, INC 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) (X)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1995. OR ( )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 1-8957 ALASKA AIR GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 91-1292054 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 19300 Pacific Highway South, Seattle, Washington 98188 (Address of principal executive offices) Registrant's telephone number, including area code: (206) 431-7040 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. Yes X No ___ APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. The registrant has 13,560,951 common shares, par value $1.00, outstanding at September 30, 1995. PART I. FINANCIAL INFORMATION ITEM 1. Financial Statements Attached are the following Alaska Air Group, Inc. (the Company or Air Group) unaudited financial statements: (i) consolidated balance sheets as of September 30, 1995 and December 31, 1994; (ii) consolidated statements of income for the quarters and nine months ended September 30, 1995 and 1994; (iii) consolidated statement of shareholders' equity for the nine months ended September 30, 1995; and, (iv) consolidated statements of cash flows for the nine months ended September 30, 1995 and 1994. Also attached are the accompanying notes to the Company's consolidated financial statements that have changed significantly during the nine months ended September 30, 1995. These statements, which should be read in conjunction with the financial statements in the Company's annual report on Form 10-K for the year ended December 31, 1994, include all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods. The adjustments made were of a normal recurring nature. Air Group is a holding company incorporated in Delaware in 1985. Its principal subsidiaries are Alaska Airlines, Inc. (Alaska) and Horizon Air Industries, Inc. (Horizon). ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION Results of Operations Third Quarter 1995 Compared with Third Quarter 1994 The consolidated net income for the third quarter of 1995 was $27.4 million, or $2.01 per share (primary) and $1.30 per share (fully diluted), compared with net income of $24.3 million, or $1.81 per share (primary) and $1.36 per share (fully diluted), in 1994. Operating income for the third quarter of 1995 was $62.6 million, compared with $52.3 million in 1994. A discussion of operating revenues and expenses for the two airlines follows. Alaska Airlines Operating revenues increased 9.4% to $342.8 million. Passenger revenues, which accounted for 88% of total operating revenues, increased 8.7% on a 10.5% rise in passenger traffic. Capacity increased 12.7%, primarily due to increases in the Pacific Northwest to California markets. The load factor dropped from 67.3% in 1994 to 66.0% in 1995. Passenger yields, at 12.00 cents, decreased 1.7% in 1995 compared to the third quarter of 1994. However, yields were approximately equal to those of the second quarter of 1995. In September 1995, Southwest Airlines reduced walk-up fares by as much as 50% on 14 routes between California and the Pacific Northwest. In response, Shuttle by United reduced companion fares (for travel through November 22) between Northern California and the Pacific Northwest. Alaska has matched these fare reductions, which are expected to have a negative impact on fourth quarter 1995 revenues and earnings. Freight and mail revenues increased 5.4% primarily due to higher freight volumes, resulting in part from the withdrawal of MarkAir from all Alaska markets. Other-net revenues rose 32.7% primarily due to increased revenues from travel partners in Alaska's frequent flyer program. The table below shows the major operating expense elements on a cost per available seat mile (ASM) basis for Alaska for the third quarters of 1995 and 1994. Operating Expenses Per ASM (In Cents) % 1995 1994 Change Change Wages and benefits 2.41 2.57 (.16) (6) Aircraft fuel 1.08 1.08 Aircraft maintenance .31 .31 Aircraft rent .91 1.03 (.12) (12) Commissions .56 .64 (.08) (13) Depreciation & amortization .38 .36 .02 6 Other 1.84 1.93 (.09) (5) Total 7.49 7.92 (.43) (5) Lower unit costs were due to continuing cost reduction efforts and better utilization of aircraft. Average daily aircraft utilization increased 4% from 11.0 block hours to 11.4 block hours. Wages and benefits per ASM decreased 6% primarily due to improved productivity. The number of equivalent employees increased 6% while capacity increased 13% and traffic increased 10%. In October 1995, Alaska (as well as Horizon and other domestic airlines) began paying an additional 4.3 cents Federal excise tax on domestic fuel consumption. The annual impact of this tax on Alaska is approximately $10 million or .07 cents per ASM. There is pending legislation in Congress to extend the exemption from this tax for 17 to 24 months. Aircraft rent per ASM decreased 12% due to an increase in aircraft utilization, and a restructuring (in the fourth quarter of 1994) of B737- 400 aircraft leases that resulted in lower rents. Commission expense per ASM decreased 13% because passenger revenues, upon which commissions are paid, did not keep pace with ASM growth. In addition, a greater percentage of tickets were sold without commissions through tour operators. Depreciation and amortization expense per ASM increased 6% in spite of a 13% increase in ASMs, primarily due to: (a) the reduction in estimated salvage value from 20% to 5% (effective January 1, 1995) for all MD-80 aircraft; and (b) depreciation on three B737-400 aircraft that were on operating leases in 1994. Other expense per ASM decreased 5% due to lower unit costs for food, landing fees, building rentals and outside services expenses. Horizon Air Operating revenues increased 5.2% to $77.8 million. Passenger revenues, which accounted for 95% of total operating revenues, increased 4.8% on a 9.2% rise in passenger traffic. Capacity increased 18.0% due to the use of larger capacity Fokker F-28 jets and Dornier 328 turboprop aircraft. The load factor dropped from 66.7% in 1994 to 61.7% in 1995. Passenger yields declined 4.0% to 31.0 cents in 1995, reflecting increased competition and longer passenger trips. Freight, mail and other revenues increased 11.5% due to increased freight and mail volumes as well as increased revenues from providing services to other airlines. The table below shows the major operating expense elements on cost per ASM basis for Horizon for the third quarters of 1995 and 1994. Horizon Air Operating Expenses Per ASM (In Cents) % 1995 1994 Change Change Wages and benefits 5.69 6.78 (1.09) (16) Aircraft fuel 1.88 1.80 .08 4 Aircraft maintenance 2.30 2.15 .15 7 Aircraft rent 2.27 2.30 (.03) (1) Commissions 1.32 1.60 (.28) (18) Depreciation & amortization .59 .64 (.05) (8) Other 4.39 4.90 (.51) (10) Horizon Air Total 18.44 20.17 (1.73) (9) Horizon's cost per ASM declined 9% to 18.44 cents due to: (a) greater use of higher capacity aircraft; (b) no profit sharing accrual in 1995; and (c) cost reduction efforts. Other Income (Expense) Non-operating expense increased $3.0 million to $12.4 million expense primarily due to: (a) $1.3 million more interest expense resulting from higher interest rates on variable debt and higher average debt balances; and (b) $2.2 million write-off of capitalized debt issuance costs for the 7-1/4% zero coupon notes that were redeemed in August 1995. Nine Months 1995 Compared with Nine Months 1994 The consolidated net income for the nine months ended September 30, 1995 was $18.0 million, or $1.34 per share (primary) and $1.22 per share (fully diluted), compared with net income of $27.6 million, or $2.07 per share (primary) and $1.76 per share (fully diluted), in 1994. Operating income for the first nine months of 1995 was $68.8 million compared to operating income of $73.8 million in 1994. A discussion of operating revenues and expenses for the two airlines follows. Alaska Airlines Operating revenues increased 7.3% to $868.4 million, primarily due to a 14.6% rise in passenger traffic. Capacity increased 18.6%, primarily due to increases in the Pacific Northwest to California markets. The load factor dropped from 63.6% in 1994 to 61.5% in 1995. Passenger yields declined 7.0% to 11.72 cents in 1995, reflecting increased competition on the West Coast. Operating expenses increased 7.5% to $803.3 million on a capacity increase of 18.6%. Unit costs decreased 9.4%, generally for the same reasons as noted above in the third quarter comparison. Horizon Air Operating revenues increased 10.7% to $210.9 million, primarily due to an 18.8% rise in passenger traffic. Capacity increased 26.6% due to the addition of larger capacity Fokker F-28 jets and Dornier 328 turboprop aircraft. The load factor dropped from 62.9% in 1994 to 59.0% in 1995. Passenger yields declined 7.2% to 31.7 cents in 1995, reflecting increased competition and longer passenger trips. Operating expenses increased 16.2% to $206.6 million on a capacity increase of 26.6%. Unit costs decreased 8.2%, generally for the same reasons as noted above in the third quarter comparison. Other Income (Expense) Non-operating expense increased $11.2 million to $35.5 million expense primarily due to: (a) $6.0 million more interest expense resulting from higher interest rates on variable debt and higher average debt balances; (b) $2.2 million write-off of capitalized debt issuance costs for the 7-1/4% zero coupon notes that were repurchased in August 1995; (c) $1.8 million of vendor credits included in 1994; and (d) $1.2 million more gains on debt retirements included in 1994. Income Tax Expense Accounting standards normally require companies to provide for income taxes each quarter based on their estimate of the effective tax rate for the full year. The volatility of air fares and the seasonality of the Company's business make it very difficult to estimate full-year pretax results. In addition, a relatively small change in pretax results can cause a significant change in the effective tax rate due to the magnitude of nondeductible expenses, such as goodwill amortization and employee per diem costs. Since a reliable estimate cannot be made, the Company has followed an alternative method allowed by accounting standards and used a 45.8% year-to-date tax rate. This rate was calculated using year-to-date pretax income and year-to-date permanent differences. This approach may result in quarterly effective tax rates which vary significantly. Liquidity and Capital Resources The table below presents the major indicators of financial condition and liquidity. September 30, 1995 December 31, 1994 Change (In millions, except debt-to-equity and per share amounts) Cash and marketable securities $143.6 $ 104.9 $38.7 Working capital (deficit) (89.2) (147.1) 57.9 Long-term debt 560.6 589.9 (29.3) Shareholders' equity 212.8 191.3 21.5 Book value per common share $15.69 $ 14.27 $ 1.42 Debt-to-equity 72%:28% 76%:24% NA The Company's cash and marketable securities portfolio increased by $39 million during the first nine months of 1995. Operating activities provided $134 million of cash during this period. An additional $129 million of cash was provided by the issuance of new long-term debt. Cash was used for airframe and engine overhauls and other capital expenditures ($47 million), the repayment of debt ($169 million), and the net repayment of short-term borrowings ($25 million). In June 1995, the Company issued $132.3 million of 6-1/2% convertible senior debentures due 2005. Each debenture is convertible into 46.512 shares of common stock, reflecting a conversion price of $21.50 per share. In August 1995, the Company redeemed all of it's 7-1/4% zero coupon, convertible subordinated notes for $127.7 million. In August 1995, Standard & Poors lowered its corporate credit rating on Air Group and Alaska to single B plus from double B minus, citing increased competition in Alaska's West Coast markets. During the second quarter of 1995, Alaska took delivery of two new MD-83 aircraft under 16-year operating leases. During the third quarter of 1995, Alaska agreed to take delivery of two new B737-400 aircraft (one in November 1996 and one in March 1997), under 10-year operating leases. In addition, Alaska extended operating leases on four of its MD-80 aircraft for an average of two years. PART II. OTHER INFORMATION ITEM 6. Exhibits and Reports on Form 8-K (a)Exhibit 11 - Statement regarding computation of per-share earnings. Exhibit 27 - Financial data schedule. (b)No reports on Form 8-K were filed during the third quarter of 1995. Signatures Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ALASKA AIR GROUP, INC. Registrant Date: October 31, 1995 /s/ John F. Kelly John F. Kelly Chairman, President and Chief Executive Officer /s/ Harry G. Lehr Harry G. Lehr Senior Vice President/Finance (Principal Financial Officer) CONSOLIDATED BALANCE SHEET Alaska Air Group, Inc.
ASSETS Sept. 30, Dec. 31, (In Thousands) 1995 1994 Current Assets Cash and cash equivalents $58,147 $11,605 Marketable securities 85,443 93,337 Receivables - net 105,516 70,055 Inventories and supplies 44,267 40,250 Prepaid expenses and other assets 60,134 57,396 Total Current Assets 353,507 272,643 Property and Equipment Flight equipment 799,493 776,551 Other property and equipment 216,026 208,502 Deposits for future flight equipment 42,117 52,885 1,057,636 1,037,938 Less accum. depreciation and amort. 300,140 260,001 757,496 777,937 Capital leases Flight and other equipment 103,076 103,076 Less accumulated amortization 25,014 21,676 78,062 81,400 Total Property and Equipment - Net 835,558 859,337 Intangible Assets - Subsidiaries 64,141 65,671 Other Assets 99,167 118,120 Total Assets $1,352,373 $1,315,771 See accompanying notes to consolidated financial statements.
CONSOLIDATED BALANCE SHEET Alaska Air Group, Inc.
LIABILITIES AND SHAREHOLDERS' EQUITY Sept. 30, Dec. 31, (In Thousands) 1995 1994 Current Liabilities Accounts payable $64,352 $48,592 Accrued aircraft rent 44,997 43,762 Other accrued liabilities 79,931 59,591 Accrued wages and related 43,346 47,364 Short-term borrowings - 25,000 Air traffic liability 140,011 123,433 Current portion of long-term debt and capital lease obligations 70,079 72,005 Total Current Liabilities 442,716 419,747 Long-Term Debt and Capital Lease Obligations 560,634 589,904 Other Liabilities and Credits Deferred income taxes 45,738 28,585 Deferred income 19,579 23,018 Other liabilities 70,928 63,239 136,245 114,842 Shareholders' Equity Common stock, $1 par value Authorized: 30,000,000 shares Issued: 1995 - 16,714,599 shares 1994 - 16,553,679 shares 16,715 16,554 Capital in excess of par value 155,189 152,756 Treasury stock, at cost: 1995-3,153,608;1994-3,153,589 shares (71,808) (71,807) Deferred compensation (3,823) (4,697) Retained earnings 116,505 98,472 212,778 191,278 Total Liabilities and Shareholders' Equity $1,352,373 $1,315,771 See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENT OF INCOME Alaska Air Group, Inc.
Quarter Ended September 30 (In Thousands except Per share Amounts) 1995 1994 Operating Revenues Passenger $377,292 $349,707 Freight and mail 26,277 24,833 Other - net 16,060 12,261 Total Operating Revenues 419,629 386,801 Operating Expenses Wages and benefits 114,231 109,397 Aircraft fuel 48,482 42,598 Aircraft maintenance 20,807 17,727 Aircraft rent 43,789 42,623 Commissions 26,502 27,148 Depreciation and amortization 16,945 14,475 Other 86,251 80,552 Total Operating Expenses 357,007 334,520 Operating Income 62,622 52,281 Other Income (Expense) Interest income 3,390 2,426 Interest expense (13,315) (11,985) Interest capitalized - 83 Loss on sale of assets (702) (320) Other - net (1,737) 427 (12,364) (9,369) Income before income tax 50,258 42,912 Income tax expense 22,906 18,649 Net Income $27,352 $24,263 Primary Earnings Per Share $2.01 $1.81 Fully Diluted Earnings Per Share $1.30 $1.36 Shares used for computation: Primary 13,575 13,386 Fully diluted 23,034 19,486 See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENT OF INCOME Alaska Air Group, Inc.
Nine Months Ended September 30 (In Thousands except Per share Amounts) 1995 1994 Operating Revenues Passenger $957,469 $892,173 Freight and mail 71,761 67,428 Other - net 47,164 38,057 Total Operating Revenues 1,076,394 997,658 Operating Expenses Wages and benefits 322,519 302,526 Aircraft fuel 131,560 109,940 Aircraft maintenance 61,126 52,397 Aircraft rent 128,470 123,135 Commissions 71,775 70,799 Depreciation and amortization 50,875 41,678 Other 241,279 223,339 Total Operating Expenses 1,007,604 923,814 Operating Income 68,790 73,844 Other Income (Expense) Interest income 6,701 5,561 Interest expense (39,713) (33,672) Interest capitalized - 281 Loss on sale of assets (1,408) (822) Other - net (1,126) 4,310 (35,546) (24,342) Income before income tax 33,244 49,502 Income tax expense 15,211 21,871 Net Income $18,033 $27,631 Primary Earnings Per Share $1.34 $2.07 Fully Diluted Earnings Per Share $1.22 $1.76 Shares used for computation: Primary 13,450 13,371 Fully diluted 20,431 19,725 See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENT OF SHAREHOLDERS Alaska Air Group, Inc.
Common Stock Capital in Treasury Deferred $1 Par Excess of Stock Compen- Retained (In Thousands) Value Par Value at Cost sation Earnings Total Balances at December 31, 1994 $16,554 $152,756 $(71,807) $(4,697) $98,472 $191,278 Net income for the nine months ended September 30, 1995 18,033 18,033 Stock issued under stock plans 161 2,433 2,594 Treasury stock purchase (1) (1) Employee Stock Ownership Plan shares allocated 874 874 Balances at September 30, 1995 $16,715 $155,189 $(71,808) $(3,823) $116,505 $212,778 See accompanying notes to consolidated statements.
CONSOLIDATED STATEMENT OF CASH FLOWS Alaska Air Group, Inc.
Nine Months Ended September 30 (In Thousands) 1995 1994 Cash and cash equivalents at beginning of period $11,605 $27,179 Cash flows from operating activities: Net income 18,033 27,631 Adjustments to reconcile net income to cash: Depreciation and amortization 50,875 41,678 Amortization of airframe and engine overhauls 18,744 15,357 Loss (gain) on disposition of assets and debt retirement 3,238 (723) Deferred income taxes 17,153 14,928 Increase in accounts receivable (35,461) (4,607) Decrease (increase) in other current assets (6,755) 2,786 Increase in air traffic liability 16,578 17,219 Increase in other current liabilities 33,317 39,822 Interest on zero coupon notes 5,359 7,610 Leased aircraft return payments and other-net 13,094 (15,589) Net cash provided by operating activities 134,175 146,112 Cash flows from investing activities: Proceeds from disposition of assets 2,209 4,691 Purchases of marketable securities (62,340) (77,192) Sales and maturities of marketable securities 70,234 29,760 Restricted deposits 3,513 (5,509) Flight equipment deposits returned 8,883 3,578 Additions to flight equipment deposits - (961) Additions to property and equipment (46,997) (141,566) Payments received on loans to ESOPs 1,111 1,313 Net cash used in investing activities (23,387) (185,886) Cash flows from financing activities: Proceeds from short-term borrowings 4,000 - Repayment of short-term borrowings (29,000) (20,000) Proceeds from issuance of long-term debt 128,795 104,000 Long-term debt and capital lease payments (168,805) (42,458) Proceeds from issuance of common stock 2,594 319 Gain (loss) on debt retirement (1,830) 1,545 Net cash provided by (used in) financing activities (64,246) 43,406 Net increase in cash and cash equivalents 46,542 3,632 Cash and cash equivalents at end of period $58,147 $30,811 Supplemental disclosure of cash paid (received) during the period for: Interest (net of amount capitalized) $34,687 $28,813 Income taxes (refunds) $(1,943) $(5,415) Noncash investing and financing activities None None See accompanying notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS THAT HAVE CHANGED SIGNIFICANTLY DURING THE NINE MONTHS ENDED SEPTEMBER 30, 1995 Alaska Air Group, Inc. Note 1. Summary of Significant Accounting Policies (See Note 1 to Consolidated Financial Statements at December 31, 1994) Property, Equipment and Depreciation Effective January 1, 1995, the estimated salvage value of MD-80 flight equipment was changed to 5% from 20%. The new estimate was adopted to recognize the lower expected salvage values for this aircraft type. The effect of the change on the three months and nine months ending June 30, 1995 was to decrease net income $757,000 ($.06 per primary share and $.03 per fully diluted share) and $2.3 million ($.17 per primary share and $.11 per fully diluted share), respectively. Note 2. Long-Term Debt and Capital Lease Obligations (See Note 4 to Consolidated Financial Statements at December 31, 1994) In June 1995, the Company issued $132.3 million of 6-1/2% convertible senior debentures due 2005. Each debenture is convertible to 46.512 shares of common stock, reflecting a conversion price of $21.50 per share. In August 1995, the Company redeemed all of it's 7-1/4% zero coupon, convertible subordinated notes for $127.7 million. Note 3. Commitments (See Note 5 to Consolidated Financial Statements at December 31, 1994) During the second quarter of 1995, Alaska took delivery of two new MD-83 aircraft under 16-year operating leases. During the third quarter of 1995, Alaska agreed to take delivery of two new B737-400 aircraft (one in November 1996 and one in March 1997), under 10-year operating leases. In addition, Alaska extended operating leases on four of its MD-80 aircraft for an average of two years. The total increase in lease commitments for all of these transactions is approximately $205 million. Note 4. Financial Instruments (See Note 11 to Consolidated Financial Statements at December 31, 1994) At September 30, 1995, the Company had a fuel hedge agreement in place with a ceiling price of 70 cents covering approximately 50% of the expected fuel usage through July 1996, and a floor price of 42 cents covering approximately 50% of the expected fuel usage through July 1996. At September 30, 1995, the fuel index was at 51 cents. EX-11 2 Alaska Air Group, Inc. EXHIBIT 11 Computation of Earnings Per Common Share (In thousands, except per share)
Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------- 1995 1994 1995 1994 ------ ------ ------ ------ Primary - Net income $27,352 $24,263 $18,033 $27,631 ====== ====== ====== ====== Average number of shares outstanding 13,509 13,370 13,440 13,359 Assumed exercise of stock options reduced by the number of shares purchased with the proceeds from exercise of such options 66 16 10 12 ------ ------ ------ ------ Average shares as adjusted 13,575 13,386 13,450 13,371 ====== ====== ====== ====== Earnings per common share $2.01 $1.81 $1.34 $2.07 ====== ====== ====== ====== Fully Diluted - Net income $27,352 $24,263 $18,033 $27,631 After tax interest on convertible securities 2,580 2,318 6,868 7,037 ------ ------ ------ ------ Income applicable to common shares $29,932 $26,581 $24,901 $34,668 ====== ====== ====== ====== Average number of shares outstanding 13,509 13,370 13,440 13,359 Assumed exercise of stock options 66 19 10 15 Assumed conversion of 6.5% debentures 6,151 0 2,141 0 Assumed conversion of 7.75% debentures 446 508 487 513 Assumed conversion of 6.875% debentures 1,608 1,608 1,608 1,702 Assumed conversion of 7.25% zero coupon notes 1,254 3,981 2,745 4,136 Assumed conversion of preferred shares 0 0 0 0 ------ ------ ------ ------ Average shares as adjusted 23,034 19,486 20,431 19,725 ====== ====== ====== ====== Earnings per Common Share $1.30 $1.36 $1.22 $1.76 ====== ====== ====== ======
EX-27 3
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALASKA AIR GROUP INC THIRD QUARTER 1995 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1000 9-MOS DEC-31-1995 SEP-30-1995 58147 85443 105516 0 44267 353507 1160712 325154 1352373 442716 560634 16715 0 0 196063 1352373 1076394 1076394 1007604 1007604 0 0 39713 33244 15211 18033 0 0 0 18033 1.34 1.22
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