Hawaiian Holdings Reports 2016 Second Quarter Financial Results
21-Jul-2016 Hawaiian Holdings, Inc. (NASDAQ: HA) ("Holdings" or the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the second quarter of 2016.
|
Second Quarter 2016 - Key Financial Metrics |
||||
|
GAAP |
YoY Change |
Adjusted |
YoY Change |
|
|
Net Income |
$79.6M |
+$30.7M |
$65.2M |
+$27.7M |
|
Diluted EPS |
$1.48 |
+$0.69 |
$1.21 |
+$0.60 |
|
Pre-tax Margin |
21.6% |
+7.7 pts. |
17.7% |
+7 pts. |
"These outstanding second quarter results distinguish us from the rest of the industry and reinforce our confidence in 2016," said Mark Dunkerley, Hawaiian Airlines president and CEO. "Robust demand for a Hawai'i vacation, moderate industry capacity through the majority of our network, lower fuel costs, and our commitment to operational excellence drove the record-breaking second quarter results. My thanks go to all of Hawaiian's employees who contributed to our terrific financial and operational performance."
Statistical data, as well as a reconciliation of the adjusted non-GAAP financial measures to the equivalent GAAP financial measures, can be found in the accompanying tables.
Liquidity and Capital Resources
As of June 30, 2016 the Company had:
- Unrestricted cash, cash equivalents and short-term investments of $622 million.
- Outstanding debt and capital lease obligations of $586 million.
The Company early retired $89 million of existing debt in the second quarter and contributed $11 million to its pension plans doubling the minimum funding requirement for 2016.
In addition, the Company repurchased 208,660 common shares for approximately $8 million in the second quarter.
Second Quarter 2016 Highlights
Operational
- Ranked #1 nationally for on-time performance in the months of March, April, and May 2016 as reported in the U.S. Department of Transportation Air Travel Consumer Report.
New routes and increased frequencies
- Awarded three times weekly non-stop service between Kona International Airport and Tokyo's Haneda International Airport and additional non-stop frequencies four times weekly between Honolulu International Airport and Haneda International Airport beginning December 2016.
Product and loyalty
- Won the 2016 Skytrax World Airline Award for 'Best Airline Staff' in North America.
- Announced new uniforms for front line employees to debut in 2017.
- Launched Bid Up, a new first class upgrade auction offering North America guests the chance to name their price for first class seats.
- Welcomed the first retrofitted A330 aircraft with the new 278 passenger seat configuration featuring 18 fully lie-flat Premium Cabin seats, 68 Extra Comfort seats, and 192 Main Cabin seats.
Fleet and financing
- Took delivery of its 23rd A330 under a six-year lease.
Third Quarter and Full Year 2016 Outlook
The table below summarizes the Company's expectations for the third quarter ending September 30, 2016 and full year ending December 31, 2016, expressed as an expected percentage change compared to the results for the quarter ended September 30, 2015 and full year ended December 31, 2015, as applicable (the historical results for which are presented for reference).
|
Third Quarter |
|||
|
Item |
2015 |
Third Quarter 2016 Guidance |
|
|
Cost per ASM Excluding Fuel (cents)(a) |
7.97 |
Up 2% to up 5% |
|
|
Operating Revenue Per ASM (cents) |
13.55 |
Down 1% to up 2% |
|
|
ASMs (millions) |
4,663.2 |
Up 4.5% to up 6.5% |
|
|
Gallons of jet fuel consumed (millions) |
61.2 |
Up 4% to 6% |
|
|
Economic fuel cost per gallon (a)(b) |
$ |
1.95 |
$1.50 to $1.60 |
|
Full Year |
|||
|
Item |
2015 |
Full Year 2016 Guidance |
|
|
Cost per ASM Excluding Fuel (cents)(a) |
8.31 |
Up 2.5% to up 4.5% |
|
|
ASMs (millions) |
17,726.3 |
Up 3% to up 5% |
|
|
Gallons of jet fuel consumed (millions) |
234.2 |
Up 2.5% to up 4.5% |
|
|
Economic fuel cost per gallon (a)(b) |
$ |
2.04 |
$1.50 to $1.60 |
|
(a) |
The Company does not reconcile these forward looking non-GAAP financial measures because fuel derivative settlements will not be known until the end of the period and could be significant. |
|
(b) |
Economic fuel cost per gallon estimates are based on the July 12, 2016 fuel forward curve. |
Investor Conference Call
Hawaiian Holdings' quarterly earnings conference call is scheduled to begin today (July 21, 2016) at 4:30 p.m. Eastern Time (USA). The conference call will be broadcast live over the Internet. Investors may listen to the live audio webcast on the investor relations section of the Company's website at www.HawaiianAirlines.com. For those who are not available for the live webcast, the call will be archived for 90 days on the investor relations section of the Company's website.
Refer to full documentation in attachments box, located at the top left, below the headline.
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