mach none
wishin I was on a boat
- Joined
- Jan 5, 2002
- Posts
- 669
Even before the government money, we would have made a $900,000 profit. Not much, but still a profit in these difficult times.
Alaska Air Group Reports Second Quarter Results
SEATTLE--(BUSINESS WIRE)--July 22, 2003--Aided by $71.4 million in government assistance ($44.3 million after tax), Alaska Air Group, Inc. (NYSE:ALK - News) today reported second quarter net income of $45.2 million, or $1.70 per share, compared with a net loss of $2.9 million, or $0.11 per share, in the second quarter of 2002. Without the non-recurring compensation received under the Emergency Wartime Supplemental Appropriations Act, the company's net income during the quarter was $0.9 million, or $0.03 per share.
ADVERTISEMENT
The company's net loss for the six months ended June 30, 2003, was $11.1 million, or $0.42 per share, compared to a net loss of $88.0 million, or $3.32 per share, during the same period in 2002. The 2002 net loss includes $51.4 million, or $1.94 per share, related to the write-off of goodwill in connection with the adoption of Statement of Financial Accounting Standards No. 142. Excluding the government compensation received in 2003 and the write-off of goodwill in 2002, our net loss for the six months ended 2003 was $55.4 million ($2.08 per share), versus a loss of $36.6 million ($1.38 per share) for 2002.
"We eked out a small amount of net income for the quarter excluding the government compensation," said Bill Ayer, chairman and chief executive officer. "We are working hard to achieve our cost management objectives and this quarter's results are an encouraging sign that initiatives we have implemented to date are helping us with our plan to return to profitability on a full year basis."
Operationally, Alaska Airlines' passenger traffic in the second quarter increased 9.1 percent on a capacity increase of 5.7 percent. Alaska's load factor increased 2.2 percentage points to 70.6 percent compared to the same period in 2002. Alaska's operating revenue per available seat mile (ASM) increased 0.9 percent, while its operating cost per ASM excluding fuel decreased 1.2 percent. Alaska's pretax income was $59.6 million, or $6.8 million excluding government compensation, compared to a pretax loss of $0.1 million in 2002.
Horizon Air's passenger traffic in the second quarter increased 6.9 percent on a 4.3 percent capacity increase. Horizon's load factor increased by 1.6 points to 63.3 percent. Horizon's operating revenue per ASM increased 2.9 percent, while its operating cost per ASM excluding fuel increased 2.4 percent. Horizon's pretax income was $15.7 million, or a loss of $2.9 million excluding government compensation, compared to a pretax loss of $2.8 million in 2002.
Alaska Air Group had cash and short-term investments at June 30, 2003, of approximately $722 million, compared to $636 million at December 31, 2002. The increased balance reflects the receipt of $71.4 million of government compensation and $123.2 million net proceeds received in connection with the completion of a private placement of floating rate convertible bonds on March 21, 2003. The company's debt-to-capital ratio, assuming aircraft operating leases are capitalized at seven times annualized rent, was 79 percent at June 30, 2003, compared to 77 percent as of December 31, 2002.
A reconciliation of the reported non-GAAP financial measures follows the attached summary of financial and statistical data for Alaska Airlines and Horizon.
A conference call regarding the first quarter results will be simulcast via the Internet at 8:30 a.m. Pacific Daylight Time. It may be accessed through our website at www.alaskaair.com.
This report may contain forward-looking statements that are based on the best information currently available to management. These forward-looking statements are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are indicated by phrases such as "will," "should," "the company believes," "we expect" or any other language indicating a prediction of future events. There can be no assurance that actual developments will be those anticipated by the company. Actual results could differ materially from those projected as a result of a number of factors, some of which the company cannot predict or control. For a discussion of these factors, please see Item 1 of the company's Annual Report on Form 10-K for the year ended December 31, 2002.
Alaska Air Group is the parent company of Alaska Airlines, Inc. and Horizon Air Industries, Inc.
Alaska Air Group Reports Second Quarter Results
SEATTLE--(BUSINESS WIRE)--July 22, 2003--Aided by $71.4 million in government assistance ($44.3 million after tax), Alaska Air Group, Inc. (NYSE:ALK - News) today reported second quarter net income of $45.2 million, or $1.70 per share, compared with a net loss of $2.9 million, or $0.11 per share, in the second quarter of 2002. Without the non-recurring compensation received under the Emergency Wartime Supplemental Appropriations Act, the company's net income during the quarter was $0.9 million, or $0.03 per share.
ADVERTISEMENT
The company's net loss for the six months ended June 30, 2003, was $11.1 million, or $0.42 per share, compared to a net loss of $88.0 million, or $3.32 per share, during the same period in 2002. The 2002 net loss includes $51.4 million, or $1.94 per share, related to the write-off of goodwill in connection with the adoption of Statement of Financial Accounting Standards No. 142. Excluding the government compensation received in 2003 and the write-off of goodwill in 2002, our net loss for the six months ended 2003 was $55.4 million ($2.08 per share), versus a loss of $36.6 million ($1.38 per share) for 2002.
"We eked out a small amount of net income for the quarter excluding the government compensation," said Bill Ayer, chairman and chief executive officer. "We are working hard to achieve our cost management objectives and this quarter's results are an encouraging sign that initiatives we have implemented to date are helping us with our plan to return to profitability on a full year basis."
Operationally, Alaska Airlines' passenger traffic in the second quarter increased 9.1 percent on a capacity increase of 5.7 percent. Alaska's load factor increased 2.2 percentage points to 70.6 percent compared to the same period in 2002. Alaska's operating revenue per available seat mile (ASM) increased 0.9 percent, while its operating cost per ASM excluding fuel decreased 1.2 percent. Alaska's pretax income was $59.6 million, or $6.8 million excluding government compensation, compared to a pretax loss of $0.1 million in 2002.
Horizon Air's passenger traffic in the second quarter increased 6.9 percent on a 4.3 percent capacity increase. Horizon's load factor increased by 1.6 points to 63.3 percent. Horizon's operating revenue per ASM increased 2.9 percent, while its operating cost per ASM excluding fuel increased 2.4 percent. Horizon's pretax income was $15.7 million, or a loss of $2.9 million excluding government compensation, compared to a pretax loss of $2.8 million in 2002.
Alaska Air Group had cash and short-term investments at June 30, 2003, of approximately $722 million, compared to $636 million at December 31, 2002. The increased balance reflects the receipt of $71.4 million of government compensation and $123.2 million net proceeds received in connection with the completion of a private placement of floating rate convertible bonds on March 21, 2003. The company's debt-to-capital ratio, assuming aircraft operating leases are capitalized at seven times annualized rent, was 79 percent at June 30, 2003, compared to 77 percent as of December 31, 2002.
A reconciliation of the reported non-GAAP financial measures follows the attached summary of financial and statistical data for Alaska Airlines and Horizon.
A conference call regarding the first quarter results will be simulcast via the Internet at 8:30 a.m. Pacific Daylight Time. It may be accessed through our website at www.alaskaair.com.
This report may contain forward-looking statements that are based on the best information currently available to management. These forward-looking statements are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are indicated by phrases such as "will," "should," "the company believes," "we expect" or any other language indicating a prediction of future events. There can be no assurance that actual developments will be those anticipated by the company. Actual results could differ materially from those projected as a result of a number of factors, some of which the company cannot predict or control. For a discussion of these factors, please see Item 1 of the company's Annual Report on Form 10-K for the year ended December 31, 2002.
Alaska Air Group is the parent company of Alaska Airlines, Inc. and Horizon Air Industries, Inc.
