United and Continental Q3 Profits.

[Flopgut]

United Continental Holdings, Inc. Announces Third Quarter Results

UNITED REPORTS THIRD QUARTER $473 MILLION PROFIT EXCLUDING SPECIAL ITEMS, $387 MILLION ON GAAP BASIS
CONTINENTAL REPORTS THIRD QUARTER $367 MILLION PROFIT EXCLUDING SPECIAL ITEMS, $354 MILLION ON GAAP BASIS

 

[mamba20]

so for those of us who aren't financial people what does that mean? excluding special items and GAAP is greek to me.

 

[dalad]

so for those of us who aren't financial people what does that mean? excluding special items and GAAP is greek to me.

GAAP=Generally Accepted Accounting Principles

 

[Ex737Driver]

United Continental Holdings, Inc. (NYSE: UAL) today announced individual third quarter 2010 financial results for United Airlines and Continental Airlines. On Oct. 1, a wholly owned subsidiary of United Continental Holdings, Inc., formerly UAL Corporation, merged with Continental Airlines, Inc. Financial results for United and Continental will be combined when the company reports fourth quarter 2010 results.


Highlights of this quarter include:
· United reported third quarter 2010 net income of $473 million or $2.12 diluted earnings per share excluding certain special items, an improvement of $533 million year-over-year. On a GAAP basis, United reported third quarter net income of $387 million.

· Continental reported third quarter 2010 net income of $367 million or $2.24 diluted earnings per share excluding certain special items, an improvement of $365 million year-over-year. On a GAAP basis, Continental reported third quarter net income of $354 million.

· United consolidated passenger revenue increased 21.4 percent in the third quarter 2010 compared to the same period in 2009.

· Continental consolidated passenger revenue increased 20.6 percent in the third quarter 2010 compared to the same period in 2009.

· The companies ended the third quarter with a combined $9.1 billion of unrestricted cash, cash equivalents and short-term investments

 

[ATA For Now!]

so for those of us who aren't financial people what does that mean? excluding special items and GAAP is greek to me.

It means they made almost a BILLON dollar profit and have 9.1 BILLION in CASH. They better start sharing it soon!

 

[Ex737Driver]

United Side

United

Operating Revenue


Revenue is money earned by the company from the sale of products and services. The primary contributors to revenue are our mainline and United Express® passenger services, followed by Travel Options by United,SM such as Economy Plus® upsell, bag fees and other offerings, cargo and other revenue.

All figures are

reported in millions​

Year-over-Year

% change Increase/(Decrease)​

1
Passenger revenue from United mainline flights, operating worldwide

$3,913​

19.8​

2
Passenger revenue from United Express regional flights

1,076​

27.5​

3
Cargo revenue represents money received from transporting freight and mail

175​

40.0​

4
In addition, the company generates revenue from other sources such as maintenance service and ground handling contracts with other carriers, interline handling fees and liquor sales

230​

16.8​

Total Operating Revenue for the Third Quarter is:

$5,394​

21.7​

Operating Expenses



Expenses are money the company spends in the ordinary course of business for costs it incurs, such as fuel, salaries, aircraft leases, and supplies, among other things. These must be subtracted from revenue.

All figures are

reported in millions​

Year-over-Year

% change Increase/(Decrease)​

1
Our largest single expense is fuel and related taxes*

$1,230​

12.9​

2
Salaries and related costs include compensation for all employees*

1,083​

16.2​

3
United pays its United Express partners to operate as an extension of the United brand to serve smaller markets and provide connections; this expense includes fuel

914​

17.9​

4
United purchased services, aircraft maintenance materials and repairs

540​

1.5​

5
Landing fees and rent paid to operate at various airports

240​

6.2​

6
We pay sales commissions, such as those to travel agents, and other sources, like global distribution systems that support reservations and ticketing

161​

11.0​

7
Depreciation and amortization is the allowance for the use of owned aircraft, aircraft parts, office equipment, ground equipment and any other assets that the company owns, which we expense over the life of the asset*

220​

2.8​

8
Aircraft rent is the cost of planes we do not own and lease from others

82​

(6.8)​

9
Finally, other expenses and items include things like hotels, per diem, telephone and utility costs, etc.

303​

(1.9)​

Total Operating Expenses* for the Third Quarter are:

$4,773​

10.7​

Total Operating Revenue

$5,394​

Less Total Operating Expenses

4,773​

Equals our Total Operating Profit

$621​

All figures are

reported in millions​

Year-over-Year

% change Increase/(Decrease)​

1
We deduct interest that we owe from our debt to finance our operations, net of interest capitalized

$(169)​

18.2​

2
We add the interest income from our company’s cash, investments, and other miscellaneous non-operating items
The sum of these two items is our non-operating expense.

20​

Then we deduct non-operating expenses from operating profit to generate a pre-tax profit of*:

$472​

3
We add income from affiliated companies. Income taxes were zero.

1​

Our Net Profit is pre-tax profit less taxes; for the third quarter, Net Profit is*:

$473​

Finally, in order to determine the portion of our net profit that is allocated to each share of common stock we divide net profit by the total number of shares to get our profit per share.

 

[mamba20]

GAAP=Generally Accepted Accounting Principles

So I guess this is good new for us at CAL as far as profit sharing this year?

 

[GuppyWN]

Holy Crap that's a lot of money.

Gup

 

[COpilot]

So I guess this is good new for us at CAL as far as profit sharing this year?

What profit sharing? That's no longer in place

 

[Twotter Driver]

What profit sharing? That's no longer in place

We DO have profit sharing as agreed to in the transition agreement! It's not the same program as we previously had, but we do have profit sharing!

 

[densoo]

What profit sharing? That's no longer in place

The C02 profit sharing sunset last year, just before things turned around (imagine that).

However, when the merger was announced the pilots were grafted into the company's rank and file employee profit sharing plan.

[FONT=OOJZIU+TimesNewRoman,Bold]

[FONT=OOJZIU+TimesNewRoman,Bold]5.1 Annual Award Pool. [/FONT][FONT=OOJZIU+TimesNewRoman]Subject to Section 5.2, the “Annual Award Pool” for any Year shall be an amount equal to [/FONT][FONT=OOJZIU+TimesNewRoman,BoldItalic]A [/FONT][FONT=OOJZIU+TimesNewRoman]multiplied by [/FONT][FONT=OOJZIU+TimesNewRoman,BoldItalic]B[/FONT][FONT=OOJZIU+TimesNewRoman], where:[/FONT]

[FONT=OOJZIU+TimesNewRoman,Italic]A [/FONT][FONT=OOJZIU+TimesNewRoman]equals the dollar amount of Pre-tax Income, if any, earned with respect to such Year multiplied by 15%; and[/FONT]

[FONT=OOJZIU+TimesNewRoman,Italic]B [/FONT][FONT=OOJZIU+TimesNewRoman]equals a fraction, the numerator of which is the total Base Pay of all Participants for such Year and the denominator of which is the sum of (i) the total Base Pay of all Participants for such Year [/FONT][FONT=OOJZIU+TimesNewRoman,Italic]plus [/FONT][FONT=OOJZIU+TimesNewRoman](ii) the total Base Pay of all Excluded Persons for such Year.[/FONT]​

[/FONT]

 

[mamba20]

The C02 profit sharing sunset last year, just before things turned around (imagine that).

However, when the merger was announced the pilots were grafted into the company's rank and file employee profit sharing plan.

So are we gonna "get some" or not?

 

[hotwing]

What profit sharing? That's no longer in place

where have you been?

 

[densoo]

So are we gonna "get some" or not?

Yes. There is an aggregate profit for the year so far. As long as they don't lose money in the 4th quarter, there will be a payout.

It is shared with just about all the employees, proportionally based on each one's income so it won't be a lot, but it will be there. It won't be like the $50K to $100K that DAL gives each of their pilots every three years, but it will be something.

 

[Sumo14]

Yes. There is an aggregate profit for the year so far. As long as they don't lose money in the 4th quarter, there will be a payout.

It is shared with just about all the employees, proportionally based on each one's income so it won't be a lot, but it will be there. It won't be like the $50K to $100K that DAL gives each of their pilots every three years, but it will be something.

IF we make an annual profit, it works out to be roughly 4-5% of gross for 2010. At least it's something, but compared to the previous program it's a joke.

 

[Ex737Driver]

IF we make an annual profit, it works out to be roughly 4-5% of gross for 2010. At least it's something, but compared to the previous program it's a joke.

Gotta remember that since big "O" is now taxing your company paid health care, your gross from 2010 is going to be at least another $8-$10 K.

 

[densoo]

Gotta remember that since big "O" is now taxing your company paid health care, your gross from 2010 is going to be at least another $8-$10 K.

Wha? Just to clarify, do you mean our gross is going to increase $8K to $10K? That would be great. How does it work?

 

[Beaver_Liquors]

Gotta remember that since big "O" is now taxing your company paid health care, your gross from 2010 is going to be at least another $8-$10 K.

I thought that was for individual plans over 10K and 15k for families, which i dont think our crap plan qualifies, and i dont think it starts until next year but i could be wrong too. They are required to print it on our w2 this year, but wont be taxed till next year

 

[COpilot]

We DO have profit sharing as agreed to in the transition agreement! It's not the same program as we previously had, but we do have profit sharing!

Woo hoooo! Same percent as before?

 

[Ex737Driver]

Wha? Just to clarify, do you mean our gross is going to increase $8K to $10K? That would be great. How does it work?

Your gross will increase for taxation purposes only. The money hasalready been paid to you in health care benefits.

You would think if they are going to show this on your W2 that you would be able to deduct it next year as well. I think the amounts to be taxed though, are still subject to change. I hope the numbers listed are correct because I just looked at mine and it says CAL paid me almost $11K last year in health benefits.

All that aside, if this amount is listed on your W2 by CAL, will it be included in your final compensation when determining your profit sharing for 2010? $500 more is $500 more.

 

[COpilot]

where have you been?

Good question, I think I was in denial (pi$$ed) after C02 profit sharing expired.

 

[densoo]

Your gross will increase for taxation purposes only. The money hasalready been paid to you in health care benefits.

You would think if they are going to show this on your W2 that you would be able to deduct it next year as well. I think the amounts to be taxed though, are still subject to change. I hope the numbers listed are correct because I just looked at mine and it says CAL paid me almost $11K last year in health benefits.

All that aside, if this amount is listed on your W2 by CAL, will it be included in your final compensation when determining your profit sharing for 2010? $500 more is $500 more.

So I assume that if one doesn't get their medical through CAL then this is a moot point for them?

 

[ualdriver]

Wow, we made a net profit commensurate with what other businesses make in other industries. The combined profit also doesn't reflect that there should be a few hundred million in synergies to be gained in the future once the airlines are fully merged. Also, UAL and CAL have some wage costs that they're going to have to pony up for just about every employee group on the property- especially the pilots who have sacrificed the most. That may cost them a few 100 million annually in itself.

Now the question for the future becomes, will the airline industry put "rational" amounts of capacity back into the market in the future so that we can continue to enjoy levels of profitability that other industries normally enjoy? Or are these "big" profits just going to attract more irrational growth by the usual suspects along with airlines that are at PowerPoint presentation level right now? Again, we'll see.....never mind a terrorist attack, hull loss, $100+ oil or God knows what else....

 

[Ex737Driver]

So I assume that if one doesn't get their medical through CAL then this is a moot point for them?

GO to ALL ABOUT ME and at the top of the page, there is a tab for your compensation. 2009 is there and it should tell you what CAL "paid" you and how much it's worth.

 

[sweptback]

Gotta remember that since big "O" is now taxing your company paid health care, your gross from 2010 is going to be at least another $8-$10 K.

That's completely incorrect. Starting in 2011, the value of company paid medical insurance is listed on your W2, but not for purposes of taxation.

And by the way, taxing company paid health care was McCain's campaign idea, not Obama's.

 

[Ex737Driver]

That's completely incorrect. Starting in 2011, the value of company paid medical insurance is listed on your W2, but not for purposes of taxation.

And by the way, taxing company paid health care was McCain's campaign idea, not Obama's.

And since it's listed on your W2, you actually think it won't be taxed? Think again. Doesn't matter whose idea it was, Obama implemented it.

 

[sweptback]

And since it's listed on your W2, you actually think it won't be taxed? Think again. Doesn't matter whose idea it was, Obama implemented it.

http://www.factcheck.org/2010/05/health-care-law-and-w-2-forms/

 

[Hutchman]

The C02 profit sharing sunset last year, just before things turned around (imagine that).

How much profit sharing did you loose out on last year? Let me help you, ZERO. CAL reported a loss for the year.

 

[AWACoff]

How much proofit sharing did you loose oout oon last year? Let me help yoou, ZEROO. CAL repoorted a looss for the year.

There ya go, you missed a couple of extra "o's".

 

[COpilot]

And since it's listed on your W2, you actually think it won't be taxed? Think again. Doesn't matter whose idea it was, Obama implemented it.

So which is it Ex73, are you correct or is fact check right?