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Hawaiian Holdings Inc Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: July 26, 2012 11:13AM
Hawaiian Holdings Inc (HA) filed Quarterly Report for the period ended 2012-06-30. Hawaiian Holdings, Inc. has a market cap of $310.5 million; its shares were traded at around $5.88 with a P/E ratio of 7.6 and P/S ratio of 0.2. Hawaiian Holdings, Inc. had an annual average earning growth of 24.3% over the past 5 years.
Highlight of Business Operations:Under the Companys bank-issued credit card processing agreements, certain proceeds from advance ticket sales may be held back to serve as collateral to cover any possible chargebacks or other disputed charges that may occur. These holdbacks, which are included in restricted cash in the Companys unaudited Consolidated Balance Sheets, totaled $5.0 million at June 30, 2012 and $30.9 million at December 31, 2011. The agreement with the Companys largest credit card processor also contains financial triggers for additional holdbacks, which are based upon, among other things, the amount of unrestricted cash, level of debt service coverage and operating income measured quarterly on a trailing 12-month basis. As of June 30, 2012, there were no amounts subject to this holdback. As of December 31, 2011, the holdback was 25% of the applicable credit card air traffic liability. Under the terms of this credit card agreement, the level of credit card holdback is subject to adjustment based on actual performance relative to these specific triggers.
In the three and six months ended June 30, 2012, we recorded net income of $3.9 million or $0.07 per diluted share and $11.2 million or $0.21 per diluted share, respectively. In the three and six months ended June 30, 2011, we recorded net losses of $50.0 million or $0.99 per basic and diluted share and $49.2 million or $0.97 per basic and diluted share, respectively, which includes the impact of a non-recurring and non-cash pre-tax lease termination expense of $70.0 million related the purchase of fifteen Boeing 717-200 previously under lease agreements. Our improved performance is due to increases in operating revenue, primarily due to increases in passenger revenue, and partially offset by increases in operating expenses due to our continued growth.
Operating revenue was $484.6 million and $920.0 million for the three and six months ended June 30, 2012, respectively, a 22.7% and 21.0% increase over operating revenue of $395.0 million and $760.6 million for the same three and six month periods in 2011, driven primarily by an increase in passenger revenue.
Passenger revenue increased $84.7 million or 24.0% and $150.4 million or 22.2% for the three and six months ended June 30, 2012, respectively, as compared to the same three and six month periods in 2011, primarily due to increased yields throughout our networks and increased capacity on Neighbor Island and International routes. The detail of these changes is described in the table below:
Other operating revenue increased by $4.8 million or 11.5% and $9.0 million or 11.0% in the three and six months ended June 30, 2012, respectively, as compared to the three and six months ended June 30, 2011, primarily due to increased baggage revenue, an increase in cargo revenue due to the additional cargo capacity provided by the Airbus A330-200 aircraft and the expansion of our network and increased charter revenue.
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