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Hawaiian Holdings Inc Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: October 25, 2012 06:02PM
Hawaiian Holdings Inc (HA) filed Quarterly Report for the period ended 2012-09-30. Hawaiian Holdings, Inc. has a market cap of $267.9 million; its shares were traded at around $5.8 with a P/E ratio of 4.4 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 September 30, 2012 and $30.9 million at December 31, 2011. As of September 30, 2012, per the agreement with the Companys largest credit card processor, the level of credit card holdback was subject to an adjustment based on actual performance relative to certain financial triggers including the amount of unrestricted cash, level of debt service coverage and operating income measured quarterly on a trailing 12-month basis. There were no amounts subject to this holdback at September 30, 2012. As of December 31, 2011, the holdback was 25% of the applicable credit card air traffic liability.
Operating revenue was $549.3 million and $1.5 billion for the three and nine months ended September 30, 2012, respectively, a 20.5% and 20.8% increase over operating revenue of $455.9 million and $1.2 billion, respectively, for the same three and nine month periods in 2011, driven primarily by an increase in passenger revenue.
For the three months ended September 30, 2012, passenger revenue increased $84.5 million or 20.5%, as compared to the prior-year period, due to increased capacity that was partially offset by decreased yield as we faced increased competition on certain of our North America and International routes which led to a decreased load factor and decreased average fare throughout our network. For the nine months ended September 30, 2012, passenger revenue increased $234.9 million or 21.5%, as compared to the prior-year period, primarily due to increased capacity and yield. The detail of these changes is described in the table below:
North America North America revenue increased over the prior-year period by $39.9 million for the three months ended September 30, 2012, primarily due to increased capacity. For the nine months ended September 30, 2012, North America revenue increased over the prior-year period by $66.8 million, primarily due to increased capacity and yield. The capacity increases in the three and nine months ended September 30, 2012 reflect the initiation of non-stop daily routes from Honolulu to New York City, New York (launched in June 2012), the addition of a third daily year-round flight from Honolulu to Los Angeles, California (launched in June 2012), and increased frequency from Maui to the Bay Area (launched in January 2012).
Other operating revenue increased by $9.0 million or 20.9% and $18.0 million or 14.4% in the three and nine months ended September 30, 2012, respectively, as compared to the prior-year periods, primarily due to increased baggage revenue, increased 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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