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UP (Wheels Up Experience) Operating Income : $-260.1 Mil (TTM As of Dec. 2024)


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What is Wheels Up Experience Operating Income?

Wheels Up Experience's Operating Income for the three months ended in Dec. 2024 was $-53.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was $-260.1 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Wheels Up Experience's Operating Income for the three months ended in Dec. 2024 was $-53.7 Mil. Wheels Up Experience's Revenue for the three months ended in Dec. 2024 was $204.8 Mil. Therefore, Wheels Up Experience's Operating Margin % for the quarter that ended in Dec. 2024 was -26.23%.

Warning Sign:

Wheels Up Experience Inc operating margin has been in a 5-year decline. The average rate of decline per year is -18.7%.

Wheels Up Experience's 5-Year average Growth Rate for Operating Margin % was -18.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Wheels Up Experience's annualized ROC % for the quarter that ended in Dec. 2024 was -13.70%. Wheels Up Experience's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 was -75.94%.


Wheels Up Experience Operating Income Historical Data

The historical data trend for Wheels Up Experience's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Wheels Up Experience Operating Income Chart

Wheels Up Experience Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Income
Get a 7-Day Free Trial -62.97 -204.55 -384.38 -334.30 -260.12

Wheels Up Experience Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -70.53 -85.31 -78.96 -42.12 -53.73

Wheels Up Experience Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-260.1 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Wheels Up Experience  (NYSE:UP) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Wheels Up Experience's annualized ROC % for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=-214.928 * ( 1 - -0.57% )/( (1530.87 + 1623.765)/ 2 )
=-216.1530896/1577.3175
=-13.70 %

where

Invested Capital(Q: Sep. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1043.137 - 129.366 - ( 115.909 - max(0, 888.409 - 271.31+115.909))
=1530.87

Invested Capital(Q: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1158.011 - 119.461 - ( 216.426 - max(0, 917.284 - 332.069+216.426))
=1623.765

Note: The Operating Income data used here is four times the quarterly (Dec. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Wheels Up Experience's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2024  Q: Dec. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-275.82/( ( (321.122 + max(-702.96, 0)) + (405.25 + max(-757.122, 0)) )/ 2 )
=-275.82/( ( 321.122 + 405.25 )/ 2 )
=-275.82/363.186
=-75.94 %

where Working Capital is:

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(32.029 + 22.539 + 100.833) - (129.366 + 711.097 + 17.898)
=-702.96

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(32.316 + 12.177 + 69.968) - (119.461 + 749.432 + 2.6899999999999)
=-757.122

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Wheels Up Experience's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2024 )/Revenue (Q: Dec. 2024 )
=-53.732/204.815
=-26.23 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Wheels Up Experience Operating Income Related Terms

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Wheels Up Experience Business Description

Traded in Other Exchanges
N/A
Address
2135 American Way, Chamblee, GA, USA, 30341
Wheels Up Experience Inc is a provider of on-demand private aviation in the United States. It is pioneering data and technology-driven solutions that connect consumers to safety-vetted and verified private aircraft. It connects private flyers to aircraft, and one another, through an open platform that enables life's most important experiences. Its offering is delivered through a mix of programmatic and charter options that strategically utilize its owned and leased aircraft fleet and an "asset-light" charter model to deliver a greater range of global travel alternatives. The company operates in a single operating and reportable segment, private aviation services. Geographically the company generates the majority of its revenue from the United States.
Executives
Donald Lee Moak director 601 WEST 26TH STREET, SUITE 900, NEW YORK NY 10001
Mark Briffa officer: Chief Commercial Officer 601 WEST 26TH ST. SUITE 900, NEW YORK NY 10001
Laura Heltebran officer: Chief Legal Officer C/O WHEELS UP EXPERIENCE INC., 601 WEST 26TH STREET, NEW YORK NY 10001
Knighthead Opportunities Capital Management, Llc 10 percent owner 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017
Andrew Stephen Davis director 500 OLD DOMINION WAY, THOMASVILLE NC 27360
Certares Opportunities Llc 10 percent owner 350 MADISON AVENUE, 8TH FLOOR, NEW YORK NY 10017
Adam Ross Zirkin director 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017
Jeffrey Nedelman director 8501 WILLIAMS ROAD, ESTERO FL 33928
Alain Bellemare director C/O DELTA AIR LINES, INC., DEPT. 981, P.O. BOX 20574, ATLANTA GA 30320
Cantor Adam Corey director 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017
Ck Wheels Llc 10 percent owner 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017
George N Mattson director C/O DELTA AIR LINES, INC., P.O. BOX 20574, DEPT. 981, ATLANTA GA 30320
Ck Opportunities Gp, Llc 10 percent owner 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017
Zachary George Lazar director 350 MADISON AVENUE, 8TH FLOOR, NEW YORK NY 10017
Daniel C. Janki director 5020 WESTON PARKWAY, SUITE 400, CARY NC 27513