WRC
14th Feb 2007, 18:50
WestJet Announces Record Year-End Results With Net Earnings of $114.7 Million
2/14/2007
Airline's record year-end diluted earnings increase to 88 cents a share
CALGARY, ALBERTA, Feb 14, 2007 (MARKET WIRE via COMTEX News Network) --
WestJet (TSX: WJA) today announced its fourth quarter and full year financial results for 2006. The Company achieved record net earnings of $26.7 million for the fourth quarter of 2006 compared to $1.0 million in 2005, an impressive 26-fold increase. For the full year 2006, net earnings were a record $114.7 million compared to $24.0 million in 2005, an increase of 377.8 per cent.
Sean Durfy, WestJet's President said today, "Our 10th year of operations was highlighted by four record quarters, optimal load factors, industry-leading on-time performance and 12-consecutive months of profitability. We generated an operating margin of 11.2 per cent, one of the best in the North American airline industry. Our excellent performance was achieved through our strong growth, ability to contain costs and our continued commitment to our guests and our people."
The Company's 2006 performance delivered diluted earnings per share of 21 cents for the quarter, up from one cent in 2005. Diluted earnings per share for the 12 months ended December 31, 2006 rose to 88 cents from 19 cents in the same period in 2005, an increase of 363.2 per cent.
Fourth quarter revenue of $459.6 million, compared to $366.8 million in the fourth quarter of 2005 was an improvement of 25.3 per cent. Year-end revenue for 2006 was $1,773.7 million, increasing from $1,392.8 million in the same period 2005, a difference of 27.4 per cent.
WestJet's 2006 fourth quarter RASM was a strong 13.9 cents, compared to 13.6 cents in the same period in 2005; an improvement of 2.2 per cent. Year-end RASM was 14.2 cents, compared to 13.0 cents in 2005, an increase of 9.2 per cent.
"Our expectations that RASM in the fourth quarter of 2006 would track to that of 2005 were met. We are very pleased with revenue of 13.9 cents per available seat mile, given that we hit our fourth quarter revenue targets by increasing capacity 23 per cent," explained Durfy.
The airline's 2006 RASM results are most significant when looked at in relationship to fourth quarter and year-end capacity increases, as measured in available seat miles (ASMs). Fourth quarter ASMs for 2006 increased to 3.3 billion from 2.7 billion in 2005, an increase of 23.3 per cent. For the whole of 2006, ASMs increased to 12.5 billion compared to 10.7 billion in 2005, an increase of 17.3 per cent.
Strong load factors throughout 2006 showed consumer's acceptance of WestJet's increased capacity. Load factor for the quarter ended December 31, 2006 was 75.5 per cent, compared to 74.7 per cent in 2005. WestJet's year-end load factor of 78.2 per cent, compared to 74.6 per cent in 2005 was an increase of 3.6 points.
Given significant fourth quarter capacity increases and favourable load factor, yield for this period was a sound 18.4 cents per passenger mile, compared to 18.3 in the same period 2005. For the full year 2006, yield was 18.1 cents per passenger mile, compared to 17.5 cents in 2005, an increase of 3.4 per cent.
A continued focus on cost management resulted in a fourth quarter decrease in cost per available seat mile (CASM) to 12.5 cents, compared to 13.3 cents in the fourth quarter 2005, a decline of 6.0 per cent. For the full year 2006, CASM was 12.6 cents compared to 12.5 cents in 2005. This is particularly significant considering oil prices in 2006 increased 17 per cent over that of 2005.
Excluding fuel, CASM in the last quarter of 2006 decreased to 9.3 cents compared to 9.7 cents in the same 2005 period, a decrease of 3.6 per cent. For the full year 2006, CASM excluding fuel was 9.2 cents, consistent with 2005.
WestJet flew 2.5 billion revenue passenger miles (RPMs) in the fourth quarter 2006, compared to 2.0 billion in the same period 2005, an increase of 24.7 per cent. Year-end 2006, the airline flew 9.8 billion RPMs compared to 8.0 billion in 2005, an increase of 23.0 per cent.
Sean Durfy went on to say, "We continue to maintain one of the most favourable balance sheets in the airline industry and ended the year with a debt to equity ratio of 2.3 to 1. Our corporate health is vibrant with significant advances in our guest loyalty and brand health metrics. We increased our presence, profile and revenue in Eastern Canada and among business travellers, and expect to see continuous improvements throughout 2007.
"Our 2006 growth came from 12-consecutive months of adding seats into the market. Our ability to match this capacity with the market's demands contributed largely to our profitable results.
"The announcement of two new sun destinations, West Palm Beach, Florida and our first international destination Nassau, Bahamas, strengthened our transborder business. Flying to U.S. sun destinations at the right times during the year has become a key component of our deployment strategy, tailoring our schedule to match the seasonal demands of the Canadian market.
"Our transborder and sun destinations further contributed to the success of WestJet Vacations. Launched in September 2006, the subsidiary of WestJet outperformed forecasted expectations in its first months of operations. WestJet Vacations has a distinct advantage over other tour operators by leveraging WestJet's aircraft, schedule and renowned guest experience, while operating in the same low-cost manner. We are looking forward to a full year of operation in 2007.
"Our strong relationship with our major charter partner, Transat Tours Canada, continues to be profitable. This association has been very beneficial and we are extremely pleased to renew this partnership through 2010.
"In an industry with historically low margins ancillary revenues including buy-on-board, headsets, service fees and pay-per-view inflight movies play an important role in maximizing our profits while enhancing our product offering for our guests. These high margin items contributed $74.8 million to revenue in 2006, an increase of 67.6 per cent over 2005.
"The reach of our network, along with our strategic route planning, has allowed us to spread our operational costs over more flying hours. Utilization of our aircraft increased five per cent to 11.9 block hours in 2006.
"While utilization played a role in our cost controls, we kept our CASM on par with last year by continuing to purchase fuel on the open market. With the retirement of our last 200-series aircraft early in the year, we now have the most modern fleet of jet aircraft in North America. Operating one type of aircraft continues to minimize our costs associated with the price of jet fuel as well as the cost of maintenance and training.
"We finished 2006 with industry-leading performance in three major airline indicators: on-time performance, completion rates and baggage. WestJet is one of only two North American airlines to achieve a top-five ranking for year-end results in all three categories, with an on-time performance(1) of 81.7 per cent; a completion rate(2) of 99.5 per cent and a baggage ratio(3) of 4.64. Our emphasis on these measures is an indication of WestJet's commitment to making our guest's experience stress-free from start to finish.
"We are confident in our ability to continue to deliver industry-leading performance through the dedication of all WestJetters and the strong leadership of the executive team. Our commitment to our guests and the success of WestJet comes from the heart of every WestJetter. We were pleased to be acknowledged throughout the year for our hard work. In 2006, Canadian Business Magazine recognized our Sales Super Centre as the best call centre in the country and our brand as one of the top three best managed in Canada. We were thrilled to receive the award for Canada's Most Admired Corporate Culture for the second year in a row, a testament to the hard work and dedication of our people.
"With such an encouraging year behind us we will leverage this success for continued growth and profitability. Our team is strong with the insight, experience and energy necessary to carry the same momentum into 2007 and beyond."
(1) On-time performance - the percentage of domestic scheduled flights that arrive within 15 minutes of the scheduled arrival time or earlier.
(2) Completion rate - the percentage of scheduled domestic flight legs flown. Calculated as the number of domestic scheduled flight legs operated divided by the number of domestic scheduled flight legs.
(3) Baggage ratio - the number of delayed/lost baggage files per every 1,000 guests flown
As at January 31, 2007, WestJet had 124,227,072 common voting shares outstanding, 5,506,137 variable voting shares outstanding and 14,644,719 stock options outstanding.
Now that's a pretty great result anywhere. Of interest to those looking for a great company to work with, bringing on another 140 or so pilots this year.
2/14/2007
Airline's record year-end diluted earnings increase to 88 cents a share
CALGARY, ALBERTA, Feb 14, 2007 (MARKET WIRE via COMTEX News Network) --
WestJet (TSX: WJA) today announced its fourth quarter and full year financial results for 2006. The Company achieved record net earnings of $26.7 million for the fourth quarter of 2006 compared to $1.0 million in 2005, an impressive 26-fold increase. For the full year 2006, net earnings were a record $114.7 million compared to $24.0 million in 2005, an increase of 377.8 per cent.
Sean Durfy, WestJet's President said today, "Our 10th year of operations was highlighted by four record quarters, optimal load factors, industry-leading on-time performance and 12-consecutive months of profitability. We generated an operating margin of 11.2 per cent, one of the best in the North American airline industry. Our excellent performance was achieved through our strong growth, ability to contain costs and our continued commitment to our guests and our people."
The Company's 2006 performance delivered diluted earnings per share of 21 cents for the quarter, up from one cent in 2005. Diluted earnings per share for the 12 months ended December 31, 2006 rose to 88 cents from 19 cents in the same period in 2005, an increase of 363.2 per cent.
Fourth quarter revenue of $459.6 million, compared to $366.8 million in the fourth quarter of 2005 was an improvement of 25.3 per cent. Year-end revenue for 2006 was $1,773.7 million, increasing from $1,392.8 million in the same period 2005, a difference of 27.4 per cent.
WestJet's 2006 fourth quarter RASM was a strong 13.9 cents, compared to 13.6 cents in the same period in 2005; an improvement of 2.2 per cent. Year-end RASM was 14.2 cents, compared to 13.0 cents in 2005, an increase of 9.2 per cent.
"Our expectations that RASM in the fourth quarter of 2006 would track to that of 2005 were met. We are very pleased with revenue of 13.9 cents per available seat mile, given that we hit our fourth quarter revenue targets by increasing capacity 23 per cent," explained Durfy.
The airline's 2006 RASM results are most significant when looked at in relationship to fourth quarter and year-end capacity increases, as measured in available seat miles (ASMs). Fourth quarter ASMs for 2006 increased to 3.3 billion from 2.7 billion in 2005, an increase of 23.3 per cent. For the whole of 2006, ASMs increased to 12.5 billion compared to 10.7 billion in 2005, an increase of 17.3 per cent.
Strong load factors throughout 2006 showed consumer's acceptance of WestJet's increased capacity. Load factor for the quarter ended December 31, 2006 was 75.5 per cent, compared to 74.7 per cent in 2005. WestJet's year-end load factor of 78.2 per cent, compared to 74.6 per cent in 2005 was an increase of 3.6 points.
Given significant fourth quarter capacity increases and favourable load factor, yield for this period was a sound 18.4 cents per passenger mile, compared to 18.3 in the same period 2005. For the full year 2006, yield was 18.1 cents per passenger mile, compared to 17.5 cents in 2005, an increase of 3.4 per cent.
A continued focus on cost management resulted in a fourth quarter decrease in cost per available seat mile (CASM) to 12.5 cents, compared to 13.3 cents in the fourth quarter 2005, a decline of 6.0 per cent. For the full year 2006, CASM was 12.6 cents compared to 12.5 cents in 2005. This is particularly significant considering oil prices in 2006 increased 17 per cent over that of 2005.
Excluding fuel, CASM in the last quarter of 2006 decreased to 9.3 cents compared to 9.7 cents in the same 2005 period, a decrease of 3.6 per cent. For the full year 2006, CASM excluding fuel was 9.2 cents, consistent with 2005.
WestJet flew 2.5 billion revenue passenger miles (RPMs) in the fourth quarter 2006, compared to 2.0 billion in the same period 2005, an increase of 24.7 per cent. Year-end 2006, the airline flew 9.8 billion RPMs compared to 8.0 billion in 2005, an increase of 23.0 per cent.
Sean Durfy went on to say, "We continue to maintain one of the most favourable balance sheets in the airline industry and ended the year with a debt to equity ratio of 2.3 to 1. Our corporate health is vibrant with significant advances in our guest loyalty and brand health metrics. We increased our presence, profile and revenue in Eastern Canada and among business travellers, and expect to see continuous improvements throughout 2007.
"Our 2006 growth came from 12-consecutive months of adding seats into the market. Our ability to match this capacity with the market's demands contributed largely to our profitable results.
"The announcement of two new sun destinations, West Palm Beach, Florida and our first international destination Nassau, Bahamas, strengthened our transborder business. Flying to U.S. sun destinations at the right times during the year has become a key component of our deployment strategy, tailoring our schedule to match the seasonal demands of the Canadian market.
"Our transborder and sun destinations further contributed to the success of WestJet Vacations. Launched in September 2006, the subsidiary of WestJet outperformed forecasted expectations in its first months of operations. WestJet Vacations has a distinct advantage over other tour operators by leveraging WestJet's aircraft, schedule and renowned guest experience, while operating in the same low-cost manner. We are looking forward to a full year of operation in 2007.
"Our strong relationship with our major charter partner, Transat Tours Canada, continues to be profitable. This association has been very beneficial and we are extremely pleased to renew this partnership through 2010.
"In an industry with historically low margins ancillary revenues including buy-on-board, headsets, service fees and pay-per-view inflight movies play an important role in maximizing our profits while enhancing our product offering for our guests. These high margin items contributed $74.8 million to revenue in 2006, an increase of 67.6 per cent over 2005.
"The reach of our network, along with our strategic route planning, has allowed us to spread our operational costs over more flying hours. Utilization of our aircraft increased five per cent to 11.9 block hours in 2006.
"While utilization played a role in our cost controls, we kept our CASM on par with last year by continuing to purchase fuel on the open market. With the retirement of our last 200-series aircraft early in the year, we now have the most modern fleet of jet aircraft in North America. Operating one type of aircraft continues to minimize our costs associated with the price of jet fuel as well as the cost of maintenance and training.
"We finished 2006 with industry-leading performance in three major airline indicators: on-time performance, completion rates and baggage. WestJet is one of only two North American airlines to achieve a top-five ranking for year-end results in all three categories, with an on-time performance(1) of 81.7 per cent; a completion rate(2) of 99.5 per cent and a baggage ratio(3) of 4.64. Our emphasis on these measures is an indication of WestJet's commitment to making our guest's experience stress-free from start to finish.
"We are confident in our ability to continue to deliver industry-leading performance through the dedication of all WestJetters and the strong leadership of the executive team. Our commitment to our guests and the success of WestJet comes from the heart of every WestJetter. We were pleased to be acknowledged throughout the year for our hard work. In 2006, Canadian Business Magazine recognized our Sales Super Centre as the best call centre in the country and our brand as one of the top three best managed in Canada. We were thrilled to receive the award for Canada's Most Admired Corporate Culture for the second year in a row, a testament to the hard work and dedication of our people.
"With such an encouraging year behind us we will leverage this success for continued growth and profitability. Our team is strong with the insight, experience and energy necessary to carry the same momentum into 2007 and beyond."
(1) On-time performance - the percentage of domestic scheduled flights that arrive within 15 minutes of the scheduled arrival time or earlier.
(2) Completion rate - the percentage of scheduled domestic flight legs flown. Calculated as the number of domestic scheduled flight legs operated divided by the number of domestic scheduled flight legs.
(3) Baggage ratio - the number of delayed/lost baggage files per every 1,000 guests flown
As at January 31, 2007, WestJet had 124,227,072 common voting shares outstanding, 5,506,137 variable voting shares outstanding and 14,644,719 stock options outstanding.
Now that's a pretty great result anywhere. Of interest to those looking for a great company to work with, bringing on another 140 or so pilots this year.