Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
The same "blah blah blah" effect that Ebola scam was....
DIVVY increase and debt pay down. The whales shall come crawling. Just no more buyback....
Look at HA +14% man!
Here we are back at 16,000. Relief rally days keep being followed by drops.
SAVE, AAL, HA, VA I like
" Rumors I am hearing about are replacement of fiat currency by a worldwide asset backed currency. Should this occur lots of the Wall Street folks will go bust and be out of their jobs as most of the fraud is eliminated from our markets."
Can you explain this further?
Interesting insight here. Nice post...
When Apple and Netflix don't breakout on strong reports, and instead drop, it makes me concerned for this market....
Headlines all over say nothing but slowing growth. Record anything these days mean nothing.
Amended Statement of Ownership (sc 13g/a)
Source: Edgar (US Regulatory)
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No: 6)
JETBLUE AIRWAYS CORP.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
477143101
(CUSIP Number)
December 31, 2015
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to
which this Schedule is filed:
[X] Rule 13d-1(b)
[ ] Rule 13d-1(c)
[ ] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
CUSIP No. 477143101
(1)Names of reporting persons. BlackRock, Inc.
(2) Check the appropriate box if a member of a group
(a) [ ]
(b) [X]
(3) SEC use only
(4) Citizenship or place of organization
Delaware
Number of shares beneficially owned by each reporting person with:
(5) Sole voting power
21115411
(6) Shared voting power
NONE
(7) Sole dispositive power
22089915
(8) Shared dispositive power
NONE
(9) Aggregate amount beneficially owned by each reporting person
22089915
(10) Check if the aggregate amount in Row (9) excludes certain shares
(11) Percent of class represented by amount in Row 9
7.0%
(12) Type of reporting person
HC
Item 1.
Item 1(a) Name of issuer:
-----------------------------------------------------------------------
JETBLUE AIRWAYS CORP.
Item 1(b) Address of issuer's principal executive offices:
-----------------------------------------------------------------------
27-01 QUEENS PLAZA NORTH
LONG ISLAND CITY NY 11101
Item 2.
2(a) Name of person filing:
----------------------------------------------------------------------
BlackRock, Inc.
2(b) Address or principal business office or, if none, residence:
-----------------------------------------------------------------------
BlackRock Inc.
55 East 52nd Street
New York, NY 10055
2(c) Citizenship:
--------------------------------------------------------------------
See Item 4 of Cover Page
2(d) Title of class of securities:
-------------------------------------------------------------------
Common Stock
2(e) CUSIP No.:
See Cover Page
Item 3.
If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b) or (c),
check whether the person filing is a:
[ ] Broker or dealer registered under Section 15 of the Act;
[ ] Bank as defined in Section 3(a)(6) of the Act;
[ ] Insurance company as defined in Section 3(a)(19) of the Act;
[ ] Investment company registered under Section 8 of the
Investment Company Act of 1940;
[ ] An investment adviser in accordance with Rule 13d-1(b)(1)(ii)(E);
[ ] An employee benefit plan or endowment fund in accordance with
Rule 13d-1(b)(1)(ii)(F);
[X] A parent holding company or control person in accordance with
Rule 13d-1(b)(1)(ii)(G);
[ ] A savings associations as defined in Section 3(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1813);
[ ] A church plan that is excluded from the definition of an
investment company under section 3(c)(14) of the Investment Company
Act of 1940;
[ ] A non-U.S. institution in accordance with
Rule 240.13d-1(b)(1)(ii)(J);
[ ] Group, in accordance with Rule 240.13d-1(b)(1)(ii)(K). If filing
as a non-U.S. institution in accordance with
Rule 240.13d-1(b)(1)(ii)(J), please specify the type of
institution:
Item 4. Ownership
Provide the following information regarding the aggregate number
and percentage of the class of securities of the issuer identified in Item 1.
Amount beneficially owned:
22089915
Percent of class
7.0%
Number of shares as to which such person has:
Sole power to vote or to direct the vote
21115411
Shared power to vote or to direct the vote
NONE
Sole power to dispose or to direct the disposition of
22089915
Shared power to dispose or to direct the disposition of
NONE
Item 5.
Ownership of 5 Percent or Less of a Class. If this statement is being
filed to report the fact that as of the date hereof the reporting person
has ceased to be the beneficial owner of more than 5 percent of the
class of securities, check the following [ ].
Item 6. Ownership of More than 5 Percent on Behalf of Another Person
If any other person is known to have the right to receive or the power
to direct the receipt of dividends from, or the proceeds from the sale
of, such securities, a statement to that effect should be included in
response to this item and, if such interest relates to more than 5 percent
of the class, such person should be identified. A listing of the
shareholders of an investment company registered under the Investment
Company Act of 1940 or the beneficiaries of employee benefit plan,
pension fund or endowment fund is not required.
Various persons have the right to receive or the power to direct
the receipt of dividends from, or the proceeds from the sale of
the common stock of
JETBLUE AIRWAYS CORP.
No one person's interest in the common stock of
JETBLUE AIRWAYS CORP.
is more than five percent of the total outstanding common shares.
Item 7. Identification and Classification of the Subsidiary Which
Acquired the Security Being Reported on by the Parent Holding
Company or Control Person.
See Exhibit A
Item 8. Identification and Classification of Members of the Group
If a group has filed this schedule pursuant to Rule 13d-1(b)(ii)(J),
so indicate under Item 3(j) and attach an exhibit stating the identity
and Item 3 classification of each member of the group. If a group
has filed this schedule pursuant to Rule 13d-1(c) or Rule 13d-1(d),
attach an exhibit stating the identity of each member of the group.
Item 9. Notice of Dissolution of Group
Notice of dissolution of a group may be furnished as an exhibit
stating the date of the dissolution and that all further filings with
respect to transactions in the security reported on will be filed,
if required, by members of the group, in their individual capacity.
See Item 5.
Item 10. Certifications
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired and are
held in the ordinary course of business and were not acquired
and are not held for the purpose of or with the effect of changing
or influencing the control of the issuer of the securities and were
not acquired and are not held in connection with or as a participant
in any transaction having that purpose or effect.
Signature.
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement
is true, complete and correct.
Dated: January 22, 2016
BlackRock, Inc.
Signature: Spencer Fleming
-------------------------------------------
Name/Title Attorney-In-Fact
The original statement shall be signed by each person on whose
behalf the statement is filed or his authorized representative.
If the statement is signed on behalf of a person by his authorized
representative other than an executive officer or general partner
of the filing person, evidence of the representative's authority to
sign on behalf of such person shall be filed with the statement,
provided, however, that a power of attorney for this purpose
which is already on file with the Commission may be incorporated
by reference. The name and any title of each person who
signs the statement shall be typed or printed beneath his signature.
Attention: Intentional misstatements or omissions of fact constitute
Federal criminal violations (see 18 U.S.C. 1001).
Exhibit A
Subsidiary
BlackRock Advisors (UK) Limited
BlackRock Advisors, LLC
BlackRock Asset Management Canada Limited
BlackRock Financial Management, Inc.
BlackRock Fund Advisors
BlackRock Institutional Trust Company, N.A.
BlackRock Investment Management (UK) Ltd
BlackRock Investment Management, LLC
BlackRock Japan Co Ltd
Xulu, Inc.
*Entity beneficially owns 5% or greater of the outstanding
shares of the security class being reported on this
Schedule 13G.
Exhibit B
POWER OF ATTORNEY
The undersigned, BLACKROCK, INC., a corporation duly organized
under the laws of the State of Delaware, United States (the
"Company"), does hereby make, constitute and appoint each of
Matthew Mallow, Chris Meade, Howard Surloff, Dan Waltcher,
Georgina Fogo, Charles Park, Enda McMahon, Carsten Otto,
Con Tzatzakis, Karen Clark, Andrew Crain, Herm Howerton,
David Maryles, Daniel Ronnen, John Stelley, John Ardley,
Maureen Gleeson and Spencer Fleming acting severally, as its
true and lawful attorneys-in-fact, for the purpose of, from time to
time, executing in its name and on its behalf, whether the
Company is acting individually or as representative of others,
any and all documents, certificates, instruments, statements, other
filings and amendments to the foregoing (collectively, "documents")
determined by such person to be necessary or appropriate to
comply with ownership or control-person reporting requirements
imposed by any United States or non-United States governmental
or regulatory authority, Including without limitation Forms 3, 4, 5,
13D, 13F, 13G and 13H and any amendments to any of the
Foregoing as may be required to be filed with the Securities and
Exchange Commission, and delivering, furnishing or filing any
such documents with the appropriate governmental, regulatory
authority or other person, and giving and granting to each such
attorney-in-fact power and authority to act in the premises as fully
and to all intents and purposes as the Company might or could
do if personally present by one of its authorized signatories,
hereby ratifying and confirming all that said attorney-in-fact shall
lawfully do or cause to be done by virtue hereof. Any such
determination by an attorney-in-fact named herein shall be
conclusively evidenced by such person's execution, delivery,
furnishing or filing of the applicable document.
This power of attorney shall expressly revoke the power of attorney
dated 1st day of October, 2015 in respect of the subject matter hereof,
shall be valid from the date hereof and shall remain in full force and
effect until either revoked in writing by the Company, or, in respect of
any attorney-in-fact named herein, until such person ceases to be an
employee of the Company or one of its affiliates.
IN WITNESS WHEREOF, the undersigned has caused this power of
attorney to be executed as of this 8th day of December, 2015.
BLACKROCK, INC.
By:_ /s/ Chris Jones
Name: Chris Jones
Title: Chief Investment Officer
Wow check 13g filed AH. Blackrock 7% stake. Looks like over 22 million shares.
Apple Reports Slowing Growth in iPhone Sales--Update
Source: Dow Jones News
By Daisuke Wakabayashi
Apple Inc. said iPhone sales grew at the slowest pace since its introduction in 2007 and forecast that revenue in the current quarter will decline at the steepest rate in 15 years, signaling an end to its recent period of hypergrowth.
IPhone sales boomed last year after the introduction of larger-screen models in late 2014, but Apple's newest iPhones incorporate fewer noticeable changes and haven't ignited as much enthusiasm among consumers. Apple also said its results suffered from the effects of the strong dollar.
The slowdown in iPhone sales, which account for roughly two-thirds of Apple's revenue, raises questions about Apple's growth. Sales of the iPad have been falling for two years, and sales of Mac computers, a recent area of strength, fell in the most recent quarter.
Apple has struggled to get a highly anticipated streaming TV service off the ground. It is working on an electric car, but that project is years away, and its leader is leaving the company.
In an interview with The Wall Street Journal, Apple Chief Executive Tim Cook said he sees future gains for iPad, continued growth from services such as Apple Music and other projects.
"We don't live in 90-day quarters, and we don't invest in 90-day quarters," said Mr. Cook. "I'm so convinced that the things we are doing is right and the assets we have are enormous."
The company said it sold 74.77 million iPhones in its fiscal first quarter ended Dec. 26, surpassing sales of 74.5 million units a year earlier. The less-than-1% increase fell short of analysts' estimates of 76.54 million units in the quarter.
For the current quarter ending March, Apple said it sees revenue of $50 billion to $53 billion, well below estimated revenue of $55.47 billion from analysts polled by Thomson Reuters. At the midpoint of $51.5 billion, that would mark an 11% decline from the same quarter a year earlier, the worst such decline at Apple since the summer of 2001.
Profitability will suffer, too: Apple projected its gross margin, the portion of revenue after production costs, would be between 39% and 39.5%, compared with consensus estimates of 39.97%.
Shares of Apple, down 13% over the past three months, added 29 cents to $100.28 in after-hours trading.
For the three months ended Dec. 26, Apple said net income rose 1.9% to $18.36 billion from $18.02 billion in the year-ago period. Earnings per share rose more sharply, to $3.28 from $3.06, reflecting Apple's active share-buyback program.
Revenue rose 1.7% to $75.87 billion from $74.6 billion in the same period a year earlier. That was the slowest rate of growth since June 2013--just before the introduction of the iPhone 5S--when Apple's revenue rose 0.9%.
Analysts polled by Thomson Reuters estimated that Apple would post earnings of $3.23 a share on revenue of $76.6 billion.
Apple said the rising value of the U.S. dollar had hurt revenue. Without the currency effect, Apple said revenue would have risen 8% compared with a year earlier. Two-thirds of Apple's revenue comes from overseas.
Apple said what would have been $100 in foreign revenue in September 2014 amounted to $85 at the end of December 2015.
Apple said it has implemented currency hedges, raised prices in several markets, and squeezed suppliers for certain concessions to combat the currency impact.
With its shares down 24% since July and concerns about the company fixated around iPhone sales, Apple on Tuesday sought to reframe the way investors see the company.
For the first time, Apple disclosed that it surpassed about one billion active devices, including iPhones, iPads, Macs, Apple TV and other devices. Apple said the statistic includes only devices on which users had "engaged with" such as downloading an app, song or movie in the past 90 days.
The company said those devices generated $5.5 billion in services revenue in the quarter ended December, up 15% from the same period a year earlier. Apple said this business has margins in line with what it announced for the entire company.
Write to Daisuke Wakabayashi at Daisuke.Wakabayashi@wsj.com
(END) Dow Jones Newswires
January 26, 2016 16:57 ET (21:57 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Oh ok thanks
Both NFLX and APPL go nowhere on earnings. Very concerning....
No good deed goes unpunished
Has to be the margin guidance. Even still that's pretty decent guidance considering all the global sh**.
Agreed.
Huge success yes, though if I had to guess why the choppy trading I'd say maybe margin guidance below the 40 in Q4. Waiting on the CC boom.
Apple Reports Record First Quarter Results
Source: Business Wire
iPhone, Apple Watch, Services & Apple TV Drive All-time Record Revenue
Results Produce Record Quarterly Profit of $18.4 Billion
Apple® today announced financial results for its fiscal 2016 first quarter ended December 26, 2015. The Company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion, or $3.28 per diluted share. These results compare to revenue of $74.6 billion and net income of $18 billion, or $3.06 per diluted share, in the year-ago quarter. Gross margin was 40.1 percent compared to 39.9 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.
“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” said Tim Cook, Apple’s CEO. “The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”
“Our record sales and strong margins drove all-time records for net income and EPS in spite of a very difficult macroeconomic environment,” said Luca Maestri, Apple’s CFO. “We generated operating cash flow of $27.5 billion during the quarter, and returned over $9 billion to investors through share repurchases and dividends. We have now completed $153 billion of our $200 billion capital return program.”
Apple is providing the following guidance for its fiscal 2016 second quarter:
• revenue between $50 billion and $53 billion
• gross margin between 39 percent and 39.5 percent
• operating expenses between $6 billion and $6.1 billion
• other income/(expense) of $325 million
• tax rate of 25.5 percent
Apple’s board of directors has declared a cash dividend of $.52 per share of the Company’s common stock. The dividend is payable on February 11, 2016, to shareholders of record as of the close of business on February 8, 2016.
Apple will provide live streaming of its Q1 2016 financial results conference call beginning at 2:00 p.m. PST on January 26, 2016 at www.apple.com/investor/earnings-call/. This webcast will also be available for replay for approximately two weeks thereafter.
Q1’16 Earnings Supplemental Material
This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 26, 2015, and its Form 10-Q for the fiscal quarter ended December 26, 2015 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, OS X, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.
NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr), or call Apple’s Media Helpline at (408) 974-2042.
© 2016 Apple Inc. All rights reserved. Apple and the Apple logo are trademarks of Apple. Other company and product names may be trademarks of their respective owners.
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except number of shares which are reflected in thousands and per share amounts)
Three Months Ended
December 26,
2015
December 27,
2014
Net sales $ 75,872 $ 74,599
Cost of sales (1) 45,449 44,858
Gross margin 30,423 29,741
Operating expenses:
Research and development (1) 2,404 1,895
Selling, general and administrative (1) 3,848 3,600
Total operating expenses 6,252 5,495
Operating income 24,171 24,246
Other income/(expense), net 402 170
Income before provision for income taxes 24,573 24,416
Provision for income taxes 6,212 6,392
Net income $ 18,361 $ 18,024
Earnings per share:
Basic $ 3.30 $ 3.08
Diluted $ 3.28 $ 3.06
Shares used in computing earnings per share:
Basic 5,558,930 5,843,082
Diluted 5,594,127 5,881,803
Cash dividends declared per share $ 0.52 $ 0.47
(1) Includes share-based compensation expense as follows:
Cost of sales $ 204 $ 140
Research and development $ 466 $ 374
Selling, general and administrative $ 408 $ 374
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in thousands and par value)
December 26,
2015
September 26,
2015
ASSETS:
Current assets:
Cash and cash equivalents $ 16,689 $ 21,120
Short-term marketable securities 21,385 20,481
Accounts receivable, less allowances of $63 in each period 12,953 16,849
Inventories 2,451 2,349
Vendor non-trade receivables 11,668 13,494
Other current assets 11,073 15,085
Total current assets 76,219 89,378
Long-term marketable securities 177,665 164,065
Property, plant and equipment, net 22,300 22,471
Goodwill 5,202 5,116
Acquired intangible assets, net 3,924 3,893
Other non-current assets 7,974 5,556
Total assets $ 293,284 $ 290,479
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable $ 33,312 $ 35,490
Accrued expenses 24,032 25,181
Deferred revenue 8,989 8,940
Commercial paper 7,259 8,499
Current portion of long-term debt 2,500 2,500
Total current liabilities 76,092 80,610
Deferred revenue, non-current 3,546 3,624
Long-term debt 53,204 53,463
Other non-current liabilities 32,175 33,427
Total liabilities 165,017 171,124
Commitments and contingencies
Shareholders' equity:
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,544,487 and 5,578,753 shares issued and outstanding, respectively 28,253 27,416
Retained earnings 101,494 92,284
Accumulated other comprehensive income/(loss) (1,480) (345)
Total shareholders' equity 128,267 119,355
Total liabilities and shareholders' equity $ 293,284 $ 290,479
Apple Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Three Months Ended
December 26, 2015 December 27, 2014
Cash and cash equivalents, beginning of the period $ 21,120 $ 13,844
Operating activities:
Net income 18,361 18,024
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization 2,954 2,575
Share-based compensation expense 1,078 888
Deferred income tax expense 1,592 2,197
Changes in operating assets and liabilities:
Accounts receivable, net 3,896 751
Inventories (102) (172)
Vendor non-trade receivables 1,826 (3,508)
Other current and non-current assets (893) (1,648)
Accounts payable (852) 9,003
Deferred revenue (29) 945
Other current and non-current liabilities (368) 4,667
Cash generated by operating activities 27,463 33,722
Investing activities:
Purchases of marketable securities (47,836) (44,915)
Proceeds from maturities of marketable securities 3,514 2,807
Proceeds from sales of marketable securities 28,262 24,166
Payments made in connection with business acquisitions, net (86) (23)
Payments for acquisition of property, plant and equipment (3,612) (3,217)
Payments for acquisition of intangible assets (394) (48)
Other (298) 65
Cash used in investing activities (20,450) (21,165)
Financing activities:
Proceeds from issuance of common stock 1 80
Excess tax benefits from equity awards 224 264
Payments for taxes related to net share settlement of equity awards (597) (512)
Payments for dividends and dividend equivalents (2,969) (2,801)
Repurchase of common stock (6,863) (5,030)
Proceeds from issuance of term debt, net 0 3,485
Change in commercial paper, net (1,240) (2,409)
Cash used in financing activities (11,444) (6,923)
Increase/(decrease) in cash and cash equivalents (4,431) 5,634
Cash and cash equivalents, end of the period $ 16,689 $ 19,478
Supplemental cash flow disclosure:
Cash paid for income taxes, net $ 3,398 $ 3,869
Cash paid for interest $ 396 $ 202
Apple Inc.
Q1 2016 Unaudited Summary Data
(Units in thousands, Revenue in millions)
Q1 2016 Q4 2015 Q1 2015 Sequential Change Year/Year Change
Operating Segments Revenue Revenue Revenue Revenue Revenue
Americas $29,325 $21,773 $30,566 35% - 4%
Europe 17,932 10,577 17,214 70% 4%
Greater China 18,373 12,518 16,144 47% 14%
Japan 4,794 3,929 5,448 22% - 12%
Rest of Asia Pacific 5,448 2,704 5,227 101% 4%
Total Apple $75,872 $51,501 $74,599 47% 2%
Q1 2016 Q4 2015 Q1 2015 Sequential Change Year/Year Change
Product Summary Units Revenue Units Revenue Units Revenue Units Revenue Units Revenue
iPhone (1) 74,779 $51,635 48,046 $32,209 74,468 $51,182 56% 60% 0% 1%
iPad (1) 16,122 7,084 9,883 4,276 21,419 8,985 63% 66% - 25% - 21%
Mac (1) 5,312 6,746 5,709 6,882 5,519 6,944
- 7%
- 2% - 4% - 3%
Services (2) 6,056 5,086 4,799 19% 26%
Other Products (1)(3) 4,351 3,048 2,689 43% 62%
Total Apple $75,872 $51,501 $74,599 47% 2%
(1)
Includes deferrals and amortization of related software upgrade rights and non-software services.
(2)
Includes revenue from Internet Services, AppleCare, Apple Pay, licensing and other services.
(3)
Includes sales of Apple TV, Apple Watch, Beats products, iPod and Apple-branded and third-party accessories.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160126006616/en/
Apple
Press:
Kristin Huguet, 408-974-2414
khuguet@apple.com
or
Investor Relations:
Nancy Paxton, 408-974-5420
paxton1@apple.com
Joan Hoover, 408-974-4570
hoover1@apple.com
Beware of those bounces that don't hold. Same pattern we've been seeing. Days like this have been followed by a slaughterfest. I simply suspect that people are just waiting an extra day or so to make sure it holds as 16,000 has been a magnet lately. Probably just testing it several times like August.
Agreed
DAL -2%, LUV -2%, ALK -4%, SAVE -4%, SKYW -4%.
Looks like everyone except JBLU and VA took a beating.
Heavy large block selling last 30 mins. Hoping market recovers tomorrow.
Side note: Dow 16k is a magnet...
Well, I see flights taking off from Reagan, Dulles and BWI in the area today. So that's good.
I think we're at 3 feet now sheesh.
Expecting 2 feet. I'm all good and stocked up here. Food, water, beer, fire place and movies all weekend.
Very nice D4.
Cheers.
Sorry I thought this was AAL board post my fault.
I think we may fly JBLU there. We were considering private jet like I did for Cali/FL, but there's just too many of us going for a week (lots of luggage).
If we miss they'd hose us for 8%
Woodman and his Daddy behind bars yet? JW
If you're playing this for earnings, yesterday was the day to be buying. You play this for the run up into earnings and sell the news. At least that's what history tells us here.
I'm heading to Cuba in May..
They missed and are green. Hey I won't complain about a green market day.
$44!
Record numbers are great, but I find it concerning that these carriers are missing and in line with fuel so cheap. How can that be possible? What are your thoughts on these reports? I need to hear some folks commentary.
Last night was hell here and we just got 1 inch last night. Talking 7 hour traffic jams. We are set to get 24 inches between Friday and Saturday which means all hell breaks loose.
I'm all stocked up with tons of food and water, fire wood, alcohol etc. should be fun.
United Airlines Announces Full-Year 2015 Profit
Source: PR Newswire (US)
CHICAGO, Jan. 21, 2016 /PRNewswire/ -- United Airlines (UAL) today reported its fourth-quarter and full-year 2015 financial results.
UAL reported full-year net income of $4.5 billion, or $11.88 per diluted share, excluding special items. Including special items, UAL reported full-year net income of $7.3 billion. These results include a nonrecurring $3.1 billion non-cash benefit associated with the reversal of the company's income tax valuation allowance.
UAL reported fourth-quarter net income of $934 million, or $2.54 per diluted share, excluding special items. Including special items, UAL reported fourth-quarter net income of $823 million.
Today, UAL announced it reached an agreement to acquire 40 new Boeing 737-700 aircraft which will enter the fleet beginning in mid-2017, replacing a portion of the capacity currently operated by regional partners.
Employees earned a record $698 million in profit sharing for full-year 2015.
"We improved our operational performance, continued to invest in our products and services and achieved record financial performance," said Brett J. Hart, UAL's acting chief executive officer. "We have great momentum as we head into 2016 and are committed to continuously earning the trust of our customers and employees. I'm proud of what we accomplished together, running a reliable airline and making the right investments to deliver shareholder value. We expect first-quarter pre-tax margin to be between 8 and 10 percent, excluding special items."
Full-Year and Fourth-Quarter Revenue and Capacity
For the fourth quarter of 2015, total revenue was $9.0 billion, a decrease of 3.0 percent year-over-year. Fourth-quarter 2015 consolidated PRASM decreased 6.0 percent and consolidated yield decreased 7.2 percent compared to the fourth quarter of 2014. For the full-year 2015, consolidated PRASM declined 4.4 percent versus the prior year. The declines in PRASM and yield were driven largely by a strong U.S. dollar, lower surcharges, travel reductions from customers impacted by declining oil prices and softening domestic and international yields.
Passenger revenue for the fourth quarter and full year of 2015 and period-to-period comparisons of related statistics for UAL's mainline and regional operations are included in the tables in the back of this document.
Full-Year and Fourth-Quarter Costs
Total operating expense excluding special charges was $7.8 billion in the fourth quarter, down 8.1 percent year-over-year. Including special charges, total operating expense was $8.0 billion, an 8.4 percent decrease year-over-year. The decrease was largely driven by lower oil prices. Consolidated unit cost (CASM), excluding special charges, third-party business expenses, fuel and profit sharing, was flat compared to the fourth quarter of 2014. Consolidated CASM including those items decreased 10 percent year-over-year. For the full year, consolidated CASM excluding special charges, third-party business expenses, fuel and profit sharing decreased 0.7 percent year-over-year. This strong cost performance was largely the result of improved efficiency as part of the company's Project Quality and upgauging initiatives and better completion as a result of improved operational performance. Consolidated CASM including those items decreased 11.9 percent compared to full-year 2014.
Liquidity and Capital Allocation
In the fourth quarter, UAL generated $1.1 billion in operating cash flow and $324 million in free cash flow, and ended the quarter with $6.5 billion in unrestricted liquidity, including $1.35 billion of undrawn commitments under its revolving credit facility. During the fourth quarter, the company continued to invest in its business through gross capital expenditures of $791 million, excluding fully reimbursable projects, including approximately $300 million in aircraft-related deposits that shifted to the fourth quarter of 2015 from the first quarter of 2016.
The company spent $520 million toward its $3 billion share repurchase authorization in the fourth quarter. For the year, United repurchased approximately $1.2 billion worth of shares.
UAL earned a 21.0 percent return on invested capital for the 12 months ended Dec. 31, 2015.
Fleet Updates
Today, UAL announced it would take delivery of 40 new Boeing 737-700 aircraft, which will enter the fleet beginning in mid-2017. These aircraft will replace a portion of the capacity currently operated by the company's regional partners, as the company expects to reduce by more than half the number of 50-seat aircraft in its fleet by 2019.
"Our customers have a preference for an improved travel experience, including first class seats, Economy Plus, and Wi-Fi. These aircraft are an efficient way to meet those needs while reducing 50-seat flying," said Gerry Laderman, UAL's acting chief financial officer.
For more information on UAL's first-quarter 2016 guidance, please visit ir.united.com for the company's investor update.
The company will provide further details on its full-year 2015 financial results on an investor conference call today at 9:30 a.m. CT. Participants in the call will include Oscar Munoz, president and CEO; Brett J. Hart, acting CEO; Gerry Laderman, acting chief financial officer; Jim Compton, vice chairman and chief revenue officer; and Greg Hart, executive vice president and chief operations officer.
About United
United Airlines and United Express operate an average of nearly 5,000 flights a day to 342 airports across six continents. In 2015, United and United Express operated nearly two million flights carrying 140 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates more than 700 mainline aircraft, and this year, the airline anticipates taking delivery of 20 new Boeing aircraft, including 737NGs, 787s and 777s. The airline is a founding member of Star Alliance, which provides service to 192 countries via 28 member airlines. Approximately 84,000 United employees reside in every U.S. state and in countries around the world. For more information, visit united.com, follow @United on Twitter or connect on Facebook. The common stock of United's parent, United Continental Holdings, Inc., is traded on the NYSE under the symbol UAL.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements included in this release are forward-looking and thus reflect our current expectations and beliefs with respect to certain current and future events and financial performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to our operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward-looking statements. Words such as "expects," "will," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook," "goals" and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this report are based upon information available to us on the date of this report. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law. Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: our ability to comply with the terms of our various financing arrangements; the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our operational plans, including optimizing our revenue; our ability to control our costs, including realizing benefits from our resource optimization efforts, cost reduction initiatives and fleet replacement programs; our ability to utilize our net operating losses; our ability to attract and retain customers; demand for transportation in the markets in which we operate; an outbreak of a disease that affects travel demand or travel behavior; demand for travel and the impact that global economic conditions have on customer travel patterns; excessive taxation and the inability to offset future taxable income; general economic conditions (including interest rates, foreign currency exchange rates, investment or credit market conditions, crude oil prices, costs of aircraft fuel and energy refining capacity in relevant markets); our ability to cost-effectively hedge against increases in the price of aircraft fuel; any potential realized or unrealized gains or losses related to fuel or currency hedging programs; the effects of any hostilities, act of war or terrorist attack; the ability of other air carriers with whom we have alliances or partnerships to provide the services contemplated by the respective arrangements with such carriers; the costs and availability of aviation and other insurance; industry consolidation or changes in airline alliances; competitive pressures on pricing and on demand; our capacity decisions and the capacity decisions of our competitors; U.S. or foreign governmental legislation, regulation and other actions (including open skies agreements and environmental regulations); the impact of regulatory, investigative and legal proceedings and legal compliance risks; the impact of any management changes; our CEO's health prognosis and return from medical leave; labor costs; our ability to maintain satisfactory labor relations and the results of the collective bargaining agreement process with our union groups; any disruptions to operations due to any potential actions by our labor groups; weather conditions; and other risks and uncertainties set forth under Item 1A., Risk Factors, of UAL's Annual Report on Form 10-K, as well as other risks and uncertainties set forth from time to time in the reports we file with the SEC.
-tables attached-
UNITED CONTINENTAL HOLDINGS, INC.
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
THREE MONTHS AND YEAR ENDED DECEMBER 31, 2015 AND 2014
Three Months Ended
Year Ended
December 31,
%
December 31,
%
(In millions, except per share data)
2015
2014
Increase/ (Decrease)
2015
2014
Increase/ (Decrease)
Operating revenue:
Passenger: (A)
Mainline
$6,180
$6,375
(3.1)
$26,333
$26,785
(1.7)
Regional
1,549
1,708
(9.3)
6,452
6,977
(7.5)
Total passenger revenue
7,729
8,083
(4.4)
32,785
33,762
(2.9)
Cargo
231
260
(11.2)
937
938
(0.1)
Other operating revenue
1,076
970
10.9
4,142
4,201
(1.4)
Total operating revenue
9,036
9,313
(3.0)
37,864
38,901
(2.7)
Operating expense:
Salaries and related costs
2,424
2,251
7.7
9,713
8,935
8.7
Aircraft fuel (B)
1,618
2,530
(36.0)
7,522
11,675
(35.6)
Regional capacity purchase
565
597
(5.4)
2,290
2,344
(2.3)
Landing fees and other rent
556
568
(2.1)
2,203
2,274
(3.1)
Depreciation and amortization
476
431
10.4
1,819
1,679
8.3
Aircraft maintenance materials and outside repairs
399
415
(3.9)
1,651
1,779
(7.2)
Distribution expenses
316
334
(5.4)
1,342
1,373
(2.3)
Aircraft rent
174
215
(19.1)
754
883
(14.6)
Special charges (C)
131
179
NM
326
443
NM
Other operating expenses
1,296
1,168
11.0
5,078
5,143
(1.3)
Total operating expense
7,955
8,688
(8.4)
32,698
36,528
(10.5)
Operating income
1,081
625
73.0
5,166
2,373
117.7
Nonoperating income (expense):
Interest expense
(165)
(176)
(6.3)
(669)
(735)
(9.0)
Interest capitalized
11
12
(8.3)
49
52
(5.8)
Interest income
9
5
80.0
25
22
13.6
Miscellaneous, net (C)
(31)
(443)
(93.0)
(352)
(584)
(39.7)
Total nonoperating expense
(176)
(602)
(70.8)
(947)
(1,245)
(23.9)
Income before income taxes
905
23
NM
4,219
1,128
274.0
Income tax expense (benefit) (D)
82
(5)
NM
(3,121)
(4)
NM
Net income
$823
$28
NM
$7,340
$1,132
NM
Earnings per share, basic
$2.24
$0.08
NM
$19.52
$3.05
NM
Earnings per share, diluted
$2.24
$0.07
NM
$19.47
$2.93
NM
Weighted average shares, basic
367
372
(1.3)
376
371
1.3
Weighted average shares, diluted
367
376
(2.4)
377
390
(3.3)
NM Not meaningful
UNITED CONTINENTAL HOLDINGS, INC
NOTES (UNAUDITED)
(A) Select passenger revenue information is as follows (in millions):
4Q 2015
Passenger
Revenue
(millions)
Passenger
Revenue vs.
4Q 2014
PRASM vs.
4Q 2014
Yield vs.
4Q 2014
Available
Seat Miles
vs. 4Q 2014
Domestic
$3,249
0.9%
(3.2%)
(5.6%)
4.3%
Atlantic
1,314
(3.2%)
(2.7%)
(1.5%)
(0.5%)
Pacific
1,012
(8.6%)
(8.6%)
(9.2%)
0.0%
Latin America
605
(12.6%)
(20.9%)
(20.8%)
10.5%
International
2,931
(7.1%)
(8.9%)
(8.7%)
1.9%
Mainline
6,180
(3.1%)
(6.0%)
(7.1%)
3.1%
Regional
1,549
(9.3%)
(3.0%)
(4.2%)
(6.6%)
Consolidated
$7,729
(4.4%)
(6.0%)
(7.2%)
1.8%
UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)
UAL's results of operations include fuel expense for both mainline and regional operations.
(B)
Three Months Ended
Year Ended
December 31,
%
December 31,
%
(In millions, except per gallon)
2015
2014
Increase/ (Decrease)
2015
2014
Increase/ (Decrease)
Mainline fuel expense excluding hedge impacts
$1,184
$1,982
(40.3)
$5,711
$9,408
(39.3)
Hedge losses reported in fuel expense (a)
(175)
(85)
NM
(604)
(89)
NM
Total mainline fuel expense
1,359
2,067
(34.3)
6,315
9,497
(33.5)
Regional fuel expense
259
463
(44.1)
1,207
2,178
(44.6)
Consolidated fuel expense
1,618
2,530
(36.0)
7,522
11,675
(35.6)
Cash paid on settled hedges that did not qualify for hedge accounting (b)
(115)
(151)
NM
(329)
(138)
NM
Fuel expense including all losses from settled hedges
$1,733
$2,681
(35.4)
$7,851
$11,813
(33.5)
Mainline fuel consumption (gallons)
784
769
2.0
3,216
3,183
1.0
Mainline average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense
$1.51
$2.58
(41.5)
$1.78
$2.96
(39.9)
Mainline average aircraft fuel price per gallon
$1.73
$2.69
(35.7)
$1.96
$2.98
(34.2)
Mainline average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting
$1.88
$2.88
(34.7)
$2.07
$3.03
(31.7)
Regional fuel consumption (gallons)
167
179
(6.7)
670
722
(7.2)
Regional average aircraft fuel price per gallon
$1.55
$2.59
(40.2)
$1.80
$3.02
(40.4)
Consolidated fuel consumption (gallons)
951
948
0.3
3,886
3,905
(0.5)
Consolidated average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense
$1.52
$2.58
(41.1)
$1.78
$2.97
(40.1)
Consolidated average aircraft fuel price per gallon
$1.70
$2.67
(36.3)
$1.94
$2.99
(35.1)
Consolidated average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting
$1.82
$2.83
(35.7)
$2.02
$3.03
(33.3)
(a) Includes losses from settled hedges that were designated for hedge accounting. UAL allocates 100 percent of hedge accounting gains (losses) to mainline fuel expense.
(b) Includes ineffectiveness losses on settled hedges and losses on settled hedges that were not designated for hedge accounting. Ineffectiveness gains (losses) and gains (losses) on hedges that do not qualify for hedge accounting are recorded in Nonoperating income (expense): Miscellaneous, net.
UNITED CONTINENTAL HOLDINGS, INC.
NOTES (UNAUDITED)
(C) Special items include the following:
Three Months Ended
Year Ended
December 31,
December 31,
(In millions)
2015
2014
2015
2014
Operating:
Impairment of assets
$48
$16
$79
$49
Integration-related costs
13
17
60
96
Severance and benefit costs
4
141
107
199
(Gains) losses on sale of assets and other miscellaneous (gains) losses, net
66
5
80
99
Special charges
131
179
326
443
Nonoperating and income taxes:
Loss on extinguishment of debt and other, net
7
53
202
74
Income tax benefit related to special charges
(11)
(6)
(11)
(10)
Income tax expense (benefit) associated with valuation allowance release (D)
88
-
(3,130)
-
Total operating and nonoperating special charges, net of income taxes
215
226
(2,613)
507
Mark-to-market (MTM) (gains) losses from fuel derivative contracts settling in future periods
1
225
(8)
244
Prior period gains (losses) on fuel derivative contracts settled in the current period
(105)
(18)
(241)
83
Total special items, net of income taxes
$111
$433
$(2,862)
$834
2015 - Special items
Impairment of assets: During its annual assessment in the fourth quarter of 2015, the company recorded $33 million ($22 million net of related income tax benefit) related to impairment of its indefinite-lived intangible assets (certain domestic slots and international Pacific routes), $8 million for the write-off of unexercised aircraft purchase options and $7 million for inventory held for sale. For the full-year 2015, the company also recorded other impairments, including $10 million for discontinued internal software projects and $10 million for the impairment of several engines held for sale.
Integration-related costs: Integration-related costs include compensation costs related primarily to systems integration and training for employees.
Severance and benefit costs: In 2015, the company recorded $107 million of severance and benefit costs primarily related to a voluntary early-out program for its flight attendants. In 2014, more than 2,500 flight attendants elected to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through the end of 2016.
(Gains) losses on sale of assets and other miscellaneous (gains) losses, net: During 2015, the company recorded $80 million, which includes $32 million related to charges for legal matters, $18 million related to collective bargaining agreements, $16 million for the cease use of an aircraft under lease and $14 million for losses on the sale of aircraft and other miscellaneous gains and losses.
Loss on extinguishment of debt and other, net: During 2015, the company recorded $202 million of losses as part of Nonoperating income (expense): Miscellaneous, net due primarily to the write-off of $134 million related to the unamortized non-cash debt discount from the extinguishment of the 6% Notes due 2026 and 6% Notes due 2028.
During 2015, the company also recorded a $61 million foreign exchange loss related to its cash holdings in Venezuela. The Venezuelan government has maintained currency controls and fixed official exchange rates (i.e. Sistema Complementario de Administracion de Divisas, or SICAD, and Sistema Marginal de Divisas, or SIMADI) for many years. Previously, airlines were permitted to use the more favorable SICAD rate (currently 13.5 Venezuelan bolivars to one U.S. dollar) if repatriating profits and for payments of local goods and services in Venezuela. During 2015, many of the payments for local goods and services have transitioned to utilizing the SIMADI rate (currently 200 Venezuelan bolivars to one U.S. dollar) or have been required to be paid in U.S. dollars. Furthermore, the Venezuelan government has not permitted the exchange and repatriations of local currency since mid-2014. As a result, the Company decided to change the exchange rate from historical SICAD rates to a combination of SIMADI and SICAD rates based on projections of future cash payments. Including this adjustment, the company's resulting cash balance held in Venezuelan bolivars at December 31, 2015 is approximately $13 million.
MTM (gains) losses from fuel derivative contracts settling in future periods and prior period losses on fuel derivative contracts settled in the current period: The company uses certain combinations of derivative contracts that are economic hedges but do not qualify for hedge accounting under U.S. generally accepted accounting principles. Additionally, the company may enter into contracts at different times and later combine those contracts into structures designated for hedge accounting. As with derivatives that qualify for hedge accounting, the economic hedges and individual contracts are part of the company's program to mitigate the adverse financial impact of potential increases in the price of fuel. The company records changes in the fair value of these various contracts that are not designated for hedge accounting to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three months and year ended December 31, 2015, the company recorded $1 million in MTM losses and $8 million in MTM gains, respectively, on fuel derivative contracts that will settle in future periods. For fuel derivative contracts that settled in the three months and year ended December 31, 2015, the company recorded MTM losses of $105 million and $241 million, respectively, in prior periods. The figures above also include an insignificant amount of ineffectiveness on hedges that are designated for hedge accounting.
2014 - Special items
Impairment of assets: During 2014, the company recorded a charge of $16 million ($10 million net of related income tax benefits) related to its annual assessment of impairment of its indefinite-lived intangible assets (certain international Pacific routes). In addition, the company also recorded $33 million for charges related primarily to impairment of its flight equipment held for disposal associated with its Boeing 737-300 and 737-500 fleets.
Integration-related costs: Integration-related costs included compensation costs related to systems integration, training, severance and relocation for employees.
Severance and benefit costs: During the fourth quarter of 2014, the company recorded $141 million of severance and benefit costs related primarily to a voluntary early-out program for its flight attendants. More than 2,500 participants elected a one-time opportunity to voluntarily separate from the company and will receive a severance payment, with a maximum value of $100,000 per participant, based on years of service, with retirement dates through the end of 2016. In addition, the company recorded $58 million of severance and benefits primarily related to reductions of management and front-line employees, including from Hopkins International Airport (Cleveland), as part of its cost savings initiatives. The company is currently evaluating its options regarding its long-term contractual lease commitments at Cleveland. The capacity reductions at Cleveland may result in further special charges, which could be significant, related to our contractual commitments.
(Gains) losses on sale of assets and other miscellaneous (gains) losses, net: During 2014, the company recorded $66 million for the permanent grounding of 21 of the company's Embraer ERJ 135 regional aircraft under lease through 2018, which included an accrual for remaining lease payments and an amount for maintenance return conditions. The company decided to permanently ground these 21 Embraer ERJ 135 aircraft as a result of new Embraer E175 regional jet deliveries, the impact of pilot shortages at regional carriers and fuel prices. In addition, the company also recorded $33 million for losses on the sale of assets and other special charges.
Loss on extinguishment of debt and other, net: On October 10, 2014, United used cash to retire, at par, the entire $248 million principal balance of the 6% Convertible Junior Subordinated Debentures and the 6% Convertible Preferred Securities, Term Income Deferrable Equity Securities (TIDES). The $53 million expense is primarily associated with the write-off of non-cash debt discounts recorded on the TIDES due to purchase accounting during the company's merger transaction in 2010.
MTM losses from fuel derivative contracts settling in future periods and prior period gains (losses) on fuel derivative contracts settled in the current period: The company utilizes certain derivative instruments that are economic hedges but do not qualify for hedge accounting under U.S. generally accepted accounting principles. The company records changes in the fair value of these economic hedges to Nonoperating income (expense): Miscellaneous, net in the statements of consolidated operations. During the three months and year ended December 31, 2014, the company recorded $225 million and $244 million, respectively, in MTM losses on economic hedges that will settle in future periods. For economic hedges that settled in the three months and year ended December 31, 2014, the company recorded MTM gains (losses) of ($18) million and $83 million, respectively, in prior periods. The figures above also include an insignificant amount of ineffectiveness on hedges that are designated for hedge accounting.
(D)
The company's income tax benefit was $3.1 billion for the year ended December 31, 2015. During 2015, after considering all positive and negative evidence and the four sources of taxable income, the Company concluded that its deferred income tax assets are more likely than not to be realized. In evaluating the likelihood of utilizing the Company's net federal and state deferred tax assets, the significant relevant factors that the Company considered are: (1) its recent history and forecasted profitability; (2) growth in the U.S. and global economies; and (3) future impact of taxable temporary differences. Therefore, the Company released almost all of its valuation allowance in 2015, resulting in a $3.1 billion benefit in its provision for income taxes.
UNITED CONTINENTAL HOLDINGS, INC.
STATISTICS
Three Months Ended
Year Ended
December 31,
%
December 31,
%
2015
2014
Increase/
(Decrease)
2015
2014
Increase/
(Decrease)
Mainline:
Passengers (thousands)
24,169
22,087
9.4
96,327
91,475
5.3
Revenue passenger miles (millions)
44,470
42,609
4.4
183,642
179,015
2.6
Available seat miles (millions)
53,814
52,197
3.1
219,989
214,105
2.7
Cargo ton miles (millions)
679
674
0.7
2,614
2,487
5.1
Passenger load factor:
Mainline
82.6 %
81.6 %
1.0
pt.
83.5 %
83.6 %
(0.1)
pts.
Domestic
86.1 %
84.1 %
2.0
pts.
86.3 %
86.0 %
0.3
pts.
International
79.1 %
79.2 %
(0.1)
pts.
80.8 %
81.3 %
(0.5)
pts.
Passenger revenue per available seat mile (cents)
11.48
12.21
(6.0)
11.97
12.51
(4.3)
Average yield per revenue passenger mile (cents)
13.90
14.96
(7.1)
14.34
14.96
(4.1)
Average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense (a)
$1.51
$2.58
(41.5)
$1.78
$2.96
(39.9)
Average aircraft fuel price per gallon (a)
$1.73
$2.69
(35.7)
$1.96
$2.98
(34.2)
Average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting (a)
$1.88
$2.88
(34.7)
$2.07
$3.03
(31.7)
Fuel gallons consumed (millions)
784
769
2.0
3,216
3,183
1.0
Aircraft in fleet at end of period
715
691
3.5
715
691
3.5
Average stage length (miles) (b)
1,869
1,936
(3.5)
1,922
1,958
(1.8)
Average daily utilization of each aircraft (hours)
9:59
10:11
(2.0)
10:24
10:26
(0.3)
Regional:
Passengers (thousands)
10,983
11,470
(4.2)
44,042
46,554
(5.4)
Revenue passenger miles (millions)
6,248
6,602
(5.4)
24,969
26,544
(5.9)
Available seat miles (millions)
7,490
8,016
(6.6)
30,014
31,916
(6.0)
Passenger load factor
83.4 %
82.4 %
1.0
pt.
83.2 %
83.2 %
-
pts.
Passenger revenue per available seat mile (cents)
20.68
21.31
(3.0)
21.50
21.86
(1.6)
Average yield per revenue passenger mile (cents)
24.79
25.87
(4.2)
25.84
26.28
(1.7)
Aircraft in fleet at end of period
524
566
(7.4)
524
566
(7.4)
Average stage length (miles) (b)
562
570
(1.4)
559
561
(0.4)
Consolidated (Mainline and Regional):
Passengers (thousands)
35,152
33,557
4.8
140,369
138,029
1.7
Revenue passenger miles (millions)
50,718
49,211
3.1
208,611
205,559
1.5
Available seat miles (millions)
61,304
60,213
1.8
250,003
246,021
1.6
Passenger load factor
82.7 %
81.7 %
1.0
pt.
83.4 %
83.6 %
(0.2)
pts.
Passenger revenue per available seat mile (cents)
12.61
13.42
(6.0)
13.11
13.72
(4.4)
Total revenue per available seat mile (cents)
14.74
15.47
(4.7)
15.15
15.81
(4.2)
Average yield per revenue passenger mile (cents)
15.24
16.43
(7.2)
15.72
16.42
(4.3)
Average aircraft fuel price per gallon excluding hedge losses recorded in fuel expense (a)
$1.52
$2.58
(41.1)
$1.78
$2.97
(40.1)
Average aircraft fuel price per gallon (a)
$1.70
$2.67
(36.3)
$1.94
$2.99
(35.1)
Average aircraft fuel price per gallon including cash paid on settled hedges that did not qualify for hedge accounting (a)
$1.82
$2.83
(35.7)
$2.02
$3.03
(33.3)
Fuel gallons consumed (millions)
951
948
0.3
3,886
3,905
(0.5)
Average full-time equivalent employees (thousands)
82.1
80.5
2.0
82.1
82.0
0.1
(a)
Fuel price per gallon includes aircraft fuel and related taxes.
(b)
Average stage length equals the average distance a flight travels weighted for size of aircraft.
UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION
UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and Non-GAAP financial measures, including income (loss) before income taxes excluding special items, net income (loss) excluding special items, net earnings (loss) per share excluding special items, and CASM, among others. CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. Pursuant to SEC Regulation G, UAL has included the following reconciliation of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. UAL believes that adjusting for special items is useful to investors because special charges are non-recurring charges not indicative of UAL's ongoing performance. In addition, the company believes that adjusting for MTM gains and losses from fuel derivative contracts settling in future periods and prior period gains and losses on fuel derivative contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled fuel derivative contracts in a given period. UAL also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, fuel sales and non-air mileage redemptions, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because this exclusion allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. UAL also believes that adjusting capital expenditures for fully reimbursable projects is useful to investors in order to appropriately reflect the non-reimbursable funds spent on capital expenditures.
Three Months Ended
Year Ended
(in millions)
December 31,
$
%
December 31,
$
%
2015
2014
Increase/ (Decrease)
Increase/ (Decrease)
2015
2014
Increase/ (Decrease)
Increase/ (Decrease)
Operating expenses
$7,955
$8,688
$(733)
(8.4)
$32,698
$36,528
$(3,830)
(10.5)
Less: Special charges (C)
131
179
(48)
NM
326
443
(117)
NM
Operating expenses, excluding special charges
7,824
8,509
(685)
(8.1)
32,372
36,085
(3,713)
(10.3)
Less: Third-party business expenses
86
65
21
32.3
291
534
(243)
(45.5)
Less: Fuel expense
1,618
2,530
(912)
(36.0)
7,522
11,675
(4,153)
(35.6)
Less: Profit sharing, including taxes
153
53
100
188.7
698
235
463
197.0
Operating expenses, excluding fuel, profit sharing, special charges and third-party business expenses
$5,967
$5,861
$106
1.8
$23,861
$23,641
$220
0.9
Income before income taxes
$905
$23
$882
NM
$4,219
$1,128
$3,091
274.0
Less: Special items before income tax benefit
34
439
(405)
NM
279
844
(565)
NM
Income before income taxes and excluding special items
$939
$462
$477
103.2
$4,498
$1,972
$2,526
128.1
Net income
$823
$28
$795
NM
$7,340
$1,132
$6,208
NM
Less: Special items, net of tax (C)
111
433
(322)
NM
(2,862)
834
(3,696)
NM
Net income, excluding special items
$934
$461
$473
102.6
$4,478
$1,966
$2,512
127.8
Diluted earnings per share
$2.24
$0.07
$2.17
NM
$19.47
$2.93
$16.54
NM
Add back: Special items, net of tax
0.30
1.12
(0.82)
NM
(7.59)
2.12
(9.71)
NM
Add back: Impact of dilution, net
-
0.01
(0.01)
NM
-
0.01
(0.01)
NM
Diluted earnings per share, excluding special items
$2.54
$1.20
$1.34
111.7
$11.88
$5.06
$6.82
134.8
UNITED CONTINENTAL HOLDINGS, INC.
NON-GAAP FINANCIAL RECONCILIATION (Continued)
Three Months Ended
Year Ended
December 31,
%
December 31,
%
2015
2014
Increase/ (Decrease)
2015
2014
Increase/ (Decrease)
CASM Mainline Operations (cents)
Cost per available seat mile (CASM)
12.37
13.68
(9.6)
12.42
14.03
(11.5)
Less: Special charges (C)
0.24
0.34
NM
0.15
0.21
NM
CASM, excluding special charges
12.13
13.34
(9.1)
12.27
13.82
(11.2)
Less: Third-party business expenses
0.16
0.12
33.3
0.13
0.25
(48.0)
CASM, excluding special charges and third-party business expenses
11.97
13.22
(9.5)
12.14
13.57
(10.5)
Less: Fuel expense
2.53
3.96
(36.1)
2.87
4.44
(35.4)
CASM, excluding special charges, third-party business expenses and fuel
9.44
9.26
1.9
9.27
9.13
1.5
Less: Profit sharing per available seat mile
0.28
0.10
180.0
0.32
0.11
190.9
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing
9.16
9.16
-
8.95
9.02
(0.8)
CASM Consolidated Operations (cents)
Cost per available seat mile (CASM)
12.98
14.43
(10.0)
13.08
14.85
(11.9)
Less: Special charges (C)
0.22
0.30
NM
0.13
0.18
NM
CASM, excluding special charges
12.76
14.13
(9.7)
12.95
14.67
(11.7)
Less: Third-party business expenses
0.14
0.11
27.3
0.12
0.22
(45.5)
CASM, excluding special charges and third-party business expenses
12.62
14.02
(10.0)
12.83
14.45
(11.2)
Less: Fuel expense
2.64
4.20
(37.1)
3.01
4.75
(36.6)
CASM, excluding special charges, third-party business expenses and fuel
9.98
9.82
1.6
9.82
9.70
1.2
Less: Profit sharing per available seat mile
0.25
0.09
177.8
0.28
0.09
211.1
CASM, excluding special charges, third-party business expenses, fuel, and profit sharing
9.73
9.73
-
9.54
9.61
(0.7)
UNITED CONTINENTAL HOLDINGS, INC
CAPITAL EXPENDITURES AND FREE CASH FLOW
Capital Expenditures (in millions)
Three Months Ended
December 31, 2015
Year Ended
December 31, 2015
Capital expenditures - GAAP
$763
$2,747
Property and equipment acquired through the issuance of debt
69
866
Airport construction financing
12
17
Fully reimbursable projects
(53)
(124)
Adjusted capital expenditures – Non-GAAP
$791
$3,506
Free Cash Flow (in millions)
Three Months Ended
December 31, 2015
Year Ended
December 31, 2015
Net cash provided by operating activities
$1,115
$5,992
Less adjusted capital expenditures - Non-GAAP
791
3,506
Free cash flow
$324
$2,486
UNITED CONTINENTAL HOLDINGS, INC.
RETURN ON INVESTED CAPITAL (ROIC)
ROIC is a Non-GAAP financial measure that we believe provides useful supplemental information for management and investors by measuring the effectiveness of our operations' use of invested capital to generate profits.
(in millions)
Twelve Months Ended
December 31, 2015
Net Operating Profit After Tax (NOPAT)
Pre-tax income excluding special items (a)
$4,498
NOPAT adjustments (b)
1,100
NOPAT
$5,598
Effective tax rate
0.4%
Invested Capital (five-quarter average)
Total assets
Invested capital adjustments (c)
$39,210
Average Invested Capital
12,507
$26,703
Return on Invested Capital
21.0%
Notes:
Twelve Months Ended
December 31, 2015
(a) Non-GAAP Financial Reconciliation
Pre-tax income
$4,219
Add: Special items
279
Pre-tax income excluding special items
$4,498
(b) NOPAT adjustments include: adding back (net of tax shield) interest expense, the interest component of capitalized aircraft rent, and net interest on pension while removing interest tax expense.
(c) Invested capital adjustments include: adding back capital aircraft rent (at 7.0X) and deferred income taxes, less advance ticket sales, frequent flyer deferred revenue, tax valuation allowance, and other non-interest bearing liabilities.
United Airlines logo.
Logo - http://photos.prnewswire.com/prnh/20130404/MM89155LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/united-airlines-announces-full-year-2015-profit-300207750.html
SOURCE United Airlines
Copyright 2016 PR Newswire
Should be an interesting day..
Yeah that's insane. Under a buck on fuel. Wow..