CORRECTION FROM SOURCE: WestJet's Third Quarter Results: Nineteenth Consecutive Quarter of Profitability.Business Editors CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta--(BUSINESS WIRE)--Nov. 1, 2001 WestJet's (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :WJA WJA Women's Jewelry Association WJA Web JetAdmin (HP software) WJA Water Jetting Association (UK) WJA Web Jet-Admin .) third quarter financial results released today at 3:30 am MST See micro systems technology. contained typographical errors typographical error - (typo) An error while inputting text via keyboard, made despite the fact that the user knows exactly what to type in. This usually results from the operator's inexperience at keyboarding, rushing, not paying attention, or carelessness. Compare: mouso, thinko. in the statement of cash flows under the "Investing" heading. The following release contains the correct financial results, and WestJet WestJet Airlines Ltd. (TSX: WJA) is a Canadian low-cost carrier based in Calgary, Alberta, that flies to most major cities in Canada and 11 cities in the United States. apologizes for any inconvenience due to this error. WestJet Airlines today announced that its net earnings for the third quarter of 2001 increased 32.1% to $13.8 million compared to $10.4 million achieved during the same period last year. In the first nine months of 2001, the airline's net earnings grew 26.2% to $27.8 million from $22.0 million during the first nine months of 2000. Operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. increased this quarter to $140.4 million, up 41.4% from $99.3 million attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. in the third quarter last year. Year to date, operating revenue grew 44.7% to $345.5 million, an increase from $238.8 million during the same period in 2000. WestJet's diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of rose 26.1% or 6 cents to $0.29 during the third quarter 2001, up from $0.23 during the third quarter 2000. Year to date, diluted earnings per share have grown 20.0% or 10 cents to $0.60, up from $0.50 during the same nine-month period in 2000. This was achieved while the number of common shares outstanding increased to 46,310,598 at the quarter's end compared to 42,435,957 on September September: see month. 30, 2000. WestJet's capacity, measured in available seat miles Available seat miles (ASM) is a measure of an airline flight's passenger carrying capacity. It is equal to the number of seats available multiplied by the number of miles flown. This measures an airlines capacity for transporting passengers. (ASMs), grew this quarter to 838,585,859, a 56.9% increase over third quarter 2000's 534,414,102 ASMs. Year to date, ASMs increased 57.7% to 2,128,423,499 from 1,349,445,623 ASMs during the first nine months of 2000. Revenue passenger miles Revenue passenger miles (RPMs) is a measure of a passenger traffic for an airline flight, bus, or train calculated by multiplying the total number of revenue-paying passengers aboard the vehicle by the distance traveled measured in miles. (RPMs) increased 56.1% to 680,000,142 RPMs this quarter, up from 435,692,843 RPMs in the same quarter last year. For the first nine months of 2001, RPMs increased 55.5% to 1,624,849,894 RPMs from 1,044,689,346 RPMs during the first three quarters of 2000. WestJet's load factor for the quarter decreased nominally to 81.1% from 81.5% in the third quarter of 2000. Year to date load factor is down slightly to 76.3% from 77.4% during the first nine months of 2000. Yield (revenue per revenue passenger mile) decreased 9.2% this quarter to 20.7 cents from 22.8 cents during third quarter 2000. Year to date, yield is down 7.0% to 21.3 cents from 22.9 cents during the first nine months of 2000. However, costs per ASM (1) (Association for Systems Management) An international membership organization based in Cleveland, Ohio. Founded in 1947 and disbanded in 1996, it sponsored conferences in all phases of administrative systems and management. have also decreased this quarter to 14.2 cents, down 5.3% from 15.0 cents during the same period of 2000. Year to date, cost per ASM declined 4.1% to 14.1 cents for the first 9 month of 2001, down from 14.7 cents in the first nine months of 2000. Clive Beddoe Clive Beddoe (born 1947) is a founding shareholder and Chairman of the Board of Directors of WestJet Airlines. As a pilot himself, it was his interest in aircraft that helped form WestJet. Clive first started flying gliders at Epsom College in England during his teenage years. , WestJet's Executive Chairman, President, and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , commented this morning: "We are very pleased with our performance in the third quarter given the unprecedented challenges the airline industry has recently faced. We are beginning to reap the benefits of our investments in initiatives such as the Sabre booking system and next generation aircraft. With only two Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. 737-700 aircraft operating for the entire quarter, and a third 737-700 aircraft in operation for two-thirds of the period, we are just beginning to realize the benefits that these aircraft will provide. As the proportion of next generation aircraft in our fleet increases with additional aircraft deliveries, we expect this trend to continue to lower our costs, and improve our efficiency. "Our balance sheet remains strong, with $76 million of cash on hand. This, compared to $71 million in long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and capital leases leaves us still net debt free, with shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $213 million. "The decline in yield this quarter was primarily due to our increasing stage length, and was compounded by the events of September 11; however, I am pleased with the 32.1% increase in net earnings achieved this quarter in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. yields. "Despite the numerous obstacles we have faced this period, I am looking forward to the fourth quarter as we prepare for the December December: see month. holiday season. Our advance bookings have almost returned to pre-September 11 levels and our people and systems are well prepared for the changing competitive face of the airline industry in Canada." WestJet Airlines serves the 17 Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. cities of Victoria, Vancouver, Comox, Abbotsford/Fraser Valley, Prince George Prince George, city (1991 pop. 69,653), central British Columbia, Canada, at the confluence of the Fraser and Nechako rivers. It is a railroad division point and a distribution center for a lumber region. , Kelowna, Calgary, Edmonton, Grande Prairie Grande Prairie (Fr. gräNd prâ'rē`), city (1991 pop. 28,271), W Alta., Canada, NW of Edmonton. It is the chief business center for the Peace River valley farming area. , Fort McMurray Fort McMurray, town (1991 pop. 34,706), NE Alta., Canada, on the Athabasca and Clearwater rivers. Since the beginning of the mining of Alberta's oil sands in 1964, the town's population has grown from 1,200. , Saskatoon Saskatoon (săskət  n`), city (1991 pop. 186,058), S central Sask., Canada, on the South Saskatchewan River. , Regina,
Winnipeg, Thunder Bay Thunder Bay, city (1991 pop. 113,946), SW Ont., Canada, on Thunder Bay inlet of Lake Superior. The city was created in 1970 by the amalgamation of the twin cities of Fort William and Port Arthur and two adjoining townships. , Hamilton Hamilton, city, BermudaHamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Ottawa and Moncton. WestJet will also add service to Sudbury on December 12, Thompson Thompson, city, Canada Thompson, city (1991 pop. 14,977), central Man., Canada, on the Burntwood River. A mining town, it developed after large nickel deposits were discovered in the area in 1956. on December 14, and Sault Ste. Marie Sault Sainte Marie — pronounced "Soo Saint Marie" (IPA /su seɪnt məˈɹi/) — is the name of two cities on the Saint Marys River, which forms part of the boundary between the United States and Canada. on December 18, 2001. WestJet operates a fleet of 26 Boeing 737 aircraft, featuring three state-of-the-art new generation 737-700 aircraft. WestJet is publicly traded on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol WJA.
WestJet Airlines Ltd.
Consolidated Financial Statements
September 30, 2001
(Unaudited)
WestJet Airlines Ltd.
Consolidated Balance Sheets
September 30, 2001, December 31, 2000 and September 30, 2000
(Stated in Thousands of Dollars)
September 30, December 31, September 30,
2001 2000 2000
(Unaudited) (Unaudited)
Assets
Current assets
Cash and short-term
investments $75,960 $79,025 $29,141
Accounts receivable 5,185 6,447 3,524
Prepaid expenses and
deposits 9,737 6,099 8,455
Inventory 1,691 604 982
----------------------------------------
92,573 92,175 42,102
----------------------------------------
Capital assets 293,956 239,320 204,968
Other long-term assets 6,737 5,677 5,339
----------------------------------------
$393,266 $337,172 $252,409
----------------------------------------
Liabilities and Shareholders'
Equity
Current liabilities
Accounts payable and
accrued liabilities $46,800 $54,087 $50,307
Advance ticket sales 33,700 18,764 25,492
Non-refundable passenger
credits 11,763 6,996 5,703
Current portion of
long-term debt 8,800 9,336 9,105
Current portion of
obligations under capital
lease (note 4) 3,315 1,597 145
----------------------------------------
104,378 90,780 90,752
Long-term debt 43,370 40,953 27,022
Obligations under capital
lease (note 4) 15,133 8,519 225
Future income tax 17,733 15,828 15,477
----------------------------------------
180,614 156,080 133,476
----------------------------------------
Shareholders' equity
Share capital (note 3) 129,140 125,390 71,443
Retained earnings 83,512 55,702 47,490
----------------------------------------
212,652 181,092 118,933
----------------------------------------
$393,266 $337,172 $252,409
----------------------------------------
WestJet Airlines Ltd.
Consolidated Income, Expenses and Retained Earnings
For the periods ended September 30, 2001 and 2000
(Unaudited)
(Stated in Thousands of Dollars, Except Per Share Data)
Three months ended Nine months ended
September 30 September 30
2001 2000 2001 2000
Income
Passenger
revenues $133,960 $94,878 $327,932 $227,196
Charter and
other 6,489 4,448 17,577 11,619
------------------------------------------------------
140,449 99,326 345,509 238,815
------------------------------------------------------
Expenses
Passenger
services 26,606 18,446 71,199 47,548
Aircraft fuel 23,593 15,987 62,671 37,818
Maintenance 21,100 14,077 54,488 37,573
Amortization 8,883 5,250 23,431 11,947
Sales and
marketing 8,870 6,075 21,244 15,275
Flight
operations 5,271 3,473 14,845 9,612
General and
administration 5,101 3,978 13,516 8,456
Reservations 6,444 3,389 13,153 8,745
Aircraft
leasing 5,000 1,957 9,251 4,759
Inflight 3,407 2,200 8,949 5,794
Employee
profit share
provision
(note 5) 4,529 5,463 8,338 11,086
------------------------------------------------------
118,804 80,295 301,085 198,613
------------------------------------------------------
Earnings from
operations 21,645 19,031 44,424 40,202
------------------------------------------------------
Non-operating income
(expense)
Interest income 742 606 2,353 2,007
Interest expense (1,491) (728) (3,657) (2,250)
Gain (loss) on
disposal of
capital assets 41 (7) 130 (269)
Gain on foreign
exchange 382 0 689 0
------------------------------------------------------
(326) (129) (485) (512)
------------------------------------------------------
Earnings before
income taxes 21,319 18,902 43,939 39,690
Income taxes
Current 7,569 7,584 14,224 14,681
Future 0 910 1,905 2,967
------------------------------------------------------
7,569 8,494 16,129 17,648
------------------------------------------------------
Net earnings 13,750 10,408 27,810 22,042
Retained
earnings,
beginning of
period 69,762 37,082 55,702 25,448
------------------------------------------------------
Retained
earnings, end
of period $83,512 $47,490 $83,512 $47,490
------------------------------------------------------
Number of
common shares
outstanding 46,310,598 42,435,957 46,310,598 42,435,957
Number of
stock options
outstanding 3,780,355 3,501,497 3,780,355 3,501,497
Earnings per
share (note 2)
Basic $0.30 $0.25 $0.61 $0.53
Diluted $0.29 $0.23 $0.60 $0.50
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Operating highlights:
Available seat
miles 838,585,859 534,414,102 2,128,423,499 1,349,445,623
Revenue
passenger
miles 680,000,142 435,692,843 1,624,849,894 1,044,689,346
Load factor 81.1% 81.5% 76.3% 77.4%
Revenue per
passenger
mile (cents) 20.7 22.8 21.3 22.9
Revenue per
available
seat miles
(cents) 16.7 18.6 16.2 17.7
Cost per
passenger
mile (cents) 17.5 18.4 18.5 19.0
Cost per
available seat
mile (cents) 14.2 15.0 14.1 14.7
Fuel consumption
(litres) 63,824,149 44,667,297 168,100,364 111,871,578
Fuel cost/litre
(cents) 37.0 35.8 37.3 33.8
Segment
passengers 1,322,709 970,234 3,449,443 2,450,000
WestJet Airlines Ltd.
Consolidated Statement of Cash Flows
For the periods ended September 30, 2001 and 2000
(Unaudited)
(Stated in Thousands of Dollars)
Three months ended Nine months ended
September 30 September 30
2001 2000 2001 2000
Cash flows from (used in):
Operations
Net earnings $13,750 $10,408 $27,810 $22,042
Items not involving cash:
(Gain) loss on disposal
of capital assets (41) 7 (130) 269
Unrealized loss on
foreign exchange 19 0 5 0
Amortization 8,883 5,250 23,431 11,947
Future income tax 0 911 1,905 2,968
------------------------------------
Cash flow from operations 22,611 16,576 53,021 37,226
Decrease in non-cash
working capital 5,541 20,731 9,088 37,045
------------------------------------
28,152 37,307 62,109 74,271
------------------------------------
Financing
Repayment of long-term
debt (2,521) (2,143) (7,065) (5,831)
Increase in long-term
debt 0 2,703 8,946 6,067
Decrease in obligations
under capital lease (769) (34) (1,685) (101)
Increase in other
long-term assets (310) (17,083) (819) (21,628)
Share issuance costs 0 (5) 0 (28)
Issuance of common shares 893 719 3,750 2,432
------------------------------------
(2,707) (15,843) 3,127 (19,089)
------------------------------------
Investing
Aircraft additions (8,246) (33,620) (45,531) (56,049)
Aircraft disposals 0 11 0 1,836
Other capital asset
additions (2,381) (11,076) (22,774) (22,568)
Other capital asset
disposals 0 0 4 0
------------------------------------
(10,627) (44,685) (68,301) (76,781)
------------------------------------
Net change in cash 14,818 (23,221) (3,065) (21,599)
Cash, beginning of period 61,142 52,362 79,025 50,740
------------------------------------
Cash, end of period $75,960 $29,141 $75,960 $29,141
------------------------------------
WestJet Airlines Ltd
Notes to Consolidated Financial Statements
Nine month period ended September 30, 2001
(Unaudited)
(Tabular Dollar Amounts are Stated in Thousands,
Except Per Share Data)
The interim consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge of WestJet Airlines Ltd. ("WestJet" or "the Corporation") have been prepared by management in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in Canada. The interim consolidated financial statements have been prepared following the same accounting policies and methods of computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. as the consolidated financial statements for the fiscal year ended December 31, 2000, except as described below. The disclosures provided below are incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. to those included with the annual consolidated financial statements. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. in the Corporation's annual report for the year ended December 31, 2000. The Corporation's business is seasonal in nature, with the highest activity in the summer (third quarter) and the lowest activity in the winter (first quarter), due to the higher number of leisure travelers and their preference to travel during the summer months. 1. Financial instruments: The Corporation has managed its exposure to fluctuations in the lease payments, which are designated in U.S. dollars, for the ten Boeing new generation aircraft leases. In accordance with the aircraft lease agreements, the U.S. dollar amount of the lease payments are fixed based on the value of the 10-year U.S. Swap Rate Swap Rate The rate of the fixed portion of a swap as determined by its particular market. This is the rate at which the swap will occur for one of the parties entering into the agreement. on the day the aircraft is delivered. WestJet has managed this exposure by entering into Interest Rate Collar and Forward Starting Swap agreements. Interest Rate Collar agreements on the first three new generation aircraft expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. within the collar range, and therefore without any financial effect to the Corporation. As at September 30, 2001 the fair value of the remaining seven contracts, for aircraft to be delivered between November 2001 and December 2002, was a loss of $5,774,703 U.S. As a condition of these agreements and dependant on Adj. 1. dependant on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, contingent upon, dependant upon, dependent on, dependent upon, depending on, contingent current fair market valuations, the Corporation may be required to post additional cash collateral with its counter parties. As at September 30, 2001 the Corporation had restricted cash of $4,082,000 U.S. on deposit with its counter parties. 2. Per share amounts: The Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants (CICA) is the umbrella body for the Chartered Accountant profession in Canada and Bermuda. Membership of the CICA totals 70,000 Chartered Accountants and 8,500 students. has approved a new standard for the computation, presentation and disclosure of per share amounts. Under the new standard, the treasury stock method is used instead of the imputed Attributed vicariously. In the legal sense, the term imputed is used to describe an action, fact, or quality, the knowledge of which is charged to an individual based upon the actions of another for whom the individual is responsible rather than on the individual's earnings method to determine the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). of stock options and other dilutive instruments. Under the treasury stock method, only "in the money" dilutive instruments impact the diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. calculations. In computing computing - computer diluted net earnings per share, 647,723 shares were added to the weighted average number of common shares outstanding during the three months ended September 30, 2001 (2000 - 2,117,717 shares) and 966,802 shares were added to the weighted average number of common shares outstanding during the nine months ended September 30, 2001 (2000 - 2,164,858 shares) for the dilutive effect of employee stock options.
3 . Share capital:
(a) Issued:
-------------------------------------------------------------
2001
-------------------------------------------------------------
Number Amount
-------------------------------------------------------------
Common shares:
Balance, beginning of period 44,998,583 $125,390
Exercise of options 1,312,015 3,750
-------------------------------------------------------------
Balance, end of period 46,310,598 $129,140
-------------------------------------------------------------
(b) Stock Option Plan:
Changes in the number of options, with their weighted average
exercise prices, are summarized below:
-------------------------------------------------------------
2001
Weighted
Number Average
of Exercise
Options Price
-------------------------------------------------------------
Stock options outstanding,
beginning of period 3,358,121 $ 9.64
Granted 1,787,734 21.96
Exercised (1,312,015) 2.86
Cancelled (53,485) 20.20
-------------------------------------------------------------
Stock options outstanding,
end of period 3,780,355 $ 17.67
-------------------------------------------------------------
Exercisable, end of period 586,886 $ 3.63
-------------------------------------------------------------
4. Leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. commitments: The Corporation has entered into operating leases Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. for aircraft, buildings, computer hardware, and software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. and capital leases relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc computer hardware, vehicles and aircrafts. The payment obligations on a calender CALENDER. An almanac. Julius Caesar ordained that the Roman year should consist of 365 days, except every fourth year, which should contain 366, the additional day to be reckoned by counting the twenty-fourth day of February (which was the 6th of the calends of March) twice. - year basis, are as follows:
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Capital Leases Operating Leases
---------------------------------------------------------------------
October 2001 - December 2001 $ 1,186 $ 6,366
2002 4,724 25,300
2003 4,605 23,238
2004 4,546 21,244
2005 and thereafter 7,455 163,306
---------------------------------------------------------------------
Total lease payments $ 22,516 $239,454
----------------
Less imputed interest at 8.4% (4,068)
----------------------------------------------------
Net minimum lease payments 18,448
Current portion of obligations under
capital lease (3,315)
----------------------------------------------------
$ 15,133
----------------------------------------------------
5. Employee profit share: The provision for employee profit share is estimated based on actual year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings results. The actual employee profit share amount is to be determined by the Board of Directors based on audited financial results at the completion of the financial year. |
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