Printer Friendly

DELTA AIR LINES REPORTS JUNE 1993 QUARTER NET INCOME; FISCAL YEAR 1993 LOSS

 ATLANTA, July 22 /PRNewswire/ -- Delta Air Lines, Inc. (NYSE: DAL) today reported unaudited net income of $7,149,000 for the quarter ended June 30, 1993 -- up sharply from a net loss of $180,154,000 for the same quarter a year ago.
 Operating income for the quarter totaled $57,262,000, an improvement from the operating loss of $265,447,000 in the June 1992 quarter.
 After preferred stock dividend requirements, Delta recorded a primary and fully diluted loss per common share of 41 cents for the June 1993 quarter, compared with a primary and fully diluted loss per common share of $3.72 for the same quarter a year ago.
 "The June 1993 quarter results reflect the continuing efforts of the Delta people to return the company to profitability," Delta Chairman, President and Chief Executive Officer Ronald W. Allen said. "During the quarter, we made significant progress with programs to reduce costs and increase revenues. As a result, we were able to lower seat mile costs by two percent (exclusive of accounting changes) while increasing operating revenue per seat mile nine percent."
 Allen also noted that in June monthly passenger revenue exceeded $1 billion for the first time in the company's history.
 For fiscal year 1993, Delta reported an unaudited net loss of $1,001,892,000 ($22.32 primary and fully diluted loss per common share after preferred stock dividend requirements) and an operating loss of $575,439,000.
 These results include a onetime, after tax charge of $817,945,000 for the retroactive adoption of accounting standard SFAS 106; an after tax increase of $81,284,000 in current year expenses related to SFAS 106; and a onetime benefit of $230,801,000 for the retroactive adoption of SFAS 109. The results also include a pre-tax improvement of $47,000,000 for changes in accounting estimates related to the company's flight equipment depreciation policy and a change in assumption regarding the expected return on plan assets associated with assigned benefit pension plans.
 Excluding the effect of all accounting changes, the net loss for fiscal year 1993 was $369,744,000 ($9.41 primary and fully diluted loss per common share after preferred stock dividend requirements) and the operating loss was $493,417,000. These results compare with fiscal 1992's net loss of $506,318,000 ($10.60 primary and fully diluted loss per common share after preferred stock dividend requirements) and an operating loss of $674,906,000.
 "Our financial performance in fiscal 1993 is unacceptable," Mr. Allen stated. "However, fiscal 1993 results, while distorted by the effects of required accounting changes, were an improvement from the previous year."
 Fiscal year 1993 results also include an $82.5 million pre-tax restructuring charge recorded in the March 1993 quarter related to the company's fleet simplification efforts.
 The two accounting estimate changes discussed above, which were effective April 1, 1993, and positively impacted fiscal year 1993 performance, also resulted in a $47,000,000 pre-tax improvement for the June 1993 quarter.
 Operating revenues in the June 1993 quarter totaled $3.131 billion, an 11 percent increase from the June 1992 quarter. Passenger revenue grew 10 percent to $2.897 billion, due to five percent growth in traffic to 20.904 billion revenue passenger miles and a five percent improvement in the passenger mile yield to 13.86 cents. Cargo revenue rose 10 percent to $176.5 million, as cargo ton miles increased seven percent and the ton mile yield grew two percent. All other revenue totaled $57.9 million. Operating revenue per available seat mile increased nine percent to 9.31 cents.
 Operating expenses in the June 1993 quarter totaled $3.074 billion, a decrease of 0.6 percent from the June 1992 quarter. Operating capacity grew two percent to 33.633 billion available seat miles. The average cost per available seat mile, including the ongoing effect of SFAS 106 and changes in accounting estimates, improved 2.5 percent to 9.14 cents. Excluding the ongoing effect of SFAS 106 and changes in accounting estimates, the cost per available seat mile improved 2.0 percent to 9.18 cents.
 Salaries and related expenses in the June 1993 quarter increased less than one percent to $1.173 billion, reflecting a six percent decrease in the average level of employment to 72,877 personnel, a five percent pay cut for domestic noncontract personnel effective Feb. 1, 1993, and a $12.7 million benefit from changes in accounting estimates related to pension expenses, partly offset by a $32.3 million increase in expenses related to SFAS 106.
 Aircraft fuel expense in the June 1993 quarter declined one percent from the previous year as fuel gallons consumed rose one percent and the fuel cost per gallon decreased two percent to 60.15 cents. Aircraft maintenance materials and repairs expense declined 26 percent due to lower levels of maintenance overhaul activity and engine repairs expense. Aircraft rental expense rose three percent, the result of additional leased aircraft in the fleet. Facilities and other rent expense decreased 16 percent, mainly due to reductions in rental rates. Landing fees increased seven percent, primarily the result of growth in international operations.
 Passenger service expense was down four percent, as cost control programs implemented during the year more than offset the increase in passenger traffic. Passenger commissions increased 10 percent, due to growth in passenger revenue.
 Depreciation and amortization expenses decreased 10 percent, mainly reflecting a $34.3 million reduction in depreciation expense due to an accounting estimate change. All other operating expenses increased five percent, primarily the result of growth in international operations, but mitigated by the effect of cost control programs in a number of areas in the company.
 The passenger load factor in the June 1993 quarter increas 62.15 percent from 60.20 percent in the June 1992 quarter, while the breakeven load factor declined to 60.93 percent from 66.29 percent.
 Nonoperating expense in the June 1993 quarter increased $32.5 million to $47.1 million compared to the June 1992 quarter, which included a $30.1 million gain on the disposition of flight equipment.
 After providing $3.1 million for income taxes, net of $589,000 amortization of investment tax credits, and $27.6 million in preferred stock dividends, the net loss to common shareholders in the June 1993 quarter was $20.5 million.
 For fiscal year 1993, operating revenues totaled $11.997 billion, up 11 percent from fiscal year 1992. Passenger revenue increased nine percent to $11.075 billion, as revenue passenger miles grew 13 percent to 82.406 billion and the passenger mile yield declined three percent to 13.44 cents. Cargo revenue increased 19 percent to $697.4 million, the result of 16 percent growth in cargo ton miles and a three percent increase in the ton mile yield. All other revenues totaled $224.0 million, compared to $134.0 million in fiscal 1992, primarily due to fees collected in fiscal 1993 for passenger ticket changes.
 Total operating expenses for fiscal year 1993 were $12.572 billion, an increase of nine percent from fiscal year 1992. Operating capacity rose seven percent to 132.282 billion available seat miles. The average cost per available seat mile, including the effects of SFAS 106, changes in accounting estimates, and the restructuring charge, increased 1.6 percent to 9.50 cents. Excluding these items, the cost per available seat mile was 9.38 cents, compared to 9.35 cents in fiscal year 1992.
 Salaries and related expenses grew eight percent to $4.798 billion, the result of increased payroll overhead costs, a one percent increase in the average level of employment to 74,594 personnel and a $129.0 million increase in expenses related to SFAS 106, partly offset by a five percent wage reduction for domestic noncontract personnel effective February 1, 1993, and a $12.7 million benefit from changes in accounting estimates related to pension benefits. Aircraft fuel expense rose seven percent to $1.592 billion, as fuel gallons consumed increased six percent and the average fuel cost per gallon grew one percent to 62.95 cents.
 Depreciation and amortization expense in fiscal year 1993 rose 16 percent to $734.9 million, due to an increase in owned flight and ground equipment, offset in part by a $34.3 million benefit resulting from the change in accounting estimate for depreciation.
 All other operating expenses in fiscal year 1993 increased 10 percent, reflecting growth in traffic, revenue and international operations, and the $82.5 million restructuring charge.
 The passenger load factor in fiscal year 1993 increased to 62.30 percent from 59.05 percent in fiscal year 1992, while the breakeven load factor increased to 65.53 percent from 62.99 percent.
 Nonoperating expense in fiscal year 1993 totaled $75.9 million, compared to $111.5 million in fiscal year 1992. Net interest expense increased $25.5 million to $176.9 million. The company recorded gains on the sale of flight equipment totaling $64.8 million in fiscal year 1993, compared to $34.5 million in fiscal year 1992. All other nonoperating income totaled $36.2 million. Results for fiscal year 1992 include a $50.0 million write-off ($43.0 million nonoperating and $7.0 million operating expense) related to Delta's participation in Pan Am's failed reorganization.
 The $651.3 million pre-tax loss for fiscal 1993 was reduced by an income tax benefit of $233.6 million and by the amortization of investment tax credits totaling $2.9 million. After providing $110.4 million in preferred stock dividends and recognizing a cumulative onetime after tax charge of $817.9 million for SFAS 106 and a cumulative onetime benefit of $230.8 million for SFAS 109, the net loss to common shareholders in fiscal year 1993 was $1.112 billion.
 DELTA AIR LINES, INC. (NYSE)
 Summary of Consolidated Financial Results
 (Unaudited)
 Periods Ended
 June 30
 Quarters Ended June 30: 1993 1992
 Operating Revenues $ 3,131.5 mln $ 2,826.0 mln
 Net Income(Loss)After Taxes $ 7,149,000 $(180,154,000)
 Net Loss Attributable to
 Common Shareholders $(20,428,000) $(184,782,000)
 Per Share Amounts:
 Primary $(0.41) $(3.72)
 Fully Diluted $(0.41) $(3.72)
 Weighted Average Number of
 Shares Used to Compute
 Net Income (Loss)
 Per Common Share:
 Primary 50,029,242 49,648,459
 Fully Diluted 50,029,242 49,648,459
 Twelve Months Ended June 30:
 Operating Revenues $ 11,996.6 mln $10,836.8 mln
 Net Loss after Taxes $(414,748,000) $(506,318,000)
 Net Loss after Taxes and
 Cumulative Effect of
 Accounting Changes $(1,001,892,000) $(506,318,000)
 Net Loss Attributable to
 Common Shareholders $(1,112,284,000) $(524,885,000)
 Per Share Amounts (before
 cumulative effect of
 accounting changes):
 Primary $(10.54) $(10.60)
 Fully Diluted $(10.54) $(10.60)
 Per Share Amounts (after
 cumulative effect of
 accounting changes):
 Primary $(22.32) $(10.60)
 Fully Diluted $(22.32) $(10.60)
 Weighted Average Number of
 Shares Used to Compute
 Loss Per Common Share:
 Primary 49,836,959 49,498,411
 Fully Diluted 49,836,959 49,498,411
 -0- 7/22/93
 /CONTACT: Delta Air Lines Corporate Communications, 404-715-2590, or Investor Relations, 404-715-6679/
 /FIRST ADD -- TABULAR MATERIAL -- TO FOLLOW/
 (DAL)


CO: Delta Air Lines, Inc. ST: Georgia IN: AIR SU: ERN

BN-BR -- AT001 -- 4332 07/22/93 08:57 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 22, 1993
Words:1900
Previous Article:ESCAGENETICS' PHYTOPHARMACEUTICALS INC. NAMES SCIENTIFIC ADVISORY BOARD; DR. MEINHART ZENK NAMED CHAIRMAN
Next Article:SONAT REPORTS SECOND QUARTER RESULTS, ANNOUNCES DIVIDEND INCREASE AND STOCK SPLIT
Topics:


Related Articles
DELTA AIR LINES REPORTS DECEMBER 1992 QUARTER, CALENDAR YEAR RESULTS
DELTA AIR LINES REPORTS MARCH 1993 QUARTER RESULTS
COMAIR HOLDINGS REPORTS FISCAL 1993 EARNINGS
DELTA AIR LINES REPORTS NET INCOME OF $60.35 MILLION FOR THE SEPTEMBER 1993 QUARTER
DELTA AIR LINES REPORTS DECEMBER QUARTER RESULTS, DECLARES DIVIDENDS
DELTA AIR LINES REPORTS PROFIT FOR SEPTEMBER 1994 QUARTER; OPERATING INCOME GROWS 27 PERCENT
DELTA AIR LINES REPORTS DECEMBER 1994 QUARTER RESULTS; COST REDUCTIONS DRIVE IMPROVEMENT FROM PREVIOUS YEAR
DELTA AIR LINES REPORTS BEST-EVER QUARTERLY EARNINGS; ACHIEVES COST REDUCTION TARGET
DELTA AIR LINES REPORTS BEST-EVER QUARTERLY EARNINGS; ACHIEVES COST REDUCTION TARGET
DELTA REPORTS RECORD MARCH 1996 QUARTER RESULTS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters