Ryanair 2004 Annual Report Download - page 58

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27 EARNINGS PER SHARE AND ADJUSTED EARNINGS PER SHARE
Basic earnings per ordinary share (EPS) for Ryanair Holdings plc for the years ended March 31, 2004 and March 31, 2003 has been
computed by dividing the profit attributable to shareholders by the weighted average number of ordinary shares outstanding during
the year.
Diluted earnings per share, which takes account solely of the potential future exercise of share options granted under the group’s
share option schemes, is based on the weighted average number of shar es in issue of 765,130,904 (2003: 766,278,569), including
weighted average share options assumed to be converted of 7,684,120 at March 31, 2004 (2003: 11,223,195).
Reconciliation of adjustedEPS 2004 2003
BasicEPS 27.28 31.71
Adjusted by:
Amortisation of goodwill 0.31 -
Buzz re-organisation 0.40 -
Depreciation 0.43 -
Aircraft rentals 1.75 -
Taxation (0.26) -
Adjusted BasicEPS 29.91 31.71
AdjustedDilutedEPS 29.61 31.24
Number of ordinary shares (in000’s)
-Basic 757,447 755,055
-Diluted 765,131 766,279
Details of share options in issue have been described more fully in note 14.
28 COMMITMENTS AND CONTINGENCIES
Commitments
(a) On January 24, 2002 the company entered into a contract with The Boeing Company (“Boeing”) (the “2002 Boeing contract”)
whereby the company agreed to purchase 100 new Boeing 737-800 “next generation” aircraft, and has additional purchase
options to acquire a further 50 such aircraft. The group has since exercised 5 of these purchase options (2 in the current
year) and takendelivery of 23 aircraft (18in the current year). Additionaldeliveries are scheduled between 2004 and 2009.
The “Basic Price” (equivalent to a standard list price for an aircraft of this type) for each of the Boeing 737-800 “next
generation” aircraft (defined as a per aircraft airframe price, including engines, plus the per aircraft price for certain optional
features agreed between the parties) is US$50,885,100. This “Basic Price” will be increased by (a) an estimated US$900,000
per aircraft for certain “buyer-furnished” equipment the company has asked Boeing to purchase and install on each of the
aircraft, and (b) an “Escalation Factor” designed to increase the Basic Price of any individual aircraft by applying a formula
which reflects increases in the published US Employment Cost and Producer Price indices between the time the Basic Price
was set and the period of six months prior to the delivery of such aircraft.
Boeing has granted Ryanair certain price concessions with regard to the Boeing 737-800 “next generation”aircraft. These will
take the form of credit memoranda to the group for the amount of such concessions, which the company may apply toward
the purchase of goods and services from Boeing or toward certain payments, other than advance payments, in respect of the
purchase of the
(Continued)
Notes
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A N N U A L R E P O RT & F I N A N C I A L S T A T E M E N T S 2 0 0 4