Ryanair 2006 Annual Report Download - page 64

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22 EARNINGS PER SHARE AND ADJUSTED EARNINGS PER SHARE
Basic earnings per ordinary share (EPS) for Ryanair Holdings plc for the years ended March 31, 2006 and March 31, 2005 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 shares in issue of 771,781,273 (2005: 764,003,106), including
weighted average share options assumed to be converted of 4,948,771 at March 31, 2006 (2005: 4,092,416).
Reconciliation of adjusted EPS 2006 2005
cent cent
Basic EPS 40.00 36.85
Adjusted by:
Purchase accounting adjustment - (1.57)
Aircraft insurance claim (0.68) -
Adjusted basic EPS 39.32 35.28
Adjusted diluted EPS 39.07 35.09
Number of ordinary shares (in 000’s) used for EPS and adjusted EPS
-Basic 766,833 759,911
-Diluted 771,781 764,003
Details of share options in issue have been described more fully in note 14.
23 COMMITMENTS AND CONTINGENCIES
Commitments
(a) In January 2002 the group entered into a contract with The Boeing Company (“Boeing”) (the “2002 Boeing contract”)
whereby the group agreed to purchase 100 new Boeing 737-800 “next generation” aircraft, and received purchase rights to
acquire a further 50 such aircraft. The 2002 Boeing contract was superseded by a contract entered into with Boeing in
January 2003 (the “2003 Boeing contract”) whereby the group agreed to purchase 125 new Boeing 737-800 “next
generation” aircraft thus adding “firm” orders for 22 aircraft to the existing “firm” orders (100 “firm” plus 3 options
exercised) under the 2002 Boeing contract. In addition the group acquired purchase rights over a further 78 aircraft bringing
the number of option aircraft to 125.
In February 2005 the group entered into a contract with Boeing (the “2005 Boeing contract”) whereby the group agreed to
purchase 70 new Boeing 737-800 “next generation” aircraft and acquired additional purchase rights to acquire a further 70
such aircraft over a five year period from 2006 to 2011. The aircraft to be delivered after January 1, 2005, arising from the
2002 and 2003 Boeing contracts, benefit from the lower price under the 2005 Boeing contract. In addition, the orders for the
remaining 89 “firm” aircraft still to be delivered at January 1, 2005 and the remaining additional purchase rights in respect
of 123 aircraft granted under the 2002 and 2003 Boeing contracts are governed by the 2005 Boeing contract from January
2005.
In June 2006 the group exercised 10 options under the 2005 contract whereby it will increase its firm aircraft deliveries by
this amount during fiscal years 2008 (3) and 2009 (7).
(Continued)
Notes
64
ANNUAL REPORT & FINANCIAL STATEMENTS 2006