Air Canada 2013 Annual Report Download - page 20

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2013 Air Canada Annual Report
20
6. RESULTS OF OPERATIONS – FULL YEAR 2013 VERSUS FULL YEAR 2012
The following table and discussion compares results of Air Canada for the full year of 2013 versus the full year of 2012.
Full Year Change
(Canadian dollars in millions, except per share figures) 2013 2012 $ %
Operating revenues
Passenger $11,021 $10,737 $ 284 3
Cargo 474 488 (14) (3)
Other 887 889 (2) –
Total revenues 12,382 12,114 268 2
Operating expenses
Aircraft fuel 3,534 3,561 (27) (1)
Wages, salaries, and benefits 2,247 2,110 137 6
Benefit plan amendments(1) (82) (127) 45 (35)
Capacity purchase agreements 1,123 1,072 51 5
Airport and navigation fees 983 992 (9) (1)
Aircraft maintenance 632 672 (40) (6)
Sales and distribution costs 613 603 10 2
Depreciation, amortization and impairment(2) 578 669 (91) (14)
Aircraft rent 318 336 (18) (5)
Food, beverages and supplies 289 291 (2) (1)
Communications and information technology 190 188 2 1
Other 1,338 1,305 33 3
Total operating expenses 11,763 11,672 91 1
Operating income 619 442 177
Non-operating income (expense)
Foreign exchange gain (loss) (120) 106 (226)
Interest income 32 37 (5)
Interest expense(3) (397) (304) (93)
Interest capitalized 46 18 28
Net financing expense relating to employee benefits (208) (288) 80
Gain (loss) on financial instruments recorded at fair value 37 (20) 57
Loss on investments in Aveos – (65) 65
Other (7) (6) (1)
Total non-operating expense (617) (522) (95)
Income (loss) before income taxes and discontinued operations 2 (80) 82
Income taxes 8 (1) 9
Net income (loss) from continuing operations $10 $(81) $ 91
Net loss from discontinued operations – Aveos $– $(55) $ 55
Net income (loss) $10 $(136) $ 146
Adjusted net income(4) $ 340 $55 $ 285
EBITDAR, excluding benefit plan amendments(1)(5) $ 1,433 $1,320 $ 113
EBITDAR(5) $ 1,515 $1,447 $ 68
Basic and diluted earnings (loss) per share from continuing operations $0.02 $(0.31) $ 0.33
Basic and diluted loss per share from discontinued operations $– $(0.20) $ 0.20
Basic and diluted earnings (loss) per share $0.02 $(0.51) $ 0.53
Adjusted net income per share – diluted(4) $ 1.20 $0.20 $ 1.00
(1) In 2013, Air Canada recorded an operating expense reduction of $82 million related to amendments to defined benefit pension plans. In 2012, Air Canada recorded an
operating expense reduction of $127 million related to changes to the terms of the ACPA collective agreement pertaining to retirement age.
(2) In 2013, Air Canada recorded an impairment charge of $30 million, of which $24 million related to Airbus A340-300 aircraft.
(3) In 2013, Air Canada recorded an interest charge of $95 million related to the purchase of its senior secured notes which were to become due in 2015 and 2016.
(4) Adjusted net income (loss) and adjusted net income (loss) per share – diluted are non-GAAP financial measures. Refer to section 20 “Non-GAAP Financial Measures” of this
MD&A for additional information.
(5) EBITDAR (earnings before interest, taxes, depreciation, amortization, impairment and aircraft rent) is a non-GAAP financial measure. Refer to section 20 "Non-GAAP
Financial Measures" of this MD&A for additional information.