Air Canada 2014 Annual Report Download - page 57

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57
2014 Management’s Discussion and Analysis
10. QUARTERLY FINANCIAL DATA
The following table summarizes quarterly financial results for Air Canada for the last eight quarters.
CANADIAN DOLLARS IN MILLIONS,
EXCEPT WHERE INDICATED
2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
OPERATING REVENUES $ 2,952 $ 3,057 $ 3,479 $ 2,894 $ 3,065 $ 3,305 $ 3,798 $ 3,104
Aircraft fuel 870 831 1,002 831 918 962 1,076 791
Ownership (DAR) (1)(2) 251 211 210 224 209 211 223 213
Other operating expenses (3)(4)(5) 1,937 1,841 1,851 1,704 2,000 1,887 1,973 1,994
OPERATING EXPENSES 3,058 2,883 3,063 2,759 3,127 3,060 3,272 2,998
OPERATING INCOME (LOSS) (106) 174 416 135 (62) 245 526 106
TOTAL NON-OPERATING INCOME
(EXPENSE) (6) (154) (197) (125) (141) (279) (22) (203) (206)
Income taxes - - 8 - - - - -
NET INCOME (LOSS) $ (260) $ (23) $ 299 $ (6) $ (341) $ 223 $ 323 $ (100)
EARNINGS (LOSS) PER SHARE – DILUTED $ (0.95) $ (0.0 9) $ 1.05 $ (0.02) $ (1.20) $ 0.75 $ 1.10 $ (0 .35)
EBITDAR, EXCLUDING THE IMPACT OF
BENEFIT PLAN AMENDMENTS (3)(6) $ 145 $ 385 $ 626 $ 277 $ 147 $ 456 $ 749 $ 319
EBITDAR (7) $ 145 $ 385 $ 626 $ 359 $ 147 $ 456 $ 749 $ 319
ADJUSTED NET INCOME (LOSS) (8) $ (143) $ 115 $ 365 $ 3 $ (132) $ 139 $ 457 $ 67
ADJUSTED NET INCOME (LOSS)
PER DILUTED SHARE (8) $ (0.52) $ 0.41 $ 1.29 $ 0.01 $ (0.46) $ 0.47 $ 1.55 $ 0.23
1 DAR refers to the combination of depreciation, amortization and impairment, and aircraft rent expense.
2 In the first quarter of 2013, Air Canada recorded an impairment charge of $24 million related to Airbus A340-300 aircraft.
3 In the fourth quarter of 2013, Air Canada recorded an operating expense reduction of $82 million related to changes to early retirement provisions in Air Canada’s defined
benefit pension plans.
4 In the second quarter of 2014, Air Canada recorded favourable tax-related provision adjustments of $41 million.
5 In the fourth quarter of 2014, one-time payments totaling $30 million were made to ACPA members under a collective agreement concluded in October 2014.
6 In the third quarter of 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.
7 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.
8 Adjusted net income (loss) and adjusted net income (loss) per diluted share are non-GAAP financial measures. Refer to section 20 “Non-GAAP Financial Measures” of this MD&A for
additional information.
The following table provides major quarterly operating statistics for Air Canada for the last eight quarters.
2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Revenue passenger miles (millions) 13,087 14,093 16,726 12,882 13,466 15,495 18,565 14,090
Available seat miles (millions) 16,164 16,972 19,404 16,033 16,774 18,413 21,299 17,403
Passenger load factor (%) 81.0 83.0 86.2 80.3 80.3 84.2 87.2 81.0
Passenger PRASM (cents) 15.4 16.0 16.2 15.7 15.3 15.9 16.1 15.6
CASM, excluding the impact of benefit plan
amendments (cents) (1)
18.9 17.0 15.8 17.7 18.6 16.6 15.4 17. 2
Adjusted CASM (cents) (2) 12.5 11.7 10.4 12.1 12.2 11. 2 10.1 12.1
Economic fuel price per litre (cents) (3) 92.4 85.7 89.6 88.4 94.7 91.6 90.0 80.7
1 In the fourth quarter of 2013, Air Canada recorded an operating expense reduction of $82 million related to changes to early retirement provisions in Air Canada’s defined
benefit pension plans.
2 Adjusted CASM is a non-GAAP financial measure. Refer to section 20 “Non-GAAP Financial Measures” of this MD&A for additional information.
3 Includes fuel handling expenses. Economic fuel price per litre is a non-GAAP financial measure. Refer to section 7 “Results of Operations” of this MD&A for additional information.