Airtran 2003 Annual Report Download - page 45

4 million shares of common stock under this plan. During 2003, 2002 and 2001, the employees purchased a total of 117,125, 196,424
and 31,396 shares, respectively, at an average price of $8.00, $4.44 and $6.93 per share, respectively.
15. QUARTERLY FINANCIAL DATA (UNAUDITED)
Summarized quarterly financial data for 2003 and 2002 is as follows (in thousands, except per share data):
Quarter
First Second Third Fourth
Fiscal 2003
Operating revenues $208,002 $233,901 $237,311 $238,826
Operating income 8,378 30,703 26,393 20,844
Net income 2,036 57,191 19,613 1,677
Earnings per share, basic $ 0.03 $ 0.79 $ 0.27 $ 0.26
Earnings per share, diluted $ 0.03 $ 0.74 $ 0.24 $ 0.24
Quarter
First Second Third Fourth
Fiscal 2002
Operating revenues $159,304 $190,645 $183,151 $200,270
Operating income (loss) (2,932) 12,154 7,620 14,361
Net income (loss) (3,034) 5,099 1,177 7,503
Earnings (loss) per share, basic $ (0.04) $ 0.07 $ 0.02 $ 0.11
Earnings (loss) per share, diluted $ (0.04) $ 0.07 $ 0.02 $ 0.10
The results of the second quarter of 2003 included a reimbursement of security fees of $38.1 million under the Wartime Act and a
charge of $1.8 million related to the write off of the unamortized portion of debt discount and issuance costs when BCC exercised its
remaining conversion rights related to our 7.75% Series B Senior Convertible Notes.
In the fourth quarter of 2003, we paid off the remaining balance of our 11.27% Senior Secured Notes. Due to the payoff of this note
the results of the fourth quarter of 2003 included a charge of $10.4 million related to the write off of the unamortized portion of debt
discount and issuance costs. Additionally in the fourth quarter of 2003, we reversed $15.9 million of our tax valuation allowance.
The results of the first quarter of 2002 included a credit of $5.6 million resulting from a favorable change in fair value of the Company’s
fuel-related derivative instruments.
During the fourth quarter of 2003 and 2002, year-end adjustments resulted in increasing income before income taxes by approximately
$0.3 million and $1.5 million, respectively, the majority of which relates to revisions of revenue and expenses recorded earlier in the
respective year.
During the year, we provide for income taxes using anticipated effective annual tax rates. The rates are based on expected operating
results and permanent differences between book and tax income. Adjustments are made each quarter for changes in the anticipated
rates used in previous quarters. If the actual annual effective rates had been used in each of the quarters of 2003 and 2002, net
income for the first through fourth quarters of 2003 would have been $2.0 million, $57.1 million, $19.3 million and $22.1 million,
respectively, and net income (loss) for the first through fourth quarters of 2002 would have been ($3.2) million, $5.3 million, 1.2 million
and $7.5 million, respectively.
16. SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental cash flow information is summarized as follows for the years ended December 31,
(in thousands): 2003 2002 2001
SUPPLEMENTAL DISCLOSURE OF CASH FLOW ACTIVITIES:
Cash paid for interest, net of amounts capitalized $22,400 $ 26,135 $ 35,530
Cash paid (received) for income taxes, net of amounts refunded 231 (1,328) 1,506
Noncash financing and investing activities:
Purchase and sale/leaseback of aircraft 22,359 455,654 305,271
Gain on sale/leaseback of aircraft and payment of debt 3,000 46,000 34,100
Repayment of debt and sale/leaseback of aircraft —— 63,144
Conversion of debt to equity 5,500 — 12,000
Acquisition of equipment for capital leases —703 —
Acquisition of rotable inventory —— 19,658
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