Westjet 2013 Annual Report Download - page 61

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WestJet Annual Report 2013 61
Return on invested capital
($ in thousands)
2013
2012
Change
Earnings before income taxes 372,085 340,229 31,856
Add:
Finance costs 43,447 48,900 (5,453)
Implicit interest in operating leases
(i)
92,214 91,041 1,173
507,746 480,170 27,576
Invested capital:
Average long-term debt
(ii)
808,722 783,880 24,842
Average obligations under finance leases(iii)
1,625
(1,625)
Average shareholders' equity 1,531,073 1,421,261 109,812
Off-balance-sheet aircraft leases
(iv)
1,317,345 1,300,590 16,755
3,657,140 3,507,356 149,784
Return on invested capital 13.9% 13.7% 0.2 pts
(i) Interest implicit in operating leases is equal to 7.0 per cent of 7.5 times the trailing 12 months of aircraft lease expense. 7.0 per cent is a proxy and does not
necessarily represent actual for any given period.
(ii) Average long-term debt includes the current portion and long-term portion.
(iii) Average obligations under finance leases include the current portion and long-term portion.
(iv) Off-balance-sheet aircraft leases are calculated by multiplying the trailing 12 months of aircraft leasing expense by 7.5. At December 31, 2013, the trailing 12
months of aircraft leasing costs totaled $175,646 (2012 – $173,412).
Operating cash flow per share
($ in thousands, except per share data)
2013
2012
Change
Cash flow from operating activities
608,147
722,624
(114,477)
Weighted average number of shares outstanding - diluted 132,074,002 135,964,118 (3,890,116)
Diluted operating cash flow per share
4.60
5.31
(13.4%)
Free cash flow
($ in thousands, except per share data) 2013 2012 Change
Cash flow from operating activities 608,147 722,624 (114,477)
Adjusted for:
Aircraft additions
(639,592)
(218,116)
(421,476)
Other property and equipment and intangible additions (75,580) (51,191) (24,389)
Free cash flow (107,025) 453,317 (560,342)
Weighted average number of shares outstanding - diluted
132,074,002
135,964,118
(3,890,116)
Diluted free cash flow per share
(0.81)
3.33
(124.3%)