/C O R R E C T I O N -- Hawaiian Holdings/ PR Newswire HONOLULU, Jan. 29, 2013 In the news release, Hawaiian Holdings Reports 2012 Full Year and Fourth Quarter Financial Results, issued 29-Jan-2013 by Hawaiian Holdings over PR Newswire, we are advised by the company that the "Percentage of Projected Fuel Requirements Hedged" column for "Second Quarter 2014" in Table 5 has been updated. The complete, corrected release follows: Hawaiian Holdings Reports 2012 Full Year and Fourth Quarter Financial Results HONOLULU, Jan. 29, 2013 /PRNewswire/ -- Hawaiian Holdings, Inc. (NASDAQ: HA) ("Holdings" or the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the full year 2012 and the fourth quarter of 2012. (Logo: http://photos.prnewswire.com/prnh/20040827/LAF044LOGO) 2012 Full Year Financial Highlights oAdjusted net income, reflecting economic fuel expense and excluding lease termination costs, of $55.6 million or $1.06 per diluted share, an increase of 28.7% year-over-year. oGAAP net income of $53.2 million or $1.01 per diluted share. oOperating cost per available seat mile (CASM), excluding fuel and lease termination costs, decrease of 6.0% year-over-year. oAdjusted operating margin of 7.0%, reflecting economic fuel expense and excluding lease termination costs. oUnrestricted cash and cash equivalents increase of 33.5% year-over-year. oReturn on invested capital, pre-tax, of 14.9%. Fourth Quarter 2012 Financial Highlights oAvailable seat mile (ASM) for scheduled operations increase of 29.2% year-over-year. oAdjusted net income, reflecting economic fuel expense, of $0.1 million or $0.00 per diluted share. oGAAP net loss of $3.4 million or $0.07 cents per diluted share. oCASM, excluding fuel, decrease of 11.3% year-over-year. oUnrestricted cash and cash equivalents of $405.9 million. Mark Dunkerley, the Company's President and Chief Executive Officer, commented that "A good year of growth and improving financial performance was finished off by a disappointing break-even result in the fourth quarter. The sharp weakening of the Yen, continued excess capacity in certain markets and an accounting charge all worked to depress our earnings for the period despite many other things going right for the business. The year as a whole was every bit as busy and exciting as we had forecast. We added four new long haul destinations, eight long haul and short haul aircraft, opened a hub on Maui and added approximately 600 employees to our rolls, all in 2012. Throughout it all, the employees of Hawaiian Airlines continued to deliver the very highest quality travel and shipping experience to our customers. Our employees' tireless dedication to our customers and to our business is a distinguishing strength of Hawaiian Airlines. 2013 promises to be an equally exciting year for the company with new destinations, new aircraft and more employees being planned." The fourth quarter 2012 results reflect an out-of-period frequent flyer adjustment related to the timing of revenue recognized for mileage credits sold to participating companies in previous years. This adjustment resulted in a net decrease to pre-tax income of $7.3 million in the quarter, or $0.08 per diluted share ($7.9 million decrease to passenger revenue and $0.6 million decrease to other operating expense). See Table 2 for the impact of this adjustment on selected statistical data. Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables. Liquidity and Capital Resources As of December 31, 2012, the Company had: oUnrestricted cash and cash equivalents of $405.9 million. oAvailable borrowing capacity of $68.9 million under Hawaiian's Revolving Credit Facility. oOutstanding debt and capital lease obligations of approximately $661 million consisting of the following: o$246.4 million outstanding under secured loan agreements to finance a portion of the purchase price for four Airbus A330-200 aircraft. o$170.7 million in secured loan agreements for a portion of the purchase price for 15 previously leased Boeing 717-200 aircraft. o$106.3 million in capital lease obligations for an Airbus A330-200 and two Boeing 717-200 aircraft. o$64.7 million outstanding under floating rate notes issued in conjunction with the acquisition of three Boeing 767-300 ER aircraft. o$72.7 million outstanding of Convertible Senior Notes. The Company expects to take delivery of five Airbus A330-200 aircraft in 2013, and has entered into debt and lease financing commitments for the first four deliveries in the first half of the year. The increase in Hawaiian's fleet resulting from the delivery of these five Airbus A330-200 aircraft in 2013 will be partially offset by a decrease of four Boeing 767-300ER aircraft during the year, with three aircraft returned at the end of their lease terms and one planned retirement. In January 2013, the Company signed a Memorandum of Understanding for the purchase of 16 new Airbus A321neo aircraft for delivery between 2017 and 2020, with the rights to purchase an additional nine aircraft. The long-range, single-aisle aircraft will complement Hawaiian's existing fleet of wide-body, twin-aisle aircraft used for long-haul flying between Hawai'i and the U.S. West Coast. 2012 Highlights Operational Highlights oRanked #1 nationally for on-time performance, for 10 out of the 11 months reported in 2012, by the U.S. Department of Transportation Air Travel Consumer Report. oRanked second overall in the 2012 Airline Quality Rating Report. oIntroduced a Maui hub offering improved connections between Maui and Neighbor Island destinations, as well as additional flights to and from the West Coast. oProvided chartered air transportation for the Oakland Raiders for the 13^th consecutive season. oSigned a new three-year contract with the Association of Flight Attendants. oBecame the first airline to receive aviation carbon credits for reducing carbon dioxide emissions. Fleet oAdded four new Airbus A330-200 aircraft in March, April, May and June in 2012 for North America and International service. oAdded two Boeing 717-200 aircraft in January and February 2012 for Neighbor Island service. oTook delivery of two ATR42-500 twin-turboprop aircraft to inaugurate new service to Molokai and Lanai in 2013. New routes and increased frequencies oHonolulu to Fukuoka, Japan daily service launched April 2012 oHonolulu to New York City (JFK), New York, daily service launched June 2012 oHonolulu to Sapporo, Japan three-times-weekly service launched October 2012 oHonolulu to Brisbane, Australia three-times-weekly service launched November 2012 oHonolulu to Seoul, South Korea increased from four times weekly to daily July 2012 oMaui to San Jose and Oakland, California increased from three and four times weekly, respectively, to daily October 2012 oAnnounced Honolulu to Auckland, New Zealand three-times-weekly service beginning March 2013 oAnnounced Honolulu to Taipei, Taiwan with service daily beginning July 2013 oHonolulu to Sydney, Australia from daily to ten weekly flights April to May 2013 oMaui to Los Angeles, California increased from daily to twice daily service summer 2013 New Partnership, Code-Share and Frequent Flyer agreements oPartnered with Air China and China International Travel Service to offer connections and market Hawaii vacation packages in China. oEntered into new frequent flyer and code-share agreements with All Nippon Airways, JetBlue and Virgin America. Investor Conference Call Hawaiian Holdings' quarterly earnings conference call is scheduled to begin today (January 29, 2013) at 4:30 p.m. Eastern Time (USA). The conference call will be broadcast live over the Internet. Investors may listen to the live audio webcast on the investor relations section of the Company's website at www.HawaiianAirlines.com. For those who are not available for the live webcast, the call will be archived for 90 days on Hawaiian's investor website. About Hawaiian Airlines Hawaiian has led all U.S. carriers in on-time performance for each of the past eight years (2004-2011) as reported by the U.S. Department of Transportation. Consumer surveys by Conde Nast Traveler, Travel + Leisure and Zagat have all ranked Hawaiian the highest of all domestic airlines serving Hawaii. Now in its 84th year of continuous service, Hawaiian is Hawaii's biggest and longest-serving airline, as well as the largest provider of passenger air service from its primary visitor markets on the U.S. mainland. Hawaiian offers nonstop service to Hawaii from more U.S. gateway cities (11) than any other airline, as well as service to Japan, South Korea, the Philippines, Australia, American Samoa, and Tahiti. New nonstop service will begin between Honolulu and Auckland, New Zealand (March 2013) and Taipei, Taiwan (July 2013). Hawaiian also provides approximately 170 daily jet flights between the Hawaiian Islands. Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com. Forward-Looking Statements Statements in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company's current views with respect to certain current and future events and financial performance. Such forward-looking statements include, without limitation, statements by our CEO relating to the 2013 fiscal year; inauguration of service to new destinations; the addition of new aircraft and the addition of new employees; and statements relating to our total capacity and yield on new and existing routes; potential route expansion; changes in our fleet plan; expected delivery and return of aircraft; expected purchase of additional aircraft; the effects of fuel prices on our business; projected increases in headcount; and statements as to other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing. Words such as "expects," "anticipates," "projects," "intends," "plans," "believes," "estimates," variations of such words, and similar expressions are also intended to identify such forward-looking statements. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment, all of which may cause the Company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. The risks, uncertainties and assumptions referred to above that could cause the Company's results to differ materially from the results expressed or implied by such forward-looking statements also include the risks, uncertainties and assumptions discussed from time to time in the Company's other public filings and public announcements, including the Company's Annual Report on Form 10-K for the year ended December 31, 2011 as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. All forward-looking statements included in this document are based on information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements to reflect events or circumstances that may arise after the date of this release. Table 1 Hawaiian Holdings, Inc Consolidated Statements of Operations (in thousands, except for per share data) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2012 2011 % 2012 2011 % Change Change Operating Revenue: Passenger $ 440,735 $ 13.2 % $ $ 19.3 % 389,213 1,767,041 1,480,663 Other 52,251 44,762 16.7 % 195,312 169,796 15.0 % Total 492,986 433,975 13.6 % 1,962,353 1,650,459 18.9 % Operating Expenses: Aircraft fuel, including taxes 175,196 132,494 32.2 % 631,741 513,284 23.1 % and oil Wages and benefits 96,313 81,539 18.1 % 376,574 321,241 17.2 % Aircraft rent 25,074 22,337 12.3 % 98,786 112,883 (12.5) % Maintenance materials and 46,281 47,440 (2.4) % 183,552 169,851 8.1 repairs Aircraft and passenger 28,966 21,924 32.1 % 103,825 82,250 26.2 % servicing Commissions and 25,269 23,380 8.1 % 114,324 96,264 18.8 % other selling Depreciation and 21,912 18,459 18.7 % 85,599 66,262 29.2 % amortization Other rentals and 22,137 18,950 16.8 % 85,623 72,445 18.2 % landing fees Other 39,601 32,990 20.0 % 152,931 125,682 21.7 % Lease termination - - NM - 70,014 NM charges Total 480,749 399,513 20.3 % 1,832,955 1,630,176 12.4 % Operating Income 12,237 34,462 129,398 20,283 Nonoperating Income (Expense): Interest expense and amortization of debt discounts (11,777) (8,701) (43,522) (24,521) and issuance costs Interest income 103 181 580 1,514 Capitalized 3,196 1,964 10,524 7,771 interest Gains (Losses) on (8,835) 4,919 (11,330) (6,862) fuel derivatives Other, net (1,109) (146) 136 733 Total (18,422) (1,783) (43,612) (21,365) Income (Loss) Before Income (6,185) 32,679 85,786 (1,082) Taxes Income tax (2,777) 11,758 32,549 1,567 (benefit) expense Net Income (Loss) $ $ $ $ (3,408) 20,921 53,237 (2,649) Net Income (Loss) Per Common Stock Share: Basic $ $ $ $ (0.07) 0.41 1.04 (0.05) Diluted $ $ $ $ (0.07) 0.40 1.01 (0.05) Weighted Average Number of Common Stock Shares Outstanding: Basic 51,515 50,864 51,314 50,733 Diluted 51,515 52,087 52,535 50,733 Table 2 Hawaiian Holdings, Inc. Selected Statistical Data (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2012 2011 % 2012 2011 % Change Change Scheduled Operations: Revenue passenger 3,272.8 2,601.5 25.8% 12,195.9 10,139.9 20.3% miles (RPM) (a) Available seat miles (ASM) 3,997.5 3,094.7 29.2% 14,660.0 12,022.2 21.9% (a) Passenger revenue per 13.47 ¢ 14.96 ¢ (10.0%) 14.49 ¢ 14.60 ¢ (0.8%) RPM (Yield) Passenger load factor 81.9% 84.1% (2.2) pt 83.2% 84.3% (1.1) pt (RPM/ASM) Passenger revenue per 11.02 ¢ 12.58 ¢ (12.4%) 12.05 ¢ 12.32 ¢ (2.2%) ASM (PRASM) Total Operations: Revenue passenger 3,279.1 2,607.5 25.8% 12,217.6 10,151.2 20.4% miles (RPM) (a) Available seat miles (ASM) 4,006.8 3,104.8 29.1% 14,687.5 12,039.9 22.0% (a) Passenger load factor 81.8% 84.0% (2.2) pt 83.2% 84.3% (1.1) pt (RPM/ASM) Operating revenue per 12.30 ¢ 13.98 ¢ (12.0%) 13.36 ¢ 13.71 ¢ (2.6%) ASM (RASM) Operating cost 12.00 ¢ 12.87 ¢ (6.8%) 12.48 ¢ 13.54 ¢ (7.8%) per ASM (CASM) CASM excluding aircraft fuel 7.63 ¢ 8.60 ¢ (11.3%) 8.18 ¢ 9.28 ¢ (11.9%) (b) CASM excluding aircraft fuel and lease 7.63 ¢ 8.60 ¢ (11.3%) 8.18 ¢ 8.70 ¢ (6.0%) termination charges (b) Gallons of jet fuel consumed 54.5 42.3 28.8% 199.5 164.0 21.6% (a) Average cost per gallon of $ $ 2.9% $ $ 1.3% jet fuel 3.22 3.13 3.17 3.13 (actual) (c) Economic fuel $ $ $ $ cost per 3.27 3.20 2.2% 3.20 3.13 2.2% gallon (c)(d) (a) In millions. (b) See Table 4 for reconciliations of operating expenses excluding aircraft fuel and lease termination charges. (c) Includes applicable taxes and fees. (d) See Table 3 for a reconciliation of economic fuel costs. The table below shows the impact of the pre-tax $7.3 million ($7.9 million decrease to passenger revenue and $0.6 million decrease to operating expense) frequent flyer adjustment reflected in the fourth quarter 2012 results and its impact on the above statistical data. Three months-ended December 31, 2012 Impact in cents Impact to % change from 2011 Impact of FF Adjustment on Statistical Data: Passenger revenue per RPM (Yield) (0.24) ¢ (1.6) % Passenger revenue per ASM (PRASM) (0.20) ¢ (1.6) % Operating revenue per ASM (RASM) (0.20) ¢ (1.4) % CASM excluding aircraft fuel and lease (0.01) ¢ (0.1) % termination charges Table 3. Hawaiian Holdings, Inc. Economic Fuel Expense (in thousands, except per-gallon amounts) The Company believes that economic fuel expense is the best measure of the effect of fuel prices on its business as it most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period. The Company defines economic fuel expense as GAAP fuel expense plus (gains)/losses realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period. Three Months Ended December Twelve Months Ended December 31, 31, 2012 2011 Change 2012 2011 Change Aircraft fuel expense, $ 175,196 $ 132,494 32.2% $ 631,741 - $ 513,284 23.1% including taxes and oil Realized (gains) losses on settlement of 3,054 2,722 12.2% 7,372 430 1614.4% fuel derivative contracts Economic fuel $ 178,250 $ 135,216 31.8% $ 639,113 $ 513,714 24.4% expense Fuel gallons 54,458 42,285 28.8% 199,465 164,002 21.6% consumed Economic fuel $ $ 2.2% $ $ 2.2% cost per gallon 3.27 3.20 3.20 3.13 Table 4. Hawaiian Holdings,Inc. Non-GAAP Financial Reconciliation (in thousands, except per-share data) The Company evaluates its financial performance utilizing various GAAP and non-GAAP financial measures, including, net income (loss), diluted net income (loss) per share, CASM, PRASM, RASM and Passenger Revenue per RPM. Pursuant to Regulation G, the Company has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis. The Company believes that excluding fuel costs from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. In the second quarter of 2011, the Company recorded a pre-tax $70.0 million non-recurring lease termination charge for the purchase of the Company's existing fleet of Boeing 717-200 aircraft that were previously under lease agreements. Three months ended December 31, Twelve months ended December 31, 2012 2011 2012 2011 Diluted Diluted Diluted Diluted Net net net net Net net income income Net income Net income income income (loss) (loss) income per income per (loss) (loss) per share share per share share As reported $ $ $ $ $ $ $ $ - GAAP 1.01 (3,408) (0.07) 20,921 0.40 53,237 (2,649) (0.05) Add: lease termination expenses related to Boeing 717-200 aircraft - - - - - - 42,008 0.83 purchase, net of tax Reflecting $ $ $ $ $ $ $ lease $ termination (3,408) (0.07) 20,921 0.40 53,237 1.01 39,359 0.78 costs Less: unrealized gains (losses) on fuel derivative (3,469) (0.07) 4,584 0.09 (2,375) (0.05) (3,859) (0.07) contracts, net of tax Reflecting economic fuel expense and $ $ $ $ $ $ $ $ lease 1.06 termination 61 - 16,337 0.31 55,612 43,218 0.85 costs Three Months Ended Twelve Months Ended December 31, December 31, 2012 2011 2012 2011 GAAP operating expenses $ 480.7 $ 399.5 $ 1,833.0 $ 1,630.2 Less: lease termination costs related to Boeing - - - 70.0 717 aircraft purchase Adjusted operating expense - excluding 480.7 399.5 1,833.0 1,560.2 lease termination costs Less: aircraft fuel, 175.2 132.5 631.7 513.3 including taxes and oil Adjusted operating expense - excluding $ 305.5 $ 267.0 $ 1,201.3 $ 1,046.9 aircraft fuel and lease termination costs Available Seat Miles 4,006.8 3,104.8 14,687.5 12,039.9 CASM - GAAP 12.00 ¢ 12.87 ¢ 12.48 ¢ 13.54 ¢ Less: lease termination costs related to Boeing - - - 0.58 717 aircraft purchase CASM - excluding lease termination costs 12.00 12.87 12.48 12.96 related to Boeing 717 aircraft purchase Less: aircraft fuel 4.37 4.27 4.30 4.26 CASM - excluding aircraft fuel and 7.63 ¢ 8.60 ¢ 8.18 ¢ 8.70 ¢ adjustments Table 5. Hawaiian Holdings, Inc. Fuel Derivative Contract Summary As of January 18, 2013 Percentage of Weighted Average Projected Fuel Fuel Barrels Contract Price Requirements Hedged Hedged Cap Floor First Quarter 2013 Crude Oil (per barrel) Brent Call Options $115.57 N/A 63% 814,000 Total 63% 814,000 Second Quarter 2013 Crude Oil (per barrel) Brent Call Options $113.84 N/A 56% 752,000 Total 56% 752,000 Third Quarter 2013 Crude Oil (per barrel) Brent Call Options $114.69 N/A 47% 657,000 Total 47% 657,000 Fourth Quarter 2013 Crude Oil (per barrel) Brent Call Options $115.22 N/A 34% 477,000 Total 34% 477,000 First Quarter 2014 Crude Oil (per barrel) Brent Call Options $117.59 N/A 19% 273,000 Brent Collars $116.10 $80.00 3% 45,000 Total 22% 318,000 Second Quarter 2014 Crude Oil (per barrel) Brent Call Options $115.56 N/A 5% 80,000 Brent Collars $116.41 $80.00 5% 70,000 Total 10% 150,000 SOURCE Hawaiian Holdings Website: http://www.hawaiianairlines.com Contact: Company, Scott Topping, CFO, +1-808-835-3700, firstname.lastname@example.org, Investor Relations, Susan Donofrio, Sr. Director, +1-908-719-3206, email@example.com or Media, Keoni Wagner, VP, +1-808-838-6778, firstname.lastname@example.org, all of Hawaiian Airlines
/C O R R E C T I O N -- Hawaiian Holdings/
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