Exhibit 99.1
| ITEM 6. | SELECTED FINANCIAL DATA. |
Explanatory Note: United Continental Holdings, Inc. (together with its consolidated subsidiaries, “UAL” or the “Company”) is a holding company and its principal, wholly-owned subsidiary is United Airlines, Inc. (together with its consolidated subsidiaries, “United”). We sometimes use the words “we,” “our,” and “us” in this Exhibit 99.1 of this Current Report on Form 8-K for disclosures that relate to all of UAL and United. The following table shows the Company’s selected financial data for the periods and as of the dates indicated, which is derived from the consolidated financial statements. The information contained herein should be read together with, and is qualified in its entirety by reference to the consolidated financial statements and the accompanying notes included as Exhibit 99.3 of this Current Report on Form 8-K.
The Company’s consolidated financial statements and statistical data are provided in the tables below.
UAL Statement of Consolidated Operations Data
(In millions, except per share amounts) | Year Ended December 31, | |||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Income Statement Data: | ||||||||||||||||||||
Operating revenue | $ | 37,152 | $ | 37,110 | $ | 23,325 | $ | 16,335 | $ | 20,194 | ||||||||||
Operating expense | 37,113 | 35,288 | 22,349 | 16,496 | 24,632 | |||||||||||||||
Operating income (loss) | 39 | 1,822 | 976 | (161 | ) | (4,438 | ) | |||||||||||||
Net income (loss) | (723 | ) | 840 | 253 | (651 | ) | (5,396 | ) | ||||||||||||
Net income (loss) excluding special items (a) | 589 | 1,323 | 942 | (1,128 | ) | (1,773 | ) | |||||||||||||
Basic earnings (loss) per share | (2.18 | ) | 2.54 | 1.22 | (4.32 | ) | (42.59 | ) | ||||||||||||
Diluted earnings (loss) per share | (2.18 | ) | 2.26 | 1.08 | (4.32 | ) | (42.59 | ) | ||||||||||||
Balance Sheet Data at December 31: | ||||||||||||||||||||
Unrestricted cash, cash equivalents and short-term investments | $ | 6,543 | $ | 7,762 | $ | 8,680 | $ | 3,042 | $ | 2,039 | ||||||||||
Total assets | 37,628 | 37,988 | 39,598 | 18,684 | 19,465 | |||||||||||||||
Debt and capital lease obligations | 13,166 | 12,735 | 15,133 | 8,543 | 8,004 | |||||||||||||||
| (a) | See “Reconciliation of GAAP to non-GAAP Financial Measures” in this Item 6 for further details related to items that significantly impacted UAL’s results. |
UAL Selected Operating Data
Presented below is the Company’s operating data for the years ended December 31.
| Year Ended December 31, | ||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Mainline | ||||||||||||||||||||
Passengers (thousands) (a) | 93,595 | 96,360 | 65,365 | 56,082 | 63,149 | |||||||||||||||
Revenue passenger miles (“RPMs”) (millions) (b) | 179,416 | 181,763 | 122,182 | 100,475 | 110,061 | |||||||||||||||
Available seat miles (“ASMs”) (millions) (c) | 216,330 | 219,437 | 145,738 | 122,737 | 135,861 | |||||||||||||||
Cargo ton miles (millions) | 2,460 | 2,646 | 2,176 | 1,603 | 1,921 | |||||||||||||||
Passenger load factor (d) | ||||||||||||||||||||
Mainline | 82.9 | % | 82.8 | % | 83.8 | % | 81.9 | % | 81.0 | % | ||||||||||
Domestic | 84.9 | % | 85.1 | % | 84.8 | % | 83.7 | % | 82.6 | % | ||||||||||
International | 80.9 | % | 80.5 | % | 82.7 | % | 79.4 | % | 79.0 | % | ||||||||||
Passenger revenue per available seat mile (“PRASM”) (cents) | 11.93 | 11.84 | 10.99 | 9.22 | 10.91 | |||||||||||||||
Total revenue per available seat mile (cents) | 13.92 | 13.77 | 12.91 | 10.81 | 12.58 | |||||||||||||||
Average yield per revenue passenger mile (“Yield”) (cents) (e) | 14.38 | 14.29 | 13.11 | 11.26 | 13.47 | |||||||||||||||
Average fare per revenue passenger (f) | $ | 275.70 | $ | 269.56 | $ | 245.06 | $ | 201.72 | $ | 234.71 | ||||||||||
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Cost per available seat mile (“CASM”) (cents) | 14.12 | 13.15 | 12.51 | 11.05 | 15.74 | |||||||||||||||
Average price per gallon of fuel, including fuel taxes | $ | 3.27 | $ | 3.01 | $ | 2.27 | $ | 1.75 | $ | 3.54 | ||||||||||
Fuel gallons consumed (millions) | 3,275 | 3,303 | 2,280 | 1,942 | 2,182 | |||||||||||||||
Aircraft in fleet at end of period (g) | 702 | 701 | 710 | 360 | 409 | |||||||||||||||
Average stage length (miles) (h) | 1,895 | 1,844 | 1,789 | 1,701 | 1,677 | |||||||||||||||
Average daily utilization of each aircraft (hours) (i) | 10:38 | 10:42 | 10:47 | 10:47 | 10:42 | |||||||||||||||
Regional | ||||||||||||||||||||
Passengers (thousands) (a) | 46,846 | 45,439 | 32,764 | 25,344 | 23,278 | |||||||||||||||
RPMs (millions) (b) | 26,069 | 25,768 | 18,675 | 13,770 | 12,155 | |||||||||||||||
ASMs (millions) (c) | 32,530 | 33,091 | 23,827 | 17,979 | 16,164 | |||||||||||||||
Passenger load factor (d) | 80.1 | % | 77.9 | % | 78.4 | % | 76.6 | % | 75.2 | % | ||||||||||
PRASM (cents) | 20.84 | 19.75 | 17.70 | 16.04 | 18.44 | |||||||||||||||
Yield (cents) (e) | 26.00 | 25.36 | 22.58 | 20.95 | 24.52 | |||||||||||||||
Aircraft in fleet at end of period (g) | 551 | 555 | 552 | 292 | 280 | |||||||||||||||
Consolidated | ||||||||||||||||||||
Passengers (thousands) (a) | 140,441 | 141,799 | 98,129 | 81,426 | 86,427 | |||||||||||||||
RPMs (millions) (b) | 205,485 | 207,531 | 140,857 | 114,245 | 122,216 | |||||||||||||||
ASMs (millions) (c) | 248,860 | 252,528 | 169,565 | 140,716 | 152,025 | |||||||||||||||
Passenger load factor (d) | 82.6 | % | 82.2 | % | 83.1 | % | 81.2 | % | 80.4 | % | ||||||||||
PRASM (cents) | 13.09 | 12.87 | 11.93 | 10.09 | 11.71 | |||||||||||||||
Yield (cents) (e) | 15.86 | 15.67 | 14.37 | 12.43 | 14.57 | |||||||||||||||
CASM (cents) | 14.91 | 13.97 | 13.18 | 11.72 | 16.20 | |||||||||||||||
Average price per gallon of fuel, including fuel taxes | $ | 3.27 | $ | 3.06 | $ | 2.39 | $ | 1.80 | $ | 3.52 | ||||||||||
Fuel gallons consumed (millions) | 4,016 | 4,038 | 2,798 | 2,338 | 2,553 |
| (a) | The number of revenue passengers measured by each flight segment flown. |
| (b) | The number of scheduled miles flown by revenue passengers. |
| (c) | The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown. |
| (d) | RPM divided by ASM. |
| (e) | The average passenger revenue received for each revenue passenger mile flown. |
| (f) | Passenger revenue divided by number of passengers. |
| (g) | Excludes aircraft that were removed from service. Regional aircraft include aircraft operated by all carriers under capacity purchase agreements, but exclude any aircraft that were subleased to other operators but not operated on our behalf. |
| (h) | Average stage length equals the average distance a flight travels weighted for size of aircraft. |
| (i) | The average number of hours per day that an aircraft flown in revenue service is operated (from gate departure to gate arrival). |
Reconciliation of GAAP to non-GAAP Financial Measures
The Company evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (“GAAP”) and non-GAAP financial measures including net income/loss, net earnings/loss per share and cost per available seat mile (“CASM”), among others. CASM is a common metric used in the airline industry to measure an airline’s cost structure and efficiency. 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. Fuel hedge mark-to-market (“MTM”) gains (losses) are excluded as the Company did not apply cash flow hedge accounting for certain of the periods presented, and these adjustments may provide a better comparison to the Company’s peers, most of which either apply cash flow hedge accounting or exclude cash MTM gains or losses in certain disclosures of fuel expense. The Company believes that adjusting for special items is useful to investors because the special items are non-recurring items not indicative of the Company’s ongoing performance. The Company also believes that excluding third-party business expenses, such as maintenance, ground handling and catering services for third parties, fuel sales and non-air mileage redemptions, provides more meaningful disclosure because these expenses are not directly related to the Company’s core business. Pursuant to SEC Regulation G, the Company has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis (in millions, except CASM amounts). For further information related to special items, see Note 20 to the financial statements included under Exhibit 99.3 of this Current Report on Form 8-K.
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| Year ended December 31, | ||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Net income (loss) excluding special items: | ||||||||||||||||||||
Net income (loss) | $ | (723 | ) | $ | 840 | $ | 253 | $ | (651 | ) | $ | (5,396 | ) | |||||||
Total special items—income (expense) (see detail below) | (1,312 | ) | (483 | ) | (689 | ) | 477 | (3,623 | ) | |||||||||||
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Net income (loss) excluding special items | $ | 589 | $ | 1,323 | $ | 942 | $ | (1,128 | ) | $ | (1,773 | ) | ||||||||
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Special items—income (expense) (millions) | ||||||||||||||||||||
Special revenue item | $ | — | $ | 107 | $ | — | $ | — | $ | — | ||||||||||
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Merger and integration-related costs | (739 | ) | (517 | ) | (564 | ) | — | — | ||||||||||||
Labor agreement costs | (475 | ) | — | — | — | — | ||||||||||||||
Voluntary severance and benefits | (125 | ) | — | — | — | — | ||||||||||||||
Goodwill impairment (charge) credit | — | — | 64 | — | (2,277 | ) | ||||||||||||||
Other intangible impairments | (30 | ) | (4 | ) | (29 | ) | (150 | ) | (64 | ) | ||||||||||
Other asset impairments | — | — | (136 | ) | (93 | ) | (250 | ) | ||||||||||||
Municipal bond litigation | — | — | — | (27 | ) | — | ||||||||||||||
Termination of maintenance service contract | — | (58 | ) | — | — | — | ||||||||||||||
Other | 46 | (13 | ) | (4 | ) | (104 | ) | (25 | ) | |||||||||||
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Special operating expense | (1,323 | ) | (592 | ) | (669 | ) | (374 | ) | (2,616 | ) | ||||||||||
Other operating expense items | — | — | — | (35 | ) | (191 | ) | |||||||||||||
Operating non-cash MTM gain (loss) | — | — | (32 | ) | 586 | (568 | ) | |||||||||||||
Non-operating non-cash MTM gain (loss) (a) | — | — | — | 279 | (279 | ) | ||||||||||||||
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Other expense items | — | — | (32 | ) | 830 | (1,038 | ) | |||||||||||||
Income tax benefit | 11 | 2 | 12 | 21 | 31 | |||||||||||||||
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Total special items (b) | $ | (1,312 | ) | $ | (483 | ) | $ | (689 | ) | $ | 477 | $ | (3,623 | ) | ||||||
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Mainline CASM excluding special charges and aircraft fuel and related taxes: | ||||||||||||||||||||
Operating expense | $ | 30,539 | $ | 28,850 | $ | 18,228 | ||||||||||||||
Special charges | (1,323 | ) | (592 | ) | (669 | ) | ||||||||||||||
Third-party business expenses | (298 | ) | (235 | ) | (218 | ) | ||||||||||||||
Aircraft fuel and related taxes | (10,713 | ) | (9,936 | ) | (5,387 | ) | ||||||||||||||
Profit sharing | (119 | ) | (265 | ) | (166 | ) | ||||||||||||||
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Operating expense excluding above items | $ | 18,086 | $ | 17,822 | $ | 11,788 | ||||||||||||||
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ASMs—mainline | 216,330 | 219,437 | 145,738 | |||||||||||||||||
CASM (cents) | 14.12 | 13.15 | 12.51 | |||||||||||||||||
CASM, excluding special items | 13.51 | 12.88 | 12.03 | |||||||||||||||||
CASM, excluding special items and third-party business expenses | 13.37 | 12.77 | 11.88 | |||||||||||||||||
CASM, excluding special items, third-party business expenses and fuel | 8.42 | 8.24 | 8.20 | |||||||||||||||||
CASM, excluding special items, third-party business expenses, fuel and profit sharing | 8.36 | 8.12 | 8.09 | |||||||||||||||||
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Consolidated CASM excluding special charges and aircraft fuel and related taxes: | ||||||||||||||||
Operating expense | $ | 37,113 | $ | 35,288 | $ | 22,349 | ||||||||||
Special charges | (1,323 | ) | (592 | ) | (669 | ) | ||||||||||
Third-party business expenses | (298 | ) | (235 | ) | (218 | ) | ||||||||||
Aircraft fuel and related taxes | (13,138 | ) | (12,375 | ) | (6,687 | ) | ||||||||||
Profit Sharing | (119 | ) | (265 | ) | (166 | ) | ||||||||||
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Operating expense excluding above items | $ | 22,235 | $ | 21,821 | $ | 14,609 | ||||||||||
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ASMs—consolidated | 248,860 | 252,528 | 169,565 | |||||||||||||
CASM (cents) | 14.91 | 13.97 | 13.18 | |||||||||||||
CASM, excluding special items | 14.38 | 13.74 | 12.77 | |||||||||||||
CASM, excluding special items and third-party business expenses | 14.26 | 13.65 | 12.64 | |||||||||||||
CASM, excluding special items, third-party business expenses and fuel | 8.98 | 8.75 | 8.71 | |||||||||||||
CASM, excluding special items, third-party business expenses, fuel and profit sharing | 8.93 | 8.64 | 8.62 |
| (a) | In 2009 and 2008, the Company included Non-operating non-cash MTM gains (losses) in special items for certain presentations of net income excluding special items. The Company no longer includes Non-operating non-cash MTM gains (losses) in special items. |
| (b) | See Note 20 to the financial statements included under Exhibit 99.3 of this Current Report on Form 8-K. |
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