1
EXHIBIT 11.1
AMERICA WEST AIRLINES, INC.
COMPUTATION OF NET INCOME (LOSS) PER COMMON SHARE
(IN THOUSANDS EXCEPT PER SHARE AMOUNT)
PREDECESSOR COMPANY
----------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
------------------------------------------------------- NINE MONTHS
1993 ENDED
---------------------- SEPTEMBER 30
PRO -------------
1991 1992 HISTORICAL FORMA 1993
---------- ---------- ---------- ---------- -------------
PRIMARY EARNINGS PER
SHARE
Computation for Statements of
Operation:
Income (loss) before extraordinary
item............................. $ (222,016) $ (131,761) $ 37,165 $ 16,131 $ 26,797
Adjustment for interest on debt
reduction, net of taxes.......... -- -- 4,210 -- 2,859
Preferred stock dividend
requirement...................... (1,673) (1,672) -- -- --
---------- ---------- ---------- ---------- -----------
Income (loss) applicable to common
stock before extraordinary item.. (223,689) (133,433) 41,375 16,131 29,656
Extraordinary item................ -- -- -- -- --
---------- ---------- ---------- ---------- -----------
Net Income (loss) applicable
to common stock.................. $ (223,689) $ (133,433) $ 41,375 $ 16,131 $ 29,656
========== ========== ========== ========== ===========
Weighted average number of common
shares outstanding.............. 21,533,992 23,914,298 24,480,487 45,125,000 24,209,436
Assumed exercise of stock options
and warrants(a)................. -- -- 3,044,504 -- 3,370,694
---------- ---------- ---------- ---------- -----------
Weighted average number of common
shares outstanding as adjusted.. 21,533,992 23,914,298 27,524,991 45,125,000 27,580,130
========== ========== ========== ========== ==========
Primary earnings (loss) per
common share:
Income (loss) before extraordinary
item..... $ (10.39) $ (5.58) $ 1.50 $ 0.36 $ 1.08
Extraordinary item............... -- -- -- -- --
---------- ---------- ---------- ---------- -----------
Net income (loss)................ $ (10.39) $ (5.58) $ 1.50 $ 0.36 $ 1.08
========== ========== ========== ========== ===========
Income (loss) before extraordinary
item............................ $ (222,016) $ (131,761) $ 16,131
Preferred stock dividend
requirement..................... (1,673) (1,672) --
Adjustment for interest on debt
reduction, net of taxes......... 4,408 4,964 546
---------- ---------- ----------
Income (loss) applicable to common
stock before extraordinary item.. (219,281) (128,469) 16,677
Extraordinary item................ 2,448 2,756 --
---------- ---------- ----------
Net Income (loss) applicable to
common stock..................... $ (216,833) $ (125,713) $ 16,677
========== ========== ==========
Weighted average number of common
shares outstanding............... 21,533,992 23,914,298 45,125,000
Assumes exercise of stock options
and warrants(a).................. 6,704,746 7,383,922 1,359,615
---------- ---------- ----------
Weighted average number of common
shares as adjusted............... 28,238,738 31,298,220 46,484,615
========== ========== ==========
Primary earnings (loss) per common
share:
Income (loss) before extraordinary
item.............................. $ (7.77) $ (4.10) $ 0.36
Extraordinary item................ 0.09 0.09 --
---------- ---------- ----------
Net income (loss)................. $ (7.68)(c) $ (4.01)(c) $ 0.36(b)
========== ========== ==========
PREDECESSOR REORGANIZED
COMPANY COMPANY PRO FORMA
------------- ------------- -----------
PERIOD FROM PERIOD FROM NINE MONTHS
JANUARY 1 TO AUGUST 26 TO ENDED
AUGUST 25 SEPTEMBER 30 SEPTEMBER 30
------------ ------------- -------------
1994 1994 1994
------------ ------------- -------------
PRIMARY EARNINGS PER
SHARE
Computation for Statements
of Operation:
Income (loss) before
extraordinary item....... $ (203,268) $ 1,218 $ 28,453
Adjustment for interest
on debt reduction,
net of taxes...... 2,584 -- --
Preferred
stock dividend
requirement.. -- -- --
------------ ------------- -------------
Income (loss) applicable
to common stock before
extraordinary item....... (200,684) 1,218 28,453
Extraordinary item....... 257,660 -- --
------------ ------------- -------------
Net Income
(loss) applicable
to common stock...... $ 56,976 $ 1,218 $ 28,453
=========== ============ ============
Weighted average number
of common shares
outstanding... 25,470,671 45,125,000 45,125,000
Assumed exercise of
stock options and
warrants(a)... 3,079,258 -- --
------------ ------------- -------------
Weighted average number
of common shares
outstanding as adjusted 28,549,929 45,125,000 45,125,000
=========== ============ ============
Primary earnings (loss)
per common share:
Income (loss) before
extraordinary item..... $ (7.03 ) $ 0.03 $ 0.63
Extraordinary item...... 9.02 -- --
------------ ------------- -------------
Net income (loss)..... $ 1.99 $ 0.03 $ 0.63
=========== ============ ============
Income (loss) before
extraordinary item....... $ 1,218 $ 28,453
Preferred stock
dividend requirement.. -- --
Adjustment
for interest on
debt reduction,
net of taxes...... 21 410
------------- -------------
Income (loss) applicable
to common stock before
extraordinary item..... 1,239 28,863
Extraordinary item...... -- --
------------- -------------
Net Income (loss)
applicable to common
stock...... $ 1,239 $ 28,863
============ ============
Weighted average number
of common shares
outstanding... 45,125,000 45,125,000
Assumes exercise of
stock options and
warrants(a)... 1,359,615 1,359,615
------------- -------------
Weighted average number
of common shares as
adjusted... 46,484,615 46,484,615
============ ============
Primary earnings (loss) per
common share:
Income (loss) before
extraordinary item..... $ 0.03 $ 0.62
Extraordinary item.... -- --
------------- -------------
Net income (loss)..... $ 0.03(b) $ 0.62(b)
============ ============
2
AMERICA WEST AIRLINES, INC.
COMPUTATION OF NET INCOME (LOSS) PER COMMON SHARE -- (CONTINUED)
(IN THOUSANDS EXCEPT PER SHARE AMOUNT)
PREDECESSOR COMPANY
-----------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
------------------------------------------------------- NINE MONTHS PERIOD FROM
1993 ENDED JANUARY 1 TO
------------------------- SEPTEMBER 30 AUGUST 25
PRO ------------- ------------
1991 1992 HISTORICAL FORMA 1993 1994
----------- ----------- ----------- ----------- ------------- ------------
FULLY DILUTED EARNINGS PER
SHARE
Computation for Statements of
Operations:
Income (loss) before
extraordinary item......... $ (222,016) $ (131,761) $ 37,165 $ 16,131 $ 26,797 $ (203,268)
Adjustment for interest on
debt reduction, net of
taxes.................... -- -- 5,812 546 4,338 2,520
Preferred stock dividend
requirement.............. (1,673) (1,672) -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) applicable
to common stock before
extraordinary item....... $ (223,689) $ (133,433) $ 42,977 $ 16,677 $ 31,135 (200,748)
Extraordinary
item..................... -- -- -- -- -- 257,660
----------- ----------- ----------- ----------- ----------- -----------
Net income (loss)
applicable to common
stock.................... $ (223,689) $ (133,433) $ 42,977 $ 16,677 $ 31,135 $ 56,912
=========== =========== =========== =========== =========== ===========
Weighted average number of
common shares outstanding 21,533,992 23,914,298 24,480,487 45,125,000 24,209,436 25,470,671
Assumed exercise of stock
options and warrants(a).. -- -- 4,240,761 1,359,615 5,256,969 3,079,258
----------- ----------- ----------- ----------- ----------- -----------
Weighted average number of
common shares outstanding
as adjusted.............. 21,533,992 23,914,298 28,721,248 46,484,615 29,466,405 28,549,929
=========== =========== =========== =========== =========== ===========
Fully diluted earnings (loss)
per common share:
Income (loss) before
extraordinary item......... $ (10.39) $ (5.58) $ 1.50 $ 0.36 $ 1.06 $ (7.03)
Extraordinary item......... -- -- -- -- -- 9.02
----------- ----------- ----------- ----------- ----------- -----------
Net income (loss).......... $ (10.39) $ (5.58) $ 1.50 $ 0.36(b) $ 1.06 $ (1.99)
=========== =========== =========== =========== =========== ===========
Additional Fully Diluted
Computation:
Additional adjustment to
net income (loss) as
adjusted per fully
diluted computation
above....................
Income (loss) before
extraordinary item as
adjusted per fully
diluted computation
above.................... $ (222,016) $ (131,761) $ 37,165 $ 16,131 $ 26,797 $ (203,268)
Add -- Interest on 7.75%
subordinated debentures,
net of taxes............. 869 -- -- -- -- --
Add -- Interest on 7.5%
subordinated debentures,
net of taxes............. 806 -- -- -- -- --
Add -- Interest on 11.5%
subordinated debentures,
net of taxes............. 3,506 -- -- -- -- --
Add interest on debt
reduction, net of taxes.. 4,352 4,964 5,812 546 4,338 2,520
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) before
extraordinary item as
adjusted................. (212,483) (126,797) 42,977 16,677 31,135 (200,748)
Extraordinarary item....... 5,293 2,756 -- -- -- 257,660
----------- ----------- ----------- ----------- ----------- -----------
Net income (loss)
applicable to common
stock.................... $ (207,190) $ (124,041) $ 42,977 $ 16,677 $ 31,135 $ 56,912
=========== =========== =========== =========== =========== ===========
REORGANIZED
COMPANY PRO FORMA
------------- -------------
PERIOD FROM NINE MONTHS
AUGUST 26 TO ENDED
SEPTEMBER 30 SEPTEMBER 30
------------- -------------
1994 1994
------------- -------------
FULLY DILUTED EARNINGS PER
SHARE
Computation for Statements of
Operations:
Income (loss) before
extraordinary item.......... $ 1,218 $ 28,453
Adjusted for interest on
debt reduction, net of
taxes..................... 21 410
Preferred stock dividend
requirement............... -- --
----------- -----------
Income (loss) applicable
to common stock before
extraordinary item........ $ 1,239 28,863
Extraordinary item.......... -- --
----------- -----------
Net income (loss)
applicable to common
stock..................... $ 1,239 $ 28,863
=========== ===========
Weighted average number of
common shares outstanding. 45,125,000 45,125,000
Assumed exercise of stock
options and warrants(a)... 1,359,615 1,359,615
----------- -----------
Weighted average number of
common shares outstanding
as adjusted............... 46,484,615 46,484,615
=========== ===========
Fully diluted earnings (loss)
per common share:
Income (loss) before
extraordinary item.......... $ 0.03 $ 0.62
Extraordinary item.......... -- --
----------- -----------
Net income (loss)........... $ 0.03(b) $ 0.62(b)
=========== ===========
Additional Fully Diluted
Computation:
Additional adjustment to net
income (loss) as adjusted
per fully diluted
computation above.........
Income (loss) before
extraordinary item as
adjusted per fully diluted
computation above......... $ 1,218 $ 28,453
Add -- Interest on 7.75%
subordinated debentures,
net of taxes.............. -- --
Add -- Interest on 7.5%
subordinated debentures,
net of taxes.............. -- --
Add -- Interest on 11.5%
subordinated debentures,
net of taxes.............. -- --
Add interest on debt
reduction, net of taxes... 21 410
----------- -----------
Income (loss) before
extraordinary item as
adjusted.................. 1,239 28,863
Extraordinary item.......... -- --
----------- -----------
Net income (loss)
applicable to common
stock..................... $ 1,239 $ 28,863
=========== ===========
3
AMERICA WEST AIRLINES, INC.
COMPUTATION OF NET INCOME (LOSS) PER COMMON SHARE -- (CONTINUED)
(IN THOUSANDS EXCEPT PER SHARE AMOUNT)
PREDECESSOR COMPANY
-----------------------------------------------------------------------------------------
YEARS ENDED DECEMBER 31,
-------------------------------------------------------- NINE MONTHS PERIOD FROM
1993 ENDED JANUARY 1 TO
----------------------- SEPTEMBER 30 AUGUST 25
PRO ------------ ------------
1991 1992 HISTORICAL FORMA 1993 1994
---------- ---------- ---------- --------- ------------ ------------
FULLY DILUTED EARNINGS
PER SHARE
Additional adjustment to weighted
average number of shares
outstanding.......................
Weighted average number of shares
outstanding as adjusted per fully
diluted computation above......... 21,533,992 23,914,298 28,721,248 46,484,615 29,466,405 28,549,929
Additional dilutive effect of
outstanding options and warrants.. 6,704,746 7,383,922 -- -- -- --
Additional dilutive effect of
assumed conversion of preferred
stock:
Series A 9.75%.................... -- -- -- -- -- --
Series B 10.5%.................... 1,164,596 1,164,596 851,294 -- 1,135,059 --
Series C 9.75%.................... 73,099 73,099 73,099 -- 73,099 73,099
Additional dilutive effect of
assumed conversion of 7.75%
subordinated debentures........... 2,483,528 2,278,151 2,263,007 -- 2,264,823 2,257,558
Additional dilutive effect of
assumed conversion of 7.5%
subordinated debentures........... 2,347,604 2,291,607 2,272,548 -- 2,275,086 2,264,932
Additional dilutive effect of
assumed conversion of 11.5%
subordinated debentures........... 9,081,162 7,486,391 7,328,201 -- 7,335,314 7,306,865
----------- ----------- ----------- ----------- ----------- -----------
Weighted average number of
common shares outstanding as
adjusted.......................... 43,388,727 44,592,064 41,509,397 46,484,615 42,549,786 40,452,383
=========== =========== =========== =========== =========== ===========
Fully diluted earnings (loss) per
common share:
Income (loss) before extraordinary
item.............................. $ (4.90) $ (2.84) $ 1.04 $ 0.36 $ 0.73 $ (4.96)
Extraordinary item.................. 0.12 0.06 -- -- -- 6.37
----------- ----------- ----------- ----------- ----------- -----------
Net income (loss) $ (4.78)(c) $ (2.78)(c) $ 1.04 $ 0.36(b) $ 0.73 $ 1.41
=========== =========== =========== =========== =========== ===========
REORGANIZED
COMPANY PRO FORMA
------------ ------------
PERIOD FROM NINE MONTHS
AUGUST 26 TO ENDED
SEPTEMBER 30 SEPTEMBER 30
------------ ------------
1994 1994
------------ ------------
FULLY DILUTED EARNINGS
PER SHARE
Additional adjustment to weighted
average number of shares
outstanding.........................
Weighted average number of shares
outstanding as adjusted per fully
diluted computation above........... 46,484,615 46,484,615
Additional dilutive effect of
outstanding options and warrants.... -- --
Additional dilutive effect of
assumed conversion of preferred
stock:
Series A 9.75%...................... -- --
Series B 10.5%...................... -- --
Series C 9.75%...................... -- --
Additional dilutive effect of
assumed conversion of 7.75%
subordinated debentures............. -- --
Additional dilutive effect of
assumed conversion of 7.5%
subordinated debentures............. -- --
Additional dilutive effect of
assumed conversion of 11.5%
subordinated debentures............. -- --
----------- -----------
Weighted average number of
common shares outstanding as
adjusted............................ 46,484,615 46,484,615
=========== ===========
Fully diluted earnings (loss) per
common share:
Income (loss) before extraordinary
item................................ $ 0.03 $ 0.62
Extraordinary item.................... -- --
----------- -----------
Net income (loss).................... $ 0.03(b) $ 0.62(b)
=========== ===========
- ------------------------
(a) The stock options and warrants are included only in the periods in which
they are dilutive.
(b) The calculation is submitted in accordance with Regulation S-K Item
601(b)(11) although not required by footnote 2 to paragraph 14 of APB
Opinion No. 15 because it results in dilution of less than 3%.
(c) The calculation is submitted in accordance with Regulation S-K Item
601(b)(11) although it is contrary to paragraph 40 of APB Opinion No. 15
because it produces an antidilutive result.