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VX Posts 3rd Quarter Operating Profit Of 15.8M  
User currently offlineflyiguy From United States of America, joined Feb 2004, 1158 posts, RR: 0
Posted (2 years 1 month 4 days 2 hours ago) and read 1185 times:

15.8 million dollar operating profit, but a 12.6 million dollar loss overall Sad


Here's the link

http://www.sacbee.com/2012/11/16/499...america-reports-third-quarter.html

Fly

[Edited 2012-11-16 10:35:17]

[Edited 2012-11-16 10:37:32]

[Edited 2012-11-16 10:45:29]


The opinions I post are of mine and mine alone, not of the airline I work for.
5 replies: All unread, jump to last
 
User currently offlineLAXintl From United States of America, joined May 2000, 26150 posts, RR: 50
Reply 1, posted (2 years 1 month 4 days 2 hours ago) and read 1186 times:

Its an operational profit - the net loss was still $12.6mil, however the operational profit was quite good and in their Q4 guidance they also state they expect to generate an operational profit for Q4.

What dragged down the net number in Q3 was almost $28mil of interest expenses.



From the desert to the sea, to all of Southern California
User currently offlinediverdave From United States of America, joined Mar 2010, 350 posts, RR: 0
Reply 2, posted (2 years 1 month 3 days 23 hours ago) and read 1186 times:

Quoting LAXintl (Reply 1):
Its an operational profit - the net loss was still $12.6mil, however the operational profit was quite good and in their Q4 guidance they also state they expect to generate an operational profit for Q4.

What dragged down the net number in Q3 was almost $28mil of interest expenses.

An "operating profit" is all well and good, but interest expenses have to be paid just like other expenses.

In the real world, "operating profit" is used to provide a more realistic profit/loss statement if there are large depreciation or unusual expenses. VX has neither. Their aircraft are leased which means there is no depreciation expense, and they have loans that require payment of interest. Nor are they amortizing goodwill from any acquisitions.

They ended the 2nd quarter with $82 million in unrestricted cash, and have just ended the 3rd quarter with $75 million in cash. At some point they need to generate some cash, borrow more money, or hit up the investors for more money.

David


User currently offlineJetBlueGuy2006 From United States of America, joined Jan 2006, 1665 posts, RR: 1
Reply 3, posted (2 years 1 month 3 days 22 hours ago) and read 1187 times:

Quoting LAXintl (Reply 1):
What dragged down the net number in Q3 was almost $28mil of interest expenses.

Is this why they are curtailing growth, as mentioned in one of the other threads?



Home Airport: Capital Region International Airport (KLAN)
User currently offlineFI642 From Monaco, joined Mar 2005, 1079 posts, RR: 2
Reply 4, posted (2 years 1 month 3 days 20 hours ago) and read 1187 times:

So, no real profit. Too bad, I hope they can survive.


737MAX, Cool Planes for the Worlds Coolest Airline.
User currently offlineLAXintl From United States of America, joined May 2000, 26150 posts, RR: 50
Reply 5, posted (2 years 1 month 3 days 13 hours ago) and read 1186 times:

Quoting FI642 (Reply 4):
So, no real profit. Too bad, I hope they can survive.

Well its an operating profit - basically the flight revenue exceeds the cost to operate these flights.

When the $28mil of interest financing expenses is added in, it creates a net loss.



From the desert to the sea, to all of Southern California
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