LAXintl From United States of America, joined exactly 13 years ago today! , 22061 posts, RR: 51 Reply 1, posted (6 months 1 week 2 days 12 hours ago) and read 308 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
diverdave From United States of America, joined Mar 2010, 230 posts, RR: 0 Reply 2, posted (6 months 1 week 2 days 9 hours ago) and read 308 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.
JetBlueGuy2006 From United States of America, joined Jan 2006, 1613 posts, RR: 2 Reply 3, posted (6 months 1 week 2 days 7 hours ago) and read 309 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)
LAXintl From United States of America, joined exactly 13 years ago today! , 22061 posts, RR: 51 Reply 5, posted (6 months 1 week 1 day 23 hours ago) and read 308 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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