|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.