flyiguy
Topic Author
Posts: 886
Joined: Mon Feb 23, 2004 2:21 pm

VX Posts 3rd Quarter Operating Profit Of 15.8M

Fri Nov 16, 2012 6:34 pm

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.
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: VX Posts 3rd Quarter Profit Of 15.8M

Fri Nov 16, 2012 6:42 pm

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
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RE: VX Posts 3rd Quarter Operating Profit Of 15.8M

Fri Nov 16, 2012 9:22 pm

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
 
JetBlueGuy2006
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RE: VX Posts 3rd Quarter Operating Profit Of 15.8M

Fri Nov 16, 2012 10:52 pm

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)
 
FI642
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Joined: Sat Mar 12, 2005 9:48 am

RE: VX Posts 3rd Quarter Operating Profit Of 15.8M

Sat Nov 17, 2012 12:11 am

So, no real profit. Too bad, I hope they can survive.
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LAXintl
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Joined: Wed May 24, 2000 12:12 pm

RE: VX Posts 3rd Quarter Operating Profit Of 15.8M

Sat Nov 17, 2012 7:12 am

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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