3rd Quarter Results & Placing
Ryanair Holdings PLC
5 February 2002
RYANAIR DELIVERS RECORD Q.3 PROFITS DESPITE EFFECTS OF 11TH SEPTEMBER
TRAFFIC GROWS BY 30%, PROFITS RISE BY 35%
(PROPOSES TO RAISE UP TO €170M BY PLACING ORDINARY SHARES)
Ryanair, Europe's largest low fares airlines today (5 Feb'02) announced record
traffic and profit figures for Q.3 (end 31 Dec'01). This quarter covers trading
in the immediate aftermath of Sept 11 and the weaker winter months. Despite
these adverse conditions passenger traffic (incl. no shows) grew by 30% to 2.7
million and load factors rose to 79%. Average yields declined by 10% due in
large measure to the low fare promotions which Ryanair launched immediately
following Sept 11. As a result total revenue grew by 18%. Thanks to continued
tight control, operating costs rose by 15%, a slower rate than revenue growth.
Unlike many other airlines in the world following Sept 11, Ryanair's margins
rose from 19% to 21% for the quarter and net profit increased by 35% to €28.8m.
Summary Table of Results (Irish GAAP) - in Euro
Quarter Ended Dec 31, 2000 Dec 31, 2001 % Increase
Passengers (incl. no shows) 2.1m 2.7m + 30%
Load Factor (incl. no shows) 77% 79% + 3%
Revenue €114.9m €135.5m + 18%
Profit after tax €21.3m €28.8m + 35%
Basic EPS (Euro Cent) 3.04 3.98 + 31%
Ryanair's Chief Executive, Michael O'Leary said:
'These are a very strong set of results which underline the
resilience of Ryanair's unique low fares model. Ryanair led the fight
back following Sept 11 by slashing fares and offering one million seats
for sale at just £9.99. It was important to respond to terrorism by
stimulating air travel and promoting consumer confidence. The travelling
public responded to the lower fares in huge numbers with the result that
we carried more than 10 million passengers in a calendar year for the
first time in our history.
'As a result of Ryanair's vigorous response, passenger volumes in
Q.3 grew by 30% when many of our high fare competitors were grounding
planes and making staff redundant. Although average fares fell by 10%
our continuing focus on costs meant that they rose at a slower rate than
sales, with the result that - during one of the worst quarters in
commercial airline history - both Ryanair's margins and net profits
increased to record levels. No other airline has been able to match
Ryanair's 30% growth in traffic and 35% increase in profits in the last
three months of 2001.
'There can be little doubt that now is a time of immense
opportunity in Europe. Much of our cost base was declining (relative to
revenue growth) prior to Sept 11 last. Our internet penetration is over
90% which has reduced Marketing and Distribution costs by 55%.
'Depreciation in the quarter fell by 6% as almost all of our 21 x Boeing
737-200's went ex depreciation. Our fuel hedging policy again delivered
during a very volatile quarter and we have eliminated almost any
exposure to further increases in fuel over the next 15 months.
'As high fare European airlines cut routes and trim services, more
and more growth opportunities are open to us. The list of new airports
who want to share in the high growth 'Ryanair effect' becomes ever
longer. We start flying 7 new routes from our second Continental base in
Frankfurt Hahn in 9 days time. Already we have strong advance bookings
and expect to run ahead of our traffic projections from day one.
Lufthansa are unable to match Ryanair's low fares, as German consumers
flock to the first really low fares airline in Germany.
'Our traffic growth will not be confined to the German market. Last
week we announced a further 11 new routes for Summer 2002, with low fare
links from London Stansted to Milan and Rome in Italy, Eindhoven in
Holland, Friedrichshafen in Germany, Graz and Klagenfurt in Austria,
Montpellier in the South of France and Newquay in Cornwall. Our
successful Brussels Charleroi base will benefit from a capacity increase
to three new Boeing 737-800 aircraft with new routes to Rome and
Liverpool as well as frequency increases. What this disciplined
expansion underlines is the almost insatiable demand that exists across
Europe for Ryanair's low fares.
'These new routes highlight the long-term strength of Ryanair's
growth prospects. Growth will continue to come from new routes,
additional frequencies on existing routes and by entering existing
markets ceded by high fare incumbents. Our new aircraft order guarantees
eight years of phased deliveries of exceptionally priced aircraft with
even lower seat operating costs. This means that Ryanair can continue to
drive down air fares and still deliver industry leading margins, not
just in the busy Summer months, but in all four quarters.
'Our recent order of up to 150 new Boeing 737-800 aircraft (100
firm and 50 options) will enable Ryanair to grow to 40 million
passengers p.a. over the next 8 years and will increase the fleet to at
least 128 aircraft, whilst retiring the 21 x 737-200's thereby making
Ryanair's the youngest fleet in Europe. We selected the 737-800 after an
intense bidding competition between Boeing and Airbus which resulted in
an outstanding long-term partnership agreement with Boeing, the
objective of which is to see Ryanair grow to become Europe's largest
airline.
'The 737-800 aircraft has more seats (189) than the A320 (180) or
the 737-700 (149). It gives us more revenue opportunities and lower per
seat operating costs. Its fuel consumption and maintenance cost
performance is outstanding, and since we already operate 20 of them,
this growth in fleet will not disrupt our 25 minute turnarounds, but
will continue to yield economies of scale in operations, maintenance and
training.
'Ryanair's conservative balance sheet and strong cash flow meant
that we were well placed to take advantage of the downturn in the market
and we moved quickly to secure long-term lower aircraft costs. We have
promised shareholders for some time that we would use resources when the
right time and the right opportunities came along and we believe that we
have now delivered on that promise.
'These strong results from Ryanair during a disastrous quarter for
the airline industry testify to the outstanding job that our 1,500
people do every day, on every flight, on behalf of our customers and
shareholders. With our new routes and new aircraft we intend to continue
to compete aggressively with Europe's major flag carriers in their home
markets.
'We will continue to offer Europe's consumers choice, lower fares and
better punctuality. Over the past twelve months our 10 million
passengers saved an estimated £1.5 billion compared to the average fares
charged by British Airways.
We are determined to quadruple this traffic to 40 million
passengers over the next 8 years, and if we do, we estimate that
Europe's consumers will be saving over £6 billion pounds a year by
flying on Ryanair's fleet of brand new Boeing 737-800 aircraft.
'We at Ryanair believe this is a cause that's really worth fighting
for.'
Ryanair is actively seeking to increase the percentage of its share
capital held by EU nationals. Accordingly, on 26 June 2001, the company
suspended all deposits of ordinary shares in exchange for American
Depositary Shares ('ADSs'). As part of its continuing efforts in this
regard, Ryanair has now determined that all Ryanair Ordinary Shares
acquired by parties who do not certify that they are EU nationals will
be designated as 'Restricted Shares' in accordance with Ryanair's
Articles of Association. The procedures will not apply to transactions
in Ryanair's existing ADSs, although the suspension of the issuance of
new ADSs in exchange for Ordinary Shares remains in effect.
Accordingly, all Ryanair Ordinary Shares which are acquired, in trades
occurring after midnight on 7 February 2002, by parties who do not
certify that they are EU nationals at the time of settlement will be
designated as Restricted Shares, and the relevant holder will be
required to dispose of such shares to an acquirer who is an EU national
within 21 days. Consequently, any party acquiring the Ryanair Ordinary
Shares which are issued as part of the share placing referred to in this
announcement who does not certify that they are an EU national will be
required to dispose of such shares to an acquirer who is an EU national
within 21 days. Should any holder of Restricted Shares not comply with
the requirement to dispose of such shares within 21 days, the company is
entitled to use the powers given to it under its Articles of Association
and at law to dispose of such shares itself on behalf of such holder.
These procedures will remain in effect until the Directors of Ryanair
shall determine that they will no longer apply.
ENDS.
Ryanair is Europe's largest low fares airline with 75 low fare routes across
13 countries. Ryanair will operate with a fleet of 44 Boeing 737's this
Summer, and has placed firm orders for up to a further 100 new 737-800's and
50 option aircraft which will be delivered over the next 8 years. Ryanair
currently employs a team of 1,500 people and will carry over 12 million
scheduled passengers in the current calendar year. www.RYANAIR.COM was
launched in January 2000 and is already Europe's largest travel website.
Certain of the information included in this release is forward looking and is
subject to important risks and uncertainties that could cause actual results to
differ materially. It is not reasonably possible to itemise all of the many
factors and specific events that could affect the outlook and results of an
airline operating in the European economy. Among the factors that are subject to
change and could significantly impact Ryanair's expected results are the airline
pricing environment, fuel costs, competition from new and existing carriers,
market prices for replacement aircraft, costs associated with environmental,
safety and security measures, actions of the Irish, U.K., European Union ('EU')
and other governments and their respective regulatory agencies, fluctuations in
currency exchange rates and interest rates, airport access and charges, labour
relations, the economic environment of the airline industry, the general
economic environment in Ireland, the UK and Continental Europe, the general
willingness of passengers to travel and other economics, social and political
factors.
For Results and further information
please contact: Howard Millar, Ryanair, Tel. 353-1-8121212
www.Ryanair.com Pauline McAlester, Murray Consultants, Tel. 353-1-6633332
Proposed Share Placement
Ryanair announces today that it intends to place up to 26 million new ordinary
shares in the company ('the new ordinary shares'), representing approximately
3.6% of the existing share capital of the company. Ryanair also expect to offer
the underwriters an option to purchase up to an additional 4 million ordinary
shares each to cover over allotments.
The net proceeds from the placing will be used to finance the acquisition of up
to 100 new Boeing 737-800 series aircraft, which will be delivered between
December 2002 and December 2008. The funds may also be used under the terms of
the Boeing agreement to exercise options to acquire up to 50 further Boeing
737-800 aircraft.
The offering will be directed at both existing and new institutional investors
in Ireland, the UK and Continental Europe, with the intention of continuing to
broaden the company's European shareholder base. The shares to be sold in the
placing, have not been, and will not be registered under the U.S. Securities Act
of 1933, and no offers or sales of such shares may be made in the U.S. or to
U.S. persons. The placing shares are being offered and sold outside the United
States in reliance under Regulation S under the Securities Act.
Morgan Stanley Securities Ltd, and Davy Stockbrokers, will act as joint lead
managers of the proposed placing and Goldman Sachs will act as a co-lead
manager. Details of the number of new ordinary shares to be issued and the price
at which the placing shares will be sold are expected to be determined and
announced on Friday 8th February, following a series of roadshow presentations
of the company in Ireland, the UK and Continental Europe.
Application will be made to the Irish Stock Exchange and to the UK Listing
Authority for up to 30 million ordinary shares in the capital of Ryanair to be
admitted to the Official List of the UK Listing Authority and to the Official
List of the Irish Stock Exchange and application will be made to the London
Stock Exchange for such shares to be admitted to trading.
This announcement has been issued by and is the sole responsibility of Ryanair
Holdings plc (the 'Company ') and has been approved solely for the purposes of
section 57 of the Financial Services Act 1986 by Morgan Stanley and Co.
International Limited ( ' Morgan Stanley'), which is regulated in the United
Kingdom by The Securities and Futures Authority Limited. Morgan Stanley is
advising the Company in relation to the proposed offering and no one else and
will not be responsible to anyone other than the Company for providing the
protection afforded to customers of Morgan Stanley nor for providing advice in
relation to the proposed offering. Stabilisation/FSA.
This announcement has been prepared by and is the sole responsibility of Ryanair
Holdings plc (the 'Company ') and has been approved by Morgan Stanley and Co.
International Limited ( ' Morgan Stanley') solely for the purposes of section 21
of the Financial Services and Markets Act 2000 of the United Kingdom. Morgan
Stanley is acting for the Company and no-one else and will not be responsible to
for providing to any other person the protections afforded to clients of Morgan
Stanley or for providing advice in relation to the proposed offering. Morgan
Stanley can be contacted at 25 Cabot Square, Canary Wharf, London E14 4QA,
United Kingdom. Stabilisation/FSA.
This announcement is not for publication or distribution or release in the
United States of America (including its territories and possessions, any State
of the United States and the District of Columbia). This announcement does not
constitute or form part of an offer or solicitation of an offer to purchase or
subscribe for securities in the United States or any other jurisdiction. The
securities referred to herein have not been and will not be registered under the
United States Securities Act of 1933, as amended, and may not be offered or sold
in the United States or to or for the benefit of U.S. persons, except pursuant
to an available exemption from registration. No public offering of securities is
being made in the United States.
Ryanair Holdings plc and Subsidiaries
Consolidated Profit and Loss Accounts in accordance
with UK and Irish GAAP(unaudited)
Nine Nine months
Quarter Quarter
months
ended ended ended ended
Dec 31, Dec 31, Dec 31, Dec 31,
2001 2000 2001 2000
€'000 €'000 €'000 €'000
Operating Revenues
Scheduled revenues 117,142 100,256 423,634 338,130
Ancillary revenues 18,407 14,648 56,142 42,693
Total operating revenues
-continuing operations 135,549 114,904 479,776 380,823
Operating expenses
Staff 18,974 15,147 57,347 45,689
costs
Depreciation and amortisation 14,541 15,505 44,691 42,299
Other operating expenses
Fuel & 25,222 16,524 79,466 46,792
Oil
Maintenance, materials and repairs 5,439 4,588 19,548 15,346
Marketing and distribution costs 1,115 2,472 10,525 18,153
Aircraft rentals 101 2,192 3,980 7,270
Route charges 11,092 8,770 35,548 27,252
Airport and Handling charges 20,343 16,829 65,190 50,491
Other 10,581 11,218 34,322 30,664
Total operating expenses 107,408 93,245 350,617 283,956
Operating profit - continuing operations 28,141 21,659 129,159 96,867
Other income/(expenses)
Interest receivable and similar income 8,205 5,255 20,828 13,647
Interest payable and similar (4,625) (3,154) (13,776) (7,535)
charges
Foreign exchange (losses)/gains 1,228 677 (1,353) 323
Gains on disposal of fixed assets 1 53 527 53
Total other income/(expenses) 4,809 2,831 6,226 6,488
Profit on ordinary
activities
before taxation 32,950 24,490 135,385 103,355
Tax on profit on ordinary (4,114) (3,145) (18,511) (18,651)
activities
Profit for the 28,836 21,345 116,874 84,704
period
Earnings per ordinary share
-Basic(Euro 3.98 3.04 16.13 12.08
cent)
-Diluted(Euro cent) 3.92 3.00 15.91 11.94
Number of ordinary shares(in 000's)*
-Basic 724,613 701,570 724,356 701,072
-Diluted 734,989 710,557 734,510 709,539
*The Company implemented a 2:1 share split on December 7th, 2001. Share capital and earnings per share figures
have been restated to give effect to the share
split.
Page 1
Ryanair Holdings plc and Subsidiaries
Consolidated Balance Sheets in accordance with
UK and Irish GAAP
December 31, March 31,
2001 2001
€'000 €'000
(unaudited)
Fixed assets
Tangible assets 735,442 613,591
Financial assets - 36
Total fixed assets 735,442 613,627
Current Assets
Cash and liquid resources 725,883 626,720
Accounts receivable 13,740 8,695
Other assets 9,172 12,235
Inventories 16,340 15,975
Total current assets 765,135 663,625
Total assets 1,500,577 1,277,252
Current liabilities
Accounts payable 41,996 29,998
Accrued expenses and other liabilities 147,778 139,406
Current maturities of long term debt 35,068 27,994
Short term borrowings 253 5,078
Total current liabilities 225,095 202,476
Other liabilities
Provisions for liabilities and charges 44,332 30,122
Long term debt 444,019 374,756
488,351 404,878
Shareholders' funds - equity
Called - up share capital 9,202 9,194
Share premium account 372,200 371,849
Profit and loss account 405,729 288,855
Shareholders' funds - equity 787,131 669,898
Total liabilities and shareholders' funds 1,500,577 1,277,252
Page 2
Ryanair Holdings plc and Subsidiaries
Consolidated Cashflow Statements in accordance
with UK and Irish GAAP (unaudited)
Period Period
ended ended
December 31, December 31,
2001 2000
€'000 €'000
Net cash inflow from operating activities 191,782 151,374
Returns on investments and servicing of finance 6,022 759
Taxation (4,533) (12,451)
Capital expenditure(including aircraft deposits) (165,978) (250,805)
Net cash inflow/(outflow) before financing
and use of liquid resources 27,293 (111,123)
Financing 76,695 191,624
(Increase) in liquid resources (117,574) (63,930)
(Decrease)/increase in cash (13,586) 16,571
Analysis of movement in liquid resources
Liquid resources at beginning of year 564,782 334,149
Increase in period 117,574 63,930
Liquid resources at end of period 682,356 398,079
Analysis of movement in cash
At beginning of year 56,860 17,319
Net cash (outflow)/inflow (13,586) 16,571
Net cash at end of period 43,274 33,890
Page 3
Ryanair Holdings plc and Subsidiaries
Consolidated Statement of Changes in Shareholders' Funds - Equity in accordance with
UK and Irish GAAP(unaudited)
Share Profit
Ordinary premium and loss
shares account account Total
€'000 €'000 €'000 €'000
Balance at April 1, 2001 9,194 371,849 288,855 669,898
Issue of ordinary equity shares 8 351 - 359
Profit for the period - - 116,874 116,874
Balance at December 31, 2001 9,202 372,200 405,729 787,131
Page 4
Ryanair Holdings plc and Subsidiaries
Consolidated Profit and Loss Accounts in accordance with
US GAAP (unaudited)
Nine Nine months
Quarter Quarter
months
ended ended ended ended
Dec 31, Dec 31, Dec 31, Dec 31,
2001 2000 2001 2000
€'000 €'000 €'000 €'000
Scheduled revenues 117,142 100,256 423,634 338,130
Ancillary revenues 18,407 14,648 56,142 42,693
Total operating revenues
-continuing operations 135,549 114,904 479,776 380,823
Operating expenses
Staff 18,773 14,997 56,744 45,190
costs
Depreciation and amortisation 14,541 15,378 44,691 41,686
Other operating expenses
Fuel & Oil 25,222 16,524 79,466 46,792
Maintenance, materials and repairs 5,439 4,588 19,548 15,346
Marketing and distribution costs 1,115 2,472 10,525 18,153
Aircraft rentals 101 2,192 3,980 7,270
Route charges 11,092 8,770 35,548 27,252
Airport and Handling charges 20,343 16,829 65,190 50,491
Other 10,559 11,196 34,256 30,598
Total operating expenses 107,185 92,946 349,948 282,778
Operating profit - continuing operations 28,364 21,958 129,828 98,045
Other income/(expenses)
Interest receivable and similar income 8,205 5,255 20,828 13,647
Interest payable and similar charges (4,625) (3,154) (13,776) (7,535)
Foreign exchange (losses)/gains 1,228 2,803 (1,353) 3,988
Gains on disposal of fixed assets 1 53 527 53
Total other income/(expenses) 4,809 4,957 6,226 10,153
Profit on ordinary activities
before taxation 33,173 26,915 136,054 108,198
Tax on profit on ordinary activities (4,131) (3,650) (18,562) (19,641)
Net Income 29,042 23,265 117,492 88,557
Net Income per ADS *
-Basic(Euro cent) 20.04 16.58 81.10 63.16
-Diluted(Euro cent) 19.76 16.37 79.98 62.40
Weighted Average number of shares*
-Basic 724,613 701,570 724,356 701,072
-Diluted 734,989 710,557 734,510 709,539
*The Company implemented a 2:1 share split on December 7th, 2001. Share capital and earnings per share figures
have been restated to give effect to the share split.( Each ADS represents five ordinary shares) Page 5
Ryanair Holdings plc and Subsidiaries
Summary of significant differences between UK, Irish and US
generally accepted accounting principles (unaudited)
(A) Net income under US GAAP
<---Quarter ended----> <-----Period ended------->
Dec 31, Dec 31, Dec 31, Dec 31,
2001 2000 2001 2000
€000 €000 €'000 €'000
Profit as reported in the consolidated
profit and loss accounts in accordance
with
UK and Irish GAAP 28,836 21,345 116,874 84,704
Adjustments
Pension 85 70 255 198
Unrealised gains on forward exchange - 2,126 - 3,665
contracts
Employment grants 116 80 348 301
Basis of accounting for August 1996 - 127 - 434
transaction
Basis of accounting for aircraft acquired from - - - 179
Northill Limited
Darley Investments Limited 22 22 66 66
Tax effect of adjustments (17) (505) (51) (990)
Net income under US GAAP 29,042 23,265 117,492 88,557
(B) Consolidated Cashflow Statements in accordance
with US GAAP
<-----Period ended------->
Dec 31, Dec 31,
2001 2000
€'000 €'000
Cash inflow from operating activities 193,271 139,681
Cash (outflow) from investing activities (112,455) (233,964)
Cash inflow from financial activities 71,870 188,065
Increase in cash and cash equivalents 152,686 93,782
Cash and cash equivalents at beginning of 389,059 121,430
year
Cash and cash equivalents at end of period 541,745 215,212
Cash and cash equivalents under US GAAP 541,745 215,212
Deposits with a maturity of between three and 184,138 216,978
six months
Cash and liquid resources under UK and Irish 725,883 432,190
GAAP
Page 6
Ryanair Holdings plc and
Subsidiaries
Summary of significant differences between UK, Irish and US
generally accepted accounting principles (unaudited)
(C) Shareholders' funds - equity
Dec 31, Dec 31,
2001 2000
€'000 €'000
Shareholders' equity as reported in the
consolidated balance
sheets (UK and Irish GAAP) 787,131 526,904
Adjustments:
Pension 1,918 1,121
Unrealised gains on forward 4,189 1,051
exchange contracts
Employment (585) (1,033)
grants
Basis of accounting for August 1996 - (1,097)
transactions
Darley Investments (349) (437)
Limited
Investments - 593
Unrealised gains on derivative financial 1,832 -
instruments
Tax effect of (655) 243
adjustments
Shareholders' equity as adjusted to accord with US 793,481 527,345
GAAP
Opening shareholders' equity under 674,386 439,340
US GAAP
Comprehensive Income adjustments
Investments (588) (1,395)
Unrealised gains on derivative financial 1,832 -
instruments
1,244 (1,395)
Net income in accordance with US 117,492 88,557
GAAP
Stock issued for cash 359 843
Closing shareholders' equity under 793,481 527,345
US GAAP
Page 7
Ryanair Holdings plc
Management Discussion and Analysis of Results
Summary
Quarter Ended December 31, 2001
Profit after tax has increased by 35% to €28.8m from €21.3m in the previous
quarter ended December 31, 2000. Passenger volumes, including no shows grew by
30% to 2.7m (28% excluding no shows), stimulated by fare promotions in the
aftermath of September 11th. Total Operating Revenues consequently grew at a
slower rate of 18% to €135.5m.
Ancillary Revenue grew by 26%, less than the growth in passengers, primarily due
to a reduction in the level of seat capacity allocated to the Charter programme
compared to last year.
Total Operating Expenses increased by 15% to €107.4m, due to the increased level
of activity, and the increased costs, primarily staff, fuel, route charges and
airport & handling costs, associated with the growth of the airline. These cost
increases were partly offset by savings in Depreciation and amortisation, and
Marketing & Distribution costs which declined by 55% to €1.1m due to the
significant increase in internet bookings on Ryanair.com. Operating margins have
as a result increased by 2% to 21% over the corresponding quarter last year and
Operating Profit has increased by 30% to €28.1m. Profit before Tax has increased
by 35% to €33.0m, higher than the growth in Operating profit due to increased
net interest income and foreign exchange gains in the quarter. For the reasons
outlined Net Margin has increased by 2% to 21%
Earnings per share has risen by 31% to €3.98 cent per share in the quarter, less
than the growth in profit after tax due to an increased number of shares in
issue post the share offering of February 2001.
Nine months ended December 31, 2001
Profit after tax has increased by 38% to €116.9m, compared to €84.7m in the
previous nine months ended December 31, 2000.Total Operating Revenues grew by
26% to €479.8m driven by passenger volume growth of 36%including no shows (34%
excluding no shows), reflecting the successful launch of 13 routes and growth on
our existing route network.
Total Operating Expenses increased by 23% to €350.6m due to the increased level
of activity, and the increased costs, primarily staff, fuel, route charges and
airport & handing costs associated with the growth of the airline. The level of
direct bookings has continued to increase giving rise to further reductions in
Marketing & Distribution costs. Further savings were achieved by a decline in
the level of Aircraft rentals reflecting the increased size of the fleet and the
reduced need to rent additional seat capacity. Operating margins have, as a
result of the above, increased from 25% to 27%, whilst Operating Profits
increased by 33% to €129.2m in the period. Profit before Tax has increased by
31% to €135.4m, less than the growth in Operating profit due to a foreign
exchange loss in the period. The effective Corporation Tax rate for the period
was 14% compared to 18% for the previous nine months and primarily reflects the
decline in the headline rate of Corporation Tax in Ireland.
For the reasons outlined above Net Margins have improved by 2% to 24%.
Balance Sheet
Cash and Liquid Resources have increased from €626.7m at March 31, 2001 to
€725.9m at December 31, 2001, reflecting the increased cash flows arising from
the continued profitable trading performance. The Company incurred capital
expenditure of €166.8m as it took delivery of an additional three aircraft and
made additional advance payments on future aircraft deliveries. The level of
long term debt increased by €76.3m net of debt repayments. Shareholder's Funds
at December 31, 2001 have increased to €787.1m, compared to €669.9m at March 31,
2001.
Detailed Discussion and Analysis - Quarter Ended December 31, 2001
Profit after tax has increased by 35% to €28.8m driven by strong growth in
passenger volumes and continued tight cost control. As a result Operating
margins have increased by 2% to 21%. Operating Profit increased by 30% to €28.1m
compared to the quarter ended December 31, 2000.
Scheduled Passenger Revenues increased by 17% to €117.1m, lower than the growth
in passenger volumes of 30% to 2.7m including no shows, due to our successful
strategy of stimulating passenger growth by reducing fares in the aftermath of
September 11th.
Ancillary Revenues increased by 26% to €18.4m, which is slightly lower than the
growth in passenger volumes primarily due to a decline in the level of seat
capacity available for our Charter programme.
Total Operating Expenses increased by 15% to €107.4m due to the increased level
of activity, and the increased costs primarily staff, fuel, route charges and
airport & handling costs associated with the growth of the airline offset by
savings in marketing & distribution costs, aircraft rentals and a decline in the
depreciation and amortisation charge.
Staff costs have increased by 25% to €19.0m. This increase reflects a 6%
increase in average employee numbers to 1,555. Pilots, who earn higher than the
average salary, accounted for 54% of the increase in employment. The increase in
the level of activity has also resulted in an increase in the level of
productivity based pay for both pilots and Inflight crew. Furthermore staff
costs also rose due to the impact of pay increases granted which were between 3%
and 7.5%.
Depreciation and Amortisation declined by 6% to €14.5m due to an increase in the
number of aircraft owned from 33 to 39, three of which were delivered in
December 2001, offset by savings arising from the increase in the number of
aircraft fully depreciated.
Fuel costs rose by 53% to €25.2m due to a 24% increase in the number of hours
flown, an increase in the average US$ cost per gallon of fuel and the adverse
impact of the strengthening of the US dollar to the Euro, offset by, an
improvement in fuel burn due to the increase in 737-800 fleet (more efficient
engines) as a percentage of the total fleet.
Maintenance costs increased by 19% to €5.4m reflecting an increase in the size
of the fleet operated, an increase in the number of flight hours, and the
increased line maintenance costs due to the continued expansion of our Stansted
base.
Marketing and Distribution Costs decreased by 55% to €1.1m due primarily to
increase in internet bookings. These savings were partly offset by higher
marketing costs associated with the promotion of Ryanair.com and the launch of
thirteen new routes.
Aircraft Rental Costs decreased by €2.0m to €0.1m reflecting the reduced
requirement to rent additional seat capacity arising from the delivery of the
new 737-800 aircraft.
Route Charges increased by 26% to €11.1m due to an increase in the basic unit
rate in some countries, an increase in the number of sectors flown, and an
increase in the average sector length.
Airport and Handling Charges increased by 21% to €20.3m due to an increase in
the number of passengers flown, and the impact of increased airport and handling
charges at some existing airports offset by lower charges on our new European
routes.
Other Expenses declined by 6% to €10.6m primarily reflecting a reduction in
ancillary product costs and the impact of cost reductions on other indirect
costs.
Operating Profits have increased by 30% to €28.1m due to the reasons outlined
above.
Interest Receivable increased by €2.9m to €8.2m reflecting the strong growth in
cash resources arising from the profitable trading performance during the
quarter. Interest Payable increased by €1.5m to €4.6m due to the increased level
of debt arising from the acquisition of six new aircraft.
Taxation increased in the quarter by €1.0m to €4.1m reflecting the increased
profitability in the quarter.
Detailed Discussion and Analysis - Nine months ended December 31, 2001
Profit after tax, has increased by 38% to €116.9m driven by strong growth in
passenger volumes and continued tight cost control. Operating Profit increased
by 33% to €129.2m compared to the nine months ended December 31, 2000. Profit
before tax increased by 31% to €135.4m, which is lower than the percentage
increase in Operating Profit due to a foreign exchange loss in the period.
Total Operating Revenues increased by 26% to €479.8m whilst passenger volumes
including no shows increased by 36% to 8.4m, 34% excluding no shows.
Scheduled Passenger Revenues increased by 25% to €423.6m due to strong growth in
passenger numbers offset by a reduction, as expected, in average fares.
Ancillary Revenues increased by 32% to €56.1m, which is slightly lower than the
growth in passenger volumes, primarily due to a reduction in the seat capacity
available for the Charter programme.
Total Operating Expenses increased by 23% to €350.6m due to the increased level
of activity, and the increased costs primarily staff, fuel, route charges and
airport & handling costs associated with the growth of the airline. These were
partly offset by reductions in Marketing & Distribution costs and Aircraft
Rental costs
Staff costs have increased by 26% to €57.3m. This increase reflects a 6%
increase in average employee numbers to 1,553. Pilots, who earn higher than the
average salary, accounted for 60% of the increase in employment. The increase in
the level of activity has also resulted in an increase in the level of
productivity based pay for both pilots and Inflight crew. Staff costs also rose
due to the impact of pay increases granted which were between 3% and 7.5%.
Depreciation and Amortisation increased by 6% to €44.7m due to the delivery of
an additional six next generation 737-800 aircraft, three of which were
delivered in December 2001, and the amortisation of capitalised maintenance
costs, offset by savings due to an increase in the number of aircraft fully
depreciated.
Fuel costs rose by 70% to €79.5m due to a 28% increase in the number of hours
flown, an increase in the average US$ cost per gallon of fuel and the adverse
impact of the strengthening of the US dollar to the Euro.
Maintenance costs increased by 27% to €19.5m reflecting an increase in the size
of the fleet operated, an increase in the number of flight hours, and the
increased line maintenance costs due to the continued expansion of our Stansted
base. This was partly offset by a reduction in the level of unscheduled engine
maintenance.
Marketing and Distribution Costs decreased by 42% to €10.5m due to a combination
of an increase in the level of internet bookings, and savings in commissions due
to the cessation of all travel agent bookings; this was partly offset by higher
marketing costs associated with the promotion of Ryanair.com and the launch of
thirteen new routes.
Aircraft Rental Costs declined by €3.3m to €4.0m reflecting the decline in the
need to rent additional seat capacity during the period due to the delivery of
new aircraft and a reduction in the Charter programme.
Route Charges increased by 30% to €35.5m due to an increase in the number
sectors flown, an increase in the average sector length and an increase in the
basic unit cost in some countries.
Airport and Handling Charges increased by 29% to €65.2m due to an increase in
the number of passengers flown, the impact of increased airport and handling
charges on some existing routes, offset by lower charges on our new European
routes.
Other Expenses increased by 12% to €34.3m, which is less than the growth in
ancillary revenues reflecting improved margins on some new and existing
products, and the impact of cost reductions on indirect costs.
Operating Profits have increased by 33% to €129.2m due to the reasons outlined
above.
Interest Receivable increased by €7.2m to €20.8m reflecting the strong growth in
cash resources arising from the profitable trading performance during the
period. Interest Payable rose by €6.2m to €13.8m due to the increased level of
debt arising from the acquisition of six new aircraft.
Taxation declined by €0.1m despite the increased profitability, due principally
to the decline in the headline rate of Corporation Tax in Ireland.
The Company's Balance Sheet continues to strengthen due to the strong growth in
profits. Capital expenditure during the period amounted to €166.8m mainly
reflecting the cost of new aircraft and additional aircraft deposit payments.
New aircraft were partly financed by the drawdown of additional long term debt
amounting to €97.3m with the remainder funded from internal cash reserves. At
December 31, 2001 the Company had €725.9m in Cash and Liquid resources, an
increase of €99.2m compared to March 31, 2001 whilst Total Debt increased by
€76.3m after debt repayments of €21.0m.
Shareholder's Funds at December 31, 2001 have increased to €787.1m compared to
€669.9m at March 31, 2001.
Notes to the Financial Statements
1. Accounting Policies
The accounting policies followed in the preparation of these
consolidated financial statements for the quarter and nine months ended
December 31, 2001 are consistent with those followed in the financial
year ended March 31, 2001.
2. Approval of the Financial Statements
The Audit Committee approved the consolidated financial statements for
the Quarter and Nine months ended December 31, 2001 on February 1, 2002.
3. Generally Accepted Accounting Policies
The Management Discussion and Analysis of Results for the Quarter and
Nine months ended December 31, 2001 are based on the results reported
under Irish and UK GAAP.
This information is provided by RNS
The company news service from the London Stock Exchange
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