12.20.11 Cebu Pacific Fundamentals

 

The company generated revenue of 24.5B for the nine months ended Sept 30,2011. If we annualize this, we will have a projected 32.6B of revenue for 2011 (24.5B/3*4)

32.6B(estimated) is better than the revenue on 2010 was only 29.1B.

This increase was primarily due to the 12.8% growth in passenger volume to 8.7 million from 7.7 million last year driven by the increased number of flights and higher seat load factor of 87% in 2011.
Number of flights went up by 8.7% year on year as a result of the increase in the average number of aircraft operated for the period to 32.6 aircraft in the nine months ended September 30, 2011

However, expense grew faster than revenue. Pls refer to picture below.

Flying Operation is part of the “EXPENSE”. I just presented here to show how this single line item impacts the cost of operation.
Expense/Revenue = 22.2B / 24.5B = 91%
Expense accounted for 91% of revenue for 9M2011 as compared to only 78% on
2010.

Shown below is the summary of income statement’s vertical analysis.

 

*****

 

Full Income Statement:

 

2011 Quarterly Income statement

 

Statement of Financial Position

7.6% decrease in Cash and Cash Equivalents
Due to payments relative to the acquisition of Airbus A320 and A31NEO aircraft, distribution of cash dividends and repayment of long-term debt.
15.2% decrease in Financial Assets at FVPL
Due to settlement of derivative financial instruments and fair value loss on financial assets at FVPL during the period.
11.7% decrease in Receivables
Due to higher collections.

13.2% increase in Property and Equipment
Due to acquisition of two Airbus A320 aircraft and engine and one ATR 72-500 aircraft during the period.

 

6.0% increase in Accounts Payable and Other Accrued Liabilities
Due to increase in accruals and other payables relative to certain operating expenses as a result of the increased flight and passenger activity in the nine months ended September 30, 2011.
22.9% increase in Unearned Transportation Revenue
Due to increase in sale of passenger travel services.

[siomai: unearned transpo revenue for me is good since this are revenue but not yet recognized that’s why they are classified(for the mean time) under liability section. example. advance bookings – the recognition would be after the travel date]
100% increase in Financial Liabilities at FVPL
Due to decline in the valuation of fuel hedge as of September 30, 2011.
7.3% increase in Long-Term Debt (including Current Portion)
Due to additional loans availed to finance the purchase of the two Airbus A320 aircraft acquired during the year partially offset by the repayment of certain outstanding long-term debt in accordance with the repayment schedule and the appreciation of the value of Philippine peso against the U.S. dollar

 

 

PS: what if it will be removed in the index?

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