3rd Quarter Profit

[chucky]

UAL Corporation Reports Year-Over-Year Pre-Tax Income Growth of 127% for the Third Quarter of 2007
Tuesday October 23, 7:30 am ET


CHICAGO, Oct. 23 /PRNewswire-FirstCall/ -- UAL Corporation (Nasdaq: UAUA - News), the holding company whose primary subsidiary is United Airlines, reported pre-tax income of $565 million for the third quarter ended September 30, 2007. Pre-tax income, excluding special items, was $498 million, $279 million or 127 percent higher than the same period in 2006. The company:

-- Reported basic and diluted earnings per share (EPS) of $2.82 and $2.21
respectively. Excluding special items, basic and diluted EPS were $2.49
and $1.96 respectively. Diluted EPS excluding special items increased
75 percent versus last year.

-- Increased year-over-year mainline passenger unit revenue by 10.6
percent and by 9.7 percent excluding special items through its capacity
discipline and aggressive revenue management.

-- Continued its focus on controlling costs, with operating expenses
increasing only 0.6 percent versus the prior year.

-- Generated operating cash flow of $342 million, a 161 percent year-over-
year improvement. Maintained a cash and short-term investments balance
of $5.0 billion at September 30, 2007, including $788 million of
restricted cash, despite debt reductions during the quarter.

-- Strengthened its balance sheet by reducing total debt by $210 million
during the quarter.

-- Was awarded a new direct route to China, making United the first U.S.
carrier to offer daily, nonstop service between San Francisco and
Guangzhou.

Story

 

[jimntx]

Income growth is great. Revenue up? Wonderful. Was a profit made? I see no word of that in the press release.

If I increase my income by $1000, but my expenses increase by $1100, I'm still in trouble. I'm not trying to bash UAL, I would just like to know if this fabulous income growth resulted in a net profit.

 

[BoeingBoy]

Income growth is great. Revenue up? Wonderful. Was a profit made? I see no word of that in the press release.

It's in the financial statements, specifically the P&L statement. $656 million operating and $334 million net profit.

Jim

 

[NewHampshire Black Bears]

Well done UAL, well done !!!

Anyone know what the 9 month total is so far ?

 

[ohcaptainron]

Well done UAL, well done !!!

Anyone know what the 9 month total is so far ?


Over $700m

 

[donttouchthebeauty]

Hey NHBB, Thanks for the kudos.... It is a quite an impressive profit... Too bad the employees can't stuff it in their accounts... I am impressed though, I wonder if Ms. StrAAight has seen this??? Double the profit of AA and more than that of CAL and DAL.... Looks like we won't be selling off into pieces any time soon <_< ...

 

[StraaightTaalk]

Hey NHBB, Thanks for the kudos.... It is a quite an impressive profit... Too bad the employees can't stuff it in their accounts... I am impressed though, I wonder if Ms. StrAAight has seen this??? Double the profit of AA and more than that of CAL and DAL.... Looks like we won't be selling off into pieces any time soon <_< ...

Well, when you stiff your creditors; screw your employees; and don't pay your bills, I guess anything is possible.

Tilton is just putting lipstick on the pig before he sells it, pork chop by pork chop, at market.

 

[donttouchthebeauty]

Well, when you stiff your creditors; screw your employees; and don't pay your bills, I guess anything is possible.

Tilton is just putting lipstick on the pig before he sells it, pork chop by pork chop, at market.

Maybe StrAAight, maybe... I doubt it though. We'll see... Sounds like what AA did without BK and what most other airlines did in BK, only the ones that did it theough BK are much more profitable.

 

[FWAAA]

Excellent results by UAL.

Can any accountants (or pretend accountants) chime in with some justification for the following:

The company recorded a largely non-cash income tax expense in the third quarter of 2007 of $232 million. The effective tax rate for the quarter was 41 percent compared to an effective tax rate of 24 percent in the third quarter of 2006. Because of its Net Operating Loss carry-forwards, the company expects to pay minimal cash taxes for the foreseeable future.

http://biz.yahoo.com/prnews/071023/cltu010.html?.v=101

So UAL isn't paying income taxes, and doesn't expect to for the foreseeable future, but is accruing phantom expenses for them anyway?

AMR didn't do the same thing but DL did follow UAL's accounting convention on the phantom income tax expense. What gives?

 

[donttouchthebeauty]

Just checked the stock and it looks like it has went up to 50.70 so far today, that is a first........

 

[magsau]

Well, when you stiff your creditors; screw your employees; and don't pay your bills, I guess anything is possible.

Tilton is just putting lipstick on the pig before he sells it, pork chop by pork chop, at market.

Maybe we will buy the AA disAAdvantage Program since it and the Eaglet are for sale.

Can you please list the bills that are unpaid? Also didn't you guys have to vote twice on your contract to avoid CH11 a fews years ago? In fact what is the difference between UAL's reorg and what took place at AA? Not like you were getting pay raises. And if you think your defined benefit is going to stay in tact then you don't know Jeff Brundage.

 

[FWAAA]

Just checked the stock and it looks like it has went up to 50.70 so far today, that is a first........

Actually, it's not a first. UAUA hit $51.57 in mid-January of 2007.

 

[donttouchthebeauty]

Actually, it's not a first. UAUA hit $51.57 in mid-January of 2007.

Pardon me, I didn't know that the stock had ever hit above $50, well it will probably be one of the only times and I can't believe it has hovered at the high 40s for some time. Especially compared to most others that are in the mid 20s... I always look when i check my trips, on the stock ticker.. I am just surprised that most have had gains with the fuel speculation looming.

 

[StraaightTaalk]

Tilton. Lipstick. Pig.

FIRE SALE.

 

[Busdrvr]

Excellent results by UAL.

Can any accountants (or pretend accountants) chime in with some justification for the following:
http://biz.yahoo.com/prnews/071023/cltu010.html?.v=101

So UAL isn't paying income taxes, and doesn't expect to for the foreseeable future, but is accruing phantom expenses for them anyway?

AMR didn't do the same thing but DL did follow UAL's accounting convention on the phantom income tax expense. What gives?

Pretty simple concept. UAL had several years of "losses". The government doesn't give you money when you have "negative income", but you can use those loses to mitigate future taxes (if you lost one mill this year and made one mil next, you'd pay no taxes since your net was 0). The "credit" for "negative taxes" owed is carried on the balance sheet until it is offset by "positive taxes" owed.

In short, UAL will pay no taxes on the money they made this Q, but the total credit for "negative taxes" will be reduced on the balance sheet by the amount the would have owed without losses in previous years.

The credits don't last forever (5 years?) and are lost if the company has a "change of control" (to prevent a company from buying a BK company just for it's tax credits, this was an issue when AMR bought TWA). AMR will also have the same accounting "gimick" from their losses in the early 2000's