Oh my, I stand corrected...any blog by Michael Boyd spouting his OPINIONS sure trumps the SEC filings I quoted as far as the LEGAL TRANSACTION that took place...
Lets see: a direct quote from the USAirways 10-Q filing with the SEC, or an op-ed by Michael Boyd...analyst to the stars...
Thanks anyway, sport, I'll stick with the LEGAL document every time.
Mach or Sport or whatever..........
Here is the "official word" from the CFO. Your interpretation appears skewed. I can read a 10K as well, but it doesn't mean I can fully understand its' full details.
Cheers
Derek Kerr - US Airways Group Inc. - CFO
Thanks, Doug. We filed a new US Airway Group's 10-Q for the third quarter this morning and in that Q we reported a net loss
of 87 million or $5.04 per diluted share. This compares to a net loss of 25 million -- 29 million or $1.92 per share a year-ago. If
you exclude special items, the Company's net loss for the third quarter improved to 23 million or $1.33 per diluted share from
a net loss of 46 million or $3.06 per diluted share.
Let me take a minute here and explain what is included in the reported numbers since I'm sure it's very confusing for everyone.
First, although we merged -- although the merger was legally structured so that America West Holdings was acquired by and
became a wholly owned subsidiary of US Airways Group, America West Holdings is treated as the acquiring company for
accounting purposes and that's some of the reasons for the numbers we have out there. The impact of the results is that the
new US Airways Group only existed for four days during the quarter so just from September 27, to the 30, past the closing of
the transaction is the only numbers that US Airways Groups has in here. Thus the results contain 88 days of America West
Holdings the accounting acquire plus 4 days of the US Airways Group. Now, under GAAP the 2005 third quarter must be compared
to 92 days only of America West Holdings. So you have an extra four days of revenues and costs associated with US Airways,
Inc. in 2005 but not in 2004 so this makes the comparisons a little skewed. And as I about go through and explain some of the
numbers I'll try to explain the differences.
The 10-Q, which went out this morning will break out those four days of US Airways Group so you can see the impact of how
much US Airways Group has on the fourth quarter. Now. for the next four quarters, per GAAP rules, we'll have to compare
quarterly data to America West Holdings Inc. so we'll have this problem as we go forward for the next four quarters. We realize
that this isn't extremely meaningful and we're working out a way to provide more meaningful pro forma financial data. If we
can figure out a good way to do that without major reconciliation to GAAP issues, we'll provide an 8-K at a later date that gives
us more pro forma data of the two airlines combined.
The second issue involves the low share count used to calculate earnings per share. The merger results in a very low number
of reported average shares outstanding for two main reasons. The Class A and Class B America West shares were converted into
US Airways Group shares at ratios so the total A and B shares which used to be 36 million shares are now approximately 15
million so we've cut them more than in half. The second issue is the new group shares only existed for four days as I said before,
so the weighted average of those shares in the calculation is very small. There's only 2 million shares included so therefore what
we have is 17.3 million shares for the quarter. The actual number of shares outstanding today is 82 million so going forward
you should use the 82 million number for shares for US Airways Group.
Now that I'm sure everything is crystal clear. Let me talk a little bit about each company's reported numbers starting with the
US Airways stand alone. Though they are not included in the Company's consolidated results, except for four days after the
merger closed, the financials are in the press release tables. US Airways, Inc. reported net income of 588 million for the third
quarter 2005 which included a non-cash gain of 668 million related to the Company's recent reorganization. If you exclude the
reorganization gain, US Airways reported a net loss of $80 million for the third quarter 2005.
LCC - Q3 2005 US Airways Group Inc. Earnings Conference Call
Event Date/Time: Nov. 09. 2005 / 11:00AM ET
Do you even have any idea of how much anti-westie-mosquitoe spray costs? 😉 "West Nile Virus" has an entirely new meaning with you sorry people.... 😉
Perhaps they should Alert Seham and see if Boyd can be sued into submission. It hasn't worked yet for them but who knows. 
