Alaska Air Group (ALK), a provider of passengers and cargo air transportation services, has announced a 58.65 percent jump in profit for the quarter ended Jun. 30, 2014, helped by growth in sales and margins.
The company earned $165 million or $1.19 a share in the second-quarter compared with $104 million or $0.74 a share a year ago. Adjusted earnings per share came in at $1.13, when analysts expected $2.11.
Revenue during the second-quarter climbed 9.47 percent to $1,375 million from $1,256 million in the last year period.
Gross margin expanded by 601 basis points over the last year period to 56.73 percent. Operating income for the quarter increased to $263 million compared with $174 million in the previous year period. That has resulted in improvement of 527 basis points in operating margins to 19.13 percent.
''We're pleased to report our 21st consecutive quarterly profit and a record second quarter result,'' said CEO Brad Tilden. ''Through strong demand, a growing network, and steady support from our loyal customers, we were able to overcome the impact of substantial new competition.''
Working Capital
Alaska Air Group has witnessed a decline in the working capital over the last one year. The company's working capital stood at $156 million as at Jun. 30, 2014, down $74 million or 32.17 percent from $230 million on Jun. 30, 2013. It registered a decrease in current ratio to 1.08 as at Jun. 30, 2014 from 1.13 on Jun. 30, 2013.
Debt Position
Alaska Air Group has witnessed a decline in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $859 million, down 7.03 percent or $65 million, from Jun. 30, 2013. The company's total debt was 13.60 percent of total assets as on Jun. 30, 2014, compared with 15.79 percent on Jun. 30, 2013.
Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has improved to 21.92 from 12.43 in the same period last year.
Shares of Alaska Air Group gained $0.82 or 1.68 percent to settle at $49.69 on Wednesday.