GOL Linhas Aereas Inteligentes S.A.
) reported fourth-quarter 2013 net loss per share of R$0.07 or
approximately 3 cents, which compared unfavorably with the Zacks
Consensus Estimate of break-even earnings. The results, however,
improved from the year-ago loss of R$1.66 (or approximately 81
cents). The quarter's results were hurt by a decline in domestic
supply, record jet fuel prices and depreciation of Brazilian real
against the dollar.
The company reported fourth-quarter net loss of R$19.3 million
(approximately $8.49 million), better than the year-ago net loss
of R$447.1 million (approximately $217.2 million).
For full-year 2013, the company reported loss per share of
R$2.62 (approximately $1.22), 53.2% lower than the year-ago loss
of R$5.61 (approximately $2.88).
For the year, net loss stood at R$724.6 million (approximately
$337.15 million), 52.1% narrower than the year-ago loss of
R$1,512.9 million (approximately $777.78 million).
Net revenue increased 28.7% year over year to R$2,728.2
million (approximately $1199.87 million) in the reported quarter.
The top line, however, was way ahead of the Zacks Consensus
Estimate of $961.0 million. Net revenue for full-year 2013 was up
10.5% year over year to R$8,956.2 million (approximately $4167.3
The domestic market generated revenues of R$2,494.6 million
($1,097.12 million), while international market revenues totaled
R$233.6 million ($102.73 million).
Revenue passenger kilometers or RPK - implying revenue
generated per kilometer per passenger - for the quarter improved
10.1% from the year-ago quarter to 9,484.4 million. International
RPK improved 44.4% while domestic RPK rose 7.3%.
Available Seat kilometers (ASK) - that measures an airline's
passenger carrying capacity - inched up 2.6% year over year to
12,667.4 million. ASK in the domestic market improved 0.3%
against a substantial 26.2% in the international front.
During the quarter, the company's total load factor stood at
74.8%, up 510 basis points (bps) from the year-ago quarter.
Domestically, load factor moved up 490 bps and internationally,
it rose 860 bps.
Operating costs and expenses, in the reported quarter,
remained flat with the year-ago figure of R$2,565.35 million
(approximately $1,128.24 million).
Fourth-quarter operating income (EBIT) came in at R$162.86
million (approximately $71.62 million) compared with an operating
loss of R$357.57 million (approximately $173.7 million) in the
Exiting 2013, GOL Linhas' cash and cash equivalents increased
to R$1,635.64 million (approximately $761.1 million) from
R$775.51 million (approximately $367.7 million) in the
corresponding year-ago quarter. Long-term debt increased to
R$5,148.7 million (approximately $2,395.7 million) from
R$3,471.55 million (approximately $1,690.0 million) in 2012.
For 2014, the company is expecting a negative 3-1% variation
in domestic capacity, while growth in international market is
projected at around 8%. GOL expects increased profits on improved
yield management, supply flexibility and increased load factor.
The company expects RASK (revenue per available seat kilometer)
growth of above 10% and a CASK (cost of available seat
kilometer), excluding fuel growth, of around 10% or below. In
keeping with these views, GOL expects EBIT margin of 3-6% in
Persistent weakness in Brazilian currency, which contributed
to the 8% increase in fuel prices offsetting some of the
positives of the quarter, is likely to pose considerable
obstruction to GOL's 2014 growth strategies. Other risks, such as
competition, subdued global economy, increased aircraft
maintenance costs and high debt, remain concerns.
However, Brazil will host the 2014 football world cup and 2016
summer Olympics, two of the biggest sporting extravaganzas. The
country is expected to get around 600,000 international and 3
million domestic visitors this year, presenting a big opportunity
for passenger carriers like GOL.
GOL - which operates with other industry players like
Copa Holdings S.A.
) - has a Zacks Rank #4 (Sell).
Better-ranked stocks within this sector include
Southwest Airlines Co.
American Airlines Group Inc.
). Both the stocks sport a Zacks Rank #1 (Strong Buy).
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