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8-K - FORM 8-K - Allegiant Travel COearningsreleaseq320158-k.htm
Allegiant Q3 2015 Earnings
Page 1

Exhibit 99.1
 
  
ALLEGIANT TRAVEL COMPANY THIRD QUARTER 2015
FINANCIAL RESULTS
Third Quarter 2015 Fully Diluted Earnings per Share of $2.62

LAS VEGAS. October 21, 2015 —Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the third quarter 2015, as well as comparisons to prior year equivalents:

 
 
Three Months Ended September 30,
 
 
Nine Months Ended September 30,
 
Unaudited
 
2015
2014
Change
 
2015
2014
Change
Total operating revenue (millions)
 

$300.0


$265.0

13.2
%
 

$951.3


$858.1

10.9
%
Operating income (millions)
 

$77.1


$28.9

166.8
%
 

$277.9


$142.6

94.9
%
Net income (millions)
 

$44.5


$14.2

213.4
%
 

$163.7


$81.9

99.9
%
Diluted earnings per share
 

$2.62


$0.80

227.5
%
 

$9.55


$4.54

110.4
%
Return on capital employed (LTM)*
 
18.7
%
17.5
%
1.2pp

 
 
 
 
* - see appendix for calculation

“We are very proud to report another profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “Our financial performance continues to benefit from lower energy costs and the profitable growth of our network. In addition, we continue to enhance our management, systems and processes to better support our operations. These efforts reinforce our belief that growth rates should not exceed the capabilities of our infrastructure. We are also working towards simplifying our operations where possible. Our eventual migration to an all Airbus fleet is the biggest step in this effort. We currently have 18 Airbus aircraft in our fleet and expect to have 25 by year end; over the next few years, our current commitments will take us to a total of 50 Airbus aircraft.

Once again, all this is possible only through the hard work and dedication of our Team members, particularly during our busy summer months. Thank you."

Notable company highlights

Airbus aircraft - In August, committed to purchase our 50th Airbus aircraft
Aircraft financing - Raised $29.0 million in debt secured by two A319 aircraft in September
Network growth - Third quarter scheduled ASMs grew by 24.2 percent; cities by 8 percent, routes by 17 percent. As of September 30, the company is selling 296 routes versus 236 routes during the same time period last year
Share repurchase - Returned approximately $38 million to shareholders through the repurchase of 175,307 shares during the third quarter


Allegiant Q3 2015 Earnings
Page 2

Recurring dividend - Shareholders of record as of August 20, 2015 were paid a total of $5.1 million on September 4, 2015

Third quarter 2015 network trends
 
Airbus growth - Increased the number of Airbus in service by seven versus last year. Airbus aircraft flew over 77 percent of the incremental scheduled service ASMs in the third quarter
Airbus network - Airbus aircraft flew over 32 percent of the third quarter ASMs versus 22 percent a year ago
New route growth - New routes, routes that were not operated during the same period last year, accounted for 79 percent of the growth in ASMs in the quarter

Third quarter 2015 revenue performance
 
Scheduled service revenue - Increased by 1.9 percent driven by a 22.8 percent increase in scheduled service passengers, offset by a 17.1 percent decrease in average fare. The decrease in average fare was directly related to a higher proportion of flying in new markets and during off peak times versus the same period last year
Air-related charges - Average ancillary air related charges per passenger increased 13.4 percent due to an increase in the convenience fee that occurred in the fourth quarter of 2014 and effective yield management of other existing products
Third party products - Average ancillary third party products revenue per passenger was flat versus the same period last year. This was due to increased capacity growth on the East Coast, which is more favorable to rental car transactions, as demonstrated by rental car days increasing over 53 percent versus the third quarter last year. This offset the continued weakness in hotel room nights which declined 17 percent versus the same quarter last year
Impacts on TRASM - Third quarter TRASM declined 8.2 percent. Excluding the impact of the increased September 11 fee and the implementation of the Credit Card Surcharge and its accounting as a reduction in sales and marketing cost, TRASM would have declined 5.2 percent

Fourth quarter 2015 revenue trends

TRASM guidance - Fourth quarter TRASM is expected to decrease between 10.5 and 8.5 percent versus the fourth quarter last year
New route growth - New routes, routes that have been in service for less than one year, are expected to be almost 16 percent of fourth quarter ASMs versus 6.2 percent of fourth quarter 2014 ASMs
Off peak flying - The number of seats flown on off peak days of the week are expected to account for almost 23 percent of the total in the fourth quarter versus 20 percent in the same quarter last year. Additionally, ASMs in October and November will grow more rapidly than December
Impacts on TRASM - The impact of the Credit Card Surcharge is expected to continue to account for about two percentage points of the decline in TRASM

Third quarter 2015 cost performance
 
CASM - For the quarter, total operating expense per ASM (CASM) decreased 23.5 percent year over year.
CASM ex fuel - Third quarter CASM ex fuel outperformed initial expectations of decreasing ten to eight percent. The decrease of 11.3 percent was aided by a shift in maintenance events from the third quarter into the fourth quarter
Aircraft fuel - Quarterly fuel expense decreased 28.0 percent driven by a 41.3 percent decrease in our price per gallon which was offset by a 22.7 percent increase in gallons consumed. Overall fleet fuel efficiency continues to improve as a larger percentage of flying is accomplished by Airbus aircraft
Salary and benefits - Quarterly salary and benefits expense increased 13.2 percent versus the prior year primarily due to a 14.6 percent increase in full time equivalent employees associated with an 8.3 percent increase in average number of aircraft in service. In addition, the increase in company profitability drove an increase in bonus accrual and a shift to higher pilot pay rates that became effective on May 1, 2015
Station operations - Quarterly station operations expense increased by 25.6 percent versus the prior year as system departures increased by 27.4 percent. Stations expense on a per departure basis declined by more than one percent versus the same period last year


Allegiant Q3 2015 Earnings
Page 3

Maintenance and repairs - Quarterly maintenance and repairs expense increased by 12.4 percent as the average fleet size grew 8.3 percent

Fourth quarter and full year 2015 cost trends
 
CASM ex fuel - CASM ex fuel is expected to decrease between 33 and 31 percent compared to fourth quarter 2014. Excluding the $43 million in 757 write down that occurred in December 2014, CASM ex fuel is expected to decline between 12 and 10 percent in the fourth quarter
Maintenance and repairs expense - Expected to decline due to a lower number of expected heavy maintenance events versus last year, despite a shift in several maintenance events from the third quarter to the fourth quarter. Full year 2015 maintenance and repairs expense per aircraft per month is expected to be between $100 thousand and $105 thousand
Total ownership expense per aircraft per month - Full year 2015 total of depreciation expense and aircraft lease rental expense per aircraft per month is expected to be between $110 and $115 thousand

Balance sheet highlights

Recurring dividend - Paid a quarterly cash dividend of $0.30 per share on September 4, 2015 to all shareholders of record as of August 20, 2015. The Company intends to pay a fourth quarter $0.30 dividend on December 4, 2015 to all shareholders of record as of November 23, 2015
Share repurchases - Share repurchases totaled approximately $38 million for the third quarter
Shareholder returns - As of September 30, cash returned to shareholders was over $178 million for 2015. $57 million was returned through dividends and $121 million through share repurchases
Capital expenditures - Three Airbus aircraft were purchased in the third quarter which drove the bulk of $41 million in CAPEX for the quarter. Full year CAPEX is expected to be approximately $275 million
Additional debt in the third quarter - In September 2015, the Company raised $29.0 million in debt secured by two A319 aircraft

Unaudited (millions)
9/30/2015
 
12/31/2014
 
Change
Unrestricted cash*

$385.6

 

$416.8

 
(7.5
)%
Total debt

$635.8

 

$588.8

 
8.0
 %
Total Allegiant Travel Company stockholders’ equity

$334.1

 

$292.9

 
14.1
 %
* - Unrestricted cash includes investments in marketable securities.

 
Nine Months Ended September 30,
 
 
Unaudited (millions)
2015
 
2014
 
Change
Capital expenditures
$173.9
 
$330.1
 
(47.3
)%
 
At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.



Allegiant Q3 2015 Earnings
Page 4

Guidance, subject to revision
 
 
 
 
 
 
October 2015
4Q15
 
Estimated TRASM year-over-year change
(12.5) to (10.5)%
(10.5) to (8.5)%
 
 
 
 
 
Fixed fee and other revenue guidance
 
4Q15
 
Fixed fee and other revenue (millions)
 
$13 to $15
 
 
 
 
 
Capacity guidance
 
 
 
System
4Q15
1Q16
 
   Departure year-over-year growth
22 to 26%
14 to 18%
 
   ASM year-over-year growth
22 to 26%
15 to 19%
 
Scheduled
 
 
 
   Departure year-over-year growth
22 to 26%
14 to 18%
 
   ASM year-over-year growth
22 to 26%
15 to 19%
 
 
 
 
 
Cost guidance
4Q15
 
FY15
CASM ex fuel – year-over-year change
(33) to (31)%
 
(13) to (11)%
CASM ex fuel (excluding non-cash AC impairment charge) - year over year change
(12) to (10)%
 
(6) to (4)%
 
 
 
 
CAPEX guidance
 
 
FY15
Capital expenditures (millions)
 
 
$275
 CASM ex fuel – cost per available seat mile excluding fuel expense

Aircraft fleet plan by end of period
 
 
 
 
 
 
 
 
 
Aircraft - (seats per AC)
 
3Q15

4Q15

YE16

MD-80 (166 seats)
 
51

51

46

757 (215 seats)
 
6

5

4

A319 (156 seats)
 
7

10

17

A320 (177 seats)
 
10

15

16

Total
 
74

81

83

Aircraft listed in table above include only in service aircraft, planned retirements and future aircraft under contract

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, October 21, 2015 to discuss its third quarter 2015 financial results. A live broadcast of the conference call will be available via the Company’s Investor Relations website homepage at http://ir.allegiant.com. The webcast will also be archived in the “Events & Presentations” section of the website.




Allegiant Q3 2015 Earnings
Page 5

Allegiant, Travel is our deal.®
Las Vegas-based Allegiant Travel Company® (NASDAQ: ALGT) is focused on linking travelers in small cities to world-class leisure destinations. Through its subsidiary, Allegiant Air, the company operates a low-cost, high-efficiency, all-jet passenger airline, and offers other travel-related products such as hotel rooms, rental cars, and attraction tickets through its website, allegiant.com. The company has been named one of America’s 100 Best Small Companies by Forbes Magazine for four consecutive years.  ALGT/G
 
Media Inquiries: Jessica Wheeler
mediarelations@allegiantair.com
 
Investor Inquiries: Chris Allen
ir@allegiantair.com
 
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding future unit revenue, future operating expense, ASM growth, departure growth, fixed-fee and other revenues, expected capital expenditures, number of contracted aircraft to be placed in service in the future, as well as other information concerning future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," “guidance,” "anticipate," "intend," "plan," "estimate", “project”, “hope” or similar expressions.
 
Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at www.sec.gov . These risk factors include, without limitation, volatility of fuel costs, labor issues, the effect of economic conditions on leisure travel, debt covenants, terrorist attacks, risks inherent to airlines, demand for air services to our leisure destinations from the markets served by us, our dependence on our leisure destination markets, our competitive environment, an accident involving or problems with our aircraft, our reliance on our automated systems, our reliance on third parties who provide facilities or services to us, the possible loss of key personnel, economic and other conditions in markets in which we operate, aging aircraft and other governmental regulation, increases in maintenance costs and cyclical and seasonal fluctuations in our operating results.
 
Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.
 
Detailed financial information follows:




Allegiant Travel Company
Consolidated Statements of Income
Three Months Ended September 30, 2015 and 2014
(in thousands, except per share amounts)
(Unaudited)
 
 
Three Months Ended September 30,
 
Percent
 
2015
 
2014
 
change
OPERATING REVENUE:
 
 
 
 
 
Scheduled service revenue
$
170,002

 
$
166,893

 
1.9

Ancillary revenue:
 
 
 
 
 

Air-related charges
107,554

 
77,198

 
39.3

Third party products
9,890

 
8,051

 
22.8

Total ancillary revenue
117,444

 
85,249

 
37.8

Fixed fee contract revenue
4,640

 
4,899

 
(5.3
)
Other revenue
7,870

 
7,988

 
(1.5
)
Total operating revenue
299,956

 
265,029

 
13.2

OPERATING EXPENSES:
 
 
 
 
 

Aircraft fuel
68,272

 
94,864

 
(28.0
)
Salary and benefits
58,968

 
52,109

 
13.2

Station operations
26,454

 
21,064

 
25.6

Maintenance and repairs
25,369

 
22,562

 
12.4

Sales and marketing
4,053

 
7,808

 
(48.1
)
Aircraft lease rentals
695

 
1,565

 
(55.6
)
Depreciation and amortization
24,346

 
22,174

 
9.8

Other
14,717

 
14,016

 
5.0

Total operating expenses
222,874

 
236,162

 
(5.6
)
OPERATING INCOME
77,082

 
28,867

 
167.0

OTHER (INCOME) EXPENSE:
 
 
 
 
 

Earnings from unconsolidated affiliates, net
(67
)
 
(101
)
 
(33.7
)
Interest income
(301
)
 
(106
)
 
184.0

Interest expense
6,687

 
7,097

 
(5.8
)
Total other expense
6,319

 
6,890

 
(8.3
)
INCOME BEFORE INCOME TAXES
70,763

 
21,977

 
222.0

PROVISION FOR INCOME TAXES
26,305

 
7,866

 
234.4

NET INCOME
44,458

 
14,111

 
215.1

Net loss attributable to noncontrolling interest

 
(61
)
 
NM*

NET INCOME ATTRIBUTABLE TO ALLEGIANT TRAVEL COMPANY
$
44,458

 
$
14,172

 
213.7

Earnings per share to common stockholders (1):
 
 
 
 
 

Basic

$2.63

 

$0.80

 
228.8

Diluted

$2.62

 

$0.80

 
227.5

Weighted average shares outstanding used in computing earnings per share to common stockholders (1):
 
 
 
 
 

Basic
16,831

 
17,605

 
(4.4
)
Diluted
16,869

 
17,704

 
(4.7
)
NM* - not meaningful
 
(1) The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share for the periods presented reflect the two-class method mandated by accounting guidance for the calculation of earnings per share. The two-class method adjusts both the net income and shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented.




Allegiant Travel Company
Operating Statistics
Three Months Ended September 30, 2015 and 2014
(Unaudited) 
 
Three Months Ended September 30,
 
Percent
 
2015
 
2014
 
change*
OPERATING STATISTICS
 
 
 
 
 
Total system statistics
 
 
 
 
 
Passengers
2,420,819

 
1,971,917

 
22.8

Revenue passenger miles (RPMs) (thousands)
2,235,683

 
1,867,660

 
19.7

Available seat miles (ASMs) (thousands)
2,597,658

 
2,106,214

 
23.3

Load factor
86.1
%
 
88.7
%
 
(2.6
)
Operating expense per ASM (CASM) (cents)
8.58

 
11.21

 
(23.5
)
Fuel expense per ASM (cents)
2.63

 
4.50

 
(41.6
)
Operating CASM, excluding fuel (cents)
5.95

 
6.71

 
(11.3
)
ASMs per gallon of fuel
69.2

 
68.9

 
0.4

Departures
17,330

 
13,607

 
27.4

Block hours
39,347

 
31,486

 
25.0

Average stage length (miles)
878

 
902

 
(2.7
)
Average number of operating aircraft during period
74.7

 
69.0

 
8.3

Average block hours per aircraft per day
5.7

 
5.0

 
14.0

Full-time equivalent employees at period end
2,654

 
2,315

 
14.6

Fuel gallons consumed (thousands)
37,518

 
30,566

 
22.7

Average fuel cost per gallon
$
1.82

 
$
3.10

 
(41.3
)
Scheduled service statistics
 
 
 
 
 
Passengers
2,383,556

 
1,940,348

 
22.8

Revenue passenger miles (RPMs) (thousands)
2,204,760

 
1,839,640

 
19.8

Available seat miles (ASMs) (thousands)
2,526,292

 
2,033,318

 
24.2

Load factor
87.3
%
 
90.5
%
 
(3.2
)
Departures
16,563

 
12,925

 
28.1

Block hours
38,094

 
30,265

 
25.9

Total scheduled service revenue per ASM (TRASM)** (cents)
11.38

 
12.40

 
(8.2
)
Average fare - scheduled service
$
71.32

 
$
86.01

 
(17.1
)
Average fare - ancillary air-related charges
$
45.12

 
$
39.79

 
13.4

Average fare - ancillary third party products
$
4.15

 
$
4.15

 

Average fare - total
$
120.59

 
$
129.95

 
(7.2
)
Average stage length (miles)
894

 
916

 
(2.4
)
Fuel gallons consumed (thousands)
36,458

 
29,509

 
23.5

Average fuel cost per gallon
$
1.83

 
$
3.16

 
(42.1
)
Percent of sales through website during period
95.2
%
 
93.8
%
 
1.4

 
* Except load factor and percent of sales through website, which is percentage point change.
** Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis




Allegiant Travel Company
Consolidated Statements of Income
Nine months ended September 30, 2015 and 2014
(in thousands, except per share amounts)
(Unaudited)
 
 
Nine Months Ended September 30,
 
Percent
 
2015
 
2014
 
change
OPERATING REVENUE:
 
 
 
 
 
Scheduled service revenue
$
556,842

 
$
559,587

 
(0.5
)
Ancillary revenue:
 
 
 
 
 

Air-related charges
326,055

 
248,432

 
31.2

Third party products
31,663

 
28,338

 
11.7

Total ancillary revenue
357,718

 
276,770

 
29.2

Fixed fee contract revenue
11,993

 
10,508

 
14.1

Other revenue
24,745

 
11,229

 
120.4

Total operating revenue
951,298

 
858,094

 
10.9

OPERATING EXPENSES:
 
 
 
 
 

Aircraft fuel
216,985

 
308,308

 
(29.6
)
Salary and benefits
171,119

 
145,845

 
17.3

Station operations
74,768

 
63,453

 
17.8

Maintenance and repairs
70,488

 
64,590

 
9.1

Sales and marketing
16,907

 
22,269

 
(24.1
)
Aircraft lease rentals
2,092

 
12,897

 
(83.8
)
Depreciation and amortization
73,597

 
60,355

 
21.9

Other
47,402

 
37,826

 
25.3

Total operating expenses
673,358

 
715,543

 
(5.9
)
OPERATING INCOME
277,940

 
142,551

 
95.0

OTHER (INCOME) EXPENSE:
 
 
 
 
 

Earnings from unconsolidated affiliates, net
(117
)
 
(173
)
 
(32.4
)
Interest income
(948
)
 
(545
)
 
73.9

Interest expense
20,531

 
13,817

 
48.6

Total other expense
19,466

 
13,099

 
48.6

INCOME BEFORE INCOME TAXES
258,474

 
129,452

 
99.7

PROVISION FOR INCOME TAXES
94,853

 
47,900

 
98.0

NET INCOME
163,621

 
81,552

 
100.6

Net loss attributable to noncontrolling interest
(44
)
 
(340
)
 
(87.1
)
NET INCOME ATTRIBUTABLE TO ALLEGIANT TRAVEL COMPANY
$
163,665

 
$
81,892

 
99.9

Earnings per share to common stockholders (1):
 
 
 
 
 

Basic

$9.57

 

$4.56

 
109.9

Diluted

$9.55

 

$4.54

 
110.4

Weighted average shares outstanding used in computing earnings per share to common stockholders (1):
 
 
 
 
 

Basic
17,010

 
17,848

 
(4.7
)
Diluted
17,050

 
17,912

 
(4.8
)

(1) The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share for the periods presented reflect the two-class method mandated by accounting guidance for the calculation of earnings per share. The two-class method adjusts both the net income and shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented.




Allegiant Travel Company
Operating Statistics
Nine months ended September 30, 2015 and 2014
(Unaudited) 
 
Nine Months Ended September 30,
 
Percent
 
2015
 
2014
 
change*
OPERATING STATISTICS
 
 
 
 
 
Total system statistics
 
 
 
 
 
Passengers
7,139,876

 
6,188,299

 
15.4

Revenue passenger miles (RPMs) (thousands)
6,734,217

 
5,979,798

 
12.6

Available seat miles (ASMs) (thousands)
7,814,146

 
6,776,554

 
15.3

Load factor
86.2
%
 
88.2
%
 
(2.0
)
Operating expense per ASM (CASM) (cents)
8.62

 
10.56

 
(18.4
)
Fuel expense per ASM (cents)
2.78

 
4.55

 
(38.9
)
Operating CASM, excluding fuel (cents)
5.84

 
6.01

 
(2.8
)
ASMs per gallon of fuel
69.8

 
69.5

 
0.4

Departures
50,976

 
42,783

 
19.2

Block hours
118,999

 
102,300

 
16.3

Average stage length (miles)
900

 
925

 
(2.7
)
Average number of operating aircraft during period
73.6

 
68.7

 
7.1

Average block hours per aircraft per day
5.9

 
5.5

 
7.3

Full-time equivalent employees at period end
2,654

 
2,315

 
14.6

Fuel gallons consumed (thousands)
111,881

 
97,511

 
14.7

Average fuel cost per gallon
$
1.94

 
$
3.16

 
(38.6
)
Scheduled service statistics
 
 
 
 
 
Passengers
7,034,244

 
6,095,857

 
15.4

Revenue passenger miles (RPMs) (thousands)
6,647,978

 
5,901,375

 
12.7

Available seat miles (ASMs) (thousands)
7,612,202

 
6,599,798

 
15.3

Load factor
87.3
%
 
89.4
%
 
(2.1
)
Departures
48,833

 
41,017

 
19.1

Block hours
115,434

 
99,226

 
16.3

Total scheduled service revenue per ASM (TRASM)** (cents)
12.01

 
12.67

 
(5.2
)
Average fare - scheduled service
$
79.16

 
$
91.80

 
(13.8
)
Average fare - ancillary air-related charges
$
46.35

 
$
40.75

 
13.7

Average fare - ancillary third party products
$
4.50

 
$
4.65

 
(3.2
)
Average fare - total
$
130.01

 
$
137.20

 
(5.2
)
Average stage length (miles)
915

 
939

 
(2.6
)
Fuel gallons consumed (thousands)
108,837

 
94,875

 
14.7

Average fuel cost per gallon
$
1.96

 
$
3.20

 
(38.8
)
Percent of sales through website during period
95.1
%
 
93.8
%
 
1.3

 
* Except load factor and percent of sales through website, which is percentage point change.
** Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis




Appendix A
Additional Financial Information
(Unaudited)

 
Twelve Months Ended September 30,
Return on capital calculation (millions)
2015
 
2014
Net income attributable to Allegiant Travel Company
$
168.5

 
$
99.4

Income tax
97.8

 
58.4

Interest expense
27.9

 
16.6

Less interest income
(1.2
)
 
(0.8
)
 
293.0

 
173.6

 
 
 
 
Interest income
1.2

 
0.8

Tax rate
36.7
%
 
37.0
%
Numerator
186.2

 
109.9

 
 
 
 
Total assets as of prior September 30
1,269.9

 
843.9

Less current liabilities as of prior September 30
326.0

 
227.9

Plus short term debt as of prior September 30
51.9

 
13.6

Denominator
995.8

 
629.6

Return on capital employed
18.7
%

17.5
%