Final Results
Ryanair Holdings PLC
25 June 2001
RECORD ANNUAL PROFITS DELIVERED BY RYANAIR
TRAFFIC GROWS BY 35%, PROFITS INCREASE BY 44% TO Euro104.5M
Ryanair, Europe's largest low fares airline today (25 June 2001) announced a
strong set of results for the year ended 31 March, 2001. Traffic for the year
increased by 35% to 7.4m passengers, total revenues grew by 32% to Euro487.4m.
reflecting a fall in average fares of some 3% which is in line with the
airline's stated objective of driving down average air fares each year.
Operating expenses increased by 31% which was a slightly lower than revenue
growth. As a result after tax profits increased by 44% to a new record of Euro
104.5m. for the year, and the Net Profit Margin increased by 1% to 21%.
Summary Table of Results (Irish GAAP) - in Euro's
Full Year March 31, 2001 March 31, 2000 % Increase
Passengers 7.4m 5.5m 35%
Revenue Euro487.4m Euro370.1m 32%
Profit after tax Euro104.5m Euro72.5m 44%
Basic EPS (Euro Cents) 29.61 21.62 37%
Commenting on these results in London this morning Ryanair's CEO, Michael
O'Leary said;
'These are another excellent set of results, delivered by the
exceptional team of 1,500 people in Ryanair, the only genuine low
fares airline in Europe. Trading conditions over the past 12 months
have been difficult, characterised by significantly higher oil prices,
fears of an economic downturn, significant retrenchment in the
technology sector and the outbreak of foot and mouth disease in the UK
in the last quarter. As a result most of our European competitors have
issued profit warnings or reported losses.
'Despite these negative market conditions, Ryanair has continued to
deliver disciplined growth in fleet, new routes, traffic, revenues and
profitability. During the last six(Winter) months of the year, when
all of the other low fares airlines in Europe have been recording
losses, Ryanair's traffic increased by 35% and profitability by 37%.
What makes Ryanair different from other low fare airlines, is that
although our average air fares are some 30% lower, our profits rise,
as our traffic grows and we continue to be profitable in all four
quarters.
'These results cover a year during which Ryanair achieved new
milestones;
* Ten new 737-800 series aircraft were purchased bringing the fleet to 36.
* Ten new routes were launched from London Stansted, Glasgow Prestwick and
Shannon to Europe.
* Almost 2 million additional passengers were carried.
* RYANAIR.COM became the only internet travel site to offer a 'lowest fare
guarantee' and boosted our direct sales to 92% of bookings.
* A new five year agreement covering pay, benefits and share options was
agreed with our pilots, cabin crew and ground operations staff.
'The amazing success of RYANAIR.COM continues to transform Ryanair's
business model. Unlike other airlines who claim to have high internet
penetration, Ryanair's internet development has delivered large
savings in sales, marketing and distribution costs. Travel agency
sales are now down to 8% with 92% of all sales being taken directly
through RYANAIR.COM. This transformation in our distribution channel
has enabled Ryanair to reduce sales, marketing and distribution costs
by 62% during a half year in which traffic has grown by 37%. Again
unlike other low cost airlines whose average fares are being increased
Ryanair has passed on these cost savings in the form of lower average
air fares, which in turn underpin our growth in traffic and profits
especially during the Winter period.
'I could not let these results pass without highlighting the lost
opportunities to the Irish economy and tourism due to the disastrous
effects of the present Irish government's policy of increasing costs
at Dublin Airport (and protecting this high cost airport monopoly)
which has resulted in higher fares and the ending of Dublin airport's
15 year record of annual double digit traffic growth. This policy is
catastrophic for a small island nation like Ireland, whose tourism
industry is central to the growth of our economy. While access costs
to Ireland rise and tourism declines, Ryanair continues to stimulate
huge traffic growth at those other European airports such as London
Stansted up 26%, Glasgow Prestwick up 29% and Frankfurt-Hahn up 127%
all of whom are encouraging new route growth and tourism development.
It is time for the Irish government to change this disastrous policy
before any further damage is inflicted upon Irish tourism.
'Whilst current trading conditions continue to be challenging, Ryanair
is maintaining its ambitious targets for new route development and
traffic growth. Over the past three months, we have launched seven
routes from London Stansted and six from our first Continental
European base at Brussels Charleroi. We are offering Belgian consumers
80% plus savings over the high fares previously being charged by
Sabena. Initial load factors have been ahead of expectations and are
currently running at 70% plus for the full month at our Brussels base.
'The fact that Sabena has already been forced to lower some of its air
fares on most of these routes merely confirms that Ryanair is good for
competition, good for Belgian traffic and tourism growth and is giving
Europe's consumers more choice, low fares and high frequency services.
'Our disciplined profitable growth clearly differentiates Ryanair from
other low fare imitators. Europe's consumers are flocking to Ryanair
for our unbeatable service package which provides them with guaranteed
lowest air fares and the No.1 on-time flight services, delivered some
of Europe's newest aircraft. Our outstanding team of 1,500 people
continue to revolutionise European air travel and continue to share in
our growth and success thanks to Ryanair's company wide share option
schemes. We remain committed to ensuring that this profitable growth
will continue'
Ryanair has undertaken to notify the shareholders twice yearly of the
percentage of ordinary shares held by EU nationals, and on March 31, 2001, not
less than 51% of the ordinary shares were held by EU nationals. We are
actively seeking to increase the percentage of its share capital held by EU
nationals. Accordingly, Ryanair has instructed The Bank of New York, the
depositary for the company's American Depositary Share (ADS) program, to
suspend the issuance of new ADSs in exchange for the deposit of ordinary
shares until further notice, beginning on June 26, 2001. Holders of ordinary
shares will not be able to convert their ordinary shares into ADSs. The Bank
of New York will continue to convert existing ADSs into ordinary shares at the
request of the holders of such ADSs. The company does not expect this action
to have any material effect on the trading of its ordinary shares on the Irish
Stock Exchange or the London Stock Exchange, or on the trading of its existing
ADSs on the NASDAQ.
ENDS.
For results and further information Howard Millar Pauline McAlester
please contact: Ryanair Holdings Plc Murray Consultants
www.Ryanair.com Tel: 353-1-8121212 Tel: 353-1-6633332
Certain of the information included in this release is forward looking and is
subject to important risks and uncertainties that could cause actual results
to differ materially. It is not reasonably possible to itemise all of the many
factors and specific events that could affect the outlook and results of an
airline operating in the European economy. Among the factors that are subject
to change and could significantly impact Ryanair's expected results are the
airline pricing environment, fuel costs, competition from new and existing
carriers, market prices for replacement aircraft, costs associated with
environmental, safety and security measures, actions of the Irish, U.K.,
European Union ('EU') and other governments and their respective regulatory
agencies, fluctuations in currency exchange rates and interest rates, airport
access and charges, labour relations, the economic environment of the airline
industry, the general economic environment in Ireland, the UK and Continental
Europe, the general willingness of passengers to travel and other economics,
social and political factors.
Ryanair is Europe's largest low fares airline with 55 low fare routes across
12 countries. Ryanair has a fleet of 36 Boeing 737's, orders for up to a
further 30 new 737-800's which will be delivered over the next 4 years.
Ryanair currently employs a team of 1,500 people and will carry 9 million
scheduled passengers in the current year.
www.RYANAIR.COM was launched in January 2000 and is already Europe's largest
travel website. This is the only internet site to guarantee the lowest fares
on the web.
Ryanair Holdings plc and Subsidiaries
Consolidated Profit and Loss Accounts in accordance
with UK and Irish GAAP
Year Year
Ended Ended
March 31, March 31,
2001 2000
Euro'000 Euro'000
Operating Revenues
Scheduled revenues 432,940 330,571
Ancillary revenues 54,465 39,566
Total operating revenues
-continuing operations 487,405 370,137
Operating expenses
Staff costs 61,222 48,533
Depreciation and amortisation 59,175 44,052
Other operating expenses
Fuel & Oil 63,468 41,676
Maintenance, materials and repairs 20,142 16,886
Marketing and distribution costs 21,526 32,123
Aircraft rentals 7,286 2,097
Route charges 35,701 26,301
Airport and Handling charges 66,269 43,095
Other 38,605 31,319
Total operating expenses 373,394 286,082
Operating profit - continuing operations 114,011 84,055
Other income/(expenses)
Interest receivable and similar income 19,666 7,498
Interest payable and similar charges (11,962) (3,781)
Foreign exchange gains 1,621 1,358
Gains on disposal of fixed assets 52 964
Total other income/(expenses) 9,377 6,039
Profit on ordinary activities
before taxation 123,388 90,094
Tax on profit on ordinary activities (18,905) (17,576)
Profit for the year 104,483 72,518
Earnings per ordinary share*
-Basic(Euro cents) 29.61 21.62
-Diluted(Euro cents) 29.26 21.48
Number of ordinary shares(in 000's)*
-Basic 352,811 335,478
-Diluted 357,098 337,681
* The Company implemented a 2:1 share split on February 28th, 2000. Share
capital and earnings per share figures have been restated to give effect to
the share split.
Page 1
Ryanair Holdings plc and Subsidiaries
Consolidated Balance Sheets in accordance with
UK and Irish GAAP
March 31, March 31,
2001 2000
Euro'000 Euro'000
Fixed assets
Tangible assets 613,591 315,032
Financial assets 36 36
Total fixed assets 613,627 315,068
Current Assets
Cash and liquid resources 626,720 355,248
Accounts receivable 8,695 21,974
Other assets 12,235 6,478
Inventories 15,975 13,933
Total current assets 663,625 397,633
Total assets 1,277,252 712,701
Current liabilities
Accounts payable 29,998 22,861
Accrued expenses and other liabilities 139,406 107,445
Current maturities of long term debt 27,994 9,567
Short term borrowings 5,078 3,780
Total current liabilities 202,476 143,653
Other liabilities
Provisions for liabilities and charges 30,122 15,279
Long term debt 374,756 112,412
404,878 127,691
Shareholders' funds - equity
Called - up share capital 9,194 8,892
Share premium account 371,849 248,093
Profit and loss account 288,855 184,372
Shareholders' funds - equity 669,898 441,357
Total liabilities and shareholders' funds 1,277,252 712,701
Page 2
Ryanair Holdings plc and Subsidiaries
Consolidated Cashflow Statements in accordance
with UK and Irish GAAP
Year Year
Ended Ended
March March
31, 31,
2001 2000
Euro Euro
'000 '000
Net cash inflow from operating activities 229,802 149,575
Returns on investments and servicing of finance 5,570 1,953
Taxation (13,813) (15,545)
Capital expenditure (including aircraft deposits) (356,214)(154,079)
Net cash (outflow) before financing
and use of liquid resources (134,655) (18,096)
Financing 404,829 214,862
(Increase) in liquid resources (230,633)(196,110)
Increase in cash 39,541 656
Analysis of movement in liquid resources
Liquid resources at beginning of year 334,149 138,039
Increase in year 230,633 196,110
Liquid resources at end of year 564,782 334,149
Analysis of movement in cash
At beginning of year 17,319 16,663
Net cash inflow 39,541 656
Net cash at end of year 56,860 17,319
Page 3
Ryanair Holdings plc and Subsidiaries
Consolidated Statement of Changes in Shareholders' Funds
- Equity in accordance with UK and Irish GAAP
Share Profit
Ordinary premium and
loss
shares account account Total
Euro'000 Euro Euro Euro
'000 '000 '000
Balance at April 1, 2000 8,892 248,093 184,372 441,357
Issue of ordinary equity
shares
(net of issue costs) 302 123,756 0 124,058
Profit for the year 0 0 104,483 104,483
Balance at March 31, 2001 9,194 371,849 288,855 669,898
Page 4
Ryanair Holdings plc and Subsidiaries
Consolidated Profit and Loss Accounts in accordance
with US GAAP
Year Year
Ended Ended
March 31, March 31,
2001 2000
Euro'000 Euro'000
Scheduled revenues 432,940 330,571
Ancillary revenues 54,465 39,566
Total operating revenues
-continuing operations 487,405 370,137
Operating expenses
Staff costs 60,081 48,890
Depreciation and amortisation 57,465 41,614
Other operating expenses
Fuel & Oil 63,468 41,676
Maintenance, materials and repairs 20,142 16,886
Marketing and distribution costs 21,526 32,123
Aircraft rentals 7,286 2,097
Route charges 35,701 26,301
Airport and Handling charges 66,269 43,095
Other 38,517 31,233
Total operating expenses 370,455 283,915
Operating profit - continuing operations 116,950 86,222
Other income/(expenses)
Interest receivable and similar income 19,666 7,498
Interest payable and similar charges (11,962) (3,781)
Foreign exchange gains/(losses) 8,424 (2,397)
Gains on disposal of fixed assets 52 964
Total other income/(expenses) 16,180 2,284
Profit on ordinary activities
before taxation 133,130 88,506
Tax on profit on ordinary activities (20,742) (16,640)
Net Income 112,388 71,866
Net Income per ADS *
-Basic(Euro cents) 159.28 107.11
-Diluted(Euro cents) 157.36 106.41
Weighted Average number of shares*
-Basic 352,811 335,478
-Diluted 357,098 337,681
* The Company implemented a 2:1 share split on February 28th, 2000. Share
capital and earnings per share figures have been restated to give effect to
the share split.(Each ADS represents five ordinary shares)
Page 5
Ryanair Holdings plc and Subsidiaries
Summary of significant differences between UK, Irish
and US generally accepted accounting principles
(A) Net income under US GAAP
<------Year ended------>
March 31, March 31,
2001 2000
Euro'000 Euro'000
Profit as reported in the consolidated
profit and loss accounts and in accordance
104,483 72,518
with UK and Irish GAAP
Adjustments
Pension 740 363
Unrealised gains/(losses) on forward exchange 6,803 (3,755)
contracts
Employment grants 401 (664)
Basis of accounting for August 1996 transaction 1,531 1,996
Basis of accounting for aircraft acquired from 179 442
Northill Limited
Darley Investments Limited 88 86
Share option compensation expense 0 (56)
Tax effect of adjustments (1,837) 936
Net income under US GAAP 112,388 71,866
(B) Consolidated Cashflow Statements in accordance
With US GAAP
<------Year ended------>
March 31, March 31,
2001 2000
Euro'000 Euro'000
Cash inflow from operating activities 221,558 135,983
Cash (outflow) from investing activities (360,056) (327,006)
Cash inflow from financing activities 406,127 214,749
Increase in cash and cash equivalents 267,629 23,726
Cash and cash equivalents at beginning of year 121,430 97,704
Cash and cash equivalents at end of year 389,059 121,430
Cash and cash equivalents under US GAAP 389,059 121,430
Deposits with a maturity of between three and six 237,661 233,818
months
Cash and liquid resources under UK and Irish GAAP 626,720 355,248
Page 6
Ryanair Holdings plc and Subsidiaries
Summary of significant differences between UK, Irish and
US generally accepted accounting principles
(C) Shareholders' funds - equity
March 31, March 31,
2001 2000
Euro'000 Euro'000
Shareholders' equity as reported in the consolidated
balance
sheets (UK and Irish GAAP) 669,898 441,357
Adjustments:
Pension 1,663 923
Unrealised gains/(losses) on forward exchange contracts 4,189 (2,614)
Employment grants (933) (1,334)
Basis of accounting for August 1996 transactions 0 (1,531)
Basis of accounting for aircraft acquired from Northill 0 (179)
Limited
Darley Investments Limited (415) (503)
Investments 588 1,988
Tax effect of adjustments (604) 1,233
Shareholders' equity as adjusted to accord with US GAAP 674,386 439,340
Opening shareholders' equity under US GAAP 439,340 249,913
Investments (1,400) (314)
Net income in accordance with US GAAP 112,388 71,866
Stock issued for cash 124,058 117,875
Closing shareholders' equity under US GAAP 674,386 439,340
Page 7
Ryanair Holdings plc
Management Discussion and Analysis of Results
Summary Year Ended March 31, 2001
Consolidated Profit and Loss
Profit after tax, adjusted for non-recurring gains in 2000, has increased by
46% to Euro104.5m, compared to Euro71.6m in the previous year ended March 31,
2000. Excluding the adjustment for the non-recurring gain Profit after tax
increased by 44%. Total Operating Revenues, grew by 32% to Euro487.4m whilst
passenger volumes increased by 35% to 7.4m.
Total Operating Expenses increased by 31% to Euro373.4m, due to the increased
level of activity, and the increased costs, primarily depreciation, fuel and
airport & handling costs associated with the growth of the airline. These
costs were partly offset by savings in Marketing and Distribution costs which
declined by 33% due mainly to the dramatic increase in the level of direct
bookings on Ryanair.com. Profit before Tax has increased by 37%. The effective
Corporation Tax rate for the year was 15% compared to 20% for the previous
year, and primarily reflects the impact of the decline in the headline rate of
corporation tax in Ireland. For the reasons outlined Net Margin has increased
from 20% to 21% in the fiscal year.
Balance Sheet
Cash and Liquid Resources have increased from Euro355.3m at March 31, 2000 to
Euro626.7m at March 31, 2001, reflecting the increased cash flows from the
profitable trading performance, and the receipt of the proceeds of the
secondary offering amounting to Euro124.1m in February 2001. During the year
the company incurred capital expenditure of Euro356.7m primarily financed by
an increase in the level of debt. Shareholder's Funds at March 31, 2001 have
increased to Euro669.9m, compared to Euro441.4m at March 31, 2000.
Discussion and Analysis Year Ended March 31, 2001
Profit after tax, adjusted for non-recurring gains on the sale of investments
in 2000, increased by 46% to Euro104.5m driven by strong growth in passenger
volumes and continued tight cost control. Excluding the adjustment for
non-recurring gains in 2000 Profit after tax increased by 44%. Operating
margins have remained consistent at 23% which has resulted in Operating Profit
increasing by Euro30.0m to Euro114.0m compared to year ended March 31, 2000.
Total Operating Revenues increased by 32% to Euro487.4m whilst passenger
volumes increased by 35% to 7.4m.
Scheduled Passenger Revenues increased by 31% to Euro432.9m due to a
combination of increased passenger numbers on existing routes and the
successful launch of ten new routes. The success of Ryanair.com generated
substantial cost savings that were passed on to passengers in the form of
lower average fares, which in turn further stimulated passenger volumes.
Ancillary Revenues increased by 38% to Euro54.5m, which is higher than the
growth in passenger volumes, and primarily reflects the increase in the level
of car hire rentals, other ancillary products, and internet-related revenues.
Total Operating Expenses increased by 31% to Euro373.4m due to the increased
level of activity, and the increased costs primarily depreciation, fuel and
airport and handling costs associated with the growth of the fleet and the
airline.
Staff costs have increased by 26% to Euro61.2m. This increase reflects a 16%
increase in average employee numbers to 1,467. Pilots, who earn higher than
the average salary, accounted for 34% of the increase in employment. Staff
costs also rose due to the impact of pay increases, which were between 3% and
5.5%.
Depreciation and Amortization increased by 34% to Euro59.2m due to an increase
in the number of aircraft owned from 26 to 36, and the amortisation of
capitalised maintenance costs.
Fuel costs rose by 52% to Euro63.5m due to a 29% increase in the number of
hours flown, an increase in the average US$ cost per gallon of fuel and the
adverse impact of the strengthening of the US dollar to the Euro.
Maintenance costs increased by 19% to Euro20.1m reflecting an increase in the
size of the fleet operated, an increase in the number of flight hours, and the
increased line maintenance costs due to the expansion of our Stansted base,
partly offset by a lower level of unscheduled engine maintenance.
Marketing and Distribution Costs decreased by 33% to Euro21.5m due to a
combination of an increase in the level of direct bookings via the internet, a
33% reduction in the travel agent commission rate, and the termination of the
distribution agreement with Galileo offset by a higher spend on the
advertising of new routes and Ryanair.com.
Aircraft Rental Costs increased by Euro5.2m to Euro7.3m reflecting the need to
rent additional seat capacity primarily during the peak summer period.
Route Charges increased by 36% to Euro35.7m due to an increase in the number
sectors flown, and an increase in the average sector length.
Airport and Handling Charges increased by 54% to Euro66.3m due to an increase
in the number of passengers flown, the impact of increased airport and
handling charges on some existing routes, and the adverse impact of the
strength of Sterling to the Euro, offset by, lower charges on our new European
routes.
Other Expenses increased by 23% to Euro38.6m, which is less than the growth in
ancillary revenues reflecting improved margins on some new and existing
products.
Operating Margins have increased slightly due to the reasons outlined above
which has resulted in Operating Profits increasing by 36% to Euro114.0m during
the year.
Interest Receivable increased by Euro12.2m to Euro19.7m reflecting the strong
growth in cash resources arising from the profitable trading performance
during the year and the receipt of proceeds from a secondary offering in
February 2001. Interest Payable increased by Euro8.2m due to the higher level
of debt arising from the acquisition of ten new aircraft.
Taxation increased in the year by Euro1.3m to Euro18.9m reflecting the
increased profitability in the year whilst the tax rate declined from 20% to
15% primarily reflecting the reduction in the headline rate of Corporation Tax
in Ireland.
The Company's Balance Sheet continues to strengthen due to the combined
benefit of strong growth in profits and receipt of the net proceeds of the
secondary offering of Euro124.1m during February 2001. The Company generated
cash from operating activities of Euro229.8m, which partly funded the
acquisition of ten 737-800 aircraft and the payment of additional aircraft
deposits. Capital expenditure amounted to Euro356.7m, primarily consisting of
new aircraft additions whilst debt funding increased to Euro402.6m during the
same period. Cash and liquid resources at March 31, 2001 were Euro626.7m
compared to Euro355.3 at March 31, 2000.
Shareholder's Funds at March 31,2001 have increased to Euro669.9m compared to
Euro441.4m at March 31, 2000.
Notes to the Financial Statements
1. Accounting Policies
The accounting policies followed in the preparation of these
consolidated financial statements for the year ended March 31, 2001
are consistent with those set out in the Annual Report for the year
ended March 31, 2000.
2. Approval of the Financial Statements
The consolidated financial statements for the Year ended 31 March 2001
were approved by the Board of Directors on June 20th, 2001.
3. Generally Accepted Accounting Policies
The Management Discussion and Analysis of Results for the Year ended
March 31, 2001 are based on the results reported under Irish and UK
GAAP.
4. Nationality Declaration
The company has undertaken to notify the shareholders twice yearly of
the percentage of Ordinary shareholders held by EU Nationals.
Accordingly, on March 31, 2001 EU Nationals held not less than 51% of
the ordinary shares.
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