Tag Archives: IPO

Virgin America sets its IPO price at $23 a share

Virgin America Inc. (San Francisco) premiered today on Wall Street. The airline previously issued this statement on the Initial Public Offering (IPO):

Virgin America has announced the pricing of its initial public offering of 13,337,587 shares of its common stock at a price to the public of $23.00 per share. Virgin America is offering 13,106,377 shares. VX Employee Holdings, LLC, a Virgin America employee stock ownership vehicle, is offering 231,210 issued and outstanding shares as a selling stockholder. In addition, certain selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 2,000,638 shares of common stock. The shares are expected to begin trading on the NASDAQ Global Select Market on November 14, 2014, under the symbol “VA.”

Barclays and Deutsche Bank Securities are acting as lead joint book-running managers for the offering. BofA Merrill Lynch, Cowen and Company, Goldman Sachs & Co., Imperial Capital, LOYAL3 Securities and Raymond James are acting as co-managers for the offering.

A registration statement relating to these securities has been filed with, and declared effective by, the U.S. Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Read the analysis by Bloomberg Businessweek: CLICK HERE

Copyright Photo: Brian McDonough/AirlinersGallery.com. Airbus A320-214 N849VA (msn 4991) with the special “Giants-Fly Together” markings arrives in Washington (Reagan National).

Video: On October 29, 2014, San Francisco Giants fans on Virgin America flight 717 from Dallas Love Field (DAL) to San Francisco International Airport (SFO) cheered their hometown team to victory in game seven of the World Series from 35,000 feet thanks to the airline’s live television at every seat.

Virgin America aircraft slide show: AG Slide Show

Virgin America reports 3Q net income of $41.6 million, expects to raise around $320 million from its pending IPO

Virgin America (San Francisco) reported its financial results for the third quarter of 2014 with an operating income of $52.3 million and net income of $41.6 million. The airline posted an operating margin of 12.9 percent – a 1.4 point improvement over the third quarter of 2013, driven largely by a 5.5 percent growth in revenue per available seat mile (RASM) over the prior year period.

Third Quarter 2014 Financial Highlights:

Operating Revenue: Total operating revenue of $405.5 million, an increase of 4.7 percent over the third quarter of 2013.

Revenue per Available Seat Mile (RASM): RASM increased 5.5 percent compared to the third quarter of 2013, to 12.60 cents. Year-over-year RASM growth was driven by a 0.6 percent increase in yield and a 3.0 point increase in load factor. The RASM performance continues the trend of strong RASM growth for the airline, which reported 9 percent RASM growth year-over-year for its Full Year 2013 results.

Cost per Available Seat Mile (CASM): Total CASM increased 3.8 percent compared to the third quarter of 2013, to 10.98 cents. CASM excluding fuel costs for the quarter increased 5.5 percent year-over-year, to 6.84 cents, primarily due to a provision for teammate profit sharing. CASM, excluding both fuel and profit-sharing costs, increased 2.0 percent, to 6.61 cents.

Operating Income: Third quarter of 2014 operating income increased by 17.9 percent over the third quarter of 2013 to $52.3 million with an operating margin improvement of 1.4 points year-over-year.

Net Income: Net income for the quarter increased 24.2 percent year-over-year, from $33.5 million to $41.6 million. Virgin America’s year-to-date net income improved by $60.2 million from a net loss of $4.0 million for the nine months ended September 30, 2013, to net income of $56.2 million for the nine months ended September 30, 2014.

Capacity: Available seat miles (ASMs) for the third quarter of 2014 decreased 0.8 percent year-over-year. The airline ended the quarter with 53 Airbus A320-family aircraft.

Liquidity: Unrestricted cash was $184.5 million as of September 30, 2014.

Analysis by Bloomberg Businessweek and its pending IPO: CLICK HERE

Copyright Photo: Brian McDonough/AirlinersGallery.com. Airbus A320-214 N849VA (msn 4991) with the special champion “Giants-Fly Together” logo arrives in Washington.

Virgin America: AG Slide Show