WESTJET Strategy Overview
Non-GAAP Financial Measures
The following non-GAAP and additional GAAP measures are used to monitor our financial performance:
Adjusted debt:
The sum of long-term debt and off-balance-sheet aircraft operating leases. Our practice, consistent with
common airline industry practice, is to multiply the trailing 12 months of aircraft leasing expense by 7.5 to
derive a present value debt equivalent. This measure is used in the calculation of adjusted debt-to-equity
and adjusted net debt to EBITDAR, as defined below.
Adjusted net debt:
Adjusted debt less cash and cash equivalents. This measure is used in the calculation of adjusted net debt
to EBITDAR, as defined below.
EBITDAR:
Earnings before net finance costs, taxes, depreciation, amortization, aircraft rent and other items, such as
asset impairments, gains and losses on derivatives, and foreign exchange gains or losses. Trailing 12
months EBITDAR is a measure commonly used in the airline industry to evaluate results by excluding
differences in the method by which an airline finances its aircraft. Cash to trailing 12 months revenue:
Cash as a percentage of the trailing twelve months' revenue is a measure commonly used in the airline
industry to compare liquidity positions, adjusting for seasonality that may occur within a financial year.
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