DwightSchrute

https://apple.news/A1kkHULAQTvOsD3ruLnMFkw

saturn

Good to hear. DL CEO said today they'll also be cash burn 0 for March.

Al Czervik

Same with AA

hummingbear

"Positive adjusted core cash burn". Sounds like some very carefully crafted corporate speak- does anyone know what it actually means? I'm thinking something like "we are no longer losing our own money- only the government's". Scott points out in his video that this is not the same thing as profitability. Only in the corporate world is there a vast territory between not losing money and actually making some.

Monkeyfly

Bingo, especially true in the airline world.

MasterOfPuppets

my understanding is that the operation is making money. However we are not covering our debt/lease/rentals etc.

AxlF16

That's exactly how the financial performance of the cargo operation was described.

CQKSNT

This sounds more like corporate speak than what he actually said. The accurate quote is “United expects our core cash burn to be positive in March.”

hummingbear

So, “making money” as long as we don’t factor in paying our bills? By that standard, I could retire on a yacht in the Mediterranean.

Straight from Scott 2:32 time stamp. Direct quote. “United Airlines expects in March to return to positive adjusted core cash burn.” I think he says it a couple more times later in the video with slightly different wording.

Seneca Pilot

This is from Southwest's third quarter 2020 earnings report. It is a complete explanation of core cash burn. It is not made up by Kirby, it was adopted by all the airlines in order to deal with Cares funds and other non-typical accounting because of the pandemic and its effects.

5Cash burn is a supplemental measure that most U.S. airlines began providing in 2020 to measure liquidity in light of the negative financial effects of the pandemic. Average core cash burn is calculated as Loss before income taxes, non-GAAP, adjusted for Depreciation and amortization expense; Capital expenditures; and adjusted amortizing debt service payments; divided by the number of days in the period. The Company utilizes average daily core cash burn to monitor the performance of its core business as a proxy for its ability to achieve sustainable cash and profit break-even results. Given that the Company’s cash burn calculation is derived from Loss before income taxes, non-GAAP, the Company excludes the following items in its calculation of average core cash burn: financing transactions; Payroll Support Program proceeds; Supplier proceeds; and other changes in working capital. Cash burn methodology varies by airline, and the Company’s average daily core cash burn may differ materially by utilizing cash burn calculations that adjust for changes in working capital. Average core cash burn projections do not reflect the potential impact of special items because the Company cannot reliably predict or estimate those items or expenses or their impact to its financial statements in future periods. Accordingly, the Company believes a reconciliation of non-GAAP financial measures to the equivalent GAAP financial measures for projected results is not meaningful or available without unreasonable effort.