|Republic Airways Holdings Announces Fourth Quarter and 2005 Annual Earnings|
INDIANAPOLIS, Feb 16, 2006 (BUSINESS WIRE) -- Republic Airways Holdings Inc. (NASDAQ:RJET) today reported operating revenues of $251.8 million for the quarter ended December 31, 2005, a 33.6% increase, compared to $188.5 million for the same period last year. The Company also reported net income of $18.5 million or $0.43 per diluted share, for the quarter ended December 31, 2005.
These results include a one-time, non-cash item. During the quarter the Company reversed an accrual for estimated return charges on turboprop aircraft leases of $2.5 million, net of tax, or $0.06 per diluted share, due to a settlement that was reached with the lessors.
Net of this adjustment, net income was $15.9 million or $0.37 per diluted share compared to $14.8 million of net income or $0.56 per diluted share for the same period last year. Weighted average diluted common shares outstanding increased from 26.2 million to 42.9 million, or 64.0% as a result of the Company's follow on offerings of common stock in February and July 2005.
The primary items of significance affecting the fourth quarter of 2005 are outlined below:
Total operating revenues for the fourth quarter of 2005 increased primarily as a result of a 46.2% increase in available seat miles (ASMs) to 1.85 billion ASMs, up from 1.27 billion ASMs, and a 17.2% increase in block hours. These increases reflect the addition of thirty-six 70-seat regional jet aircraft that were placed into service throughout the year and the reduction of seven 50-seat regional jet aircraft that were removed from fixed-fee operations between September and November 2005. Five aircraft were removed from US Airways and two were removed from United. Of these seven aircraft, five have been subleased off-shore and two have been placed into our charter operations.
Total operating expenses for the fourth quarter of 2005, including interest expense but excluding fuel charges (which are reimbursable by the Company's major partners) and the one-time, non-cash item, of $147.9 million, increased approximately 34.7% from $109.8 million for the same quarter of 2004. Operating cost per ASM (CASM), including interest expense but excluding fuel and the one-time, non-cash item, decreased to 7.97 cents, a 7.9% decrease compared to the prior year's 8.65 cents.
The company increased its operating fleet of aircraft to 142 (48 Delta, 40 US Airways, 35 United, 15 American, and four Charter) as of December 31, 2005, from 111 regional jet aircraft as of December 31, 2004. During the quarter, the Company took delivery of twelve 70-seat regional jet aircraft (seven from US Airways, three for United and two for Delta) and removed four 50-seat regional jet aircraft (two from US Airways and two from United).
At December 31, 2005, the Company had $162.0 million in cash and marketable securities compared to $46.2 million as of December 31, 2004. The Company entered into debt financing arrangements for the five new aircraft delivered from the factory during the quarter. The Company's long-term debt increased to $1.41 billion as of December 31, 2005, compared to $0.85 billion at December 31, 2004. The Company has significant long-term lease obligations that are classified as operating leases and are not reflected as liabilities on the Company's consolidated balance sheets. At a 7.0% discount factor, the present value of these lease obligations was approximately $591.8 million as of December 31, 2005.
The Company's total Debt (including off-balance sheet leases) to Capital ratio decreased from 7.9 to 1 in 2004 to 4.7 to 1 in 2005, reflecting the Company's issuance of common stock in February and July 2005 of approximately $187 million.
For the full year ended December 31, 2005, operating revenues increased 40.0% to $905.0 million, compared to $646.3 million for the same period last year. The Company also reported net income of $60.7 million for 2005, or $1.66 per diluted share.
Net of the one-time, non-cash adjustment, net income improved 49.4% to $58.1 million, or $1.59 per diluted share compared to $38.9 million, or $1.62 per diluted share, in 2004. Weighted average diluted common shares outstanding increased from 23.9 million to 36.6 million, or 52.9% as a result of the Company's follow on offerings of common stock in February and July 2005.
Total ASMs for 2005 increased 42.1% from 2004 to 6.6 billion and block hours for 2005 increased 23.8% from 2004 to 464,000. During the year, the Company placed into service thirty-six 70-seat regional jet aircraft and removed seven 50-seat regional jets from fixed-fee service. The Company's average stage length increased 10.9% from 439 in 2004 to 487 in 2005, reflecting the longer flight segments being flown by the 70-seat aircraft.
Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that operates Chautauqua Airlines, Republic Airlines and Shuttle America. The company offers scheduled passenger service on approximately 800 flights daily to 78 cities in 33 states, Canada and the Bahamas through airline services agreements with four major U.S. airlines. All of its scheduled flights are operated under its major airline partner brand, such as AmericanConnection, Delta Connection, United Express and US Airways Express. The airline currently employs approximately 3,100 aviation professionals and operates 145 regional jet aircraft including 50 E170 aircraft.
The Company will conduct a telephone briefing to discuss its fourth quarter results today at 11:00 a.m. EDT. A live Webcast of this briefing will be available online at www.rjet.com - investor relations.
In addition to historical information, this release contains forward-looking statements. Republic Airways may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Republic Airways' beliefs, expectations, hopes or intentions regarding future events. Words such as "expects," "intends," "believes," "anticipates," "should," "likely" and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to Republic Airways as of such date. Republic Airways assumes no obligation to update any forward-looking statement. Actual results may vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others, the risk factors disclosed in the Company's most recent filing with the Securities and Exchange Commission.
REPUBLIC AIRWAYS HOLDINGS INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars and Shares in Thousands, Except per Share Amounts) (Unaudited) Three Months Ended Year Ended December 31 December 31 2005 2004 2005 2004 OPERATING REVENUES Passenger $240,504 $186,037 $883,906 $636,389 Other 11,272 2,483 21,115 9,935 Total operating revenues 251,776 188,520 905,021 646,324 OPERATING EXPENSES Wages and benefits 38,344 29,494 143,826 112,305 Aircraft fuel (see note below) 79,383 56,981 278,923 174,208 Landing fees 7,415 6,613 30,376 24,201 Aircraft and engine rent 20,217 20,413 77,725 74,514 Maintenance and repair 19,901 17,188 76,481 70,290 Insurance and taxes 3,638 3,116 16,117 13,186 Depreciation and amortization 20,933 10,641 64,877 34,412 Impairment loss and accrued aircraft return costs (4,218) 0 (4,218) 1,441 Other 16,378 12,801 62,195 50,422 Total operating expenses 201,991 157,247 746,302 554,979 OPERATING INCOME 49,785 31,273 158,719 91,345 OTHER INCOME (EXPENSE) Interest expense (21,037) (9,489) (63,546) (28,464) Other income 1,818 227 5,002 518 Total other income (expense) (19,219) (9,262) (58,544) (27,946) INCOME BEFORE INCOME TAXES 30,566 22,011 100,175 63,399 INCOME TAX EXPENSE 12,103 7,245 39,521 24,547 NET INCOME 18,463 14,766 60,654 38,852 PER SHARE, BASIC $0.44 $0.58 $1.69 $1.66 PER SHARE, DILUTED $0.43 $0.56 $1.66 $1.62 Weighted Average Common Shares Basic 41,696 25,543 35,854 23,350 Diluted 42,916 26,165 36,548 23,907 Unaudited Operating Highlights Operating Three Months Ended Year Ended Highlights December 31 December 31 2005 2004 Change 2005 2004 Change Passengers carried 2,368,044 1,970,902 20.2% 9,137,132 6,842,407 33.5% Revenue passenger miles (000) 1,272,631 868,357 46.6% 4,516,518 3,062,940 47.5% Available seat miles (000) 1,854,656 1,268,434 46.2% 6,559,966 4,618,043 42.1% Passenger load factor 68.6% 68.5% 0.1 pts 68.8% 66.3% 2.5 pts Cost per available seat mile, including interest expense (cents) 12.03 13.14 (8.4%) 12.35 12.63 (2.3%) Fuel cost per available seat mile (cents) (see note below) 4.28 4.49 (4.7%) 4.25 3.77 12.7% Impairment cost (credit) per available seat mile (cents) (0.22) 0.00 NM (0.06) 0.03 (300.0%) Cost per available seat mile, excluding fuel expense and impairment costs (cents) 7.97 8.65 (7.9%) 8.16 8.83 (7.6%) Block hours 118,980 101,533 17.2% 464,041 374,749 23.8% Departures 67,371 63,428 6.2% 274,765 236,798 16.0% Average daily utilization of each aircraft (hours) 10.28 10.35 (0.6%) 10.50 10.27 2.2% Average aircraft stage length 533 435 22.5% 487 440 10.7%
Note: Beginning in May 2005, US Airways elected to provide fuel directly for all of the Company's US Airways Express aircraft operations. This change eliminates fuel expense and the related fuel reimbursement (previously recorded as revenue) for the US Airways operations. Operating profits are not affected by this change.
SOURCE: Republic Airways Holdings
Republic Airways Holdings Warren R. Wilkinson, 317-484-6042
|"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Republic Airways Holdings's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.|