| Reports ex-item net income of $15.5 million and EPS of $0.45
INDIANAPOLIS--(BUSINESS WIRE)--May. 4, 2009--
Republic Airways Holdings Inc. (NASDAQ: RJET) today reported operating
revenues of $325.3 million for the quarter ended March 31, 2009, a 10.6%
decrease, compared to $363.9 million for the same period last year. The
Company reported net income of $2.2 million for the quarter ended March
31, 2009, compared to $20.2 million reported in the prior year’s first
quarter. The Company also reported earnings per diluted share of $0.06,
compared to $0.55 for the same period last year.
The Company’s first quarter 2009 results included a $13.3 million,
non-cash goodwill impairment charge, which creates no tax benefit and
therefore reduced net income by the full $13.3 million. Excluding the
goodwill impairment, net income for the quarter was $15.5 million and
earnings per diluted share was $0.45. The primary items of significance
affecting the first quarter of 2009 are outlined below.
First Quarter Highlights
Excluding reimbursement for fuel expense, which is a pass-through cost
to our partners, regional airline service revenues increased 4.3% for
the first quarter of 2009. This increase was primarily as a result of a
shift in the mix of flying toward larger regional jets.
Total operating expenses for the first quarter of 2009, including
interest expense but excluding fuel charges (which are reimbursable by
the Company’s major partners), of $283.9 million, increased
approximately 15.0% from $246.9 million for the same quarter of 2008.
Operating cost per available seat mile (CASM), including interest
expense but excluding fuel and the goodwill impairment charge increased
to 8.14¢ for the first quarter of 2009, from 7.62¢ for the same quarter
of 2008. Operating expenses in 2009 also include $3.1 million of
expenses to accrue for return costs on CRJ-200 aircraft and a $3.0
million charge related to the recapitalization of Mokulele Airlines.
During the quarter the Company took delivery of three new 76-seat E175
regional jets which were placed into fixed-fee service for Delta. The
Company entered into fixed rate debt financing arrangements for these
aircraft. The Company also removed three 50-seat aircraft from service
from its Continental operations during the quarter. Two of the aircraft
removed have been subleased offshore and the other aircraft will be
returned to the lessor. At March 31, 2009, the Company’s fleet consisted
of 221 regional jet aircraft.
Recent Developments
On March 5, 2009, the Company agreed to a firm commitment for $40
million in post-petition debtor-in-possession (DIP) financing to
Frontier Airlines Holdings, Inc. (“Frontier”). This new DIP facility,
which was funded on April 1, 2009, matures December 1, 2009.
On March 19, 2009 the Company participated in the recapitalization of
Mokulele Airlines. Pursuant to the recapitalization, the Company
converted $3.0 million of its $8.0 loan and invested $3.0 million of
cash in exchange for 50% of Mokulele’s common stock. The
recapitalization agreement required Republic to invest an additional
$2.5 million which was funded on May 1, 2009.
Also in March 2009, the Company funded an additional $25 million to US
Airways pursuant to the Credit Agreement between US Airways and the
Company that was entered into in October 2008.
Balance Sheet Information
At March 31, 2009 the Company had $117.9 million in cash and cash
equivalents compared to $129.7 million as of December 31, 2008. The
Company’s long-term debt decreased to $2.27 billion as of March 31,
2009, compared to $2.28 billion at December 31, 2008. All of the
Company’s long-term debt is at fixed interest rates and is secured by
the aircraft. The Company has significant long-term lease obligations
for aircraft 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 $660 million as of March 31, 2009 compared to
approximately $685 million reported as of December 31, 2008.
Corporate Information
Republic Airways Holdings, based in Indianapolis, Indiana is an airline
holding company that owns Chautauqua Airlines, Republic Airlines and
Shuttle America. The airlines offer scheduled passenger service on
approximately 1,200 flights daily to 105 cities in 36 states, Canada,
Mexico and Jamaica through airline services agreements with seven U.S.
airlines. All of the airlines' flights are operated under their airline
partner brand, such as AmericanConnection, Continental Express, Delta
Connection, United Express, Midwest Connect, Mokulele Airlines and US
Airways Express. The airlines currently employ approximately 4,500
aviation professionals and operate 216 regional jets.
The Company will conduct a telephone briefing to discuss its first
quarter results tomorrow, May 5th, at 10:00 a.m. EDT. For
those wishing to participate please call 866-783-2141 and for
international calls please dial 857-350-1600, the password is 61304559.
A live Webcast of this briefing will also be available online at www.rjet.com
- investor relations.
Additional Information
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 risks discussed in our Form 10-K and our other filings made with the
Securities and Exchange Commission, which discussions are incorporated
into this release by reference.
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REPUBLIC AIRWAYS HOLDINGS, INC. AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF INCOME
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(Dollars and Shares in Thousands, Except per Share Amounts)
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(Unaudited)
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Financial Highlights
|
Three Months Ended March 31,
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2009
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2008
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Change
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OPERATING REVENUES
|
|
|
|
|
|
|
Regional airline services
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$ 321,712
|
|
|
$ 359,545
|
|
|
-10.5
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%
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|
Other
|
3,593
|
|
|
4,338
|
|
|
-17.2
|
%
|
|
Total operating revenues
|
325,305
|
|
|
363,883
|
|
|
-10.6
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%
|
|
|
|
|
|
|
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OPERATING EXPENSES
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|
|
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Wages and benefits
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64,590
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|
63,364
|
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1.9
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%
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Aircraft fuel
|
32,116
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|
81,777
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-60.7
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%
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Landing fees
|
16,898
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|
13,830
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|
|
22.2
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%
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Aircraft and engine rent
|
31,603
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|
33,960
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-6.9
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%
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Maintenance and repair
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46,581
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|
38,473
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21.1
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%
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Insurance and taxes
|
6,479
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|
|
5,800
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|
11.7
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%
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Depreciation and amortization
|
35,895
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|
30,893
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16.2
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%
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Goodwill impairment
|
13,335
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|
-
|
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100.0
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%
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Other
|
33,041
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29,973
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|
|
10.2
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%
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Total operating expenses
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280,538
|
|
|
298,070
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-5.9
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%
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OPERATING INCOME
|
44,767
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|
|
65,813
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-32.0
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%
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NON-OPERATING INCOME (EXPENSE)
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Interest expense
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(35,434
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)
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(30,635
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)
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15.7
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%
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Other — net
|
2,745
|
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(2,735
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)
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NM
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Total non-operating income (expense)
|
(32,689
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)
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(33,370
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)
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-2.0
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%
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|
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INCOME BEFORE INCOME TAXES
|
12,078
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|
32,443
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-62.8
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%
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INCOME TAX EXPENSE
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9,918
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|
12,292
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-19.3
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%
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NET INCOME
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2,160
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|
20,151
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-89.3
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%
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PER SHARE, BASIC
|
$ 0.06
|
|
|
$ 0.56
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|
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-89.3
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%
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PER SHARE, DILUTED
|
$ 0.06
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|
|
$ 0.55
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-89.1
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%
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Weighted Average Common Shares
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|
|
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Basic
|
34,483
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|
|
36,238
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-4.8
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%
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Diluted
|
34,483
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|
|
36,561
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-5.7
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%
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Unaudited Operating Highlights
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Operating Highlights
|
Three Months Ended March 31,
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2009
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2008
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Change
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Regional airline services revenues, excluding fuel (000)
|
289,596
|
|
|
277,768
|
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|
4.3
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%
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|
Operating expenses, plus interest and excluding fuel (000)
|
283,856
|
|
|
246,928
|
|
|
15.0
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%
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Passengers carried
|
4,433,809
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|
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4,441,737
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|
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-0.2
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%
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Revenue passenger miles (000)
|
2,257,102
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2,296,711
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-1.7
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%
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Available seat miles (000)
|
3,324,371
|
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|
3,240,323
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|
2.6
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%
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Passenger load factor
|
67.9
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%
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|
70.9
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%
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-3.0 pts
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|
|
|
|
|
|
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|
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Cost per available seat mile, including interest expense (cents)
|
9.50
|
|
|
10.14
|
|
|
-6.3
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%
|
|
Cost per available seat mile, including interest expense, but
excluding fuel expense and goodwill impairment charge (cents)
|
8.14
|
|
|
7.62
|
|
|
6.8
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%
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|
Operating aircraft at period end:
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|
|
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|
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|
|
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37-50 seat regional jets
|
91
|
|
|
118
|
|
|
-22.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
70+ seat regional jets
|
130
|
|
|
108
|
|
|
20.4
|
%
|
|
Block hours
|
178,435
|
|
|
188,824
|
|
|
-5.5
|
%
|
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Departures
|
104,692
|
|
|
105,005
|
|
|
-0.3
|
%
|
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Average daily utilization of each aircraft (hours)
|
9.7
|
|
|
10.2
|
|
|
-4.9
|
%
|
|
Average aircraft stage length (miles)
|
487
|
|
|
514
|
|
|
-5.3
|
%
|
Source: Republic Airways Holdings Inc.
Republic Airways Holdings
Timothy P. Dooley, 317-487-4308
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