Amtran Reports Third Quarter Results.Business Editors & Travel Writers INDIANAPOLIS--(BUSINESS WIRE)--Nov. 13, 2001 Amtran, Inc. (Nasdaq/NNM: "AMTR AMTR Australian Music Teachers Register AMTR Annual Media and Technology Report AMTR Anterior Medial Temporal Resection AMTR Atlantic Missile Test Range "), parent company of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Trans Air, Inc. (ATA (1) (AT Attachment) The specification for IDE drives. See IDE. (2) See analog telephone adapter. ATA - Advanced Technology Attachment ), today reported its results for the three and nine months ended September September: see month. 30, 2001. Third Quarter Financial Results: Total operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the third quarter of 2001 were $321.5 million, a 7.4% decrease compared with the same quarter in 2000. Scheduled service revenues increased 1.0% to $208.5 million. Charter service revenues decreased 21.3% to $93.6 million. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased 4.7% to $317.0 million. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $4.5 million, compared with $14.7 million in the third quarter of 2000. The Company had net income available to common shareholders of $0.01 million, or $0.00 per share (basic) and, due to the impact of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". dividends, $0.03 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), in the third quarter of 2001, including the unusual items described in detail later in this release. In comparison, the Company had net income available to common shareholders of $2.98 million, or $0.25 per share (basic) and $0.23 per share (diluted) in the third quarter of 2000. Third Quarter Operating Results: System-wide revenue passenger miles Revenue passenger miles (RPMs) is a measure of a passenger traffic for an airline flight, bus, or train calculated by multiplying the total number of revenue-paying passengers aboard the vehicle by the distance traveled measured in miles. (RPMs) decreased 3.5% to 3.26 billion, and available seat miles Available seat miles (ASM) is a measure of an airline flight's passenger carrying capacity. It is equal to the number of seats available multiplied by the number of miles flown. This measures an airlines capacity for transporting passengers. (ASMs) decreased 5.4% to 4.27 billion. For Amtran, total revenue per available seat mile (RASM RASM Revenue per Available Seat Mile RASM Reliability, Availability, Scalability and Manageability (Red Hat, Inc.) RASM Rear Admiral Submarines (UK) RASM Recorded Announcement Systems Manager ) was 7.52 cents in the third quarter of 2001, down 2.2% compared with 2000. Cost per available seat mile (CASM CASM Cost per Available Seat Mile CASM Communities and Small-scale Mining CASM Canadian Academy of Sports Medicine CASM Certificate of Advanced Study in Mathematics (Univeristy of Cambridge, UK) CASM Coherent Adaptive Subcarrier Modulation ) was 7.42 cents, an increase of 0.7%. For ATA's scheduled service, RPMs increased 11.0% to 2.33 billion, ASMs increased 10.7% to 2.98 billion, and passenger load factor increased 0.2 points to 78.1%. Scheduled service yield declined 9.0% to 8.95 cents and RASM decreased 8.7% to 6.99 cents. For ATA's charter service, ASMs decreased 27.7% to 1.29 billion; and block hours In aviation, block hours is the time between an aircraft leaving from the departure gate and ariving at the destination gate. flown decreased 27.2% to 10,623. Charter RASM increased 8.8% to 7.26 cents. ATA flew no subservice block hours in the third quarter of 2001, compared with 411 block hours in 2000. President's Comments: "The tragic events of September 11th had a profound effect on all of us," said John Tague Tague can refer to: Places
v. To moderate in force or intensity. mit  i·ga tion n. the
financial impact on our airline. Those steps included: the furloughing
of 1,100 employees from all areas of the Company, voluntary leaves of
absence and reduced work weeks for 300 employees, an immediate pay cut
by senior management, a one-year adj. 1. completing its life cycle within a year.Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants across-the-board pay freeze See abend. freeze - To lock an evolving software distribution or document against changes so it can be released with some hope of stability. Carries the strong implication that the item in question will "unfreeze" at some future date. for non-contract employees, closing of crew bases, voluntary concessions from ALPA ALPA abbr. Air Line Pilots Association , benefits reduction for all employees, the earlier retirement of older 727 aircraft, a 20% reduction in planned capacity, frequency reductions in select markets, and revised aircraft deliveries. We are confident that as a result of our immediate actions, combined with a strong and resilient See resiliency. group of employees, we will quickly return ATA to its pattern of stable growth." Recent Results: Amtran has seen bookings return to the same levels as last year and load factors return to nearly normal in the past couple of weeks. While yields remain weak, scheduled service load factors remained stable in October October: see month. and ATA's 8.9% decrease in system-wide unit revenue for the month compared with last year was, the Company believes, one of the smallest declines among the major U.S. carriers. The following table describes the results of bookings and load factors after the 11th of September. This table shows the scheduled service changes in 2001 as compared with the same period in 2000:
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September October November
Period Ending (post terrorist
attacks) (full month) (month-to-date)
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Net Bookings vs. 2000 -70% -17% +4%
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Scheduled Service -15.1 points +0.2 points -1.0 points
Load Factors vs. 2000
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Fuel costs, while high by historic standards, are lower than they have been in nearly two years. The Company's unit fuel costs declined 9% in the third quarter compared with the same period last year and the new Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. 737-800s achieved an even better level of fuel efficiency than anticipated. Fleet Plan With assistance from Boeing, ATA has revised its new aircraft delivery schedule. This year, to date, it has received 11 of its new 737-800s and five of its new 757-300s. ATA's scheduled service is now flown entirely by efficient two-engine, two-person cockpit This article is about the flight deck of an aircraft. For other uses, see Cockpit (disambiguation). A cockpit is the area usually nearer the front of a piloted aircraft from which a pilot controls the aircraft. aircraft. The Company currently expects to retire retire v. 1) to stop working at one's occupation. 2) to pay off a promissory note, and thus "retire" the loan. 3) for a jury to go into the jury room to decide on a verdict after all evidence, argument and jury instructions have been completed. its Boeing 727s The Boeing 727 is a mid-size, narrow-body, three-engine commercial jet airliner. It first took to the skies in 1963 and for over a decade was the most produced commercial jet airliner in the world. 1,831 727s were delivered. earlier than originally planned, with the exact schedule to be determined by the demand for these aircraft in its charter business. The following table outlines ATA's best estimate of the deliveries and retirements of its aircraft through the second quarter of 2002, by which time it will have the youngest fleet in the industry.
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Fleet Plan (Number of Nov. 13th Dec. 31, Mar. 31, June 30,
Aircraft at date) 2001 2002 2002
----------------------------------------------------------------------
Boeing 737-800s 11 14 18 24
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Boeing 757-300s 5 5 7 8
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Boeing 757-200s 15 15 15 15
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Lockheed L1011-500s 5 5 5 5
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Lockheed L1011-50s 10 Not Not Not
determined determined determined
----------------------------------------------------------------------
Boeing 727-200s 8 Not Not Not
determined determined determined
----------------------------------------------------------------------
Unusual Items: Prior to September 11th, Amtran was expecting to record several unusual items in 2001 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the anticipated privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned of the Company as well as for the retirement of older aircraft. As a result of the events that transpired on September 11th and the subsequent signing of the Air Transportation Safety and System Stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders Act, there were a number of additional unusual items that the Company has recorded. The following table outlines the impact of all of those unusual items:
(in millions)
----------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, 2001 September 30, 2001
----------------------------------------------------------------------
Income (loss) before
unusual items and
before taxes ($15.2) ($8.0)
----------------------------------------------------------------------
Impairment loss on
727 fleet (35.2) (35.2)
----------------------------------------------------------------------
Special charges:
727 lease exit cost ($4.3) ($4.3)
Privatization costs (2.7) (2.7)
Handling, positioning,
ferrying costs
associated with the
diversion of aircraft (2.4) (2.4)
Total special charges (9.4) ( 9.4)
----------------------------------------------------------------------
L1011 retirement
write-offs (2.4) (6.6)
----------------------------------------------------------------------
U.S. government grant 62.6 62.6
----------------------------------------------------------------------
Income (loss) after
unusual items,
before taxes $0.4 $3.4
----------------------------------------------------------------------
Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Financial Results: For the first nine months of 2001, total operating revenues increased 2.6% to $1.03 billion. Scheduled service revenues increased 14.8% to $656.0 million and charter service revenues decreased 16.4% to $292.6 million. Total operating expenses increased 4.4% to $1.01 billion. Operating income was $18.8 million for the nine months, compared with an operating income of $35.9 million in 2000. The Company had a net loss available to common shareholders of $.5 million, or $0.05 per share (basic and diluted), compared with a net income available to common shareholders of $6.9 million, or $0.57 per share (basic) and $0.54 per share (diluted) in the prior year. Year-to-Date Operating Results: System-wide revenue passenger miles (RPMs) increased 0.3% to 9.29 billion, and available seat miles (ASMs) increased 0.1% to 12.58 billion for the first nine months of 2001. For Amtran, total revenue per available seat mile (RASM) grew 2.5% to 8.17 cents. Cost per available seat mile (CASM) was 8.02 cents, an increase of 4.4%. For ATA's scheduled service, RPMs increased 15.2% to 6.79 billion, ASMs increased 16.8% to 8.76 billion, and passenger load factor decreased 1.0 point to 77.6%. Scheduled service yield declined 0.3% to 9.66 cents and RASM decreased 1.7% to 7.49 cents. For ATA's charter service, ASMs decreased 24.1% to 3.82 billion; and block hours flown decreased 23.5% to 33,143. Charter RASM increased 10.2% to 7.66 cents. ATA flew 57 subservice block hours in the first nine months of 2001, a decrease of 88.2%. Amtran will conduct a conference call to discuss its quarterly results today at 2:30 p.m. Eastern Time. A live broadcast of their conference call will be available via the Company's website at www.ata.com. Caution Concerning Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : This communication contains certain "forward-looking statements". These statements are based on Amtran management's current expectations and are naturally subject to uncertainty and changes in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Actual results may vary materially from the expectations contained herein. More detailed information about those factors is set forth in filings made by Amtran with the SEC. Except to the extent required under the federal securities laws, Amtran is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. Amtran's common stock trades on the NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under symbol "AMTR". ATA, now in its 28th year of operation, is the nation's 10th largest passenger carrier based A transmission system that generates a fixed frequency (carrier) to contain the data being transmitted. See carrier. on revenue passenger miles and operates significant scheduled service from Chicago-Midway and Indianapolis Indianapolis (ĭn'dēənă`pəlĭs), city (1990 pop. 731,327), state capital and seat of Marion co., central Ind., on the White River; selected 1820 as the site of the state capital (which was moved there in 1825), inc. 1847. and has a fleet of 54 aircraft, including 11 Boeing 737-800s, 5 Boeing 757-300s, 15 Boeing 757-200s, 8 Boeing 727s, and 15 Lockheed L-1011s The Lockheed L-1011 TriStar, commonly referred to as just L-1011 (pronounced "ell-ten-eleven"), was the third widebody passenger jet airliner to enter operation, following the Boeing 747 and the McDonnell Douglas DC-10. . Chicago Express Chicago Express Airlines, Inc. (IATA: C8, ICAO: WDY, and Callsign: Windy City) was a regional airline formerly based at Chicago Midway International Airport located in Chicago, Illinois. It operated regional feeder services under the name ATA Connection. Airlines, Inc., the Company's wholly-owned commuter airline, operates 11 Saab 340Bs. The entire fleet is supported by the Company's own maintenance and engineering facilities in Indianapolis and Chicago-Midway and maintenance support stations worldwide. You can learn more about ATA by visiting its website at www.ata.com.
AMTRAN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Dollars in thousands, except per share amounts
Three Months Ended
September 30,
2001 2000
(Unaudited) (Unaudited) Change
--------------------------------------------
Operating revenues:
Scheduled service $208,490 $206,469 1.0%
Charter service
Commercial charter 53,329 65,462 -18.5%
Military charter 40,300 53,575 -24.8%
--------------------------------------------
Total charter service 93,629 119,037 -21.3%
Other 19,350 21,795 -11.2%
--------------------------------------------
Total operating revenues 321,469 347,301 -7.4%
Operating expenses:
Salaries, wages and
benefits 84,956 76,540 11.0%
Fuel and oil 67,908 78,022 -13.0%
Depreciation and
amortization 32,156 31,646 1.6%
Aircraft rentals 26,884 19,213 39.9%
Handling, landing and
navigation fees 21,640 25,000 -13.4%
Crew and other employee
travel 15,089 18,109 -16.7%
Aircraft maintenance,
materials and repairs 14,704 16,250 -9.5%
Passenger service 12,614 12,968 -2.7%
Ground package cost 6,381 8,323 -23.3%
Special charges 9,367 -- nm
Impairment loss 35,185 -- nm
U.S. government grant (62,597) -- nm
Other 52,730 46,539 13.3%
--------------------------------------------
Total operating expenses 317,017 332,610 -4.7%
--------------------------------------------
Operating income 4,452 14,691 -69.7%
Other income (expense):
Interest income 1,157 2,269 -49.0%
Interest expense (7,036) (8,091) -13.0%
Other 1,831 225 713.8%
--------------------------------------------
Other income (expense) (4,048) (5,597) -27.7%
Income before income taxes
and preferred dividends 404 9,094 -95.6%
--------------------------------------------
Income tax expense 16 6,112 -99.7%
--------------------------------------------
Net income 388 2,982 -87.0%
--------------------------------------------
Preferred dividends 375 0 nm
--------------------------------------------
Net income available to
common shareholders $13 $2,982 -99.6%
Basic earnings per
common share:
Average shares
outstanding 11,509,333 12,121,233 -5.0%
Net income per share $0.00 $0.25 -100.0%
Diluted earnings per
common share:
Average shares
outstanding 14,430,390 12,747,685 13.2%
Net income per share $0.03 $0.23 -87.0%
Nine Months Ended
September 30,
2001 2000
(Unaudited) (Unaudited) Change
--------------------------------------------
Operating revenues:
Scheduled service $656,044 $571,342 14.8%
Charter service
Commercial charter 170,124 198,095 -14.1%
Military charter 122,479 151,722 -19.3%
--------------------------------------------
Total charter service 292,603 349,817 -16.4%
Other 79,202 81,042 -2.3%
--------------------------------------------
Total operating revenues 1,027,849 1,002,201 2.6%
Operating expenses:
Salaries, wages and
benefits 249,444 217,172 14.9%
Fuel and oil 205,918 204,704 0.6%
Depreciation and
amortization 101,400 93,999 7.9%
Aircraft rentals 68,279 52,075 31.1%
Handling, landing and
navigation fees 70,299 74,066 -5.1%
Crew and other
employee travel 46,695 50,799 -8.1%
Aircraft maintenance,
materials and repairs 50,064 53,225 -5.9%
Passenger service 35,725 36,390 -1.8%
Ground package cost 36,665 40,254 -8.9%
Special charges 9,367 -- nm
Impairment loss 35,185 -- nm
U.S. government grant (62,597) -- nm
Other 162,628 143,640 13.2%
--------------------------------------------
Total operating expenses 1,009,072 966,324 4.4%
--------------------------------------------
Operating income 18,777 35,877 -47.7%
Other income (expense):
Interest income 4,247 6,154 -31.0%
Interest expense (21,345) (23,733) -10.1%
Other 1,763 274 543.4%
--------------------------------------------
Other income (expense) (15,335) (17,305) -11.4%
Income before income taxes
and preferred dividends 3,442 18,572 -81.5%
--------------------------------------------
Income tax expense 907 11,675 -92.2%
--------------------------------------------
Net income 2,535 6,897 -63.2%
--------------------------------------------
Preferred dividends 3,083 -- nm
--------------------------------------------
Net income (loss) available
to common shareholders ($548) $6,897 -107.9%
Basic earnings per
common share:
Average shares
outstanding 11,439,167 12,105,645 -5.5%
Net income (loss)
per share ($0.05) $0.57 -108.8%
Diluted earnings per
common share:
Average shares
outstanding 11,439,167 12,846,162 -11.0%
Net income (loss)
per share ($0.05) $0.54 -109.3%
AMTRAN, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, December 31,
2001 2000
(Unaudited)
----------------------------------
Cash and cash equivalents 159,948 129,137
Total current assets 336,915 260,208
Property and equipment, net 732,999 662,046
Other assets 192,606 110,176
Total assets $ 1,262,520 $ 1,032,430
Current liabilities 305,668 271,076
Long-term debt 641,766 451,084
Other liabilities 110,713 105,616
Redeemable preferred stock 80,000 80,000
Shareholders' equity 124,373 124,654
Total liabilities and
shareholders' equity $ 1,262,520 $ 1,032,430
AMTRAN, INC. AND SUBSIDIARIES
OPERATING STATISTICS
Three Months Ended
September 30,
2001 2000 Change
-------------------------------------------------
Consolidated:
Revenue passenger
miles (000s) 3,260,453 3,378,224 -3.5%
Available seat
miles (000s) 4,272,432 4,515,766 -5.4%
Revenue passengers
carried 2,205,346 2,121,259 4.0%
Average passenger
trip length (miles) 1,478 1,593 -7.2%
Block hours flown 50,677 50,869 -0.4%
Operating revenue
per ASM (cents) 7.52 7.69 -2.2%
Operating cost
per ASM (cents) 7.42 7.37 0.7%
Gallons of fuel
consumed (thousands) 69,001 75,018 -8.0%
Commercial Charter Service:
Available seat miles (000s) 798,277 1,041,683 -23.4%
Block hours flown 6,792 9,370 -27.5%
Operating revenue
per ASM (cents) 6.68 6.28 6.4%
Military Charter Service
Available seat miles (000s) 491,359 741,779 -33.8%
Block hours flown 3,831 5,222 -26.6%
Operating revenue
per ASM (cents) 8.20 7.22 13.6%
Scheduled Service:
Revenue passenger
miles (000s) 2,329,618 2,098,925 11.0%
Available seat
miles (000s) 2,982,796 2,694,369 10.7%
Passenger load factor 78.1% 77.9% 0.2 pts
Revenue passengers
carried 1,836,029 1,640,198 11.9%
Average passenger
trip length (miles) 1,269 1,280 -0.9%
Block hours flown 40,054 35,866 11.7%
Operating revenue
per RPM (cents) 8.95 9.84 -9.0%
Operating revenue
per ASM (cents) 6.99 7.66 -8.7%
Sub-service:
Block hours flown 0 411 nm
Nine Months Ended
September 30,
2001 2000 Change
-------------------------------------------------
Consolidated:
Revenue passenger
miles (000s) 9,289,786 9,262,353 0.3%
Available seat
miles (000s) 12,583,425 12,575,623 0.1%
Revenue passengers
carried 6,808,919 6,122,416 11.2%
Average passenger
trip length (miles) 1,364 1,513 -9.8%
Block hours flown 151,743 144,694 4.9%
Operating revenue
per ASM (cents) 8.17 7.97 2.5%
Operating cost
per ASM (cents) 8.02 7.68 4.4%
Gallons of fuel
consumed (thousands) 207,141 210,818 -1.7%
Commercial Charter Service:
Available seat
miles (000s) 2,239,239 2,899,232 -22.8%
Block hours flown 21,387 27,375 -21.9%
Operating revenue
per ASM (cents) 7.60 6.83 11.3%
Military Charter Service
Available seat
miles (000s) 1,580,397 2,132,416 -25.9%
Block hours flown 11,756 15,935 -26.2%
Operating revenue
per ASM (cents) 7.75 7.12 8.8%
Scheduled Service:
Revenue passenger
miles (000s) 6,790,403 5,894,614 15.2%
Available seat
miles (000s) 8,755,434 7,498,817 16.8%
Passenger load factor 77.6% 78.6% -1.0 pts
Revenue passengers
carried 5,613,273 4,613,220 21.7%
Average passenger
trip length (miles) 1,210 1,278 -5.3%
Block hours flown 118,543 100,902 17.5%
Operating revenue
per RPM (cents) 9.66 9.69 -0.3%
Operating revenue
per ASM (cents) 7.49 7.62 -1.7%
Sub-service:
Block hours flown 57 482 -88.2%
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