Atlantic Coast Airlines Holdings, Inc. Reports Record Quarterly Net Income.DULLES Dul·les , Allen Welsh 1893-1969. American public official. Director of the CIA (1953-1961), he resigned after the failed invasion of the Bay of Pigs. Noun 1. , Va.--(BUSINESS WIRE)--Oct. 21, 1998-- Third Quarter Highlights and Year-over-Year Comparisons -- Net income increased 119% to $10.6 million vs. $4.8 million -- Earnings per share increased 88% to 49 cents vs. 26 cents -- Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved to 21.8% vs. 16.5% -- Unit costs decreased from 20.6 cents to 16.0 cents Atlantic Coast Airlines Atlantic Coast Airlines (IATA: DH, ICAO: BLR, and Callsign: Blue Ridge) was an airline based in the United States owned by Atlantic Coast Holdings, Inc.. It operated as United Express for United Airlines and Delta Connection for Delta Air Lines. Holdings Inc. (NASDAQ/NM: ACAI), the parent company of Atlantic Coast Airlines ("ACA ACA - Application Control Architecture "), the Dulles, Va.-based United Express carrier, Wednesday Wednesday: see week. announced financial and operating results for the third quarter of 1998. The Company's net income was $10.6 million, or 49 cents per 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. share in the third quarter, as compared to $4.8 million, or 26 cents per diluted share for the same period in 1997. "We commend com·mend tr.v. com·mend·ed, com·mend·ing, com·mends 1. To represent as worthy, qualified, or desirable; recommend. 2. To express approval of; praise. See Synonyms at praise. 3. our employees for the excellent contribution they made to our record quarterly performance," said Kerry Kerry, county (1991 pop. 121,894), 1,815 sq mi (4,701 sq km), SW Republic of Ireland. The county town is Tralee. Kerry consists of a series of mountainous peninsulas that extend into the Atlantic. Skeen Do you mean:
fast - acting or moving or capable of acting or moving quickly; "fast film"; "on the fast track in school"; "set a fast pace"; "a fast car" growth and record passenger traffic." Operating margin for the third quarter, on a year-over-year basis, improved to 21.8 percent compared to 16.5 percent. On a year-over-year basis, cost per ASM (1) (Association for Systems Management) An international membership organization based in Cleveland, Ohio. Founded in 1947 and disbanded in 1996, it sponsored conferences in all phases of administrative systems and management. decreased 22.3 percent to 16.0 cents, while passenger revenue per ASM decreased 17.2 percent to 20.2 cents. The decrease in passenger revenue per ASM in the third quarter of 1998 resulted from a 23.2 percent decrease in yield per revenue passenger mile 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. (RPM (1) (Revolutions Per Minute) With electric and electronics devices, RPM measures the rotational speed of the motor's spindle. Floppy disks rotate at 300 RPM, while hard disks rotate from 3,000 to 15,000 RPM. ), partially offset by a 4.1-point load factor improvement, compared to last year's third quarter. The reduction in yield per RPM can be principally attributed to a 23.9 percent year-over-year increase in average passenger stage length, the product of deploying the Company's regional jets in longer-haul markets. Unit costs were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. affected by a year-over-year 14.5 percent increase in average aircraft stage length to 271 miles, a 7 percent improvement in average aircraft utilization Average numbers of hours during each 24-hour period that an aircraft is actually in flight. to 9.2 hours per day, lower ownership costs for the Company's Jetstream
JetStream and Mobile JetStream are two brand names used by Telecom New Zealand to market its retail and resale ADSL-based fixed line and CDMA2000-based 3G wireless Internet 41 turboprop turboprop: see turbine. turboprop Hybrid engine that provides jet thrust and also drives a propeller. It is similar to the turbojet except that an added turbine, behind the combustion chamber, works through a shaft and speed-reducing gears to turn a fleet, a lower percentage of passenger-related fees and the reduced travel agency commission rate. Excluding fuel expense, operating costs operating costs npl → gastos mpl operacionales per ASM, on a year-over-year basis, decreased by 23.1 percent to 14.3 cents. "We are particularly pleased with the steady reduction of our unit costs excluding fuel expense," said Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Tate, ACA's senior vice president of finance and chief financial officer. "The principal components of this trend include a larger contribution to ASM production from our regional jets and improved overall aircraft utilization which can be attributed to the revamping of our Dulles schedule in June." During the third quarter of 1998, ACA generated 381,503,000 ASMs, an increase of 71.8 percent over the same period last year, while revenue passenger miles (RPMs) increased 85.0 percent to 221,746,000. The carrier's load factor during the third quarter was 58.1 percent vs. 54.0 percent in 1997. ACA carried 712,556 passengers, an increase of 49.4 percent over the same period last year. The break-even load factor increased by 0.2 load-factor points to 45.2 percent, compared to last year's third quarter. Net income for the first nine months of 1998 was $22.7 million, or $1.07 per diluted share, as compared to $11.4 million, or 64 cents per diluted share for the first nine months of 1997. The results for the nine months ended September 30, 1998, includes a non-recurring, non-operating, non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) of $1.4 million associated with an increase in the number of shares issued to holders of the Company's 7 percent Convertible Notes that were converted to common stock during the second quarter. Operating margin for the first nine months of 1998, on a year-over-year basis, improved to 19.0 percent, compared to 13.4 percent. On a year-over-year basis, cost per ASM decreased 18.2 percent to 17.1 cents, while passenger revenue per ASM decreased 12.6 percent to 20.8 cents. Unit costs were favorably affected by a year-over-year 13.4 percent increase in average aircraft stage length to 266 miles, a 7.2 percent improvement in average aircraft utilization to 8.9 hours per day, lower ownership costs for the Company's Jetstream 41 turboprop fleet and the reduced travel agency commission rate. Excluding fuel expenses, operating costs per ASM, on a year-over-year basis, decreased by 18.1 percent to 15.4 cents. For the nine months ended September 30, 1998, ACA generated 1,001,072,000 ASMs, an increase of 62.1 percent over the same period last year, while RPMs increased 89.2 percent to 564,661,000. The carrier's load factor during the nine-month period was 56.4 percent vs. 48.3 percent for the first nine months of 1997. ACA carried 1,823,766 passengers, an increase of 51.9 percent over the same period in 1997. Yield decreased 25.2 percent to 36.9 cents on a year-over-year comparison. As a result, the break-even load factor increased by 3.8 points to 45.5 percent. The Company noted several third-quarter developments: -- ACA exercised options for 10 additional Canadair Regional Jets. In-service in-service In-service training adjective Referring to any form of on-the-job training noun In-service training of an employee dates associated with the exercised options will begin in the first quarter of 2000, continuing through the second quarter of 2001. Upon delivery of all jets now on order, ACA will have 33 jets operating as United Express. The Company also has options for 27 additional aircraft. -- The airline began regional jet service between Chicago O'Hare International Airport and Charleston, W.V.; Springfield/Branson, Mo.; and Wilkes-Barre/Scranton, Pa. -- ACA flight attendants, represented by the Association of Flight Attendants, ratified rat·i·fy tr.v. rat·i·fied, rat·i·fy·ing, rat·i·fies To approve and give formal sanction to; confirm. See Synonyms at approve. the tentative tentative, adj not final or definite, such as an experimental or clinical finding that has not been validated. , four-year agreement reached on September 10, 1998. -- The airline announced that it will introduce regional jet service between Washington Dulles International Airport Washington Dulles International Airport (IATA: IAD, ICAO: KIAD, FAA LID: IAD) is a public airport located 25 miles (40 km) west of the central business district of Washington, D.C., in Loudoun County and Fairfax County, Virginia, United States. and Columbus, Ohio; Detroit, Mich.; and Hartford, Conn., beginning October 31. Statements in this press release regarding projections and expectations of future earnings, revenues and costs represent forward-looking information. A number of risks and uncertainties exist which could cause actual results to differ materially from these projected results. These factors are set forth under "Outlook" on page 26 of the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1997. Atlantic Coast Airlines offers more than 500 daily departures systemwide. From its major hub at Washington Dulles, the airline offers more than 235 daily departures, more than all other carriers combined. ACA serves 51 destinations in 22 states with a route system spanning from Maine Maine, ship Maine, U.S. battleship destroyed (Feb. 15, 1898) in Havana harbor by an explosion that killed 260 men. The incident helped precipitate the Spanish-American War (Apr., 1898). Commanded by Capt. Charles Sigsbee, the ship had been sent (Jan. to Florida, and as far West as Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. .
The airline operates a fleet of 72 aircraft, including 12 50-passenger Canadair Regional Jets, 32 29-passenger Jetstream 41 and 28 19-passenger Jetstream 32 turboprop aircraft. The average age of the ACA fleet is approximately five years. Atlantic Coast Airlines common stock is traded on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on National Market under the symbol ACAI. For more information about ACA and our United Express service, visit our website at www.atlanticcoast.com. -0-
Financial Results (unaudited)
3rd Quarter 3rd Quarter Percentage
1998 1997 Change
Passenger revenue $76,889,836 $54,159,433 42.0%
Other revenue 1,210,370 704,889 71.7%
----------- -----------
Total operating
revenues 78,100,206 54,864,322 42.4%
Total operating
expenses 61,045,111 45,809,627 33.3%
----------- -----------
Operating income 17,055,095 9,054,695 88.4%
Non-operating
income(expense) 338,778 (703,251) 148.2%
----------- -----------
Income before
taxes 17,393,873 8,351,444 108.3%
Income taxes 6,781,018 3,507,396 93.3%
----------- -----------
Net income $10,612,855 $ 4,844,048 119.1%
=========== ===========
Net income per
share - basic $0.55 $0.34
Net income per
share - diluted $0.49 $0.26
Weighted average
common shares
- basic 19,197,932 14,188,507
Weighted average
common and common
equivalent shares
- diluted 22,243,890 21,149,217
Operating Results
3rd Quarter 3rd Quarter Percentage
1998 1997 Change
Revenue passenger
miles (000's) 221,746 119,881 85.0%
Available seat
miles (000's) 381,503 222,018 71.8%
Load Factor 58.1% 54.0% 4.1 Pts.
Passengers 712,556 476,857 49.4%
Yield per
RPM (cents) 34.7 45.2 (23.2%)
Passenger revenue
per ASM (cents) 20.2 24.4 (17.2%)
Operating cost
per ASM (cents) 16.0 20.6 (22.3%)
Break-even load
factor 45.2% 45.0% 0.2 Pts.
Average passenger
trip length (miles) 311 251 23.9%
Financial Results (unaudited)
Year to Date Year to Date Percentage
1998 1997 Change
Passenger revenue $208,397,765 $147,208,800 41.6%
Other revenue 3,516,317 1,989,446 76.7%
------------ ------------
Total operating
revenues 211,914,082 149,198,246 42.0%
Total operating
expenses 171,625,806 129,138,618 32.9%
------------ ------------
Operating income 40,288,276 20,059,628 100.8%
Non-operating
income (expense) 188,458 (1,073,079) 117.6%
Debt conversion
expense (1,409,864) - n/a
------------ ------------
Income before
taxes 39,066,870 18,986,549 105.8%
Income taxes 16,379,595 7,555,086 116.8%
------------ ------------
Net income $22,687,275 $11,431,463 98.5%
============ ============
Net income per
share - basic $1.28 $0.71
Net income per
share - diluted $1.07 $0.64
Weighted average
common shares
- basic 17,736,717 16,070,418
Weighted average
common and common
equivalent shares
- diluted 22,143,276 18,825,215
Proforma net income and EPS without debt conversion expense recorded
in the second quarter of 1998:
Income before
taxes $40,476,734 $18,986,549
Income taxes 16,379,595 7,555,086
------------ ------------
Net income $24,097,139 $11,431,463
============ ============
Net income per
share - basic $1.36 $0.71
Net income per
share - diluted $1.13 $0.64
Operating Results
Year to Date Year to Date Percentage
1998 1997 Change
Revenue passenger
miles (000's) 564,661 298,494 89.2%
Available seat
miles (000's) 1,001,072 617,574 62.1%
Load Factor 56.4% 48.3% 8.1 Pts.
Passengers 1,823,766 1,200,616 51.9%
Yield per
RPM (cents) 36.9 49.3 (25.2%)
Passenger revenue
per ASM (cents) 20.8 23.8 (12.6%)
Operating cost
per ASM (cents) 17.1 20.9 (18.2%)
Break-even load
factor 45.5% 41.7% 3.8 Pts.
Average passenger
trip length (miles) 310 249 24.5%
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