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)--July 22, 1998-- Second Quarter Highlights and Year-Over-Year Comparisons -- Net income increased 78.8% to $10.5 million (excluding a non-recurring charge) vs. $5.9 million -- Earnings per share of 49 cents (excluding a non-recurring charge) vs. 33 cents -- Record operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 22.9% vs. 18.7% -- Cost per available seat mile of 17.5 cents vs. 20.7 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 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 : NM ACAI), the parent company of Atlantic Coast Airlines ("ACA ACA - Application Control Architecture "), the Dulles-based United Express carrier, Wednesday Wednesday: see week. announced financial and operating results for the second quarter of 1998. The Company's net income, excluding a non-recurring charge, was $10.5 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 second quarter, as compared to $5.9 million, or 33 cents per diluted share for the same period in 1997. Including a non-recurring, non-operating, non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to earnings, the Company reports net income of $9.1 million or 42 cents per diluted share. As previously disclosed, the Company recorded a non-recurring charge of $1.4 million that was associated with an increase in the number of shares received by holders of the Company's 7 percent Convertible Notes that were converted to common stock during the quarter. Operating margin for the second quarter, on a year-over-year basis, improved to 22.9 percent compared to 18.7 percent. The margin improvement was principally due to unit costs (cost per available seat mile "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. ") decreasing at a faster rate than unit revenues (passenger revenue per ASM). On a year-over-year basis, cost per ASM decreased 15.5 percent to 17.5 cents, while passenger revenue per ASM decreased 11.1 percent to 22.4 cents. The decrease in passenger revenue per ASM in the second quarter of 1998 resulted from a 25.1 percent increase in average passenger stage length, attributable to the longer routes being flown by the Company's jets, partially offset by a 10.3-point load factor improvement, compared to last year's second quarter. 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 14.8 percent increase in average aircraft stage length to 269 miles, a year-over-year 12.3 percent reduction in price per gallon gallon: see English units of measurement. of fuel, 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 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 15.9 percent to 15.7 cents. "Although we are satisfied with our unit-cost reductions, both on a year-over-year and quarter-to-quarter basis, this accomplishment was adversely affected by frequent severe weather conditions throughout the route system in June June: see month. ," 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. "More than 900 flights were cancelled in June due to severe weather and associated air traffic control delays, which reduced both our 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. flown and passenger revenue earned." During the second quarter of 1998, ACA generated 334,588,000 ASMs, an increase of 60.3 percent over the same period last year, while 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) increased 93 percent to 203,319,000. The carrier's load factor during the second quarter was 60.8 percent vs. 50.5 percent in 1997. ACA carried 646,217 passengers, an increase of 52.1 percent over the same period last year. Yield decreased 26.3 percent to 36.8 cents on a year-over-year quarterly comparison. As a result, the break-even load factor increased by 5.8 points to 46.7 percent, compared to last year's second quarter. Net income for the first half of 1998 was $12.1 million, or 58 cents per diluted share, as compared to $6.6 million, or 37 cents per diluted share for the first half of 1997. The results for the six months ended June 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 half of 1998, on a year-over-year basis, improved to 17.4 percent, compared to 11.7 percent. On a year-over-year basis, cost per ASM decreased 15.6 percent to 17.8 cents, while passenger revenue per ASM decreased 9.8 percent to 21.2 cents. Unit costs were favorably affected by a year-over-year 12.8 percent increase in average aircraft stage length to 264 miles, a year-over-year 15.5 percent reduction in price per gallon of fuel, 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 14.8 percent to 16.1 cents. For the six months ended June 30, 1998, ACA generated 619,569,000 ASMs, an increase of 56.6 percent over the same period last year, while RPMs increased 92 percent to 342,915,000. The carrier's load factor during the six-month period was 55.3 percent vs. 45.2 percent for the first half of 1997. ACA carried 1,111,210 passengers, an increase of 53.5 percent over the same period in 1997. Yield decreased 26.3 percent to 38.4 cents on a year-over-year comparison. As a result, the break-even load factor increased by 5.8 points to 45.6 percent. "Our record earnings report is very encouraging given the adverse impact that weather and air traffic delays had on our operation in June," 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:
The Company noted several second quarter developments: -- United Express launched jet service to Charleston Charleston, cities, United States Charleston. 1 City (1990 pop. 20,398), seat of Coles co., E Ill.; inc. 1835. Charleston is an industrial, rail, and trade center located in an agricultural area; shoes are also made. Eastern Illinois Univ. and Greenville/Spartanburg, S.C.; Portland, Maine Portland is the largest city in the U.S. state of Maine, with a 2004 population of 63,882. Portland is Maine's cultural, social and economic capital. Tourists are drawn to Portland's historic Old Port district along Portland Harbor, which is at the mouth of the Fore River and part ; and Savannah Savannah, city, United States Savannah, city (1990 pop. 137,560), seat of Chatham co., SE Ga., a port of entry on the Savannah River near its mouth; inc. 1789. , Ga.; as well as turboprop service to Worcester Worcester, city, England Worcester (w  s`tər), city (1991 pop. 75,466) and district, Worcestershire, W central England, on the Severn River. , Mass.-- Holders of the Company's 7 percent Convertible Notes converted $31.7 million of the Notes into 3,582,338 shares of common stock. -- The Company increased the number of regional jet options from 25 to 37. The Company has 14 remaining firm orders for regional jets, with five additional scheduled for delivery in 1998 and nine in 1999. -- A 2-for-1 common stock split was declared, payable as a stock dividend on May 15, 1998. -- The Company's aircraft mechanics, represented by the Aircraft Mechanics Fraternal Association The Aircraft Mechanics Fraternal Association (AMFA) is an independent union that represents aircraft maintenance employees of commercial airlines in the United States. AMFA is committed to the principles of craft unionism, in that it seeks to represent only airline mechanics and , 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 airline's contract proposal for an initial four-year agreement. -- The Metropolitan Washington Airports Authority Metropolitan Washington Airports Authority is an independent airport authority, created by the United States Congress to oversee management, operations, and capital development of Washington, D.C. , in coordination with ACA, began construction of a 69,000-square foot regional passenger concourse at 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. . The facility is scheduled to open in 1999. -- The Company received approval from the U.S. Department of Transportation to begin jet service from Chicago O'Hare to Charleston, W.Va.; Springfield/Branson, Mo.; and Wilkes-Barre/Scranton, Pa., August 3, September 1 and October 1, 1998, respectively. 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 230 daily departures, more than all other carriers combined. ACA serves 48 destinations in 20 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 Indianapolis. The airline operates a fleet of 69 aircraft, including nine 50-passenger Canadair Regional Jets, 32 29-passenger Jetstream 41s 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 National Market under the symbol ACAI. For more information on ACA and our United Express service, visit our website at www.atlanticcoast.com. -0-
Financial Results
2nd Quarter 2nd Quarter Percentage
1998 1997 Change
Passenger revenue $ 74,815,326 $ 52,548,920 42.4%
Other revenue 943,781 670,718 40.7%
----------------------------
Total operating
revenues 75,759,107 53,219,638 42.4%
Total operating
expenses 58,400,683 43,251,797 35%
----------------------------
Operating income 17,358,424 9,967,841 74.1%
Non-operating
income (expense) 582,092 (320,654) 281.5%
Debt conversion
expense (1,409,864) -- N/A
----------------------------
Income before
taxes 16,530,652 9,647,187 71.4%
Income taxes 7,438,791 3,762,402 97.7%
----------------------------
Net income $ 9,091,861 $ 5,884,785 54.5%
============================
Net income per share - basic $0.48 $0.35
Net income per share - diluted $0.42 $0.33
Weighted average common shares
- basic 18,805,458 17,021,066
Weighted average common and
common equivalent
shares - diluted 22,245,804 17,675,327
Proforma net income and EPS without
debt conversion expense:
Income before taxes $ 17,940,516 $ 9,647,187
Income taxes 7,419,601 3,762,402
----------------------------
Net income $ 10,520,915 $ 5,884,785
============================
Net income per
share - basic $0.56 $0.35
Net income per
share diluted $0.49 $0.33
Operating Results
2nd Quarter 2nd Quarter Percentage
1998 1997 Change
Revenue passenger miles (000's) 203,319 105,372 93%
Available seat miles 334,588 208,663 60.3%
Load factor 60.8% 50.5% 10.3 Pts.
Passengers 646,217 424,740 52.1%
Yield per RPM (cents) 36.8 49.9 (26.3%)
Passenger revenue per ASM (cents) 22.4 25.2 (11.1%)
Operating cost per ASM (cents) 17.5 20.7 15.5%
Break-even load factor 46.7% 40.9% 5.8 Pts.
Average passenger trip length (miles) 315 248 27%
Financial Results
Year to Date Year to Date Percentage
1998 1997 Change
Passenger revenue $ 131,507,929 $ 93,049,367 41.3%
Other revenue 2,305,947 1,284,558 79.5%
----------------------------
Total operating
revenues 133,813,876 94,333,925 41.9%
Total operating expenses 110,580,695 83,328,992 32.7%
----------------------------
Operating income 23,233,181 11,004,933 111.1%
Non-operating
income (expense) (150,320) (369,828) 59.4%
Debt conversion
expense (1,409,864) -- N/A
-----------------------------
Income before taxes 21,672,997 10,635,105 103.8%
Income taxes 9,598,577 4,047,690 137.1%
-----------------------------
Net income $ 12,074,420 $ 6,587,415 83.3%
============================
Net income per share - basic $0.71 $0.39
Net income per share - diluted $0.58 $0.37
Weighted average common shares
- basic 16,994,000 17,011,736
Weighted average common and
common equivalent
shares - diluted 22,115,200 17,662,565
Proforma net income and EPS
without debt conversion expense:
Income before taxes $ 23,082,861 $ 10,635,105
Income taxes 9,579,387 3,047,690
----------------------------
Net income $ 13,503,474 $ 6,587,415
============================
Net income per share - basic $0.77 $0.39
Net income per share diluted $0.63 $0.37
Operating Results
Year to Date Year to Date Percentage
1998 1997 Change
Revenue passenger miles (000's) 342,915 178,613 92%
Available seat miles 619,569 395,556 56.6%
Load factor 55.3% 45.2% 10.1 Pts.
Passengers 1,111,210 723,759 53.5%
Yield per RPM (cents) 38.4 52.1 (26.3%)
Passenger revenue per ASM (cents) 21.2 23.5 (9.8%)
Operating cost per ASM (cents) 17.8 21.1 15.6%
Break-even load factor 45.6% 39.8% 5.8 Pts.
Average passenger trip length (miles) 309 247 25.1%
CONTACT: Atlantic Coast Airlines Jennifer Heronema, Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Manager 703/925-6019 |
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