Atlantic Coast Airlines reports profitable first quarter 1997 results.DULLES, Va.--(BUSINESS WIRE)--April 16, 1997-- Airline posts eighth consecutive profitable quarter First quarter highlights 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. Inc. (Nasdaq/NM: ACAI), the parent company of Atlantic Coast Airlines ("ACA ACA - Application Control Architecture ") which operates as United Express in the Eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Wednesday announced financial and operating results for the first quarter of 1997. ACA reported net income of $703,000, or 8 cents per fully diluted share in the first quarter, as compared to net income of $862,000, or 10 cents per fully diluted share for the first quarter of 1996. ACA's higher tax rate for this period, compared to 1996, impacted net income per share by 3 cents. Pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. during First Quarter 1997 increased 56% as compared to First Quarter 1996, after elimination of the 1996 restructuring credit of $263,000. This is the company's eighth consecutive quarter of profitability. ACA's net income for First Quarter 1997 reflects a provision for income taxes based on a 29% effective tax rate, as compared to a 4% effective tax rate in First Quarter 1996. The company believes that the estimated effective tax rate will approximate statutory rates beginning in the Second Quarter 1997. As of Dec. 31, 1996, ACA utilized its remaining net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. for income tax purposes. During First Quarter 1997, ACA generated 186,893,000 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. (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. ), an increase of 7.6% 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. (RPM) increased 0.7% to 73,241,000. The carrier's load factor during the first quarter was 39.2%, versus 41.9% in 1996. ACA carried 299,019 passengers, virtually unchanged from First Quarter 1996. Yield improved year over year by 8.3% to 55.3 cents. "We are particularly pleased that once last year's favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. adjustment is factored out, pretax income for this quarter increased 56%. While load factor dropped 2.7 points, this was offset by a 2.7 point improvement in breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations load factor," reported Paul Tate, ACA chief financial officer. "Although we have experienced a decline in our United Airlines connecting traffic, our local traffic and yield continue to be higher on a year over year comparison," Tate also noted. ACA's completion factor, which measures the percentage of scheduled flights scheduled flight schedule n → vol régulier scheduled flight schedule n → Linienflug m completed, improved during First Quarter 1997 to 95.7%, an increase of 7.4 points over last year's completion factor of 88.3%. The improvement primarily resulted from less severe winter weather in 1997, compared to last year's record snowstorms in Washington, D.C. and the Northeast. "The First Quarter results positively reflect ACA's continued focus on serving the business traveler," said ACA President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Kerry Skeen. "This marks the eighth consecutive quarter in which ACA has paid its employees performance incentives, which are directly tied to product quality, including on-time performance, flight completion factor and baggage handling," he added. ACA also noted other developments during First Quarter 1997: - in January, ACA announced its decision to purchase 12 Canadair Regional Jet Series 200 ER aircraft from Bombardier Inc. with an option to purchase 36 more. Deliveries are scheduled to begin as early as July with revenue passenger service expected to begin in the Fall. ACA expects the jet acquisitions to open up new markets and provide passengers with added amenities. - in February, ACA entered into an agreement with Aero International (Regional) to acquire 12 new Jetstream 41 aircraft. ACA took delivery of the first aircraft in March, and will receive four additional aircraft in 1997. - in March, ACA announced that it will begin new seasonal nonstop HP's brand name for its fault-tolerant servers, which range in size from four CPUs to 4,000 CPUs. The NonStop line was created by Tandem Computers, which was acquired by Compaq, which later became part of HP. , roundtrip service between Washington-Dulles International and both Nantucket Memorial Airport Nantucket Memorial Airport (IATA: ACK, ICAO: KACK, FAA LID: ACK) is a public airport on the south side of the island of Nantucket in the U.S. state of Massachusetts. and Martha's Vineyard Airport Martha's Vineyard Airport (IATA: MVY, ICAO: KMVY, FAA LID: MVY) is a public airport located in the middle of the island of Martha's Vineyard, three miles (5 km) south of the central business district of Vineyard Haven, in Dukes County, Massachusetts, starting in May 1997. The company also announced the initiation of Boston to Baltimore nonstop service beginning June 2, 1997. Atlantic Coast Airlines operates its hub at Washington-Dulles International Airport, where it offers nearly 200 departures every business day as United Express. From Washington-Dulles, ACA currently serves 38 cities in 17 states with nonstop service. Its route system spans the East Coast from Maine to South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. and as far west as Michigan. The average age of ACA's fleet is less than five years. -0-
First Quarter Financial Results (unaudited)
($000's)
1997 1996 % Change
---- ---- --------
Passenger Revenue $40,500 $37,130 9.1%
Other Revenue 614 726
Total Operating Revenues 41,114 37,856 8.6%
Operating Expenses Before Restructuring 40,077 37,001
Restructuring Reversals -- (263)
Total Operating Expenses 40,077 36,738 9.1%
Net Operating Income 1,037 1,118
Non-Operating Expenses 49 220
Income Before Taxes 988 898 10.0%
Income Taxes 285 36
Net Income $703 $862 -18.5%
Income Per Common and
Common Equivalent Share $0.08 $0.10
Weighted Average Number of Common
and Common Equivalent Shares (000's) 9,049 8,994
First Quarter Operating Results
1997 1996 % Change
---- ---- --------
Fuel Cost Per Gallon $.850 $.776 9.5%
Revenue Passenger Miles (000's) 73,241 72,752 0.7%
Available Seat Miles (000's) 186,893 173,755 7.6%
Load Factor 39.2% 41.9% -2.7pts.
Passengers 299,019 299,574 -0.2%
Yield per RPM (cents) 55.3 51.0 8.4%
Passenger Revenue per ASM (cents) 21.7 21.4 1.4%
Operating Cost per ASM(a) (cents) 21.4 21.3 0.5%
Break-even Load Factor(a) 38.2 40.9 -2.7pts.
Average Passenger Trip Length 245 243 0.8%
(a) Before restructuring credit
CONTACT: Atlantic Coast Airlines Angie Shermer, 703/925-6011 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion