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World Air Holdings reports North American Airlines 2004 results.


World Air Holdings Inc (Nasdaq: WLDAE), the parent company of World Airways and North American Airlines, has filed a Form 8-K/A with re-audited 2004 financial results for North American, which was acquired on 27 April 2005.

The company reported that the total revenues for 2004 were USD212.9m compared to the estimate of USD213.4m, with military revenues for 2004 of USD92.0m versus the USD88.9m previously stated. The difference is due primarily to adjustments for end-of-period cutoffs, the timing of credits due to customers, and billing errors.

It was also reported that the operating income for 2004 was approximately USD770,000, compared to the USD500,000 estimate provided previously. The higher-than-estimated operating income was the result of several positive factors: reimbursement of qualifying heavy maintenance reserves paid to lessors, recognition of insurance proceeds for aircraft damage, reversal of a write-off of funds embargoed by the civil courts in the Dominican Republic and depreciation adjusted to a straight-line basis. Those factors were partially offset by increases in expenses resulting from properly accounting for aircraft lease costs on a straight-line basis and recognising federal excise tax penalties due to late filings or non-filing of excise tax returns.

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Publication:Airline Industry Information
Article Type:Brief Article
Geographic Code:1USA
Date:Oct 21, 2005
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