EX-99.1 2 exhibit99_1.htm PRESS RELEASE OF REPUBLIC AIRWAYS HOLDINGS INC. exhibit99_1.htm
 

Exhibit 99.1
For Immediate release:
 
Contact: Warren R. Wilkinson
Republic Airways Holdings
Tel. (317) 484- 6042
                                                                                  
                                                                                       
                                                                                              


Republic Airways Holdings Announces Second Quarter 2007 Results
 

Indianapolis, Indiana, (July 30, 2007) – Republic Airways Holdings Inc. (NASDAQ/NM: RJET) today reported operating revenues of $320.3 million for the quarter ended June 30, 2007, a 12.7% increase, compared to $284.3 million for the same period last year.  The Company reported net income of $19.0 million for the quarter ended June 30, 2007, a 6.0% decrease from the $20.3 million reported in the prior year’s second quarter.  The Company also reported earnings per diluted share of $0.46, compared to $0.47 for the same period last year.  The primary items of significance affecting the second quarter of 2007 are outlined below.

Second Quarter Highlights
Excluding reimbursement for fuel expense, which is a pass-through cost to our partners, passenger revenues increased 20.8% for the second quarter of 2007.  This increase was primarily as a result of a 24.1% increase in available seat miles (ASMs) to 2.8 billion ASMs, up from 2.3 billion ASMs and a 21.4% increase in block hours.  These increases reflect the addition of 16 E170/175 regional jet aircraft placed into service since June 30, 2006 and 22 CRJ-200 regional jet aircraft placed into service during the first half of 2007.

Total operating expenses for the second quarter of 2007, including interest expense but excluding fuel charges (which are reimbursable by the Company’s partners), of $213.7 million, increased approximately 24.6% from $171.6 million for the same quarter of 2006.  Operating cost per ASM (CASM), including interest expense but excluding fuel, remained unchanged at 7.6¢.

During the quarter the Company took delivery of seven new 86-seat E175 regional jets which were placed into fixed-fee service for US Airways.   The Company entered into fixed rate debt financing arrangements for four of these aircraft and long-term operating leases for the other three.  The Company also took delivery of eight 50-seat CRJ-200 regional jet aircraft on short-term leases which were placed into service with Continental.  At June 30, 2007, the Company’s fleet consisted of 204 regional jets including 95 E145 family aircraft, 76 E170 aircraft, 11 E175 aircraft and 22 CRJ200 aircraft.

As of June 30, 2007, the Company had firm orders for 32 E170/175 aircraft which will be operated on behalf of US Airways and Frontier Airlines.  Fourteen of the aircraft will be placed into service during the remainder of 2007 and the other 18 will be placed into service during 2008.

Also during the quarter, the Company sold its $91 million pre-petition unsecured creditor claim against Delta Air Lines for approximately $45 million.

Balance Sheet Information
At June 30, 2007 the Company had $234.4 million in cash and cash equivalents compared to $195.5 million as of December 31, 2006.  The Company’s long-term debt increased to $1.59 billion as of June 30, 2007, compared to $1.48 billion at December 31, 2006. All of the Company’s long-term debt is at fixed interest rates, and is secured by the aircraft. The Company also has significant long-term operating lease obligations.  At a 7% discount factor, the present value of these lease obligations was approximately $800 million as of June 30, 2007.

Corporate Information
Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The airlines offer scheduled passenger service on approximately 1,100 flights daily to 116 cities in 38 states, Canada, Jamaica and the Bahamas through airline services agreements with six U.S. airlines. All of the airlines’ flights are operated under their airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, Frontier Airlines, United Express and US Airways Express. As of June 30, 2007, the airlines employed more than 4,300 aviation professionals and operated 204 regional jet aircraft.

The Company will conduct a telephone briefing to discuss its second quarter results tomorrow, July 31st, at 10:30 a.m. EDT. For those wishing to participate please call 866-831-6291 and for international calls please dial 617-213-8860; the password is 10721752.  A live Webcast of this briefing will also be available online at www.rjet.com - investor relations.

Additional Information
In addition to historical information, this release contains forward-looking statements.  Republic Airways may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements encompass Republic Airways’ beliefs, expectations, hopes or intentions regarding future events.  Words such as "expects," "intends," "believes," "anticipates," "should," "likely" and similar expressions identify forward-looking statements.  All forward-looking statements included in this release are made as of the date hereof and are based on information available to Republic Airways as of such date.  Republic Airways assumes no obligation to update any forward-looking statement.  Actual results may vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others, the risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference.
 
 
 
 
REPUBLIC AIRWAYS HOLDINGS, INC. AND SUBSIDIARIES
  
CONSOLIDATED STATEMENTS OF INCOME
  
(Dollars and Shares in Thousands, Except per Share Amounts)
  
(Unaudited)
  
                                     
                                     
Financial Highlights
  
Three Months Ended June 30,
    
Six Months Ended June 30,
  
   
2007
    
2006
    
Change
    
2007
    
2006
    
Change
  
OPERATING REVENUES
                                    
   Passenger
   $
316,485
     $
279,430
       13.3 %   $
600,887
     $
527,606
       13.9 %
   Other
    
3,828
      
4,883
       -21.6 %    
9,869
      
14,051
       -29.8 %
        Total operating revenues
    
320,313
      
284,313
       12.7 %    
610,756
      
541,657
       12.8 %
                                                 
OPERATING EXPENSES
                                                
   Wages and benefits
    
54,756
      
43,595
       25.6 %    
105,498
      
83,740
       26.0 %
   Aircraft fuel
    
78,184
      
82,137
       -4.8 %    
145,133
      
158,660
       -8.5 %
   Landing fees
    
13,184
      
10,492
       25.7 %    
25,236
      
19,086
       32.2 %
   Aircraft and engine rent
    
30,297
      
24,394
       24.2 %    
57,331
      
44,746
       28.1 %
   Maintenance and repair
    
32,480
      
24,522
       32.5 %    
59,486
      
46,903
       26.8 %
   Insurance and taxes
    
4,603
      
4,978
       -7.5 %    
8,649
      
9,270
       -6.7 %
   Depreciation and amortization
    
26,158
      
22,080
       18.5 %    
50,668
      
43,498
       16.5 %
   Other
    
26,105
      
19,555
       33.5 %    
49,380
      
35,277
       40.0 %
        Total operating expenses
    
265,767
      
231,753
       14.7 %    
501,381
      
441,180
       13.6 %
OPERATING INCOME
    
54,546
      
52,560
       3.8 %    
109,375
      
100,477
       8.9 %
                                                 
OTHER INCOME (EXPENSE)
                                                
   Interest expense
     (26,128 )     (21,961 )     19.0 %     (51,532 )     (43,830 )     17.6 %
   Other income
    
3,136
      
2,648
       18.4 %    
5,922
      
4,614
       28.3 %
        Total other income (expense)
     (22,992 )     (19,313 )     19.0 %     (45,610 )     (39,216 )     16.3 %
                                                 
INCOME BEFORE INCOME TAXES
    
31,554
      
33,247
       -5.1 %    
63,765
      
61,261
       4.1 %
                                                 
INCOME TAX EXPENSE
    
12,513
      
12,992
       -3.7 %    
25,444
      
24,106
       5.6 %
                                                 
NET INCOME
    
19,041
      
20,255
       -6.0 %    
38,321
      
37,155
       3.1 %
PER SHARE, BASIC
   $
0.46
     $
0.48
       -4.2 %   $
0.91
     $
0.89
       2.2 %
PER SHARE, DILUTED
   $
0.46
     $
0.47
       -2.1 %   $
0.89
     $
0.86
       3.5 %
Weighted Average Common Shares
                                                
   Basic
    
41,319
      
41,941
       -1.5 %    
41,969
      
41,889
       0.2 %
   Diluted
    
41,708
      
43,277
       -3.6 %    
43,034
      
43,149
       -0.3 %

 

Unaudited Operating Highlights
                                
 
  
 
                                
 
  
Operating Highlights
  
Three Months Ended June 30,
    
Six Months Ended June 30,
  
   
2007
    
2006
    
Change
    
2007
    
2006
    
Change
  
Passenger Revenues, excluding fuel (000)
    
238,301
      
197,293
       20.8 %    
455,754
      
368,946
       23.5 %
Passengers carried
    
4,134,981
      
3,328,129
       24.2 %    
7,385,277
      
5,883,377
       25.5 %
Revenue passenger miles (000)
    
2,193,603
      
1,735,977
       26.4 %    
3,904,301
      
3,110,267
       25.5 %
Available seat miles (000)
    
2,801,158
      
2,257,596
       24.1 %    
5,253,942
      
4,222,798
       24.4 %
Passenger load factor
     78.3 %     76.9 %  
1.4 pts
       74.3 %     73.7 %  
0.6 pts
  
Cost per available seat mile, including interest expense (cents)
    
10.42
      
11.24
       -7.3 %    
10.51
      
11.49
       -8.5 %
Fuel cost per available seat mile (cents)
    
2.79
      
3.64
       -23.4 %    
2.76
      
3.76
       -26.6 %
Cost per available seat mile, including interest and excluding fuel expense (cents)
    
7.63
      
7.60
       0.4 %    
7.75
      
7.73
       0.3 %
Operating Aircraft at period end:
                                                
37-50 seat regional jets
    
117
      
95
       23.2 %    
117
      
95
       23.2 %
70+ seat regional jets
    
87
      
71
       22.5 %    
87
      
71
       22.5 %
Block hours
    
165,878
      
136,620
       21.4 %    
315,618
      
258,252
       22.2 %
Departures
    
93,266
      
78,874
       18.2 %    
176,364
      
148,030
       19.1 %
Average daily utilization of each aircraft (hours)
    
10.3
      
10.3
       0.0 %    
10.3
      
10.2
       1.0 %
Average length of aircraft flight (miles)
    
522
      
516
       1.2 %    
521
      
520
       0.2 %