Republic Airways Holdings Reports Third Quarter 2012 Financial Results
Republic Airways Holdings Reports Third Quarter 2012 Financial Results
Reports Operating Margin of 8.3% on Frontier
Business Wire
INDIANAPOLIS -- October 31, 2012
Republic Airways Holdings Inc. (NASDAQ: RJET) today reported net income of
$25.8 million, or $0.51 per diluted share, for the quarter ended September 30,
2012. This compares to net income of $9.0 million, or $0.18 per diluted share,
for the same period last year. Operating revenues of $713.1 million, decreased
7.1%, compared to $767.9 million for last year’s third quarter, on a 5.7%
decrease in consolidated capacity.
“We continue to see improved financial performance on our Frontier Airlines
business segment, made possible through our restructuring efforts completed
last year and the continued network and fleet optimization,” said Republic
Airways Holdings Chairman, President and CEO Bryan Bedford. “We have been
engaged in a similar restructuring effort with our Chautauqua Airlines
subsidiary, our regional carrier which operates all of our smaller 44- and
50-passenger regional jets. Thus far, that effort has resulted in meaningful
financial improvements. We are extremely grateful to our many business
partners, who have supported our restructuring program; however, we still have
work to accomplish to fully stabilize this division of our business. We will
continue to work with all our remaining stakeholders to fully obtain the
financial improvements necessary to ensure the sustainability of Chautauqua,
which is vital to create long-term opportunities for our small regional jet
business at Republic.”
The Company reported the following key metrics for the third quarter and first
nine months of 2012:
Three months ended September Nine months ended September 30,
30,
(Unaudited) 2012 2011 % 2012 2011 %
Change Change
(in
millions,
except as
noted)
Consolidated
operating $ 713.1 $ 767.9 -7.1 % $ 2,138.8 $ 2,166.7 -1.3 %
revenues
Consolidated 6,472 6,863 -5.7 % 19,234 19,936 -3.5 %
ASMs
Consolidated
operating 10.3 % 6.4 % 3.9 pts 7.5 % 2.8 % 4.7 pts
margin
Consolidated $ 25.8 $ 9.0 186.7 % $ 38.7 $ (28.3 ) 236.7 %
net income
Diluted
Earnings per $ 0.51 $ 0.18 183.3 % $ 0.79 $ (0.59 ) 233.9 %
share
(dollars)
Consolidated $ 183.1 $ 166.6 9.9 % $ 490.2 $ 405.9 20.8 %
EBITDAR
Consolidated
EBITDAR 25.7 % 21.7 % 4.0 pts 22.9 % 18.7 % 4.2 pts
margin
Frontier
total 12.33 11.70 5.4 % 11.98 11.22 6.8 %
revenue per
ASM (cents)
Frontier
operating $ 31.1 $ 0.1 nm $ 26.4 $ (67.9 ) nm
income
(loss)
Frontier
operating 8.3 % 0.0 % 8.3 pts 2.4 % -6.8 % 9.2 pts
margin
Business Segment Presentation
As announced in the fourth quarter of 2011, the Company has adjusted its
presentation of business segments in 2012 and has revised the prior year’s
information to conform to the current period segment presentation. Reportable
segments now consist of Republic and Frontier. The Republic segment includes
all regional flying performed by sub-100-seat aircraft operating under either
fixed-fee or pro-rate agreements, subleasing activities, regional charter
operations as well as the cost of any unassigned regional aircraft. The
Frontier segment includes passenger service revenues and expenses for
operating Frontier’s Airbus fleet, as well as its charter and cargo
operations.
Republic Segment Summary
Republic revenues for the quarter decreased 14.9%, or $58.9 million, compared
to the prior year’s third quarter, due primarily to a decrease of $29.3
million in fuel reimbursement under its fixed-fee agreements. Effective July
1, 2012, Republic no longer records fuel expense and does not recognize
fuel-related pass-through revenue under any of its fixed-fee agreements. The
remaining revenue decrease is due to lower block hour production on Republic,
which decreased 3.7% from the prior year’s third quarter, due mainly to
50-seat aircraft that remained unassigned after being discontinued from
pro-rate operations in Milwaukee.
Income before taxes for Republic was $12.6 million for the quarter, compared
to a pre-tax income of $16.7 million for the third quarter of 2011. Pre-tax
results on Republic were negatively impacted by $2.9 million, or 0.08 cents
per ASM of other expenses comprised of a loss of $11.2 million associated with
the sale of five E190 aircraft which was partially offset by an $8.3 million
gain on the sale of slots.
Fuel costs for Republic were $25.4 million for the quarter, a decrease of
$53.7 million from the prior year’s third quarter, due mainly to the removal
of any fuel expense under fixed-fee agreements. The price per gallon decreased
4.2% from $3.35 to $3.21 year over year for the quarter. The Company has
removed more than 20 aircraft from pro-rate operations over the last twelve
months, which resulted in lower fuel consumption in the third quarter of 2012.
The majority of these aircraft have been placed into fixed-fee service or
subleased.
Cost per Available Seat Mile (“CASM”), including interest expense but
excluding fuel, increased 7.3% to 8.74¢ for the third quarter of 2012, from
8.15¢ for the same quarter of 2011. The increase is mainly due to expenses for
aircraft that were unassigned and not producing ASMs during the quarter, and
reduced seat count on our 58 US Airways E-jets, which have been reconfigured
with first class cabins and approximately 7% fewer seats.
As of September 30, 2012, Republic operated 63 aircraft with 44-50 seats and
131 aircraft with 69-80 seats to support its fixed-fee commercial agreements.
Additionally, Republic operated one aircraft with 50 seats and 17 aircraft
with 99 seats under pro-rate agreements with Frontier. Nine 37- to 76-seat
aircraft remained unassigned as of September 30, 2012.
Frontier Segment Summary
Total Frontier revenues increased 1.1% to $375.7 million for the quarter,
compared to $371.6 million for the same period in 2011. Capacity on Frontier,
as measured by ASMs, decreased 4.0% from the prior year’s third quarter. Load
factor for the third quarter was 91.6%, an increase of 0.8 points from the
third quarter of 2011. Total revenue per ASM (“TRASM”) was 12.33¢ for the
quarter, an increase of 5.4% from the same quarter in 2011.
For the quarter ended September 30, 2012, Frontier posted pre-tax income of
$29.8 million compared to a pre-tax loss of $1.5 million for the quarter ended
September 30, 2011. The significant improvement in Frontier’s financial
results was driven by solid unit revenue increases and lower unit costs as a
result of the network and financial restructuring completed in 2011.
The operating unit cost for Frontier, excluding fuel, was 6.86¢ for the
quarter, a 3.1% decrease compared to 7.08¢ for the same quarter in 2011.
Frontier’s unit cost for the third quarter of 2012 includes approximately
0.34¢ related to expenses associated with pro-rate operations between Republic
and Frontier.
Fuel costs for Frontier were $135.4 million for the quarter, a decrease of
$11.3 million from the prior year’s third quarter. The fuel cost per gallon,
including into-plane taxes and fees, decreased 3.2% to $3.31 for the third
quarter of 2012, compared to $3.42 for last year’s third quarter. The third
quarter results include a benefit on fuel hedges of $1.6 million, or $0.04 per
gallon, while the 2011 results include an expense of $5.0 million, or $0.12
per gallon. Frontier currently has approximately ten percent of its
anticipated Airbus fuel consumption hedged through March 31, 2013.
As of September 30, 2012, Frontier operated a total of 57 Airbus aircraft
versus 59 Airbus aircraft as of September 30, 2011. One A319 aircraft was
removed from operations during the quarter to prepare the aircraft for return
to the lessor during the fourth quarter.
Recent Business Developments
On July 25, 2012, the Company announced the sale of five E190 aircraft to US
Airways. Three of the aircraft will be delivered in the fourth quarter of
2012, and the remaining two aircraft are planned for delivery in the first
quarter of 2013.
On October 25, 2012, the Company announced it had entered into a multi-year
charter contract to operate five E190 aircraft on behalf of Caesars
Entertainment Operating Company. The aircraft are expected to go into charter
service in January 2013 and will be sourced through a reduction in E190
pro-rate operations between Republic and Frontier.
On October 26, 2012, the Company amended its contract with Delta Air Lines to
operate an additional seven 50-seat E145 aircraft under its existing capacity
purchase agreement for a one-year period. All seven aircraft are expected to
be in service before the end of 2012. The Company does not expect to have any
unassigned aircraft by the end of 2012.
On October 29, 2012, the Company finalized restructuring agreements with
several key stakeholders on its 50-seat regional jet program. The agreements,
combined with other business improvement initiatives, are expected to improve
the operating cash flow of the Company by approximately $45 million annually
over the next five years. However, the Company is still in negotiations with
several other critical stakeholders which are necessary to complete the
comprehensive restructuring effort for Chautauqua Airlines.
Balance Sheet and Liquidity
The Company’s total cash balance increased $46.6 million to $417.3 million as
of September 30, 2012, compared to December 31, 2011. Restricted cash
increased $38.7 million, to $190.1 million, from December 31, 2011. The
Company’s unrestricted cash balance increased $7.9 million, to $227.2 million,
from December 31, 2011. A condensed cash flow statement has been provided in
the tables section of this release.
The Company’s debt decreased to $2.20 billion as of September 30, 2012,
compared to $2.36 billion at December 31, 2011. As of September 30, 2012,
approximately 85% of the total debt is at a fixed interest rate. The Company
has significant long-term lease obligations for aircraft that are classified
as operating leases and are not reflected as liabilities on the Company’s
consolidated balance sheet. At a 6.0% discount factor, the present value of
these lease obligations was approximately $1.07 billion and $1.20 billion as
of September 30, 2012 and December 31, 2011, respectively. A condensed balance
sheet as of September 30, 2012 and December 31, 2011 has been provided in the
tables section of this release.
Corporate Information
Republic Airways Holdings, based in Indianapolis, Indiana, is an airline
holding company that owns Chautauqua Airlines, Frontier Airlines, Republic
Airlines and Shuttle America, collectively “the airlines.” The airlines
operate a combined fleet of more than 280 aircraft and offer scheduled
passenger service on nearly 1,500 flights daily to over 135 cities in the U.S.
as well as to the Bahamas, Canada, Costa Rica, Dominican Republic, Jamaica,
Mexico and the Turks and Caicos islands under branded operations at Frontier,
and through fixed-fee flights operated under airline partner brands, including
AmericanConnection, Continental Express, Delta Connection, United Express, and
US Airways Express. The airlines currently employ approximately 10,000
aviation professionals. For more information on Republic Airways, please visit
our website at www.rjet.com.
The Company will conduct a telephone briefing to discuss its third quarter
results tomorrow afternoon (Thursday, November 1) at 1:00 p.m. EST. This call
is being webcast by Thomson/Reuters and can be accessed at Republic Airways
Holdings’ website at www.rjet.com. Those wishing to participate can do so by
calling 866-783-2137. International callers can participate by calling
+1-857-350-1596; the password is 87562548.
Additional Information
In addition to historical information, this release contains forward-looking
statements. Republic Airways Holdings Inc. 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,” “may,” “will,”
“should,” “plan,” “estimate,” “predict,” “potential,” “continue,” or “likely”
and similar expressions as well as the negative of such expressions are used
to 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 could differ materially, from those anticipated, estimated,
projected or expected in these forward-looking statements for a number of
reasons, including, among others, the risk factors disclosed in the Company’s
most recent filing with the Securities and Exchange Commission.
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2012 2011 Change 2012 2011 Change
OPERATING
REVENUES
Fixed-fee $ 268.7 $ 277.1 -3.0 % $ 828.7 $ 808.9 2.4 %
service
Passenger 409.1 469.0 -12.8 % 1,190.4 1,291.7 -7.8 %
service
Charter and 35.3 21.8 61.9 % 119.7 66.1 81.1 %
other
Total
operating 713.1 767.9 -7.1 % 2,138.8 2,166.7 -1.3 %
revenues
OPERATING
EXPENSES
Wages and 142.6 141.5 0.8 % 420.5 425.9 -1.3 %
benefits
Aircraft 160.8 225.8 -28.8 % 543.7 633.4 -14.2 %
fuel
Landing fees
and airport 40.7 40.5 0.5 % 129.6 126.0 2.9 %
rents
Aircraft and 61.9 68.4 -9.5 % 186.1 193.8 -4.0 %
engine rent
Maintenance 80.4 80.5 -0.1 % 225.4 228.8 -1.5 %
and repair
Insurance 9.2 11.1 -17.1 % 30.7 32.4 -5.2 %
and taxes
Depreciation
and 47.7 49.3 -3.2 % 143.3 151.6 -5.5 %
amortization
Promotion 27.5 33.4 -17.7 % 86.7 105.7 -18.0 %
and sales
Other 68.8 68.5 0.4 % 212.0 208.6 1.6 %
Total
operating 639.6 719.0 -11.0 % 1,978.0 2,106.2 -6.1 %
expenses
OPERATING 73.5 48.9 50.3 % 160.8 60.5 165.8 %
INCOME
OTHER INCOME
(EXPENSE)
Interest (31.1 ) (33.8 ) 8.0 % (96.2 ) (104.2 ) 7.7 %
expense
Other - net - 0.1 -100.0 % 0.2 0.4 -50.0 %
Total other (31.1 ) (33.7 ) 7.7 % (96.0 ) (103.8 ) 7.5 %
expense
INCOME
(LOSS) 42.4 15.2 178.9 % 64.8 (43.3 ) 249.7 %
BEFORE
INCOME TAXES
INCOME TAX
EXPENSE 16.6 6.2 167.7 % 26.1 (15.0 ) 274.0 %
(BENEFIT)
NET INCOME $ 25.8 $ 9.0 186.7 % $ 38.7 $ (28.3 ) 236.7 %
(LOSS)
PER SHARE, $ 0.53 $ 0.19 178.9 % $ 0.80 $ (0.59 ) 235.6 %
BASIC
PER SHARE, $ 0.51 $ 0.18 183.3 % $ 0.79 $ (0.59 ) 233.9 %
DILUTED
Weighted
average
common
shares
Basic 48.5 48.2 0.6 % 48.5 48.3 0.4 %
Diluted 50.8 50.8 - 50.3 48.3 4.1 %
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share and per share amounts)
(Unaudited)
September 30, December 31,
2012 2011
ASSETS
Current Assets:
Cash and cash equivalents $ 227.2 $ 219.3
Restricted cash 190.1 151.4
Receivables, net of allowance for doubtful 96.6 89.0
accounts of $2.2 and $0.6, respectively
Inventories, net 96.5 101.8
Prepaid expenses and other current assets 47.1 64.2
Assets held for sale 1.0 33.0
Deferred income taxes 35.3 35.3
Total current assets 693.8 694.0
Aircraft and other equipment, net 2,708.0 2,808.7
Maintenance deposits 173.8 146.0
Other intangible assets, net 66.6 86.5
Other assets 180.6 166.5
Total assets $ 3,822.8 $ 3,901.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt $ 283.0 $ 284.6
Accounts payable 42.7 43.9
Air traffic liability 179.0 179.5
Deferred frequent flyer revenue 58.9 68.2
Accrued liabilities 278.9 258.8
Total current liabilities 842.5 835.0
Long-term debt, less current portion 1,919.4 2,074.5
Deferred frequent flyer revenue, less current 68.0 68.1
portion
Deferred credits and other non-current 111.9 110.4
liabilities
Deferred income taxes 379.3 353.2
Total liabilities 3,321.1 3,441.2
Commitments and Contingencies
Stockholders' Equity:
Preferred stock, $.001 par value; 5,000,000
shares authorized; no shares - -
issued or outstanding
Common stock, $.001 par value; one vote per
share; 150,000,000 shares
authorized; 58,505,699 and 58,097,574 shares - -
issued and 48,491,600 and
48,412,516 shares outstanding, respectively
Additional paid-in-capital 411.6 409.4
Treasury stock, 9,333,266 shares at cost (181.8 ) (181.8 )
Accumulated other comprehensive loss (3.7 ) (4.0 )
Accumulated earnings 275.6 236.9
Total stockholders' equity 501.7 460.5
Total liabilities and stockholders' equity $ 3,822.8 $ 3,901.7
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Nine months ended September 30,
2012 2011
NET CASH FROM OPERATING ACTIVITIES $ 182.8 $ 79.1
INVESTING ACTIVITIES:
Purchase of aircraft and other equipment (27.3 ) (21.7 )
Proceeds from sale of aircraft and other 23.3 77.1
assets
Aircraft deposits, net (8.0 ) (19.4 )
Other, net (4.4 ) (5.9 )
NET CASH FROM INVESTING ACTIVITIES $ (16.4 ) $ 30.1
FINANCING ACTIVITIES:
Payments on debt (158.3 ) (154.8 )
Proceeds from debt issuance - 13.8
Payments on early extinguishment of debt - (74.4 )
Other, net (0.2 ) (0.3 )
NET CASH FROM FINANCING ACTIVITIES $ (158.5 ) $ (215.7 )
NET DECREASE IN CASH AND CASH EQUIVALENTS $ 7.9 $ (106.5 )
CASH AND CASH EQUIVALENTS, Beginning of $ 219.3 $ 291.2
period
CASH AND CASH EQUIVALENTS, End of period $ 227.2 $ 184.7
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
CASH PAID FOR INTEREST AND INCOME TAXES
Interest paid $ 91.7 $ 95.4
Income taxes paid $ 0.3 $ 0.4
NON-CASH INVESTING AND FINANCING ACTIVITIES
Engines received and not yet paid $ - $ 5.0
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES
UNAUDITED OPERATING HIGHLIGHTS
Three Months Ended September 30,
Operating Highlights – 2012 2011 Change
Republic^1
Total revenues (millions) $ 337.4 $ 396.3 -14.9 %
Total fuel expense (millions)^2 $ 25.4 $ 79.1 -67.9 %
Operating aircraft at period
end:
37-50 seats^3 64 73 -12.3 %
69-99 seats^4 148 147 0.7 %
Block hours 178,251 185,167 -3.7 %
Departures 104,660 109,749 -4.6 %
Passengers carried 5,333,769 5,449,621 -2.1 %
Revenue passenger miles 2,691,022 2,812,197 -4.3 %
(thousands)
Available seat miles (thousands) 3,423,773 3,686,740 -7.1 %
Passenger load factor 78.6 % 76.3 % 2.3 pts
Total cost per available seat
mile, including interest expense 9.49 10.30 -7.9 %
(cents)
Cost per available seat mile,
including interest and excluding 8.74 8.15 7.2 %
fuel expense (cents)
Gallons consumed 7,923,584 23,581,416 -66.4 %
Average cost per gallon $ 3.21 $ 3.36 -4.5 %
Average daily utilization of 10.1 10.0 1.0 %
each scheduled aircraft (hours)
Average stage length 462 498 -7.2 %
Average seat density 67 68 -1.5 %
Operating Highlights –
Frontier^1
Total revenues (millions) $ 375.7 $ 371.6 1.1 %
Total fuel expense (millions) $ 135.4 $ 146.7 -7.7 %
Operating aircraft at period
end:
120 seats 3 4 -25.0 %
136-138 seats^6 38 41 -7.3 %
162-168 seats 16 14 14.3 %
Passengers carried 2,847,658 3,049,190 -6.6 %
Revenue passenger miles 2,791,051 2,882,634 -3.2 %
(thousands)
Available seat miles (thousands) 3,048,042 3,176,162 -4.0 %
Passenger load factor 91.6 % 90.8 % 0.8 pts
Total revenue per available seat 12.33 11.70 5.4 %
mile (cents)
Operating cost per available 11.31 11.70 -3.3 %
seat mile (cents)^5
Fuel cost per available seat 4.44 4.62 -3.9 %
mile (cents)^5
Cost per available seat mile, 6.86 7.08 -3.1 %
excluding fuel expense (cents)
Gallons consumed 40,915,327 42,941,699 -4.7 %
Average cost per gallon^5 $ 3.31 $ 3.42 -3.2 %
Block hours 53,950 58,279 -7.4 %
Departures 21,884 24,048 -9.0 %
Average daily utilization of 10.8 11.2 -3.6 %
each scheduled aircraft (hours)
Average stage length 967 940 2.9 %
Average seat density 144 141 2.1 %
^1 See business segment presentation discussion for information regarding our
change in segments.
^2 Includes $29.3 million for the three months ended September 30, 2011, which
is passed-through under our fixed-fee agreements with our partners.
^3 Excludes seven aircraft as of September 30, 2012 that
are unassigned.
^4 Excludes two aircraft as of September 30, 2012 and September 30,
2011 that are unassigned.
^5 Includes mark-to-market fuel hedge benefit of $1.6 million and expense of
$5.0 million for the three months ended September 30, 2012 and 2011,
respectively.
^6 Excludes one aircraft as of September 30, 2012 that is
unassigned.
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES
UNAUDITED OPERATING HIGHLIGHTS
Nine Months Ended September 30,
Operating Highlights – 2012 2011 Change
Republic^1
Total revenues (millions) $ 1,050.0 $ 1,174.7 -10.6 %
Total fuel expense (millions)^2 $ 139.6 $ 243.0 -42.6 %
Operating aircraft at period
end:
37-50 seats^3 64 73 -12.3 %
69-99 seats^4 148 147 0.7 %
Block hours 524,961 557,379 -5.8 %
Departures 306,396 327,226 -6.4 %
Passengers carried 14,949,272 15,861,037 -5.7 %
Revenue passenger miles 7,559,567 8,216,950 -8.0 %
(thousands)
Available seat miles (thousands) 10,143,323 11,090,589 -8.5 %
Passenger load factor 74.5 % 74.1 % 0.4 pts
Total cost per available seat
mile, including interest expense 9.93 10.32 -3.8 %
(cents)
Cost per available seat mile,
including interest and excluding 8.56 8.13 5.3 %
fuel expense (cents)
Gallons consumed 42,569,841 72,954,235 -41.6 %
Average cost per gallon $ 3.28 $ 3.33 -1.5 %
Average daily utilization of 10.0 10.0 0.0 %
each scheduled aircraft (hours)
Average stage length 465 501 -7.2 %
Average seat density 68 68 0.0 %
Operating Highlights –
Frontier^1
Total revenues (millions) $ 1,088.8 $ 992.0 9.8 %
Total fuel expense (millions) $ 404.1 $ 390.4 3.5 %
Operating aircraft at period
end:
120 seats 3 4 -25.0 %
136-138 seats^6 38 41 -7.3 %
162-168 seats 16 14 14.3 %
Passengers carried 8,104,148 7,852,132 3.2 %
Revenue passenger miles 8,074,557 7,682,907 5.1 %
(thousands)
Available seat miles (thousands) 9,090,183 8,845,118 2.8 %
Passenger load factor 88.8 % 86.9 % 1.9 pts
Total revenue per available seat 11.98 11.22 6.8 %
mile (cents)
Operating cost per available 11.69 11.98 -2.4 %
seat mile (cents)^5
Fuel cost per available seat 4.45 4.41 0.9 %
mile (cents)^5
Cost per available seat mile, 7.24 7.57 -4.4 %
excluding fuel expense (cents)
Gallons consumed 120,758,047 119,399,700 1.1 %
Average cost per gallon^5 $ 3.35 $ 3.27 2.4 %
Block hours 163,832 165,116 -0.8 %
Departures 64,741 65,836 -1.7 %
Average daily utilization of 11.1 11.4 -2.6 %
each scheduled aircraft (hours)
Average stage length 985 965 2.1 %
Average seat density 142 139 2.2 %
^1 See business segment presentation discussion for information regarding our
change in segments.
^2 Includes $48.2 million and $79.2 million for the nine months ended
September 30, 2012 and 2011, respectively, which is passed-through under our
fixed-fee agreements with our partners.
^3 Excludes seven aircraft as of September 30, 2012 that are
unassigned.
^4 Excludes two aircraft as of September 30, 2012 that are
unassigned.
^5 Includes mark-to-market fuel hedge expense of $1.8 million and benefit of
$0.2 million for the nine months ended September 30, 2012 and 2011,
respectively.
^6 Excludes one aircraft as of September 30, 2012 that is
unassigned.
The Company is providing disclosure of the reconciliation of reported non-GAAP
financial measures to its comparable GAAP basis financial measures. The
Company believes that the non-GAAP financial measures provide investors
meaningful measurements of the Company’s financial performance.
Non-GAAP Reconciliation of Net Income to EBITDAR
($ in Three months ended September Nine months ended September 30,
millions) 30,
2012 2011 % 2012 2011 %
Change Change
GAAP net $ 25.8 $ 9.0 186.7 % $ 38.7 $ (28.3 ) 236.7 %
income
Adjust:
Interest and
other 31.1 33.7 -7.7 % 96.0 103.8 -7.5 %
expense
Income tax 16.6 6.2 167.7 % 26.1 (15.0 ) 274.0 %
expense
Depreciation
and 47.7 49.3 -3.2 % 143.3 151.6 -5.5 %
amortization
Aircraft and 61.9 68.4 -9.5 % 186.1 193.8 -4.0 %
engine rents
EBITDAR $ 183.1 $ 166.6 9.9 % $ 490.2 $ 405.9 20.8 %
Total
Operating 713.1 767.9 -7.1 % 2,138.8 2,166.7 -1.3 %
Revenues
EBITDAR 183.1 166.6 9.9 % 490.2 405.9 20.8 %
EBITDAR 25.7 % 21.7 % 4.0 pts 22.9 % 18.7 % 4.2 pts
Margin
Contact:
Republic Airways Holdings
Margaret Miller, 317-246-2628
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