Republic Airways Holdings Reports Improved First Quarter 2013 Results

  Republic Airways Holdings Reports Improved First Quarter 2013 Results

Business Wire

INDIANAPOLIS -- April 29, 2013

Republic Airways Holdings Inc. (NASDAQ: RJET) today reported first quarter
2013 net income of $0.3 million, or $0.01 per diluted share, compared to a net
loss of $7.1 million, or $0.15 per diluted share, in the first quarter 2012.

"I am pleased that during our seasonally most challenging quarter, we were
able to restore our consolidated results to profitability," said Bryan
Bedford, Chairman and CEO of Republic Airways Holdings. "This is the first
time in four years that we have produced positive earnings during the first
quarter and our results reflect the continued improvement in the business and
the substantial efforts of my coworkers and our senior leadership team."

Republic Segment Summary

Republic revenues decreased 8.6% from the first quarter of 2012 to $324.7
million in the first quarter of 2013. Republic passenger service revenue
decreased $52.2 million due to operating 12 fewer E190 aircraft under pro-rate
operations with Frontier Airlines. Five of the aircraft were moved into
fixed-fee charter service, five aircraft were sold over the last two quarters,
and two aircraft were returned to lessors. Fixed-fee service revenues
increased 9.4% to $304.0 million, despite the removal of fuel expense and the
related reimbursement on our United E170 fixed-fee agreement, which accounted
for $24.6 million of revenues in the prior year's first quarter. This
reduction was more than offset by revenue from the growth in our Q400
operations at United and our new E190 fixed-fee charter service agreement.

Fuel costs for Republic decreased $46.2 million to $13.6 million for the
quarter. The fuel cost per gallon, including into-plane taxes and fees,
increased to $3.86 per gallon in the first quarter of 2013, compared to $3.33
per gallon in the prior year's first quarter. The fuel cost per gallon related
to our fixed-fee charter agreement is generally higher than our pro-rate
operations and is treated as a pass through cost under the agreement.

Pre-tax income improved to $20.6 million, from $10.9 million in the prior
year's first quarter. The prior year's first quarter included $5.3 million of
expense for idled aircraft, and this year's first quarter includes the benefit
of our ERJ restructuring effort completed in late 2012.

As of March 31, 2013, Republic operated 70 aircraft with 44-50 seats and 152
aircraft with 69-99 seats to support its fixed-fee commercial agreements.
Under the pro-rate agreement with Frontier, Republic operated five 99-seat
E190 aircraft. Compared to March 31, 2012, this reflects a net increase of six
aircraft for the Republic segment. The Company has returned or subleased three
ERJ aircraft, placed 16 Q400 aircraft into service, sold five E190 aircraft,
and returned two E190 aircraft to the lessor over the past year.

Frontier Segment Summary

Frontier total revenues decreased 9.2% to $310.9 million for the quarter,
compared to $342.4 million for the same period in 2012. Capacity on Frontier,
as measured by available seat miles (ASMs), was down 12.6% from the prior
year's first quarter, as a result of four fewer Airbus aircraft in operation.
Load factor for the first quarter was 87.8%, an increase of 3.1 points from
the first quarter of 2012. Total revenue per ASM (TRASM) increased 3.9% to
11.86 cents in the first quarter 2013 from 11.41 cents in the first quarter
2012.

Fuel costs for Frontier were $118.0 million for the quarter, a decrease of
$13.9 million from the prior year's first quarter. The fuel cost per gallon,
including into-plane taxes and fees, increased to $3.41 per gallon in the
first quarter 2013, compared to $3.39 per gallon in the prior year's first
quarter. The first quarter 2013 result included a gain on fuel hedges of $0.4
million.

The operating unit cost for Frontier, excluding fuel, was 8.08 cents for the
first quarter 2013, a 5.2% increase compared to 7.68 cents for the same
quarter 2012.

For the quarter ended March 31, 2013, Frontier posted a pre-tax loss of $20.1
million compared to a pre-tax loss of $21.6 million for the quarter ended
March 31, 2012. Frontier recorded $5.9 million, or 0.23 cents per ASM and
$0.07 per diluted share, of aircraft return costs associated with the return
of five leased Airbus A318 and A319 aircraft during the first quarter of 2013.

As of March 31, 2013, Frontier operated 56 Airbus aircraft compared to 60
Airbus aircraft as of March 31, 2012. Frontier returned two A318 aircraft and
three A319 aircraft and took delivery of one leased A320 aircraft.

Recent Business Developments

On March 12, 2013, the Company received bankruptcy court approval of its
capacity purchase agreement (CPA), as amended, with American Airlines to
operate 47 ERJ aircraft in fixed-fee operations. The first aircraft is
expected to be delivered in July and is scheduled to enter service for
American on August 1, 2013. The Company anticipates taking delivery of 18 new
E175 aircraft in 2013.

Balance Sheet and Liquidity

The Company's total cash balance increased $34.2 million to $428.5 million as
of March 31, 2013, compared to December 31, 2012. Restricted cash increased
$35.8 million, to $182.9 million, from December 31, 2012. The Company's
unrestricted cash balance decreased $1.6 million, to $245.6 million, from
December 31, 2012. A condensed cash flow statement has been included in the
tables section of this release.

The Company's debt decreased to $2.0 billion as of March 31, 2013, compared to
$2.1 billion at December 31, 2012. As of March 31, 2013, almost 90% of the
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 $0.9 billion and $1.0 billion as of March 31, 2013 and December
31, 2012, respectively. A condensed consolidated balance sheet has been
provided in the tables section of this release.

Corporate Information

Republic Airways Holdings Inc., 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 145 cities in the U.S.
as well as to the Bahamas, Canada, Costa Rica, Dominican Republic, Jamaica,
Mexico and Turks and Caicos Islands under branded operations at Frontier, and
through fixed-fee flights operated under airline partner brands, including
AmericanConnection, 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 first quarter
2013 results tomorrow morning (Tuesday, April 30, 2013) at 10:00 a.m. EDT.
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 877-546-5020. International callers can participate by calling
+1-857-244-7552; the password is 89836443.

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 STATEMENT OF OPERATIONS

(In millions, except per share amounts)

(Unaudited)
                                     
                                          Three Months Ended March 31,
                                          2013       2012       Change
OPERATING REVENUES
Fixed-fee service                         $ 304.0     $ 278.0     9.4   %
Passenger service                         287.5       373.5       (23.0 )%
Charter and other                         44.1       46.1       (4.3  )%
Total operating revenues                  635.6       697.6       (8.9  )%
                                                                  
OPERATING EXPENSES
Wages and benefits                        146.7       138.8       5.7   %
Aircraft fuel                             131.6       191.7       (31.4 )%
Landing fees and airport rents            41.5        45.2        (8.2  )%
Aircraft and engine rent                  60.9        62.7        (2.9  )%
Maintenance and repair                    75.1        75.5        (0.5  )%
Insurance and taxes                       9.5         10.5        (9.5  )%
Depreciation and amortization             44.3        47.7        (7.1  )%
Promotion and sales                       21.7        29.8        (27.2 )%
Other                                     74.2       73.5       1.0   %
Total operating expenses                  605.5       675.4       (10.3 )%
OPERATING INCOME (LOSS)                   30.1        22.2        35.6  %
                                                                  
OTHER INCOME (EXPENSE)
Interest expense                          (29.7   )   (32.9   )   9.7   %
Other - net                               0.1        —          —     %
Total other expense                       (29.6   )   (32.9   )   10.0  %
                                                                  
INCOME (LOSS) BEFORE INCOME TAXES         0.5         (10.7   )   104.7 %
                                                                  
INCOME TAX EXPENSE (BENEFIT)              0.2        (3.6    )   105.6 %
                                                                  
NET INCOME (LOSS)                         $ 0.3      $ (7.1  )   104.2 %
PER SHARE, BASIC                          $ 0.01     $ (0.15 )   106.7 %
PER SHARE, DILUTED                        $ 0.01     $ (0.15 )   106.7 %
Weighted average common shares
Basic                                     48.7        48.4        0.6   %
Diluted                                   49.3        48.4        1.9   %
                                                                        



REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except per share amounts)

(Unaudited)
                                                            
                                                    March 31,     December 31,
                                                    2013          2012
ASSETS
Current Assets:
Cash and cash equivalents                           $ 245.6       $  247.2
Restricted cash                                     182.9         147.1
Receivables, net of allowance for doubtful          77.0          79.5
accounts of $3.1 and $2.9, respectively
Inventories                                         83.5          86.5
Prepaid expenses and other current assets           42.7          44.4
Deferred income taxes                               63.4         31.3       
Total current assets                                695.1         636.0
Aircraft and other equipment, net                   2,458.1       2,546.7
Maintenance deposits                                181.4         170.0
Other intangible assets, net                        63.3          65.0
Other assets                                        307.4        237.5      
Total assets                                        $ 3,705.3    $  3,655.2 
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt                   $ 275.5       $  276.2
Accounts payable                                    47.2          29.8
Air traffic liability                               163.3         146.6
Deferred frequent flyer revenue                     54.3          54.8
Accrued liabilities                                 262.9        238.8      
Total current liabilities                           803.2         746.2
Long-term debt, less current portion                1,761.6       1,843.3
Deferred frequent flyer revenue, less               57.7          57.8
current portion
Deferred credits and other non-current              149.0         109.8
liabilities
Deferred income taxes                               416.9        384.6      
Total liabilities                                   3,188.4       3,141.7
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;
59,105,365 and 58,529,449 shares issued and         —             —
49,098,395 and 48,558,312 shares
outstanding, respectively
Additional paid-in-capital                          415.2         412.1
Treasury stock, 9,333,266 shares at cost            (181.8    )   (181.8     )
Accumulated other comprehensive loss                (5.0      )   (5.0       )
Accumulated earnings                                288.5        288.2      
Total stockholders' equity                          516.9        513.5      
Total liabilities and stockholders' equity          $ 3,705.3    $  3,655.2 
                                                                             



REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)
                                             
                                                  Three Months Ended March 31,
                                                  2013           2012
                                                                  
NET CASH FROM OPERATING ACTIVITIES                $  47.7        $  24.6   
INVESTING ACTIVITIES:
Purchase of aircraft and other equipment          (7.0      )     (12.0     )
Proceeds from sale of aircraft, slots and         39.9            0.4
other assets
Other, net                                        (2.3      )     (3.5      )
NET CASH FROM INVESTING ACTIVITIES                30.6           (15.1     )
FINANCING ACTIVITIES:
Payments on debt                                  (48.3     )     (51.1     )
Proceeds from debt issuance                       1.2             —
Payments on early extinguishment of debt          (34.6     )     —
Proceeds from exercise of stock options           2.3             —
Other, net                                        (0.5      )     (0.2      )
NET CASH FROM FINANCING ACTIVITIES                (79.9     )     (51.3     )
NET DECREASE IN CASH AND CASH EQUIVALENTS         (1.6      )     (41.8     )
CASH AND CASH EQUIVALENTS, Beginning of           247.2          219.3     
period
CASH AND CASH EQUIVALENTS, End of period          $  245.6       $  177.5  
                                                                            



REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

UNAUDITED OPERATING HIGHLIGHTS
                                  
                                       Three Months Ended March 31,
Operating Highlights –                 2013         2012          Change
Republic
Fixed-fee service                      $  304.0      $   278.0      9.4    %
Passenger service                      15.2          67.4           (77.4  )%
Charter and other                      5.5          9.8           (43.9  )%
Total revenues (millions)              $  324.7      $   355.2      (8.6   )%
                                                                    
Total fuel expense                     $  13.6       $   59.8       (77.3  )%
(millions)^1
Operating aircraft at period
end:
44-50 seats                            70            73             (4.1   )%
69-99 seats                            157           148            6.1    %
Block hours                            177,579       174,701        1.6    %
Departures                             102,624       100,819        1.8    %
Passengers carried                     4,780,141     4,517,954      5.8    %
Revenue passenger miles                2,294         2,301          (0.3   )%
(millions)
Available seat miles                   3,168         3,370          (6.0   )%
(millions)
Passenger load factor                  72.4      %   68.3       %   4.1 points
Total cost per available seat
mile, including interest               9.60          10.22          (6.1   )%
expense (cents)
Cost per available seat mile,
including interest and                 9.17          8.44           8.6    %
excluding fuel expense and
excluding items (cents)
Gallons consumed                       3,524,032     17,970,351     (80.4  )%
Average cost per gallon                $  3.86       $   3.33       15.9   %
Average daily utilization of
each scheduled aircraft                9.5           9.9            (4.0   )%
(hours)
Average stage length                   468           468            —      %
Average seat density                   66            68             (2.9   )%


^1 Includes $24.6 million for the three months ended March 31, 2012, which was
passed-through under our fixed-fee agreements with our partners.




REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

UNAUDITED OPERATING HIGHLIGHTS
                                 
                                      Three Months Ended March 31,
                                      2013          2012          Change
Operating Highlights –
Frontier
Passenger service                     $   272.3      $   306.1      (11.0  )%
Charter and other                     38.6          36.3          6.3    %
Total revenues (millions)             $   310.9      $   342.4      (9.2   )%
                                                                    
Total fuel expense (millions)         $   118.0      $   131.9      (10.5  )%
Operating aircraft at period
end:
120 seats                             2              4              (50.0  )%
136-138 seats                         38             41             (7.3   )%
162-168 seats                         16             15             6.7    %
Passengers carried                    2,394,723      2,517,472      (4.9   )%
Revenue passenger miles               2,301          2,541          (9.4   )%
(millions)
Available seat miles                  2,622          3,000          (12.6  )%
(millions)
Passenger load factor                 87.8       %   84.7       %   3.1 points
Total revenue per available           11.86          11.41          3.9    %
seat mile (cents)
Operating cost per available          12.58          12.08          4.1    %
seat mile (cents)^1
Fuel cost per available seat          4.50           4.40           2.3    %
mile (cents)^1
Cost per available seat mile,
excluding fuel expense                8.08           7.68           5.2    %
(cents)
Gallons consumed                      34,582,371     38,957,370     (11.2  )%
Average cost per gallon^1             $   3.41       $   3.39       0.6    %
Block hours                           47,343         54,923         (13.8  )%
Departures                            18,974         21,246         (10.7  )%
Average daily utilization of
each scheduled aircraft               9.8            10.3           (4.9   )%
(hours)
Average stage length                  952            1,029          (7.5   )%
Average seat density                  144            142            1.4    %


^1 Includes a mark-to-market fuel hedge benefit of $0.4 million for the three
months ended March 31, 2013.

Contact:

Republic Airways Holdings
Margaret Miller, 317-246-2628
 
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