INDIANAPOLIS--(BUSINESS WIRE)--Republic Airways Holdings Inc. (NASDAQ: RJET) reported operating revenues of $697.8 million for the quarter ended Dec. 31, 2011, an increase of 7.4%, compared to $649.8 million for the same period last year. The increase in revenues is primarily due to an 11.0% increase in Frontier Airlines’ unit revenues.
During the quarter, the Company recorded an impairment charge of $191.1 million to reduce the carrying value of certain assets, mainly its 42 owned 37-50 seat aircraft. The Company also recorded non-cash charges of approximately $24.1 million related to the expected return of four leased A319 aircraft in 2012 and approximately $9.0 million related to the renegotiation of its E190 purchase order and the expected return of certain leased Embraer aircraft in 2012.
Therefore, on a GAAP basis, the Company reported a net loss of $123.5 million, or $2.55 per diluted share, for the quarter ended Dec. 31, 2011, compared to a net loss of $1.3 million, or $0.03 per diluted share, for the same period last year. On an ex-item basis, the Company is reporting net income of $17.0 million, or $0.34 per diluted share, compared to an ex-item net income of $7.4 million, or $0.18 per diluted share, for the three month periods ended Dec. 31, 2011 and 2010, respectively.
“We are very pleased with our fourth quarter results, especially in light of significant fuel price headwinds on our branded operations,” said Bryan Bedford, Chairman and CEO of Republic Airways Holdings. “Our restructuring efforts during 2011, coupled with strong unit revenue growth at Frontier, enabled us to produce significantly improved ex-item results this quarter, in spite of more than $35 million of increased fuel costs.”
The following tables present the reconciliation of results on a GAAP basis to the reported ex-item results for the three months ended Dec. 31, 2011 and 2010:
| Three months ended Dec. 31, 2011 | ||||||||||||||||||||||||
| Pre-tax by Segment | After-tax | |||||||||||||||||||||||
| ($ in millions) | Fixed-fee | Branded | Other | Consolidated | Consolidated | |||||||||||||||||||
| GAAP income (loss) | $ | (139.4 | ) | $ | (37.1 | ) | $ | (22.6 | ) | $ | (199.1 | ) | $ | (123.5 | ) | |||||||||
| Adjustments: | ||||||||||||||||||||||||
| Integration and fleet transition expenses 1 | 1.2 | 40.1 | - | 41.3 | 25.7 | |||||||||||||||||||
| Non-recurring impairment | 160.0 | 8.3 | 22.8 | 191.1 | 118.5 | |||||||||||||||||||
| Fuel mark-to-market hedge adjustments | - | (3.5 | ) | - | (3.5 | ) | (2.2 | ) | ||||||||||||||||
| Gain on sale of assets | - | - | (2.4 | ) | (2.4 | ) | (1.5 | ) | ||||||||||||||||
| Ex-item income (loss) | $ | 21.8 | $ | 7.8 | $ | (2.2 | ) | $ | 27.4 | $ | 17.0 | |||||||||||||
1 Includes $6.0 million of expenses associated with the successful Frontier restructuring effort and $2.2 million of other integration expenses
| Three months ended Dec. 31, 2010 | ||||||||||||||||||||||
| Pre-tax by Segment | After-tax | |||||||||||||||||||||
| ($ in millions) | Fixed-fee | Branded | Other | Consolidated | Consolidated | |||||||||||||||||
| GAAP income (loss) | $ | 22.1 | $ | (26.3 | ) | $ | 1.2 | $ | (3.0 | ) | $ | (1.3 | ) | |||||||||
| Year-end tax adjustment | (0.5 | ) | ||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||
| Integration and aircraft return expenses | - | 17.0 | - | 17.0 | 10.4 | |||||||||||||||||
| Fuel mark-to-market hedge adjustments | - | (1.9 | ) | - | (1.9 | ) | (1.2 | ) | ||||||||||||||
| Ex-item income (loss) | $ | 22.1 | $ | (11.2 | ) | $ | 1.2 | $ | 12.1 | $ | 7.4 | |||||||||||
Fixed-fee Segment Summary
Excluding fuel reimbursement from
our partners, fixed-fee service revenues increased 2.8%, compared to the
prior year’s fourth quarter on a 2.6% increase in block hours. Ex-item
income before taxes for the fixed-fee operations was $21.8 million for
the quarter, compared to a pre-tax income of $22.1 million for the
fourth quarter of 2010. Cost per Available Seat Mile (CASM), including
interest expense but excluding fuel and the impairment charge, increased
to 8.29¢ for the fourth quarter of 2011, from 7.78¢ for the same quarter
of 2010, primarily as a result of significantly higher maintenance
expenses and an increase in the unit cost of labor and benefits.
In September 2011, the Company began a program to install first-class seating on 58 E170/E175 aircraft operating on behalf of US Airways. During the program, operations for US Airways were significantly reduced to allow for the fleet configuration changes. The program was completed in October, and we are now operating a full schedule on behalf of US Airways with 20 dual-class, 69-seat E170 aircraft and 38 dual-class, 80-seat E175 aircraft.
As of Dec. 31, 2011, the Company operated 56 aircraft with 44-50 seats and 126 aircraft with 69-80 seats under our fixed-fee commercial agreements. Two 50-seat aircraft that were supporting our fixed-fee agreements as spares during the peak summer months were reallocated to charter operations during the fourth quarter.
Branded Segment Summary
The Company’s branded business
segment includes all operations flown as Frontier Airlines and Frontier
Express. Total branded revenues increased 8.9% to $422.4 million for the
quarter, compared to $387.9 million for the same period in 2010.
Capacity on Frontier, as measured by ASMs, was down 1.9% from the prior
year’s fourth quarter. Load factor for the fourth quarter was a record
86.8%, an increase of 5.6 points from the fourth quarter of 2010. Total
revenue per ASM (TRASM) was 11.90¢, up 11.0% from the same quarter in
2010. For the quarter ended Dec. 31, 2011, our branded business posted
ex-item pre-tax income of $7.8 million compared to a loss of $11.2
million for the quarter ended Dec. 31, 2010.
The operating unit cost for branded operations, excluding fuel and impairments, was 7.93¢ for the quarter. However, excluding integration and fleet transition expenses of $40.1 million, or 1.13¢ per ASM, the unit cost was 6.80¢ for the fourth quarter of 2011.
Fuel costs for branded operations were $164.4 million for the quarter. The fuel cost per gallon, including into-plane taxes and fees, increased 27.3% to $3.22 for the fourth quarter of 2011, compared to $2.53 for the prior year’s fourth quarter. The fourth quarter 2011 result includes a gain on fuel hedges of $3.5 million, or $0.07 per gallon. The Company realized gains of $1.5 million, or $0.03 per gallon for hedges that were settled during the quarter. The Company currently has no hedge positions for 2012.
Other Segment Summary
The Company’s Other business segment
includes revenues from aircraft subleases, license fees on airport slots
and expenses associated with those activities, as well as any unassigned
aircraft expenses. The Company reported ex-item pre-tax loss of $2.2
million in the fourth quarter, compared to a pre-tax income of $1.2
million for the fourth quarter of 2010.
During the fourth quarter, the Company sold airport slots for a total of $47.5 million and recorded a gain on the sale of approximately $2.4 million, which is reflected in the Other segment.
As of Dec. 31, 2011, the Company has a total of 25 aircraft included in its Other segment that are not reflected as operating aircraft in the branded or fixed-fee operating highlights tables in this release. This includes 11 E145 aircraft that are being subleased offshore, eleven 37-50 seat aircraft that are being utilized for charter operations or are temporarily parked, and two Q400 aircraft and one E170 aircraft that are temporarily parked. During the quarter, the Company incurred approximately $2.7 million of expenses in its Other segment for aircraft that are temporarily parked. The Company is attempting to sell, place into fixed-fee service or otherwise sublease aircraft that are excess to its projected operating needs.
Full Year 2011 Highlights
For
the full year 2011, the Company reported revenues of $2.86 billion,
compared to $2.65 billion for 2010. On a GAAP basis, the Company
reported a net loss for 2011 of $151.8 million, or $3.14 per diluted
share, compared to a net loss of $13.8 million, or $0.38 per diluted
share for the full year 2010.
The Company reported significant items for 2011 and 2010. The tables below outline those items and reconcile the Company’s GAAP results to the reported ex-items results for each year:
| Twelve months ended Dec. 31, 2011 | ||||||||||||||||||||||||
| Pre-tax by Segment | After-tax | |||||||||||||||||||||||
| ($ in millions) | Fixed-fee | Branded | Other | Consolidated | Consolidated | |||||||||||||||||||
| GAAP income (loss) | $ | (89.4 | ) | $ | (135.5 | ) | $ | (17.5 | ) | $ | (242.4 | ) | $ | (151.8 | ) | |||||||||
| Adjustments: | ||||||||||||||||||||||||
| Integration and fleet transition expenses | 4.4 | 48.6 | - | 53.0 | 33.2 | |||||||||||||||||||
| Non-recurring impairment | 160.0 | 8.3 | 22.8 | 191.1 | 119.7 | |||||||||||||||||||
| Fuel mark-to-market hedge adjustments | - | (3.8 | ) | - | (3.8 | ) | (2.3 | ) | ||||||||||||||||
| Gain on sale of assets | - | - | (2.4 | ) | (2.4 | ) | (1.5 | ) | ||||||||||||||||
| Severe storm/hailstorm impact | 2.0 | 12.0 | - | 14.0 | 8.8 | |||||||||||||||||||
| Ex-item income (loss) | $ | 77.0 | $ | (70.4 | ) | $ | 2.9 | $ | 9.5 | $ | 6.0 | |||||||||||||
| Twelve months ended Dec. 31, 2010 | ||||||||||||||||||||||
| Pre-tax by Segment | After-tax | |||||||||||||||||||||
| ($ in millions) | Fixed-fee | Branded | Other | Consolidated | Consolidated | |||||||||||||||||
| GAAP income (loss) | $ | 77.3 | $ | (99.4 | ) | $ | 0.6 | $ | (21.5 | ) | $ | (13.8 | ) | |||||||||
| Year-end tax adjustment | (0.5 | ) | ||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||
| Integration and aircraft return expenses | 2.2 | 54.2 | - | 56.4 | 34.4 | |||||||||||||||||
| Other impairment charges | - | 11.5 | - | 11.5 | 7.0 | |||||||||||||||||
|
Fuel excise tax and mark-to-market hedge adjustments |
2.6 | 3.6 | - | 6.2 | 3.8 | |||||||||||||||||
| Severe storm impact | 2.0 | 5.5 | - | 7.5 | 4.6 | |||||||||||||||||
| Reduction of Midwest lease obligation | - | (5.2 | ) | - | (5.2 | ) | (3.2 | ) | ||||||||||||||
| Ex-item income (loss) | $ | 84.1 | $ | (29.8 | ) | $ | 0.6 | $ | 54.9 | $ | 32.3 | |||||||||||
Excluding items reported during the year, the Company is reporting net income of $6.0 million, or approximately $0.12 per diluted share, compared to an ex-item result of $32.3 million for 2010, or $0.90 per diluted share.
Fixed-fee Segment
Excluding fuel reimbursement from our
partners, fixed-fee service revenues increased $13.8 million, or 1.4%
for the full year 2011 due to a 1.5% increase in block hours. Income
before taxes, ex-items, was $77.0 million for the full year 2011
compared to an ex-item result of $84.1 million for the full year 2010.
The decrease in ex-item pre-tax income was mainly due to increased
maintenance expenses on the Company’s 50-seat regional jets.
Branded Segment
Total revenues for the year for Frontier
were $1.76 billion, up 10.0% from the 2010 result of $1.60 billion on
1.1% fewer ASMs. Load factor was a record 85.8% for the year, up more
than three points from the 2010 result, and TRASM was 11.74¢, up more
than 11% from the 2010 result. Excluding items, Frontier reported a
pre-tax loss of $70.4 million in 2011, compared to a pre-tax loss of
$29.8 million in 2010.
Frontier fuel costs were approximately $718 million for the year, up 31%, or approximately $170 million from the 2010 level, on 8.1% fewer block hours. The fuel cost per gallon, including into-plane taxes and fees, was $3.25 for the year, up 35.4% from the 2010 level of $2.40.
Other Segment
The Company’s Other business segment includes
revenues from aircraft subleases, slot rentals and expenses associated
with those activities. The Company reported an ex-item pre-tax profit of
$2.9 million for the year for this segment.
Fleet
The Company’s total
operational fleet increased from Sept. 30, 2011, by two aircraft, to 281
aircraft, as of Dec. 31, 2011. The Company purchased two E190 aircraft
and leased one A320 aircraft during the fourth quarter of 2011. These
aircraft were placed into branded operations during the quarter. The
Company also sold one Q400 aircraft in the fourth quarter of 2011.
Balance Sheet and Liquidity
The
Company’s total cash balance decreased $59.6 million to $370.7 million
as of Dec. 31, 2011, compared to Dec. 31, 2010. Restricted cash
increased $12.3 million, to $151.4 million, from Dec. 31, 2010. The
Company’s unrestricted cash balance decreased $71.9 million, to $219.3
million, from Dec. 31, 2010. A condensed cash flow statement for the
years ended Dec. 31, 2011 and 2010 has been provided in the tables
section of this release.
The Company’s debt decreased to $2.36 billion as of Dec. 31, 2011, compared to $2.58 billion at Dec. 31, 2010. As of Dec. 31, 2011, approximately 85% of the total debt is fixed-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 $1.20 billion as of Dec. 31, 2011. A condensed balance sheet as of Dec. 31, 2011 and 2010 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
offer scheduled passenger service on nearly 1,500 flights daily to 133
cities in 42 states, the Bahamas, Canada, Costa Rica, Dominican
Republic, Jamaica, and Mexico under branded operations at Frontier, and
through fixed-fee airline services agreements with five major U.S.
airlines. The fixed-fee flights are operated under an airline partner
brand, such as AmericanConnection, Continental Express, Delta
Connection, United Express, and US Airways Express. The airlines
currently employ approximately 10,000 aviation professionals and operate
267 aircraft. For more information on Republic Airways please visit our
website at www.rjet.com.
The Company will conduct a telephone briefing to discuss its fourth quarter tomorrow morning at 10:30 a.m. EST. This call is being webcast by Thomson/Reuters and can be accessed at Republic Airways Holdings’ website at www.rjet.com. For those wishing to participate, please call 866-362-4666, and for international calls please dial 617-567-5313; the password is 27010260.
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 Dec. 31, | Twelve Months Ended Dec. 31, | |||||||||||||||||||||||||
| 2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||||||||
| Fixed-fee service | $ | 270.1 | $ | 257.5 | 4.9 | % | $ | 1,079.0 | $ | 1,030.3 | 4.7 | % | ||||||||||||||
| Passenger service | 402.8 | 370.8 | 8.6 | % | 1,694.5 | 1,541.3 | 9.9 | % | ||||||||||||||||||
| Cargo and other | 24.8 | 21.5 | 15.3 | % | 91.0 | 82.1 | 10.8 | % | ||||||||||||||||||
| Total operating revenues | 697.8 | 649.8 | 7.4 | % | 2,864.5 | 2,653.7 | 7.9 | % | ||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Wages and benefits | 134.8 | 126.0 | 7.0 | % | 560.6 | 549.9 | 1.9 | % | ||||||||||||||||||
| Aircraft fuel | 187.7 | 158.3 | 18.6 | % | 821.1 | 616.9 | 33.1 | % | ||||||||||||||||||
| Landing fees and airport rents | 41.7 | 41.3 | 1.0 | % | 167.7 | 170.7 | -1.8 | % | ||||||||||||||||||
| Aircraft and engine rent | 57.7 | 58.3 | -1.0 | % | 251.5 | 240.6 | 4.5 | % | ||||||||||||||||||
| Maintenance and repair | 68.5 | 65.7 | 4.3 | % | 297.2 | 255.8 | 16.2 | % | ||||||||||||||||||
| Insurance and taxes | 9.7 | 12.0 | -19.2 | % | 42.1 | 45.5 | -7.5 | % | ||||||||||||||||||
| Depreciation and amortization | 48.6 | 51.4 | -5.4 | % | 200.2 | 204.5 | -2.1 | % | ||||||||||||||||||
| Promotion and sales | 27.8 | 31.4 | -11.5 | % | 133.6 | 134.8 | -0.9 | % | ||||||||||||||||||
| Other impairment charges | 191.1 | - | nm | 191.1 | 11.5 | nm | ||||||||||||||||||||
| Other | 96.2 | 68.6 | 40.2 | % | 305.0 | 290.1 | 5.1 | % | ||||||||||||||||||
| Total operating expenses | 863.8 | 613.0 | 40.9 | % | 2,970.1 | 2,520.3 | 17.8 | % | ||||||||||||||||||
| OPERATING INCOME (LOSS) | (166.0 | ) | 36.8 | nm | (105.6 | ) | 133.4 | nm | ||||||||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||||||||||||
| Interest expense | (33.2 | ) | (35.9 | ) | -7.5 | % | (137.3 | ) | (151.7 | ) | -9.5 | % | ||||||||||||||
| Other - net | 0.1 | (3.9 | ) | nm | 0.5 | (3.2 | ) | nm | ||||||||||||||||||
| Total other expense | (33.1 | ) | (39.8 | ) | -16.8 | % | (136.8 | ) | (154.9 | ) | -11.7 | % | ||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | (199.1 | ) | (3.0 | ) | nm | (242.4 | ) | (21.5 | ) | nm | ||||||||||||||||
| INCOME TAX EXPENSE (BENEFIT) | (75.6 | ) | (1.7 | ) | nm | (90.6 | ) | (7.7 | ) | nm | ||||||||||||||||
| NET INCOME (LOSS) | $ | (123.5 | ) | $ | (1.3 | ) | nm | $ | (151.8 | ) | $ | (13.8 | ) | nm | ||||||||||||
| PER SHARE, BASIC | $ | (2.55 | ) | $ | (0.03 | ) | nm | $ | (3.14 | ) | $ | (0.38 | ) | nm | ||||||||||||
| PER SHARE, DILUTED | $ | (2.55 | ) | $ | (0.03 | ) | nm | $ | (3.14 | ) | $ | (0.38 | ) | nm | ||||||||||||
| Weighted average common shares | ||||||||||||||||||||||||||
| Basic | 48.4 | 41.0 | 18.0 | % | 48.2 | 36.0 | 33.9 | % | ||||||||||||||||||
| Diluted | 48.4 | 41.0 | 18.0 | % | 48.2 | 36.0 | 33.9 | % | ||||||||||||||||||
| REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES | ||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| (In millions, except share and per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Dec. 31, | Dec. 31, | |||||||||||
| 2011 | 2010 | |||||||||||
| ASSETS | ||||||||||||
| Current Assets: | ||||||||||||
| Cash and cash equivalents | $ | 219.3 | $ | 291.2 | ||||||||
| Restricted cash | 151.4 | 139.1 | ||||||||||
| Receivables, net of allowance for doubtful accounts of $0.6 and $1.2, respectively | 89.0 | 73.9 | ||||||||||
| Inventories, net | 101.8 | 94.6 | ||||||||||
| Prepaid expenses and other current assets | 64.2 | 56.4 | ||||||||||
| Assets held for sale | 33.0 | 43.5 | ||||||||||
| Deferred income taxes | 35.3 | 27.1 | ||||||||||
| Total current assets | 694.0 | 725.8 | ||||||||||
| Aircraft and other equipment, net | 2,808.7 | 3,173.5 | ||||||||||
| Maintenance deposits | 146.0 | 147.2 | ||||||||||
| Other intangible assets, net | 86.5 | 143.2 | ||||||||||
| Other assets | 166.5 | 159.0 | ||||||||||
| Total assets | $ | 3,901.7 | $ | 4,348.7 | ||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Current Liabilities: | ||||||||||||
| Current portion of long-term debt | $ | 284.6 | $ | 269.0 | ||||||||
| Accounts payable | 43.9 | 43.8 | ||||||||||
| Air traffic liability | 179.5 | 174.9 | ||||||||||
| Accrued frequent flyer revenue | 68.2 | 51.0 | ||||||||||
| Accrued liabilities | 258.8 | 246.6 | ||||||||||
| Total current liabilities | 835.0 | 785.3 | ||||||||||
| Long-term debt, less current portion | 2,074.5 | 2,308.7 | ||||||||||
| Deferred frequent flyer revenue | 68.1 | 102.3 | ||||||||||
| Deferred credits and other non-current liabilities | 110.4 | 108.1 | ||||||||||
| Deferred income taxes | 353.2 | 434.7 | ||||||||||
| Total liabilities | 3,441.2 | 3,739.1 | ||||||||||
| 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; 58,097,574 and 58,062,574 shares issued and 48,412,516 and 48,173,058 shares outstanding, respectively | - | - | ||||||||||
| Additional paid-in-capital | 409.4 | 405.4 | ||||||||||
| Treasury stock, 9,333,266 shares, at cost | (181.8 | ) | (181.8 | ) | ||||||||
| Accumulated other comprehensive loss | (4.0 | ) | (2.7 | ) | ||||||||
| Accumulated earnings | 236.9 | 388.7 | ||||||||||
| Total stockholders' equity | 460.5 | 609.6 | ||||||||||
| Total liabilities and stockholders' equity | $ | 3,901.7 | $ | 4,348.7 | ||||||||
| REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (In millions) | |||||||||||
| (Unaudited) | |||||||||||
| Twelve Months Ended Dec. 31, | |||||||||||
| 2011 | 2010 | ||||||||||
| NET CASH FROM OPERATING ACTIVITIES | $ | 131.5 | $ | 256.5 | |||||||
| INVESTING ACTIVITIES: | |||||||||||
| Purchase of aircraft and other equipment | (105.9 | ) | (58.7 | ) | |||||||
| Proceeds from sale of aircraft and other assets | 142.3 | 77.4 | |||||||||
| Aircraft deposits, net | (10.4 | ) | (28.8 | ) | |||||||
| Other, net | (2.4 | ) | 12.6 | ||||||||
| NET CASH FROM INVESTING ACTIVITIES | $ | 23.6 | $ | 2.5 | |||||||
| FINANCING ACTIVITIES: | |||||||||||
| Payments on debt | (208.5 | ) | (214.4 | ) | |||||||
| Proceeds from debt issuance | 70.7 | 49.3 | |||||||||
| Payments on early extinguishment of debt | (88.0 | ) | (60.0 | ) | |||||||
| Proceeds from common stock offering, net | - | 101.9 | |||||||||
| Other, net | (1.2 | ) | (2.1 | ) | |||||||
| NET CASH FROM FINANCING ACTIVITIES | $ | (227.0 | ) | $ | (125.3 | ) | |||||
| NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | $ | (71.9 | ) | $ | 133.7 | ||||||
| CASH AND CASH EQUIVALENTS, Beginning of period | $ | 291.2 | $ | 157.5 | |||||||
| CASH AND CASH EQUIVALENTS, End of period | $ | 219.3 | $ | 291.2 | |||||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
| CASH PAID FOR INTEREST AND INCOME TAXES | |||||||||||
| Interest paid | $ | 127.5 | $ | 138.3 | |||||||
| Income taxes paid | (0.5 | ) | (0.5 | ) | |||||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||
| Aircraft, inventories, and other equipment purchased through financing arrangements from manufacturer | $ | - | $ | 5.4 | |||||||
| Engines received and not yet paid | 5.0 | 9.9 | |||||||||
| Reduction of convertible debt | - | 2.7 | |||||||||
| REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
| UNAUDITED OPERATING HIGHLIGHTS | ||||||||||||||||||||||||||
| Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | |||||||||||||||||||||||||
| Operating Highlights – Fixed-fee | 2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||||||
| Fixed-fee service revenues, excluding fuel (millions) 1 | $ | 246.8 | $ | 240.1 | 2.8 | % | $ | 976.5 | $ | 962.7 | 1.4 | % | ||||||||||||||
| Passengers carried | 4,077,594 | 4,312,179 | -5.4 | % | 16,418,567 | 17,355,097 | -5.4 | % | ||||||||||||||||||
| Revenue passenger miles (thousands) | 1,980,655 | 2,093,851 | -5.4 | % | 8,062,206 | 8,572,623 | -6.0 | % | ||||||||||||||||||
| Available seat miles (thousands) | 2,742,309 | 2,801,991 | -2.1 | % | 11,191,105 | 11,348,280 | -1.4 | % | ||||||||||||||||||
| Passenger load factor | 72.2 | % | 74.7 | % | -2.5 pts | 72.0 | % | 75.5 | % | -3.5 pts | ||||||||||||||||
| Total cost per available seat mile, including interest expense (cents) 2 | 9.14 | 8.40 | 8.8 | % | 9.02 | 8.40 | 7.4 | % | ||||||||||||||||||
| Operating cost per available seat mile, including interest and excluding fuel expense (cents) 2 | 8.29 | 7.78 | 6.6 | % | 8.10 | 7.80 | 3.8 | % | ||||||||||||||||||
| Operating aircraft at period end: 5 | ||||||||||||||||||||||||||
| 44-50 seats | 56 | 65 | -13.8 | % | 56 | 65 | -13.8 | % | ||||||||||||||||||
| 69-80 seats | 126 | 112 | 12.5 | % | 126 | 112 | 12.5 | % | ||||||||||||||||||
| Block hours | 150,851 | 147,052 | 2.6 | % | 601,499 | 592,821 | 1.5 | % | ||||||||||||||||||
| Departures | 88,051 | 88,756 | -0.8 | % | 350,279 | 354,631 | -1.2 | % | ||||||||||||||||||
| Average daily utilization of each scheduled aircraft (hours) | 9.8 | 9.8 | - | 10.0 | 9.9 | 1.0 | % | |||||||||||||||||||
| Average stage length | 475 | 474 | 0.2 | % | 491 | 480 | 2.3 | % | ||||||||||||||||||
| Average seat density | 66 | 67 | -1.5 | % | 65 | 67 | -3.0 | % | ||||||||||||||||||
| Operating Highlights – Branded | ||||||||||||||||||||||||||
| Total revenues (millions) | $ | 422.4 | $ | 387.9 | 8.9 | % | $ | 1,765.4 | $ | 1,604.5 | 10.0 | % | ||||||||||||||
| Passengers carried | 3,565,787 | 3,436,759 | 3.8 | % | 14,937,983 | 14,603,935 | 2.3 | % | ||||||||||||||||||
| Revenue passenger miles (thousands) | 3,080,937 | 2,938,208 | 4.9 | % | 12,899,243 | 12,571,202 | 2.6 | % | ||||||||||||||||||
| Available seat miles (thousands) | 3,549,709 | 3,617,389 | -1.9 | % | 15,036,619 | 15,198,973 | -1.1 | % | ||||||||||||||||||
| Passenger load factor | 86.8 | % | 81.2 | % | 5.6 pts | 85.8 | % | 82.7 | % | 3.1 pts | ||||||||||||||||
| Total revenue per available seat mile (cents) | 11.90 | 10.72 | 11.0 | % | 11.74 | 10.56 | 11.2 | % | ||||||||||||||||||
| Passenger revenue per ASM (cents) | 11.35 | 10.25 | 10.7 | % | 11.27 | 10.14 | 11.1 | % | ||||||||||||||||||
| Cost per available seat mile (cents) 3, 4 | 12.57 | 11.09 | 13.3 | % | 12.39 | 10.93 | 13.4 | % | ||||||||||||||||||
| Fuel cost per available seat mile (cents) 3 | 4.63 | 3.90 | 18.8 | % | 4.78 | 3.61 | 32.4 | % | ||||||||||||||||||
| Cost per available seat mile, excluding fuel expense (cents) 4 | 7.93 | 7.19 | 10.4 | % | 7.60 | 7.32 | 3.8 | % | ||||||||||||||||||
| Gallons consumed | 51,008,603 | 55,587,923 | -8.2 | % | 220,824,996 | 228,196,721 | -3.2 | % | ||||||||||||||||||
| Average cost per gallon 3 | $ | 3.22 | $ | 2.53 | 27.3 | % | $ | 3.25 | $ | 2.40 | 35.4 | % | ||||||||||||||
| Operating aircraft at period end: | ||||||||||||||||||||||||||
| 37-50 seats | 6 | 13 | -53.8 | % | 6 | 13 | -53.8 | % | ||||||||||||||||||
| 70-99 seats | 21 | 35 | -40.0 | % | 21 | 35 | -40.0 | % | ||||||||||||||||||
| 120+ seats | 60 | 50 | 20.0 | % | 60 | 50 | 20.0 | % | ||||||||||||||||||
| Block hours | 77,453 | 88,167 | -12.2 | % | 349,300 | 380,050 | -8.1 | % | ||||||||||||||||||
| Departures | 36,389 | 42,592 | -14.6 | % | 167,223 | 183,185 | -8.7 | % | ||||||||||||||||||
| Average daily utilization of each scheduled aircraft (hours) | 10.1 | 10.5 | -3.5 | % | 10.6 | 10.9 | -2.8 | % | ||||||||||||||||||
| Average stage length | 835 | 829 | 0.7 | % | 831 | 827 | 0.5 | % | ||||||||||||||||||
| Average seat density | 117 | 102 | 14.7 | % | 108 | 100 | 8.0 | % | ||||||||||||||||||
| 1 Fixed fee service revenues exclude cargo and other revenues. |
| 2 Costs (in all periods) include operating and interest expenses and exclude impairments and other expenses not attributable to the fixed-fee segment. |
| 3 Includes mark-to-market fuel hedge benefit of $3.5 million and $1.9 million for the three months ended December, 2011 and 2010 and fuel hedge benefit of $3.8 million and expense of $3.6 million for the twelve months ended December 31, 2011 and 2010, respectively. |
| 4 Costs (in all periods) include operating expenses and exclude impairments and other expenses not attributable to the branded segment. |
| 5 During 2011, we reconfigured our US Airways EJET aircraft from 76 and 86 seat single class configurations to 69 and 80 seat dual class configurations |