INDIANAPOLIS--(BUSINESS WIRE)--Republic Airways Holdings Inc. (NASDAQ: RJET) today reported full year 2012 net income of $51.3 million, or $1.02 per diluted share, a $203.1 million improvement from our full year 2011 results of a net loss of $151.8 million, or $3.14 per diluted share. The Company also reported fourth quarter 2012 net income of $12.6 million, or $0.25 per diluted share, a $136.1 million improvement over the fourth quarter 2011 net loss of $123.5 million, or $2.55 per diluted share.
“We’re pleased with the solid financial improvement we experienced in 2012,” said Republic Airways Holdings Chairman, President and CEO Bryan Bedford. “Our restructuring efforts in 2011 laid the foundation for Frontier to return to profitability in 2012, despite higher fuel costs. Our 50-seat RJ restructuring effort completed last October enabled us to return all of our idled aircraft to fixed-fee service with our partners and significantly reduced the financial burden associated with our Chautauqua operation.”
|
The Company incurred the following items in 2012: |
Segment |
Pre-tax amount |
Period |
||||||||
|
* Loss on sale of E190s |
Republic | $11.2 million | 3Q-12 | ||||||||
|
* Gain on sale of slots |
Republic | ($8.3) million | 3Q-12 | ||||||||
|
* Professional and legal fees related to restructuring |
Republic | $4.3 million | 4Q-12 | ||||||||
|
* Restructuring and fleet transition expenses |
Frontier | $15.5 million | 4Q-12 | ||||||||
|
* Frequent flyer adjustment to passenger revenue |
Frontier | ($9.8) million | 4Q-12 | ||||||||
|
The Company incurred the following items in 2011: |
Segment |
Pre-tax amount |
Period |
||||||||
|
* Fleet transition expenses |
Republic | $9.1 million | 4Q-11 | ||||||||
|
* Impairment of fleet asset values |
Republic | $191.1 million | 4Q-11 | ||||||||
|
* Fleet transition expenses |
Frontier | $32.3 million | 4Q-11 | ||||||||
Note: The amounts reported below for pre-tax income (loss) and net income (loss) exclude the impact of the items listed above. Please refer to the schedules at the end of this release for a tabular reconciliation of the Company’s GAAP pre-tax and after tax income (loss) to the ex-tem pre-tax and after-tax income (loss) and diluted earnings per share.
Consolidated Results (ex-items)
Excluding
the items listed above, the Company reported 2012 full year net income
of $59.0 million, or $1.15 per diluted share, as compared to a 2011 full
year net loss of $6.2 million, or $0.13 per diluted share. For the
fourth quarter of 2012 the Company reported net income of $18.5 million,
or $0.35 per diluted share, as compared to the fourth quarter 2011 net
income of $20.7 million, or $0.41 per diluted share.
Business Segment Presentation
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 (ex-items)
Revenues
for the year decreased 10.2% to $1,377.4 million. This was a result of a
change in the mix of flying between pro-rate and fixed-fee operations
and a $48.2 million reduction in fuel-related revenue under Republic’s
fixed-fee agreements. Pre-tax income improved nearly 31% to $69.5
million for the year ended December 31, 2012, compared to $53.1 million
for the prior year.
For the quarter, revenues decreased 8.9%, or $31.9 million to $327.4 million, compared to the prior year’s fourth quarter, due primarily to a decrease of $23.3 million in fuel reimbursement under Republic’s 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 remainder of the decrease in revenue is due to the increase of Republic’s fixed-fee operations and reduction in pro-rate flying with Frontier.
Income before taxes was $24.1 million for the quarter, compared to pre-tax income of $23.3 million for the prior year’s fourth quarter. Fuel costs for Republic were $21.8 million for the quarter, a decrease of $38.5 million from the prior year’s fourth quarter, due to both the removal of fuel expense under Republic’s fixed-fee agreement with United and a reduction in pro-rate operations with Frontier. The price per gallon increased 9.1% from $3.19 in the fourth quarter of 2011 to $3.48 in the fourth quarter of 2012.
As of December 31, 2012, Republic operated 70 aircraft with 44-50 seats and 143 aircraft with 69-80 seats to support its fixed-fee commercial agreements. Additionally, Republic operated one aircraft with 50 seats and 12 aircraft with 99 seats under pro-rate agreements with Frontier.
Frontier Segment Summary (ex-items)
Frontier
revenues for the year increased 7.0% to $1,423.7 million. On a 1.1%
increase in capacity, unit revenues increased 5.8% to 11.96¢ from
11.30¢. Frontier’s pre-tax income improved $92.6 million to $29.6
million of income for 2012 compared to a pre-tax loss of $63.0 million
for 2011.
For the quarter, decreased 1.1% to $334.9 million, compared to $338.5 million for the same period in 2011. Total revenue per ASM (“TRASM”) was 11.88¢, an increase of 2.9% from the same quarter in 2011, while capacity on Frontier decreased 4.0% from the prior year’s fourth quarter. Load factor for the fourth quarter was 88.9%, an increase of 0.7% from the fourth quarter of 2011.
For the quarter, Frontier posted pre-tax income of $7.3 million compared to pre-tax income of $10.1 million for the prior year’s fourth quarter. Fuel costs for Frontier were $128.2 million for the quarter, a decrease of $0.8 million from the prior year’s fourth quarter. The fuel cost per gallon, including into-plane taxes and fees, increased 6.5% to $3.42 for the fourth quarter of 2012, compared to $3.21 for last year’s fourth quarter. The fourth quarter results include an expense on fuel hedges of $0.5 million, or $0.01 per gallon, while the 2011 results include a benefit of $3.5 million, or $0.09 per gallon. Frontier has approximately 15% of its anticipated fuel consumption hedged through the second quarter of 2013.
Frontier’s operating unit cost was 7.03¢ for the quarter, a 3.4% increase compared to 6.80¢ for the same quarter in 2011.
As of December 31, 2012, Frontier operated a total of 55 Airbus aircraft versus 60 Airbus aircraft as of December 31, 2011.
Recent Business Developments
During
the fourth quarter of 2012, the Company completed the restructuring of
its 50-seat platform, Chautauqua Airlines, Inc. As a result of the
restructuring, the Company expects to realize, on average, $45.0 million
of cash flow improvement per year for the next five years and has
reduced its aircraft rent and depreciation expense on its 50-seat
aircraft. In addition, in order to finalize the restructuring, the
Company issued a $25.0 million convertible note to one of the third
parties involved in the restructuring. The note bears interest at a rate
of 6.0% per annum and is convertible into 2.5 million shares of Republic
Airways Holdings Inc. common stock.
On January 24, 2013, the Company entered into a capacity purchase agreement (“CPA”) with American Airlines which is subject to bankruptcy court approval. American filed a motion for approval of the CPA to be heard before the court on February 14, 2013. The hearing on that motion was subsequently adjourned until February 26, 2013. On February 14, 2013, US Airways and American Airlines announced a merger agreement. On February 21, 2013, the hearing on American's motion to approve the CPA between the Company and American was adjourned to March 12, 2013.
On February 8, 2013, the Company announced the transition of nine E145 aircraft flying on Chautauqua Airlines, Inc. from US Airways to Delta under separate amendments. The US Airways amendment provides for termination of the current aircraft operating under the Jet Service Agreement by July 2013. The Delta amendment extends the current term for certain aircraft, as well as adds ten aircraft into service during 2013.
Balance Sheet and Liquidity
The
Company’s total cash balance increased $23.6 million to $394.3 million
as of December 31, 2012, compared to December 31, 2011. Restricted cash
decreased $4.3 million, to $147.1 million, from December 31, 2011. The
Company’s unrestricted cash balance increased $27.9 million, to $247.2
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 $2.12 billion as of December 31, 2012, compared to $2.36 billion at December 31, 2011. As of December 31, 2012, almost 90% 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 $1.0 billion and $1.2 billion as of December 31, 2012 and 2011, respectively. A condensed balance sheet as of December 31, 2012 and 2011 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, 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 fourth quarter and full year 2012 results tomorrow morning (Thursday, February 28, 2013) 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. Those wishing to participate can do so by calling 800-901-5259. International callers can participate by calling +1-617-786-4514; the password is 80290913.
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 December 31, | Years Ended December 31, | |||||||||||||||||||||||||
| 2012 | 2011 | Change | 2012 | 2011 | Change | |||||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||||||||
| Fixed-fee service | $ | 273.4 | $ | 270.1 | 1.2 | % | $ | 1,102.1 | $ | 1,079.0 | 2.1 | % | ||||||||||||||
| Passenger service | 366.4 | 402.8 | -9.0 | % | 1,556.8 | 1,694.5 | -8.1 | % | ||||||||||||||||||
| Charter and other | 32.3 | 24.9 | 29.7 | % | 152.0 | 91.0 | 67.0 | % | ||||||||||||||||||
| Total operating revenues | 672.1 | 697.8 | -3.7 | % | 2,810.9 | 2,864.5 | -1.9 | % | ||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Wages and benefits | 141.8 | 134.7 | 5.3 | % | 562.3 | 560.6 | 0.3 | % | ||||||||||||||||||
| Aircraft fuel | 150.0 | 187.7 | -20.1 | % | 693.7 | 821.1 | -15.5 | % | ||||||||||||||||||
| Landing fees and airport rents | 40.1 | 41.7 | -3.8 | % | 169.7 | 167.7 | 1.2 | % | ||||||||||||||||||
| Aircraft and engine rent | 57.1 | 57.7 | -1.0 | % | 243.2 | 251.5 | -3.3 | % | ||||||||||||||||||
| Maintenance and repair | 70.9 | 68.4 | 3.7 | % | 296.3 | 297.2 | -0.3 | % | ||||||||||||||||||
| Insurance and taxes | 7.4 | 9.7 | -23.7 | % | 38.1 | 42.1 | -9.5 | % | ||||||||||||||||||
| Depreciation and amortization | 47.3 | 48.6 | -2.7 | % | 190.6 | 200.2 | -4.8 | % | ||||||||||||||||||
| Promotion and sales | 23.8 | 27.9 | -14.7 | % | 110.5 | 133.6 | -17.3 | % | ||||||||||||||||||
| Other impairment charges | - | 191.1 | -100.0 | % | - | 191.1 | -100.0 | % | ||||||||||||||||||
| Other | 81.6 | 96.4 | -15.4 | % | 293.6 | 305.0 | -3.7 | % | ||||||||||||||||||
| Total operating expenses | 620.0 | 863.9 | -28.2 | % | 2,598.0 | 2,970.1 | -12.5 | % | ||||||||||||||||||
| OPERATING INCOME (LOSS) | 52.1 | (166.1 | ) | 131.4 | % | 212.9 | (105.6 | ) | 301.6 | % | ||||||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||||||||||||
| Interest expense | (30.8 | ) | (33.1 | ) | 6.9 | % | (127.0 | ) | (137.3 | ) | 7.5 | % | ||||||||||||||
| Other - net | 0.1 | 0.1 | 0.0 | % | 0.3 | 0.5 | -40.0 | % | ||||||||||||||||||
| Total other expense | (30.7 | ) | (33.0 | ) | 7.0 | % | (126.7 | ) | (136.8 | ) | 7.4 | % | ||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 21.4 | (199.1 | ) | 110.7 | % | 86.2 | (242.4 | ) | 135.6 | % | ||||||||||||||||
| INCOME TAX EXPENSE (BENEFIT) | 8.8 | (75.6 | ) | 111.6 | % | 34.9 | (90.6 | ) | 138.5 | % | ||||||||||||||||
| NET INCOME (LOSS) | $ | 12.6 | $ | (123.5 | ) | 110.2 | % | $ | 51.3 | $ | (151.8 | ) | 133.8 | % | ||||||||||||
| PER SHARE, BASIC | $ | 0.26 | $ | (2.55 | ) | 110.2 | % | $ | 1.06 | $ | (3.14 | ) | 133.8 | % | ||||||||||||
| PER SHARE, DILUTED | $ | 0.25 | $ | (2.55 | ) | 109.8 | % | $ | 1.02 | $ | (3.14 | ) | 132.5 | % | ||||||||||||
| Weighted average common shares | ||||||||||||||||||||||||||
| Basic | 48.5 | 48.4 | 48.5 | 48.2 | ||||||||||||||||||||||
| Diluted | 52.7 | 48.4 | 51.4 | 48.2 | ||||||||||||||||||||||
| REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES | ||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| (In millions, except share and per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| December 31, | December 31, | |||||||||||
| 2012 | 2011 | |||||||||||
| ASSETS | ||||||||||||
| Current Assets: | ||||||||||||
| Cash and cash equivalents | $ | 247.2 | $ | 219.3 | ||||||||
| Restricted cash | 147.1 | 151.4 | ||||||||||
| Receivables, net of allowance for doubtful accounts of $2.9 and $0.6, respectively | 79.5 | 89.0 | ||||||||||
| Inventories, net | 86.5 | 101.8 | ||||||||||
| Prepaid expenses and other current assets | 44.4 | 64.2 | ||||||||||
| Assets held for sale | - | 33.0 | ||||||||||
| Deferred income taxes | 31.3 | 35.3 | ||||||||||
| Total current assets | 636.0 | 694.0 | ||||||||||
| Aircraft and other equipment, net | 2,546.7 | 2,808.7 | ||||||||||
| Maintenance deposits | 170.0 | 146.0 | ||||||||||
| Other intangible assets, net | 65.0 | 86.5 | ||||||||||
| Other assets | 237.5 | 166.5 | ||||||||||
| Total assets | $ | 3,655.2 | $ | 3,901.7 | ||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Current Liabilities: | ||||||||||||
| Current portion of long-term debt | $ | 276.2 | $ | 284.6 | ||||||||
| Accounts payable | 29.8 | 43.9 | ||||||||||
| Air traffic liability | 146.6 | 179.5 | ||||||||||
| Deferred frequent flyer revenue | 54.8 | 68.2 | ||||||||||
| Accrued liabilities | 238.8 | 258.8 | ||||||||||
| Total current liabilities | 746.2 | 835.0 | ||||||||||
| Long-term debt, less current portion | 1,843.3 | 2,074.5 | ||||||||||
| Deferred frequent flyer revenue, less current portion | 57.8 | 68.1 | ||||||||||
| Deferred credits and other non-current liabilities | 109.8 | 110.4 | ||||||||||
| Deferred income taxes | 384.6 | 353.2 | ||||||||||
| Total liabilities | 3,141.7 | 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; 58,529,449 and 58,097,574 shares issued and 48,558,312 and 48,412,516 shares outstanding, respectively | - | - | ||||||||||
| Additional paid-in-capital | 412.1 | 409.4 | ||||||||||
| Treasury stock, 9,333,266 shares at cost | (181.8 | ) | (181.8 | ) | ||||||||
| Accumulated other comprehensive loss | (5.0 | ) | (4.0 | ) | ||||||||
| Accumulated earnings | 288.2 | 236.9 | ||||||||||
| Total stockholders' equity | 513.5 | 460.5 | ||||||||||
| Total liabilities and stockholders' equity | $ | 3,655.2 | $ | 3,901.7 | ||||||||
| REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (In millions) | |||||||||||
| (Unaudited) | |||||||||||
| Years ended December 31, | |||||||||||
| 2012 | 2011 | ||||||||||
| NET CASH FROM OPERATING ACTIVITIES | $ | 255.6 | $ | 131.5 | |||||||
| INVESTING ACTIVITIES: | |||||||||||
| Purchase of aircraft and other equipment | (35.7 | ) | (105.9 | ) | |||||||
| Proceeds from sale of aircraft, slots and other assets | 84.3 | 142.3 | |||||||||
| Aircraft deposits, net | (8.0 | ) | (10.4 | ) | |||||||
| Other, net | (3.4 | ) | (2.4 | ) | |||||||
| NET CASH FROM INVESTING ACTIVITIES | $ | 37.2 | $ | 23.6 | |||||||
| FINANCING ACTIVITIES: | |||||||||||
| Payments on debt | (216.1 | ) | (208.5 | ) | |||||||
| Proceeds from debt issuance | 3.7 | 70.7 | |||||||||
| Payments on early extinguishment of debt | (52.0 | ) | (88.0 | ) | |||||||
| Other, net | (0.5 | ) | (1.2 | ) | |||||||
| NET CASH FROM FINANCING ACTIVITIES | $ | (264.9 | ) | $ | (227.0 | ) | |||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | $ | 27.9 | $ | (71.9 | ) | ||||||
| CASH AND CASH EQUIVALENTS, Beginning of period | $ | 219.3 | $ | 291.2 | |||||||
| CASH AND CASH EQUIVALENTS, End of period | $ | 247.2 | $ | 219.3 | |||||||
| REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES | ||||||||||||||
| UNAUDITED OPERATING HIGHLIGHTS | ||||||||||||||
| Three Months Ended December 31, | ||||||||||||||
| Operating Highlights – Republic1 | 2012 | 2011 | Change | |||||||||||
| Total revenues (millions) | $ | 327.4 | $ | 359.3 | -8.9 | % | ||||||||
| Total fuel expense (millions)2 | $ | 21.8 | $ | 60.3 | -63.8 | % | ||||||||
| Operating aircraft at period end: | ||||||||||||||
| 37-50 seats3 | 71 | 73 | -2.7 | % | ||||||||||
|
69-99 seats4 |
155 | 148 | 4.7 | % | ||||||||||
| Block hours | 176,079 | 174,062 | 1.2 | % | ||||||||||
| Departures | 102,662 | 102,338 | 0.3 | % | ||||||||||
| Passengers carried | 5,163,017 | 4,912,182 | 5.1 | % | ||||||||||
| Revenue passenger miles (millions) | 2,560 | 2,474 | 3.5 | % | ||||||||||
| Available seat miles (millions) | 3,294 | 3,358 | -1.9 | % | ||||||||||
| Passenger load factor | 77.7 | % | 73.7 | % | 4.0 pts | |||||||||
| Total cost per available seat mile, including interest expense and excluding items (cents)6 | 9.21 | 10.01 | -8.0 | % | ||||||||||
| Cost per available seat mile, including interest and excluding fuel expense and excluding items (cents)6 | 8.55 | 8.21 | 4.1 | % | ||||||||||
| Gallons consumed | 6,272,203 | 18,936,470 | -66.9 | % | ||||||||||
| Average cost per gallon | $ | 3.48 | $ | 3.19 | 9.1 | % | ||||||||
| Average daily utilization of each scheduled aircraft (hours) | 9.3 | 9.7 | -4.1 | % | ||||||||||
| Average stage length | 482 | 490 | -1.6 | % | ||||||||||
| Average seat density | 67 | 67 | 0.0 | % | ||||||||||
| Operating Highlights – Frontier1 | ||||||||||||||
| Total revenues (millions)7 | $ | 334.9 | $ | 338.5 | -1.1 | % | ||||||||
| Total fuel expense (millions) | $ | 128.2 | $ | 127.4 | 0.6 | % | ||||||||
| Operating aircraft at period end: | ||||||||||||||
| 120 seats | 2 | 4 | -50.0 | % | ||||||||||
| 136-138 seats | 37 | 41 | -9.8 | % | ||||||||||
| 162-168 seats | 16 | 15 | 6.7 | % | ||||||||||
| Passengers carried | 2,596,521 | 2,731,199 | -4.9 | % | ||||||||||
| Revenue passenger miles (millions) | 2,505 | 2,588 | -3.2 | % | ||||||||||
| Available seat miles (millions) | 2,818 | 2,934 | -4.0 | % | ||||||||||
| Passenger load factor | 88.9 | % | 88.2 | % | 0.7 pts | |||||||||
| Total revenue per available seat mile (cents)7 | 11.88 | 11.54 | 2.9 | % | ||||||||||
| Operating cost per available seat mile (cents)5,8 | 11.58 | 11.15 | 3.9 | % | ||||||||||
|
Fuel cost per available seat mile (cents)5 |
4.55 | 4.34 | 4.8 | % | ||||||||||
| Cost per available seat mile, excluding fuel expense (cents)8 | 7.03 | 6.80 | 3.4 | % | ||||||||||
| Gallons consumed | 37,478,548 | 39,745,972 | -5.7 | % | ||||||||||
| Average cost per gallon5 | $ | 3.42 | $ | 3.21 | 6.5 | % | ||||||||
| Block hours | 50,662 | 54,242 | -6.6 | % | ||||||||||
| Departures | 20,587 | 22,102 | -6.9 | % | ||||||||||
| Average daily utilization of each scheduled aircraft (hours) | 10.5 | 10.5 | 0.0 | % | ||||||||||
| Average stage length | 946 | 935 | 1.2 | % | ||||||||||
| Average seat density | 145 | 142 | 2.1 | % | ||||||||||
|
1 See business segment presentation discussion for information regarding our change in segments. |
| 2 Includes $23.3 million for the three months ended December 31, 2011, which was passed-through under our fixed-fee agreements with our partners. |
| 3 Includes one aircraft and eleven aircraft as of December 31, 2012 and 2011, respectively, that were unassigned. |
|
4 Includes three aircraft as of December 31, 2011 that were unassigned. |
| 5 Includes mark-to-market fuel hedge expense of $0.5 million and benefit of $3.5 million for the three months ended December 31, 2012 and 2011, respectively. |
| 6 Excludes $4.3 million and $200.2 million items for the three months ended December 31, 2012 and 2011, respectively. |
| 7 Excludes $9.8 million of items for the three months ended December 31, 2012. |
| 8 Excludes $15.5 million and $32.3 million of items for the three months ended December 31, 2012 and 2011, respectively. |
| REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES | ||||||||||||||
| UNAUDITED OPERATING HIGHLIGHTS | ||||||||||||||
| Years Ended December 31, | ||||||||||||||
| Operating Highlights – Republic1 | 2012 | 2011 | Change | |||||||||||
| Total revenues (millions) | $ | 1,377.4 | $ | 1,534.0 | -10.2 | % | ||||||||
| Total fuel expense (millions)2 | $ | 161.4 | $ | 303.3 | -46.8 | % | ||||||||
| Operating aircraft at period end: | ||||||||||||||
| 37-50 seats3 | 71 | 73 | -2.7 | % | ||||||||||
| 69-99 seats4 | 155 | 148 | 4.7 | % | ||||||||||
| Block hours | 701,040 | 731,440 | -4.2 | % | ||||||||||
| Departures | 409,058 | 429,564 | -4.8 | % | ||||||||||
| Passengers carried | 20,112,289 | 20,773,219 | -3.2 | % | ||||||||||
| Revenue passenger miles (millions) | 10,120 | 10,691 | -5.3 | % | ||||||||||
| Available seat miles (millions) | 13,437 | 14,449 | -7.0 | % | ||||||||||
| Passenger load factor | 75.3 | % | 74.0 | % | 1.3 pts | |||||||||
| Total cost per available seat mile, including interest expense and excluding impairment (cents) 6 | 9.73 | 10.25 | -5.1 | % | ||||||||||
| Cost per available seat mile, including interest and excluding fuel expense and excluding impairment (cents) 6 | 8.53 | 8.15 | 4.7 | % | ||||||||||
| Gallons consumed | 48,842,044 | 91,890,705 | -46.8 | % | ||||||||||
| Average cost per gallon | $ | 3.30 | $ | 3.30 | 0.0 | % | ||||||||
| Average daily utilization of each scheduled aircraft (hours) | 9.8 | 9.9 | -1.0 | % | ||||||||||
| Average stage length | 469 | 498 | -5.8 | % | ||||||||||
| Average seat density | 67 | 68 | -1.5 | % | ||||||||||
| Operating Highlights – Frontier1 | ||||||||||||||
| Total revenues (millions) 7 | $ | 1,423.7 | $ | 1,330.5 | 7.0 | % | ||||||||
| Total fuel expense (millions) | $ | 532.3 | $ | 517.8 | 2.8 | % | ||||||||
| Operating aircraft at period end: | ||||||||||||||
| 120 seats | 2 | 4 | -50.0 | % | ||||||||||
| 136-138 seats | 37 | 41 | -9.8 | % | ||||||||||
| 162-168 seats | 16 | 15 | 6.7 | % | ||||||||||
| Passengers carried | 10,700,669 | 10,583,331 | 1.1 | % | ||||||||||
| Revenue passenger miles (milllions) | 10,579 | 10,271 | 3.0 | % | ||||||||||
| Available seat miles (millions) | 11,908 | 11,779 | 1.1 | % | ||||||||||
| Passenger load factor | 88.8 | % | 87.2 | % | 1.6 pts | |||||||||
| Total revenue per available seat mile (cents) 7 | 11.96 | 11.30 | 5.8 | % | ||||||||||
| Operating cost per available seat mile (cents)5,8 | 11.66 | 11.77 | -0.9 | % | ||||||||||
| Fuel cost per available seat mile (cents)5 | 4.47 | 4.40 | 1.6 | % | ||||||||||
| Cost per available seat mile, excluding fuel expense (cents)8 | 7.19 | 7.38 | -2.6 | % | ||||||||||
| Gallons consumed | 158,361,595 | 159,145,671 | -0.5 | % | ||||||||||
| Average cost per gallon5 | $ | 3.36 | $ | 3.25 | 3.4 | % | ||||||||
| Block hours | 214,494 | 219,359 | -2.2 | % | ||||||||||
| Departures | 85,328 | 87,938 | -3.0 | % | ||||||||||
| Average daily utilization of each scheduled aircraft (hours) | 11.0 | 11.2 | -1.8 | % | ||||||||||
| Average stage length | 976 | 957 | 2.0 | % | ||||||||||
| Average seat density | 143 | 140 | 2.1 | % | ||||||||||
|
1 See business segment presentation discussion for information regarding our change in segments. |
| 2 Includes $48.2 million and $102.5 million for the year ended December 31, 2012 and 2011, respectively, which was passed-through under our fixed-fee agreements with our partners. |
| 3 Includes one aircraft and eleven aircraft as of December 31, 2012 and 2011, respectively, that were unassigned. |
| 4 Includes three aircraft as of December 31, 2011 that were unassigned. |
|
5 Includes mark-to-market fuel hedge expense of $2.2 million and benefit of $(3.8) million for the year ended December 31, 2012 and 2011, respectively. |
| 6 Excludes $7.2 million and $200.2 million items for the year ended December 31, 2012 and 2011, respectively. |
| 7 Excludes $9.8 million of items for the year ended December 31, 2012. |
| 8 Excludes $15.5 million and $32.3 million of items for the year ended December 31, 2012 and 2011, respectively. |
Reconciliation of GAAP to non-GAAP measures:
The following tables present the reconciliation of results on a GAAP basis to the reported ex-item results for the three months and full years ended December 31, 2012 and 2011:
| Three months ended Dec. 31, 2012 | ||||||||||||||||||||||||
| Pre-tax by Segment | After-tax | Diluted Earnings | ||||||||||||||||||||||
| ($ in millions) | Republic | Frontier | Consolidated | Consolidated | Per share | |||||||||||||||||||
| GAAP income | $ | 19.8 | $ | 1.6 | $ | 21.4 | $ | 12.6 | $ | 0.25 | ||||||||||||||
| Adjustments: | ||||||||||||||||||||||||
| Restructuring and fleet transition expenses | 4.3 | 15.5 | 19.8 | 11.7 | 0.21 | |||||||||||||||||||
| Frequent flyer adjustment1 | (9.8 | ) | (9.8 | ) | (5.8 | ) | (0.11 | ) | ||||||||||||||||
| Ex-item income | $ | 24.1 | $ | 7.3 | $ | 31.4 | $ | 18.5 | $ | 0.35 | ||||||||||||||
1 Additional revenue related to the change in expiration of mileage earned under its frequent flyer program from 24 to 18 months
| Year ended Dec. 31, 2012 | ||||||||||||||||||||||||
| Pre-tax by Segment | After-tax | Diluted Earnings | ||||||||||||||||||||||
| ($ in millions) | Republic | Frontier | Consolidated | Consolidated | Per share | |||||||||||||||||||
| GAAP income | $ | 62.3 | $ | 23.9 | $ | 86.2 | $ | 51.3 | $ | 1.02 | ||||||||||||||
| Adjustments: | ||||||||||||||||||||||||
| Restructuring and fleet transition expenses | 4.3 | 15.5 | 19.8 | 11.8 | 0.21 | |||||||||||||||||||
| Loss, net on sale of assets | 2.9 | 2.9 | 1.7 | 0.03 | ||||||||||||||||||||
| Frequent flyer adjustment1 | (9.8 | ) | (9.8 | ) | (5.8 | ) | (0.11 | ) | ||||||||||||||||
| Ex-item income | $ | 69.5 | $ | 29.6 | $ | 99.1 | $ | 59.0 | $ | 1.15 | ||||||||||||||
1 Additional revenue related to the change in expiration of mileage earned under its frequent flyer program from 24 to 18 months
| Three months ended Dec. 31, 2011 | |||||||||||||||||||||||||
| Pre-tax by Segment | After-tax | Diluted Earnings | |||||||||||||||||||||||
| ($ in millions) | Republic | Frontier | Consolidated | Consolidated | Per share | ||||||||||||||||||||
| GAAP income (loss) | $ | (176.9 | ) | $ | (22.2 | ) | $ | (199.1 | ) | $ | (123.5 | ) | $ | (2.55 | ) | ||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Restructuring and fleet transition expenses | 9.1 | 32.3 | 41.4 | 25.7 | 0.51 | ||||||||||||||||||||
| Non-recurring impairment | 191.1 | - | 191.1 | 118.6 | 2.46 | ||||||||||||||||||||
| Ex-item income | $ | 23.3 | $ | 10.1 | $ | 33.4 | $ | 20.7 | $ | 0.41 | |||||||||||||||
| Year ended Dec. 31, 2011 | |||||||||||||||||||||||||
| Pre-tax by Segment | After-tax | Diluted Earnings | |||||||||||||||||||||||
| ($ in millions) | Republic | Frontier | Consolidated | Consolidated | Per share | ||||||||||||||||||||
| GAAP income (loss) | $ | (147.1 | ) | $ | (95.3 | ) | $ | (242.4 | ) | $ | (151.8 | ) | $ | (3.14 | ) | ||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Restructuring and fleet transition expenses | 9.1 | 32.3 | 41.4 | 25.9 | 0.54 | ||||||||||||||||||||
| Non-recurring impairment | 191.1 | - | 191.1 | 119.7 | 2.48 | ||||||||||||||||||||
| Ex-item income (loss) | $ | 53.1 | $ | (63.0 | ) | $ | (9.9 | ) | $ | (6.2 | ) | $ | (0.13 | ) | |||||||||||
|
Three months ended Dec. 31, |
Twelve months ended Dec. 31, |
|||||||||||||||||||||
| ($ in millions) | Frontier | TRASM (cents) | Frontier | TRASM (cents) | ||||||||||||||||||
| GAAP revenue | $ | 344.7 | 12.23 | $ | 1,433.5 | 12.04 | ||||||||||||||||
| Adjustments: | ||||||||||||||||||||||
| Frequent flyer adjustment1 | (9.8 | ) | (0.35 | ) | (9.8 | ) | (0.08 | ) | ||||||||||||||
| Ex-item revenue | $ | 334.9 | 11.88 | $ | 1,423.7 | 11.96 | ||||||||||||||||
1 Additional revenue related to the change in expiration of mileage earned under its frequent flyer program from 24 to 18 months
|
Three months ended Dec. 31, |
Twelve months ended Dec. 31, |
|||||||||||||||||
| ($ in millions) | Frontier | CASM (cents) | Frontier | CASM (cents) | ||||||||||||||
| GAAP operating expenses | $ | 341.7 | 12.13 | $ | 1,404.1 | 11.79 | ||||||||||||
| Adjustments: | ||||||||||||||||||
| Restructuring and fleet transition expenses | (15.5 | ) | (0.55 | ) | (15.5 | ) | (0.13 | ) | ||||||||||
| Ex-item operating expenses | $ | 326.2 | 11.58 | $ | 1,388.6 | 11.66 | ||||||||||||
|
Three months ended Dec. 31, |
Twelve months ended Dec. 31, |
|||||||||||||||||
| ($ in millions) | Frontier | CASM (cents) | Frontier | CASM (cents) | ||||||||||||||
| GAAP operating expenses | $ | 359.3 | 12.25 | $ | 1,419.2 | 12.05 | ||||||||||||
| Adjustments: | ||||||||||||||||||
| Restructuring and fleet transition expenses | (32.3 | ) | (1.10 | ) | (32.3 | ) | (0.28 | ) | ||||||||||
| Ex-item operating expenses | $ | 327.0 | 11.15 | $ | 1,386.9 | 11.77 | ||||||||||||