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Old 10-19-2007, 06:40 PM   #1  
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Default Expressjet Reports Third Quarter 2007 Results

ExpressJet Reports Third Quarter 2007 Results

HOUSTON, Oct. 19 /PRNewswire-FirstCall/ -- ExpressJet Holdings, Inc. (NYSE: XJT) today reported a third quarter loss of $22.3 million, or $0.41 per share.

"We finished our transition of aircraft during the third quarter and continue to be pleased with how well the ExpressJet employees did in delivering the very best customer service. The quarter reflects the anticipated market development challenges associated with all of the new flying and the operational inefficiencies that come from a very rapid deployment into all of our new markets. I could not be happier with all of the hard work in getting these new lines of business operating and with how much progress we have made in such a short amount of time," said President and CEO Jim Ream.

THIRD QUARTER REVIEW

Operational Review

Third quarter net revenue totaled $441.3 million, consisting primarily of: $357.4 million from the company's contract flying, comprised of capacity purchase agreements with Continental Airlines and Delta Air Lines and of charter flying; $75.6 million from the branded operation, which includes flying as ExpressJet and pro-rate flying for Delta; and $9.9 million from the provision of third-party ground handling and maintenance services.

Available seat miles under the contract flying ExpressJet performed for Delta and Continental totaled 2.8 billion and represented 192,151 block hours across both systems.

In August, ExpressJet transitioned the final three aircraft from its capacity purchase agreement with Continental, resulting in a September 30 allocation of 224 aircraft in contract flying and 50 aircraft split between the Delta pro-rate agreement (8 aircraft) and ExpressJet flying (42 aircraft).

In the branded segment, the company ended the quarter with 534 million revenue passenger miles and a load factor of 61%. Statistics for October are trending similarly to results reported in July and August. ExpressJet continues to develop distribution channels aimed at increasing yield with recent reservation system enhancements providing travel agents additional booking functionality through their chosen global distribution system.

During the quarter, ExpressJet added non-stop routes between El Paso and Tucson as well as Bakersfield and Sacramento in its ExpressJet operation and, earlier this month, announced that it will add three new airports, Long Beach, Santa Barbara and Reno-Tahoe, to its ExpressJet operation as part of a larger schedule change that will take effect on November 11. The schedule updates are intended to broaden the scope of operations of the branded network, better matching frequencies with customer demand. The original April launch had 42 lines of flight, 24 cities served and 57 market pairs while the new schedule will have 36 lines of flight, 25 cities served and 65 market pairs.

Two to four aircraft removed from the ExpressJet Airlines system effective November 11 will be used in a short-term agreement with Frontier Airlines, Inc. ExpressJet Corporate Aviation will begin flying for Frontier November 15 from Denver to Billings, Wichita, Rapid City, Albuquerque, El Paso, and Oklahoma City to help cover routes planned for service via Lynx Aviation. The agreement is scheduled to end in January 2008. ExpressJet will also transition three additional aircraft to the Delta pro-rate agreement, for a total of 11 aircraft flying under that agreement, effective December 17.

Financial Review

ExpressJet's third quarter 2007 operating income reflected an (8.3%) operating margin. The principal factors contributing to these results were continued development of new flying for the 69 aircraft no longer covered under the company's capacity purchase agreement with Continental. ExpressJet also saw an average fuel price increase of 8% on increased volume of 89% compared with branded operations in second quarter 2007 and higher other operating expenses, including travel and hotel costs, in the contract operation.

ExpressJet ended the third quarter of 2007 with $253.8 million in cash and cash equivalents, including $15.3 million in restricted cash. Although Holdings did not make any purchases under its previously announced securities repurchase program, it intends to use a portion of its current cash balance to begin repurchasing stock under its previously announced securities repurchase program.

Capital expenditures totaled $11.5 million for the third quarter 2007 compared to $5.8 million during the same period in 2006. ExpressJet anticipates capital expenditures of approximately $2.0 million for the remainder of 2007.

ExpressJet will conduct a telephone briefing to discuss its third quarter results Monday, October 22, at 9:00 a.m. EDT (8:00 a.m. CDT). A live webcast of this briefing will be available online at expressjet.com -- investors.



Just saw this on our board over at Expressjetpilots.com, figured I would share..........
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Old 10-19-2007, 07:05 PM   #2  
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Good for you guys!

Looks like that evil union has really thrown a whole monkey wrench into your operation. lol... I talked with one of your union guys a few months back and he relayed how management wanted to get the ONT flying ASAP, they went to the union who had a vote, and within one week they were operational.

Don’t think for a second that a union will hamper your growth. You still get the expansion but at your terms, i.e. you can vote it down if they want you to fly 70 seat aircraft for 50 seat pay. Oh, and don’t think for a second that management will just give up on growth because you were not willing to fly 70 seat aircraft for 50 seat pay. Their job is to expand the company and increase share holder value, it they can’t do it they are replaced.

As you can see express jet is doing just fine with their union.....

Last edited by bla bla bla; 10-19-2007 at 07:33 PM.
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Old 10-19-2007, 07:20 PM   #3  
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Good for you guys!

Looks like that evil union has really thrown a whole monkey wrench into your operation. lol... I talked with one of your union guys a few months back and he relayed how management wanted to get the ont flying ASAP, they went to the union who had a vote, and within one week they were operational.

"]"During the quarter, Express Jet added non-stop routes between El Paso and Tucson as well as Bakersfield and Sacramento in its Express Jet operation and, earlier this month, announced that it will add three new airports, Long Beach, Santa Barbara and Reno-Tahoe, to its Express Jet operation as part of a larger schedule change that will take effect on November 11. The schedule updates are intended to broaden the scope of operations of the branded network, better matching frequencies with customer demand. The original April launch had 42 lines of flight, 24 cities served and 57 market pairs while the new schedule will have 36 lines of flight, 25 cities served and 65 market pairs.

Two to four aircraft removed from the Express Jet Airlines system effective November 11 will be used in a short-term agreement with Frontier Airlines, Inc. Express Jet Corporate Aviation will begin flying for Frontier November 15 from Denver to Billings, Wichita, Rapid City, Albuquerque, El Paso, and Oklahoma City to help cover routes planned for service via Lynx Aviation. The agreement is scheduled to end in January 2008. Express Jet will also transition three additional aircraft to the Delta pro-rate agreement, for a total of 11 aircraft flying under that agreement, effective December 17."


Donít think for a second that a union will hamper your growth. You still get the expansion but at your terms, i.e. you can vote it down if they want you to fly 70 seat aircraft for 50 seat pay. Oh, and donít think for a second that management will just give up on growth because you were not willing to fly 70 seat aircraft for 50 seat pay. Their job is to expand the company and increase share holder value, it they canít do it they are replaced.
Huh? dude you lost me somewhere
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Old 10-19-2007, 07:29 PM   #4  
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Sorry, kind of a poor post im in a hurry. Anyway my point is those who argue that a union at skyw will hamper our growth, and profitability. (i.e. quick up grades), it wont.
Refrence express jets profits......
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Old 10-19-2007, 10:38 PM   #5  
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While we still took a loss, this is all pretty promising. Fuel prices rose $38M since last year's 3Q, not to mention Branded flying is still growing and is still sucking up startup costs. If Branded keeps its upward trend (i.e. higher load factors as shown in this report) and costs associated with its startup can be cut, I'm very confident that we'll post a profit very shortly. The cost of oil spiked during this last quarter, which also hurt our bottom line (and the bottom line of every airline out there).

Don't just read the loss. Look at the trend, and the trend is looking up.
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Old 10-19-2007, 10:41 PM   #6  
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Oh, and XJT is one of the very few airline stocks to actually show a gain today (+11%). Somethin's a brewin'!
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Old 10-20-2007, 09:31 AM   #7  
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Sorry, kind of a poor post im in a hurry. Anyway my point is those who argue that a union at skyw will hamper our growth, and profitability. (i.e. quick up grades), it wont.
Refrence express jets profits......
What are you talking about? I can't correlate anything in your responses to the article that was posted.
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Old 10-20-2007, 12:07 PM   #8  
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What are you talking about? I can't correlate anything in your responses to the article that was posted.
yeah man, Im still lost too! lol
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Old 10-20-2007, 01:53 PM   #9  
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As you can see express jet is doing just fine with their union.....
Why does every new post on this forum turn into a pro (or anti) union thread? Personally, I think it's getting old.
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Old 10-20-2007, 06:45 PM   #10  
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Oh, and XJT is one of the very few airline stocks to actually show a gain today (+11%). Somethin's a brewin'!
I think you are right that something's brewing, but for the wrong reasons. The press release of the Q3 results was issued at 9:55 pm ET on a Friday. Not exactly the time you would release results if you wanted attention on them. After looking at the release it seems apparent why ExpressJet was hoping this would get overlooked during the weekend. The loss was double what Wall Street was looking for and yields were flat from Q2. The increase in load factor is encouraging, but the yields need to pick up considerably for the branded operation to succeed.

The runup of XJT stock on Friday may have been nothing more than people expecting an upside surprise from the earnings release that evening. Other airlines posted good numbers, and people might have been hoping to get in front of the same from XJT.

If you really want to find out what's brewing, look at the detailed results which will be released Monday, and listen to the conference call. Where XJT closes on Monday will be a much better indicator of what Wall Street thought of the last quarter and of future prospects.

P.S. Sorry to sound so negative. l have several friends at XJT, so I'm hoping for the airline to succeed.
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