Well here it is, the plans for Expressjet!
01-24-2007, 09:22 AM
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Well here it is, the plans for Expressjet!
EXPRESSJET REPORTS FOURTH QUARTER, FULL YEAR EARNINGS AND ANNOUNCES PLANS FOR 69 JETS
HOUSTON, Jan. 24, 2007 - ExpressJet Holdings, Inc. (NYSE:XJT) today reported fourth quarter net income of $22.8 million, or $0.39 diluted earnings per share. For the year ended December 31, 2006, net income totaled $92.6 million, or $1.56 diluted earnings per share.
ExpressJet turned in outstanding operating results during the quarter as evidenced by a 100% completion rate on eight days during the busy holiday travel season, and ended the quarter with a total controllable completion factor of 99.9%, excluding cancellations for weather and air traffic control.
Also during the quarter, the company finalized its plans for the 69 aircraft that will be released from its capacity purchase agreement with Continental Airlines in 2007.
“Our employees continue to concentrate on running a great operation and providing superior customer service. We are excited to expand that focus as we begin pursuing other opportunities,†said President and CEO Jim Ream.
FOURTH QUARTER REVIEW
Operational Review
Fourth quarter operating revenue increased 5.1% to $425.8 million, versus $405 million in the fourth quarter of 2005. Compared to the same period last year, ExpressJet Airlines grew its capacity 5.8% to 3.3 billion available seat miles. Revenue passenger miles were up 7.4%, resulting in a 1.2 point year-over-year increase in load factor to 77.3%. For the fourth quarter, the controllable completion factor was 99.9% and the overall completion factor was 97.1%. For the year 2006, ExpressJet Airlines carried over 18 million passengers, 13% more than in 2005, and operated an average of over 1,300 daily departures.
On December 31, ExpressJet Airlines’s new Corporate Aviation division operated its inaugural charter flight and to date has flown 205 segments and 276 block hours. Six aircraft are currently operating in the Corporate Aviation division, and the company intends to grow the charter fleet to 15 aircraft.
Also during the quarter, ExpressJet continued discussions with a prospective U.S. partner to operate ten EMB-145XR aircraft under a capacity purchase agreement. ExpressJet expects to complete these negotiations during first quarter 2007 and to make an announcement once definitive agreements are executed.
ExpressJet currently plans to use 44 aircraft to launch branded service in markets that are sized appropriately for these aircraft and typically do not have direct flight options today. Service to 24 cities in the West, Midwest and Southeast United States will begin in April and May 2007. ExpressJet will begin selling tickets on www.xjet.com February 1 and through other preferred travel agency partners by March. Product features will include free XM Satellite radio with over 100 channels of programming, advanced seat assignments with no middle seats and complimentary snacks and meals on longer flights.
Ream said, “With 80% of our fleet committed to capacity purchase agreements, allocating 20% into markets that offer more strategic control and a greater potential for future growth is the right mix for ExpressJet.â€
ExpressJet and Continental have been unable to agree on rates for 2007 and are submitting their disagreements to binding arbitration in accordance with the terms of the capacity purchase agreement. The agreement sets forth procedures and a schedule that will likely result in a hearing and issuance of a final decision by the arbitration panel in the late second or early third quarter of 2007. ExpressJet will continue to be paid under the 2006 block hour rates during the arbitration and expects the decision setting the revised rate structure to be retroactive to January 1, 2007. ExpressJet does not intend to issue any reports on the progress of the arbitration until the panel issues its final decision.
Financial Review
ExpressJet’s fourth quarter 2006 operating income reflected a 7.9% operating margin, as compared with an operating margin of 9.8% for the fourth quarter 2005. For the fourth quarter 2006, ExpressJet Airlines earned a 10% operating margin under its agreement with Continental, but expenses not covered by this agreement for items related to the company’s strategic diversification and for back-office infrastructure to implement services previously performed for the company by Continental reduced the overall consolidated margin.
ExpressJet ended the fourth quarter 2006 with $302.9 million in cash and cash equivalents, including $11.2 million in restricted cash.
For the year ended December 31, 2006, ExpressJet’s operating income reflected an 8.4% operating margin, compared to 10.0% during the prior year. For the full year, ExpressJet’s quarterly results consistently exceeded the contractual operating margin band of 10% contemplated in the capacity purchase agreement, leading to a total rebate of $7.3 million to Continental, as compared to $23.4 million rebated during 2005.
Capital expenditures totaled $12.1 million for the fourth quarter 2006 compared to $7.4 million during the same period in 2005. ExpressJet anticipates expenditures totaling approximately $45 million for the full year 2007.
During the fourth quarter, Holdings did not make any purchases under its previously announced securities repurchase program.
ExpressJet will conduct a telephone briefing to discuss its fourth quarter results Wednesday, Jan. 24, at 10:00 a.m. EDT (9:00 a.m. CDT). A live webcast of this briefing will be available online at expressjet.com - investor relations.
CORPORATE BACKGROUND
ExpressJet Holdings operates numerous divisions designed to leverage its management experience, efficiencies and economies of scale present in its subsidiaries, including ExpressJet Airlines, Inc. and ExpressJet Services, LLC. ExpressJet Airlines’ multiple operations include capacity purchase agreements for mainline carriers serving over 150 destinations in North and Central American with more than 1,300 departures per day; corporate aviation, providing clients customized 50-seat travel options; training services through its world-class facility in Houston, Texas; and branded flying, providing non-stop service to markets concentrated in the West, Midwest and Southeast regions of the United States. ExpressJet Services is the North American partner to three major European original equipment manufacturers and provides composite, sheet metal, interior and thrust reverser repairs throughout five facilities in the United States. For more information, visit expressjet.com.
Some of the statements in this document are forward-looking statements that involve a number of risks and uncertainties. Many factors could affect actual results, and variances from current expectations regarding these factors could cause actual results to differ materially from those expressed in these forward-looking statements. Some of the known risks that could significantly impact results include: the company’s dependence on its capacity purchase agreement with Continental; the company’s dependence on Continental's financial and operational stability; the company’s aircraft and facility leases with Continental; the company’s ability to implement its growth and diversification strategies, including the profitable use of the 69 aircraft outside of the Continental capacity purchase agreement; flight disruptions as a result of operational matters; regulatory requirements; and competition and industry conditions. Additional information concerning risk factors that could affect the company’s actual results are described in its filings with the Securities and Exchange Commission, including its 2005 annual report on Form 10-K. The events described in the forward-looking statements might not occur or might occur to a materially different extent than described herein. The company undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
HOUSTON, Jan. 24, 2007 - ExpressJet Holdings, Inc. (NYSE:XJT) today reported fourth quarter net income of $22.8 million, or $0.39 diluted earnings per share. For the year ended December 31, 2006, net income totaled $92.6 million, or $1.56 diluted earnings per share.
ExpressJet turned in outstanding operating results during the quarter as evidenced by a 100% completion rate on eight days during the busy holiday travel season, and ended the quarter with a total controllable completion factor of 99.9%, excluding cancellations for weather and air traffic control.
Also during the quarter, the company finalized its plans for the 69 aircraft that will be released from its capacity purchase agreement with Continental Airlines in 2007.
“Our employees continue to concentrate on running a great operation and providing superior customer service. We are excited to expand that focus as we begin pursuing other opportunities,†said President and CEO Jim Ream.
FOURTH QUARTER REVIEW
Operational Review
Fourth quarter operating revenue increased 5.1% to $425.8 million, versus $405 million in the fourth quarter of 2005. Compared to the same period last year, ExpressJet Airlines grew its capacity 5.8% to 3.3 billion available seat miles. Revenue passenger miles were up 7.4%, resulting in a 1.2 point year-over-year increase in load factor to 77.3%. For the fourth quarter, the controllable completion factor was 99.9% and the overall completion factor was 97.1%. For the year 2006, ExpressJet Airlines carried over 18 million passengers, 13% more than in 2005, and operated an average of over 1,300 daily departures.
On December 31, ExpressJet Airlines’s new Corporate Aviation division operated its inaugural charter flight and to date has flown 205 segments and 276 block hours. Six aircraft are currently operating in the Corporate Aviation division, and the company intends to grow the charter fleet to 15 aircraft.
Also during the quarter, ExpressJet continued discussions with a prospective U.S. partner to operate ten EMB-145XR aircraft under a capacity purchase agreement. ExpressJet expects to complete these negotiations during first quarter 2007 and to make an announcement once definitive agreements are executed.
ExpressJet currently plans to use 44 aircraft to launch branded service in markets that are sized appropriately for these aircraft and typically do not have direct flight options today. Service to 24 cities in the West, Midwest and Southeast United States will begin in April and May 2007. ExpressJet will begin selling tickets on www.xjet.com February 1 and through other preferred travel agency partners by March. Product features will include free XM Satellite radio with over 100 channels of programming, advanced seat assignments with no middle seats and complimentary snacks and meals on longer flights.
Ream said, “With 80% of our fleet committed to capacity purchase agreements, allocating 20% into markets that offer more strategic control and a greater potential for future growth is the right mix for ExpressJet.â€
ExpressJet and Continental have been unable to agree on rates for 2007 and are submitting their disagreements to binding arbitration in accordance with the terms of the capacity purchase agreement. The agreement sets forth procedures and a schedule that will likely result in a hearing and issuance of a final decision by the arbitration panel in the late second or early third quarter of 2007. ExpressJet will continue to be paid under the 2006 block hour rates during the arbitration and expects the decision setting the revised rate structure to be retroactive to January 1, 2007. ExpressJet does not intend to issue any reports on the progress of the arbitration until the panel issues its final decision.
Financial Review
ExpressJet’s fourth quarter 2006 operating income reflected a 7.9% operating margin, as compared with an operating margin of 9.8% for the fourth quarter 2005. For the fourth quarter 2006, ExpressJet Airlines earned a 10% operating margin under its agreement with Continental, but expenses not covered by this agreement for items related to the company’s strategic diversification and for back-office infrastructure to implement services previously performed for the company by Continental reduced the overall consolidated margin.
ExpressJet ended the fourth quarter 2006 with $302.9 million in cash and cash equivalents, including $11.2 million in restricted cash.
For the year ended December 31, 2006, ExpressJet’s operating income reflected an 8.4% operating margin, compared to 10.0% during the prior year. For the full year, ExpressJet’s quarterly results consistently exceeded the contractual operating margin band of 10% contemplated in the capacity purchase agreement, leading to a total rebate of $7.3 million to Continental, as compared to $23.4 million rebated during 2005.
Capital expenditures totaled $12.1 million for the fourth quarter 2006 compared to $7.4 million during the same period in 2005. ExpressJet anticipates expenditures totaling approximately $45 million for the full year 2007.
During the fourth quarter, Holdings did not make any purchases under its previously announced securities repurchase program.
ExpressJet will conduct a telephone briefing to discuss its fourth quarter results Wednesday, Jan. 24, at 10:00 a.m. EDT (9:00 a.m. CDT). A live webcast of this briefing will be available online at expressjet.com - investor relations.
CORPORATE BACKGROUND
ExpressJet Holdings operates numerous divisions designed to leverage its management experience, efficiencies and economies of scale present in its subsidiaries, including ExpressJet Airlines, Inc. and ExpressJet Services, LLC. ExpressJet Airlines’ multiple operations include capacity purchase agreements for mainline carriers serving over 150 destinations in North and Central American with more than 1,300 departures per day; corporate aviation, providing clients customized 50-seat travel options; training services through its world-class facility in Houston, Texas; and branded flying, providing non-stop service to markets concentrated in the West, Midwest and Southeast regions of the United States. ExpressJet Services is the North American partner to three major European original equipment manufacturers and provides composite, sheet metal, interior and thrust reverser repairs throughout five facilities in the United States. For more information, visit expressjet.com.
Some of the statements in this document are forward-looking statements that involve a number of risks and uncertainties. Many factors could affect actual results, and variances from current expectations regarding these factors could cause actual results to differ materially from those expressed in these forward-looking statements. Some of the known risks that could significantly impact results include: the company’s dependence on its capacity purchase agreement with Continental; the company’s dependence on Continental's financial and operational stability; the company’s aircraft and facility leases with Continental; the company’s ability to implement its growth and diversification strategies, including the profitable use of the 69 aircraft outside of the Continental capacity purchase agreement; flight disruptions as a result of operational matters; regulatory requirements; and competition and industry conditions. Additional information concerning risk factors that could affect the company’s actual results are described in its filings with the Securities and Exchange Commission, including its 2005 annual report on Form 10-K. The events described in the forward-looking statements might not occur or might occur to a materially different extent than described herein. The company undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
01-24-2007, 09:56 AM
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Yeah Im kinda scared I have only been here since OCT, I have like 250, maybe even 300 guys underneath me already but that wont be enough if things go south, but I think its going to work out, I really do, its not that many planes, CAL makes us cash, Charter makes us cash, and we arent competing directly with anybody, i.e. INDY Air, everybody pray for us 
01-24-2007, 10:02 AM
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Originally Posted by SAABaroowski
Yeah Im kinda scared I have only been here since OCT, I have like 250, maybe even 300 guys underneath me already but that wont be enough if things go south, but I think its going to work out, I really do, its not that many planes, CAL makes us cash, Charter makes us cash, and we arent competing directly with anybody, i.e. INDY Air, everybody pray for us
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