Form 8-K REPUBLIC AIRWAYS HOLDING For: Aug 05
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 5, 2015
Republic Airways Holdings Inc.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
000-49697 06-1449146
(Commission File Number) (IRS Employer Identification No.)
8909 Purdue Road
Suite 300
Indianapolis, IN 46268
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (317) 484-6000
None.
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On August 6, 2015, Republic Airways Holdings Inc. (the "Company") announced its results of operations for the quarter ended June 30, 2015. A copy of the Company's press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The press release furnished as Exhibit 99.1 contains financial measures that are not calculated in accordance with accounting principles generally accepted in the United States (GAAP). The non-GAAP financial measures included in the press release for certain periods are EBITDA and EBITDA margin from continuing operations. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the press release.
The non-GAAP financial information should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Management, however, believes that these non-GAAP financial measures, when used in conjunction with the results presented in accordance with GAAP, may provide a more complete understanding of the Company's results and may facilitate a fuller analysis of the Company's results, particularly in evaluating performance from one period to another. Management has chosen to provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analysis of results and to illustrate the results giving effect to the non-GAAP adjustments shown in the reconciliations. Management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Departure of Executive Vice President and Chief Financial Officer
On August 5, 2015, the Company announced the departure, effective September 1, 2015, of Timothy P. Dooley, Executive Vice President and Chief Financial Officer of the Company. Mr. Dooley no longer holds the position of Chief Financial Officer effective August 5, 2015.
Appointment of Senior Vice President and Chief Financial Officer
On August 5, 2015, the Company appointed Joe Allman as its Senior Vice President and Chief Financial Officer, effective August 5, 2015. Mr. Allman, age 44, joined the Company in 2007 and served as Vice President and Corporate Controller and then as Vice President of Financial Planning and Analysis, and Treasury since 2012. In addition to being a graduate of the U.S. Coast Guard Academy, where he earned a B.S. in Management, Mr. Allman gained extensive airline industry audit experience with London Witte Group LLC and Deloitte and Touche LLP. Mr. Allman does not have a family relationship with any member of the Company’s board of directors or any executive officer of the Company.
On August 5, 2015, the Company issued a press release announcing the departure and appointment of Mr. Dooley and Mr. Allman, respectively. A copy of the press release is filed herewith as Exhibit 99.2 and is incorporated herein by reference.
Appointment of Acting Chief Operating Officer
On August 6, 2015, the Company appointed Paul Kinstedt as its acting Chief Operating Officer, effective August 6, 2015. Mr. Kinstedt, age 54, joined the Company in 2002 and served as Vice President of Flight Operations since 2013 and has held prior leadership positions within System Operation Control since 2005. Mr. Kinstedt does not have a family relationship with any member of the Company’s board of directors or any executive officer of the Company.
Item 9.01 Financial Statements and Exhibits .
(d) Exhibits.
99.1 Press Release of Republic Airways Holdings Inc. issued on August 6, 2015, relating to its second quarter 2015 results.
99.2 Press Release of Republic Airways Holdings Inc. issued on August 5, 2015.
(All other items on this report are inapplicable.)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
REPUBLIC AIRWAYS HOLDINGS INC.
By: /s/ Joe Allman
Name: Joe Allman
Title: | Senior Vice President and Chief Financial Officer |
Dated: August 7, 2015
EXHIBIT INDEX
Exhibit Number Description
99.1 | Press Release of Republic Airways Holdings Inc. issued on August 6, 2015, relating to its second quarter 2015 results. |
99.2 | Press Release of Republic Airways Holdings Inc. issued on August 5, 2015. |
For Immediate Release:
Investor Relations Contact: Joe Allman
Republic Airways Holdings
Tel. (317) 246-2612
Republic Airways Holdings reports second quarter 2015 financial results
Indianapolis, Indiana (August 6, 2015) - Republic Airways Holdings Inc. (NASDAQ/NM: RJET) today reported financial results for the second quarter of 2015.
Republic's pre-tax income for the second quarter of 2015 was $9.1 million, compared to $33.3 million for the prior year's second quarter. Republic's net income for the second quarter of 2015 was $4.3 million, or $0.08 per diluted share compared to prior year net income of $20.1 million or $0.38 per diluted share. The effective tax rate of 52.7% for the quarter was higher than the normalized tax rate, primarily due to the impact of miscellaneous non-deductible expenses.
The second quarter 2015 financial results were negatively impacted by a significant reduction in operational reliability. The Company's controllable completion factor and operating revenues were significantly lower than expected due to a high number of pilot related cancellations as a result of the growing national pilot labor shortage and our on-going labor dispute with International Brotherhood of Teamsters (IBT).
The second quarter results were also negatively impacted by fleet transition costs and idled aircraft costs totaling $10.8 million associated with our removal of E190 and Q400 aircraft and surplus E145 aircraft.
The Company reported the following key metrics for the three and six months ended June 30, 2015, and 2014:
Three Months ended June 30, | Six Months ended June 30 | |||||||||||||||||||||
(Unaudited) | 2015 | 2014 | % Increase / Decrease | 2015 | 2014 | % Increase/Decrease | ||||||||||||||||
(in millions, except as noted with *) | ||||||||||||||||||||||
Available seat miles (ASMs) | 3,628 | 3,715 | (2.3 | )% | 7,118 | 7,081 | 0.5 | % | ||||||||||||||
Block hours (hours) | 182,357 | 191,748 | (4.9 | )% | 359,925 | 377,361 | (4.6 | )% | ||||||||||||||
Departures* | 103,761 | 106,499 | (2.6 | )% | 200,388 | 209,848 | (4.5 | )% | ||||||||||||||
Operating revenues | $ | 337.6 | $ | 343.0 | (1.6 | )% | $ | 678.6 | $ | 680.5 | (0.3 | )% | ||||||||||
Pre-tax income | $ | 9.1 | $ | 33.3 | (72.7 | )% | $ | 20.3 | $ | 56.1 | (63.8 | )% | ||||||||||
Pre-tax Margin* | 2.7 | % | 9.7 | % | -7.0 pts | 3.0 | % | 8.2 | % | -5.2 pts | ||||||||||||
Diluted earnings per share* | $ | 0.08 | $ | 0.38 | (78.9 | )% | $ | 0.21 | $ | 0.65 | (67.7 | )% | ||||||||||
EBITDA | $ | 85.9 | $ | 105.3 | (18.4 | )% | $ | 173.1 | $ | 199.2 | (13.1 | )% | ||||||||||
EBITDA margin* | 25.4 | % | 30.7 | % | -5.3 pts | 25.5 | % | 29.3 | % | -3.8 pts | ||||||||||||
Operating Revenue Highlights
Operating revenues decreased $5.4 million, or 1.6%, during the second quarter of 2015 to $337.6 million. Fixed-fee service revenue decreased $4.5 million, or 1.3%, to $332.6 million primarily due to a decrease in block hours flown and reduced revenues related to reimbursed aircraft ownership costs associated with aircraft temporarily removed from revenue service during the second quarter.
Operating Expense Highlights
Wages and benefits expenses increased 3.6%, or $3.3 million, primarily due to an increase in pilot wages. The cost per block hour for pilot salaries increased by more than 15%, due to seniority related contract wage increases and pilot premium pay incentive programs such as vacation buy-back and pilot open-time pickup.
Depreciation and amortization expense increased 10.7%, or $4.5 million, due primarily to the increase in the number of owned E175 aircraft.
Other expenses increased 31.0%, or $11.3 million, primarily due to an increase in fleet transition costs primarily related to the removal of Q400 and E190 aircraft coupled with costs for increased professional fees.
Balance Sheet and Liquidity Highlights
The Company's unrestricted cash balance decreased $32.3 million, to $191.6 million, from December 31, 2014, due mainly to scheduled principal repayments. A consolidated balance sheet and a condensed statement of cash flows have been included in the tables section of this release.
The Company's debt decreased to $2.25 billion as of June 30, 2015, compared to $2.34 billion at December 31, 2014, primarily related to the Company's scheduled principal repayments.
Recent Business Developments
On July 9, 2015, the IBT, representing Republic’s pilots, filed suit against the Company alleging that the Company unilaterally increased compensation for pilots and new hires in violation of the Railway Labor Act. We believe the suit is without merit, and the Company has filed a motion to dismiss. The motion is currently pending.
On July 24, 2015, the Company announced the engagement of Seabury Group as its advisor to restructure the Company's operational and financial commitments and explore all options to maintain the Company's enterprise value. The Company has initiated discussions with its CPA partners to further reduce flying schedules during the second half of 2015 and 2016. In light of the anticipated fleet reductions, the Company rescinded all previously issued financial and operational guidance on July 24, 2015.
On August 5, 2015, the Company announced that Tim Dooley resigned as Executive Vice President, Chief Financial Officer and appointed Joe Allman to Senior Vice President, Chief Financial Officer. Jason Secore assumed Mr. Allman's prior role as Vice President Finance and Treasurer.
On August 6, 2015, the Company received notice from the National Mediation Board scheduling the next mediated session on August 20, 2015, with the IBT National Airline Division, IBT Local 357, and the Company.
Today, the Company is announcing Paul Kinstedt as acting Chief Operating Officer. Paul joined the Company in January 2002 as Director of Systems Operations Control. He was promoted to Vice President of System Operations Control in September 2006 and served in that capacity until January 2013, when he was named Vice President of Flight Operations. He has a Bachelor of Science degree in Aviation Science from Parks College of Saint Louis University in St. Louis Missouri and his Masters of Business Administration from Illinois Benedictine College.
Corporate Information
Republic Airways Holdings Inc., based in Indianapolis, Indiana, is an airline holding company that owns Republic Airlines and Shuttle America, collectively “the airlines.” As of June 30, 2015, the airlines operate a combined fleet of about 240 aircraft and offer scheduled passenger service on about 1,250 flights daily to about 100 cities in the U.S. and Canada through fixed-fee flights operated under our major airline partner brands, including American Eagle, Delta Connection, United Express, and US Airways Express. The Company currently employs about 6,500 aviation professionals. For more information about Republic Airways, please visit our website at www.rjet.com.
The Company will conduct a telephone briefing to discuss its second quarter 2015 results at 11 a.m. (Eastern time) Friday, August 7, 2015. This call is being webcast by Thomson/Reuters and can be accessed at the Republic Airways Holdings' website, www.rjet.com. Those wishing to participate can do so by calling (866) 318-8614. International callers can participate by calling +1 (617) 399-5133; the passcode is 59165818.
To listen to a telephone replay of the webcast, call (888) 286-8010 and use password 39042126. International telephone replay will be available by calling +1 (617) 801-6888 and using the same password. The replay will be available from 3 p.m. (Eastern time) August 7, 2015, to 11:59 p.m. (Eastern time) August 14, 2015.
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 the Company's 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 the Company as of such date. The Company 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 CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) (In millions, except per share amounts) | |||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2015 | 2014 | % Increase / (Decrease) | 2015 | 2014 | % Increase / (Decrease) | ||||||||||||||||
OPERATING REVENUES: | |||||||||||||||||||||
Fixed-fee service | $ | 332.6 | $ | 337.1 | (1.3 | )% | $ | 668.1 | $ | 665.5 | 0.4 | % | |||||||||
Other | 5.0 | 5.9 | (15.3 | )% | 10.5 | 15.0 | (30.0 | )% | |||||||||||||
Total operating revenues | 337.6 | 343.0 | (1.6 | )% | 678.6 | 680.5 | (0.3 | )% | |||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||
Wages and benefits | 95.1 | 91.8 | 3.6 | % | 189.2 | 181.0 | 4.5 | % | |||||||||||||
Aircraft fuel | 3.9 | 5.6 | (30.4 | )% | 7.6 | 12.9 | (41.1 | )% | |||||||||||||
Landing fees and airport rents | 6.2 | 6.6 | (6.1 | )% | 12.1 | 13.8 | (12.3 | )% | |||||||||||||
Aircraft and engine rent | 31.1 | 31.3 | (0.6 | )% | 62.3 | 62.4 | (0.2 | )% | |||||||||||||
Maintenance and repair | 64.1 | 61.7 | 3.9 | % | 131.3 | 126.0 | 4.2 | % | |||||||||||||
Insurance and taxes | 4.9 | 4.4 | 11.4 | % | 9.8 | 10.9 | (10.1 | )% | |||||||||||||
Depreciation and amortization | 46.7 | 42.2 | 10.7 | % | 92.7 | 83.5 | 11.0 | % | |||||||||||||
Impairment and other charges | — | — | — | % | — | 19.9 | (100.0 | )% | |||||||||||||
Other | 47.7 | 36.4 | 31.0 | % | 94.5 | 72.9 | 29.6 | % | |||||||||||||
Total operating expenses | 299.7 | 280.0 | 7.0 | % | 599.5 | 583.3 | 2.8 | % | |||||||||||||
OPERATING INCOME | 37.9 | 63.0 | (39.8 | )% | 79.1 | 97.2 | (18.6 | )% | |||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||||
Interest expense | (30.1 | ) | (29.8 | ) | 1.0 | % | (60.1 | ) | (59.6 | ) | 0.8 | % | |||||||||
Fair value gain - restructuring asset | — | — | — | % | — | 18.4 | (100.0 | )% | |||||||||||||
Other, net | 1.3 | 0.1 | 1,200.0 | % | 1.3 | 0.1 | 1,200.0 | % | |||||||||||||
Total other expense | (28.8 | ) | (29.7 | ) | (3.0 | )% | (58.8 | ) | (41.1 | ) | 43.1 | % | |||||||||
INCOME BEFORE INCOME TAXES | 9.1 | 33.3 | (72.7 | )% | 20.3 | 56.1 | (63.8 | )% | |||||||||||||
INCOME TAX EXPENSE | 4.8 | 13.2 | (63.6 | )% | 9.6 | 22.0 | (56.4 | )% | |||||||||||||
NET INCOME | 4.3 | 20.1 | (78.6 | )% | 10.7 | 34.1 | (68.6 | )% | |||||||||||||
NET INCOME PER COMMON SHARE - BASIC | $ | 0.08 | $ | 0.40 | (80.0 | )% | 0.21 | 0.69 | (69.6 | )% | |||||||||||
NET INCOME PER COMMON SHARE - DILUTED | $ | 0.08 | $ | 0.38 | (78.9 | )% | 0.21 | 0.65 | (67.7 | )% | |||||||||||
Weighted average common shares: | |||||||||||||||||||||
Basic | 50.9 | 49.8 | 2.2 | % | 50.5 | 49.7 | 1.6 | % | |||||||||||||
Diluted | 51.0 | 52.9 | (3.6 | )% | 50.8 | 52.9 | (4.0 | )% | |||||||||||||
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In millions, except share and per share amounts) | |||||||
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 191.6 | $ | 223.9 | |||
Restricted cash | 20.1 | 21.7 | |||||
Receivables - net of allowance for doubtful accounts of $2.4 and $2.6, respectively | 28.4 | 20.7 | |||||
Inventories | 63.6 | 60.9 | |||||
Prepaid expenses and other current assets | 17.3 | 15.6 | |||||
Deferred income taxes | 16.4 | 16.4 | |||||
Total current assets | 337.4 | 359.2 | |||||
Aircraft and other equipment, net | 2,845.4 | 2,860.9 | |||||
Maintenance deposits | 49.7 | 53.2 | |||||
Intangible and other assets, net | 221.8 | 220.7 | |||||
Total assets | $ | 3,454.3 | $ | 3,494.0 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current Liabilities: | |||||||
Current portion of long-term debt | $ | 305.2 | $ | 309.0 | |||
Accounts payable | 27.7 | 19.3 | |||||
Accrued liabilities | 156.4 | 142.9 | |||||
Total current liabilities | 489.3 | 471.2 | |||||
Long-term debt - less current portion | 1,949.5 | 2,030.2 | |||||
Deferred credits and other non-current liabilities | 85.6 | 88.1 | |||||
Deferred income taxes | 293.7 | 284.0 | |||||
Total liabilities | 2,818.1 | 2,873.5 | |||||
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; 60,471,513 and 59,821,243 shares issued and 50,897,032 and 50,024,780 shares outstanding, respectively | — | — | |||||
Additional paid-in capital | 432.3 | 427.4 | |||||
Treasury stock, 9,546,147 shares at cost | (183.9 | ) | (183.9 | ) | |||
Accumulated other comprehensive loss | (2.1 | ) | (2.2 | ) | |||
Accumulated earnings | 389.9 | 379.2 | |||||
Total stockholders' equity | 636.2 | 620.5 | |||||
Total liabilities and stockholders' equity | $ | 3,454.3 | $ | 3,494.0 | |||
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In millions) | |||||||
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
NET CASH FROM OPERATING ACTIVITIES | $ | 118.3 | $ | 153.5 | |||
INVESTING ACTIVITIES: | |||||||
Purchase of aircraft and other equipment | (155.8 | ) | (286.8 | ) | |||
Proceeds from sale of aircraft and other assets | 89.5 | 8.6 | |||||
Aircraft deposits | (6.5 | ) | — | ||||
Change in restricted cash | 1.6 | (0.8 | ) | ||||
NET CASH USED IN INVESTING ACTIVITIES | (71.2 | ) | (279.0 | ) | |||
FINANCING ACTIVITIES: | |||||||
Payments on debt | (148.8 | ) | (146.8 | ) | |||
Proceeds from debt issuance and refinancing | 159.9 | 258.3 | |||||
Payments on early extinguishment of debt and refinancing | (91.0 | ) | — | ||||
Proceeds from exercise of stock options | 2.7 | 0.9 | |||||
Other, net | (2.2 | ) | (1.9 | ) | |||
NET CASH PROVIDED (USED) FROM FINANCING ACTIVITIES | (79.4 | ) | 110.5 | ||||
NET CHANGES IN CASH AND CASH EQUIVALENTS | (32.3 | ) | (15.0 | ) | |||
CASH AND CASH EQUIVALENTS—Beginning of period | 223.9 | 276.7 | |||||
CASH AND CASH EQUIVALENTS—End of period | $ | 191.6 | $ | 261.7 | |||
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES UNAUDITED OPERATING HIGHLIGHTS | |||||||||
Operating Highlights | Three Months Ended June 30, | ||||||||
2015 | 2014 | Change | |||||||
Operating aircraft at period end: | |||||||||
44-50 seats6 | 41 | 45 | (8.9 | )% | |||||
69-99 seats7 | 201 | 192 | 4.7 | % | |||||
Block hours4 | 182,357 | 191,748 | (4.9 | )% | |||||
Departures | 103,761 | 106,499 | (2.6 | )% | |||||
Passengers carried | 5,850,319 | 5,899,696 | (0.8 | )% | |||||
Revenue passenger miles ("RPM") (millions)1 | 2,947 | 3,036 | (2.9 | )% | |||||
Available seat miles ("ASM") (millions)2 | 3,628 | 3,715 | (2.3 | )% | |||||
Passenger load factor3 | 81.2 | % | 81.7 | % | -0.5 pts | ||||
Cost per ASM, including interest expense (cents) | 9.09 | 8.34 | 9.0 | % | |||||
Cost per ASM, including interest expense and excluding fuel expense (cents) | 8.98 | 8.19 | 9.6 | % | |||||
Average daily utilization of each aircraft (hours)5 | 9.2 | 9.8 | (6.1 | )% | |||||
Average length of aircraft flights (miles) | 493 | 503 | (2.0 | )% | |||||
Average seat density | 71 | 69 | 2.9 | % | |||||
1. | Revenue passenger miles are the number of scheduled miles flown by revenue passengers. |
2. | Available seat miles are the number of seats available for passengers multiplied by the number of scheduled miles those seats are flown. |
3. | Passenger load factor is revenue passenger miles divided by available seat miles. |
4. | Hours from takeoff to landing, including taxi time. |
5. | Average number of hours per day that an aircraft flown in revenue service is operated (from gate departure to gate arrival). |
6. | Excludes 11 owned E140 aircraft that were abandoned and four leased E140 aircraft that were permanently parked, seven owned and nine leased E145 aircraft that were temporarily parked, and one owned E135 aircraft and eight owned E145 aircraft that are leased to other operators, as of June 30, 2015. Excludes 11 owned E140 aircraft that were abandoned, 11 leased E145 aircraft and two owned E145 aircraft that were temporarily parked as of June 30, 2014. |
7. | Excludes five leased Q400 aircraft, of which; three were temporarily parked and two that were transitioned to Flybe and three owned E170 aircraft that are leased to other operators, as of June 30, 2015. Excludes two temporarily parked E190 aircraft as of June 30, 2014. |
REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES UNAUDITED OPERATING HIGHLIGHTS | |||||||||
Operating Highlights | Six Months Ended June 30, | ||||||||
2015 | 2014 | Change | |||||||
Operating aircraft at period end: | |||||||||
44-50 seats6 | 41 | 45 | (8.9 | )% | |||||
69-99 seats7 | 201 | 192 | 4.7 | % | |||||
Block hours4 | 359,925 | 377,361 | (4.6 | )% | |||||
Departures | 200,388 | 209,848 | (4.5 | )% | |||||
Passengers carried | 10,869,181 | 11,038,416 | (1.5 | )% | |||||
Revenue passenger miles ("RPM") (millions)1 | 5,565 | 5,602 | (0.7 | )% | |||||
Available seat miles ("ASM") (millions)2 | 7,118 | 7,081 | 0.5 | % | |||||
Passenger load factor3 | 78.2 | % | 79.1 | % | -0.9 pts | ||||
Cost per ASM, including interest expense (cents)8 | 9.27 | 8.82 | 5.1 | % | |||||
Cost per ASM, including interest expense and excluding fuel expense (cents) | 9.16 | 8.64 | 6.0 | % | |||||
Average daily utilization of each aircraft (hours)5 | 9.1 | 9.4 | (3.2 | )% | |||||
Average length of aircraft flights (miles) | 501 | 495 | 1.2 | % | |||||
Average seat density | 71 | 68 | 4.4 | % | |||||
1. | Revenue passenger miles are the number of scheduled miles flown by revenue passengers. |
2. | Available seat miles are the number of seats available for passengers multiplied by the number of scheduled miles those seats are flown. |
3. | Passenger load factor is revenue passenger miles divided by available seat miles. |
4. | Hours from takeoff to landing, including taxi time. |
5. | Average number of hours per day that an aircraft flown in revenue service is operated (from gate departure to gate arrival). |
6. | Excludes 11 owned E140 aircraft that were abandoned and four leased E140 aircraft that were permanently parked, seven owned and nine leased E145 aircraft that were temporarily parked, and one owned E135 aircraft and eight owned E145 aircraft that are leased to other operators, as of June 30, 2015. Excludes 11 owned E140 aircraft that were abandoned, 11 leased E145 aircraft and two owned E145 aircraft that were temporarily parked as of June 30, 2014. |
7. | Excludes five leased Q400 aircraft, of which; three were temporarily parked and two that were transitioned to Flybe and three owned E170 aircraft that are leased to other operators, as of June 30, 2015. Excludes two temporarily parked E190 aircraft as of June 30, 2014. |
8. | Costs (in 2014) includes total operating, interest and impairment expenses offset by fair value gain. Total operating and interest expenses, including impairment and fair value gain is not a calculation based on accounting principles generally accepted in the United States of America and should not be considered as an alternative to total operating expenses. Costs per available seat mile utilizing this measurement is included as it is a measurement recognized by the investing public relative to the airline industry. |
The Company is providing disclosure of the reconciliation of reported non-GAAP financial measures to its comparable GAAP basis financial measures. The Company believes that the non-GAAP financial measures provide investors meaningful measurements of the Company's financial performance.
EBITDA:
($ in millions) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net income | $ | 4.3 | $ | 20.1 | $ | 10.7 | $ | 34.1 | ||||||||
Plus: | ||||||||||||||||
Income tax expense | 4.8 | 13.2 | 9.6 | 22.0 | ||||||||||||
Interest expense | 30.1 | 29.8 | 60.1 | 59.6 | ||||||||||||
Depreciation and amortization | 46.7 | 42.2 | 92.7 | 83.5 | ||||||||||||
EBITDA | $ | 85.9 | $ | 105.3 | $ | 173.1 | $ | 199.2 | ||||||||
EBITDA margin % | 25.4 | % | 30.7 | % | 25.5 | % | 29.3 | % | ||||||||
For Immediate Release:
Republic Airways Holdings announces the departure of Executive Vice President,
Chief Financial Officer Tim Dooley and the appointment of Joe Allman to Senior Vice President, Chief Financial Officer
Indianapolis, Indiana (August 5, 2015) – Republic Airways Holdings Inc. (NASDAQ/NM: RJET) announced today that Executive Vice President and Chief Financial Officer Timothy P. Dooley will leave the Company on September 1 to pursue other interests. Mr. Dooley joined the Company in 1998 as Manager of Financial Planning and Analysis and was promoted to increasing levels of responsibility before being appointed as CFO in April of 2011.
“Tim has been a valuable part of the senior leadership team and will be missed,” said Republic CEO, Chairman and President Bryan Bedford. “In a turbulent industry, Tim has been a consistent, strong leader during his 17 years at Republic.”
“It’s never an easy decision to move on after 17 years, but I feel confident making that decision knowing that I am leaving behind such a capable and dedicated leadership team,” said Mr. Dooley.
Republic has made significant investments in its leadership team since last spring, with a focus on shaping the Company’s succession plan. In that effort, effective immediately the Company is announcing the appointment of Joe Allman to Senior Vice President and Chief Financial Officer. Mr. Allman joined Republic in 2007 and served as Vice President and Corporate Controller, and then as Vice President of Finance and Treasurer since 2012. In addition to being a graduate of the U.S. Coast Guard Academy, where he earned a B.S. in Management, Mr. Allman gained extensive finance operations experience in treasury, tax, accounting, internal audit and risk management in his prior management positions with Deloitte LLP and London Witte Group LLC.
Succeeding Mr. Allman as Vice President of Finance and Treasurer will be Jason Secore. Mr. Secore has a B.A. from Northwestern University, an M.S. in Economics from University of California - Davis, and an M.B.A. from Instituto de Empresa in Madrid, Spain. Mr. Secore joined Republic from U.S. Airways in 2012 as Director of Fuel Administration and was later promoted to the Managing Director of Treasury and Corporate Development, where he led the successful transformation of the Company’s treasury function.
Mr. Dooley will continue to be available to the Company to assist in the completion of several projects through the end of 2015 and to ensure a smooth leadership transition process.
“Joe and Jason have been instrumental in shaping the strategic direction of our finance group and are held in high esteem by their peers and our external business partners. They make an exceptional team and will each excel in their new responsibilities,” said Bedford.
Republic Airways Holdings Inc., based in Indianapolis, Indiana, is an airline holding company that owns Republic Airlines and Shuttle America, collectively called “the airlines.” The airlines operate a combined fleet of about 240 aircraft and offer scheduled passenger service with approximately 1,250 flights daily to about 100 cities in the U.S., Canada and the Caribbean through fixed-fee flights operated under our major airline partner brands of American Eagle, Delta Connection, United Express and US Airways Express. The airlines currently employ about 6,500 aviation professionals. For more about Republic Airways, please visit our website at www.rjet.com.
Contact:
Bob Birge
Corporate Communications
Republic Airways Holdings Inc.
(317) 471-2470