(Source: PRNewswire-FirstCall)
HOUSTON, May 6 /PRNewswire-FirstCall/ -- ExpressJet Holdings, Inc. today reported a first quarter loss, excluding special items, of $10.6 million or $0.62 per share versus $22.8 million or $4.45 for the same period in 2008. These results represent continued improvement from the restructuring efforts ExpressJet undertook beginning mid-2008 due to record-breaking fuel prices and its amended capacity purchase agreement with Continental Airlines. Including special items, ExpressJet reported a first quarter loss of $11.4 million or $0.67 per share.
"During this quarter we were able to maintain our cash position while keeping active in our securities repurchase program. This achievement emphasizes our focus on improving the balance sheet during the current tough, economic conditions while still providing some of the best customer service in the industry," said Jim Ream, President and Chief Executive Officer. Ream added, "We also continue to be pleased with our charter operation as it experienced reasonable growth in both our customer base and revenues despite the challenging obstacles created by the economic recession."
Operational Overview Scheduled Flying
Under its agreement with Continental, ExpressJet flew 157,606 block hours operating 214 aircraft. This represents a 9.5% decrease over block hours flown during first quarter 2008. The Continental Express average aircraft utilization during the quarter totaled 8.18 hours per day versus 9.33 hours per day during first quarter 2008. These operating metrics closely align with the airline industry trend of decreased passenger demand due to the global economic recession. As ExpressJet is paid for hours flown under its amended capacity purchase agreement with Continental, its results will continue to reflect macroeconomic factors impacting the airline industry.
In first quarter 2009, ExpressJet generated 1.7 billion revenue passenger miles on 2.4 billion available seat miles producing a load factor of 71.6% within the Continental Express network.
Corporate Aviation
ExpressJet increased revenues 26.6% year-over-year, excluding fuel because it is treated as a pass-through expense. ExpressJet's fleet within the Corporate Aviation division consisted of six 41-seat aircraft and 24 50-seat aircraft, totaling an operating fleet of 30 aircraft.
All Flying
ExpressJet operated 244 aircraft during first quarter 2009 compared to 274 aircraft during first quarter 2008.
Aviation Services
Added three stations to its aviation services division bringing the total to 31 stations ground handled by ExpressJet for Continental and other operators. Through these third-party agreements, ExpressJet handled 18,269 aircraft turns during the first quarter 2009.
Financial Overview
ExpressJet generated $169.7 million in revenue during the three months ended March 31, 2009. Under the amended capacity purchase agreement, Continental paid ExpressJet $144.2 million in block hour revenue and pass-through expense reimbursements. Revenue earned during the first quarter in the corporate aviation division totaled $16.1 million and first quarter revenue from aviation services totaled $9.5 million.
During the quarter, ExpressJet continued to benefit from the cost cutting performed during the second half of 2008 in response to record-breaking fuel prices and its amended capacity purchase agreement with Continental. However, ExpressJet continues to see wage pressure from the increasing seniority of its workforce given capacity reductions across the industry.
ExpressJet ended the first quarter 2009 with $117.1 million in cash, cash equivalents and short-term investments. The cash balance included $22.4 million in restricted cash and $37.6 million in short-term investments after sales and accounting adjustments to impair the value of these assets.
During the quarter, ExpressJet monetized $4.2 million face value in auction rate securities and realized $3.6 million on the sale. ExpressJet also entered into an agreement with Citigroup Global Markets, Inc. for a $5 million revolving line of credit secured by the auction rate securities sold to ExpressJet by Citigroup. ExpressJet intends to continue monitoring the auction rate securities market to attempt to monetize the assets at or near face value and initiated litigation against Royal Bank of Canada related to such investments brokered by the firm.
ExpressJet also closed the sale of its Miami Composite facility, American Composites, LLC, and related real estate during the quarter for approximately $5.5 million in proceeds.
