CLEARWATER, Fla., Sept. 21, 2010 (GLOBE NEWSWIRE) -- Avantair, Inc. (OTCBB:AAIR), the industry leader of fractional aircraft ownership and flight hour time cards in the light-jet cabin category and the only publicly traded stand-alone private aircraft operator, today announced financial results for its fiscal 2010 full year and fourth quarter ended June 30, 2010.
Full Year Fiscal 2010 Highlights
- Total revenue grew 5% to $143.0 million, compared with $136.8 million in fiscal 2009.
- Operating income grew 20% to $1.7 million, compared with $1.4 million in fiscal 2009.
- Flight hour cards sold increased 143% to 388 from 160 flight hour cards sold during fiscal 2009. Axis Club Memberships increased to 51 in fiscal 2010, compared with 10 in fiscal 2009.
- EBITDA (earnings before interest, income taxes, depreciation and amortization) improved to $7.2 million, compared with $6.7 million in fiscal 2009.
- Net loss attributable to common stockholders improved to ($5.5) million, or ($0.23) per share, based on 23.4 million weighted average shares outstanding, compared with ($5.9) million, or ($0.39) per share, based on 15.3 million weighted average shares outstanding in fiscal 2009.
- Increased total number of revenue generating flight hours flown by 14% to 38,419 hours, compared with 33,624 hours in fiscal 2009.
- Completed $8.0 million private placement and received $5.5 million from the sale of aircraft and return of aircraft deposits.
- Improved cash position to $9.4 million, compared with cash of $3.8 million as of June 30, 2009, while having repaid $11.8 million in debt.
- Increased fleet size to 55 aircraft, with the addition of four new Piaggio Avanti II aircraft, offset by the sale of one older aircraft at a gain.
Fourth Quarter Fiscal 2010 Highlights:
- Total revenue increased to $36.0 million, up 6% year-over-year.
- Flight hour cards sold increased 135% to 120 from 51 flight hour cards sold during the fourth quarter of fiscal 2009. This compares with 82 flight hour cards sold in the fiscal 2010 third quarter.
- Revenue generating flight hours flown increased 17% to 9,725 hours, from 8,277 hours for the fourth quarter of fiscal 2009. This compares with 9,623 revenue generating flight hours flown in the fiscal 2010 third quarter.
- Operating loss was ($0.4) million compared with an operating income of $0.7 million for the fourth quarter of 2009. Adjusted non-GAAP loss from operations, excluding the gain on the sale of assets, was ($0.7) million for the fourth quarter of fiscal 2009. The fiscal 2010 period also included increased flight operations costs from the strategic acceleration of fleet maintenance to strengthen fleet availability in response to strong sales and an increasing customer base during subsequent peak travel periods.
- EBITDA of $0.9 million, compared with EBITDA of $2.3 million in the fourth quarter of fiscal 2009. Adjusted EBITDA, excluding the gain on the sale of assets, was $0.9 million for the fourth quarter of fiscal 2009.
- Net loss attributable to common stockholders of ($2.0) million, or ($0.08) per share, based on 26.3 million weighted average shares outstanding. This compares with a net loss attributable to common stockholders of ($1.4) million, or ($0.09) per share, based on 16.4 million weighted average shares outstanding for the fourth quarter of fiscal 2009. Adjusted non-GAAP net loss attributable to common stockholders, excluding the gain on the sale of assets, was ($2.8) million, or ($0.17) per share for the fourth quarter of fiscal 2009.
"Early on, we decided to offer private aircraft ownership solely in the most fuel efficient and environmentally friendly light-jet in the market. Because of that decision, and our superior customer service, Avantair has grown to become the leader in the light-jet market," said Steven Santo, Chief Executive Officer of Avantair. "During fiscal 2010, we posted strong annual sales, continued to grow our sizeable customer base, increased our revenue generating flight hours and considerably improved our cash position to $9.4 million while paying down nearly $12 million in debt. Our top line performance continues to be driven by increased revenue from our maintenance and management fees, supported by our flight hour time card and membership programs that boast a successful track record of growth. During the year, we more than doubled our revenue from our hourly card and membership programs, selling 388 flight hour cards and 51 new Axis Club memberships. This segment of our business continues to support our growth and attract new customers as we begin to demonstrate recovery to our fractional business, adding 7.5 new fractional shares during fiscal 2010.
"To strengthen fleet availability in response to increasing sales, our growing customer base, and in preparation for the upcoming peak travel seasons, we strategically accelerated our required fleet maintenance during the fourth quarter of 2010. While this proactive approach impacted our operating expense during the quarter, in moving the bulk of our routine annual maintenance schedule to the fiscal fourth and first quarters we expect to improve our utility by better aligning the availability of our fleet with the anticipated needs of our growing customer base. We are simultaneously working to negotiate the most favorable terms for funding additions to our fleet and expect to add approximately six new aircraft during fiscal 2011.
"With a keen eye toward achieving our goal of sustainable operating income and profitability, we have entered fiscal 2011 prepared to advance our Company to the next level. We are generating strong sales, which we believe will continue throughout fiscal 2011. Initiatives that we began early this year to improve our operating efficiencies are also tracking well. Our utility improvements are already beginning to take shape while simultaneously improving our revenue generating flight hours with a 14% gain on the hours flown for the June quarter alone, based in part on these efficiencies.
"As the industry leader, we are now better positioned than ever to realize new growth opportunities as we continue to build our Company, our brand and our value proposition. Our focus remains on achieving new sales goals and refining our operating efficiencies that improve our bottom line to best serve our Company, our customers and our loyal shareholders," Mr. Santo concluded.
Conference Call – Please note new dial-in number for international callers
Chief Executive Officer Steven Santo, Chief Financial Officer Richard Pytak and Chief Operating Officer Kevin Beitzel will host a conference call with the financial community on Tuesday, September 21, 2010, at 5:00 p.m. Eastern time to review the Company's financial results and provide an update on business developments.
Interested parties may participate in the conference call by dialing 1-877-941-2069 (480-629-9761 for international callers). When prompted, ask for the "Avantair, Inc. Fiscal 2010 and Fourth Quarter Earnings Conference Call." The live conference call will also be webcast on the Company's website at www.avantair.com under the Investors section and will be archived for 12 months.
A telephonic replay of the conference call may be accessed approximately two hours after the call through October 5, 2010, by dialing 800-406-7325 (303-590-3030 for international callers) and entering access code 4365467#.
Use of Non-GAAP Measures of Performance
The following table reflects the reconciliation of income from operations prepared in conformity with accounting principles generally accepted in the United States (GAAP), GAAP net income (loss) attributable to common stockholders and GAAP income (loss) per common share: basic and diluted to the non-GAAP financial measures of adjusted non-GAAP income from operations, adjusted non-GAAP net loss attributable to common stockholders and adjusted non-GAAP loss per common share: basic and diluted, respectively.
The following table reflects the reconciliation of GAAP net loss to the non-GAAP financial measures of EBITDA and to adjusted EBITDA:
The Company believes that the use of non-GAAP financial measures of adjusted non-GAAP income from operations, adjusted non-GAAP net loss attributable to common stockholders and adjusted non-GAAP loss per common share: basic and diluted, are useful to investors as they eliminate nonrecurring gains from the sale of assets recognized in fiscal 2010 and 2009 in order to provide information that reflects results from recurring operations.
The Company believes that EBITDA is useful to investors as it excludes certain non-cash expenses that do not directly relate to the operation of aircraft and that adjusted EBITDA is useful as it eliminates nonrecurring gains from the sale of assets recognized in fiscal 2010 and 2009 in order to provide information that reflects results from recurring operations.
These measures are supplements to accounting principles generally accepted in the United States used to prepare the Company's financial statements and should not be viewed as a substitute for GAAP measures. In addition, the Company's non-GAAP measures may not be comparable to non-GAAP measures of other companies.
Avantair, the sole North American provider of fractional shares, flight time cards and Axis Club Membership in the Piaggio Avanti aircraft, and the only publicly traded stand-alone private aircraft operator, is headquartered in Clearwater, FL, with approximately 450 employees. The Company offers private travel solutions for individuals and businesses traveling within its service area, which includes the continental United States, Canada, the Caribbean and Mexico, at a fraction of the cost of whole aircraft ownership. The Company currently manages a fleet of 55 aircraft, with another 52 Piaggio Avanti aircraft on order through 2013. For more information about Avantair, please visit: www.avantair.com.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to Avantair's future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as "trend," "potential," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate," "position," "assume," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" and similar expressions. Avantair cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and Avantair assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
In addition to factors previously disclosed in Avantair's filings with the Securities and Exchange Commission (SEC) and those as may be identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: general economic and business conditions in the U.S. and abroad, changing interpretations of generally accepted accounting principles, changes in market acceptance of the company's products, inquiries and investigations and related litigation, fluctuations in customer demand, management of rapid growth, and intensity of competition. The information set forth herein should be read in light of such risks. Avantair does not assume any obligation to update the information contained in this press release.
Avantair's filings with the SEC, accessible on the SEC's website at http://www.sec.gov, discuss these factors in more detail and identify additional factors that can affect forward-looking statements.
CONTACT: Avantair, Inc. Richard Pytak, Chief Financial Officer 727-538-7910 x.105 firstname.lastname@example.org The Piacente Group, Inc. Investor Relations Brandi Floberg 212-481-2050 email@example.com