Dépêches
Avantair, Inc. Reports Fiscal 2011 and Its Fourth Quarter Financial Results
Dépèche transmise le 22 septembre 2011 par Business Wire
CLEARWATER, Fla.--(BUSINESS WIRE)--Avantair, Inc. (OTCBB: AAIR), the industry leader of fractional aircraft ownership, leases 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 2011 full year and fourth quarter which ended June 30, 2011.
“Avantair has managed through a difficult economic recovery and continues to improve its top line revenue and sales. These continued improvements, given the economy, further supports Avantair’s leadership role in the light jet category”
Full Year Fiscal 2011 Highlights:
- Total revenue grew 4.2% to $149.0 million, compared with $143.0 million in fiscal 2010.
- Fractional shares sold increased 153% to 19 from 7.5 sold during fiscal 2010. Flight hour cards sold increased 19% to 461 from 388 flight hour cards sold during fiscal 2010. The new Axis Lease program resulted in 30.5 new sales in fiscal 2011.
- Increased total number of revenue generating flight hours flown by 12.7% to 43,305 hours, compared with 38,419 hours in fiscal 2010.
- Operating loss of ($6.3) million and an EBITDA loss of ($2.1) million, compared with operating profit of $1.7 million and an EBITDA profit of $7.2 million in fiscal 2010. The 2011 loss is primarily attributed to a $7.7 million related to an increase in maintenance expense as a result of increased flight hours, fleet size and completion of aircraft maintenance acceleration to prepare for peak travel periods and increased hours.
- Net loss attributable to common stockholders was ($12.3) million, or ($0.46) per share, based on 26.4 million weighted average shares outstanding, compared with a net loss of ($5.5) million, or ($0.23) per share, based on 23.4 million weighted average shares outstanding in fiscal 2010.
- Cash position of $5.6 million, after having repaid $8.2 million in net debt, compared with cash of $9.4 million as of June 30, 2010.
- Increased fleet size to 56 aircraft, with the addition of one new Piaggio Avanti II aircraft.
Fourth Quarter Fiscal 2011 Highlights:
- Total revenue increased to $40.1 million, up 11.4% year-over-year.
- Fractional shares sold increased to 1 from .5 sold during fourth quarter of fiscal 2010. Flight cards sold decreased to 93 from 120 sold in fourth quarter of fiscal 2010. The new Axis Lease program resulted in 25 new sales in fourth quarter of fiscal 2011.
- Revenue generating flight hours flown increased 15% to 11,199 hours, from 9,725 hours for the fourth quarter of fiscal 2010. This compares with 10,582 revenue generating flight hours flown in the fiscal 2011 third quarter.
- Operating income was $129,000 compared with an operating loss of $432,000 for the fourth quarter of 2010.
- EBITDA increased to $1 million, compared with EBITDA of $.9 million in the fourth quarter of fiscal 2010.
- Net loss attributable to common stockholders of ($1.3) million, or ($0.05) per share, based on 26.4 million weighted average shares outstanding. This compares with a net loss attributable to common stockholders of ($2.0) million, or ($0.08) per share, based on 26.3 million weighted average shares outstanding for the fourth quarter of fiscal 2010.
“Avantair has managed through a difficult economic recovery and continues to improve its top line revenue and sales. These continued improvements, given the economy, further supports Avantair’s leadership role in the light jet category,” said Avantair’s Chief Executive Office Steven Santo. “During fiscal 2011, we improved our sales, continued to grow our customer base, introduced a new product – Axis Lease program – increased our revenue generating flight hours and continued to position the company to support our increasing operational sales requirements through accelerated maintenance, while paying down $8.2 million in net debt.
As the industry leader, we believe we are now better positioned to realize growth opportunities as we continue to build our brand and value proposition. Our collective focus will be to ensure the highest level of safety and exceed customer expectations as we continue to look for new ways to improve operational excellence to best serve our Company, our customers and our loyal shareholders,” Mr. Santo concluded.
Conference Call
Interested parties may participate in the conference call by dialing (1-888-771-4371 Audience US Toll Free) or (1-847-585-4405 Audience US Toll). For International Callers (001-847-585-4405 Toll) Confirmation Number: 30760130. When prompted, ask for the "Avantair Fiscal 2011 and Fourth Quarter Earnings Conference Call." The conference call will be webcast simultaneously on the Avantair, Inc. website at www.avantair.com under the Investors section.
A telephonic replay of the conference call may be accessed approximately two hours after the call through October 6, 2011 by dialing (1-888-843-7419 US Toll Free) (1-630-652-3042 US Toll) or (For International Callers 001-630-652-3042 Toll) The replay access code is 30760130#. The webcast replay will be available for 12 months at www.avantair.com
Use of Non-GAAP Measure of Performance
The following table reflects the reconciliation of net loss, prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) to the non-GAAP financial measure of EBITDA.
Three Months Ended June 30 | Full Fiscal Year | ||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||
GAAP net loss | $ | (938,681 | ) | $ | (1,646,008 | ) | $ | (10,775,921 | ) | $ | (3,968,558 | ) | |||||||||||||
Add: | |||||||||||||||||||||||||
Depreciation and amortization |
851,163 | 1,290,016 | 4,164,460 | 5,471,677 | |||||||||||||||||||||
Interest expense | 1,087,096 | 1,264,865 | 4,588,111 | 5,757,264 | |||||||||||||||||||||
Subtract: | |||||||||||||||||||||||||
Interest and other income | (19,640 | ) | (50,823 | ) | (69,556 | ) | (75,843 | ) | |||||||||||||||||
EBITDA | $ | 979,938 | $ | 858,050 | $ | (2,092,906 | ) | $ | 7,184,540 | ||||||||||||||||
The Company believes that the non-GAAP financial measure of EBITDA is useful to investors as it excludes certain non-cash expenses that do not directly relate to the operation of aircraft. This measure is a supplement 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 measure may not be comparable to non-GAAP measures of other companies.
About Avantair
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 over 500 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 57 aircraft. 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 accounting principles, generally accepted in the United States of America, changes in market acceptance of the company's products, inquiries and investigations and related litigation, fluctuations in customer demand, management of rapid growth, 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.
AVANTAIR, INC. AND SUBSIDIARIES Consolidated Balance Sheets |
|||||||||||
ASSETS |
|||||||||||
June 30, | June 30, | ||||||||||
2011 | 2010 | ||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 5,643,305 | $ | 9,446,619 | |||||||
Accounts receivable, net of allowance for doubtful accounts of
$231,357 |
12,202,020 | 10,976,129 | |||||||||
Inventory | 442,634 | 181,782 | |||||||||
Current portion of aircraft costs related to fractional share sales | 20,770,142 | 26,680,081 | |||||||||
Prepaid expenses and other current assets | 7,012,555 | 2,979,055 | |||||||||
Total current assets | 46,070,656 | 50,263,666 | |||||||||
Long-Term and Other Assets | |||||||||||
Aircraft costs related to fractional share sales, net of current portion | 9,913,793 | 43,461,597 | |||||||||
Property and equipment, at cost, net of accumulated depreciation
and |
36,733,929 | 22,583,073 | |||||||||
Cash - restricted | 2,361,851 | 2,358,558 | |||||||||
Deposits on aircraft | 9,500,988 | 7,883,834 | |||||||||
Deferred maintenance on aircraft engines | 266,087 | 603,515 | |||||||||
Goodwill | 1,141,159 | 1,141,159 | |||||||||
Other assets | 4,950,035 | 3,342,198 | |||||||||
Total long-term and other assets | 64,867,842 | 81,373,934 | |||||||||
Total assets | $ | 110,938,498 | $ | 131,637,600 |
AVANTAIR, INC. AND SUBSIDIARIES | ||||||||||||||
Consolidated Balance Sheets | ||||||||||||||
LIABILITIES AND STOCKHOLDERS' DEFICIT |
||||||||||||||
June 30, | June 30, | |||||||||||||
2011 | 2010 | |||||||||||||
Current Liabilities | ||||||||||||||
Accounts payable | $ | 5,908,979 | $ | 4,723,718 | ||||||||||
Accrued liabilities | 6,181,807 | 5,000,249 | ||||||||||||
Customer deposits | 2,082,160 | 1,358,988 | ||||||||||||
Short-term debt | 13,000,000 | 11,000,000 | ||||||||||||
Current portion of long-term debt | 7,856,117 | 4,202,726 | ||||||||||||
Current portion of deferred revenue related to fractional aircraft share sales | 23,550,037 | 32,770,605 | ||||||||||||
Unearned management fee, flight hour card and Axis Club Membership revenues | 51,437,316 | 35,126,401 | ||||||||||||
Total current liabilities | 110,016,416 | 94,182,687 | ||||||||||||
Long-Term Liabilities | ||||||||||||||
Long-term debt, net of current portion | 8,198,326 | 15,620,479 | ||||||||||||
Deferred revenue related to fractional aircraft share sales, net of current portion | 18,014,232 | 35,085,148 | ||||||||||||
Deferred revenue related to Axis Club Membership sales, net of current portion | 1,353,618 | 1,773,943 | ||||||||||||
Other liabilities | 2,658,945 | 2,520,537 | ||||||||||||
Total long-term liabilities | 30,225,121 | 55,000,107 | ||||||||||||
Total liabilities | 140,241,537 | 149,182,794 | ||||||||||||
Commitments and Contingencies | ||||||||||||||
Series A convertible preferred stock, $.0001 par value, authorized
300,000 shares; |
14,708,088 | 14,617,958 | ||||||||||||
Stockholders' Deficit | ||||||||||||||
Preferred stock, $.0001 par value, authorized 700,000 shares; none issued | - | - | ||||||||||||
Common stock, Class A, $.0001 par value, 75,000,000 shares
authorized, 26,418,246 |
2,642 | 2,635 | ||||||||||||
Additional paid-in capital | 57,212,099 | 56,896,831 | ||||||||||||
Accumulated deficit | (101,225,868 | ) | (89,062,618 | ) | ||||||||||
Total stockholders' deficit | (44,011,127 | ) | (32,163,152 | ) | ||||||||||
Total liabilities and stockholders' deficit | $ | 110,938,498 | $ | 131,637,600 |