CLEARWATER, Fla., May 12, 2009 (GLOBE NEWSWIRE) -- Avantair, Inc. (OTCBB:AAIR), the only publicly traded stand-alone private aircraft operator and the sole North American provider of fractional shares and flight hour time cards in the Piaggio Avanti aircraft, today announced financial results for its fiscal third quarter ended March 31, 2009.
Third Quarter Fiscal 2009 Highlights:
* Total revenues of $34.7 million, an increase of 15.7% as compared to $30.0 million for the three months ended March 31, 2008. * Operating income of $3.2 million, or $0.3 million excluding a $2.95 million non-recurring credit resulting from the termination of a vendor contract and reimbursement for services not performed. This compares with a loss from operations of ($5.2) million in the third quarter of 2008. * EBITDA profit (profitable results from operations before depreciation and amortization) of $4.5 million, or $1.5 million excluding the aforementioned non-recurring credit. This compares with an EBITDA loss of ($4.0) million in the third fiscal quarter of 2008. * Net income of $1.8 million, or $0.10 per basic and diluted share, or a net loss of ($1.1) million, or ($0.07) per share, excluding the aforementioned non-recurring credit. This compares with a net loss of ($5.4) million in the fiscal third quarter of 2008. * Launched industry's first hybrid flight program, 'The Axis Membership Club', designed to bridge the gap between the financial commitment of a fractional share and charter time cards. * Recorded a substantial increase in hours flown quarter-over quarter, and record hours flown in the third quarter. * Expanded fleet with delivery of 52nd aircraft.
Steven Santo, Chief Executive Officer of Avantair, stated, "Business was strong during the third quarter, exceeding our internal expectations and accelerating our profitability timeline. Our growth was driven by market share gains as awareness of Avantair's value proposition continued to build among consumers of private travel and resulted in our first quarterly operating profit in the company's history. The economic downturn has created compelling reasons for consumers of private travel to turn to Avantair given our historical position as the lowest-cost provider in the marketplace. This influx of new customers has quickly come to realize that Avantair is also a leader in quality, comfort, safety and fuel efficiency. This is driving greater acceptance of our brand in the light jet category, which coupled with a highly successful charter card program, is further accelerating sales and is best evidenced by an 81% increase in charter card sales year-over-year."
Mr. Santo continued, "Our milestone achievement of operating profitability clearly demonstrates the leverage inherent in our business model, which together with our revenue catalysts, positions us well for sustained profitability. With our brand now driving growth, supported by the right infrastructure and led by the right management team, we are well positioned to secure Avantair's success for the long-term."
Conference Call
Avantair will host a conference call to discuss financial results for its third quarter of fiscal 2009 and provide an update on business developments at 5:00 p.m. Eastern Time today. Investors may participate in the conference call by dialing 877-941-4774 (480-629-9760 for international callers). When prompted, ask for the "Avantair Inc. Fiscal Third Quarter 2009 Earnings Conference Call." A telephonic replay of the conference call may be accessed approximately two hours after the call through May 22, 2009, by dialing 800-406-7325 (303-590-3030 for international callers). The replay access code is 4075787#. The conference call will be webcast simultaneously on the Avantair Inc. website at www.avantair.com under Investors. The webcast replay will be archived for 12 months.
About Avantair
Avantair, the only publicly traded stand-alone private aircraft operator and the sole North American provider of fractional shares and flight hour time cards in the Piaggio Avanti aircraft, is headquartered in Clearwater, FL, with approximately 400 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 53 aircraft, with another 56 Piaggio Avanti aircraft on order through 2013. For more information about Avantair, please visit: http://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, 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
Condensed Consolidated Balance Sheets
ASSETS
------
March 31, June 30,
2009 2008
------------ ------------
CURRENT ASSETS
Cash and cash equivalents $ 5,932,904 $ 19,149,777
Accounts receivable, net of allowance for
doubtful accounts of $184,815 at
March 31, 2009 and $213,487 at
June 30, 2008 5,080,185 5,692,809
Inventory 125,188 252,407
Current portion of aircraft costs related
to fractional sales 38,735,670 40,417,203
Current portion of notes receivable 420,883 832,107
Prepaid expenses and other current assets 879,493 2,173,992
------------ ------------
Total current assets 51,174,323 68,518,295
------------ ------------
Aircraft costs related to fractional share
sales, net of current portion 78,247,776 92,383,071
------------ ------------
Property and equipment, at cost, net of
accumulated depreciation and amortization
of $13,104,726 at March 31, 2009 and
$8,989,277 at June 30, 2008 22,645,501 25,663,264
------------ ------------
OTHER ASSETS
Cash- restricted 2,583,213 2,826,290
Deposits on aircraft 9,113,924 8,679,277
Deferred maintenance on aircraft engines 1,667,577 2,228,509
Notes receivable-net of current portion -- 1,008,223
Goodwill 1,141,159 1,141,159
Other assets 1,555,767 2,029,367
------------ ------------
Total other assets 16,061,640 17,912,825
------------ ------------
Total assets $168,129,240 $204,477,455
============ ============
AVANTAIR, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
LIABILITIES AND STOCKHOLDERS' DEFICIT
-------------------------------------
March 31, June 30,
2009 2008
------------ ------------
CURRENT LIABILITIES
Accounts payable $ 3,973,998 $ 4,718,355
Accrued liabilities 4,340,687 5,528,472
Customer deposits 468,072 1,905,682
Short-term notes payable 16,359,110 15,775,260
Current portion of long-term notes payable 7,047,006 6,648,093
Current portion of deferred revenue
related to fractional aircraft share
sales 45,688,127 47,778,900
Unearned management fee and charter card
revenues 15,965,760 16,316,044
------------ ------------
Total current liabilities 93,842,760 98,670,806
------------ ------------
Long-term notes payable, net of current
portion 18,548,810 23,856,322
Deferred revenue related to fractional
aircraft share sales, net of current
portion 74,325,009 96,525,785
Other liabilities 2,794,015 2,636,730
------------ ------------
Total long-term liabilities 95,667,834 123,018,837
------------ ------------
Total liabilities 189,510,594 221,689,643
------------ ------------
COMMITMENTS AND CONTINGENCIES
Series A convertible preferred stock,
$.0001 par value, authorized 300,000
shares; 152,000 shares issued and
outstanding 14,506,136 14,439,358
------------ ------------
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, 15,320,415
shares issued and outstanding at
March 31, 2009 and 15,286,792 shares
issued and outstanding at June 30, 2008 1,532 1,529
Additional paid-in capital 44,471,978 45,314,393
Accumulated Deficit (80,361,000) (76,967,468)
------------ ------------
Total stockholders' deficit (35,887,490) (31,651,546)
------------ ------------
Total liabilities and stockholders'
deficit $168,129,240 $204,477,455
============ ============
AVANTAIR, INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Operations
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------ --------------------------
2009 2008 2009 2008
----------- ----------- ------------ ------------
Revenues
Fractional
aircraft sold $12,611,388 $11,183,245 $ 39,477,850 $ 31,633,495
Maintenance and
management fees 18,027,667 14,998,644 52,807,156 42,121,457
Charter card and
Axis membership
revenue 2,904,058 1,940,246 6,502,851 5,464,332
Other revenues 1,109,582 1,823,274 3,955,678 5,010,890
----------- ----------- ------------ ------------
Total revenue 34,652,695 29,945,409 102,743,535 84,230,174
----------- ----------- ------------ ------------
Operating
expenses
Cost of
fractional
aircraft shares
sold 10,692,513 9,404,328 33,620,690 26,373,438
Cost of flight
operations 12,792,261 13,322,523 37,001,228 38,809,119
Vendor service
reimbursement (2,951,867) -- (2,951,867) --
Cost of fuel 2,956,377 4,767,280 10,529,802 12,373,941
General and
administrative
expenses 5,962,230 5,499,457 17,451,537 14,852,400
Selling expenses 712,736 978,999 2,729,170 3,392,324
Depreciation and
amortization 1,240,262 1,132,865 3,640,783 2,878,978
----------- ----------- ------------ ------------
Total operating
expenses 31,404,512 35,105,452 102,021,343 98,680,200
----------- ----------- ------------ ------------
Income (loss)
from operations 3,248,183 (5,160,043) 722,192 (14,450,026)
----------- ----------- ------------ ------------
Other income
(expenses)
Interest income 12,963 83,316 38,872 418,169
Gain on sale of
assets -- 341,370 -- 341,370
Other income 748 -- 2,248 --
Interest expense (1,439,661) (705,222) (4,156,844) (1,855,053)
----------- ----------- ------------ ------------
Total other
expenses (1,425,950) (280,536) (4,115,724) (1,095,514)
----------- ----------- ------------ ------------
Net income (loss) 1,822,233 (5,440,579) (3,393,532) (15,545,540)
Preferred stock
dividend and
accretion of
expenses (364,053) (367,982) (1,127,670) (535,859)
----------- ----------- ------------ ------------
Net income (loss)
attributable to
common
stockholders $ 1,458,180 $(5,808,561) $ (4,521,202) $(16,081,399)
=========== =========== ============ ============
Earnings (loss)
per common
share:
Basic and
diluted $ 0.10 $ (0.38) $ (0.30) $ (1.06)
=========== =========== ============ ============
Weighted-average
common shares
outstanding:
Basic and
diluted 15,289,929 15,220,817 15,297,410 15,220,817
=========== =========== ============ ============