CLEARWATER, Fla., Nov. 13, 2012 (GLOBE NEWSWIRE) -- Avantair, Inc. (OTCBB:AAIR), the industry leader of fractional aircraft ownership in the light jet cabin category and the only publicly traded stand-alone private aircraft operator, today announced financial results for its fiscal 2013 first quarter, which ended September 30, 2012.
Fiscal 2013 First Quarter Performance:
- Non-GAAP Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation, employee termination and other costs, loss on sale of asset, and gain on debt extinguishment) increased by $2.7 million to approximately $2.2 million, compared to negative Adjusted EBITDA of ($0.5) million in the first quarter of fiscal 2012.
- Net loss attributable to common stockholders for the first quarter ended September 30, 2012 was ($1.3) million, or ($0.05) per share, based on 26.6 million weighted average shares outstanding, and included $0.1 million related to employee termination and other costs. This compared with a net loss attributable to common stockholders of ($2.6) million, or ($0.10) per share, based on 26.4 million weighted average shares outstanding in the first quarter of fiscal 2012.
- Total revenue for the first quarter of fiscal 2013 of $42.9 million compared to fiscal 2012 first quarter revenue of $43.0 million.
- Total number of revenue-generating flight hours flown for the first quarter fiscal 2013 decreased by 0.2% to 11,343, compared with 11,366 hours flown in the fiscal 2012 first quarter.
Subsequent to September 30, 2012:
- During late October through mid-November, the company voluntarily stood down its fleet in order to complete a thorough review of the maintenance records and inspection of its aircraft.
"On October 25th, we stood down our fleet in order to inspect all of our aircraft and at the same time move forward with implementing safety systems compatible with major airlines," said Steven Santo, Chief Executive Officer of Avantair. "I am pleased that over the weekend we began returning our fleet to the air. We are adding additional aircraft daily and expect most of the fleet to resume flying by the Thanksgiving Holiday. As we now move on from this challenging period for our company, our safety standards are ahead of where all standards are likely to be in the near future."
Conference Call
Chief Executive Officer Steven Santo, President Stephen Wagman and Chief Financial Officer Carla Stucky will hold a conference call with the financial community on Tuesday, November 13, 2012 at 5 p.m. ET to review the company's financial results and provide an update on business developments.
Interested parties may participate in the conference call by dialing: 1-888-895-5271 U.S. Toll Free or 1-847-619-6547 U.S. Toll. For international callers, dial 1-847-619-6547. When prompted, give Confirmation Number: 33746044 or ask for "Avantair's First Quarter Fiscal 2013 Earnings Conference Call." The live conference call will also be webcast on the company's 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 November 27, 2012, by dialing 1-888-843-7419 U.S. Toll Free or 1-630-652-3042 US Toll. For international callers, dial 1-630-652-3042. When prompted key in the Passcode: 33746044#.
Use of Non-GAAP Measure of Performance
The following table reflects the reconciliation of net loss, prepared in conformity with GAAP to the non-GAAP financial measure of Adjusted EBITDA (in thousands):
| Three Months Ended | ||
| September 30, | ||
| 2012 | 2011 | |
| Net Loss | $ (970) | $ (2,180) |
| Add: | ||
| Depreciation and amortization | 1,451 | 930 |
| Interest expense | 992 | 1,056 |
| Stock-based compensation | 154 | 173 |
| Employee termination and other costs | 100 | -- |
| Loss on sale of asset | 477 | -- |
| Subtract: | ||
| Interest and other income | (18) | (66) |
| Gain on debt extinguishment | -- | (439) |
| Adjusted EBITDA | 2,186 | (526) |
The company believes that the non-GAAP financial measure of Adjusted EBITDA is useful to investors as it excludes other income and expense items that do not directly reflect the underlying performance of the company's business operations. 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.
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 U.S., 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.
About Avantair
Avantair, the sole North American provider of fractional shares, leases and flight hour cards in the Piaggio Avanti aircraft, and the only publicly traded stand-alone private aircraft operator, is headquartered in Clearwater, FL, with approximately 500 employees. Avantair offers private travel solutions for individuals and businesses traveling within its service area, which includes the continental U.S., parts of 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.
The Avantair, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14936
| AVANTAIR, INC. AND SUBSIDIARIES | ||
| Condensed Consolidated Balance Sheets | ||
| (Amounts in Thousands, Except Share Data) | ||
| ASSETS | September 30, 2012 | June 30, 2012 |
| (Unaudited) | (Note 2) | |
| Current Assets | ||
| Cash and cash equivalents | $ 1,272 | $ 5,302 |
| Accounts receivable, net of allowance of $1,420 and $1,340, respectively | 10,960 | 11,707 |
| Inventory | 201 | 155 |
| Current portion of aircraft costs related to fractional share sales | 5,907 | 8,458 |
| Prepaid expenses and other current assets | 6,657 | 3,830 |
| Total current assets | 24,997 | 29,452 |
| Long-Term Assets | ||
| Aircraft costs related to fractional share sales, net of current portion | 952 | 1,691 |
| Property and equipment, net | 37,639 | 40,136 |
| Cash - restricted | 2,266 | 2,226 |
| Deposits on aircraft | 7,329 | 7,193 |
| Goodwill | 1,141 | 1,141 |
| Other assets | 9,902 | 9,443 |
| Total long-term assets | 59,229 | 61,830 |
| Total assets | $ 84,226 | $ 91,282 |
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
| Current Liabilities | ||
| Accounts payable | $ 9,241 | $ 9,051 |
| Accrued liabilities | 6,827 | 6,393 |
| Customer deposits | 3,223 | 3,115 |
| Short-term debt | 6,000 | 12,000 |
| Current portion of long-term debt | 4,731 | 4,652 |
| Current portion of deferred revenue related to fractional aircraft share sales | 7,218 | 9,995 |
| Unearned management fee, flight hour card and club membership revenue | 57,907 | 60,015 |
| Total current liabilities | 95,147 | 105,221 |
| Long-Term Liabilities | ||
| Long-term debt, net of current portion | 17,605 | 13,753 |
| Deferred revenue related to fractional aircraft share sales, net of current portion | 6,897 | 8,179 |
| Deferred revenue related to club membership revenue, net of current portion | 108 | 213 |
| Other liabilities | 3,077 | 2,465 |
| Total long-term liabilities | 27,687 | 24,610 |
| Total liabilities | 122,834 | 129,831 |
| COMMITMENTS AND CONTINGENCIES | ||
| Series A convertible preferred stock, $.0001 par value, authorized 300,000 shares; 152,000 shares issued and outstanding | 14,822 | 14,799 |
| STOCKHOLDERS' DEFICIT | ||
| Preferred stock, $.0001 par value, authorized 700,000 shares; none issued or outstanding | -- | -- |
| Common stock, Class A, $.0001 par value, 75,000,000 shares authorized, 28,701,634 and 26,497,468 shares issued and outstanding, respectively | 3 | 3 |
| Additional paid-in capital | 59,060 | 57,830 |
| Accumulated deficit | (112,493) | (111,181) |
| Total stockholders' deficit | (53,430) | (53,348) |
| Total liabilities and stockholders' deficit | $ 84,226 | $ 91,282 |
| AVANTAIR, INC. AND SUBSIDIARIES | ||
| Condensed Consolidated Statements of Operations | ||
| (Amounts in Thousands, Except Share Data) | ||
| (Unaudited) | ||
| Three Months Ended September 30, | ||
| Revenue | 2012 | 2011 |
| Fractional aircraft shares sold | $ 4,060 | $ 6,842 |
| Lease revenue | 898 | 355 |
| Management and maintenance fees | 21,618 | 20,273 |
| Flight hour card and club membership revenue | 8,752 | 8,995 |
| Flight activity and other ancillary billing | 6,007 | 4,824 |
| Other revenue | 1,538 | 1,684 |
| Total revenue | 42,873 | 42,973 |
| Operating expenses | ||
| Cost of fractional aircraft shares sold | 3,528 | 6,607 |
| Cost of flight operations | 21,262 | 19,378 |
| Cost of fuel | 9,790 | 9,663 |
| General and administrative expenses | 5,235 | 6,085 |
| Selling expenses | 1,026 | 1,939 |
| Depreciation and amortization | 1,451 | 930 |
| Employee termination and other costs | 100 | -- |
| Loss on sale of asset | 477 | -- |
| Total operating expenses | 42,869 | 44,602 |
| Income (loss) from operations | 4 | (1,629) |
| Other income (expense) | ||
| Interest and other income | 18 | 66 |
| Interest expense | (992) | (1,056) |
| Gain on debt extinguishment | -- | 439 |
| Total other expenses | (974) | (551) |
| Net loss | (970) | (2,180) |
| Preferred stock dividend and accretion of expenses | (365) | (372) |
| Net loss attributable to common stockholders | $ (1,335) | $ (2,552) |
| Loss per common share: | ||
| Basic and diluted | $ (0.05) | $ (0.10) |
| Weighted-average common shares outstanding: | ||
| Basic and diluted | 26,628,563 | 26,422,832 |