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ExpressJet Holdings Reports Third Quarter Earnings of $21.5 Million
Thursday October 17, 6:31 AM EDT
HOUSTON, Oct 17, 2002 /PRNewswire-FirstCall via COMTEX/ -- ExpressJet
Holdings, Inc. (XJT
<http://money.excite.com/jsp/qt/full.jsp?time=0&symbol_search_text=XJT>
) today reported third quarter net income of $21.5 million, an increase
of 80.3 percent over the prior-year period. The net income represents
$0.34 diluted earnings per share.
The company said its improved earnings during the quarter resulted from
a higher mix of regional jets, excellent operating performance with
record- setting completion factors, cost control and lower interest
expense.
"Our financial success in the third quarter was driven by the efforts of
the ExpressJet employees to deliver superior operating performance and
manage costs as we continue to expand our jet fleet," said ExpressJet
President and Chief Executive Officer Jim Ream.
<http://ae.excite.com/adclick/CID=000002397d9372bc00000000/acc_random=25
83976679/site=excite/area=money.news/aamsz=336x280>
Third Quarter Operating Results
Third quarter operating revenue increased 7.8 percent to $270.1 million,
compared with $250.6 million in the third quarter of 2001. Capacity grew
by 15.0 percent to 1.6 billion available seat miles (ASM) compared with
the same period last year. The company also achieved a record 99.9
percent controllable completion factor, which excludes cancellations due
to weather and air traffic control. ExpressJet's overall completion rate
for the quarter was 98.9 percent, reflecting a favorable operating
environment in the quarter.
During the quarter, ExpressJet continued its transition to an all-jet
fleet with the delivery of 12 Embraer regional jets and retirement of
eight ATR-42 turboprops to end the third quarter with an operating fleet
of 182 aircraft, including 170 jets. ExpressJet plans to retire the
remaining 12 ATR-42 turboprops during the fourth quarter of 2002. By the
end of 2002, ExpressJet will have an all-jet fleet consisting of Embraer
ERJ-135s, ERJ-145s and ERJ-145XRs. ExpressJet will take delivery of the
first eight ERJ-145XRs this month, which it will place into service in
November. The ERJ-145XR is the extended range version of the ERJ-145.
ExpressJet also expanded its operations during the quarter with the
opening of a new station in Des Moines, Iowa, and the launch of nonstop
service between Des Moines and both Houston and New York/Newark. The
number of communities benefiting from ExpressJet's fleet transition also
grew during the quarter, with the start of all-jet flying at Brownsville
and Laredo, Texas; Baton Rouge, La.; Mobile, Ala.; Jackson, Miss.; and
Little Rock, Ark., as well as the introduction of the first jet service
at Alexandria, La., and Beaumont, Texas.
Third Quarter Financial Results
ExpressJet's third quarter 2002 operating income reflected a 13.8
percent operating margin, as compared with an operating margin of 10.5
percent for the third quarter of 2001. The 13.8 percent operating margin
included the benefits of cost savings and $3.7 million in performance
incentive payments. The third quarter operating cost per ASM declined
9.7 percent on an 8.9 percent increase in stage length compared with the
same period of the prior year.
ExpressJet ended the third quarter with $146.8 million in cash. During
the quarter, the company made a principal payment of $20.0 million on
its note payable to Continental Airlines (CAL
<http://money.excite.com/jsp/qt/full.jsp?time=0&symbol_search_text=CAL>
), reducing the outstanding balance to $375.5 million. For the first
nine months of 2002, ExpressJet spent $21.7 million in capital
expenditures (net of sales of fixed assets and parts related to
turboprop retirements) and currently projects cash outlays related to
fleet and non-fleet capital expenditures of approximately $26.8 million
for the remainder of the year.
ExpressJet Holdings will conduct a telephone briefing to discuss its
third quarter results with the financial community today at 2:00 p.m.
CDT/ 3:00 p.m. EDT. To listen to a live webcast of this briefing, go to
expressjet.com/investor relations
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