Quarterly Revenue Increases 9.9% to $40.1 Million from Year-Ago Period
CLEARWATER, Fla. – May 10, 2012 — 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 2012 third quarter and nine-month periods which ended March 31, 2012.
Third Quarter Fiscal 2012 Performance:
- Total revenue grew 9.9% to $40.1 million compared to $36.5 million in the fiscal 2011 third quarter.
- Total number of revenue-generating flight hours flown increased by 6.1% to 11,237, compared with 10,594 hours flown in fiscal 2011 third quarter.
- Non-GAAP Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation, employee termination and other costs, gain on sale of asset, and gain on debt extinguishment) increased by 81% to $1.7 million, compared to $940,000 in the third quarter of fiscal 2011.
- Net loss attributable to common stockholders was ($1.1) million, or ($.04) per share, based on 26.5 million weighted average shares outstanding, and included $883,000 related to employee termination and other costs, and a $624,000 gain on the sale of an asset. This compared with a net loss attributable to common stockholders of ($1.3) million, or ($0.05) per share, based on 26.4 million weighted average shares outstanding in the third quarter of fiscal 2011.
- Cash and cash equivalents were $7.1 million as of March 31, 2012 compared to $5.6 million as of June 30, 2011.
Year-to-Date Fiscal 2012 Performance:
Steven Santo, Chief Executive Officer of Avantair said, “Though these results are better than one year ago and our prior quarter, we are not satisfied and will continue to focus on taking appropriate actions to achieve sustainable and growing profitability. During our recent quarter, we undertook a series of actions in the sales and finance areas of our business, which we believe will improve our operating results."
- Total revenue for the nine months ended March 31, 2012 grew 7.1% to $116.6 million compared to $108.9 million for the nine months ended March 31, 2011.
- Total number of revenue-generating flight hours flown increased by 6.1% to 34,056, compared with 32,096 hours flown in the year-ago period.
- Non-GAAP Adjusted EBITDA increased by 218% to $3.3 million, compared to ($2.8) million in the same nine month period one year ago.
- Net loss attributable to common stockholders was ($4.4) million, or ($.17) per share, based on 26.5 million weighted average shares outstanding. The year-to-date net loss included $883,000 related to employee termination and other costs, $439,000 related to a gain on debt extinguishment and $624,000 related to a gain on the sale of an asset. This compared to a net loss attributable to common stockholders of ($10.9) million, or ($0.41) per share, based on 26.4 million weighted average shares outstanding in the same nine month period one year ago.
Conference Call Chief Executive Officer Steven Santo and Executive Vice President and Chief Financial Officer Stephen Wagman will hold a conference call with the financial community today, Thursday, May 10, 2012 at 5 PM 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 and 1 (847) 619-6547 U.S. Toll. For international callers: 1 (847) 619-6547 Toll. When prompted, give Confirmation Number: 32341639 or ask for “Avantair’s Fiscal 2012 Third 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.
A telephonic replay of the conference call may be accessed approximately two hours after the call through May 24, 2012, by dialing 1 (888) 843-7419 US Toll Free or 1 (630) 652-3042 US Toll. For international callers: 1 (630) 652-3042 Toll. When prompted key in the Passcode: 32341639#.
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:
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 U.S. 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.
Avantair, the sole North American provider of fractional shares, leases and flight time cards in the Piaggio Avanti aircraft, and the only publicly traded stand-alone private aircraft operator, is headquartered in Clearwater, FL, with more than 500 employees. The Company 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
Company Contacts:Avantair, Inc.
Stephen Wagman, EVP and CFO