COLUMBUS, Ohio, Aug. 7 /PRNewswire/ -- AirNet Systems, Inc. (NYSE: ANS) announced earnings of $.28 per share today for the quarter ended June 30, 1997, compared to $.24 adjusted pro forma earnings per share for the quarter ended June 30, 1996. Net revenues for the quarter increased 16.0% to $23.1 million from $19.9 million for the same period in 1996. Average daily air transportation revenues increased 24.5%. Net income was $3.5 million versus adjusted pro forma net income of $2.9 million for the comparable 1996 period, an increase of 20.7%. These figures represent record quarterly revenues and earnings for AirNet Systems and are prior to the restatement of the 1996 acquisition of Express Convenience Center, Inc. ("ECC"), which is being accounted for as a pooling of interests.
After restating the comparable 1996 period, net revenues for the quarter increased 9.9% to $23.1 million from $21.0 million in 1996. Restated average daily air transportation revenues increased 16.3%. Net income was $3.5 million versus adjusted pro forma net income of $2.9 million for the comparable 1996 period, an increase of 20.7%.
Record quarterly gross revenues for the Company's check delivery services were $19.4 million compared to $17.1 million for the same quarter in 1996, an increase of 13.6%. The Company's gross revenues from small package delivery services increased to a record $4.0 million, a 59.1% increase over 1996 levels prior to restatement for the ECC acquisition, and a 10.6% increase after restating results.
During the quarter, the Company changed its fiscal year end from September 30 to December 31. Consequently, the Company is reporting its second quarter under the new reporting year.
Jerry Mercer, Chairman, President and CEO, said, "We are very pleased with the continued strength of our ongoing businesses, and quite proud of the record results posted for this quarter. Additionally, the AirNet sales force is now active in over 15 cities, introducing our LateNight and BusinessDay products to the marketplace. We look forward to increasing market penetration and earnings contributions from these products over the next 12 to 18 months. Our recent acquisitions of Pacific Air Charter and Data Air Courier are significant strategic and synergistic moves that should provide additional growth for the future."
EBITDA, EBIT and net income percentages each improved for the three months ending June 30, 1997, compared with the same quarter in 1996. Commenting on the Company's performance, Eric Roy, Executive Vice President and Chief Financial Officer, said, "We continue to be proud of our abilities to deliver enhanced margins while growing our company. These comparisons for the quarter ended June 30, 1997, are enhanced by the fact that the prior year figures are not adjusted for the excise tax expiration in 1996, a tax which now is being collected."
Don Strench, Vice President of Corporate Development, added, "We were pleased to finalize the Data Air Courier acquisition on July 31. This transaction moves our annualized revenue run-rate in excess of $100 million, a milestone for AirNet Systems."
AirNet Express, the transportation network of AirNet Systems, has one of the fastest and most reliable document and small package delivery systems in the nation. AirNet Express flies to 100 cities in 40 states and delivers over 15,000 time-critical shipments each full operational day. With 111 aircraft, which include 28 Learjets, AirNet flies 95,000 miles each full operational day. In addition, AirNet Express operates ground pick-up and delivery services throughout the nation, using 115 company-owned vehicles and 350 independent agents.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties, including but not limited to, potential regulatory changes by the Federal Aviation Administration, the Federal Reserve or certain foreign governments, adverse weather conditions, technological advances, as well as other economic, competitive and governmental factors affecting the Company's markets, prices and other facets of its operations.
Comprehensive investor information about AirNet Systems, Inc. can be obtained through the Internet at http:/www.airnet.com.
FINANCIAL SUMMARY:
(Unaudited - in thousands, except per share data)
(All balances have been restated to reflect ECC's results of operations
under the pooling of interests method of accounting.)
Three months ended Six months ended June 30, June 30, 1997 1996 1997 1996 Net revenues $23,062 $20,992 $45,297 $40,200 Expenses 17,254 17,194 34,337 34,162
Income (loss) before
taxes 5,808 (10,215) 10,960 (8,343) Taxes (note 1) 2,304 2,025 4,364 2,029 Net income (loss) $3,504 $(12,240) $6,596 $(10,372) Pro forma net loss (note 2) -- $(9,780) -- $(7,699)
Adjusted pro forma net
income (note 3) -- $2,901 -- $4,982 Net income per share $.28 -- $.52 -- Pro forma loss per share -- $(1.02) -- $(.86)
Weighted average common
shares outstanding 12,633 9,623 12,628 8,982
Adjusted pro forma net
income per share (note 4) -- $.23 -- $.40 EBITDA (note 2) 35.3% 33.8% 33.6% 31.7% EBIT (note 2) 25.2% 23.1% 24.2% 20.7%
Net income percentage
(note 2) 15.2% 13.8% 14.6% 12.4% Full operational days 51 51 99 100
Gross air transportation
revenues per day $478 $411 $466 $407
Note 1 - Prior to the Company's initial public offering (the "Offering") in May 1996, it operated as an S Corporation under the Internal Revenue Code for tax purposes. Consequently, provision for certain taxes has been included in net income for the 1996 periods only for the portion of operations related to ECC and for the period from the date of the Offering.
Note 2 - 1996 balances include pro forma adjustments incurred as a result of the Offering. Such adjustments are the result of restructured compensation plans, the elimination of a deferred compensation plan, the reduction of interest expense, the termination of a covenant not to compete and income taxed as if the Company had been a C Corporation for the quarter. All such changes were effective with the consummation of the Offering.
Note 3 - Net income after excluding the effects of the $13.7 million non- cash, non-recurring expenses incurred as a result of the IPO, net of tax.
Note 4 - Assumes the shares issued in the Offering were outstanding for the entire three and six months ended June 30, 1996, for a pro forma balance of shares outstanding of 12,464,000.
SOURCE AirNet Systems, Inc.
-0- 08/07/97
/CONTACT: Julie Hughes of AirNet Systems, 614-237-9777; or Corey Cutler of Dewe Rogerson, 212-688-6840/
(ANS)
CO: AirNet Systems, Inc. ST: Ohio IN: AIR SU: ERN
DY-AM -- NYTH117 -- 4637 08/07/97 16:34 EDT http://www.prnewswire.com
