EX-99.1 2 l32910aexv99w1.htm EX-99.1 EX-99.1
Exhibit 99.1
(FIRSTFLIGHT LOGO)
         
 
  Company Contact:   Investor Relations Contacts:
 
        
 
  Ron Ricciardi   Porter, LeVay & Rose, Inc.
 
  570-457-3400   Linda Decker, VP — Investor Relations
 
      Jeffrey Myhre, VP — Editorial
 
      212-564-4700
FIRSTFLIGHT ANNOUNCES FINANCIAL RESULT FOR QUARTER ENDED JUNE 30, 2008
Revenue Rises 5.9% to $12.6 Million
Conference Call Scheduled for Today at 11 am EDT
ELMIRA/CORNING, NY, August 14, 2008 — FirstFlight, Inc. (OTC BB: FFLT) a charter management and aviation services company, today announced its financial results for the three and six months ended June 30, 2008.
Revenue for the three months ended June 30, 2008 increased 5.9% to $12.6 million as compared to revenue of $11.9 million for the three months ended June 30, 2007. This increase was a result of stronger revenue performance from each of the Company’s business segments.
For the three months ended June 30, 2008, the following are comparisons in each segment as compared to the three months ended June 30, 2007. The Company’s charter segment generated approximately $9.5 million in revenue, a 2.2% increase over revenue of approximately $9.3 million generated in the prior year period. The Company’s fixed base operations, or FBO, segment generated approximately $2.2 million in revenue, a 25.5% increase over revenue of approximately $1.7 million generated in the prior year period. The Company’s maintenance segment generated approximately $0.84 million in revenue, a 5.8% increase over revenue generated of approximately $0.8 million in the prior year period.
Certain infrastructure expenses were incurred in second quarter 2008 to prepare the organization to handle a larger number of charter aircraft in multiple locations across the country. These expenses were greater than, or did not exist at all, in comparison to expenses for second quarter 2007. Included in these expenses were the introduction of a dedicated sales senior vice president, additional charter sales people, the inception of a division focused on the aircraft acquisition process, arrangements necessary for the Company’s newly formed West Coast Division, and the development of a larger, state-of-the-art, 24-hour/seven days-per-week operations and communications center.
Net income for the three months ended June 30, 2008 was $11,580, as compared to $128,645 in the three months ended June 30, 2007. The infrastructure items mentioned above, which are intended to deliver long-term value, created pressure on net income in the three months ended June 30, 2008.
“We are very pleased to post another profitable quarter,” stated John Dow, President and CEO of FirstFlight. “Our charter segment posted positive revenue growth despite higher jet fuel costs and declining general economic conditions. We believe that our recently announced acquisition of New World Jet and the creation of our West Coast Division are key strategic initiatives that will spur continued growth in our charter segment and lead our company to higher levels of revenue and profitability. We believe that the impact of operating expenses related to the West Coast Division and additions to our charter sales and operating infrastructure will likely decrease in future quarters as anticipated additional revenue and efficiencies from these activities are achieved. Our FBO and maintenance segments continued their solid year-over-year performance. The FBO segment posted higher levels of revenue in part related to increased fuel costs. We generally price our fuel

 

 

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products on a fixed dollar margin basis. As the cost of fuel rises, the corresponding customer price rises as well. If volume is constant, revenue increases. In our case, volume also increased; so we had the double impact of more volume at higher average prices. Our maintenance segment continues to show the positive effects of increased sales volume combined with new process and procedures implemented by management over the past several quarters.”
“We remain highly conscious of the increases in crude oil prices that translated into higher jet fuel costs,” added Senior Vice President and Chief Financial Officer, Keith Bleier. “We are also hopeful that reductions in crude oil pricing since the end of the quarter are indicative of future trends. We are mindful, however, that the prevailing fuel situation, in conjunction with general economic conditions, has created somewhat softer demand in the general charter market.”
As announced on August 11, 2008, FirstFlight completed its acquisition of privately held charter operator, New World Jet Corporation, based in the greater New York City area. The combined aircraft fleet will place FirstFlight among the top jet aircraft charter management companies in the United States and extend FirstFlight’s geographic footprint with predominantly large- and mid-cabin jets.
The Company also reported Adjusted EBITDA1 of $209,976 for the three months ended June 30, 2008, as compared to $310,340 in the three months ended June 30, 2007. Please see footnote 1 below for our definition of Adjusted EBITDA, a description of why we use Adjusted EBITDA and important disclaimers regarding Adjusted EBITDA, which is a non-GAAP measure. A reconciliation of Adjusted EBITDA to the appropriate GAAP measure is also included in footnote 1.
Management Conference Call Information
The FirstFlight Inc. management team will host a conference call this morning at 11 a.m. EDT to discuss the Company’s financial results and achievements. Those who wish to participate in the conference call may telephone (888) 335-6674 from the U.S. or (973) 582-2845 for international callers, conference ID# 59282295 approximately 15 minutes before the call. A digital replay will be available approximately 21/2 hours after the completion of the call by telephone and will remain available for two weeks. The digital replay may be accessed by dialing (800) 642-1687, from the U.S., or (706) 645-9291, for international callers, conference ID# 59282295 or by logging on to FirstFlight’s website at www.fflt.com.
About FirstFlight, Inc.
FirstFlight is an aviation services company. The Company’s operations are conducted in three core segments: aircraft charter management activities, fixed based operations (FBO), and aircraft maintenance. Charter management is the business of providing on-call passenger air transportation. FBO provides services such as fueling and hangaring for private/general aviation aircraft operators. The Company’s aircraft maintenance business is conducted at its FAA-certificated facilities. FirstFlight maintains a website located at www.fflt.com.
Forward-Looking Statement Disclaimer
This press release includes projections of future results and “forward-looking statements” as that term is defined in Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. All statements that are included in this press release, other than statements of historical fact, are forward-looking statements. Although the management of FirstFlight believes that the expectations reflected in these forward-looking statements are reasonable, there are no assurances that such expectations will prove to have been correct. FirstFlight disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
-FINANCIAL TABLES TO FOLLOW -

 

 

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1 Explanation of Adjusted EBITDA, a Non-GAAP Financial Measure
FirstFlight defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted for stock based compensation expense. FirstFlight believes that Adjusted EBITDA, which is a financial measure that is not defined by Generally Accepted Accounting Principles in the U.S., or GAAP, is a useful performance metric because it is a measure commonly used in the industry and therefore provides investors with an additional and important comparable. Non-GAAP measures such as Adjusted EBITDA should be considered in addition to, not as a substitute for or superior to, net income, cash flows, or other measures of financial performance prepared in accordance with GAAP. A reconciliation of net income to Adjusted EBITDA is as follows for each of the quarters ended June 30, 2008 and 2007:
                 
    Three Months Ended  
    June 30,  
    2008     2007  
Net income
   $ 11,580     $ 128,645  
 
                
Non-cash charges and credits
                
Interest expense
     6,011       8,497  
Interest income
     (3,311 )     (15,308 )
 
            
Stock compensation expense
     99,220       92,441  
Depreciation and amortization
     96,476       96,065  
 
            
 
                
Adjusted EBITDA
   $ 209,976     $ 310,340  
 
            
Segment Performance
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2008     2007     2008     2007  
Revenue
                                
Charter
   $ 9,535,517     $ 9,328,931     $ 21,076,681     $ 18,838,835  
FBO
     2,177,747       1,734,713       3,669,828       2,892,226  
Maintenance
     842,713       796,880       1,739,706       1,374,744  
 
                        
Total revenue
   $ 12,555,977     $ 11,860,524     $ 26,486,215     $ 23,105,805  
 
                        
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2008     2007     2008     2007  
Operating Results
                                
Charter operating profit
   $ 309,721     $ 298,902     $ 770,725     $ 537,214  
FBO operating profit
     141,254       118,059       233,946       127,923  
Maintenance operating profit
     70,712       108,743       96,189       8,244  
 
                        
Segment operating profit
     521,687       525,704       1,100,860       673,381  
Corporate expense
     (507,407 )     (403,870 )     (986,410 )     (744,567 )
 
                        
Total operating profit (loss)
     14,280       121,834       114,450       (71,186 )
Other income, net
     —       —       —       57,055  
Interest income
     3,311       15,308       12,328       32,681  
Interest expense
     (6,011 )     (8,497 )     (12,010 )     (14,760 )
 
                        
Net income
   $ 11,580     $ 128,645     $ 114,768     $ 3,790  
 
                        

 

 

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FIRSTFLIGHT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
                 
    June 30, 2008        
    (Unaudited)     December 31, 2007  
ASSETS
                
CURRENT ASSETS
                
Cash and cash equivalents
   $ 2,018,892     $ 2,400,152  
Accounts receivable, net of allowance for doubtful accounts of $34,000 and $26,721, respectively
     5,136,492       5,226,006  
Inventories
     508,451       324,314  
Prepaid expenses and other current assets
     510,929       472,750  
 
            
Total current assets
     8,174,764       8,423,222  
 
            
 
                
PROPERTY AND EQUIPMENT, net
                
of accumulated depreciation of $440,409 and $361,577, respectively
     1,094,002       1,169,316  
 
            
 
                
OTHER ASSETS
                
Deposits
     158,128       36,800  
Intangible assets — trade names
     420,000       420,000  
Other intangible assets, net of accumulated amortization of $593,444 and $489,274, respectively
     46,552       150,726  
Goodwill
     4,194,770       4,194,770  
 
            
Total other assets
     4,819,450       4,802,296  
 
            
TOTAL ASSETS
   $ 14,088,216     $ 14,394,834  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
CURRENT LIABILITIES
                
Accounts payable
   $ 5,738,760     $ 6,252,043  
Customer deposits
     160,504       532,397  
Accrued expenses
     876,075       551,074  
Notes payable — current portion
     123,764       126,663  
 
            
Total current liabilities
     6,899,103       7,462,177  
 
                
LONG-TERM LIABILITIES
                
Notes payable — less current portion
     191,553       296,788  
 
            
Total liabilities
     7,090,656       7,758,965  
 
            
 
                
STOCKHOLDERS’ EQUITY
                
Preferred stock — $.001 par value; authorized 9,999,154; none issued and outstanding
     —       —  
Common stock — $.001 par value; authorized 100,000,000; 36,582,987 shares issued and outstanding
     36,583       36,583  
Additional paid-in capital
     19,072,683       18,825,760  
Accumulated deficit
     (12,111,706 )     (12,226,474 )
 
            
TOTAL STOCKHOLDERS’ EQUITY
     6,997,560       6,635,869  
 
            
 
                
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
   $ 14,088,216     $ 14,394,834  
 
            

 

 

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FIRSTFLIGHT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                                 
    For the Three Months Ended     For the Six Months Ended  
    June 30,     June 30,  
    2008     2007     2008     2007  
REVENUE
   $ 12,555,977     $ 11,860,524     $ 26,486,215     $ 23,105,805  
COST OF SALES
     10,248,958       9,867,374       21,917,511       19,590,409  
 
                        
GROSS PROFIT
     2,307,019       1,993,150       4,568,704       3,515,396  
 
                                
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
     2,292,739       1,871,316       4,454,254       3,586,582  
 
                        
 
                                
OPERATING INCOME (LOSS)
     14,280       121,834       114,450       (71,186 )
 
                                
OTHER INCOME (EXPENSE)
                                
OTHER INCOME, net
     —       —       —       57,055  
INTEREST INCOME
     3,311       15,308       12,328       32,681  
INTEREST EXPENSE
     (6,011 )     (8,497 )     (12,010 )     (14,760 )
 
                        
 
                                
TOTAL OTHER INCOME (EXPENSE)
     (2,700 )     6,811       318       74,976  
 
                        
 
                                
NET INCOME
   $ 11,580     $ 128,645     $ 114,768     $ 3,790