FORT WORTH, Texas, May 15 /PRNewswire/ -- Worldwide Flight Services, Inc.,
one of the world's leading independent aviation services provider, today
reported financial results for the three months ended March 31, 2000.
Worldwide Flight Services was acquired from AMR Corporation on March 31, 1999,
and as such references to the prior year first quarter relate to the Company's
Predecessor, AMR Services.
For the three months ended March 31, 2000, revenues were $85.2 million, up
38.6 percent from revenues of $61.5 million for the quarter ended March 31,
1999. Operating income from continuing operations was $1.1 million for the
three months ended March 31, 2000 compared to $1.7 million for the prior year.
Net loss from continuing operations for the three months ended March 31, 2000
was $3.2 million compared to net income from continuing operations of
$1.0 million for the same quarter of 1999. The revenues and operating loss
for the quarter ended March 31, 2000, include the results of its subsidiaries,
Miami Aircraft Support, Inc. and Aerolink International, Inc. that were
acquired on August 12, 1999 and August 23, 1999, respectively and the
additional cost associated with that of being an independent public company.
EBITDA, defined as operating income from continuing operations plus
depreciation and amortization, was $5.1 million for the three months ended
March 31, 2000 as compared to $3.4 million for the comparable period in 1999.
"Revenues were in line with our expectations, but operating income was
lower due to higher labor costs, start up expenses incurred prior to the
opening of new station operations, and increased Administrative costs related
to becoming a public company," said Peter A. Pappas, Chairman and Chief
Executive Officer. "Operating income was also impacted by continuing one
time, non recurring costs, associated with our evolution into a fully
independent company, excluding these non recurring costs, operating income
would have been approximately $0.5 million higher."
"Although, many of the transitional costs associated with our change to
independence are behind us, we will continue to experience higher
administrative cost as we proceed to get our organization permanently staffed.
We also look forward to fully integrating Miami Aircraft Support and Aerolink
as well as Oxford Electronics, Inc. which we acquired on April 5, 2000," added
Mr. Pappas. "We are working hard to further strengthen our position as one of
the world's largest independent aviation service providers."
Certain statements in this release contain "forward-looking" information
that involves risk and uncertainty. Actual future results and trends may
differ materially depending on a variety of factors, including revenue levels,
payroll costs, competitive pressures, debt levels, loss of significant
customers, and other factors, all of which are difficult to predict and many
of which are beyond the control of the Company. Additional information
regarding these factors is contained in the Company's Registration Statement
on Form S-4 filed with the Securities and Exchange Commission.
Worldwide Flight Services, Inc. is a global leader in comprehensive,
quality ground services for the aviation industry. The company provides a
wide range of services on behalf of more than 300 airlines, air carriers and
airport authorities in 92 key locations around the world. These services
include cargo, passenger and ramp handling, as well as technical assistance
such as jet bridge maintenance, fueling, deicing and other management
services.
Worldwide Flight Services, Inc. was acquired on March 31, 1999 by a
private equity investment fund managed by Castle Harlan, Inc., a New York
based merchant bank.
Additional information about Worldwide Flight Services, Inc. can be
accessed via the Internet at http://www.wwflightservices.com.
Worldwide Flight Services, Inc.
Condensed Consolidated Statement of Operations
(In thousands)
Three Months Ended
March 31,
2000 1999 (A)
Revenues $85,195 $61,475
Expenses:
Salaries, wages and benefits 57,466 39,679
Materials, supplies and services 9,007 7,744
Equipment and facilities rental 4,948 3,641
Depreciation and amortization 3,921 1,627
Other miscellaneous expenses 8,710 4,784
General and administrative allocated expenses --- 2,269
Total operating expenses 84,052 59,744
Operating income from continuing operations 1,143 1,731
Interest (expense) (5,004) ---
Interest income 120 440
Other income (expense), net (12) (552)
Income (loss) from continuing operations
before income taxes (3,753) 1,619
Provision (benefit) for income taxes (528) 644
Income (loss) from continuing operations
before extraordinary loss (3,225) 975
Loss from discontinued operations, net of tax --- (210)
Net income (loss) $(3,225) $765
EBITDA (B) $5,064 $3,358
(A) The three months ended March 31, 1999 represents the financial
results of the Company's predecessor, AMR Services, Inc., which was
acquired from AMR Corporation on March 31, 1999, and is presented on
adifferent basis of accounting. Interest (expense) income and taxes
are not comparable due to the changes in the Company's capital
structure that have occurred on and since March 31, 1999
(B) Defined as operating income from continuing operations plus
depreciation and amortization.
SOURCE Worldwide Flight Services, Inc.
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Related links:
http://www.wwflightservices.com
Company News On-Call:
http://www.prnewswire.com/comp/132179.html or fax,
800-758-5804, ext. 132179
CONTACT:
Peter A. Pappas, Chairman and Chief Executive
Officer of Worldwide Flight Services, Inc., 817-665-3234
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