World Air (NASDAQ:WLDAE)
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Company Also Files Amended Second Quarter 2005 10-Q
PEACHTREE CITY, Ga., Feb. 21 /PRNewswire-FirstCall/ -- World Air Holdings, Inc. (NASDAQ:WLDAE), parent company of World Airways and North American Airlines, today reported its consolidated financial results for the third quarter ended Sept. 30, 2005. The company also filed its restated financial results for the second quarter ended June 30, 2005.
The operating results include North American Airlines, acquired on April 27, 2005, for the full 2005 third quarter, but do not include North American's third quarter 2004 results. For the first nine months of 2005, results include North American for the period from April 28 to Sept. 30, 2005. North American is not included in last year's nine-month results.
"We had an excellent quarter that was driven by a high level of military flying," said Randy Martinez, chief executive officer. "As a result of the strength in both our military and commercial business, coupled with the inclusion of North American, we continued to report high levels of revenue, aircraft utilization and total block-hour growth."
Third Quarter Financial Highlights
- Consolidated operating revenues for the third quarter of 2005 increased
68.1 percent to $217.2 million, compared to $129.2 million for the same
quarter last year.
- Consolidated operating expenses were $206.9 million compared to $115.4
million in the third quarter of 2004, an increase of $91.5 million, or
79.3 percent. These expenses primarily reflect increased flying at
World Airways and the addition of North American. Third quarter 2005
results included three significant items. The first was a $12.5 million
additional accrual for a pending North American court judgment. In
December 2005, a California jury awarded the plaintiff approximately
$12.7 million in compensatory and punitive damages. While the company
plans to vigorously contest this judgment with post-trial motions and
an appeal if necessary, the full amount of the jury award has been
accrued. This amount was previously expected to be charged against
goodwill as an adjustment to a pre-acquisition contingency, however the
company has determined that accounting guidance requires the expense to
be recognized in the third quarter. The second item was a $1.8 million
expense for professional fees associated with the 2004 re-audit of
North American and the establishment of accounting procedures since the
April 2005 acquisition of North American. The third item was a $1.3
million net gain that the company realized due to a favorable
settlement with property tax authorities.
- Third quarter 2005 consolidated operating income was $10.2 million,
versus $13.8 million for the comparable quarter of last year.
- Quarterly consolidated net earnings decreased 22.5 percent to $5.5
million, or $0.23 per basic and $0.20 per diluted share, compared to
net earnings of $7.1 million, or $0.54 per basic and $0.31 per diluted
share, for the third quarter of last year. (Weighted average shares
outstanding increased by a total of 10.8 million shares compared to the
third quarter of 2004 primarily as a result of the conversion of the 8%
Convertible Senior Subordinated Debentures and the exercise of
warrants.)
- Consolidated military business generated $144.6 million in revenues for
the third quarter of 2005, or an increase of 49.0 percent versus $97.1
million reported by World Airways for the same quarter last year.
- Commissions increased primarily due to higher military revenues
generated by World Airways associated with the AMC contract in the
third quarter of 2005 and commissions related to North American's
scheduled service.
- World Air Holdings ended the third quarter of 2005 with unrestricted
cash, cash equivalents and short-term investments of $68.4 million
compared to $50.0 million at Dec. 31, 2004. In addition, the company
had $5.6 million of restricted cash. The acquisition of North American
in April 2005 represented a cash cost of $36.2 million to World Air
Holdings (including direct acquisition costs of $1.4 million) less $8.6
million of unrestricted cash from North American at April 27, 2005.
This cash cost is exclusive of a $2.6 million subsequent reduction in
the purchase price based on terms of the contract.
"New Air Mobility Command (AMC) 2006 fiscal year contracts for both World Airways and North American were announced in the quarter and several commercial contracts were renewed," Martinez said. "World Airways received a $54 million contract and North American received a $7.3 million contract from the AMC to provide fixed passenger flying in fiscal year 2006, which began Oct. 1, 2005. World Airways and North American will continue to support AMC's expansion flying needs, which generated an additional $342.3 million for World Airways and $126.3 million for North American in the AMC fiscal year 2005 contract, which ended Sept. 30, 2005.
"World Airways also announced that it will convert one MD-11 passenger aircraft to cargo configuration in 2006, bringing its cargo fleet to six MD- 11Fs and two DC-10-30Fs, and North American will add two Boeing 767s to its fleet in 2006.
"Additional highlights for North American include a renewed contract with GWV Vacations for 2006, providing Boeing 757 service from the East Coast to Caribbean and Mexican destinations. North American also initiated new weekly, non-stop scheduled service between Accra, Ghana and John F. Kennedy International Airport in New York on July 1, and discontinued scheduled service between Oakland, Calif., and Hawaii effective Sept. 1."
Highlights - World Airways
World Airways increased its total block hours 22.0 percent, to 15,578 compared to 12,771 in the same period last year. The company increased its aircraft utilization rate 14.9 percent to 10.0 hours per day, versus 8.7 hours per day in the third quarter of last year.
Per block hour results are as follows:
Per Block Hour Results
Third Quarter 2005 Third Quarter 2004 Difference
Operating revenue $9,788 $10,115 $ (327)
Operating costs $8,530 $9,037 $ 507
Operating margin $1,258 $1,078 $ 180
Highlights - North American Airlines
North American operated 7,012 total block hours for the quarter ended Sept. 30, 2005, with an aircraft utilization rate of 9.5 hours per day.
Per block hour results are as follows:
Per Block Hour Results
Third Quarter 2005
Operating revenue $ 9,219
Operating costs $10,647
Operating margin $(1,428)
The negative operating margin was primarily due to professional fees, the accrual for the pending litigation, and losses from scheduled service between Oakland, Calif., and Hawaii until it was discontinued Sept. 1, 2005, offset by the favorable settlement with property tax authorities.
Nine-Month Financial Highlights
- Revenues for the first nine months of 2005 were $548.6 million compared
to $373.8 million for the same period of 2004, an increase of $174.8
million, or 46.8 percent.
- Operating income increased to $38.2 million, an increase of $6.4
million or 20.2 percent, compared to $31.8 million for the same period
of the prior year.
- Earnings before income tax increased by 25.6 percent to $34.0 million
versus $27.0 million over the same period of 2004.
- Net earnings were $20.9 million, or $0.94 per basic and $.79 per
diluted share, versus net earnings of $17.5 million, or $1.46 per basic
and $0.77 per diluted share, for the same period a year ago. Basic and
diluted per share results were computed on the basis of 22.2 and 26.7
million weighted average shares outstanding for 2005, and 12.0 and 23.8
million weighted average shares for 2004.
Second Quarter Restated Results
Operating revenue for the second quarter for 2005 totaled $171.9 million, compared to the previously reported $172.6 million. Operating income was $10.8 million, compared to the previously reported $8.2 million. Quarterly net earnings were $5.5 million or $0.23 per basic and $0.21 per diluted share, compared to the previously reported net earnings of $4.2 million or $0.18 per basic and $0.16 per diluted share.
The restatement adjustments at North American included entries to record operating expenses in the correct accounting period, including adjustments to flight, maintenance, aircraft costs, and sales, general and administrative costs; and a reclassification of the fuel reconciliation adjustments from revenue to fuel expense. World Airways recorded adjustments to include entries regarding the timing of expensing recoverable spare parts, flight crew special pay requests, asset disposals and certain operating expenses, the timing of recognizing a vendor rebate and incorrect use of the original cost basis for recognizing depreciation expense of certain impaired aircraft parts. Details are available in the Form 10-Q/A for the quarter ended June 30, 2005, filed Feb. 21, 2006. A table showing the unaudited effects of the restatement is attached.
INVESTOR CONFERENCE CALL
Feb. 22, 2006, at 9:00 a.m. EST
Phone: 866-436-5160, Conference ID number 5774400
A conference call will begin at 9:00 a.m. EST on Feb. 22, 2006. Investors and media can access the conference by calling 866-436-5160, ID number 5774400 prior to the 9:00 a.m. start time. The investor call will be available live via the World Wide Web at http://www.worldairholdings.com/investor. The on-line replay will be available until March 8, 2006, at the same site shortly after the Webcast is complete.
About World Air Holdings, Inc.
World Air Holdings has three wholly owned subsidiaries, World Airways, Inc., North American Airlines, Inc., and World Risk Solutions, Ltd. World Airways is a charter passenger and cargo airline founded in 1948, North American is a charter passenger airline founded in 1989, and World Risk Solutions is an insurance subsidiary established in 2004. For additional information, visit http://www.worldairholdings.com/
["Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties including, but not limited to, the impact of competition in the market for air transportation services, the cyclical nature of the air carrier business, reliance on key marketing relationships, fluctuations in operating results and other risks detailed from time to time in the company's periodic reports filed with the SEC (reports are available from the company upon request). These various risks and uncertainties may cause the company's actual results to differ materially from those expressed in any of the forward looking statements made by, or on behalf of the company in this release.]
WORLD AIR HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30,
(IN THOUSANDS EXCEPT PER SHARE & BLOCK HOUR DATA)
(unaudited)
THREE MONTHS ENDED SEPTEMBER 30,
BETTER (WORSE)
2005 2004 DIFF %
OPERATING REVENUES
FLIGHT OPERATIONS $216,703 $128,573 $88,130 68.5%
ALL OTHER 477 602 (125) -20.8%
TOTAL OPERATING REVENUE 217,180 129,175 88,005 68.1%
OPERATING EXPENSES
FLIGHT 62,532 40,600 (21,932) -54.0%
MAINTENANCE 27,018 19,295 (7,723) -40.0%
AIRCRAFT COSTS 31,368 19,498 (11,870) -60.9%
FUEL 42,063 17,603 (24,460) -139.0%
FLIGHTS SUBCONTRACTED TO OTHER
CARRIERS 339 - (339) N.M.
COMMISSIONS 8,165 5,667 (2,498) -44.1%
DEPRECIATION AND AMORTIZATION 1,872 1,258 (614) -48.8%
SALES, GENERAL AND ADMINISTRATIVE 21,088 11,490 (9,598) -83.5%
LITIGATION CONTINGENCY 12,500 - (12,500) N.M.
TOTAL OPERATING EXPENSES 206,945 115,411 (91,534) -79.3%
OPERATING INCOME 10,235 13,764 (3,529) -25.6%
OTHER INCOME (EXPENSE)
INTEREST EXPENSE (1,217) (1,114) (103) -9.2%
INTEREST INCOME 400 141 259 183.7%
OTHER, NET (575) (252) (323) -128.2%
TOTAL OTHER, NET (1,392) (1,225) (167) -13.6%
EARNINGS BEFORE INCOME TAXES 8,843 12,539 (3,696) -29.5%
INCOME TAXES 3,373 5,485 2,112 38.5%
NET EARNINGS $5,470 $7,054 $(1,584) -22.5%
BASIC EARNINGS PER SHARE:
NET EARNINGS $0.23 $0.54 $(0.31) -57.4%
WEIGHTED AVERAGE SHARES OUTSTANDING 23,789 12,956 10,833 83.6%
DILUTED EARNINGS PER SHARE:
NET EARNINGS $0.20 $0.31 $(0.11) -35.5%
WEIGHTED AVERAGE SHARES OUTSTANDING 27,072 23,674 3,398 14.4%
NINE MONTHS ENDED SEPTEMBER 30,
BETTER (WORSE)
2005 2004 DIFF %
OPERATING REVENUES
FLIGHT OPERATIONS $546,814 $372,299 $174,515 46.9%
ALL OTHER 1,797 1,520 277 18.2%
TOTAL OPERATING REVENUE 548,611 373,819 174,792 46.8%
OPERATING EXPENSES
FLIGHT 156,283 119,107 (37,176) -31.2%
MAINTENANCE 77,713 57,183 (20,530) -35.9%
AIRCRAFT COSTS 79,567 56,595 (22,972) -40.6%
FUEL 103,872 52,168 (51,704) -99.1%
FLIGHTS SUBCONTRACTED TO OTHER
CARRIERS 2,064 1,599 (465) -29.1%
COMMISSIONS 24,726 16,798 (7,928) -47.2%
DEPRECIATION AND AMORTIZATION 5,292 3,819 (1,473) -38.6%
SALES, GENERAL AND ADMINISTRATIVE 48,392 34,759 (13,633) -39.2%
LITIGATION CONTINGENCY 12,500 - (12,500) N.M.
TOTAL OPERATING EXPENSES 510,409 342,028 (168,381) -49.2%
OPERATING INCOME 38,202 31,791 6,411 20.2%
OTHER INCOME (EXPENSE)
INTEREST EXPENSE (3,344) (3,903) 559 14.3%
INTEREST INCOME 910 388 522 134.5%
OTHER, NET (1,801) (1,232) (569) -46.2%
TOTAL OTHER, NET (4,235) (4,747) 512 10.8%
EARNINGS BEFORE INCOME TAXES 33,967 27,044 6,923 25.6%
INCOME TAXES 13,093 9,546 (3,547) -37.2%
NET EARNINGS $20,874 $17,498 $3,376 19.3%
BASIC EARNINGS PER SHARE:
NET EARNINGS $0.94 $1.46 $(0.52) -35.6%
WEIGHTED AVERAGE SHARES OUTSTANDING 22,155 12,013 10,142 84.4%
DILUTED EARNINGS PER SHARE:
NET EARNINGS $0.79 $0.77 $0.02 2.6%
WEIGHTED AVERAGE SHARES OUTSTANDING 26,734 23,802 2,932 12.3%
WORLD AIR HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(unaudited)
September 30, December 31,
2005 2004
ASSETS
Current assets:
Cash and cash equivalents $38,378 $16,306
Restricted cash 5,577 4,926
Short-term investments 30,000 33,650
Accounts receivable, net 49,495 52,382
Prepaid expenses and other current assets 14,034 8,335
Deferred tax assets 9,417 6,685
Total current assets 146,901 122,284
Equipment and property, net 34,766 33,193
Intangible equipment and property 7,629 -
Long-term deposits 23,348 18,237
Other assets and deferred charges, net 4,474 5,603
Goodwill 21,883 -
Total assets $239,001 $179,317
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $30,000 $6,000
Accounts payable 33,022 35,482
Current portion of accrued rent 4,875 5,489
Current portion of deferred rent 111 3,242
Unearned revenue 15,220 6,293
Accrued maintenance 9,233 4,179
Accrued salaries, wages and profit sharing 21,866 20,463
Accrued taxes 8,144 8,482
Other accrued liabilities 22,415 1,861
Total current liabilities 144,886 91,491
Long-term debt, net of current maturities - 43,879
Deferred gain from sale-leaseback
transactions, net 1,158 1,645
Accrued post-retirement benefits 5,081 4,081
Accrued and deferred rent, net of
current portions 7,705 5,615
Deferred tax liability 4,970 2,208
Total liabilities 163,800 148,919
Stockholders' equity:
Preferred stock - -
Common stock 25 18
Additional paid-in capital 66,905 42,712
Retained earnings 21,399 525
Deferred stock-based compensation (271) -
Treasury stock, at cost (12,857) (12,857)
Total stockholders' equity 75,201 30,398
Total liabilities and
stockholders' equity $239,001 $179,317
WORLD AIR HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS AND SIX MONTHS ENDED JUNE 30,
(IN THOUSANDS EXCEPT PER SHARE)
(unaudited)
THREE MONTHS ENDED JUNE 30,
As Restated BETTER (WORSE)
2005 2004 DIFF %
OPERATING REVENUES
FLIGHT OPERATIONS $171,091 $114,707 $56,384 49.2%
ALL OTHER 791 353 438 124.1%
TOTAL OPERATING REVENUE 171,882 115,060 56,822 49.4%
OPERATING EXPENSES
FLIGHT 48,582 37,705 (10,877) -28.8%
MAINTENANCE 25,740 20,032 (5,708) -28.5%
AIRCRAFT COSTS 27,270 17,426 (9,844) -56.5%
FUEL 31,338 16,363 (14,975) -91.5%
FLIGHTS SUBCONTRACTED
TO OTHER CARRIERS 1,217 81 (1,136) N.M.
COMMISSIONS 7,702 4,831 (2,871) -59.4%
DEPRECIATION AND AMORTIZATION 1,965 1,274 (691) -54.2%
SALES, GENERAL AND ADMINISTRATIVE 17,279 12,960 (4,319) -33.3%
TOTAL OPERATING EXPENSES 161,093 110,672 (50,421) -45.6%
OPERATING INCOME 10,789 4,388 6,401 145.9%
OTHER INCOME (EXPENSE)
INTEREST EXPENSE (1,142) (1,247) 105 8.4%
INTEREST INCOME 241 125 116 92.8%
OTHER, NET (1,023) (347) (676) -194.8%
TOTAL OTHER, NET (1,924) (1,469) (455) -31.0%
EARNINGS BEFORE INCOME TAXES 8,865 2,919 5,946 203.7%
INCOME TAXES 3,359 350 (3,009) -859.7%
NET EARNINGS $5,506 $2,569 $2,937 114.3%
BASIC EARNINGS PER SHARE:
NET EARNINGS $0.23 $0.22 $0.01 4.5%
WEIGHTED AVERAGE SHARES
OUTSTANDING 23,600 11,637 11,963 102.8%
DILUTED EARNINGS PER SHARE:
NET EARNINGS $0.21 $0.12 $0.09 75.0%
WEIGHTED AVERAGE SHARES
OUTSTANDING 26,668 23,252 3,416 14.7%
SIX MONTHS ENDED JUNE 30,
As Restated BETTER (WORSE)
2005 2004 DIFF %
OPERATING REVENUES
FLIGHT OPERATIONS $330,111 $243,726 $86,385 35.4%
ALL OTHER 1,320 918 402 43.8%
TOTAL OPERATING REVENUE 331,431 244,644 86,787 35.5%
OPERATING EXPENSES
FLIGHT 93,751 78,507 (15,244) -19.4%
MAINTENANCE 50,695 37,888 (12,807) -33.8%
AIRCRAFT COSTS 48,199 37,097 (11,102) -29.9%
FUEL 61,809 34,565 (27,244) -78.8%
FLIGHTS SUBCONTRACTED
TO OTHER CARRIERS 1,725 1,599 (126) -7.9%
COMMISSIONS 16,561 11,131 (5,430) -48.8%
DEPRECIATION AND AMORTIZATION 3,420 2,561 (859) -33.5%
SALES, GENERAL AND ADMINISTRATIVE 27,304 23,269 (4,035) -17.3%
TOTAL OPERATING EXPENSES 303,464 226,617 (76,847) -33.9%
OPERATING INCOME 27,967 18,027 9,940 55.1%
OTHER INCOME (EXPENSE)
INTEREST EXPENSE (2,127) (2,789) 662 23.7%
INTEREST INCOME 510 247 263 106.5%
OTHER, NET (1,226) (980) (246) -25.1%
TOTAL OTHER, NET (2,843) (3,522) 679 19.3%
EARNINGS BEFORE INCOME TAXES 25,124 14,505 10,619 73.2%
INCOME TAXES 9,720 4,061 (5,659) -139.3%
NET EARNINGS $15,404 $10,444 $4,960 47.5%
BASIC EARNINGS PER SHARE:
NET EARNINGS $0.72 $0.91 $(0.19) -20.9%
WEIGHTED AVERAGE SHARES
OUTSTANDING 21,325 11,536 9,789 84.9%
DILUTED EARNINGS PER SHARE:
NET EARNINGS $0.59 $0.46 $0.13 28.3%
WEIGHTED AVERAGE SHARES
OUTSTANDING 26,508 23,858 2,650 11.1%
WORLD AIR HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS )
(unaudited)
As Restated
June 30, December 31,
2005 2004
ASSETS
Current assets:
Cash and cash equivalents $46,501 $49,956
Restricted cash 5,936 4,926
Accounts receivable, net 57,850 52,382
Prepaid expenses and
other current assets 15,876 8,335
Deferred tax assets 6,906 6,685
Total current assets 133,069 122,284
Equipment and property, net 34,965 33,193
Intangible equipment and property 7,903 -
Long-term deposits 23,015 18,237
Other assets and
deferred charges, net 5,034 5,603
Goodwill 21,883 -
Total assets $225,869 $179,317
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $30,000 $6,000
Accounts payable 41,659 35,482
Current portion of accrued rent 5,550 5,489
Current portion of deferred rent - 3,242
Unearned revenue 25,757 6,293
Accrued maintenance 6,238 4,179
Accrued salaries, wages
and profit sharing 18,263 20,463
Accrued taxes 7,522 8,482
Other accrued liabilities 6,628 1,861
Total current liabilities 141,617 91,491
Long-term debt, net of
current maturities - 43,879
Deferred gain from sale-leaseback
transactions, net 1,260 1,645
Accrued post-retirement benefits 4,331 4,081
Accrued and deferred rent,
net of current portions 5,120 5,615
Deferred tax liability 4,098 2,208
Total liabilities 156,426 148,919
Stockholders' equity:
Preferred stock - -
Common stock 25 18
Additional paid-in capital 66,636 42,712
Retained earnings 15,929 525
Unearned compensation (290) -
Treasury stock, at cost (12,857) (12,857)
Total stockholders' equity 69,443 30,398
Total liabilities and
stockholders' equity $225,869 $179,317
As Restated and Previously Reported
WORLD AIR HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS AND SIX MONTHS ENDED JUNE 30,
(IN THOUSANDS EXCEPT PER SHARE)
(unaudited)
THREE MONTHS ENDED JUNE 30,
As Restated Previously BETTER (WORSE)
Reported DIFF %
2005 2005
OPERATING REVENUES
FLIGHT OPERATIONS $171,091 $171,976 $(885) -0.5%
ALL OTHER 791 622 169 27.2%
TOTAL OPERATING REVENUE 171,882 172,598 (716) -0.4%
OPERATING EXPENSES
FLIGHT 48,582 48,722 140 0.3%
MAINTENANCE 25,740 27,829 2,089 7.5%
AIRCRAFT COSTS 27,270 27,738 468 1.7%
FUEL 31,338 32,105 767 2.4%
FLIGHTS SUBCONTRACTED TO OTHER
CARRIERS 1,217 1,120 (97) N.M.
COMMISSIONS 7,702 7,702 - 0.0%
DEPRECIATION AND AMORTIZATION 1,965 1,736 (229) -13.2%
SALES, GENERAL AND ADMINISTRATIVE 17,279 17,442 163 0.9%
TOTAL OPERATING EXPENSES 161,093 164,394 3,301 2.0%
OPERATING INCOME 10,789 8,204 2,585 31.5%
OTHER INCOME (EXPENSE)
INTEREST EXPENSE (1,142) (1,142) - 0.0%
INTEREST INCOME 241 241 - 0.0%
OTHER, NET (1,023) (245) (778) -317.6%
TOTAL OTHER, NET (1,924) (1,146) (778) -67.9%
EARNINGS BEFORE INCOME TAXES 8,865 7,058 1,807 25.6%
INCOME TAXES 3,359 2,872 (487) -17.0%
NET EARNINGS $5,506 $4,186 $1,320 31.5%
BASIC EARNINGS PER SHARE:
NET EARNINGS $0.23 $0.18 $0.05 27.8%
WEIGHTED AVERAGE SHARES OUTSTANDING 23,600 23,600 - 0.0%
DILUTED EARNINGS PER SHARE:
NET EARNINGS $0.21 $0.16 $0.05 31.3%
WEIGHTED AVERAGE SHARES OUTSTANDING 26,668 26,671 (3) 0.0%
SIX MONTHS ENDED JUNE 30,
As Restated Previously BETTER (WORSE)
Reported DIFF %
2005 2005
OPERATING REVENUES
FLIGHT OPERATIONS $330,111 $330,996 $(885) -0.3%
ALL OTHER 1,320 1,151 169 14.7%
TOTAL OPERATING REVENUE 331,431 332,147 (716) -0.2%
OPERATING EXPENSES
FLIGHT 93,751 93,891 140 0.1%
MAINTENANCE 50,695 52,784 2,089 4.0%
AIRCRAFT COSTS 48,199 48,667 468 1.0%
FUEL 61,809 62,576 767 1.2%
FLIGHTS SUBCONTRACTED TO OTHER
CARRIERS 1,725 1,628 (97) -6.0%
COMMISSIONS 16,561 16,561 - 0.0%
DEPRECIATION AND AMORTIZATION 3,420 3,191 (229) -7.2%
SALES, GENERAL AND ADMINISTRATIVE 27,304 27,467 163 0.6%
TOTAL OPERATING EXPENSES 303,464 306,765 3,301 1.1%
OPERATING INCOME 27,967 25,382 2,585 10.2%
OTHER INCOME (EXPENSE)
INTEREST EXPENSE (2,127) (2,127) - 0.0%
INTEREST INCOME 510 510 - 0.0%
OTHER, NET (1,226) (448) (778) -173.7%
TOTAL OTHER, NET (2,843) (2,065) (778) -37.7%
EARNINGS BEFORE INCOME TAXES 25,124 23,317 1,807 7.7%
INCOME TAXES 9,720 9,233 (487) -5.3%
NET EARNINGS $15,404 $14,084 $1,320 9.4%
BASIC EARNINGS PER SHARE:
NET EARNINGS $0.72 $0.66 $0.06 9.1%
WEIGHTED AVERAGE SHARES OUTSTANDING 21,325 21,325 - 0.0%
DILUTED EARNINGS PER SHARE:
NET EARNINGS $0.59 $0.54 $0.05 9.3%
WEIGHTED AVERAGE SHARES OUTSTANDING 26,508 26,510 (2) 0.0%
As Restated and Previously Filed
WORLD AIR HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(unaudited)
As Previously
Restated Filed
June 30, June 30,
2005 2005
ASSETS
Current assets:
Cash and cash equivalents $46,501 $46,501 $- 0.0%
Restricted cash 5,936 5,936 - 0.0%
Accounts receivable, net 57,850 55,662 2,188 3.9%
Prepaid expenses and other
current assets 15,876 11,173 4,703 42.1%
Deferred tax assets 6,906 6,203 703 11.3%
Total current assets 133,069 125,475 7,594 6.1%
Equipment and property, net 34,965 35,956 (991) -2.8%
Intangible equipment and property 7,903 7,903 - 0.0%
Long-term deposits 23,015 23,015 - 0.0%
Other assets and deferred charges, net 5,034 5,040 (6) -0.1%
Goodwill 21,883 21,602 281 1.3%
Total assets $225,869 $218,991 6,878 3.1%
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term
debt $30,000 $11,000 19,000 172.7%
Accounts payable 41,659 39,127 2,532 6.5%
Current portion of accrued rent 5,550 5,550 - 0.0%
Unearned revenue 25,757 25,757 - 0.0%
Accrued maintenance 6,238 5,650 588 10.4%
Accrued salaries, wages and
profit sharing 18,263 17,785 478 2.7%
Accrued taxes 7,522 6,246 1,276 20.4%
Other accrued liabilities 6,628 7,057 (429) -6.1%
Total current liabilities 141,617 118,172 23,445 19.8%
Long-term debt, net of current
maturities - 19,000 (19,000) -100.0%
Deferred gain from sale-leaseback
transactions, net 1,260 1,260 - 0.0%
Accrued post-retirement benefits 4,331 4,331 - 0.0%
Accrued and deferred rent, net of
current portions 5,120 3,028 2,092 69.1%
Deferred tax liability 4,098 5,077 (979) -19.3%
Total liabilities 156,426 150,868 5,558 3.7%
Stockholders' equity:
Preferred stock - - - 0.0%
Common stock 25 25 - 0.0%
Additional paid-in capital 66,636 66,636 - 0.0%
Retained earnings 15,929 14,609 1,320 9.0%
Unearned compensation (290) (290) - 0.0%
Treasury stock, at cost (12,857) (12,857) - 0.0%
Total stockholders' equity 69,443 68,123 1,320 1.9%
Total liabilities and
stockholders' equity $225,869 $218,991 6,878 3.1%
First Call Analyst:
FCMN Contact:
DATASOURCE: World Air Holdings, Inc.
CONTACT: Media, Steve Forsyth, +1-770-632-8322, or Investors, Janice
Kuntz, +1-404-352-2841, both of World Air Holdings, Inc.
Web site: http://www.worldairways.com/