AirNet Systems, Inc. Reports First Quarter Results

Apr 27, 2001, 01:00 ET from AirNet Systems, Inc.

    COLUMBUS, Ohio, April 27 /PRNewswire/ -- AirNet Systems, Inc. (NYSE:   ANS)
 today reported total net revenues for the three months ended March 31, 2001
 increased to $34.3 million from $33.7 million last year, despite one less
 flying day and weaker economic conditions.  Net income was $1.3 million for
 first quarter 2001 versus $1.4 million for the same period a year ago.  Net
 income per diluted share was $0.12 for both quarterly periods.
     New business and price increases contributed to a $0.7 million increase in
 bank delivery revenues in the first quarter, reversing a slight decline during
 the previous two quarters.  Bank revenues totaled $25.8 million, compared to
 $25.1 million for the same period a year ago. Route analyses resulted in
 streamlined routing procedures, which also contributed to the improved
 results.
     Express delivery revenues were affected by the slowing U.S. economy,
 including significant volume reduction from a key customer during first
 quarter 2001.  As a result, Express delivery revenues declined $0.2 million to
 $8.2 million for first quarter 2001 versus $8.4 million a year ago.  Medical
 shipments continued to achieve solid growth during first quarter 2001.
 Shipments for Mercury Business Services increased 8.9% during first quarter
 2001 due to expansion into the Chicago market, which offset weakness in other
 markets that occurred during the first quarter 2001.
     Operating expenses rose 2.8% for this year's first quarter, primarily due
 to higher selling, general and administrative expense.  First quarter 2001
 results reflected increased aircraft maintenance as well as additional sales
 positions during the past several months to support growth initiatives for the
 Express division.  Selling, general and administrative expense for first
 quarter 2000 benefited from an insurance refund of approximately $275,000.
 Aircraft fuel expense increased at a slower rate than market prices during
 first quarter 2001 due to the Company's fuel rebate surcharge program.
     Joe Biggerstaff, President and Chief Executive Officer, said, "We are
 pleased with the first quarter 2001 results, particularly in light of current
 economic conditions.  There are some positive indicators within our bank
 delivery segment in response to recent efforts to help our bank customers
 solve their transportation needs.  In the Express segment, we have completed
 most of the sales and support additions necessary to fully implement our
 regional sales strategy.  The growth in the medical product line experienced
 in the first quarter is expected to continue through the remainder of the
 year."
     Bill Sumser, Chief Financial Officer, commented, "We continue to pursue
 ongoing cost control opportunities; however, reductions in the major
 categories of expense were addressed this past year.  Our primary focus during
 2001 is on revenue growth within the Express segment as we seek to utilize our
 airline more efficiently and work closely with wholesale forwarders, logistics
 providers and integrators."
     Mr. Sumser added, "Currently, our second quarter 2001 results are
 projected to be similar to the second quarter results of a year ago and we
 anticipate a positive impact from our sales force additions to be evident in
 revenue and income growth in the later half of the year."
     AirNet Systems, Inc. provides time-critical air transportation services
 for small package shippers and banking customers to more than 100 cities
 nationwide.  AirNet's fleet of 120 aircraft, including 33 Learjets, departs
 most cities several hours after the major integrators.
 
     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 include forward-looking statements regarding
 future events and the future financial performance of AirNet.  These forward-
 looking statements include comments on AirNet's future growth and operational
 strategies.  These statements involve certain risks and uncertainties that may
 cause the actual events or results to differ materially from those indicated
 by such forward-looking statements.  Potential risks and uncertainties
 include, but are not limited to, potential regulatory changes by the Federal
 Aviation Administration or the Federal Reserve; adverse weather conditions;
 the impact of a potentially weakening U.S. economy on time-critical shipment
 volumes; the acceptance of AirNet's time-critical service offerings by
 targeted markets in the express segment; availability of qualified pilots and
 support personnel; and other risks and uncertainties detailed from time to
 time in AirNet's periodic reports to the Securities and Exchange Commission,
 including AirNet's Annual Report on Form 10-K for the year ended December 31,
 2000.  All forward-looking statements made in this press release are based on
 information presently available to management of AirNet.  AirNet assumes no
 obligation to update any forward-looking statements.
     Go to www.AirNet.com for comprehensive investor information.
 
                       FINANCIAL AND OPERATIONAL SUMMARY
                                  (Unaudited)
 
                                                        Three Months Ended
                                                             March 31
                                                        2001          2000
     Financial Data
       (in thousands, except per share data):
     Air transportation revenues:
       Bank delivery                                  $25,783        $25,080
       Express delivery                                 8,176          8,427
     Fixed base and other operations                      363            167
     Total net revenues                                34,322         33,674
 
     Expenses
       Wages and benefits                               4,877          4,598
       Aircraft fuel                                    3,011          2,919
       Aircraft maintenance                             2,730          2,506
       Ground couriers and other outside services       6,741          6,947
       Depreciation                                     3,495          3,408
       Other                                            5,784          6,127
       Fixed base operations                              290            284
       Selling, general and administrative              4,688          3,970
     Total expenses                                    31,616         30,759
 
     Income from operations                             2,706          2,915
 
     Interest expense                                     474            626
     Provision for income taxes                           912            915
     Net income                                        $1,320         $1,374
 
     Net income per share - basic and assuming
       dilution                                         $0.12          $0.12
 
     Weighted average shares outstanding
       - Basic                                         10,922         11,410
       - Assuming dilution                             10,933         11,412
 
     Balance Sheet Data - as of period ended
       (in thousands):
     Current assets                                   $29,983        $33,711
     Net property and equipment                        87,810         79,799
     Total assets                                     127,413        124,906
 
     Current liabilities                               10,369         11,698
     Long-term debt                                    25,478         39,375
     Shareholders' equity                              80,043         69,968
 
     Operational Data:
     Bank delivery:
       Shipments                                      820,000        838,000
       Pounds                                       8,094,000      8,190,000
 
     Express delivery shipments:
       ANX (on the AirNet airline)                     29,200         35,800
       SDX (on other carriers)                         13,000         14,700
       Charter                                          1,100          1,100
       Ground                                           3,000          2,900
       Mercury Business Services                      108,900        100,000
       Other                                                -            800
       Total                                          155,200        155,300
 
     Express delivery pounds:
       ANX (on the AirNet airline)                    778,300        790,900
       SDX (on commercial carriers)                   273,700        380,500
       Charter                                        267,700        201,900
       Ground                                         774,300        336,100
       Mercury Business Services                      385,800        360,600
       Other                                                -          6,000
       Total                                        2,479,800      2,076,000
 
 
     Note:  Certain 2000 balances have been reclassified to conform to
            2001 presentation.
 
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SOURCE AirNet Systems, Inc.
    COLUMBUS, Ohio, April 27 /PRNewswire/ -- AirNet Systems, Inc. (NYSE:   ANS)
 today reported total net revenues for the three months ended March 31, 2001
 increased to $34.3 million from $33.7 million last year, despite one less
 flying day and weaker economic conditions.  Net income was $1.3 million for
 first quarter 2001 versus $1.4 million for the same period a year ago.  Net
 income per diluted share was $0.12 for both quarterly periods.
     New business and price increases contributed to a $0.7 million increase in
 bank delivery revenues in the first quarter, reversing a slight decline during
 the previous two quarters.  Bank revenues totaled $25.8 million, compared to
 $25.1 million for the same period a year ago. Route analyses resulted in
 streamlined routing procedures, which also contributed to the improved
 results.
     Express delivery revenues were affected by the slowing U.S. economy,
 including significant volume reduction from a key customer during first
 quarter 2001.  As a result, Express delivery revenues declined $0.2 million to
 $8.2 million for first quarter 2001 versus $8.4 million a year ago.  Medical
 shipments continued to achieve solid growth during first quarter 2001.
 Shipments for Mercury Business Services increased 8.9% during first quarter
 2001 due to expansion into the Chicago market, which offset weakness in other
 markets that occurred during the first quarter 2001.
     Operating expenses rose 2.8% for this year's first quarter, primarily due
 to higher selling, general and administrative expense.  First quarter 2001
 results reflected increased aircraft maintenance as well as additional sales
 positions during the past several months to support growth initiatives for the
 Express division.  Selling, general and administrative expense for first
 quarter 2000 benefited from an insurance refund of approximately $275,000.
 Aircraft fuel expense increased at a slower rate than market prices during
 first quarter 2001 due to the Company's fuel rebate surcharge program.
     Joe Biggerstaff, President and Chief Executive Officer, said, "We are
 pleased with the first quarter 2001 results, particularly in light of current
 economic conditions.  There are some positive indicators within our bank
 delivery segment in response to recent efforts to help our bank customers
 solve their transportation needs.  In the Express segment, we have completed
 most of the sales and support additions necessary to fully implement our
 regional sales strategy.  The growth in the medical product line experienced
 in the first quarter is expected to continue through the remainder of the
 year."
     Bill Sumser, Chief Financial Officer, commented, "We continue to pursue
 ongoing cost control opportunities; however, reductions in the major
 categories of expense were addressed this past year.  Our primary focus during
 2001 is on revenue growth within the Express segment as we seek to utilize our
 airline more efficiently and work closely with wholesale forwarders, logistics
 providers and integrators."
     Mr. Sumser added, "Currently, our second quarter 2001 results are
 projected to be similar to the second quarter results of a year ago and we
 anticipate a positive impact from our sales force additions to be evident in
 revenue and income growth in the later half of the year."
     AirNet Systems, Inc. provides time-critical air transportation services
 for small package shippers and banking customers to more than 100 cities
 nationwide.  AirNet's fleet of 120 aircraft, including 33 Learjets, departs
 most cities several hours after the major integrators.
 
     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 include forward-looking statements regarding
 future events and the future financial performance of AirNet.  These forward-
 looking statements include comments on AirNet's future growth and operational
 strategies.  These statements involve certain risks and uncertainties that may
 cause the actual events or results to differ materially from those indicated
 by such forward-looking statements.  Potential risks and uncertainties
 include, but are not limited to, potential regulatory changes by the Federal
 Aviation Administration or the Federal Reserve; adverse weather conditions;
 the impact of a potentially weakening U.S. economy on time-critical shipment
 volumes; the acceptance of AirNet's time-critical service offerings by
 targeted markets in the express segment; availability of qualified pilots and
 support personnel; and other risks and uncertainties detailed from time to
 time in AirNet's periodic reports to the Securities and Exchange Commission,
 including AirNet's Annual Report on Form 10-K for the year ended December 31,
 2000.  All forward-looking statements made in this press release are based on
 information presently available to management of AirNet.  AirNet assumes no
 obligation to update any forward-looking statements.
     Go to www.AirNet.com for comprehensive investor information.
 
                       FINANCIAL AND OPERATIONAL SUMMARY
                                  (Unaudited)
 
                                                        Three Months Ended
                                                             March 31
                                                        2001          2000
     Financial Data
       (in thousands, except per share data):
     Air transportation revenues:
       Bank delivery                                  $25,783        $25,080
       Express delivery                                 8,176          8,427
     Fixed base and other operations                      363            167
     Total net revenues                                34,322         33,674
 
     Expenses
       Wages and benefits                               4,877          4,598
       Aircraft fuel                                    3,011          2,919
       Aircraft maintenance                             2,730          2,506
       Ground couriers and other outside services       6,741          6,947
       Depreciation                                     3,495          3,408
       Other                                            5,784          6,127
       Fixed base operations                              290            284
       Selling, general and administrative              4,688          3,970
     Total expenses                                    31,616         30,759
 
     Income from operations                             2,706          2,915
 
     Interest expense                                     474            626
     Provision for income taxes                           912            915
     Net income                                        $1,320         $1,374
 
     Net income per share - basic and assuming
       dilution                                         $0.12          $0.12
 
     Weighted average shares outstanding
       - Basic                                         10,922         11,410
       - Assuming dilution                             10,933         11,412
 
     Balance Sheet Data - as of period ended
       (in thousands):
     Current assets                                   $29,983        $33,711
     Net property and equipment                        87,810         79,799
     Total assets                                     127,413        124,906
 
     Current liabilities                               10,369         11,698
     Long-term debt                                    25,478         39,375
     Shareholders' equity                              80,043         69,968
 
     Operational Data:
     Bank delivery:
       Shipments                                      820,000        838,000
       Pounds                                       8,094,000      8,190,000
 
     Express delivery shipments:
       ANX (on the AirNet airline)                     29,200         35,800
       SDX (on other carriers)                         13,000         14,700
       Charter                                          1,100          1,100
       Ground                                           3,000          2,900
       Mercury Business Services                      108,900        100,000
       Other                                                -            800
       Total                                          155,200        155,300
 
     Express delivery pounds:
       ANX (on the AirNet airline)                    778,300        790,900
       SDX (on commercial carriers)                   273,700        380,500
       Charter                                        267,700        201,900
       Ground                                         774,300        336,100
       Mercury Business Services                      385,800        360,600
       Other                                                -          6,000
       Total                                        2,479,800      2,076,000
 
 
     Note:  Certain 2000 balances have been reclassified to conform to
            2001 presentation.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X92111502
 
 SOURCE  AirNet Systems, Inc.