Pet Airways, Inc. Announces Fourth Quarter and Full Year Results

Full Year 2010 Revenues of $1.3 million; more than double prior year.

Gross Margin close to breakeven in the fourth quarter 2010.

Mar 28, 2011, 18:19 ET from Pet Airways, Inc.

DELRAY BEACH, Fla., March 28, 2011 /PRNewswire/ -- Pet Airways, Inc. (OTCQB: PAWS), the world's only airline designed specifically for the comfortable and safe transportation of pets, reported results for its fourth quarter and the year ended December 31, 2010.

(Logo: https://photos.prnewswire.com/prnh/20101119/FL05538LOGO )

Andrew Warner, President and CFO said, "We are pleased that we generated record revenues in the fourth quarter and that our gross margin was close to breakeven. We continued to show significant revenue growth both year over year and sequentially reflecting continuing strong demand for our services and ended the year with over $1.5 million in cash and cash equivalents."

Dan Wiesel, Chairman and CEO of Pet Airways, Inc. said, "2010 was an outstanding year that gives us a solid base for 2011. The growth in full year revenues illustrates the demand we are seeing and we look forward to continuing to grow the markets we serve and opening Pet Lounges in more cities in 2011."

Highlights for the Fourth Quarter Ended December 31, 2010

  • Revenue for the fourth quarter of 2010 was $476,000, compared to $382,000 in the fourth quarter of 2009, an increase of approximately 25 percent.
  • Gross loss decreased approximately 90 percent to $(5,500) for the fourth quarter of 2010 compared to$(57,000) in the fourth quarter of 2009.  
  • Net loss for the fourth quarter of 2010 was $(1,419,000) or $(0.04) per share, compared to net loss of $(432,000), or $(0.02) per share in the fourth quarter of 2009. Net loss for the fourth quarter of 2010 included $54,000 of non-cash stock based compensation expense to a non-employee.

Highlights for the Year Ended December 31, 2010

  • Revenue increased approximately 114 percent to $1,348,000, compared to $629,000 in 2009.  
  • Net loss for 2010 was $(4,056,000) or $(0.13) per share, compared to a net loss of $(1,219,000), or $(0.05) per share for 2009.
  • Net loss for 2010 included approximately $1,261,000 or $0.04 per share of non-cash stock based compensation expenses, $362,000 in one-time cost related to completing our reverse acquisition and $141,000 in initial public company reporting costs. No non-cash stock based compensation expense was recorded in 2009.

Guidance

Based on our ability to raise significant additional capital during the first quarter of 2011 to fund our growth and other operating assumptions detailed in the Form 8-K filed with the SEC on March 8, 2011, the Company expects 2011 revenues to be more than double 2010 revenues and we expect to record positive gross margins by the fourth quarter of 2011. The Company expects continued revenue growth and positive gross margins in 2012 and to be breakeven on a cash basis in the fourth quarter of 2012.

Forward-Looking Statements

This press release includes statements that may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995.  All statements other than statements of historical facts, including, without limitation, statements regarding future financial position, business strategy, budgets, projected sales, projected costs, and management objectives, are forward-looking statements.  Terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," "illustrates", or "believes" or the negative thereof, any variation thereon or similar terminology are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely from the results proposed in such statements.  Important factors that could cause actual results to differ from our expectations include, but are not limited to: the costs and availability of financing; our ability to maintain adequate liquidity; our ability to execute our business plan; our ability to control costs; our ability to attract and retain customers; transportation demand; general economic conditions; costs of aviation fuel; competitive pricing pressures; governmental regulation; weather conditions; and statements of assumption underlying any of the foregoing, as well as other factors set forth under the caption "Risk Factors" in the Form 8-K filed with the Securities and Exchange Commission ("SEC") on March 8, 2011 and other filings with the SEC.  Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by the foregoing cautionary statements. We assume no duty to update or revise our forward-looking statements based on changes in our expectations or events after the date hereof.

About Pet Airways, Inc.

Pet Airways Inc. is the first airline specifically designed for the safe and comfortable transportation of pets. Pet Airways' Pawsengers™ travel in the specially equipped main cabin of its planes - where pets are continuously monitored by an In-Flight Pet Attendant and the climate is controlled for maximum pet comfort. With Pet Airways Inc., Pet Parents can be assured their animals will be treated with tender, loving care throughout the journey.  The airline launched flight operations in 2009 and currently serves coast-to-coast destinations across the U.S., including Los Angeles, Phoenix, Denver, Omaha, Chicago, Baltimore, New York, Atlanta and Ft. Lauderdale. It recently announced its expansion into Orlando.

For more information, go to www.petairways.com

Tables Follow –

PET AIRWAYS, INC

CONDENSED CONSOLIDATED BALANCE SHEETS

(Audited)



For The Years Ended December 31,

ASSETS

2010


2009





Current assets:




Cash and cash equivalents

$1,511,057


$171,256

Receivables and prepaid expenses

242,488


-





    Total current assets

1,753,545


171,256





Property and equipment, net

129,959


57,731





Other non-current assets

30,787


31,200





Total assets

$1,914,291


$260,187





LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities:




14% convertible debenture

$   250,000


$            -

Accounts payable and accrued expenses

892,375


89,175

Unearned revenue

125,603


94,616





    Total current liabilities

1,267,978


183,791





Non-current liabilities:




8% convertible debentures, net of discount

304,193


-





Total liabilities

1,572,171


183,791





Stockholders' equity  

342,120


76,396





Total liabilities and stockholders’ equity

$1,914,291


$260,187



PET AIRWAYS, INC

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In $s, except share data)



For the Three Months Ended


For the Twelve Months Ended





December 31,

2010


December 31,

2009





December 31,

2010


December 31,

2009



(Unaudited)



(Audited)

Revenue

$

475,897


$

381,949


$

1,348,491


$

628,829













Cost of revenue


481,430



438,708



1,588,693



890,005













Gross loss


(5,533)



(56,759)



(240,202)



(261,176)













Operating expense:
























Sales, general and administrative


1,233,921



384,569



3,560,555



959,504













Loss from operations


(1,239,454)



(441,328)



(3,800,757)



(1,220,680)













Other income (expense), net


(179,829)



9,615



(255,148)



1,973













Loss before income taxes


(1,419,283)



(431,713)



(4,055,905)



(1,218,707)













(Provision) benefit for income taxes


-



-



-



-













Net loss

$

(1,419,283)


$

(431,713)


$

(4,055,905)


$

(1,218,707)













Net loss per share

$

(0.04)


$

(0.02)


$

(0.13)


$

(0.05)













Weighted average shares used
   in calculation of net loss per share


36,879,832



26,670,468



32,365,036



24,770,195



SOURCE Pet Airways, Inc.



RELATED LINKS

http://www.petairways.com