Earnings - well it was today - here it is.
Wednesday October 22 1:39 PM EDT
Company Press Release
Kitty Hawk, Inc. Third Quarter Net Income Up 114% Vs. Last
Year; Cites Continuing Growth In Air Freight Carrier Business
DALLAS, Oct. 22 /PRNewswire/ -- Kitty Hawk, Inc. (Nasdaq:KTTY), a leading provider of air charter
logistics management and air freight carrier services, announced record net income of $3.0 million or $0.29 per
share for its 1997 third quarter ended September 30, 1997 compared with the previous year's third quarter net
income of $1.4 million or $0.18 per share. Earnings per share in third quarter 1997 are based on approximately
10.5 million weighted shares outstanding, compared with approximately 8.0 million shares at the end of third
quarter 1996. Total revenues in third quarter 1997 rose 35 percent to $41.2 million from $30.5 million a year
ago.
For the nine months ended September 30, 1997, total revenues were $101.7 million compared with $82.8
million for the same period of 1996. Net income for the first nine months of 1997 was $7.0 million or $0.67 per
share compared with net income of $252,000 or $0.03 per share for the first nine months of 1996, which
included a non-recurring $4.2 million (or $2.5 million net of income tax benefit) stock grant to executives in
second quarter 1996. Net cash generated by operating activities in the third quarter increased 10 percent
compared with the same period of 1996.
''We are extremely pleased with the continuing growth in our air freight carrier business, which was the main
reason our revenues and earnings were up substantially,'' said M. Tom Christopher, chairman and chief
executive. ''We're getting good utilization of our fleet, and even as we add new aircraft and contracts, we've
consistently been able to exceed target margins.''
Revenues for the company's air freight carrier business were $22.6 million in third quarter 1997 compared with
$14.3 million for the same period last year, a 58 percent gain. Air freight carrier flight hours rose 62 percent
compared with last year, primarily as the result of continuing increases to fleet size. Revenues from the
company's air charter logistics management operations were $18.6 million for third quarter 1997 compared with
$16.1 million for the third quarter of 1996.
''Demand for our air freight carrier services continues to exceed our capacity, so we were extremely pleased
that during the third quarter, we were able to acquire 16 Boeing 727 aircraft from American International
Airways, Inc.,'' said Christopher. ''Kitty Hawk now has one of the world's largest fleets of Boeing 727 cargo
aircraft.''
Merger Update
In a separate transaction during the quarter, Kitty Hawk signed a definitive agreement to acquire by merger
American International Airways, Kalitta Flying Service, Inc., American International Travel, Inc., Flight One
Logistics, Inc. and O.K. Turbines, Inc. (collectively, the Kalitta companies) for $20 million in cash and
approximately 5.1 million shares of Kitty Hawk common stock. The company announced today that it has given
the Kalitta companies notice asserting that the Kalitta companies have failed to meet certain conditions to the
closing of the merger and, therefore, Kitty Hawk has the right to terminate the merger agreement. Kitty Hawk
management is reviewing the effect of these failures and has notified the Kalitta companies that a reduction in the
merger consideration and other modifications are necessary if Kitty Hawk is to proceed with the merger. Kitty
Hawk management noted that at this time, it does not know how these matters will be resolved, or whether the
merger will be consummated.
Operating its own and leased aircraft, Kitty Hawk provides air freight carrier service throughout North America,
South America, and the Pacific Rim, emphasizing highly-reliable, time-sensitive service. Kitty Hawk is also the
leading provider of same-day air charter logistics management services in the United States, managing air
charter shipments of machinery, parts, critical just-in-time inventory, and other heavyweight freight. The
company trades on the Nasdaq under the symbol ''KTTY.'' For more information on the company, visit Kitty
Hawk's Web site at kha.com.
This release may contain forward-looking statements relating to future financial results or business expectations.
Business plans may change as circumstances warrant. Actual results may differ materially as a result of factors
over which the company has no control. Such factors include, but are not limited to: acquisitions, recruiting and
new business solicitation efforts, regulatory changes and general economic conditions. These risk factors and
additional information are included in the Company's reports on file with the Securities and Exchange
Commission.
KITTY HAWK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands, except per share data)
Three Months Ended Nine Months ended
Sept 30, Sept 30, Sept 30, Sept 30,
Revenues
Airfreight carrier $22,552 $14,341 $55,789 $39,615
Air logistics 18,647 16,134 45,878 43,144
Total revenues 41,199 30,475 101,667 82,759
Cost of revenues
Airfreight carrier 15,232 9,348 38,076 29,688
Air logistics 17,219 14,872 42,038 39,139
Total costs of revenues 32,451 24,220 80,114 68,827
Gross Profit 8,748 6,255 21,553 13,932
General and administrative
expenses 2,666 2,305 7,550 6,877
Non-qualified employee profit
sharing expense 489 480 1,161 447
Stock option grants to executives 0 (1) 0 4,231
Operating income 5,593 3,471 12,842 2,377
Interest expense (760) (506) (1,809) (1,530)
Loss on sale of assets -- (589) -- (589)
Other income 154 125 579 263
Income before income taxes 4,987 2,501 11,612 521
Income taxes 1,995 1,100 4,645 269
Net income $2,992 $1,401 $6,967 $252
Net income per share $0.29 $0.18 $0.67 $0.03
Weighted average common and
common equivalent shares
outstanding 10,452 7,968 10,452 7,968
KITTY HAWK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
1997 1996
(unaudited) (audited)
Current assets:
Cash and cash equivalents $2,403 $27,320
Trade accounts receivable 21,645 37,828
Other current assets 12,396 9,480
Total current assets 36,444 74,628
Net property and equipment 140,357 48,399
Total assets $176,801 $123,027
Current liabilities $36,341 $41,110
Long-term debt 72,674 21,080
Deferred income tax expense 2,545 2,545
Stockholders' equity 65,241 58,292
Total liabilities and stockholders'
equity $176,801 $123,027
SOURCE Kitty Hawk, Inc. |
