SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (date of earliest event July 17, 1996
reported):
ATLANTIC COAST AIRLINES, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-21976 13-3621051
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification No.)
incorporation)
1 Export Drive, Sterling VA 20164
(Address of principal executive (Zip Code)
offices)
(703) 406-6500
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last
report)
Registrant is filing this Form 8-K in connection with
the release of its second quarter results. A press release
dated July 3 announcing the Registrant's second quarter
traffic results and a press release dated July 15 regarding
third party financing are also attached.
Registrant hereby incorporates by reference in the report on
Form 8-K the following Exhibits:
Exhibit Description of Exhibits
Number
1 Press Release dated July 17, 1996 regarding Atlantic
Coast Airlines, Inc.
2 Press Release dated July 3, 1996 regarding Atlantic
Coast Airlines, Inc.
3 Press Release dated July 15, 1996 regarding Atlantic
Coast Airlines, Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report on
Form 8-K to be signed on its behalf by the undersigned,
thereunto duly authorized.
ATLANTIC COAST AIRLINES, INC.
a Delaware corporation
By: /S/ James B. Glennon
Name: James B. Glennon
Title: Senior Vice
President, Chief
Financial Officer,
Treasurer, Assistant
Secretary and Director
Dated this 22nd day of July, 1996.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________
EXHIBITS
to
FORM 8-K
under
THE SECURITIES EXCHANGE ACT OF 1934
_______________
Atlantic Coast Airlines, Inc.
(Exact name of registrant as specified in its charter)
INDEX TO EXHIBITS
Exhibit Description of Exhibits
Number
1 Press Release dated July 17, 1996 regarding Atlantic
Coast Airlines, Inc.
2 Press Release dated July 3, 1996 regarding Atlantic
Coast Airlines, Inc.
3 Press Release dated July 15, 1996 regarding Atlantic
Coast Airlines, Inc.
For Immediate Release Contact: Barron Beneski
July 17, 1996 Public Relations
Page 1 of 5 (703) 406-6500
ATLANTIC COAST AIRLINES REPORTS RECORD PROFIT IN SECOND
QUARTER
Second Quarter Highlights Six Month Highlights
- Net income: $8.5 million - Net income: $9.3 million
- Yield rises 16.4% - Yield rises 17.9%
- Earnings per share: $.94 - Earnings per share: $1.04
- Total revenue increase: 21.6% - Total revenue increase: 22.4%
- Break even load factor: 40.2% - Break even load factor: 40.5%
Sterling, Virginia - Atlantic Coast Airlines, Inc. (NASDAQ:
ACAI) ("ACA"), the parent company of Atlantic Coast
Airlines, the United Express carrier in the Eastern U.S.,
today announced financial and operating results for the
second quarter of 1996. ACA reported a net income of $8.5
million, or $.94 per fully diluted share, as compared to a
net income of $5.1 million, or $.52 per fully diluted share
for the second quarter of 1995. ACA also reported a 21.6%
gain in total revenue, to $50.4 million, and a 16.4%
increase in yield, to 51.3 cents per revenue passenger mile.
ACA's second quarter operations resulted in a 6.3% increase
in total passengers carried, to 396,089, and a 4.7 %
increase in revenue passenger miles (RPMs), to 96,679,000.
Available seat miles (ASMs) rose 11.3% to 196,870,000, while
the Company's load factor declined 3.1 percentage points to
49.1%.
Reviewing the second quarter, Kerry Skeen, ACA's Chief
Executive Officer stated, "The second quarter was a period
in which ACA set a number of company records for financial
performance. Most notable was the $8.5 million net income,
the largest quarterly profit in the company's history. ACA
also established new marks for operating margin, at 18.3%;
for yield performance, which was 51.3 cents for the quarter;
and for the Company's lowest-ever break-even load factor of
40.2%."
Skeen added, "No less important than these records is the
fact that ACA will be distributing the largest-ever amount
of profit sharing to its employees later this month,
rewarding the outstanding efforts of those who produced
these positive quarterly results. The upcoming profit
sharing distribution will mark the fifth consecutive quarter
in which ACA's employees have shared in the company's
success."
Continuing the review of the second quarter, James Glennon,
ACA's Chief Financial Officer stated, "ACA's revenue
performance once again highlighted the quarter's financial
results. Total operating revenues rose as a result of ACA's
continued positive yield performance and passenger traffic
increases. ACA's yield gained 16.4%, reaching 51.3 cents,
which, when combined with the quarter's increase in total
passengers and RPMs, resulted in a 21.6% increase in total
operating revenues. As in the first quarter of 1996, we
continue to benefit from our internal focus on yield
enhancement by posting increases above the industry
averages."
For the first six months of 1996, ACA reported a net income
of $9.3 million, or $1.04 per fully diluted share, as
compared to a net income of $1.9 million, or $.20 per fully
diluted share in the first six months of 1995. Total
revenue increased 22.4% in the first half of 1996 to $88.2
million versus $72.1 million in the same period in 1995.
Yield increased 17.9%, reaching 51.2 cents for the first six
months of 1996 versus 43.4 cents in 1995.
ACA's operational results for the first six months reflected
a 5.6% increase in total passengers carried, to 695,663, and
a 4.1% rise in RPMs, to 169,431,000. ASMs increased 5.2%,
reaching 370,625,000, while the Company's load factor
declined 0.5 percentage points to 45.7%
ACA also reviewed other recent developments:
- - In May, ACA named Richard J. Kennedy as the Company's
General Counsel. Mr. Kennedy came to ACA from British
Aerospace subsidiary JSX Capital, Corp., where he directed
legal and financial arrangements for aircraft and airline
transactions. ACA stated that Mr. Kennedy's proven
experience with legal and financial aspects of aircraft
leasing and contract negotiations, along with his broad
familiarity with ACA's past activities, will add value in
making key decisions in the future. Mr. Kennedy holds his
J.D. from Georgetown University Law Center and his M.B.A.
from NYU's Stern School of Business.
- - In June, ACA announced that it had reached agreement with
Aero International (Regional) ("AI(R)") to allow the
Company's order for nine J-41 aircraft to convert to options
without penalty. ACA stated that the agreement with AI(R)
reflected circumstances that did not exist at the time of
the original order, such as the availability of a limited
number of used J-41's and more favorable financing
alternatives.
- - Earlier this week, ACA announced that it had secured third
party aircraft financing for two of its existing J-41
aircraft. The company stated that due to its improved
financial position, ACA was able to explore and secure
alternative financing arrangements to aircraft manufacturer
arranged terms.
ACA is headquartered in Sterling, Virginia and employs over
1,200 aviation professionals, most of whom are based in the
Northern Virginia area. The company operates its hub at
Washington Dulles International Airport, where it offers
nearly 200 departures every business day. From Washington
Dulles, ACA serves 40 cities in 16 states with non-stop
service. Its route system spans the East Coast from Maine
to South Carolina and as far west as Ohio. ACA operates one
of the youngest and most modern aircraft fleet in service
today, with an average age of approximately 4.3 years.
Operating Results - Second
Quarter
1996 1995 % Change
Revenue passenger miles (000's) 96,679 92,322 4.7 %
Available seat miles (000's) 196,870 176,887 11.3%
Load factor 49.1% 52.2% (3.1pts)
Passengers 396,089 372,529 6.3 %
Yield per RPM (cents) 51.3 44.1 16.4 %
Total revenue per ASM (cents) 23.8 20.5 16.3 %
Operating cost per ASM* (cents) 21.0 20.2 (4.0 %)
Break-even load factor* 40.2% 44.9% 4.7 pts
Average passenger trip length 244 248 (1.6%)
* Before restructuring charge reversal
Financial Results - Second
Quarter (unaudited)
($000's)
1996 1995 % Change
Passenger revenue $49,565 $40,680 21.8 %
Other revenue 800 725 10.4%
Total operating revenues 50,365 41,405 21.6 %
Operating expenses before 41,326 35,722 15.7%
restructuring
Restructuring charges (164)
(reversals)
Total operating expenses 41,162 35,722 15.2%
Net operating income 9,203 5,683 61.9%
Non-operating expenses 293 562 (47.9%)
Income before taxes 8,910 5,121 74.0%
Income taxes 446
Net income $8,464 $5,121 65.3%
Income per common and common
equivalent share $0.94 $0.52 80.8%
Weighted average number of
common
and common equivalent 9,005 9,990
shares (000's)
Operating Results - Six Months
1996 1995 % Change
Revenue passenger miles (000's) 169,431 162,730 4.1 %
Available seat miles (000's) 370,625 352,218 5.2%
Load factor 45.7% 46.2% (0.5pts)
Passengers 695,663 658,776 5.6 %
Yield per RPM (cents) 51.2 43.4 17.9 %
Total revenue per ASM (cents) 23.4 20.1 16.6 %
Operating cost per ASM* (cents) 21.1 19.6 (7.6 %)
Break-even load factor* 40.5% 44.3% 3.8 pts
Average passenger trip length 244 247 (1.4%)
* Before restructuring charge reversal
Financial Results - Six Months
(unaudited)
($000's)
1996 1995 % Change
Passenger revenue $86,696 $70,633 22.7 %
Other revenue 1,526 1,452 5.1%
Total operating revenues 88,222 72,085 22.4 %
Operating expenses before 78,326 69,191 11.7%
restructuring
Restructuring charges (426)
(reversals)
Total operating expenses 77,900 69,191 12.6%
Net operating income 10,322 2,894
Non-operating expenses 513 955 (46.3%)
Income before taxes 9,809 1,939
Income taxes 482
Net income $9,327 $1,939
Income per common and common
equivalent share $1.04 $0.20
Weighted average number of
common
and common equivalent 8,968 8,800
shares (000's)
ACA's conference call with industry analysts may be heard
after 5:30pm (EDT). To access the call, dial 800-633-8284
and enter ACA's ID # - 1847239. The recording will be
available for 24 hours.
Note: To retrieve the latest ACA/United Express news
releases, please visit ACA's home page, The Express Lane to
The Friendly Skies, on the Internet, at the address:
http://www.AtlanticCoast.com
# # #
UNITED EXPRESS NEWS
For Immediate Release Contact: Barron Beneski
July 3, 1996 Public Relations
Page 1 of 2 (703) 406-6500
ATLANTIC COAST AIRLINES REPORTS JUNE AND
SECOND QUARTER TRAFFIC RESULTS
Sterling, Virginia - Atlantic Coast Airlines
(Nasdaq/National Market: ACAI) ("ACA"), the United Express
carrier in the Eastern United States, today announced
preliminary passenger traffic results for the month of June
1996. During the month, ACA carried 134,372 passengers, a
1.4% increase over June 1995. ACA generated 32,428,000
revenue passenger miles (RPMs), a decrease of 1.0%, while
available seat miles (ASMs) increased 4.9% to 64,132,000.
The carrier's load factor in June was 50.6%, a 3.0
percentage point decline versus the same month last year.
ACA also reported preliminary passenger traffic results for
the second quarter of 1996. In the quarter, ACA carried
396,564 passengers, a 6.5% increase over the same quarter in
1995. RPMs were 96,575,000, an increase of 4.6%, while ASMs
were 196,870,000, an 11.3% increase, resulting in a 3.1
percentage point load factor decrease.
"We are disappointed that June's passenger traffic and
operations were negatively affected by the unusually heavy
thunderstorm activity that we recently experienced in the
East," said ACA's CEO Kerry Skeen. "However, the overall
results for the second quarter were characterized by traffic
growth in RPMs and total passengers, as well as continued
strong yield performance."
For the first six months of the year, ACA carried 696,138
passengers, a 5.7% increase over the same six month period
in 1995. RPMs were 169,327,000, an increase of 4.1%, while
ASMs were 370,725,000, a 5.3% increase, resulting in a 0.5
percentage point load factor decrease.
Atlantic Coast Airlines - Passenger Traffic Results
June 1996 versus June 1995
June 1996 June 1995 % Change
Revenue passenger 32,428 32,772 (1.0%)
miles (000)
Available seat 64,132 61,113 4.9%
miles (000)
Load factor 50.6% 53.6% (3.0) points
Passengers 134,372 132,472 1.4%
Second quarter 1996 versus Second quarter 1995
2nd quarter 2nd quarter % Change
1996 1995
Revenue passenger 96,575 92,322 4.5%
miles (000)
Available seat 196,870 176,887 11.3%
miles (000)
Load factor 49.1% 52.2% (3.1) points
Passengers 396,564 372,529 6.5%
Six Months - 1996 versus 1995
6 Months 6 Months % Change
1996 1995
Revenue passenger 169,327 162,370 4.1%
miles (000)
Available seat 370,725 352,218 5.3%
miles (000)
Load factor 45.7% 46.2% (0.5) points
Passengers 696,138 658,776 5.7%
Note: To retrieve the latest ACA/United Express news
releases, please visit ACA's home page, The Express Lane to
The Friendly Skies, on the Internet, at the address:
http://www.AtlanticCoast.com
For Immediate Release Contact: Barron Beneski
July 15, 1996 Public Relations
Page 1 of 2 (703) 406-6500
ATLANTIC COAST AIRLINES SECURES THIRD PARTY FINANCING FOR
TWO J-41 AIRCRAFT
Sterling, Virginia - United Express carrier Atlantic Coast
Airlines (Nasdaq/National Market:ACAI) ("ACA"), today
announced that it has concluded a third party aircraft
financing transaction for two of its Jetstream 41 aircraft
with FINOVA Capital Corporation ( NYSE:FNV) ("FINOVA"). The
agreement represents ACA's first such financing that was not
arranged through an aircraft manufacturer. Under the
agreement, Phoenix-based FINOVA purchased the twenty-nine
passenger turboprop aircraft and will lease them back to ACA
for a ten year and nine month term. The two companies did
not disclose the financial details of the transaction.
"The improvement in ACA's financial position enabled us to
explore and secure alternative financing arrangements for
these two aircraft," said James Glennon, ACA's Chief
Financial Officer. "The FINOVA agreement came as a result
of ACA's consistent record of profitability over the past
fifteen months, as well as our positive outlook going
forward. This transaction is indicative of our plans to
pursue aircraft financing alternatives for other aircraft in
our existing fleet."
The FINOVA Group, Inc., through its principal operating
subsidiary FINOVA Capital Corporation, is one of the leading
publicly-owned commercial finance companies in the U.S.,
serving midsize businesses in market niches. With more than
$7 billion in assets, the company provides sophisticated
secured financing and leasing products ranging generally in
size from $500,000 to $35 million. FINOVA's Transportation
Finance/Capital Services Department markets to companies
that provide transportation equipment and/or services.
ACA is headquartered in Sterling, Virginia and employs over
1,200 aviation professionals, most of whom are based in the
Northern Virginia area. The company operates its hub at
Washington Dulles International Airport, where it offers
nearly 200 departures every business day. From Washington
Dulles, ACA serves 40 cities in 16 states with non-stop
service. Its route system spans the East Coast from Maine
to South Carolina and as far west as Ohio. ACA operates one
of the youngest and most modern aircraft fleet in service
today, with an average age of approximately 4.3 years.
Note: To retrieve the latest ACA/United Express news
releases, please visit ACA's home page, The Express Lane to
The Friendly Skies, on the Internet, at the address:
http://www.AtlanticCoast.com
# # #
