Kitty Hawk, Inc. (AMEX:KHK), the parent company of Kitty Hawk
Cargo, Inc. and Kitty Hawk Aircargo, Inc., today reported fourth
quarter 2005 revenue of $45.9 million, an increase of $1.5 million
compared to fourth quarter 2004. Due largely to the investment in
the Company's scheduled airport-to-airport less than truckload
(LTL) deferred freight network, a $1.3 million write down in the
value of the Company's Boeing 727-200 aircraft parts and supplies
and a $1.1 million increase in its reserve for surplus Boeing
727-200 aircraft parts and supplies, Kitty Hawk generated a net
loss allocable to common stockholders for the fourth quarter of
2005 of $4.1 million, or a loss of $0.08 per diluted common share.
For the fourth quarter of 2004, Kitty Hawk reported net income of
$5.4 million or $0.11 per diluted share, which included the
reversal of $4.7 million of aircraft maintenance expenses. "The
fourth quarter of 2005 was one of the most significant quarterly
periods in Kitty Hawk's operating history," said Robert W. Zoller,
President and CEO. "During the fourth quarter, we launched our new
scheduled airport-to-airport LTL ground network, significantly
improved our balance sheet and began to realize the efficiencies
from the completed integration of our Boeing 737-300SF cargo
aircraft into the Kitty Hawk fleet. In addition, we strengthened
our management team and positioned the Company for growth in 2006.
As of March 1, we are providing expedited air cargo service to 57
North American markets and scheduled LTL ground service to 46 North
American markets, including numerous international freight
gateways. Today Kitty Hawk is the only independent combined air and
ground heavy weight freight network on the continent. "We have been
very encouraged by the outstanding service levels of our new
scheduled airport-to-airport LTL network," said Mr. Zoller. "From
our start-up on October 31, 2005 through February 28, 2006, we have
grown our ground network customer base to more than 150 customers
and achieved an impressive on-time performance to the customer of
94.2% with a completion factor of 99.99% and loss damage ratio of
0.00002%." "The successful start up of the scheduled
airport-to-airport LTL ground service, the higher lease costs of
the fuel-efficient Boeing 737-300SF's and higher maintenance costs
contributed to the net loss for the fourth quarter," said James R.
Kupferschmid, Vice President and Chief Financial Officer. "We
finished the fourth quarter with $26.6 million in cash and have
availability on our line of credit of more than $6.5 million," Mr.
Kupferschmid added. Financial Results For the full year 2005 Kitty
Hawk reported $156.7 million in revenue, compared to $158.5 million
for the full year 2004. The Company reported a net loss allocable
to common stockholders of $8.8 million, or a loss of $0.17 per
diluted common share for the full year 2005, compared to net income
of $6.5 million, or $0.12 per diluted share for the full year 2004.
Scheduled freight revenue for the fourth quarter of 2005 was $43.9
million, an increase of $857,000 compared to the fourth quarter
2004. Scheduled freight revenue for the full year 2005 was $151.9
million, compared to $154.0 million for the full year in 2004.
Fourth quarter 2005 system chargeable weight (accounting for
associated oversize and special handling requirements) was
unchanged as compared with the fourth quarter of 2004 and average
yield (revenue per unit of chargeable weight) increased 2.0% over
the fourth quarter of 2004. Full year 2005 system chargeable weight
decreased 8.7% and average yield increased 8.0% over the full year
2004. The decrease in chargeable weight was due to reduced demand
for the Company's expedited air freight services, which was
primarily attributable to higher prices charged as a result of
higher aircraft fuel costs. The yield increase was primarily due to
an increase in the fuel surcharge, the implementation of a security
surcharge and a revised pricing structure implemented at the
beginning of 2005. The yield increase was partially offset by
competitive pricing pressures and a higher proportion of Kitty
Hawk's chargeable weight during the fourth quarter 2005 from lower
yielding markets and lower yielding services, including the
Company's new LTL ground network. During 2004 and 2005, the Company
incurred $1.9 million and $3.7 million respectively in one-time
costs, including induction expenses and capital expenditures, to
integrate the Boeing 737-300SF cargo aircraft into the current
fleet and operations. The Company does not anticipate incurring
additional Boeing 737-300SF cargo aircraft induction costs during
2006. As of December 31, 2005, the Company operated seven Boeing
737-300SF cargo aircraft under operating leases, five owned Boeing
727-200 cargo aircraft and five Boeing 727-200 cargo aircraft
available under an aircraft and engine use agreement. 2006 Outlook
Due to the seasonality of the business and continued investment in
the scheduled airport-to-airport LTL ground network, the Company
expects a net loss in the first quarter of 2006 that will exceed
the fourth quarter 2005 net loss. During the first two quarters of
2006, the Company expects its transportation and freight handling
expenses to continue to increase from the fourth quarter 2005 level
due to the Company's continued investment in its scheduled
airport-to-airport LTL ground network. In addition, the Company
expects its capital expenditures for the full year 2006 to
approximately match its historical annual rate of approximately $3
million. "We are already seeing signs that our investment in the
scheduled airport-to-airport LTL ground network, as well as our
continued strong air cargo service, is increasing our revenue base
and positioning us as a more valuable resource for our freight
forwarder customers in North America and as a strategic partner for
international air carriers at U.S. gateways," said Mr. Zoller. "As
a result, we expect to expand our revenues as 2006 progresses and
believe we are positioned over the long term for profitable growth
in a high aircraft fuel cost operating environment." Conference
Call Information Management will host a conference call tomorrow
morning, March 21, 2006, at 9:30 a.m. Central time to review the
financial results. To access the call, dial 800-240-2430, or
303-262-2131 for international callers. To listen to the live web
cast go to: www.kittyhawkcompanies.com in the Investor Relations
area of the web site. A replay of the conference call will be
available approximately one hour after the call's conclusion and
through midnight ET March 28, 2006 by dialing 800-405-2236 or
303-590-3000 for international callers and entering the following
pass code:11055935. followed by the pound sign. About Kitty Hawk,
Inc. www.kittyhawkcompanies.com As a recognized leader in customer
service, Kitty Hawk is the premier provider of guaranteed,
mission-critical, scheduled overnight air and beginning October 31,
2005 of scheduled time-definite airport-to-airport
less-than-truckload (LTL) ground freight transportation to major
business centers and surrounding communities throughout North
America, including, Alaska, Hawaii, Toronto, Canada, and San Juan,
Puerto Rico. With more than 30 years experience in the aviation and
air freight industries, Kitty Hawk plays a key connecting role in
the global supply chain. Kitty Hawk serves the logistics needs of
more than 550 freight forwarders, integrated carriers, logistics
companies and major airlines with its extensive integrated air and
ground network, fleet of Boeing 737-300SF and 727 cargo aircraft,
as well as a 239,000 square-foot cargo warehouse, US Customs
clearance and sort facility at its Fort Wayne, Indiana hub. In
2005, Kitty Hawk became the North American launch customer for the
fuel-efficient and environmentally-friendly Boeing 737-300SF cargo
aircraft. Kitty Hawk's air and ground cargo networks and
award-winning, guaranteed overnight time-definite service are ideal
for heavy-weight shipments (over 150 lbs), special goods with
unique dimensions, perishables, animals and other valuable
shipments. Statement under the Private Securities Litigation Reform
Act: This report may contain forward-looking statements that are
intended to be subject to the safe harbor protection provided by
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These statements relate to future
events or future financial and operating performance and involve
known and unknown risks and uncertainties that may cause actual
results or performance to be materially different from those
indicated by any forward-looking statements. In some cases, you can
identify forward-looking statements by terminology such as
"forecast," "may," "will," "could," "should," "expect," "intends,"
"plan," "believe," "potential" or other similar words indicating
future events or contingencies. Some of the things that could cause
actual results to differ from expectations are: economic
conditions; the impact of high fuel prices; our inability to
successfully implement and operate our expanded scheduled
airport-to-airport less than truckload deferred freight network;
failure of key suppliers and vendors to perform; our inability to
attract sufficient customers at economical prices for our expanded
ground network; unforeseen increases in liquidity and working
capital requirements related to our expanded ground network;
potential competitive responses from other operators of nationwide
coast-to-coast less than truckload networks; the continued impact
of terrorist attacks, global instability and potential U.S.
military involvement; the Company's significant lease obligations
and indebtedness; the competitive environment and other trends in
the Company's industry; changes in laws and regulations; changes in
the Company's operating costs including fuel; changes in the
Company's business plans; interest rates and the availability of
financing; liability and other claims asserted against the Company;
labor disputes; the Company's ability to attract and retain
qualified personnel; inflation. For a discussion of these and other
risk factors, see the Company's most recent Annual Report on Form
10-K and Quarterly Reports on Form 10-Q filed with the Securities
and Exchange Commission.. All of the forward-looking statements are
qualified in their entirety by reference to the risk factors
discussed therein. These risk factors may not be exhaustive. The
Company operates in a continually changing business environment,
and new risk factors emerge from time to time. Management cannot
predict such new risk factors, nor can it assess the impact, if
any, of such new risk factors on the Company's business or events
described in any forward-looking statements. The Company disclaims
any obligation to publicly update or revise any forward-looking
statements after the date of this report to conform them to actual
results. -0- *T KITTY HAWK, INC. AND SUBSIDIARIES STATEMENTS OF
OPERATIONS Quarter ended December 31, Year ended December 31,
------------------------- ----------------------- 2005 2004 2005
2004 ----------- --------- ---------- ------------- (in thousands)
Revenue: Scheduled freight $43,882 $43,025 $151,910 $154,016 ACMI
717 612 1,649 2,449 Miscellaneous 1,268 741 3,078 2,032
------------ ----------- ---------- ----------- Total revenue
45,867 44,378 156,637 158,497 Cost of revenue: Flight expense 8,826
6,399 30,241 27,924 Transportation expense 6,880 4,100 17,106
14,603 Aircraft fuel expense 15,597 13,657 54,656 45,838 Aircraft
maintenance expense 5,936 (1,576) 14,207 7,047 Freight handling
expense 7,438 7,121 26,715 27,705 Depreciation and amortization 902
801 3,693 3,091 Operating overhead expense 2,172 2,388 11,146
10,809 ------------ ----------- ---------- ----------- Total cost
of revenue 47,751 32,890 157,764 137,017 ------------- -----------
------------- ------------- Gross profit (loss) (1,884) 11,488
(1,127) 21,480 General and administrative expense 2,078 2,986 8,052
11,073 ------------ ----------- ---------- ----------- Operating
income (loss) (3,962) 8,502 (9,179) 10,407 Other (income) expense:
Interest expense 78 93 287 333 Other income (206) (327) (956) (426)
------------ ----------- ---------- ----------- Total other income
(128) (234) (669) (93) ------------ ----------- ----------
----------- Income (loss) before income taxes (3,834) 8,736 (8,510)
10,500 Income tax expense -- 3,326 -- 3,970 ------------
----------- ---------- ----------- Net income (loss) $(3,834)
$5,410 $(8,510) $6,530 ============ =========== ==========
=========== Preferred stock dividends, including beneficial
conversion feature 313 -- 313 -- ------------ -----------
---------- ----------- Net income (loss) allocable to common
stockholders $(4,147) $5,410 $(8,823) $6,530 ============
=========== ========== =========== Basic income (loss) per share
$(0.08) $0.11 $(0.17) $0.13 ============ =========== ==========
=========== Diluted income (loss) per share $(0.08) $0.11 $(0.17)
$0.12 ============ =========== ========== =========== Weighted
average basic common shares outstanding 51,582,032 51,051,788
51,447,898 50,779,179 ============ =========== ==========
=========== Weighted average diluted common shares outstanding
51,582,032 53,889,260 51,447,898 53,767,124 ============
=========== ========== =========== KITTY HAWK, INC. AND
SUBSIDIARIES BALANCE SHEET December 31, 2005 December 31, 2004
----------------- ----------------- Cash and cash equivalents
$26,650 $16,284 Total assets 56,934 49,070 Notes payable and
long-term obligations 2,305 2,755 Stockholders' equity $27,407
$34,116 *T
Kitty Hawk (AMEX:KHK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Kitty Hawk (AMEX:KHK)
Historical Stock Chart
From Jul 2023 to Jul 2024