Coex is now a major

[Obi-Wan]

HOUSTON, Jan. 15 /PRNewswire-FirstCall/ -- ExpressJet Holdings, Inc. (NYSE: XJT - News) today reported fourth quarter net income applicable to common stockholders of $22.3 million, or $0.35 diluted earnings per share -- more than double its earnings in the prior-year period -- as the company maintained its strong operating performance and cost controls while expanding its regional jet fleet.

The results represent ExpressJet's third consecutive quarter of improved earnings since its initial public offering in April 2002. For the full year ended December 31, 2002, net income applicable to common stockholders increased by 75.3 percent over 2001 to $84.3 million, or $1.38 diluted earnings per share.

"ExpressJet's financial results directly reflect the hard work and dedication of all its employees to deliver the highest quality of service, while rapidly transitioning to an all-jet operation," said ExpressJet President and CEO Jim Ream.

Ream added, "In addition to exceptional financial results, we expanded our infrastructure to support planned growth in 2003 and beyond, generated $93.4 million more in cash from operating activities to prepay $80.0 million in debt during 2002 and increased our cash balance by $49.0 million versus 2001."

Fourth Quarter and Year-end Operating Results

Fourth quarter operating revenue increased 26.3 percent to $284.0 million, from $224.9 million in the fourth quarter of 2001. Also in the fourth quarter, revenue passenger miles were up 27.0 percent on a 22.8 percent increase in available seat miles (ASMs), resulting in a 2.0 point year-over- year gain in load factor to 64.7 percent. The company also achieved a 99.9 percent controllable completion factor during the fourth quarter, which excludes cancellations due to weather and air traffic control. ExpressJet's overall completion rate for the quarter was 98.8 percent, reflecting a favorable operating environment in the quarter.

Year-end operating revenue increased 11.1 percent to $1.1 billion, compared with $980.5 million in 2002. Capacity grew by 14.4 percent to 6.2 billion ASMs relative to 2001. The company also achieved a 99.9 percent controllable completion factor for the year. ExpressJet's overall 2002 completion rate was 99.0 percent -- including a record 100 days of 100 percent completions during the year.

In the fourth quarter 2002, ExpressJet achieved a 1.9 percent reduction in unit costs versus 2001 through labor productivity gains, reduced maintenance costs and lower airport processing costs. Without the $12.8 million Air Transportation Safety and System Stabilization Act grant in the fourth quarter 2001, operating cost per ASM improved 7.8 percent.

ExpressJet added 18 Embraer jets to its operating fleet and retired the 12 remaining turboprops during the quarter to end the year with an all-jet fleet of 188 aircraft. The 18 Embraer jets added in the fourth quarter are new extended-range ERJ-145XR, a 50-seat regional jet capable of 1,500-mile flights. In 2003, ExpressJet expects to add 48 more extended-range regional jets.

ExpressJet's ERJ-145XR led to the following new routes in the fourth quarter of 2002: from Continental Airlines' New York hub, Newark Liberty International Airport, to Oklahoma City, Okla., Omaha, Neb., and Daytona Beach, Fla; and from the Houston hub, George Bush Intercontinental Airport, to Charleston, W. Va., Palm Springs, Calif., Richmond, Va., and Villahermosa, Mexico. In conjunction with its retirement of all remaining turboprops, ExpressJet introduced all-jet service to 11 existing markets from Houston.

Fourth Quarter and Year-end Financial Results

ExpressJet's fourth quarter 2002 operating income reflected a 13.5 percent operating margin, as compared with an operating margin of 9.4 percent for fourth quarter 2001. The 13.5 percent operating margin included the benefits of cost savings and $3.0 million in performance incentive payments.

ExpressJet ended the fourth quarter with $120.9 million in cash, $49.0 million more than the prior-year's $71.9 million. During the quarter, the company made voluntary principal payments totaling $50.0 million on its note payable to Continental Airlines, reducing the outstanding balance to $325.5 million.

For the full-year ended December 31, 2002, ExpressJet's operating income reflected a 13.6 percent operating margin as compared with an operating margin of 10.3 percent for the full-year ended December 31, 2001. Total incentive payments earned by ExpressJet in 2002 were $14.7 million. Compared to 2001, the year-end operating cost per ASM declined 6.4 percent.

Capital expenditures for the full year 2002 totaled $55.1 million or $29.1 million net of sales of fixed assets and parts related to turboprop retirements, compared with $66.1 million for 2001. ExpressJet plans capital expenditures of approximately $92.8 million in 2003, including approximately $25.0 million in planned expenditures that were carried over from its 2002 budget.

 

[EagleRJ]

Welcome to the big leagues! And welcome to the nightmare of performance reporting for the DOT. I'm glad Eagle will have company at the bottom of the list now!

 

[darling pretty]

Just don't let them "real" major pilots hear you say that.

They might think you are getting uppity and expecting to be represented equally and we all know where that leads.

 

[~~~^~~~]

Welcome to the big leagues! And welcome to the nightmare of performance reporting for the DOT. I'm glad Eagle will have company at the bottom of the list now!

ASA just got there also. What a slug fest.

 

[VFR on Top]

Hey, congrats--bet you thought you'd make more as a major airline pilot, didn't you. Too bad management isn't about to share the wealth. Speaking of, I wonder what sort of performance bonus Ream will be getting....

 

[IAHERJ]

Not sure COEX will be sitting at the bottom of the DOT reports. Over 99% completion factor including weather cancellations for 2002 and an on-time percentage over 80% consistantly in 2002. We'll just have to see. Can ASA report in the DOT without ACARS? I didn't think that counted.

 

[flywithastick]

Hey, congrats--bet you thought you'd make more as a major airline pilot, didn't you. Too bad management isn't about to share the wealth. Speaking of, I wonder what sort of performance bonus Ream will be getting....

Sounds like you're unhappy with your salary. You should go back to school and get a law or medical degree. I hear they make pretty good money generally. Maybe an MBA or other degree to get into airline management.

The owners (stockholders) may be rewarded with dividends. You a stockholder? Then the company may make a nice dividend payout or buy up some stock (raising the value of your stock). If not, then why would you think you are entitled to a piece of the profits?

 

[skydash]

DOT ontime

Who gives a rats anus if you're 1st or 10th?? That and $3.50 will buy you a caffe latte.......a moca smoaka................a cup of coffee.

 

[AAflyer]

VFR on TOP,

You hit the nail on the head. While some will be looking to a "major airline pilot" thinks, mangament will make sure you do not get what you deserve. Now try explaining that to your passengers. We are a ______(insert co.) a major, we only feed the other major. How bout them pay in benefits. Don't worry about other pilots, worry about managment thinking you are getting "upitty".

Welcome to the club!

AAflyer

 

[TXCAP4228]

...Now try explaining that to your passengers. We are a ______(insert co.) a major, we only feed the other major. How bout them pay in benefits. Don't worry about other pilots, worry about managment thinking you are getting "upitty".

Your passengers couldn't care less what you make or what your benefits are. All they care about is getting to the family reunion, or the wedding, or disneyworld safely and on time.

Why would you even suggest that this is a subject to have to "explain" to them?

 

[72Longhorn]

flywithastick,

What makes you think the employees don't deserve a piece of the pie?? I believe that if a company is doing well they should share the wealth with the people that helped them get there..

When a company is not doing so well, they expect their employees to take pay cuts. Why can't the opposite be true??

As far as the share holders, it's all a gamble! They go in not knowing if their investments will loss or gain. The company does well, and so do the shareholders.

Stop drinking the punch and smell the coffee!

72Longhorn

 

[jetexas]

Eagle became a "major" a year or two ago. All it got us was daily emails regarding our "A + 14" and "D+0" performance that no one outside of management reads and aggressive finger pointing when flights are late.
Welcome to the uhhhh, majors.

 

[flywithastick]

What makes you think the employees don't deserve a piece of the pie??

I do believe thay deserve a piece of the pie, they just aren't always entitled to it. If I ran a business, you can darn sure bet I'd have a bonus payout structured into my organization. I'm just saying that unless you take a job with a bonus or incentive plan, you can't complain about not getting one later.

I believe that if a company is doing well they should share the wealth with the people that helped them get there..

see above.

When a company is not doing so well, they expect their employees to take pay cuts. Why can't the opposite be true??

That's just the way business has evolved. What your describing is becoming more common, in my experience.

As far as the share holders, it's all a gamble! They go in not knowing if their investments will loss or gain. The company does well, and so do the shareholders.

You're right. When things tank, they sell the stock! When the stock tanks, the board of directors usually gets pi$$ed (because all their stock is loosing value). When they get upset, things will generally change within the company as they command.

Stop drinking the punch and smell the coffee!

That's a good one! I could use a hit of that punch.

72Longhorn

72 Longhorn... you fly a Lear or are you just an ol' fart who graduated from texas university? I went to that school over in the center of the known universe. You know, Texas A&M!

 

[MetroSheriff]

COEX IS NOW A MAJOR

Soldier, sailor, candlestick maker.

If your W2 doesn't change, does it really matter what the DOT calls you??? Or ALPA for that matter?

I would say that a pilots definition of a "major" varies signifigantly from the DOT.

If your company pays a 3rd year FO $100,000 plus, you might work for a major.

The rest is just semantics.

 

[Obi-Wan]

If your W2 doesn't change, does it really matter what the DOT calls you??? Or ALPA for that matter?

In case of ALPA it does. You are in a diferent catagory. As for the W2 it will change. We wont see $300000 a year salaries but then again we wont bankrupt the company either.

 

[AAflyer]

TCXPA@$(#$

Snippy aren't we. Do you commute? Have you ever stood in line to board a plane, or sat in a lounge area in uniform? Have you sat next to passengers in uniform on a plane and been asked who you fly for? Two years ago, even today say Comair, Skywest, etc and see the response you get. Then say well Delta connection, United Express, or American Eagle.

The response back, when will you fly the bigger planes? Well the response back to him is long and drawn out about it "not exactly being mainline". It get's confusing for them and actually me sometimes.

Much of the flying public is now very aware of the state of the industry and very curious as to our pay and benefits. Oh, but that is right you don't fly for an airline and deal with the above mentioned situations and would hardly understand about what I am talking about.

AAflyer

P.S. A little knowledge is scary thing!!!

 

[TXCAP4228]

TCXPA@$(#$
Oh, but that is right you don't fly for an airline and deal with the above mentioned situations and would hardly understand about what I am talking about.

I'm snippy?

The response back, when will you fly the bigger planes? Well the response back to him is long and drawn out about it "not exactly being mainline". It get's confusing for them and actually me sometimes.

Why does the conversartion have to devolve into "not exactly mainline"? You ARE an airline pilot, right? You fly for XXX. What is confusing about that? I am not confused at all.

Secondly, your first post talked about discussing your salary with your passengers. This is far and away a different issue than who you fly for.

Finally, and lets be honest, I think the real issue is about your ego. I suspect that you are the one who wants to talk to the passengers about this and not the other way around. For crying out loud, look at the tone of your email - that chip on your shoulder must weigh a ton.

I'm not trying to flame you here. My question about why your salary should be in ANY conversation with your passenger - your CUSTOMER - is legitimate. Put this in perspective... would you find it professional on the part of a bank teller to discuss his or her salary with him or her while standing in line at the bank?

If you think I am not qualified to make the next statement because I am not an airline pilot, so be it. If one of your customers asks you what your salary is, tell then you are a professional and just can't discuss that.

 

[AAflyer]

TXCP,

Let's not hijack this thread.
Yes, you do not understand a lot of this, you do not work and live in this enviroment, just as I am sure I would not be up to speed in yours.

I am done with this thread. Congrats Coex guys. I have a friends in CLE.

TXCP, if you have a problem with me, then send me a PM and we can hash it out in private.

AA

 

[flywithastick]

An observation from a wannabe airline career changer and experienced paying passenger.

Discussing the dirty laundry of professional flying with the typical passenger would be a very negative thing, IMO. If you want to talk about how AmericanEagle relates to AA, go ahead speaking in general terms only. keep the specifics of salary, scope & unions out of it.

I've flown my share of miles as a passenger, and believe me - most people do see airline pilots as a cut above the avg person. They have the perception of being sharp and fairly well if not highly paid - true or not.

To the outsider, you're generally looked at with respect. Don't ruin that by pi$$ing on their leg, complaining about salary, contracts or equipment.

99% of the time, all that matters in life is perception. Maintain your image and you'll generally be ahead in the game.

2¢ from the outside

 

[TXCAP4228]

AAFlyer, my intent was not to hijack the thread nor to insult you. I have no problem with you. All I asked was a simple question. Sorry you took offense to it.