ExpressJet Reports Fourth Quarter and Full-Year 2009 Financial Results

HOUSTON, Feb. 23 /PRNewswire-FirstCall/ -- ExpressJet Holdings, Inc. (NYSE: XJT), parent company of regional and charter airline operator, ExpressJet Airlines, Inc., today reported fourth quarter net income of $30.2 million or $1.79 per diluted share...


During the quarter, ExpressJet monetized auction rate securities with a face value of $20 million and realized $18.1 million in proceeds through these transactions. ExpressJet intends to continue monitoring the auction rate securities market to attempt to monetize its remaining $11.1 million face value balance and continued litigation against Bank of America Corporation related to auction rate securities sold to ExpressJet in January 2008.

ExpressJet made no repurchases of either its 11.25% Secured Convertible Notes due 2023 or common stock under its approved securities repurchase program during fourth quarter 2009. The total remaining in the program is approximately $9.7 million. The company expects any future purchases of the notes or stock to be made periodically in the open market or in privately negotiated transactions.

ExpressJet ended 2009 with an outstanding balance of $52.1 million of its 11.25% Secured Convertible Notes due 2023. This balance represents the par value due to noteholders when the notes become due August 1, 2023. In December 2009, the debt trustee approved ExpressJet's request to remove approximately $39.9 million in spare parts and approximately $58.6 million in spare engines from the collateral pool creating an unencumbered asset pool totaling approximately $98.5 million. Following the trustee's approval, $39.5 million in spare parts and $35.3 million in spare engines remain in the collateral pool encumbered by the notes.

Subsequent to quarter end, as part of the United Express agreement, the company issued a warrant to United for the purchase of 2.7 million shares of common stock with an exercise price of $0.01 per share of common stock.

Capital expenditures during the quarter totaled approximately $1 million compared to $1.6 million during fourth quarter 2008. Full-year 2009 capital expenditures totaled $4.9 million versus $10.6 million during 2008. ExpressJet expects capital spending to range from $9 million to $11 million during 2010 to meet operational requirements, including the additional flying as United Express.

The company will provide a 2010 outlook and 2009 results on Tuesday, February 23, 2010 at 10:00 a.m. EST (9:00 a.m. CST). A live webcast of the call will be available at www.expressjet.com. To access the conference call by phone, dial (866) 638-3022 approximately 10 minutes prior to the scheduled start time and ask to join the ExpressJet call. International callers should dial (630) 691-2765.

About ExpressJet

ExpressJet Holdings operates several divisions designed to leverage the management experience, efficiencies and economies of scale present in its subsidiaries, including ExpressJet Airlines, Inc. and ExpressJet Services, LLC. ExpressJet Airlines serves 134 scheduled destinations in North America and the Caribbean with approximately 1,045 departures per day. Operations include capacity purchase agreements for Continental and United as well as providing clients customized 50-seat charter options (www.expressjet.com/charter); and supplying third-party aviation and ground handling services. For more information, visit www.expressjet.com.

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