Kansas City, MO—Vanguard Airlines, Inc. (“Vanguard” or the “Company”) (NasdaqSC: VNGD) announced fourth-quarter and year-end 1999 results today.
Operating loss for the year ended December 31, 1999 was approximately $5.0 million compared to an operating profit for the year ended December 31, 1998 of approximately $1.5 million. Operating loss for the fourth quarter of 1999 was approximately $7.3 million compared to an operating profit of approximately $0.1 million in the fourth quarter of 1998.
Net loss for the year ended December 31, 1999 was approximately $5.1 million compared to a net loss for the year ended December 31, 1998 of approximately $1.5 million. Net loss for the fourth quarter of 1999 was approximately $7.3 million compared to a net loss of approximately $0.6 million in the fourth quarter of 1998. Net loss per share for the year ended December 31, 1999 was approximately $0.30 compared to a net loss per share of approximately $0.11 for the year ended December 31, 1998, taking into account the one-for-five reverse stock split on May 2, 1999.
Total operating revenue for the year ended December 31, 1999 increased 20.0% to $125.1 million compared to $104.3 million for the year ended December 31, 1998. Total operating revenue for the fourth quarter of 1999 increased 22.5% to $31.1 million compared to $25.4 million in the fourth quarter of 1998. Total operating expenses for the year ended December 31, 1999 increased 26.5% to $130.1 million compared to $102.8 million for the year ended December 31, 1998. Total operating expenses for the fourth quarter of 1999 increased 51.6% to $38.4 million compared to $25.3 million in the fourth quarter of 1998.
Robert J. “Rocky” Spane, President and CEO of Vanguard Airlines, said, “Although we are disappointed with our fourth quarter results, there are several factors that need to be considered. First, the industry as a whole experienced weaker than normal demand in the fourth quarter; second, Y2K issues further reduced demand; third, dramatically increasing fuel prices significantly increased costs; and finally, several one-time maintenance charges related to aircraft returns in the amount of $1.3 million added to the quarterly loss.”
“On the other hand, the Company produced major accomplishments in 1999 that need to recognized. Outlined below is a compilation of some of the more important events:
—The Company’s scheduled capacity grew by approximately 34%.
—The Company celebrated its 5th anniversary and is no longer considered a ‘start-up’ airline.
—We successfully launched our ‘on-line’ booking capability through the Company’s website and quickly grew online bookings to approximately 20% of our total bookings.
—Added Buffalo/Niagara Falls to our route structure and increased frequency in certain markets.
—Three of the Company’s older aircraft were returned to their owners and were replaced by newer Boeing 737-200 aircraft.
—The Company negotiated leases for six aircraft to be delivered in the years 2000 and 2001.
—The Company upgraded its call center to include a state-of-the-art telephone switch and completely refurbished work stations.
—We finalized our agreement with Hewlett-Packard Open Skies to host our reservation computer operation.
—Established our own ground operations in Minneapolis/St. Paul, upgrading our airport image and support equipment.
—Sponsored community events in continued civic duty to the cities we serve, for example we raised 97,486 pounds of food for local food banks.”
Spane continued, “As we plan for the next year of operations, the Company’s organizational structure and fiscal controls have been improved. We have initiated several programs that are designed to focus on cost controls and increase revenues. Our route structure is stable and growing at a modest pace and the Company continues to offer a quality product at a reasonable price in markets that are responsive to ‘low-fare’ carriers.”
Vanguard, which began service in December 1994 and is headquartered in Kansas City, is a low-fare, 100% ticketless passenger airline providing convenient and frequent scheduled jet services to the following nine cities: Atlanta, Buffalo/Niagara Falls, Chicago-Midway, Dallas/Ft. Worth, Denver, Kansas City, Minneapolis/St. Paul, Myrtle Beach and Pittsburgh. The Company employs approximately 900 full-time equivalent employees and currently operates a fleet of twelve Boeing 737-200’s. For more information on Vanguard or to book reservations on-line, please visit our web site at www.flyvanguard.com.