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| 8-K - FORM 8-K - Avantair, Inc | d240911d8k.htm |
 Avantair, Inc.
(OTCBB: AAIR)
Steven Santo, CEO
Exhibit 99.1 |
 SAFE
HARBOR This
document
contains
forward-looking
statements
within
the
meaning
of
Section
27A
of
the
Securities
Act
of
1933,
as
amended,
and
Section
21E
of
the
Securities
Exchange
Act
of
1934,
as
amended.
All
statements,
other
than
statements
of
historical
fact,
including,
without
limitation,
statements
regarding
Avantair’s
financial
position,
business
strategy,
plans,
and
Avantair’s
management’s
objectives
and
its
future
operations,
and
industry
conditions,
are
forward-looking
statements.
Although
Avantair
believes
that
the
expectations
reflected
in
such
forward-looking
statements
are
reasonable,
Avantair
can
give
no
assurance
that
such
expectations
will
prove
to
be
correct.
Important
factors
that
could
cause
actual
results
to
differ
materially
from
Avantair’s
expectations
(“Cautionary
Statements”)
as
described
in
Avantair’s
public
filings
include,
without
limitation,
the
effect
of
existing
and
future
laws
and
governmental
regulations,
the
results
of
future
financing
efforts,
and
the
political
and
economic
climate
of
the
United
States.
All
subsequent
written
and
oral
forward-looking
statements
attributable
to
Avantair,
or
persons
acting
on
Avantair’s
behalf,
are
expressly
qualified
in
their
entirety
by
the
Cautionary
Statements.
2 |
 EXCLUSIVE VALUE PROPOSITION
AIRCRAFT
•
Safest, economical and high performance Piaggio Avanti P180
•
57 Piaggio P180 aircraft in fleet
•
Largest and quietest cabin in its category
•
Low operating costs –
innovative aerodynamic design & most fuel efficient
•
Fastest twin turboprop ever built –
light jet speed
COMPETITIVE PRICING
•
Three award winning flight hour programs (fractional shares, leases, cards)
•
40% less
PEOPLE & SERVICE
•
Over 200 highly trained pilots, approx. 100 skilled
maintenance workers in 3 facilities
•
State-of-the-art 24/7 operations center in
Clearwater, FL
•
Entire organization committed to one aircraft type
and industry leading customer service
3 |
 FINANCIALS
•
Consistent revenue growth through challenging economic environment
•
9% CAGR from FY08 -
FY11
•
Revenue generating flight hours reached record level of 43,305 in FY11
•
EBITDA improved in Q4 FY11 vs. Q4 FY10
•
Implementing back office cost reductions targeted between $1 million to
$1.5 million per quarter during FY12
•
FBO, non-core and G&A headcount, leases, third party contracts,
series of other back office initiatives
•
June 30, 2011 balance sheet snapshot
•
$5.6 million in cash, deferred revenue of $94 million and paid down
$8.2 million in net debt
4 |
 FY11
REVENUE HIGHLIGHTS 5
•
Total FY11 revenue = $149.0 million
•
Revenue growth of 4.2% from FY10 revenue of $143.0 million
•
FY11 Unit Sales by Program
•
New Fractional Ownership Program = 19 shares (153% increase from
prior year of 7.5 units)
•
Axis Lease Program = 30.5 new sales (program began in March
FY11)
•
Cards sold including Edge Card Program and other cards = 461 (19%
increase from prior year of 388 cards)
$35.0
$37.0
$39.0
$41.0
Quarter 1
Quarter 2
Quarter 3
Quarter 4
FY 2011
FY 2010 |
 FLEET
GROWTH AND REVENUE HOURS
6 |
 PRODUCT SALES IN HOURS
7 |
 REVENUE GROWTH FROM
FLEET MANAGEMENT
8
* Includes
$1.0
million
profit
from
the
sale
of
previously
owned
fractional
aircraft
shares
* |
 NON-GAAP MEASURES
9
The
following
table
reflects
the
reconciliation
of
total
revenue
and
net
loss,
both
prepared
in
conformity
with
(GAAP),
to
the
non-GAAP financial measures of total revenue before fractional aircraft sales
revenue and net loss before fractional aircraft sales revenue and
cost. The company believes that these non-GAAP financial measurements are
useful to investors as they highlight results of operations from fleet
management. These measures are supplements to accounting principles generally accepted in the
United States used to prepare the Company’s financial statements and should
not be viewed as a substitute for GAAP measures. In addition, the
Company’s non-GAAP measures may not be the comparable to non-GAAP measures of other
companies.
FY2011 Q1
FY2011 Q2
FY2011 Q3
FY2011 Q4
35,782,116
$
36,584,539
$
36,488,593
$
40,146,729
$
9,197,823
8,778,578
7,720,559
7,631,525
26,584,293
$
27,805,961
$
28,768,034
$
32,515,204
$
Net loss
(4,814,309)
$
(4,066,365)
$
(956,567)
$
(938,681)
$
Add:
Cost of fractional shares sold
8,111,445
7,526,245
6,618,110
6,900,835
Subtract:
Fractional aircraft sales revenue
(9,197,823)
(8,778,578)
(7,720,559)
(7,631,525)
(5,900,687)
$
(5,318,698)
$
(2,059,016)
$
(1,669,371)
$
Total revenue
Fractional aircraft sales revenue
Total revenue before fractional aircraft
sales revenue
Net loss before fractional aircraft sales
revenue and cost |
 BALANCE SHEET AND CASH FLOW
10
•
Generated $6.9 million in cash from operations during FY11
•
Paid down $8.2 million in net debt in FY11 |
 GOING FORWARD PLAN
11
•
Focus on core business objective of marketing, selling and servicing
customers through fractional shares, leases and cards
•
Align and develop personnel to achieve our business objectives
•
Enhancing a metric driven culture toward achieving key performance
goals
•
Optimizing use of technology as a competitive advantage
•
Focus on back office cost efficiencies that do not impact safety,
operations or customer service
•
Strengthening key vendor relationships
•
Exploring the expansion of our operating model to select global
markets through strategic alliances |
 RETURN ON INVESTMENT
12
Why is AAIR a solid long-term investment?
•
Growing market share up 4 points since 2010
•
Increased revenue in FY11 4.2% from FY10
•
Exclusivity of the Piaggio P180 aircraft
•
Better positioned to take advantage of challenging economy
•
Adding new aircraft to meet demand
•
Avantair is the “responsible”
choice |
 AVANTAIR
(OTCBB: AAIR) |