Monday, February 2, 2009

(OTCBB:APNX) Alpine Air Express, Inc.

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Alpine Air Express Announces Financial Results for the Fourth Quarter and Year Ended October 31, 2008

(OTCBB:APNX) Alpine Air Express, Inc.

Monday February 2, 6:00 am ET

PROVO, UT-Feb 2, 2009 - Alpine Air Express Inc. , an air cargo transportation service provider in the United States, recently announced the financial results for the fourth quarter and fiscal year ended October 31, 2008.

- 2008 fourth quarter total operating revenue increased 15% to $5.4 million - 2008 year end total operating revenue increased 8% to $19.8 million - Book value at year end totaled $13.8 million or $0.38 per share

Fourth Quarter 2008 Financial Results

Total operating revenue for the fourth quarter 2008 ended October 31, 2008 totaled $5.4 million, an increase of 15% compared to $4.7 million for the fourth quarter ended October 31, 2007. These results are based primarily on air cargo transportation services in the mid western United States and Hawaii for the United States Postal Service and other major international transportation and logistic companies. In addition to air cargo transportation, the Company provides maintenance service on aircraft owned or operated by third parties, leasing of passenger aircraft, and operates a First Officer Training Program.

Total direct costs for the fourth quarter 2008 increased 44% to $4.6 million and gross profit decreased to $750,764. During the fourth quarter, the Company was greatly affected by the increased cost of fuel over the fuel costs in the previous year.

For the fourth quarter ended October 31, 2008, total operating expenses totaled $418,255, a decrease of 4% compared to $435,331. Total operating income for the fourth quarter 2008 was $332,599 compared to $1 million for the same period one year earlier.

Earnings before interest, taxes, depreciation and amortization for the fourth quarter 2008 decreased to $587,747 compared to $1.5 million for the same period one year earlier.


Income before taxes and preferred stock dividend for the fourth quarter 2008 decreased to $107,901 compared to $869,696 for the same period one year earlier. Net income and net income loss available to common shareholders for the fourth quarter of 2008 totaled $58,024 and $247,735, respectively. These results compare to net income and net income available to common shareholders of $1.3 million and $990,963 or $0.03 per basic common share for the 2007 fourth quarter.

"During the fourth quarter of 2008, we, along with most in the industry, experienced financial challenges as it relates to the drastic increase in fuel prices. In spite of those challenges, Alpine is very encouraged by our ability to persevere through this and increase revenue year over year," stated Mr. Eugene Mallette, CEO of Alpine Air Express. "Going forward we have implemented an aggressive forward fuel contracting strategy to help manage the risk of the volatile fuel market. With each penny of reduced fuel prices, we reduce our annual fuel expenses by approximately $12,000. This potentially adds several million dollars of annual earnings directly to the Company's bottom line, which makes 2009 potentially a very strong year for us." Mr. Mallette continued, "With over 35 years of service, we have shown time and time again that we have an excellent business model and a competent management team with the ability to execute, as shown by our ability to purchase an additional four Beech 1900 aircraft in the fourth quarter to bring our fleet to 29. This increase in lift capacity represents an increase of revenue opportunity by nearly 20%."

2008 Year End Financial Results

Total operating revenues for the 2008 year ended October 31, 2008 totaled $19.8 million, an increase of 8% compared to $18.4 million for the 2007 year ended October 31, 2007. Revenue increased in 2008 for several reasons including contract changes with USPS in Hawaii, wherein the USPS extended the contract and added fuel escalators. Additionally, the Company acquired an additional contract with a major international transportation and logistics company, acquired and subsequently leased two Beech 1900-D passenger aircraft to other operators. The Company was also successful in increasing the amount of cargo it carried during the year from 10,877 in 2007 to 11,162 in 2008.

Total direct costs for 2008 increased 32% to $16.4 million compared to $12.5 million in 2007. This increase was driven by a combination of factors, including the significant increases in fuel prices and the additional start-up costs associated with the new contracts in Billings, Montana. To offset these costs, management enforced a more effective deployment of the Company assets and successful cost management initiatives.

Gross profit for 2008 decreased to $3.5 million compared to $5.9 million in 2007. As a result, gross profit margin decreased to 18% in 2008 compared to 32% in 2007; however, the Company expects the reduction of fuel costs to positively impact 2009 net earnings.

Total operating expenses for 2008 decreased 43% to 987,339 compared to $1.4 million for 2007. Operating income for 2008 decreased 82% to $2.5 million compared to $4.5 million for 2007.

Earnings before interest, taxes, depreciation and amortization for 2008 decreased 48% to $4.3 million compared to $6.4 million for 2007. (EBITDA is a non-GAAP financial measurement. See reconciliation to GAAP measure net income which follows below.)

Income before taxes and preferred stock dividend for 2008 decreased to $1.8 million compared to $3.9 million in 2007. Income before preferred stock dividend for 2008 totaled $1.3 million compared to $3.2 million. Net income available to common shareholders for 2008 totaled $1.3 million and $52,780, respectively. These results compare to net income of $2.5 million and $1.9 million or $0.05 per basic common share and $0.03 per diluted share.

On the balance sheet, total current assets and total assets as of October 31, 2008 were $5.9 million and $25.8 million, respectively. Included in total assets was approximately $19.4 million in property and equipment. Total current liabilities and total liabilities as of October 31, 2008 were $4 million and $11.9 million, respectively. Total stockholders' equity as of October 31, 2008 was $13.8 million or $0.38 per share.

"During 2008 we were successful in renegotiating our contract in Hawaii, which included fuel escalators, and acquiring additional contracts. We were also able to increase the tons of cargo carried in 2008 to 11,162 compared to 10,877 the previous year. As a result, we were able to increase our sales in 2008, which included only a partial contribution from Montana which began in March," commented Mr. Mallette.

Mr. Mallette continued, "Looking forward to 2009, I am encouraged by our prospects. We are implementing an aggressive growth strategy organically through our existing contracts and looking for growth opportunities in our fragmented industry through strategic acquisitions. I strongly believe that with the team we have in place, relationships we have built over our 35 year history, and a new aggressive forward fuel contracting strategy, 2009 will be another successful year for the Company."

Conference Call Reminder

The Company will host a conference call on Tuesday, February 3, 2009 at 4:15 p.m. Eastern Standard Time to discuss the Company's financial and operational results for the Fourth Quarter and Year End 2008.

Conference Call Details: Date: Tuesday, February 3, 2009 Time: 4:15 p.m. Dial-in Number: 1-800-762-8779 International Dial-in Number: 1-480-248-5081

It is recommended that participants phone-in approximately 5 to 10 minutes prior to the start of the 4:15 p.m. call. A replay of the conference call will be available approximately 3 hours after the completion of the call for 7 days, until February 10, 2009. To listen to the replay, dial 1-800-406-7325 if calling within the U.S., 1-303-590-3030 if calling internationally and enter the pass code 3968631.

About Alpine Air Express, Inc.

Alpine Air Express , through its operating subsidiary Alpine Aviation Inc. provides air cargo transportation services in the United States with 50 daily departures within Colorado, Hawaii, Montana, Nebraska, North Dakota, South Dakota, and Wyoming. In addition to air cargo transportation, the Company flies charters for other world class cargo carriers requiring superior regional service, provides maintenance service on aircraft owned or operated by third parties, and operates a First Officer Training Program.

This press release may contain forward-looking statements including the Company's beliefs about its business prospects and future results of operations. These statements involve risks and uncertainties. Among the important additional factors that could cause actual results to differ materially from those forward-looking statements are risks associated with the overall economic environment, changes in anticipated earnings of the company and other factors detailed in the company's filings with the SEC. In addition, the factors underlying company forecasts are dynamic and subject to change and therefore those forecasts speak only as of the date they are given. The company does not undertake to update them; however, it may choose from time to time to update them and if it should do so, it will disseminate the updates to the investing public.

Contact:

Contact: Alpine Air Express Inc., Provo Michael Dancy 801-746-3570 Email Contact   Or   Alliance Advisors, LLC Mark McPartland Vice President 669-0222 Email Contact   Source: Alpine Air Express

Profile for Alpine Air Express, Inc.

Alpine Air Express, Inc., through its subsidiary Alpine Aviation, Inc., provides air cargo services. It transports mail packages and other time-sensitive cargo to approximately 29 cities in the western portion of the mainland United States and in the Hawaiian Islands. The company also offers contract cargo and charter services for other package delivery and cargo carriers; maintenance services on aircraft owned or operated by third parties; leasing of passenger aircraft; and first officer training program. As of October 31, 2008, it operated a portfolio of 28 aircrafts. The company was founded in 1975 and is headquartered in Provo, Utah. Detailed APNX Company Description...

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