The stock of flyExclusive, the Kinston-based private jet charter company, continued a downward descent after last week reporting a quarterly loss bigger than analysts forecast.
Shares traded for about $2.24 by mid-afternoon Tuesday. They have ranged between $1.79 and $24.21 since the company went public in December.
FlyExclusive posted a net loss of 32 cents a share in the three months ended Sept. 30, wider than the 9 cents analysts had projected, according to Yahoo Finance. Expenses climbed nearly 26% to $97.8 million from the year-earlier quarter, leading to a $20.9 million loss from operations. Revenue increased to $76.9 million, according to a securities filing.
FlyExclusive posted an operating loss of $20.9 million in the third quarter and $70 million in the first three quarters of the year after going public in December. Revenue so far this year was $236 million versus $239 million in the same period last year.
CEO Jim Segrave launched the company almost a decade ago with two jets after selling his Segrave Aviation to Delta Air Lines.
As of Sept. 30, the company had 88 owned and leased aircraft including light, midsize, super-midsize and large jets. It also maintains, repairs and overhauls planes for third parties and its own fleet.
The company said in the filing it expects to incur operating losses in “the near term’’ as it advances its fleet modernization and efforts to reduce costs. As of Sept. 30, it reported total liabilities of $496 million, and its interest expense totaled $15.6 million during the first three quarters of the year.
In the past six months, Seagrave has juggled his leadership team as he seeks to spur improve operations and develop new business strategies. In September, Brad Garner joined the company as chief financial officer, succeeding Matt Lesmeister who added responsibilities as chief operating officer. Promoted from COO to president in May, Mike Guina is now the chief commercial officer.
At the end of the third quarter, the company reported cash and cash equivalents, operating cash flow and other funds totaling $18.7 million as “sufficient to fund operations, including capital expenditure requirements, for at least 12 months.”
The company added, however, it “might need additional capital to fund growth plans or as circumstances change, which it would expect to obtain through equity issuances, refinancing existing debt or new borrowings. If the company is unable to raise capital, it could be forced to delay, reduce, suspend or cease its working capital requirements, capital expenditures and business development efforts.’’
FlyExclusive went public via a combination with a New York special purpose acquisition company led by investor Gregg Hymowitz. FlyExclusive is the fifth-largest U.S. charter/fractional private jet operator, employing several hundred workers in Kinston who maintain the company’s aircraft.
