Regional Express : Appendix 4D and Announcement of Half Year Results FY2022

For personal use only

31 December 2021

HALF-YEAR FINANCIAL REPORT

REGIONAL EXPRESS HOLDINGS LIMITED ACN 099547270 (ASX CODE: REX)

For personal use only

REGIONAL EXPRESS HOLDINGS LIMITED

ACN 099 547 270 (ASX Code: REX)

Appendix 4D: Results For Announcement To The Market & Half-Year Financial

Report For The Half-Year Ended 31 December 2021

2 REGIONAL EXPRESS HOLDINGS LIMITED

ASX APPENDIX 4D

RESULTS FOR ANNOUNCEMENT TO THE MARKET

only

Revenue excluding government grants and subsidies

(Loss) / profit from ordinary activities, government grants and subsidies, after tax attributable to members

31 Dec 2021	31 Dec 2020	Change	Change
$M	$M	$M	%
88.4	65.6	22.8	34.8
(36.7)	9.9	(46.6)	(470.7)

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Net (loss) / profit for the period	(36.7)	9.9	(46.6)	(470.7)
attributable to members

No dividends were paid during the half year period ended 31 December 2021 and the Board advises that it does not intend to declare a final dividend given the uncertain and challenging conditions arising from the COVID-19 crisis.

	31 Dec 2021	31 Dec 2020	Change
	$	$	%
Net tangible assets per ordinary share	1.29	1.68	(23.2)

This report is based on the condensed consolidated financial statements which have been reviewed by BDO Audit Pty Ltd. The review report is included in the attached half year financial report.

EXPLANATION OF RESULTS

An explanation of the above figures is contained in the "Operating and financial review" included within the attached directors' report.

Revenue excluding government grants for the period improved by 34.8% against the same period last year. Government grants and subsidies declined by 53% to $28M.

During the period, Rex received the Regional Airline Network Support (RANS) grant, which underwrote a skeleton service to all regional and rural cities within our network to ensure a minimum level of air services to the regional communities. This allowed Rex to keep its network essentially intact albeit at a much reduced service level. Over this reporting period, Rex also received the Domestic Airline Network Support grant (DANS), the Tourism and aviation network support (TANS) as well as the Retaining Domestic Airline Capability grant (RDAC).

Rex recommenced inter-capital city (domestic) operations in November 21 as state border restrictions eased. This was after 4 months of ceasing domestic operations due border closures brought about by the upsurge in Delta cases.

Rex ended the reporting period with an operating loss of $36.7M after tax.

REGIONAL EXPRESS HOLDINGS LIMITED

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CONTENTS

5 Directors' Report

1. Auditors' Independence Declaration
2. Independent Auditor's Review Report

1. Condensed Consolidated Statement of Profit or Loss
2. Condensed Consolidated Statement of
   Comprehensive Income or Loss
3. Condensed Consolidated Statement of Financial Position

1. Condensed Consolidated Statement of
   Cash Flows
2. Condensed Consolidated Statement of Changes In Equity
3. Notes to the Condensed Consolidated
   Financial Statements

27 Directors' Declaration

4 REGIONAL EXPRESS HOLDINGS LIMITED

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DIRECTORS' REPORT

The directors of Regional Express Holdings Limited ('Rex') submit herewith the financial report for the half-year ended 31 December 2021.

The names and details of the Company's directors in office during the half-year and until the date of this report are as below:

Name	Title
Lim Kim Hai	Executive Chairman
The Hon. John Sharp AM	Deputy Chairman and Independent Director
Neville Howell	Chief Operating Officer and Executive Director
Chris Hine	Executive Director
James Davis	Independent Director
Lee Thian Soo	Non-Executive Director
Prof Ron Bartsch AM	Independent Director
Lincoln Pan	Non-Executive Director
Sid Khotkar	Non-Executive Director

REVIEW OF OPERATIONS

SUMMARY REVIEW

The first half Financial Year 2022 (1H FY22) represents the first full reporting period which includes trunk domestic services operated by Boeing 737-800 Next Generation (NG) jet aircraft on seven routes, and services between Sydney and Canberra, Coffs Harbour and Port Macquarie operated by the Saab 340. However, network capacity adjustments were required for most of the half year due to lengthy COVID-19 travel restrictions and border closures.

Network capacity overall increased, with Available Seat Kilometres (ASKs) increasing by 128% against the same period last year. Passenger numbers increased by 82%. The load factor also decreased by 7.3% points to 53.4% for the period.

During the reporting period, Rex continued to receive the Regional Airline Network Support (RANS) grant, which supports critical air corridors to regional and rural communities; and was also a recipient of the Tourism Aviation Network Support (TANS) Program, which promotes domestic tourism to destinations heavily impacted by the downturn in tourism through subsidised air fares; and the Domestic Aviation Network Support program (DANS) which supports the top 50 domestic routes to ensure connectivity and tourism outcomes (Rex received DANS for the Sydney/Ballina route only). Eligible full-time staff stood down also received income support from the Federal Government of $750 a week gross under the Retaining Domestic Airline Capability (RDAC) Assistance program.

KEY PERFORMANCE INDICATORS TABLE
	1H FY 2022	1H FY 2021	Change
Passengers	345,974	190,033	82.1%
ASKs (M)	329.4	144.6	127.8%
Load Factor	53.4%	60.7%	(7.3%) pts

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