FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

ý                                 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2005

o                                 TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number:  1-12805

FRONTIER AIRLINES, INC.

(Exact name of registrant as specified in its charter)

Issuer’s telephone number including area code:  (720) 374-4200

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ý No o

Indicate by check mark whether the Registrant is an accelerated filer (as defined in rule 12b-2 of the Exchange Act).  Yes ý  No o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o  No ý

The number of shares of the Company’s Common Stock outstanding as of October 27, 2005 was 36,187,397.

TABLE OF CONTENTS

PART I.  FINANCIAL INFORMATION

FRONTIER AIRLINES, INC.

Balance Sheets

(Unaudited)

See accompanying notes to financial statements.

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FRONTIER AIRLINES, INC.

Statements of Operations

For the Three and Six Months Ended September 30, 2005 and 2004

(Unaudited)

See accompanying notes to financial statements.

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FRONTIER AIRLINES, INC.

Statements of Cash Flows

For the Six Months Ended September 30, 2005 and 2004

(Unaudited)

See accompanying notes to financial statements.

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FRONTIER AIRLINES, INC.

Notes to Financial Statements

September 30, 2005 (Unaudited)

1.               Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended March 31, 2005.  The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included.

The Company operates in one business segment that provides transportation to passengers and cargo and includes mainline operations and a regional partner.

Financial results for the Company and airlines in general, are seasonal in nature.  More recently, results for the Company’s first and second fiscal quarters have exceeded its third and fourth fiscal quarters.  Results of operations for the three and six months ended September 30, 2005 are not necessarily indicative of the results that may be expected for the year ended March 31, 2006.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation including the reclassification of investment securities of $71,400,000 of auction rate securities, which were included in cash and cash equivalents at September 30, 2004.  As a result of this reclassification, the Company’s cash flow from investing activities for the six months ended September 30, 2004 now includes the net change in auction rate securities in short-term investments.

2.              Stock-Based Compensation

Stock options and other stock-based compensation awards are accounted for using the intrinsic value method prescribed under Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”) and related Interpretations in accounting for its employee stock options and follows the disclosure provisions of Statement of Financial Accounting Standards No. 123 (“SFAS 123”).  Accordingly, no compensation cost is recognized for options granted at a price equal to the fair market value of the common stock on the date of grant.  Pro forma information regarding net income and earnings per share is required by SFAS 123, which also requires that the information be determined as if the Company has accounted for its employee stock options under the fair value method of that Statement.  The fair value of each option grant was estimated on the date of grant using the Black-Scholes option valuation model.

Had compensation cost for the Company’s stock-based compensation plans had been determined using the fair value of the options at the grant date, the Company’s pro forma net income (loss) and income (loss) per share would have been as follows:

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The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants during the six months ended September 30, 2005: dividend yield of 0%; expected volatility of 74.4%; expected life of 5 years; and risk-free interest rate of 4.05%. The weighted average fair value of options granted during the six months ended September 30, 2005, was $6.81. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants during the six months ended September 30, 2004: dividend yield of 0%; expected volatility of 58.0%; expected life of 5 years; and risk-free interest rate of 3.38%. The weighted average fair value of options granted during the six months ended September 30, 2004, was $4.47.

In March 2005, the Company adopted a new annual bonus and long-term incentive plan for the Company’s officers and directors.  The long-term incentive plan included the issuance of 194,746 stock appreciation rights payable in stock, 82,057 restricted stock units and a three-year cash incentive pool.  Forfeitures during the six-months ended were 25,126 stock appreciation rights payable in stock and 7,495 restricted stock units.  Annual bonuses and three-year cash incentive pools are paid out based upon pre-tax profits and a modifier based on the Company’s annual pre-tax profit performance relative to peer group companies. There was no bonus accrual under this plan for the six months ended September 30, 2005 because the Company did not meet profit margins required for payout under the plan.

The restricted stock award vests, if the executive is still employed by the Company at the time, in five years from the grant date.  The fair value of the restricted stock units on the date of the grant is recorded as compensation expense over the vesting period.  The stock appreciation rights payable in stock vest 20% a year over five years.  Compensation expense for the stock appreciation rights is based on the difference between the market price on the date of grant and the current market price of the award.  During the six-months ended September 30, 2005, compensation expense of $63,000 has been recognized for these awards.

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3.               Earnings (loss) per share

The following table shows the computation of basic and diluted earnings (loss) per common share:

For the three and six months ended September 30, 2005, outstanding options of 1,055,451 were excluded from the calculation of net income per diluted common share because their exercise prices exceeded the average market price of the common stock for the period.  For the three and six months ended September 30, 2004, outstanding options and warrants of 6,440,011 were excluded from the diluted earnings per share because the effect would have been anti-dilutive.

4.               Property and Equipment, Net

As of September 30, 2005 and March 31, 2005, property and equipment consisted of the following:

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5.               Deferred Revenue and Other Liabilities

At September 30, 2005 and March 31, 2005, deferred revenue and other liabilities were comprised of the following:

6.               Other Accrued Expenses

At September 30, 2005 and March 31, 2005, other accrued expenses were comprised of the following:

7.               Long-term Debt

During the six months ended September 30, 2005, the Company borrowed $54,700,000 for the purchase of two Airbus A319 aircraft, including a junior loan of $4,900,000 on an aircraft purchased in July 2005.  The senior loans have terms of 12 years and are payable in quarterly installments of $625,000 and $628,000, respectively, as of September 30, 2005, including interest, payable in arrears, with a floating interest rate adjusted quarterly based on LIBOR. These loans currently bear interest at rates of 5.86% and 5.48%, respectively, at September 30, 2005.  At the end of the term, there are balloon payments of $5,558,000 and $4,900,000, respectively.  A security interest in the two purchased aircraft secures the loans.  The junior loan has an eight-year term with quarterly installments of $236,000.  The loan bears interest at a floating interest rate adjusted quarterly based on LIBOR, which currently is 7.38%.

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In March 2005, the Company entered into a 42-month revolving credit facility (“Credit Facility”) to be used in support of letters of credit and for general corporate purposes.  Under this facility, the Company may borrow the lesser of $13,000,000 (“maximum commitment amount”) or 50% of the current market value of pledged eligible spare parts.  The amount of letters of credit available is equal to the amount available under the facility less current borrowings.  The amount available under the Credit Facility at September 30, 2005 was $10,244,000, which was reduced by letters of credit issued during the quarter of $6,500,000 for a net amount available for borrowings of $3,744,000.   There was $5,000,000 outstanding under the Credit Facility at March 31, 2005 and there were no amounts outstanding as of September 30, 2005.

In July 2005, the Company entered into a twelve-month credit agreement (the “Agreement”) with a bank for a $5,000,000 revolving letter of credit facility. Under the Agreement, $3,500,000 may be used for the issuance of letters of credit, which must be collateralized by a borrowing base consisting of certain receivable balances at the time of issuance. As of September 30, 2005, the aggregate amount of letters of credit issued under the Agreement was $1,188,659 and a cash compensating balance of $2,000,000 was maintained to secure the letters of credit, which has been classified as restricted investments on the balance sheet.

The Credit Facility and the Agreement contain standard events of default provisions, including a financial covenant to maintain $120,000,000 of unrestricted cash with a 30-day cure period.

8.               Comprehensive Income (Loss)

A summary of the comprehensive income (loss) is as follows:

9.               Aircraft Lease and Facility Exit Costs

In April 2005, the Company ceased using three of its Boeing 737-300 leased aircraft with original lease termination dates in June 2005, August 2005 and May 2006.  The Company negotiated an early return and one-time payment for the one aircraft with an original lease termination date of May 2006.  This resulted in a charge during the first quarter of $3,311,888, representing the estimated fair value of the remaining lease payments and a negotiated one-time termination payment.  In September 2005, the Company recorded $52,627 of facility lease exit costs related to a property in which a sublease was not obtained in the period originally estimated for an airport exited in fiscal year 2005.  This reflects the Company’s revised estimated future payments on this lease.  These charges are included in the Statement of Operations as aircraft and facility lease exit costs.  The aircraft facility exit cost liability of $301,139 is included in the following Balance Sheet accounts:  $223,278 in other accrued expenses and $77,861 in other long-term liabilities.

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A summary of the activity charged to these liabilities is as follows:

10.        Retirement Health Plan

In conjunction with the Company’s collective bargaining agreement with its pilots, retired pilots and their dependents may retain medical benefits under the terms and conditions of the Health and Welfare Plan for Employees of Frontier Airlines, Inc. until age 65.  The costs of retiree medical benefits are continued under the same contribution schedule as active employees.

Net periodic benefit cost for the three and six months ended September 30, 2005 and 2004 includes the following components:

11.        Assets Held for Sale

In April 2005, the Company retired the remaining Boeing aircraft and has classified all remaining Boeing 737-300 aircraft rotable spare parts and expendable inventories as “assets held for sale”.  As such, these assets have been valued at the lower of the carrying amount or the estimated market value less selling costs.

In August 2004, the Company began selling Boeing spare parts and entered into agreements with vendors to sell these parts on a consignment basis.  The Company monitors resale values for Boeing parts quarterly using estimates obtained from outside vendors.  Based on the current market prices and recent sales history, the Company has determined that there is currently no additional impairment required for the Boeing rotable spare parts and expendable inventories.

Gains and losses that resulted from the sale of these assets are recognized as they are sold and reported in income from operations as a component of (gains) losses on sales of assets, net.  During the six-months ended September 30, 2005, the Company realized a net gain of $923,300 on the sale of these assets.

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12.        Recently Issued Accounting Standards

In December 2004, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 123R, “Share-Based Payments”.  SFAS No. 123R is a revision of SFAS No. 123, “Accounting for Stock Based Compensation”, and supersedes APB 25.  Among other items, SFAS 123R eliminates the use of APB 25 and the intrinsic value method of accounting, and requires companies to recognize the cost of employee services received in exchange for awards of equity instruments, based on the grant date fair value of those awards, in the financial statements.  The effective date of SFAS 123R will be the beginning of the fiscal year that begins after June 15, 2005.

SFAS 123R permits companies to adopt its requirements using either a “modified prospective” method, or a “modified retrospective” method.  Under the “modified prospective” method, compensation cost is recognized in the financial statements beginning with the effective date, based on the requirements of SFAS 123R for all share-based payments granted after that date, and based on the requirements of SFAS 123 for all unvested awards granted prior to the effective date of SFAS 123R.  Under the “modified retrospective” method, the requirements are the same as under the “modified prospective” method, companies may restate financial statements of previous periods based on proforma disclosures made in accordance with SFAS 123.

The Company currently accounts for stock based compensation under APB 25 and utilizes a standard option pricing model (i.e., Black-Scholes) to measure the fair value of stock options granted to employees.  While SFAS 123R permits entities to continue to use such a model, the standard also permits the use of a “lattice” model.

SFAS 123R also requires that the benefits associated with the tax deductions in excess of recognized compensation cost be reported as a financing cash flow, rather than as an operating cash flow as required under current literature.  This requirement will reduce net operating cash flows and increase net financing cash flows in periods after the effective date.  These future amounts cannot be estimated because they depend on, among other things, when employees exercise stock options.

The Company currently expects to adopt SFAS 123R effective April 1, 2006, and to use the modified prospective method; however, the Company has not yet determined which of the aforementioned option pricing models it will use.  In addition, the Company has not yet determined the financial statement impact of adopting SFAS 123R.

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Item 2:  Management’s Discussion and Analysis of Financial Condition and Results of Operations

Special Note About Forward-Looking Statements - This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that describe the business and prospects of Frontier Airlines, Inc. and the expectations of our company and management. All statements included in this report that address activities, events or developments that we expect, believe, intend or anticipate will or may occur in the future, are forward-looking statements. When used in this document, the words “estimate,” “anticipate,” “project” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated.  These risks and uncertainties include, but are not limited to:  the timing of, and expense associated with, expansion and modification of our operations in accordance with our business strategy or in response to competitive pressures or other factors; failure of our new markets to perform as anticipated; the inability to achieve a level of revenue through fares sufficient to obtain profitability due to competition from other air carriers and excess capacity in the markets we serve;  the inability to obtain sufficient gates at Denver International Airport to accommodate the expansion of our operations; general economic factors and behavior of the fare-paying public and its potential impact on our liquidity; terrorist attacks or other incidents that could cause the public to question the safety and/or efficiency of air travel; hurricanes and their impact on oil production, operational disruptions, including weather; industry consolidation; the impact of labor disputes; enhanced security requirements; changes in the government’s policy regarding relief or assistance to the airline industry; the economic environment of the airline industry generally; increased federal scrutiny of low-fare carriers generally that may increase our operating costs or otherwise adversely affect us; actions of competing airlines, such as increasing capacity and pricing actions of United Airlines (“United”), Southwest Airlines, and other competitors, particularly in some of our Mexico destinations due to the increase in the number of domestic airlines authorized to serve Mexico markets from the United States of America under recent changes to the bilateral agreement in place between the two countries; the availability of suitable aircraft, which may inhibit our ability to achieve operating economies and implement our business strategy; the unavailability of, or inability to secure upon acceptable terms, debt or operating lease financing necessary to acquire aircraft which we have ordered; uncertainties regarding aviation fuel prices, and various risk factors to our business discussed elsewhere in this report.  Because our business, like that of the airline industry generally, is characterized by high fixed costs relative to revenues, small fluctuations in our revenue per available seat mile (“RASM”) or cost per available seat mile (“CASM”) can significantly affect operating results.  These risks and factors are not exclusive, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this filing.  A discussion of some of these risk factors is included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2005.  These reports should be read in their entirety since no single section deals with all aspects of these matters.

Our Business

Now in our 12th year of operations, we are a low cost, affordable fare airline operating primarily in a hub and spoke fashion connecting cities coast to coast through our hub at Denver International Airport (“DIA”).  We are the second largest jet service carrier at DIA based on departures.  As of October 25, 2005, we, in conjunction with Frontier JetExpress operated by Horizon Air Industries, Inc. (“Horizon”), operate routes linking our Denver hub to 47 U.S. cities spanning the nation from coast to coast and to five cities in Mexico.  During the year ended March 31, 2005, we began certain point-to-point routes to Mexico from non-hub cities.  As of October 25, 2005, we also provided jet service to Cancun, Mexico directly from four non-hub cities.

We were organized in February 1994 and we began flight operations in July 1994 with two leased Boeing 737-200 jets.  We have since expanded our fleet in service to 49 jets as of October 25, 2005 (33 of which we lease and 16 of which we own), consisting of 42 Airbus A319s and seven Airbus A318s.  In April 2005, we completed our plan to replace our Boeing aircraft with new purchased and leased Airbus jet aircraft.  During the three and six months ended September 30, 2005, we increased year-over-year capacity by 5.7% and 5.9%, respectively.  During the three and six months ended September 30, 2005, we increased mainline passenger traffic by 11.6% and 14.5% over the prior comparable periods, outpacing our increase in capacity during the period.  We intend to continue our growth strategy and will add frequency to new markets and existing markets that we believe are underserved.

Recently our services to Cancun, Mexico, New Orleans, Louisiana and Florida have been disrupted by hurricanes and other extreme weather, impacting our service levels to these destinations and also impacting our revenues and cost of doing

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business.  We are always at risk of severe weather in any destination we serve.  While we believe we have developed sound strategies for addressing operational issues created by severe weather, we remain exposed to significant operational interruptions.  The two Gulf Coast hurricanes also severely damaged crude oil production and refinery capacity in the region.  As a result of these disruptions, the cost of jet aviation fuel increased within weeks by nearly $1.00 per gallon and caused fuel shortages at several airports that we serve.

In addition, with respect to our Mexico service, we note that the United States of America and the nation of Mexico recently amended its bilateral agreement relating to commercial air service.  Previously, only two U.S. based airlines were permitted to provide air service between the United States and Mexico.  In many cases, we were one of the two U.S. based airlines providing service to the cities we serve in Mexico.  The recent amendments to the bilateral agreement expanded the authorized service levels to three U.S. based airlines per city pair.  It is therefore highly likely that we will see other airlines seeking to add service to some of the Mexico destinations we serve, therefore increasing competition and perhaps placing downward pressure on air fares in these markets.

In September 2003, we signed a 12-year agreement with Horizon, under which Horizon operates up to nine 70-seat CRJ 700 aircraft under our Frontier JetExpress brand.  The service began on January 1, 2004 with three aircraft.  We increased JetExpress aircraft to a total of eight aircraft in service and one spare aircraft as of June 1, 2004.  We control the scheduling of this service.  We reimburse Horizon for its expenses related to the operation plus a margin.  The agreement provides for financial incentives, penalties and changes to the margin based on the performance of Horizon and our financial performance.  As of October 25, 2005, Frontier JetExpress provides service to Albuquerque, New Mexico; Boise, Idaho; Billings, Montana; Dayton, Ohio; El Paso, Texas; Fresno, California; Little Rock, Arkansas; Oklahoma City, Oklahoma; Spokane, Washington; Tucson, Arizona; and Tulsa, Oklahoma, and supplements our mainline service to Austin, Texas; Omaha, Nebraska, and San Jose, California.  We intend to begin using the ninth aircraft in scheduled service in December 2005.

We currently operate on 16 gates on Concourse A at DIA on a preferential basis.  We use these 16 gates and share use of up to four common use regional jet parking positions to operate approximately 230 daily mainline flight departures and arrivals and 50 Frontier JetExpress daily system flight departures and arrivals.

During the six months ended September 30, 2005, we added departures from DIA to the following cities with commencement dates as follows:

(1)  Operated exclusively by Frontier JetExpress.

In September 2005, we suspended our one daily flight to New Orleans, Louisiana due to Hurricane Katrina.

We have submitted the following applications to the United States Department of Transportation (“DOT”) to provide jet transportation which have been approved:

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(1) Seasonal service only

We have also submitted applications to the DOT for authority to provide roundtrip jet transportation for the following routes:  (1) Indianapolis, Indiana to Cancun, Mexico; (2) Chicago Midway Airport to Cancun, Mexico; and (3) Los Angeles International Airport to Cabo San Lucas, Mexico.

Due to our increased traffic in the first part of fiscal year 2006, we increased frequencies in the following markets: Reno, Nevada; San Jose, San Francisco; Sacramento California; Nashville, Tennessee; Dallas, Texas; St. Louis, Missouri; Milwaukee, Wisconsin; and Minneapolis-St. Paul, Minnesota.  In addition, we expanded the 2005 season for Anchorage, Alaska to January 3, 2006 and added another seasonal frequency from June 19, 2005 to January 3, 2006.

In October 2005, we announced the addition of one daily mainline flight to five of our top destinations as follows:  Denver to Salt Lake City from four daily flights to five beginning November 6, 2005; Denver to Dallas from five daily flights to six beginning December 18, 2005; Denver to Phoenix from six daily flights to seven beginning January 4, 2006, Denver to Las Vegas from six daily flights to seven beginning January 4, 2005; and Denver to Chicago-Midway Airport from four daily flights to five beginning on January 4, 2006.

In addition, we intend to increase service to other destinations in Mexico as follows:  (1) resume seasonal service to Ixtapa/Zihuatanejo on November 19, 2005, adding an additional weekly frequency from the 2004 season for a total of three round-trip frequencies per week, (2) increase service from Denver to Cabo San Lucas and Puerto Vallarta beginning December 17, 2005, with daily service plus an additional Saturday frequency during peak periods to both destinations, and (3) increase to three flights each day to Cancun from Denver during the peak winter holiday periods, effective December 17, 2005.  This represents an increase in our Cancun service from Denver and is part of our growing Cancun operation, which currently includes non-stop service to Cancun from St. Louis, Kansas City, Salt Lake City, Nashville and Denver.

Our filings with the Securities and Exchange Commission are available at no cost on our website, www.frontierairlines.com, in the Investor Relations folder contained in the section titled “About Frontier”.  These reports include our annual report on Form 10-K, our quarterly reports on Form 10-Q, current reports on Form 8-K, Section 16 reports on Forms 3, 4 and 5, and any related amendments or other documents, and are made available as soon as reasonably practicable after we file the materials with the SEC.

Our corporate headquarters are located at 7001 Tower Road, Denver, Colorado 80249.  Our administrative office telephone number is 720-374-4200 and our reservations telephone number is 800-432-1359.

Overview of Operations and the Industry

We intend to continue our focused growth strategy, which included the completion of a fleet transition from a Boeing fleet to an all Airbus fleet in April 2005.  One of the key elements of this strategy is to produce cost savings because crew training is standardized for aircraft of a common type, maintenance issues are simplified, spare parts inventory is reduced, and scheduling is more efficient.  As of October 25, 2005, we have remaining firm purchase commitments for 11 Airbus 319 aircraft from Airbus, and we intend to lease as many as four additional A319 aircraft from third party lessors over the next two years.  We intend to use these additional aircraft to provide service to new markets and/or to add frequencies to existing markets that we believe are underserved.

We believe we have a proven management team and a strong company culture and will continue to focus on differentiating the product and service we provide to our passengers.  We believe our affordable pricing, accommodating service and comfortable airplanes distinguish our product and service from our competitors.  Safety is a primary concern, and we are proud that our maintenance staff has been awarded the FAA Diamond Award for Excellence for six straight years – an award that recognizes our commitment to the ongoing training and education of our maintenance staff.  Our product begins with the Airbus aircraft, which offers a comfortable passenger cabin that we configure with one-class of comfortable seating, superb leg room, and in-seat 24 channel live television entertainment.  We also provide three additional channels that offer current-run pay-per-view movies.  Augmenting our product is our team of dedicated employees who strive to offer friendly customer service and keep operations running efficiently, which we believe leads to lower operating costs.

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The airline industry continues to operate in an intensely competitive market.  We expect competition will remain intense, as adverse economic conditions continue to exist.  Business and leisure travelers continue to reevaluate their travel budgets and remain highly price sensitive.  Increased competition has prompted aggressive strategies from competitors through discounted fares and sales promotions.  Additionally, the intense competition has created financial hardship for some of our competitors that have been forced to reduce capacity or have been forced into bankruptcy protection.

Highlights from the Quarter

•                  Took delivery of one new purchased Airbus A319 aircraft.

•                  Began Frontier JetExpress service to Dayton, Ohio and Fresno, California.

•                  Frontier filed a “shelf” registration statement with the Securities and Exchange Commission, which we can use to periodically sell up to $250,000,000 in preferred and common stock, and debt and other securities.

•                  In September 2005, we reached an agreement on a new contract covering our aircraft appearance agents and maintenance cleaners following a negotiation with the International Brotherhood of Teamsters.  The term of the collective bargaining agreement is ten years.

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Operating Statistics

The following table provides certain of our financial and operating data for the three and six months ended September 30, 2005 and 2004: