Skywest Inc quarterly earnings call

[johnpeace]

I wasn't able to listen, anyone got a recap?

 

[Jetjockey]

Jerry gets even richer off the backs of low wage workers. Now go pick up a trip.

 

[damnflyboy]

All I could hear out of the call was cost reductions coming on the ASA side. A caller asked about specifics, but BR didn't feel comfortable elaborating.

 

[COOPERVANE]

First time SKW has had a loss in 90 quarters. 23 years. 11 million loss was less than the 13 million forecast loss

Loss mostly due to reduction of DCI rates (7 million) and the reduction of block hours. Lots of heavy checks costs at ASA. These will affect SKW for the rest of the year.

Air Mekong had a 2 million loss.

Repurchased 17 million of SKW stock (source of the most loss?)


The rebroadcast will be available until through May 19, 2011 till 9:00 a.m. EST. call 1-877-344-7529 enter code 450200

 

[WWEfan]

Cost cutting initiatives coming to ASA. What a coincidence considering the pilots are in negotiations.

 

[homerjdispatch]

SkyWest made money, ASA and Expressjet lost money.

 

[COOPERVANE]

So if a company repurchases 17 million of its own stock, and shows an 11 million loss, is there REALLY a loss? Or is that smoke and mirrors?

 

[crj567]

So if a company repurchases 17 million of its own stock, and shows an 11 million loss, is there REALLY a loss? Or is that smoke and mirrors?

BINGO!

-At least someone here is smart enough to understand this crap.

Jerry spends @$20 million or so on a completely arbitrary stock buyback, and yet we "lost" money. The bad part is that our union and pilots will all be fooled by this B.S., and we will choke down a pay cut.

This is the best money Jerry ever spent! (You may notice that the stock price hasn't really dropped, all the real institutional investors know exactly what is going on-Jerry is just browbeating some dumbass pilots again.)

 

[SiuDude]

You idiots, stock repurchase is a no-net-gain transaction. They're trading shares for cash (sorry, I mean CA$H-MONEY) and it doesn't get reported as operating income or loss. In addition, stock repurchase increases the value of the outstanding shares.

 

[COOPERVANE]

How would I know that. I just read your one book.

 

[crj567]

You idiots, stock repurchase is a no-net-gain transaction. They're trading shares for cash (sorry, I mean CA$H-MONEY) and it doesn't get reported as operating income or loss. In addition, stock repurchase increases the value of the outstanding shares.

See what I mean?

We are making it way too easy for Jerry. Go find someone who actually understands anything at all about accounting or finance and bug them. I just don't have the patience to try and explain the obvious anymore.

 

[777forever]

First time SKW has had a loss in 90 quarters. 23 years. 11 million loss was less than the 13 million forecast loss

Loss mostly due to reduction of DCI rates (7 million) and the reduction of block hours. Lots of heavy checks costs at ASA. These will affect SKW for the rest of the year.

Air Mekong had a 2 million loss.

Repurchased 17 million of SKW stock (source of the most loss?)


The rebroadcast will be available until through May 19, 2011 till 9:00 a.m. EST. call 1-877-344-7529 enter code 450200

The way I heard it was the lost was mainly due to weather, with heavy maintenance contributing. Skywest Inc lost around 13,000 block hours due weather to the tune of $10 million.

Air Mekong lost 2 million, which was expected and budgeted for. Expecting a $1 million loss for the next couple of quarters. Nothing out of the normal or concerning for a start up. Revenue and load factor continue to increase.

17 million repurchase was a contributing source to loss of cash and securities of about $90 million. Did not affect profit/loss numbers

 

[777forever]

See what I mean?

We are making it way too easy for Jerry. Go find someone who actually understands anything at all about accounting or finance and bug them. I just don't have the patience to try and explain the obvious anymore.

He's right. Your posts are pure comic relief

 

[blesko]

Is someone at SKYW awaiting a large bonus or bailout, perhaps in stock?

 

[enuffalready]

SkyWest made money, ASA and Expressjet lost money.

I love this one...

so Skywest INC owns both.... manage both.... have their hand placed 'leaders' in both....and lets say you are right and one is making money... and the other isnt... then whose fault is that? It aint the pilots.. Skywest has owned us long enough to sprinkle the magic pixie dust...we all are here every day and watch what is going on....if someones tries to tell me its the pilots i will laugh.. if you compare w2 vs w2 between pilots... skywest makes more..

 

[NotTooBad]

See what I mean?

We are making it way too easy for Jerry. Go find someone who actually understands anything at all about accounting or finance and bug them. I just don't have the patience to try and explain the obvious anymore.

Simply astonishing....

 

[EngineOut]

I love this one...

so Skywest INC owns both.... manage both.... have their hand placed 'leaders' in both....and lets say you are right and one is making money... and the other isnt... then whose fault is that? It aint the pilots.. Skywest has owned us long enough to sprinkle the magic pixie dust...we all are here every day and watch what is going on....if someones tries to tell me its the pilots i will laugh.. if you compare w2 vs w2 between pilots... skywest makes more..

I don't think anyone indicated it was the pilots. The problem was winter weather in Houston, Chicago, and Atlanta. Coupled with heavy maintenance obligations for the CRJ200s. That simple. BR even mentioned that the fuel costs have been mitigated by successful fare increases on the pro-rate operations.

 

[jstyle13]

So what's the deal on the perf+ payout if there even is one? Is it delayed again like last time in Feb? Course I guess it really doesn't matter. I'm sure it was under 1% and the performance numbers were so bad last quarter they are probably going to ask us pay them this time....

 

[johnpeace]

At less than $200/quarter, who gives a ******************** about perf+?

 

[SPDBRD747400]

So what's the deal on the perf+ payout if there even is one? Is it delayed again like last time in Feb? Course I guess it really doesn't matter. I'm sure it was under 1% and the performance numbers were so bad last quarter they are probably going to ask us pay them this time....

I'm guessing a big fat doughnut! But "Thanks for all you do!" What the FU%& ever!

 

[blesko]

You idiots, stock repurchase is a no-net-gain transaction. They're trading shares for cash (sorry, I mean CA$H-MONEY) and it doesn't get reported as operating income or loss. In addition, stock repurchase increases the value of the outstanding shares.

Yeah that's only partly true. A=L+OE. Where assets are in cash and OE is in stock. They are on two sides of the balance sheet where one can report a "loss" but the other side of the sheet reveals a different story.

 

[fastback]

Yeah that's only partly true. A=L+OE. Where assets are in cash and OE is in stock. They are on two sides of the balance sheet where one can report a "loss" but the other side of the sheet reveals a different story.

I thought it was ALORE: Assets = Liabilities + Owner's equity + [Revenue - Expenses].

The [Revenue - Expenses] part is the profit or loss. So a stock buyback from cash should have no impact on top or bottom line numbers.

 

[777forever]

Yeah that's only partly true. A=L+OE. Where assets are in cash and OE is in stock. They are on two sides of the balance sheet where one can report a "loss" but the other side of the sheet reveals a different story.

Incorrect

All I could hear out of the call was cost reductions coming on the ASA side. A caller asked about specifics, but BR didn't feel comfortable elaborating.

Just to clarify the caller asked about what specific amount in cost reduction were they looking for, not how they are going to do it. BR was hesitant to say a specific amount but did go into a little detail about how the significant reduction in ASA's average stage length (450mi avg reduced to 400mi) has negatively impacted its cost structure due to higher cycles on aircraft and increased maintenance.

 

[NotTooBad]

Incorrect



Just to clarify the caller asked about what specific amount in cost reduction were they looking for, not how they are going to do it. BR was hesitant to say a specific amount but did go into a little detail about how the significant reduction in ASA's average stage length (450mi avg reduced to 400mi) has negatively impacted its cost structure due to higher cycles on aircraft and increased maintenance.

I believe that number was 300mi

 

[777forever]

I believe that number was 300mi

Correct. Stupid smartphone and me not proofreading

 

[homerjdispatch]

Correct. Stupid smartphone and me not proofreading

Yeah.. because the smart phone changes a 400 to 300... Smartphones arent stupid, people are...

 

[blesko]

Incorrect



Uh, brush up on the accounting chief........ they used cash (an asset) to repurchase stock (owners equity), resulting a net cash loss as its tied up in OE.

 

[nerjdriver]

BINGO!



Jerry spends @$20 million or so on a completely arbitrary stock buyback, and yet we "lost" money. The bad part is that our union and pilots will all be fooled by this B.S., and we will choke down a pay cut.

This is the best money Jerry ever spent! (You may notice that the stock price hasn't really dropped, all the real institutional investors know exactly what is going on-Jerry is just browbeating some dumbass pilots again.)

XJT guys won't buy it ever again. Seems ASA has a few kool-aid drinkers willing to sell their first born for the survival of the mighty ASA. This is all smoke and mirrors, bs, games or whatever you want to call it. At the end of the day I want my contract and then some, pre-concessionary wages and then some, until then.....I vote NO.

 

[blesko]

I thought it was ALORE: Assets = Liabilities + Owner's equity + [Revenue - Expenses].

The [Revenue - Expenses] part is the profit or loss. So a stock buyback from cash should have no impact on top or bottom line numbers.

Revenue-Expenses= Profit. Generically, this is in cash, which is then considered an asset. It is not always an asset, unless the profit is positive.

 

[crj567]

Incorrect



Uh, brush up on the accounting chief........ they used cash (an asset) to repurchase stock (owners equity), resulting a net cash loss as its tied up in OE.

Thank you for handling that dumbass (and the dumbass before him....) I just don't have the patience.