Attention ASA pilots: Another 40 million quarter for SKYWEST

[ASA_Willy]

I think you'll find that people take you a lot more seriously if you are not degrading toward other people.

I don't claim to be an expert at much of anything. The point of my post is that Skywest inc.'s margins, however you choose to calculate them, are not very large and are getting smaller and that's why Jerry's being so tight with everything. He has always run the company in a very financially conservative way and that has brought himself, Skywest Airlines, and all us a lot of reward in the long term.

Scott

I'm not so sure what I said that was degrading, but Willy doesn't really want to be taken that seriously by anyone, so I guess I'll live with it. My point is that you came on here claiming that the ASA pilots should have mercy on JA and Skywest Holding, citing a profit margin of 5% and claiming it is a very slim margin, while demonstrating that you don't have even a cursory understanding of how to read a financial statement.

Willy's no expert at financials, but the numbers in the cited press release show a pretty good profit picture for the company. The acquisition of ASA more than doubled the company's revenue and resulted in a proportional increase in operating income. Net income as a percentage of revenue is down (the number you keyed on), but that is an expected consequence of the increased debt service brought on by the borrowing to acquire ASA.

So, please stop with the profit margin BS. It is not the measure of the company's profitability, esp. when you don't even use the right numbers. Watch a little CNBC, like Willy does, or try reading the WSJ . Then you will look at the growth in EPS (that's earnings per share) and say "Damm, SKYW's 2nd Qtr numbers are up over 47% in the year since they bought ASA. Bet they could spring for some pay raises all around."

 

[atrdriver]

Assuming ASA provides 40% of Skywest Inc.'s profits, I get a return on investment of 14%. Good, but "tremendous"? I maintain that Skywest's purchase of ASA was a lot more about securing a long term Delta Connection contract than with return on investment from purchasing ASA.

If you were getting a 14$ return on your 401K you would be thinking "tremendous". And yes, anything over about 10% is pretty dam good.

 

[atrdriver]

The previous margin was 13%. Great in any industry.

More even that those evil oil companies...