SKYW - XJT earnings

[centralpilot]

I re-read the financial report. I still could not find what you are describing.

I assumed that you had linked the 3Q 10Q which breaks out profit/loss for each business segment. The press release you posted is just a consolidated summary for Inc as a whole. Like it or not the XJT side of the holding company has not been profitable for some time. You are naive if you think the investors are going to accept XJT dragging down SKYW, Inc profitability indefinitely.

I don't think pilot concessions are the answer to the problem, but there are financial realities. Eventually Inc will solve the problem, and most of the options will not be good for XJT employees. The best course of action is to GTFO as soon as possible.

 

[centralpilot]

Here is 3Q 2013. Still profitable. Don't be askin' me for no concessions now.

http://inc.skywest.com/invest/investor_releases/SKYW Earnings 3Q2013.pdf

Here is the 2013 3Q 10Q filing:

Summary: http://biz.yahoo.com/e/131107/skyw10-q.html
Full filing: http://yahoo.brand.edgar-online.com/DisplayFiling.aspx?dcn=0001104659-13-082092

 

[Mickey Mouse]

How peculiar. XJT had less operating expense than Skywest Airlines. Even accounting for proportiate size differences.

Operating Revenues:
SkyWest Airlines Operating Revenue $ 468,517 $ 475,662 $ (7,145 ) (1.5 )%
ExpressJet Operating Revenues 381,749 386,803 (5,054 ) (1.3 )%
Other Operating Revenues 474 2,794 (2,320 ) (83.0 )%
Total Operating Revenues $ 850,740 $ 865,259 $ (14,519 ) (1.7 )%
Airline Expenses:
SkyWest Airlines Expense $ 420,132 $ 438,803 $ (18,671 ) (4.3 )%
ExpressJet Expense 387,857 388,464 (607 ) (0.2 )%
Other Airline Expense 3,576 2,492 1,084 43.5 %
Total Airline Expense(1) $ 811,565 $ 829,759 $ (18,194 ) (2.2 )% Airlines.

 

[centralpilot]

How peculiar. XJT had less operating expense than Skywest Airlines. Even accounting for proportiate size differences.

Yep. XJT's problem is primarily insufficient revenue. The primary options are to negotiate better contract rates with customers, shed the unprofitable contracts, or reduce expenses. They are of course attempting to do all three.

 

[Mickey Mouse]

We can massage these reports ad infinitum to make it appear that the sun is shining out of our respective asses. The bottom line is that SKYW Inc. is profitable because of both airlines. SKYW Inc. regularly assigns losses and gains to either side, for a variety reasons. For example, XJT or Skywest airlines may take a major hit in one quarter on engine overhauls for aircraft in their particular fleet, while the other airline does not. It's all a shell game. I am very pleased that SKYW Inc is a well managed and successful company. We need to stop all this separatist nonsense. If XJT as a collective pilot group takes one penny of concessions on the coming TA, they will reveal themselves to be nothing more than the spurious labels that they cast on airlines like Pinnacle, Mesa, and PSA.

 

[Nevets]

Where are you seeing a profitable XJT in that report? To me it looks like that segment of SKYW, Inc lost $6.1M.

They add all the non-operating expenses and revenues. I did the math for you and took those out. Last year, XJT was operationally profitable and this year they are not.

 

[asayankee]

Is management still paying tens of millions of dollars AHEAD of engine and airframe major overhauls? Easy to show a loss against a business entity when you pay ahead on your expenses.

 

[centralpilot]

They add all the non-operating expenses and revenues. I did the math for you and took those out. Last year, XJT was operationally profitable and this year they are not.

I was talking to Mickey Mouse, not you. Mickey was discussing 3Q of this year, not last year.

 

[Jon Rivoli]

Is management still paying tens of millions of dollars AHEAD of engine and airframe major overhauls? Easy to show a loss against a business entity when you pay ahead on your expenses.

Prepaids are listed on the 10Q. Prepaid aircraft rents amount to just over $335 million. It is one of the strategies to improve profitability. By prepaying you can get significant discounts on leases, insurance and MX expenses. It is accounted for in the current assets section.

When added to cash and marketable securities it brings the effective usable cash balance in the near term to over $1.3 billion.

That is a lot of cabbage on hand. My guess is that is being saved up for the inevitable execution of plan B, post CPA operations.

 

[PBRstreetgang]

Prepaids are listed on the 10Q. Prepaid aircraft rents amount to just over $335 million. It is one of the strategies to improve profitability. By prepaying you can get significant discounts on leases, insurance and MX expenses. It is accounted for in the current assets section.

When added to cash and marketable securities it brings the effective usable cash balance in the near term to over $1.3 billion.

That is a lot of cabbage on hand. My guess is that is being saved up for the inevitable execution of plan B, post CPA operations.

Also makes the operation a target for hostile takeover. By taking over SKYW, it becomes possible to deny the other partners/competition feed. There is something afoot, that's for sure.

 

[Jon Rivoli]

That's enough cash to execute a stock buy back to stave off a hostile takeover. A majority share is probably already held by the Treasury, Jerry and a few select investors to block any attempt.

Whatever may be afoot; Delta has become an intractable partner, squeezing regional feed beyond sustainable limits and there seems to have been a falling out between them and Alaska.

All EMB orders are convertible to 195's and SKYW own's the gate's in SLC.

Who knows.

 

[Mercyful Fate]

Hostile takeover..that is funny

 

[Nevets]

Hostile takeover..that is funny

Not really. It's conceivable but it would definitely signal an "all-in" strategy. It's one thing to play with other people's money (shareholders) but it's entirely different when it's your own money.