SKYW - XJT earnings

[Newpilot2b]

Mickey your a bigot. Leave religion out of it.

 

[pilotnbr1]

Forgive me. Allow me to draw a better analogy. The faucet has been leaking for years, but its not leaking as much these days.

Still not accurate... Asa was VERY profitable for many years- it has only been in the last few years we started to lose money. Yes there is waste as there is everywhere (Skywest included) ie your "leaking faucet". Well over half of ExpressJet is enjoying the best labor contracts (pilots, mechanics, fas) AND Delta is putting the screws on the CRJ side with rate resets (pretty hard to compete with the likes of GoJets and Pinnacle) .

Maybe a more accurate analogy would be that we are in a race and someone popped our tires. You can still floor it but we aren't going to win even with the best engine and driver.

 

[fastback]

The link to the transcript of the earnings call can be found here.

You can read it for yourself. But here are a few nuggets for you:



Also, in this transcript you will notice that the company sold all of its stake in Air Mekong which was recorded as a $5M profit on top of SkyWest's $18.75M. They went on to say that they have received payments from TRIP which were relfected in the overall profit but that the amount of those payments can not be discussed until the final payment has been received, which will happen in the third quarter of 2014.

Thanks, but still not seeing actual numbers showing Express losing money. Certainly not losing money like a "stuck" pig.

 

[XPOO]

Thanks, but still not seeing actual numbers showing Express losing money. Certainly not losing money like a "stuck" pig.

I couldn't care less, but if you are truly interested to find out just how much money ExpressJet lost, all you have to do is wait for the 10-Q filing due out by the end of the week. You'll find anything and everything you want to know in that document. Nevets can help you find it, he reads it all the time.

 

[Freebrd]

Couldnt care less! Thats rich. You're always the first to post earnings every quarter and flame the Xjt side. So, you're basically admitting you're nothing but a flame bait turd when your're between eBay viewing and maybe dispatching flights. Got it.

ps any relation to Jenny Leigh?

 

[Nevets]

Bottom line, Skywest pilots, shut the fk up and get in line. XJT is running the show now. We are not a part of your stupid student council- in-house sissy party. We don't care how much you love being dominated and subjugated. We don't play like that. Call it East Coast, Call it West Coast. Call that TA dead on arrival. The combined XJT pilot group is the majority economic engine behind Skywest Incorporated. If you want to live in the land of make believe and think that your little 30% pilot group drives the prosperity, then you are woefully mistaken. Keep dreaming your Joseph Smith dreams and wearing your special under garments, and we'll keep demanding a working man's wage appropriate for the work.

I think it's you who needs to STFU. Hopefully I missed the sarcasm. But let's be clear. SGU runs the show at both airlines. Neither pilot group runs anything. We all just show up to work and do our jobs safely in order to go home after our trips. No one is better than anyone else in that respect. Which side being profitable is solely management's responsibility.

No, that isn't what he said. He said that XJT made a small operational profit, which isn't the same as, you know, actual profit.

The rest is interest expense, which only SGU controls.

The Skywest Airlines contracts with mainline partners is structured differently from the agreements of ExpressJet. Each has different financial incentives and penalties.

To compare one group to another by strictly looking at profits is a huge uninformed generalization...

Skywest Airlines is reaping the rewards of great contracts they negotiated with their partners. For the previous quarter their pro-rate flying did particularly well. Thus their management can afford to properly compensate their pilot group, adequately staff, hire talented leadership, and otherwise financially motivate their work force.

The Expressjet CRJ side lost much of their profit margin with the last rate reset and will have another rate reset coming when they once again have to provide the second lowest Delta lift. I cannot speak for the ERJ, but I do know the ERJ pilots, FAs, and mechanics have superior contracts, which are being targeted by management as low hanging fruit. Both sides of the Expressjet operation are hitched to the same operational and management wagon. All sides of the Expressjet operation are going to continue to be squeezed for profitability.

In my opinion the Expressjet Crj side has more of an income problem rather than a cost problem.

A specific number was not put on the Expressjet loss and the loss was made to sound marginal. To post that Expressjet "is losing money like a stuck pig" is inflammatory, spiteful, and inaccurate.

Keep in mind that all the different contracts that XJT has with their mainline partners were ALL negotiated by the same people that negotiated Skywest's great contracts. This is not a labor problem whatsoever!

 

[Mickey Mouse]

Nevets, you're so gay

 

[Mickey Mouse]

SKYW Inc. is actually very upset with the XJT management team for unsuccessfully bringing about an expeditious resolution to the Joint contract. The St George group is also very disappointed that the XJT management team was unable to circumvent more work rules in order to increase the bottom line. I have obtained a video of the board meeting, which followed the financial results announcement from last quarter. You can clearly see all the major players from SKYW inc., and how they deal with such substandard performance.

http://www.youtube.com/watch?v=qdFLPn30dvQ

 

[Freebrd]

Mickey could you point out Xpoo in that video as she's probally low level management. :beer:

 

[Nevets]

According to the Q for the 3 months ended 9/30/13 Skywest had an operational profit of $59,197,000 and XJT had an operational loss of $834,000. And for the 9 months ended 9/30/13, Skywest had an operational profit of $147,927,000 and XJT had an operational loss of $19,672,000.

As a comparison, for the 3 months ended 9/30/12 Skywest had an operational profit of $49,151,000 and XJT had an operational profit of $4,292,000. And for the 9 months ended 9/30/12, Skywest had an operational profit of $122,794,000 and XJT had an operational profit of $5,174,000.

 

[Mickey Mouse]

According to the Q for the 3 months ended 9/30/13 Skywest had an operational profit of $59,197,000 and XJT had an operational loss of $834,000. And for the 9 months ended 9/30/13, Skywest had an operational profit of $147,927,000 and XJT had an operational loss of $19,672,000.

As a comparison, for the 3 months ended 9/30/12 Skywest had an operational profit of $49,151,000 and XJT had an operational profit of $4,292,000. And for the 9 months ended 9/30/12, Skywest had an operational profit of $122,794,000 and XJT had an operational profit of $5,174,000.

Could you please post the data sheet or public release of the information that you are describing. The only public information I could find is that which is released by SKYW Inc. It doesn't break down airline specific data. I would love to see accurate line item financial allocation data per airline. Below is SKYW Inc. official release for 3Q 2012. If it is an SEC violation, then don't bother.

http://inc.skywest.com/invest/investor_releases/SKYW Earnings 3Q2012.pdf

 

[Mickey Mouse]

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

 

[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

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

 

[Mickey Mouse]

3Q 2013 SKWY (Public)

 Increased pretax income 34.8% to $44.4 million, compared to $32.9 million
 Increased fully-diluted EPS 25.0% to $0.50, compared to $0.40
 Increased block hour production 2.8% to 613,821 block hours, compared to 596,901
block hours
 Increased operating revenues by approximately $32.9 million (net of fuel, certain engine
overhaul and landing fee pass through revenues), primarily related to rate escalations
under SkyWest’s agreements with its major partners and increased block hour production
 Made cash payments of $22.9 million consisting of $11.5 million for the repurchase of
800,000 shares of treasury stock and $11.4 million for deposits on new aircraft
 Increased total aircraft fleet to 756 aircraft as of September 30, 2013, compared to 739
aircraft as of September 30, 2012

Commenting on the results, Jerry C. Atkin, SkyWest’s Chairman and CEO, said “We are pleased with the improved financial performance for the current quarter.

If Jerry Atkin is happy, I"m happy. I re-read the financial report. I still could not find what you are describing.

 

[Mickey Mouse]

We are one company, Skywest Incorporated. Stop all the bolstering of Skywest Airlines. It's getting nauseating.

 

[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.