Skywest Conference Call

[Plainsman]

FWIW
SkyWest Conference Call - Aug. 8ST. GEORGE - SkyWest, Inc. will discuss second quarter 2007 earnings results during a conference call at 9 a.m. MDT on Wednesday, August 8. The call will provide an overview of the results followed by a question and answer session.

The call-in number for domestic callers is 1-866-322-0204. The call-in number for international dialers is 1-706-679-2328. The conference ID # is 10293320.

Callers are urged to call ten minutes before the scheduled hour to insure a prompt starting time. If you have any questions, please contact Tevya Hilsmann at (435) 634-3203. Interested parties can also access the call live via PR Newswire Webcast at: http://www.videonewswire.com/event.asp?id=41226

In addition, a digital rebroadcast of the conference call will be available after 12:30 p.m., EDT on August 8 through August 22. Domestic callers can access the rebroadcast by dialing 1-800-642-1687; international callers can access the rebroadcast by dialing 1-706-645-9291. The conference ID for the rebroadcast is 10293320.

 

[DenverCrashpad]

ST. GEORGE, Utah, Aug. 8 /PRNewswire-FirstCall/ -- SkyWest, Inc. today reported operating revenues of $855.0 million for the quarter ended June 30, 2007, an 8.2% increase, compared to $790.4 million for the same period last year. SkyWest also reported net income of $40.6 million for the quarter ended June 30, 2007, or $0.62 per diluted share, compared to $39.3 million of net income or $0.62 per diluted share for the same period last year.

SkyWest also reported operating revenues of $1.64 billion for the six months ended June 30, 2007, a 7.2% increase, compared to $1.53 billion for the same period last year. SkyWest also reported net income of $75.4 million for the six months ended June 30, 2007, or $1.15 per diluted share, compared to $73.9 million of net income or $1.19 per diluted share for the same period last year.
The primary items of significance affecting the second quarter of 2007 are outlined below:
Total operating revenues for the second quarter of 2007 increased primarily as a result of a 14.5% increase in available seat miles (ASMs) which was partially offset by a reduction in yield per revenue passenger mile of 5.7% and by increased fuel cost reimbursements by SkyWest's major partners that are recorded as operating revenues and as operating expenses, under contract flying arrangements.
Total operating expenses and interest per ASM for the second quarter of 2007, excluding fuel charges of $276.2 million or $0.048 per ASM, decreased approximately 2.2% to $0.090 from $0.092 for the same quarter of 2006.
Total ASMs for the second quarter of 2007 increased 14.5% from the second quarter of 2006, primarily as a result of SkyWest increasing its fleet size to 434 aircraft as of June 30, 2007, from 397 aircraft as of June 30, 2006. At June 30, 2007, SkyWest's fleet consisted of: 362 regional jets (233 Delta, 117 United and 12 Midwest); 60 EMB-120 aircraft (48 United, and 12 Delta); and 12 ATR72 aircraft (all Delta). During the second quarter of 2007 SkyWest generated 5.8 billion ASMs, compared to 5.1 billion ASMs during the same period of 2006.
During the quarter ended June 30, 2007, SkyWest began repurchasing outstanding shares of its common stock under a 5 million share stock buyback program previously authorized by its board of directors. As of June 30, 2007, SkyWest had repurchased approximately 2.3 million shares at a cost of approximately $60.2 million. SkyWest will continue to purchase common shares of its outstanding stock under the authorized stock buyback program, from time to time, as it deems appropriate.
SkyWest recorded stock based compensation expense of approximately $3.9 million ($2.5 million after tax) for the quarter ended June 30, 2007. Future stock based compensation expense will be contingent upon the amount of future option or stock grants that are made by SkyWest's Board of Directors. At June 30, 2007 SkyWest had $676.9 million in cash and marketable securities compared to $651.9 million as of December 31, 2006. SkyWest's long-term debt increased to $1.79 billion as of June 30, 2007, compared to $1.68 billion at December 31, 2006, consistent with SkyWest's financing arrangements on aircraft and making normal recurring debt payments. During the quarter ended June 30, 2007, SkyWest took delivery of eight CRJ 200 aircraft and two CRJ900 aircraft and financed them through a combination of permanent third-party operating leases and long-term debt. One CRJ200 was acquired with cash from working capital. SkyWest has significant long-term lease obligations that are recorded as operating leases and are not reflected as liabilities on SkyWest's consolidated balance sheets. At a 7.39% discount factor, the present value of these lease obligations was approximately $2.1 billion as of June 30, 2007.

 

[AV8700]

Interesting the talk about international business (23 minute mark) and also pilot attrition at ASA at 18% and LeBreque's statement that they have not had to lower standards to attract new pilots.

 

[Tomct]

Once again, mgmnt lying to the entire pilot group about how GREAT everything is going....no pilot shortage....everything's fine....don't look outside and maybe the tornado will just go right on by! What a bunch of RETARDS!! Of course they continue to line THEIR (mgmnts) pockets off the back of the employee groups, but hey, its okay....JA loves us! What a load of CRAP!

 

[~~~^~~~]

And the President of ASA's phone doesn't work - par for course.

When he did get his phone working he said pilot attrition is "plausible." It seemed an odd choice of words, so I looked it up.

The word is defined as:

ADJECTIVE:

1. Seemingly or apparently valid, likely, or acceptable; credible: a plausible excuse.
2. Giving a deceptive impression of truth or reliability.
3. Disingenuously smooth; fast-talking

So I guess this was proper use of the word since he then went on to say that ASA has not had to lower standards to cover 18% attrition and SkyWest's management said it would not cost any more money to train pilots.

Very... plausible.

After the earnings report bump, I sold my shares.

 

[Tarzan]

Most companies have assumed training costs that are already factored in. These viewed like lease payments on the aircraft. So as far as the numbers are concerned, there is no increase in cost.

 

[~~~^~~~]

True, but most airlines don't have to train 25% or more of their seniority list every year.

 

[PinnacleDude]

True, but most airlines don't have to train 25% or more of their seniority list every year.

I think Pinnacle and Mesa do as well. Of course there might be a reason for that. Anybody see any correlation here?

 

[Jmoney]

Training Costs!

I have heard that regionals generally get to "pass thru" most or all of their training costs to their majors. I am not sure about the validity of this supposition, but it would tend to explain a lot if it were true!
Who would care what the training costs were or how high attrition may be if you really didn't have to pay for it?