Pinnacle Airlines Corp. Reports 2008 Full Year and Fourth Quarter Financial Results
MEMPHIS, TN - 03/05/09— Pinnacle Airlines Corp.
(NASDAQ: PNCL) (the “Company”) today reported its fourth quarter and
full year 2008 results of operations. Prior to reviewing the
Company’s financial results, the People of Pinnacle Airlines Corp.
wish to acknowledge the terrible tragedy of flight 3407. Fifty
individuals perished in the crash of flight 3407 on February 12,
2009.
“On behalf of our senior management team and the entire Pinnacle
Airlines Corp. family, I want to again express our deepest sympathies
to the families of the passengers and crew members of flight 3407 and
to those affected on the ground,” said Philip Trenary, the Company’s
President and Chief Executive Officer. “We are all profoundly
saddened by this terrible accident.”
Company Reports Consolidated Fourth Quarter 2008 Operating Income of
$16.3 Million
The Company reported fourth quarter 2008 net income of $4.0 million
and fully diluted earnings per share (“EPS”) of $0.22, excluding an
$8.1 million ($7.8 million net of tax) special charge related to
impairment of its auction rate securities (“ARS”) portfolio.
Including this charge, the Company reported a net loss of $3.8
million and a net loss per share of $0.21 for the fourth quarter of
2008. The Company reported net income and EPS of $6.7 million and
$0.32, respectively, for the fourth quarter of 2007.
The Company’s consolidated operating income during the fourth quarter
of 2008 was $16.3 million, an increase of 73% over the fourth quarter
of 2007. During the fourth quarter of 2008, Pinnacle Airlines, Inc.
(“Pinnacle”), the Company’s regional jet operating subsidiary,
reported operating income and an operating margin of $13.8 million
and 9.0%, respectively, while Colgan Air, Inc. (“Colgan”), the
Company’s regional turboprop operating subsidiary, reported operating
income and an operating margin of $2.5 million and 4.0%,
respectively.
The Company’s consolidated net income for the full year 2008
excluding special charges was $19.9 million. During 2008, the Company
recorded a special charge of $13.5 million ($8.7 million net of
taxes) related to the impairment of goodwill and aircraft lease
return costs associated with the restructuring of Colgan’s pro-rate
operations. In addition, the Company recorded charges totaling $16.8
million ($16.1 million net of taxes) related to the impairment of its
ARS portfolio. Including these charges, the Company recorded a net
loss and net loss per share of $4.9 million and $0.27, respectively,
for 2008. In 2007, the Company reported net income and EPS of $37.3
million and $1.61, respectively, excluding special items.
Recent
Financial Accomplishments
—During January 2009 the Company repurchased $12 million par amount
of its 3.25% convertible notes due 2025 (the “Notes”) for a purchase
price of approximately $9 million. This reduces the Company’s
potential obligation in February 2010, when the holders of the Notes
have an option to require the Company to redeem the Notes at par. The
Company continues to evaluate financing alternatives to raise
additional capital in 2009, and may purchase additional Notes prior to
the February 2010 optional redemption date.
—The Company has finalized the amount of its 2008 federal income
tax refund and expects to receive approximately $31 million in April
2009. This tax refund will further improve the Company’s liquidity.
—In January 2009, Colgan and Continental Airlines agreed to expand
their relationship whereby Colgan will acquire and operate an
additional 15 Q400 aircraft under its capacity purchase agreement
with Continental (the “CPA”). Colgan is scheduled to take delivery of
these aircraft from August 2010 through April 2011. Colgan also
secured from Bombardier options to purchase an additional 15 Q400
aircraft with delivery dates beginning in March 2013. These options
are reserved exclusively for Continental. In connection with this
aircraft order, the Company has also arranged for a commitment from a
lender to finance the 2010 and 2011 aircraft deliveries on terms
substantially similar to the financing arrangements for its existing
Q400 fleet. This arrangement includes a commitment to finance most
pre-delivery payments. All of the Company’s payment obligations
through April 2010 associated with this aircraft order have been
financed.
—In December 2008, Pinnacle took delivery of three CRJ-900 aircraft
to be operated under its Delta Connection Agreement (the “DCA”) with
Delta Air Lines. These aircraft went into service under the DCA
during the first quarter of 2009. With the addition of these three
aircraft, Pinnacle now operates 14 permanent CRJ-900 aircraft under
the DCA. Pinnacle expects to take delivery of the remaining two
CRJ-900 aircraft and place them into service under the DCA during the
second quarter of 2009. In January, Pinnacle also began returning to
Delta the seven CRJ- 900 aircraft that it has temporarily operated
under the DCA. These seven aircraft will be fully transitioned back
to Delta during the second quarter of 2009, at which time Pinnacle
will operate its permanent fleet of 16 CRJ-900 aircraft under the
DCA.
—Colgan continues to execute on its previously announced pro-rate
turn-around plan. Colgan retired six Saab 340 and three Beech 1900
aircraft during the fourth quarter of 2008. During February 2009,
Colgan retired its remaining two Beech 1900 aircraft from the
operating fleet. The Company will continue to evaluate Colgan’s
pro-rate operations and may make additional adjustments throughout
2009 depending on revenue and fuel price trends.
Fourth Quarter 2008 Financial and Operating Results
During the fourth quarter of 2008, Pinnacle completed 111,167 block
hours and 67,325 departures, increases of 1% and 2%, respectively,
over the same period in 2007. Capacity increases associated with
Pinnacle’s new CRJ-900 fleet operating under the DCA were partially
offset by a decrease of 13 CRJ-200 aircraft that were returned to
Northwest Airlines during 2008. Colgan completed 36,262 block hours
and 28,561 departures during the fourth quarter, increases of 12% and
5%, respectively, over the same period in 2007. The addition of
Colgan’s Q400 aircraft fleet was the primary factor in the growth in
its operations.
The Company recorded consolidated operating revenue during the fourth
quarter of 2008 of $217.5 million, an increase of $16.4 million, or
8%, over the same period in 2007. The increase is primarily related
to an increase of $31.1 million in revenue earned under the Company’s
new DCA and CPA, partially offset by a decrease of $8.3 million in
revenue earned under the Company’s CRJ-200 Airline Services Agreement
(the “CRJ-200 ASA”) with Delta due to the return of 13 CRJ-200
aircraft throughout 2008. Also partially offsetting this increase
was a decrease in Colgan’s pro-rate revenue of $6.4 million, related
primarily to the retirement of aircraft and exit of unprofitable
markets, as compared to the same period in 2007.
Consolidated operating income and operating margin were $16.3 million
and 7.5%, respectively, during the fourth quarter of 2008.
Consolidated operating income and operating margin for the fourth
quarter of 2007 were approximately $9.5 million and 4.7%,
respectively.
Pinnacle reported fourth quarter 2008 operating income and operating
margin of $13.8 million and 9.0%, a decrease of $0.4 million and 0.4
points, respectively, from the fourth quarter of 2007. This decrease
is primarily related to a decrease in flight crew productivity due to
higher than planned levels of pilot and flight attendant staffing.
Pinnacle also incurred certain ownership costs related to two CRJ-900
aircraft that delivered in July 2008 but that did not enter permanent
scheduled service under the DCA until January 2009. In addition,
Pinnacle experienced an increase in unreimbursed maintenance costs
associated with its CRJ-200 fleet. During the fourth quarter,
unreimbursed maintenance costs increased at a greater rate than the
inflation indexed revenue increases that Pinnacle received under the
CRJ-200 ASA. In addition, Pinnacle has undertaken several
maintenance programs that are expected to increase the operating
reliability of the fleet, decrease maintenance costs in future
periods, or that are recommended by the engine manufacturer.
Pinnacle expects to continue to be affected by these higher
maintenance costs during 2009. Partially offsetting these increased
labor and maintenance costs is the addition of income from Pinnacle’s
DCA.
Colgan reported operating income and operating margin of $2.5 million
and 4.0%, an increase of $7.3 million and 13.8 points, respectively,
from the fourth quarter of 2007. The addition of Colgan’s Q400
aircraft fleet contributed significantly to the improvement in
operating income during the fourth quarter. In addition, Colgan’s
revenue per available seat mile within its pro-rate operations
increased by 22% from the same period in the prior year due to
increases in Essential Air Service subsidies, the elimination of
lower unit revenue markets, and a general increase in fares as
compared to the fourth quarter of 2007. A decrease in Colgan’s fuel
cost as compared to the same period in the prior year also
contributed to the increase in operating income. Colgan’s fuel cost
per gallon during the fourth quarter of 2008 was $2.41, down $0.30
from $2.71 during the same period 2007.
Net nonoperating expense for the fourth quarter was approximately
$17.2 million, as compared to net nonoperating income of $0.4 million
during the fourth quarter of 2007. The increase is primarily related
to an increase in interest expense of $8.0 million from the
investments the Company has made in its new fleet of Q400 and CRJ-900
aircraft. In addition, the Company recorded an impairment charge of
$8.1 million on the Company’s investment portfolio of auction rate
securities (“ARS”). The market for ARS continues to be illiquid.
While the Company’s ARS portfolio still contains highly rated
securities with strong underlying collateral support, changes in
interest rates and credit spreads have caused a decline in the
estimated value of the Company’s ARS portfolio. The Company has
recorded this $8.1 million impairment charge to reflect this
estimated decline in value.
Full Year 2008 Financial and Operating Results
During the full year 2008, Pinnacle completed 442,911 block hours and
267,893 departures, increases of 1% and 1%, respectively, over 2007.
Colgan completed 152,890 block hours and 121,635 departures, increases
of 21% and 13%, respectively, over 2007. During 2008, the Company
continued executing its growth plan with the addition of 13 CRJ-900
aircraft and 15 Q400 aircraft, which is the primary reason for
increases in both block hours and departures. Offsetting this
increase in capacity was the return of 13 CRJ-200 aircraft during
2008.
For the year ended December 31, 2008, the Company recorded
consolidated operating revenue of $864.8 million, an increase of $77.4
million, or 10%, over 2007. The increase is primarily related to an
increase in the Company’s capacity purchase revenue as a result of
the Company’s Q400 and CRJ-900 fleet growth, partially offset by the
reduction in CRJ-200 aircraft. The Company’s pro-rate revenue also
increased slightly as a result of an increase in unit revenue
stemming from the changes made under the Company’s pro-rate
operations restructuring efforts.
In 2008, Pinnacle achieved operating income and an operating margin
of $53.5 million and 8.7%, a decrease of $3.9 million and 1.0 point,
respectively, from 2007. Operating income decreased in 2008
primarily from a decrease in productivity for Pinnacle’s pilots and
flight attendants, increased unreimbursed maintenance costs, and
transition costs associated with the introduction of the CRJ-900
fleet. Pinnacle did not receive the fixed revenue associated with
ownership costs for the period of time between when an aircraft
delivered to Pinnacle and when it was placed into service under the
DCA. Pinnacle absorbed the majority of the ownership costs for two
CRJ-900 aircraft during the third and fourth quarters of 2008.
Excluding special charges of $13.5 million related to goodwill
impairment and aircraft lease return costs associated with Colgan’s
pro-rate restructuring plan, Colgan reported operating income and an
operating margin of $5.6 million and 2.2%, an increase of $10.7
million and 4.8 points, respectively, from 2007. Including these
special items, Colgan reported an operating loss of $7.9 million. The
increase in operating income excluding the aforementioned special
charges relates to the addition of Colgan’s Q400 fleet in 2008 and
increases in unit revenue associated with Colgan’s pro-rate
operations, offset primarily by an $11.3 million increase in Colgan’s
fuel costs.
Net nonoperating expense for the year ended December 31, 2008 was
approximately $44.3 million, an increase of $42.9 million, as
compared to nonoperating expense of $1.4 million during 2007. The
increase is primarily related to an increase in interest expense of
$25.8 million from the debt associated with the investments the
Company has made in its new fleet of Q400 and CRJ-900 aircraft. In
addition, the Company recorded total impairment charges during the
year of $16.8 million related to the Company’s ARS portfolio.
Consolidated net income for the year ended December 31, 2008
excluding the special charges related to ARS impairment, goodwill,
and aircraft lease return costs, was $19.9 million, as compared to
net income during the year ended 2007 of $37.3 million. Including
these items, the Company’s consolidated net loss for 2008 was $4.9
million.
Cash and Investments
The Company ended the quarter with cash and cash equivalents totaling
$69.5 million.
The Company generated $14.9 million in cash and cash equivalents from
operating activities during the fourth quarter 2008. This consisted
of $18.8 million of cash generated from airline operations, net of a
$3.8 million payment related to settlement of the last remaining
interest rate hedge associated with the Company’s aircraft interest
hedging program. All of the interest rate hedges that the Company
entered into have now been settled, and the Company does not
anticipate any additional cash outflows associated with this program.
Cash used for investing activities of $5.1 million primarily related
to the net purchase of three CRJ-900 aircraft and other non-aircraft
capital expenditures. Cash used in financing activities was $4.2
million, which included $10.0 million in credit facility proceeds,
partially offset by $6.4 million in debt repayments associated with
the pre-delivery payment financing facilities for three CRJ-900
aircraft and $7.8 million of regularly scheduled principal payments
on long-term debt and other items.
About Pinnacle Airlines Corp.
Pinnacle Airlines Corp., an airline holding company, is the parent
company of Pinnacle Airlines, Inc. and Colgan Air, Inc. Pinnacle
Airlines, Inc. operates under Delta brands and operates 124 CRJ-200
and 16 CRJ-900 regional jet aircraft in the United States, Canada,
the Bahamas, Mexico, and U.S. Virgin Islands. Colgan Air, Inc.
operates as Continental Connection, United Express and US Airways
Express and operates a fleet of 14 Q400 and 34 Saab aircraft.
Non-GAAP Disclosures
This release and certain tables accompanying this release include
certain financial information not prepared in accordance with
generally accepted accounting principles (“GAAP”), the Company’s
operating income, operating margin, net income and diluted earnings
(loss) per share (“EPS”) for the three and twelve months ended
December 31, 2008 and 2007, excluding special charges related to the
impairment of goodwill and aircraft lease return costs and the
impairment of auction rate securities in 2008 and the loss on the
sale of the unsecured claim in 2007. The Company believes that this
information is useful to investors as it indicates more clearly the
Company’s comparative year-to-year results. None of this information
should be considered a substitute for any measures prepared in
accordance with GAAP. The Company has included its reconciliations of
these non-GAAP financial measures to the most comparable GAAP
financial measures in the accompanying schedules.
Forward-Looking Statements
This press release contains various forward-looking statements that
are based on management’s beliefs, as well as assumptions made by and
information currently available to management. Although the Company
believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. Such statements are
subject to certain risks, uncertainties and assumptions, including
those set forth in our filings with the Securities and Exchange
Commission, which are available to investors at our website or online
from the Commission. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
erroneous, actual results may vary materially from results that were
anticipated or projected. The Company does not intend to update these
forward-looking statements before its next required filing with the
Securities and Exchange Commission.
For further information, please contact Joe Williams, at (901)
346-6162, or visit our website at http://www.pncl.com.
Pinnacle Airlines Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Three Months Ended
December 31,
------
2008 2007
-- --
Operating revenues:
Regional airline services $ 215,245 $ 198,483
Other 2,253 2,617
-- --
Total operating revenues 217,498 201,100
Operating expenses:
Salaries, wages and benefits 54,388 50,553
Aircraft rentals 31,120 34,664
Ground handling services 23,647 24,168
Aircraft maintenance, materials and repairs 26,912 25,116
Other rentals and landing fees 19,471 14,615
Aircraft fuel 7,847 11,404
Commissions and passenger related expense 5,589 6,707
Depreciation and amortization 7,952 2,445
Other 24,226 21,976
-- --
Total operating expenses 201,152 191,648
-- --
Operating income 16,346 9,452
Operating income as a percentage of operating
revenues 7.5% 4.7%
Nonoperating (expense) income:
Interest expense (10,746) (2,744)
Impairment of auction rate securities (8,125) -
Interest income 1,544 3,133
Miscellaneous income, net 115 2
-- --
Total nonoperating (expense) income (17,212) 391
-- --
(Loss) income before income taxes (866) 9,843
Income tax expense (2,960) (3,137)
-- --
Net (loss) income $ (3,826) $ 6,706
========= =========
Basic (loss) earnings per share $ (0.21) $ 0.35
========= =========
Diluted (loss) earnings per share $ (0.21) $ 0.32
========= =========
Shares used in computing basic (loss) earnings
per share 17,867 19,411
========= =========
Shares used in computing diluted (loss) earnings
per share 17,867 20,894
========= =========
Pinnacle Airlines Corp.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Years Ended December 31,
---
2008 2007
---- ----
(Unaudited)
Operating revenues:
Regional airline services $ 855,659 $ 777,179
Other 9,126 10,195
---- ----
Total operating revenues 864,785 787,374
Operating expenses:
Salaries, wages and benefits 219,971 195,767
Aircraft rentals 128,559 138,661
Ground handling services 96,359 96,306
Aircraft maintenance, materials and repairs 92,909 89,661
Other rentals and landing fees 71,857 58,956
Aircraft fuel 49,450 38,122
Commissions and passenger related expense 27,025 25,740
Depreciation and amortization 26,518 9,265
Other 92,982 83,533
Provision for decreases in losses associated
with bankruptcy filings of Northwest and
Mesaba - (1,048)
Impairment of goodwill and aircraft lease
return costs 13,548 -
---- ----
Total operating expenses 819,178 734,963
---- ----
Operating income 45,607 52,411
Operating income as a percentage of operating
revenues 5.3% 6.7%
Nonoperating (expense) income:
Interest expense (34,661) (8,853)
Impairment of auction rate securities (16,800) -
Interest income 6,870 11,601
Loss on sale of unsecured claim - (4,144)
Miscellaneous income, net 281 22
---- ----
Total nonoperating expense (44,310) (1,374)
---- ----
Income before income taxes 1,297 51,037
Income tax expense (6,204) (16,400)
---- ----
Net (loss) income $ (4,907) $ 34,637
=========== ===========
Basic (loss) earnings per share $ (0.27) $ 1.66
=========== ===========
Diluted (loss) earnings per share $ (0.27) $ 1.50
=========== ===========
Shares used in computing basic (loss)
earnings per share 17,865 20,897
=========== ===========
Shares used in computing diluted (loss)
earnings per share 17,865 23,116
=========== ===========
Pinnacle Airlines Corp.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
December 31, December 31,
2008 2007
---- ----
(unaudited)
Assets
Current assets
Cash and cash equivalents $ 69,469 $ 26,785
Restricted cash 5,417 5,327
Short-term investments - 186,850
Receivables, net of allowances of $135
in 2008 and $131 in 2007 31,619 31,107
Spare parts and supplies, net of allowances
of $4,213 in 2008 and $2,536 in 2007 17,106 16,030
Prepaid expenses and other assets 8,160 16,535
Deferred income taxes 14,338 12,285
Income taxes receivable 31,117 -
---- ----
Total current assets 177,226 294,919
Property and equipment
Flight equipment 723,529 162,374
Aircraft pre-delivery payments 5,721 81,425
Other property and equipment 45,769 39,969
---- ----
775,019 283,768
Less accumulated depreciation (54,262) (28,358)
---- ----
Net property and equipment 720,757 255,410
Investments in auction rate securities 116,900 -
Deferred income taxes 45,004 79,856
Other assets, primarily aircraft lease deposits 33,723 28,528
Debt issuance costs, net of amortization of
$1,117 in 2008 and $636 in 2007 6,505 4,598
Goodwill 18,422 28,206
Intangible assets, net of amortization of
$5,180 in 2008 and $3,594 in 2007 14,585 17,071
---- ----
Total assets $ 1,133,122 $ 708,588
=========== ===========
Liabilities and stockholders' equity
Current liabilities
Short-term notes payable and current
maturities of long-term debt $ 44,116 $ 9,910
Bank line of credit 8,275 8,375
Pre-delivery payment facilities 4,075 63,603
Accounts payable 29,962 33,062
Deferred revenue 23,851 24,099
Income taxes payable - 2,356
Accrued expenses and other current
liabilities 75,136 102,054
---- ----
Total current liabilities 185,415 243,459
Senior convertible notes, less $12.0 million
of current portion 109,000 121,000
Long-term debt, less current maturities 502,741 71,812
Credit facility 90,000 -
Deferred revenue, net of current portion 192,191 209,752
Capital leases, net of current portion 2,601 3,668
Other liabilities 2,581 1,075
Commitments and contingencies
Stockholders' equity
Series A preferred share, stated value
$100 per share; one share authorized and
issued, retired on January 4, 2008 - -
Common stock, $0.01 par value; 40,000,000
shares authorized; 22,514,782 and 22,402,999
shares issued, respectively 225 224
Treasury stock, at cost, 4,450,092 shares (68,152) (68,152)
Additional paid-in capital 93,814 91,165
Accumulated other comprehensive income (17,172) (10,200)
Retained earnings 39,878 44,785
---- ----
Total stockholders' equity 48,593 57,822
---- ----
Total liabilities and stockholders' equity $ 1,133,122 $ 708,588
=========== ===========
Pinnacle Airlines Corp.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Years Ended December 31,
---
2008 2007
---- ----
Cash provided by operating activities $ 28,605 $ 275,480
Cash provided by (used in) investing activities 20,605 (220,133)
Cash used in financing activities (6,526) (29,267)
---- ----
Net increase in cash and cash equivalents 42,684 26,080
Cash and cash equivalents at beginning of period 26,785 705
---- ----
Cash and cash equivalents at end of period $ 69,469 $ 26,785
=========== ===========
Pinnacle Airlines Corp.
Operating Statistics (Unaudited)
Pinnacle Airlines, Inc.
---
Three Months Ended December 31,
---
2008 2007 Change
---- ---- ---
Other Data:
Revenue passengers (in thousands) 2,623 2,519 4%
Revenue passenger miles
(in thousands) 1,221,750 1,149,586 6%
Available seat miles "ASMs"
(in thousands) 1,605,215 1,476,501 9%
Passenger load factor 76.1% 77.9% (1.8) pts.
Operating revenue per ASM
(in cents) 9.65 10.27 (6)%
Operating cost per ASM (in cents) 8.79 9.30 (5)%
Operating revenue per block hour $ 1,393 $ 1,382 1%
Operating cost per block hour $ 1,269 $ 1,251 1%
Block hours 111,167 109,787 1%
Departures 67,325 65,820 2%
Average daily utilization
(block hours) 8.67 8.53 2%
Average stage length (miles) 456 453 1%
Number of operating aircraft
(end of period)
CRJ-200 124 137 (9)%
CRJ-900 18(1) 1 1700%
Employees (end of period) 4,204 4,008 5%
(1) On October 1, 2008, we entered into an agreement with Delta to
operate on a short-term basis seven additional CRJ-900 aircraft.
Pinnacle Airlines, Inc.
---
Years Ended December 31,
---
2008 2007 Change
---- ---- ---
Other Data:
Revenue passengers (in thousands) 10,393 9,996 4%
Revenue passenger miles
(in thousands) 4,844,526 4,620,861 5%
Available seat miles "ASMs"
(in thousands) 6,320,269 6,004,680 5%
Passenger load factor 76.7% 77.0% (0.3) pts.
Operating revenue per ASM
(in cents) 9.70 9.91 (2)%
Operating cost per ASM (in cents) 8.86 8.96 (1)%
Operating revenue per block hour $ 1,384 $ 1,356 2%
Operating cost per block hour $ 1,264 $ 1,225 3%
Block hours 442,911 438,988 1%
Departures 267,893 265,418 1%
Average daily utilization
(block hours) 8.78 8.73 1%
Average stage length (miles) 460 455 1%
Pinnacle Airlines Corp.
Operating Statistics (Unaudited)
Colgan Air, Inc.
---
Three Months Ended December 31,
---
2008 2007 Change
---- ---- ---
Pro Rate Agreements:
Revenue passengers (in thousands) 298 386 (23)%
Revenue passenger miles
(in thousands) 51,564 71,281 (28)%
ASMs (in thousands) 111,223 155,619 (29)%
Passenger load factor 46.4% 45.8% 0.6 pts.
Passenger yield (in cents) 83.46 69.21 21%
Operating revenue per ASM
(in cents) 38.69 31.70 22%
Operating revenue per block hour $ 1,875 $ 1,530 23%
Block hours 22,955 32,242 (29)%
Departures 20,172 27,189 (26)%
Fuel consumption
(in thousands of gallons) 3,167 4,214 (25)%
Average price per gallon $ 2.41 $ 2.71 (11)%
Average fare $ 145 $ 128 13%
Capacity Purchase Agreement:
Revenue passengers (in thousands) 383 - N/A
Revenue passenger miles
(in thousands) 112,025 - N/A
ASMs (in thousands) 176,990 - N/A
Passenger load factor 63.3% - N/A
Operating revenue per ASM
(in cents) 11.05 - N/A
Operating revenue per block hour $ 1,470 - N/A
Block hours 13,307 - N/A
Departures 8,389 - N/A
Total Colgan:
Block hours 36,262 32,242 12%
Departures 28,561 27,189 5%
ASMs (in thousands) 288,214 155,619 85%
Total operating cost per ASM
(in cents) 20.88 34.87 (40)%
Total operating cost per block
hour $ 1,659 $ 1,683 (1)%
Average daily utilization
(block hours) 7.13 7.20 (1)%
Average stage length (miles) 228 178 28%
Number of operating aircraft
(end of period)
Saab 340 34 40 (15)%
Beech 1900 2 7 (71)%
Q400 15 - 100%
Employees 1,324 1,202 10%
Colgan Air, Inc.
---
Years ended December 31,
---
2008 2007 Change
---- ---- ---
Pro Rate Agreements:
Revenue passengers (in thousands) 1,380 1,498 (8)%
Revenue passenger miles
(in thousands) 249,520 277,326 (10)%
ASMs (in thousands) 558,389 599,402 (7)%
Passenger load factor 44.7% 46.3% (1.6) pts.
Passenger yield (in cents) 78.94 69.27 14%
Operating revenue per ASM
(in cents) 35.28 32.05 10%
Operating revenue per block hour $ 1,716 $ 1,517 13%
Block hours 114,816 126,675 (9)%
Departures 97,174 107,171 (9)%
Fuel consumption
(in thousands of gallons) 14,761 16,797 (12)%
Average price per gallon $ 3.33 $ 2.36 41%
Average fare $ 143 $ 128 12%
Capacity Purchase Agreement:
Revenue passengers (in thousands) 1,153 - N/A
Revenue passenger miles
(in thousands) 326,627 - N/A
ASMs (in thousands) 501,832 - N/A
Passenger load factor 65.1% - N/A
Operating revenue per ASM
(in cents) 10.86 - N/A
Operating revenue per block hour $ 1,432 - N/A
Block hours 38,074 - N/A
Departures 24,461 - N/A
Total Colgan:
Block hours 152,890 126,675 21%
Departures 121,635 107,171 13%
ASMs (in thousands) 1,060,221 599,402 77%
Total operating cost per ASM
(in cents) 24.49 32.94 (26)%
Total operating cost per block
hour $ 1,698 $ 1,559 9%
Average daily utilization
(block hours) 7.51 7.32 3%
Average stage length (miles) 228 170 34%
Pinnacle Airlines Corp.
Reconciliation of Non-GAAP Disclosures (Unaudited)
(in thousands, except per share data)
Three Months Ended December 31,
-
% Increase
2008 2007 (Decrease)
---- ----- ---
Net (loss) income:
Net (loss) income in accordance
with GAAP $ (3,826) $ 6,706 (157)%
Add: Impairment of auction rate
securities, net of tax 7,782 - 100%
---- ----- ---
Non-GAAP net income $ 3,956 $ 6,706 (41)%
=========== ============ ==========
Diluted (loss) earnings per share:
Diluted (loss) earnings per share
in accordance with GAAP $ (0.21) $ 0.32 (166)%
Add: Impairment of auction rate
securities, net of tax 0.43 - 100%
---- ----- ---
Non-GAAP diluted earnings
per share $ 0.22 $ 0.32 (31)%
=========== ============ ==========
Years Ended December 31,
--
% Increase
2008 2007 (Decrease)
---- ----- ---
Colgan operating income (loss):
Colgan operating loss in
accordance with GAAP $ (7,913) $ (5,053) 57%
Add: Impairment of goodwill and
aircraft lease return costs 13,548 - 100%
--- --- ---
Colgan non-GAAP operating income
(loss) $ 5,635 $ (5,053) (212)%
========== ========== ==========
Colgan operating margin:
Colgan operating margin in
accordance with GAAP (3.1)% (2.6)% 0.5 pts.
Add: Impairment of goodwill and
aircraft lease return costs 5.3% - 5.3 pts.
--- --- ---
Colgan non-GAAP operating margin 2.2% (2.6)% 4.8 pts.
========== ========== ==========
Consolidated operating income:
Operating income in accordance
with GAAP $ 45,607 $ 52,411 (13)%
Add: Impairment of goodwill and
aircraft lease return costs 13,548 - 100%
--- --- ---
Non-GAAP operating income $ 59,155 $ 52,411 13%
========== ========== ==========
Consolidated operating margin:
Operating margin in accordance
with GAAP 5.3% 6.7% (1.4) pts.
Add: Impairment of goodwill and
aircraft lease return costs 1.5% - 1.5 pts.
--- --- ---
Non-GAAP operating margin 6.8% 6.7% 0.1 pts.
========== ========== ==========
Net income:
Net (loss) income in accordance
with GAAP $ (4,907) $ 34,637 (114)%
Add: Impairment of goodwill and
aircraft lease return costs,
net of tax 8,688 - 100%
Add: Impairment of auction rate
securities, net of tax 16,091 - 100%
Add: Loss on sale of unsecured
claim, net of tax - 2,635 (100)%
--- --- ---
Non-GAAP net income $ 19,872 $ 37,272 (47)%
========== ========== ==========
Diluted EPS:
Diluted (loss) earnings per share
in accordance with GAAP $ (0.27) $ 1.50 (118)%
Add: Impairment of goodwill and
aircraft lease return costs,
net of tax 0.48 - 100%
Add: Impairment of auction rate
securities, net of tax 0.90 - 100%
Add: Loss on sale of unsecured
claim, net of tax - 0.11 (100)%
--- --- ---
Non-GAAP diluted earnings
per share $ 1.11 $ 1.61 (31)%
========== ========== ==========
Contact:
Joe Williams
901-346-6162