MEMPHIS, TN -- (Marketwire) -- 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 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)%
========== ========== ==========
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