Company Reports Consolidated Net Income Excluding Nonrecurring Items of $7.3 Million
MEMPHIS, TN -- (Marketwire) -- 08/07/09 -- Pinnacle Airlines Corp. (NASDAQ: PNCL) (the
"Company") today reported second quarter 2009 net income of $6.0 million
and fully diluted earnings per share ("EPS") of $0.33. Excluding certain
nonrecurring items more fully described below, the Company achieved net
income and EPS of $7.3 million and $0.41, respectively, in the second
quarter of 2009. This represents increases of 107% and 105%, respectively,
over net income of $3.5 million and EPS of $0.20 in the second quarter of
2008, excluding nonrecurring items. Excluding nonrecurring items, the
Company reported consolidated operating income of $23.7 million in the
second quarter of 2009, an increase of 57% over consolidated operating
income of $15.1 million in the second quarter of 2008, excluding
nonrecurring items.
"Despite a challenging year for our industry, I am pleased to report solid
financial performance for the second quarter of 2009 at both of our
operating subsidiaries," said Phil Trenary, the Company's President and
Chief Executive Officer. "Our investments in new aircraft and improvements
to our pro-rate operations are beginning to produce positive results for
all of our stakeholders."
During the second quarter, the Company recorded a nonrecurring charge of
$1.5 million ($1.0 million net of income taxes, or $0.06 per share) related
to the retirement of its Beech 1900 fleet. In addition, the Company
recorded a net loss of $0.3 million ($0.3 million net of income taxes, or
$0.02 per share) related to its portfolio of auction rate securities. The
Company's net income and EPS for the second quarter of 2008 reported above
also excludes certain nonrecurring items, which are listed in the attached
table "Reconciliation of Non-GAAP Disclosures."
For the six months ended June 30, 2009, the Company reported net income of
$24.8 million and EPS of $1.38. In addition to the nonrecurring items
described above, the Company's year-to-date financial results include a
number of previously announced nonrecurring items that increased net income
by $14.4 million. These nonrecurring items are listed in the attached
table "Reconciliation of Non-GAAP Disclosures." Excluding these
nonrecurring items, the Company achieved net income of $10.4 million for
the first six months of 2009, an increase of 118% over net income of $4.8
million in the first half of 2008, excluding nonrecurring items.
Year-to-date 2009 EPS excluding these nonrecurring items was $0.58, an
increase of 115% over EPS of $0.27 for the first half of 2008, excluding
nonrecurring items.
Recent Significant Financial Events
On July 30, the Company completed a $25 million, three-year term loan
financing with C.I.T. Leasing secured by its pool of spare rotable and
expendable aircraft parts. The interest rate for this financing is a
variable rate indexed to LIBOR and was 8.5% at the inception of the loan.
This financing will enhance the Company's ability to repay its $109 million
3.25% senior convertible notes (the "Notes") in the event that holders of
the Notes tender them to the Company in February 2010.
"This financing is evidence of the CIT Group's confidence in Pinnacle
Airlines Corp.," said Peter Hunt, the Company's Chief Financial Officer.
"Completion of this loan is an important step in meeting our financial
commitments in early 2010."
On August 4, Pinnacle Airlines, Inc. ("Pinnacle"), the Company's regional
jet operating subsidiary, and the Air Line Pilots Association ("ALPA")
reached a tentative agreement to amend the collective bargaining agreement.
Pinnacle had been involved in active negotiations with ALPA since April
2005, when the collective bargaining agreement between the two parties
became amendable. The terms of the tentative agreement must be ratified by
Pinnacle's pilots before it becomes final.
"Successfully completing a new Pilot agreement has been a very important
goal for Pinnacle," said Phil Trenary. "I am proud of the way ALPA and
our team worked together to reach this new tentative agreement for our
Pilots."
Second Quarter 2009 Financial and Operating Results
During the second quarter of 2009, Pinnacle completed 106,475 block hours
and 68,826 departures, a decrease and increase of (5)% and 1%,
respectively, over the same period in 2008. Capacity increases associated
with Pinnacle's new CRJ-900 aircraft fleet operating under the Delta
Connection Agreement ("DCA") were partially offset by a decrease of two
CRJ-200 aircraft that were removed from Pinnacle's fleet since June 30,
2008. In addition, Pinnacle has experienced a 7% decrease in aircraft
utilization of its CRJ-200 fleet, primarily from route network changes
resulting in shorter average flights and an overall decrease in its
scheduled flying from Delta. Colgan Air, Inc. ("Colgan"), the Company's
regional turboprop operating subsidiary, completed 34,233 block hours and
27,684 departures during the second quarter, decreases of 15% and 13%,
respectively, over the same period in 2008. The decrease in operations is
primarily related to the retirement of 11 Saab and Beech aircraft in
conjunction with eliminating certain markets operated under the Company's
pro-rate agreements. These decreases are partially offset by an increase in
Q400 aircraft operations under the Company's Continental CPA.
The Company recorded consolidated operating revenue during the second
quarter of 2009 of $211.3 million, a decrease of $9.9 million, or 4%, over
the same period in 2008. The decrease is primarily related to the reduction
in our pro-rate operations and the decrease in Pinnacle's CRJ-200 capacity
noted above. These decreases are offset by an increase of $8.6 million and
$6.1 million in revenue earned under our CRJ-900 DCA and Continental CPA.
Consolidated operating income excluding nonrecurring items was $23.7
million for the second quarter of 2009. Consolidated operating income for
the second quarter of 2008 was approximately $15.1 million, excluding
nonrecurring items. Pinnacle reported second quarter 2009 operating income
and an operating margin of $17.0 million and 11.0%, an increase of $1.6
million and 1.1 points, respectively, from the second quarter of 2008.
This increase is primarily related to a reduction of certain airport and
ground handling expenses totaling $1.3 million resulting from a reversal of
accrued amounts that Pinnacle no longer expects to pay. This one-time
reduction of operating expenses increased net income by $0.8 million and
EPS by $0.05. Additionally, increases in Pinnacle's operating income
related to its new CRJ-900 operations were offset by unit cost increases
related to salaries, wages and benefits and maintenance. Pinnacle
continues to experience increased maintenance costs related to its CRJ-200
fleet, and a decrease in labor productivity associated with reduced
attrition of pilots and flight attendants.
Excluding nonrecurring items, Colgan reported operating income and an
operating margin of $6.7 million and 11.8%, an increase of $7.0 million and
12.3 points, respectively, from the second quarter of 2008, excluding
nonrecurring items. The addition of Colgan's Q400 operations under its
capacity purchase agreement with Continental Airlines contributed to the
improvement in operating income during 2009. In addition, Colgan's fuel
costs within its pro-rate operations decreased dramatically year-over-year.
Colgan's fuel cost per gallon during the second quarter of 2009 was $1.90,
down 50% as compared to 2008, improving operating income by approximately
$5.2 million. Colgan also benefited from changes to its pro-rate
operations implemented by the Company during 2008. These changes included
the elimination of certain unprofitable markets, the retirement of six Saab
and five Beech aircraft, and the restructuring of many of its Essential Air
Service markets for more profitable operations. These improvements were
offset by a three percent decrease in revenue per available seat mile.
Net nonoperating expense was $12.5 million for the three months ended June
30, 2009, including the $0.3 million net investment loss on our ARS noted
above. Net nonoperating expense for the same period in 2008 was $18.0
million, inclusive of an $8.7 million impairment charge related to our ARS
portfolio. Interest expense for the second quarter was $12.9 million, an
increase of $1.7 million from the second quarter of 2009. The increase is
primarily attributable to an increase in interest expense associated with
the Company's owned fleet of CRJ-900 and Q400 aircraft that were acquired
throughout 2008. Interest expense includes $2.5 million of additional
expense for both the second quarter of 2009 and 2008 related to the
Company's previously disclosed adoption of a new accounting standard, which
resulted in a change in the Company's accounting for the Notes. Prior year
amounts have been restated to reflect the new accounting standard. The
effect of this change was a non-cash reduction to EPS of $0.09 and $0.08
for the second quarter of 2009 and 2008, respectively.
Cash and Cash Equivalents
The Company ended the quarter with unrestricted cash and cash equivalents
totaling $94.2 million. The Company received its 2008 federal income tax
refund of approximately $33 million on April 1, 2009, contributing
significantly to the increase in cash during the quarter ended June 30,
2009.
The Company generated $56.3 million in cash and cash equivalents from
operating activities during the second quarter 2009. This is primarily
related to the federal income tax refund received of approximately $33
million, and operating cash flow from the Company's core airline operations
of approximately $23.3 million. Net cash used by investing activities for
the three months ended June 30, 2009 was $1.3 million. This was primarily
attributable to $4.3 million of capital expenditures, offset by proceeds
from redemptions of auction rate securities of $3.0 million. Net cash used
in financing activities for the three months ended June 30, 2009 totaled
$18.5 million, comprised of $9.3 million of scheduled principal payments on
long-term debt obligations and $9.2 million of payments on two credit
facilities.
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 throughout the United States and in the District of
Columbia, Belize, Mexico, Turks and Caicos Islands, and the 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 throughout the United States and Canada. For further information
about the Company, please refer to the Company's Form 10-Q for the three
months ended June 30, 2009, which will be filed with the SEC shortly.
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"), Colgan's operating income, Colgan's
operating margin, the Company's operating income, pre-tax income, net
income and diluted EPS for the three and six months ended June 30, 2009 and
2008, excluding nonrecurring items related to aircraft retirement charges,
net investment losses, the excess of property insurance proceeds over cost
basis of aircraft, ineffective portion of cash flow hedge, reversal of
income tax reserves and related accrued interest, and the gain on debt
extinguishment. 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.
Pinnacle Airlines Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Three Months Ended
June 30,
------------------------
2009 2008
----------- -----------
(Restated)
Operating revenues
Regional airline services $ 209,212 $ 219,013
Other 2,051 2,141
----------- -----------
Total operating revenues 211,263 221,154
Operating expenses
Salaries, wages and benefits 55,757 55,761
Aircraft rentals 30,094 32,507
Ground handling services 22,196 23,672
Aircraft maintenance, materials and repairs 24,800 23,775
Other rentals and landing fees 17,925 17,310
Aircraft fuel 5,254 14,899
Commissions and passenger related expense 5,227 7,430
Depreciation and amortization 8,782 6,609
Other 17,512 24,106
Impairment and aircraft retirement charges 1,533 12,619
----------- -----------
Total operating expenses 189,080 218,688
----------- -----------
Operating income 22,183 2,466
Operating income as a percentage of operating
revenues 10.5% 1.1%
Nonoperating (expense) income
Interest income 759 1,724
Interest expense (12,930) (11,241)
Net investment loss (334) (8,675)
Miscellaneous (expense) income, net (12) 148
----------- -----------
Total nonoperating expense (12,517) (18,044)
----------- -----------
Income (loss) before income taxes 9,666 (15,578)
Income tax (expense) benefit (3,673) 2,664
----------- -----------
Net income (loss) $ 5,993 $ (12,914)
=========== ===========
Basic and diluted earnings (loss) per share $ 0.33 $ (0.72)
=========== ===========
Shares used in computing basic earnings (loss)
per share 17,970 17,869
=========== ===========
Shares used in computing diluted earnings (loss)
per share 17,979 17,869
=========== ===========
Pinnacle Airlines Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Six Months Ended
June 30,
------------------------
2009 2008
----------- -----------
(Restated)
Operating revenues
Regional airline services $ 415,136 $ 420,172
Other 3,949 5,323
----------- -----------
Total operating revenues 419,085 425,495
Operating expenses
Salaries, wages and benefits 112,597 109,204
Aircraft rentals 60,586 66,028
Ground handling services 48,658 51,061
Aircraft maintenance, materials and repairs 49,489 45,649
Other rentals and landing fees 36,328 32,754
Aircraft fuel 9,771 26,772
Commissions and passenger related expense 10,054 14,255
Depreciation and amortization 17,363 10,980
Other 33,141 46,922
Impairment and aircraft retirement charges 1,980 12,619
----------- -----------
Total operating expenses 379,967 416,244
----------- -----------
Operating income 39,118 9,251
Operating income as a percentage of operating
revenues 9.3% 2.2%
Nonoperating (expense) income
Interest income 1,665 4,038
Interest expense (22,723) (18,437)
Net investment loss (289) (8,675)
Miscellaneous income (expense), net 344 (26)
----------- -----------
Total nonoperating expense (21,003) (23,100)
----------- -----------
Income (loss) before income taxes 18,115 (13,849)
Income tax benefit 6,721 2,171
----------- -----------
Net income (loss) $ 24,836 $ (11,678)
=========== ===========
Basic and diluted earnings (loss) per share $ 1.38 $ (0.65)
=========== ===========
Shares used in computing basic earnings (loss)
per share 17,968 17,864
=========== ===========
Shares used in computing diluted earnings (loss)
per share 17,974 17,864
=========== ===========
Pinnacle Airlines Corp.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
June 30, December 31,
2009 2008
------------ ------------
Assets (Unaudited) (Restated)
Current assets
Cash and cash equivalents $ 94,209 $ 69,469
Restricted cash 4,758 5,417
Receivables, net 30,420 31,619
Spare parts and supplies, net 17,827 17,106
Prepaid expenses and other assets 6,136 8,160
Assets held for sale 1,020 2,786
Deferred income taxes, net of allowance 10,495 13,908
Income taxes receivable 33,708 31,117
------------ ------------
Total current assets 198,573 179,582
Property and equipment
Flight equipment 754,831 721,499
Aircraft pre-delivery payments 10,022 5,721
Other property and equipment 46,480 46,218
Less accumulated depreciation (69,381) (53,507)
------------ ------------
Net property and equipment 741,952 719,931
Investments 116,433 116,900
Deferred income taxes, net of allowance 588 40,847
Other assets 329,141 33,724
Debt issuance costs, net 3,409 3,711
Goodwill 18,422 18,422
Intangible assets, net 13,751 14,585
------------ ------------
Total assets $ 1,422,269 $ 1,127,702
============ ============
Liabilities and stockholders' equity
Current liabilities
Current maturities of long-term debt $ 33,878 $ 32,116
Bank line of credit - 8,275
Credit facility 85,767 -
Senior convertible notes 102,504 10,754
Pre-delivery payment facility - 4,075
Accounts payable 25,579 30,431
Deferred revenue 24,363 23,851
Accrued expenses and other current
liabilities 54,513 74,669
------------ ------------
Total current liabilities 326,604 184,171
Senior convertible notes - 97,683
Noncurrent pre-delivery payment facility 4,910 -
Long-term debt, less current maturities 513,741 502,741
Credit facility - 90,000
Deferred revenue, net of current portion 185,349 192,191
Other liabilities 303,597 5,182
Commitments and contingencies
Stockholders' equity
Common stock, $0.01 par value;
40,000,000 shares authorized;
22,792,426 and 22,514,782 shares issued,
respectively 228 225
Treasury stock, at cost, 4,450,092 shares (68,152) (68,152)
Additional paid-in capital 120,803 119,610
Accumulated other comprehensive loss (10,870) (17,172)
Retained earnings 46,059 21,223
------------ ------------
Total stockholders' equity 88,068 55,734
------------ ------------
Total liabilities and stockholders' equity $ 1,422,269 $ 1,127,702
============ ============
Pinnacle Airlines Corp.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Six Months Ended
June 30,
------------------------
2009 2008
----------- -----------
Cash provided by (used in) operating activities $ 62,752 $ (959)
Cash provided by investing activities 3,728 31,387
Cash (used in) provided by financing activities (41,740) 8,015
----------- -----------
Net increase in cash and cash equivalents 24,740 38,443
Cash and cash equivalents at beginning of period 69,469 26,785
----------- -----------
Cash and cash equivalents at end of period $ 94,209 $ 65,228
=========== ===========
Pinnacle Airlines Corp.
Pinnacle Operating Statistics (Unaudited)
Three Months Ended June 30,
-------------------------------------
2009 2008 Change
----------- ----------- -----------
Other Data:
Revenue passengers (in thousands) 2,778 2,726 2%
Revenue passenger miles ("RPMs")
(in thousands) 1,211,030 1,287,429 (6)%
Available seat miles ("ASMs") (in
thousands) 1,548,790 1,622,264 (5)%
Passenger load factor 78.2% 79.4% (1.2) pts.
Operating revenue per ASM (in cents) 9.98 9.60 4%
Operating cost per ASM (in cents) 8.88 8.65 3%
Operating revenue per block hour $ 1,452 $ 1,390 4%
Operating cost per block hour $ 1,292 $ 1,252 3%
Block hours 106,475 112,051 (5)%
Departures 68,826 67,810 1%
Average daily utilization (block
hours) 8.29 8.97 (8)%
Average stage length (miles) 427 468 (9)%
Number of operating aircraft (end of
period)
CRJ-200 124 126 (2)%
CRJ-900 16 9 78%
Employees (end of period) 4,060 4,144 (2)%
Six Months Ended June 30,
-------------------------------------
2009 2008 Change
----------- ----------- -----------
Other Data:
Revenue passengers (in thousands) 5,163 5,151 0%
Revenue passenger miles ("RPMs")
(in thousands) 2,301,384 2,386,709 (4)%
Available seat miles ("ASMs") (in
thousands) 3,129,301 3,116,125 0%
Passenger load factor 73.5% 76.6% (3.1) pts.
Operating revenue per ASM (in cents) 9.90 9.95 (1)%
Operating cost per ASM (in cents) 8.92 9.06 (2)%
Operating revenue per block hour $ 1,437 $ 1,384 4%
Operating cost per block hour $ 1,294 $ 1,260 3%
Block hours 215,715 224,112 (4)%
Departures 135,456 133,789 1%
Average daily utilization (block
hours) 8.38 8.95 (6)%
Average stage length (miles) 439 461 (5)%
Pinnacle Airlines Corp.
Colgan Operating Statistics (Unaudited)
Three Months Ended June 30,
-------------------------------------
2009 2008 Change
----------- ----------- -----------
Pro-rate Agreements:
Revenue passengers (in thousands) 305 377 (19)%
RPMs (in thousands) 53,010 68,681 (23)%
ASMs (in thousands) 114,768 153,540 (25)%
Passenger load factor 46.2% 44.7% 1.5 pts.
Passenger yield (in cents) 73.02 77.99 (6)%
Operating revenue per ASM (in cents) 33.73 34.89 (3)%
Operating revenue per block hour $ 1,720 $ 1,692 2%
Block hours 22,507 31,653 (29)%
Departures 20,018 26,292 (24)%
Fuel consumption (in thousands of
gallons) 2,772 3,931 (29)%
Average price per gallon $ 1.90 $ 3.79 (50)%
Average fare $ 127 $ 142 (11)%
Capacity Purchase Agreement:
Revenue passengers (in thousands) 405 286 42%
RPMs (in thousands) 113,096 80,278 41%
ASMs (in thousands) 157,299 115,053 37%
Passenger load factor 71.9% 69.8% 2.1 pts.
Operating revenue per ASM (in cents) 11.41 10.28 11%
Operating revenue per block hour $ 1,531 $ 1,338 14%
Block hours 11,726 8,838 33%
Departures 7,666 5,692 35%
Total Colgan:
Block hours 34,233 40,491 (15)%
Departures 27,684 31,984 (13)%
ASMs (in thousands) 272,067 268,593 1%
Total operating cost per ASM
(in cents) 18.94 29.18 (35)%
Total operating cost per block hour $ 1,505 $ 1,936 (22)%
Average daily utilization
(block hours) 7.84 7.76 1%
Average stage length (miles) 221 213 4%
Number of operating aircraft
(end of period)
Saab 340 34 40 (15)%
Beech 1900 - 5 (100)%
Q400 14 13 8%
Employees 1,334 1,427 (7)%
Six Months Ended June 30,
-------------------------------------
2009 2008 Change
----------- ----------- -----------
Pro-rate Agreements:
Revenue passengers (in thousands) 553 726 (24)%
RPMs (in thousands) 95,614 132,785 (28)%
ASMs (in thousands) 225,791 300,169 (25)%
Passenger load factor 42.3% 44.2% (1.9) pts.
Passenger yield (in cents) 76.03 75.55 1%
Operating revenue per ASM (in cents) 32.20 33.42 (4)%
Operating revenue per block hour $ 1,627 $ 1,614 1%
Block hours 44,683 62,140 (28)%
Departures 39,638 51,348 (23)%
Fuel consumption (in thousands of
gallons) 5,404 7,617 (29)%
Average price per gallon $ 1.81 $ 3.51 (48)%
Average fare $ 131 $ 138 (5)%
Capacity Purchase Agreement:
Revenue passengers (in thousands) 734 376 95%
RPMs (in thousands) 202,801 104,895 93%
ASMs (in thousands) 306,763 149,019 106%
Passenger load factor 66.1% 70.4% (4.3) pts.
Operating revenue per ASM (in cents) 11.85 10.05 18%
Operating revenue per block hour $ 1,550 $ 1,304 19%
Block hours 23,461 11,485 104%
Departures 15,134 7,406 104%
Total Colgan:
Block hours 68,144 73,625 (7)%
Departures 54,772 58,754 (7)%
ASMs (in thousands) 532,554 449,188 19%
Total operating cost per ASM
(in cents) 18.95 29.78 (36)%
Total operating cost per block hour $ 1,481 $ 1,818 (19)%
Average daily utilization
(block hours) 7.72 7.52 3%
Average stage length (miles) 219 206 6%
Pinnacle Airlines Corp.
Reconciliation of Non-GAAP Disclosures (Unaudited)
(in thousands, except per share data)
Three Months Ended June 30,
--------------------------------------------------
2009 2008 $ change % change
--------- --------- --------- ----------
GAAP Colgan operating
income (loss) $ 5,188 $ (12,939) $ 18,127 (140)%
Impairment and
aircraft
retirement charges 1,533 12,619 (11,086) (88)%
--------- --------- --------- ---------
Non GAAP Colgan
operating income
(loss) $ 6,721 $ (320) $ 7,041 (2,200)%
========= ========= ========= =========
GAAP Colgan operating
margin 9.1% (19.8)% 28.9 pts.
Impairment and aircraft
retirement charges 2.7% 19.3 % (16.6) pts.
--------- --------- ---------
Non GAAP Colgan
operating margin 11.8% (0.5)% 12.3 pts.
========= ========= =========
GAAP operating income $ 22,183 $ 2,466 $ 19,717 800%
Impairment and
aircraft
retirement charges 1,533 12,619 (11,086) (88)%
--------- --------- --------- ---------
Non GAAP operating
income $ 23,716 $ 15,085 $ 8,631 57%
========= ========= ========= =========
GAAP operating margin 10.5% 1.1 % 9.4 pts.
Impairment and aircraft
retirement charges 0.7% 5.7 % (5.0) pts.
--------- --------- ---------
Non GAAP operating
margin 11.2% 6.8 % 4.4 pts.
========= ========= =========
GAAP pre tax income
(loss) $ 9,666 $ (15,578) $ 25,244 (162)%
Impairment and
aircraft
retirement charges 1,533 12,619 (11,086) (88)%
Net investment loss 334 8,675 (8,341) (96)%
--------- --------- --------- ---------
Non GAAP pre tax
income $ 11,533 $ 5,716 $ 5,817 102%
========= ========= ========= =========
GAAP net income (loss) $ 5,993 $ (12,914) $ 18,907 (146)%
Impairment and aircraft
retirement charges,
net of tax 992 8,139 (7,147) (88)%
Net investment loss,
net of tax 320 8,309 (7,989) (96)%
--------- --------- --------- ---------
Non GAAP net income $ 7,305 $ 3,534 $ 3,771 107%
========= ========= ========= =========
GAAP EPS $ 0.33 $ (0.72) $ 1.05 (146)%
Impairment and
aircraft
retirement charges,
net of tax 0.06 0.46 (0.40) (87)%
Net investment loss,
net of tax 0.02 0.46 (0.44) (96)%
--------- --------- --------- ---------
Non GAAP EPS $ 0.41 $ 0.20 $ 0.21 105%
========= ========= ========= =========
Pinnacle Airlines Corp.
Reconciliation of Non-GAAP Disclosures (Unaudited)
(in thousands, except per share data)
Six Months Ended June 30,
-----------------------------------------------
2009 2008 $ change % change
-------- --------- --------- -------
GAAP Colgan operating
income (loss) $ 8,222 $ (18,485) $ 26,707 (144)%
Impairment and aircraft
retirement charges 1,980 12,619 (10,639) (84)%
Excess of property
insurance proceeds over
cost basis of aircraft (835) - (835) N/A
-------- --------- --------- -------
Non GAAP Colgan operating
income (loss) $ 9,367 $ (5,866) $ 15,233 (260)%
======== ========= ========= =======
GAAP Colgan operating
margin 7.5% (16.0)% 23.5 pts.
Impairment and aircraft
retirement charges 1.8% 10.9% (9.1) pts.
Excess of property
insurance proceeds over
cost basis of aircraft (0.7)% - N/A
-------- --------- ---------
Non GAAP Colgan operating
margin 8.6% (5.1)% 13.7 pts.
======== ========= =========
GAAP operating income $ 39,118 $ 9,251 $ 29,867 323%
Impairment and aircraft
retirement charges 1,980 12,619 (10,639) (84)%
Excess of property
insurance proceeds over
cost basis of aircraft (835) - (835) N/A
-------- --------- --------- -------
Non GAAP operating income $ 40,263 $ 21,870 $ 18,393 84%
======== ========= ========= =======
GAAP operating margin 9.3% 2.2% 7.1 pts.
Impairment and aircraft
retirement charges 0.5% 3.0% (2.5) pts.
Excess of property
insurance proceeds over
cost basis of aircraft (0.2)% - (0.2) pts.
-------- --------- ---------
Non GAAP operating margin 9.6% 5.2% 4.4 pts.
======== ========= =========
GAAP pre tax income
(loss) $ 18,115 $ (13,849) $ 31,964 (231)%
Impairment and aircraft
retirement charges 1,980 12,619 (10,639) (84)%
Excess of property
insurance proceeds over
cost basis of aircraft (835) - (835) N/A
Net investment loss 289 8,675 (8,386) (97)%
Ineffective portion of
hedge 1,424 - 1,424 N/A
Reversal of interest on
tax reserves (2,719) - (2,719) N/A
Gain on debt
extinguishment (1,857) - (1,857) N/A
-------- --------- --------- -------
Non GAAP pre tax income $ 16,397 $ 7,445 $ 8,952 120%
======== ========= ========= =======
GAAP net income (loss) $ 24,836 $ (11,678) $ 36,514 (313)%
Impairment and aircraft
retirement charges, net
of tax 1,280 8,139 (6,859) (84)%
Excess of property
insurance proceeds over
cost basis of aircraft,
net of tax (540) - (540) N/A
Net investment loss, net
of tax 277 8,309 (8,032) (97)%
Ineffective portion of
hedge, net of tax 921 - 921 N/A
Reversal of interest on
tax reserves, net of tax (1,719) - (1,719) N/A
Gain on debt
extinguishment, net of
tax (1,122) - (1,122) N/A
IRS settlement (13,551) - (13,551) N/A
-------- --------- --------- -------
Non GAAP net income $ 10,382 $ 4,770 $ 5,612 118%
======== ========= ========= =======
GAAP EPS $ 1.38 $ (0.65) $ 2.03 (312)%
Impairment and aircraft
retirement charges, net
of tax 0.07 0.46 (0.39) (85)%
Excess of property
insurance proceeds over
cost basis of aircraft,
net of tax (0.03) - (0.03) N/A
Net investment loss, net
of tax 0.02 0.46 (0.44) (96)%
Ineffective portion of
hedge, net of tax 0.05 - 0.05 N/A
Reversal of interest on
tax reserves, net of tax (0.10) - (0.10) N/A
Gain on debt
extinguishment, net of
tax (0.06) - (0.06) N/A
IRS settlement (0.75) - (0.75) N/A
-------- --------- --------- -------
Non GAAP EPS $ 0.58 $ 0.27 $ 0.31 115%
======== ========= ========= =======
For further information, please contact:
Joe Williams
(901) 346-6162
www.pncl.com
