SOURCE: Pinnacle Airlines

Pinnacle Airlines

February 18, 2010 07:00 ET

Pinnacle Airlines Corp. Announces 2009 Fourth Quarter Earnings

Company Reports Consolidated Earnings per Share of $0.31

MEMPHIS, TN--(Marketwire - February 18, 2010) - Pinnacle Airlines Corp. (NASDAQ: PNCL) (the "Company") today reported fourth quarter 2009 net income of $5.6 million and fully diluted earnings per share ("EPS") of $0.31. This represents an increase of 153% and 158% over net income and EPS recorded in the fourth quarter of 2008 of $2.2 million and $0.12, respectively, excluding special charges. The Company reported consolidated operating income of $17.8 million in the fourth quarter of 2009, an increase of 9% over consolidated operating income of $16.3 million in the fourth quarter of 2008.

For the year ended December 31, 2009, the Company reported net income of $41.9 million and EPS of $2.31. The Company's financial results during 2009 include a number of previously announced special items that increased net income by $18.7 million. These nonrecurring items, along with special items that occurred in 2008, are listed in the attached table "Reconciliation of Non-GAAP Disclosures." Excluding these special items, the Company achieved net income of $23.2 million for the full year 2009, an increase of 68% over net income of $13.8 million in 2008, excluding special charges. The Company's 2009 EPS excluding these nonrecurring items was $1.28, an increase of 66% over EPS of $0.77 for 2008, excluding special charges.

The Company also announced today that all of the remaining $31 million par amount of 3.25% Senior Convertible Notes (the "Notes") were repaid on February 16, the day after the date that holders of the Notes could elect to tender the Notes to the Company. After repayment of the Notes, the Company's balance of unrestricted cash and cash equivalents on February 16 was approximately $60 million.

In January 2010, the Company entered into a short-term loan agreement for $10.0 million, secured by the Company's federal income tax refund. The interest rate on this loan is currently 4.5%. This short-term loan provided the Company with a low-cost alternative to maintain a strong working capital position until its 2009 federal tax refund is received late in the first quarter or early in the second quarter of 2010.

"2009 was a significant year for Pinnacle Airlines Corp.," said Phil Trenary, the Company's President and Chief Executive Officer. "We began the year with many challenges, both operationally and financially, but our People delivered solid results for our Customers and Shareholders. With the full repayment of our convertible notes, we are better positioned to take advantage of opportunities in the regional airline industry in 2010 and beyond."

Fourth Quarter 2009 Financial and Operating Results

During the fourth quarter of 2009, Pinnacle Airlines, Inc. ("Pinnacle"), the Company's regional jet operating subsidiary, completed 103,915 block hours and 66,619 departures, decreases of 7% and 1%, respectively, over the same period in 2008. Pinnacle experienced an 8% decrease year-over-year in the average utilization of its fleet, primarily from route network changes resulting in shorter average flights. Colgan Air, Inc. ("Colgan"), the Company's regional turboprop operating subsidiary, completed 33,766 block hours and 26,466 departures during the fourth quarter, decreases of 7% over the same period in 2008. The decrease in operations is primarily related to the retirement of seven Saab and Beech aircraft in conjunction with eliminating certain markets operated under the Company's pro-rate agreements. Also contributing to this decrease was a reduction of one Q400 aircraft during 2009.

The Company recorded consolidated operating revenue during the fourth quarter of 2009 of $209.2 million, a decrease of $8.3 million, or 4%, over the same period in 2008. This decrease is primarily related to a reduction in Colgan's pro-rate operations and the decrease in Pinnacle's utilization noted above. Consolidated operating income was $17.8 million for the fourth quarter of 2009. Consolidated operating income for the fourth quarter of 2008 was approximately $16.3 million.

Pinnacle reported fourth quarter 2009 operating income and an operating margin of $13.5 million and 8.8%, respectively, a decrease of $0.4 million and 0.2 points, respectively, from the fourth quarter of 2008. Pinnacle's operating income in the fourth quarter of 2009 was reduced by approximately $1.7 million related to an ongoing contractual disagreement with Delta Air Lines, Inc. ("Delta"), the Company's largest operating partner. Delta has disputed the contractual requirement to reimburse Pinnacle in full for its aviation hull and passenger liability insurance premiums. Under generally accepted accounting principles, Pinnacle will not record the unreimbursed insurance amounts as revenue until the parties resolve the issue.

Colgan reported operating income and an operating margin of $4.3 million and 7.6%, an increase of $1.8 million and 3.6 points, respectively, from the fourth quarter of 2008. Colgan's decreased fuel costs in its pro-rate operations were a primary factor leading to the increase in operating income. Fuel cost per gallon during the fourth quarter 2009 was $2.31, down 9%, from $2.53 per gallon during the same period in 2008. The decline in fuel costs was partially offset by a decrease in Colgan's revenue-per-available-seat-mile within its pro-rate operations of approximately 9%, and increases in Colgan's rising employee health insurance costs and wage and rate adjustments during 2009.

Net nonoperating expense was $10.1 million for the fourth quarter of 2009, as compared to nonoperating expense of $19.8 million for the same period in 2008, which included an $8.1 million impairment charge related to the Company's Auction Rate Securities ("ARS") portfolio. Interest income decreased by $1.5 million, primarily from a decrease in interest rates earned on invested assets, as well as the sale of the Company's ARS portfolio in August 2009. Interest expense for the fourth quarter was $10.2 million, a decrease of $3.2 million from the fourth quarter of 2008, primarily related to a reduction in interest expense on the Company's Notes, a large portion of which were repurchased throughout 2009.

Cash and Cash Equivalents

The Company ended the quarter with $91.6 million in unrestricted cash and cash equivalents. The Company generated $21.7 million in cash and cash equivalents from operating activities during the fourth quarter of 2009. Net cash used in investing activities for the three months ended December 31, 2009 was $0.1 million, primarily resulting from $1.4 million related to certain capital expenditures, partially offset by $1.3 million related to the redemption of certain of the Company's previously mentioned ARS. Net cash used in financing activities for the three months ended December 31, 2009 totaled $11.2 million, primarily comprised of $10.8 scheduled principal payments on long-term debt obligations and $0.3 million of other financing activities.

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 126 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, the U.S. Virgin Islands and three Canadian provinces. 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-K for the year ended December 31, 2009, which will soon be filed with the SEC.

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, operating margin, pre-tax income, net income and EPS for the three months ended December 31, 2008 and years ended December 31, 2009 and 2008, excluding nonrecurring items related to impairment and aircraft retirement charges, the excess of property insurance proceeds over cost basis of aircraft, net investment gains and losses, 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.

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,
                                              ----------------------------
                                                  2009           2008
                                              -------------  -------------
                                                              (Restated)
                                              -------------  -------------

Operating revenues:
  Regional airline services                   $     206,635  $     215,245
  Other                                               2,580          2,253
                                              -------------  -------------
Total operating revenues                            209,215        217,498

Operating expenses:
  Salaries, wages and benefits                       57,015         54,389
  Aircraft rentals                                   30,069         31,120
  Ground handling services                           22,560         23,647
  Aircraft maintenance, materials and repairs        23,275         27,100
  Other rentals and landing fees                     16,790         19,282
  Aircraft fuel                                       6,142          7,847
  Commissions and passenger related expense           5,205          5,587
  Depreciation and amortization                       8,659          7,952
  Other                                              21,705         24,368
  Impairment and aircraft retirement costs                -           (140)
                                              -------------  -------------
Total operating expenses                            191,420        201,152
                                              -------------  -------------
Operating income                                     17,795         16,346

Operating income as a percentage of operating
 revenues                                               8.5%           7.5%

Nonoperating (expense) income:
  Interest income                                         5          1,543
  Interest expense                                  (10,150)       (13,352)
  Investment loss, net                                  (67)        (8,125)
  Miscellaneous income, net                             122            115
                                              -------------  -------------
Total nonoperating expense                          (10,090)       (19,819)
                                              -------------  -------------

Income (loss) before income taxes                     7,705         (3,473)
Income tax expense                                   (2,062)        (2,053)
                                              -------------  -------------
Net income (loss)                             $       5,643  $      (5,526)
                                              =============  =============

Basic and diluted earnings (loss) per share   $        0.31  $       (0.31)
                                              =============  =============
Shares used in computing basic earnings
 (loss) per share                                    17,969         17,867
                                              =============  =============
Shares used in computing diluted earnings
 (loss) per share                                    18,381         17,867
                                              =============  =============



                           Pinnacle Airlines Corp.
              Condensed Consolidated Statements of Operations
                  (in thousands, except per share data)


                                                Years Ended December 31,
                                              ----------------------------
                                                  2009           2008
                                              -------------  -------------
                                               (Unaudited)     (Restated)

Operating revenues:
  Regional airline services                   $     836,249  $     855,659
  Other                                               9,259          9,126
                                              -------------  -------------
Total operating revenues                            845,508        864,785

Operating expenses:
  Salaries, wages and benefits                      225,014        219,971
  Aircraft rentals                                  120,748        128,559
  Ground handling services                           93,182         96,359
  Aircraft maintenance, materials and repairs        98,075         93,361
  Other rentals and landing fees                     70,777         71,405
  Aircraft fuel                                      22,110         49,450
  Commissions and passenger related expense          20,919         27,025
  Depreciation and amortization                      35,399         26,518
  Other                                              76,595         92,982
  Impairment and aircraft retirement costs            1,980         13,548
                                              -------------  -------------
Total operating expenses                            764,799        819,178
                                              -------------  -------------
Operating income                                     80,709         45,607

Operating income as a percentage of operating
 revenues                                               9.5%           5.3%

Nonoperating (expense) income:
  Interest income                                     1,947          6,870
  Interest expense                                  (44,862)       (44,547)
  Investment gain (loss), net                         3,877        (16,800)
  Miscellaneous income, net                             567            281
                                              -------------  -------------
Total nonoperating expense                          (38,471)       (54,196)
                                              -------------  -------------

Income (loss) before income taxes                    42,238         (8,589)
Income tax expense                                     (382)        (2,408)
                                              -------------  -------------
Net income (loss)                             $      41,856  $     (10,997)
                                              =============  =============
Basic earnings (loss) per share               $        2.33  $       (0.62)
                                              =============  =============

Diluted earnings (loss) per share             $        2.31  $       (0.62)
                                              =============  =============
Shares used in computing basic earnings
 (loss) per share                                    17,969         17,865
                                              =============  =============
Shares used in computing diluted earnings
 (loss) per share                                    18,133         17,865
                                              =============  =============



                           Pinnacle Airlines Corp.
                    Condensed Consolidated Balance Sheets
                      (in thousands, except share data)


                                              December 31,   December 31,
                                                  2009           2008
                                              -------------  -------------
Assets                                         (Unaudited)     (Restated)
Current assets
  Cash and cash equivalents                   $      91,574  $      69,469
  Restricted cash                                     3,115          5,417
  Receivables, net of allowances of $213 in
   2009 and $135 in 2008                             34,518         31,619
  Spare parts and supplies, net of allowances
   of $4,749 in 2009 and $4,213 in 2008              19,472         17,106
  Prepaid expenses and other assets                   3,508          8,160
  Assets held for sale                                    -          2,786
  Deferred income taxes, net of allowance            10,406         13,908
  Income taxes receivable                            40,803         31,117
                                              -------------  -------------
    Total current assets                            203,396        179,582
Property and equipment
  Flight equipment                                  756,815        721,499
  Aircraft pre-delivery payments                     12,049          5,721
  Other property and equipment                       48,710         46,218
  Less accumulated depreciation                     (86,501)       (53,507)
                                              -------------  -------------
    Net property and equipment                      731,073        719,931
Investments                                           2,723        116,900
Deferred income taxes, net of allowance                   -         40,847
Other assets                                        317,659         33,724
Debt issuance costs, net of amortization of
 $5,146 in 2009 and $3,911 in 2008                    3,561          3,711
Goodwill                                             18,422         18,422
Intangible assets, net of amortization of
 $7,179 in 2009 and $5,180 in 2008                   12,586         14,585
                                              -------------  -------------
Total assets                                  $   1,289,420  $   1,127,702
                                              =============  =============

Liabilities and stockholders' equity
Current liabilities
  Current maturities of long-term debt        $      36,085  $      32,116
  Bank line of credit                                     -          8,275
  Senior convertible notes                           30,596         10,754
  Pre-delivery payment facility                       2,027          4,075
  Accounts payable                                   24,306         30,431
  Deferred revenue                                   24,363         23,851
  Accrued expenses and other current
   liabilities                                       60,610         74,669
                                              -------------  -------------
    Total current liabilities                       177,987        184,171

Senior convertible notes                                  -         97,683
Noncurrent pre-delivery payment facility              4,910              -
Long-term debt, less current maturities             519,234        502,741
Credit facility                                           -         90,000
Deferred revenue, net of current portion            177,711        192,191
Deferred income taxes, net of allowance              13,532              -
Other liabilities                                   293,809          5,182

Commitments and contingencies

Stockholders' equity
  Common stock, $0.01 par value; 40,000,000
   shares authorized; 22,786,743 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                          121,513        119,611
Accumulated other comprehensive loss                (14,431)       (17,173)
Retained earnings                                    63,079         21,223
                                              -------------  -------------
Total stockholders' equity                          102,237         55,734
                                              -------------  -------------
Total liabilities and stockholders' equity    $   1,289,420  $   1,127,702
                                              =============  =============




                           Pinnacle Airlines Corp.
          Condensed Consolidated Statements of Cash Flows (Unaudited)
                              (in thousands)


                                                Years Ended December 31,
                                              ----------------------------
                                                  2009           2008
                                              -------------  -------------
                                                               (restated)

Cash provided by operating activities         $     105,641  $      28,806
Cash provided by investing activities                24,224         20,404
Cash used in financing activities                  (107,760)        (6,526)
                                              -------------  -------------
Net increase in cash and cash equivalents            22,105         42,684
Cash and cash equivalents at beginning of
 period                                              69,469         26,785
                                              -------------  -------------
Cash and cash equivalents at end of period    $      91,574  $      69,469
                                              =============  =============




                           Pinnacle Airlines Corp.
                  Pinnacle Operating Statistics (Unaudited)

                      Three Months Ended            Years Ended
                         December 31,               December 31,
                -------------------------- --------------------------
                  2009      2008    Change   2009      2008    Change
                --------- --------- ------ --------- --------- ------
Other Data:
Revenue
 passengers
 (in thousands)     2,655     2,623    1%     10,771     10,393     4%
Revenue
 passenger
 miles
 ("RPMs") (in
 thousands)     1,135,489 1,221,749   (7)% 4,640,392  4,844,526    (4)%
Available
 seat miles
 ("ASMs") (in
 thousands)     1,470,353 1,605,043   (8)% 6,108,609  6,320,269    (3)%

Passenger
 load factor        77.2%     76.1% 1.1 pts.    76.0%      76.7% (0.7) pts.
Operating
 revenue per
 ASM (in
 cents)             10.39      9.65    8%      10.12       9.70     4%
Operating
 cost per ASM
 (in cents)          9.47      8.78    8%       9.13       8.85     3%
Operating
 revenue per
 block hour     $   1,470 $   1,393    6%  $   1,449  $   1,384     5%
Operating
 cost per
 block hour     $   1,340 $   1,268    6%  $   1,308  $   1,263     4%
Block hours       103,915   111,167   (7)%   426,432    442,911    (4)%
Departures         66,619    67,325   (1)%   273,077    267,893     2%
Average daily
 utilization
 (block
 hours)              7.99      8.67   (8)%      8.58       8.75    (2)%
Average stage
 length
 (miles)              422       455   (7)%       426        460    (7)%

Number of
 operating
 aircraft
 (end of
 period)
  CRJ-200             126       124    2%
  CRJ-900              16        18  (11)%
Employees
 (end of
 period)            3,675     4,204  (13)%




                           Pinnacle Airlines Corp.
                  Colgan Operating Statistics (Unaudited)

                     Three Months Ended            Years Ended
                        December 31,               December 31,
               --------------------------  --------------------------
                 2009      2008    Change     2009     2008    Change
               --------- --------- ------  --------- --------- ------
Pro-rate
 Agreements:
Revenue
 passengers
 (in thousands)      284       298    (5)%     1,169      1,380   (15)%
RPMs (in
 thousands)       49,747    51,544    (3)%   203,848    249,520   (18)%
ASMs (in
 thousands)      108,231   111,222    (3)%   456,664    558,389   (18)%
Passenger
 load factor        46.0%     46.3% (0.3) pts.  44.6%      44.7% (0.1) pts.
Passenger
 yield
 (in cents)        76.78     83.49    (8)%     75.56      78.94    (4)%
Operating
 revenue per
 ASM
 (in cents)        35.29     38.69    (9)%     33.73      35.28    (4)%
Operating
 revenue per
 block hour    $   1,721 $   1,875    (8)% $   1,692 $    1,716    (1)%
Block hours       22,189    22,954    (3)%    91,023    114,816   (21)%
Departures        18,957    20,147    (6)%    79,866     97,174   (18)%
Fuel consumption
 (in thousands
 of gallons)       2,654     3,097   (14)%    10,994     14,761   (26)%
Average price
 per gallon    $    2.31 $    2.53    (9)% $    2.01 $     3.35   (40)%
Average fare   $     134 $     144    (7)% $     132 $      143    (8)%

Capacity Purchase
 Agreement:
Revenue
 passengers
 (in thousands)      372       383    (3)%     1,533      1,153    33%
RPMs (in
 thousands)      112,109   112,044     0%    437,221    326,627    34%
ASMs (in
 thousands)      162,686   176,991    (8)%   638,821    501,832    27%
Passenger
 load factor        68.9%     63.3%  5.6 pts.   68.4%      65.1%  3.3 pts.
Operating
 revenue per
 ASM
 (in cents)        11.14     11.05     1%      11.45      10.86     5%
Operating
 revenue per
 block hour    $   1,566 $   1,470     7%  $   1,551  $   1,432     8%
Block hours       11,577    13,307   (13)%    47,143     38,074    24%
Departures         7,509     8,437   (11)%    30,702     24,461    26%

Total Colgan:
Block hours       33,766    36,261    (7)%   138,166    152,890   (10)%
Departures        26,466    28,584    (7)%   110,568    121,635    (9)%
ASMs (in
 thousands)      270,917   288,213    (6)% 1,095,485  1,060,221     3%
Total
 operating
 cost per ASM
 (in cents)        19.26     20.88    (8)%     18.89      24.50   (23)%
Total
 operating
 cost per ASM
 (in cents)
 (excluding
 impairment
 and aircraft
 lease return
 costs)            19.26     20.93    (8)%     18.71      23.22   (19)%
Total
 operating
 cost per
 block hour    $   1,545 $   1,659    (7)% $   1,498  $   1,699   (12)%
Total
 operating
 cost per
 block
 hour
 (excluding
 impairment
 and aircraft
 lease return
 costs)        $   1,545 $   1,663    (7)% $   1,484  $   1,610    (8)%
Average daily
 utilization
 (block
 hours)             7.65      7.48     2%       7.84       7.86     0%
Average stage
 length
 (miles)             229       228     0%        223        228    (2)%
Number of
 operating
 aircraft
 (end of
 period)
  Saab 340            34        34     0%
  Beech 1900           -         2  (100)%
  Q400                14        15    (7)%
Employees          1,307     1,324    (1)%




                           Pinnacle Airlines Corp.
              Reconciliation of Non-GAAP Disclosures (Unaudited)
                     (in thousands, except per share data)

                                      Three Months Ended December 31,
                                 ----------------------------------------
                                    2009      2008     $ change  % change
                                 ---------- ---------  --------  --------
GAAP pre-tax income (loss)       $    7,705 $  (3,473) $ 11,178      (322)%
Net investment loss                       -     8,125    (8,125)      N/A
                                 ---------- ---------  --------  --------
Non-GAAP pre-tax income          $    7,705 $   4,652  $  3,053        66%
                                 ========== =========  ========  ========

GAAP net income (loss)           $    5,643 $  (5,526) $ 11,169      (202)%
Net investment loss, net of tax           -     7,759    (7,759)      N/A
                                 ---------- ---------  --------  --------
Non-GAAP net income              $    5,643 $   2,233  $  3,410       153%
                                 ========== =========  ========  ========

GAAP EPS                         $     0.31 $   (0.31) $   0.62      (200)%
Net investment loss, net of tax           -      0.43     (0.43)      N/A
                                 ---------- ---------  --------  --------
Non-GAAP EPS                     $     0.31 $    0.12  $   0.19       158%
                                 ========== =========  ========  ========




                           Pinnacle Airlines Corp.
              Reconciliation of Non-GAAP Disclosures (Unaudited)
                     (in thousands, except per share data)

                                      Years Ended December 31,
                            ---------------------------------------------
                              2009       2008     $ change       % change
                            --------   --------   --------       --------
GAAP Colgan operating
 income (loss)                20,616     (8,010)    28,626           (357)%
Impairment and aircraft
 retirement charges            1,980     13,548    (11,568)           (85)%
Excess of property
 insurance proceeds over
 cost basis of aircraft         (835)         -       (835)           N/A
                            --------   --------   --------       --------
Non-GAAP Colgan operating
 income                     $ 21,761   $  5,538   $ 16,223            293%
                            ========   ========   ========       ========

GAAP Colgan operating
 margin                          9.1%      (3.2)%     12.3  pts.
Impairment and aircraft
 retirement charges              0.9%       5.4%      (4.5) pts.
Excess of property
 insurance proceeds over
 cost basis of aircraft         (0.4)%        -       (0.4) pts.
                            --------   --------   --------
Non-GAAP Colgan operating
 margin                          9.6%       2.2%       7.4  pts.
                            ========   ========   ========

GAAP operating income       $ 80,709   $ 45,607   $ 35,102             77 %
Impairment and aircraft
 retirement charges            1,980     13,548    (11,568)           (85)%
Excess of property
 insurance proceeds over
 cost basis of aircraft         (835)         -       (835)           N/A
                            --------   --------   --------       --------
Non-GAAP operating income   $ 81,854   $ 59,155   $ 22,699             38%
                            ========   ========   ========       ========

GAAP operating margin            9.5%       5.3%       4.2  pts.
Impairment and aircraft
 retirement charges              0.2%       1.6%      (1.4) pts.
Excess of property
 insurance proceeds over
 cost basis of aircraft         (0.1)%        -       (0.1) pts.
                            --------   --------   --------
Non-GAAP operating margin        9.6%       6.9%       2.7  pts.
                            ========   ========   ========

GAAP pre-tax income (loss)  $ 42,238   $ (8,589)  $ 50,827           (592)%
Impairment and aircraft
 retirement charges            1,980     13,548    (11,568)           (85)%
Excess of property
 insurance proceeds over
 cost basis of aircraft         (835)         -       (835)           N/A
Net investment (gain) loss    (3,877)    16,800    (20,677)          (123)%
Ineffective portion of
 hedge                         1,424          -      1,424            N/A
Reversal of interest on tax
 reserves                     (2,926)         -     (2,926)           N/A
Gain on debt extinguishment   (1,857)         -     (1,857)           N/A
                            --------   --------   --------       --------
Non-GAAP pre-tax income     $ 36,147   $ 21,759   $ 14,388             66%
                            ========   ========   ========       ========

GAAP net income (loss)      $ 41,856   $(10,997)  $ 52,853           (481)%
Impairment and aircraft
 retirement charges,
 net of tax                    1,218      8,688     (7,470)           (86)%
Excess of property
 insurance proceeds over
 cost basis of aircraft,
 net of tax                     (514)         -       (514)           N/A
Net investment (gain) loss,
 net of tax                   (3,713)    16,091    (19,804)          (123)%
Ineffective portion of
 hedge, net of tax               876          -        876            N/A
Reversal of interest on tax
 reserves, net of tax         (1,842)         -     (1,842)           N/A
Gain on debt
 extinguishment, net of tax   (1,118)         -     (1,118)           N/A
IRS settlement               (13,551)         -    (13,551)           N/A
                            --------   --------   --------       --------
Non-GAAP net income         $ 23,212   $ 13,782   $  9,430             68%
                            ========   ========   ========       ========

GAAP EPS                    $   2.31   $  (0.62)  $   2.93           (473)%
Impairment and aircraft
 retirement charges,
 net of tax                     0.07       0.49      (0.42)           (86)%
Excess of property
 insurance proceeds over
 cost basis of aircraft,
 net of tax                    (0.03)         -      (0.03)           N/A
Net investment (gain) loss,
 net of tax                    (0.20)      0.90      (1.10)          (122)%
Ineffective portion of
 hedge, net of tax              0.05          -       0.05            N/A
Reversal of interest on tax
 reserves, net of tax          (0.11)         -      (0.11)           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                $   1.28   $   0.77   $   0.51             66%
                            ========   ========   ========       ========

Contact Information

  • For further information, please contact:
    Joe Williams
    (901) 346-6162
    www.pncl.com