SkyWest, Inc. Announces Fourth Quarter and Annual 2020 Results
Fourth Quarter and Annual Results
- Q4 2020 pre-tax loss of
$59 million , net loss of$46 million , or$0.93 loss per share - Full year 2020 pre-tax loss of
$7 million , net loss of$9 million , or$0.17 loss per share - Full year 2020 revenue of
$2.1 billion , down 28% from 2019 due to COVID-19 - As previously announced:
- Acquired 21 used CRJ700 aircraft and placed the aircraft under lease with a United Express operator during Q4
- Took delivery of four new E175 aircraft during Q4 under a flying contract with Delta Air Lines
Commenting on the results,
Financial Results
Revenue was
SkyWest deferred recognizing revenue on
Operating expenses were
Capital and Liquidity
SkyWest had
SkyWest has
SkyWest has a
As previously announced, SkyWest entered into a payroll support program extension agreement with
During 2020, SkyWest received
Total debt at
Status Update on Previously Announced Deals
SkyWest is coordinating with its major airline partners to optimize the timing of upcoming fleet deliveries under previously announced deals in response to COVID-19 schedule reductions. The anticipated future delivery dates summarized below are based on currently available information and are subject to change.
Flying contract with Delta Air Lines ("Delta")
- Four new E175 aircraft financed by SkyWest were delivered in Q4 2020
- One new CRJ900 aircraft to be financed by Delta and operated by SkyWest is scheduled for delivery in 2021
Flying contract with
- 18 aircraft deliveries are anticipated in the second half of 2021 and two deliveries are expected in 2022. The aircraft are scheduled to be placed into service in 2022.
- SkyWest anticipates financing the aircraft through debt
Flying contract with American for CRJ700 aircraft
- SkyWest has 65 CRJ700 aircraft in service with American as of
December 31, 2020 - SkyWest anticipates placing 25 additional CRJ700 aircraft into service with American ratably throughout 2021
- SkyWest anticipates using its own aircraft not currently under contract with a partner to fulfill this agreement
Flying contract with Delta for CRJ200 aircraft
SkyWest's capacity purchase agreement with Delta for CRJ200 aircraft expired at the end of 2020 and was not extended. SkyWest has no outstanding financing obligations on the CRJ200 aircraft removed from the Delta contract and these aircraft are fully depreciated. SkyWest's prorate flying arrangement for CRJ200 aircraft with Delta did not terminate as of
About SkyWest
SkyWest will host its conference call to discuss its fourth quarter 2020 results today,
Forward Looking-Statements
In addition to historical information, this release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "forecasts," "expects," "intends," "believes," "anticipates," "estimates," "should," "likely" and similar expressions identify forward-looking statements. Such statements include, but are not limited to, statements about the expected terms, timing and benefits of the Consolidated Appropriations Act of 2021 funding, the ability to draw down loan amounts under its facility pursuant to the CARES Act and its line of credit, the impact of the COVID-19 outbreak on SkyWest's business, financial condition and results of operations, the scheduled aircraft deliveries for
Actual operational and financial results of SkyWest will likely also vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of other reasons, including, in addition to those identified above: the existing global COVID-19 pandemic and the outbreak of any other disease or similar public health threat that affects travel demand or travel behavior; the challenges of competing successfully in a highly competitive and rapidly changing industry; developments associated with fluctuations in the economy and the demand for air travel, including related to the duration and impact of the COVID-19 pandemic, and related decreases in customer demand and spending; the financial stability of SkyWest's major partners and any potential impact of their financial condition on the operations of SkyWest; fluctuations in flight schedules, which are determined by the major partners for whom SkyWest conducts flight operations; variations in market and economic conditions; significant aircraft lease and debt commitments; estimated useful life of long-lived assets, residual aircraft values and related impairment charges; labor relations and costs; the impact of global instability; rapidly fluctuating fuel costs, and potential fuel shortages; the impact of weather-related or other natural disasters on air travel and airline costs; aircraft deliveries; and other unanticipated factors. Risk factors, cautionary statements and other conditions which could cause SkyWest's actual results to differ materially from management's current expectations are contained in SkyWest's filings with the
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Condensed Consolidated Statements of Income |
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(Dollars and Shares in Thousands, Except per Share Amounts) |
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(Unaudited) |
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Three Months Ended
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Twelve Months Ended
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2020 |
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2019 |
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2020 |
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2019 |
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OPERATING REVENUES |
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|
|
|
|
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Flying agreements |
$ 569,889 |
|
$ 725,092 |
|
$ 2,060,801 |
|
$ 2,889,265 |
|
|
Lease, airport services and other |
19,748 |
|
18,499 |
|
66,305 |
|
82,698 |
|
|
Total operating revenues |
589,637 |
|
743,591 |
|
2,127,106 |
|
2,971,963 |
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OPERATING EXPENSES |
|
|
|
|
|
|
|
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Salaries, wages and benefits |
212,214 |
|
248,978 |
|
826,109 |
|
1,001,746 |
|
|
Aircraft maintenance, materials and repairs |
187,335 |
|
137,741 |
|
618,989 |
|
514,313 |
|
|
Depreciation and amortization |
110,146 |
|
95,168 |
|
474,959 |
|
368,098 |
|
|
Airport-related expenses |
23,694 |
|
29,600 |
|
93,886 |
|
118,837 |
|
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Aircraft rentals |
15,779 |
|
16,158 |
|
65,316 |
|
71,998 |
|
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Aircraft fuel |
15,864 |
|
31,546 |
|
61,739 |
|
119,115 |
|
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CARES Act payroll support grant |
(3,353) |
|
- |
|
(345,491) |
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- |
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Special items |
- |
|
- |
|
- |
|
21,869 |
|
|
Other operating expenses |
55,627 |
|
59,095 |
|
222,797 |
|
243,729 |
|
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Total operating expenses |
617,306 |
|
618,286 |
|
2,018,304 |
|
2,459,705 |
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OPERATING INCOME (LOSS) |
(27,669) |
|
125,305 |
|
108,802 |
|
512,258 |
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OTHER INCOME (EXPENSE) |
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Interest income |
227 |
|
3,051 |
|
5,879 |
|
14,131 |
|
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Interest expense |
(31,893) |
|
(30,871) |
|
(123,173) |
|
(127,755) |
|
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Other income (expense), net |
(40) |
|
304 |
|
1,165 |
|
47,671 |
|
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Total other income (expense), net |
(31,706) |
|
(27,516) |
|
(116,129) |
|
(65,953) |
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INCOME (LOSS) BEFORE INCOME TAXES |
(59,375) |
|
97,789 |
|
(7,327) |
|
446,305 |
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PROVISION (BENEFIT) FOR INCOME TAXES |
(12,925) |
|
25,262 |
|
1,188 |
|
106,206 |
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NET INCOME (LOSS) |
$ (46,450) |
|
$ 72,527 |
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$ (8,515) |
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$ 340,099 |
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BASIC EARNINGS (LOSS) PER SHARE |
$ (0.93) |
|
$ 1.44 |
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$ (0.17) |
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$ 6.68 |
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DILUTED EARNINGS (LOSS) PER SHARE |
$ (0.93) |
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$ 1.43 |
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$ (0.17) |
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$ 6.62 |
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Weighted average common shares |
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Basic |
50,181 |
|
50,395 |
|
50,195 |
|
50,932 |
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Diluted |
50,181 |
|
50,796 |
|
50,195 |
|
51,375 |
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Summary of Consolidated Balance Sheets |
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(Dollars in Thousands) |
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(Unaudited) |
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2020 |
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2019 |
Cash and marketable securities |
$ 825,908 |
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$ 520,172 |
Other current assets |
156,894 |
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240,174 |
Total current assets |
982,802 |
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760,346 |
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5,330,423 |
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5,345,823 |
Deposit on aircraft |
31,625 |
|
48,858 |
Other long-term assets |
542,772 |
|
502,102 |
Total assets |
$ 6,887,622 |
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$ 6,657,129 |
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Current portion, long-term debt |
$ 402,158 |
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$ 364,126 |
Other current liabilities |
539,564 |
|
560,550 |
Total current liabilities |
941,722 |
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924,676 |
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Long-term debt, net of current maturities |
2,801,538 |
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2,628,989 |
Other long-term liabilities |
1,004,817 |
|
928,450 |
Stockholders' equity |
2,139,545 |
|
2,175,014 |
Total liabilities and stockholders' equity |
$ 6,887,622 |
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$ 6,657,129 |
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Additional Operational Information (unaudited) |
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SkyWest's fleet in scheduled service by aircraft type: |
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E175 aircraft |
193 |
189 |
156 |
CRJ900 aircraft |
39 |
39 |
43 |
CRJ700 aircraft |
90 |
86 |
94 |
CRJ200 aircraft |
130 |
134 |
190 |
Total aircraft in service |
452 |
448 |
483 |
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As of |
Selected operational data: |
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Three months ended |
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Twelve months ended |
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2020 |
2019 |
Change |
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2020 |
2019 |
Change |
Block hours by aircraft type: |
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E175s |
124,081 |
133,232 |
(6.9)% |
|
435,557 |
529,008 |
(17.7)% |
CRJ900s |
21,426 |
30,872 |
(30.6)% |
|
66,640 |
124,860 |
(46.6)% |
CRJ700s |
56,313 |
74,151 |
(24.1)% |
|
200,860 |
298,599 |
(32.7)% |
CRJ200 |
65,708 |
130,046 |
(49.5)% |
|
270,281 |
511,938 |
(47.2)% |
Total block hours |
267,528 |
368,301 |
(27.4)% |
|
973,338 |
1,464,405 |
(33.5)% |
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Departures |
157,726 |
214,299 |
(26.4)% |
|
585,257 |
842,098 |
(30.5)% |
Adjusted flight completion |
99.9% |
99.9% |
NC |
|
99.9% |
99.9% |
NC |
Raw flight completion |
99.3% |
98.4% |
0.9 pts |
|
97.8% |
97.9% |
(0.1) pts |
Passengers carried |
5,672,695 |
11,093,800 |
(48.9)% |
|
21,255,931 |
43,660,766 |
(51.3)% |
Passenger load factor |
55.5% |
82.2% |
(26.7) pts |
|
56.4% |
82.3% |
(25.9) pts |
Average trip length |
515 |
496 |
3.9% |
|
500 |
500 |
NC |
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Adjusted flight completion percent excludes weather cancellations. Raw flight completion includes weather cancellations. |
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