SkyWest, Inc. Announces Fourth Quarter and Annual 2023 Profit
Fourth Quarter and Annual 2023 Summary
-
Q4 2023 pre-tax income of
$24 million , net income of$18 million , or$0.42 per diluted share -
Full year 2023 pre-tax income of
$40 million , net income of$34 million , or$0.77 per diluted share -
SkyWest had 300 days of 100% controllable completion in 2023
Commenting on the results,
Under its previously announced share repurchase program authorized by the SkyWest Board of Directors in
Financial Results
Revenue was
Operating expenses were
Capital and Liquidity
SkyWest had
Total debt at
Commercial Agreements
SkyWest is coordinating with its major airline partners to optimize the timing of upcoming announced fleet deliveries. The anticipated E175 future delivery dates summarized below are based on currently available information and are subject to change.
|
|
2024 |
|
2025 |
|
2026 |
|
Total |
Delta Air Lines |
|
1 |
|
ꟷ |
|
ꟷ |
|
1 |
United Airlines |
|
4 |
|
7 |
|
8 |
|
19 |
|
|
ꟷ |
|
1 |
|
ꟷ |
|
1 |
Total |
|
5 |
|
8 |
|
8 |
|
21 |
By the end of 2026, SkyWest is scheduled to operate a total of 258 E175 aircraft.
SkyWest also announced today that it has acquired a 25% ownership stake in
About SkyWest
SkyWest will host its conference call to discuss its fourth quarter 2023 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 continued demand for our product, the effect of economic conditions on SkyWest’s business, financial condition and results of operations, the scheduled aircraft deliveries for SkyWest in upcoming periods and the related execution of SkyWest’s fleet transition strategy and expected timing thereof, expected production levels in future periods and associated staffing challenges, pilot attrition trends, SkyWest’s coordination with major airline partners to optimize the delivery of aircraft under previously announced agreements, the expected terms, timing and benefits related to SkyWest’s leasing and joint venture transactions, SkyWest’s provisioning of assets to
|
||||||||||||||||
Condensed Consolidated Statements of Income (Loss) |
||||||||||||||||
(Dollars and Shares in Thousands, Except per Share Amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended |
|
Year ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
OPERATING REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Flying agreements |
|
$ |
728,267 |
|
|
$ |
654,486 |
|
|
$ |
2,834,397 |
|
|
$ |
2,899,837 |
|
Lease, airport services and other |
|
|
23,520 |
|
|
|
26,759 |
|
|
|
101,035 |
|
|
|
105,088 |
|
Total operating revenues |
|
|
751,787 |
|
|
|
681,245 |
|
|
|
2,935,432 |
|
|
|
3,004,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries, wages and benefits |
|
|
331,956 |
|
|
|
315,204 |
|
|
|
1,322,615 |
|
|
|
1,211,551 |
|
Aircraft maintenance, materials and repairs |
|
|
190,271 |
|
|
|
137,679 |
|
|
|
673,453 |
|
|
|
644,157 |
|
Depreciation and amortization |
|
|
95,237 |
|
|
|
97,125 |
|
|
|
383,115 |
|
|
|
394,552 |
|
Aircraft fuel |
|
|
23,340 |
|
|
|
23,367 |
|
|
|
85,913 |
|
|
|
108,456 |
|
Airport-related expenses |
|
|
18,992 |
|
|
|
17,353 |
|
|
|
72,640 |
|
|
|
71,549 |
|
Aircraft rentals |
|
|
1,452 |
|
|
|
27,244 |
|
|
|
25,507 |
|
|
|
75,353 |
|
Other operating expenses |
|
|
62,917 |
|
|
|
98,337 |
|
|
|
268,120 |
|
|
|
318,145 |
|
Total operating expenses |
|
|
724,165 |
|
|
|
716,309 |
|
|
|
2,831,363 |
|
|
|
2,823,763 |
|
OPERATING INCOME (LOSS) |
|
|
27,622 |
|
|
|
(35,064 |
) |
|
|
104,069 |
|
|
|
181,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
12,167 |
|
|
|
8,273 |
|
|
|
43,928 |
|
|
|
17,605 |
|
Interest expense |
|
|
(31,049 |
) |
|
|
(34,775 |
) |
|
|
(130,930 |
) |
|
|
(127,083 |
) |
Other income (loss), net |
|
|
15,698 |
|
|
|
(112 |
) |
|
|
23,242 |
|
|
|
20,899 |
|
Total other expense, net |
|
|
(3,184 |
) |
|
|
(26,614 |
) |
|
|
(63,760 |
) |
|
|
(88,579 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INCOME (LOSS) BEFORE INCOME TAXES |
|
|
24,438 |
|
|
|
(61,678 |
) |
|
|
40,309 |
|
|
|
92,583 |
|
PROVISION (BENEFIT) FOR INCOME TAXES |
|
|
6,922 |
|
|
|
(14,574 |
) |
|
|
5,967 |
|
|
|
19,630 |
|
NET INCOME (LOSS) |
|
$ |
17,516 |
|
|
$ |
(47,104 |
) |
|
$ |
34,342 |
|
|
$ |
72,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
BASIC EARNINGS (LOSS) PER SHARE |
|
$ |
0.43 |
|
|
$ |
(0.93 |
) |
|
$ |
0.78 |
|
|
$ |
1.44 |
|
DILUTED EARNINGS (LOSS) PER SHARE |
|
$ |
0.42 |
|
|
$ |
(0.93 |
) |
|
$ |
0.77 |
|
|
$ |
1.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
40,706 |
|
|
|
50,598 |
|
|
|
43,940 |
|
|
|
50,548 |
|
Diluted |
|
41,776 |
|
|
50,598 |
|
|
|
44,599 |
|
|
50,644 |
|
||||||
Summary of Consolidated Balance Sheets |
||||||
(Dollars in Thousands) |
||||||
(Unaudited) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|||
|
2023 |
|
2022 |
|||
Cash and marketable securities |
$ |
835,223 |
|
$ |
1,047,215 |
|
Other current assets |
|
296,673 |
|
|
324,066 |
|
Total current assets |
|
1,131,896 |
|
|
1,371,281 |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
5,405,685 |
|
|
5,524,549 |
|
Deposits on aircraft |
|
77,282 |
|
|
23,931 |
|
Other long-term assets |
|
411,430 |
|
|
494,792 |
|
Total assets |
$ |
7,026,293 |
|
$ |
7,414,553 |
|
|
|
|
|
|
|
|
Current portion, long-term debt |
$ |
443,869 |
|
$ |
438,502 |
|
Other current liabilities |
|
810,423 |
|
|
734,041 |
|
Total current liabilities |
|
1,254,292 |
|
|
1,172,543 |
|
|
|
|
|
|
|
|
Long-term debt, net of current maturities |
|
2,562,183 |
|
|
2,941,772 |
|
Other long-term liabilities |
|
1,096,316 |
|
|
952,607 |
|
Stockholders' equity |
|
2,113,502 |
|
|
2,347,631 |
|
Total liabilities and stockholders' equity |
$ |
7,026,293 |
|
$ |
7,414,553 |
|
||||||
Additional Operational Information (unaudited) |
||||||
SkyWest’s fleet in scheduled service or under contract by aircraft type: |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E175 aircraft |
|
237 |
|
235 |
|
236 |
CRJ900 aircraft |
|
41 |
|
37 |
|
41 |
CRJ700 aircraft |
|
118 |
|
117 |
|
104 |
CRJ200 aircraft |
|
89 |
|
104 |
|
136 |
Total aircraft in service or under contract |
|
485 |
|
493 |
|
517 |
As of
Selected operational data: |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
For the three months ended |
|
For the year ended |
||||||||||||||
Block hours by aircraft type: |
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||
E175s |
|
177,104 |
|
|
153,959 |
|
|
15.0 |
% |
|
677,886 |
|
|
635,039 |
|
|
6.7 |
% |
CRJ900s |
|
17,198 |
|
|
23,194 |
|
|
(25.8 |
)% |
|
76,588 |
|
|
101,662 |
|
|
(24.7 |
)% |
CRJ700s |
|
59,820 |
|
|
58,498 |
|
|
2.3 |
% |
|
218,059 |
|
|
261,036 |
|
|
(16.5 |
)% |
CRJ200s |
|
36,632 |
|
|
49,253 |
|
|
(25.6 |
)% |
|
167,911 |
|
|
256,655 |
|
|
(34.6 |
)% |
Total block hours |
|
290,754 |
|
|
284,904 |
|
|
2.1 |
% |
|
1,140,443 |
|
|
1,254,392 |
|
|
(9.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Departures |
|
177,433 |
|
|
168,816 |
|
|
5.1 |
% |
|
691,962 |
|
|
739,388 |
|
|
(6.4 |
)% |
Passengers carried |
|
9,925,655 |
|
|
9,437,439 |
|
|
5.2 |
% |
|
38,597,309 |
|
|
40,064,689 |
|
|
(3.7 |
)% |
Adjusted flight completion |
|
99.9 |
% |
|
99.9 |
% |
|
— |
pts |
|
99.9 |
% |
|
99.7 |
% |
|
0.2 |
pts |
Raw flight completion |
|
99.5 |
% |
|
98.3 |
% |
|
1.2 |
pts |
|
98.8 |
% |
|
98.2 |
% |
|
0.6 |
pts |
Passenger load factor |
|
83.4 |
% |
|
84.6 |
% |
|
(1.2 |
)pts |
|
83.6 |
% |
|
83.4 |
% |
|
0.2 |
pts |
Average trip length |
|
445 |
|
|
479 |
|
|
(7.0 |
)% |
|
453 |
|
|
493 |
|
|
(8.1 |
)% |
Adjusted flight completion percent excludes weather cancellations. Raw flight completion includes weather cancellations.
Supplemental Cash Flow Information
SkyWest receives certain fixed monthly cash payments under its capacity purchase agreements (“CPAs”) that are attributed to SkyWest’s overhead costs and certain fixed monthly cash payments associated with SkyWest’s aircraft ownership costs. Fixed payments allocated to the non-lease portion are recognized as revenue on a completed block hour basis over the applicable contract term. Fixed payments allocated to the lease portion are accounted for as lease revenue under the CPAs and are recognized on a straight-line basis over the applicable contract term. Fixed monthly cash payments received in excess of revenue recognized during the reporting period are recorded as deferred revenue and revenue recognized in excess of fixed monthly cash payments during the reporting period are recorded as unbilled revenue on SkyWest’s consolidated balance sheet. Amendments to certain CPAs executed since
|
|
Three months ended |
|
Year ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenue recognized in excess of (less than) fixed cash payments received |
|
$ |
(62,604 |
) |
|
$ |
(69,521 |
) |
|
$ |
(242,463 |
) |
|
$ |
(29,322 |
) |
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
|
|
As of |
|
As of |
||||
Cumulative revenue recognized less than fixed cash payments received |
|
$ |
(367,276 |
) |
|
$ |
(124,813 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240201042560/en/
Investor Relations
435.634.3200
Investor.relations@skywest.com
Corporate Communications
435.634.3553
corporate.communications@skywest.com
Source: