SkyWest Inc. Q1 2009 Earnings Call Transcript

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2009-05-06 09:46:15.0

Tags: Bank Of America Corp., Merrill Lynch & Co. Inc., Call Transcript, Earnings, SkyWest Inc., Ph, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Mike Linenberg of Bank of America Merrill Lynch.

Alex Louanzen [Ph] - Bank of America Merrill Lynch

Hey, everyone this is actually Alex Louanzen [Ph] on behalf of Mike. I just had a quick question regarding your credit facility. I guess it had expired at the end of the March quarter, the $25 million. Was that renewed, can we get any update on that please?

Bradford Rich

Yes, it has been renewed.

Alex Louanzen [Ph] - Bank of America Merrill Lynch

Okay, and then the ASM production, it looks like it was up a little bit from your prior expectations. Can you just kind of go through, the reasons for the increase there?

Bradford Rich

Okay, now are you talking about the first quarter’s actual results or the ASM estimates that I just gave you?

Alex Louanzen [Ph] - Bank of America Merrill Lynch

The ones that you just gave for the remainder of the year

Bradford Rich

Yes, so I think it’s really three issues. Generally we’re seeing a slight improvement in the schedules relative to the minimum. So, in the prior estimates we gave, seeing that in most cases, particularly in the Delta system, we were really being taken right to the minimums required in the contract, that’s pretty much what we had estimated and we have seen some slight improvements in that.

To add to that, now that we’re seeing, we now have a better look at the schedules for the ten additional ASA 900s that are coming in the system; as well as the additional seven CRJ-200s that we have scheduled into the prorate operation that I just referenced. So, when you combine those three issues, that’s what’s driving the slight improvement in the ASM estimates.

Alex Louanzen [Ph] - Bank of America Merrill Lynch

Okay great, thanks very much.

Bradford Rich

You’re welcome.

Operator

Our next question on comes from Duane Pfenningwerth of Raymond James.

Duane Pfenningwerth - Raymond James

Hi, thanks. Good morning. Just regarding your costs, I guess controllable costs in the first quarter, I don’t know if you broke it out explicitly, but on costs that you can control, what’s the magnitude of that and given that potential margin improvement, how long before you actually take some steps? How long could it take for you to actually get the business to the right size, more inline with the level of business that you’re seeing today?

 

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