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SkyWest (SKYW) Sees Prelim. Q2 Loss vs. Expected Profit

July 28, 2014 8:11 AM EDT

SkyWest (NASDAQ: SKYW) said it expects its financial results for the quarter ended June 30, 2014, to be lower than it previously anticipated. Due primarily to the reasons discussed below, SkyWest currently estimates that its financial results will range from between a net loss of $(14.0) million to $(12.0) million resulting in an estimated loss per diluted share of $(0.28) to $(0.23). SkyWest cautioned however, that these estimates are preliminary and are subject to modification or revision in the course of completing SkyWest's quarterly financial review procedures.

*** The Street is looking for Q2 EPS of $0.22 and revs of $800 million.

There are three primary factors that contributed to SkyWest's determination of the estimated results as outlined above. First, SkyWest made certain tax true-ups in its tax provision as a result of changes in its estimates of annual pretax income or loss from those previously estimated. Second, SkyWest recorded valuation allowances of certain tax receivables and write-downs of ground handling equipment and other assets. Third, SkyWest experienced reduced revenues from missed incentives under its flying contracts with its major partners as a result of lower on-time performance and completion of flights and SkyWest implemented new Federal Aviation Administration rules, as required, early in 2014 regarding initial crew qualifications and flight and duty rest rules which are resulting in increased crew costs.

A more detailed explanation of the foregoing items, as well as other factors which affected SkyWest's operating performance and financial results for the quarter ended June 30, 2014 will be given when SkyWest announces its reviewed financial results, which is currently planned to occur on August 6, 2014.



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