ExpressJet Holdings, Inc. (XJT)
Q2 2010 Earnings Call Transcript
August 11, 2010 10:00 am ET
Kristy Nicholas – Director, Communications
Tom Hanley – President and CEO
Phung Burns – CFO
Helane Becker – Dahlman Rose
Ross Barclays [ph] – Silvian Investments [ph]
Previous Statements by XJT
» ExpressJet Holdings Inc Q1 2010 Earnings Call Transcript
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» ExpressJet Holdings, Inc. Q3 2009 Earnings Call Transcript
Welcome to the ExpressJet second quarter 2010 earnings call. My name is Sandra, and I will be your operator for today’s call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded.
I will now turn the call over to Ms Kristy Nicholas. Ms Nicholas, you may begin.
Thank you Sandra. Good morning everyone, and thank you all for joining the ExpressJet Holdings second quarter conference call. On the call we have Tom Hanley, President and Chief Executive Officer; and Phung Burns, Chief Financial Officer to discuss the results and take questions.
This call does not constitute an offer to sell or solicitation of any offers to buy any securities or a solicitation of any vote or approval. The transaction will be submitted to the stockholders of ExpressJet Holdings, Inc. for their approval. In connection with the transaction, ExpressJet will file its statement with the Securities and Exchange Commission. A definitive proxy statement will also be mailed to stockholders of ExpressJet. ExpressJet and SkyWest Inc also plan to file other documents with the SEC regarding the transaction.
Investors and security holders of ExpressJet are urged to read the proxy statement, and other relevant documents that will be filed with the SEC carefully and in their entirety when they become available because they will contain important information about ExpressJet and the transaction.
Investors and stockholders will be able to obtain free copies of the proxy statement and other documents containing important information about ExpressJet and SkyWest Inc once such documents are filed with the SEC, through the Web site maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by ExpressJet will be available free of charge on ExpressJet's Web site at www.expressjet.com under the tab "Investors" or by contacting ExpressJet's Investor Relations Department at (832) 353-1409.
Copies of the documents filed with the SEC by SkyWest Inc will be available free of charge on SkyWest Inc Web site at www.skywest.com under the tab "Invest" or by contacting SkyWest Inc Investor Relations Department at (435) 634-3203. None of the information included on any Web site maintained by ExpressJet, SkyWest Inc or any of their affiliates, or any other Internet Web site linked to any such Web site, is incorporated by reference in or otherwise made a part of this press release.
ExpressJet, SkyWest Inc and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of ExpressJet in connection with the transaction. Information about the directors and executive officers of ExpressJet is set forth in its proxy statement for its 2010 annual meeting of stockholders, which was filed with the SEC on April 2, 2010. Information about the directors and executive officers of SkyWest Inc is set forth in its proxy statement for its 2010 annual meeting of stockholders, which was filed with the SEC on March 12, 2010. These documents can be obtained free of charge from the sources indicated previously.
Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, in the transaction will be contained in the proxy statement and other relevant materials to be filed with the SEC.
Portions of this call may contain forward-looking statements not limited to historical facts, but reflecting our current beliefs, expectations, our intentions regarding future events. A number of factors could cause actual results to differ materially from those in the forward-looking statements. Additional information concerning risk factors that could affect our results is described in our SEC filings, including our 2009 10-K.
During this call certain non-GAAP financial disclosures may be made relating to our performance measures. In accordance with SEC rules, we will provide reconciliations to our most directly comparable GAAP financial measures on our Web site at www.expressjet.com. Tom and Phung will cover the operating and financial results for the quarter, then we will take questions.
Now, I would like to introduce Tom Hanley.
Thank you Kristy. Good morning everyone, this is Tom Hanley, and I appreciate you joining us this morning. My goal for today’s call are to review our results and to allow ample time for Q&A. I am sure there are many questions given our announcement last week.
Here is the outline I intend to follow on today’s call; our performance under the capacity purchase agreements with Continental and United, our progress on operation Green Light, and finally, our expectations regarding information and timing of the acquisition by SkyWest Inc.
I would like to start off by recognizing the hard work and dedication of our employees. Their commitment allowed the airlines to fly approximately 18% more block hours than last year, expand the operation with United to 32 aircrafts, and to continue operating one of the most reliable fleets in the regional industry. Looking at our aircraft allocation, we flew eight fewer aircrafts in the Continental Express operation. As you may recall, we executed an amendment to the Continental CPA at the end of 2009, which resulted in the reallocation of eight of our aircrafts from the Continental CPA to our United Express operation. Reallocation of these eight aircrafts provides ExpressJet with two growth opportunities, new flying with United, and higher utilization of the remaining Continental fleet.