Skip to main content

Pinnacle Airlines Corp (

PNCL

)

Q2 2011 Earnings Call

August 4, 2011, 10:00 am ET

Executives

Brian Hunt - VP & General Counsel

Sean Menke - President & CEO

Ted Christie - CFO

Ronald Kay - VP, Finance & Treasurer

Doug Shockey - COO

Analysts

Richa Talwar - Deutsche Bank

Duane Pfennigwerth - Evercore Partners

Presentation

Operator

TheStreet Recommends

Compare to:
Previous Statements by PNCL
» Pinnacle Airlines CEO Discusses Q1 2011 Results - Earnings Call Transcript
» Pinnacle Airlines CEO Discusses Q4 2010 Results - Earnings Call Transcript
» Pinnacle Airlines Management Discusses Q3 2010 Results - Earnings Call Transcript
» Pinnacle Airlines Corp. Q2 2010 Earnings Call Transcript

Good day ladies and gentlemen, and welcome to the Q2 2011 Pinnacle Airlines Corporation Earnings Conference Call. My name is Sesinia and I'll be your coordinator for today. At this time, all participants are in listen-only mode. We will be facilitating a question-and-answer session towards the end of today’s conference. (Operator instructions) As a reminder, this conference is being recorded for replay purposes.

I will now turn the presentation over to your host for today’s conference Mr. Brian Hunt, Vice President and General Counsel of Pinnacle Airlines Corp. Please proceed, sir.

Brian Hunt

Thank you. Good morning, everyone, and welcome to the second quarter 2011 earnings conference call of Pinnacle Airlines Corp. On behalf of the nearly 8,000 employees of Pinnacle, I would like to thank you for your interest in our company.

This call is being presented live over the Internet via webcast from our website, www.pncl.com. It will also be available on our site for 30 days after this call.

Our presentation today will contain various forward-looking statements that are based on assumptions and information currently available to management. Although, we believe that the expectations reflected in such statements are reasonable, we can give no assurance that such expectations will prove to have been correct.

Such statements are also subject to certain risks and uncertainties set forth in our filings with the Securities and Exchange Commission. These filings are available to investors at our website or online from the Commission. Should any of these risks or uncertainties materialize or should underlying assumptions prove erroneous, actual results may vary materially from the results that were anticipated or projected. The company does not intend to update these forward-looking statements before its next required filing with the SEC.

I will now turn the call over to Sean Menke, our new President and CEO.

Sean

Menke

Thanks Brian. I have a whole host of people in the room with me this morning and I would like to introduce a couple of them because they will actually be partaking in the Q&A session. First, is Ron Kay, our Vice President and Treasurer, the other gentleman is Ted Christie, our Chief Financial Officer, Doug Shockey, our Chief Operating Officer, Tom Schmidt, our VP of [FP&A]

Before I get into the details of the call, I would like to say how pleased I am to join the nearly 8,000 professionals at Pinnacle Airlines Corp. As everyone on the call is well aware, the airline industry continues its transformation. It isn’t something that is visible day-to-day, but it is clearly evident when you look back five years and definitely 10. It is this transformation in my belief that Pinnacle Airlines Corp has an opportunity to become a stronger pillar in the regional marketplace in partaking the transformation of the industry over the next several years. This was a primary driver on why I elected to join the organization.

That isn’t to say that we don’t have our own work cutout for us as we will discuss. But once we successfully complete our integration and other important projects, we will have positioned ourselves to properly grow the business for years to come.

Before I pass the call over to Ted Christie, our new CFO to discuss the financial details of the quarter, I would like to pass along my thanks to all the aviation professionals that work for Pinnacle Airlines Corp inclusive of our three operating divisions, Pinnacle, Mesaba and Colgan. These key members have done an exceptional job during the quarter in a difficult operating quarter.

As we all know, when the operations is not performing well it is typically those individuals on the frontline that carry the weight in getting it done. Without a doubt, my team members have done this during the quarter and I am grateful.

Moving on to the quarter; results released earlier this morning were disappointment. Operational performance issues driven by pilot staffing was the primary culprit. It not only impacted us from a crew pay perspective, but also a penalty perspective and our ability to actually operate flights on behalf of our partners. We will spend more time on this later in the call, but simply put these are things that we cannot do going forward.

At this time, I am going to pass the call over to Ted Christie, our new Chief Financial Officer. As many of you know Ted and I have a history together. When the CFO position opened with Peter’s resignation, I knew exactly who I wanted to fill this role. Ted is an exceptional talent. He will no doubt help me lead this organization along with the other executives in defining and executing the long-term strategy of growth and profitability. Ted, welcome and I look forward to our next chapter.

With that, I would like to hand the call over to Ted to lead us on the review of our second quarter financial results. Ted?

Ted Christie

Thanks Sean. Well it’s been busy two weeks. I am very excited to be here and walk you through the Q2 financial results in just a minute. As Sean mentioned, I am joined today by our VP and Treasurer Ron Kay. Ron will be assisting me in providing color during the Q&A session for those questions and topics that may require more than nine day’s of institutional knowledge. We will try to make sure to introduce ourselves as we answer questions, but I wanted to make sure you are aware that we would be tag-teaming the discussion.

Read the rest of this transcript for free on seekingalpha.com