ExpressJet Profit?

Derg

New Arizona, Il Duce/Warlord
Staff member
ExpressJet traffic down, revises 3Q loss to profit
Wednesday November 12, 2:31 pm ET
ExpressJet, operator of feeder service for Continental, reports October traffic fell

DALLAS (AP) -- ExpressJet Holdings Inc. said Tuesday it flew 29 percent fewer miles with paying customers in October but its planes were more full after it cut capacity from a year ago.

The company, which operates regional flights for Continental Airlines Inc. but grounded its own airline and ended regional flights for Delta Air Lines Inc., flew 620 million revenue passenger miles in October, down from 872 million a year ago.

Load factor, or average occupancy, rose to 75.4 percent from 71.8 percent a year earlier, as capacity was cut 32 percent from October 2007.

On Tuesday, Houston-based ExpressJet said it earned $5 million, or 32 cents per share, in the third quarter instead of the loss of $4.8 million, or 30 cents per share, that it reported last week.

The difference was due to a gain from modifying terms of convertible notes due in 2023, which was raised to $27.8 million from the originally reported $11.8 million. The revision caused changes in other figures, such as tax and interest expenses.

ExpressJet missed a Monday deadline for filing its third-quarter financial report with the SEC because of the issue of assessing fair-market value of the notes. The company also said this week that it planned to drop its outside auditor, Ernst & Young LLP, beginning with the audit for calendar 2009.

Shares of ExpressJet fell 19 cents to $1.51 in Wednesday afternoon trading.
 

Alchemy

Well-Known Member
Too bad it takes a $100 million dollar profit to trigger a full wage snapback. I can't figure out why that was the best the xjt negtiating comittee could do on snapbacks. But, like the article says, this was a one time profit from "note conversions".
 

Captain_Bob

Well-Known Member
Too bad it takes a $100 million dollar profit to trigger a full wage snapback. I can't figure out why that was the best the xjt negtiating comittee could do on snapbacks.
There's a lot more snapback provisions than that... and of course a graduated profit scale/snapback provision.
 

granlistillo

Well-Known Member
Last para should kill any good news out of xjet.

Missing a SEC filing deadline and firing your auditors is a huge red flag.
 

WAFlyBoy

Well-Known Member
Last para should kill any good news out of xjet.

Missing a SEC filing deadline and firing your auditors is a huge red flag.
Again, why?

Missing a filing because of asset/liability valuation issues isn't necessarily a red flag, especially in light of the recent re-negotiation of their notes.

There are many reasons a firm might decide to fire it's auditors, cost being near the top of the list. E&Y probably isn't giving ExpressJet discount pricing. Or maybe they want to migrate E&Y into a consultant role, which they cannot do if they're the auditors.
 

jima7011

The Fire Chief
The company also said this week that it planned to drop its outside auditor, Ernst & Young LLP, beginning with the audit for calendar 2009.
uh oh--there goes the last of my stock value....

:(
 

Kingairer

'Tiger Team' Member
Im just taking a quick glance at this, but it looks like more proof that companies can cook the books to make a case for anything. One week its we're going out of buisiness so take a paycut, the next theyre reporting a profit.
 

WAFlyBoy

Well-Known Member
Im just taking a quick glance at this, but it looks like more proof that companies can cook the books to make a case for anything. One week its we're going out of buisiness so take a paycut, the next theyre reporting a profit.
How do you figure?
 

granlistillo

Well-Known Member
Again, why?
Not going to get into a stupid debate about this. It certainly isn't good news. Missing SEC filing deadlines puts a company on a path to delisting. Not saying this is gonna happen, but it is not something for a company's management to do lightly. Firing or replacing auditors, certainly doesnt reinforce investor confidence in a company facing difficulties.

If you are suggesting that this is business as usual, then I would have to strongly disagree.
 
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