Skywest (SKYW) has reported 28.40 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $34.79 million, or $0.65 a share in the quarter, compared with $27.09 million, or $0.52 a share for the same period last year.
Revenue during the quarter went up marginally by 0.44 percent to $765.42 million from $762.08 million in the previous year period. Gross margin for the quarter expanded 124 basis points over the previous year period to 68.14 percent. Total expenses were 90.03 percent of quarterly revenues, down from 91.89 percent for the same period last year. This has led to an improvement of 186 basis points in operating margin to 9.97 percent.
Operating income for the quarter was $76.30 million, compared with $61.81 million in the previous year period.
Commenting on the results, Chip Childs, SkyWest, Inc. chief executive officer said, "Despite the weather challenges we faced at the beginning of the quarter, our dedicated teams worked hard to minimize passenger disruption. The solid operating performance, combined with continued execution on our fleet transition, delivered a stronger than expected March which is reflected in our improved profitability this quarter. Our first quarter results reflect the outstanding work our professionals do each day to provide an excellent product to our customers."
Working capital drops significantlySkywest has witnessed a decline in the working capital over the last year. It stood at $166.08 million as at Mar. 31, 2017, down 34.95 percent or $89.23 million from $255.31 million on Mar. 31, 2016. Current ratio was at 1.22 as on Mar. 31, 2017, down from 1.35 on Mar. 31, 2016. Days sales outstanding went down to 4 days for the quarter compared with 9 days for the same period last year.
Debt increases substantiallySkywest has witnessed an increase in total debt over the last one year. It stood at $2,614.92 million as on Mar. 31, 2017, up 34.85 percent or $675.82 million from $1,939.09 million on Mar. 31, 2016. Total debt was 50.99 percent of total assets as on Mar. 31, 2017, compared with 40.29 percent on Mar. 31, 2016. Debt to equity ratio was at 1.90 as on Mar. 31, 2017, up from 1.26 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 3.11 for the quarter from 3.49 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
