SkyWest, Inc. (SKYW) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $270.24 million, or $ 5.22 a share in the quarter, against a net profit of $40.45 million, or $0.78 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $28.71 million, or $0.54 a share compared with $25.24 million or $0.49 a share, a year ago.
Revenue during the quarter went up marginally by 0.70 percent to $758.02 million from $752.74 million in the previous year period. Gross margin for the quarter expanded 99 basis points over the previous year period to 66.81 percent. Operating margin for the quarter stood at negative 53.36 percent as compared to a positive 6.94 percent for the previous year period.
Operating loss for the quarter was $404.46 million, compared with an operating income of $52.21 million in the previous year period.
Chip Childs, SkyWest, Inc. chief executive officer, said, "Our improved 2016 results were largely due to the addition, removal or redeployment of over 125 aircraft across our base fleet of 652 aircraft. The evolution of our fleet continues to reduce our risk, improve our capital flexibility and ensure we adapt to our major partners' long and short-term needs. Our ability to execute these significant transitions is only possible with the exceptional work of the 19,000 professionals across our organizations."
Working capital increases
SkyWest, Inc. has recorded an increase in the working capital over the last year. It stood at $299.81 million as at Dec. 31, 2016, up 12.63 percent or $33.63 million from $266.18 million on Dec. 31, 2015. Current ratio was at 1.40 as on Dec. 31, 2016, up from 1.35 on Dec. 31, 2015.
Debt increases substantially
SkyWest, Inc. has witnessed an increase in total debt over the last one year. It stood at $2,545.51 million as on Dec. 31, 2016, up 32.04 percent or $617.61 million from $1,927.90 million on Dec. 31, 2015. Total debt was 49.55 percent of total assets as on Dec. 31, 2016, compared with 40.14 percent on Dec. 31, 2015. Debt to equity ratio was at 1.88 as on Dec. 31, 2016, up from 1.28 as on Dec. 31, 2015.
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