SkyWest, Inc. (NASDAQ:SKYW) Q4 2022 Earnings Conference Call February 2, 2023 4:30 AM ET

Company Participants

Robert Simmons - Chief Financial Officer

Eric Woodward - Chief Accounting Officer

Chip Childs - President and Chief Executive Officer

Wade Steel - Chief Commercial Officer

Conference Call Participants

Michael Linenberg - Deutsche Bank

Savanthi Syth - Raymond James

Dwayne Pfennigwerth - Evercore ISI

Helane Becker - Cowen

Catherine O'Brien - Goldman Sachs

Operator

Good afternoon. My name is Devin, and I will be your conference operator today. At this time, I would like to welcome everyone to the SkyWest, Inc. Fourth Quarter and Annual 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. [Operator Instructions]

Thank you for your patience. Mr. Rob Simmons, you may begin the conference.

Robert Simmons

Thanks everyone for joining us on the call today. And as the operator indicated, this is Rob Simmons, SkyWest's Chief Financial Officer. On the call with me today are Chip Childs, President and Chief Executive Officer; Wade Steel, Chief Commercial Officer; and Eric Woodward, Chief Accounting Officer.

I'd like to start today by asking Eric to read the Safe Harbor, then I will turn the time over to Chip for some comments. Following Chip, I will take us through the financial results, then Wade will discuss the fleet and related flying arrangements. Following Wade, we will have the customary Q&A session with our sell-side analysts. Eric?

Eric Woodward

Today's discussion contains forward-looking statements that represent our current beliefs, expectations and assumptions regarding future events and are subject to risks and uncertainties. We assume no obligation to update any forward-looking statement. Actual results will likely vary and may vary materially from those anticipated, estimated or projected for a number of reasons. Some of the factors that may cause such differences are included in our 2021 Form 10-K and other reports and filings with the Securities and Exchange Commission.

And now, I'll turn the call over to Chip.

Chip Childs

Thank you, Rob and Eric. Good afternoon everyone and thanks for joining us on the call here today. Today, SkyWest reported a pretax loss of $62 million or $0.93 per share in the fourth quarter of 2022. Reflecting in those results were $69 million of deferred revenue related to successfully amending the majority of our flying contracts, $36 million noncash impairment on 10 CRJ700 aircraft and an $11 million accelerated lease expense. We expect moving forward, we will be discussing deferred revenue regularly until the fleet utilization normalizes.