On Feb. 27, Pinnacle Airlines (NASDAQ:PNCL) released fourth-quarter and full-year earnings for the periods ended Dec. 31.

  • For the quarter, net income soared to $36.7 million, or $1.67 per share, versus prior-year numbers of $9.9 million, or $0.45 per share.
  • However, on an apples-to-apples basis, the results were slightly disappointing. Excluding charges related to a settlement in the bankruptcy cases of Northwest Airlines and Mesaba Aviation, as well as some other one-time items, Pinnacle earned $12.3 million in the quarter, compared with $13.2 million in the year-ago quarter.
  • A major positive development was the amended agreement with Northwest allowing Pinnacle to fly for other major carriers. It may target Continental (NYSE:CAL), AMR (NYSE:AMR) or American Airlines, and United Airlines parent UAL (NASDAQ:UAUA).
  • Pinnacle also sold $335 million of unsecured claims owed by Northwest for $0.84 on the dollar, or $283 million. This removes the credit risk from Pinnacle's balance sheet -- a risk the company couldn't afford to take.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005






Operating Income Excluding Provisions




Net Income








Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005


Operating Margin Excluding Provisions




*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights


Q4 2006

Q4 2005


Cash + ST Invest.




Accounts Rec.




Net PPE*





Q4 2006

Q4 2005


Accounts Payable




Long-Term Debt




*Plant, property, and equipment

Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2006

Q4 2005


Cash From Ops.




Cash From Investing Activities




Cash From Financing Activities




Find out why Fools always follow the money.

Related Foolishness:

Need new ideas for your money? Talk stocks with other investors and our analysts when you give our newsletters a try.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Emil Lee is an analyst and a disciple of value investing. He doesn't own shares in any of the companies mentioned above. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.