Pinnacle Airlines: modeFinance Credit Report

Monday, 02 April 2012

PINNACLE AIRLINES CORP.

MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Company name

PINNACLE AIRLINES CORP.

Identification number If you want to know more, ASKMORE modeFinance’s credit report.

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Almost every day millions of people around the world are wondering the real creditworthiness of the companies with which they are in business. Every day these questions remain unanswered. modeFinance now aims to answer these questions in a simple, complete and immediate way.

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United States of America

ZIP code and city

38132 - MEMPHIS

Address

Suite 111 +1 901 348 4100 www.pncl.com

Legal form Account

Consolidated

Incorporation date

2003

NACE 2 Sector

5110 - Passenger air transport

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ASKMORE is the modeFinance product which gives the chance to evaluate the credit risk for every company from all around the world.

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Country

Listed Status

Active

MORE Credit limit

3,500,000 e

plans 3 types of reports:

Turnover (th e)

31/12/2010

31/12/2009

31/12/2008

763,534

586,914

621,388

Rating s-peek

Plus

Basic TM

ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making.

It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis.

This report type is ideally suited for decisions on transactions with each level of credit risk.

B

B

CCC

Probability of default

3.80%

3.80%

16.00%

Confidence Level

100%

100%

100%

11.54

11.61

19.23

1.09

1.09

1.05

Current Ratio

0.83

1.14

0.98

Quick Ratio

0.69

1.03

0.88

TM

Solvency ratios Leverage ratio Total asset/Total liabilities Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%)

4.12

6.75

3.19

10.69

40.94

-19.73

Asset turnover

0.68

0.66

0.77

Interest paid weight

0.66

0.52

1.24

Gross Profit/Operating revenue

0.23

0.25

0.24

1.51

1.80

1.02

Return on equity ROE (%)

Interest Coverage ratios EBIT interest coverage ratio

Analysis and trend of financial strength

modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM

key askMORETM is a registered mark of modeFinanceTM

MORE Credit Rating

D not available

non return

C

CC

extremly pathological pathological

CCC

B

BB

BBB

A

AA

AAA

high danger

weak

sufficient

adequate

good

very strong

extremely strong

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Sector Analysis Company

Healthy

Balanced

Vulnerable

Risky

Solvency ratios Leverage ratio

11.54

0.54

2.59

4.35

-2.31

Total asset/Total liabilities

1.09

2.85

1.39

1.15

0.89

Current Ratio

0.83

2.35

1.14

0.99

0.65

Quick Ratio

0.69

1.96

1.05

0.85

0.56

Return on investement ROI (%)

4.12

18.34

6.97

0.26

-15.69

Return on equity ROE (%)

10.69

21.21

10.10

-4.02

-100.70

Asset turnover

0.68

1.99

1.24

1.48

1.84

Interest paid weight

0.66

0.00

0.17

0.02

-0.06

Gross Profit/Operating revenue

0.23

0.20

0.20

0.09

0.02

1.51

391.30

5.07

0.05

-11.25

Liquidity ratios

Profitability and economic equilibrium ratios

Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)

12

12

9

10

8

Days Sales Outstanding (DSO)

14

31

32

28

34

Days Payable Outstanding (DPO)

16

15

29

27

45

Cash Conversion Cycle (DIO + DSO - DPO)

10

19

15

6

-5

-

83

249

171

108

B

A

BB

B

C

Numer of analyzed companies (Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 5110 with financial data of year 2010.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Sector Analysis - Graphs

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Balance Sheet BALANCE SHEET (th e)

31/12/2010

31/12/2009

31/12/2008

Accounting practice

Local GAAP

Local GAAP

Local GAAP

0.748

0.69416

0.71855

1,121,101

895,057

810,306

968,558

753,869

681,268

33,352

21,524

23,717

Tangible fixed assets

699,483

507,478

517,304

Other fixed assets

235,723

224,867

140,247

152,543

141,188

129,038

Stocks

25,578

13,517

12,291

Debtors

29,472

23,961

22,720

Other current assets

97,493

103,711

94,027

74,863

63,567

49,917

89,381

70,968

40,047

173

158

162

89,208

70,810

39,886

Exchange rate USD - EUR Total assets Fixed assets Intangible fixed assets

Current assets

Cash & cash equivalent Shareholders funds Capital Other shareholders funds Total liabilities

1,031,720

824,089

770,258

Non current liabilities

847,458

700,538

637,923

Long term debt

496,889

360,429

431,432

Other non-current liabilities

350,569

340,110

206,491

Current liabilities

184,262

123,551

132,335

Loans

57,998

27,245

26,741

Creditors

33,203

16,872

21,866

Other current liabilities

93,061

79,434

83,728

1,121,101

895,057

810,306

31/12/2010

31/12/2009

31/12/2008

Total shareh. funds & liab.

NET DEBT (th e) Short term debts

57,998

27,245

26,741

Long term debt

496,889

360,429

431,432

Cash & cash equivalent Net debt

74,863

63,567

49,917

480,024

324,107

408,257

31/12/2010 Working capital Net Current Assets

31/12/2009

31/12/2008

21,847

20,605

13,145

-31,720

17,638

-3,297

31/12/2010

31/12/2009

31/12/2008

Days Sales Of Inventory (DIO)

12

8

7

Days Sales Outstanding (DSO)

14

15

13

Days Payable Outstanding (DPO)

16

10

13

Cash Conversion Cycle (DIO + DSO - DPO)

10

13

7

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Income Statement INCOME STATEMENT (th e)

31/12/2010

31/12/2009

31/12/2008

Accounting practice

Local GAAP

Local GAAP

Local GAAP

0.748

0.69416

0.71855

751,363

580,486

614,830

29.4

-5.6

-

12,171

6,427

6,557

Operating revenue / turnover

763,534

586,914

621,388

Total operating costs

717,507

530,889

588,617

Costs growth (%)

35

-10

-

Service costs

-

-

-

Material costs

-

-

-

Costs of employees

-

-

-

EBITDA

75,309

81,971

61,560

Depreciation

29,282

25,947

28,789

Exchange rate USD - EUR Sales Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized

EBIT Financial P/L

46,027

56,025

32,771

-30,406

-26,705

-38,942

Financial revenue

1,378

4,043

-7,135

Financial expenses

31,784

30,748

31,807

30,527

31,141

32,009

15,620

29,320

-6,172

-

-

-

Extr. and other revenue

-

-

-

Extr. and other expenses

-

-

-

-

-

-

Taxation

6,069

265

1,730

P/L for period

9,552

29,055

-7,902

Interest paid P/L before tax Extr. and other P/L

P/L before tax + Extr. and other P/L

31/12/2010

31/12/2009

31/12/2008

Costs of Good Sold

584,344

437,252

473,597

Gross Profit

179,190

149,661

147,791

Other Operating Expenses

133,163

93,637

115,020

31/12/2010

31/12/2009

31/12/2008

38,834

55,001

20,887

-

-

-

Cash flow Added value

31/12/2010 Number of employees

7,619

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

31/12/2009 5,106

31/12/2008 4,204

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Evolutions and trends

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Qualitative information Full overview

Pinnacle Airlines Corporation is an airline holding company primarily engaged in the management and administration of its subsidiaries. It is publicly - held and trades on the NASDAQ under the symbol PNCL. The company’s corporate headquarters is located in Memphis, Tennessee in the United States of America. As a holding company, Pinnacle Airlines Corporation provides group planning and strategy. In particular, the company also exercises financial control over its subsidiaries, settles their general policy and appoints their top managements, and as well as provides central services. Pinnacle Airlines Corporation operates through its two wholly owned subsidiaries: Pinnacle Airlines Inc. and Colgan Air Inc. Pinnacle Airlines Inc., the jet - based operating subsidiary of Pinnacle Airlines Corporation. Pinnacle Airlines Inc., operates as Northwest Airlink, flies more than 700 daily Northwest Airlink flights to more than 100 cities in the United States and Canada on its modern fleet of 139 Canadair Regional Jets. Colgan Air Inc. operates 39 Saab 340 and 11 Beech 1900 regional airliners and operates more than 350 daily flights. Colgan Air is affiliated with three major airlines and operates as Continental Connection, United Express and US Airways Express. The company’s subsidiaries operate as independent entities with separate missions. Each day, the company’s operating units flies more than 1,000 daily flights, transporting in excess of 27,000 customers to 134 cities and towns in North America.

History

Not available.

Primary business line

Airline holding company primarily engaged in the management and administration of its subsidiaries.

Secondary business line

Not available.

Main activity

Services.

Secondary activity

Not available.

Main products and services

Not available.

Size estimate

Not available.

Strategy, organization and policy

Not available.

Strategic alliances

Not available.

Membership of a network

Not available.

Main brand names

Not available.

Main domestic country

United States Of America.

Main foreign countries or regions

Not available.

Main production sites

Not available.

Main distribution sites

Not available.

Main sales representation sites

Not available.

Main customers

Not available.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Auditor/Advisor/Bank name

type

address

ERNST & YOUNG LLP

Auditor

-

Computershare Investor Services

Transfer Agent

-

Board name

date of birth

nationality

function

Ms Susan M Coughlin Mr Ian Massey Mr James E Mcgehee Mr Sean E Menke

-

-

Independent Director Independent Director Independent Director President, Chief Executive Officer, Director

Mr Thomas S Schreier Mrs R. Philip Shannon Mr Alfred T Spain Mr Nicholas R Tomassetti

-

-

Independent Director Independent Director Independent Director Independent Director

Sharehoders (the first twenty shareholders ordered by Direct %)) Rating:

MOHNISH PABRAI Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

15.26 -

Total Assets (MIL $) Number of Employees Information date

Total % Address: Not available

US 14.64

-

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees

3,591 41,050

Information date

2011/09

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2009/03

Rating:

FMR LLC via its funds Country ISO code NACE Rev. 2, Core code Direct %

-

Operating revenue (MIL $)

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

DALAL STREET, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

US 10.37

Information date

Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US -

Operating revenue (MIL $) Total Assets (MIL $)

Rating:

172 7,976 548 2011/09

-

8.39 -

Number of Employees Information date

US 4.50

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US

Operating revenue (MIL $)

2009/03

Rating:

DIMENSIONAL FUND ADVISORS LP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %

D

US 8.56

APOLLO CAPITAL MANAGEMENT LP

5 2 2011/09

Rating:

APOLLO GLOBAL MANAGEMENT LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

-

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees

A 37 2,187 260 2011/09

Address: Not available

Rating:

CATALYST CAPITAL ADVISORS LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

3.94

Total Assets (MIL $) Number of Employees Information date

Total % Address: Not available

US -

-

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees

2,018 1,830 9,500

2.82

Information date

2011/12

Rating:

BB

US 2.49

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

9,081 179,896 10,100 2011/09

BLACKROCK, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

0 2 2011/09

Rating:

VANGUARD GROUP, INC. THE via its funds Country ISO code NACE Rev. 2, Core code Direct %

-

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

MESON CAPITAL PARTNERS LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

US 2.09

Information date

US 1.82

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

2012/01

-

THE INDEPENDENT ORDER OF FORESTERS via its funds

Rating:

Country ISO code NACE Rev. 2, Core code

Operating revenue (MIL $) Total Assets (MIL $)

Direct % Total % Address: Not available

-

Rating:

RENAISSANCE TECHNOLOGIES LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

-

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees

CA 0.67

1,245 948 42 2011/12

-

Number of Employees Information date

2011/09

BRIDGEWAY CAPITAL MANAGEMENT INC via its funds

Rating:

Country ISO code NACE Rev. 2, Core code Direct % Total %

US 0.56

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US

Operating revenue (MIL $)

2011/09

Address: Not available

Rating:

RBF CAPITAL, LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

0.42

Total % Address: Not available

3 2011/09

Rating: US -

-

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees

0.34

Information date

US 0.34

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

79,635 1,873,878 266,000 2011/09

Rating:

WHITEBOX ADVISORS LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

0

Total Assets (MIL $) Number of Employees Information date

CITIGROUP INC via its funds Country ISO code NACE Rev. 2, Core code Direct %

-

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-

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

6 84 2011/09

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

WILLIAMS FINANCIAL GROUP, INC via its funds Country ISO code NACE Rev. 2, Core code Direct %

US -

Total % Address: Not available

0.33

Information date

US 0.31

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US -

Operating revenue (MIL $) Total Assets (MIL $)

Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

0 2 2011/12

-

0.24

Number of Employees Information date

US 0.22

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

1 10 2011/12

Rating:

CHARLES SCHWAB CORPORATION via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %

-

Rating:

SPARK LP via its funds

1 5 2011/09

Rating:

GEODE CAPITAL MANAGEMENT, LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

-

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees

4,740 108,553 14,100 2011/12

Address: Not available

Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:

MESABA AVIATION, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO -

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

95 1,300 2011/04

Rating:

BB

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

846 1,289 54 2011/07

Rating:

COLGAN AIR, INC. Country ISO code NACE Rev. 2, Core code Direct % Total % PINNACLE AIRLINES, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %

-

US 100.00 100.00

US MO -

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292 3,700 2010/07 -

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

ASKMORE rating guide General vision

A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors.

The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements.

The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm.

The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge.

The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating.

This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating scale Rating class

Rating macro class

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent

AAA

AA

Assessment

economic and financial flow and fund equilibrium.

Healthy

The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight.

The company has a high solvency. The company is however more susceptible to the adverse effects of changes in

A

circumstances and economic conditions than companies in higher rated categories.

Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.

BBB Balanced

A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.

BB

The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic

B

conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.

Vulnerable

CCC

A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.

CC

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase.

Risky

C

The company shows considerable pathological situations. commitments is very low.

D

The company has not any longer the capacity to meet its financial commitments.

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The company’s capacity to meet its financial

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Fundamental Credit Rating Ratios Analysis area

Ratio

Assessment This measures the level of total liabilities of the company in comparison

Leverage ratio

with equity.

Solvency ratios

Financial ratios

Assets to debt

This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.

Fixed Assets coverage ratio

This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.

Current ratio

This measures whether a company has sufficient short-term assets to cover its short-term liabilities.

Liquidity ratios This compares current liabilities only to those assets that can be readily

Quick ratio

turned into cash.

Return on Investement(ROI)

This measures the profitability of company investments without regard to the way the investment is financed.

Return on Equity(ROE)

This measures the profitability of the equity.

Asset turnover

This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.

Profit margin

This indicates the profitability of sales.

Interest Paid coverage

This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.

Profitability and economic ratios

Interest coverage ratio

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit

MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.

Probability of default e Confidence Level

In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default.

As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default.

The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Confidence =

P Available Information P Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company.

For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

PINNACLE AIRLINES CORP.

Monday, 02 April 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Notes and disclaimer NOTES

modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.

DISCLAIMER

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Contacts

Info web

modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com

Phone

+39 040 3755337

Company Products Where

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741