Porter IPO news

[Valhalla]

Porter to mull financing options/IPO in coming monthsJune 10, 2011 | 08:33
Reuters

Porter Airlines, an upstart challenger to Air Canada and WestJet, will decide if it needs to raise funds for expansion in a month or two, and if so, whether it will opt for an initial public offering, its CEO said Thursday.

Porter, which flies to destinations in Eastern Canada and the United States from the downtown Billy Bishop Toronto City Airport, suspended plans a year ago for a C$120 million ($124 million) IPO because of roller-coaster equity markets.

The carrier said in March it is more likely than not to raise funds in the second half of the year either through an IPO or a private placement. "We are still 30-60 days or so away from being at that point where we would say anything definitive in that regard,'' CEO Robert Deluce said.

"If we find we need (funds) and the market isn't quite suitable then we will find a different way of doing it. But we are not at that point. We haven't made a decision,'' he told Reuters in an interview.

Deluce said Porter, which began operations in 2006 and is Canada's third-largest scheduled carrier, did not need additional funds right now and had to take delivery of only one more aircraft this year and that was not until December.

Demand for funds could change if the airline is awarded additional take-off and landing slots at the island airport, he said, although such an award by the Toronto Port Authority was ''months away.''

Porter, as well as Air Canada, the country's biggest carrier, have expressed an interest in the 16 slots awarded last year to then Continental Airlines, which the carrier did not take up after its merger with United Airlines.

Air Canada returned to the Billy Bishop Airport in May, breaking Porter's monopoly at the hub, which is conveniently located for business travelers just minutes from Toronto's downtown core.

The extra competition is not hurting Porter, which had its best load factor for May last month, Deluce said.

"I suspect Air Canada is drawing a certain number of new customers to this airport who have been loyal to them through Pearson,'' he said, referring to Toronto's larger and more established airport some 45 minutes from the downtown.

[pointyertoes]

...and cue the nay-saying trolls, with nary a clue as to how well the operation is actually going...

[IronMan]

nobody gives a crap about it...so worry no more

[ILS26_Steep]

Well they are going to need funds somehow to start-up the Halifax base. That is going to cost some sort of capital to get going. Money which they don't have unless someone (Investor) puts out more money, or if Deluce get's the "NO" he will go IPO.

So ask yourself, when the IPO funds run out, then WHAT? You can't IPO again.

[True North]

So ask yourself, when the IPO funds run out, then WHAT? You can't IPO again.

Well, then you have to start making money.

[RustyDeuce]

...and cue the nay-saying trolls, with nary a clue as to how well the operation is actually going...

How do you know how well it's going financially? Your own CEO said everything was profitable but the last IPO proved he was lying out of his teeth.

[Valhalla]

How do you know how well it's going financially? Your own CEO said everything was profitable but the last IPO proved he was lying out of his teeth.

Did he?? I never read that quote. Maybe you can show us the quote where he said that. He said things like "cash flow positive" and growing load factors and increasing revenues, but where is the quote?? Care to back up your accusation?

[mbav8r]

Didn't we go around the same circle last time the IPO was mentioned? I'm pretty sure someone provided the quotes you're asking for. Either way don't you get tired of beating the same dead horse?
Reuters) - Porter Airlines, a small Canadian regional carrier that has found a way to make money in hard times, expects to stay profitable this year and to keep expanding in 2010, its chief executive said on Monday.
http://www.reuters.com/article/2009/09/ ... RH20090921

[Valhalla]

Either way don't you get tired of beating the same dead horse?

You're correct on that one. But that was not a direct quote from Deluce...

[mbav8r]

With all due respect, if the media says "its chief executive said on Monday" is that not the same as putting quotation marks around the previous statement? The word said, means he said it.

say
1    [sey] verb, said, say·ing, adverb, noun, interjection

–verb (used with object)
1.
to utter or pronounce; speak: What did you say? I said “Hello!”

[Squid]

Lol,
I can appreciate your loyalty Val, but face it. It's not that great. Fuel is over budget by 30 percent right now, business gravy travel is slow over the summer and I'll take a stab that over 50 percent of the pilot group has applications out. Guess we will standby for that ipo. And get the tale of the tape.

[Canadian Skyhawk]

ILS26_Steep wrote:
So ask yourself, when the IPO funds run out, then WHAT? You can't IPO again.

Well, actually, a company can do an SPO - Secondary Public Offering - to keep financing itself. In fact, a company can theoretically lose money ad infinitum and continue getting funds from the public markets through ongoing public offerings (rememeber the "I" in IPO stand for Initial - it doesn't mean there won't be others) or from private investors, as long as someone is prepared to give them money. Many successful companies today (Rogers Communications comes to mind) lost money for decades and kept getting rrefinanced before making positive returns for investors. Of course, others also simply died.

Porter only became profitable in the last 12 months, as their load factors crossed the magic 49% threshold of profitability on the Q400. Load factors in May 2011 were 59% - well into the profitable range. All said, that's not bad for a company that didn't exist five years ago and is now Canada's third largest scheduled carrier - and that's with a major recession. I wish Porter well, as I do for any startup airline in Canada.

Now, can someone explain to me why some AvCanada members keep dumping on poor old Porter? I thought that the more successful airlines we had, the better prospects we would all have. Happy flying!

[pointyertoes]

ILS26_Steep wrote:
So ask yourself, when the IPO funds run out, then WHAT? You can't IPO again.

Now, can someone explain to me why some AvCanada members keep dumping on poor old Porter? I thought that the more successful airlines we had, the better prospects we would all have. Happy flying!

My suspicion is that (a) certain poster(s) here and in other forums have invested heavily in competitor airlines (that rhyme with Breast Jet), and perhaps stand to gain when their stock price increases on public suspicion that certain upstart airlines may be doing badly.

Using all the right airline economic lexicon doesn't help either... notwithstanding that (a) certain poster(s) really have no clue as to the financial metrics of said upstart airline as it is a private venture.

Those of us who do know how the oft-bashed airline is doing are not worried about our future.

[Valhalla]

With all due respect, if the media says "its chief executive said on Monday" is that not the same as putting quotation marks around the previous statement? The word said, means he said it.

say
1    [sey] verb, said, say·ing, adverb, noun, interjection

–verb (used with object)
1.
to utter or pronounce; speak: What did you say? I said “Hello!”

Read the whole article, not just the headline that you quoted. But hey, maybe you're right. If the media says it's true, it must be true.

[rudder]

Unless the next IPO values the company at one half (or less) of the last IPO, then it will be equally (un)successful.

[pointyertoes]

Unless the next IPO values the company at one half (or less) of the last IPO, then it will be equally (un)successful.

...thank you Warren Buffet.

[Arctic84]

Unless the next IPO values the company at one half (or less) of the last IPO, then it will be equally (un)successful.

...thank you Warren Buffet.

Porters musings about an IPO are wishful thinking. There is absolutley nothing stoping Porter from releasing independently audited
quarterly results as a private company. WestJet did it for 2 years prior to their IPO, but they were profitable. I guarantee if Porter were making money, they would be showing the world the KPMG audited proof.

[.......]

Anybody ever heard of the "live and let live" philosophy?

The ever going syndrome of "my d**k's bigger than yours" is well and alive on Avcanada!!!

[rudder]

Unless the next IPO values the company at one half (or less) of the last IPO, then it will be equally (un)successful.

...thank you Warren Buffet.

OK then. What is the enterprise value of PAH? Now adjust that number downwards to factor in risk. Now you have the value of the company. Another formula is to take annualised earnings and multiply by 12. What is that number? Neither one of them is anything that remotely approaches $450M. The market knew that last time and it will figure it out next time too.

[mbav8r]

Valhalla, you're quite right about the media, but in this instance the headline of the article appears to be a quote from Deluce. Thats it, you asked for proof your boss mislead or lied and I provided the proof. If he was misquoted, he should have asked for a retraction, who knows maybe he did.
I am not secretly hoping for the demise of Porter, just calling a spade a spade. I, in fact don't trust any CEOs, I believe they'll all lie to you and the public for their own personal finacial gain.
I do hope Porte makes a profit and you all stay gainfully employed.

[aerosexual]

ILS26_Steep wrote:
So ask yourself, when the IPO funds run out, then WHAT? You can't IPO again.

Porter only became profitable in the last 12 months, as their load factors crossed the magic 49% threshold of profitability on the Q400. Load factors in May 2011 were 59% - well into the profitable range.

Wow, I had no idea that profitability is based on the aircraft load factor only. I guess it has nothing to do with other factors like ticket prices, fixed and variable costs, etc etc. I guess Porter is profitable!

[Valhalla]

Valhalla, you're quite right about the media, but in this instance the headline of the article appears to be a quote from Deluce. Thats it, you asked for proof your boss mislead or lied and I provided the proof. If he was misquoted, he should have asked for a retraction, who knows maybe he did.

The thing is, what you provided is not a quote. It's the headline of a news article where Deluce makes many quotes, but does not directly discuss profitability.

I, in fact don't trust any CEOs, I believe they'll all lie to you and the public for their own personal finacial gain.

If that's your opinion, then I can't really argue with that. In fact, there may be some truth to that comment.

[Valhalla]

ILS26_Steep wrote:
So ask yourself, when the IPO funds run out, then WHAT? You can't IPO again.

Porter only became profitable in the last 12 months, as their load factors crossed the magic 49% threshold of profitability on the Q400. Load factors in May 2011 were 59% - well into the profitable range.

Wow, I had no idea that profitability is based on the aircraft load factor only. I guess it has nothing to do with other factors like ticket prices, fixed and variable costs, etc etc. I guess Porter is profitable!

I really don't see what the point of this debate is. If Porter plans to go public, they will reveal audited financials for all to see. All this bickering about whether or not Porter is profitable is all just pointless speculation.

I personally don't believe another IPO attempt will be made unless the company can show a profit, but that's just my opinion.

[ILS26_Steep]

Porter only became profitable in the last 12 months, as their load factors crossed the magic 49% threshold of profitability on the Q400. Load factors in May 2011 were 59% - well into the profitable range.

Wow, I had no idea that profitability is based on the aircraft load factor only. I guess it has nothing to do with other factors like ticket prices, fixed and variable costs, etc etc. I guess Porter is profitable!

I really don't see what the point of this debate is. If Porter plans to go public, they will reveal audited financials for all to see. All this bickering about whether or not Porter is profitable is all just pointless speculation.

I personally don't believe another IPO attempt will be made unless the company can show a profit, but that's just my opinion.

Even if you have a Load factor of 59% for May that doesn't really mean the airline made money. Porter has been advertising 30% seat sales every month now. Before it has only been every other month or once a quarter. It's a bit skeptical to say they made money with a 59% load factor, more like, how much money they made to be exact! Maybe nothing. As you add staff and more aircraft to the fleet, your break even point is going to increase!

[stupido]

.....Hey Steep.....do you still fly ILS 26 steep.....