Pinnacle holds $42.5 million face amount of unsecured claims against Northwest Airlines, and is evaluating options to monetize this non-core asset. Pinnacle’s Board of Directors may increase the amount authorized under the share repurchase program in future periods, depending on the Company’s working capital needs and its ability to monetize its remaining unsecured claims against Northwest.
In addition to the recent growth opportunities, Pinnacle’s low-risk strategy requires little in the way of capital expenditures. Over the last three years, Pinnacle has generated a cumulative $86 million in cash flow from operations and needed only $21 million for capital expenditures. As a result, it ended 2006 with $72 million in short-term investments and a relatively low (for an airline) $121 million in debt.