- Mike Pyle has misled investors by covering up the grounding of the planes this winter. Mike Pyle also sold stock to investors this winter.
- Complicit sell-side firms earned big fees on stock sales to investors
- Multiple sources with personal knowledge contradict Mike Pyle
- Mike Pyle needs to RESIGN
- Sell-side needs to do independent research, not parrot Pyle’s fiction
- If EIF has nothing to hide, then break out R1 financial statements
- R1 needs a new CFO capable of preparing financial statements
- Rollups with inadequate management who have poor track records tend to go the way of Concordia, Biovail, Valeant, Cineplex Odeon etc.
Transport Canada, why not set the record straight?
The truth, corroborated by many
- Transport Canada did a Program Validation Inspection at the end of 2016. The first 3 planes failed inspection.
- “Transport approached the VP of Maintenance and said that they had grounded the first three aircraft, and asked if the whole fleet was in the same shape. In response, Perimeter voluntarily grounded the whole fleet, wherever the aircraft were located, and had either maintenance or a crew member do a Daily Inspection to verify the Airworthiness of each aircraft.”
- But again the planes failed inspection.
- “This was again brought to the VP of Maintenance, and Perimeter's response was to ground the fleet again instead of losing their Air Operator's Certificate. It is true that the certificate was never pulled by Transport; instead they issued an ultimatum to the company after their second strike in as many days.”
- “There were no weather cancellations; there were no storms at this time, barely any snow, and nothing out of the ordinary.”
CEO Mike Pyle’s story
“This past winter, we lost 1,415 flights due to bad weather, more than double what we lost in 2016. And I'd like to clarify that that's simply cancellations from weather. That's not anything related to our capacity or mechanical issues or those sorts of things, simply from weather.”
Dov Gertzulin's DG Capital is having a strong year. According to a copy of the hedge fund's letter to investors of its DG Value Partners Class C strategy, the fund is up 36.4% of the year to the end of June, after a performance of 12.8% in the second quarter. The Class C strategy is Read More
“To be clear, the cancellations had nothing to do with the fleet. They were weather.”
“Inclement weather was more acute for Perimeter during the busy Christmas season, which resulted in flight delays and cancellations.”
Full testimony from former maintenance exec (one testimony among many):
“Transport Canada came in to do a Program Validation Inspection at the end of 2016. The inspection of paperwork went well and the last piece of the audit was an aircraft inspection. They requested 9 aircraft to inspect and when they carried them out found issues on the first 3 aircraft they inspected. Tires were worn past limits, and passenger seats were not securely attached. Transport approached the VP of Maintenance and said that they had grounded the first three aircraft, and asked if the whole fleet was in the same shape. In response, Perimeter voluntarily grounded the whole fleet, wherever the aircraft were located, and had either maintenance or a crew member do a Daily Inspection to verify the Airworthiness of each aircraft. This was completed, and each aircraft returned to service. The next day Transport Canada inspectors audited the same 9 aircraft. On the first they inspected they again found worn tires and unsafe passenger seats. This was again brought to the VP of Maintenance, and Perimeter's response was to ground the fleet again instead of losing their Air Operator's Certificate. It is true that the certificate was never
pulled by Transport; instead they issued an ultimatum to the company after their second strike in as many days. There was a mad panic after this, as there was no direction of how to proceed. Each aircraft was inspected and every single one had to have a multitude of parts replaced before they were deemed airworthy. The Dash 8 fleet had almost every single cabin window replaced, most tires were replaced, and every single aircraft had to have hundreds of dents mapped and recorded, a system that was not in place before the audit. There were no weather cancellations; there were no storms at this time, barely any snow, and nothing out of the ordinary. Since that time the books will show that well over a hundred million dollars has been sunk into Perimeter in "AOG" (aircraft on ground) parts. Or at least the books should show this. Perimeter had been selling off it's inventory of parts to offset the cost of maintenance, and attempt to make the books look better. After the audit it spent more on parts than it had ever made selling them as everything had to be ordered "AOG". There are still many aircraft in the fleet that have not yet been returned to service”
Why would Pyle and the sell-side cover up business problems in Dec ’16?
“WINNIPEG, Manitoba – December 12, 2016 – Exchange Income Corporation (TSX: EIF) (the “Corporation”) announced today that it has entered into an agreement to sell, on a bought deal basis, 2,003,000 common shares (the “Shares”) from treasury to a syndicate of underwriters co-led by National Bank Financial Inc., Laurentian Bank Securities Inc. and CIBC Capital Markets, and including BMO Capital Markets, RBC Capital Markets Inc., Scotiabank, TD Securities Inc., Raymond James Ltd., AltaCorp Capital Inc., Canaccord Genuity Corp., and Macquarie Capital Markets Canada Ltd. (the “Underwriters”). The Shares will be offered at a price of $42.45 per Share”
EIF needs to restate and expense safety costs
- “Perimeter had been selling off its inventory of parts to offset the cost of maintenance and attempt to make the books look better”
- “After the audit it spent more on parts than it had ever made selling them (>$100m) as everything had to be ordered ‘AOG’”
- EIF incorrectly capitalized these expenses to show higher profit.
- “There are still many aircraft in the fleet that have not yet been returned to service.”
Can R1’s CFO even count? R1 needs to break out separate financials prepared by a new CFO
Was he really Controller?
This article from Feb 2015 refers to him as “District Director” http://stdrd.ru/crane-worldwide-logistics-growing-in-columbus-thanks-to-auto- parts-makers-columbus-business-first/
Was Finance really part of his title?
This article calls him “Director of Customer Service” http://parcelindustry.com/print-article-1251-permanent.html
Alder Lane Farm LLC publishes periodic, time sensitive, fact-based financial news and analysis to the public and its readers. Our reporting is designed to help the public interpret and understand publicly available information about the economic health of particular companies and their share value, and to understand the impact that a fuller disclosure of information may have on share prices. We publish when there are newsworthy items relevant to the companies analyzed.
We rely on public disclosures of the companies under review and other companies in the same or similar sectors. We also conduct interviews with employees, former employees, officers, and others associated with the companies we analyze, when possible. We review national and international news services, internet reporting, and social media and may rely on reporting by others to prepare our report. We discuss the companies with other analysts who may have positive or negative information and opinions about the companies under review and then analyze the information and opinions received to determine whether the information and opinions are based on available factual information or disclosures. We also may obtain information from, and rely on, information from sources who wish to remain confidential and whose information, but not identity, may be included in this report.
We welcome comments from the companies we review, from other newspapers or analysts, and from the public. We will publish corrections or explanations submitted if those are found to be based in fact and are credible. We conduct most of our analysis without active participation by, or with limited input from, the subject companies and thus we recognize that those companies may disagree with our conclusions or may believe there are facts that were not available to us when we published our report. We make efforts to obtain accurate and complete information in preparing this report. However, we do not warrant that the information and analysis is correct.
Comments or requests for corrections are therefore welcomed.
Any requests for corrections to this report should be directed to the publisher at PO Box 578, Pengrove, CA 94951. The request for correction should identify the statements challenged and a demand that the statements be corrected.
You should consider this report along with all other information and analysis that is available, as well as your own research. We are not responsible for any trading losses you believe may have been caused by your reliance on this report. It is not investment advice or a recommendation or solicitation to buy any securities. We are not registered as an investment advisor in any jurisdiction.
We take investment positions consistent with our own opinions in the companies we cover. If the report contains an overall negative assessment, then that means we stand to profit if the company’s stock declines. We may buy, sell, cover or otherwise change the form or substance of our position in the company and we do not publicly announce our investment decisions or changes in our investment positions.
Article By Mayday EIF Dividend