mesa-8k_20191211.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 11, 2019

 

Mesa Air Group, Inc.
(Exact name of registrant as specified in its charter)

 

 

Nevada

001-38626

85-0302351

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(I.R.S. Employer
Identification Number)

 

 

410 North 44th Street, Suite 700

 

85008

 

 

Phoenix, Arizona  

 

(Zip Code)

 

 

(Address of principal executive offices)

 

 

 

 

(602) 685-4000

(Registrant's telephone number, including area code)

 

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading Symbol(s)

 

Name of Each Exchange of Which Registered

Common Stock, no par value

 

MESA

 

Nasdaq Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company   

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 

 

 


 

Item 2.02  Results of Operations and Financial Condition.

On December 11, 2019, Mesa Air Group, Inc. issued a press release announcing its financial and operating results for its fourth fiscal quarter and fiscal year ended September 30, 2019. A copy of the press release is furnished as Exhibit 99.1 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits.

Exhibit Number

 

Description

 

 

 

99.1

 

Press Release, dated December 11, 2019, issued by Mesa Air Group, Inc.

 

 

 


 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: December 11, 2019

MESA AIR GROUP, INC.

 

 

 

 

By:

/s/ Brian S. Gillman

 

Name:

Brian S. Gillman

 

Title:

Executive Vice President and General Counsel

 

 

mesa-ex991_6.htm

 

Exhibit 99.1

Mesa Air Group Reports Fourth Quarter and Full-Year Fiscal 2019 Results

December 11, 2019

PHOENIX, December 11, 2019 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) today reported fourth quarter and full-year fiscal 2019 financial and operating results.

Highlights

 

Q4 EPS of $0.35 and Adjusted EPS1 of $0.36

 

Fiscal Year 2019 EPS of $1.36 and Adjusted EPS1 of $1.64

 

Extended our $35 million secured credit facility for three years

 

Year over Year Increases:

 

o

Pre-tax income up 301% from $15.8 million to $63.3 million

 

o

Net income up 43% from $33.3 million to $47.6 million

 

o

Adjusted Pre-tax Income1 up 78% from $43.0 million to $76.4 million

 

o

Adjusted EBITDA1 up 27% from $164.8 million to $208.7 million

 

o

Adjusted EBITDAR1 up  12% from $233.7 million to $260.9 million

 

o

Block hours up 11.0% due to increased utilization

 

o

Contract Revenue up 7% from $639.3 million to $682.8 million

Recent Update

 

Signed CPA with United Airlines for 20 E175s, 12-year term, replacing 20 CRJ-700s to be leased

 

Extended term on 42 E175s for an additional five years

Fourth Quarter

Mesa’s Q4 2019 results reflect net income of $12.2 million, or $0.35 per diluted share, compared to net income of $19.4 million, or $0.65 per diluted share for Q4 2018.  Mesa’s Q4 2019 pre-tax income was $17.1 million, compared to $26.6 million for Q4 2018.  In addition, Mesa’s Adjusted EBITDA1 for Q4 2019 was $50.8 million, compared to $59.3 million in Q4 2018 and Adjusted EBITDAR1 was $61.9 million, compared to $73.6 million in Q4 2018. Mesa operated 115,175 block hours during Q4 2019, an increase of 2.4% from Q4 2018 of 112,475. Operationally, the Company ran a 99.0% controllable completion factor, which was the same as Q4 2018, and a 96.9% total completion factor, which includes weather and other uncontrollable cancellations, compared to 97.6% in Q4 2018.

Full Year

Mesa reported net income of $47.6 million, or $1.36 per diluted share for the 2019 fiscal year, compared to net income of $33.3 million, or $1.32 per diluted share for the 2018 fiscal year.  Excluding special items for both periods adjusted net income1 was $57.5 million or $1.64 per diluted share for the 2019 fiscal year compared to $30.4 million or $1.20 per diluted share for the 2018 fiscal year. Mesa’s fiscal year 2019 pre-tax income was $63.3 million, compared to $15.8 million for the 2018 fiscal year.  Excluding special items, adjusted pre-tax income1 was $76.4 million for fiscal year 2019, compared to $43.0 million for the 2018 fiscal year. In addition, Mesa’s Adjusted EBITDA1 was $208.7 million in fiscal year 2019, compared to $164.8 million


in the 2018 fiscal year and Adjusted EBITDAR1 was $260.9 million in fiscal year 2019, compared to $233.7 million in the 2018 fiscal year. Operationally, we ran a 99.4% controllable completion factor compared to 99.2% in 2018 and a 97.0% total completion factor, which includes weather and other uncontrollable cancellations, compared to 97.7% in 2018.

On December 3, 2019, the company announced it will be adding 20 new Embraer E175 LL aircraft to its United Express fleet. The aircraft will be owned and financed by Mesa and be covered under a 12-year capacity purchase agreement. Deliveries are scheduled to begin May 2020 and expected to be completed by the end of 2020. In addition to the new aircraft, the contract for 42 existing E175s, which are owned by United, has been extended an additional five years. The 18 Mesa-owned E175s are contracted through 2028. As part of the deal, Mesa will lease its 20 CRJ-700 aircraft to another United Express carrier.

“We made meaningful progress across the board this year, from pilot hiring and training to our maintenance resources” said Jonathan Ornstein, Chairman and Chief Executive Officer. “After safety, performance remains our top priority for both our American Eagle and United Express operations in 2020. We continue to invest in staying ahead of the pilot and mechanic hiring curve which we believe, in addition to our industry leading cost structure, contributed to United awarding Mesa with a long term contract for 20 new E175s. We appreciate all of our employees and thank them for their professionalism and dedication each day.”

Mike Lotz, President and Chief Financial Officer, continued, “Year over year we have made significant improvement in earnings, primarily a result of double-digit block hour growth with effectively the same fleet count. During the year, we purchased and financed ten CRJ-700 aircraft previously leased reducing the number of leased aircraft from third parties to 18. We also extended our $35 million secured credit facility for three additional years at lower interest rates.”  

“Our employees delivered improved operating results this year compared to last year while flying 11 percent more block hours,” said Brad Rich, Executive Vice President and Chief Operating Officer. “Although we faced a number of operational challenges this year, some of which were out of our control, we see continued improvement across our American and United operations.  In light of our current performance, we expect the balance of 2020 to show further year over year operational improvement as a result of new initiatives. Since gaining access to additional spare aircraft in our American fleet, the November controllable completion factor was 99.7% and, through the first 10 days of December, we have not had a controllable cancel. ”

 

 

1 

See Reconciliation of non-GAAP financial measures

 


Outlook

The Company is providing the following guidance for Fiscal Year 2020 and 2021:

EPS, Block Hours, Scheduled Heavy Engine and Airframe Maintenance, Pass-through Maintenance Expense – Actual and Forecast (unaudited)

 

Fully diluted EPS

 

 

 

Low

 

 

High

 

FY 2020

 

$

1.50

 

 

$

1.80

 

FY 2021

 

$

1.90

 

 

$

2.30

 

 

Block Hours

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

Total

 

FY 2019 Actual

 

 

115,000

 

 

 

112,030

 

 

 

114,042

 

 

 

115,175

 

 

 

456,247

 

FY 2020 Guidance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Low

 

 

114,500

 

 

 

109,000

 

 

 

112,000

 

 

 

115,500

 

 

 

451,000

 

High

 

 

117,000

 

 

 

111,000

 

 

 

114,000

 

 

 

118,000

 

 

 

460,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Scheduled Heavy Engine and Airframe Maintenance

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

Total

 

FY 2019 Actual

 

$

4.1

 

 

$

10.3

 

 

$

13.9

 

 

$

12.5

 

 

$

40.8

 

FY 2020 Guidance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Low

 

$

15.5

 

 

$

15.5

 

 

$

7.0

 

 

$

7.0

 

 

$

45.0

 

High

 

$

20.5

 

 

$

20.5

 

 

$

8.0

 

 

$

8.0

 

 

$

57.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass-through Maintenance Expense

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

Total

 

FY 2019 Actual

 

$

4.0

 

 

$

2.3

 

 

$

5.2

 

 

$

7.8

 

 

$

19.3

 

FY 2020 Guidance

 

$

7.0

 

 

$

8.0

 

 

$

8.0

 

 

$

9.0

 

 

$

32.0

 

 

 

 


Fleet Count

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY '19 Q4

 

 

FY '20 Q1

 

 

FY '20 Q2

 

 

FY '20 Q3

 

 

FY '20 Q4

 

 

 

FY '21

 

 

 

 

Qtr Ended

 

 

Qtr Ended

 

 

Qtr Ended

 

 

Qtr Ended

 

 

Qtr Ended

 

 

 

FY Ended

 

 

 

 

Sep '19

 

 

Dec '20

 

 

Mar '20

 

 

Jun '20

 

 

Sep '20

 

 

 

Sep '21

 

Fleet Count

Partner

 

(Actual)

 

 

(Forecast)

 

 

(Forecast)

 

 

(Forecast)

 

 

(Forecast)

 

 

 

(Forecast)

 

   E-175

United

 

 

60

 

 

 

60

 

 

 

60

 

 

 

62

 

 

 

68

 

 

 

 

80

 

   CRJ-900

American

 

 

62

 

 

 

60

 

 

 

59

 

 

 

59

 

 

 

59

 

 

 

 

59

 

   CRJ-700

United

 

 

20

 

 

 

20

 

 

 

20

 

 

 

18

 

 

 

12

 

 

 

 

 

Total CPA

 

 

 

142

 

 

 

140

 

 

 

139

 

 

 

139

 

 

 

139

 

 

 

 

139

 

Non-CPA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   CRJ-700

Leased

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

8

 

 

 

 

20

 

   CRJ-900

Unassigned

 

 

2

 

 

 

4

 

 

 

5

 

 

 

5

 

 

 

5

 

 

 

 

5

 

   CRJ-200

Unassigned

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

 

1

 

Total Fleet

 

 

 

145

 

 

 

145

 

 

 

145

 

 

 

147

 

 

 

153

 

 

 

 

165

 

 

Reconciliation of non-GAAP financial measures

Although these financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”), certain non-GAAP financial measures may provide investors with useful information regarding the underlying business trends and performance of Mesa’s ongoing operations and may be useful for period-over-period comparisons of such operations. The tables below reflect supplemental financial data and reconciliations to GAAP financial statements for the three and twelve months ended September 30, 2019 and the three and twelve months ended September 30, 2018. Readers should consider these non-GAAP measures in addition to, not a substitute for, financial reporting measures prepared in accordance with GAAP. These non-GAAP financial measures exclude some, but not all items that may affect the Company’s net income. Additionally, these calculations may not be comparable with similarly titled measures of other companies.

 


Reconciliation of GAAP versus Non-GAAP Disclosures (unaudited)

(In thousands, except for per diluted share)

 

 

Three months ended September 30, 2019

 

 

 

Income Before

Taxes

 

 

Income Tax

(Expense)/Benefit

 

 

Net

Income

 

 

Net Income

per

Diluted Share

 

GAAP Income

 

 

17,059

 

 

 

(4,816

)

 

 

12,243

 

 

$

0.35

 

FY19 Adjustments (7)

 

 

 

 

 

487

 

 

 

487

 

 

 

 

 

Adjusted Income

 

 

17,059

 

 

 

(4,329

)

 

 

12,730

 

 

$

0.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

13,607

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

(313

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

20,465

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

50,818

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft Rent

 

 

11,103

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAR

 

 

61,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30, 2018

 

 

 

Income Before

Taxes

 

 

Income Tax

(Expense)/Benefit

 

 

Net

Income

 

 

Net Income

per

Diluted Share

 

GAAP Income/(Loss)

 

 

26,646

 

 

 

(7,251

)

 

 

19,395

 

 

$

0.65

 

FY18 Adjustments (7)

 

 

 

 

 

(819

)

 

 

(819

)

 

 

 

 

Adjusted Income

 

 

26,646

 

 

 

(8,070

)

 

 

18,576

 

 

$

0.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

15,274

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

(85

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

17,420

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

59,255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft Rent

 

 

14,334

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAR

 

 

73,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Reconciliation of GAAP versus Non-GAAP Disclosures (unaudited)

(In thousands, except for per diluted share)

 

 

Twelve months ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before

Taxes

 

 

Income Tax

(Expense)/Benefit

 

 

Net

income

 

 

Net Income

per

Diluted Share

 

GAAP Income

 

 

63,286

 

 

 

(15,706

)

 

 

47,580

 

 

$

1.36

 

FY19 Adjustments (1)(4)

 

 

13,156

 

 

 

(3,265

)

 

 

9,891

 

 

 

 

 

Adjusted Income

 

 

76,442

 

 

 

(18,971

)

 

 

57,471

 

 

$

1.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

55,717

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

(1,501

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

77,994

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

208,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft Rent

 

 

52,206

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAR

 

 

260,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve months ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before

Taxes

 

 

Income Tax

(Expense)/Benefit

 

 

Net

income

 

 

Net Income

per

Diluted Share

 

GAAP Income/(Loss)

 

 

15,829

 

 

 

17,426

 

 

 

33,255

 

 

$

1.32

 

FY18 Adjustments (2)(3)(5)(6)

 

 

27,165

 

 

 

(29,996

)

 

 

(2,831

)

 

 

 

 

Adjusted Income

 

 

42,994

 

 

 

(12,570

)

 

 

30,424

 

 

$

1.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

56,867

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

(114

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

65,031

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

164,778

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft Rent

 

 

68,892

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAR

 

 

233,670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

1)

Includes lease termination expense of $9.5 million related to the acquisition of ten CRJ-700 aircraft previously leased during the fiscal year ended September 30, 2019

 

2)

Includes lease termination expense of $15.1 million related to the acquisition of nine CRJ-900 aircraft previously leased during the fiscal year ended September 30, 2018

 

3)

Includes an adjustment of $11.1 million in General and Administrative expense related to an increase in accrued compensation as a result of the increase in the fair value of the Company’s common stock during the fiscal year ended September 30, 2018

 


 

4)

Includes adjustment for loss on extinguishment of debt of $3.6 million related to repayment of the Company’s Spare Engine Facility during the fiscal year ended September 30, 2019

 

5)

Includes adjustment for $1.0 million of financing fees written off during the fiscal year ended September 30, 2018

 

6)

Includes adjustment for tax benefit resulting from the Tax Cuts and Jobs Act enacted during Q1 2018.   The Act reduces the corporate tax rate to 21 percent, effective January 1, 2018

 

7)

Includes adjustment for tax expense resulting from changes in various State income tax rates that were enacted throughout the year

 


Mesa Air Group will host a conference call with analysts on Wednesday, December 11 at 4:30pm EDT/2:30pm PDT. The conference call number is 888-469-2054 (Passcode: Phoenix). The conference call can also be accessed live via the web by visiting https://edge.media-server.com/m6/p/ndxbvumn. A recorded version will be available on Mesa’s website approximately two hours after the call for approximately 14 days.

About Mesa Air Group, Inc.

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 147 cities in 47 states, the District of Columbia, Canada, Mexico, Cuba and the Bahamas. As of November 30th, 2019, Mesa operated a fleet of 145 aircraft with approximately 749 daily departures and 3,400 employees. Mesa operates all of its flights as either American Eagle or United Express flights pursuant to the terms of capacity purchase agreements entered into with American Airlines, Inc. and United Airlines, Inc.

Forward-Looking Statements

This news release contains forward looking statements, including, but not limited to, (i) the fully diluted EPS forecast of Mesa for fiscal 2020 and fiscal 2021, (ii) the block hours, scheduled heavy engine and airframe maintenance, and pass-through maintenance expense forecast of Mesa for the four quarters of fiscal 2020, (iii) the fleet forecast for the four quarters of fiscal 2020 and year ended fiscal 2021, (iv) our ability to stay ahead of the pilot and mechanic hiring curve, and (v) continued improvement in operational performance for the balance of fiscal 2020 as a result of new initiatives. These forward-looking statements are based on Mesa’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global, regional or local economic, business, competitive, market, regulatory and other factors, many of which are beyond Mesa’s control. Any forward-looking statement in this release speaks only as of the date of this release. Mesa undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

 


MESA AIR GROUP, INC.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts) (Unaudited)

 

 

Three Months Ended

September 30,

 

 

Twelve Months Ended

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract revenue

 

$

172,248

 

 

$

168,444

 

 

$

682,834

 

 

$

639,264

 

Pass-through and other

 

 

15,582

 

 

 

9,088

 

 

 

40,523

 

 

 

42,331

 

Total operating revenues

 

 

187,830

 

 

 

177,532

 

 

 

723,357

 

 

 

681,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flight operations

 

 

55,243

 

 

 

53,463

 

 

 

210,879

 

 

 

209,065

 

Fuel

 

 

155

 

 

 

149

 

 

 

588

 

 

 

498

 

Maintenance

 

 

57,010

 

 

 

39,118

 

 

 

196,514

 

 

 

193,164

 

Aircraft rent

 

 

11,103

 

 

 

14,334

 

 

 

52,206

 

 

 

68,892

 

Aircraft and traffic servicing

 

 

994

 

 

 

950

 

 

 

3,972

 

 

 

3,541

 

General and administrative

 

 

12,406

 

 

 

10,314

 

 

 

50,527

 

 

 

53,647

 

Depreciation and amortization

 

 

20,465

 

 

 

17,420

 

 

 

77,994

 

 

 

65,031

 

Lease termination

 

 

 

 

 

 

 

 

9,540

 

 

 

15,109

 

Total operating expenses

 

 

157,376

 

 

 

135,748

 

 

 

602,220

 

 

 

608,947

 

Operating income (loss)

 

 

30,454

 

 

 

41,784

 

 

 

121,137

 

 

 

72,648

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expenses) income, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(13,607

)

 

 

(15,274

)

 

 

(55,717

)

 

 

(56,867

)

Interest income

 

 

313

 

 

 

85

 

 

 

1,501

 

 

 

114

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

(3,616

)

 

 

 

Other income (expense)

 

 

(101

)

 

 

51

 

 

 

(19

)

 

 

(66

)

Total other (expense), net

 

 

(13,395

)

 

 

(15,138

)

 

 

(57,851

)

 

 

(56,819

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before taxes

 

 

17,059

 

 

 

26,646

 

 

 

63,286

 

 

 

15,829

 

Income tax expense (benefit)

 

 

4,816

 

 

 

7,251

 

 

 

15,706

 

 

 

(17,426

)

Net income (loss)

 

$

12,243

 

 

$

19,395

 

 

$

47,580

 

 

$

33,255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.35

 

 

$

0.66

 

 

$

1.37

 

 

$

1.34

 

Diluted

 

$

0.35

 

 

$

0.65

 

 

$

1.36

 

 

$

1.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

35,003

 

 

 

29,359

 

 

 

34,764

 

 

 

24,826

 

Diluted

 

 

35,067

 

 

 

29,904

 

 

 

35,064

 

 

 

25,257

 

 

 


MESA AIR GROUP, INC.

Condensed Consolidated Balance Sheets

(In thousands, except shares) (Unaudited)

 

 

September 30,

2019

 

 

September 30,

2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

68,855

 

 

$

103,311

 

Marketable securities

 

 

 

 

 

19,921

 

Restricted cash

 

 

3,646

 

 

 

3,823

 

Receivables - less allowance for doubtful accounts

 

 

23,080

 

 

 

14,290

 

Expendable parts and supplies - less obsolescence allowance

 

 

21,337

 

 

 

15,658

 

Prepaid expenses and other current assets

 

 

40,923

 

 

 

40,914

 

Total current assets

 

 

157,841

 

 

 

197,917

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

 

1,273,585

 

 

 

1,250,829

 

INTANGIBLES, NET

 

 

9,532

 

 

 

11,341

 

LEASE AND EQUIPMENT DEPOSITS

 

 

2,167

 

 

 

2,598

 

OTHER ASSETS

 

 

8,792

 

 

 

9,703

 

TOTAL

 

 

1,451,917

 

 

 

1,472,388

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Current portion of debt and capital leases

 

$

165,900

 

 

$

155,170

 

Accounts payable

 

 

49,930

 

 

 

54,307

 

Accrued compensation

 

 

11,988

 

 

 

12,208

 

Other accrued expenses

 

 

28,888

 

 

 

29,696

 

Total current liabilities

 

 

256,706

 

 

 

251,381

 

 

 

 

 

 

 

 

 

 

NONCURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt and capital leases - excluding current portion

 

 

677,423

 

 

 

760,177

 

Deferred credits

 

 

12,134

 

 

 

15,393

 

Deferred income taxes

 

 

55,303

 

 

 

39,797

 

Other noncurrent liabilities

 

 

24,483

 

 

 

31,173

 

Total noncurrent liabilities

 

 

769,343

 

 

 

846,540