Mesa Air Group Reports Fourth Quarter and Full-Year Fiscal 2021 Results
Financial Summary:
- Q4 pre-tax loss of
$9.9 million , net loss of$7.5 million or$(0.21) per diluted share - Q4 adjusted net loss¹ of
$2.1 million or$(0.06) per diluted share, which excludes mark-to-market non-cash losses on investments in Archer Aviation’s equity securities
- Full-year pretax income of
$22.4 million , net income of$16.6 million or$0.43 per diluted share - Full-year adjusted net income¹ of
$24.6 million , or$0.64 per diluted share
Fiscal Year Q4 Highlights:
- Invested in electric aircraft company,
Heart Aerospace (“Heart”) - Promoted
Torque Zubeck to Chief Financial Officer - Subsequent to quarter end, Mesa announced a new agreement with drone manufacturer SkyDrop (formerly Flirtey)
Fiscal Year Q4 Results:
Mesa’s Q4 2021 results reflect a net loss of
Revenue in Q4 2021 was
Mesa’s Adjusted EBITDA¹ for Q4 2021 was
Operationally, the Company ran a controllable completion factor of 99.1% for American and 99.8% for United during Q4 2021. This is compared to a controllable completion factor of 99.8% for American and 99.8% for United during Q4 2020. This excludes cancellations due to weather and air traffic control.
With respect to a total completion factor that includes all cancellations, Mesa reported a total completion factor of 97.3% for American and 98.1% for United during Q4 2021. This is compared to a total completion factor of 99.1% for American and 97.5% for United during Q4 2020.
Full Fiscal Year
Mesa reported net income of
For fiscal year 2021, revenue was
Mesa’s Adjusted EBITDA¹ was
Operationally, the Company ran a controllable completion factor of 99.5% for American and 99.9% for United during fiscal year 2021. This is compared to a controllable completion factor of 99.8% for American and 99.9% for United during fiscal year 2020. This excludes cancellations due to weather and air traffic control.
With respect to a total completion factor that includes all cancellations, Mesa reported a total completion factor of 97.1% for American and 97.8% for United during fiscal year 2021. This is compared to a total completion factor of 94.2% for American and 95.2% for United during fiscal year 2020.
¹ See Reconciliation of non-GAAP financial measures
Although we remain focused on strengthening our core regional business, we made progress on a number of important strategic initiatives. We successfully launched our DHL cargo operation with two 737-400F aircraft. We invested in electric aircraft companies Archer Aviation and
Liquidity and Capital Resources:
Mesa ended the quarter at
Fleet:
For the three months ended
Below is our current and future fleet plan by partner and fleet type:
Fiscal Year 2021 | Fiscal Year 2022 | ||||||
Fleet Plan | Q1 (Dec '20) | Q2 (Mar '21) | Q3 (Jun '21) | Q4 (Sep '21) | Q1 (Dec '21) | Q2 (Mar '22) | |
Actual | Actual | Actual | Actual | Forecast | Forecast | ||
E-175 – UA | 72 | 76 | 80 | 80 | 80 | 80 | |
CRJ-700 – UA | 8 | - | - | - | - | - | |
CRJ-900 – AA | 54 | 45 | 45 | 40 | 40 | 40 | |
737-400F – DHL | 2 | 2 | 2 | 2 | 2 | 3 | |
Sub-total | 136 | 123 | 127 | 122 | 122 | 123 | |
CRJ-700 Leased | - | 6 | 12 | 14 | 18 | 20 | |
CRJ-700 to be Leased to Third Party | 12 | 14 | 8 | 6 | 2 | - | |
CRJ-900 Spares/Parked | 10 | 19 | 19 | 24 | 24 | 24 | |
CRJ-200 Spares/Parked | 1 | 1 | 1 | 1 | 1 | 1 | |
Total Fleet | 159 | 163 | 167 | 167 | 167 | 168 |
Forward Guidance:
($ amounts in millions) | Fiscal Year 2021 |
Fiscal Year 2022 | |||
Q1 (Dec '20) | Q2 (Mar '21) | Q3 (Jun '21) | Q4 (Sep '21) | Q1 (Dec '21) | |
Actual | Actual | Actual | Actual | Forecast | |
69,247 | 73,942 | 85,162 | 94,868 | 87,000 | |
Pass Through Maintenance | |||||
Non-Pass Through Engine and C-Check | |||||
Deferred Revenue | ( |
( |
Mesa Air Group will host a conference call with analysts on
A recorded version will be available on Mesa's website approximately two hours after the call for approximately 14 days.
¹Reconciliation of non-GAAP financial measures
Although these financial statements are prepared in accordance with accounting principles generally accepted in the
¹Reconciliation of GAAP versus Non-GAAP Disclosures
(In thousands, except for per diluted share) (Unaudited)
Three Months Ended |
Three Months Ended |
|||||||||
Income (Loss) Before Taxes | Income Tax (Expense)/ Benefit | Net Income (Loss) | Net Income (Loss) per Diluted Share | Income Before Taxes | Income Tax (Expense)/ Benefit | Net Income | Net Income per Diluted Share | |||
GAAP Income (Loss) | 2,408 | (7,495) | (3,170) | |||||||
Loss on Investments, Net (1) | 6,816 | (1,470) | 5,346 | - | - | - | - | |||
Adjusted Income (Loss) | (3,087) | 938 | (2,149) | 14,545 | (3,170) | 11,375 | ||||
Interest Expense | 8,266 | 9,452 | ||||||||
Interest Income | (78) | (10) | ||||||||
Depreciation and Amortization | 20,739 | 20,640 | ||||||||
Adjusted EBITDA | 25,840 | 44,627 | ||||||||
Aircraft Rent | 9,657 | 9,606 | ||||||||
Adjusted EBITDAR | ||||||||||
Year Ended |
Year Ended |
|||||||||
Income Before Taxes | Income Tax (Expense)/ Benefit | Net Income | Net Income per Diluted Share | Income Before Taxes | Income Tax (Expense)/ Benefit | Net Income | Net Income per Diluted Share | |||
GAAP Income | (5,828) | 16,588 | (9,531) | |||||||
Adjustments (2) (3) | 3,558 | (900) | 2,658 | - | - | - | - | |||
Loss on Investments, Net (1) | 6,816 | (1,470) | 5,346 | |||||||
Adjusted Income | 32,790 | (8,198) | 24,592 | 36,995 |
(9,531) | 27,464 | ||||
Interest Expense | 34,730 | 44,120 | ||||||||
Interest Income | (365) | (105) | ||||||||
Depreciation and Amortization | 82,847 | 82,296 | ||||||||
Adjusted EBITDA | 150,002 | 163,306 | ||||||||
Aircraft Rent | 39,345 | 48,802 | ||||||||
Adjusted EBITDAR |
(1) Includes losses on our investments in stock and warrants of
(2) Includes lease termination expense of
(3) Includes adjustment for gain on extinguishment of debt of
About Mesa Air Group, Inc.
Headquartered in
Forward-Looking Statements
Certain statements contained in this press release that are not historical facts contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to the “safe harbor” created by those sections. Forward-looking statements can be identified by the use of words such as “estimate,” “anticipate,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “seek,” “approximate” or “plan,” or the negative of these words and phrases or similar words or phrases. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. For more information on risk factors for
Consolidated Statements of Operations
(In thousands, except per share amounts) (Unaudited)
Three Months Ended |
Twelve Months Ended |
|||||
2021 | 2020 | 2021 | 2020 | |||
Operating revenues: | ||||||
Contract revenue | ||||||
Pass-through and other revenue | 14,789 | 10,678 | 69,073 | 38,480 | ||
Total operating revenues | 130,783 | 108,039 | 503,591 | 545,070 | ||
Operating expenses: | ||||||
Flight operations | 46,456 | 34,043 | 162,137 | 169,242 | ||
Fuel | 76 | 168 | 898 | 672 | ||
Maintenance | 61,023 | 47,102 | 217,646 | 192,123 | ||
Aircraft rent | 9,657 | 9,606 | 39,345 | 48,802 | ||
Aircraft and traffic servicing | 312 | 418 | 2,638 | 3,356 | ||
General and administrative | 13,531 | 13,014 | 49,855 | 52,246 | ||
Depreciation and amortization | 20,739 | 20,640 | 82,847 | 82,296 | ||
Lease termination | — | — | 4,508 | — | ||
Government grant recognition | (26,100) | (40,816) | (119,479) | (83,834) | ||
Total operating expenses | 125,694 | 84,175 | 440,395 | 464,903 | ||
Operating income | 5,089 | 23,864 | 63,196 | 80,167 | ||
Other income (expense), net: | ||||||
Interest expense | (8,266) | (9,452) | (34,730) | (44,120) | ||
Interest income | 78 | 10 | 365 | 105 | ||
Loss on investments, net | (6,816) | — | (6,816) | — | ||
Other income, net | 12 | 123 | 401 | 843 | ||
Total other (expense), net | (14,992) | (9,319) | (40,780) | (43,172) | ||
Income (loss) before taxes | (9,903) | 14,545 | 22,416 | 36,995 | ||
Income tax expense (benefit) | (2,408) | 3,170 | 5,828 | 9,531 | ||
Net income (loss) | ||||||
Net income (loss) per share attributable to common shareholders | ||||||
Basic | ||||||
Diluted | ||||||
Weighted-average common shares outstanding | ||||||
Basic | 35,925 | 35,486 | 35,713 | 35,237 | ||
Diluted | 35,925 | 35,486 | 38,843 | 35,308 |
Condensed Consolidated Balance Sheets
(In thousands, except shares) (Unaudited)
2021 |
2020 |
|||
ASSETS | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | ||||
Restricted cash | 3,350 | 3,446 | ||
Receivables, net | 3,167 | 13,712 | ||
Expendable parts and supplies, net | 24,467 | 22,971 | ||
Prepaid expenses and other current assets | 6,885 | 16,067 | ||
Total current assets | 158,386 | 155,591 | ||
Property and equipment, net | 1,151,891 | 1,212,415 | ||
Intangible assets, net | 6,792 | 8,032 | ||
Lease and equipment deposits | 6,808 | 1,899 | ||
Operating lease right-of-use assets | 93,100 | 123,251 | ||
Deferred heavy maintenance, net | 3,499 | — | ||
Other assets | 36,121 | 742 | ||
TOTAL ASSETS | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
CURRENT LIABILITIES: | ||||
Current portion of long-term debt and finance leases | ||||
Current portion of deferred revenue | 6,298 | 9,389 | ||
Current maturities of operating leases | 32,652 | 43,932 | ||
Accounts payable | 61,476 | 53,229 | ||
Accrued compensation | 12,399 | 12,030 | ||
Other accrued expenses | 33,657 | 45,478 | ||
Total current liabilities | 258,192 | 353,326 | ||
NONCURRENT LIABILITIES: | ||||
Long-term debt and finance leases, excluding current portion | 539,700 | 542,456 | ||
Noncurrent operating lease liabilities | 33,991 | 62,531 | ||
Deferred credits | 3,934 | 5,705 | ||
Deferred income taxes | 69,940 | 64,275 | ||
Deferred revenue, net of current portion | 28,202 | 14,369 | ||
Other noncurrent liabilities | 34,591 | 1,409 | ||
Total noncurrent liabilities | 710,358 | 690,745 | ||
Total liabilities | 968,550 | 1,044,071 | ||
STOCKHOLDERS' EQUITY: | ||||
Preferred stock of no par value, 5,000,000 shares authorized; no shares issued and outstanding | — | — | ||
Common stock of no par value and additional paid-in capital, 125,000,000 shares authorized; 35,958,759 (2021) and 35,526,918 (2020) shares issued and outstanding, and 4,899,497 (2021) and 0 (2020) warrants issued and outstanding | 256,372 | 242,772 | ||
Retained earnings | 231,675 | 215,087 | ||
Total stockholders' equity | 488,047 | 457,859 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
Operating Highlights (unaudited)
Three months ended | ||||
2021 | 2020 | Change | ||
Available Seat Miles (thousands) | 2,352,453 | 1,450,478 | 62.2% | |
94,868 | 57,622 | 64.6% | ||
Average Stage Length (miles) | 663 | 624 | 6.3% | |
Departures | 47,015 | 30,524 | 54.0% | |
Passengers | 2,795,371 | 1,415,817 | 97.4% | |
Controllable Completion Factor* | ||||
American | 99.05% | 99.81% | -0.8% | |
United | 99.81% | 99.77% | 0.04% | |
Total Completion Factor** | ||||
American | 97.34% | 99.11% | -1.8% | |
United | 98.06% | 97.47% | 0.6% |
*Controllable Completion Factor excludes cancellations due to weather and air traffic control
**Total Completion Factor includes all cancellations
Source: Mesa Air Group, Inc.
Media
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Investor Relations
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Source: Mesa Air Group, Inc.