mesa-8k_20210510.htm
false 0000810332 0000810332 2021-05-10 2021-05-10

 

 

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): May 10, 2021

 

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 May 10, 2021, Mesa Air Group, Inc. issued a press release announcing its financial and operating results for its second fiscal quarter ended March 31, 2021. 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 May 10, 2021, issued by Mesa Air Group, Inc.

 

 

 

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 


 

 

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: May 10, 2021

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 Second Quarter Fiscal 2021 Results

May 10, 2021

PHOENIX, May 10, 2021 -- Mesa Air Group, Inc. (NASDAQ: MESA) today reported second quarter fiscal 2021 financial and operating results.

Highlights for the quarter:

 

Pre-tax income of $7.6 million, net income of $5.7 million or $0.14 per diluted share1

 

Adjusted pre-tax income of $12.1 million, adjusted net income of $9.1 million or $0.23 per diluted share 1

 

Letter of Intent to lease an additional 737-400F cargo aircraft

 

Invested in Archer Aviation’s eVTOL electric aircraft along with United Airlines

 

Letter of Intent with Gramercy Partners to develop a European-based regional airline

 

Named to Forbes’ list of America’s Best Midsize Employers for 2021

 

Mesa's Q2 2021 results reflect net income of $5.7 million, or $0.14 per diluted share, compared to net income of $1.9 million, or $0.05 per diluted share for Q2 2020. Mesa’s results include a one-time non-cash $4.5 million lease termination expense resulting from the purchase of a previously leased CRJ-900 aircraft. Adjusting for this, Mesa’s Q2 2021 quarterly net income per diluted share would have increased to $0.231.

 

Mesa's Q2 2021 pre-tax income was $7.6 million, compared to $3.2 million for Q2 2020. Mesa's Q2 2021 adjusted pre-tax income1 was $12.1 million, compared to $3.2 million for Q2 2020. Mesa’s Q2 2021 results include, per GAAP, the deferral of $4.9 million of revenue, all of which was billed and paid by American and United during the quarter and will be recognized over the remaining terms of the contracts. The primary reason for the $8.9 million increase in adjusted pre-tax income from Q2 2020 to Q2 2021 was $56.0 million of benefit from the Payroll Support Program (“PSP2”) under the CARES Act largely offset by temporarily reduced rates offered to our partners related to the PSP2 program.

 

Mesa's Adjusted EBITDA1 for Q2 2021 was $41.5 million, compared to $35.3 million in Q2 2020, and Adjusted EBITDAR1 for Q2 2021 was $51.5 million, compared to $47.6 million in Q2 2020.

 

1 See Reconciliation of non-GAAP financial measures

 

Jonathan Ornstein, Chairman and CEO, said, “The last year has emphasized the importance of innovation in the face of significant challenges. Given change is the one constant of our industry, we have focused on positioning the company for the future and taken the regional industry’s initial steps toward sustainability and de-carbonization of air travel. Our first strategic initiative this fiscal year was an investment with United Airlines in Archer Aviation, a leader in the development of electric air-mobility vehicles. Since our founding, Mesa has been an innovator and we continue to evaluate other opportunities in green technology. Additionally, we began to diversify our business model by starting a cargo operation and are flying two 737-400F with DHL. We have signed a letter of intent this quarter, partnering with Gramercy Partners for European flying and are planning to use existing CRJ-900 aircraft.”

 

Brad Rich, Mesa’s Chief Operating Officer, added, “During the past quarter, we continued to improve our operational performance and believe we are well-positioned with both American and United to assist in the pandemic recovery. Our operational performance improved, especially on our American flying, where block hours increased 6.8% from last quarter despite flying fewer aircraft.”

 

 


 

March quarter financial results:

 

Total operating revenue decreased by $82.6 million, or 45.9%, to $97.3 million for our three months ended March 31, 2021 as compared to our three months ended March 31, 2020. Contract Revenue decreased by $84.1 million, or 50.7%, to $81.7 million due to the impact of COVID-19, fewer aircraft at American, lower temporary contract rates, and the winter storm and subsequent power outages in Texas. Our pass-through and other revenue increased during our three months ended March 31, 2021 by $1.5 million, or 10.6%, to $15.6 million primarily due to pass-through maintenance revenue related to our E-175 fleet.

 

Total operating expense decreased by $85.5 million, or 51.5%, to $80.5 million for our three months ended March 31, 2021 as compared to the three months ended March 31, 2020. The reduction is primarily due to $56.0 million of PSP2 funds that are recorded as an offset to wages. Additionally, flight operations expense decreased in the three months ended March 31, 2021 due to reduced crew costs associated with less flying and training. Our maintenance expense decreased primarily due to fewer heavy engine maintenance events and lower component contracts, parts, and labor expense, offset by higher c-check expense and pass-through maintenance. In addition, general and administrative expense decreased primarily due to lower pass-through property taxes.

 

Fleet:

 

All of our operating revenue in the three months ended March 31, 2021 was derived from operations associated with our American and United Capacity Purchase Agreements and DHL Flight Services Agreement. For the three months ended March 31, 2021, 53% of the Company’s total revenue was derived from United, 45% from American, and 2% from DHL.

 

Below is our current and future fleet plan by partner and fleet type:

 

 

 

Fiscal 2020
Q4

 

Fiscal Year 2021

 

Fiscal 2022
Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet Plan

 

Q4 (Sep '20)

 

Q1 (Dec '20)

 

Q2 (Mar '21)

 

Q3 (Jun '21)

 

Q4 (Sep '21)

 

Q4 (Sep '21)

 

 

 

Actual

 

Actual

 

Actual

 

Forecast

 

Forecast

 

Forecast

 

E-175 - UA

 

 

60

 

 

72

 

 

76

 

 

80

 

 

80

 

 

80

 

CRJ-700 - UA

 

 

20

 

 

8

 

 

-

 

 

-

 

 

-

 

 

-

 

CRJ-900 AA

 

 

54

 

 

54

 

 

45

 

 

45

 

 

45

 

 

42

 

737-400F - DHL

 

 

-

 

 

2

 

 

2

 

 

2

 

 

2

 

 

2

 

Sub-total

 

 

134

 

 

136

 

 

123

 

 

127

 

 

127

 

 

124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leased / Spares Support

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CRJ-700 Leased

 

 

-

 

 

-

 

 

5

 

 

10

 

 

15

 

 

20

 

CRJ-700 To be Leased to Third Party

 

 

-

 

 

12

 

 

15

 

 

10

 

 

5

 

 

-

 

CRJ-900 Leased to Third Party

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2

 

CRJ-900 Spares Support

 

 

10

 

 

10

 

 

19

 

 

19

 

 

19

 

 

20

 

737-400F Spares Support

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1

 

 

1

 

CRJ-200 Spares Support

 

 

1

 

 

1

 

 

1

 

 

1

 

 

1

 

 

1

 

Total Fleet

 

 

145

 

 

159

 

 

163

 

 

167

 

 

168

 

 

168

 

 

 


 

Liquidity and Capital Resources:

Mesa ended the quarter at $147.9 million in unrestricted cash and equivalents. During the quarter, Mesa fully repaid the $48.0 million United prepayment. As of March 31, 2021, the Company had $725.4 million in total debt secured primarily with aircraft and engines.

The Company was granted $56.0 million in financial assistance by the U.S. Treasury under the Payroll Support Program Extension (“PSP2”), of which $48.7 million was received during the quarter with the remaining $7.3 million received in April. The Company is not required to issue any warrants or to repay any of the amount received under the PSP2 program. The PSP2 payments are conditioned on the Company’s agreement to refrain from conducting involuntary employee layoffs or furloughs through March 31, 2021 as well as prohibitions on share repurchases and dividends through March 31, 2022 and certain limitations on executive compensation.

The Company was also granted $52.2 million in financial assistance by the U.S. Treasury under the Payroll Support Program Extension (“PSP3”) as part of the American Recovery Plan Act of 2021. On April 23, 2021, the Company received $26.1 million of the PSP3 grant with the remaining $26.1 million anticipated to be paid in May 2021. The Company is not required to issue any warrants or to repay any of the amount received under the PSP3 program. The PSP3 payments are conditioned on the Company’s agreement to refrain from conducting involuntary employee layoffs or furloughs through September 30, 2021, prohibitions on share repurchases and dividends through September 30th, 2022, and certain limitations on executive compensation.

Other Items

During the Quarter, the Company recorded $16.4 million as an Other Asset related to the vesting of 40% of our warrants held in Archer Aviation.

Forward Guidance:

 

($ amounts in millions)

Fiscal Year
2020

 

 

Fiscal Year 2021

 

Fiscal
2022 Q1

 

 

Q4 (Sep '20)

 

 

Q1 (Dec '20)

 

Q2 (Mar '21)

 

Q3 (Jun '21)

 

Q4 (Sep '21)

 

Q4 (Sep '21)

 

 

Actual

 

 

Actual

 

Actual

 

Forecast

 

Forecast

 

Forecast

 

Block Hours

 

57,622

 

 

 

69,247

 

 

73,942

 

 

82,000

 

 

88,000

 

 

89,000

 

Pass Through Maintenance

$

9.3

 

 

$

19.7

 

$

15.0

 

$

15.0

 

$

13.0

 

$

5.0

 

Non-Pass Through Engine and C Check

$

8.1

 

 

$

8.3

 

$

14.2

 

$

14.0

 

$

14.0

 

$

12.5

 

Deferred Revenue

$

7.8

 

 

$

5.2

 

$

4.9

 

$

1.0

 

$

(1.0

)

$

(1.0

)

 

Mesa Air Group will host a conference call with analysts on Monday, May 10 at 4:30 pm ET/1:30 pm PT. The conference call number is 888-469-2054 (Passcode: Phoenix (7463649). The conference call can also be accessed live via the web by visiting https://edge.media-server.com/mmc/p/z3u9wkm3. 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 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 months and six months ended March 31, 2021 and the three months and six months ended March 31, 2020. 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.

1Reconciliation of GAAP versus Non-GAAP Disclosures

(In thousands, except for per diluted share) (Unaudited)

 

 

Three months ended March 31, 2021

 

 

 

Income Before

Taxes

 

 

Income Tax

(Expense)/Benefit

 

 

Net

Income

 

 

Net Income

per

Diluted Share

 

GAAP Income

 

$

7,579

 

 

$

(1,890

)

 

$

5,689

 

 

$

0.14

 

Adjustments (1)

 

 

4,508

 

 

 

(1,124

)

 

 

3,384

 

 

$

0.09

 

Adjusted Income

 

 

12,087

 

 

 

(3,014

)

 

 

9,073

 

 

$

0.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

8,755

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

(79

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

20,705

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

41,468

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft Rent

 

 

9,992

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAR

 

 

51,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)       Includes lease termination expense of $4.5 million for the three and six months ended March 31, 2021 related to purchase of CRJ-900 aircraft, which were previously leased from Bombardier Capital.

 

 

 

 

 

Three months ended March 31, 2020

 

 

 

Income Before

Taxes

 

 

Income Tax

(Expense)/Benefit

 

 

Net

Income

 

 

Net Income

per

Diluted Share

 

GAAP Income

 

$

3,192

 

 

$

(1,307

)

 

$

1,885

 

 

$

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

11,673

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

(36

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

20,469

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

 

35,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft Rent

 

 

12,285

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAR

 

 

47,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

Six months ended March 31, 2021

 

 

 

Income Before

Taxes

 

 

Income Tax

(Expense)/Benefit

 

 

Net

income

 

 

Net Income

per

Diluted Share

 

GAAP Income

 

$

26,518

 

 

$

(6,711

)

 

$

19,807

 

 

$

0.52

 

Adjustments (1)(2)

 

 

3,558

 

 

 

(900

)

 

 

2,658

 

 

$

0.07

 

Adjusted Income

 

 

30,076

 

 

 

(7,611

)

 

 

22,465

 

 

$

0.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

17,837

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

(205

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

41,175

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

88,883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft Rent

 

 

20,040

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAR

 

 

108,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)       Includes lease termination expense of $4.5 million for the three and six months ended March 31, 2021 related to purchase of CRJ-900 aircraft, which were previously leased from Bombardier Capital.

 

 

 

(2)       Includes adjustment for gain on extinguishment of debt of $1.0 million related to repayment of the Company’s aircraft debts during our six months ended March 31, 2021.

 

 

 

 

 

 

Six months ended March 31, 2020

 

 

 

Income Before

Taxes

 

 

Income Tax

(Expense)/Benefit

 

 

Net

income

 

 

Net Income

per

Diluted Share

 

GAAP Income/(Loss)

 

$

17,512

 

 

$

(4,842

)

 

$

12,670

 

 

$

0.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

24,300

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

(94

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

41,021

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

 

82,739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft Rent

 

 

23,614

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAR

 

 

106,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

About Mesa Air Group, Inc.

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. ("Mesa" or the "Company") is a holding company whose principal subsidiary, Mesa Airlines, Inc. ("Mesa Airlines"), operates as a regional air carrier providing scheduled flight service to 116 cities in 42 states, the District of Columbia, the Bahamas, and Mexico as well as Cargo services out of Cincinnati/Northern Kentucky International Airport. As of December 31, 2020, Mesa operated a fleet of 159 aircraft with approximately 420 daily departures and 3,200 employees. Mesa operates all of its flights as either American Eagle, United Express, or DHL Express flights pursuant to the terms of the capacity purchase agreements entered into with American Airlines, Inc. (“American”) and United Airlines, Inc. (“United”) and flight services agreement (“DHL”).

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 Mesa Air Group, Inc.’s business, please refer to the periodic reports the Company files with the Securities and Exchange Commission from time to time. Many of the risks identified in the periodic reports have been and will continue to be heightened as a result of the ongoing and numerous adverse effects arising from the COVID-19 pandemic. These forward-looking statements herein speak only as of the date of this press release and should not be relied upon as predictions of future events. Mesa Air Group, Inc. expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein, to reflect any change in Mesa Air Group, Inc.’s expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except as required by law.

 


MESA AIR GROUP, INC.

Condensed Consolidated Statements of Operations

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

 

 

Three Months Ended

March 31,

 

 

Six Months Ended

March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract revenue

 

$

81,712

 

 

$

165,781

 

 

$

208,870

 

 

$

337,580

 

Pass-through and other

 

 

15,568

 

 

 

14,115

 

 

 

38,781

 

 

 

26,351

 

Total operating revenues

 

 

97,280

 

 

 

179,896

 

 

 

247,651

 

 

 

363,931

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flight operations

 

 

37,403

 

 

 

52,891

 

 

 

74,367

 

 

 

105,535

 

Fuel

 

 

198

 

 

 

188

 

 

 

588

 

 

 

358

 

Maintenance

 

 

51,773

 

 

 

64,335

 

 

 

104,637

 

 

 

122,430

 

Aircraft rent

 

 

9,992

 

 

 

12,285

 

 

 

20,040

 

 

 

23,614

 

Aircraft and traffic servicing

 

 

743

 

 

 

1,336

 

 

 

1,644

 

 

 

2,400

 

General and administrative

 

 

11,164

 

 

 

14,500

 

 

 

24,237

 

 

 

27,496

 

Depreciation and amortization

 

 

20,705

 

 

 

20,469

 

 

 

41,175

 

 

 

41,021

 

Lease termination

 

 

4,508

 

 

 

 

 

 

4,508

 

 

 

 

Government grant recognition

 

 

(55,967

)

 

 

 

 

 

(67,278

)

 

 

 

Total operating expenses

 

 

80,519

 

 

 

166,004

 

 

 

203,918

 

 

 

322,854

 

Operating income

 

 

16,761

 

 

 

13,892

 

 

 

43,733

 

 

 

41,077

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expenses) income, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(8,755

)

 

 

(11,673

)

 

 

(17,837

)

 

 

(24,300

)

Interest income

 

 

79

 

 

 

36

 

 

 

205

 

 

 

94

 

Other (expense) income, net

 

 

(506

)

 

 

937

 

 

 

417

 

 

 

641

 

Total other (expense), net

 

 

(9,182

)

 

 

(10,700

)

 

 

(17,215

)

 

 

(23,565

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

7,579

 

 

 

3,192

 

 

 

26,518

 

 

 

17,512

 

Income tax expense

 

 

1,890

 

 

 

1,307

 

 

 

6,711

 

 

 

4,842

 

Net income

 

$

5,689

 

 

$

1,885

 

 

$

19,807

 

 

$

12,670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share attributable to common shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.16

 

 

$

0.05

 

 

$

0.56

 

 

$

0.36

 

Diluted

 

$

0.14

 

 

$

0.05

 

 

$

0.52

 

 

$

0.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

35,628

 

 

 

35,141

 

 

 

35,579

 

 

 

35,082

 

Diluted

 

 

39,432

 

 

 

35,265

 

 

 

38,382

 

 

 

35,220

 

 

 


 

MESA AIR GROUP, INC.

Condensed Consolidated Balance Sheets

(In thousands, except shares) (Unaudited)

 

 

March 31,

2021

 

 

September 30,

2020

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

147,867

 

 

$

99,395

 

Restricted cash

 

 

3,351

 

 

 

3,446

 

Receivables, net

 

 

13,867

 

 

 

13,712

 

Expendable parts and supplies, net

 

 

23,044

 

 

 

22,971

 

Prepaid expenses and other current assets

 

 

8,956

 

 

 

16,067

 

Total current assets

 

 

197,085

 

 

 

155,591

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

1,180,684

 

 

 

1,212,415

 

Intangibles, net

 

 

7,412

 

 

 

8,032

 

Lease and equipment deposits

 

 

8,242

 

 

 

1,899

 

Operating Lease right-of-use assets

 

 

105,521

 

 

 

123,251

 

Other Assets

 

 

20,647

 

 

 

742

 

TOTAL ASSETS

 

$

1,519,591

 

 

$

1,501,930

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Current portion of long-term debt and financing leases

 

$

103,980

 

 

$

189,268

 

Current portion of deferred revenue

 

 

4,356

 

 

 

9,389

 

Current maturities of operating leases

 

 

44,016

 

 

 

43,932

 

Accounts payable

 

 

70,012

 

 

 

53,229

 

Accrued compensation

 

 

10,449

 

 

 

12,030

 

Other accrued expenses

 

 

28,610

 

 

 

45,478

 

Total current liabilities

 

 

261,423

 

 

 

353,326

 

 

 

 

 

 

 

 

 

 

NONCURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt and financing leases - excluding current portion

 

 

600,058

 

 

 

542,456

 

Noncurrent operating lease liabilities

 

 

38,405

 

 

 

62,531

 

Deferred credits

 

 

7,442

 

 

 

5,705

 

Deferred income taxes

 

 

70,929

 

 

 

64,275

 

Deferred revenue, net of current portion

 

 

29,502

 

 

 

14,369

 

Other noncurrent liabilities

 

 

20,988

 

 

 

1,409

 

Total noncurrent liabilities

 

 

767,324

 

 

 

690,745

 

Total liabilities

 

 

1,028,747

 

 

 

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; 35,700,161 (2021) and 35,526,918 (2020) shares issued

   and outstanding, and 4,899,497 (2021) and 0 (2020) warrants

   issued and outstanding

 

 

255,950

 

 

 

242,772

 

Retained earnings

 

 

234,894

 

 

 

215,087

 

Total stockholders' equity

 

 

490,844

 

 

 

457,859

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

1,519,591

 

 

$

1,501,930

 

 

 


 

Operating Highlights (unaudited)

 

 

Three months ended

 

 

 

March 31

 

 

 

2021

 

 

2020

 

 

Change

 

Available Seat Miles (thousands)

 

 

1,771,498

 

 

 

2,611,940

 

 

 

-32.2

%

Block Hours

 

 

73,942

 

 

 

108,305

 

 

 

-31.7

%

Average Stage Length (miles)

 

 

690

 

 

 

619

 

 

 

11.5

%

Departures

 

 

35,344

 

 

 

55,435

 

 

 

-36.2

%

Passengers

 

 

1,148,498

 

 

 

1,785,153

 

 

 

-35.7

%

Controllable Completion Factor*

 

 

 

 

 

 

 

 

 

 

 

 

American

 

 

99.83

%

 

 

99.91

%

 

 

-0.1

%

United

 

 

99.99

%

 

 

99.97

%

 

 

0.0

%

Total Completion Factor**

 

 

 

 

 

 

 

 

 

 

 

 

American

 

 

95.01

%

 

 

94.03

%

 

 

1.0

%

United

 

 

94.22

%

 

 

93.19

%