UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
|
☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2019
Or
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE TRANSITION PERIOD FROM TO .
Commission File Number 001-38626
MESA AIR GROUP, INC.
(Exact name of registrant as specified in its charter)
|
Nevada |
|
85-0302351 |
|
(State or other jurisdiction of incorporation or organization) |
|
(I.R.S. Employer Identification No.) |
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410 North 44th Street, Suite 700 Phoenix, Arizona 85008 |
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85008 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant's telephone number, including area code: (602) 685-4000
Securities registered pursuant to Section 12(b) of the Act:
|
Title of Each Class |
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Trading Symbol(s) |
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Name of Each Exchange of Which Registered |
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Common Stock, no par value |
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MESA |
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Nasdaq Global Select Market |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer |
☐ |
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Accelerated filer |
☐ |
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Non-accelerated filer |
☒ |
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Smaller reporting company |
☐ |
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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. ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of July 31, 2019, the registrant had 31,413,287 shares of common stock, no par value per share, issued and outstanding.
Where You Can Find More Information
Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (http://investor.mesa-air.com/), SEC filings, webcasts, press releases, and conference calls. We use these mediums, including our website, to communicate with our members and public about our company, our products, and other issues. It is possible that the information that we make available may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our website.
Cautionary Note Regarding Forward Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations and financial position, business strategy and plans, and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.
In some cases, you can identify forward-looking statements by terms such as "may", "should", "expects", "might", "plans", "anticipates", "could", "intends", "target", "projects", "contemplates", "believes", "estimates", "predicts", "potential", "seek", "would", "continue", or the negative of these terms or other similar expressions. The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and are subject to a number of risks, uncertainties and assumptions described in the "Risk Factors" section and elsewhere in this Quarterly Report on Form 10-Q. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Some of the key factors that could cause actual results to differ from our expectations include:
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▪ |
the supply and retention of qualified airline pilots; |
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▪ |
the volatility of pilot attrition; |
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▪ |
dependence on, and changes to, or non-renewal of, our capacity purchase agreements; |
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▪ |
increases in our labor costs; |
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▪ |
reduced utilization (the percentage derived from dividing (i) the number of block hours actually flown during a given month under a particular capacity purchase agreement by (ii) the maximum number of block hours that could be flown during such month under the particular capacity purchase agreement) under our capacity purchase agreements; |
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▪ |
direct operation of regional jets by our major airline partners; |
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▪ |
the financial strength of our major airline partners; |
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▪ |
limitations on our ability to expand regional flying within the flight systems of our major airline partners' and those of other major airlines; |
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▪ |
our significant amount of debt and other contractual obligations; |
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▪ |
our compliance with ongoing financial covenants under our credit facilities; and |
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▪ |
our ability to keep costs low and execute our growth strategies. |
While we may elect to update these forward-looking statements at some point in the future, whether as a result of any new information, future events, or otherwise, we have no current intention of doing so except to the extent required by applicable law.
1
Part I – Financial Information
MESA AIR GROUP, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts) (Unaudited)
|
|
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June 30, |
|
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September 30, |
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||
|
|
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2019 |
|
|
2018 |
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||
|
ASSETS |
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|
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Current assets: |
|
|
|
|
|
|
|
|
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Cash and cash equivalents |
|
$ |
79,909 |
|
|
$ |
103,311 |
|
|
Marketable securities |
|
|
— |
|
|
|
19,921 |
|
|
Restricted cash |
|
|
3,647 |
|
|
|
3,823 |
|
|
Receivables, net |
|
|
7,902 |
|
|
|
14,290 |
|
|
Expendable parts and supplies, net |
|
|
20,268 |
|
|
|
15,658 |
|
|
Prepaid expenses and other current assets |
|
|
46,425 |
|
|
|
40,914 |
|
|
Total current assets |
|
|
158,151 |
|
|
|
197,917 |
|
|
|
|
|
|
|
|
|
|
|
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Property and equipment, net |
|
|
1,286,022 |
|
|
|
1,250,829 |
|
|
Intangibles, net |
|
|
9,984 |
|
|
|
11,341 |
|
|
Lease and equipment deposits |
|
|
1,977 |
|
|
|
2,598 |
|
|
Other assets |
|
|
9,849 |
|
|
|
9,703 |
|
|
Total assets |
|
$ |
1,465,983 |
|
|
$ |
1,472,388 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
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|
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Current liabilities: |
|
|
|
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|
|
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|
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Current portion of long-term debt and capital leases |
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$ |
163,623 |
|
|
$ |
155,170 |
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Accounts payable ($4,859 and $1,330 to related party) |
|
|
33,585 |
|
|
|
54,307 |
|
|
Accrued compensation |
|
|
14,492 |
|
|
|
12,208 |
|
|
Other accrued expenses |
|
|
34,152 |
|
|
|
29,696 |
|
|
Total current liabilities |
|
|
245,852 |
|
|
|
251,381 |
|
|
Noncurrent liabilities: |
|
|
|
|
|
|
|
|
|
Long-term debt and capital leases, excluding current portion |
|
|
717,546 |
|
|
|
760,177 |
|
|
Deferred credits ($6,288 and $7,702 to related party) |
|
|
13,401 |
|
|
|
15,393 |
|
|
Deferred income taxes |
|
|
50,695 |
|
|
|
39,797 |
|
|
Other noncurrent liabilities |
|
|
25,755 |
|
|
|
31,173 |
|
|
Total noncurrent liabilities |
|
|
807,397 |
|
|
|
846,540 |
|
|
Total liabilities |
|
|
1,053,249 |
|
|
|
1,097,921 |
|
|
Commitments and contingencies (Note 13 and Note 14) |
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Stockholders' equity: |
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|
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Preferred stock of no par value, 5,000,000 shares authorized; no shares issued and outstanding |
|
|
— |
|
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|
— |
|
|
Common stock of no par value and additional paid-in capital, 125,000,000 shares authorized; 30,361,168 (2019) and 23,902,903 (2018) shares issued and outstanding, 4,603,333 (2019) and 10,614,990 (2018) warrants issued and outstanding |
|
|
237,613 |
|
|
|
234,683 |
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Retained earnings |
|
|
175,121 |
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|
|
139,784 |
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Total stockholders' equity |
|
|
412,734 |
|
|
|
374,467 |
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Total liabilities and stockholders' equity |
|
$ |
1,465,983 |
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$ |
1,472,388 |
|
See accompanying notes to these condensed consolidated financial statements.
2
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts) (Unaudited)
|
|
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Three Months Ended June 30, |
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Nine Months Ended June 30, |
|
||||||||||
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2019 |
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2018 |
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2019 |
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2018 |
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||||
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Operating revenues: |
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Contract revenue (2019—$93,683 and $282,048 and 2018—$90,834 and $266,037 from related party) |
|
$ |
170,366 |
|
|
$ |
159,916 |
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$ |
510,586 |
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|
$ |
470,820 |
|
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Pass-through and other (2019—$1,642 and $5,381 and 2018—$1,634 and $4,989 from related party) |
|
|
9,858 |
|
|
|
11,823 |
|
|
|
24,941 |
|
|
|
33,243 |
|
|
Total operating revenues |
|
|
180,224 |
|
|
|
171,739 |
|
|
|
535,527 |
|
|
|
504,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flight operations |
|
|
53,025 |
|
|
|
51,795 |
|
|
|
155,636 |
|
|
|
155,602 |
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|
Fuel |
|
|
211 |
|
|
|
151 |
|
|
|
433 |
|
|
|
349 |
|
|
Maintenance |
|
|
54,322 |
|
|
|
48,290 |
|
|
|
139,504 |
|
|
|
154,046 |
|
|
Aircraft rent |
|
|
12,875 |
|
|
|
17,975 |
|
|
|
41,104 |
|
|
|
54,557 |
|
|
Aircraft and traffic servicing |
|
|
978 |
|
|
|
848 |
|
|
|
2,977 |
|
|
|
2,592 |
|
|
General and administrative |
|
|
12,435 |
|
|
|
22,066 |
|
|
|
38,121 |
|
|
|
43,333 |
|
|
Depreciation and amortization |
|
|
19,761 |
|
|
|
16,013 |
|
|
|
57,528 |
|
|
|
47,611 |
|
|
Lease termination |
|
|
9,540 |
|
|
|
15,109 |
|
|
|
9,540 |
|
|
|
15,109 |
|
|
Total operating expenses |
|
|
163,147 |
|
|
|
172,247 |
|
|
|
444,843 |
|
|
|
473,199 |
|
|
Operating income |
|
|
17,077 |
|
|
|
(508 |
) |
|
|
90,684 |
|
|
|
30,864 |
|
|
Other (expenses) income, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(13,496 |
) |
|
|
(14,118 |
) |
|
|
(42,110 |
) |
|
|
(41,592 |
) |
|
Interest income |
|
|
733 |
|
|
|
11 |
|
|
|
1,188 |
|
|
|
30 |
|
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(3,616 |
) |
|
|
— |
|
|
Other (expense) income, net |
|
|
(451 |
) |
|
|
(15 |
) |
|
|
82 |
|
|
|
(117 |
) |
|
Total other (expense), net |
|
|
(13,214 |
) |
|
|
(14,122 |
) |
|
|
(44,456 |
) |
|
|
(41,679 |
) |
|
Income (loss) before taxes |
|
|
3,863 |
|
|
|
(14,630 |
) |
|
|
46,228 |
|
|
|
(10,815 |
) |
|
Income tax expense (benefit) |
|
|
856 |
|
|
|
(3,495 |
) |
|
|
10,891 |
|
|
|
(24,676 |
) |
|
Net income (loss) |
|
$ |
3,007 |
|
|
$ |
(11,135 |
) |
|
$ |
35,337 |
|
|
$ |
13,861 |
|
|
Net income (loss) per share attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.09 |
|
|
$ |
(0.48 |
) |
|
$ |
1.02 |
|
|
$ |
0.59 |
|
|
Diluted |
|
$ |
0.09 |
|
|
$ |
(0.48 |
) |
|
$ |
1.01 |
|
|
$ |
0.58 |
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
34,835 |
|
|
|
23,336 |
|
|
|
34,683 |
|
|
|
23,298 |
|
|
Diluted |
|
|
35,112 |
|
|
|
23,336 |
|
|
|
35,051 |
|
|
|
23,772 |
|
See accompanying notes to these condensed consolidated financial statements.
3
Condensed Consolidated Statements of Stockholders' Equity
(In thousands, except share amounts) (Unaudited)
|
|
|
Nine Months Ended June 30, 2018 |
|
||||||||||||||||||
|
|
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|
|
|
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|
|
|
|
Common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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Additional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of |
|
|
Number of |
|
|
Paid-In |
|
|
Retained |
|
|
|
|
|
|
||||
|
|
|
Shares |
|
|
Warrants |
|
|
Capital |
|
|
Earnings |
|
|
|
Total |
|
|||||
|
Balance at September 30, 2017 |
|
|
11,294,083 |
|
|
|
12,230,625 |
|
|
$ |
114,456 |
|
|
$ |
107,768 |
|
|
|
$ |
222,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense |
|
|
— |
|
|
|
— |
|
|
|
428 |
|
|
|
— |
|
|
|
|
428 |
|
|
Cumulative effect of change in accounting principle (See note 3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
665 |
|
|
|
|
665 |
|
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22,624 |
|
|
|
|
22,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2017 |
|
|
11,294,083 |
|
|
|
12,230,625 |
|
|
$ |
114,884 |
|
|
$ |
131,057 |
|
|
|
$ |
245,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense |
|
|
— |
|
|
|
— |
|
|
|
391 |
|
|
|
— |
|
|
|
|
391 |
|
|
Warrants converted to common stock |
|
|
1,089,720 |
|
|
|
(1,089,720 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
Restricted shares issued |
|
|
10,412 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,372 |
|
|
|
|
2,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2018 |
|
|
12,394,215 |
|
|
|
11,140,905 |
|
|
$ |
115,275 |
|
|
$ |
133,429 |
|
|
|
$ |
248,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense |
|
|
— |
|
|
|
— |
|
|
|
390 |
|
|
|
— |
|
|
|
|
390 |
|
|
Repurchased shares and warrants |
|
|
(74,275 |
) |
|
|
(250,000 |
) |
|
|
(3,259 |
) |
|
|
— |
|
|
|
|
(3,259 |
) |
|
Warrants converted to common stock |
|
|
19,175 |
|
|
|
(19,175 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
Restricted shares issued |
|
|
233,515 |
|
|
|
— |
|
|
|
326 |
|
|
|
— |
|
|
|
|
326 |
|
|
Cumulative effect of change in accounting principle (See note 2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,403 |
) |
|
|
|
(2,403 |
) |
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11,135 |
) |
|
|
|
(11,135 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2018 |
|
|
12,572,630 |
|
|
|
10,871,730 |
|
|
$ |
112,732 |
|
|
$ |
119,891 |
|
|
|
$ |
232,623 |
|
4
Condensed Consolidated Statements of Stockholders' Equity
(In thousands, except share amounts) (Unaudited)
|
|
|
Nine Months Ended June 30, 2019 |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of |
|
|
Number of |
|
|
Paid-In |
|
|
Retained |
|
|
|
|
|
|
||||
|
|
|
Shares |
|
|
Warrants |
|
|
Capital |
|
|
Earnings |
|
|
|
Total |
|
|||||
|
Balance at September 30, 2018 |
|
|
23,902,903 |
|
|
|
10,614,990 |
|
|
$ |
234,683 |
|
|
$ |
139,784 |
|
|
|
$ |
374,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense |
|
|
— |
|
|
|
— |
|
|
|
1,454 |
|
|
|
— |
|
|
|
|
1,454 |
|
|
Stock issuance costs |
|
|
— |
|
|
|
— |
|
|
|
157 |
|
|
|
— |
|
|
|
|
157 |
|
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,081 |
|
|
|
|
19,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2018 |
|
|
23,902,903 |
|
|
|
10,614,990 |
|
|
$ |
236,294 |
|
|
$ |
158,865 |
|
|
|
$ |
395,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense |
|
|
— |
|
|
|
— |
|
|
|
1,298 |
|
|
|
— |
|
|
|
|
1,298 |
|
|
Repurchased shares |
|
|
(52,967 |
) |
|
|
— |
|
|
|
(449 |
) |
|
|
— |
|
|
|
|
(449 |
) |
|
Stock issuance costs |
|
|
— |
|
|
|
— |
|
|
|
28 |
|
|
|
— |
|
|
|
|
28 |
|
|
Warrants converted to common stock |
|
|
3,834,693 |
|
|
|
(3,834,693 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
Restricted shares issued |
|
|
284,846 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,249 |
|
|
|
|
13,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2019 |
|
|
27,969,475 |
|
|
|
6,780,297 |
|
|
|
237,171 |
|
|
|
172,114 |
|
|
|
|
409,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense |
|
|
— |
|
|
|
— |
|
|
|
1,507 |
|
|
|
— |
|
|
|
|
1,507 |
|
|
Repurchased shares |
|
|
(116,757 |
) |
|
|
— |
|
|
|
(1,065 |
) |
|
|
— |
|
|
|
|
(1,065 |
) |
|
Warrants converted to common stock |
|
|
2,176,964 |
|
|
|
(2,176,964 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
Restricted shares issued |
|
|
331,486 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,007 |
|
|
|
|
3,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2019 |
|
|
30,361,168 |
|
|
|
4,603,333 |
|
|
|
237,613 |
|
|
|
175,121 |
|
|
|
|
412,734 |
|
See accompanying notes to these condensed consolidated financial statements.
5
Condensed Consolidated Statements of Cash Flows
(In thousands) (Unaudited)
|
|
|
Nine Months Ended June 30, |
|
|||||
|
|
|
2019 |
|
|
2018 |
|
||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
35,337 |
|
|
$ |
13,861 |
|
|
Adjustments to reconcile net income to net cash flows provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
57,528 |
|
|
|
47,611 |
|
|
Stock compensation expense |
|
|
4,259 |
|
|
|
1,209 |
|
|
Deferred income taxes |
|
|
10,898 |
|
|
|
(22,139 |
) |
|
Amortization of unfavorable lease liabilities and deferred credits |
|
|
(8,379 |
) |
|
|
(8,295 |
) |
|
Amortization of debt financing costs and accretion of interest on non-interest-bearing subordinated notes |
|
|
3,147 |
|
|
|
3,577 |
|
|
Loss on extinguishment of debt |
|
|
3,616 |
|
|
|
— |
|
|
(Gain) loss on disposal of assets |
|
|
(49 |
) |
|
|
276 |
|
|
Provision for obsolete expendable parts and supplies |
|
|
477 |
|
|
|
74 |
|
|
Loss on lease termination |
|
|
9,540 |
|
|
|
15,109 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
Receivables |
|
|
5,903 |
|
|
|
(12,743 |
) |
|
Expendable parts and supplies |
|
|
(5,076 |
) |
|
|
(677 |
) |
|
Prepaid expenses and other current assets |
|
|
(7,861 |
) |
|
|
4,727 |
|
|
Accounts payable |
|
|
(4,888 |
) |
|
|
8,361 |
|
|
Accrued liabilities |
|
|
9,625 |
|
|
|
12,212 |
|
|
Net cash provided by operating activities |
|
|
114,077 |
|
|
|
63,163 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(116,731 |
) |
|
|
(98,509 |
) |
|
Sales of investment securities |
|
|
20,077 |
|
|
|
— |
|
|
Net returns of lease and equipment deposits |
|
|
621 |
|
|
|
(2,673 |
) |
|
Net cash used in investing activities |
|
|
(96,033 |
) |
|
|
(101,182 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt |
|
|
163,658 |
|
|
|
187,703 |
|
|
Principal payments on long-term debt and capital leases |
|
|
(197,409 |
) |
|
|
(158,170 |
) |
|
Debt financing costs |
|
|
(4,870 |
) |
||||