Mesa Air Group, Inc. (NASDAQ: MESA) today reported second
quarter fiscal 2023 financial and operating results.
Fiscal Second Quarter
Update:
- Total operating revenues of $121.8
million
- Pre-tax loss of $37.2 million, net loss of $35.1
million or $(0.88) per diluted share
- Adjusted net loss1 of $21.3 million or
$(0.53) per diluted share
- Adjusted net loss excludes $13.8 million primarily
related to impairment of assets held for sale
- Initiated CRJ-900 transition to United Airlines in
March, with last American Airlines flight operated April
3rd
- Experiencing pilot attrition below pre-COVID
levels
- Reduced debt by approximately $80 million primarily
with proceeds from asset sales
Jonathan Ornstein, Chairman and CEO, said, “While our financial
results reflect the ongoing transition of CRJ flying to United, we
believe these actions will prove to be the right long-term
strategic decision for the company. We began operating CRJ-900
flights for United Airlines in March, representing the culmination
of months of diligent preparation and coordination between Mesa and
United teams. We have already started to realize significantly
improved pilot retention and attraction as a result of our expanded
agreement with United. While we were ultimately more conservative
in the timing of our transition than we had projected through
second-quarter end, we have now transitioned 24 CRJ-900s.”
Fiscal Second Quarter Details:
Total operating revenues in Q2 2023 were $121.8 million, a
decrease of $1.4 million, or 1.1%, from $123.2 million for Q2 2022.
Contract revenue decreased $8.2 million, or 7.3%. These decreases
were driven by deferred revenue and lower block hours, partially
offset by higher United block-hour rates for new pilot payscales.
Pass-through revenue, driven by maintenance and property taxes,
increased by $6.8 million. Mesa’s Q2 2023 results include, per
GAAP, the deferral of $5.7 million, versus the recognition of $0.8
million of previously deferred revenue in Q2 2022. The remaining
deferred revenue balance of $24.5 million will be recognized as
flights are completed over the remaining term of the United
contract.
Total operating expenses in Q2 2023 were $148.7 million, a
decrease of $19.3 million, or 11.5%, versus Q2 2022. This decrease
was primarily due to $22.7 million lower non-cash impairment of
assets held for sale versus Q2 2022, an $8.6 million decrease in
aircraft rent attributable to the reclassification from operating
lease to finance lease for certain CRJ-900s, and a $4.2 million
decrease in depreciation primarily driven by the lower depreciable
base from the CRJ-900 asset impairment charge in Q4 2022. The
decrease was partially offset by a $12.4 million increase in flight
operations expense to $54.8 million, reflecting higher pilot pay
scales and increased training costs as we continue to drive pilot
throughput, as well as a $5.7 million increase in general and
administrative expense, reflecting higher pass-through property tax
costs. Total adjusted operating expenses, excluding one-time items,
were $132 million, an increase of 2.7% compared to the prior year
period.
Mesa’s Q2 2023 results reflect a net loss of $35.1 million, or
$(0.88) per diluted share, compared to a net loss of $42.8 million,
or $(1.19) per diluted share for Q2 2022. Mesa’s Q2 2023 adjusted
net loss1 was $21.3 million, or $(0.53) per diluted share, versus
an adjusted net loss1 of $10.3 million, or $(0.29) per diluted
share, in Q2 2022.
Mesa’s Adjusted EBITDA1 for Q2 2023 was $7.1 million, compared
to $15.8 million in Q2 2022, and Adjusted EBITDAR1 was $7.9 million
for Q2 2023, compared to $25.2 million in Q2 2022.
Operationally, the Company reported a controllable completion
factor of 99.6% for United and 99.8% for American during Q2 2023.
This is compared to a controllable completion factor of 96.7% for
United and 96.8% for American during Q2 2022. 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 98.5% for
United and 94.7% for American during Q2 2023. This is compared to a
total completion factor of 93.7% for United and 93.5% for American
during Q2 2022.
For Q2 2023, 55% of the Company’s total revenue
was derived from our contracts with United, 40% from American, 4%
from DHL, and 1% from leases of aircraft to a third party. Upon our
completion of the transition of the American CRJ-900s to United,
our contracted regional fleet will consist of 80 large (70/76
seats) jets, comprising a mix of E-175s and CRJ-900s. Additionally,
we will continue to operate four 737-400/800s at DHL.
Balance Sheet and Cash Flow:
Mesa ended the quarter at $51.4 million in
unrestricted cash and equivalents. As of March 31, 2023, the
Company had $608.7 million in total debt secured primarily with
aircraft and engines.
During the quarter, the Company closed on the
sale of 4 of the 11 CRJ-900s agreed to be sold to a third-party.
Mesa also sold to United the remaining eight CRJ-550s and ten out
of the 30 engines previously agreed upon. Net proceeds from these
transactions were used to pay down $52 million of debt.
Additionally, we made $28 million of scheduled debt payments in the
quarter.
Conference Call Details:
Mesa Air Group will host a conference call with analysts on
May 9th at 4:30 pm EDT. 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://investor.mesa-air.com.
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 105 cities in 42 states, the
District of Columbia, the Bahamas, Cuba, and Mexico as well as
cargo services out of Cincinnati/Northern Kentucky International
Airport. As of March 31, 2023, Mesa operated or leased a fleet of
109 aircraft with approximately 325 daily departures and 2,388
employees. Mesa operates all of its flights as either American
Eagle, United Express, or DHL Express flights pursuant to the terms
of capacity purchase agreements entered into with American
Airlines, Inc. and United Airlines, Inc. and a flight service
agreement with 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. 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.
Contact:
Mesa Air Group, Inc.MediaMedia@mesa-air.com
Investor RelationsDoug Cooperinvestor.relations@mesa-air.com
|
MESA AIR
GROUP, INC. |
Consolidated Statements of Operations and Comprehensive
(Loss) Income |
(In thousands,
except per share amounts) (Unaudited) |
|
|
|
Three Months EndedMarch 31 |
|
Six Months EndedMarch 31 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Operating revenues: |
|
|
|
|
|
|
|
|
Contract
revenue (2023—$52,399 and $111,769 |
|
$ |
103,782 |
|
|
$ |
111,988 |
|
|
$ |
232,232 |
|
|
$ |
248,882 |
|
and 2022—$48,295 and $110,880 from related |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
party) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass-through and other revenue |
|
|
18,052 |
|
|
|
11,225 |
|
|
|
36,776 |
|
|
|
22,088 |
|
Total operating revenues |
|
|
121,834 |
|
|
|
123,213 |
|
|
|
269,008 |
|
|
|
270,970 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Flight
operations |
|
|
54,830 |
|
|
|
42,410 |
|
|
113,150 |
|
|
90,008 |
|
Maintenance |
|
|
45,985 |
|
|
|
47,357 |
|
|
|
94,272 |
|
|
106,338 |
|
Aircraft
rent |
|
|
835 |
|
|
|
9,434 |
|
|
|
4,918 |
|
|
19,020 |
|
General
and administrative |
|
|
13,538 |
|
|
|
7,860 |
|
|
|
27,526 |
|
|
20,438 |
|
Depreciation and amortization |
|
|
16,541 |
|
|
|
20,747 |
|
|
|
31,744 |
|
|
41,775 |
|
Impairment of assets held for sale |
|
|
16,743 |
|
|
|
39,475 |
|
|
|
20,462 |
|
|
39,475 |
|
Other
operating expenses |
|
|
233 |
|
|
|
685 |
|
|
|
1,359 |
|
|
2,657 |
|
Total operating expenses |
|
|
148,705 |
|
|
|
167,968 |
|
|
|
293,431 |
|
|
|
319,711 |
|
Operating income (loss) |
|
|
(26,871 |
) |
|
|
(44,755 |
) |
|
|
(24,423 |
) |
|
|
(48,741 |
) |
|
|
|
|
|
|
|
|
|
Other
income (expense), net: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(13,030 |
) |
|
|
(8,120 |
) |
|
|
(24,306 |
) |
|
|
(16,050 |
) |
Interest income |
|
|
49 |
|
|
|
42 |
|
|
|
120 |
|
|
|
93 |
|
Gain on investments, net |
|
|
2,095 |
|
|
|
(2,261 |
) |
|
|
416 |
|
|
|
(8,723 |
) |
Other income (expense), net |
|
|
538 |
|
|
|
(71 |
) |
|
|
955 |
|
|
|
(130 |
) |
Total other income (expense), net |
|
|
(10,348 |
) |
|
|
(10,410 |
) |
|
|
(22,815 |
) |
|
|
(24,810 |
) |
Income
(loss) before taxes |
|
|
(37,219 |
) |
|
|
(55,165 |
) |
|
|
(47,238 |
) |
|
|
(73,551 |
) |
Income
tax expense (benefit) |
|
|
(2,097 |
) |
|
|
(12,382 |
) |
|
|
(3,027 |
) |
|
|
(16,494 |
) |
Net
income (loss) |
|
$ |
(35,122 |
) |
|
$ |
(42,783 |
) |
|
$ |
(44,211 |
) |
|
$ |
(57,057 |
) |
|
|
|
|
|
|
|
|
|
Net
income (loss) per share attributable to common shareholders |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.88 |
) |
|
$ |
(1.19 |
) |
|
$ |
(1.16 |
) |
|
$ |
(1.58 |
) |
Diluted |
|
$ |
(0.88 |
) |
|
$ |
(1.19 |
) |
|
$ |
(1.16 |
) |
|
$ |
(1.58 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
39,932 |
|
|
|
36,048 |
|
|
|
38,135 |
|
|
|
36,005 |
|
Diluted |
|
|
39,932 |
|
|
|
36,048 |
|
|
|
38,135 |
|
|
|
36,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MESA AIR GROUP, INC. |
Consolidated Balance Sheets |
(In thousands, except shares) (Unaudited) |
|
|
March 31, 2023 |
|
September 30,2022 |
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
|
$ |
51,428 |
|
$ |
57,683 |
Restricted cash |
|
|
3,144 |
|
|
3,342 |
Receivables, net |
|
|
9,924 |
|
|
3,978 |
Expendable parts and supplies, net |
|
|
26,754 |
|
|
26,715 |
Prepaid expenses and other current assets |
|
|
6,341 |
|
|
6,616 |
Total current assets |
|
|
97,591 |
|
|
98,334 |
|
|
|
|
|
Property and equipment,
net |
|
|
868,027 |
|
|
865,254 |
Intangible assets, net |
|
|
— |
|
|
3,842 |
Lease and equipment
deposits |
|
|
1,686 |
|
|
6,085 |
Operating lease right-of-use
assets |
|
|
11,593 |
|
|
43,090 |
Deferred heavy maintenance,
net |
|
|
9,532 |
|
|
9,707 |
Assets held for sale |
|
|
40,530 |
|
|
73,000 |
Other
assets |
|
|
26,398 |
|
|
16,290 |
TOTAL ASSETS |
|
$ |
1,055,357 |
|
$ |
1,115,602 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Current portion of long-term debt and finance leases ($30,630 and
$0 from related party) |
|
$ |
145,046 |
|
$ |
97,218 |
Current portion of deferred revenue |
|
|
5,174 |
|
|
385 |
Current maturities of operating leases |
|
|
5,562 |
|
|
17,233 |
Accounts payable |
|
|
48,480 |
|
|
59,386 |
Accrued compensation |
|
|
9,745 |
|
|
11,255 |
Other accrued expenses |
|
|
28,081 |
|
|
29,000 |
Total current liabilities |
|
|
242,088 |
|
|
214,477 |
|
|
|
|
|
NONCURRENT LIABILITIES: |
|
|
|
|
Long-term debt and finance leases, excluding current portion |
|
|
463,646 |
|
|
502,517 |
Noncurrent operating lease liabilities |
|
|
8,459 |
|
|
16,732 |
Deferred credits ($1,965 and $2,193 from related party) |
|
|
3,300 |
|
|
3,082 |
Deferred income taxes |
|
|
14,512 |
|
|
17,719 |
Deferred revenue, net of current portion |
|
|
19,306 |
|
|
23,682 |
Other noncurrent liabilities |
|
|
28,829 |
|
|
29,219 |
Total noncurrent liabilities |
|
|
538,052 |
|
|
592,951 |
Total liabilities |
|
|
780,140 |
|
|
807,428 |
|
|
|
|
|
STOCKHOLDERS’ EQUITY: |
|
|
|
|
Common stock of no par value
and additional paid-in capital, 125,000,000 shares authorized;
40,619,274 (2023) and 36,376,897 (2022) shares issued and
outstanding, 4,899,497 (2023) and 4,899,497 (2022) warrants issued
and outstanding |
|
|
270,432 |
|
|
259,177 |
Retained earnings |
|
|
4,785 |
|
|
48,997 |
Total stockholders’ equity |
|
|
275,217 |
|
|
308,174 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
1,055,357 |
|
$ |
1,115,602 |
MESA AIR
GROUP, INC. |
Operating
Highlights (unaudited) |
|
|
|
Three months ended |
|
|
March 31 |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
Available seat miles
(thousands) |
|
1,065,771 |
|
|
1,616,896 |
|
|
-34.1% |
|
Block
hours |
|
48,186 |
|
|
65,613 |
|
|
-26.6% |
|
Average stage length
(miles) |
|
542 |
|
|
671 |
|
|
-19.2% |
|
Departures |
|
26,450 |
|
|
31,983 |
|
|
-17.3% |
|
Passengers |
|
1,545,489 |
|
|
1,921,635 |
|
|
-19.6% |
|
Controllable
completion factor* |
|
|
|
|
|
|
American |
|
99.76% |
|
|
96.76% |
|
|
3.1% |
|
United |
|
99.63% |
|
|
96.71% |
|
|
3.0% |
|
Total completion
factor** |
|
|
|
|
|
|
American |
|
94.68% |
|
|
93.51% |
|
|
1.3% |
|
United |
|
98.48% |
|
|
93.74% |
|
|
5.1% |
|
|
|
|
|
|
|
|
|
|
|
*Controllable completion factor excludes
cancellations due to weather and air traffic control**Total
completion factor includes all cancellations
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 and six months ended March
31, 2023 and March 31, 2022. 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 or loss. 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, 2023 |
|
Three Months Ended March 31, 2022 |
|
Income (Loss) Before Taxes |
Income Tax (Expense)Benefit |
Net Income (Loss) |
Net Income (Loss) per Diluted Share |
|
Income(Loss)Before
Taxes |
Income Tax (Expense)Benefit |
Net Income
(Loss) |
Net Income (Loss) per Diluted Share |
GAAP income (loss) |
$ |
(37,219 |
) |
$ |
2,097 |
|
$ |
(35,122 |
) |
$ |
(0.88 |
) |
|
$ |
(55,165 |
) |
$ |
12,382 |
|
$ |
(42,783 |
) |
$ |
(1.19 |
) |
Gain on investments, net |
|
(2,095 |
) |
|
139 |
|
|
(1,956 |
) |
$ |
(0.05 |
) |
|
|
2,261 |
|
|
(522 |
) |
|
1,739 |
|
$ |
0.05 |
|
Deferred financing write-off
on sale of assets |
|
663 |
|
|
(44 |
) |
|
619 |
|
$ |
0.02 |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Gain of disposal of fixed
assets |
|
(549 |
) |
|
36 |
|
|
(513 |
) |
$ |
(0.01 |
) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Asset Impairment |
|
16,743 |
|
|
(1,112 |
) |
|
15,631 |
|
$ |
0.39 |
|
|
|
39,843 |
|
|
(9,097 |
) |
|
30,746 |
|
$ |
0.85 |
|
Adjusted income |
|
|
|
|
|
|
|
|
|
(loss) |
|
(22,457 |
) |
|
1,117 |
|
|
(21,340 |
) |
$ |
(0.53 |
) |
|
|
(13,061 |
) |
|
2,763 |
|
|
(10,298 |
) |
$ |
(0.29 |
) |
Interest expense |
|
13,030 |
|
|
|
|
|
8,120 |
|
|
|
Interest income |
|
(49 |
) |
|
|
|
|
|
(42 |
) |
|
|
|
Depreciation and
amortization |
|
16,541 |
|
|
|
|
|
|
20,747 |
|
|
|
|
Adjusted EBITDA |
|
7,065 |
|
|
|
|
|
|
15,764 |
|
|
|
|
Aircraft rent |
|
835 |
|
|
|
|
|
|
9,434 |
|
|
|
|
Adjusted EBITDAR |
$ |
7,900 |
|
|
|
|
|
$ |
25,198 |
|
|
|
|
|
Six Months Ended March 31, 2023 |
|
Six Months Ended March 31, 2022 |
|
Income (Loss) Before Taxes |
Income Tax (Expense)Benefit |
Net Income (Loss) |
Net Income (Loss) per Diluted Share |
|
Income(Loss)Before
Taxes |
Income Tax (Expense)Benefit |
Net Income(Loss) |
Net Income (Loss) per Diluted Share |
GAAP income (loss) |
$ |
(47,238 |
) |
$ |
3,027 |
|
$ |
(44,211 |
) |
$ |
(1.16 |
) |
|
$ |
(73,551 |
) |
$ |
16,494 |
|
$ |
(57,057 |
) |
$ |
(1.58 |
) |
Adjustments(1)(2)(3)(4)(5)(6)(7)(8) |
|
20,160 |
|
|
(1,568 |
) |
|
18,592 |
|
$ |
0.49 |
|
|
|
48,566 |
|
|
(11,089 |
) |
|
37,477 |
|
$ |
1.04 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted income |
|
|
|
|
|
|
|
|
|
(loss) |
|
(27,078 |
) |
|
1,459 |
|
|
(25,619 |
) |
$ |
(0.67 |
) |
|
|
(24,985 |
) |
|
5,405 |
|
|
(19,580 |
) |
$ |
(0.54 |
) |
Interest expense |
|
24,306 |
|
|
|
|
|
|
16,050 |
|
|
|
|
Interest income |
|
(120 |
) |
|
|
|
|
|
(93 |
) |
|
|
|
Depreciation and
amortization |
|
31,744 |
|
|
|
|
|
|
41,775 |
|
|
|
|
Adjusted EBITDA |
|
28,852 |
|
|
|
|
|
|
32,747 |
|
|
|
|
Aircraft rent |
|
4,918 |
|
|
|
|
|
|
19,020 |
|
|
|
|
Adjusted EBITDAR |
$ |
33,770 |
|
|
|
|
|
$ |
51,767 |
|
|
|
|
(1) $0.4 million impairment loss on operating
lease right of use asset related to the abandonment of one the
Company’s leased facilities during the six months ended March 31,
2022.(2) $39.5 million impairment loss on held for
sale accounting treatment on twelve (12) CRJ 900 aircraft during
the six months ended March 31, 2022.(3) $8.7
million loss resulting from changes in the fair value of the
Company’s investments in equity securities for the six months ended
March 31, 2022.(4) $16.7 million impairment loss
on Held for Sale accounting treatment on seven (7) CRJ 900 aircraft
during the six months ended March 31,
2023.(5) $3.7 million impairment loss on
intangible asset during the six months ended March 31,
2023.(6) $0.5 million gain from sale of ten (10)
engines during the six months ended March 31,
2023.(7) $0.7 million loss on deferred financing
costs related to retirement of debts during the six months ended
March 31, 2023.(8) $0.4 million gain resulting
from changes in the fair value of the Company’s investments in
equity securities for the six months ended March 31, 2023.
Source: Mesa Air Group, Inc.
Mesa Air (NASDAQ:MESA)
過去 株価チャート
から 4 2024 まで 5 2024
Mesa Air (NASDAQ:MESA)
過去 株価チャート
から 5 2023 まで 5 2024