MESA

MESA AIR GROUP INC

Industrials | Micro Cap

$0.08

EPS Forecast

$142.9

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-10-03
EX-99.1 2 mesa-ex991_6.htm EX-99.1 mesa-ex991_6.htm

 

Exhibit 99.1

Mesa Air Group Reports First Quarter Fiscal 2020 Results

February 10, 2020

PHOENIX, February 10, 2020 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) today reported first quarter fiscal 2020 financial and operating results.

Highlights

 

Net income of $10.8 million or $0.31 per diluted share

 

Controllable completion factor of 99.8% compared to 99.5% in Q1 2019

 

Block hours increased 0.5% compared to Q1 2019

 

Mesa’s Q1 2020 results reflect net income of $10.8 million, or $0.31 per diluted share, compared to net income of $19.1 million, or $0.54 per diluted share for Q1 2019.  Mesa’s Q1 2020 pre-tax income was $14.3 million, compared to $25.0 million for Q1 2019.  In addition, Mesa’s EBITDA1 for Q1 2020 was $47.4 million, compared to $58.2 million in Q1 2019 and EBITDAR1 was $58.8 million, compared to $72.3 million in Q1 2019. The primary variance in pre-tax income from Q1 2019 to Q1 2020 was the anticipated increase in airframe and engine heavy maintenance of $10.7 million.

Operationally, the company ran a 99.8% controllable completion factor compared to 99.5% in Q1 2019. At United, the company operated at a 99.98% controllable completion factor in the quarter, taking only 6 cancels out of 33,876 scheduled flights compared to a 99.6% controllable completion factor in Q1 2019. At American, the company operated at a 99.5% controllable completion factor compared to a 99.2% controllable completion factor in Q1 2019. The company ran a 98.7% total completion factor, which includes weather and other uncontrollable cancellations, compared to 98.0% in Q1 2019. Mesa operated 115,562 block hours during Q1 2020, an increase of 0.5% from Q1 2019 of 115,000.

“We are pleased to see our operational performance continue to improve and we are on target to take delivery of 20 new E175s which begin in May 2020,” said Jonathan Ornstein, Chairman and Chief Executive Officer. “I would like to thank all of our employees for their hard work and dedication every day.”

“We continue to work closely with our partners to provide the highest level of customer service, reliability and on time performance,” said Brad Rich, Executive Vice President and Chief Operating Officer. “Since having access to the full complement of aircraft in our American Eagle operation, our performance has increased with November and December at a 99.7% controllable completion factor, January at 99.9% and February at 100% month-to-date.”

 

1 

See Reconciliation of non-GAAP financial measures


Outlook

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

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

 

 

Block Hours

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

Total

 

FY 2020 Actual / Guidance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Low

 

 

115,562

 

 

 

109,000

 

 

 

112,000

 

 

 

115,500

 

 

 

452,062

 

High

 

 

115,562

 

 

 

111,000

 

 

 

114,000

 

 

 

118,000

 

 

 

458,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Scheduled Heavy Engine and Airframe Maintenance

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

Total

 

FY 2020 Actual / Guidance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Low

 

$

14.8

 

 

$

20.0

 

 

$

7.0

 

 

$

7.0

 

 

$

48.8

 

High

 

$

14.8

 

 

$

23.0

 

 

$

10.0

 

 

$

10.0

 

 

$

57.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass-through Maintenance Expense

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

Total

 

FY 2020 Actual / Guidance

 

$

7.4

 

 

$

10.5

 

 

$

9.4

 

 

$

9.4

 

 

$

36.7

 

 

 

Fleet Count

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY '20 Q1

 

 

FY '20 Q2

 

 

FY '20 Q3

 

 

FY '20 Q4

 

 

 

FY '21

 

 

 

 

Qtr Ended

 

 

Qtr Ended

 

 

Qtr Ended

 

 

Qtr Ended

 

 

 

FY Ended

 

 

 

 

Dec '19

 

 

Mar '20

 

 

Jun '20

 

 

Sep '20

 

 

 

Sep '21

 

Fleet Count

Partner

 

(Actual)

 

 

(Forecast)

 

 

(Forecast)

 

 

(Forecast)

 

 

 

(Forecast)

 

   E-175

United

 

 

60

 

 

 

60

 

 

 

62

 

 

 

68

 

 

 

 

80

 

   CRJ-900

American

 

 

60

 

 

 

59

 

 

 

59

 

 

 

59

 

 

 

 

59

 

   CRJ-700

United

 

 

20

 

 

 

20

 

 

 

18

 

 

 

12

 

 

 

 

 

Total CPA

 

 

 

140

 

 

 

139

 

 

 

139

 

 

 

139

 

 

 

 

139

 

Non-CPA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   CRJ-700

Leased

 

 

 

 

 

 

 

 

2

 

 

 

8

 

 

 

 

20

 

   CRJ-900

Unassigned

 

 

4

 

 

 

5

 

 

 

5

 

 

 

5

 

 

 

 

5

 

   CRJ-200

Unassigned

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

 

1

 

Total Fleet

 

 

 

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 months ended December 31, 2019 and the three months ended December 31, 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 December 31, 2019

 

 

 

Income Before

Taxes

 

 

Income Tax

(Expense)/Benefit

 

 

Net

Income

 

 

Net Income

per

Diluted Share

 

GAAP Income

 

 

14,320

 

 

 

(3,535

)

 

 

10,785

 

 

$

0.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

12,628

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

(58

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

20,552

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

 

47,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft Rent

 

 

11,329

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAR

 

 

58,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31, 2018

 

 

 

Income Before

Taxes

 

 

Income Tax

(Expense)/Benefit

 

 

Net

Income

 

 

Net Income

per

Diluted Share

 

GAAP Income

 

 

25,030

 

 

 

(5,949

)

 

 

19,081

 

 

$

0.54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

14,842

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

(156

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

18,491

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

 

58,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft Rent

 

 

14,119

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAR

 

 

72,326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Mesa Air Group will host a conference call with analysts on Monday, February 10 at 4:30pm ET/1:30pm PT. 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/mmc/p/q4mi3ymq. 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 January 31st, 2020, Mesa operated a fleet of 145 aircraft with an average of approximately 702 daily departures and 3,600 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 block hours, scheduled heavy engine and airframe maintenance, and pass-through maintenance expense forecast of Mesa for the second, third and fourth quarters of fiscal 2020, (ii) the fleet forecast for the second, third and fourth quarters of fiscal 2020 and year ended fiscal 2021, and (iii) delivery dates of the 20 E175s scheduled to begin in May 2020. 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

December 31,

 

 

 

 

2019

 

 

2018

 

 

Operating revenues:

 

 

 

 

 

 

 

 

 

Contract revenue

 

$

171,800

 

 

$

170,449

 

 

Pass-through and other

 

 

12,236

 

 

 

7,707

 

 

Total operating revenues

 

 

184,036

 

 

 

178,156

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Flight operations

 

 

52,644

 

 

 

53,245

 

 

Fuel

 

 

169

 

 

 

121

 

 

Maintenance

 

 

58,095

 

 

 

39,802

 

 

Aircraft rent

 

 

11,329

 

 

 

14,119

 

 

Aircraft and traffic servicing

 

 

1,064

 

 

 

934

 

 

General and administrative

 

 

12,996

 

 

 

12,214

 

 

Depreciation and amortization

 

 

20,552

 

 

 

18,491

 

 

Total operating expenses

 

 

156,849

 

 

 

138,926

 

 

Operating income

 

 

27,187

 

 

 

39,230

 

 

 

 

 

 

 

 

 

 

 

 

Other (expenses) income, net:

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(12,628

)

 

 

(14,842

)

 

Interest income

 

 

58

 

 

 

156

 

 

Other (expense) income, net

 

 

(297

)

 

 

486

 

 

Total other (expense), net

 

 

(12,867

)

 

 

(14,200

)

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

14,320

 

 

 

25,030

 

 

Income tax expense

 

 

3,535

 

 

 

5,949

 

 

Net income

 

$

10,785

 

 

$

19,081

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share attributable to common shareholders

 

 

 

 

 

 

 

 

 

Basic

 

$

0.31

 

 

$

0.55

 

 

Diluted

 

$

0.31

 

 

$

0.54

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

Basic

 

 

35,023

 

 

 

34,518

 

 

Diluted

 

 

35,182

 

 

 

35,113

 

 

 

 


MESA AIR GROUP, INC.

Condensed Consolidated Balance Sheets

(In thousands, except shares) (Unaudited)

 

 

December 31,

2019

 

 

September 30,

2019

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

57,763

 

 

$

68,855

 

Restricted cash

 

 

3,448

 

 

 

3,646

 

Receivables, net

 

 

24,121

 

 

 

23,080

 

Expendable parts and supplies, net

 

 

22,400

 

 

 

21,337

 

Prepaid expenses and other current assets

 

 

4,502

 

 

 

40,923

 

Total current assets

 

 

112,234

 

 

 

157,841

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

1,261,267

 

 

 

1,273,585

 

Intangibles, net

 

 

9,157

 

 

 

9,532

 

Lease and equipment deposits

 

 

4,872

 

 

 

2,167

 

Operating Lease right-of-use assets

 

 

146,071

 

 

 

 

Other Assets

 

 

8,400

 

 

 

8,792

 

TOTAL ASSETS

 

 

1,542,001

 

 

 

1,451,917

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Current portion of long-term debt and financing leases

 

$

166,089

 

 

$

165,900

 

Current maturities of operating leases

 

 

37,674

 

 

 

 

Accounts payable

 

 

47,750

 

 

 

49,930

 

Accrued compensation

 

 

10,048

 

 

 

11,988

 

Other accrued expenses

 

 

34,350

 

 

 

28,888

 

Total current liabilities

 

 

295,911

 

 

 

256,706

 

 

 

 

 

 

 

 

 

 

NONCURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt and financing leases - excluding current portion

 

 

641,017

 

 

 

677,423

 

Noncurrent operating lease liabilities

 

 

95,992

 

 

 

 

Deferred credits

 

 

11,032

 

 

 

12,134

 

Deferred income taxes

 

 

58,506

 

 

 

55,303

 

Other noncurrent liabilities

 

 

1,352

 

 

 

24,483

 

Total noncurrent liabilities

 

 

807,899

 

 

 

769,343

 

Total liabilities

 

 

1,103,810

 

 

 

1,026,049

 

 

 

 

 

 

 

 

 

 

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; 33,039,126 (2020) and 31,413,287 (2019) shares issued

   and outstanding, and 1,988,472 (2020) and 3,600,953 (2019) warrants

   issued and outstanding

 

 

239,783

 

 

 

238,504

 

Retained earnings

 

 

198,408

 

 

 

187,364

 

Total stockholders' equity

 

 

438,191

 

 

 

425,868

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

1,542,001

 

 

$

1,451,917

 

 


Operating Highlights (unaudited)

 

 

Three months ended

 

 

 

 

December 31

 

 

 

 

2019

 

 

2018

 

 

Change

 

 

Available Seat Miles (thousands)

 

 

2,735,386

 

 

 

2,708,899

 

 

 

1.0

%

 

Block Hours

 

 

115,562

 

 

 

115,000

 

 

 

0.5

%

 

Departures

 

 

62,725

 

 

 

61,534

 

 

 

1.9

%

 

Average Stage Length (miles)

 

 

573

 

 

 

578

 

 

 

-0.9

%

 

Passengers

 

 

3,697,138

 

 

 

3,620,115

 

 

 

2.1

%

 

 

 

 

Source: Mesa Air Group, Inc.

Mesa Air Group, Inc.
Investor Relations
Brian Gillman
Investor.Relations@mesa-air.com
(602) 685-4010