PHOENIX, Aug. 10 /PRNewswire-FirstCall/ -- Mesa Air Group, Inc. (Nasdaq:
MESA) (the "Company") announced today a third quarter income from continuing
operations of $1.7 million on operating revenues of $232.6 million. Total
operating revenues for the third quarter of 2009 decreased $121.3 million, or
34.3% primarily resulting from a year-over-year decrease in capacity and lower
fuel revenue. The income of $1.7 million, or $0.01 per share on a diluted
basis, compares to income from continuing operations of $1.8 million, or $0.07
per diluted share for the same period of fiscal 2008. Pro forma net income
for the quarter was $2.3 million or $0.02 per diluted share compared to a net
loss of $2.5 million or $0.09 per diluted share for the same period of fiscal
2008. Pro forma net income for the quarter includes adjustments for the
following items on an after tax basis: $1.4 million for income from equity
method investments, $1.2 million for a maintenance reserve and $0.9 million
for costs associated with our Chinese joint venture.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990210/LAW065)
Total Available Seat Miles ("ASMs") for the third quarter of fiscal 2009
decreased 10.8% from the third quarter of 2008. The decrease was primarily
due to a reduction in the number of aircraft flown from 161 as of June 30,
2008 to 142 as of June 30, 2009. At June 30, 2009 Mesa's operating fleet was
comprised of 68 50-seat regional jets, 38 86-seat regional jets, 20 66-seat
regional jets, and 16 37-seat turboprops. As of June 30, 2009, the Company
operated 48 regional jets and six turboprops on a codeshare basis with US
Airways, 46 regional jets and ten turboprops for United, 22 regional jets for
Delta, and had five operational spares. The Company also flew five regional
jets in Hawaii, operating as go!.
At June 30, 2009, the Company had cash, cash equivalents, and marketable
securities (including current and noncurrent restricted cash) of $35.0 million
(including $14.1 million of restricted cash), compared to $64.9 million
(including $13.9 million of restricted cash) at September 30, 2008. The
decrease in the cash position is primarily attributed to the timing of certain
payments and fluctuations in working capital.
Events during the third quarter and recent developments:
-- Delta: On April 1, 2009, we removed six ERJ-145 aircraft from the
Delta Connection Agreement. Effective April 1, 2009, the Company operated
22 ERJ-145 aircraft pursuant to its Delta Connection Agreement.
On July 2, 2009, the U.S. Court of Appeals affirmed the preliminary
injunction against Delta Air Lines. The decision effectively enjoined Delta
from terminating Freedom Airlines' Delta Connection Agreement covering certain
ERJ-145 aircraft; the preliminary injunction will remain in place while the
case proceeds in the U.S. District Court. With both the U.S. District Court
and now the U.S. Court of Appeals finding that Mesa has demonstrated a
substantial likelihood of success on its claims, Mesa looks forward to having
this matter fully and finally resolved at trial.
-- China: In April 2009, the Company completed transactions divesting
its indirect interest in the Kunpeng Airlines joint venture. Five aircraft
were returned from this joint venture.
-- go!: We celebrated our third anniversary operating in Hawaii as go!.
During the past three years we have continued to expand our presence as a
leading inter-island transporter. go! has carried over two million passengers
and has become a company with robust personality and established values. For
the first nine months of fiscal 2009 go! reported operating losses of $4.7
million on operating revenues of $29.9 million compared to operating losses of
$22.3 million on operating revenues of $29.0 million for the same period in
the prior year.
"While we continue to face significant challenges in the upcoming
quarters, we continue to strive to serve the needs of our partners while
providing excellent customer service to our passengers," said Mesa Chairman
and CEO, Jonathan Ornstein. "On behalf of the entire executive staff, I
would like to express our gratitude to thank our airline partners, vendors,
suppliers, and hardworking employees for their continued dedication and
support."
Operating Data Operating Data
Three Months Nine Months
Ended Ended
-------------- --------------
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Passengers 3,281,626 3,461,067 9,359,489 10,314,737
Available seat miles
("ASM") (000's) 1,813,730 2,032,769 5,246,721 6,137,096
Revenue passenger miles
(000's) 1,446,825 1,564,790 4,008,024 4,544,107
Load factor 79.8% 77.0% 76.4% 74.0%
Yield per revenue
passenger mile (cents) 16.1 22.6 18.2 22.0
Revenue per ASM (cents) 12.8 17.4 13.9 16.3
Operating cost per ASM
(cents) 12.6 17.6 13.6 15.9
Average stage length
(miles) 398.5 402.6 385.6 400.4
Number of operating
aircraft in fleet 142 161 142 161
Gallons of fuel
consumed 29,653,004 39,186,545 95,504,456 120,628,063
Block hours flown 107,450 120,424 323,896 369,800
Departures 71,759 78,448 214,957 241,605
MESA AIR GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Nine Months Ended
Ended June 30, June 30,
--------------- -----------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited)
(In thousands, except per share data)
Operating revenues:
Passenger $230,253 $350,598 $721,317 $990,641
Freight and other 2,346 3,316 9,416 10,194
----- ----- ----- ------
Total operating revenues 232,599 353,914 730,733 1,000,835
Operating expenses:
Flight operations 81,003 90,545 251,307 273,323
Fuel 51,435 149,185 180,293 383,863
Maintenance 56,739 58,286 162,700 197,180
Aircraft and traffic
servicing 16,609 20,602 50,881 60,512
Promotion and sales 1,303 1,724 3,716 3,427
General and administrative 11,771 27,208 38,004 63,184
Depreciation and amortization 9,485 9,523 27,515 28,879
Loss contingency - - - (34,100)
Bankruptcy settlement - - - (27)
Impairment of long-lived
assets 41 - 391 -
------- ------- ------- -------
Total operating expenses 228,386 357,073 714,807 976,241
------- ------- ------- -------
Operating income (loss) 4,213 (3,159) 15,926 24,594
Other income (expense):
Interest expense (4,639) (7,999) (18,227) (27,399)
Interest income 932 1,122 3,029 5,641
Gain on extinguishment of
debt - 7,326 45,317 14,680
Loss from equity method
investments 2,308 1,269 749 (289)
Other income (expense) (539) 4,284 (1,430) 10,483
------ ----- ------ ------
Total other income
(expense) (1,938) 6,002 29,438 3,116
------ ----- ------ -----
Income (loss) from continuing
operations before taxes 2,275 2,843 45,364 27,710
Income tax provision (benefit) 620 1,025 65,498 11,187
------ ----- ------ ------
Net income (loss) from continuing
operations 1,655 1,818 (20,134) 16,523
Loss from discontinued
operations, net of taxes (4,377) (5,578) (4,024) (15,070)
------ ------ ------ -------
Net income (loss) $(2,722) $(3,760) $(24,158) $1,453
======= ======= ======== =======
Basic income (loss) per common
share:
Income (loss) from continuing
operations $0.01 $0.07 $(0.23) $0.61
Loss from discontinued
operations (0.03) (0.21) (0.05) (0.55)
----- ----- ----- -----
Net income (loss) per share $(0.02) $(0.14) $(0.28) $0.06
====== ====== ====== =====
Diluted income (loss) per common
share:
Income (loss) from continuing
operations $0.01 $0.07 $(0.23) $0.55
Loss from discontinued
operations (0.03) (0.21) (0.05) (0.43)
----- ----- ----- -----
Net income (loss) per share $(0.02) $(0.14) $(0.28) $0.12
====== ====== ====== =====
Three Months Nine Months
Ended June 30, Ended June 30,
--------------- ---------------
2009 2008 2009 2008
---- ---- ---- ----
PRO FORMA (After tax):
Net income (loss) from continuing
operations $1,655 $1,818 $(20,134) $16,523
Adjustment to income tax
expense - - 54,039 -
Net (gain)/loss on securities - (1,189) - (5,441)
(Gain)/loss on disposal (26) (264) 175 180
Lease return costs - 330 1,332 2,129
(Gain) on extinguishment of
debt - (4,514) (27,925) (9,046)
(Gain)/loss associated with the
return of aircraft - (1,271) - 3,865
Code share partner settlement - 1,878 - 1,878
Maintenance reserve 1,210 - 1,210 -
Impairment charges 25 - 241 -
Inventory write-down - - 1,137 -
Interest rate cap - - - 452
go! legal expense 36 778 (131) 1,822
Costs on China JV 865 706 2,788 1,741
Loss contingency - Hawaiian
settlement - - - (21,012)
(Gain) Loss from equity method
investments (1,422) (782) (461) 177
------ ----- ----- -----
Pro forma net income (loss) from
continuing operations $2,343 $(2,510) $12,271 $(6,732)
======= ======= ======= =======
Pro forma income (loss) per
common share:
Basic $0.02 $(0.09) $0.14 $(0.25)
Diluted $0.02 $(0.09) $0.14 $(0.25)
To supplement our consolidated financial statements presented in
accordance with GAAP, the Company uses non-GAAP measures of pro forma net
income (loss) and pro forma earnings (loss) per share, which are adjusted from
our GAAP results as shown above. These non-GAAP adjustments are provided to
enhance the user's overall understanding of our current financial performance.
We believe the non-GAAP results provide useful information to both management
and investors by excluding certain charges and other amounts that we believe
are not indicative of our core operating results. These non-GAAP measures are
included to provide investors and management with an alternative method for
assessing the Company's operating results in a manner that is focused on the
performance of the Company's ongoing operations and to provide a more
consistent basis for comparison between quarters. In addition, since we have
historically reported pro forma results to the investment community, we
believe the inclusion of non-GAAP numbers provides consistency in our
financial reporting. These measures are not in accordance with or an
alternative for GAAP and may be different from pro forma measures used by
other companies.
Mesa currently operates 142 aircraft with approximately 800 daily system
departures to 108 cities, 38 states, the District of Columbia, Canada, and
Mexico. Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US Airways and
United Airlines, respectively, and independently as Mesa Airlines and go!. In
June 2006 Mesa launched inter-island Hawaiian service as go!. This operation
links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and
Lihue. The Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,700 employees and was awarded Regional Airline of the Year
by Air Transport World magazine in 1992 and 2005.
This press release contains various forward-looking statements that are
based on management's beliefs, as well as assumptions made by and information
currently available to management. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable; it
can give no assurance that such expectations will prove to have been correct.
Such statements are subject to certain risks, uncertainties and assumptions.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially
from those anticipated, estimated, projected or expected.
http://www.mesa-air.com/
SOURCE: Mesa Air Group, Inc.
CONTACT:
Mesa Air Group, Inc., +1-602-685-4010
Web Site: http://www.mesa-air.com
