• Mesa Air Group Reports First Quarter Fiscal 2022 Results

    المصدر: Nasdaq GlobeNewswire / 09 فبراير 2022 15:01:00   America/Chicago

    PHOENIX, Feb. 09, 2022 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) today reported first quarter fiscal 2022 financial and operating results.

    Financial Summary:

    • Q1 pre-tax loss of $18.4 million, net loss of $14.3 million or $(0.40) per diluted share.
    • Q1 adjusted net loss1 of $9.3 million or $(0.26) per diluted share.

    Fiscal Year Q1 Results:

    Mesa’s Q1 FY22 results reflect a net loss of $14.3 million, or $(0.40) per diluted share, compared to net income of $14.1 million, or $0.39 per diluted share for Q1 FY21. Mesa’s Q1 FY22 adjusted net loss1 of $9.3 million was down compared to net income of $13.2 million in Q1 FY21. We can attribute this $22.5 million decrease to the impacts related to Covid, such as cancelled flights, a catch up in deferred heavy maintenance expense, and a spike in sick-related absence rates. Mesa also did not recognize any PSP funds as an offset to operating expenses during Q1 2022, compared to an $11.3 million reduction in Q1 2021.

    Jonathan Ornstein, Chairman and CEO, said, “Mesa’s results reflect the impact of Covid to our quarter’s operations and financials. Its effect on this quarter was significant and unlike anything we have seen in twenty years. This was further impacted by elevated pilot attrition as the major and national airlines have accelerated hiring. Looking ahead, we are cautiously optimistic that we are already seeing a decrease in Covid-related absence rates. Managing through the challenges of pilot attrition in our core regional operation remains our team’s top priority.

    Outside of our core regional operation, we continue to move forward with some of our important strategic initiatives. We are taking delivery of our third 737-400F aircraft this month. We also remain invested in electric aircraft companies Archer Aviation and Heart Aerospace as we look to position Mesa to be the regional airline leader in decarbonization and electric aircraft. Going forward, our strategy is to selectively look for other opportunities in aviation related, green technologies to ensure a leadership role in this area.”

    Fiscal Q1 details:

    Revenue in Q1 2022 was $147.8 million, a decrease of $2.6 million (1.7%) from $150.4 million for Q1 2021. While contract revenue increased $9.7 million due to more flying on all fleets relative to the prior period, this increase was offset by fewer aircraft flown for American. There was also a decrease in pass through and other revenue of $12.4 million primarily due to a decrease in pass-through maintenance expense. Mesa’s Q1 2022 results include, per GAAP, the recognition of $4.2 million of previously deferred revenue, versus the deferral of $5.2 million of revenue in Q1 2021. The remaining deferred revenue balance will be recognized as flights are completed over the remaining terms of the contracts.

    Mesa’s Adjusted EBITDA1 for Q1 2022 was $17.0 million, compared to $47.4 million in Q1 2021, and Adjusted EBITDAR1 was $26.6 million for Q1 2022, compared to $57.5 million in Q1 2021.

    Operationally, the Company ran a controllable completion factor of 97.2% for American and 98.3% for United during Q1 2022. This is compared to a controllable completion factor of 99.8% for American and 100.0% for United during Q1 2021. 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 95.8% for American and 97.6% for United during Q1 2022. This is compared to a total completion factor of 98.3% for American and 99.4% for United during Q1 2021.

    1 See Reconciliation of non-GAAP financial measures

    Liquidity and Capital Resources:

    Mesa ended the quarter at $102.3 million in unrestricted cash and equivalents. As of December 31, 2021, the Company had $678.6 million in total debt secured primarily with aircraft and engines.

    Fleet:

    For the three months ended December 31, 2021, 49% of the Company’s total revenue was derived from our contracts with United, 45% from American, 1% from DHL, and 5% from leases of aircraft to a third party.

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

      Fiscal Year 2021Fiscal Year 2022
    Fleet Plan Q1 (Dec '20)Q2 (Mar '21)Q3 (Jun '21)Q4 (Sep '21)Q1 (Dec '21)Q2 (Mar '22)Q3 (Jun '22)
      ActualActualActualActualActualForecastForecast
    E-175 – UA  72 76 80 80 80 80 80
    CRJ-700 – UA  8 - - - - - -
    CRJ-900 – AA  54 45 45 40 404040
    737-400F – DHL  2 2 2 2 2 3 3
    Sub-total  136 123 127 122 122 123 123
    CRJ-700 Leased  - 6 12 14 17 20 20
    CRJ-700 to be Leased        
    to Third party  12 14 8 6 3    - -
    CRJ-900 Spares/Parked  10 19 19 24242424
    CRJ-200 Spares/Parked  1 1 1 1 1 1 1
    Total Fleet  159 163 167 167 167168 168

    Mesa Air Group will host a conference call with analysts on February 9th at 5:30 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 Here.

    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 ended December 31, 2021 and December 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 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 Dec 31, 2021 Three Months Ended Dec 31, 2020
     Income (Loss) Before TaxesIncome Tax (Expense)/ BenefitNet Income (Loss) Net Income (Loss) per Diluted Share  Income Before TaxesIncome Tax (Expense)/ BenefitNet Income Net Income per Diluted Share
    GAAP Income (Loss)$(18,386)4,112 (14,274)$(0.40) $18,939 (4,821)14,118 $0.39 
    Adjustments (1)      (950) (950)$(0.03)
    Loss on
       Investments,    		         
       Net (2) 6,462 (1,470)4,992 $0.14      
    Adjusted Income         
       (Loss) (11,924)2,642 (9,282)$(0.26)  17,989 (4,821)13,168 $0.36 
              
    Interest Expense 7,930      9,082    
    Interest Income (51)     (126)   
    Depreciation and Amortization 21,028      20,470    
    Adjusted EBITDA 
    16,983    		      
    47,415    		    
              
    Aircraft Rent 9,586      10,048    
    Adjusted EBITDAR$26,569     $57,463    


    (1) Includes adjustment for gain on extinguishment of debt of $1.0 million related to repayment of the Company’s aircraft debts during the three months ended December 31, 2020.
    (2)Includes losses resulting from changes in the fair value of the Company's investments in equity securities of $6.5 million for the three months ended December 31, 2021.
      

    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 114 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 December 31, 2021, Mesa operated a fleet of 167 aircraft with approximately 402 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 capacity purchase agreements entered into with American Airlines, Inc., United Airlines, Inc., and 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
    December 31,
       2021   2020 
    Operating revenues:    
    Contract revenue $136,894  $127,158 
    Pass-through and other revenue  10,863   23,213 
    Total operating revenues  147,757   150,371 
         
    Operating expenses:    
    Flight operations  47,598   36,964 
    Fuel  1,257   390 
    Maintenance  58,981   52,864 
    Aircraft rent  9,586   10,048 
    Aircraft and traffic servicing  715   901 
    General and administrative  12,578   13,073 
    Depreciation and amortization  21,028   20,470 
    Government grant recognition  —   (11,311)
    Total operating expenses  151,743   123,399 
    Operating income (loss)  (3,986)  26,972 
         
    Other income (expense), net:    
    Interest expense  (7,930)  (9,082)
    Interest income  51   126 
    Loss on investments, net  (6,462)  — 
    Other income (expense), net  (59)  923 
    Total other (expense), net  (14,400)  (8,033)
         
    Income (loss) before taxes  (18,386)  18,939 
    Income tax expense (benefit)  (4,112)  4,821 
    Net income (loss) $(14,274) $14,118 
         
    Net income (loss) per share attributable to common shareholders    
    Basic $(0.40) $0.40 
    Diluted $(0.40) $0.39 
         
    Weighted-average common shares outstanding    
    Basic  35,963   35,531 
    Diluted  35,963   36,647 
             

    MESA AIR GROUP, INC.
    Condensed Consolidated Balance Sheets
    (In thousands, except shares) (Unaudited)

      December 31, 2021 September 30, 2021
    ASSETS   
                
    CURRENT ASSETS:    
    Cash and cash equivalents $102,332 $120,517
    Restricted cash  3,350  3,350
    Receivables, net  2,919  3,167
    Expendable parts and supplies, net  25,206  24,467
    Prepaid expenses and other current assets  4,488  6,885
    Total current assets  138,295  158,386
         
    Property and equipment, net  1,157,922  1,151,891
    Intangible assets, net  6,537  6,792
    Lease and equipment deposits  8,249  6,808
    Operating lease right-of-use assets  88,469  93,100
    Deferred heavy maintenance, net  3,271  3,499
    Other assets  31,752  36,121
    TOTAL ASSETS $1,434,495 $1,456,597
                
    LIABILITIES AND STOCKHOLDERS’ EQUITY   
         
    CURRENT LIABILITIES:    
    Current portion of long-term debt and finance leases $111,059 $111,710
    Current portion of deferred revenue  5,528  6,298
    Current maturities of operating leases  26,935  32,652
    Accounts payable  62,933  61,476
    Accrued compensation  7,638  12,399
    Other accrued expenses  36,283  33,657
    Total current liabilities  250,376  258,192
         
    NONCURRENT LIABILITIES:    
    Long-term debt and finance leases, excluding current portion  547,409  539,700
    Noncurrent operating lease liabilities  34,405  33,991
    Deferred credits  3,721  3,934
    Deferred income taxes  65,716  69,940
    Deferred revenue, net of current portion  24,788  28,202
    Other noncurrent liabilities  33,606  34,591
    Total noncurrent liabilities  709,645  710,358
    Total liabilities  960,021  968,550
         
    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; 35,963,984 (2022) and 35,958,759 (2021) shares issued and outstanding, and 4,899,497 (2022) and 4,899,497 (2021) warrants issued and outstanding  257,073  256,372
    Retained earnings  217,401  231,675
    Total stockholders' equity  474,474  488,047
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,434,495 $1,456,597
           

    MESA AIR GROUP, INC.
    Operating Highlights (unaudited)

      Three months ended
      December 31, 2021
      20212020Change
    Available Seat Miles (thousands) 2,104,6211,670,94326.0%
    Block Hours 86,07969,24724.3%
    Average Stage Length (miles) 6446371.1%
    Departures 43,44735,34422.9%
    Passengers 2,693,4681,829,71447.2%
    Controllable Completion Factor*    
    American 97.17%99.81%-2.6%
    United 98.33%99.98%-1.65%
    Total Completion Factor**    
    American 95.76%98.30%-2.6%
    United 97.58%99.36%-1.8%

    *Controllable Completion Factor excludes cancellations due to weather and air traffic control
    **Total Completion Factor includes all cancellations

    Source: Mesa Air Group, Inc.

    Mesa Air Group, Inc.
    Media
    Jacqueline Palmer
    Media@mesa-air.com

    Investor Relations
    Susan M. Donofrio
    IR@mesa-air.com


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