Mesa Air Group Reports First Quarter 2009 Results and go! Achieves First Profitable Quarter
(Logo: http://www.newscom.com/cgi-bin/prnh/19990210/LAW065)
Total Available Seat Miles (“ASM’s”) for the first quarter of fiscal 2009 decreased 18.4% from the first quarter of 2008. The decrease was primarily due to a reduction in the number of aircraft flown from 183 as of
As of
Events during the first quarter included:
– go!: The go! operation generated approximately
On
– Maintenance: Maintenance expense decreased 31.7% as compared to the first quarter of fiscal 2008. This
– Inventory: In the first quarter Mesa financed
– Bonds: The Company purchased certain senior convertible notes during the first quarter. These notes, due in
“We are encouraged by this quarter’s performance and the strides we have taken to put some difficult hurdles behind us. We are also very pleased to report go! achieved its first quarterly profit and we remain committed to our independent inter-island operation,” said Mesa Chairman and CEO,
Three Months Ended
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Dec. 31, 2008 Dec. 31, 2007
Passengers 3,179,668 3,587,044
Available seat miles ("ASM") (000's) 1,730,437 2,120,137
Revenue passenger miles (000's) 1,327,409 1,550,131
Load factor 76.7% 73.1%
Yield per revenue passenger mile (cents) 20.1 21.1
Revenue per ASM (cents) 15.4 15.4
Operating cost per ASM (cents) 14.2 15.4
Average stage length (miles) 373 398
Number of operating aircraft in fleet 151 183
Gallons of fuel consumed 33,411,870 41,455,546
Block hours flown 109,736 128,558
Departures 73,363 84,984
MESA AIR GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months
Ended December 31,
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2008 2007
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(Unaudited)
(In thousands,
except per share
data)
Operating revenues:
Passenger $261,496 $323,203
Freight and other 3,627 3,389
----- -----
Total operating revenues 265,123 326,592
Operating expenses:
Flight operations 85,492 93,571
Fuel 78,535 115,919
Maintenance 49,162 72,010
Aircraft and traffic servicing 16,489 19,655
Promotion and sales 1,120 781
General and administrative 11,508 14,992
Depreciation and amortization 8,718 9,587
----- -----
Total operating expenses 251,024 326,515
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Operating income (loss) 14,099 77
Other income (expense):
Interest expense (8,186) (9,681)
Interest income 1,109 2,600
Gain on extinguishment of debt 8,107 -
Loss from equity method investments 1,235 (1,052)
Other income (expense) (477) 3,903
---- -----
Total other income (expense) 1,788 (4,229)
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Income (loss) from continuing operations
before taxes 15,887 (4,152)
Income tax provision (benefit) 399 (1,395)
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Net income (loss) from continuing operations 15,488 (2,757)
Loss from discontinued operations, net of taxes (186) (1,449)
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Net income (loss) $15,302 $(4,206)
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Basic income (loss) per common share:
Income (loss) from continuing operations $0.56 $(0.10)
Loss from discontinued operations (0.01) (0.05)
----- -----
Net income (loss) per share $0.55 $(0.15)
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Diluted income (loss) per common share:
Income (loss) from continuing operations $0.46 $(0.10)
Loss from discontinued operations - (0.05)
-- -----
Net income (loss) per share $0.46 $(0.15)
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Three Months
Ended December 31,
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2008 2007
---- ----
PRO FORMA (After tax):
Net income (loss) from continuing
operations $15,488 $(2,757)
Net gain on securities - (2,385)
Loss on disposal 130 68
Lease return costs 219 3,658
(Gain) on extinguishment of debt (4,996) -
go! legal expense (452) 477
Start up costs on China JV 370 153
(Gain) Loss from equity method
investments (761) 648
---- ---
Pro forma net income from continuing
operations $9,998 $(138)
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Pro forma income per common share:
Basic $0.36 $(0.00)
Diluted $0.31 $(0.00)
To supplement our consolidated financial statements presented in accordance with GAAP, the Company uses non-GAAP measures of pro forma net income and pro forma earnings 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 151 aircraft with over 800 daily system departures to 124 cities, 38 states, the
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.
SOURCE Mesa Air Group, Inc.