EX-99.1 2 mesa-ex991_6.htm EX-99.1 mesa-ex991_6.htm

Exhibit 99.1

 

Mesa Air Group Reports Fourth Quarter and Fiscal Full-Year 2022 Results

December 29, 2022

PHOENIX, December 29, 2022 – Mesa Air Group, Inc. (NASDAQ: MESA) today reported fourth quarter and fiscal full-year 2022 financial and operating results.

 

Fiscal Fourth Quarter Update:

 

Total operating revenues of $125.6 million

 

Pre-tax loss of $148.6 million, net loss of $115.6 million or $(3.18) per diluted share

 

Adjusted net loss1 of $13.5 million or $(0.37) per diluted share

 

Adjusted net loss excludes a $132.3 million non-cash (pre-tax) impairment loss related to the CRJ fleet

 

New industry-leading pilot pay agreement effective September 15th

 

Agreed to sell 18 CRJ-550s to United Airlines, 10 of which closed during the quarter

 

Launched the Mesa Pilot Development (“MPD”) Program

 

Negotiated a new two-year flight attendant agreement

 

Subsequent to quarter end:

 

o

Initiated and concluded wind-down agreement with American Airlines

 

o

Reached agreements with United Airlines for (i) capacity purchase agreement expansion for CRJ-900 flying and rate increase, (ii) a loan agreement, and (iii) an engine purchase agreement

 

o

Renegotiated certain aircraft debt and lease obligations

 

o

Agreed to sell 11 CRJ-900s, expected to close in Q1 CY2023

 

Fiscal Full-Year 2022 Update:

 

Total operating revenues of $531.0 million

 

Pre-tax loss of $234.7 million, net loss of $182.7 million or $(5.06) per diluted share

 

Adjusted net loss1 of $40.2 million or $(1.12) per diluted share

 

Adjusted net loss excludes a $171.8 million non-cash (pre-tax) impairment loss related to the CRJ fleet

 

Jonathan Ornstein, Chairman and CEO, said, “Building on our relationship with United Airlines that began in 1992, we are delighted to announce our new and expanded agreements with United, allowing us to expand United’s reach into cities that have seen reductions or loss of flight service created by the industry-wide pilot shortage. After the transition, Mesa will be the only exclusive regional carrier for United operating large regional jets. We believe our strong relationship with United will provide significant opportunities for growth in the future. In particular, we believe Mesa’s participation in the Aviate program, combined with United’s industry-leading growth plan, will provide the most reliable, fastest path for aviators to transition to a major commercial carrier. Combined with the significant liquidity United is providing, this agreement represents a transformational step for our business as we aim to resolve the impacts of the industry-wide pilot shortage that we faced in fiscal 2022. With our pilot pipeline now filled thanks to our new pay scale and enhanced opportunities with United through Aviate, Mesa is in a superior position to meet the significant demand for regional flying.”

 

Fiscal Fourth Quarter Details:

 

Total operating revenues in Q4 2022 were $125.6 million, a decrease of $5.1 million (3.9%) from $130.8 million for Q4 2021. Contract revenue decreased $5.3 million, or 4.6%. These decreases were driven by lower block hours, offset by the expiration of temporary rate reductions related to the PSP program. Mesa’s Q4 2022 results include, per GAAP, the deferral of $1.3 million, versus the recognition of $1.3 million of previously deferred revenue in Q4 2021. The remaining

1See Reconciliation of non-GAAP financial measures

 


deferred revenue balance of $24.1 million will be recognized as flights are completed over the remaining terms of the contracts.

 

Mesa’s Adjusted EBITDA1 for Q4 2022 was $13.8 million, compared to $25.8 million in Q4 2021, and Adjusted EBITDAR1 was $22.4 million for Q4 2022, compared to $35.5 million in Q4 2021.

 

Mesa’s Q4 2022 results reflect a net loss of $115.6 million, or $(3.18) per diluted share, compared to a net loss of $7.5 million, or $(0.21) per diluted share for Q4 2021. Mesa’s Q4 2022 adjusted net loss1 was $13.5 million, or $(0.37) per diluted share, versus an adjusted net loss1 of $2.1 million, or $(0.06) per diluted share, in Q4 2021. The year over year decrease in adjusted net income of $11.4 million was primarily due to lower block hours, the net impact of the PSP program, and a decrease in maintenance expense.

 

For Q4 2022, 48% of the Company’s total revenue was derived from our contracts with United, 45% from American, 2% from DHL, and 5% from leases of aircraft to a third party.

 

Fiscal Full-Year 2022 Details:

 

For fiscal year 2022, total operating revenues were $531.0 million, an increase of $27.4 million (5.4%) from $503.6 million for fiscal year 2021. Contract revenue increased $44.0 million, or 10.1%. This was primarily due to the return to normal rates from our partners, which were temporarily reduced last year related to the PSP program, and recognition of higher deferred revenue, partially offset by a reduction in block hours and partner utilization penalties. Mesa’s fiscal year 2022 results include, per GAAP, the recognition of $10.4 million of previously deferred revenue, versus the deferral of $10.7 million of revenue in fiscal 2021.

 

Mesa’s Adjusted EBITDA1 for fiscal year 2022 was $66.6 million, compared to $150.0 million in fiscal year 2021, and Adjusted EBITDAR1 was $103.6 million for fiscal year 2022, compared to $189.3 million in fiscal year 2021.

 

Mesa’s fiscal year 2022 results reflect a net loss of $182.7 million, or $(5.06) per diluted share, compared to net income of $16.6 million, or $0.43 per diluted share, for fiscal year 2021. Mesa’s fiscal year 2022 adjusted net loss1 was $40.2 million, or $(1.12) per diluted share, versus adjusted net income of $24.6 million, or $0.64 per diluted share, in fiscal year 2021. The year over year decrease in adjusted net income of $64.8 million was primarily due to lower block hours, the net impact of the PSP program, change in deferred revenue, and higher pilot training expense.

 

American Airlines Agreement:

 

On December 19, 2022, we announced (link) a final agreement with American Airlines to wind-down our contract by April 3, 2023. The wind-down with American Airlines was primarily the result of ongoing losses within the American operation as a result of higher pilot wages, which Amercian would not agree to compensate Mesa for, and utilization penalties.

 

United Airlines Agreements:

 

On December 27, 2022, we finalized an amendment and restatement of our capacity purchase agreement with United Airlines. Under the agreement, Mesa will add up to 38 CRJ-900 aircraft, dependent on the number E-175s Mesa is operating. Mesa will begin flying CRJ-900s on behalf of United in March of 2023 and utilize all of the crew and maintenance locations currently operated for American Airlines in Phoenix, Dallas, El Paso, and Louisville, as well as open a CRJ-900 crew base in Houston and a pilot base in Denver. As part of the final agreement, United will also pay Mesa increased block-hour rates to cover the incremental pilot wage increases instituted by Mesa in September 2022, which will remain in effect through September 2025. United will receive a 10% equity position in Mesa and a seat on the Mesa Board of Directors.

 

 


 

Additionally, on December 27, 2022, we finalized an agreement with United for a $41.2 million liquidity facility, including the refinancing of $15.7 million outstanding under our CIT revolving credit facility maturing December 31, 2022, and an additional $25.5 million term loan, of which $15.0 million is forgivable if Mesa achieves certain aircraft utilization thresholds. The collateral for the loan is a combination of aircraft parts and a pledge of our equity investment in Archer Aviation, Inc. and Heart Aerospace Incorporated.

 

United also agreed to purchase 30 GE-CF34-8 spare engines from Mesa for $80 million, which is expected to provide over $50 million of net cash proceeds and close in Q1 CY2023.

 

Aircraft, Debt, and Lease Activities:

 

On December 15, 2022, Mesa entered into an agreement with Export Development Canada (“EDC”) to, subject to certain conditions, reduce debt service on seven CRJ-900 aircraft for the period of January 2023 through December 2024, providing approximately $14 million of incremental liquidity during this period. These debt service reductions will be repaid at maturity in December 2027. Additionally, the junior noteholder, MHIRJ, agreed to forgive 50% of its outstanding note balance if the notes are fully repaid prior to December 31, 2023.

 

On December 16, 2022, Mesa entered into an agreement with RASPRO Trust 2005 (“RASPRO”), which reduces the effective purchase price at or prior to lease termination in March 2024 on 15 CRJ-900s by approximately $25 million.

 

On December 23, 2022, Mesa entered into an agreement with US Treasury, enabling Mesa to sell certain aircraft and engines, which will provide approximately $24 million of incremental liquidity in Q1 CY2023. These sales include 8 CRJ-550s sold to United, which we expect to close in January 2023, 11 CRJ-900s agreed to be sold to a third party by March 31, 2023, and 6 spare GE CF34 engines. These sales are expected to reduce Mesa’s US Treasury debt by approximately $65 million and reduce annual interest expense by approximately $4.5 million at current rates.

 

Pilot Initiatives:

 

The increase in pilot pay implemented during the quarter has significantly reduced attrition and increased our pilot applicant pool. We currently have approximately 400 pilots in our training pipeline.

 

Liquidity and Capital Resources:

Mesa ended the quarter at $57.7 million in unrestricted cash and equivalents. As of September 30, 2022, the Company had $599.7 million in total debt secured primarily with aircraft and engines.

 

Conference Call Details:

 

Mesa Air Group will host a conference call with analysts on December 29th at 4:30 pm EST. 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 107 cities in 39 states, the District of Columbia, the Bahamas, and Mexico as well as cargo services out of Cincinnati/Northern Kentucky International Airport. As of September 30, 2022, Mesa operated or leased a fleet of 158 aircraft with approximately 306 daily departures and 2,500 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 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.

Media

Media@mesa-air.com


Investor Relations
Doug Cooper
IR@mesa-air.com


 


MESA AIR GROUP, INC.

Consolidated Statements of Operations and Comprehensive (Loss) Income

(In thousands, except per share amounts) (Unaudited)

 

 

Three Months Ended

September 30,

 

 

Twelve Months Ended

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract revenue

 

$

110,701

 

 

$

115,994

 

 

$

478,482

 

 

$

434,518

 

Pass-through and other revenue

 

 

14,933

 

 

 

14,789

 

 

 

52,519

 

 

 

69,073

 

Total operating revenues

 

 

125,634

 

 

 

130,783

 

 

 

531,001

 

 

 

503,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flight operations

 

 

43,776

 

 

 

46,456

 

 

 

177,038

 

 

 

162,137

 

Maintenance

 

 

45,898

 

 

 

61,023

 

 

 

201,930

 

 

 

217,646

 

Aircraft rent

 

 

8,670

 

 

 

9,657

 

 

 

36,989

 

 

 

39,345

 

General and administrative

 

 

12,416

 

 

 

13,531

 

 

 

43,966

 

 

 

49,855

 

Depreciation and amortization

 

 

19,630

 

 

 

20,739

 

 

 

81,508

 

 

 

82,847

 

Lease termination

 

 

233

 

 

 

 

 

 

233

 

 

 

4,508

 

Impairment of assets

 

 

132,349

 

 

 

 

 

 

171,824

 

 

 

 

Other operating expenses

 

 

3,859

 

 

 

388

 

 

 

7,238

 

 

 

3,536

 

Government grant recognition

 

 

 

 

 

(26,100

)

 

 

 

 

 

(119,479

)

Total operating expenses

 

 

266,831

 

 

 

125,694

 

 

 

720,726

 

 

 

440,395

 

Operating income (loss)

 

 

(141,197

)

 

 

5,089

 

 

 

(189,725

)

 

 

63,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(10,523

)

 

 

(8,266

)

 

 

(35,289

)

 

 

(34,730

)

Interest income

 

 

22

 

 

 

78

 

 

 

139

 

 

 

365

 

Gain on sale aircraft

 

 

4,723

 

 

 

(6,816

)

 

 

4,723

 

 

 

 

Loss on investments, net

 

 

(1,066

)

 

 

 

 

 

(13,715

)

 

 

(6,816

)

Other (expense) income, net

 

 

(598

)

 

 

12

 

 

 

(801

)

 

 

401

 

Total other expense, net

 

 

(7,442

)

 

 

(14,992

)

 

 

(44,943

)

 

 

(40,780

)

Income (loss) before taxes

 

 

(148,639

)

 

 

(9,903

)

 

 

(234,668

)

 

 

22,416

 

Income tax expense (benefit)

 

 

(33,003

)

 

 

(2,408

)

 

 

(51,990

)

 

 

5,828

 

Net income (loss)

 

$

(115,636

)

 

$

(7,495

)

 

$

(182,678

)

 

$

16,588

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common

   shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(3.18

)

 

$

(0.21

)

 

$

(5.06

)

 

$

0.46

 

Diluted

 

$

(3.18

)

 

$

(0.21

)

 

$

(5.06

)

 

$

0.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

36,336

 

 

 

35,925

 

 

 

36,133

 

 

 

35,713

 

Diluted

 

 

36,336

 

 

 

35,925

 

 

 

36,133

 

 

 

38,843

 

 

 

 

 

 

 

 

 

 

 


 

MESA AIR GROUP, INC.

Consolidated Balance Sheets

(In thousands, except shares) (Unaudited)

 

 

 

September 30,

2022

 

 

September 30,

2021

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

57,683

 

 

$

120,517

 

Restricted cash

 

 

3,342

 

 

 

3,350

 

Receivables, net

 

 

3,978

 

 

 

3,167

 

Expendable parts and supplies, net

 

 

26,715

 

 

 

24,467

 

Prepaid expenses and other current assets

 

 

6,616

 

 

 

6,885

 

Total current assets

 

 

98,334

 

 

 

158,386

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

865,254

 

 

 

1,151,891

 

Intangible assets, net

 

 

3,842

 

 

 

6,792

 

Lease and equipment deposits

 

 

6,085

 

 

 

6,808

 

Operating lease right-of-use assets

 

 

43,090

 

 

 

93,100

 

Deferred heavy maintenance, net

 

 

9,707

 

 

 

3,499

 

Assets held for sale

 

 

73,000

 

 

 

 

Other assets

 

 

16,290

 

 

 

36,121

 

TOTAL ASSETS

 

$

1,115,602

 

 

$

1,456,597

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Current portion of long-term debt and finance leases

 

$

97,218

 

 

$

111,710

 

Current portion of deferred revenue

 

 

385

 

 

 

6,298

 

Current maturities of operating leases

 

 

17,233

 

 

 

32,652

 

Accounts payable

 

 

59,386

 

 

 

61,476

 

Accrued compensation

 

 

11,255

 

 

 

12,399

 

Other accrued expenses

 

 

29,000

 

 

 

33,657

 

Total current liabilities

 

 

214,477

 

 

 

258,192

 

 

 

 

 

 

 

 

 

 

NONCURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt and finance leases, excluding current portion

 

 

502,517

 

 

 

539,700

 

Noncurrent operating lease liabilities

 

 

16,732

 

 

 

33,991

 

Deferred credits

 

 

3,082

 

 

 

3,934

 

Deferred income taxes

 

 

17,719

 

 

 

69,940

 

Deferred revenue, net of current portion

 

 

23,682

 

 

 

28,202

 

Other noncurrent liabilities

 

 

29,219

 

 

 

34,591

 

Total noncurrent liabilities

 

 

592,951

 

 

 

710,358

 

Total liabilities

 

 

807,428

 

 

 

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; 36,376,897 (2022) and 35,958,759 (2021) shares issued

   and outstanding, and 4,899,497 (2022) and 4,899,497 (2021) warrants

   issued and outstanding

 

 

259,177

 

 

 

256,372

 

Retained earnings

 

 

48,997

 

 

 

231,675

 

Total stockholders' equity

 

 

308,174

 

 

 

488,047

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

1,115,602

 

 

$

1,456,597

 

 

 

 

 

 

 


 

MESA AIR GROUP, INC.

Operating Highlights (unaudited)

 

 

 

 

Three months ended

 

 

 

September 30,

 

 

 

2022

 

 

 

 

2021

 

 

Change

 

Available seat miles (thousands)

 

 

1,399,616

 

 

 

 

 

2,352,453

 

 

 

(40.5

)%

Block hours

 

 

56,333

 

 

 

 

 

94,868

 

 

 

(40.6

)%

Average stage length (miles)

 

 

641

 

 

 

 

 

663

 

 

 

(3.3

)%

Departures

 

 

28,904

 

 

 

 

 

47,015

 

 

 

(38.5

)%

Passengers

 

 

1,825,571

 

 

 

 

 

2,795,371

 

 

 

(34.7

)%

Controllable completion factor*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American

 

 

98.18

%

 

 

 

 

99.05

%

 

 

(0.9

)%

United

 

 

99.72

%

 

 

 

 

99.81

%

 

 

(0.1

)%

Total completion factor**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American

 

 

97.12

%

 

 

 

 

97.33

%

 

 

(0.2

)%

United

 

 

98.05

%

 

 

 

 

98.06

%

 

 

(0.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*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 nine months ended September 30, 2022 and September 30, 2021. 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 September 30, 2022

 

 

Three Months Ended September 30, 2021

 

 

 

Income

(Loss) Before

Taxes

 

 

Income

Tax

(Expense) Benefit

 

 

Net

Income (Loss)

 

 

Net Income (Loss)

per

Diluted Share

 

 

Income

Before

Taxes

 

 

Income Tax

(Expense)

Benefit

 

 

Net

Income

 

 

Net Income

per

Diluted Share

 

GAAP income (loss)

 

$

(148,639

)

 

$

33,003

 

 

$

(115,636

)

 

$

(3.18

)

 

$

(9,903

)

 

$

2,408

 

 

$

(7,495

)

 

$

(0.21

)

Adjustments(1)(2)(3)(4)(5)(6)(7)

 

 

132,276

 

 

 

(30,184

)

 

 

102,092

 

 

$

2.81

 

 

 

6,816

 

 

 

(1,470

)

 

 

5,346

 

 

$

0.15

 

Adjusted income (loss)

 

 

(16,363

)

 

 

2,819

 

 

 

(13,544

)

 

$

(0.37

)

 

 

(3,087

)

 

 

938

 

 

 

(2,149

)

 

$

(0.06

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

10,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,266

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

(22

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(78

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

19,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,739

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

13,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft rent

 

 

8,670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,657

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAR

 

$

22,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

35,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Losses of $1.1 million and $6.8 million on investment in stock during the three months ended September 2022 and 2021, respectively

 

(2) $.4 million loss on extinguishment of debt during the three months ended September 2022

 

(3) $19.1 million impairment loss on Held for Sale accounting treatment on eighteen (18) CRJ 700/550 aircraft during the three months ended September 30, 2022

 

(4) $4.7 million gain from sale of ten (10) CRJ 700/550 aircraft during the three months ended September 30, 2022

 

(5) $3.2 million of loss from winding down eighteen (18) CRJ 700/550 aircraft previously leased to GoJet during the three months ended September 30, 2022

 

(6) $3.5 million impairment true-up loss on twelve (12) CRJ 900 aircraft as Held for Sale during the three months ended September 30, 2022

 

(7) $109.7 million impairment loss on asset group held and used during the three months ended September 30, 2022

 

 


 

 

 

 

Twelve Months Ended September 30, 2022

 

 

Twelve Months Ended September 30, 2021

 

 

 

Income

(Loss) Before

Taxes

 

 

Income

Tax

(Expense) Benefit

 

 

Net

Income (Loss)

 

 

Net Income (Loss)

per

Diluted Share

 

 

Income

Before

Taxes

 

 

Income Tax

(Expense)

Benefit

 

 

Net

Income

 

 

Net Income

per

Diluted Share

 

GAAP income (loss)

 

$

(234,668

)

 

 

51,990

 

 

 

(182,678

)

 

$

(5.06

)

 

$

22,416

 

 

 

(5,828

)

 

 

16,588

 

 

$

0.43

 

Adjustments(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)

 

 

184,633

 

 

 

(42,137

)

 

 

142,496

 

 

$

3.94

 

 

 

10,374

 

 

 

(2,370

)

 

 

8,004

 

 

$

0.21

 

Adjusted income (loss)

 

 

(50,035

)

 

 

9,853

 

 

 

(40,182

)

 

$

(1.12

)

 

 

32,790

 

 

 

(8,198

)

 

 

24,592

 

 

$

0.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

35,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34,730

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

(139

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(365

)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

81,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

82,847

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

66,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

150,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft rent

 

 

36,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39,345

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAR

 

$

103,612

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

189,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Losses of $13.7 million and $6.8 million on investment in stock for the twelve months ended September 2022 and 2021, respectively

 

(2) $.4 million loss on extinguishment of debt during the twelve months ended September 30, 2022

 

(3) $39.5 million impairment loss on Held for Sale accounting treatment on twelve (12) CRJ 900 aircraft during the twelve months ended September 30, 2022

 

(4) $19.1 million impairment loss on Held for Sale accounting treatment on eighteen (18) CRJ 700/550 aircraft during the twelve months ended September 30, 2022

 

(5) $4.7 million gain from sale of ten (10) CRJ 700/550 aircraft during the twelve months ended September 30, 2022

 

(6) $3.2 million of loss from winding down eighteen (18) CRJ 700/550 aircraft previously leased to GoJet during the twelve months ended September 30, 2022

 

(7) $3.5 million impairment true-up loss on twelve (12) CRJ 900 aircraft Held for Sale during the twelve months ended September 30, 2022

 

(8) $109.7 million impairment loss on asset group held and used during the twelve months ended September 30, 2022

 

(9) $.2 million impairment loss resulting from an abandonment of certain leased asset during the twelve months ended September 30, 2021

 

(10) $4.5 million lease termination expense related to the purchase of  previously leased CRJ 900 during the twelve months ended September 30 ,2021

 

(11) $1.0 million gain of extinguishment of debt related to repayment of aircraft debt during the twelve months ended September 30, 2021

 

 

 

 

Source: Mesa Air Group, Inc.