EX-99 2 a04-5977_1ex99.htm EX-99

EXHIBIT 99

 

FOR IMMEDIATE RELEASE

 

May 12, 2004

 

MAIR HOLDINGS, INC. REPORTS FISCAL 2004 FOURTH QUARTER
AND YEAR-END RESULTS

 

Minneapolis/St. Paul – (May 12) – MAIR Holdings, Inc. (NASDAQ: MAIR) today reported a net loss of $3.5 million for the fiscal 2004 fourth quarter ended March 31, 2004 compared to a net loss of $0.9 million in the comparable fiscal 2003 period.  On a per-share basis, the 2004 results equal a net loss of $0.17 per share compared with a net loss of $0.04 per share in 2003.  The current results were negatively impacted by the grounding of five Avro RJ85’s as well as Mesaba Aviation’s cancellation of 624 flights in January during pilot contract negotiations.  Fiscal fourth quarter results are in line with First Call consensus estimates of a net loss of $0.18 per share.

 

For the fiscal year ending March 31, 2004, the Company reported net income of $4.7 million, an increase of 7.9 percent over fiscal 2003 net income of $4.3 million.  On a per-share basis, the fiscal 2004 results equal net income of $0.23 per share compared with net income of $0.21 per share in fiscal 2003.

 

“The fourth quarter was a challenging one for our Mesaba subsidiary,” said Paul F. Foley, MAIR Holdings president and chief executive officer.  “During that time, Mesaba successfully negotiated a long-term competitive pilot contract and reached an agreement with Northwest Airlines to end its early termination rights with the Avro regional jets and bring the five grounded aircraft back in service by the summer.  Even in the face of these challenges, the men and women of Mesaba persevered and delivered excellent operating results and customer service.”

 

“Mesaba has a competitive cost structure and a consistent track record of superior operational performance,” Foley continued.  “We are looking forward to our subsidiary continuing that record in this next fiscal year.  We are also continuing our efforts to secure additional growth opportunities for our Big Sky subsidiary.”

 

The idled jets and cancelled flights were the primary reasons that led to an operating loss of $7.4 million in the fourth fiscal quarter of 2004 compared to the $3.9 million loss reported in the fourth quarter of fiscal 2003.  Operating revenue for the fourth quarter decreased 8.8 percent to $102.3 million compared with $112.1 million the same quarter a year ago.  Operating expenses for the fourth quarter decreased 5.5 percent to $109.6 million compared with $116.0 million the same quarter a year ago.

 

For the year, the Company reported operating income of $4.3 million, a decrease of 49.9 percent over fiscal 2003 results.  Operating revenues declined 1.7 percent, from $456.9 million in fiscal year 2003 to $449.1 million in fiscal 2004.  Operating expenses declined 0.8 percent, from $448.3 million in 2003 to $444.8 million in 2004.  During

 

 

fiscal 2004, the Company recorded non-operating income of $4.4 million, primarily attributable to a non-operating gain in the first quarter of fiscal year 2004 of approximately $2.6 million related to government reimbursements of security costs under the Emergency Wartime Supplemental Appropriations Act.

 

QUARTERLY CONFERENCE CALL

 

MAIR Holdings will conduct a live webcast to discuss its fourth quarter and fiscal 2004 earnings today at 8:30 am (CST).  The webcast will be available through the MAIR Holdings’ web site at http://www.mairholdings.com under the “Investor” link.

 

ABOUT THE COMPANY

 

MAIR Holdings’ primary business units are its regional airline subsidiary Mesaba Aviation, Inc., d/b/a Mesaba Airlines, and its regional airline subsidiary Big Sky Transportation Co., d/b/a Big Sky Airlines.  MAIR Holdings, Inc. is traded under the symbol MAIR on the NASDAQ National Market.  More information about MAIR Holdings is available on the Internet at http://www.mairholdings.com.

 

Mesaba Aviation operates as a Northwest Jet Airlink and Airlink partner under service agreements with Northwest Airlines.  Currently, the airline serves 106 cities in 27 states and Canada from Northwest’s and Mesaba Aviation’s three major hubs: Detroit, Minneapolis/St. Paul and Memphis.  Mesaba Aviation operates an advanced fleet of regional jet and jet-prop aircraft, consisting of the 69 passenger Avro RJ85 and the 30-34 passenger Saab SF340.  Mesaba Aviation maintains a web site at http://www.mesaba.com.

 

Big Sky serves 19 cities in Montana, North Dakota, Washington and Idaho using 10 Fairchild Metro III/23, 19 seat aircraft.  Big Sky is based in Billings, Montana and has codeshare agreements with Northwest Airlines, Alaska Airlines and America West Airlines.  Big Sky is a significant provider of air service under the Essential Air Service program administered by the Department of Transportation.  Big Sky maintains a web site at http://www.bigskyair.com.

 

FORWARD-LOOKING STATEMENTS

 

This news release contains forward-looking statements that are based on the best information currently available to management.  These forward-looking statements are intended to be subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995.  There can be no assurance that actual developments will be those anticipated by MAIR Holdings, Inc.  Actual results could differ materially from those projected as a result of a number of factors, some of which MAIR Holdings, Inc. cannot predict or control.  For a discussion of some of these factors, please see the Cautionary Statements in MAIR Holdings’ Form 10-K for the year ended March 31, 2003 and Form 10-Q for the quarter ended December 31, 2003.

 

 

Note to Editors: Summary financial and operating information follows.

 

###

 

Media Contact:

 

Laura Anders - 612-337-0354

Investor Contact:

 

Bob Weil - 612-333-0021

 

 

MAIR Holdings, Inc.

Consolidated Statements of Operations

($000’s, except per share information)

(Unaudited)

 

 

 

 

Quarter Ended
March 31

 

Year Ended
March 31

 

 

 

2004

 

2003

 

Change

 

2004

 

2003

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

102,257

 

$

112,070

 

-8.8

%

$

449,079

 

$

456,880

 

-1.7

%

Operating expenses

 

109,626

 

116,011

 

-5.5

%

444,756

 

448,252

 

-0.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

(7,369

)

$

(3,941

)

-87.0

%

$

4,323

 

$

8,628

 

-49.9

%

Nonoperating income, net

 

608

 

966

 

-37.1

%

4,433

 

259

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss before income taxes)

 

$

(6,761

)

$

(2,975

)

 

NM

$

8,756

 

$

8,887

 

-1.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit for income taxes)

 

(3,235

)

(2,074

)

56.0

%

4,083

 

4,558

 

-10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(3,526

)

$

(901

)

 

NM

$

4,673

 

$

4,329

 

7.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss per share - basic)

 

$

(0.17

)

$

(0.04

)

 

 

$

0.23

 

$

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares - basic

 

20,360

 

20,321

 

 

 

20,334

 

20,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss per share - diluted)

 

$

(0.17

)

$

(0.04

)

 

 

$

0.23

 

$

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares - diluted

 

20,360

 

20,321

 

 

 

20,562

 

20,357

 

 

 

 

NM               Not meaningful

 

 

Consolidated Balance Sheets

($000’s)

(Unaudited)

 

 

 

 

March 31
2004

 

March 31
2003

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

54,561

 

$

62,140

 

Short term investments

 

67,285

 

40,464

 

Other current assets

 

53,947

 

64,772

 

Net property and equipment

 

39,722

 

43,798

 

Long term investments

 

38,084

 

23,762

 

Other assets, net

 

14,127

 

15,706

 

 

 

 

 

 

 

Total assets

 

$

267,726

 

$

250,642

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities

 

$

76,232

 

$

65,907

 

Other liabilities and deferred credits

 

6,565

 

6,790

 

Shareholders’ equity

 

184,929

 

177,945

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

267,726

 

$

250,642

 

 

 

Selected Operating Statistics By Operating Entity

(Unaudited)

 

 

 

Quarter Ended March 31

 

Year Ended March 31

 

 

 

2004

 

2003

 

Change

 

2004

 

2003

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mesaba Aviation, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

Passengers

 

1,137,135

 

1,239,482

 

-8.3

%

5,596,721

 

5,658,006

 

-1.1

%

ASMs (000’s)

 

652,807

 

687,788

 

-5.1

%

2,904,198

 

2,822,140

 

2.9

%

RPMs (000’s)

 

391,375

 

374,523

 

4.5

%

1,774,931

 

1,646,114

 

7.8

%

Load Factor

 

60.0

%

54.5

%

5.5

pts

61.1

%

58.3

%

2.8

pts

Departures

 

48,766

 

54,386

 

-10.3

%

219,512

 

233,160

 

-5.9

%

Revenue per ASM (cents)

 

15.1

 

15.7

 

-3.8

%

14.9

 

16.0

 

-6.9

%

Cost per ASM (cents)

 

15.7

 

15.9

 

-1.3

%

14.5

 

15.5

 

-6.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Big Sky Transportation Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

Passengers

 

22,226

 

26,311

 

-15.5

%

105,913

 

n/a

 

n/a

*

ASMs (000’s)

 

15,788

 

21,116

 

-25.2

%

75,188

 

n/a

 

n/a

*

RPMs (000’s)

 

5,624

 

6,851

 

-17.9

%

27,066

 

n/a

 

n/a

*

Load Factor

 

35.6

%

32.4

%

3.2

pts

36.0

%

n/a

 

n/a

*

Departures

 

4,822

 

6,171

 

-21.9

%

23,245

 

n/a

 

n/a

*

Revenue per ASM (cents)

 

23.5

 

19.0

 

23.7

%

21.9

 

n/a

 

n/a

*

Cost per ASM (cents)

 

30.3

 

27.5

 

10.2

%

26.3

 

n/a

 

n/a

*

 

*                 Information not available as Big Sky Transportation Co. was acquired by MAIR Holdings, Inc. on December 1, 2002.