Mesa 4th quarter loss $62.2 million

[slackass]

Mesa Air Group Reports Fourth Quarter 2007 Revenue and EarningsPHOENIX, Jan. 14 /PRNewswire-FirstCall/ -- Mesa Air Group, Inc. (Nasdaq: MESA) (the "Company") announced today fourth quarter losses from continuing operations of $62.2 million ($2.16 per diluted share) on gross operating revenues of $327.8 million. This compares to earnings from continuing operations of $5.8 million ($0.14 per diluted share) in the fourth quarter of 2006 on gross operating revenues of $348.8 million. Total operating revenues decreased $21.0 million year-over-year, or 6.0%, primarily as a result of a year-over-year decrease in aircraft in service. The fourth quarter results include a pre-tax charge of $86.9 million related to the recognition of a legal judgment against the Company in its Hawaiian Airlines litigation which is under appeal. The loss from discontinued operations during the quarter totaling $6.0 million, related to the previously announced sale of our Air Midwest subsidiary or certain assets of such operation. The GAAP net loss for the quarter was $68.2 million ($2.37 per diluted share) versus $4.8 million net income ($0.12 per diluted share) in the fourth quarter of fiscal 2006. Pro forma net income from continuing operations for the fourth quarter of 2007 was $2.2 million, or $0.08 per diluted share. Pro forma net income includes adjustments for the following items on an after tax basis: $57.7 million related to the Hawaiian legal judgment against the Company, $1.3 million associated with the Company's own legal costs related to the Hawaiian litigation, $0.7 million in non-cash losses from equity method investments, $1.7 million in net costs associated with the early return of certain Dash-8 aircraft and $3.0 million in certain start up costs associated with our Chinese joint-venture. This compares to pro forma net income of $7.0 million, or $0.17 per diluted share for the comparable period of fiscal 2006.

 

[Tarzan]

I can hear the demands for concessions even now.

 

[viper548]

Meanwhile, every other regional posted a profit.

 

[kngarthur]

Just goes to show you that taking a job for less pay to assure job security is foolish. Look at Southwest!

 

[dooork]

Just goes to show you that taking a job for less pay to assure job security is foolish. Look at Southwest!

You do not know a thing about it.

 

[flatspin7]

I can hear the demands for concessions even now.

You can't get blood out of a turnip!

What are Mesa guys supposed to give up???

 

[DrewBlows]

Just goes to show you that taking a job for less pay to assure job security is foolish. Look at Southwest!

Southwest should never be mentioned on a Mesa thread. Damn, I just did it myself.

 

[Soverytired]

Only 62 million? I'm a bit surprised that's all.

I'd be willing to be that Mesa Air Group will file some paperwork in a month or so restating their "earnings". (or lack thereof) And not for the better.

 

[ReverseSensing]

So let me see if I have this straight:

Mesa lost $62 million, but $87 million of it was due to the Hawaiian judgment? If it hadn't been for that charge, Mesa would have had a profit of $112 million for the quarter? That's a pretty good quarter, if true.

 

[Soverytired]

According to the conference call, Mesa has 250 pilots in training.

250!

That's a heck of a lot for a company like Mesa. The dumbest thing was that the speaker said "There's not a lot we can do to stop them [from leaving]."

Actually, if they didn't WANT pilots to leave, it would be insanely simple to keep a bigger portion of them:

• Not scheduling plane "camp outs".
  
• Not calling on days off.
  
• Not altering schedules several times over the course of a single day.

Pish-posh. They want pilots to leave, before they get too expensive. They just became too effective for their own good.

 

[dash8driver]

but they've never had to furlough and have the shortest upgrade times!

 

[atlcrashpad]

Jus another reason ta keeps J.O. round......

 

[Friedaloo]

So let me see if I have this straight:

Mesa lost $62 million, but $87 million of it was due to the Hawaiian judgment? If it hadn't been for that charge, Mesa would have had a profit of $112 million for the quarter? That's a pretty good quarter, if true.

Am I missing something? 87-62=25 So a 25mil profit if you took the hawaiian deal out right? Is your math newer than mine?

 

[Gr82Aviate]

Am I missing something? 87-62=25 So a 25mil profit if you took the hawaiian deal out right? Is your math newer than mine?

Apparently, you're not aware of "management math"?!

 

[Poahi]

You're getting warmer. They only expensed or 'charged' a portion of the loss because of the timing of the judgment. I think that's the reason for the earnings delay. It had little to do with AMW. They had to devise a way to present the financial condidion a little better and to clean up the mess in the accounting department.

 

[Poahi]

According to the conference call, Mesa has 250 pilots in training.

250!

That's down 50 from a few weeks ago.

 

[Turbine Pilot]

Mesa would have had a loss for the quarter even without the judgment from Hawaii. They paid out 87 million, but also took a tax write off from it (like 31 million I think it said) so it wouldn't look so bad. That is why it is not as bad as everyone thinks. Mesa still would have lost a little even for the quarter if they would not have had a to pay that money but only like 6 million. That loss would have been from the 6 million it lost at air midwest. It's just Mesa warmen' up the books to make it look better. Ha!
Here is the math,
87-31=56+6=62 Million LOSS
31 was the tax writeoff, and the 6 is air midwest's loss. Tada!

 

[Poahi]

http://phx.corporate-ir.net/phoenix.zhtml?c=78947&p=irol-newsArticle&ID=1095743&highlight=

 

[ReverseSensing]

Am I missing something? 87-62=25 So a 25mil profit if you took the hawaiian deal out right? Is your math newer than mine?

If one train is leaving Kansas City eastbound...

I wasn't taught addition and subtraction, I was taught "ball-parking." :nuts:

I should have known better than to perform public math. Always a bad idea.

 

[badlander45]

but they've never had to furlough and have the shortest upgrade times!

Never furloughed? are you sure about that?

 

[dash8driver]

Never furloughed? are you sure about that?

is this the first time you've seen a sarcastic reference to JO?

 

[badlander45]

is this the first time you've seen a sarcastic reference to JO?

Sorry need to fine tune the sarcasm detector.

 

[norskman2]

Just goes to show you that taking a job for less pay to assure job security is foolish. Look at Southwest!

Ahem! Have you LOOKED at SWA's pay rates?

 

[Way2Broke]

They are probably including pilots in the Mesa Flight school.

According to the conference call, Mesa has 250 pilots in training.

250!

That's a heck of a lot for a company like Mesa. The dumbest thing was that the speaker said "There's not a lot we can do to stop them [from leaving]."

Actually, if they didn't WANT pilots to leave, it would be insanely simple to keep a bigger portion of them:

• Not scheduling plane "camp outs".
  
• Not calling on days off.
  
• Not altering schedules several times over the course of a single day.

Pish-posh. They want pilots to leave, before they get too expensive. They just became too effective for their own good.

 

[Capi_Cafre']

You can't get blood out of a turnip!

What are Mesa guys supposed to give up???

Goodbye plywood, hellooo particle board!

 

[Ezralite]

Goodbye plywood, hellooo particle board!

I think they've had to downscale their layover arrangements slightly as well:

http://www.howardsview.com/lost/new-york-homeless.jpg

 

[Skaff]

As Andy Bernard says, "Addition by Subtraction", good luck to all the Mesa guys.

 

[j41driver]

I wasn't taught addition and subtraction, I was taught "ball-parking." :nuts:

Pretty big ball park, huh?

 

[OB-CPO]

According to the conference call, Mesa has 250 pilots in training.

250!

They want pilots to leave, before they get too expensive. They just became too effective for their own good.

The training costs associated with sending 250 pilots to training has got to be another $10MIL

 

[OB-CPO]

According to the conference call, Mesa has 250 pilots in training.

250!

They want pilots to leave, before they get too expensive. They just became too effective for their own good.

Good thing none of the check airman have quit!