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Mesa 4th quarter loss $62.2 million

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slackass

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Feb 19, 2005
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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.
 
Just goes to show you that taking a job for less pay to assure job security is foolish. Look at Southwest!
 
Tarzan said:
I can hear the demands for concessions even now.
Click to expand...

You can't get blood out of a turnip!

What are Mesa guys supposed to give up???
 
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.
 
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.
 
Last edited:
ReverseSensing said:
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.
Click to expand...


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?
 
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.
 
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!
 
Last edited:
Friedaloo said:
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?
Click to expand...

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.
 

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