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Mesa Profit

Twotter Driver

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Mesa Air Group Reports First Quarter 2009 Results and go! Achieves First Profitable Quarter
Wednesday February 18, 6:00 am ET
PHOENIX, Feb. 18 /PRNewswire-FirstCall/ -- Mesa Air Group, Inc. (Nasdaq: MESA - News; the "Company") announced today first quarter net income from continuing operations of $15.5 million on operating revenues of $265.1 million. Total operating revenues for the first quarter of 2009 decreased $61.5 million, or 18.8% primarily resulting from a year-over-year decrease in capacity and lower fuel revenue. The net income of $15.5 million, or $0.46 per share on a diluted basis, compares to net loss from continuing operations of $2.8 million, or $0.10 per diluted share for the same period of fiscal 2008. Pro forma net income for the quarter was $10.0 million or $0.31 per diluted share. Pro forma net income for the quarter includes adjustments for the following items on an after tax basis: $5.0 million gain on extinguishment of debt, $0.8 million income from equity method investments, $0.5 million of go! legal, $0.4 million in startup costs associated with our Chinese joint venture, $0.2 million of lease return costs, and $0.1 million loss on disposal.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990210/LAW065)
[SIZE=-2]Source: Mesa Air Group, Inc.[/SIZE]
· [SIZE=-1]Click Here to Download Image[/SIZE]
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 December 31, 2007 to 151 as of December 31, 2008. At December 31, 2008 Mesa's operating fleet was comprised of 77 50-seat regional jets, 38 86-seat regional jets, 20 66-seat regional jets and 16 37-seat turboprops. As of December 31, 2008, the Company operated 49 regional jets and six turboprops on a codeshare basis with US Airways, 46 regional jets and ten turboprops for United, 34 regional jets for Delta, and had one operational spare. The Company also flew five regional jets in Hawaii, operating as go!
As of December 31, 2008, the Company's cash, marketable securities and restricted cash were approximately $64.0 million. In the second quarter of fiscal 2009 and similar to prior years, the Company will be making significant aircraft lease payments that will impact our cash position.
Events during the first quarter included:
-- go!: The go! operation generated approximately $0.5 million of net income on $11.6 million of revenue for the first fiscal quarter of 2009. Available seat miles increased in the first quarter 15.4% in comparison to the same period in the prior fiscal year. Fuel prices were reduced significantly in the quarter and go! experienced increases in passenger revenue, and load factor. Departures increased 11.4% and passengers carried increased 11.3% over the first quarter of 2008.
On November 28, 2008 Mesa announced entering into a settlement with the former controlling shareholder of Aloha Airlines concerning the Aloha Airlines lawsuit over Mesa's Hawaiian inter-island flight services operated under the go! brand name. Under the terms of the settlement and without admitting any wrongdoing, Mesa agreed to make a $2.0 million cash payment, issue shares of common stock equal to 10% of its then outstanding shares and provide inter-island travel benefits to certain former Aloha Airlines employees. The Company recorded a charge of $2.8 million related to this transaction in the fourth fiscal quarter of 2008. Under the terms of the settlement, if the shareholder is able to purchase the "Aloha" name in the bankruptcy court auction, it will license the "Aloha" name to Mesa.
-- Maintenance: Maintenance expense decreased 31.7% as compared to the first quarter of fiscal 2008. This $22.8 million spending reduction is mainly attributed to savings in engine repair costs resulting from the termination of a power by the hour contract and a decrease in expense associated with component contracts due to contract amendments.
-- Inventory: In the first quarter Mesa financed $2.9 million of certain rotable spare parts at an annual interest rate of 3.2% for 60 months. The first principal payment of $82,057 is due and payable on the 21st month. Interest will be accrued and added to the principal of the note for the first 20 months of the arrangement.
-- Bonds: The Company purchased certain senior convertible notes during the first quarter. These notes, due in February 2024, were reacquired at a substantial discount and resulted in a recorded gain of approximately $8.1 million. "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, Jonathan Ornstein. "We continue to execute our restructuring plan and take steps needed to improve the financial and operational performance of the Company. We would like to thank all of our constituents who have worked with us including our airline partners, vendors and suppliers, bondholders and our hard working employees and employee leadership team. While the environment continues to be challenging we remain confident that working together our company can build upon the success of this quarter."
 

DiverDriver

Welcome to The Fall.
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Which months are in the first quarter?
 

CX880

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Stock up 58% to a whopping $.08. Wish I bought it at $.04

Yep, same with the guys that bought it when it was 25 cents.................................................................................................................................................................. Support, JO, donate your money! 2 cents by the end of the month.
 
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