Company Quick10K Filing
Mesa Air
Price6.88 EPS1
Shares35 P/E5
MCap241 P/FCF2
Net Debt810 EBIT119
TEV1,051 TEV/EBIT9
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-11
10-Q 2019-12-31 Filed 2020-02-10
10-K 2019-09-30 Filed 2019-12-17
10-Q 2019-06-30 Filed 2019-08-14
10-Q 2019-03-31 Filed 2019-05-15
10-Q 2018-12-31 Filed 2019-02-13
10-K 2018-09-30 Filed 2018-12-20
S-1 2018-07-13 Public Filing
10-Q 2018-06-30 Filed 2018-09-05
8-K 2020-05-11 Earnings, Exhibits
8-K 2020-05-05 Officers
8-K 2020-04-20 Other Events, Exhibits
8-K 2020-04-03 Other Events
8-K 2020-03-26 Enter Agreement, Exhibits
8-K 2020-03-18 Regulation FD
8-K 2020-02-10 Earnings, Exhibits
8-K 2020-02-04 Shareholder Vote
8-K 2019-12-26 Accountant, Exhibits
8-K 2019-12-13 Enter Agreement, Officers
8-K 2019-12-11 Earnings, Exhibits
8-K 2019-11-26 Enter Agreement, Exhibits
8-K 2019-09-30 Enter Agreement
8-K 2019-08-09 Earnings, Exhibits
8-K 2019-05-10 Earnings, Exhibits
8-K 2019-04-09 Shareholder Vote, Other Events
8-K 2019-02-04 Earnings, Exhibits
8-K 2019-01-28 Enter Agreement
8-K 2018-12-03 Earnings, Exhibits
8-K 2018-09-11 Other Events, Exhibits
8-K 2018-08-27 Earnings, Exhibits
8-K 2018-08-08 Enter Agreement, Amend Bylaw, Other Events, Exhibits

MESA 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 mesa-ex101_6.htm
EX-31.1 mesa-ex311_8.htm
EX-31.2 mesa-ex312_9.htm
EX-32.1 mesa-ex321_7.htm
EX-32.2 mesa-ex322_10.htm

Mesa Air Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
1.51.20.90.60.30.02016201720182020
Assets, Equity
0.20.10.10.0-0.0-0.12016201720182020
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12016201720182020
Ops, Inv, Fin

10-Q 1 mesa-10q_20200331.htm 10-Q mesa-10q_20200331.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

Or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM                      TO                     

Commission File Number 001-38626

 

MESA AIR GROUP, INC.

(Exact name of registrant as specified in its charter)

 

 

Nevada

 

85-0302351

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

410 North 44th Street, Suite 700

Phoenix, Arizona 85008

 

85008

(Address of principal executive offices)

 

(Zip Code)

 

Registrant's telephone number, including area code: (602) 685-4000

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading Symbol(s)

 

Name of Each Exchange of Which Registered

Common Stock, no par value

 

MESA

 

Nasdaq Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes      No  

As of March 31, 2020, the registrant had 35,194,902 shares of common stock, no par value per share, issued and outstanding.

 

 


TABLE OF CONTENTS

 

PART I – FINANCIAL INFORMATION

 

 

 

Item 1. Financial Statements

3

 

 

Condensed Consolidated Balance Sheets

3

 

 

Condensed Consolidated Statements of Operations

4

 

 

Condensed Consolidated Statements of Stockholders' Equity

5

 

 

Condensed Consolidated Statements of Cash Flows

7

 

 

Notes to Condensed Consolidated Financial Statements

8

 

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

27

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

40

 

 

Item 4. Controls and Procedures

40

 

 

PART II – OTHER INFORMATION

42

 

 

Item 1. Legal Proceedings

42

 

 

Item 1A. Risk Factors

42

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

43

 

 

Item 3. Defaults Upon Senior Securities

43

 

 

Item 4. Mine Safety Disclosures

43

 

 

Item 5. Other Information

43

 

 

Item 6. Exhibits

43

 

 

SIGNATURES

45

 

 


Where You Can Find More Information

Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (http://investor.mesa-air.com/), SEC filings, webcasts, press releases, and conference calls. We use these mediums, including our website, to communicate with our members and public about our company, our products, and other issues. It is possible that the information that we make available may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our website.

Cautionary Note Regarding Forward Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations and financial position, business strategy and plans, and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as "may", "should", "expects", "might", "plans", "anticipates", "could", "intends", "target", "projects", "contemplates", "believes", "estimates", "predicts", "potential", "seek", "would", "continue", or the negative of these terms or other similar expressions. The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and are subject to a number of risks, uncertainties and assumptions described in the "Risk Factors" section and elsewhere in this Quarterly Report on Form 10-Q. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Some of the key factors that could cause actual results to differ from our expectations include:

 

public health epidemics or pandemics such as COVID-19;

 

severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and of business’ and governments’ responses to the pandemic on our operations and personnel, and on demand for air travel;

 

the supply and retention of qualified airline pilots;

 

the volatility of pilot attrition;

 

dependence on, and changes to, or non-renewal of, our capacity purchase agreements;

 

increases in our labor costs;

 

reduced utilization (the percentage derived from dividing (i) the number of block hours actually flown during a given month under a particular capacity purchase agreement by (ii) the maximum number of block hours that could be flown during such month under the particular capacity purchase agreement) under our capacity purchase agreements;

 

direct operation of regional jets by our major airline partners;

 

the financial strength of our major airline partners and their ability to successfully manage their businesses through the unprecedented decline in air travel attributable to the COVID-19 pandemic;

 

limitations on our ability to expand regional flying within the flight systems of our major airline partners' and those of other major airlines;

 

our significant amount of debt and other contractual obligations;

 

our compliance with ongoing financial covenants under our credit facilities; and

 

our ability to keep costs low and execute our growth strategies.

 

1


While we may elect to update these forward-looking statements at some point in the future, whether as a result of any new information, future events, or otherwise, we have no current intention of doing so except to the extent required by applicable law.

 

2


Part I – Financial Information

Item 1. Financial Statements

MESA AIR GROUP, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share amounts) (Unaudited)

 

 

 

March 31,

 

 

September 30,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

52,399

 

 

$

68,855

 

Restricted cash

 

 

3,441

 

 

 

3,646

 

Receivables, net

 

 

14,182

 

 

 

23,080

 

Expendable parts and supplies, net

 

 

22,378

 

 

 

21,337

 

Prepaid expenses and other current assets

 

 

5,911

 

 

 

40,923

 

Total current assets

 

 

98,311

 

 

 

157,841

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

1,242,797

 

 

 

1,273,585

 

Intangibles, net

 

 

8,782

 

 

 

9,532

 

Lease and equipment deposits

 

 

13,973

 

 

 

2,167

 

Operating lease right-of-use assets

 

 

140,753

 

 

 

 

Other assets

 

 

7,124

 

 

 

8,792

 

Total assets

 

$

1,511,740

 

 

$

1,451,917

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of long-term debt and financing leases

 

$

168,171

 

 

$

165,900

 

Current maturities of operating leases

 

 

43,648

 

 

 

 

Accounts payable

 

 

49,246

 

 

 

49,930

 

Accrued compensation

 

 

12,406

 

 

 

11,988

 

Other accrued expenses

 

 

27,138

 

 

 

28,888

 

Total current liabilities

 

 

300,609

 

 

 

256,706

 

Noncurrent liabilities:

 

 

 

 

 

 

 

 

Long-term debt and financing leases, excluding current portion

 

 

619,793

 

 

 

677,423

 

Noncurrent operating lease liabilities

 

 

78,698

 

 

 

 

Deferred credits

 

 

10,242

 

 

 

12,134

 

Deferred income taxes

 

 

59,791

 

 

 

55,303

 

Other noncurrent liabilities

 

 

1,255

 

 

 

24,483

 

Total noncurrent liabilities

 

 

769,779

 

 

 

769,343

 

Total liabilities

 

 

1,070,388

 

 

 

1,026,049

 

Commitments and contingencies (Note 14 and Note 15)

 

 

 

 

 

 

 

 

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; 35,194,902 (2020) and 31,413,287

   (2019) shares issued and outstanding, 0 (2020) and

   3,600,953 (2019) warrants issued and outstanding

 

 

241,059

 

 

 

238,504

 

Retained earnings

 

 

200,293

 

 

 

187,364

 

Total stockholders' equity

 

 

441,352

 

 

 

425,868

 

Total liabilities and stockholders' equity

 

$

1,511,740

 

 

$

1,451,917

 

 

See accompanying notes to these condensed consolidated financial statements.

 

3


MESA AIR GROUP, INC.

Condensed Consolidated Statements of Operations

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

 

 

Three Months Ended March 31,

 

Six Months Ended March 31,

 

 

 

2020

 

 

2019

 

2020

 

 

2019

 

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract revenue

 

$

165,781

 

 

$

169,771

 

$

337,580

 

 

$

340,220

 

Pass-through and other

 

 

14,115

 

 

 

7,376

 

 

26,351

 

 

 

15,083

 

Total operating revenues

 

 

179,896

 

 

 

177,147

 

 

363,931

 

 

 

355,303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flight operations

 

 

52,891

 

 

 

49,366

 

 

105,535

 

 

 

102,611

 

Fuel

 

 

188

 

 

 

101

 

 

358

 

 

 

222

 

Maintenance

 

 

64,335

 

 

 

45,380

 

 

122,430

 

 

 

85,182

 

Aircraft rent

 

 

12,285

 

 

 

14,110

 

 

23,614

 

 

 

28,229

 

Aircraft and traffic servicing

 

 

1,336

 

 

 

1,065

 

 

2,400

 

 

 

1,999

 

General and administrative

 

 

14,500

 

 

 

13,472

 

 

27,496

 

 

 

25,686

 

Depreciation and amortization

 

 

20,469

 

 

 

19,276

 

 

41,021

 

 

 

37,767

 

Total operating expenses

 

 

166,004

 

 

 

142,770

 

 

322,854

 

 

 

281,696

 

Operating income

 

 

13,892

 

 

 

34,377

 

 

41,077

 

 

 

73,607

 

Other (expenses) income, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(11,673

)

 

 

(13,772

)

 

(24,300

)

 

 

(28,614

)

Interest income

 

 

36

 

 

 

299

 

 

94

 

 

 

455

 

Loss on extinguishment of debt

 

 

-

 

 

 

(3,616

)

 

-

 

 

 

(3,616

)

Other (expense) income, net

 

 

937

 

 

 

47

 

 

641

 

 

 

533

 

Total other (expense), net

 

 

(10,700

)

 

 

(17,042

)

 

(23,565

)

 

 

(31,242

)

Income before taxes

 

 

3,192

 

 

 

17,335

 

 

17,512

 

 

 

42,365

 

Income tax expense

 

 

1,307

 

 

 

4,086

 

 

4,842

 

 

 

10,035

 

Net income

 

$

1,885

 

 

$

13,249

 

$

12,670

 

 

$

32,330

 

Net income per share attributable to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

common shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.05

 

 

$

0.38

 

$

0.36

 

 

$

0.93

 

Diluted

 

$

0.05

 

 

$

0.38

 

$

0.36

 

 

$

0.92

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

35,141

 

 

 

34,699

 

 

35,082

 

 

 

34,607

 

Diluted

 

 

35,265

 

 

 

34,962

 

 

35,220

 

 

 

35,041

 

 

 

See accompanying notes to these condensed consolidated financial statements.

 

 

4


MESA AIR GROUP, INC.

Condensed Consolidated Statements of Stockholders' Equity

(In thousands, except share amounts) (Unaudited)

 

 

 

Six Months Ended March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

Common

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

Number of

 

 

Number of

 

 

Paid-In

 

 

Retained

 

 

 

 

 

 

 

Shares

 

 

Warrants

 

 

Capital

 

 

Earnings

 

 

Total

 

Balance at September 30, 2018

 

 

23,902,903

 

 

 

10,614,990

 

 

$

234,683

 

 

$

139,784

 

 

$

374,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

 

 

 

 

 

 

 

1,454

 

 

 

 

 

 

1,454

 

Stock issuance costs

 

 

 

 

 

 

 

 

157

 

 

 

 

 

 

157

 

Net income

 

 

 

 

 

 

 

 

 

 

 

19,081

 

 

 

19,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2018

 

 

23,902,903

 

 

 

10,614,990

 

 

$

236,294

 

 

$

158,865

 

 

$

395,159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

 

 

 

 

 

 

$

1,298

 

 

 

 

 

$

1,298

 

Repurchased shares

 

 

(52,967

)

 

 

 

 

 

(449

)

 

 

 

 

 

(449

)

Stock issuance costs

 

 

 

 

 

 

 

 

28

 

 

 

 

 

 

28

 

Warrants converted to common stock

 

 

3,834,693

 

 

 

(3,834,693

)

 

 

 

 

 

 

 

 

 

Restricted shares issued

 

 

284,846

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

13,249

 

 

 

13,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2019

 

 

27,969,475

 

 

 

6,780,297

 

 

$

237,171

 

 

$

172,114

 

 

$

409,285

 

 

 

 

5


MESA AIR GROUP, INC.

Condensed Consolidated Statements of Stockholders' Equity

(In thousands, except share amounts) (Unaudited)

 

 

 

Six Months Ended March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

Common

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

Number of

 

 

Number of

 

 

Paid-In

 

 

Retained

 

 

 

 

 

 

 

Shares

 

 

Warrants

 

 

Capital

 

 

Earnings

 

 

Total

 

Balance at September 30, 2019

 

 

31,413,287

 

 

 

3,600,953

 

 

$

238,504

 

 

$

187,364

 

 

$

425,868

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adoption ASU 2018-09 Stock compensation-

   income taxes

 

 

 

 

 

 

 

 

 

 

 

259

 

 

 

259

 

Stock compensation expense

 

 

 

 

 

 

 

 

1,320

 

 

 

 

 

 

1,320

 

Repurchased shares and warrants

 

 

(5,558

)

 

 

 

 

 

(41

)

 

 

 

 

 

(41

)

Warrants converted to common stock

 

 

1,612,481

 

 

 

(1,612,481

)

 

 

 

 

 

 

 

 

 

Restricted shares issued

 

 

18,916

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

10,785

 

 

 

10,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2019

 

 

33,039,126

 

 

 

1,988,472

 

 

$

239,783

 

 

$

198,408

 

 

$

438,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

 

 

 

 

 

 

 

1,193

 

 

 

 

 

 

1,193

 

Repurchased shares and warrants

 

 

(18,244

)

 

 

 

 

 

(160

)

 

 

 

 

 

(160

)

Warrants converted to common stock

 

 

1,988,472

 

 

 

(1,988,472

)

 

 

 

 

 

 

 

 

 

Restricted shares issued

 

 

141,614

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee share purchases

 

 

43,934

 

 

 

 

 

 

243

 

 

 

 

 

 

243

 

Net income

 

 

 

 

 

 

 

 

 

 

 

1,885

 

 

 

1,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2020

 

 

35,194,902

 

 

 

 

 

$

241,059

 

 

$

200,293

 

 

$

441,352

 

 

See accompanying notes to these condensed consolidated financial statements.

 

 

6


MESA AIR GROUP, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands) (Unaudited)

 

Six Months Ended March 31,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

12,670

 

 

$

32,330

 

Adjustments to reconcile net income to net cash flows provided by operating

   activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

41,021

 

 

 

37,767

 

Stock compensation expense

 

 

2,513

 

 

 

2,752

 

Deferred income taxes

 

 

4,490

 

 

 

10,039

 

Amortization of deferred credits

 

 

(2,041

)

 

 

(2,575

)

Unfavorable lease liabilities

 

 

 

 

 

(3,095

)

Amortization of debt financing costs and accretion of interest on

   non-interest-bearing subordinated notes

 

 

2,149

 

 

 

2,000

 

Loss on extinguishment of debt

 

 

 

 

 

3,616

 

Loss (Gain) on disposal of assets

 

 

514

 

 

 

(33

)

Provision for obsolete expendable parts and supplies

 

 

306

 

 

 

319

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Receivables

 

 

9,019

 

 

 

1,734

 

Expendable parts and supplies

 

 

(1,382

)

 

 

(3,890

)

Prepaid expenses and other current assets

 

 

97

 

 

 

(7,244

)

Accounts payable

 

 

(602

)

 

 

(3,451

)

Accrued liabilities

 

 

2,122

 

 

 

(499

)

Change in operating lease right-of-use assets

 

 

(5,674

)

 

 

 

Net cash provided by operating activities

 

 

65,202

 

 

 

69,770

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(12,968

)

 

 

(34,250

)

Sales of investment securities

 

 

 

 

 

20,077

 

Lease and equipment deposits

 

 

(13,804

)

 

 

(7,296

)

Returns of lease and equipment deposits

 

 

1,999

 

 

 

2,978

 

Net cash used in investing activities

 

 

(24,773

)

 

 

(18,491

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

     Proceeds from long-term debt

 

 

23,000

 

 

 

91,200

 

Principal payments on long-term debt and financing leases

 

 

(79,395

)

 

 

(163,748

)

Debt financing costs

 

 

(494

)

 

 

(2,540

)

Debt prepayment costs

 

 

 

 

 

(1,672

)

Stock issuance costs

 

 

 

 

 

185

 

Repurchase of stock

 

 

(201

)

 

 

(449

)

Net cash used in financing activities

 

 

(57,090

)

 

 

(77,024

)

 

 

 

 

 

 

 

 

 

Net change in cash, cash equivalents and restricted cash

 

 

(16,661

)

 

 

(25,745

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

72,501

 

 

 

107,134

 

Cash, cash equivalents and restricted cash at end of period

 

$

55,840

 

 

$

81,389

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

22,402

 

 

$

27,937

 

Cash paid for income taxes, net

 

$

45

 

 

$

51

 

Operating lease payments in operating cash flows (1)

 

$

26,240

 

 

$

 

Supplemental non-cash operating activities

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange of lease liabilities

 

$

145,627

 

 

$

 

Supplemental non-cash investing activities

 

 

 

 

 

 

 

 

Accrued capital expenditures

 

$

98

 

 

$

6,345

 

 

 

 

 

 

 

 

 

 

See accompanying notes to these condensed consolidated financial statements.

 

(1)See section 14 Leased and Commitments.

 

 

 

7


MESA AIR GROUP, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1.

Organization and Operations

About Mesa Air Group, Inc.

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. ("Mesa" or the "Company") is a holding company whose principal subsidiary, Mesa Airlines, Inc. ("Mesa Airlines"), operates as a regional air carrier providing scheduled flight service to 135 cities in 39 states, the District of Columbia, Canada, Mexico, Cuba, and the Bahamas. As of March 31, 2020, Mesa oper