Group 1 - Mesa Laboratories, Inc. declared a regular quarterly dividend of $0.16 per share of common stock, payable on September 16, 2024, to shareholders of record on August 30, 2024 [1] - Mesa is a global leader in the design and manufacture of life science tools and critical quality control solutions for regulated applications in the pharmaceutical, healthcare, and medical device industries [2] - The company's products and services aim to ensure product integrity, increase patient and worker safety, and improve the quality of life globally [2]

Core Insights - Mesa Air Group has experienced a significant reduction in pilot attrition, which has fallen below expectations due to a slowdown in hiring across the airline industry [1][2] - The company announced the furlough of 12 pilots and deferral of training for 41 pilot trainees, effective July 12, 2024, which is expected to save approximately $750,000 per month in operating expenses [2] - Mesa anticipates that a more stable pilot workforce will allow for an increase in Embraer-175 block hours with United Airlines and plans to start recalling pilots by the end of the year [6] Company Overview - Mesa Air Group, Inc. is headquartered in Phoenix, Arizona, and operates as a regional air carrier providing scheduled passenger service to 73 cities across 32 states, the District of Columbia, Cuba, and Mexico [6] - As of June 30, 2024, Mesa operated a fleet of 73 aircraft with approximately 279 daily departures and employed around 2,000 staff [6] - All flights are operated as United Express under a capacity purchase agreement with United Airlines, Inc. [6]

Financial Performance - Total operating revenues for Q2 2024 were $131.6 million, an increase of $9.7 million, or 8.0%, from $121.8 million in Q2 2023[4] - Net income for Q2 2024 was $11.7 million, or $0.28 per diluted share, compared to a net loss of $35.1 million, or $(0.88) per diluted share, in Q2 2023[6] - Adjusted EBITDA for Q2 2024 was $26.8 million, compared to $7.1 million in Q2 2023[7] - Total operating expenses in Q2 2024 were $119.9 million, a decrease of $28.8 million, or 19.3%, from $148.7 million in Q2 2023[5] - Mesa achieved its first GAAP and adjusted net profits in 11 quarters, along with the best adjusted EBITDAR result over that period[3] - GAAP net income for the three months ended March 31, 2024, was $11,660, compared to a net loss of $35,122 in the same period last year[24] - Adjusted EBITDA increased to $26,758 from $7,065 year-over-year[24] - Adjusted EBITDAR rose to $28,166 from $7,900 in the previous year[25] - For the six months ended March 31, 2024, the company reported a GAAP net loss of $45.3 million, compared to a net loss of $47.2 million for the same period in 2023[28] - Adjusted EBITDA for the six months ended March 31, 2024, was $31.9 million, an increase from $28.9 million in the prior year, reflecting a growth of approximately 6.9%[28] - The company reported an adjusted net loss of $13.3 million for the six months ended March 31, 2024, compared to an adjusted net loss of $25.6 million in the prior year, representing an improvement of approximately 48.0%[28] Debt and Expenses - Mesa reduced its total debt by $221.5 million, or 36%, over the past year, ending Q2 2024 with $400.0 million in total debt[3] - Interest expense for the three months ended March 31, 2024, was $10,640, compared to $13,030 in the same period last year[24] - The company incurred an interest expense of $21.8 million for the six months ended March 31, 2024, down from $24.3 million in the same period of 2023, indicating a reduction of about 10.3%[28] - Aircraft rent expenses decreased to $2.6 million for the six months ended March 31, 2024, from $4.9 million in the same period of 2023[28] - The company experienced a $3.2 million in non-recurring third-party costs associated with the sale of assets and retirement of debt during the six months ended March 31, 2024[31] - A $3.0 million gain on extinguishment of debt was recorded during the six months ended March 31, 2024[32] Operational Metrics - Approximately 98% of total revenue in Q2 2024 was derived from the contract with United Airlines[10] - The controllable completion factor for United during Q2 2024 was 99.85%, compared to 99.63% in Q2 2023[9] - Mesa's fleet mix in Q2 2024 comprised 56 E-175s and 24 CRJ-900s[10] - Available seat miles decreased by 9.8% to 961,761 thousands compared to 1,065,771 thousands in the same period last year[22] - Block hours declined by 10.2% to 43,270 from 48,186 year-over-year[22] - Total passengers transported fell by 7.9% to 1,422,702 from 1,545,489 in the previous year[22] - The controllable completion factor for United was 99.85%, up from 99.63% year-over-year[22] - Total completion factor for United decreased to 97.15% from 98.48% in the previous year[22] Gains and Losses - The company reported a $7.2 million gain on the transfer of investments in equity securities during the three months ended March 31, 2024[26] - There was a $45.5 million impairment loss on held for sale accounting treatment on seven CRJ 900 aircraft during the six months ended March 31, 2024[29] - The company recognized a $10.5 million gain on debt forgiveness during the six months ended March 31, 2024[30] - A $4.0 million loss was recorded due to changes in the fair value of the company's investments in equity securities for the six months ended March 31, 2024[30] Future Outlook - The company expects to remain cash-flow neutral for the remainder of the fiscal year[4]

Financial Performance - Total operating revenues for Q2 2024 were $131.6 million, an increase of $9.7 million or 8.0% from $121.8 million in Q2 2023 [13][26] - Pre-tax income was $11.7 million, with net income also at $11.7 million or $0.28 per diluted share, compared to a net loss of $35.1 million or $(0.88) per diluted share in Q2 2023 [26][12] - Adjusted net income for Q2 2024 was $6.3 million or $0.15 per diluted share, versus an adjusted net loss of $21.3 million or $(0.53) per diluted share in Q2 2023 [26][12] Operational Highlights - Mesa Air Group operated a fleet of 80 aircraft with approximately 263 daily departures, providing scheduled passenger service to 79 cities [2] - The controllable completion factor was 99.85% for Q2 2024, compared to 99.63% in Q2 2023 [27][20] - The company reported a significant improvement in adjusted EBITDA, reaching $26.8 million for Q2 2024, compared to $7.1 million in Q2 2023 [3][26] Cost Management - Total operating expenses in Q2 2024 were $119.9 million, a decrease of $28.8 million or 19.3% from $148.7 million in Q2 2023 [6][12] - The decrease in operating expenses was primarily due to lower asset impairment losses, depreciation and amortization expenses, and flight operations expenses [6][12] - Mesa has reduced its total debt by $221.5 million or 36% over the past year, ending Q2 2024 with $400 million in total debt [12][28] Future Outlook - The company expects to remain cash-flow neutral for the remainder of the fiscal year while transitioning to higher-margin E-175 flying [6] - Mesa anticipates returning to consistent profitability in the future, supported by an optimized asset base and a strong pilot pipeline [6][12]

Financial Performance - Mesa Air Group reported operating income of $11.6 million for the three months ended March 31, 2024, compared to an operating loss of $26.9 million for the same period in 2023[162]. - Total operating revenues increased by $9.7 million, or 8.0%, to $131.6 million for the three months ended March 31, 2024, driven by a $10.0 million, or 9.7%, increase in contract revenue[167]. - Operating expenses decreased by $28.8 million, or 19.3%, to $119.9 million for the three months ended March 31, 2024, primarily due to reduced impairment charges and lower flight operations expenses[168]. - Total operating revenue decreased by $18.6 million, or 6.9%, to $250.4 million for the six months ended March 31, 2024, compared to the same period in 2023[187]. - Operating loss increased to $36.8 million for the six months ended March 31, 2024, compared to an operating loss of $24.4 million for the same period in 2023[180]. - The company experienced a net loss of $46.2 million for the six months ended March 31, 2024, including a non-cash impairment charge of $43.0 million[209]. Revenue and Expenses - Contract revenue per available seat mile (CRASM) increased by 21.5% to 11.83 cents for the three months ended March 31, 2024[164]. - Flight operations expense decreased by $5.5 million, or 10.0%, to $49.3 million, attributed to decreased pilot training and lower pilot wages[168]. - Maintenance expenses decreased by $1.7 million, or 3.7%, to $44.3 million for the three months ended March 31, 2024[168]. - General and administrative expense decreased by $2.4 million, or 17.8%, to $11.1 million for the three months ended March 31, 2024, driven by decreases in pass-through property taxes and insurance costs[172]. - Depreciation and amortization expense decreased by $6.7 million, or 40.6%, to $9.8 million for the three months ended March 31, 2024, due to aircraft being sold or classified as non-depreciable assets[173]. - Asset impairment of $2.7 million was recorded for the three months ended March 31, 2024, compared to $16.7 million for the same period in 2023[174]. - Depreciation and amortization expense decreased by $8.6 million, or 27.2%, to $23.1 million for the six months ended March 31, 2024, compared to the same period in 2023[193]. - Asset impairment of $43.0 million was recorded for the six months ended March 31, 2024, primarily related to eight CRJ-900 aircraft and other assets designated as held for sale[194]. Operational Metrics - The number of passengers decreased by 122,787, or 7.9%, to 1,422,702 for the three months ended March 31, 2024[167]. - Block hours flown decreased by 4,916 hours, or 10.2%, to 43,270 hours for the three months ended March 31, 2024[167]. - Mesa operated a fleet of 112 aircraft as of March 31, 2024, with approximately 263 daily departures[144]. - The company’s fleet consisted of 56 E-175 and 24 CRJ-900 aircraft under its United Capacity Purchase Agreement (CPA) as of March 31, 2024[144]. Cash Flow and Debt - Net cash provided by operating activities for the six months ended March 31, 2024, was $8.4 million, compared to a net cash used of $8.6 million for the same period in 2023[221][223]. - Net cash flow provided by investing activities totaled $94.5 million for the six months ended March 31, 2024, with proceeds from the sale of aircraft and engines totaling $107.7 million[226]. - Net cash flow used in financing activities was $117.5 million for the six months ended March 31, 2024, with principal repayments on long-term debt amounting to $203.4 million[229]. - As of March 31, 2024, the company has $94.4 million of principal maturity payments on long-term debt due within the next twelve months[213]. - The company had cash and cash equivalents of $18.5 million, restricted cash of $3.0 million, and $80.3 million in assets held for sale as of March 31, 2024[219]. Future Projections and Strategies - The company generated approximately $20.4 million in incremental revenue from increased CPA rates from October 1, 2023, through April 30, 2024, and is projected to generate an additional $26.8 million from May 1, 2024, through December 31, 2024[211]. - The company entered into a binding Memorandum with RASPRO Trust to defer a $50.3 million buyout obligation over the period of June 2024 to September 2024[211]. - The company expects to sell remaining shares of Archer Aviation, with a fair value of approximately $6.9 million as of June 14, 2024, by the end of July 2024[211]. - The company is actively seeking arrangements to sell surplus assets related to the CRJ fleet to reduce debt and optimize operations[216]. Market and Economic Factors - The pilot shortage and increased pilot wages adversely impacted financial results, with hourly pay for captains increasing by nearly 118%[208]. - The company had $233.5 million of variable-rate debt, with a hypothetical 100 basis point change in market interest rates potentially affecting interest expense by approximately $2.3 million in the six months ended March 31, 2024[236]. - The company had $166.6 million of fixed-rate debt as of March 31, 2024, and a hypothetical 100 basis point change in market interest rates would not impact interest expense or materially affect the fair value of these instruments[237]. - The company transitioned its debt arrangements from LIBOR to SOFR, with $306.3 million of borrowings based on SOFR as of March 31, 2024[239]. - The company has minimal foreign currency risks related to operating expenses in currencies other than the U.S. dollar, primarily the Canadian dollar, with no material impact on financial results from foreign currency transactions[240]. - The company’s agreements largely protect it from fuel price volatility, as fuel costs are directly paid and supplied by major partners[241].

Core Viewpoint - Mesa Air Group has successfully completed the sale of six surplus CRJ900 airframes and ten surplus CRJ engines, significantly reducing its financial obligations under the Regional Aircraft Securitization Program (RASPRO) [1][2]. Group 1: Financial Updates - The RASPRO finance lease initially carried a $50.4 million obligation for Mesa to purchase the assets by March 2024, which has now been reduced to $27.3 million as of May 31, 2024, following the recent sales [2]. - The company anticipates fully eliminating the remaining purchase obligation in the coming months as it continues to sell the remaining assets from RASPRO [2]. Group 2: Strategic Focus - Addressing the RASPRO lease has been a top priority for Mesa's surplus asset sale efforts over the past year and a half, allowing the company to focus on returning to profitable performance and executing other strategic actions [3]. - The company looks forward to enhancing its focus on future growth and profitability as it completes the remaining transactions related to the RASPRO assets [3]. Group 3: Company Overview - Mesa Air Group, headquartered in Phoenix, Arizona, operates as a regional air carrier providing scheduled passenger service to 79 cities across 36 states, Canada, Cuba, and Mexico [4]. - As of March 31, 2024, Mesa operated a fleet of 80 aircraft with approximately 263 daily departures and employed around 2,110 staff [4].

ENGLEWOOD, Colo., June 5, 2024 /PRNewswire/ -- XTI Aerospace, Inc. (Nasdaq: XTIA) ("XTI Aerospace" or the "Company") today announced that Mesa Air Group, Inc. ("Mesa") (Nasdaq: MESA) ("Mesa"), the holding company of regional air carrier Mesa Airlines, is the purchaser under a previously disclosed conditional purchase order with XTI Aircraft Company ("XTI"), a wholly-owned subsidiary of the Company, for up to 100 TriFan 600 aircraft, a fixed-wing, vertical lift crossover airplane (VLCA), which is currently i ...

PHOENIX, June 05, 2024 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) ("Mesa" or the "Company") today provided additional detail around its holdings in XTI Aerospace, Inc. ("XTI Aerospace"), which is developing the TriFan 600, a unique, fixed-wing vertical lift crossover airplane (VLCA) that can take off and land like a helicopter and is configurable to transport up to six passengers. XTI Aerospace began publicly trading on the Nasdaq (symbol: XTIA) on March 13, 2024, following the closing of the m ...

PHOENIX, June 05, 2024 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ:MESA) ("Mesa" or the "Company") today announced that it has received a notification letter from the Listing Qualifications Department of the Nasdaq Stock Market LLC ("NASDAQ") informing the Company that it has regained compliance with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement"). Forward-Looking Statements This press release includes information that constitutes forw ...

Approximately 120 pilots are currently enrolled in program PHOENIX, May 20, 2024 (GLOBE NEWSWIRE) -- Mesa Air Group, Inc. (NASDAQ: MESA) ("Mesa" or the "Company") today reported first quarter fiscal 2024 financial and operating results. First Quarter Fiscal 2024 Update: Developments Subsequent to Quarter End: Received 283,734 common shares for vested warrants in XTI Aerospace, Inc. Surplus CRJ Asset Sale Updates, Subsequent to Quarter End: Jonathan Ornstein, Chairman and CEO, said, "While it has been a long ...