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Mesa Air (MESA)

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 106 cities in 38 states, the District of Columbia, the Bahamas, and Mexico as well as cargo services out of Cincinnati/Northern Kentucky International Airport. As of February 28th, 2021, Mesa operated a fleet of 16 aircraft with approximately 393 daily departures and 3,100 employees. Mesa operates all of its flights as either American Eagle, United Express, or DHL Express flights pursuant to the terms of capacity purchase agreements entered into with American Airlines, Inc., United Airlines, Inc., and DHL.

Company profile

Ticker
MESA
Exchange
CEO
Jonathan Ornstein
Employees
Incorporated
Location
Fiscal year end
Former names
MESA AIRLINES INC
SEC CIK
Subsidiaries
Mesa Airlines, Inc. • Mesa Air Group—Airline Inventory Management, LLC ...
IRS number
850302351

MESA stock data

Calendar

8 Aug 22
12 Aug 22
30 Sep 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Sep 21 Sep 20 Sep 19 Sep 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 57.8M 57.8M 57.8M 57.8M 57.8M 57.8M
Cash burn (monthly) 7.15M 10.5M 4.16M 7.99M (no burn) (no burn)
Cash used (since last report) 10.24M 15.04M 5.96M 11.45M n/a n/a
Cash remaining 47.55M 42.76M 51.84M 46.34M n/a n/a
Runway (months of cash) 6.7 4.1 12.5 5.8 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
15 Jul 22 Gillman Brian S Common Stock Payment of exercise Dispose F No No 2.03 1,050 2.13K 68,536
15 Jul 22 Gillman Brian S Common Stock Option exercise Acquire M No No 0 2,527 0 69,586
15 Jul 22 Gillman Brian S Restricted Stock Award Common Stock Option exercise Dispose M No No 0 2,527 0 86,649
1 Jun 22 Lotz Michael Common Stock Payment of exercise Dispose F No No 2.9 44,781 129.86K 305,646
1 Jun 22 Lotz Michael Common Stock Option exercise Acquire M No No 0 63,045 0 350,427
1 Jun 22 Lotz Michael Common Stock Option exercise Acquire M No No 0 21,573 0 287,382
1 Jun 22 Lotz Michael Common Stock Option exercise Acquire M No No 0 23,158 0 265,809
1 Jun 22 Lotz Michael Restricted Stock Award Common Stock Grant Acquire A No No 0 160,305 0 266,496
1 Jun 22 Lotz Michael Restricted Stock Award Common Stock Option exercise Dispose M No No 0 63,045 0 106,191
1 Jun 22 Lotz Michael Restricted Stock Award Common Stock Option exercise Dispose M No No 0 21,573 0 169,236
57.5% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 96 103 -6.8%
Opened positions 9 21 -57.1%
Closed positions 16 26 -38.5%
Increased positions 28 31 -9.7%
Reduced positions 45 38 +18.4%
13F shares Current Prev Q Change
Total value 961.3M 1.33B -27.6%
Total shares 20.87M 20.94M -0.3%
Total puts 146.6K 185.7K -21.1%
Total calls 96.4K 125.6K -23.2%
Total put/call ratio 1.5 1.5 +2.9%
Largest owners Shares Value Change
BLK Blackrock 2.48M $10.91M +0.9%
Royce & Associates 1.88M $8.27M +4.7%
Vanguard 1.71M $7.51M -1.5%
Marblegate Asset Management 1.55M $13.87M 0.0%
Dimensional Fund Advisors 1.1M $4.85M +30.4%
BAC Bank Of America 877.44K $3.86M +145.0%
Wedge Capital Management L L P 790.91K $3.48M -1.2%
Renaissance Technologies 676.12K $2.98M -0.1%
PRU Prudential Financial 632.12K $2.78M -0.4%
STT State Street 608.47K $2.68M -23.8%
Largest transactions Shares Bought/sold Change
BAC Bank Of America 877.44K +519.26K +145.0%
Acuitas Investments 0 -341.19K EXIT
Charles Schwab Investment Management 111.08K -271.1K -70.9%
Dimensional Fund Advisors 1.1M +257.03K +30.4%
Bridgeway Capital Management 431.8K -191.8K -30.8%
STT State Street 608.47K -190.51K -23.8%
FMR 174.45K +174.45K NEW
Hotchkis & Wiley Capital Management 569.3K +159.27K +38.8%
Geode Capital Management 558.25K -143.62K -20.5%
First Eagle Investment Management 297.43K +142.54K +92.0%

Financial report summary

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Competition
Alaska AirSkywest
Risks
  • We are highly dependent on our agreements with our major partners.
  • Reduced utilization levels of our aircraft under our agreements would adversely impact our financial results.
  • If our major partners experience events that negatively impact their financial strength or operations, our operations also may be negatively impacted.
  • The supply of pilots to the airline industry is limited and may negatively affect our operations and financial condition.
  • Pilot attrition may continue to negatively affect our operations and financial condition.
  • Mechanic attrition, together with difficulty recruiting and retaining qualified maintenance technicians, may negatively affect our operations and financial condition.
  • Increases in our labor costs, which constitute a substantial portion of our total operating costs, may adversely affect our business, results of operations and financial condition.
  • Our major partners may expand their direct operation of regional jets or seek other independent airlines to service their regional aircraft needs, thus limiting the expansion of our relationships with them.
  • We may be limited from expanding our flying within our major partners' flight systems and there are constraints on our ability to provide services to airlines other than American and United.
  • The residual value of our owned aircraft may be less than estimated in our depreciation policies.
  • The amounts we receive under our agreements may be less than the corresponding costs we incur.
  • Strikes, labor disputes and increased unionization of our workforces may adversely affect our ability to conduct our business and reduce our profitability.
  • We face tail risk in that we have aircraft lease commitments that extend beyond our existing contractual terms on certain aircraft.
  • We may incur substantial maintenance costs as part of our leased aircraft return obligations.
  • We may become involved in litigation that may materially adversely affect us.
  • Disagreements regarding the interpretation of our agreements with our major partners could have an adverse effect on our operating results and financial condition.
  • We rely on third-party suppliers as the sole manufacturers of our aircraft and aircraft engines.
  • Maintenance costs will likely increase as the age of our jet fleet increases.
  • If we face problems with any of our third-party service providers, our operations could be adversely affected.
  • Regulatory changes or tariffs could negatively impact our business and financial condition.
  • The issuance of operating restrictions applicable to one of the fleet types we operate could negatively impact our business and financial condition.
  • If we have a failure in our technology or security breaches of our information technology infrastructure our business and financial condition may be adversely affected.
  • We are subject to various environmental and noise laws and regulations, which could have a material adverse effect on our business, results of operations and financial condition.
  • Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited.
  • We may not be able to successfully implement our growth strategy.
  • Our ability to obtain financing or access capital markets may be limited.
  • Negative publicity regarding our customer service could have a material adverse effect on our business, results of operations and financial condition.
  • Risks associated with our presence in international emerging markets, including political or economic instability, and failure to adequately comply with existing legal requirements, may materially adversely affect us.
  • The airline industry is highly competitive and has undergone a period of consolidation and transition leaving fewer potential major partners.
  • Airlines are often affected by factors beyond their control, including: air traffic congestion at airports; air traffic control inefficiencies; adverse weather conditions, such as hurricanes or blizzards; increased security measures; new travel-related taxes; or the outbreak of disease; any of which could have a material adverse effect on our business, results of operations, and financial condition.
  • Terrorist activities or warnings have dramatically impacted the airline industry and will likely continue to do so.
  • The market price of our common stock may be volatile, which could cause the value of an investment in our stock to decline.
  • Our corporate charter includes provisions limiting ownership by non-U.S. citizens.
  • We currently do not intend to pay dividends on our common stock and, consequently, your only opportunity to achieve a return on your investment is if the price of our common stock appreciates.
  • We are an "emerging growth company," and the reduced disclosure and regulatory requirements applicable to "emerging growth companies" may make our common stock less attractive to investors.
  • The requirements of being a public company may strain our resources, increase our operating costs, divert management's attention, and affect our ability to attract and retain qualified board members or executive officers.
  • We are required to assess our internal control over financial reporting on an annual basis, and any future adverse findings from such assessment could result in a loss of investor confidence in our financial reports, result in significant expenses to remediate any internal control deficiencies and have a material adverse effect on our business, results of operations and financial condition.
Management Discussion
  • We had operating income of $0.2 million in our three months ended June 30, 2022 compared to operating income of $14.4 million in our three months ended June 30, 2021. In our three months ended June 30, 2022, we had net loss of $10.0 million compared to net income of $4.3 million in our three months ended June 30, 2021.
  • Our operating results for the three months ended June 30, 2022 reflect an increase in flight operations expense resulting from increased pilot training as well as a decrease in maintenance expense mainly as a result of fewer C-checks. Additionally, there were no government grant funds utilized as an offset to operating expenses during the three months ended June 30, 2022, compared to $26.1 million during the three months ended June 30, 2021.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
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Removed: select, unspecified