☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-3697002 | |
(State of incorporation) | (I.R.S. Employer Identification No.) | |
W6390 Challenger Drive, Suite 203 Appleton, WI | 54914-9120 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
None | None | None |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | ||||
Emerging growth company | ☐ |
Page | ||||
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Assets | ||||||||||||||||
Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 25,573 | $ | 37,170 | $ | 24,491 | $ | 37,170 | ||||||||
Restricted cash | 576 | 1,449 | 516 | 1,449 | ||||||||||||
Marketable securities | 136,178 | 138,370 | 133,303 | 138,370 | ||||||||||||
Accounts receivable, net | 15,680 | 7,422 | 24,119 | 7,422 | ||||||||||||
Notes receivable | 51,078 | 0 | 55,177 | — | ||||||||||||
Spare parts and supplies, net | 5,114 | 5,200 | 4,729 | 5,200 | ||||||||||||
Contract costs | 499 | 518 | 358 | 518 | ||||||||||||
Prepaid expenses and other | 1,834 | 4,174 | 1,640 | 4,174 | ||||||||||||
Total Current Assets | 236,532 | 194,303 | 244,333 | 194,303 | ||||||||||||
Property and Equipment | ||||||||||||||||
Flight property and equipment | 260,926 | 259,720 | 263,199 | 259,720 | ||||||||||||
Ground property and equipment | 8,221 | 8,252 | 8,320 | 8,252 | ||||||||||||
Less accumulated depreciation and amortization | (150,109 | ) | (143,313 | ) | (156,909 | ) | (143,313 | ) | ||||||||
Net Property and Equipment | 119,038 | 124,659 | 114,610 | 124,659 | ||||||||||||
Other Assets | ||||||||||||||||
Operating lease right-of-use | 17,328 | 18,679 | 16,005 | 18,679 | ||||||||||||
Intangibles | 5,300 | 5,300 | 5,300 | 5,300 | ||||||||||||
Long-term deferred tax asset | 616 | 533 | 616 | 533 | ||||||||||||
Long-term investments | 4,275 | 4,275 | 4,275 | 4,275 | ||||||||||||
Long-term contract costs | 0 | 96 | — | 96 | ||||||||||||
Long-term notes receivable | 0 | 47,568 | — | 47,568 | ||||||||||||
Other | 1,805 | 3,988 | 1,898 | 3,988 | ||||||||||||
Total Other Assets | 29,324 | 80,439 | 28,094 | 80,439 | ||||||||||||
Total Assets | 384,894 | $ | 399,401 | $ | 387,037 | $ | 399,401 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Current Liabilities | ||||||||||||||||
Accounts payable | $ | 15,797 | $ | 20,060 | $ | 18,574 | $ | 20,060 | ||||||||
Accrued payroll and employee benefits | 12,484 | 14,885 | 13,157 | 14,885 | ||||||||||||
Current portion of operating lease liability | 5,180 | 5,150 | 5,103 | 5,150 | ||||||||||||
Other accrued expenses | 228 | 172 | 196 | 172 | ||||||||||||
Contract liabilities | 6,917 | 8,098 | 4,961 | 8,098 | ||||||||||||
Deferred revenue | 40,102 | 35,792 | 27,500 | 35,792 | ||||||||||||
Income taxes payable | 751 | 0 | 3,487 | — | ||||||||||||
Current portion of long-term debt (stated principal amount of $3,500 at March 31, 2022 and December 31, 2021) | 5,845 | 5,880 | ||||||||||||||
Current portion of long-term debt (stated principal amount of $7,000 at June 30, 2022 and $3,500 December 31, 2021) | 9,310 | 5,880 | ||||||||||||||
Total Current Liabilities | 87,304 | 90,037 | 82,288 | 90,037 | ||||||||||||
Other Long-Term Liabilities | ||||||||||||||||
Long-term debt (stated principal amount of $56,000 at March 31, 2022 and December 31, 2021) | 61,110 | 61,670 | ||||||||||||||
Long-term debt (stated principal amount of $52,500 at June 30, 2022 and $56,000 at December 31, 2021) | 57,050 | 61,670 | ||||||||||||||
Long-term promissory note | 4,275 | 4,275 | 4,275 | 4,275 | ||||||||||||
Deferred tax liability | 653 | 688 | 653 | 688 | ||||||||||||
Long-term operating lease liability | 9,515 | 10,877 | 8,304 | 10,877 | ||||||||||||
Long-term contract liabilities | 0 | 1,326 | — | 1,326 | ||||||||||||
Deferred revenue, net of current portion | 0 | 9,046 | — | 9,046 | ||||||||||||
Other | 2,663 | 2,722 | 2,662 | 2,722 | ||||||||||||
Total Long-Term Liabilities | 78,216 | 90,604 | 72,944 | 90,604 | ||||||||||||
Total Liabilities | 165,520 | 180,641 | 155,232 | 180,641 | ||||||||||||
Commitments and Contingencies (Note 8) | 0 | 0 | 0 | 0 | ||||||||||||
Mezzanine Equity (Note 10) | ||||||||||||||||
Series C Convertible Redeemable Preferred Stock, $0.01 par value, 4,000,000 shares authorized, issued and outstanding at March 31, 2022 and December 31, 2021 | 13,200 | 13,200 | ||||||||||||||
Series C Convertible Redeemable Preferred Stock, $0.01 par value, 4,000,000 shares authorized, issued and outstanding at June 30, 2022 and December 31, 2021 | 13,200 | 13,200 | ||||||||||||||
Stockholders’ Equity | ||||||||||||||||
Common Stock, $0.01 par value, 100,000,000 shares authorized, 55,481,140 shares issued at March 31, 2022 and December 31, 2021, 47,053,806 shares outstanding at March 31, 2022 and 53,316,299 shares outstanding at December 31, 2021 | 555 | 555 | ||||||||||||||
Common Stock, $0.01 par value, 100,000,000 shares authorized, 55,481,140 shares issued at June 30, 2022 and December 31, 2021, 46,016,444 shares outstanding at June 30, 2022 and 53,316,299 shares outstanding at December 31, 2021 | 555 | 555 | ||||||||||||||
Additional paid-in capital | 286,262 | 287,429 | 286,064 | 287,429 | ||||||||||||
Retained deficit | (69,881 | ) | (79,144 | ) | (54,800 | ) | (79,144 | ) | ||||||||
Treasury stock | (10,762 | ) | (3,280 | ) | (13,214 | ) | (3,280 | ) | ||||||||
Total Stockholders’ Equity | 206,174 | 205,560 | 218,605 | 205,560 | ||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 384,894 | $ | 399,401 | 387,037 | $ | 399,401 | |||||||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||
Contract revenues | $ | 66,968 | $ | 49,756 | $ | 77,923 | $ | 52,845 | $ | 144,891 | $ | 102,601 | ||||||||||||
Contract services and other | 7 | 18 | 7 | 15 | 14 | 33 | ||||||||||||||||||
Total Operating Revenues | 66,975 | 49,774 | 77,930 | 52,860 | 144,905 | 102,634 | ||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
Payroll and related costs | 26,601 | 22,751 | 27,694 | 25,012 | 54,295 | 47,763 | ||||||||||||||||||
Aircraft fuel and oil | 51 | 13 | 34 | 44 | 85 | 57 | ||||||||||||||||||
Aircraft maintenance, materials and repairs | 14,501 | 11,072 | 16,336 | 12,540 | 30,837 | 23,612 | ||||||||||||||||||
Aircraft rent | 0 | 23 | — | 44 | — | 67 | ||||||||||||||||||
Other rents | 1,613 | 922 | 1,657 | 1,263 | 3,270 | 2,185 | ||||||||||||||||||
Depreciation, amortization and obsolescence | 6,644 | 6,500 | 6,674 | 6,499 | 13,318 | 12,999 | ||||||||||||||||||
Payroll Support Program | 0 | (27,914 | ) | — | (22,256 | ) | — | (50,170 | ) | |||||||||||||||
Purchased services and other | 3,765 | 3,150 | 3,514 | 3,110 | 7,279 | 6,260 | ||||||||||||||||||
Total Operating Expenses | 53,175 | 16,517 | 55,909 | 26,256 | 109,084 | 42,773 | ||||||||||||||||||
Income From Operations | 13,800 | 33,257 | 22,021 | 26,604 | 35,821 | 59,861 | ||||||||||||||||||
Other (Expense) Income | ||||||||||||||||||||||||
Interest income | 574 | 370 | 688 | 456 | 1,262 | 826 | ||||||||||||||||||
Interest expense | 0 | (362 | ) | — | (327 | ) | — | (689 | ) | |||||||||||||||
Loss on marketable securities | (2,423 | ) | (57 | ) | ||||||||||||||||||||
Gain (loss) on marketable securities | (3,602 | ) | 43 | (6,025 | ) | (14 | ) | |||||||||||||||||
Gain on extinguishment of debt | — | 228 | — | 228 | ||||||||||||||||||||
Other, net | 210 | 0 | 691 | 68 | 901 | 68 | ||||||||||||||||||
Total Other (Expense) Income | (1,639 | ) | (49 | ) | (2,223 | ) | 468 | (3,862 | ) | 419 | ||||||||||||||
Net Income Before Taxes | 12,161 | 33,208 | 19,798 | 27,072 | 31,959 | 60,280 | ||||||||||||||||||
Income Tax Expense | 2,898 | 7,983 | 4,717 | 6,551 | 7,615 | 14,534 | ||||||||||||||||||
Net Income | $ | 9,263 | $ | 25,225 | $ | 15,081 | $ | 20,521 | 24,344 | $ | 45,746 | |||||||||||||
Preferred stock dividends | 198 | 198 | 198 | 198 | 396 | 396 | ||||||||||||||||||
Net income available to common stockholders | $ | 9,065 | 25,027 | |||||||||||||||||||||
Net Income available to common stockholders | $ | 14,883 | $ | 20,323 | 23,948 | $ | 45,350 | |||||||||||||||||
Basic Earnings per share | $ | 0.19 | $ | 0.46 | $ | 0.32 | $ | 0.37 | $ | 0.51 | $ | 0.83 | ||||||||||||
Diluted Earnings per share | $ | 0.14 | $ | 0.35 | $ | 0.24 | $ | 0.28 | $ | 0.38 | $ | 0.63 | ||||||||||||
Weighted Average Common Shares: | ||||||||||||||||||||||||
Basic | 47,638 | 54,863 | 46,519 | 54,466 | 47,075 | 54,664 | ||||||||||||||||||
Diluted | 64 535 | 71,662 | 63,019 | 71,455 | 63,773 | 71,613 |
Mezzanine Equity - Series C Convertible Redeemable Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mezzanine Equity - Series C Convertible Redeemable Preferred Stock | Common Stock | Shares | Amount | Shares | Treasury Stock | Amount | Additional Paid-In Capital | Retained Deficit | Cost of Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Treasury Stock | Amount | Additional Paid-In Capital | Retained Deficit | Cost of Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 4,000 | $ | 13,200 | 53,316 | 2,165 | $ | 555 | $ | 287,429 | $ | (79,144 | ) | $ | (3,280 | ) | $ | 205,560 | 4,000 | $ | 13,200 | 53,316 | 2,165 | $ | 555 | $ | 287,429 | $ | (79,144 | ) | $ | (3,280 | ) | $ | 205,560 | ||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 9,263 | — | 9,263 | — | — | — | — | — | — | 24,344 | — | 24,344 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | — | (198 | ) | — | — | (198 | ) | — | — | — | — | — | (396 | ) | — | — | (396 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cancellation of stock option | — | — | — | — | — | (969 | ) | — | — | (969 | ) | — | — | — | — | — | (969 | ) | — | — | (969 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | (6,262 | ) | 6,262 | — | — | — | (7,482 | ) | (7,482 | ) | — | — | (7,300 | ) | 7,300 | — | — | — | (9,934 | ) | (9,934 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 (unaudited) | 4,000 | $ | 13,200 | 47,054 | 8,427 | $ | 555 | $ | 286,262 | $ | (69,881 | ) | $ | (10,762 | ) | $ | 206,174 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 (unaudited) | 4,000 | $ | 13,200 | �� | 46,016 | 9,465 | $ | 555 | $ | 286,064 | $ | (54,800 | ) | $ | (13,214 | ) | $ | 218,605 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mezzanine Equity - Series C Convertible Redeemable Preferred Stock | Common Stock | Mezzanine Equity - Series C Convertible Redeemable Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Treasury Stock | Amount | Additional Paid-In Capital | Retained Deficit | Cost of Treasury Stock | Total Stockholders’ Equity | Shares | Amount | Shares | Treasury Stock | Amount | Additional Paid-In Capital | Retained Deficit | Cost of Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 4,000 | $ | 13,200 | 54,863 | 618 | $ | 555 | $ | 288,221 | $ | (171,770 | ) | $ | (481 | ) | $ | 116,525 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | 4,000 | $ | 13,200 | 47,054 | 8,427 | $ | 555 | $ | 286,262 | $ | (69,881 | ) | $ | (10,762 | ) | $ | 206,174 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 25,225 | — | 25,225 | — | — | — | — | — | — | 15,081 | — | 15,081 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | — | (198 | ) | — | — | (198 | ) | — | — | — | — | — | (198 | ) | — | — | (198 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | — | — | (1,038 | ) | 1,038 | — | — | — | (2,452 | ) | (2,452 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 (unaudited) | 4,000 | $ | 13,200 | 54,863 | 618 | $ | 555 | $ | 288,023 | $ | (146,545 | ) | $ | (481 | ) | $ | 141,552 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 (unaudited) | 4,000 | $ | 13,200 | 46,016 | 9,465 | $ | 555 | $ | 286,064 | $ | (54,800 | ) | $ | (13,214 | ) | $ | 218,605 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mezzanine Equity - Series C Convertible Redeemable Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Treasury Stock | Amount | Additional Paid-In Capital | Retained Deficit | Cost of Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||||||
Balance, December 31, 2020 | 4,000 | $ | 13,200 | 54,863 | 618 | $ | 555 | $ | 288,221 | $ | (171,770 | ) | $ | (481 | ) | $ | 116,525 | |||||||||||||||||||
Net income | — | — | — | — | — | — | 45,746 | — | 45,746 | |||||||||||||||||||||||||||
Dividends | — | — | — | — | — | (396 | ) | — | (396 | ) | ||||||||||||||||||||||||||
Treasury stock purchases | — | — | (593 | ) | 593 | — | — | — | (888 | ) | (888 | ) | ||||||||||||||||||||||||
Balance, June 30, 2021 (unaudited) | 4,000 | $ | 13,200 | 54,270 | 1,211 | $ | 555 | $ | 287,825 | $ | (126,024 | ) | $ | (1,369 | ) | $ | 160,987 | |||||||||||||||||||
Mezzanine Equity - Series C Convertible Redeemable Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Treasury Stock | Amount | Additional Paid-In Capital | Retained Deficit | Cost of Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||||||
Balance, March 31, 2021 | 4,000 | $ | 13,200 | 54,863 | 618 | $ | 555 | $ | 288,023 | $ | (146,545 | ) | $ | (481 | ) | $ | 141,552 | |||||||||||||||||||
Net income | — | — | — | — | — | — | 20,521 | — | 20,521 | |||||||||||||||||||||||||||
Dividends | — | — | — | — | — | (198 | ) | — | — | (198 | ) | |||||||||||||||||||||||||
Treasury stock purchases | — | — | (593 | ) | 593 | — | — | — | (888 | ) | (888 | ) | ||||||||||||||||||||||||
Balance, June 30, 2021 (unaudited) | 4,000 | $ | 13,200 | 54,270 | 1,211 | $ | 555 | $ | 287,825 | $ | (126,024 | ) | $ | (1,369 | ) | $ | 160,987 | |||||||||||||||||||
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||
Net income | $ | 9,263 | $ | 25,225 | $ | 24 344 | $ | 45,746 | ||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation, amortization and obsolescence allowance | 6,644 | 6,500 | 13,318 | 12,999 | ||||||||||||
Amortization of contract costs | (1,066 | ) | (661 | ) | (2,383 | ) | (1,346 | ) | ||||||||
Amortization of engine overhauls | 616 | 298 | 1,305 | 724 | ||||||||||||
Deferred income taxes | (118 | ) | 163 | (118 | ) | 148 | ||||||||||
(Gain) loss on disposition of property and equipment | (2 | ) | 49 | |||||||||||||
Loss on disposition of property and equipment | 38 | 42 | ||||||||||||||
Loss on marketable securities | 2,423 | 57 | 6,025 | 14 | ||||||||||||
Gain on extinguishment of debt | — | (228 | ) | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (8,258 | ) | (14,193 | ) | (16,697 | ) | (3,530 | ) | ||||||||
Notes receivable | (3,510 | ) | (7,235 | ) | (7,609 | ) | (12,971 | ) | ||||||||
Federal tax receivable | 0 | (3,026 | ) | |||||||||||||
Spare parts and supplies | (229 | ) | 211 | (159 | ) | 462 | ||||||||||
Prepaid expenses and other | 4,523 | (1,256 | ) | 4,623 | (4,523 | ) | ||||||||||
Operating lease right-of-use | 19 | 96 | 54 | 173 | ||||||||||||
Accounts payable | (4,263 | ) | 609 | (1,486 | ) | 1,658 | ||||||||||
Accrued payroll and employee benefits | (2,401 | ) | (510 | ) | (1,728 | ) | (1,257 | ) | ||||||||
Other accrued expenses | 56 | 33 | 24 | (20 | ) | |||||||||||
Long-term deferred revenue | (9,046 | ) | 355 | (9,046 | ) | (5,282 | ) | |||||||||
Contract liabilities | (1,441 | ) | (312 | ) | (2,080 | ) | (636 | ) | ||||||||
Deferred revenue | 4,310 | 7,556 | (8,292 | ) | 20,634 | |||||||||||
Income taxes payable | 751 | 763 | 3,487 | (107 | ) | |||||||||||
Other long-term liabilities | (59 | ) | 24 | (60 | ) | — | ||||||||||
Net Cash (Used in) Provided by Operating Activities | (1,788 | ) | 14,746 | |||||||||||||
Net Cash Provided by Operating Activities | 3,560 | 52,700 | ||||||||||||||
Cash Flows From Investing Activities | ||||||||||||||||
Additions to property and equipment | (1,210 | ) | (163 | ) | (3,732 | ) | (171 | ) | ||||||||
Proceeds on disposition of property and equipment | 3 | 4 | 7 | 11 | ||||||||||||
Purchase of marketable securities | (231 | ) | (20,000 | ) | (958 | ) | (160,790 | ) | ||||||||
Sale of marketable securities | — | 42,222 | ||||||||||||||
Net Cash Used in Investing Activities | (1,438 | ) | (20,159 | ) | (4,683 | ) | (118,728 | ) | ||||||||
Cash Flows From Financing Activities | ||||||||||||||||
Repayments of long-term debt | (595 | ) | (700 | ) | (1,190 | ) | (28,873 | ) | ||||||||
Dividends paid | (198 | ) | (198 | ) | (396 | ) | (396 | ) | ||||||||
Cancellation of stock option | (969 | ) | 0 | (969 | ) | — | ||||||||||
Repurchased stock | (7,482 | ) | 0 | (9,934 | ) | (888 | ) | |||||||||
Net Cash Used in Financing Activities | (9,244 | ) | (898 | ) | (12,489 | ) | (30,157 | ) | ||||||||
Decrease in Cash, Cash Equivalents and Restricted Cash | (12,470 | ) | (6,311 | ) | (13,612 | ) | (96,185 | ) | ||||||||
Cash, Cash Equivalents and Restricted Cash, beginning of period | 38,619 | 131,193 | 38,619 | 131,193 | ||||||||||||
Cash, Cash Equivalents and Restricted Cash, end of period | $ | 26,149 | $ | 124,882 | $ | 25,007 | $ | 35,008 | ||||||||
Net losses recognized during the three months ended March 31, 2022 on equity securities | $ | (2,423 | ) | |
Less: Net gains and losses recognized during the period on equity securities sold during the three months ended March 31, 2022 | 0 | |||
Unrealized losses recognized during the reporting period on equity securities still held at March 31, 2022 | $ | (2,423 | ) | |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | |||||||
Net losses recognized during the period on equity securities | $ | (3,602 | ) | $ | (6,025 | ) | ||
Less: Net gains and losses recognized during the period on equity securities sold during the period | — | — | ||||||
Unrealized losses recognized during the period on equity securities held as of June 30, 2022 | $ | (3,602 | ) | $ | (6,025 | ) | ||
Net losses recognized during the three months ended March 31, 2021 on equity securities | $ | (57 | ) | |
Less: Net gains and losses recognized during the period on equity securities sold during the three months ended March 31, 2021 | 0 | |||
Unrealized losses recognized during the reporting period on equity securities still held at March 31, 2021 | $ | (57 | ) | |
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||
Net gains and losses recognized during the period on equity securities | $ | 43 | $ | (14 | ) | |||
Less: Net losses recognized during the period on equity securities sold during the period | (40 | ) | (40 | ) | ||||
Unrealized gains recognized during the period on equity securities held as of June 30, 2021 | $ | 83 | $ | 26 | ||||
Assets | Depreciable Life | Current Residual Value | ||||
Aircraft | 7 years | $ | 50 | |||
Rotable parts | 7 years | 10 | % | |||
Spare engines | 7 years | $ | 25 | |||
Ground equipment | up to 10 years | 0 | % | |||
Office equipment | up to 10 years | 0 | % | |||
Leasehold improvements | Shorter of asset or lease life | 0 | % |
June 30, 2022 | ||||||||||||||||||||||||||||||||
March 31, 2022 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Marketable securities – exchange-traded funds | $ | 111,851 | $ | 111,851 | $ | 0 | $ | 0 | $ | 108,992 | $ | 108,992 | $ | — | $ | — | ||||||||||||||||
Marketable securities – mutual funds | 24,327 | 24,327 | — | — | 24,311 | 24,311 | — | — | ||||||||||||||||||||||||
Long-term investments – bonds (see Note 6) | 4,275 | 0 | 4,275 | 0 | 4,275 | — | 4,275 | — | ||||||||||||||||||||||||
Total | $ | 140,453 | $ | 136,178 | $ | 4,275 | $ | 0 | $ | 137,578 | $ | 133,303 | $ | 4,275 | $ | — | ||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||
March 31, 2021 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Marketable securities – exchange-traded funds | $ | 19,943 | $ | 19,943 | $ | 0 | $ | 0 | $ | 118,284 | $ | 118,284 | $ | — | $ | — | ||||||||||||||||
Long-term investments – bonds (see Note 6) | 4,275 | 0 | 4,275 | 0 | 4,275 | — | 4,275 | — | ||||||||||||||||||||||||
Total | $ | 24,218 | $ | 19,943 | $ | 4,275 | $ | 0 | $ | 122,559 | $ | 118,284 | $ | 4,275 | $ | — | ||||||||||||||||
June 30, 2022 | December 31, 2021 | |||||||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||||
Notes, due December 31, 2025 (4.0%) | $ | 66,955 | $ | 67,550 | $ | 66,360 | $ | 67,550 | ||||||||
Less: current maturities | 5,845 | 5,880 | 9,310 | 5,880 | ||||||||||||
Total Long-Term Debt | $ | 61,110 | $ | 61,670 | $ | 57,050 | $ | 61,670 | ||||||||
Fiscal Year | Amount | Amount | ||||||
April 2022 through December 2022 | $ | 5,285 | ||||||
July 2022 through December 2022 | $ | 4,690 | ||||||
2023 | 9,170 | 9,170 | ||||||
2024 | 8,890 | 8,890 | ||||||
2025 | 43,610 | 43,610 | ||||||
Total | $ | 66,955 | $ | 66,360 | ||||
Weighted-average remaining lease term | ||||
Weighted-average discount rate | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
Three Months Ended March 31, | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
Operating lease costs | $ | 1,474 | $ | 766 | $ | 1,472 | $ | 1,110 | $ | 2,946 | $ | 1,876 | ||||||||||||
Short-term lease costs | 104 | 146 | 125 | 163 | 229 | 309 | ||||||||||||||||||
Variable lease costs | 35 | 33 | 60 | 34 | 95 | 67 | ||||||||||||||||||
Total Lease Costs | $ | 1,613 | $ | 945 | $ | 1,657 | $ | 1,307 | $ | 3,270 | $ | 2,252 | ||||||||||||
Fiscal Year | Amount | Amount | ||||||
April 2022 through December 2022 | $ | 4,558 | ||||||
July 2022 through December 2022 | $ | 3,032 | ||||||
2023 | 5,832 | 5,832 | ||||||
2024 | 3,356 | 3 356 | ||||||
2025 | 2,645 | 2,645 | ||||||
2026 | 147 | 147 | ||||||
Thereafter | 511 | 511 | ||||||
Total lease payments | 17,049 | 15,523 | ||||||
Less imputed interest | (2,354 | ) | (2,116 | ) | ||||
Total Lease Liabilities | $ | 14,695 | $ | 13,407 | ||||
Total | July through December 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | April through December 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | ||||||||||||||||||||||||||||||||||||||||||||||||||
Aircraft Notes Principal | $ | 59,500 | $ | 3,500 | $ | 7,000 | $ | 7,000 | $ | 42,000 | $ | 0 | $ | — | $ | 59,500 | $ | 3,500 | $ | 7,000 | $ | 7,000 | $ | 42,000 | $ | — | $ | — | ||||||||||||||||||||||||||||
Aircraft Notes Interest | 7,455 | 1,785 | 2,170 | 1,890 | 1,610 | 0 | — | 6,860 | 1,190 | 2,170 | 1,890 | 1,610 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Operating Lease Obligations | 17,049 | 4,558 | 5,832 | 3,356 | 2,645 | 147 | 511 | 15,523 | 3,032 | 5,832 | 3,356 | 2,645 | 147 | 511 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 84,004 | $ | 9,843 | $ | 15,002 | $ | 12,246 | $ | 46,255 | $ | 147 | $ | 511 | $ | 81,883 | $ | 7,722 | $ | 15,002 | $ | 12,246 | $ | 46,255 | $ | 147 | $ | 511 | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
Three Months Ended March 31, | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
Net income | $ | 9,263 | $ | 25,225 | $ | 15,081 | $ | 20,521 | $ | 24,344 | $ | 45,746 | ||||||||||||
Preferred stock dividends | 198 | 198 | 198 | 198 | 396 | 396 | ||||||||||||||||||
Net income applicable to common stockholders | 9,065 | 25,027 | $ | 14,883 | $ | 20,323 | $ | 23,948 | $ | 45,350 | ||||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||
Shares used in calculating basic earnings per share | 47,638 | 54,863 | 46,519 | 54,466 | 47,075 | 54,664 | ||||||||||||||||||
Stock option | 397 | 299 | — | 489 | 198 | 449 | ||||||||||||||||||
Series C Preferred | 16,500 | 16,500 | 16,500 | 16,500 | 16,500 | 16,500 | ||||||||||||||||||
Shares used in calculating diluted earnings per share | 64,535 | 71,662 | 63,019 | 71,455 | 63,773 | 71,613 | ||||||||||||||||||
Earnings allocated to common stockholders per common share | ||||||||||||||||||||||||
Basic | $ | 0.19 | $ | 0.46 | $ | 0.32 | $ | 0.37 | $ | 0.51 | $ | 0.83 | ||||||||||||
Diluted | $ | 0.14 | $ | 0.35 | $ | 0.24 | $ | 0.28 | $ | 0.38 | $ | 0.63 |
June 30, 2022 | December 31, 2021 | |||||||||||||||
March 31, 2022 | December 31, 2021 | Gross Carrying Amount | Gross Carrying Amount | |||||||||||||
Gross Carrying Amount | Gross Carrying Amount | |||||||||||||||
Trade names and air carrier certificate | 5,300 | 5,300 | 5,300 | 5,300 | ||||||||||||
Total | $ | 5,300 | $ | 5,300 | $ | 5,300 | $ | 5,300 | ||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||||||||||
Available Seat Miles (ASMs) (in thousands) | 321,822 | 205,738 | 116,084 | 56.4 | % | |||||||||||||||||||||||||||
Available Seat Miles (“ASMs”) (in thousands) | 337,314 | 273,948 | 63,336 | 23.1 | % | |||||||||||||||||||||||||||
Actual Block Hours | 28,534 | 19,600 | 8,934 | 45.6 | % | 28,260 | 24,393 | 3,867 | 15.9 | % | ||||||||||||||||||||||
Actual Departures | 18,508 | 13,861 | 4,647 | 33.5 | % | 18,586 | 17,736 | 850 | 4.8 | % | ||||||||||||||||||||||
Revenue Passenger Miles (RPMs) (in thousands) | 247,653 | 126,358 | 121,295 | 96.0 | % | |||||||||||||||||||||||||||
Revenue Passenger Miles (“RPMs”) (in thousands) | 290,666 | 224,175 | 66,491 | 29.7 | % | |||||||||||||||||||||||||||
Average Stage Length (in miles) | 357 | 308 | 49 | 15.9 | % | 369 | 316 | 53 | 16.8 | % | ||||||||||||||||||||||
Contract Revenue Per Available Seat Mile (CRASM) (in cents) | 20.81 | ¢ | 24.18 | ¢ | (3.37 | )¢ | (13.9 | )% | ||||||||||||||||||||||||
Contract Revenue Per Available Seat Mile (in cents) | 23.10 | ¢ | 19.29 | ¢ | 3.81 | ¢ | 19.8 | % | ||||||||||||||||||||||||
Passengers | 691,324 | 400,617 | 290,707 | 72.6 | % | 781,490 | 699,987 | 81,503 | 11.6 | % |
Three Months Ended June 30, | ||||||||||||||||
2022 | 2021 | Change | ||||||||||||||
Operating Revenues ($ in thousands): | ||||||||||||||||
Contract Revenues | $ | 77,923 | $ | 52,845 | $ | 25,078 | 47.5 | % | ||||||||
Contract Services and Other | 7 | 15 | (8 | ) | (53.3 | )% | ||||||||||
Total Operating Revenues | $ | 77,930 | $ | 52,860 | $ | 25,070 | 47.4 | % | ||||||||
Three Months Ended June 30, | ||||||||||||||||
2022 | 2021 | Change | ||||||||||||||
Operating Expenses ($ in thousands): | ||||||||||||||||
Payroll and Related Costs | $ | 27,694 | $ | 25,012 | $ | 2,682 | 10.7 | % | ||||||||
Aircraft Fuel and Oil | 34 | 44 | (10 | ) | (22.7 | )% | ||||||||||
Aircraft Maintenance, Materials and Repairs | 16,336 | 12,540 | 3,796 | 30.3 | % | |||||||||||
Aircraft Rent | — | 44 | (44 | ) | (100.0 | )% | ||||||||||
Other Rents | 1,657 | 1,263 | 394 | 31.2 | % | |||||||||||
Depreciation, Amortization and Obsolescence | 6,674 | 6,499 | 175 | 2.7 | % | |||||||||||
Payroll Support Program | — | (22,256 | ) | 22,256 | 100.0 | % | ||||||||||
Purchased Services and Other | 3,514 | 3,110 | 404 | 13.0 | % | |||||||||||
Total Operating Expenses | $ | 55,909 | $ | 26,256 | $ | 29,653 | 112.9 | % | ||||||||
Six Months Ended June 30, | ||||||||||||||||
2022 | 2021 | Change | ||||||||||||||
Operating Data: | ||||||||||||||||
Available Seat Miles (in thousands) | 659,136 | 479,686 | 179,450 | 37.4 | % | |||||||||||
Actual Block Hours | 56,794 | 43,993 | 12,801 | 29.1 | % | |||||||||||
Actual Departures | 37,094 | 31,597 | 5,497 | 17.4 | % | |||||||||||
Revenue Passenger Miles (in thousands) | 538,319 | 350,533 | 187,786 | 53.6 | % | |||||||||||
Average Stage Length (in miles) | 363 | 312 | 51 | 16.3 | % | |||||||||||
Contract Revenue Per Available Seat Mile (in cents) | 21.98 | ¢ | 21.39 | ¢ | 0.59 | ¢ | 2.8 | % | ||||||||
Passengers | 1,472,814 | 1,100,604 | 372,210 | 33.8 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Operating Revenues ($ in thousands): | ||||||||||||||||||||||||||||||||
Contract Revenues | $ | 66,968 | $ | 49,756 | $ | 17,212 | 34.6 | % | $ | 144,891 | $ | 102,601 | $ | 42,290 | 41.2 | % | ||||||||||||||||
Contract Services and Other | 7 | 18 | (11 | ) | (61.1 | )% | 14 | 33 | (19 | ) | (57.6 | )% | ||||||||||||||||||||
Total Operating Revenues | $ | 66,975 | $ | 49,774 | $ | 17,201 | 34.6 | % | $ | 144,905 | $ | 102,634 | $ | 42,271 | 41.2 | % | ||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Operating Expenses ($ in thousands): | ||||||||||||||||||||||||||||||||
Payroll and Related Costs | $ | 26,601 | $ | 22,751 | $ | 3,850 | 16.9 | % | $ | 54,295 | $ | 47,763 | $ | 6,532 | 13.7 | % | ||||||||||||||||
Aircraft Fuel and Oil | 51 | 13 | 38 | 292.3 | % | 85 | 57 | 28 | 49.1 | % | ||||||||||||||||||||||
Aircraft Maintenance, Materials and Repairs | 14,501 | 11,072 | 3,429 | 31.0 | % | |||||||||||||||||||||||||||
Aircraft Maintenance, Materials, and Repairs | 30,837 | 23,612 | 7,225 | 30.6 | % | |||||||||||||||||||||||||||
Aircraft Rent | — | 23 | (23 | ) | (100.0 | )% | — | 67 | (67 | ) | (100.0 | )% | ||||||||||||||||||||
Other Rents | 1,613 | 922 | 691 | 74.9 | % | 3,270 | 2,185 | 1,085 | 49.7 | % | ||||||||||||||||||||||
Depreciation, Amortization and Obsolescence | 6,644 | 6,500 | 144 | 2.2 | % | |||||||||||||||||||||||||||
Depreciation, Amortization, and Obsolescence | 13,318 | 12,999 | 319 | 2.5 | % | |||||||||||||||||||||||||||
Payroll Support Program | — | (27,914 | ) | 27,914 | 100.0 | % | — | (50,170 | ) | 50,170 | 100.0 | % | ||||||||||||||||||||
Purchased Services and Other | 3,765 | 3,150 | 615 | 19.5 | % | 7,279 | 6,260 | 1,019 | 16.3 | % | ||||||||||||||||||||||
Total Operating Expenses | $ | 53,175 | $ | 16,517 | $ | 36,658 | 221.9 | % | $ | 109,084 | $ | 42,773 | $ | 66,311 | 155.0 | % | ||||||||||||||||
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (1,788 | ) | $ | 14,746 | $ | (16,534 | ) | (112.1 | )% | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 3,560 | $ | 52,700 | $ | (49,140 | ) | (93.2 | )% | |||||||||||||||||||||||
Net cash used in investing activities | (1,438 | ) | (20,159 | ) | 18,721 | (92.9 | )% | (4,683 | ) | (118,728 | ) | (114,045 | ) | (96.1 | )% | |||||||||||||||||
Net cash used in financing activities | (9,244 | ) | (898 | ) | (8,346 | ) | 929.4 | % | (12,489 | ) | (30,157 | ) | (17,668 | ) | (58.6 | )% |
Total | April through December 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Total | July through December 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | |||||||||||||||||||||||||||||||||||||||||||
Aircraft Notes Principal | $ | 59,500 | $ | 3,500 | $ | 7,000 | $ | 7,000 | $ | 42,000 | $ | — | $ | — | $ | 59,500 | $ | 3 500 | $ | 7,000 | $ | 7,000 | $ | 42,000 | $ | — | $ | — | ||||||||||||||||||||||||||||
Aircraft Notes Interest | 7,455 | 1,785 | 2,170 | 1,890 | 1,610 | — | — | 6,860 | 1,190 | 2,170 | 1,890 | 1,610 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Operating Lease Obligations | 17,049 | 4,558 | 5,832 | 3,356 | 2,645 | 147 | 511 | 15,523 | 3,032 | 5,832 | 3,356 | 2,645 | 147 | 511 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 84,004 | $ | 9,843 | $ | 15,002 | $ | 12,246 | $ | 46,255 | $ | 147 | $ | 511 | $ | 81,883 | $ | 7,722 | $ | 15,002 | $ | 12,246 | $ | 46,255 | $ | 147 | $ | 511 | ||||||||||||||||||||||||||||
Total number of shares purchased (1) | Average price paid per share | Dollar value of shares repurchased | Approximate dollar value of shares remaining available under stock repurchase program | |||||||||||||
January 1 – January 31, 2022 | 5,736,920 | $ | 1.10 | $ | 6,314,627 | $ | 103,467 | |||||||||
February 1 – February 28, 2022 | 248,648 | $ | 2.22 | $ | 551,676 | $ | 551,791 | |||||||||
March 1 – March 31, 2022 | 276,925 | $ | 2.22 | $ | 614,928 | $ | 936,863 | |||||||||
Total | 6,262,493 | $ | 1.19 | $ | 7,481,231 | $ | 936,863 |
Total number of shares purchased (1) | Average price paid per share | Dollar value of shares repurchased | Approximate dollar value of shares remaining available under stock repurchase program | |||||||||||||
April 1 – April 30, 2022 | 398,323 | $ | 2.43 | $ | 966,979 | $ | 969,884 | |||||||||
May 1 – May 31, 2022 | 305,324 | $ | 2.39 | $ | 730,612 | $ | 1,239,272 | |||||||||
June 1 – June 30, 2022 | 333,719 | $ | 2.26 | $ | 755,629 | $ | 1,483,643 | |||||||||
Total | 1,037,366 | $ | 2.37 | $ | 2,453,220 | $ | 1,483,643 |
(1) | All of the reported shares were repurchased pursuant to the Company’s publicly announced stock repurchase program. In addition, with the exception of the 10b5-1 under the Exchange Act and in compliance with Rule10b-18 under the Exchange Act. |
Incorporated by Reference | ||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Provided Herewith | ||||||||||||||||||||||||
31.1* | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | ||||||||||||||||||||||||||||
31.2* | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | ||||||||||||||||||||||||||||
32.1** | Certifications of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | ||||||||||||||||||||||||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | X | ||||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | X | ||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | X | ||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | X | ||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | X | ||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | X | ||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith. |
** | The certifications attached as Exhibit 32.1 accompany this Quarterly Report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, shall not be deemed “filed” by the registrant for purposes of Section 18 of the Exchange Act, and shall not be incorporated by reference into any of the registrant’s filings under the Securities Act or the Exchange Act, whether made before or after the date of this Quarterly Report, irrespective of any general incorporation language contained in any such filing. |
HARBOR DIVERSIFIED, INC. | ||||||
Date: | By: | /s/ Christine R. Deister | ||||
Christine R. Deister | ||||||
Chief Executive Officer and Secretary | ||||||
Harbor Diversified, Inc. | ||||||
(Principal Executive Officer) | ||||||
Date: | By: | /s/ Liam Mackay | ||||
Liam Mackay | ||||||
Chief Financial Officer Air Wisconsin Airlines LLC | ||||||
(Principal Financial Officer) | ||||||
Date: | By: | /s/ Gregg Garvey | ||||
Gregg Garvey | ||||||
Senior Vice President, Chief Accounting Officer and Treasurer | ||||||
Air Wisconsin Airlines LLC | ||||||
(Principal Accounting Officer) |