MAIR Holdings, Inc. Reports Fiscal 2007 First Quarter Results.MINNEAPOLIS Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. & ST. PAUL St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery , Minn. -- MAIR Holdings MAIR Holdings NASDAQ: MAIR is an airline holding company based in Minneapolis, Minnesota. Big Sky Airlines, has not been profitable since it was purchased by MAIR. History Started in 1993 as Mesaba Holdings, Inc., holding company for Mesaba Aviation, Inc. , Inc. (the "Company") (Nasdaq:MAIR MAIR Malfunction/Accident/Incident Report MAIR Motion Adaptive Intra Refresh (MPEG) ) today reported a net loss of $2.5 million, or $0.12 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the first quarter ended June June: see month. 30, 2006 compared to net income of $1.2 million, or $0.06 per share, during the same quarter a year ago. The Company's $2.5 million net loss in the first quarter of fiscal 2007 was primarily the result of additional expenses the Company recorded in connection with Mesaba Aviation, Inc.'s ("Mesaba") bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most and a $0.7 million net loss at Big Sky Transportation Co. ("Big Sky"). "The Company's financial results for the first quarter of fiscal 2007 reflect the ongoing expenses associated with Mesaba's bankruptcy," said Paul F. Foley fo·ley n. 1. A technical process by which sounds are created or altered for use in a film, video, or other electronically produced work. 2. A person who creates or alters sounds using this process. , MAIR's president and chief executive officer. "While Big Sky's financial results improved year-over-year, increased fuel expenses have affected its efforts to reach breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations results. Meanwhile, MAIR continues to explore opportunities to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. within and outside the airline industry." As previously disclosed, Mesaba voluntarily filed for Chapter 11 bankruptcy protection on October October: see month. 13, 2005, and MAIR deconsolidated Mesaba's financial results effective with the date of Mesaba's bankruptcy. As a result, Mesaba's financial results have been removed from the Company's condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. , statements of operations and statements of cash flows since October 13, 2005. Because Mesaba is projecting significant losses in fiscal 2007, MAIR did not record the equity income of Mesaba at June 30, 2006. Mesaba reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.6 million for the first quarter of fiscal 2007 compared to an operating loss of $0.1 million for the first quarter of fiscal 2006 due to the reduction of its fleet by 19 Avros and 13 Saabs year-over-year. Mesaba also reported net income of $0.1 million in the first quarter of both fiscal 2007 and 2006. Net income in fiscal 2007 was primarily the result of a $1.8 million credit to reorganization items due to the reversal of $5.2 million for maintenance associated with returned Avro AVRO AV Roe (Aircraft manufacturer, UK & Canada) AVRO Algemene Vereniging Radio Omroep aircraft. QUARTERLY CONFERENCE CALL MAIR Holdings will conduct a live webcast to discuss its first quarter results today, August 7th, at 8:30 A.M. (central time). The webcast will be available through the MAIR's web site at www.mairholdings.com under the "Investor" link. ABOUT THE COMPANY MAIR's primary business units are its regional airline subsidiary, Mesaba Aviation, Inc., d/b/a Mesaba Airlines Mesaba Airlines is an American regional airline based in Eagan, Minnesota. The airline operates under Mesaba Aviation, Inc. a wholly owned subsidiary of Northwest Airlines. All of its flights are operated under the name Northwest Airlink for Northwest Airlines. , and its regional airline subsidiary, Big Sky Transportation Co., d/b/a Big Sky Airlines. MAIR is traded under the symbol MAIR on the NASDAQ National Market. More information about MAIR is available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.mairholdings.com. Mesaba operates as a Northwest Jet Airlink This article is about the South African airline. For other uses, see Airlink (disambiguation). Airlink is an airline based in South Africa. It is privately owned and has developed into South Africa's first feeder network aimed at linking the smaller towns, regional centers and Airlink partner under an airline service agreement with Northwest Airlines. Mesaba serves 99 cities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of from Northwest's and Mesaba's three major hubs: Detroit Detroit, city, United States Detroit (dĭtroit`), city (1990 pop. 1,027,974), seat of Wayne co., SE Mich., on the Detroit River and between lakes St. Clair and Erie; inc. as a city 1815. , Minneapolis/St. Paul and Memphis. Mesaba operates an advanced fleet of regional jet and jet-prop aircraft, consisting of the 69 passenger Avro RJ85, the 30-34 passenger Saab SF340 and the 50 passenger Canadair Canadair was a civil and military aircraft manufacturer in Canada. It was the subsidiary of other aircraft manufacturers and a nationalized corporation until privatized in 1986 and became the core of Bombardier Aerospace. Regional Jet. Mesaba filed for Chapter 11 bankruptcy protection on October 13, 2005 and continues to operate as a debtor-in-possession. Mesaba maintains a web site at www.mesaba.com. Big Sky currently serves 22 communities in Montana Montana (mŏntăn`ə), Rocky Mt. state in the NW United States. It is bounded by North Dakota and South Dakota (E), Wyoming (S), Idaho (W), and the Canadian provinces of British Columbia, Alberta, and Saskatchewan (N). , Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). , Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. and Wyoming with a fleet of 19 passenger Beechcraft 1900D aircraft. Big Sky is based in Billings, Montana and has codeshare agreements Code sharing is a business term which was first originated in the airline industry in 1990 when the Australian airline, Qantas Airways and the US's American Airlines combined services between an array of US domestic cities and Australian cities. with Northwest Airlines, Alaska Airlines Alaska Airlines, (NYSE: ALK) is an airline based in Seattle, Washington, United States. It operates hubs at Seattle-Tacoma International Airport, Ted Stevens Anchorage International Airport, Los Angeles International Airport, and Portland International Airport. , Horizon Air and America West Airlines America West Airlines was one of the United States' ten major airlines. The airline was based in Tempe, Arizona, and is now a part of US Airways Group. At the time of its integration into US Airways, the airline maintained two hubs, one at Phoenix Sky Harbor International which allows customers the convenience of traveling with one ticket, through baggage checking and economical through fares, to destinations throughout the world. Big Sky is a provider of air service under the Essential Air Service program administered by the Department of Transportation. Big Sky maintains a web site at www.bigskyair.com. FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release contains forward-looking statements that are based on the best information currently available to management. These forward-looking statements are intended to be subject to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. protections of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. There can be no assurance that actual developments will be those anticipated by MAIR. Actual results could differ materially from those projected because of a number of factors, some of which MAIR cannot predict or control. For a discussion of some of these factors, please see the 'Cautionary Note Regarding Forward-Looking Statements' and 'Risk Factors' in the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended March 31, 2006. Note to Editors: Summary financial and operating information follows.
MAIR Holdings, Inc.
Condensed Consolidated Statements of Operations
(unaudited - in thousands, except per share information)
Quarter Ended
June 30
--------------------------------
As Restated
2006 (1) 2005 (2)
---------------- ---------------
Operating revenues:
Passenger $ 3,680 $ 103,783
Freight and other 2,363 10,900
---------------- ---------------
Total operating revenues 6,043 114,683
---------------- ---------------
Operating expenses:
Wages and benefits 2,472 39,388
Aircraft fuel 1,451 958
Aircraft maintenance 911 22,771
Aircraft rents 453 25,665
Landing fees 95 2,620
Insurance and taxes 675 1,893
Depreciation and amortization 178 3,802
Administrative and other 3,602 18,504
---------------- ---------------
Total operating expenses 9,837 115,601
---------------- ---------------
Operating loss (3,794) (918)
Nonoperating income (expense):
Other nonoperating income, net 1,300 2,796
---------------- ---------------
(Loss) income before income taxes (2,494) 1,878
Equity in income (loss) of Mesaba -- --
Provision for income taxes -- (676)
--------------------------------
Net (loss) income $ (2,494) $ 1,202
================================
(Loss) earnings per common share -
basic $ (0.12) $ 0.06
(Loss) earnings per common share -
diluted $ (0.12) $ 0.06
Weighted average shares outstanding -
basic 20,592 20,574
Weighted average shares outstanding -
diluted 20,592 21,194
MAIR Holdings, Inc
Condensed Consolidated Balance Sheets
(unaudited - in thousands)
June 30 March 31
2006 (1) 2006 (1)
-------------- -------------
Assets:
Cash and cash equivalents $ 25,294 $ 47,135
Short-term investments 50,161 44,117
Other current assets 6,841 7,184
Net property and equipment 1,436 1,423
Long-term investments 19,413 19,484
Other assets, net 15,610 2,599
-------------- -------------
Total assets $ 118,755 $ 121,942
============== =============
Liabilities and Shareholders' Equity:
Current liabilities $ 11,925 $ 12,571
Other liabilities and deferred
credits 714 772
Shareholders' equity 106,116 108,599
-------------- -------------
Total liabilities and shareholders'
equity $ 118,755 $ 121,942
============== =============
(1) Fiscal 2007 amounts and fiscal 2006 balance sheet reflect the
deconsolidation of Mesaba's financial results effective October
13, 2005.
(2) Fiscal 2006 amounts have been restated to reflect corrections
related to the presentation of certain reimbursable pass-through
costs at Mesaba, primarily fuel.
Mesaba Aviation, Inc.
Condensed Statements of Operations
(unaudited - in thousands)
Quarter Ended
June 30
-------------------------------------
As Restated Favorable
2006 2005 (1) (Unfavorable)
----------- ----------- -------------
Operating revenues:
Passenger $ 75,499 $ 101,280
Freight and other 7,941 8,863
----------- -----------
Total operating revenues 83,440 110,143 -24.2%
----------- -----------
Operating expenses:
Wages and benefits 33,489 37,291
Aircraft maintenance 15,377 22,053
Aircraft rents 17,405 25,236
Landing fees 2,163 2,547
Insurance and taxes 1,097 1,667
Depreciation and amortization 2,554 3,578
Administrative and other 12,990 17,901
----------- -----------
Total operating expenses 85,075 110,273 22.9%
----------- -----------
Operating loss (1,635) (130) NM
Nonoperating income (expense):
Interest income and other 400 204
Reorganization items, net 1,828 --
----------- -----------
Income before income taxes and
cumulative effect
of change in accounting
principle 593 74 NM
Provision for income taxes -- (16)
----------- -----------
Income before cumulative effect
of change in
accounting principle 593 58
Cumulative effect of change in
accounting principle (507) --
----------- -----------
Net income $ 86 $ 58 -48.3%
=========== ===========
(1) Fiscal 2006 amounts have been restated to reflect corrections
related to the presentation of certain reimbursable pass-through
costs at Mesaba, primarily fuel.
Mesaba Aviation, Inc.
Condensed Balance Sheets
(unaudited - in thousands)
June 30 March 31
2006 2006
-------------- --------------
Assets:
Cash and cash equivalents $ 19,420 $ 20,718
Short-term investments 4,126 3,262
Other current assets 51,020 54,304
Net property and equipment 29,947 32,532
Long-term investments 5,755 6,886
Other assets, net 809 739
-------------- --------------
Total assets $ 111,077 $ 118,441
============== ==============
Liabilities and Shareholder's Equity:
Current liabilities $ 47,034 $ 52,984
Other liabilities and deferred
credits 1,921 2,547
Liabilities subject to compromise 59,098 59,973
Shareholder's equity 3,024 2,937
-------------- --------------
Total liabilities and
shareholder's equity $ 111,077 $ 118,441
============== ==============
MAIR Holdings, Inc.
Selected Operating Statistics By Operating Entity
(unaudited)
Quarter Ended
June 30
------------------------------------------
Favorable
2006 2005 (Unfavorable)
------------------------------------------
Mesaba Aviation, Inc.
Passengers 1,137,409 1,501,045 -24.2%
ASMs (000s) 506,136 766,019 -33.9%
RPMs (000s) 365,927 514,810 -28.9%
Load Factor 72.3% 67.2% 5.1 pts
Departures 39,940 53,037 -24.7%
Revenue per ASM (cents) 16.5 14.4 14.6%
Cost per ASM (cents) 16.8 14.4 -16.3%
Big Sky Transportation Co.
Passengers 29,569 26,227 12.7%
ASMs (000s) 22,185 17,139 29.4%
RPMs (000s) 8,382 7,500 11.8%
Load Factor 37.8% 43.8% -6.0 pts
Departures 5,965 5,033 18.5%
Revenue per ASM (cents) 27.2 26.5 2.6%
Cost per ASM (cents) 30.0 31.3 4.2%
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion