Tag: retain

Mesa Air Group Reports Fourth Quarter, Full-Year 2020 Profit

December 9, 2020 / WIL BALDWIN

Mesa Air Group, Inc. (NASDAQ: MESA) today reported fourth quarter and full-year fiscal 2020 financial and operating results.

Mesa’s Q4 2020 results reflect net income of $11.4 million, or $0.32 per diluted share, compared to net income of $12.2 million, or $0.35 per diluted share for Q4 2019. Mesa Q4 2020 results include, per GAAP, the deferral of $7.8 million of revenue, all of which was billed and paid by American and United during the quarter and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA¹ for Q4 2020 was $44.6 million, compared to $50.8 million in Q4 2019, and Adjusted EBITDAR¹ was $54.2 million for Q4 2020, compared to $61.9 million in Q4 2019. For Q4 2020 revenue was $108.0 million, a reduction of $79.8 million (42%) from $187.8 for Q4 2019 primarily due to the reduced flying as a result of COVID-19. During the quarter Mesa recognized $40.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees.

Operationally, the Company ran a 99.8% controllable completion factor, compared to 99.0% in Q4 2019, and a total completion factor of 98.2%, which primarily includes weather, close-in capacity reductions driven by reduced demand, and other uncontrollable cancellations, compared to 96.9% in Q4 2019.

Full Year

Mesa reported net income of $27.5 million, or $0.78 per diluted share for the 2020 fiscal year, compared to net income of $47.6 million, or $1.36 per diluted share for the 2019 fiscal year. Excluding special items for both periods, adjusted net income¹ was $27.5 million or $0.78 per diluted share for the 2020 fiscal year, compared to $57.5 million or $1.64 per diluted share for the 2019 fiscal year. Mesa fiscal 2020 results include, per GAAP, the deferral of $23.8 million of revenue, all of which was billed and paid by American and United during the year and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA¹ was $163.3 million in fiscal year 2020, compared to $208.7 million in fiscal year 2019 and Adjusted EBITDAR was $212.1 million in fiscal year 2020, compared to $260.9 million in fiscal year 2019. For fiscal year 2020, revenue was $545.1 million, a reduction of $178.3 million (25%) from $723.4 million for fiscal year 2019, primarily due to the reduced flying as a result of COVID-19. During the year, Mesa recognized $83.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees as of April 20, 2020.

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¹ See Reconciliation of non-GAAP financial measures

Fiscal 2020 Q4 Highlights

– EPS of $0.32, Full Year $0.78

– Year-end cash increased by $34.5 million to $99.4 million

Recent Updates

– Amended capacity purchase agreement with American to operate 40 CRJ-900s for a five-year term

– Commenced cargo operations for DHL with two Boeing 737-400F

– Added 10 new E175 aircraft to our United fleet in November and December

– Entered into a $195 million loan under the CARES Act with the U.S. Treasury

Canadian Pacific to Acquire Central Maine & Quebec Railway from Fortress Transportation and Infrastructure Investors LLC

November 20, 2019 / WIL BALDWIN

CALGARY and NEW YORK, Nov. 20, 2019 /PRNewswire/ – Canadian Pacific (CP) and Fortress Transportation and Infrastructure Investors LLC (FTAI) announced they have entered into a definitive agreement whereby CP will acquire the Central Maine & Quebec Railway (“CMQ”).

CMQ owns 481 miles (774 kilometres) of rail lines primarily in Quebec and Maine. The end-to-end transaction will provide CP customers with seamless, safe and efficient access to ports at Searsport, Maine and to Saint John, New Brunswick, via Eastern Maine Railway Company (EMRY) and New Brunswick Southern Railway (NBSR), thereby preserving and enhancing competition.

“This strategic acquisition gives CP a true coast-to-coast network across Canada and an increased presence in the eastern U.S.,” said CP President and CEO Keith Creel. “With additional port access, more dots on the map, and our proven precision scheduled railroading operating model we are confident this transaction will bring benefits to all stakeholders moving forward.”

As part of the transaction, FTAI will retain ownership of Katahdin Railcar Services (KRS), a tank car cleaning and repair facility, and the contract to operate at a 12-mile branch line at FTAI’s Long Ridge Energy Terminal in Monroe County, Ohio. FTAI intends to continue to develop and grow both the KRS and Long Ridge branch line businesses.

“We are excited about this transaction as it brings value to our shareholders, while ensuring that the CMQ continues to provide safe and reliable rail transportation options,” said Joe Adams, FTAI CEO.

CP invests in its people and its assets to ensure it can provide service safely and efficiently. CP has been the safest railway in North America for 13 consecutive years, as measured by train accident frequency and meets all regulatory requirements.

The transaction is currently expected to close at the end of 2019 and remains subject to customary closing conditions. Over the coming weeks, CP, FTAI and other stakeholders will move towards closing.

Ford’s UAW Members Vote to Ratify New Four-Year Contract

November 15, 2019 / WIL BALDWIN

FILE PHOTO: Frankfurt hosts the international Motor Show (IAA)

DETROIT (Reuters) – The United Auto Workers union said on Friday that rank-and-file members at Ford Motor Co <F> have voted in favor of a new four-year labor contract with the No. 2 U.S. automaker.

The UAW will now focus on Fiat Chrysler Automobiles (FCA) <FCAU>, the sole remaining Detroit automaker without a new labor contract. Talks with FCA are expected to begin on Monday, a UAW spokesman said.

The union said 56.3% of Ford’s hourly workers voted to approve the deal, which allowed the company to avoid a strike like the one that cost its larger rival General Motors Co <GM> about $3 billion (£2.3 billion).

UAW leaders said earlier this month that Ford under the deal agreed to invest more than $6 billion in its U.S. plants, and to create or retain more than 8,500 UAW jobs.

The deal also includes pay raises and lump-sum payments over the life of the contract, a pathway to full-time employment for temporary employees and unchanged healthcare coverage.

Workers at GM approved a deal in late October that ended a contentious 40-day U.S. strike, the longest automotive labor stoppage since 1970.

Detailed terms of the Ford deal – released just a week after GM workers approved their new contract – echoed those agreed to with GM, as the union typically uses the first deal as a template for those that follow.

UAW leaders managed contract negotiations with Ford and GM, including the lengthy strike, while struggling with an ongoing federal corruption probe.

To date, 10 people have pleaded guilty in connection with the criminal investigation into illegal payoffs. Just last week former UAW vice president and former GM board member Joseph Ashton was charged with conspiracy to commit money laundering and wire fraud.

Earlier this month the UAW said that its president, Gary Jones, who had been linked to the ongoing corruption probe, was taking a leave of absence.

Rory Gamble, the union’s acting head, said last week he will examine every department of the union in response to the spreading federal corruption probe to prevent future misuse of members’ dues.

(Reporting by Nick Carey and Ben Klayman in DetroitEditing by Matthew Lewis and Cynthia Osterman)

Mesa Air Group Reports Fourth Quarter, Full-Year 2020 Profit

Canadian Pacific to Acquire Central Maine & Quebec Railway from Fortress Transportation and Infrastructure Investors LLC

Ford’s UAW Members Vote to Ratify New Four-Year Contract

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