The Mesa Air Group, reported its fourth quarter and Fiscal Year 2018 financial and operating results earlier this week which showed the firm had a net income of $19.4 million, compared to net income of $5.5 million for Q4 2017.
Mesa’s fourth-quarter income before taxes was $26.6 million, compared to $10.2 million for fourth-quarter 2017. In addition, Mesa’s EBITDA1 for fourth-quarter 2018 was $59.3 million, compared to $38.5 million in fourth-quarter 2017 and EBITDAR1 was $73.6 million, compared to $56.7 million in the same period last year.
Mesa reported net income of $33.3 million, or $1.32 per diluted share for the 2018 fiscal year, compared to net income of $32.8 million, or $1.40 per diluted share for the 2017 fiscal year. Excluding special items for both periods adjusted net income1 was $31.0 million for the 2018 fiscal year compared to $32.8 million for the 2017 fiscal year. Mesa reported income before taxes of $15.8 million for the 2018 fiscal year compared to $53.7 million in the 2017 fiscal year. Excluding special items for both periods adjusted income before taxes1 was $42.0 million compared to $53.7 million in the 2017 fiscal year. In addition, Adjusted EBITDA1 was $163.8 million, compared to $160.8 million in the 2017 fiscal year. Similarly, Adjusted EBITDAR1 was $232.7 million, compared to $233.4 million in the 2017 fiscal year.
Mesa operated 112,475 block hours during the fourth quarter, an increase of 9.3% from Q3 2018 of 102,939 and an increase of 14.9% from Q2 2018 of 97,853.
“In spite of industry challenges, there were a number of positive developments in the quarter, most notably the progress we have made increasing the utilisation of our aircraft through a combination of strong hiring and declining attrition among our pilots, reduced training backlog, and improved utilisation of existing resources,” stated Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa Air Group. “We appreciate the hard work and dedication of all of our employees for their very important and meaningful contribution to our improving operational capabilities.”
Mike Lotz, President and Chief Financial Officer continued, “On August 14, 2018, we successfully completed our IPO. Including the partial exercise of the underwriters’ option to purchase additional shares, we raised approximately $112 million and subsequently paid down $25.6 million outstanding on our revolving credit facility, reducing annual interest expense by $1.2 million per year. We are currently negotiating the purchase of ten additional aircraft currently on lease to us and hope to complete the transaction by the end of March 2019. In addition, we are finalising negotiations to refinance our high-cost debt primarily associated with spare engine purchases by the end of this year. This is expected to result in a further reduction of interest expense going forward,” said Lotz.
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