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Old 07-11-2020, 03:44 AM   #1  
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Default Willy financials.

https://m.marketscreener.com/HARBOR-DIVERSIFIED-INC-10092973/news/HARBOR-DIVERSIFIED-MANAGEMENT-S-DISCUSSION-AND-ANALYSIS-OF-FINANCIAL-CONDITION-AND-RESULTS-OF-OPER-30908379/?fbclid=IwAR1Oq_DJuw7yFV68cHcv24dPrZ5esbqKJv4eN6HK IfQHO53FREjT9N1D7l8
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Old 07-11-2020, 01:05 PM   #2  
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There is a lot of data in there but the necessary information for good decision making either isnít there or -at least - I couldnít find it. Seems to me what is needed is an answer to these questions:

1. What is the downsizing United is anticipating and the fleet reductions they have announced going to do to their scope?
2. How much of that scope will be flown by the CRJ-200? The E-175?
3. What does that translate into in terms of pilots that Air Wisconsin may need to furlough? And how long will they be out, because until the majors start hiring again Air Whiskey seniority progression/furloughed rehiring will be pretty much dependent upon Air Whiskey retirements?
4. How many United pilots will eventually be furloughed, and how long will they be out? And when United has eventually called all those people back, what will be their hiring mix between Aviate people and the military flyers - those that pulled their separation/retirement paperwork when COVID popped up as well as the 90 or so a month In the pipeline that will continue to become separation/retirement eligible every month before United and the other majors again start hiring?

if you could find the answers to those questions it would REALLY be helpful for people making career decisions.
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Old 07-12-2020, 11:16 AM   #3  
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Thanks for the link. FYI...here is the official SEC link https://www.sec.gov/cgi-bin/browse-e...&hidefilings=0

I think posting the link was invaluable as I have seen little if any communication about these issues. I am curious how ZW incurred a net loss of -$19.2M (largely driven by a operating loss of -$20.6M) in 2019 before corona. ZW had an operating loss of -$24.5M also in 2018. The economy was doing great in those years. If they can't operate at an operating profit in good years, how are they going to function in 2020-2021? In addition, the payroll expenses for 2019 were over $126M. The PPP and PSP Agreement (Cares Act, SBA) is only contributing around $60M in 2020 so far. How is ZW going to cover the shortfall?

There are some other major areas of concern. I think this says it all:

"We cannot be certain that Air Wisconsinís operations will generate sufficient cash flow to make its required payments under its debt and other contractual arrangements. Air Wisconsin currently does not have sufficient liquidity to repay all of its outstanding debt in full if such debt were accelerated. If Air Wisconsin is unable to pay its debts as they come due, or is unable to obtain waivers for such payments, its secured lenders could foreclose on any of Air Wisconsinís assets securing such debt. Additionally, a failure to pay Air Wisconsinís aircraft, engine and other property leases, debt or other fixed cost obligations, or a breach of its other contractual obligations, could result in a variety of further adverse consequences, including the exercise of remedies by its creditors and lessors, such as acceleration. In such a situation, Air Wisconsin may not be able to cure its breach, fulfill its contractual obligations, make required lease payments or otherwise cover its fixed costs, which could have a material adverse effect on our business, results of operations and financial condition." --page 16

One positive in the 10-K--they said the IAD base is suppose to be operational again in August 2020. I also thought it was interesting they managed to get an effective tax rate of 1-3% depending on the year. I wish I had a 1-3% effective tax rate...
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Old 07-12-2020, 11:21 AM   #4  
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Originally Posted by Flugkapitan View Post
Thanks for the link. FYI...here is the official SEC link https://www.sec.gov/cgi-bin/browse-e...&hidefilings=0

I think posting the link was invaluable as I have seen little if any communication about these issues. I am curious how ZW incurred a net loss of -$19.2M (largely driven by a operating loss of -$20.6M) in 2019 before corona. ZW had an operating loss of -$24.5M also in 2018. The economy was doing great in those years. If they can't operate at an operating profit in good years, how are they going to function in 2020-2021? In addition, the payroll expenses for 2019 were over $126M. The PPP and PSP Agreement (Cares Act, SBA) is only contributing around $60M in 2020 so far. How is ZW going to cover the shortfall?

There are some other major areas of concern. I think this says it all:

"We cannot be certain that Air Wisconsinís operations will generate sufficient cash flow to make its required payments under its debt and other contractual arrangements. Air Wisconsin currently does not have sufficient liquidity to repay all of its outstanding debt in full if such debt were accelerated. If Air Wisconsin is unable to pay its debts as they come due, or is unable to obtain waivers for such payments, its secured lenders could foreclose on any of Air Wisconsinís assets securing such debt. Additionally, a failure to pay Air Wisconsinís aircraft, engine and other property leases, debt or other fixed cost obligations, or a breach of its other contractual obligations, could result in a variety of further adverse consequences, including the exercise of remedies by its creditors and lessors, such as acceleration. In such a situation, Air Wisconsin may not be able to cure its breach, fulfill its contractual obligations, make required lease payments or otherwise cover its fixed costs, which could have a material adverse effect on our business, results of operations and financial condition." --page 16

One positive in the 10-K--they said the IAD base is suppose to be operational again in August 2020. I also thought it was interesting they managed to get an effective tax rate of 1-3% depending on the year. I wish I had a 1-3% effective tax rate...
agreed. I was surprised at a lot of what I read in there. I always heard AWAC was flush with cash. I read it as flights were resuming at IAD in August, not a base re-opening. Correct me if Iím wrong.
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Old 07-12-2020, 11:47 AM   #5  
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agreed. I was surprised at a lot of what I read in there. I always heard AWAC was flush with cash. I read it as flights were resuming at IAD in August, not a base re-opening. Correct me if Iím wrong.
just remember this symbol is only for the healthcare side of the parent company. They include zero information on the owners compensation. There can be a lot of ways to fudge numbers to get a loss
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Old 07-12-2020, 11:53 AM   #6  
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just remember this symbol is only for the healthcare side of the parent company. They include zero information on the owners compensation. There can be a lot of ways to fudge numbers to get a loss
Exactly. Financial filings at a loss help taxes. Thank you for pointing this out.
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Old 07-12-2020, 01:39 PM   #7  
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just remember this symbol is only for the healthcare side of the parent company. They include zero information on the owners compensation. There can be a lot of ways to fudge numbers to get a loss
Yeah, I was about to say, there was no way we posted an actual loss last year. We flew more, and had less expenditures. Not saying it's completely impossible of course, but we're probably in just about the same state as any other airline out there at the moment.
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Old 07-13-2020, 06:12 AM   #8  
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Harbor Diversified is almost exclusively Air Wisconsin operations. The Therapeutics/"medical" side is "...a non-operating entity with no material assets." page 10

Percentage ownership is page 99, Executive compensation is page 97, BOD compensation is page 93.

The operating losses "Loss from Operations" for 2018, 2019 are on page 57. The Net Income/Loss also on this page.

The reason 2018 was also not a Net Loss is because they had a "Gain on extinguishment of debt" of $198M on page 57 and 59. It is a one-time gigantic boost. The company still has an operating loss year over year. The 2018 net income giant gain was essentially a one-time trick.

At the end of 2019, there was only $69M in cash. That plus the PPP/ PSP (Cares Act, SBA loan, etc.) is the only cash available to run ZW in 2020. The way I see it they have 4 options: the owners listed on page 99 inject $M in cash, and/or there is a stock offering (unlikely--HRBR trades at $0.01-0.15 per share and is not listed on a major exchange), and/or they take out $M in loans from large banks, and/or ZW gets more money from the government.

I will add that the CEO got a $300K bonus in 2019 (page 97) for those losses. Please help bring this to the attention of the ALPA reps. If enough of us are saying it, folks will hopefully do something about it.
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Old 07-13-2020, 07:51 AM   #9  
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Harbor Diversified is almost exclusively Air Wisconsin operations. The Therapeutics/"medical" side is "...a non-operating entity with no material assets." page 10

Percentage ownership is page 99, Executive compensation is page 97, BOD compensation is page 93.

The operating losses "Loss from Operations" for 2018, 2019 are on page 57. The Net Income/Loss also on this page.

The reason 2018 was also not a Net Loss is because they had a "Gain on extinguishment of debt" of $198M on page 57 and 59. It is a one-time gigantic boost. The company still has an operating loss year over year. The 2018 net income giant gain was essentially a one-time trick.

At the end of 2019, there was only $69M in cash. That plus the PPP/ PSP (Cares Act, SBA loan, etc.) is the only cash available to run ZW in 2020. The way I see it they have 4 options: the owners listed on page 99 inject $M in cash, and/or there is a stock offering (unlikely--HRBR trades at $0.01-0.15 per share and is not listed on a major exchange), and/or they take out $M in loans from large banks, and/or ZW gets more money from the government.

I will add that the CEO got a $300K bonus in 2019 (page 97) for those losses. Please help bring this to the attention of the ALPA reps. If enough of us are saying it, folks will hopefully do something about it.
how much capital did the owners pull out for ďbusiness expensesĒ think new multi million dollar house that doubles as office and as soon as it fully depreciated gets gifted to another owner or family member. Air Wisconsin isnít publicity traded. The owners can do as they please with the money. There is no way to even know the full backstory. Owners of HRBR have zero ownership in the actual airline.
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Old 07-13-2020, 07:52 AM   #10  
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folks will hopefully do something about it.
Like what?

filler
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