Chapter 7 For Mesa
07-01-2008 | 01:11 PM
#11
Thread Starter
Banned
Joined: May 2007
Posts: 152
Likes: 0
Let me be clear. Mesa did not report an operating profit. They reported an operating loss for the 1st quarter 2008 as they have for several quarters in a row now. Here is a copy of what I posted on another thread.
You are right. Creative accounting. They are accounting for a one time gain of 27.5 million dollars related to the Hawaiian lawsuit that Mesa lost. They posted a bond for $80 million, and only had to pay $52.5 million, so they are counting the 27.5 million dollars as a profit.
Gotta love Mesa. It's funny because they never included the $80 million dollars in any of their quarterly losses, but they can suddenly report this 27.5 million dollars as income.
The bottom line is Mesa has had an operating loss for many quarters in a row now, and the most important fact is their unrestricted cash position, which is down to only $55 million dollars. In the airline industry, cash is time. Therefore, Mesa does not have very much time. BTW, that $55 million was over 90 days ago (back when oil was still $100/barrel). My guess is their cash position is much lower than that. Now let's wait and see what happens with their Delta contract. The end is near.
You are right. Creative accounting. They are accounting for a one time gain of 27.5 million dollars related to the Hawaiian lawsuit that Mesa lost. They posted a bond for $80 million, and only had to pay $52.5 million, so they are counting the 27.5 million dollars as a profit.
Gotta love Mesa. It's funny because they never included the $80 million dollars in any of their quarterly losses, but they can suddenly report this 27.5 million dollars as income.The bottom line is Mesa has had an operating loss for many quarters in a row now, and the most important fact is their unrestricted cash position, which is down to only $55 million dollars. In the airline industry, cash is time. Therefore, Mesa does not have very much time. BTW, that $55 million was over 90 days ago (back when oil was still $100/barrel). My guess is their cash position is much lower than that. Now let's wait and see what happens with their Delta contract. The end is near.
Right on Bro!! although their accountants call it pro forma accounting!!!
PRO FORMA is a Latin Phrase that in the modern day business k-10 climate, suggests a free hand usage of a convoluted, intricate, and at times, unorthodox implementation of creative accounting. Such slight of hand methods were used to derive the makeovered earnings. EBITA, or Earnings before interest, tax and amortisation (EBITA) is what mesa used when they reported their earnings. It is similar to EBIT but strips out amortisation. Amortisation is always a non-cash item and therefore of limited interest to investors.
Amortisation is of less interest than depreciation (itself excluded from many measures) because it relates to intangible assets, and it cannot be used as even a rough proxy for replacement cost.
Mesa will continue to report utilizing pro forma, ebita, and yes, even pornography to explain its accounting practices, and I would be extremely wary and cautious about believing anything else other than this company will be out of business in a short while.
07-01-2008 | 01:33 PM
#12
Line Holder
Joined: Jan 2006
Posts: 1,740
Likes: 15
Incase you are wondering...
Mesa Air Group - Press Releases
Search for the word cash. You will see Mesa has about $55 million in unrestricted cash. This was as of March 30, 2008.
Mesa Air Group - Press Releases
Search for the word cash. You will see Mesa has about $55 million in unrestricted cash. This was as of March 30, 2008.
07-01-2008 | 03:02 PM
#13
Line Holder
Joined: Jan 2008
Posts: 51
Likes: 0
Numbers can be misleading and changed to look the way you want it to. Remember Enron? Mesa will probably end up the same way.
07-01-2008 | 03:24 PM
#14
Banned
Joined: Dec 2007
Posts: 2,934
Likes: 0
From: EMB 145 CPT
07-01-2008 | 03:32 PM
#15
Gets Weekends Off
Joined: Jun 2008
Posts: 146
Likes: 0
From: Checking essential
Go! posts $8.3 million loss | starbulletin.com | Business | /2008/07/01/
07-01-2008 | 03:45 PM
#16
Banned
Joined: Dec 2007
Posts: 2,934
Likes: 0
From: EMB 145 CPT
Yes, I knew that go!'s pax numbers were up. That's a given. However, go! is still not making any money.
Go! posts $8.3 million loss | starbulletin.com | Business | /2008/07/01/
Go! posts $8.3 million loss | starbulletin.com | Business | /2008/07/01/
Sorry, I wasn't trying to refute what you were saying. You post just reminded me of that USA Today article.
07-01-2008 | 04:23 PM
#17
Gets Weekends Off
Joined: Feb 2007
Posts: 842
Likes: 0
From: E-170
not that i want to see any other pilot lose his or her job but, if it means i keep my job oh well. please dont post stuff like this i thought my job security just went through the roof!!
07-01-2008 | 04:50 PM
#18
Gets Weekends Off
Joined: Jun 2008
Posts: 146
Likes: 0
From: Checking essential
07-01-2008 | 05:24 PM
#19
Thread Starter
Banned
Joined: May 2007
Posts: 152
Likes: 0
America Baby!!!
we are all pilots and we have to stick together.
If an airline managerial staff causes undue pain and suffering, not only is it your right, it is your obligation to follow through with harsh criticism regarding your treatment.
We are the pilots, we have to stick together.
If an airline managerial staff causes undue pain and suffering, not only is it your right, it is your obligation to follow through with harsh criticism regarding your treatment.
We are the pilots, we have to stick together.
07-01-2008 | 08:29 PM
#20
*********
Joined: Dec 2007
Posts: 1,068
Likes: 0
we are all pilots and we have to stick together.
If an airline managerial staff causes undue pain and suffering, not only is it your right, it is your obligation to follow through with harsh criticism regarding your treatment.
We are the pilots, we have to stick together.
If an airline managerial staff causes undue pain and suffering, not only is it your right, it is your obligation to follow through with harsh criticism regarding your treatment.
We are the pilots, we have to stick together.
Instead, join our cause: Rooting for a buyout (or anything else that gets every piece of MAG brass out of here) and a improved contract.
We don't enjoy being the worst airline in the regional industry, but after spending 2 years here, the left seat I am sitting in is my ticket out of regionals and to a better life. There are hundreds more just like me.
Please help (if it is only moral support) us keep our paychecks coming, and futures alive. Putting 500 CA's on the street with less than 1000 TPIC, and countless FO's out of a job will do nothing but make our (the airline industry) situation worse.
Do you really want to see more pilots on the street?
Do you really want to see JO out at the expense of 1600 pilots?
Thread
Thread Starter
Forum
Replies
Last Post
