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Earnings Per Share and Equity
9 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share and Equity

9.

Earnings Per Share and Equity

Calculations of net income per common share attributable to Mesa Air Group were as follows (in thousands, except per share data):

 

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income attributable to Mesa Air Group

 

$

3,007

 

 

$

(11,135

)

 

$

35,337

 

 

$

13,861

 

Basic weighted average common shares outstanding

 

 

34,835

 

 

 

23,336

 

 

 

34,683

 

 

 

23,298

 

Add: Incremental shares for: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of warrants

 

 

 

 

 

 

 

 

 

 

 

140

 

Dilutive effect of restricted stock

 

 

277

 

 

 

 

 

 

368

 

 

 

334

 

Diluted weighted average common shares outstanding

 

 

35,112

 

 

 

23,336

 

 

 

35,051

 

 

 

23,772

 

Net income per common share attributable to

   Mesa Air Group:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.09

 

 

$

(0.48

)

 

$

1.02

 

 

$

0.59

 

Diluted

 

$

0.09

 

 

$

(0.48

)

 

$

1.01

 

 

$

0.58

 

 

(1)

Due to a loss for the three months ended June 30, 2018, zero incremental shares are included because the effect would be antidilutive.

 

Basic income per common share is computed by dividing net income attributable to Mesa Air Group by the weighted average number of common shares outstanding during the period.

The number of incremental shares from the assumed issuance of shares relating to restricted stock and exercise of warrants (excluding warrants with a nominal conversion price) is calculated by applying the treasury stock method. Share-based awards and warrants whose impact is considered to be anti-dilutive under the treasury stock method were excluded from the diluted net income or loss per share calculation. In loss periods, these incremental shares are excluded from the calculation of diluted loss per share, as the inclusion of unvested restricted stock and warrants would have an anti-dilutive effect. Anti-dilutive shares relating to restricted stock and exercise of warrants of 418,954 and 160,139, respectively, were excluded from the calculation of diluted loss per share for the three months ended June 30, 2018.

Restatement

Basic and Diluted Net Income per Common Share Available to Common Shareholders for the Three Months and Nine Months Ended June 30, 2018

Subsequent to the issuance of the Company’s condensed consolidated financial statements for the three months ended December 31, 2018, we determined our previously issued condensed consolidated financial statements included warrants with a nominal conversion price in diluted income per common share available to common shareholders, however, they should have been included in basic income per common share available to common shareholders.  Since diluted shares are under the treasury stock method, diluted income per common share available to common shareholders was impacted by this change.  As a result, basic and diluted income per common share available to common shareholders for the periods ended June 30, 2018 have been restated to appropriately include the warrants with a nominal conversion price in basic income per common share available to common shareholders.  

The restatement adjustment did not impact our previously reported consolidated balance sheet, consolidated statements of stockholders’ equity, consolidated statements of cash flows, or net income (in thousands, except per share data).

 

 

 

Three Months Ended June 30, 2018

 

 

Nine Months Ended June 30, 2018

 

 

 

As Previously

Reported

 

 

As Restated

 

 

As Previously

Reported

 

 

As Restated

 

Net income per common share available to

   common shareholders - Basic

 

$

(0.89

)

 

$

(0.48

)

 

$

1.18

 

 

$

0.59

 

Shares used in computing net income per common

   share available to common shareholders - Basic

 

 

12,462

 

 

 

23,336

 

 

 

11,782

 

 

 

23,298

 

Net income per common share available to

   common shareholders - Diluted

 

$

(0.89

)

 

$

(0.48

)

 

$

0.58

 

 

$

0.58

 

Shares used in computing net income per common

   share available to common shareholders - Diluted

 

 

12,462

 

 

 

23,336

 

 

 

24,052

 

 

 

23,772