SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q/A
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________ to _______________
Commission file number 1-13934
MIDWEST EXPRESS HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Wisconsin 39-1828757
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6744 South Howell Avenue
Oak Creek, Wisconsin 53154
(Address of Principal executive offices)
(Zip code)
414-570-4000
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
As of July 31, 1998, there were 14,141,214 shares of Common Stock, $.01
par value, of the Registrant outstanding.
<PAGE>
Item 1 of Part I and Item 6 of Part II for the Form 10-Q are amended and
restated in their entirety as follows:
Part I Item I - Financial Statements
<TABLE>
MIDWEST EXPRESS HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
(Unaudited)
<CAPTION>
Three Months Ended June 30, Six Months Ended June 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Operating revenues:
Passenger service . . . . . . . . . . . . . . . $ 91,597 $ 76,419 $170,798 $147,847
Cargo . . . . . . . . . . . . . . . . . . . . . 2,939 2,699 5,869 5,292
Other . . . . . . . . . . . . . . . . . . . . . 5,561 4,226 11,841 10,125
-------- -------- -------- --------
Total operating revenues . . . . . . . . . 100,097 83,344 188,508 163,264
-------- -------- -------- --------
Operating expenses:
Salaries, wages and benefits . . . . . . . . . . 29,178 21,154 55,481 42,562
Aircraft fuel and oil . . . . . . . . . . . . . 10,410 11,960 21,612 25,362
Commissions . . . . . . . . . . . . . . . . . . 8,128 8,064 14,753 15,183
Dining services . . . . . . . . . . . . . . . . 4,920 4,362 9,318 8,188
Station rental, landing and other fees . . . . . 6,240 5,768 13,446 12,384
Aircraft maintenance materials and repairs . . . 8,985 8,353 16,452 14,263
Depreciation and amortization . . . . . . . . . 2,414 2,147 4,749 4,248
Aircraft rentals . . . . . . . . . . . . . . . . 4,713 4,312 9,424 8,574
Other . . . . . . . . . . . . . . . . . . . . . 8,278 8,717 17,039 17,520
-------- -------- -------- --------
Total operating expenses . . . . . . . . . 83,266 74,837 162,274 148,284
-------- -------- -------- --------
Operating income 16,831 8,507 26,234 14,980
-------- -------- -------- --------
Other income (expense):
Interest income . . . . . . . . . . . . . . . . 476 339 890 639
Other . . . . . . . . . . . . . . . . . . . . . (90) (16) (179) (20)
-------- -------- -------- --------
Total other income (expense). . . . . . . . 386 323 711 619
-------- -------- -------- --------
Income before income taxes. . . . . . . . . . . . . . 17,217 8,830 26,945 15,599
Provision for income taxes. . . . . . . . . . . . . . 6,456 3,232 10,104 5,770
-------- -------- -------- --------
Net income . . . . . . . . . . . . . . . . . . . . . $ 10,761 $ 5,598 $ 16,841 $ 9,829
======== ======== ======== ========
Net income per common share - basic $ 0.76 $ 0.39 $ 1.19 $ 0.69
======== ======== ======== ========
Net income per common share - diluted $ 0.75 $ 0.39 $ 1.17 $ 0.68
======== ======== ======== ========
See notes to consolidated financial statements.
</TABLE>
<PAGE>
Part I Item I - Financial Statements
MIDWEST EXPRESS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
June 30, December 31,
1998 1997
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents . . . . . . . . $ 18,479 $ 32,066
Accounts receivable:
Traffic, less allowance for doubtful
accounts of $271 and $231 at June 30,
1998 and December 31, 1997,
respectively . . . . . . . . . . . . . 5,827 5,106
Other receivables . . . . . . . . . . . 358 444
-------- --------
Total accounts receivable . . . . . . 6,185 5,550
Inventories . . . . . . . . . . . . . . . 3,880 3,942
Prepaid expenses 4,630 3,414
Deferred income taxes . . . . . . . . . . 5,009 4,655
Aircraft and modifications intended to
be financed by sale and leaseback
transactions . . . . . . . . . . . . . . 5,443 6,000
-------- --------
Total current assets . . . . . . . . 43,626 55,627
-------- --------
Property and equipment, at cost . . . . . . 215,194 160,048
Less accumulated depreciation . . . . . . 75,834 70,892
-------- --------
Net property and equipment . . . . . . . . 139,360 89,156
Landing slots and leasehold rights, net . . 4,736 4,900
Purchase deposits on flight equipment 2,333 14,500
Other assets . . . . . . . . . . . . . . . 1,916 2,565
-------- --------
Total assets . . . . . . . . . . . . . . . $191,971 $166,748
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable . . . . . . . . . . . . $ 4,357 $ 5,560
Air traffic liability . . . . . . . . . . 38,200 28,934
Accrued liabilities 33,406 33,989
-------- --------
Total current liabilities . . . . . . 75,963 68,483
-------- --------
Long-term debt 3,276 3,333
Deferred income taxes . . . . . . . . . . . 9,722 12,509
Noncurrent scheduled maintenance expense. . 10,028 7,594
Accrued pension and other postretirement
benefits . . . . . . . . . . . . . . . . . 6,919 5,462
Other noncurrent liabilities . . . . . . . 5,604 5,969
-------- --------
Total liabilities . . . . . . . . . . . . . 111,512 103,350
-------- --------
Shareholders' equity:
Preferred stock, without par value,
5,000,000 shares authorized, no shares
issued or outstanding . . . . . . . . . - -
Common stock, $.01 par value, 25,000,000
shares authorized, 14,464,056 shares
issued in 1998 and 9,642,807 in 1997 145 96
Additional paid-in capital . . . . . . . 9,608 9,531
Treasury stock, at cost . . . . . . . . . (4,474) (4,572)
Retained earnings . . . . . . . . . . . . 75,180 58,343
-------- --------
Total shareholders' equity . . . . . . . . 80,459 63,398
-------- --------
Total liabilities and shareholders' equity. $191,971 $166,748
======== ========
See notes to consolidated financial statements.
<PAGE>
Part I Item I- Financial Statements
MIDWEST EXPRESS HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Six Months Ended June 30,
1998 1997
Operating activities:
Net income ...................................... $16,841 $ 9,829
Items not involving the use of cash:
Depreciation and amortization ................... 4,749 4,249
Deferred income taxes ........................... (3,141) (804)
Other .......................................... 2,505 2,085
Changes in operating assets and liabilities:
Accounts receivable ............................. (635) (863)
Inventories ..................................... 62 (448)
Prepaid expenses ................................ (1,216) (662)
Accounts payable ................................ (1,203) 620
Income taxes payable ............................ 2,811 894
Accrued liabilities ............................ 103 (5,115)
Air traffic liability .......................... 5,769 7,369
------- -------
Net cash provided by operating activities......... 26,645 17,154
------- -------
Investing activities:
Capital expenditures ............................ (40,793) (14,791)
Aircraft acquisitions and modifications
financed by or intended to be financed
by sale and leaseback transactions............... - (8,299)
Proceeds from sale of property and equipment...... 3 11
Other ............................................ (3,131) (405)
------- -------
Net cash used in investing activities .............. (43,921) (23,484)
------- -------
Financing activities:
Proceeds from sale and leaseback transactions .... - 1,266
Other ............................................ 3,689 98
------- -------
Net cash provided by financing activities......... 3,689 1,364
------- -------
Net decrease in cash and cash equivalents........... (13,587) (4,966)
Cash and cash equivalents, beginning of period ..... 32,066 27,589
------- -------
Cash and cash equivalents, end of period ........... $18,479 $22,623
======= =======
See notes to consolidated financial statements.
<PAGE>
Midwest Express Holdings, Inc.
Unaudited Notes to Consolidated Financial Statements
1. Business and Basis of Presentation
Basis of Presentation
The consolidated financial statements for the six-month period ended
June 30, 1998 are unaudited and reflect all adjustments (consisting
only of normal recurring adjustments) that are, in the opinion of
management, necessary for a fair presentation of the financial
position and operating results for the interim period. The
consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto, together
with management's discussion and analysis of financial condition and
results of operations, contained in the Company's Annual Report to
Shareholders and incorporated by reference in the Company's Annual
Report on Form 10-K for the year ended December 31, 1997. The results
of operations for the six-month period ended June 30, 1998 are not
necessarily indicative of the results for the entire fiscal year
ending December 31, 1998.
Stock Split
On April 22, 1998, the Company announced that its board of directors
had approved a plan to split its stock 3-for-2 in the form of a 50%
stock dividend. The new shares were issued May 27 to shareholders of
record as of May 11. The financial and share information presented
herein for all periods has been adjusted to reflect the effect of the
stock dividend.
2. New Accounting Standards
The Company is required to adopt SFAS No. 131, "Disclosures about
Segments of an Enterprise and Related Information," in the fourth
quarter of 1998. SFAS No. 131 will supersede the business segment
disclosure requirements currently in effect under SFAS No. 14. SFAS
No. 131, among other things, establishes standards regarding the
information a company is required to disclose about its operating
segments and provides guidance regarding what constitutes a
reportable operating segment. The Company is currently evaluating
what disclosures will be required under SFAS No. 131.
The Company is required to adopt the disclosure requirements of SFAS
No. 132, "Employer's Disclosures about Pensions and Other
Postretirement Benefits," in the fourth quarter of 1998. SFAS No. 132
revises disclosure requirements for such pension and postretirement
benefit plans to, among other things, standardize certain disclosures
and eliminate certain other disclosures no longer deemed useful. SFAS
No. 132 does not change the measurement or recognition criteria for
such plans.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
(27) Financial Data Schedule.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter
ended June 30, 1998.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this amendment to this report to be signed
on its behalf by the undersigned thereunto duly authorized.
Midwest Express Holdings, Inc.
Date: September 4, 1998 By /s/ Robert S. Bahlman
Robert S. Bahlman
Senior Vice President, Chief
Financial Officer and Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF MIDWEST EXPRESS HOLDINGS, INC.
AS OF AND FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 18,479
<SECURITIES> 0
<RECEIVABLES> 6,456
<ALLOWANCES> 271
<INVENTORY> 3,880
<CURRENT-ASSETS> 43,626
<PP&E> 215,194
<DEPRECIATION> 75,834
<TOTAL-ASSETS> 191,971
<CURRENT-LIABILITIES> 75,963
<BONDS> 3,276
0
0
<COMMON> 145
<OTHER-SE> 80,314
<TOTAL-LIABILITY-AND-EQUITY> 191,971
<SALES> 0
<TOTAL-REVENUES> 188,508
<CGS> 0
<TOTAL-COSTS> 162,274
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 45
<INTEREST-EXPENSE> 165
<INCOME-PRETAX> 26,945
<INCOME-TAX> 10,104
<INCOME-CONTINUING> 16,841
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 16,841
<EPS-PRIMARY> 1.19
<EPS-DILUTED> 1.17
</TABLE>
