10-Q - HARBOR DIVERSIFIED, INC. (0000899394) (Filer)

Fri, Apr 11, 9:42 PM (15 days ago)

### Summary of Harbor Diversified, Inc. (HRBR) Q2 2024 Financial Performance **Revenue and Profit Margins:** - **Revenue:** $47.1 million (Q2 2024) vs. $48.8 million (Q2 2023) - **Net Loss:** $7.9 million (Q2 2024) vs. $12.0 million (Q2 2023) - **Operating Loss:** $9.5 million (Q2 2024) vs. $14.5 million (Q2 2023) **Cash Flow:** - **Operating Cash Flow:** $3.8 million (Q2 2024) vs. -$16.7 million (Q2 2023) - **Investing Cash Flow:** -$2.8 million (Q2 2024) vs. $10.9 million (Q2 2023) - **Financing Cash Flow:** -$13.6 million (Q2 2024) vs. -$11.7 million (Q2 2023) **Earnings Changes:** - **EPS (Basic and Diluted):** -$0.20 (Q2 2024) vs. -$0.28 (Q2 2023) **Quarterly Performance Discussion:** - **Revenue Decrease:** Due to a decrease in block hours and departures resulting from an industry-wide pilot shortage. - **Operating Expenses:** Decreased by $6.8 million, primarily due to lower aircraft maintenance costs and legal expenses. - **Cash Flow:** Positive operating cash flow driven by adjustments for depreciation and changes in working capital. **Trends and Uncertainties:** - **Pilot Shortage:** Continued impact on flight operations and revenue. - **Capacity Purchase Agreement:** Termination of the American capacity purchase agreement on April 3, 2025, leading to strategic realignment and workforce reductions. - **Liquidity:** Current cash and marketable securities balances expected to meet liquidity requirements for at least the next 12 months. **Future Operations Impact:** - **Strategic Realignment:** Focus on charter operations, Essential Air Service (EAS) markets, and transitioning to a codeshare and interline relationship with American. - **Workforce Reductions:** Implementation of reductions to align with evolving business strategies, affecting approximately 400 employees. - **Financial Health:** Continued focus on cost efficiencies and liquidity management to support strategic initiatives.