Fri, May 16, 9:31 PM (33 days ago)
### Summary of Harbor Diversified, Inc. (HRBR) Q3 2024 Financial Performance **Revenue and Profit Margins:** - **Revenue:** $53.6 million (Q3 2024) vs. $50.1 million (Q3 2023) - **Net Loss:** $2.2 million (Q3 2024) vs. $4.1 million (Q3 2023) - **Operating Loss:** $5.5 million (Q3 2024) vs. $5.1 million (Q3 2023) **Cash Flow:** - **Operating Cash Flow:** $3.8 million (Q3 2024) vs. -$18.5 million (Q3 2023) - **Investing Cash Flow:** -$4.2 million (Q3 2024) vs. $14.3 million (Q3 2023) - **Financing Cash Flow:** -$13.7 million (Q3 2024) vs. -$13.4 million (Q3 2023) **Earnings Changes:** - **Basic EPS:** -$0.04 (Q3 2024) vs. -$0.10 (Q3 2023) - **Diluted EPS:** -$0.04 (Q3 2024) vs. -$0.10 (Q3 2023) **Quarterly Performance Discussion:** - **Revenue Growth:** 7.0% increase in total operating revenues due to higher revenue rates and minimum revenues based on crew availability. - **Operating Expenses:** 7.2% increase in total operating expenses driven by higher payroll and aircraft maintenance costs. - **Cash Flow:** Positive net operating cash flows for Q3 2024 compared to negative cash flows in Q3 2023. **Trends and Uncertainties:** - **Industry Challenges:** Pilot shortages and industry-wide issues impacting flying schedules and operational efficiency. - **Strategic Realignment:** Efforts to explore new business opportunities, including charter operations and Essential Air Service (EAS) markets. - **Financial Health:** Positive cash flow from operations but significant uncertainties due to the termination of the American capacity purchase agreement. **Future Operations Impact:** - **Liquidity:** Current cash and marketable securities balances are sufficient for at least the next 12 months. - **Strategic Initiatives:** Focus on cost reduction, workforce alignment, and exploring new revenue streams. - **Risks:** Potential for further workforce reductions, operational disruptions, and financial challenges due to industry volatility. **Key Metrics:** - **Available Seat Miles (ASMs):** 199,576 (Q3 2024) vs. 226,190 (Q3 2023) - **Revenue Passenger Miles (RPMs):** 170,333 (Q3 2024) vs. 192,732 (Q3 2023) - **Load Factor:** 85.8% (Q3 2024) vs. 85.2% (Q3 2023) **Conclusion:** Harbor Diversified, Inc. faced significant operational and financial challenges in Q3 2024, driven by industry-wide issues and strategic realignments. While the company reported positive cash flow from operations, the future remains uncertain due to the termination of key agreements and the need for further strategic initiatives. The company's focus on cost reduction and exploring new revenue streams will be critical for its financial health and operational sustainability.