| Midway Airlines Corporation | |||
| Ticker: | MDWY | 300 West Morgan Street, Suite 1200 | |
| Exchange: | NASDAQ-National Market | Durham, NC 27701 | |
| Industry: | Transportation (SIC Code 4512) | (919) 956-4800 | |
| # of Employees: | 742 | ||
| Type of Shares: | Common Shares | Filing Date: | 10/7/97 | |
| U.S. Shares: | 4,200,000 | Offer Date: | 12/4/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $14.00 - $16.00 | |
| Primary Shares: | 2,350,000 | Offer Price: | $15.50 | |
| Secondary Shares: | 1,850,000 | Gross Spread: | $1.09 | |
| Offering Amount: | $63,000,000 | Selling: | $0.66 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Morgan Stanley Dean Witter Discover & Co. | Lead Manager | (212) 761-5900 |
| Robinson-Humphrey Company, Inc., The | Co-manager | (404) 266-6450 |
| Issuer's Law Firm: | Fulbright & Jaworski |
| Bank's Law Firm: | Shearman & Sterling |
| Auditor: | Ernst & Young |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $180.03 | $95.08 | $95.37 | Assets: | $67.69 |
| Net Income: | -$14.41 | -$24.26 | -$33.70 | Curr Assets: | |
| EPS: | Liabilities: | $59.95 | |||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $7.75 | |||
| Cash Flow/Fin: | Cash: | $36.20 | |||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a jet airline operator serving 13 destinations in eight eastern states and Mexico from its hub at Raleigh-Durhman International Airport where it currently carries more passengers and operates more flights than any other airline. The Company has focused its operations to attract and retain business travelers by (i) providing frequent non-stop service from RDU to major business destinations, (ii) maintaining a high level of service and (iii) offering American Airlines, Inc. ("American") AAdvantage-Registered Trademark-frequent flyer miles. The Company currently operates the youngest all jet fleet in the United States with 12 98-seat Fokker F-100 and one 148-seat Airbus A320 aircraft. To further serve its market niche, the Company recently reached agreement to acquire ten new Canadair Regional Jet aircraft (the "CRJs"), with deliveries to occur in the 14-month period beginning in November 1997. The Company anticipates that the CRJs will expand the Company's capacity by up to 40%, and will be utilized (i) to serve existing Midway destinations with greater frequency and (ii) to enter new routes, providing Midway's customers with more non-stop jet destinations. |
| Competition |
| The Company competes with other air carriers on many of its routes. Many of the Company's competitors have elaborate route structures that transport passengers to hub airports for transfer to many destinations, including those served by Midway. Although ten other jet airline carriers currently serve RDU, these carriers (other than US Airways, Inc. to New York's LaGuardia Airport and Washington, D.C.'s National Airport) provide non-stop flights only between RDU and their respective hubs. In some markets, Midway also competes against ground transportation providers. |
| Business Plan |
| The principal elements of the company's operating strategy are: (I) Attract High-Yielding Local Business Travelers, (ii) Maintain High Quality Operations, (iii) Provide Quality Customer Service and (iv) Continue to Reduce Operating Costs. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to finance thw acquisition of regional jet aircraft and spare parts for support of these aircraft and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| James H. Goodnight, Ph.D. | 42.80% | |
| Zell/Chilmark Fund L.P. | 29.70% | |
| John P. Sall | 20.80% | |
| AMR Corporation | 6.30% |
| Officer Name | Title | Age |
| Robert R. Ferguson III | Chairman of the Board, President and Chief Executive Officer | 48 |
| Steven Westberg | Senior Vice President and Chief Financial Officer | 42 |
| Jonathan S. Waller | Senior Vice President, General Counsel and Secretary | 37 |
| Joanne Smith | Senior Vice President--Sales and Marketing | 39 |
| Matin F. Brueckner | Vice President--Customer Service | 53 |
| Thomas Duffy, Jr. | Vice President--Maintenance | 41 |
| David Vance | Vice President--Operations | 63 |