Second quarter 2022 GAAP diluted earnings per share of
$0.24
Second quarter 2022 diluted earnings per share, excluding
recognition bonus(1) of $0.62(1)(2)
LAS
VEGAS, August 3, 2022 /PRNewswire/ --
Allegiant Travel Company (NASDAQ: ALGT) today reported the
following financial results for the second quarter 2022, as well as
comparisons to prior years:
Consolidated
|
Three Months Ended
June 30,
|
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2022
|
|
2021
|
|
2019
|
|
YoY
|
|
Yo3Y
|
Total operating
revenue
|
$
629.8
|
|
$
472.4
|
|
$
491.8
|
|
33.3 %
|
|
28.1 %
|
Total operating
expense
|
603.7
|
|
333.6
|
|
383.7
|
|
81.0
|
|
57.4
|
Operating
income
|
26.1
|
|
138.9
|
|
108.1
|
|
(81.2)
|
|
(75.8)
|
Income before income
taxes
|
5.8
|
|
122.6
|
|
91.8
|
|
(95.2)
|
|
(93.6)
|
Net income
|
4.4
|
|
95.0
|
|
70.5
|
|
(95.4)
|
|
(93.8)
|
Diluted earnings per
share
|
$
0.24
|
|
$
5.49
|
|
$
4.33
|
|
(95.6)
|
|
(94.5)
|
|
|
|
Six Months Ended
June 30,
|
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2022
|
|
2021
|
|
2019
|
|
YoY
|
|
Yo3Y
|
Total operating
revenue
|
$
1,130.0
|
|
$
751.6
|
|
$
943.4
|
|
50.3 %
|
|
19.8 %
|
Total operating
expense
|
1,096.6
|
|
588.1
|
|
744.2
|
|
86.5
|
|
47.4
|
Operating
income
|
33.4
|
|
163.5
|
|
199.2
|
|
(79.6)
|
|
(83.3)
|
Income (loss) before
income taxes
|
(4.7)
|
|
131.2
|
|
165.7
|
|
(103.6)
|
|
(102.9)
|
Net income
(loss)
|
(3.5)
|
|
101.9
|
|
127.7
|
|
(103.5)
|
|
(102.8)
|
Diluted earnings (loss)
per share
|
$
(0.20)
|
|
$
6.04
|
|
$
7.84
|
|
(103.3)
|
|
(102.6)
|
|
|
(1)
|
Recognition bonus
awarded despite not meeting internal profit-sharing
targets
|
(2)
|
Denotes a non-GAAP
financial measure. Refer to the Non-GAAP Presentation section
within this document for further information
|
"Demand surged in the second quarter resulting in the highest
revenue-generating quarter in company history," stated John Redmond, CEO of Allegiant Travel Company.
"Total operating revenue was up over 28 percent as compared with
2019. We saw impressive increases in TRASM of over 15 percent, year
over three-year, particularly considering scheduled capacity was up
over 13 percent. Earnings per share, adjusted to exclude the impact
from the 2022 recognition bonus, was $0.62, pressured by lower productivity levels
due to heightened fuel prices and a challenging operating
environment.
"As we head into the third quarter, we continue to focus on
operational integrity, ensuring safe and reliable travel for our
customers. Our operations and planning teams have made significant
progress combating the challenges present within the current
operating environment. We have seen significant improvements in
reliability into the third quarter, with a July controllable
completion factor of 99 percent, as compared with 97 percent in
June. We expect to finish the quarter with a controllable
completion of over 99 percent.
"Looking ahead to 2023, we remain focused on improving margins
and our major strategic initiatives, including integration of the
Boeing MAX fleet, and the opening of Sunseeker Resort Charlotte
Harbor. These are major undertakings for the company, but I believe
these ventures will create significant shareholder value in the
coming years. Retaining our talented leaders is critical to
ensuring success with these initiatives. I was pleased to announce
the appointments of Scott Sheldon
and Gregory Anderson to President.
Their superior leadership skills and combined 30 years of
experience at Allegiant will play an integral role in the long-term
success of the company.
"In closing, I am humbled by the hard work and dedication of our
more than 5,000 team members across the network. This industry is
not for the faint of heart, but we truly have the best employees. I
cannot thank them enough for making Allegiant the successful
airline we are today."
Second Quarter 2022
Results
• GAAP Income before income taxes of
$5.8 million
° Excluding recognition bonus
(1) , achieved a pre-tax margin of 2.4
percent
• GAAP operating income of
$26.1 million, yielding an operating
margin of 4.1 percent
° Operating margin, adjusted to exclude
recognition bonus (1) of 5.6 percent
• Consolidated EBITDA(2) of
$75.3 million, yielding an EBITDA
margin of 12 percent
• Total operating revenue was
$629.8 million, up 28.1 percent year
over three-year
° The month of June was the highest
revenue-generating month in company history in both absolute
dollars and unitized on a revenue per flight basis
• Total system capacity up 12.2 percent
year over three-year
° Sequential improvement in load
factor of over eight points from the first quarter, with
June loads of roughly 90 percent
° TRASM up 15.7 percent for the
quarter versus 2019, despite a 13.4 increase in scheduled service
capacity
° Total average fare of
$131.69, up 15.0 percent from the
second quarter of 2019
° Total average fare - air-related
charges of $60.19, up 16.5 percent
from 2019, driven predominantly by strength in bundled
ancillary
° Total average fare - third party
products of $5.90, up 34.1 percent
year over three-year driven by Allways Allegiant World Mastercard
strength
° Acquired 42 thousand new Allways
Allegiant World Mastercard holders during the quarter, up 65
percent from 2019
° Year-to-date remuneration from Bank
of America up 129 percent, year over three-year
• Operating CASM, excluding fuel and
recognition bonus (1) (2) of 6.76 cents, up 14.0 percent when compared with
the second quarter of 2019
• Expanded the network by announcing 10
new routes during the quarter, bringing total routes served to 610
and 128 cities
|
|
(1)
|
Recognition bonus
awarded despite not meeting internal profit-sharing
targets
|
(2)
|
Denotes a non-GAAP
financial measure. Refer to the Non-GAAP Presentation section
within this document for further information
|
Balance Sheet, Cash and
Liquidity
• Total cash and investments
at June 30, 2022 were $1.2 billion
• $227.8
million in total operating cash inflow for the second
quarter 2022
• Total debt at June 30, 2022 was $2.0
billion
° Net debt at June 30, 2022 was $752.2
million
° Received $87.5
million during the quarter in prearranged financing related
to Sunseeker project
° Raised $108
million in aircraft-backed debt
• Debt principal payments of
$33.2 million during the quarter
• In August
2022, secured a $100 million
revolving credit facility with MUFG
• Air traffic liability at June 30, 2022 was $451.1
million
° Balance related to future scheduled
flights is $392.5 million
° Balance related to travel vouchers
issued for future use is $58.6
million
Airline Capital
Expenditures
• Second quarter capital expenditures of
$74 million, which includes
$39 million for aircraft pre-delivery
deposits, the purchase of one A320 aircraft, and $35 million in other airline capital
expenditures
° Second quarter deferred heavy
maintenance spend was $13
million
• Full-year 2022 capital expenditures expected
to be roughly $380 million, a slight
increase from initial expectations, which includes $240 million for aircraft purchases, inductions,
and pre-delivery deposits, and $140
million in other airline capital expenditures
° Full-year 2022 deferred heavy
maintenance spend expected to be $60
million, a slight reduction from initial expectations
Sunseeker Resort Charlotte
Harbor
• Total project spend as of
June 30, 2022 was $346 million with $158
million funded by debt and the remaining $188 million funded by Allegiant
° Second quarter capital
expenditures were $70 million
relating to the Sunseeker Resort Charlotte Harbor and $4 million related to other Sunseeker capital
expenditures
Guidance, subject to
revision
|
|
Current
|
|
|
|
Third Quarter
2022 guidance
|
|
|
|
|
|
|
|
System ASMs - year over
three-year change(1)
|
|
|
~16%
|
Scheduled Service
ASMs - year over three-year change(1)
|
|
|
~18%
|
|
|
|
|
Total operating revenue
- year over three-year change(1)
|
|
|
~29%
|
|
|
|
|
Operating CASM,
excluding fuel - year over three-year
change(1)
|
|
|
~10%
|
|
|
|
|
Fuel cost per
gallon
|
|
|
$3.80
|
|
|
|
|
Full year 2022
guidance
|
|
|
|
|
|
|
|
Airline
CAPEX
|
|
|
|
Aircraft, engines,
induction costs, and pre-delivery deposits (millions)
|
|
|
$235 to $245
|
Capitalized deferred
heavy maintenance (millions)
|
|
|
$55 to $65
|
Other airline capital
expenditures (millions)
|
|
|
$135 to $145
|
|
|
|
|
Interest expense
(millions) (2)
|
|
|
$85 to $95
|
Recurring principal
payments (millions)
|
|
|
$150 to $160
|
Sunseeker Resort
Charlotte Harbor Project (millions)
|
|
|
|
Total projected
project spend
|
|
|
$618
|
Allegiant
contributions through June 30, 2022
|
|
|
$188
|
Allegiant
contributions remaining to be spent
|
|
|
$80
|
Project spend funded
by debt through June 30, 2022
|
|
|
$158
|
Remaining project
spend expected to be funded by debt
|
|
|
$192
|
|
|
(1)
|
Year over three-year
percentage changes compare 2022 to 2019
|
(2)
|
Includes capitalized
interest related to pre-delivery deposits on new aircraft as well
as the construction of Sunseeker Resort Charlotte
Harbor
|
Aircraft Fleet Plan
by End of Period
|
|
|
|
|
|
Aircraft - (seats
per AC)
|
1Q22
|
2Q22
|
3Q22
|
YE22
|
A319 (156
seats)
|
35
|
35
|
35
|
35
|
A320 (177
seats)
|
22
|
22
|
22
|
22
|
A320 (186
seats)
|
55
|
58
|
62
|
67
|
Total
|
112
|
115
|
119
|
124
|
The table above is provided based on the company's current
plans and is subject to change
Allegiant Travel Company will host a conference call with
analysts at 4:30 p.m. ET Wednesday, August
3, 2022 to discuss its second quarter 2022 financial
results. A live broadcast of the conference call will be available
via the Company's Investor Relations website homepage at
http://ir.allegiantair.com. The webcast will also be archived in
the "Events & Presentations" section of the website.
Allegiant Travel Company
Las Vegas-based Allegiant
(NASDAQ: ALGT) is an integrated travel company with an airline at
its heart, focused on connecting customers with the people, places
and experiences that matter most. Since 1999, Allegiant Air has
linked travelers in small-to-medium cities to world-class vacation
destinations with all-nonstop flights and industry-low average
fares. Today, Allegiant's fleet serves communities across the
nation, with base airfares less than half the cost of the average
domestic round trip ticket. For more information, visit us at
Allegiant.com. Media information, including photos, is available at
http://gofly.us/iiFa303wrtF.
Media Inquiries: mediarelations@allegiantair.com
Investor Inquiries: ir@allegiantair.com
Under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, statements in this press release
that are not historical facts are forward-looking statements. These
forward-looking statements are only estimates or predictions based
on our management's beliefs and assumptions and on information
currently available to our management. Forward-looking statements
include our statements regarding future airline operations, revenue
and expenses, available seat mile growth, expected capital
expenditures, the timing of aircraft acquisitions and retirements,
the number of contracted aircraft to be placed in service in the
future, our ability to consummate announced aircraft transactions,
the implementation of a joint alliance with Viva Aerobus, the
development of our Sunseeker Resort, as well as other information
concerning future results of operations, business strategies,
financing plans, industry environment and potential growth
opportunities. Forward-looking statements include all statements
that are not historical facts and can be identified by the use of
forward-looking terminology such as the words "believe," "expect,"
"guidance," "anticipate," "intend," "plan," "estimate", "project",
"hope" or similar expressions.
Forward-looking statements involve risks, uncertainties
and assumptions. Actual results may differ materially from those
expressed in the forward-looking statements. Important risk factors
that could cause our results to differ materially from those
expressed in the forward-looking statements generally may be found
in our periodic reports filed with the Securities and Exchange
Commission at www.sec.gov. These risk factors include, without
limitation, the impact and duration of the COVID-19 pandemic on
airline travel and the economy, liquidity issues resulting from the
effect of the COVID-19 pandemic on our business, restrictions
imposed on us as a result of accepting grants and loans under the
payroll support programs, an accident involving, or problems with,
our aircraft, public perception of our safety, our reliance on our
automated systems, our reliance on third parties to deliver
aircraft under contract to us on a timely basis, risk of breach of
security of personal data, volatility of fuel costs, labor issues
and costs, the ability to obtain regulatory approvals as needed ,
the effect of economic conditions on leisure travel, debt covenants
and balances, the ability to finance aircraft to be acquired, the
ability to obtain necessary U.S. and Mexican government approvals
to implement the announced alliance with Viva Aerobus and to
otherwise prepare to offer international service, terrorist
attacks, risks inherent to airlines, our competitive environment,
our reliance on third parties who provide facilities or services to
us, the possible loss of key personnel, economic and other
conditions in markets in which we operate, the ability to
successfully develop a resort in Southwest Florida, governmental regulation,
increases in maintenance costs and cyclical and seasonal
fluctuations in our operating results.
Any forward-looking statements are based on information
available to us today and we undertake no obligation to update
publicly any forward-looking statements, whether as a result of
future events, new information or otherwise.
Detailed financial information follows:
Allegiant Travel
Company Consolidated Statements of Income (in
thousands, except per share
amounts) (Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Percent
Change
|
|
2022
|
|
2021
|
|
2019
|
|
YoY
|
|
Yo3Y
|
OPERATING
REVENUES:
|
|
|
|
|
|
|
|
|
|
Passenger
|
$ 592,604
|
|
$ 443,747
|
|
$ 454,779
|
|
33.5 %
|
|
30.3 %
|
Third party
products
|
27,787
|
|
23,001
|
|
18,208
|
|
20.8
|
|
52.6
|
Fixed fee
contracts
|
8,920
|
|
5,134
|
|
12,487
|
|
73.7
|
|
(28.6)
|
Other
|
536
|
|
551
|
|
6,285
|
|
(2.7)
|
|
(91.5)
|
Total
operating revenues
|
629,847
|
|
472,433
|
|
491,759
|
|
33.3
|
|
28.1
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel
|
257,288
|
|
109,456
|
|
119,987
|
|
135.1
|
|
114.4
|
Salaries and
benefits
|
139,681
|
|
121,906
|
|
113,592
|
|
14.6
|
|
23.0
|
Station
operations
|
66,909
|
|
57,210
|
|
45,870
|
|
17.0
|
|
45.9
|
Depreciation and
amortization
|
49,183
|
|
44,522
|
|
38,494
|
|
10.5
|
|
27.8
|
Maintenance and
repairs
|
31,123
|
|
22,597
|
|
20,877
|
|
37.7
|
|
49.1
|
Sales and
marketing
|
27,297
|
|
17,632
|
|
20,540
|
|
54.8
|
|
32.9
|
Aircraft lease
rental
|
5,451
|
|
5,117
|
|
—
|
|
6.5
|
|
—
|
Other
|
26,643
|
|
15,501
|
|
24,294
|
|
71.9
|
|
9.7
|
Payroll Support
Programs grant recognition
|
—
|
|
(61,213)
|
|
—
|
|
(100.0)
|
|
—
|
Special
charges
|
142
|
|
854
|
|
—
|
|
(83.4)
|
|
—
|
Total
operating expenses
|
603,717
|
|
333,582
|
|
383,654
|
|
81.0
|
|
57.4
|
OPERATING
INCOME
|
26,130
|
|
138,851
|
|
108,105
|
|
(81.2)
|
|
(75.8)
|
OTHER (INCOME)
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
24,497
|
|
16,720
|
|
20,942
|
|
46.5
|
|
17.0
|
Interest
income
|
(2,218)
|
|
(500)
|
|
(3,502)
|
|
343.6
|
|
(36.7)
|
Capitalized
interest
|
(2,082)
|
|
—
|
|
(1,038)
|
|
—
|
|
100.6
|
Loss on extinguishment
of debt
|
—
|
|
71
|
|
—
|
|
(100.0)
|
|
—
|
Other, net
|
101
|
|
(11)
|
|
(86)
|
|
NM
|
|
NM
|
Total
other expenses
|
20,298
|
|
16,280
|
|
16,316
|
|
24.7
|
|
24.4
|
INCOME BEFORE INCOME
TAXES
|
5,832
|
|
122,571
|
|
91,789
|
|
(95.2)
|
|
(93.6)
|
INCOME TAX
PROVISION
|
1,474
|
|
27,544
|
|
21,246
|
|
(94.6)
|
|
(93.1)
|
NET INCOME
|
$
4,358
|
|
$
95,027
|
|
$
70,543
|
|
(95.4)
|
|
(93.8)
|
Earnings per share to
common shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
$0.24
|
|
$5.49
|
|
$4.33
|
|
(95.6)
|
|
(94.5)
|
Diluted
|
$0.24
|
|
$5.49
|
|
$4.33
|
|
(95.6)
|
|
(94.5)
|
Weighted average shares
outstanding used in computing earnings per share attributable to
common shareholders(1):
|
|
|
|
|
|
|
|
|
|
Basic
|
17,987
|
|
17,064
|
|
16,063
|
|
5.4
|
|
12.0
|
Diluted
|
18,006
|
|
17,073
|
|
16,069
|
|
5.5
|
|
12.1
|
|
|
(1)
|
The Company's
unvested restricted stock awards are considered participating
securities as they receive non-forfeitable rights to cash dividends
at the same rate as common stock. The Basic and Diluted earnings
per share calculations for the periods presented reflect the
two-class method mandated by ASC Topic 260, "Earnings Per Share."
The two-class method adjusts both the net income and the shares
used in the calculation. Application of the two-class method did
not have a significant impact on the Basic and Diluted earnings per
share for the periods presented.
|
|
NM - Not
meaningful
|
Allegiant Travel
Company Operating
Statistics (Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Percent
Change(1)
|
|
2022
|
|
2021
|
|
2019
|
|
YoY
|
|
Yo3Y
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
|
|
|
|
Passengers
|
4,740,399
|
|
3,699,217
|
|
4,169,536
|
|
28.1 %
|
|
13.7 %
|
Available seat miles
(ASMs) (thousands)
|
4,990,086
|
|
4,594,542
|
|
4,447,066
|
|
8.6
|
|
12.2
|
Operating expense per
ASM (CASM) (cents)(5)
|
12.10
|
|
7.26
|
|
8.63
|
|
66.7
|
|
40.2
|
Fuel expense per ASM
(cents)
|
5.16
|
|
2.38
|
|
2.70
|
|
116.8
|
|
91.1
|
Operating CASM,
excluding fuel (cents)(5)
|
6.94
|
|
4.88
|
|
5.93
|
|
42.2
|
|
17.0
|
ASMs per gallon of
fuel
|
83.7
|
|
84.8
|
|
82.3
|
|
(1.3)
|
|
1.7
|
Departures
|
32,138
|
|
31,507
|
|
30,547
|
|
2.0
|
|
5.2
|
Block hours
|
75,472
|
|
69,809
|
|
68,332
|
|
8.1
|
|
10.4
|
Average stage length
(miles)
|
881
|
|
838
|
|
853
|
|
5.1
|
|
3.3
|
Average number of
operating aircraft during period
|
113.3
|
|
101.8
|
|
85.0
|
|
11.3
|
|
33.3
|
Average block hours
per aircraft per day
|
7.3
|
|
7.5
|
|
8.8
|
|
(2.7)
|
|
(17.0)
|
Full-time equivalent
employees at end of period
|
5,226
|
|
4,104
|
|
4,179
|
|
27.3
|
|
25.1
|
Fuel gallons consumed
(thousands)
|
59,588
|
|
54,188
|
|
54,064
|
|
10.0
|
|
10.2
|
Average fuel cost per
gallon
|
$
4.32
|
|
$
2.02
|
|
$
2.22
|
|
113.9
|
|
94.6
|
Scheduled service
statistics:
|
|
|
|
|
|
|
|
|
|
Passengers
|
4,711,001
|
|
3,680,254
|
|
4,131,855
|
|
28.0
|
|
14.0
|
Revenue passenger
miles (RPMs) (thousands)
|
4,267,828
|
|
3,188,215
|
|
3,603,076
|
|
33.9
|
|
18.4
|
Available seat miles
(ASMs) (thousands)
|
4,888,539
|
|
4,505,786
|
|
4,311,182
|
|
8.5
|
|
13.4
|
Load factor
|
87.3 %
|
|
70.8 %
|
|
83.6 %
|
|
16.5
|
|
3.7
|
Departures
|
31,402
|
|
30,763
|
|
29,567
|
|
2.1
|
|
6.2
|
Block hours
|
73,857
|
|
68,334
|
|
66,135
|
|
8.1
|
|
11.7
|
Average seats per
departure
|
175.6
|
|
173.6
|
|
170.9
|
|
1.2
|
|
2.8
|
Yield (cents)
(2)
|
7.24
|
|
7.22
|
|
6.70
|
|
0.3
|
|
8.1
|
Total passenger
revenue per ASM (TRASM) (cents)(3)
|
12.69
|
|
10.36
|
|
10.97
|
|
22.5
|
|
15.7
|
Average fare -
scheduled service(4)
|
$
65.60
|
|
$
62.58
|
|
$
58.39
|
|
4.8
|
|
12.3
|
Average fare -
air-related charges(4)
|
$
60.19
|
|
$
58.00
|
|
$
51.68
|
|
3.8
|
|
16.5
|
Average fare - third
party products
|
$
5.90
|
|
$
6.25
|
|
$
4.40
|
|
(5.6)
|
|
34.1
|
Average fare -
total
|
$ 131.69
|
|
$ 126.82
|
|
$ 114.47
|
|
3.8
|
|
15.0
|
Average stage length
(miles)
|
883
|
|
842
|
|
853
|
|
4.9
|
|
3.5
|
Fuel gallons consumed
(thousands)
|
58,332
|
|
53,022
|
|
52,327
|
|
10.0
|
|
11.5
|
Average fuel cost per
gallon
|
$
4.33
|
|
$
2.01
|
|
$
2.22
|
|
115.4
|
|
95.0
|
Percent of sales
through website during period
|
96.3 %
|
|
94.3 %
|
|
93.5 %
|
|
2.0
|
|
2.8
|
Other
data:
|
|
|
|
|
|
|
|
|
|
Rental car days
sold
|
430,004
|
|
404,760
|
|
540,960
|
|
6.2
|
|
(20.5)
|
Hotel room nights
sold
|
78,590
|
|
72,701
|
|
114,191
|
|
8.1
|
|
(31.2)
|
|
|
(1)
|
Except load factor
and percent of sales through website, which is percentage point
change
|
(2)
|
Defined as scheduled
service revenue divided by revenue passenger miles
|
(3)
|
Various components
of this measurement do not have a direct correlation to ASMs. These
figures are provided on a per ASM basis to facilitate comparison
with airlines reporting revenues on a per ASM basis
|
(4)
|
Reflects division of
passenger revenue between scheduled service and air-related charges
in Company's booking path
|
(5)
|
2021 operating CASM
includes the benefit from the government payroll support
programs
|
Allegiant
Travel Company Consolidated Statements of
Income (in thousands, except per share
amounts) (Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
Percent
Change
|
|
2022
|
|
2021
|
|
2019
|
|
YoY
|
|
Yo3Y
|
OPERATING
REVENUES:
|
|
|
|
|
|
|
|
|
|
Passenger
|
$
1,056,566
|
|
$ 700,441
|
|
$ 874,755
|
|
50.8 %
|
|
20.8 %
|
Third party
products
|
50,267
|
|
36,622
|
|
35,350
|
|
37.3
|
|
42.2
|
Fixed fee
contracts
|
22,305
|
|
12,827
|
|
23,061
|
|
73.9
|
|
(3.3)
|
Other
|
818
|
|
1,667
|
|
10,215
|
|
(50.9)
|
|
(92.0)
|
Total
operating revenues
|
1,129,956
|
|
751,557
|
|
943,381
|
|
50.3
|
|
19.8
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Aircraft
fuel
|
421,425
|
|
192,305
|
|
219,670
|
|
119.1
|
|
91.8
|
Salary and
benefits
|
273,691
|
|
239,856
|
|
233,003
|
|
14.1
|
|
17.5
|
Station
operations
|
132,652
|
|
100,303
|
|
84,835
|
|
32.3
|
|
56.4
|
Depreciation and
amortization
|
95,526
|
|
87,696
|
|
74,676
|
|
8.9
|
|
27.9
|
Maintenance and
repairs
|
58,943
|
|
45,968
|
|
43,701
|
|
28.2
|
|
34.9
|
Sales and
marketing
|
49,647
|
|
29,241
|
|
41,466
|
|
69.8
|
|
19.7
|
Aircraft lease
rental
|
11,584
|
|
9,837
|
|
—
|
|
17.8
|
|
—
|
Other
|
52,845
|
|
33,276
|
|
46,849
|
|
58.8
|
|
12.8
|
Payroll Support
Programs grant recognition
|
—
|
|
(152,971)
|
|
—
|
|
100.0
|
|
—
|
Special
charges
|
284
|
|
2,592
|
|
—
|
|
(89.0)
|
|
—
|
Total
operating expenses
|
1,096,597
|
|
588,103
|
|
744,200
|
|
86.5
|
|
47.4
|
OPERATING
INCOME
|
33,359
|
|
163,454
|
|
199,181
|
|
(79.6)
|
|
(83.3)
|
OTHER (INCOME)
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
44,288
|
|
33,508
|
|
39,025
|
|
32.2
|
|
13.5
|
Interest
income
|
(2,991)
|
|
(963)
|
|
(6,703)
|
|
(210.6)
|
|
55.4
|
Capitalized
interest
|
(3,298)
|
|
—
|
|
(2,541)
|
|
—
|
|
(29.8)
|
Loss on extinguishment
of debt
|
—
|
|
71
|
|
3,677
|
|
NM
|
|
NM
|
Other, net
|
95
|
|
(404)
|
|
15
|
|
123.5
|
|
533.3
|
Total
other expenses
|
38,094
|
|
32,212
|
|
33,473
|
|
18.3
|
|
13.8
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
(4,735)
|
|
131,242
|
|
165,708
|
|
(103.6)
|
|
(102.9)
|
INCOME TAX PROVISION
(BENEFIT)
|
(1,212)
|
|
29,346
|
|
38,041
|
|
(104.1)
|
|
(103.2)
|
NET INCOME
(LOSS)
|
$
(3,523)
|
|
$ 101,896
|
|
$ 127,667
|
|
(103.5)
|
|
(102.8)
|
Earnings (loss) per
share to common shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
($0.20)
|
|
$6.04
|
|
$7.85
|
|
(103.3)
|
|
(102.5)
|
Diluted
|
($0.20)
|
|
$6.04
|
|
$7.84
|
|
(103.3)
|
|
(102.6)
|
Weighted average shares
outstanding used in computing earnings per share attributable to
common shareholders(1):
|
|
|
|
|
|
|
|
|
|
Basic
|
17,970
|
|
16,618
|
|
16,037
|
|
8.1
|
|
12.1
|
Diluted
|
17,970
|
|
16,632
|
|
16,050
|
|
8.0
|
|
12.0
|
|
|
(1)
|
The Company's
unvested restricted stock awards are considered participating
securities as they receive non-forfeitable rights to cash dividends
at the same rate as common stock. The Basic and Diluted earnings
per share calculations for the periods presented reflect the
two-class method mandated by ASC Topic 260, "Earnings Per Share."
The two-class method adjusts both the net income and the shares
used in the calculation. Application of the two-class method did
not have a significant impact on the Basic and Diluted earnings per
share for the periods presented.
|
|
NM - Not
meaningful
|
Allegiant
Travel Company Operating Statistics (Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
Percent
Change(1)
|
|
2022
|
|
2021
|
|
2019
|
|
YoY
|
|
Yo3Y
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
|
|
|
|
Passengers
|
8,474,661
|
|
6,033,720
|
|
7,619,814
|
|
40.5 %
|
|
11.2 %
|
Available seat miles
(ASMs) (thousands)
|
9,610,230
|
|
8,608,531
|
|
8,357,304
|
|
11.6
|
|
15.0
|
Operating expense per
ASM (CASM) (cents)(5)
|
11.41
|
|
6.83
|
|
8.90
|
|
67.1
|
|
28.2
|
Fuel expense per ASM
(cents)
|
4.39
|
|
2.23
|
|
2.63
|
|
96.9
|
|
66.9
|
Operating CASM,
excluding fuel (cents)(5)
|
7.03
|
|
4.60
|
|
6.27
|
|
52.8
|
|
12.1
|
ASMs per gallon of
fuel
|
85.0
|
|
87.3
|
|
83.1
|
|
(2.6)
|
|
2.3
|
Departures
|
60,632
|
|
57,191
|
|
55,747
|
|
6.0
|
|
8.8
|
Block hours
|
145,127
|
|
130,183
|
|
128,151
|
|
11.5
|
|
13.2
|
Average stage length
(miles)
|
899
|
|
865
|
|
876
|
|
3.9
|
|
2.6
|
Average number of
aircraft during period
|
111.4
|
|
99.5
|
|
82.3
|
|
12.0
|
|
35.4
|
Average block hours
per aircraft per day
|
7.2
|
|
7.2
|
|
8.6
|
|
—
|
|
(16.3)
|
Full-time equivalent
employees at end of period
|
5,226
|
|
4,104
|
|
4,179
|
|
27.3
|
|
25.1
|
Fuel gallons consumed
(thousands)
|
113,026
|
|
98,614
|
|
100,537
|
|
14.6
|
|
12.4
|
Average fuel cost per
gallon
|
$
3.73
|
|
$
1.95
|
|
$
2.18
|
|
91.3
|
|
71.1
|
Scheduled service
statistics:
|
|
|
|
|
|
|
|
|
|
Passengers
|
8,420,105
|
|
6,003,556
|
|
7,553,393
|
|
40.3
|
|
11.5
|
Revenue passenger
miles (RPMs) (thousands)
|
7,825,873
|
|
5,354,632
|
|
6,794,122
|
|
46.2
|
|
15.2
|
Available seat miles
(ASMs) (thousands)
|
9,400,853
|
|
8,426,876
|
|
8,113,315
|
|
11.6
|
|
15.9
|
Load factor
|
83.2 %
|
|
63.5 %
|
|
83.7 %
|
|
19.7
|
|
(0.5)
|
Departures
|
59,039
|
|
55,710
|
|
53,911
|
|
6.0
|
|
9.5
|
Block hours
|
141,686
|
|
127,185
|
|
124,098
|
|
11.4
|
|
14.2
|
Average seats per
departure
|
175.6
|
|
173.6
|
|
171.2
|
|
1.2
|
|
2.6
|
Yield (cents)
(2)
|
6.95
|
|
6.83
|
|
7.06
|
|
1.8
|
|
(1.6)
|
Total passenger
revenue per ASM (TRASM) (cents)(3)
|
11.77
|
|
8.75
|
|
11.22
|
|
34.5
|
|
4.9
|
Average fare -
scheduled service(4)
|
$
64.55
|
|
$
60.95
|
|
$
63.49
|
|
5.9
|
|
1.7
|
Average fare -
air-related charges(4)
|
$
60.93
|
|
$
55.72
|
|
$
52.32
|
|
9.4
|
|
16.5
|
Average fare - third
party products
|
$
5.97
|
|
$
6.10
|
|
$
4.68
|
|
(2.1)
|
|
27.6
|
Average fare -
total
|
$ 131.45
|
|
$ 122.77
|
|
$ 120.49
|
|
7.1
|
|
9.1
|
Average stage length
(miles)
|
903
|
|
869
|
|
878
|
|
3.9
|
|
2.8
|
Fuel gallons consumed
(thousands)
|
110,442
|
|
96,329
|
|
97,395
|
|
14.7
|
|
13.4
|
Average fuel cost per
gallon
|
$
3.67
|
|
$
1.92
|
|
$
2.18
|
|
91.1
|
|
68.3
|
Percent of sales
through website during period
|
96.2 %
|
|
93.8 %
|
|
93.5 %
|
|
2.4
|
|
2.7
|
Other
data:
|
|
|
|
|
|
|
|
|
|
Rental car days
sold
|
797,098
|
|
680,344
|
|
1,012,558
|
|
17.2
|
|
(21.3)
|
Hotel room nights
sold
|
151,129
|
|
128,909
|
|
219,206
|
|
17.2
|
|
(31.1)
|
|
|
(1)
|
Except load factor
and percent of sales through website, which is percentage point
change
|
(2)
|
Defined as scheduled
service revenue divided by revenue passenger miles
|
(3)
|
Various components
of this measurement do not have a direct correlation to ASMs. These
figures are provided on a per ASM basis to facilitate comparison
with airlines reporting revenues on a per ASM basis
|
(4)
|
Reflects division of
passenger revenue between scheduled service and air-related charges
in Company's booking path
|
(5)
|
2021 operating CASM
includes the benefit from the government payroll support
programs
|
Summary Balance
Sheet
|
|
Unaudited
(millions)
|
June 30, 2022
(unaudited)
|
|
December 31,
2021
|
|
Percent
Change
|
Unrestricted cash and
investments
|
|
|
|
|
|
Cash and cash
equivalents
|
$
396.1
|
|
$
363.4
|
|
9.0 %
|
Short-term
investments
|
813.2
|
|
819.5
|
|
(0.8)
|
Total unrestricted
cash and investments
|
1,209.3
|
|
1,182.9
|
|
2.2
|
Debt
|
|
|
|
|
|
Current maturities of
long-term debt and finance lease obligations, net of related
costs
|
158.0
|
|
130.1
|
|
21.4
|
Long-term debt and
finance lease obligations, net of current maturities and related
costs
|
1,803.5
|
|
1,612.5
|
|
11.8
|
Total debt
|
1,961.5
|
|
1,742.6
|
|
12.6
|
Debt, net of
liquidity
|
752.2
|
|
559.7
|
|
34.4
|
Total Allegiant Travel
Company shareholders' equity
|
1,232.4
|
|
1,223.6
|
|
0.7
|
EPS Calculation
The following table sets forth the computation of net income
(loss) per share, on a basic and diluted basis, for the periods
indicated (share count and dollar amounts other than per-share
amounts in table are in thousands):
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Basic:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
4,358
|
|
$
95,027
|
|
$
(3,523)
|
|
$
101,896
|
Less income allocated
to participating securities
|
(39)
|
|
(1,285)
|
|
—
|
|
(1,451)
|
Net income (loss)
attributable to common stock
|
$
4,319
|
|
$
93,742
|
|
$
(3,523)
|
|
$
100,445
|
Earnings (loss) per
share, basic
|
$
0.24
|
|
$
5.49
|
|
$
(0.20)
|
|
$
6.04
|
Weighted-average shares
outstanding
|
17,987
|
|
17,064
|
|
17,970
|
|
16,618
|
Diluted:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
4,358
|
|
$
95,027
|
|
$
(3,523)
|
|
$
101,896
|
Less income allocated
to participating securities
|
(39)
|
|
(1,284)
|
|
—
|
|
(1,449)
|
Net income (loss)
attributable to common stock
|
$
4,319
|
|
$
93,743
|
|
$
(3,523)
|
|
$
100,447
|
Earnings (loss) per
share, diluted
|
$
0.24
|
|
$
5.49
|
|
$
(0.20)
|
|
$
6.04
|
Weighted-average shares
outstanding (1)
|
17,987
|
|
17,064
|
|
17,970
|
|
16,618
|
Dilutive effect of
stock options and restricted stock
|
31
|
|
123
|
|
—
|
|
128
|
Adjusted
weighted-average shares outstanding under treasury stock
method
|
18,018
|
|
17,187
|
|
17,970
|
|
16,746
|
Participating
securities excluded under two-class method
|
(12)
|
|
(114)
|
|
—
|
|
(114)
|
Adjusted
weighted-average shares outstanding under two-class
method
|
18,006
|
|
17,073
|
|
17,970
|
|
16,632
|
|
|
(1)
|
Dilutive effect of
common stock equivalents excluded from the diluted per share
calculation is not material.
|
Appendix A
Non-GAAP
Presentation
Three and Six Months Ended June 30, 2022 and
2021
(Unaudited)
Net income excluding recognition bonus and net income per share
excluding recognition bonus both eliminate the effect of a
recognition bonus awarded despite not meeting internal
profit-sharing targets. As such, these are non-GAAP financial
measures.
EBITDA, as presented in this press release, is a supplemental
measure of our performance that is not required by, or presented in
accordance with, accounting principles generally accepted in
the United States ("GAAP"). It is
not a measurement of our financial performance under GAAP and
should not be considered in isolation or as an alternative to net
income or any other performance measures derived in accordance with
GAAP or as an alternative to cash flows from operating activities
as a measure of our liquidity.
We define "EBITDA" as earnings before interest, taxes,
depreciation and amortization. We caution investors that amounts
presented in accordance with this definition may not be comparable
to similar measures disclosed by other issuers, because not all
issuers and analysts calculate EBITDA in the same manner.
We use EBITDA to evaluate our operating performance and
liquidity and this is among the primary measures used by management
for planning and forecasting of future periods. We believe the
presentation of EBITDA is relevant and useful for investors because
it allows investors to view results in a manner similar to the
method used by management and makes it easier to compare our
results with other companies that have different financing and
capital structures. EBITDA has important limitations as an
analytical tool. These limitations include the following:
- EBITDA does not reflect our capital expenditures, future
requirements for capital expenditures or contractual commitments to
purchase capital equipment;
- EBITDA does not reflect interest expense or the cash
requirements necessary to service principal or interest payments on
our debt;
- although depreciation and amortization are non-cash charges,
the assets that we currently depreciate and amortize will likely
have to be replaced in the future, and EBITDA does not reflect the
cash required to fund such replacements; and
- other companies in our industry may calculate EBITDA
differently than we do, limiting its usefulness as a comparative
measure.
Presented below is a quantitative reconciliation of EBITDA to
the most directly comparable GAAP financial performance measure,
which we believe is net income (loss). We believe the presentation
of EBITDA is relevant and useful for investors because it allows
them to better compare our results to other airlines.
In addition to EBITDA as defined above, we have included a
separate EBITDA as defined by certain credit agreements. This
measurement of EBITDA adjusts for Sunseeker net loss, stock
compensation expense, amortization of debt issuance costs,
(gain)/loss on disposal of assets, tax provision - in excess of
cash paid, special non-recurring items, and other items.
The SEC has adopted rules (Regulation G) regulating the use of
non-GAAP financial measures. Because of our use of non-GAAP
financial measures in this press release to supplement our
consolidated financial statements presented on a GAAP basis,
Regulation G requires us to include in this press release a
presentation of the most directly comparable GAAP measure, which is
net loss and net loss per share and a reconciliation of the
non-GAAP measures to the most comparable GAAP measure. Our
utilization of non-GAAP measurements is not meant to be considered
in isolation or as a substitute for operating income (loss), net
income (loss) or other measures of financial performance prepared
in accordance with GAAP. Our use of these non-GAAP measures may not
be comparable to similarly titled measures employed by other
companies in the airline and travel industry. The reconciliation of
each of these measures to the most comparable GAAP measure for the
periods is indicated below.
Reconciliation of
Non-GAAP Financial Measures
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2022
|
Reconciliation of
net (loss) excluding recognition
bonus and (loss) per share excluding recognition
bonus (millions except per share numbers)
|
|
|
|
Net (loss) before
income taxes as reported (GAAP)
|
$
5.8
|
|
$
(4.7)
|
Recognition
bonus
|
9.1
|
|
16.8
|
Income before income
taxes excluding recognition bonus
|
14.9
|
|
12.1
|
Income tax expense
(benefit) as reported (GAAP)
|
1.5
|
|
(1.2)
|
Income tax expense
excluding recognition bonus
|
3.8
|
|
3.1
|
Net income excluding
recognition bonus
|
11.1
|
|
9.0
|
|
|
|
|
Diluted shares as
reported (GAAP) (thousands)
|
18,006
|
|
17,970
|
Diluted earnings (loss)
per share as reported (GAAP)
|
0.24
|
|
(0.20)
|
Diluted earnings per
share excluding recognition bonus
|
0.62
|
|
0.50
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2022
|
Reconciliation of
CASM and CASM excluding fuel
and recognition bonus (millions, unless otherwise
noted)
|
|
|
|
Operating expense as
reported (GAAP)
|
$
603.7
|
|
$
1,096.6
|
|
|
|
|
Recognition
bonus
|
(9.1)
|
|
(16.8)
|
Operating expense
excluding recognition bonus(1)
|
594.6
|
|
1,079.8
|
Fuel expense as
reported
|
(257.3)
|
|
(421.4)
|
Operating expense
excluding fuel and recognition bonus (1)
|
337.3
|
|
658.4
|
|
|
|
|
Available seat miles
(ASMs) (thousands)
|
4,990,086
|
|
9,610,230
|
|
|
|
|
Operating expense per
ASM as reported (CASM) (cents)
|
12.10
|
|
11.41
|
Operating expense CASM,
excluding recognition bonus (cents)
|
11.92
|
|
11.24
|
|
|
|
|
Operating CASM,
excluding fuel as reported (cents)
|
6.94
|
|
7.03
|
Operating CASM,
excluding fuel and recognition bonus (cents)
|
6.76
|
|
6.85
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2022
|
Reconciliation of
consolidated EBITDA to EBITDA
as defined by certain credit agreements (millions)
|
|
|
|
Net income
(loss)
|
$
4.4
|
|
$
(3.5)
|
Interest expense,
net
|
20.2
|
|
38.0
|
Income tax provision
(benefit)
|
1.5
|
|
(1.2)
|
Depreciation and
amortization
|
49.2
|
|
95.5
|
Consolidated EBITDA
(1)
|
75.3
|
|
128.8
|
Adjusting items as
defined per credit agreements (2)
|
58.9
|
|
127.2
|
EBITDA as defined by
certain credit agreements (1)
|
134.2
|
|
256.0
|
|
|
|
|
(1)
|
Denotes non-GAAP
figure
|
(2)
|
Adjusting items
include the following: Sunseeker net loss, stock compensation
expense, amortization of debt issuance costs, (gain)/loss on
disposal of assets, tax provision - in excess of cash paid, and
other special non-recurring items
|
|
|
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SOURCE Allegiant Travel Company