Third quarter 2023 GAAP diluted loss
per share of $(1.44)
Third quarter 2023 diluted
earnings per share, excluding special charges of $0.09(1)(4)(5)
Third quarter 2023 airline only
diluted earnings per share, excluding special charges
of $0.31(1)(6)
Sunseeker Resort to open December 15, 2023
LAS
VEGAS, Nov. 2, 2023 /PRNewswire/ -- Allegiant
Travel Company (NASDAQ: ALGT) today reported the following
financial results for the third quarter 2023, as well as
comparisons to the prior year:
Consolidated
|
Three Months Ended
September 30,
|
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2023
|
|
2022
|
|
YoY
|
Total operating
revenue
|
$
565.4
|
|
$
560.3
|
|
0.9 %
|
Total operating
expense
|
583.2
|
|
591.2
|
|
(1.4) %
|
Operating
loss
|
(17.9)
|
|
(30.9)
|
|
42.1 %
|
Loss before income
taxes
|
(29.9)
|
|
(56.2)
|
|
46.7 %
|
Net loss
|
(25.1)
|
|
(46.5)
|
|
46.0 %
|
Diluted loss per
share
|
(1.44)
|
|
(2.58)
|
|
44.2 %
|
Sunseeker special
charges, net of recoveries (4)
|
17.4
|
|
35.0
|
|
(50.3) %
|
Airline special charges
(4)
|
15.2
|
|
0.1
|
|
NM
|
Diluted earnings (loss)
per share excluding special charges net of
recoveries(1)(5)
|
0.09
|
|
(0.96)
|
|
109.4 %
|
Airline
only
|
Three Months Ended
September 30,
|
|
Percent
Change(2)
|
(unaudited) (in
millions, except per share amounts)
|
2023
|
|
2022
|
|
YoY
|
Airline operating
revenue
|
$
565.4
|
|
$
560.3
|
|
0.9 %
|
Airline operating
expense (1)
|
559.5
|
|
553.5
|
|
1.1 %
|
Airline operating
income
|
5.8
|
|
6.8
|
|
(14.7) %
|
Airline loss before
income taxes (1)
|
(7.4)
|
|
(17.3)
|
|
57.2 %
|
Airline net loss
(1)
|
(5.6)
|
|
(15.2)
|
|
63.2 %
|
Airline special charges
(4)
|
15.2
|
|
0.1
|
|
NM
|
Airline net income
(loss), excluding special charges
(1)(3)(6)
|
5.9
|
|
(15.1)
|
|
NM
|
Airline operating
margin, excluding special charges
(1)(6)
|
3.7 %
|
|
1.2 %
|
|
2.5
|
Airline diluted
earnings (loss) per share, excluding special charges
(1)(6)
|
0.31
|
|
(0.84)
|
|
136.9 %
|
Consolidated
|
Nine Months Ended
September 30,
|
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2023
|
|
2022
|
|
YoY
|
Total operating
revenue
|
$
1,898.9
|
|
$
1,690.3
|
|
12.3 %
|
Total operating
expense
|
1,688.5
|
|
1,687.8
|
|
— %
|
Operating
income
|
210.4
|
|
2.4
|
|
NM
|
Income (loss) before
income taxes
|
160.8
|
|
(60.9)
|
|
364.0 %
|
Net income
(loss)
|
119.6
|
|
(50.0)
|
|
339.2 %
|
Diluted earnings (loss)
per share
|
6.43
|
|
(2.78)
|
|
331.3 %
|
Sunseeker special
charges, net of recoveries (4)
|
4.6
|
|
35.0
|
|
NM
|
Airline special charges
(4)
|
15.2
|
|
0.4
|
|
NM
|
Diluted earnings (loss)
per share excluding special
charges(1)(5)
|
7.22
|
|
(1.16)
|
|
722.4 %
|
Airline
only
|
Nine Months Ended
September 30,
|
|
Percent
Change(2)
|
(unaudited) (in
millions, except per share amounts)
|
2023
|
|
2022
|
|
YoY
|
Airline operating
revenue
|
$
1,898.8
|
|
$
1,690.3
|
|
12.3 %
|
Airline operating
expense (1)
|
1,668.0
|
|
1,645.4
|
|
1.4 %
|
Airline operating
income
|
230.9
|
|
44.9
|
|
414.3 %
|
Airline income (loss)
before income taxes (1)
|
181.9
|
|
(12.5)
|
|
NM
|
Airline net income
(loss) (1)
|
137.3
|
|
(11.0)
|
|
1,348.2 %
|
Airline special charges
(4)
|
15.2
|
|
0.4
|
|
NM
|
Airline net income
(loss), excluding special charges
(1)(3)(6)
|
148.8
|
|
(10.7)
|
|
NM
|
Airline operating
margin, excluding special charges
(1)(6)
|
13.0 %
|
|
2.7 %
|
|
10.3
|
Airline diluted
earnings (loss) per share, excluding special charges
(1)(6)
|
8.00
|
|
(0.59)
|
|
NM
|
|
|
(1)
|
Denotes a non-GAAP
financial measure. Refer to the Non-GAAP Presentation section
within this document for further information and for calculation of
per share figures.
|
(2)
|
Except Airline
operating margin, excluding special charges, which is percentage
point change.
|
(3)
|
Utilizing an
airline-only effective tax rate of 24.5% for 2023 and 12.0% for
2022.
|
(4)
|
In 2023 and 2022, we
recognized as special charges the full amount of estimated property
damage to Sunseeker Resort due to weather and other insured events
less the amount of recognized insurance recoveries through the end
of the applicable period. In 2023 we also recognized accelerated
depreciation as special charges related to our revised fleet plan.
We sometimes refer to these amounts as "specials" in this earnings
release.
|
(5)
|
Adjusted to exclude
the impacts of property damage to Sunseeker Resort, net of
recoveries, and aircraft accelerated depreciation charges resulting
from our revised fleet plan, as described above.
|
(6)
|
Adjusted to exclude
accelerated depreciation charges related to our revised fleet plan,
as described above.
|
NM
|
Not
meaningful
|
*
|
Note that
amounts may not recalculate due to rounding
|
"I am excited to be back in the role of CEO, particularly as the
team continues to deliver strong operational and financial
performance", stated Maurice J. Gallagher,
Jr., chairman and CEO of Allegiant Travel Company. "The
third quarter marked another quarter of airline operating profits,
excluding special charges. Year to date we have delivered
industry-leading financial performance yielding an adjusted
airline-only operating margin of 13 percent. These accomplishments
are directly attributable to Team Allegiant. You are the best in
the industry, and I thank you for all your hard work and
dedication.
"As we move into the fourth quarter, we are all but done with
the completion of Sunseeker Resort. Construction crews are wrapping
up the last details, and we expect the property to open on
December 15. A main driver behind my
endorsement of this property was the quality of the management
team. They have navigated the project from its inception nearly
five years ago and they are world renowned. My conviction around
the success of the property remains strong, and I am thrilled to
begin realizing the benefits that Sunseeker Resort will
provide.
"One of our primary focuses remains on enhancing our brand. The
Allegiant credit card continues to materially impact the bottom
line through new cardholder acquisitions and continued increases in
cardholder spend. Year to date, we have received $88 million in remuneration from our partner,
Bank of America. We expect this number to continue growing. Our
investment in the Allegiant Extra product also continues to surpass
our expectations. Currently 14 aircraft have been retrofitted with
this product and we expect roughly one-third of the fleet to be
retrofitted by the end of 2024. These diversified revenue streams,
coupled with our unique, low-utilization model will continue to
differentiate us from our peers."
"I am proud of the teams' efforts to deliver another profitable
quarter in what is historically our weakest quarter of the year,"
stated Gregory Anderson, president
of Allegiant Travel Company. "Despite fuel costs rising nearly 30
percent intra-quarter, the team delivered an airline-only adjusted
earnings per share of $0.31 driven by
an increase in TRASM of 1.4 percent over the prior year. This
increase in unit revenue was extra impressive given the
unprecedented strength of off-peak leisure demand during the same
period last year. While leisure demand during our peak periods
continues to outperform pre-pandemic levels, we experienced a
return of normalization during the off-peak periods. Our ability to
match capacity with leisure demand trends was nicely put on display
as we reduced capacity by 45 percent during the off-peak period of
September versus the peak season of July.
"We are continuing to strengthen our foundation by reinvesting
back into the airline's future. During the third quarter, we
successfully launched SAP and Navitaire – technology enhancements
that will support our planned growth for years to come.
Furthermore, we have readied ourselves for the delivery of our
first Boeing 737 MAX aircraft in early 2024. This aircraft will
strengthen our flexibility by providing more diversity in fleet
composition further enabling us to deploy the right gauge aircraft
in the right markets at the right times.
"It's an exciting time to be part of Team Allegiant. Several of
our major initiatives will take shape in the coming months. These
initiatives, coupled with our differentiated model, will help drive
the long-term success of the company. This could not be achieved
without the dedication and efforts of our team members throughout
the organization. You are inspiring, and I extend my sincerest
thanks."
Third Quarter 2023 Results and Highlights
- Income before income tax, excluding
specials(1)(3)(4) of $2.7M, yielding a pre-tax margin of 0.5%
- Airline-only income before income tax, excluding
specials(1)(5) of $7.9M, yielding a pre-tax margin of 1.4%
- Operating income, excluding
specials(1)(3)(4) of $14.7M, yielding an operating margin of 2.6%
- Airline-only operating income, excluding
specials(1)(5) of $21.0M, yielding an airline-only operating margin
of 3.7%
- Consolidated EBITDA, excluding
specials(1)(3)(4) of $70.3M, yielding an EBITDA margin of 12.4%
- Airline-only EBITDA, excluding specials(1)(5)
of $76.6M a 13.5% margin
- Total operating revenue of $565.4M, up 0.9% over the prior year and the
highest third-quarter total in company history
- Total fixed fee contracts revenue of $17.7M, up 11.7% year-over-year
- TRASM(2) of 12.78 ¢, up 1.4% year-over-year
on scheduled service capacity decrease of 0.8% year-over-year
- When compared to 2019, we are the only US carrier, among
carriers having reported third quarter results, to be up more than
10 percent in both system available seat miles (ASMs) and
TRASM(2) during the quarter as well as year to
date
- Total average fare of $129.23, up 2.6% year-over-year
- Total average ancillary fare of $71.80, up 11.0% year-over-year
- $88 million in year-to-date
remuneration received from Bank of America, up 26% from
the prior year
- Announced a collaboration with global entertainment icon
Carrie Underwood in support of the
company's Allways Rewards Visa® card and loyalty program
- Allways Rewards program enrolled 478K new members during the quarter, bringing
total members to 16.7M
- Airline-only operating CASM, excluding fuel and special
charges(3), of 8.49 ¢, up 9.5% year-over-year
- Includes $18.7M in incremental
cost related to accrual of pilot retention bonuses
- Excludes $15.2M in accelerated
depreciation related to the early retirement of 21 airframes to be
retired between 2023 through 2025
Year to date 2023 Results
- Income before income tax, excluding
specials(1)(3)(4) of $180.6M yielding a pre-tax margin of
9.5%
- Operating income, excluding
specials(1)(3)(4) of $230.2M, yielding an operating margin
of 12.1%
- Consolidated EBITDA, excluding
specials(1)(3)(4) of $394.4M, yielding an EBITDA margin of 20.8%
(1)
|
Denotes a non-GAAP
financial measure. Refer to the Non-GAAP Presentation section
within this document for further information and for calculation of
per share figures.
|
(2)
|
TRASM represents
total passenger revenue per scheduled service available seat
mile.
|
(3)
|
In 2023 and 2022, we
recognized as special charges the full amount of estimated property
damage to Sunseeker Resort due to weather and other insured events
less the amount of recognized insurance recoveries through the end
of the applicable period. In 2023 we also recognized accelerated
depreciation as special charges related to our revised fleet
plan.
|
(4)
|
Adjusted to exclude
the impacts of property damage to Sunseeker Resort, net of
recoveries, and aircraft accelerated depreciation charges resulting
from our revised fleet plan, as described above.
|
(5)
|
Adjusted to exclude
accelerated depreciation charges related to our revised fleet plan,
as described above.
|
Balance Sheet, Cash and Liquidity
- Total available liquidity at September 30, 2023 was
$1.3B, which included $1.0B in cash and investments, and $279.9M in undrawn revolving credit facilities
and PDP facilities
- $24.5M in cash from
operations during the third quarter 2023
- Total debt at September 30, 2023 was $2.3B
- Net debt at September 30, 2023 was $1.3B
- Secured $412M in financing
commitments during the quarter of which $196M was used to refinance seven Airbus A320
aircraft and $216M is committed to
finance four Boeing 737 MAX aircraft to be delivered in 2024
- Debt principal payments of $143.5M during the third quarter
- Includes $113M prepayment of
aircraft-secured facilities during the quarter
- Year-to-date principal payments of $293M, including a total of $174M in prepayments
- Issued notice to call $150M, 8.5%
senior secured notes with the balance to be paid during the fourth
quarter
- Returned $11M in dividends during
the third quarter
- Air traffic liability at September 30, 2023 was
$395.8M
Airline Capital Expenditures
- Third quarter capital expenditures of $157.6M, which included $112.1M for aircraft purchases and inductions,
pre-delivery deposits, and other related costs, and $45.5M in other airline capital expenditures
- Third quarter deferred heavy maintenance spend was
$13.8M
Sunseeker Resort Charlotte Harbor
- Total capital expenditures(1) as of
September 30, 2023 were $653M
- Third quarter capital expenditures(1)
were $71.6M
- Recorded a special charge, net of insurance recoveries, of
$17.4M during the third quarter 2023
related to estimated property damages at Sunseeker Resort resulting
from various weather events, including Hurricane Idalia
(1)
|
Total capital
expenditures is inclusive of Sunseeker Resort, Aileron Golf
Club, remediation work related to weather and insurance events,
accrued expenditures not yet paid and pre-COVID expenditures
included as part of the COVID impairment. Capitalized interest,
operating expenses, special charges related to COVID, and estimated
losses related to insurance events have been excluded from these
figures.
|
Guidance, subject to
revision
|
|
|
|
|
|
Full-year 2023
guidance
|
|
Previous
|
Current
|
|
|
|
|
System ASMs - year over
year change
|
|
0 to 3%
|
~1.8%
|
Scheduled service
ASMs - year over year change
|
|
0 to 3%
|
~1.5%
|
|
|
|
|
Fuel cost per
gallon
|
|
$
2.90
|
$
3.12
|
Available seat miles
(ASMs)/gallon
|
|
~84
|
~84
|
Depreciation expense
(millions)
|
|
$230 to $235
|
$225 to $230
|
Interest expense
(millions)
|
|
$145 to $150
|
$145 to $150
|
Capitalized interest
(1) (millions)
|
|
($30) to
($35)
|
($40) to
($45)
|
Interest income
(millions)
|
|
$40 to $45
|
$40 to $45
|
Earnings per share -
airline only, excluding specials(2)
|
|
$10.50 -
$13.00
|
$7.75 to
$8.50
|
Loss per share -
Sunseeker, excluding specials (3)
|
|
~($1.25)
|
~($1.75)
|
|
|
|
|
Airline
CAPEX
|
|
|
|
Aircraft, engines,
induction costs, and pre-delivery deposits
(millions)(4)
|
|
$490 to $500
|
$430 to $440
|
Capitalized deferred
heavy maintenance (millions)
|
|
$60 to $70
|
$60 to $70
|
Other airline capital
expenditures (millions)
|
|
$140 to $145
|
$150 to $155
|
|
|
|
|
Recurring principal
payments (millions)
|
|
$210 to $215
|
$150 to $155
|
|
|
|
|
Sunseeker Resort
Charlotte Harbor Project (millions)
|
|
|
|
Total projected
capital expenditures (5)
|
|
$695
|
$720
|
Capital expenditures
funded or expected to be funded by Allegiant
|
|
|
$370
|
Project debt incurred
through September 30, 2023
|
|
|
$350
|
|
|
(1)
|
Includes
capitalized interest related to Sunseeker as well as on
pre-delivery deposits on new aircraft.
|
(2)
|
Earnings per
share calculation is airline only. It includes accruals for
increases in pilot and flight attendant compensation beginning in
May. Actual results will differ based on economic terms agreed upon
and the timing of the collective bargaining agreements. These
differences may be material.
|
(3)
|
Excludes
recoveries that may be received related to business interruption
insurance claim.
|
(4)
|
Excludes
capitalized interest related to pre-delivery deposits on new
aircraft.
|
(5)
|
Total projected
capital expenditures does not reflect the impairment or special
charges related to COVID or insurance claims. Excludes amounts to
remediate physical damage to the property resulting from Hurricane
Ian, or other subsequent insurance events.
|
Aircraft Fleet Plan
by End of Period
|
|
Aircraft - (seats
per AC)
|
1Q23
|
2Q23
|
3Q23
|
YE23
|
A319 (156
seats)
|
35
|
35
|
35
|
35
|
A320 (177
seats)
|
19
|
19
|
19
|
19
|
A320 (180-186
seats)
|
70
|
72
|
73
|
73
|
Total
|
124
|
126
|
127
|
127
|
|
The table above is provided based on the company's
current plans and is subject to change. The numbers exclude
aircraft expected to be delivered before the end of 2023 for
revenue service beginning in 2024.
|
Allegiant Travel Company will host a conference call with
analysts at 12:30 p.m. ET Thursday, November
2, 2023 to discuss its third quarter 2023 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 underserved cities to world-class vacation
destinations with all-nonstop flights and industry-low average
fares. Today, Allegiant 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, expenses and earnings, available seat mile growth,
expected capital expenditures, the cost of fuel, 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 capital
expenditures budget and timing for completion and opening of our
Sunseeker Resort and Aileron Golf Club, 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 of Hurricane Ian on our Florida markets and completion of Sunseeker
Resort, the impact and duration of the COVID-19 pandemic on airline
travel and the economy, 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 impact of government regulations on the airline
industry, the ability to finance aircraft to be acquired, the
ability to obtain necessary 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 impact of
management changes and 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, increases in maintenance
costs, cyclical and seasonal fluctuations in our operating results,
and the perceived acceptability of our environmental, social and
governance efforts.
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
September 30,
|
|
Percent
Change
|
|
2023
|
|
2022
|
|
YoY
|
OPERATING
REVENUES:
|
|
|
|
|
|
Passenger
|
$
516,251
|
|
$
516,476
|
|
— %
|
Third party
products
|
30,944
|
|
27,132
|
|
14.0
|
Fixed fee
contracts
|
17,741
|
|
15,881
|
|
11.7
|
Other
|
423
|
|
836
|
|
(49.4)
|
Total operating
revenues
|
565,359
|
|
560,325
|
|
0.9
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Aircraft
fuel
|
167,861
|
|
208,175
|
|
(19.4)
|
Salaries and
benefits
|
163,004
|
|
137,336
|
|
18.7
|
Station
operations
|
64,630
|
|
66,302
|
|
(2.5)
|
Depreciation and
amortization
|
55,816
|
|
50,092
|
|
11.4
|
Maintenance and
repairs
|
35,477
|
|
32,177
|
|
10.3
|
Sales and
marketing
|
28,468
|
|
25,815
|
|
10.3
|
Aircraft lease
rentals
|
5,906
|
|
5,905
|
|
—
|
Other
|
29,432
|
|
30,292
|
|
(2.8)
|
Special charges, net
of recoveries
|
32,648
|
|
35,142
|
|
(7.1)
|
Total operating
expenses
|
583,242
|
|
591,236
|
|
(1.4)
|
OPERATING
LOSS
|
(17,883)
|
|
(30,911)
|
|
42.1
|
OTHER (INCOME)
EXPENSES:
|
|
|
|
|
|
Interest
expense
|
39,233
|
|
34,242
|
|
14.6
|
Interest
income
|
(12,444)
|
|
(4,918)
|
|
(153.0)
|
Capitalized
interest
|
(14,888)
|
|
(4,296)
|
|
(246.6)
|
Other, net
|
135
|
|
223
|
|
(39.5)
|
Total other
expenses
|
12,036
|
|
25,251
|
|
(52.3)
|
LOSS BEFORE INCOME
TAXES
|
(29,919)
|
|
(56,162)
|
|
46.7
|
INCOME TAX
BENEFIT
|
(4,853)
|
|
(9,703)
|
|
50.0
|
NET LOSS
|
$
(25,066)
|
|
$
(46,459)
|
|
46.0
|
Loss per share to
common shareholders:
|
|
|
|
|
|
Basic
|
($1.44)
|
|
($2.58)
|
|
44.2
|
Diluted
|
($1.44)
|
|
($2.58)
|
|
44.2
|
Weighted average shares
outstanding used in computing earnings per share attributable to
common shareholders(1):
|
|
|
|
|
|
Basic
|
17,721
|
|
18,014
|
|
(1.6)
|
Diluted
|
17,721
|
|
18,014
|
|
(1.6)
|
|
|
(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
reduced basic and diluted earnings per share by $0.03 for 2023 and
did not have a significant impact on the basic and diluted earnings
per share for 2022.
|
Allegiant Travel
Company
|
Airline Operating
Statistics
|
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Percent
Change(1)
|
|
2023
|
|
2022
|
|
YoY
|
AIRLINE OPERATING
STATISTICS
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
Passengers
|
4,292,031
|
|
4,359,417
|
|
(1.5) %
|
Available seat miles
(ASMs) (thousands)
|
4,433,767
|
|
4,450,595
|
|
(0.4)
|
Airline operating
expense per ASM (CASM) (cents)
|
12.62 ¢
|
|
12.43 ¢
|
|
1.5
|
Fuel expense per ASM
(cents)
|
3.79 ¢
|
|
4.68 ¢
|
|
(19.0)
|
Airline operating
CASM, excluding fuel (cents)
|
8.83 ¢
|
|
7.75 ¢
|
|
13.9
|
Departures
|
29,251
|
|
29,432
|
|
(0.6)
|
Block hours
|
67,312
|
|
67,277
|
|
0.1
|
Average stage length
(miles)
|
858
|
|
857
|
|
0.1
|
Average number of
operating aircraft during period
|
126.8
|
|
115.1
|
|
10.2
|
Average block hours
per aircraft per day
|
5.8
|
|
6.4
|
|
(9.4)
|
Full-time equivalent
employees at end of period
|
5,578
|
|
5,285
|
|
5.5
|
Fuel gallons consumed
(thousands)
|
54,320
|
|
54,044
|
|
0.5
|
ASMs per gallon of
fuel
|
81.6
|
|
82.4
|
|
(1.0)
|
Average fuel cost per
gallon
|
$
3.09
|
|
$
3.85
|
|
(19.7)
|
Scheduled service
statistics:
|
|
|
|
|
|
Passengers
|
4,234,196
|
|
4,316,163
|
|
(1.9)
|
Revenue passenger
miles (RPMs) (thousands)
|
3,744,225
|
|
3,820,339
|
|
(2.0)
|
Available seat miles
(ASMs) (thousands)
|
4,280,034
|
|
4,315,984
|
|
(0.8)
|
Load factor
|
87.5 %
|
|
88.5 %
|
|
(1.0)
|
Departures
|
28,040
|
|
28,436
|
|
(1.4)
|
Block hours
|
64,857
|
|
65,182
|
|
(0.5)
|
Average seats per
departure
|
176.8
|
|
175.8
|
|
0.6
|
Yield (cents)
(2)
|
6.49 ¢
|
|
6.92 ¢
|
|
(6.2)
|
Total passenger
revenue per ASM (TRASM) (cents)(3)
|
12.78 ¢
|
|
12.60 ¢
|
|
1.4
|
Average fare -
scheduled service(4)
|
$
57.43
|
|
$
61.26
|
|
(6.3)
|
Average fare -
air-related charges(4)
|
$
64.50
|
|
$
58.40
|
|
10.4
|
Average fare - third
party products
|
$
7.31
|
|
$
6.29
|
|
16.2
|
Average fare -
total
|
$
129.23
|
|
$
125.95
|
|
2.6
|
Average stage length
(miles)
|
864
|
|
860
|
|
0.5
|
Fuel gallons consumed
(thousands)
|
52,491
|
|
52,491
|
|
—
|
Average fuel cost per
gallon
|
$
3.07
|
|
$
3.84
|
|
(20.1)
|
Percent of sales
through website during period
|
95.1 %
|
|
96.1 %
|
|
(1.0)
|
Other
data:
|
|
|
|
|
|
Rental car days
sold
|
335,542
|
|
364,481
|
|
(7.9)
|
Hotel room nights
sold
|
54,447
|
|
71,205
|
|
(23.5)
|
|
|
(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.
|
Allegiant Travel
Company
|
Consolidated
Statements of Income
|
(in thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
Percent
Change
|
|
2023
|
|
2022
|
|
YoY
|
OPERATING
REVENUES:
|
|
|
|
|
|
Passenger
|
$
1,768,274
|
|
$
1,573,041
|
|
12.4 %
|
Third party
products
|
85,886
|
|
77,399
|
|
11.0
|
Fixed fee
contracts
|
43,599
|
|
38,186
|
|
14.2
|
Other
|
1,096
|
|
1,654
|
|
(33.7)
|
Total
operating revenues
|
1,898,855
|
|
1,690,280
|
|
12.3
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Aircraft
fuel
|
520,018
|
|
629,600
|
|
(17.4)
|
Salaries and
benefits
|
499,798
|
|
411,027
|
|
21.6
|
Station
operations
|
192,864
|
|
198,954
|
|
(3.1)
|
Depreciation and
amortization
|
164,430
|
|
145,618
|
|
12.9
|
Maintenance and
repairs
|
95,553
|
|
91,120
|
|
4.9
|
Sales and
marketing
|
85,265
|
|
75,462
|
|
13.0
|
Aircraft lease
rentals
|
18,973
|
|
17,489
|
|
8.5
|
Other
|
91,757
|
|
83,137
|
|
10.4
|
Special charges, net
of recoveries
|
19,828
|
|
35,426
|
|
(44.0)
|
Total
operating expenses
|
1,688,486
|
|
1,687,833
|
|
—
|
OPERATING
INCOME
|
210,369
|
|
2,447
|
|
8,497.0
|
OTHER (INCOME)
EXPENSES:
|
|
|
|
|
|
Interest
expense
|
112,707
|
|
78,530
|
|
43.5
|
Interest
income
|
(34,418)
|
|
(7,909)
|
|
(335.2)
|
Capitalized
interest
|
(28,949)
|
|
(7,594)
|
|
(281.2)
|
Other, net
|
185
|
|
318
|
|
(41.8)
|
Total
other expenses
|
49,525
|
|
63,345
|
|
(21.8)
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
160,844
|
|
(60,898)
|
|
364.1
|
INCOME TAX PROVISION
(BENEFIT)
|
41,292
|
|
(10,916)
|
|
478.3
|
NET INCOME
(LOSS)
|
$
119,552
|
|
$
(49,982)
|
|
339.2
|
Earnings (loss) per
share to common shareholders:
|
|
|
|
|
|
Basic
|
$6.44
|
|
($2.78)
|
|
331.7
|
Diluted
|
$6.43
|
|
($2.78)
|
|
331.3
|
Weighted average shares
outstanding used in computing earnings per share attributable to
common shareholders(1):
|
|
|
|
|
|
Basic
|
17,879
|
|
17,985
|
|
(0.6)
|
Diluted
|
17,913
|
|
17,985
|
|
(0.4)
|
|
|
(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
reduced earnings per share by $0.25 for basic and diluted earnings
per share for 2023, and it did not have a significant impact on the
basic and diluted earnings per share for 2022.
|
Allegiant Travel
Company
|
Operating
Statistics
|
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
Percent
Change(1)
|
|
2023
|
|
2022
|
|
YoY
|
OPERATING
STATISTICS
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
Passengers
|
13,196,465
|
|
12,834,078
|
|
2.8 %
|
Available seat miles
(ASMs) (thousands)
|
14,164,936
|
|
14,060,825
|
|
0.7
|
Airline operating
expense per ASM (CASM)(cents)
|
11.78 ¢
|
|
11.70 ¢
|
|
0.7
|
Fuel expense per ASM
(cents)
|
3.67 ¢
|
|
4.48 ¢
|
|
(18.1)
|
Airline operating
CASM, excluding fuel (cents)
|
8.11 ¢
|
|
7.22 ¢
|
|
12.3
|
Departures
|
90,792
|
|
90,064
|
|
0.8
|
Block hours
|
215,716
|
|
212,403
|
|
1.6
|
Average stage length
(miles)
|
883
|
|
885
|
|
(0.2)
|
Average number of
operating aircraft during period
|
124.7
|
|
112.7
|
|
10.6
|
Average block hours
per aircraft per day
|
6.3
|
|
6.9
|
|
(8.7)
|
Full-time equivalent
employees at end of period
|
5,578
|
|
5,285
|
|
5.5
|
Fuel gallons consumed
(thousands)
|
170,271
|
|
167,070
|
|
1.9
|
ASMs per gallon of
fuel
|
83.2
|
|
84.2
|
|
(1.2)
|
Average fuel cost per
gallon
|
$
3.05
|
|
$
3.77
|
|
(19.1)
|
Scheduled service
statistics:
|
|
|
|
|
|
Passengers
|
13,076,015
|
|
12,736,268
|
|
2.7
|
Revenue passenger
miles (RPMs) (thousands)
|
11,947,986
|
|
11,646,212
|
|
2.6
|
Available seat miles
(ASMs) (thousands)
|
13,778,994
|
|
13,716,838
|
|
0.5
|
Load factor
|
86.7 %
|
|
84.9 %
|
|
1.8
|
Departures
|
87,800
|
|
87,475
|
|
0.4
|
Block hours
|
209,468
|
|
206,868
|
|
1.3
|
Average seats per
departure
|
176.1
|
|
175.7
|
|
0.2
|
Yield (cents)
(2)
|
7.55 ¢
|
|
6.94 ¢
|
|
8.8
|
Total passenger
revenue per ASM (TRASM) (cents)(3)
|
13.46 ¢
|
|
12.03 ¢
|
|
11.9
|
Average fare -
scheduled service(4)
|
$
68.95
|
|
$
63.44
|
|
8.7
|
Average fare -
air-related charges(4)
|
$
66.28
|
|
$
60.07
|
|
10.3
|
Average fare - third
party products
|
$
6.57
|
|
$
6.08
|
|
8.1
|
Average fare -
total
|
$
141.80
|
|
$
129.59
|
|
9.4
|
Average stage length
(miles)
|
889
|
|
889
|
|
—
|
Fuel gallons consumed
(thousands)
|
165,599
|
|
162,933
|
|
1.6
|
Average fuel cost per
gallon
|
$
3.05
|
|
$
3.77
|
|
(19.1)
|
Percent of sales
through website during period
|
95.3 %
|
|
96.2 %
|
|
(0.9)
|
Other
data:
|
|
|
|
|
|
Rental car days
sold
|
1,081,483
|
|
1,161,579
|
|
(6.9)
|
Hotel room nights
sold
|
193,643
|
|
222,334
|
|
(12.9)
|
|
|
(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.
|
Summary Balance
Sheet
|
|
Unaudited
(millions)
|
September 30,
2023 (unaudited)
|
|
December 31,
2022
|
|
Percent
Change
|
Unrestricted cash and
investments
|
|
|
|
|
|
Cash and cash
equivalents
|
$
284.2
|
|
$
230.0
|
|
23.6 %
|
Short-term
investments
|
651.2
|
|
725.1
|
|
(10.2)
|
Long-term
investments
|
71.6
|
|
63.3
|
|
13.1
|
Total unrestricted
cash and investments
|
1,007.0
|
|
1,018.4
|
|
(1.1)
|
Debt
|
|
|
|
|
|
Current maturities of
long-term debt and finance lease obligations, net of related
costs
|
266.0
|
|
152.9
|
|
74.0
|
Long-term debt and
finance lease obligations, net of current maturities and related
costs
|
2,020.0
|
|
1,944.1
|
|
3.9
|
Total debt
|
2,286.0
|
|
2,097.0
|
|
9.0
|
Debt, net of
unrestricted cash and investments
|
1,279.0
|
|
1,078.6
|
|
18.6
|
Total Allegiant Travel
Company shareholders' equity
|
1,343.1
|
|
1,220.7
|
|
10.0
|
EPS Calculation
The following table sets forth the computation of net income 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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Basic:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(25,066)
|
|
$
(46,459)
|
|
$
119,552
|
|
$
(49,982)
|
Less income allocated
to participating securities
|
(452)
|
|
—
|
|
(4,397)
|
|
—
|
Net income (loss)
attributable to common stock
|
$
(25,518)
|
|
$
(46,459)
|
|
$
115,155
|
|
$
(49,982)
|
Earnings (loss) per
share, basic
|
$
(1.44)
|
|
$
(2.58)
|
|
$
6.44
|
|
$
(2.78)
|
Weighted-average shares
outstanding
|
17,721
|
|
18,014
|
|
17,879
|
|
17,985
|
Diluted:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(25,066)
|
|
$
(46,459)
|
|
$
119,552
|
|
$
(49,982)
|
Less income allocated
to participating securities
|
(452)
|
|
—
|
|
(4,389)
|
|
—
|
Net income (loss)
attributable to common stock
|
$
(25,518)
|
|
$
(46,459)
|
|
$
115,163
|
|
$
(49,982)
|
Earnings (loss) per
share, diluted
|
$
(1.44)
|
|
$
(2.58)
|
|
$
6.43
|
|
$
(2.78)
|
Weighted-average shares
outstanding (1)
|
17,721
|
|
18,014
|
|
17,879
|
|
17,985
|
Dilutive effect of
stock options and restricted stock
|
—
|
|
—
|
|
238
|
|
—
|
Adjusted
weighted-average shares outstanding under treasury stock
method
|
17,721
|
|
18,014
|
|
18,117
|
|
17,985
|
Participating
securities excluded under two-class method
|
—
|
|
—
|
|
(204)
|
|
—
|
Adjusted
weighted-average shares outstanding under two-class
method
|
17,721
|
|
18,014
|
|
17,913
|
|
17,985
|
|
|
(1)
|
Dilutive effect of
common stock equivalents excluded from the diluted per share
calculation is not material.
|
Appendix A
Non-GAAP
Presentation
Three and Nine Months Ended September 30,
2023
(Unaudited)
Airline operating expense, airline income before income taxes,
airline net income, and airline diluted earnings per share all
eliminate the effects of non-airline activity as such activity is
not reflective of airline operating performance. We also present
these airline-only metrics excluding special charges related to
accelerated depreciation on early retirement of certain airframes.
Management believes the exclusion of these special charges enhance
comparability of financial information between periods. Airline
earnings before interest, taxes, depreciation and amortization
("Airline EBITDA") eliminates the effects of non-airline operating
activity and other items. As such, all of these are non-GAAP
financial measures. We believe the presentation of these measures
is relevant and useful for investors because it allows them to
better gauge the performance of the airline and to compare our
results to other airlines.
We present both operating expense and CASM excluding aircraft
fuel expense and special charges as fuel price volatility impacts
the comparability of year over year financial performance. We
believe the adjustment for fuel expense allows investors to better
understand our non-fuel costs and related performance.
We present consolidated operating income, EBITDA, and diluted
earnings per share excluding Sunseeker special charges, net of
recoveries, and airline special charges, to exclude the impact of
losses and insurance recoveries incurred primarily as the result of
hurricane and other insured events and accelerated depreciation on
early retirements of certain airframes. Management believes these
measures enhance comparability of financial information between
periods.
EBITDA, EBITDA excluding special charges, and Airline EBITDA
excluding special charges, as presented in this press release, are
supplemental measures of our performance that are not required by,
or presented in accordance with, accounting principles generally
accepted in the United States
("GAAP"). These are not measurements 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 also adjust EBITDA within this
release to exclude non-airline activity and special charges. 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 and Airline EBITDA to evaluate our operating
performance and liquidity, and these are among the primary measures
used by management for planning and forecasting of future periods.
We believe these presentations of EBITDA are relevant and useful
for investors because they allow investors to view results in a
manner similar to the method used by management and make 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 these
adjusted numbers to the most directly comparable GAAP financial
performance measure, which we believe is net income.
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
operating revenue, operating expenses, operating income, income
before income taxes, net income, and net income 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
revenue, operating expenses, operating income, income before income
taxes, net income, net income per share, 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of
net income and earnings per share excluding special charges net of
recoveries (millions except share and per share
numbers)
|
|
|
|
|
|
|
|
Income (loss) before
income taxes as reported (GAAP)
|
$
(29.9)
|
|
$
(56.2)
|
|
$
160.8
|
|
$
(60.9)
|
Special charges, net of
recoveries(4)
|
32.6
|
|
35.1
|
|
19.8
|
|
35.4
|
Income (loss) before
income taxes excluding special charges net of
recoveries(1)
|
2.7
|
|
(21.1)
|
|
180.6
|
|
(25.5)
|
Income tax expense
(benefit) as reported (GAAP)
|
(4.9)
|
|
(9.7)
|
|
41.3
|
|
(10.9)
|
Income tax expense
(benefit) excluding special charges net of
recoveries(1)
|
0.7
|
|
(3.8)
|
|
46.4
|
|
(4.6)
|
Net income (loss)
excluding special charges net of
recoveries(1)
|
2.0
|
|
(17.3)
|
|
134.2
|
|
(20.9)
|
Net (income) allocated
to participating securities excluding special charges net of
recoveries(1)
|
(0.5)
|
|
—
|
|
(4.9)
|
|
—
|
Net income (loss)
attributable to common stock excluding special charges net of
recoveries(1)
|
1.5
|
|
(17.3)
|
|
129.3
|
|
(20.9)
|
|
|
|
|
|
|
|
|
Diluted shares as
reported (GAAP) (thousands)
|
17,721
|
|
18,014
|
|
17,913
|
|
17,985
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share as reported (GAAP)
|
$
(1.44)
|
|
$
(2.58)
|
|
$
6.43
|
|
$
(2.78)
|
Diluted earnings (loss)
per share excluding special charges net of
recoveries(1)
|
$
0.09
|
|
$
(0.96)
|
|
$
7.22
|
|
$
(1.16)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of
airline operating expense, operating income, income before income
taxes, net income excluding special charges
(millions)
|
|
|
|
|
|
|
|
Operating expense as
reported (GAAP)
|
$
583.2
|
|
$
591.2
|
|
$
1,688.5
|
|
$
1,687.8
|
Non-airline operating
expense(1)
|
23.7
|
|
37.8
|
|
20.5
|
|
42.5
|
Airline operating
expense(1)
|
559.5
|
|
553.4
|
|
1,668.0
|
|
1,645.3
|
Airline special
charges(1)(3)
|
15.2
|
|
0.1
|
|
15.2
|
|
0.4
|
Airline operating
expense, excluding special charges(1)(5)
|
$
544.3
|
|
$
553.3
|
|
$
1,652.8
|
|
$
1,644.9
|
|
|
|
|
|
|
|
|
Operating income (loss)
as reported (GAAP)
|
$
(17.9)
|
|
$
(30.9)
|
|
$
210.4
|
|
$
2.4
|
Non-airline operating
(loss)
|
(23.7)
|
|
(37.8)
|
|
(20.5)
|
|
(42.5)
|
Airline special
charges(1)(3)
|
15.2
|
|
0.1
|
|
15.2
|
|
0.4
|
Airline operating
income, excluding special charges(1)(5)
|
$
21.0
|
|
$
7.0
|
|
$
246.1
|
|
$
45.3
|
Airline operating
margin, excluding special charges(1)(5)
|
3.7 %
|
|
1.2 %
|
|
13.0 %
|
|
2.7 %
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes as reported (GAAP)
|
$
(29.9)
|
|
$
(56.2)
|
|
$
160.8
|
|
$
(60.9)
|
Non-airline (loss)
before income taxes(1)
|
(22.6)
|
|
(38.9)
|
|
(21.0)
|
|
(48.4)
|
Airline special
charges(1)(3)
|
15.2
|
|
0.1
|
|
15.2
|
|
0.4
|
Airline income (loss)
before income taxes, excluding special
charges(1)(5)
|
$
7.9
|
|
$
(17.2)
|
|
$
197.0
|
|
$
(12.1)
|
|
|
|
|
|
|
|
|
Net income (loss) as
reported (GAAP)
|
$
(25.1)
|
|
$
(46.5)
|
|
$
119.6
|
|
$
(50.0)
|
Non-airline net
loss(1)
|
(15.8)
|
|
(31.2)
|
|
(14.0)
|
|
(38.9)
|
Airline special
charges(1)(3)
|
15.2
|
|
0.1
|
|
15.2
|
|
0.4
|
Airline net income
(loss), excluding special charges(1)(2)(5)
|
$
5.9
|
|
$
(15.2)
|
|
$
148.8
|
|
$
(10.7)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of
airline diluted earnings per share (millions, unless otherwise
noted)
|
|
|
|
|
|
|
|
Net income (loss) as
reported (GAAP)
|
$
(25.1)
|
|
$
(46.5)
|
|
$
119.6
|
|
$
(50.0)
|
Less: Net income
allocated to participating securities
|
(0.5)
|
|
—
|
|
(4.4)
|
|
—
|
Net income (loss)
attributable to common stock
|
$
(25.6)
|
|
$
(46.5)
|
|
$
115.2
|
|
$
(50.0)
|
|
|
|
|
|
|
|
|
Airline net income,
excluding special charges(1)(2)(5)
|
5.9
|
|
(15.2)
|
|
148.8
|
|
(10.7)
|
Less: Airline net
income allocated to participating securities
|
(0.5)
|
|
—
|
|
(5.5)
|
|
—
|
Airline net income
(loss) attributable to common stock, excluding special
charges(1)(2)(5)
|
$
5.4
|
|
$
(15.2)
|
|
$
143.3
|
|
$
(10.7)
|
|
|
|
|
|
|
|
|
Diluted shares used for
computation - GAAP (thousands)
|
17,721
|
|
18,014
|
|
17,913
|
|
17,985
|
Diluted shares used for
computation - Airline only, excluding special charges
(thousands)(1)
|
17,740
|
|
18,014
|
|
17,913
|
|
17,985
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share as reported (GAAP)
|
$
(1.44)
|
|
$
(2.58)
|
|
$
6.43
|
|
$
(2.78)
|
Airline diluted
earnings (loss) per share, excluding special
charges(1)(5)
|
$
0.31
|
|
$
(0.84)
|
|
$
8.00
|
|
$
(0.59)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of
airline operating CASM excluding fuel and special charges
(millions)
|
|
|
|
|
|
|
|
Consolidated operating
expense (GAAP)
|
$
583.2
|
|
$
591.2
|
|
$
1,688.5
|
|
$
1,687.8
|
Less aircraft fuel
expense
|
167.9
|
|
208.2
|
|
520.0
|
|
629.6
|
Less non-airline
operating expense(1)
|
23.7
|
|
37.8
|
|
20.5
|
|
42.5
|
Less airline special
charges(3)
|
15.2
|
|
0.1
|
|
15.2
|
|
0.4
|
Total airline operating
expense less fuel and airline special
charges(1)(5)
|
$
376.4
|
|
$
345.1
|
|
$
1,132.8
|
|
$
1,015.3
|
|
|
|
|
|
|
|
|
System available seat
miles (millions)
|
4,433.8
|
|
4,450.6
|
|
14,164.9
|
|
14,060.8
|
Cost per available seat
mile (cents)
|
13.15
|
|
13.28
|
|
11.92
|
|
12.00
|
Cost per available seat
mile excluding non-airline expense (cents)
|
12.62
|
|
12.44
|
|
11.78
|
|
11.70
|
Cost per available seat
mile excluding fuel, non-airline expense, and airline special
charges (cents)
|
8.49
|
|
7.75
|
|
8.00
|
|
7.22
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of
operating income excluding special charges
(millions)
|
|
|
|
|
|
|
|
Operating income (loss)
as reported (GAAP)
|
$
(17.9)
|
|
$
(30.9)
|
|
$
210.4
|
|
$
2.4
|
Sunseeker special
charges, net of recoveries(3)
|
17.4
|
|
35.0
|
|
4.6
|
|
35.0
|
Airline special
charges(3)
|
15.2
|
|
0.1
|
|
15.2
|
|
0.4
|
Operating income,
excluding special charges(1)(4)
|
$
14.7
|
|
$
4.2
|
|
$
230.2
|
|
$
37.8
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Consolidated EBITDA
(millions)
|
|
|
|
|
|
|
|
Net income (loss) as
reported (GAAP)
|
$
(25.1)
|
|
$
(46.5)
|
|
$
119.6
|
|
$
(50.0)
|
Interest expense,
net
|
11.9
|
|
25.0
|
|
49.3
|
|
63.0
|
Income tax expense
(benefit)
|
(4.9)
|
|
(9.7)
|
|
41.3
|
|
(10.9)
|
Depreciation and
amortization(5)
|
55.8
|
|
50.1
|
|
164.4
|
|
145.6
|
Consolidated
EBITDA(1)
|
$
37.7
|
|
$
18.9
|
|
$
374.6
|
|
$
147.7
|
|
|
|
|
|
|
|
|
Airline EBITDA,
excluding special charges (millions)
|
|
|
|
|
|
|
|
Net income (loss) as
reported (GAAP)
|
$
(25.1)
|
|
$
(46.5)
|
|
$
119.6
|
|
$
(50.0)
|
Non-airline net
(loss)(1)
|
(19.5)
|
|
(31.3)
|
|
(17.8)
|
|
(38.9)
|
Airline net income
(loss)(1)
|
(5.6)
|
|
(15.2)
|
|
137.4
|
|
(11.1)
|
Airline interest
expense, net(1)
|
13.0
|
|
23.9
|
|
48.8
|
|
57.1
|
Airline income tax
expense (benefit)(1)(2)
|
(1.8)
|
|
(2.1)
|
|
44.6
|
|
(1.5)
|
Airline depreciation
and amortization(1)(5)
|
55.7
|
|
50.1
|
|
164.2
|
|
145.6
|
Airline special
charges(1)(5)
|
15.2
|
|
0.1
|
|
15.2
|
|
0.4
|
Airline EBITDA,
excluding special charges(1)(5)
|
$
76.6
|
|
$
56.8
|
|
$
410.2
|
|
$
190.5
|
|
|
|
|
|
|
|
|
Consolidated EBITDA,
excluding special charges (millions)
|
|
|
|
|
|
|
|
Net income (loss) as
reported (GAAP)
|
$
(25.1)
|
|
$
(46.5)
|
|
$
119.6
|
|
$
(50.0)
|
Interest expense,
net
|
11.9
|
|
25.0
|
|
49.3
|
|
63.0
|
Income tax expense
(benefit)
|
(4.9)
|
|
(9.7)
|
|
41.3
|
|
(10.9)
|
Depreciation and
amortization(5)
|
55.8
|
|
50.1
|
|
164.4
|
|
145.6
|
Special charges, net of
recoveries(3)
|
32.6
|
|
35.1
|
|
19.8
|
|
35.4
|
Consolidated EBITDA,
excluding special charges(1)(4)
|
$
70.3
|
|
$
54.0
|
|
$
394.4
|
|
$
183.1
|
|
|
(1)
|
Denotes non-GAAP
figure.
|
(2)
|
Utilizing an
airline-only effective tax rate of 24.5% for 2023 and 12.0% for
2022.
|
(3)
|
In 2023 and 2022, we
recognized as special charges the full amount of estimated property
damage to Sunseeker Resort due to weather and other insured events
less the amount of recognized insurance recoveries through the end
of the applicable period. In 2023 we also recognized accelerated
depreciation as special charges related to our revised fleet
plan.
|
(4)
|
Adjusted to exclude
the impacts of property damage to Sunseeker Resort, net of
recoveries, and aircraft accelerated depreciation charges resulting
from our revised fleet plan, as described above.
|
(5)
|
Adjusted to exclude
accelerated depreciation charges related to our revised fleet plan,
as described above.
|
*
|
Note that amounts may
not recalculate due to rounding
|
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SOURCE Allegiant Travel Company