LAS VEGAS, July 29, 2020 /PRNewswire/ -- Allegiant
Travel Company (NASDAQ: ALGT) today reported the following
financial results for the second quarter 2020, as well as
comparisons to the prior year:
Consolidated
|
Three Months Ended
June 30,
|
Percent
Change
|
|
Six Months Ended
June 30,
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Total operating
revenue
|
$
|
133.3
|
|
|
$
|
491.8
|
|
(72.9)
|
%
|
|
$
|
542.5
|
|
|
$
|
943.4
|
|
(42.5)
|
%
|
Operating income
(loss)
|
(113.3)
|
|
|
108.1
|
|
(204.8)
|
|
|
(224.3)
|
|
|
199.2
|
|
(212.6)
|
|
Income (loss) before
income taxes
|
(146.4)
|
|
|
91.8
|
|
(259.5)
|
|
|
(277.1)
|
|
|
165.7
|
|
(267.2)
|
|
Net income
(loss)
|
(93.1)
|
|
|
70.5
|
|
(232.0)
|
|
|
(126.1)
|
|
|
127.7
|
|
(198.8)
|
|
Diluted earnings
(loss) per share
|
$
|
(5.85)
|
|
|
$
|
4.33
|
|
(235.1)
|
|
|
$
|
(7.93)
|
|
|
$
|
7.84
|
|
(201.1)
|
|
|
Consolidated -
adjusted
|
Three Months Ended
June 30,
|
Percent
Change
|
|
Six Months Ended
June 30,
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Adjusted operating
income (loss) (1) (2)
|
$
|
(106.6)
|
|
|
$
|
108.1
|
|
(198.6)
|
|
|
$
|
(51.5)
|
|
|
$
|
199.2
|
|
(125.9)
|
|
Adjusted income
(loss) before income taxes(1) (2)
|
(119.9)
|
|
|
91.8
|
|
(230.6)
|
|
|
(77.7)
|
|
|
165.7
|
|
(146.9)
|
|
Adjusted net income
(loss)(1) (2)
|
(94.7)
|
|
|
70.5
|
|
(234.3)
|
|
|
(61.4)
|
|
|
127.7
|
|
(148.1)
|
|
Adjusted diluted
earnings (loss) per share (1) (2)
|
$
|
(5.96)
|
|
|
$
|
4.33
|
|
(237.6)
|
|
|
$
|
(3.87)
|
|
|
$
|
7.84
|
|
(149.4)
|
|
|
Airline
only
|
Three Months Ended
June 30,
|
Percent
Change
|
|
Six Months Ended
June 30,
|
Percent
Change
|
(unaudited)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Airline operating
revenue (millions)(2)
|
$
|
129.0
|
|
|
$
|
486.8
|
|
(73.5)
|
%
|
|
$
|
533.7
|
|
|
$
|
935.1
|
|
(42.9)
|
%
|
Airline operating
income (loss) (millions)(2)
|
(105.4)
|
|
|
115.5
|
|
(191.3)
|
|
|
(54.3)
|
|
|
214.0
|
|
(125.4)
|
|
Airline operating
margin
|
(81.7)
|
%
|
|
23.7
|
%
|
(444.7)
|
|
|
(10.2)
|
%
|
|
22.9
|
%
|
(144.5)
|
|
|
|
|
|
|
|
|
|
|
|
Airline CASM ex fuel
(cents)(2)
|
9.32
|
|
|
5.65
|
|
65.0
|
|
|
7.50
|
|
|
6.00
|
|
25.0
|
|
|
(1) Adjusted to
exclude COVID related special charges, the benefit from the CARES
Act payroll support program, and a portion of the tax benefit
attributable to the CARES Act.
|
(2) Denotes a
non-GAAP financial measure. Refer to the Non-GAAP Presentation
section within this document for further
information.
|
"The second quarter proved to be the most turbulent quarter in
the history of the industry," stated Maurice J. Gallagher, Jr., chairman and CEO of
Allegiant Travel Company. "As the virus spread throughout the
country in March and April, the industry saw an unprecedented
plummet in demand, followed by significant capacity cuts, upwards
of 80 to 90 percent. As cases subsided, demand began trickling back
in, only to begin recessing again with the uptick in cases
beginning late June. It appears demand will continue to ebb and
flow along with fluctuations in reported cases for the foreseeable
future. We have built a unique way to operate our company as
compared to the rest of the industry, which will continue to
sustain us throughout the duration of these uncertain times.
"We are experts when it comes to managing capacity to meet
demand. Our model was built around flexing capacity up and down to
meet differing seasonal demand levels. This quarter proved to be
the ultimate test of the model, and I believe our second quarter
results highlight its inherent strength. Throughout the quarter, we
maintained a very broad network and selling presence, cutting
capacity when it made sense, but also capturing demand when it
returned. We completed the quarter with roughly 50 percent
reductions in capacity, maintaining the broadest schedule of any
domestic carrier. Load factors were just over 50 percent, a
significant step in the right direction from April lows. During the
second quarter, Allegiant passengers accounted for more
than five percent of all TSA screenings conducted. That is
astonishing given our market share. These results are a testament
to our ability to not only manage capacity, but also our ability to
manage cost, further highlighting we are best equipped to react to
these fluctuations in market conditions.
"Although we were able to manage through the chaos of the
quarter, arguably better than most, this environment is
unsustainable long-term. It continues to be of utmost importance to
strengthen liquidity positions. We completed the quarter with an
average daily cash burn of $900
thousand, a 57 percent reduction from our initial forecasts.
June bookings were a significant contributor to this reduction,
with several days in June exceeding prior year booking levels. In
fact, June bookings resulted in cash breakeven for the month of
June. We continued to remain disciplined in regard to cost savings
and successfully cut more than 38 percent of operating expenses
from the quarter. These efforts coupled with funds received related
to the CARES Act as well as executed financing arrangements enabled
us to grow our liquidity position by nearly $200 million to end the quarter with total
liquidity of $663.1 million.
Unfortunately, the strength seen in June has since weakened as case
numbers have risen. I am comfortable the strides made in building
liquidity throughout the quarter will act as a safety net as we
continue to manage the ever-changing demand environment.
"In conclusion, I would like to thank our 4,000 team members for
their continued hard work. These are difficult times, yet our
employees continue to go the extra mile to prioritize the health
and safety of our passengers by performing additional cleaning
procedures on board our aircraft, encouraging social distancing
practices, and exemplifying the principles of our Going the
Distance for Health and Safety program. Although I believe the
effects of this pandemic will linger well into 2021 and possibly
beyond, I firmly believe Allegiant's flexible model and financial
strength will not only sustain us during these uncertain times, but
will ultimately uniquely position us to recover quickly upon a
normalized return of demand."
Covid-19 Responses - Update
- Maintain a comprehensive cleaning program for all
aircraft that includes a regular schedule of standard and
deep-clean procedures that exceed both CDC and Airbus guidance
- Utilize VOC (volatile organic compound) filters on board every
aircraft, which remove additional organic compounds and ensure that
cabin air is changed on average, every three minutes, exceeding
HEPA standards
- Continue to encourage social distancing at check-in,
while waiting at gates, and throughout the boarding process as well
as offer complimentary health and safety kits to each
passenger upon boarding the aircraft
- Treat hard surfaces in all office areas, including airport
station offices, maintenance facilities,
headquarters/administrative offices, with antimicrobial
disinfectant/protectant, and utilize wall-mounted and handheld
thermometers for employee and crew member temperature checks
- Partner with Quest Diagnostics to provide at-home
self-collection COVID-19 test kits to employees in the event
local testing is not immediately available
- Effective July 2, require
customers and crew members to wear face coverings through all
phases of travel, including at the ticket counter, in the gate
area, and during flight
- Offer opt-in option in the booking path for customers to
receive notification that their flight has reached 65 percent
capacity with option to re-book on another flight with no fee or
receive a refund
- Continue to waive change and cancellation fees for all
customers for future travel as well as extend expiry on credit
vouchers to two years
-
- $80.7 million in cash refunds
have been provided year to date
- Reduced management and support teams by 220 positions, a
20 percent reduction of those work groups
-
- Employees will be paid through September
30, 2020, in compliance with the CARES Act
Second Quarter 2020 Results
- Reported adjusted loss per share of $5.96, which excludes one-time, non-recurring
charges, as detailed in the section below titled "COVID-19 Related
Special Charges", the benefit from the CARES Act payroll support
program, and a portion of the tax benefit attributable to the CARES
Act
- Completed the quarter with load factor in the month of
June of 56.8 percent, up 38 points from April
- Total revenue for the quarter was $133.3 million, down 72.9 percent year over
year
-
- Progressive improvement in revenue throughout the quarter with
April, May, and June decreases of 95 percent, 75 percent, and 52
percent, respectively
- Despite yield pressure, average air ancillary revenue per
passenger for the quarter was $51.57, remaining consistent with prior year
- Total operating expense was $246.6 million, down 35.7 percent year over year
on reduced capacity of 50.1 percent
-
- Total operating expense, excluding one-time, non-recurring
charges noted below and excluding the benefit related to CARES Act
payroll support, was $240.0 million,
down 37.5 percent
Network
- Reduced second quarter capacity by 50.1 percent
-
- Anticipate third quarter capacity reductions to be 25
percent of planned capacity but will adjust in accordance with
demand trends
- Conducted minimal close-in cancellations for the months
of June and July to date
COVID-19 Related Special Charges
- Recognized total special charges related to COVID-19 of
$101 million during the second
quarter
-
- $81.2 million included as an
operating expense and $19.8 million
included as other non-operating expense
- $59 million adjustment resulting
from the accelerated retirements of seven aircraft, loss on
sale leaseback transaction of four A320 series aircraft, and
write-off of other aircraft related assets
- $10 million adjustment for
additional salary and benefits expense in relation to the
elimination of 220 positions as well as other non-recurring
compensation expense associated with the acceleration of certain
existing awards
-
- Total cash outlay is expected to be only $1.5 million of the $10
million adjustment
- $5 million impairment loss
related to an investment interest held by the company since
2018
- $2 million write-down on
various non-aircraft assets
- $20 million accrual on the
expectation to terminate the loan agreement with Sixth Street
Partners (formerly TSSP) intended to finance the development
of Sunseeker Resorts Charlotte Harbor
-
- Expected to be paid throughout the remainder of the year
- $5 million related to
suspension of construction at Sunseeker
CARES Act
- Received $154.7 million of the
$171.9 million Payroll Support
Program grant in the quarter
-
- Remaining $17.2 million to be
received in July
- Received $17.4 million in loan
funds (recorded as debt and warrants) related to the
$154.7 million received
-
- Expense offset recognized during the second quarter
related to the grant was $74.5
million
- Remaining $62.8 million recorded
as an accrued liability to be relieved during the third
quarter
- Future expense offset of roughly $75 million to be recognized during the third
quarter
- $45.6 million of federal income
tax refunds related to net operating losses from 2018 and
2019 were received in May
-
- Additional $48.7 million received
during July
- Expect a federal income tax refund in excess of
$125 million related to 2020 net
operating losses to be received during the first half of 2021
- Eligible to receive up to $276
million loan under the CARES Act
Balance Sheet, Cash and Liquidity
- Total cash and investments at June 30th was $663.1 million
- Entered into a sale leaseback transaction on
June 23, which included the sale of
four A320-series aircraft, generating $48
million
- Further sources of liquidity received during the third
quarter around $65.9 million,
including:
-
- Federal income tax refund of $48.7
million related to net operating losses from 2018
- Additional payroll support related to the CARES Act of
$17.2 million
- Federal excise tax refund of $21
million related to net refunds issued during 2020 is
expected during the second half of the year
- Evaluating option to access up to a $276 million loan available through the CARES
Act as well as other secured financing options available
- 2Q20 daily cash burn averaged $900 thousand per day (1)
-
- 57 percent reduction from initial expectations of $2.1 million as reported in our first quarter
earnings release
- Gross bookings averaged more than $2.5
million per day during the quarter
- 3Q20 daily cash burn is expected to be slightly above
$1 million assuming gross bookings
average roughly $2 million per
day
-
- Includes a portion of the $20
million accrual related to expectation to terminate the loan
agreement with Sixth Street Partners
- 24 unencumbered aircraft and 10 unencumbered spare
engines with approximate market values of $387 million
- Air traffic liability at June
30th was $355
million
-
- Balance related to future scheduled flights is $139 million
- Balance related to travel vouchers issued for future use is
$216 million
(1) Daily cash burn defined as cash from operations less debt
and rent payments and capital expenditure outflows excluding
aircraft and engine acquisitions as they are expected to be
financed. Excludes impact of CARES Act Payroll Support Program
funding.
Capital Expenditures
- Remaining 2020 spend related to capital expenditures is
roughly $165 million
-
- Includes five previously executed purchase commitments for
aircraft during 2020, all of which are intended to be financed
- Reduced Sunseeker capital expenditures by $300 million for the year
- Reduced full year heavy maintenance spend by roughly
$70 million, compared to initial
guidance of $120 million
-
- Six planned aircraft retirements within the next ten months and
one additional retirement within the next three years
- Five planned CFM-engine retirements
Allegiant Travel Company will host a conference call with
analysts at 4:30 p.m. ET Wednesday,
July 29 to discuss its second quarter 2020 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.
As a result of the COVID-19 pandemic, we will hold this year's
annual stockholders meeting on Tuesday,
August 4, 2020.
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 premier leisure
experiences - from vacations to hometown family entertainment.
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 all-Airbus fleet serves communities
across the nation, with base airfares less than half the cost of
the average domestic roundtrip 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 and
capacity, the efficacy of cost saving measures, future
expenditures, our ability to access additional funds from the
Treasury, cash burn, the timing of aircraft
acquisitions and retirements, aircraft financings,
expected capital expenditures, 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, 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 under contract,
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 and finance 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
|
|
2020
|
|
2019
|
|
change
|
OPERATING
REVENUE:
|
|
|
|
|
|
Passenger
revenue
|
$
|
116,520
|
|
|
$
|
454,779
|
|
|
(74.4)
|
|
Third party
products
|
8,443
|
|
|
18,208
|
|
|
(53.6)
|
|
Fixed fee contract
revenue
|
3,237
|
|
|
12,487
|
|
|
(74.1)
|
|
Other
revenue
|
5,147
|
|
|
6,285
|
|
|
(18.1)
|
|
Total operating
revenue
|
133,347
|
|
|
491,759
|
|
|
(72.9)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Salary and
benefits
|
94,790
|
|
|
113,592
|
|
|
(16.6)
|
|
Depreciation and
amortization
|
43,296
|
|
|
38,494
|
|
|
12.5
|
|
Aircraft
fuel
|
27,358
|
|
|
119,987
|
|
|
(77.2)
|
|
Station
operations
|
27,405
|
|
|
45,870
|
|
|
(40.3)
|
|
Maintenance and
repairs
|
13,032
|
|
|
20,877
|
|
|
(37.6)
|
|
Sales and
marketing
|
8,909
|
|
|
20,540
|
|
|
(56.6)
|
|
Aircraft lease
rental
|
1,427
|
|
|
—
|
|
|
NM
|
Other
|
23,752
|
|
|
24,294
|
|
|
(2.2)
|
|
CARES Act grant
recognition
|
(74,539)
|
|
|
—
|
|
|
NM
|
Special
charges
|
81,169
|
|
|
—
|
|
|
NM
|
Total operating
expense
|
246,599
|
|
|
383,654
|
|
|
(35.7)
|
|
OPERATING INCOME
(LOSS)
|
(113,252)
|
|
|
108,105
|
|
|
(204.8)
|
|
OTHER (INCOME)
EXPENSE:
|
|
|
|
|
|
Interest
expense
|
14,053
|
|
|
20,942
|
|
|
(32.9)
|
|
Capitalized
interest
|
—
|
|
|
(1,038)
|
|
|
NM
|
|
Interest
income
|
(1,417)
|
|
|
(3,502)
|
|
|
(59.5)
|
|
Special
charges
|
19,830
|
|
|
—
|
|
|
NM
|
Other, net
|
698
|
|
|
(86)
|
|
|
(911.6)
|
|
Total other
expense
|
33,164
|
|
|
16,316
|
|
|
103.3
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
(146,416)
|
|
|
91,789
|
|
|
(259.5)
|
|
INCOME TAX PROVISION
(BENEFIT)
|
(53,313)
|
|
|
21,246
|
|
|
(350.9)
|
|
NET INCOME
(LOSS)
|
$
|
(93,103)
|
|
|
$
|
70,543
|
|
|
(232.0)
|
|
Earnings (loss) per
share attributable to common shareholders(1):
|
|
|
|
|
|
Basic
|
($5.85)
|
|
|
$4.33
|
|
|
(235.1)
|
|
Diluted
|
($5.85)
|
|
|
$4.33
|
|
|
(235.1)
|
|
Weighted average
shares outstanding used in computing earnings per
share attributable to common shareholders(1):
|
|
|
|
|
|
Basic
|
15,902
|
|
|
16,063
|
|
|
(1.0)
|
|
Diluted
|
15,902
|
|
|
16,069
|
|
|
(1.0)
|
|
|
NM - Not
meaningful
|
(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.
|
Allegiant Travel
Company
|
Operating
Statistics
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Percent
|
|
2020
|
|
2019
|
|
change (1)
|
OPERATING
STATISTICS
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
Passengers
|
1,273,258
|
|
|
4,169,536
|
|
|
(69.5)
|
|
Available seat miles
(ASMs) (thousands)
|
2,220,755
|
|
|
4,447,066
|
|
|
(50.1)
|
|
Airline operating
expense per ASM (CASM) (cents)
|
10.55
|
|
|
8.35
|
|
|
26.3
|
|
Adjusted airline
operating expense per ASM (CASM) (cents)
|
10.49
|
|
|
8.35
|
|
|
25.6
|
|
Fuel expense per ASM
(cents)
|
1.23
|
|
|
2.70
|
|
|
(54.4)
|
|
Airline operating
CASM, excluding fuel (cents)
|
9.32
|
|
|
5.65
|
|
|
65.0
|
|
Adjusted airline
operating CASM, excluding fuel (cents)
|
9.26
|
|
|
5.65
|
|
|
63.9
|
|
ASMs per gallon of
fuel
|
90.0
|
|
|
82.3
|
|
|
9.4
|
|
Departures
|
15,089
|
|
|
30,547
|
|
|
(50.6)
|
|
Block
hours
|
32,989
|
|
|
68,332
|
|
|
(51.7)
|
|
Average stage length
(miles)
|
850
|
|
|
853
|
|
|
(0.4)
|
|
Average number of
operating aircraft during period
|
90.7
|
|
|
85.0
|
|
|
6.7
|
|
Average block hours
per aircraft per day
|
3.8
|
|
|
8.8
|
|
|
(56.8)
|
|
Full-time equivalent
employees at end of period
|
4,349
|
|
|
4,179
|
|
|
4.1
|
|
Fuel gallons consumed
(thousands)
|
24,664
|
|
|
54,064
|
|
|
(54.4)
|
|
Average fuel cost per
gallon
|
$
|
1.11
|
|
|
$
|
2.22
|
|
|
(50.0)
|
|
Scheduled service
statistics:
|
|
|
|
|
|
Passengers
|
1,266,077
|
|
|
4,131,855
|
|
|
(69.4)
|
|
Revenue passenger
miles (RPMs) (thousands)
|
1,107,534
|
|
|
3,603,076
|
|
|
(69.3)
|
|
Available seat miles
(ASMs) (thousands)
|
2,174,683
|
|
|
4,311,182
|
|
|
(49.6)
|
|
Load
factor
|
50.9
|
%
|
|
83.6
|
%
|
|
(32.7)
|
|
Departures
|
14,683
|
|
|
29,567
|
|
|
(50.3)
|
|
Block
hours
|
32,248
|
|
|
66,135
|
|
|
(51.2)
|
|
Total passenger
revenue per ASM (TRASM) (cents)(2)
|
5.75
|
|
|
10.97
|
|
|
(47.6)
|
|
Average fare - total
scheduled service(3)
|
$
|
40.46
|
|
|
$
|
58.39
|
|
|
(30.7)
|
|
Average fare -
air-related charges(3)
|
$
|
51.57
|
|
|
$
|
51.68
|
|
|
(0.2)
|
|
Average fare - third
party products
|
$
|
6.67
|
|
|
$
|
4.40
|
|
|
51.6
|
|
Average fare -
total
|
$
|
98.70
|
|
|
$
|
114.47
|
|
|
(13.8)
|
|
Average stage length
(miles)
|
855
|
|
|
853
|
|
|
0.2
|
|
Fuel gallons consumed
(thousands)
|
24,124
|
|
|
52,327
|
|
|
(53.9)
|
|
Average fuel cost per
gallon
|
$
|
1.08
|
|
|
$
|
2.22
|
|
|
(51.4)
|
|
Percent of sales
through website during period
|
93.8
|
%
|
|
93.5
|
%
|
|
0.3
|
|
Other
data:
|
|
|
|
|
|
Rental car days
sold
|
135,536
|
|
|
540,960
|
|
|
(74.9)
|
|
Hotel room nights
sold
|
12,772
|
|
|
114,191
|
|
|
(88.8)
|
|
|
(1) Except load
factor and percent of sales through website, which is percentage
point change.
|
(2) 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.
|
(3) 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)
|
|
|
Six Months Ended
June 30,
|
|
Percent
|
|
2020
|
|
2019
|
|
change
|
OPERATING
REVENUE:
|
|
|
|
|
|
Passenger
revenue
|
$
|
495,431
|
|
|
$
|
874,755
|
|
|
(43.4)
|
|
Third party
products
|
24,419
|
|
|
35,350
|
|
|
(30.9)
|
|
Fixed fee contract
revenue
|
12,156
|
|
|
23,061
|
|
|
(47.3)
|
|
Other
revenue
|
10,522
|
|
|
10,215
|
|
|
3.0
|
|
Total operating
revenue
|
542,528
|
|
|
943,381
|
|
|
(42.5)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Salary and
benefits
|
207,436
|
|
|
233,003
|
|
|
(11.0)
|
|
Aircraft
fuel
|
116,171
|
|
|
219,670
|
|
|
(47.1)
|
|
Depreciation and
amortization
|
86,995
|
|
|
74,676
|
|
|
16.5
|
|
Station
operations
|
68,405
|
|
|
84,835
|
|
|
(19.4)
|
|
Maintenance and
repairs
|
34,827
|
|
|
43,701
|
|
|
(20.3)
|
|
Sales and
marketing
|
27,364
|
|
|
41,466
|
|
|
(34.0)
|
|
Aircraft lease
rentals
|
2,389
|
|
|
—
|
|
|
NM
|
Other
|
50,468
|
|
|
46,849
|
|
|
7.7
|
|
CARES Act grant
recognition
|
(74,539)
|
|
|
—
|
|
|
NM
|
Special
charges
|
247,267
|
|
|
—
|
|
|
NM
|
Total operating
expense
|
766,783
|
|
|
744,200
|
|
|
3.0
|
|
OPERATING INCOME
(LOSS)
|
(224,255)
|
|
|
199,181
|
|
|
(212.6)
|
|
OTHER (INCOME)
EXPENSE:
|
|
|
|
|
|
Interest
expense
|
32,206
|
|
|
39,025
|
|
|
(17.5)
|
|
Capitalized
interest
|
(4,067)
|
|
|
(2,541)
|
|
|
60.1
|
|
Interest
income
|
(3,728)
|
|
|
(6,703)
|
|
|
(44.4)
|
|
Loss on
extinguishment of debt
|
1,222
|
|
|
3,677
|
|
|
(66.8)
|
|
Special
charges
|
26,632
|
|
|
—
|
|
|
NM
|
Other, net
|
623
|
|
|
15
|
|
|
4,053.3
|
|
Total other
expense
|
52,888
|
|
|
33,473
|
|
|
58.0
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
(277,143)
|
|
|
165,708
|
|
|
(267.2)
|
|
INCOME TAX PROVISION
(BENEFIT)
|
(151,030)
|
|
|
38,041
|
|
|
(497.0)
|
|
NET INCOME
(LOSS)
|
$
|
(126,113)
|
|
|
$
|
127,667
|
|
|
(198.8)
|
|
Earnings (loss) per
share attributable to common shareholders(1):
|
|
|
|
|
|
Basic
|
($7.93)
|
|
|
$7.85
|
|
|
(201.0)
|
|
Diluted
|
($7.93)
|
|
|
$7.84
|
|
|
(201.1)
|
|
Weighted average
shares outstanding used in computing earnings per
share attributable to common shareholders(1):
|
|
|
|
|
|
Basic
|
15,927
|
|
|
16,037
|
|
|
(0.7)
|
|
Diluted
|
15,927
|
|
|
16,050
|
|
|
(0.8)
|
|
|
NM - Not
meaningful
|
(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.
|
Allegiant Travel
Company
|
Operating
Statistics
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
Percent
|
|
2020
|
|
2019
|
|
change(1)
|
OPERATING
STATISTICS
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
Passengers
|
4,448,708
|
|
|
7,619,814
|
|
|
(41.6)
|
|
Available seat miles
(ASMs) (thousands)
|
6,288,427
|
|
|
8,357,304
|
|
|
(24.8)
|
|
Airline operating
expense per ASM (CASM) (cents)
|
9.35
|
|
|
8.63
|
|
|
8.3
|
|
Adjusted airline
operating expense per ASM (CASM) (cents)
|
9.18
|
|
|
8.63
|
|
|
6.4
|
|
Fuel expense per ASM
(cents)
|
1.85
|
|
|
2.63
|
|
|
(29.7)
|
|
Airline operating
CASM, excluding fuel (cents)
|
7.50
|
|
|
6.00
|
|
|
25.0
|
|
Adjusted airline
operating CASM, excluding fuel (cents)
|
7.33
|
|
|
6.00
|
|
|
22.2
|
|
ASMs per gallon of
fuel
|
87.2
|
|
|
83.1
|
|
|
4.9
|
|
Departures
|
41,401
|
|
|
55,747
|
|
|
(25.7)
|
|
Block
hours
|
95,112
|
|
|
128,151
|
|
|
(25.8)
|
|
Average stage length
(miles)
|
879
|
|
|
876
|
|
|
0.3
|
|
Average number of
operating aircraft during period
|
92.1
|
|
|
82.3
|
|
|
11.9
|
|
Average block hours
per aircraft per day
|
5.5
|
|
|
8.6
|
|
|
(36.0)
|
|
Full-time equivalent
employees at end of period
|
4,349
|
|
|
4,179
|
|
|
4.1
|
|
Fuel gallons consumed
(thousands)
|
72,143
|
|
|
100,537
|
|
|
(28.2)
|
|
Average fuel cost per
gallon
|
$
|
1.61
|
|
|
$
|
2.18
|
|
|
(26.1)
|
|
Scheduled service
statistics:
|
|
|
|
|
|
Passengers
|
4,420,683
|
|
|
7,553,393
|
|
|
(41.5)
|
|
Revenue passenger
miles (RPMs) (thousands)
|
4,033,017
|
|
|
6,794,122
|
|
|
(40.6)
|
|
Available seat miles
(ASMs) (thousands)
|
6,138,692
|
|
|
8,113,315
|
|
|
(24.3)
|
|
Load
factor
|
65.7
|
%
|
|
83.7
|
%
|
|
(18.0)
|
|
Departures
|
40,167
|
|
|
53,911
|
|
|
(25.5)
|
|
Block
hours
|
92,594
|
|
|
124,098
|
|
|
(25.4)
|
|
Total passenger
revenue per ASM (TRASM) (cents)(2)
|
8.47
|
|
|
11.22
|
|
|
(24.5)
|
|
Average fare -
scheduled service(3)
|
$
|
57.27
|
|
|
$
|
63.49
|
|
|
(9.8)
|
|
Average fare -
air-related charges(3)
|
$
|
54.80
|
|
|
$
|
52.32
|
|
|
4.7
|
|
Average fare - third
party products
|
$
|
5.52
|
|
|
$
|
4.68
|
|
|
17.9
|
|
Average fare -
total
|
$
|
117.59
|
|
|
$
|
120.49
|
|
|
(2.4)
|
|
Average stage length
(miles)
|
883
|
|
|
878
|
|
|
0.6
|
|
Fuel gallons consumed
(thousands)
|
70,229
|
|
|
97,395
|
|
|
(27.9)
|
|
Average fuel cost per
gallon
|
$
|
1.60
|
|
|
$
|
2.18
|
|
|
(26.6)
|
|
Percent of sales
through website during period
|
93.7
|
%
|
|
93.5
|
%
|
|
0.2
|
|
Other
data:
|
|
|
|
|
|
Rental car days
sold
|
616,582
|
|
|
1,012,558
|
|
|
(39.1)
|
|
Hotel room nights
sold
|
104,776
|
|
|
219,206
|
|
|
(52.2)
|
|
|
(1) Except load
factor and percent of sales through website, which is percentage
point change.
|
(2) 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.
|
(3) Reflects
division of passenger revenue between scheduled service and
air-related charges in Company's booking path.
|
Summary Balance
Sheet
|
Unaudited
(millions)
|
June 30,
2020 (unaudited)
|
|
December 31,
2019
|
|
Percent
Change
|
|
|
|
|
|
|
Unrestricted cash and
investments
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
272.2
|
|
|
$
|
121.9
|
|
|
123.3
|
%
|
Short-term
investments
|
390.9
|
|
|
335.9
|
|
|
16.4
|
|
Long-term
investments
|
—
|
|
|
15.5
|
|
|
(100.0)
|
|
Total unrestricted
cash and investments
|
663.1
|
|
|
473.3
|
|
|
40.1
|
|
Debt
|
|
|
|
|
|
Current maturities of
long-term debt and finance lease obligations, net of
related costs
|
227.7
|
|
|
173.3
|
|
|
31.4
|
|
Long-term debt and
finance lease obligations, net of current maturities and related
costs
|
1,273.4
|
|
|
1,248.6
|
|
|
2.0
|
|
Total debt
|
1,501.1
|
|
|
1,421.9
|
|
|
5.6
|
|
Total Allegiant
Travel Company shareholders' equity
|
736.6
|
|
|
883.6
|
|
|
(16.6)
|
|
Summary Cash
Flow
|
|
Six Months Ended
June 30,
|
|
Percent
|
Unaudited
(millions)
|
2020
|
|
2019
|
|
Change
|
Cash provided by
operating activities
|
$
|
276.7
|
|
|
$
|
277.5
|
|
|
(0.3)
|
%
|
Changes in air
traffic liability
|
104.8
|
|
|
54.8
|
|
|
91.2
|
|
Changes in working
capital, ex air traffic liability
|
(134.1)
|
|
|
(21.3)
|
|
|
529.6
|
|
Purchase of property
and equipment, including capitalized interest
|
170.7
|
|
|
234.5
|
|
|
(27.2)
|
|
Cash dividends paid
to shareholders
|
11.4
|
|
|
22.8
|
|
|
(50.0)
|
|
Proceeds from the
issuance of long-term debt
|
175.7
|
|
|
770.4
|
|
|
(77.2)
|
|
Principal payments on
long-term debt & finance lease obligations
|
98.2
|
|
|
522.6
|
|
|
(81.2)
|
|
Daily Cash Burn
Reconciliation
|
|
Daily cash burn
defined as cash from operations less debt and rent payments and
capital expenditure outflows, excluding
aircraft and engine acquisitions. Excludes the impact of the CARES
Act Payroll Support Program funding.
|
|
Unaudited
(millions)
|
|
Three Months
Ended
June 30, 2020
|
Cash from
operations
|
|
170
|
|
|
|
Adjustments:
|
|
|
Debt and rent payments
|
|
35
|
CARES Act payroll support
|
|
137
|
Federal tax refund received for net operating losses
|
|
45
|
Rate differential of net operating loss included in net
loss
|
|
18
|
Capital expenditures, excluding airframes and engines
|
|
17
|
Total
adjustments
|
|
252
|
|
|
|
Adjusted cash
burn
|
|
(82)
|
Days in
period
|
|
91
|
Average daily cash
burn
|
|
0.9
|
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,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Basic:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(93,103)
|
|
|
$
|
70,543
|
|
|
$
|
(126,113)
|
|
|
$
|
127,667
|
|
Less income allocated
to participating securities
|
—
|
|
|
(997)
|
|
|
(236)
|
|
|
(1,791)
|
|
Net income (loss)
attributable to common stock
|
$
|
(93,103)
|
|
|
$
|
69,546
|
|
|
$
|
(126,349)
|
|
|
$
|
125,876
|
|
Earnings (loss) per
share, basic
|
$
|
(5.85)
|
|
|
$
|
4.33
|
|
|
$
|
(7.93)
|
|
|
$
|
7.85
|
|
Weighted-average
shares outstanding
|
15,902
|
|
|
16,063
|
|
|
15,927
|
|
|
16,037
|
|
Diluted:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(93,103)
|
|
|
$
|
70,543
|
|
|
$
|
(126,113)
|
|
|
$
|
127,667
|
|
Less income allocated
to participating securities
|
—
|
|
|
(996)
|
|
|
(236)
|
|
|
(1,790)
|
|
Net income (loss)
attributable to common stock
|
$
|
(93,103)
|
|
|
$
|
69,547
|
|
|
$
|
(126,349)
|
|
|
$
|
125,877
|
|
Earnings (loss) per
share, diluted
|
$
|
(5.85)
|
|
|
$
|
4.33
|
|
|
$
|
(7.93)
|
|
|
$
|
7.84
|
|
Weighted-average
shares outstanding
|
15,902
|
|
|
16,063
|
|
|
15,927
|
|
|
16,037
|
|
Dilutive effect of
stock options and restricted stock
|
26
|
|
|
39
|
|
|
56
|
|
|
39
|
|
Adjusted
weighted-average shares outstanding under treasury stock
method
|
15,928
|
|
|
16,102
|
|
|
15,983
|
|
|
16,076
|
|
Participating
securities excluded under two-class method
|
(26)
|
|
|
(33)
|
|
|
(56)
|
|
|
(26)
|
|
Adjusted
weighted-average shares outstanding under two-class
method
|
15,902
|
|
|
16,069
|
|
|
15,927
|
|
|
16,050
|
|
Appendix A
Non-GAAP
Presentation
Three and Six Months Ended June 30, 2020 and
2019
(Unaudited)
Adjusted operating income, adjusted income before income taxes,
adjusted net income and adjusted diluted earnings per share (also
referred to as consolidated fully diluted loss per share, excluding
COVID related special charges and benefit from the CARES Act), all
eliminate the effect of special expenses, related directly to COVID
19, as well as the benefit related to the payroll support grant as
provided under the CARES Act, which is not reflective of our
ongoing operating performance. The adjusted diluted earnings per
share also ignores a one-time tax benefit allowed under the CARES
Act. As such, all of these are non-GAAP financial
measures.
In addition, airline operating revenue, airline operating
income, airline income before income taxes, airline net income and
airline operating expense all eliminate the effects of non-airline
operating activity, which is not reflective of the airline
operating performance. 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.
EBITDA, as presented in this press release, and the various
adjusted and airline only metrics disclosed, 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"). They
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 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 it is among the primary measures used by management
for planning and forecasting of future periods. We believe the
presentation of this measure 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. We believe the presentation of
EBITDA and the various adjusted and airline only measures are
relevant and useful for investors because they allow them to
better gauge the performance of the airline and to 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 losses on impairment, Sunseeker
calculation of net income/(loss), stock compensation expense,
amortization of debt issuance costs, (gain)/loss on disposal of
assets, tax provision - in excess of cash paid, and special
non-recurring 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
operating revenue, operating income, net income, operating
expenses, and diluted earnings 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, net income 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,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
adjusted operating income (loss)
(millions)
|
|
|
|
|
|
|
|
Operating income
(loss) as reported (GAAP)
|
$
|
(113.3)
|
|
|
$
|
108.1
|
|
|
$
|
(224.3)
|
|
|
$
|
199.2
|
|
|
|
|
|
|
|
|
|
CARES Act grant
recognition
|
(74.5)
|
|
|
—
|
|
|
(74.5)
|
|
|
—
|
|
Special charges
(operating):
|
|
|
|
|
|
|
|
COVID-19 related
expenses
|
76.2
|
|
|
—
|
|
|
85.7
|
|
|
—
|
|
Impairment of assets
(non-cash)
|
5.0
|
|
|
—
|
|
|
161.6
|
|
|
—
|
|
Adjusted operating
income (loss) (1)
|
(106.6)
|
|
|
108.1
|
|
|
(51.5)
|
|
|
199.2
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
adjusted income (loss) before
income taxes (millions)
|
|
|
|
|
|
|
|
Income (loss) before
income taxes as reported (GAAP)
|
$
|
(146.4)
|
|
|
$
|
91.8
|
|
|
$
|
(277.1)
|
|
|
$
|
165.7
|
|
|
|
|
|
|
|
|
|
CARES Act grant
recognition
|
(74.5)
|
|
|
—
|
|
|
(74.5)
|
|
|
—
|
|
Special
charges:
|
|
|
|
|
|
|
|
COVID-19 related
expenses
|
96.0
|
|
|
—
|
|
|
105.5
|
|
|
—
|
|
Impairment of assets
(non-cash)
|
5.0
|
|
|
—
|
|
|
168.4
|
|
|
—
|
|
Adjusted income
(loss) before income taxes (1)
|
(119.9)
|
|
|
91.8
|
|
|
(77.7)
|
|
|
165.7
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
adjusted net income (loss) (millions)
and adjusted earnings (loss) per share (cents)
|
|
|
|
|
|
|
|
Adjusted income
(loss) before income taxes (per calculation in previous table)
(1)
|
$
|
(119.9)
|
|
|
$
|
91.8
|
|
|
$
|
(77.7)
|
|
|
$
|
165.7
|
|
Provision (benefit)
for income taxes as reported (GAAP)
|
(53.3)
|
|
|
21.3
|
|
|
(151.0)
|
|
|
38.0
|
|
Adjusted provision
(benefit) for income taxes (1) (2)
|
(25.2)
|
|
|
21.3
|
|
|
(16.3)
|
|
|
38.0
|
|
Net income (loss)
adjusted for special items, CARES Act grant, and for tax
(1)
|
(94.7)
|
|
|
70.5
|
|
|
(61.4)
|
|
|
127.7
|
|
|
|
|
|
|
|
|
|
Diluted shares as
reported (GAAP)
|
15,902
|
|
|
16,069
|
|
|
15,927
|
|
|
16,050
|
|
Diluted earnings
(loss) per share as reported (GAAP)
|
(5.85)
|
|
|
4.33
|
|
|
(7.93)
|
|
|
7.84
|
|
Adjusted fully
diluted earnings (loss) per share(1)
|
(5.96)
|
|
|
4.33
|
|
|
(3.87)
|
|
|
7.84
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
airline-only operating revenue,
operating income (loss), net income (loss), and
EBITDA (millions, unless otherwise noted)
|
|
|
|
|
|
|
|
Operating revenue as
reported (GAAP)
|
$
|
133.3
|
|
|
$
|
491.8
|
|
|
$
|
542.5
|
|
|
$
|
943.4
|
|
Non-airline operating
revenue (1)
|
4.3
|
|
|
5.0
|
|
|
8.8
|
|
|
8.3
|
|
Airline operating
revenue (1)
|
129.0
|
|
|
486.8
|
|
|
533.7
|
|
|
935.1
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) as reported (GAAP)
|
(113.3)
|
|
|
108.1
|
|
|
(224.3)
|
|
|
199.2
|
|
Non-airline operating
loss (1)
|
(7.9)
|
|
|
(7.4)
|
|
|
(170.0)
|
|
|
(14.8)
|
|
Airline operating
income (loss) (1)
|
(105.4)
|
|
|
115.5
|
|
|
(54.3)
|
|
|
214.0
|
|
Airline operating
margin
|
(81.7)
|
%
|
|
23.7
|
%
|
|
(10.2)
|
%
|
|
22.9
|
%
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
adjusted airline CASM and CASM
excluding fuel (millions, unless otherwise noted)
|
|
|
|
|
|
|
|
Airline operating
revenue
|
$
|
129.0
|
|
|
$
|
486.8
|
|
|
$
|
533.7
|
|
|
$
|
935.1
|
|
Airline operating
income (loss)
|
(105.4)
|
|
|
115.5
|
|
|
(54.3)
|
|
|
214.0
|
|
Airline operating
expense
|
234.4
|
|
|
371.3
|
|
|
588.0
|
|
|
721.1
|
|
|
|
|
|
|
|
|
|
CARES Act grant
recognition
|
(74.5)
|
|
|
—
|
|
|
(74.5)
|
|
|
—
|
|
Airline operating
special charges
|
75.9
|
|
|
—
|
|
|
85.4
|
|
|
—
|
|
Adjusted airline
operating expense
|
233.0
|
|
|
371.3
|
|
|
577.1
|
|
|
721.1
|
|
Fuel expense as
reported
|
27.4
|
|
|
120.0
|
|
|
116.2
|
|
|
219.7
|
|
Adjusted airline
operating expense excluding fuel
|
205.6
|
|
|
251.3
|
|
|
460.9
|
|
|
501.4
|
|
|
|
|
|
|
|
|
|
Available seat miles
(ASMs) (thousands)
|
2,220,755
|
|
|
4,447,066
|
|
|
6,288,427
|
|
|
8,357,304
|
|
|
|
|
|
|
|
|
|
Airline operating
expense per ASM as reported (CASM)
(cents)
|
10.55
|
|
|
8.35
|
|
|
9.35
|
|
|
8.63
|
|
Adjusted airline
operating expense per ASM (CASM) (cents)
|
10.49
|
|
|
8.35
|
|
|
9.18
|
|
|
8.63
|
|
|
|
|
|
|
|
|
|
Airline operating
CASM, excluding fuel as reported (cents)
|
9.32
|
|
|
5.65
|
|
|
7.50
|
|
|
6.00
|
|
Adjusted airline
operating CASM, excluding fuel (cents)
|
9.26
|
|
|
5.65
|
|
|
7.33
|
|
|
6.00
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
consolidated EBITDA to EBITDA as
defined by certain credit agreements (millions)
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(93.1)
|
|
|
$
|
70.5
|
|
|
$
|
(126.1)
|
|
|
$
|
127.7
|
|
Interest expense,
net
|
12.6
|
|
|
16.4
|
|
|
24.4
|
|
|
29.8
|
|
Income tax provision
(benefit)
|
(53.3)
|
|
|
21.2
|
|
|
(151.0)
|
|
|
38.0
|
|
Depreciation and
amortization
|
43.3
|
|
|
38.5
|
|
|
87.0
|
|
|
74.7
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
1.2
|
|
|
3.7
|
|
Consolidated EBITDA
(1)
|
(90.5)
|
|
|
146.6
|
|
|
(164.5)
|
|
|
273.9
|
|
Average number of
aircraft in service (#)
|
90.7
|
|
|
85.0
|
|
|
92.1
|
|
|
82.3
|
|
EBITDA per
aircraft
|
(1.0)
|
|
|
1.7
|
|
|
(1.8)
|
|
|
3.3
|
|
|
|
|
|
|
|
|
|
Consolidated EBITDA
(1)
|
(90.5)
|
|
|
146.6
|
|
|
(164.5)
|
|
|
273.9
|
|
Adjusting items
(3)
|
223.6
|
|
|
3.9
|
|
|
528.0
|
|
|
4.5
|
|
EBITDA as defined by
certain credit agreements (1)
|
133.1
|
|
|
150.5
|
|
|
363.5
|
|
|
278.4
|
|
|
(1) Denotes
non-GAAP figure.
|
(2) Adjusted
income tax for 2020 utilizes a 21.0% effective rate
|
(3) Adjusting
items includes the following: loss on impairment, Sunseeker net
income/(loss), stock compensation expense, amortization of debt
issuance costs, (gain)/loss on disposal of assets, tax provision -
in excess of cash paid, cash refunds to customers, and other
special non-recurring items.
|
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SOURCE Allegiant Travel Company