LAS VEGAS, May 4, 2021 /PRNewswire/ -- Allegiant
Travel Company (NASDAQ: ALGT) today reported the following
financial results for the first quarter 2021, as well as
comparisons to the prior years:
Consolidated
|
Three Months Ended
March 31,
|
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2021
|
|
2020
|
|
2019
|
|
YoY
|
|
Yo2Y
|
Total operating
revenue
|
$
|
279.1
|
|
|
$
|
409.2
|
|
|
$
|
451.6
|
|
|
(31.8)
|
|
|
(38.2)
|
|
Total operating
expense
|
254.5
|
|
|
527.0
|
|
|
360.5
|
|
|
(51.7)
|
|
|
(29.4)
|
|
Operating income
(loss)
|
24.6
|
|
|
(117.8)
|
|
|
91.1
|
|
|
120.9
|
|
|
(73.0)
|
|
Income (loss) before
income taxes
|
8.7
|
|
|
(130.7)
|
|
|
73.9
|
|
|
106.6
|
|
|
(88.3)
|
|
Net income
(loss)
|
6.9
|
|
|
(33.0)
|
|
|
57.1
|
|
|
120.8
|
|
|
(88.0)
|
|
Diluted earnings
(loss) per share
|
$
|
0.42
|
|
|
$
|
(2.08)
|
|
|
$
|
3.52
|
|
|
120.2
|
|
|
(88.1)
|
|
|
|
Consolidated -
adjusted
|
Three Months Ended
March 31,
|
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2021
|
|
2020
|
|
2019
|
|
YoY
|
|
Yo2Y
|
Adjusted operating
income (loss) (1) (2)
|
$
|
(59.0)
|
|
|
$
|
55.1
|
|
|
$
|
91.1
|
|
|
(207.1)
|
|
|
(164.8)
|
|
Adjusted operating
expense (1) (2)
|
338.1
|
|
|
360.9
|
|
|
360.5
|
|
|
(6.3)
|
|
|
(6.2)
|
|
Adjusted income
(loss) before income taxes (1) (2)
|
(74.9)
|
|
|
42.2
|
|
|
73.9
|
|
|
(277.5)
|
|
|
(201.4)
|
|
Adjusted net income
(loss) (1) (2)
|
(57.9)
|
|
|
32.5
|
|
|
57.1
|
|
|
(278.2)
|
|
|
(201.4)
|
|
Adjusted diluted
earnings (loss) per share (1) (2)
|
$
|
(3.58)
|
|
|
$
|
2.05
|
|
|
$
|
3.52
|
|
|
(274.6)
|
|
|
(201.7)
|
|
|
(1) Adjusted
excludes COVID related special charges and the net benefit from the
Payroll Support Program Extension Agreement (the
"PSP2")
|
(2) Denotes a
non-GAAP financial measure. Refer to the Non-GAAP Presentation
section within this document for further information
|
"The momentum reported last quarter picked up in earnest towards
the back half of the first quarter with booking trends showing
meaningful improvement," stated Maurice J.
Gallagher, Jr., chairman and CEO of Allegiant Travel
Company. "We completed the quarter with earnings per share of
$0.42 on year over two-year revenue
declines of 38.2 percent, continuing the trend of sequential
revenue improvement. We were the first domestic carrier to restore
capacity to pre-pandemic levels, with first quarter scheduled
capacity up 3.1 percent as compared to 2019. Booking trends have
been particularly impressive with average daily bookings for the
months of March and April exceeding the same time period in 2019.
Furthermore, the booking curve appears to be normalizing and more
closely resembling what we saw in 2019. April's results came in as
strong as March helped by a ten-point increase in load factor from
54 to 64 percent. We expect capacity in the coming months will be
equal to or greater than our 2019 levels.
"During the past year, in the face of this terrible pandemic, we
were focused on improving ourselves. I believe we have done that.
We have improved our cost structure substantially. Our balance
sheet is in excellent shape. As of March
31, our net debt has decreased. Our cash balances have
increased, and by the end of the second quarter we expect to have
total liquidity of $1 billion, or
more than double our year-end 2019 balance. We were able to double
our cash balances without an equity raise or substantial increases
in debt. We benefited from the payroll support programs as well as
federal income tax refunds of the substantial tax payments made in
the past years. Our shareholders have seen their company's balance
sheet improve dramatically - perhaps more than any other company in
this space - in spite of the setbacks and hardships imposed by this
unprecedented event.
"I could not be more bullish on our outlook. Going forward our
full-year, 2021 capacity should exceed 2019 capacity levels. We
expect sequential scheduled service revenue improvement with
revenue down just six to ten percent as compared with 2019 levels.
This revenue growth should continue through the remainder of 2021.
We continue to separate ourselves from the competition, operating
more capacity and generating positive EBITDA and earnings. I
believe now more than ever our low-cost, low-utilization model
designed to provide affordable leisure travel is our competitive
advantage, which will help drive us towards returning to our goal
of $6 million in EBITDA per
aircraft.
"We would not be in the favorable position we are today without
the continued efforts of the 4,000 employees throughout our
network. Their hard work has been integral to successfully
navigating the most difficult year in the industry's history. It is
their efforts that have enabled us to effectively manage capacity
while cutting costs from the business - both critical components to
ensuring a sustained return to
profitability."
First Quarter 2021 Results
- GAAP earnings per share of $0.42
-
- Adjusted loss per share(1) (2) of
$3.58, adjusted numbers
exclude the impact from PSP2 and $1.7
million of COVID related special charges
- Consolidated EBITDA(2) of $68.2 million yielding an EBITDA margin of 24.4
percent
-
- Adjusted EBITDA(1) (2) of $(15.4) million
- Restored capacity to pre-pandemic levels with scheduled
service capacity up 3.1 percent versus first quarter of
2019
- Total revenue for the quarter was $279.1 million, up 13.2 percent from the fourth
quarter
-
- Includes fixed fee revenue of $7.7 million, the strongest quarter since the
onset of the pandemic
- Total average fare was $116.35,
down 8.9 percent as compared to 2019, with third party product
average fare of $5.86, up 17.0
percent year over two-year
- Adjusted operating expense(1) (2) of
$338.1 million, down 6.3 percent from
first quarter 2019 on total system capacity increase of 2.7
percent
-
- Adjusted Operating CASM, excluding fuel(1)(2)
of 6.36 cents, down 4.6 percent from
first quarter of 2019
- Announced the addition of a new base in Austin, Texas, beginning base operations in
November 2021, which is expected to
create 89 high-wage jobs and house three A320 aircraft
- Expanded the network by adding 50 new routes, three new
cities, and nine event-specific routes, bringing total routes
served to 580 and 129 cities
- Included on Forbes' list of America's Best Employers for
Diversity in 2021
- Partnered with The Smith Center for the Performing Arts as a
sponsor of the annual Heart of Education Awards honoring
outstanding teachers in Southern
Nevada by awarding travel vouchers to more than 700
teachers
(1) Adjusted excludes COVID related special charges and the
net benefit from the Payroll Support Program Extension Agreement
(the "PSP2")
(2) Denotes a non-GAAP financial measure.
Refer to the Non-GAAP Presentation section within this document for
further information
Balance Sheet, Cash and Liquidity
- Total cash and investments at March 31, 2021 were $728
million, up from $685 million
at December 31, 2020
-
- Cash from operations of $168
million including the benefit from the payroll support
program
-
- Adjusted cash from operations of $68.2
million, which excludes the $91.8
million benefit from the PSP2 as well as excludes
$8 million related to restricted cash
balances
- Received $105 million in debt
proceeds
-
- Net proceeds received of $50.2
million due to refinance of three A320 aircraft
- Debt principal payments of $152
million during the quarter
-
- Includes repayment of existing debt on three aircraft as well
as repayment of existing revolver as the facility matured during
the first quarter
- Entered into a new secured revolving credit facility with a
$50 million commitment, which is
currently undrawn
- $69 million used for cash
capital expenditures during the first quarter with
$13 million related to 2020 accrued
capital expenditures
- First quarter interest expense of $16.8 million, down 7.5 percent from first
quarter in the prior year
-
- Increased full year interest expense guide driven primarily by
A320 refinance arrangement and an increase in LIBOR
- Second quarter sources of liquidity expected to be
received are $260.9 million
-
- $112.2 million from the U.S.
Treasury of which $13.8 million is
related to the PSP2 and $98.4 million
is related to Payroll Support Program 3 Agreement (the "PSP3")
-
- Additional PSP2 funds triggered a $1.7
million loan and issuance of 924 warrants at a strike price
of $179.23
- $148.7 million in tax refunds
related to net operating losses
- Air traffic liability at March
31, 2021 was $403 million,
compared to $308 million at
December 31, 2020
-
- Balance related to future scheduled flights is $224 million, up from $86
million on December 31,
2020
- Balance related to travel vouchers issued for future use is
$179 million, a 19 percent reduction
from December 31, 2020
Capital Expenditures
- First quarter capital expenditures related to
aircraft, engines and induction costs were $56 million, which included $50 million for the acquisition of three aircraft
and induction costs, and $6 million
in other airline capital expenditures
- First quarter capital expenditures related to deferred heavy
maintenance were $8.5
million
Guidance, subject
to revision
|
Previous
|
Current
|
|
|
|
Second Quarter
2021 guidance
|
|
|
|
|
|
|
|
System ASMs - year
over two-year change(1)
|
|
|
2.0 to
6.0%
|
Scheduled
Service ASMs - year over two-year
change(1)
|
|
|
2.0 to
6.0%
|
|
|
|
|
Scheduled
service revenue - year over two-year change, excluding fixed
fee and other revenue(1)
|
|
|
down 6 to
10%
|
|
|
|
|
Fuel cost per
gallon
|
|
|
$
|
1.99
|
|
|
|
|
Full year 2021
guidance
|
|
|
|
|
|
|
|
CAPEX
|
|
|
|
Aircraft, engines and
induction costs (millions)
|
|
$115 to
$125
|
$115 to
$125
|
Capitalized Airbus
deferred heavy maintenance (millions)
|
|
$50 to $60
|
$50 to $60
|
Other capital
expenditures (millions)
|
|
$20 to $30
|
$40 to $50
|
|
|
|
|
Interest
expense
|
|
$50 to $55
|
$65 to $70
|
Recurring principal
payments(2)
|
|
$170 to
$180
|
$170 to
$180
|
|
(1) Year over
two-year percentage changes compare 2021 to 2019
|
(2) Excludes $111
million of principal repayments related to the maturity of our
revolving credit facility and the refinancing of three A320
aircraft during the first quarter 2021
|
Aircraft Fleet Plan by End of Period
|
|
|
|
|
Aircraft - (seats
per
AC)
|
1Q21
|
2Q21
|
3Q21
|
YE21
|
A319 (156
seats)
|
35
|
|
35
|
|
35
|
|
35
|
|
A320 (177
seats)
|
26
|
|
21
|
|
21
|
|
19
|
|
A320 (186
seats)
|
39
|
|
49
|
|
52
|
|
54
|
|
Total
|
100
|
|
105
|
|
108
|
|
108
|
|
|
The table above is
provided based on the company's current plans and may be subject to
change
|
Allegiant Travel Company will host a conference call with
analysts at 4:30 p.m. ET Tuesday, May
4 to discuss its first quarter 2021 financial results. A live
broadcast of the conference call will be available via the
Company's Investor Relations website homepage at
http://ir.allegiantair.com. The webcast will also be archived in
the "Events & Presentations" section of the website.
Allegiant Travel Company
Las Vegas-based Allegiant
(NASDAQ: ALGT) is an integrated travel company with an airline at
its heart, focused on connecting customers with the people, places
and experiences that matter most. Since 1999, Allegiant Air has
linked travelers in small-to-medium cities to world-class vacation
destinations with all-nonstop flights and industry-low average
fares. Today, Allegiant's 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, revenue
and expenses, available seat mile growth, expected capital
expenditures, the timing of aircraft acquisitions and retirements,
the number of contracted aircraft to be placed in service in the
future, as well as other information concerning future results of
operations, business strategies, financing plans, industry
environment and potential growth opportunities. Forward-looking
statements include all statements that are not historical facts and
can be identified by the use of forward-looking terminology such as
the words "believe," "expect," "guidance," "anticipate," "intend,"
"plan," "estimate", "project", "hope" or similar
expressions.
Forward-looking statements involve risks, uncertainties
and assumptions. Actual results may differ materially from those
expressed in the forward-looking statements. Important risk factors
that could cause our results to differ materially from those
expressed in the forward-looking statements generally may be found
in our periodic reports filed with the Securities and Exchange
Commission at www.sec.gov. These risk factors include, without
limitation, the impact and duration of the COVID-19 pandemic on
airline travel and the economy, liquidity issues resulting from the
effect of the COVID-19 pandemic on our business, restrictions
imposed on us as a result of accepting grants and loans under the
payroll support programs, an accident involving, or problems with,
our aircraft, public perception of our safety, our reliance on our
automated systems, our reliance on third parties to deliver
aircraft under contract to us on a timely basis, risk of breach of
security of personal data, volatility of fuel costs, labor issues
and costs, the ability to obtain regulatory approvals as needed ,
the effect of economic conditions on leisure travel, debt covenants
and balances, the ability to finance aircraft to be acquired,
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
March 31,
|
|
Percent Change
(1)
|
|
2021
|
|
2020
|
|
2019
|
|
YoY
|
|
Yo2Y
|
OPERATING
REVENUE:
|
|
|
|
|
|
|
|
|
|
Passenger
revenue
|
$
|
256,695
|
|
|
$
|
378,911
|
|
|
$
|
419,977
|
|
|
(32.3)
|
|
|
(38.9)
|
|
Third party
products
|
13,622
|
|
|
15,976
|
|
|
17,141
|
|
|
(14.7)
|
|
|
(20.5)
|
|
Fixed fee contract
revenue
|
7,692
|
|
|
8,919
|
|
|
10,575
|
|
|
(13.8)
|
|
|
(27.3)
|
|
Other
revenue
|
1,115
|
|
|
5,375
|
|
|
3,929
|
|
|
(79.3)
|
|
|
(71.6)
|
|
Total operating
revenue
|
279,124
|
|
|
409,181
|
|
|
451,622
|
|
|
(31.8)
|
|
|
(38.2)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Salary and
benefits
|
117,950
|
|
|
112,646
|
|
|
119,411
|
|
|
4.7
|
|
|
(1.2)
|
|
Aircraft
fuel
|
82,848
|
|
|
88,813
|
|
|
99,682
|
|
|
(6.7)
|
|
|
(16.9)
|
|
Depreciation and
amortization
|
43,174
|
|
|
43,699
|
|
|
36,182
|
|
|
(1.2)
|
|
|
19.3
|
|
Station
operations
|
43,094
|
|
|
40,999
|
|
|
38,965
|
|
|
5.1
|
|
|
10.6
|
|
Maintenance and
repairs
|
23,371
|
|
|
21,795
|
|
|
22,824
|
|
|
7.2
|
|
|
2.4
|
|
Sales and
marketing
|
11,609
|
|
|
18,455
|
|
|
20,926
|
|
|
(37.1)
|
|
|
(44.5)
|
|
Aircraft lease
rental
|
4,720
|
|
|
962
|
|
|
—
|
|
|
390.6
|
|
|
NM
|
|
Other
|
17,776
|
|
|
26,717
|
|
|
22,554
|
|
|
(33.5)
|
|
|
(21.2)
|
|
Payroll Support
Programs grant recognition
|
(91,758)
|
|
|
—
|
|
|
—
|
|
|
NM
|
|
|
NM
|
|
Special
charges
|
1,738
|
|
|
172,900
|
|
|
—
|
|
|
(99.0)
|
|
|
NM
|
|
Total operating
expense
|
254,522
|
|
|
526,986
|
|
|
360,544
|
|
|
(51.7)
|
|
|
(29.4)
|
|
OPERATING INCOME
(LOSS)
|
24,602
|
|
|
(117,805)
|
|
|
91,078
|
|
|
120.9
|
|
|
(73.0)
|
|
OTHER (INCOME)
EXPENSE:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
16,788
|
|
|
18,153
|
|
|
18,083
|
|
|
(7.5)
|
|
|
(7.2)
|
|
Capitalized
interest
|
—
|
|
|
(4,067)
|
|
|
(1,503)
|
|
|
NM
|
|
|
NM
|
|
Interest
income
|
(463)
|
|
|
(2,311)
|
|
|
(3,201)
|
|
|
(80.0)
|
|
|
(85.5)
|
|
Loss on extinguishment
of debt
|
—
|
|
|
1,222
|
|
|
3,677
|
|
|
NM
|
|
|
NM
|
|
Other, net
|
(393)
|
|
|
(76)
|
|
|
103
|
|
|
417.1
|
|
|
(481.6)
|
|
Total other
expense
|
15,932
|
|
|
12,921
|
|
|
17,159
|
|
|
23.3
|
|
|
(7.2)
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
8,670
|
|
|
(130,726)
|
|
|
73,919
|
|
|
106.6
|
|
|
(88.3)
|
|
INCOME TAX PROVISION
(BENEFIT)
|
1,801
|
|
|
(97,717)
|
|
|
16,795
|
|
|
101.8
|
|
|
(89.3)
|
|
NET INCOME
(LOSS)
|
$
|
6,869
|
|
|
$
|
(33,009)
|
|
|
$
|
57,124
|
|
|
120.8
|
|
|
(88.0)
|
|
Earnings (loss) per
share attributable to common shareholders(1):
|
|
|
|
|
|
|
|
|
|
Basic
|
$0.42
|
|
|
($2.08)
|
|
|
$3.52
|
|
|
120.2
|
|
|
(88.1)
|
|
Diluted
|
$0.42
|
|
|
($2.08)
|
|
|
$3.52
|
|
|
120.2
|
|
|
(88.1)
|
|
Weighted average
shares outstanding used in computing earnings per share
attributable to common shareholders(2):
|
|
|
|
|
|
|
|
|
|
Basic
|
16,167
|
|
|
15,952
|
|
|
16,011
|
|
|
1.3
|
|
|
1.0
|
|
Diluted
|
16,167
|
|
|
15,952
|
|
|
16,013
|
|
|
1.3
|
|
|
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
March 31,
|
|
Percent
Change(1)
|
|
2021
|
|
2020
|
|
2019
|
|
YoY
|
|
Yo2Y
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
|
|
|
|
Passengers
|
2,334,503
|
|
|
3,175,450
|
|
|
3,450,278
|
|
|
(26.5)
|
|
|
(32.3)
|
|
Available seat miles
(ASMs) (thousands)
|
4,013,989
|
|
|
4,067,671
|
|
|
3,910,239
|
|
|
(1.3)
|
|
|
2.7
|
|
Operating expense per
ASM (CASM) (cents)
|
6.34
|
|
|
12.96
|
|
|
9.22
|
|
|
(51.1)
|
|
|
(31.2)
|
|
Adjusted operating
expense per ASM (CASM) (cents)(2)
|
8.42
|
|
|
8.87
|
|
|
9.22
|
|
|
(5.1)
|
|
|
(8.7)
|
|
Fuel expense per ASM
(cents)
|
2.06
|
|
|
2.18
|
|
|
2.55
|
|
|
(5.5)
|
|
|
(19.2)
|
|
Operating CASM,
excluding fuel (cents)
|
4.28
|
|
|
10.77
|
|
|
6.67
|
|
|
(60.3)
|
|
|
(35.8)
|
|
Adjusted operating
CASM, excluding fuel (cents)(2)
|
6.36
|
|
|
6.69
|
|
|
6.67
|
|
|
(4.9)
|
|
|
(4.6)
|
|
ASMs per gallon of
fuel
|
90.4
|
|
|
85.7
|
|
|
84.1
|
|
|
5.5
|
|
|
7.5
|
|
Departures
|
25,684
|
|
|
26,312
|
|
|
25,200
|
|
|
(2.4)
|
|
|
1.9
|
|
Block hours
|
60,373
|
|
|
62,123
|
|
|
59,819
|
|
|
(2.8)
|
|
|
0.9
|
|
Average stage length
(miles)
|
898
|
|
|
895
|
|
|
904
|
|
|
0.3
|
|
|
(0.7)
|
|
Average number of
operating aircraft during period
|
97.3
|
|
|
93.5
|
|
|
79.6
|
|
|
4.1
|
|
|
22.2
|
|
Average block hours
per aircraft per day
|
7.4
|
|
|
7.3
|
|
|
8.3
|
|
|
1.4
|
|
|
(10.8)
|
|
Full-time equivalent
employees at end of period
|
3,998
|
|
|
4,436
|
|
|
4,067
|
|
|
(9.9)
|
|
|
(1.7)
|
|
Fuel gallons consumed
(thousands)
|
44,426
|
|
|
47,479
|
|
|
46,474
|
|
|
(6.4)
|
|
|
(4.4)
|
|
Average fuel cost per
gallon
|
$
|
1.86
|
|
|
$
|
1.87
|
|
|
$
|
2.14
|
|
|
(0.5)
|
|
|
(13.1)
|
|
Scheduled service
statistics:
|
|
|
|
|
|
|
|
|
|
Passengers
|
2,323,302
|
|
|
3,154,606
|
|
|
3,421,538
|
|
|
(26.4)
|
|
|
(32.1)
|
|
Revenue passenger
miles (RPMs) (thousands)
|
2,166,417
|
|
|
2,925,482
|
|
|
3,191,045
|
|
|
(25.9)
|
|
|
(32.1)
|
|
Available seat miles
(ASMs) (thousands)
|
3,921,090
|
|
|
3,964,009
|
|
|
3,802,132
|
|
|
(1.1)
|
|
|
3.1
|
|
Load factor
|
55.3
|
%
|
|
73.8
|
%
|
|
83.9
|
%
|
|
(18.5)
|
|
|
(34.1)
|
|
Departures
|
24,947
|
|
|
25,484
|
|
|
24,344
|
|
|
(2.1)
|
|
|
2.5
|
|
Block hours
|
58,851
|
|
|
60,346
|
|
|
57,963
|
|
|
(2.5)
|
|
|
1.5
|
|
Total passenger
revenue per ASM (TRASM) (cents)(2)
|
6.89
|
|
|
9.96
|
|
|
11.50
|
|
|
(30.8)
|
|
|
(40.1)
|
|
Average fare -
scheduled service(3)
|
$
|
58.38
|
|
|
$
|
64.02
|
|
|
$
|
69.64
|
|
|
(8.8)
|
|
|
(16.2)
|
|
Average fare -
air-related charges(3)
|
$
|
52.11
|
|
|
$
|
56.10
|
|
|
$
|
53.10
|
|
|
(7.1)
|
|
|
(1.9)
|
|
Average fare - third
party products
|
$
|
5.86
|
|
|
$
|
5.06
|
|
|
$
|
5.01
|
|
|
15.8
|
|
|
17.0
|
|
Average fare -
total
|
$
|
116.35
|
|
|
$
|
125.18
|
|
|
$
|
127.75
|
|
|
(7.1)
|
|
|
(8.9)
|
|
Average stage length
(miles)
|
902
|
|
|
900
|
|
|
908
|
|
|
0.2
|
|
|
(0.7)
|
|
Fuel gallons consumed
(thousands)
|
43,306
|
|
|
46,105
|
|
|
45,068
|
|
|
(6.1)
|
|
|
(3.9)
|
|
Average fuel cost per
gallon
|
$
|
1.82
|
|
|
$
|
1.87
|
|
|
$
|
2.13
|
|
|
(2.7)
|
|
|
(14.6)
|
|
Percent of sales
through website during period
|
93.3
|
%
|
|
93.6
|
%
|
|
93.6
|
%
|
|
(0.3)
|
|
|
(0.3)
|
|
Other
data:
|
|
|
|
|
|
|
|
|
|
Rental car days
sold
|
275,584
|
|
|
481,046
|
|
|
471,598
|
|
|
(42.7)
|
|
|
(41.6)
|
|
Hotel room nights
sold
|
56,208
|
|
|
92,004
|
|
|
105,015
|
|
|
(38.9)
|
|
|
(46.5)
|
|
|
(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)
|
March 31, 2021
(unaudited)
|
|
December 31,
2020
|
|
Percent
Change
|
Unrestricted cash and
investments
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
301.6
|
|
|
$
|
152.8
|
|
|
97.4
|
|
Short-term
investments
|
426.4
|
|
|
532.5
|
|
|
(19.9)
|
|
Total unrestricted
cash and investments
|
728.0
|
|
|
685.3
|
|
|
6.2
|
|
Debt
|
|
|
|
|
|
Current maturities of
long-term debt and finance lease obligations, net of related
costs
|
156.5
|
|
|
217.2
|
|
|
(27.9)
|
|
Long-term debt and
finance lease obligations, net of current maturities and related
costs
|
1,459.6
|
|
|
1,441.8
|
|
|
1.2
|
|
Total debt
|
1,616.1
|
|
|
1,659.0
|
|
|
(2.6)
|
|
Debt, net of
liquidity
|
888.1
|
|
|
973.7
|
|
|
(8.8)
|
|
Total Allegiant
Travel Company shareholders' equity
|
709.7
|
|
|
699.4
|
|
|
1.5
|
|
Summary Cash Flow
|
Three Months Ended
March 31,
|
|
Percent
|
Unaudited
(millions)
|
2021
|
|
2020
|
|
Change
|
Cash provided by
operating activities
|
$
|
168.0
|
|
|
$
|
106.3
|
|
|
58.0
|
|
Changes in air
traffic liability
|
95.5
|
|
|
53.9
|
|
|
77.2
|
|
Changes in working
capital, ex air traffic liability
|
12.4
|
|
|
(189.5)
|
|
|
(106.5)
|
|
Purchase of property
and equipment
|
69.5
|
|
|
134.5
|
|
|
(48.3)
|
|
Cash dividends paid
to shareholders
|
—
|
|
|
11.5
|
|
|
(100.0)
|
|
Proceeds from the
issuance of long-term debt
|
105.0
|
|
|
128.3
|
|
|
(18.2)
|
|
Principal payments on
long-term debt & finance lease obligations
|
151.5
|
|
|
62.7
|
|
|
141.6
|
|
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
March 31,
|
|
2021
|
|
2020
|
Basic:
|
|
|
|
Net income
(loss)
|
$
|
6,869
|
|
|
$
|
(33,009)
|
|
Less income allocated
to participating
securities
|
(103)
|
|
|
(236)
|
|
Net income (loss)
attributable to common stock
|
$
|
6,766
|
|
|
$
|
(33,245)
|
|
Earnings (loss) per
share, basic
|
$
|
0.42
|
|
|
$
|
(2.08)
|
|
Weighted-average
shares outstanding
|
16,167
|
|
|
15,952
|
|
Diluted:
|
|
|
|
Net income
(loss)
|
$
|
6,869
|
|
|
$
|
(33,009)
|
|
Less income allocated
to participating securities
|
(103)
|
|
|
(236)
|
|
Net income (loss)
attributable to common stock
|
$
|
6,766
|
|
|
$
|
(33,245)
|
|
Earnings (loss) per
share, diluted
|
$
|
0.42
|
|
|
$
|
(2.08)
|
|
Weighted-average
shares outstanding (1)
|
16,167
|
|
|
15,952
|
|
|
(1) Dilutive
effect of common stock equivalents excluded from the diluted per
share calculation is not material.
|
Appendix A
Non-GAAP
Presentation
Three Months Ended March 31, 2021 and
2020
(Unaudited)
Adjusted operating income (loss), adjusted income (loss) before
income taxes, adjusted net income (loss) and adjusted diluted
earnings (loss) per share, all eliminate the effect of special
expenses related directly to COVID 19, as well as the net benefit
related to the payroll support grants from the U.S. Treasury, which
are not reflective of our ongoing operating performance. As such,
all of these are non-GAAP financial measures.
EBITDA, as presented in this press release, and the various
adjusted 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. "Adjusted EBITDA" is EBITDA adjusted
to eliminate the effect of special charges and the payroll support
grants. We caution investors that amounts presented in accordance
with these definitions may not be comparable to similar measures
disclosed by other issuers, because not all issuers and analysts
calculate EBITDA and Adjusted EBITDA in the same manner.
We use EBITDA and Adjusted 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 the presentation of these measures is relevant and
useful for investors because they allow investors to view results
in a manner similar to the method used by management and makes it
easier to compare our results with other companies that have
different financing and capital structures. EBITDA has important
limitations as an analytical tool. These limitations include the
following:
- EBITDA does not reflect our capital expenditures, future
requirements for capital expenditures or contractual commitments to
purchase capital equipment;
- EBITDA does not reflect interest expense or the cash
requirements necessary to service principal or interest payments on
our debt;
- although depreciation and amortization are non-cash charges,
the assets that we currently depreciate and amortize will likely
have to be replaced in the future, and EBITDA does not reflect the
cash required to fund such replacements; and
- other companies in our industry may calculate EBITDA
differently than we do, limiting its usefulness as a comparative
measure.
Presented below is a quantitative reconciliation of EBITDA to
the most directly comparable GAAP financial performance measure,
which we believe is net income (loss). We believe the presentation
of EBITDA and the various adjusted measures are relevant and useful
for investors because they allow them to better compare our results
to other airlines.
In addition to EBITDA and Adjusted 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 net income/(loss), stock compensation
expense, amortization of debt issuance costs, (gain)/loss on
disposal of assets, tax provision - in excess of cash paid, special
non-recurring items, and other items.
The SEC has adopted rules (Regulation G) regulating the use of
non-GAAP financial measures. Because of our use of non-GAAP
financial measures in this press release to supplement our
consolidated financial statements presented on a GAAP basis,
Regulation G requires us to include in this press release a
presentation of the most directly comparable GAAP measure, which is
operating revenue, operating income (loss), net income (loss),
operating expenses, and diluted earnings (loss) per share and a
reconciliation of the non-GAAP measures to the most comparable GAAP
measure. Our utilization of non-GAAP measurements is not meant
to be considered in isolation or as a substitute for operating
income (loss), net income (loss) or other measures of financial
performance prepared in accordance with GAAP. Our use of these
non-GAAP measures may not be comparable to similarly titled
measures employed by other companies in the airline and travel
industry. The reconciliation of each of these measures to the most
comparable GAAP measure for the periods is indicated below.
Reconciliation of Non-GAAP Financial Measures
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Reconciliation of
adjusted operating income (loss) (millions)
|
|
|
|
Operating income
(loss) as reported (GAAP)
|
$
|
24.6
|
|
|
$
|
(117.8)
|
|
|
|
|
|
Net benefit from
PSP2
|
(85.3)
|
|
|
—
|
|
Special charges
(operating & non-operating)
|
1.7
|
|
|
172.9
|
|
Adjusted operating
income (loss) (1)
|
(59.0)
|
|
|
55.1
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Reconciliation of
adjusted income (loss) before income taxes
(millions)
|
|
|
|
Income (loss) before
income taxes as reported (GAAP)
|
$
|
8.7
|
|
|
$
|
(130.7)
|
|
|
|
|
|
Net benefit from
PSP2
|
(85.3)
|
|
|
—
|
|
Special charges
(operating & non-operating)
|
1.7
|
|
|
172.9
|
|
Adjusted income
(loss) before income taxes (1)
|
(74.9)
|
|
|
42.2
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Reconciliation of
adjusted net income (loss) (millions) and adjusted earnings (loss)
per share
|
|
|
|
Adjusted income
(loss) before income taxes (per calculation in previous table)
(1)
|
$
|
(74.9)
|
|
|
$
|
42.2
|
|
Provision (benefit)
for income taxes as reported (GAAP)
|
1.8
|
|
|
(97.7)
|
|
Adjusted provision
(benefit) for income taxes (1) (2)
|
(17.0)
|
|
|
9.7
|
|
Net income (loss)
adjusted for special items, payroll support, and adjustment to tax
resulting from payroll support(1)
|
(57.9)
|
|
|
32.5
|
|
|
|
|
|
Diluted shares as
reported (GAAP) (3)
|
16,167
|
|
|
15,972
|
|
Diluted earnings
(loss) per share as reported (GAAP)
|
0.42
|
|
|
(2.08)
|
|
Adjusted fully
diluted earnings (loss) per share (1)
|
(3.58)
|
|
|
2.03
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Reconciliation of
adjusted CASM and CASM excluding fuel (millions, unless otherwise
noted)
|
|
|
|
Operating expense as
reported (GAAP)
|
$
|
254.5
|
|
|
$
|
527.0
|
|
|
|
|
|
Net Benefit from
PSP2
|
85.3
|
|
|
—
|
|
Operating special
charges
|
(1.7)
|
|
|
(166.1)
|
|
Adjusted operating
expense
|
338.1
|
|
|
360.9
|
|
Fuel expense as
reported
|
82.8
|
|
|
88.8
|
|
Adjusted operating
expense excluding fuel
|
255.3
|
|
|
272.1
|
|
|
|
|
|
Available seat miles
(ASMs) (thousands)
|
4,013,989
|
|
|
4,067,671
|
|
|
|
|
|
Operating expense per
ASM as reported (CASM) (cents)
|
6.34
|
|
|
12.96
|
|
Adjusted operating
expense per ASM (CASM) (cents)
|
8.42
|
|
|
8.87
|
|
|
|
|
|
Operating CASM,
excluding fuel as reported (cents)
|
4.28
|
|
|
10.77
|
|
Adjusted operating
CASM, excluding fuel (cents)
|
6.36
|
|
|
6.69
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Reconciliation of
consolidated EBITDA to EBITDA as defined by certain credit
agreements (millions)
|
|
|
|
Net income
(loss)
|
$
|
6.9
|
|
|
$
|
(33.0)
|
|
Interest expense,
net
|
16.3
|
|
|
11.8
|
|
Income tax provision
(benefit)
|
1.8
|
|
|
(97.7)
|
|
Depreciation and
amortization
|
43.2
|
|
|
43.7
|
|
Loss on debt
extinguishment
|
—
|
|
|
1.2
|
|
Consolidated EBITDA
(1)
|
68.2
|
|
|
(74.0)
|
|
Adjusting items as
defined per credit agreements (4)
|
24.7
|
|
|
304.4
|
|
EBITDA as defined by
certain credit agreements (1)
|
92.9
|
|
|
230.4
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Reconciliation of
consolidated EBITDA to adjusted EBITDA (millions)
|
|
|
|
Consolidated EBITDA
(per calculation in previous table) (1)
|
$
|
68.2
|
|
|
$
|
(74.0)
|
|
|
|
|
|
Net Benefit from
PSP2
|
(85.3)
|
|
|
—
|
|
Operating special
charges
|
1.7
|
|
|
166.1
|
|
Adjusted EBITDA
(1)
|
(15.4)
|
|
|
92.1
|
|
|
(1) Denotes
non-GAAP figure.
|
(2) Adjusted
income tax for 2021 estimates a 23.0% effective rate
|
(3) Approximately
20 thousand shares were added to the calculation as excluding them
would have been antidilutive for 2020
|
(4) Adjusting
items include 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, and other special non-recurring
items.
|
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SOURCE Allegiant Travel Company