LAS VEGAS, July 28, 2021 /PRNewswire/ -- Allegiant Travel
Company (NASDAQ: ALGT) today reported the following financial
results for the second quarter 2021, as well as comparisons to the
prior years:
Consolidated
|
Three Months Ended
June 30,
|
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2021
|
|
2020
|
|
2019
|
|
YoY
|
|
Yo2Y
|
Total operating
revenue
|
$
|
472.4
|
|
|
$
|
133.3
|
|
|
$
|
491.8
|
|
|
254.3
|
|
|
(3.9)
|
|
Total operating
expense
|
333.6
|
|
|
246.6
|
|
|
383.7
|
|
|
35.3
|
|
|
(13.1)
|
|
Operating income
(loss)
|
138.9
|
|
|
(113.3)
|
|
|
108.1
|
|
|
222.6
|
|
|
28.4
|
|
Income (loss) before
income taxes
|
122.6
|
|
|
(146.4)
|
|
|
91.8
|
|
|
183.7
|
|
|
33.5
|
|
Net income
(loss)
|
95.0
|
|
|
(93.1)
|
|
|
70.5
|
|
|
202.1
|
|
|
34.7
|
|
Diluted earnings
(loss) per share
|
$
|
5.49
|
|
|
$
|
(5.85)
|
|
|
$
|
4.33
|
|
|
193.8
|
|
|
26.8
|
|
|
|
Six Months Ended
June 30,
|
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2021
|
|
2020
|
|
2019
|
|
YoY
|
|
Yo2Y
|
Total operating
revenue
|
$
|
751.6
|
|
|
$
|
542.5
|
|
|
$
|
943.4
|
|
|
38.5
|
|
|
(20.3)
|
|
Total operating
expense
|
588.1
|
|
|
766.8
|
|
|
744.2
|
|
|
(23.3)
|
|
|
(21.0)
|
|
Operating income
(loss)
|
163.5
|
|
|
(224.3)
|
|
|
199.2
|
|
|
172.9
|
|
|
(17.9)
|
|
Income (loss) before
income taxes
|
131.2
|
|
|
(277.1)
|
|
|
165.7
|
|
|
147.4
|
|
|
(20.8)
|
|
Net income
(loss)
|
101.9
|
|
|
(126.1)
|
|
|
127.7
|
|
|
180.8
|
|
|
(20.2)
|
|
Diluted earnings
(loss) per share
|
$
|
6.04
|
|
|
$
|
(7.93)
|
|
|
$
|
7.84
|
|
|
176.2
|
|
|
(23.0)
|
|
|
Consolidated -
adjusted
|
Three Months Ended
June 30,
|
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2021
|
|
2020
|
|
2019
|
|
YoY
|
|
Yo2Y
|
Adjusted operating
expense (1) (2)
|
$
|
378.6
|
|
|
$
|
239.9
|
|
|
$
|
383.7
|
|
|
57.8
|
|
|
(1.3)
|
|
Adjusted operating
income (loss) (1) (2)
|
93.9
|
|
|
(106.6)
|
|
|
108.1
|
|
|
188.1
|
|
|
(13.1)
|
|
Adjusted income
(loss) before income taxes (1) (2)
|
77.6
|
|
|
(119.9)
|
|
|
91.8
|
|
|
164.7
|
|
|
(15.5)
|
|
Adjusted net income
(loss) (1) (2)
|
60.0
|
|
|
(94.7)
|
|
|
70.5
|
|
|
163.4
|
|
|
(14.9)
|
|
Adjusted diluted
earnings (loss) per share (1) (2)
|
$
|
3.46
|
|
|
$
|
(5.96)
|
|
|
$
|
4.33
|
|
|
158.1
|
|
|
(20.1)
|
|
|
|
Six Months Ended
June 30,
|
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2021
|
|
2020
|
|
2019
|
|
YoY
|
|
Yo2Y
|
Adjusted operating
expense (1) (2)
|
$
|
716.7
|
|
|
$
|
594.0
|
|
|
$
|
744.2
|
|
|
20.7
|
|
|
(3.7)
|
|
Adjusted operating
income (loss) (1) (2)
|
34.9
|
|
|
(51.5)
|
|
|
199.2
|
|
|
167.8
|
|
|
(82.5)
|
|
Adjusted income
(loss) before income taxes (1) (2)
|
2.6
|
|
|
(77.7)
|
|
|
165.7
|
|
|
103.3
|
|
|
(98.4)
|
|
Adjusted net income
(loss) (1) (2)
|
2.0
|
|
|
(61.4)
|
|
|
127.7
|
|
|
103.3
|
|
|
(98.4)
|
|
Adjusted diluted
earnings (loss) per share (1) (2)
|
$
|
0.12
|
|
|
$
|
(3.87)
|
|
|
$
|
7.84
|
|
|
103.1
|
|
|
(98.5)
|
|
|
(1) Adjusted
numbers exclude COVID related special charges, the net benefit from
the payroll support programs (PSPs), and profit sharing bonus
accruals since the operating margin threshold to accrue these
bonuses would not have been met for the six months ended June 30,
2021 without the benefits of the PSPs
|
(2) Denotes a
non-GAAP financial measure. Refer to the Non-GAAP Presentation
section within this document for further information
|
"The second quarter marked the return of leisure demand to
pre-pandemic levels," stated Maurice J.
Gallagher, Jr., chairman and CEO of Allegiant Travel
Company. "Earnings per share came in at $5.49 on a year over two-year revenue decline of
just 3.9 percent, with total revenue in June exceeding 2019 levels.
We made significant progress towards achieving pre-pandemic unit
revenues with TRASM of 10.36
cents (on a load factor of 70.8 percent), up 50 percent from
the first quarter. The revenue team did an outstanding job
optimizing loads and unit revenues during the quarter. This strong
revenue performance, coupled with continued cost discipline as
evidenced by our adjusted CASM, excluding fuel
(3), of 5.86 cents,
led to our adjusted operating margin(1) of 20
percent for the quarter.
"These results suggest we are close if not back to 'normal',
where we were in the early days of 2020. We were the first
domestic carrier to grow capacity from 2019 levels. Given the
reduced operations of the past year, this ramp up came with
challenges - delays in infrastructure preparedness at some of our
airports, labor constraints, and severe weather. Our operations
team has done a great job reacting and adapting to these headwinds.
During the third quarter we will continue our growth - capacity
will increase nearly 20 percent, year over two-year.
"Last year at this time I stressed the importance of
strengthening our liquidity to both weather the storm and position
us favorably for growth post-pandemic. The team has done just that.
We currently have $1.2 billion of
cash on hand, up 79 percent from a year ago. Our total net debt
continues to improve at under $400
million, a 52 percent reduction from a year ago. This strong
liquidity leaves us well positioned for future growth. The fleet
team has executed agreements to acquire 21 additional aircraft
since the beginning of the year. These airplanes will all be placed
into service by the end of 2022, thus supporting the remainder of
this year as well as most of next year's growth plan.
"The next year will be an exciting one for the company. We are
preparing the launch of our new loyalty program in the coming
months, Allways Rewards. This program will enable us to further
enhance the customer experience. We also recently announced a new
partnership with Live Nation venues, Ticketmaster and music
festivals - kicking off a multi-year, strategic relationship with
the world's premier live entertainment company. This partnership
will ultimately unlock another layer of leisure offerings, further
enhancing a one-stop shop for our customer. Finally, we will
continue to grow and expand our network, connecting more customers
to world-class vacation destinations.
"I cannot thank our 4,000 team members enough for their
continued efforts in supporting growth while prioritizing customer
safety. Ramping up the operation the past few months has been a
challenge, but our team members continue to work hard to support
the operation. I could not be more proud of their efforts."
Second Quarter 2021 Results
- GAAP earnings per share of $5.49
-
- Adjusted earnings per share(1) (2) (3) of
$3.46
- Consolidated EBITDA(2) (3) of $183.3 million yielding an EBITDA margin of 38.8
percent
-
- Adjusted EBITDA(1) (2) (3) of $138.3 million yielding an adjusted EBITDA margin
of 29.3 percent
- Total June revenue exceeded June of 2019
- Total operating revenue was $472.4 million, up 69.3 percent from the first
quarter and down 3.9 percent when compared to the second quarter of
2019
-
- Sustained yield strength throughout the quarter with
yield up 7.8 percent year over two-year on scheduled service
capacity increases of 4.5 percent
- Total average fare of $126.82, up 10.8 percent year over two-year
-
- Total ancillary average fare $64.25, up 14.6 percent from 2019 driven
primarily by bundled air ancillary offerings, rental car rate
strength, and increased cobrand activity
- TRASM of 10.36 cents, down
5.6 percent year over two-year, and up 50.3 percent from the first
quarter 2021
- Load factor of 70.8%, up nearly 16 percentage points
from the first quarter
- Record-breaking quarter for co-brand activity with June
new cardholder acquisitions becoming the highest month in the
program's history and the highest month for cardholder spend,
beating the prior monthly spend record by more than 40 percent
-
- May marked the third highest acquisition of new cardholders in
program history
- Adjusted operating expense(1) (2) (3) of
$378.6 million, down 1.3 percent from
second quarter 2019 on total system capacity increase of 3.3
percent
-
- Adjusted Operating CASM, excluding fuel (3)
of 5.86 cents, flat when compared to
the second quarter of 2019
- Adjusted operating margin(1) of 19.9
percent
- Expanded the network by adding 29 new routes with four
new cities and complementary service in Phoenix with the addition of Phoenix Sky
Harbor International Airport, bringing total routes served to 596
and 134 cities
- Ranked number two among US airlines within the 2021 Airline
Quality Ranking
(1) Adjusted numbers exclude COVID related special charges,
the net benefit from the payroll support programs, and profit
sharing bonus accruals since the operating margin threshold to
accrue these bonuses would not have been met for the six months
ended June 30, 2021 without the
benefits of the PSPs
(2) Denotes a non-GAAP financial
measure
(3) Refer to the Non-GAAP Presentation section
within this document for further information
Balance Sheet, Cash and Liquidity
- Total cash and investments at June 30, 2021 were $1.2
billion, up from $728 million
at March 31, 2021
-
- Cash from operations of $237
million, including the benefit from the payroll support
program and federal income tax refund of $12
million related to prior period tax net operating
losses
-
- Adjusted cash from operations of $176
million, which excludes the $49.2
million net benefit from the PSPs, and $12 million federal tax refund
- Debt principal payments of $48
million during the quarter
-
- Includes prepayment of debt secured by five aircraft
- $65 million used for cash
capital expenditures
- Raised $335 million from
issuance of 1.6 million shares at a price of $219 per share during the second quarter
- Second quarter interest expense of $17 million, down 20 percent year over
two-year
- Expect to receive $136 million
in federal tax refunds during the second half of the year
related to 2020 net operating losses
- Air traffic liability at June 30,
2021 was $437 million
-
- Balance related to future scheduled flights is $305 million
- Balance related to travel vouchers issued for future use is
$132 million, a 26 percent reduction
from March 31, 2021
Capital Expenditures
- Second quarter capital expenditures related to aircraft,
engines and induction costs were $46
million and $19 million in
other airline capital expenditures
- Second quarter capital expenditures related to deferred
heavy maintenance were $23
million
- Executed agreements to acquire 21 incremental aircraft
year-to-date
Guidance, subject
to revision
|
Previous
|
Current
|
|
|
|
Third Quarter
2021 guidance
|
|
|
|
|
|
|
|
System ASMs - year
over two-year change(1)
|
|
|
16.0 to
20.0%
|
Scheduled
Service ASMs - year over two-year
change(1)
|
|
|
16.0 to
20.0%
|
|
|
|
|
Total operating
revenue - year over two-year change (1)
|
|
|
Up 3.5% to
7.5%
|
|
|
|
|
Fuel cost per
gallon
|
|
|
$
|
2.11
|
|
|
|
|
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)
|
|
$40 to $50
|
$40 to $50
|
|
|
|
|
Interest
expense
|
|
$65 to $70
|
$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)
|
2Q21
|
3Q21
|
YE21
|
A319 (156
seats)
|
35
|
|
35
|
|
35
|
|
A320 (177
seats)
|
23
|
|
23
|
|
22
|
|
A320 (186
seats)
|
45
|
|
49
|
|
51
|
|
Total
|
103
|
|
107
|
|
108
|
|
|
The table above is
provided based on the company's current plans and is subject to
change
|
Allegiant Travel Company will host a conference call with
analysts at 4:30 p.m. ET Wednesday,
July 28 to discuss its second 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
June 30,
|
|
Percent
Change
|
|
2021
|
|
2020
|
|
2019
|
|
YoY
|
|
Yo2Y
|
OPERATING
REVENUES:
|
|
|
|
|
|
|
|
|
|
Passenger
|
$
|
443,747
|
|
|
$
|
116,520
|
|
|
$
|
454,779
|
|
|
280.8
|
|
|
(2.4)
|
|
Third party
products
|
23,001
|
|
|
8,443
|
|
|
18,208
|
|
|
172.4
|
|
|
26.3
|
|
Fixed fee
contracts
|
5,134
|
|
|
3,237
|
|
|
12,487
|
|
|
58.6
|
|
|
(58.9)
|
|
Other
|
551
|
|
|
5,147
|
|
|
6,285
|
|
|
(89.3)
|
|
|
(91.2)
|
|
Total
operating revenues
|
472,433
|
|
|
133,347
|
|
|
491,759
|
|
|
254.3
|
|
|
(3.9)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Salary and
benefits
|
121,906
|
|
|
94,790
|
|
|
113,592
|
|
|
28.6
|
|
|
7.3
|
|
Aircraft
fuel
|
109,456
|
|
|
27,358
|
|
|
119,987
|
|
|
300.1
|
|
|
(8.8)
|
|
Station
operations
|
57,210
|
|
|
27,405
|
|
|
45,870
|
|
|
108.8
|
|
|
24.7
|
|
Maintenance and
repairs
|
22,597
|
|
|
13,032
|
|
|
20,877
|
|
|
73.4
|
|
|
8.2
|
|
Depreciation and
amortization
|
44,522
|
|
|
43,296
|
|
|
38,494
|
|
|
2.8
|
|
|
15.7
|
|
Sales and
marketing
|
17,632
|
|
|
8,909
|
|
|
20,540
|
|
|
97.9
|
|
|
(14.2)
|
|
Aircraft lease
rental
|
5,117
|
|
|
1,427
|
|
|
—
|
|
|
258.6
|
|
|
—
|
|
Other
|
15,501
|
|
|
23,752
|
|
|
24,294
|
|
|
(34.7)
|
|
|
(36.2)
|
|
Payroll Support
Programs grant recognition
|
(61,213)
|
|
|
(74,539)
|
|
|
—
|
|
|
17.9
|
|
|
—
|
|
Special
charges
|
854
|
|
|
81,169
|
|
|
—
|
|
|
(98.9)
|
|
|
—
|
|
Total
operating expenses
|
333,582
|
|
|
246,599
|
|
|
383,654
|
|
|
35.3
|
|
|
(13.1)
|
|
OPERATING INCOME
(LOSS)
|
138,851
|
|
|
(113,252)
|
|
|
108,105
|
|
|
222.6
|
|
|
28.4
|
|
OTHER (INCOME)
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Interest
income
|
(500)
|
|
|
(1,417)
|
|
|
(3,502)
|
|
|
64.7
|
|
|
85.7
|
|
Interest
expense
|
16,720
|
|
|
14,053
|
|
|
20,942
|
|
|
19.0
|
|
|
(20.2)
|
|
Capitalized
interest
|
—
|
|
|
—
|
|
|
(1,038)
|
|
|
—
|
|
|
100.0
|
|
Loss on extinguishment
of debt
|
71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Special
charges
|
—
|
|
|
19,830
|
|
|
—
|
|
|
(100.0)
|
|
|
—
|
|
Other, net
|
(11)
|
|
|
698
|
|
|
(86)
|
|
|
(101.6)
|
|
|
87.2
|
|
Total
other expenses
|
16,280
|
|
|
33,164
|
|
|
16,316
|
|
|
(50.9)
|
|
|
(0.2)
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
122,571
|
|
|
(146,416)
|
|
|
91,789
|
|
|
183.7
|
|
|
33.5
|
|
INCOME TAX PROVISION
(BENEFIT)
|
27,544
|
|
|
(53,313)
|
|
|
21,246
|
|
|
151.7
|
|
|
29.6
|
|
NET INCOME
(LOSS)
|
$
|
95,027
|
|
|
$
|
(93,103)
|
|
|
$
|
70,543
|
|
|
202.1
|
|
|
34.7
|
|
Earnings (loss) per
share to common shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
$5.49
|
|
|
($5.85)
|
|
|
$4.33
|
|
|
193.8
|
|
|
26.8
|
|
Diluted
|
$5.49
|
|
|
($5.85)
|
|
|
$4.33
|
|
|
193.8
|
|
|
26.8
|
|
Weighted average
shares outstanding used in computing earnings per share
attributable to common shareholders(1):
|
|
|
|
|
|
|
|
|
|
Basic
|
17,064
|
|
|
15,902
|
|
|
16,063
|
|
|
7.3
|
|
|
6.2
|
|
Diluted
|
17,073
|
|
|
15,902
|
|
|
16,069
|
|
|
7.4
|
|
|
6.2
|
|
|
(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
Change(1)
|
|
2021
|
|
2020
|
|
2019
|
|
YoY
|
|
Yo2Y
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
|
|
|
|
Passengers
|
3,699,217
|
|
|
1,273,258
|
|
|
4,169,536
|
|
|
190.5
|
|
|
(11.3)
|
|
Available seat miles
(ASMs) (thousands)
|
4,594,542
|
|
|
2,220,755
|
|
|
4,447,066
|
|
|
106.9
|
|
|
3.3
|
|
Operating expense per
ASM (CASM) (cents)
|
7.26
|
|
|
11.10
|
|
|
8.63
|
|
|
(34.6)
|
|
|
(15.9)
|
|
Adjusted operating
expense per ASM (CASM) (cents)(2)
|
8.24
|
|
|
10.80
|
|
|
8.63
|
|
|
(23.7)
|
|
|
(4.5)
|
|
Fuel expense per ASM
(cents)
|
2.38
|
|
|
1.23
|
|
|
2.70
|
|
|
93.5
|
|
|
(11.9)
|
|
Operating CASM,
excluding fuel (cents)
|
4.88
|
|
|
9.87
|
|
|
5.93
|
|
|
(50.6)
|
|
|
(17.7)
|
|
Adjusted operating
CASM, excluding fuel (cents)(2)
|
5.86
|
|
|
9.57
|
|
|
5.93
|
|
|
(38.8)
|
|
|
(1.2)
|
|
ASMs per gallon of
fuel
|
84.8
|
|
|
90.0
|
|
|
82.3
|
|
|
(5.8)
|
|
|
3.0
|
|
Departures
|
31,507
|
|
|
15,089
|
|
|
30,547
|
|
|
108.8
|
|
|
3.1
|
|
Block hours
|
69,809
|
|
|
32,989
|
|
|
68,332
|
|
|
111.6
|
|
|
2.2
|
|
Average stage length
(miles)
|
838
|
|
|
850
|
|
|
853
|
|
|
(1.4)
|
|
|
(1.8)
|
|
Average number of
operating aircraft during period
|
101.8
|
|
|
90.7
|
|
|
85.0
|
|
|
12.2
|
|
|
19.8
|
|
Average block hours
per aircraft per day
|
7.5
|
|
|
3.8
|
|
|
8.8
|
|
|
97.4
|
|
|
(14.8)
|
|
Full-time equivalent
employees at end of period
|
4,104
|
|
|
4,349
|
|
|
4,179
|
|
|
(5.6)
|
|
|
(1.8)
|
|
Fuel gallons consumed
(thousands)
|
54,188
|
|
|
24,664
|
|
|
54,064
|
|
|
119.7
|
|
|
0.2
|
|
Average fuel cost per
gallon
|
$
|
2.02
|
|
|
$
|
1.11
|
|
|
$
|
2.22
|
|
|
82.0
|
|
|
(9.0)
|
|
Scheduled service
statistics:
|
|
|
|
|
|
|
|
|
|
Passengers
|
3,680,254
|
|
|
1,266,077
|
|
|
4,131,855
|
|
|
190.7
|
|
|
(10.9)
|
|
Revenue passenger
miles (RPMs) (thousands)
|
3,188,215
|
|
|
1,107,534
|
|
|
3,603,076
|
|
|
187.9
|
|
|
(11.5)
|
|
Available seat miles
(ASMs) (thousands)
|
4,505,786
|
|
|
2,174,683
|
|
|
4,311,182
|
|
|
107.2
|
|
|
4.5
|
|
Load factor
|
70.8
|
%
|
|
50.9
|
%
|
|
83.6
|
%
|
|
19.9
|
|
|
(12.8)
|
|
Departures
|
30,763
|
|
|
14,683
|
|
|
29,567
|
|
|
109.5
|
|
|
4.0
|
|
Block hours
|
68,334
|
|
|
32,248
|
|
|
66,135
|
|
|
111.9
|
|
|
3.3
|
|
Yield
(cents)
|
7.22
|
|
|
4.63
|
|
|
6.70
|
|
|
56.2
|
|
|
7.8
|
|
Total passenger
revenue per ASM (TRASM) (cents)(3)
|
10.36
|
|
|
5.75
|
|
|
10.97
|
|
|
80.2
|
|
|
(5.6)
|
|
Average fare -
scheduled service(4)
|
$
|
62.58
|
|
|
$
|
40.46
|
|
|
$
|
58.39
|
|
|
54.7
|
|
|
7.2
|
|
Average fare -
air-related charges(4)
|
$
|
58.00
|
|
|
$
|
51.57
|
|
|
$
|
51.68
|
|
|
12.5
|
|
|
12.2
|
|
Average fare - third
party products
|
$
|
6.25
|
|
|
$
|
6.67
|
|
|
$
|
4.40
|
|
|
(6.3)
|
|
|
42.0
|
|
Average fare -
total
|
$
|
126.82
|
|
|
$
|
98.70
|
|
|
$
|
114.47
|
|
|
28.5
|
|
|
10.8
|
|
Average stage length
(miles)
|
842
|
|
|
855
|
|
|
853
|
|
|
(1.5)
|
|
|
(1.3)
|
|
Fuel gallons consumed
(thousands)
|
53,022
|
|
|
24,124
|
|
|
52,327
|
|
|
119.8
|
|
|
1.3
|
|
Average fuel cost per
gallon
|
$
|
2.01
|
|
|
$
|
1.08
|
|
|
$
|
2.22
|
|
|
86.1
|
|
|
(9.5)
|
|
Percent of sales
through website during period
|
94.3
|
%
|
|
93.8
|
%
|
|
93.5
|
%
|
|
0.5
|
|
|
0.8
|
|
Other
data:
|
|
|
|
|
|
|
|
|
|
Rental car days
sold
|
404,760
|
|
|
135,536
|
|
|
540,960
|
|
|
198.6
|
|
|
(25.2)
|
|
Hotel room nights
sold
|
72,701
|
|
|
12,772
|
|
|
114,191
|
|
|
469.2
|
|
|
(36.3)
|
|
|
(1) Except load
factor and percent of sales through website, which is percentage
point change.
|
(2) Adjusted
numbers exclude COVID related special charges, the net benefit from
the payroll support programs, and profit sharing bonus accruals
since the operating margin threshold to accrue these bonuses would
not have been met for the six months ended June 30, 2021 without
the benefits of the PSPs
|
(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)
|
|
|
Six Months Ended
June 30, 2021
|
|
Percent
Change
|
|
2021
|
|
2020
|
|
2019
|
|
YoY
|
|
Yo2Y
|
OPERATING
REVENUES:
|
|
|
|
|
|
|
|
|
|
Passenger
|
$
|
700,441
|
|
|
$
|
495,431
|
|
|
$
|
874,755
|
|
|
41.4
|
|
|
(19.9)
|
|
Third party
products
|
36,622
|
|
|
24,419
|
|
|
35,350
|
|
|
50.0
|
|
|
3.6
|
|
Fixed fee
contracts
|
12,827
|
|
|
12,156
|
|
|
23,061
|
|
|
5.5
|
|
|
(44.4)
|
|
Other
|
1,667
|
|
|
10,522
|
|
|
10,215
|
|
|
(84.2)
|
|
|
(83.7)
|
|
Total
operating revenues
|
751,557
|
|
|
542,528
|
|
|
943,381
|
|
|
38.5
|
|
|
(20.3)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Salary and
benefits
|
239,856
|
|
|
207,436
|
|
|
233,003
|
|
|
15.6
|
|
|
2.9
|
|
Aircraft
fuel
|
192,305
|
|
|
116,171
|
|
|
219,670
|
|
|
65.5
|
|
|
(12.5)
|
|
Station
operations
|
100,303
|
|
|
68,405
|
|
|
84,835
|
|
|
46.6
|
|
|
18.2
|
|
Maintenance and
repairs
|
45,968
|
|
|
34,827
|
|
|
43,701
|
|
|
32.0
|
|
|
5.2
|
|
Depreciation and
amortization
|
87,696
|
|
|
86,995
|
|
|
74,676
|
|
|
0.8
|
|
|
17.4
|
|
Sales and
marketing
|
29,241
|
|
|
27,364
|
|
|
41,466
|
|
|
6.9
|
|
|
(29.5)
|
|
Aircraft lease
rental
|
9,837
|
|
|
2,389
|
|
|
—
|
|
|
311.8
|
|
|
—
|
|
Other
|
33,276
|
|
|
50,468
|
|
|
46,849
|
|
|
(34.1)
|
|
|
(29.0)
|
|
Payroll Support
Programs grant recognition
|
(152,971)
|
|
|
(74,539)
|
|
|
—
|
|
|
(105.2)
|
|
|
—
|
|
Special
charges
|
2,592
|
|
|
247,267
|
|
|
—
|
|
|
(99.0)
|
|
|
—
|
|
Total
operating expenses
|
588,103
|
|
|
766,783
|
|
|
744,200
|
|
|
(23.3)
|
|
|
(21.0)
|
|
OPERATING INCOME
(LOSS)
|
163,454
|
|
|
(224,255)
|
|
|
199,181
|
|
|
172.9
|
|
|
(17.9)
|
|
OTHER (INCOME)
EXPENSES:
|
|
|
|
|
|
|
|
|
|
Interest
income
|
(963)
|
|
|
(3,728)
|
|
|
(6,703)
|
|
|
74.2
|
|
|
85.6
|
|
Interest
expense
|
33,508
|
|
|
32,206
|
|
|
39,025
|
|
|
4.0
|
|
|
(14.1)
|
|
Capitalized
interest
|
—
|
|
|
(4,067)
|
|
|
(2,541)
|
|
|
100.0
|
|
|
100.0
|
|
Loss on extinguishment
of debt
|
71
|
|
|
1,222
|
|
|
3,677
|
|
|
(94.2)
|
|
|
(98.1)
|
|
Special
charges
|
—
|
|
|
26,632
|
|
|
—
|
|
|
(100.0)
|
|
|
—
|
|
Other, net
|
(404)
|
|
|
623
|
|
|
15
|
|
|
(164.8)
|
|
|
(2,793.3)
|
|
Total
other expenses
|
32,212
|
|
|
52,888
|
|
|
33,473
|
|
|
(39.1)
|
|
|
(3.8)
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
131,242
|
|
|
(277,143)
|
|
|
165,708
|
|
|
147.4
|
|
|
(20.8)
|
|
INCOME TAX PROVISION
(BENEFIT)
|
29,346
|
|
|
(151,030)
|
|
|
38,041
|
|
|
119.4
|
|
|
(22.9)
|
|
NET INCOME
(LOSS)
|
$
|
101,896
|
|
|
$
|
(126,113)
|
|
|
$
|
127,667
|
|
|
180.8
|
|
|
(20.2)
|
|
Earnings (loss) per
share to common shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
$6.04
|
|
|
($7.93)
|
|
|
$7.85
|
|
|
176.2
|
|
|
(23.1)
|
|
Diluted
|
$6.04
|
|
|
($7.93)
|
|
|
$7.84
|
|
|
176.2
|
|
|
(23.0)
|
|
Weighted average
shares outstanding used in computing earnings per share
attributable to common shareholders(1):
|
|
|
|
|
|
|
|
|
|
Basic
|
16,618
|
|
|
15,927
|
|
|
16,037
|
|
|
4.3
|
|
|
3.6
|
|
Diluted
|
16,632
|
|
|
15,927
|
|
|
16,050
|
|
|
4.4
|
|
|
3.6
|
|
|
(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 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, 2021
|
|
Percent
Change(1)
|
|
2021
|
|
2020
|
|
2019
|
|
YoY
|
|
Yo2Y
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
|
|
|
|
Passengers
|
6,033,720
|
|
|
4,448,708
|
|
|
7,619,814
|
|
|
35.6
|
|
|
(20.8)
|
|
Available seat miles
(ASMs) (thousands)
|
8,608,531
|
|
|
6,288,427
|
|
|
8,357,304
|
|
|
36.9
|
|
|
3.0
|
|
Operating expense per
ASM (CASM) (cents)
|
6.83
|
|
|
12.19
|
|
|
8.90
|
|
|
(44.0)
|
|
|
(23.3)
|
|
Adjusted operating
expense per ASM (CASM) (cents)(2)
|
8.33
|
|
|
9.45
|
|
|
8.90
|
|
|
(11.9)
|
|
|
(6.4)
|
|
Fuel expense per ASM
(cents)
|
2.23
|
|
|
1.85
|
|
|
2.63
|
|
|
20.5
|
|
|
(15.2)
|
|
Operating CASM,
excluding fuel (cents)
|
4.60
|
|
|
10.35
|
|
|
6.27
|
|
|
(55.6)
|
|
|
(26.6)
|
|
Adjusted operating
CASM, excluding fuel (cents)(2)
|
6.09
|
|
|
7.60
|
|
|
6.27
|
|
|
(19.9)
|
|
|
(2.9)
|
|
ASMs per gallon of
fuel
|
87.3
|
|
|
87.2
|
|
|
83.1
|
|
|
0.1
|
|
|
5.0
|
|
Departures
|
57,191
|
|
|
41,401
|
|
|
55,747
|
|
|
38.1
|
|
|
2.6
|
|
Block hours
|
130,183
|
|
|
95,112
|
|
|
128,151
|
|
|
36.9
|
|
|
1.6
|
|
Average stage length
(miles)
|
865
|
|
|
879
|
|
|
876
|
|
|
(1.6)
|
|
|
(1.3)
|
|
Average number of
aircraft during period
|
99.5
|
|
|
92.1
|
|
|
82.3
|
|
|
8.0
|
|
|
20.9
|
|
Average block hours
per aircraft per day
|
7.2
|
|
|
5.5
|
|
|
8.6
|
|
|
30.9
|
|
|
(16.3)
|
|
Full-time equivalent
employees at end of period
|
4,104
|
|
|
4,349
|
|
|
4,179
|
|
|
(5.6)
|
|
|
(1.8)
|
|
Fuel gallons consumed
(thousands)
|
98,614
|
|
|
72,143
|
|
|
100,537
|
|
|
36.7
|
|
|
(1.9)
|
|
Average fuel cost per
gallon
|
$
|
1.95
|
|
|
$
|
1.61
|
|
|
$
|
2.18
|
|
|
21.1
|
|
|
(10.6)
|
|
|
|
|
|
|
|
|
|
|
|
Scheduled service
statistics:
|
|
|
|
|
|
|
|
|
|
Passengers
|
6,003,556
|
|
|
4,420,683
|
|
|
7,553,393
|
|
|
35.8
|
|
|
(20.5)
|
|
Revenue passenger
miles (RPMs) (thousands)
|
5,354,632
|
|
|
4,033,017
|
|
|
6,794,122
|
|
|
32.8
|
|
|
(21.2)
|
|
Available seat miles
(ASMs) (thousands)
|
8,426,876
|
|
|
6,138,692
|
|
|
8,113,315
|
|
|
37.3
|
|
|
3.9
|
|
Load factor
|
63.5
|
%
|
|
65.7
|
%
|
|
83.7
|
%
|
|
(2.2)
|
|
|
(24.1)
|
|
Departures
|
55,710
|
|
|
40,167
|
|
|
53,911
|
|
|
38.7
|
|
|
3.3
|
|
Block hours
|
127,185
|
|
|
92,594
|
|
|
124,098
|
|
|
37.4
|
|
|
2.5
|
|
Yield
(cents)
|
6.83
|
|
|
6.28
|
|
|
7.06
|
|
|
8.8
|
|
|
(3.3)
|
|
Total passenger
revenue per ASM (TRASM) (cents)(3)
|
8.75
|
|
|
8.47
|
|
|
11.22
|
|
|
—
|
|
|
(22.0)
|
|
Average fare -
scheduled service(4)
|
$
|
60.95
|
|
|
$
|
57.27
|
|
|
$
|
63.49
|
|
|
6.4
|
|
|
(4.0)
|
|
Average fare -
air-related charges(4)
|
$
|
55.72
|
|
|
$
|
54.80
|
|
|
$
|
52.32
|
|
|
1.7
|
|
|
6.5
|
|
Average fare - third
party products
|
$
|
6.10
|
|
|
$
|
5.52
|
|
|
$
|
4.68
|
|
|
10.5
|
|
|
30.3
|
|
Average fare -
total
|
$
|
122.77
|
|
|
$
|
117.59
|
|
|
$
|
120.49
|
|
|
4.4
|
|
|
1.9
|
|
Average stage length
(miles)
|
869
|
|
|
883
|
|
|
878
|
|
|
(1.6)
|
|
|
(1.0)
|
|
Fuel gallons consumed
(thousands)
|
96,329
|
|
|
70,229
|
|
|
97,395
|
|
|
37.2
|
|
|
(1.1)
|
|
Average fuel cost per
gallon
|
$
|
1.92
|
|
|
$
|
1.60
|
|
|
$
|
2.18
|
|
|
20.0
|
|
|
(11.9)
|
|
Percent of sales
through website during period
|
93.8
|
%
|
|
93.7
|
%
|
|
93.5
|
%
|
|
0.1
|
|
|
0.3
|
|
Other
data:
|
|
|
|
|
|
|
|
|
|
Rental car days
sold
|
680,344
|
|
|
616,582
|
|
|
1,012,558
|
|
|
10.3
|
|
|
(32.8)
|
|
Hotel room nights
sold
|
128,909
|
|
|
104,776
|
|
|
219,206
|
|
|
23.0
|
|
|
(41.2)
|
|
|
(1) Except load
factor and percent of sales through website, which is percentage
point change.
|
(2) Adjusted
numbers exclude COVID related special charges, the net benefit from
the payroll support programs, and profit sharing bonus accruals
since the operating margin threshold to accrue these bonuses would
not have been met for the six months ended June 30, 2021 without
the benefits of the PSPs
|
(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)
|
June 30, 2021
(unaudited)
|
|
December 31,
2020
|
|
Percent
Change
|
Unrestricted cash and
investments
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
418.4
|
|
|
$
|
152.8
|
|
|
173.8
|
|
Short-term
investments
|
767.4
|
|
|
532.5
|
|
|
44.1
|
|
Total unrestricted
cash and investments
|
1,185.8
|
|
|
685.3
|
|
|
73.0
|
|
Debt
|
|
|
|
|
|
Current maturities of
long-term debt and finance lease obligations,
net of related costs
|
144.4
|
|
|
217.2
|
|
|
(33.5)
|
|
Long-term debt and
finance lease obligations, net of current
maturities and related costs
|
1,441.1
|
|
|
1,441.8
|
|
|
—
|
|
Total debt
|
1,585.5
|
|
|
1,659.0
|
|
|
(4.4)
|
|
Debt, net of
liquidity
|
399.7
|
|
|
973.7
|
|
|
(59.0)
|
|
Total Allegiant
Travel Company shareholders' equity
|
1,147.1
|
|
|
699.4
|
|
|
64.0
|
|
Summary Cash
Flow
|
|
|
Six Months Ended
June 30,
|
|
Percent
|
Unaudited
(millions)
|
2021
|
|
2020
|
|
Change
|
Cash provided by
operating activities
|
$
|
405.0
|
|
|
$
|
276.7
|
|
|
46.4
|
|
Changes in air
traffic liability
|
129.2
|
|
|
104.8
|
|
|
23.3
|
|
Changes in working
capital, ex air traffic liability
|
65.4
|
|
|
(134.1)
|
|
|
148.8
|
|
Purchase of property
and equipment
|
134.5
|
|
|
170.7
|
|
|
(21.2)
|
|
Cash dividends paid
to shareholders
|
—
|
|
|
11.4
|
|
|
(100.0)
|
|
Proceeds from the
issuance of long-term debt
|
106.7
|
|
|
175.7
|
|
|
(39.3)
|
|
Principal payments on
long-term debt & finance lease obligations
|
199.6
|
|
|
98.2
|
|
|
103.3
|
|
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,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Basic:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
95,027
|
|
|
$
|
(93,103)
|
|
|
$
|
101,896
|
|
|
$
|
(126,113)
|
|
Less income allocated
to participating securities
|
(1,285)
|
|
|
—
|
|
|
(1,451)
|
|
|
(236)
|
|
Net income (loss)
attributable to common stock
|
$
|
93,742
|
|
|
$
|
(93,103)
|
|
|
$
|
100,445
|
|
|
$
|
(126,349)
|
|
Earnings (loss) per
share, basic
|
$
|
5.49
|
|
|
$
|
(5.85)
|
|
|
$
|
6.04
|
|
|
$
|
(7.93)
|
|
Weighted-average
shares outstanding
|
17,064
|
|
|
15,902
|
|
|
16,618
|
|
|
15,927
|
|
Diluted:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
95,027
|
|
|
$
|
(93,103)
|
|
|
$
|
101,896
|
|
|
$
|
(126,113)
|
|
Less income allocated
to participating securities
|
(1,284)
|
|
|
—
|
|
|
(1,449)
|
|
|
(236)
|
|
Net income (loss)
attributable to common stock
|
$
|
93,743
|
|
|
$
|
(93,103)
|
|
|
$
|
100,447
|
|
|
$
|
(126,349)
|
|
Earnings (loss) per
share, diluted
|
$
|
5.49
|
|
|
$
|
(5.85)
|
|
|
$
|
6.04
|
|
|
$
|
(7.93)
|
|
Weighted-average
shares outstanding (1)
|
17,064
|
|
|
15,902
|
|
|
16,618
|
|
|
15,927
|
|
|
(1) Dilutive
effect of common stock equivalents excluded from the diluted per
share calculation is not material.
|
Appendix A
Non-GAAP
Presentation
Three and Six Months Ended June 30, 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 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Reconciliation of
adjusted operating income (loss)
(millions)
|
|
|
|
|
|
|
|
Operating income
(loss) as reported (GAAP)
|
$
|
138.9
|
|
|
$
|
(113.3)
|
|
|
$
|
163.5
|
|
|
$
|
(224.3)
|
|
|
|
|
|
|
|
|
|
Net benefit from PSPs
(4)
|
(55.3)
|
|
|
(74.5)
|
|
|
(140.6)
|
|
|
(74.5)
|
|
Operating special
charges
|
0.9
|
|
|
81.2
|
|
|
2.6
|
|
|
247.3
|
|
Profit sharing
(5)
|
9.4
|
|
|
—
|
|
|
9.4
|
|
|
—
|
|
Adjusted operating
income (loss) (1)
|
93.9
|
|
|
(106.6)
|
|
|
34.9
|
|
|
(51.5)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Reconciliation of
adjusted income (loss) before
income taxes (millions)
|
|
|
|
|
|
|
|
Income (loss) before
income taxes as reported (GAAP)
|
$
|
122.6
|
|
|
$
|
(146.4)
|
|
|
$
|
131.2
|
|
|
$
|
(277.1)
|
|
|
|
|
|
|
|
|
|
Net benefit from PSPs
(4)
|
(55.3)
|
|
|
(74.5)
|
|
|
(140.6)
|
|
|
(74.5)
|
|
Special charges
(operating & non-operating)
|
0.9
|
|
|
101.0
|
|
|
2.6
|
|
|
273.9
|
|
Profit sharing
(5)
|
9.4
|
|
|
—
|
|
|
9.4
|
|
|
—
|
|
Adjusted income
(loss) before income taxes (1)
|
77.6
|
|
|
(119.9)
|
|
|
2.6
|
|
|
(77.7)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Reconciliation of
adjusted net income (loss)
(millions) and adjusted earnings (loss) per share
(cents)
|
|
|
|
|
|
|
|
Adjusted income
(loss) before income taxes as
reported (GAAP)
|
$
|
77.6
|
|
|
$
|
(119.9)
|
|
|
$
|
2.6
|
|
|
$
|
(77.7)
|
|
Provision (benefit)
for income taxes as reported
(GAAP)
|
27.5
|
|
|
(53.3)
|
|
|
29.3
|
|
|
(151.0)
|
|
Adjusted provision
(benefit) for income taxes (1) (2)
|
17.6
|
|
|
(25.2)
|
|
|
0.6
|
|
|
(16.3)
|
|
Net income (loss)
adjusted for special items, payroll
support, and adjustments to tax resulting from payroll
support (1)
|
60.0
|
|
|
(94.7)
|
|
|
2.0
|
|
|
(61.4)
|
|
|
|
|
|
|
|
|
|
Diluted shares as
reported (GAAP)
|
17,073
|
|
|
15,902
|
|
|
16,632
|
|
|
15,927
|
|
Diluted earnings
(loss) per share as reported (GAAP)
|
5.49
|
|
|
(5.85)
|
|
|
6.04
|
|
|
(7.93)
|
|
Adjusted fully
diluted earnings (loss) per share (1)
|
3.46
|
|
|
(5.96)
|
|
|
0.12
|
|
|
(3.87)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Reconciliation of
adjusted CASM and CASM
excluding fuel (millions, unless otherwise noted)
|
|
|
|
|
|
|
|
Operating expense as
reported (GAAP)
|
$
|
333.6
|
|
|
$
|
246.6
|
|
|
$
|
588.1
|
|
|
$
|
766.8
|
|
|
|
|
|
|
|
|
|
Net benefit from PSPs
(4)
|
55.3
|
|
|
74.5
|
|
|
140.6
|
|
|
74.5
|
|
Operating special
charges
|
(0.9)
|
|
|
(81.2)
|
|
|
(2.6)
|
|
|
(247.3)
|
|
Profit sharing
(5)
|
(9.4)
|
|
|
—
|
|
|
(9.4)
|
|
|
—
|
|
Adjusted operating
expense
|
378.6
|
|
|
239.9
|
|
|
716.7
|
|
|
594.0
|
|
Fuel expense as
reported
|
109.5
|
|
|
27.4
|
|
|
192.3
|
|
|
116.2
|
|
Adjusted operating
expense excluding fuel
|
269.1
|
|
|
212.5
|
|
|
524.4
|
|
|
477.8
|
|
|
|
|
|
|
|
|
|
Available seat miles
(ASMs) (thousands)
|
4,594,542
|
|
|
2,220,755
|
|
|
8,608,531
|
|
|
6,288,427
|
|
|
|
|
|
|
|
|
|
Operating expense per
ASM as reported (CASM) (cents)
|
7.26
|
|
|
11.10
|
|
|
6.83
|
|
|
12.19
|
|
Adjusted operating
expense per ASM (CASM) (cents)
|
8.24
|
|
|
10.80
|
|
|
8.33
|
|
|
9.45
|
|
|
|
|
|
|
|
|
|
Operating CASM,
excluding fuel as reported (cents)
|
4.88
|
|
|
9.87
|
|
|
4.60
|
|
|
10.35
|
|
Adjusted operating
CASM, excluding fuel (cents)
|
5.86
|
|
|
9.57
|
|
|
6.09
|
|
|
7.60
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Reconciliation of
consolidated EBITDA to EBITDA
as defined by certain credit agreements (millions)
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
95.0
|
|
|
$
|
(93.1)
|
|
|
$
|
101.9
|
|
|
$
|
(126.1)
|
|
Interest expense,
net
|
16.2
|
|
|
12.6
|
|
|
32.5
|
|
|
24.4
|
|
Income tax provision
(benefit)
|
27.5
|
|
|
(53.3)
|
|
|
29.3
|
|
|
(151.0)
|
|
Depreciation and
amortization
|
44.5
|
|
|
43.3
|
|
|
87.7
|
|
|
87.0
|
|
Loss on debt
extinguishment
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
1.2
|
|
Consolidated EBITDA
(1)
|
183.3
|
|
|
(90.5)
|
|
|
251.5
|
|
|
(164.5)
|
|
Adjusting items as
defined per credit agreements (3)
|
18.6
|
|
|
222.1
|
|
|
41.0
|
|
|
525.0
|
|
EBITDA as defined by
certain credit agreements (1)
|
201.9
|
|
|
131.6
|
|
|
292.5
|
|
|
360.5
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Reconciliation of
consolidated EBITDA to adjusted
EBITDA (millions)
|
|
|
|
|
|
|
|
Consolidated EBITDA
(per calculation in previous table) (1)
|
$
|
183.3
|
|
|
$
|
(90.5)
|
|
|
$
|
251.5
|
|
|
$
|
(164.5)
|
|
|
|
|
|
|
|
|
|
Net Benefit from PSP
(4)
|
(55.3)
|
|
|
(74.5)
|
|
|
(140.6)
|
|
|
(74.5)
|
|
Operating special
charges
|
0.9
|
|
|
81.2
|
|
|
2.6
|
|
|
247.3
|
|
Non-operating special
charges
|
—
|
|
|
19.8
|
|
|
—
|
|
|
26.6
|
|
Profit sharing
(5)
|
9.4
|
|
|
—
|
|
|
9.4
|
|
|
—
|
|
Adjusted EBITDA
(1)
|
138.3
|
|
|
(64.0)
|
|
|
122.9
|
|
|
34.9
|
|
|
(1) Denotes
non-GAAP figure.
|
(2) Adjusted
income tax for 2021 estimates a 23.0% effective rate
|
(3) Adjusting
items include the following: loss on impairment, Sunseeker net
loss, stock compensation expense, amortization of debt issuance
costs, (gain)/loss on disposal of assets, tax provision - in excess
of cash paid, and other special non-recurring items.
|
(4) Net benefit
from PSPs includes "PSP3" and top-off from "PSP2"
|
(5) Profit sharing
bonus accruals included as adjustment since the operating margin
threshold to accrue these bonuses would not have been met for the
six months ended June 30, 2021 without the benefits of the
PSPs
|
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SOURCE Allegiant Travel Company