First quarter 2024 GAAP diluted
loss per share of $(0.07)
First quarter 2024 diluted
earnings per share, excluding special charges of $0.57(1)(4)(5)
First quarter 2024 airline only
diluted earnings per share, excluding special charges of
$1.08(1)(4)(6)
LAS
VEGAS, May 7, 2024 /PRNewswire/ -- Allegiant
Travel Company (NASDAQ: ALGT) today reported the following
financial results for the first quarter 2024, as well as
comparisons to the prior year:
Consolidated
|
Three Months Ended
March 31,
|
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2024
|
|
2023
|
|
YoY
|
Total operating
revenue
|
$
656.4
|
|
$
649.7
|
|
1.0 %
|
Total operating
expense
|
641.0
|
|
554.9
|
|
15.5 %
|
Operating
income
|
15.4
|
|
94.8
|
|
(83.8) %
|
Income (loss) before
income taxes
|
(1.3)
|
|
74.4
|
|
NM
|
Net income
(loss)
|
(0.9)
|
|
56.1
|
|
NM
|
Diluted earnings (loss)
per share
|
(0.07)
|
|
3.09
|
|
NM
|
Sunseeker special
charges, net of recoveries (4)
|
(1.8)
|
|
(1.6)
|
|
NM
|
Airline special charges
(4)
|
14.9
|
|
—
|
|
NM
|
Net income, excluding
special charges net of
recoveries(1)(3)(5)
|
10.4
|
|
55.3
|
|
(81.2) %
|
Diluted earnings per
share excluding special charges net of
recoveries(1)(3)(5)
|
0.57
|
|
3.04
|
|
(81.3) %
|
|
|
Airline
only
|
Three Months Ended
March 31,
|
|
Percent
Change(2)
|
(unaudited) (in
millions, except per share amounts)
|
2024
|
|
2023
|
|
YoY
|
Airline operating
revenue
|
$
632.5
|
|
$
649.7
|
|
(2.6) %
|
Airline operating
expense
|
608.3
|
|
552.1
|
|
10.2 %
|
Airline operating
income
|
24.2
|
|
97.6
|
|
(75.2) %
|
Airline income before
income taxes
|
12.5
|
|
78.9
|
|
(84.2) %
|
Airline net income
(1)(3)
|
11.4
|
|
59.9
|
|
(81.0) %
|
Airline special charges
(4)
|
14.9
|
|
—
|
|
NM
|
Airline net income,
excluding special charges (1)(3)(6)
|
19.8
|
|
59.9
|
|
(66.9) %
|
Airline operating
margin, excluding special charges
(1)(6)
|
6.2 %
|
|
15.0 %
|
|
(8.8)
|
Airline diluted
earnings per share, excluding special charges
(1)(3)(6)
|
1.08
|
|
3.30
|
|
(67.3) %
|
(1)
|
Denotes a non-GAAP financial measure. Refer to the
Non-GAAP Presentation section within this document for further
information and for calculation of per share
figures.
|
(2)
|
Except Airline operating margin, excluding special
charges, which is percentage point change.
|
(3)
|
Refer to the Non-GAAP Presentation section within
this document for the income tax effect of non-GAAP
adjustments.
|
(4)
|
In 2024 and 2023, we recognized as special charges
the full amount of estimated property damage to Sunseeker
Resort due to weather and other insured events less the amount of
recognized insurance recoveries through the end of the applicable
period. In first quarter 2024, we also recognized aircraft
accelerated depreciation as special charges related to our revised
fleet plan. We sometimes refer to these amounts as "specials" in
this earnings release.
|
(5)
|
Adjusted to exclude the impacts of property damage
to Sunseeker Resort, net of recoveries, and aircraft
accelerated depreciation charges resulting from our revised fleet
plan.
|
(6)
|
Adjusted to exclude aircraft accelerated depreciation
charges recognized as special charges related to our revised fleet
plan.
|
NM
|
Not
meaningful
|
*
|
Note
that amounts may not recalculate due to rounding
|
"We finished the quarter with diluted earnings per share,
excluding special charges, of 57
cents," stated Maurice J. Gallagher,
Jr., chairman and CEO of Allegiant Travel Company. "The peak
demand environment remained strong throughout the quarter, with
TRASM representing the second best first quarter TRASM in company
history. Demand trends are holding into the second quarter, and
although we expect TRASM to be down from the highs of 2023, we
anticipate second quarter TRASM will again be among the best second
quarters in company history – particularly impressive given
expected growth during the peak month of June of roughly six
percent, year-over-year.
"The first quarter marked the first full quarter of operations
at Sunseeker Resort. Hats off to the team led by Micah Richins and Jason
Shkorupa. The final product is truly amazing and unique to
that part of Florida. It will take
time to build to financial maturity. We are still in the early
stages, but our marketing efforts are now in full swing.
Encouragingly, food and beverage surpassed our initial expectations
and accounted for nearly half of total Sunseeker revenue during the
first quarter. I am excited to see the potential of this property
unfold in the coming years."
"I am happy to report another quarter of near industry-leading
operational results," stated Gregory
Anderson, president of Allegiant Travel Company. "The team's
efforts yielded a controllable completion of 99.7 percent. Over the
past 18 months we have prioritized operational integrity, and I
could not be prouder of Team Allegiant as we continue to achieve
record high net promoter scores from our customers.
"While I am pleased with our operational and customer service
performance, our first quarter adjusted airline-only operating
margin of roughly six percent is disappointing. These lower margins
were largely driven by temporary headwinds such as Boeing's
inability to meet its delivery schedule, delayed pricing
functionality due to the integration of Navitaire, our new
reservations and revenue system, and lower aircraft utilization in
our peak demand periods – we are fixing all three of these items.
Excluding these headwinds and on a more normalized basis, our
adjusted airline operating margin for the first quarter would have
been approximately 13 percent.
"On the labor front, I am pleased to announce our flight
attendants overwhelmingly voted to ratify their tentative
agreement. This new contract will not only provide well-deserved
pay increases, but also comes with several quality-of-life
improvements. Our pilot contract remains in federal mediation. The
Teamsters that represent our pilots appointed a new negotiating
team, and I am encouraged by the improved collaboration and
progress now being made at the table – getting a deal complete
remains a top priority.
"2024 is a transitional year for the company. We expect to have
all of our labor agreements finalized. We have a clear path to
increasing utilization and improving productivity amongst our work
groups. We expect to integrate the MAX aircraft into our fleet in
the coming months. We are well on our way to unlocking the full
power of our Navitaire reservation system and providing strong
opportunities to further increase our ancillary revenues. Achieving
these items will return us to our industry leading margins as our
airline is one of the best proven models in the
business."
First Quarter 2024 Results and Highlights
- Total operating revenue of $656.4M, up 1.0 percent over the prior year
- Total fixed fee contracts revenue of $18.9M, up 33.6 percent year-over-year
- Operating income, excluding
specials,(1)(2)(3) of $28.5M, yielding an adjusted operating margin
of 4.3 percent
- Airline-only operating income, excluding
specials,(1)(5) of $39.1M, yielding an airline-only adjusted
operating margin of 6.2 percent
- Income before income tax, excluding
specials,(1)(2)(3) of $11.8M, yielding an adjusted pre-tax margin of
1.8 percent
- Airline-only income before income tax, excluding
specials,(1)(5) of $27.5M, yielding an adjusted pre-tax margin of
4.3 percent
- Consolidated EBITDA, excluding
specials,(1)(2)(3) of $92.3M, yielding an adjusted EBITDA margin of
14.1 percent
- Airline-only EBITDA, excluding specials,(1)
of $97.0M, an adjusted 15.3 percent
margin
- Airline-only operating CASM, excluding fuel and special
charges,(4) of 8.87 ¢, up 14.5 percent
year-over-year
- Includes $20.4M in incremental
cost related to accrual of pilot retention bonuses
- $34.7M in total
cobrand credit card remuneration received from Bank of America,
up 23.7 percent from the prior year
- Enrolled 540K new Allways
Rewards members during the first quarter bringing total members
to 17.9M
- In April, ratified a new five-year agreement with the
Transport Workers Union of America, AFL-CIO Local 577,
representing Allegiant's flight attendants
- Agreement includes immediate wage increases as well as certain
quality-of-life improvements
- Ranked third on the American Customer Satisfaction Index for
Airlines, moving up from spot seven in 2023
(1)
|
Denotes a non-GAAP
financial measure. Refer to the Non-GAAP Presentation section
within this document for further information and for calculation of
per share figures.
|
(2)
|
In 2024 and 2023, we
recognized as special charges the full amount of estimated property
damage to Sunseeker Resort due to weather and other insured events
less the amount of recognized insurance recoveries through the end
of the applicable period. In first quarter 2024, we also recognized
aircraft accelerated depreciation as special charges related to our
revised fleet plan.
|
(3)
|
Adjusted to exclude
the impacts of property damage to Sunseeker Resort, net of
recoveries, and aircraft accelerated depreciation charges resulting
from our revised fleet plan.
|
(4)
|
Adjusted to exclude
aircraft accelerated depreciation recognized as special charges
related to our revised fleet plan.
|
Balance Sheet, Cash and Liquidity
- Total available liquidity at March 31, 2024 was
$1.1B, which included $853.7M in cash and investments, and $275.0M in undrawn revolving credit
facilities
- $167.8M in cash from
operations during the first quarter 2024
- Total debt at March 31, 2024 was $2.2B
- Net debt at March 31, 2024 was $1.4B
- Debt principal payments of $31.5M during the quarter
- Returned $11.0M in
dividends during the quarter
- Scheduled payment of quarterly dividend in the amount of
$0.60 per share on June 3, 2024 to shareholders of record on
May 15, 2024
- Air traffic liability at March 31, 2024 was
$432.6M
Airline Capital Expenditures
- First quarter capital expenditures of $122.2M, which included $82.6M for aircraft purchases and inductions,
pre-delivery deposits, and other related costs, and $39.6M in other airline capital expenditures
- First quarter deferred heavy maintenance
expenditures were $18.1M
Sunseeker Resort Charlotte Harbor
- Reported total operating revenues of $23.9M during its first quarter of
operation
- First quarter occupancy was roughly 40 percent with an average
daily rate of $330 per night
Guidance, subject to
revision
|
|
|
|
|
|
Second quarter
2024 airline-only guidance
|
|
|
|
|
|
|
|
System ASMs - year over
year change
|
|
|
~(1.0%)
|
Scheduled service
ASMs - year over year change
|
|
|
~(1.0%)
|
|
|
|
|
Fuel cost per
gallon
|
|
|
$
2.90
|
Operating
margin
|
|
|
7.0% to 9.0%
|
Airline-only earnings
per share, excluding special charges
|
|
|
$1.25 -
$1.75
|
|
|
|
|
|
|
|
|
Second quarter
2024 consolidated guidance
|
|
|
|
|
|
|
|
Consolidated earnings
per share, excluding special charges
|
|
|
$0.50 -
$1.00
|
|
|
|
|
Full-year 2024
airline-only guidance
|
|
|
|
|
|
|
|
System ASMs - year over
year change
|
|
|
2.0% to 4.0%
|
Scheduled service ASMs
- year over year change
|
|
|
2.0% to 4.0%
|
|
|
|
|
Interest expense
(millions)
|
|
|
$135 to $145
|
Capitalized interest
(1) (millions)
|
|
|
($40) to
($50)
|
Interest income
(millions)
|
|
|
$35 to $45
|
|
|
|
|
Airline full-year
CAPEX
|
|
|
|
Aircraft, engines,
induction costs, and pre-delivery deposits(2)
(millions)
|
|
|
$230 to $250
|
Capitalized deferred
heavy maintenance (millions)
|
|
|
$80 to $90
|
Other airline capital
expenditures (millions)
|
|
|
$160 to $170
|
|
|
|
|
Recurring principal
payments (millions)
|
|
|
$135 to $145
|
|
|
|
|
(1)
|
Includes capitalized interest related to
pre-delivery deposits on new aircraft.
|
(2)
|
Excludes capitalized interest related to
pre-delivery deposits on new aircraft. Estimated capital
expenditures are based on management's best estimate around
aircraft deliveries, which differs from contractual
obligations.
|
Full-year 2024
Sunseeker guidance
|
|
|
|
|
|
|
|
EBITDA
(millions)
|
|
|
~(15)
|
Depreciation expense
(millions)
|
|
|
~$25
|
Interest expense
(millions)
|
|
|
~$20
|
|
|
|
|
Occupancy
rate
|
|
|
~45%
|
Average daily
rate
|
|
|
~$320
|
Aircraft Fleet Plan
by End of Period
|
|
|
|
Aircraft - (seats
per AC)
|
2Q24
|
YE24
|
737-8200 (190
seats)
|
—
|
6
|
A320 (177
seats)
|
17
|
11
|
A320 (180-186
seats)
|
75
|
75
|
A319 (156
seats)
|
34
|
34
|
Total
|
126
|
126
|
The table above is provided based on the company's current
plans and is subject to change. The numbers exclude aircraft
expected to be delivered during 2024 but will not be placed into
revenue service until 2025.
The above plan is management's best estimate and differs from
our contractual obligations.
Allegiant Travel Company will host a conference call with
analysts at 12:30 p.m. ET Tuesday,
May 7, 2024 to discuss its first quarter 2024 financial results. A
live broadcast of the conference call will be available via the
Company's Investor Relations website homepage at
http://ir.allegiantair.com. The webcast will also be archived in
the "Events & Presentations" section of the website.
Allegiant Travel Company
Las Vegas-based Allegiant
(NASDAQ: ALGT) is an integrated travel company with an airline at
its heart, focused on connecting customers with the people, places
and experiences that matter most. Since 1999, Allegiant Air has
linked travelers in underserved cities to world-class vacation
destinations with all-nonstop flights and industry-low average
fares. Today, Allegiant serves communities across the nation, with
base airfares less than half the cost of the average domestic round
trip ticket. For more information, visit us at Allegiant.com. Media
information, including photos, is available at
http://gofly.us/iiFa303wrtF.
Media Inquiries:
mediarelations@allegiantair.com
Investor Inquiries:
ir@allegiantair.com
Under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, statements in this press release
that are not historical facts are forward-looking statements. These
forward-looking statements are only estimates or predictions based
on our management's beliefs and assumptions and on information
currently available to our management. Forward-looking statements
include our statements regarding future airline and Sunseeker
Resort operations, revenue, expenses and earnings, available seat
mile growth, expected capital expenditures, the cost of fuel, the
timing of aircraft acquisitions and retirements, the number of
contracted aircraft to be placed in service in the future, our
ability to consummate announced aircraft transactions, as well as
other information concerning future results of operations, business
strategies, financing plans, industry environment and potential
growth opportunities. Forward-looking statements include all
statements that are not historical facts and can be identified by
the use of forward-looking terminology such as the words "believe,"
"expect," "guidance," "anticipate," "intend," "plan," "estimate",
"project", "hope" or similar expressions.
Forward-looking statements involve risks, uncertainties
and assumptions. Actual results may differ materially from those
expressed in the forward-looking statements. Important risk factors
that could cause our results to differ materially from those
expressed in the forward-looking statements generally may be found
in our periodic reports filed with the Securities and Exchange
Commission at www.sec.gov. These risk factors include, without
limitation, the impact of regulatory reviews of Boeing on its
aircraft delivery schedule, an accident involving, or problems
with, our aircraft, public perception of our safety, our reliance
on our automated systems, our reliance on Boeing and other third
parties to deliver aircraft under contract to us on a timely basis,
risk of breach of security of personal data, volatility of fuel
costs, labor issues and costs, the ability to obtain regulatory
approvals as needed , the effect of economic conditions on leisure
travel, debt covenants and balances, the impact of government
regulations on the airline industry, the ability to finance
aircraft to be acquired, the ability to obtain necessary government
approvals to implement the announced alliance with Viva Aerobus and
to otherwise prepare to offer international service, terrorist
attacks, risks inherent to airlines, our competitive environment,
our reliance on third parties who provide facilities or services to
us, the impact of the possible loss of key personnel, economic and
other conditions in markets in which we operate, the ability to
successfully operate Sunseeker Resort, increases in maintenance
costs and availability of outside maintenance contractors to
perform needed work on our aircraft on a timely basis and at
acceptable rates, cyclical and seasonal fluctuations in our
operating results, and the perceived acceptability of our
environmental, social and governance efforts.
Any forward-looking statements are based on information
available to us today and we undertake no obligation to update
publicly any forward-looking statements, whether as a result of
future events, new information or otherwise.
Detailed financial information follows:
Allegiant Travel
Company
|
Consolidated
Statements of Income
|
(in thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
Percent
Change
|
|
2024
|
|
2023
|
|
YoY
|
OPERATING
REVENUES:
|
|
|
|
|
|
Passenger
|
$
579,936
|
|
$
609,277
|
|
(4.8) %
|
Third party
products
|
33,399
|
|
26,037
|
|
28.3
|
Fixed fee
contracts
|
18,861
|
|
14,117
|
|
33.6
|
Resort and
other
|
24,210
|
|
256
|
|
NM
|
Total operating
revenues
|
656,406
|
|
649,687
|
|
1.0
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Salaries and
benefits
|
213,327
|
|
159,623
|
|
33.6
|
Aircraft
fuel
|
170,087
|
|
189,546
|
|
(10.3)
|
Station
operations
|
66,468
|
|
61,520
|
|
8.0
|
Depreciation and
amortization
|
63,844
|
|
54,680
|
|
16.8
|
Sales and
marketing
|
30,419
|
|
26,928
|
|
13.0
|
Maintenance and
repairs
|
30,278
|
|
26,442
|
|
14.5
|
Aircraft lease
rentals
|
5,985
|
|
7,092
|
|
(15.6)
|
Other
|
47,451
|
|
30,643
|
|
54.9
|
Special charges, net
of recoveries
|
13,099
|
|
(1,612)
|
|
NM
|
Total operating
expenses
|
640,958
|
|
554,862
|
|
15.5
|
OPERATING
INCOME
|
15,448
|
|
94,825
|
|
(83.7)
|
OTHER (INCOME)
EXPENSES:
|
|
|
|
|
|
Interest
expense
|
40,160
|
|
35,708
|
|
12.5
|
Capitalized
interest
|
(11,185)
|
|
(5,180)
|
|
115.9
|
Interest
income
|
(12,241)
|
|
(10,128)
|
|
20.9
|
Other, net
|
51
|
|
7
|
|
NM
|
Total other
expenses
|
16,785
|
|
20,407
|
|
(17.7)
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
(1,337)
|
|
74,418
|
|
NM
|
INCOME TAX PROVISION
(BENEFIT)
|
(418)
|
|
18,269
|
|
NM
|
NET INCOME
(LOSS)
|
$
(919)
|
|
$
56,149
|
|
NM
|
Earnings (loss) per
share to common shareholders:
|
|
|
|
|
|
Basic
|
($0.07)
|
|
$3.09
|
|
NM
|
Diluted
|
($0.07)
|
|
$3.09
|
|
NM
|
Weighted average shares
outstanding used in computing earnings per share attributable to
common shareholders(1):
|
|
|
|
|
|
Basic
|
17,664
|
|
17,766
|
|
(0.6)
|
Diluted
|
17,664
|
|
17,769
|
|
(0.6)
|
|
|
(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.
|
NM
|
Not
meaningful
|
Allegiant Travel
Company
|
Operating Revenues
and Expenses by Segment
|
(in
thousands)
|
(Unaudited)
|
|
|
Three Months Ended
March 31, 2024
|
|
Three Months Ended
March 31, 2023
|
|
Airline
|
|
Sunseeker
|
|
Consolidated
|
|
Airline
|
|
Sunseeker
|
|
Consolidated
|
OPERATING
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
|
$ 579,936
|
|
$
—
|
|
$
579,936
|
|
$ 609,277
|
|
$
—
|
|
$
609,277
|
Third party
products
|
33,399
|
|
—
|
|
33,399
|
|
26,037
|
|
—
|
|
26,037
|
Fixed fee
contracts
|
18,861
|
|
—
|
|
18,861
|
|
14,117
|
|
—
|
|
14,117
|
Resort and
other
|
323
|
|
23,887
|
|
24,210
|
|
251
|
|
5
|
|
256
|
Total operating
revenues
|
632,519
|
|
23,887
|
|
656,406
|
|
649,682
|
|
5
|
|
649,687
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
199,508
|
|
13,819
|
|
213,327
|
|
157,521
|
|
2,102
|
|
159,623
|
Aircraft
fuel
|
170,087
|
|
—
|
|
170,087
|
|
189,546
|
|
—
|
|
189,546
|
Station
operations
|
66,468
|
|
—
|
|
66,468
|
|
61,520
|
|
—
|
|
61,520
|
Depreciation and
amortization
|
57,868
|
|
5,976
|
|
63,844
|
|
54,622
|
|
58
|
|
54,680
|
Sales and
marketing
|
28,878
|
|
1,541
|
|
30,419
|
|
26,640
|
|
288
|
|
26,928
|
Maintenance and
repairs
|
30,278
|
|
—
|
|
30,278
|
|
26,442
|
|
—
|
|
26,442
|
Aircraft lease
rentals
|
5,985
|
|
—
|
|
5,985
|
|
7,092
|
|
—
|
|
7,092
|
Other
|
34,315
|
|
13,136
|
|
47,451
|
|
28,711
|
|
1,932
|
|
30,643
|
Special charges, net
of recoveries
|
14,915
|
|
(1,816)
|
|
13,099
|
|
14
|
|
(1,626)
|
|
(1,612)
|
Total operating
expenses
|
608,302
|
|
32,656
|
|
640,958
|
|
552,108
|
|
2,754
|
|
554,862
|
OPERATING INCOME
(LOSS)
|
24,217
|
|
(8,769)
|
|
15,448
|
|
97,574
|
|
(2,749)
|
|
94,825
|
Allegiant Travel
Company
|
Airline Operating
Statistics
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
Percent
Change(1)
|
|
2024
|
|
2023
|
|
YoY
|
AIRLINE OPERATING
STATISTICS
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
Passengers
|
4,104,860
|
|
4,148,453
|
|
(1.1) %
|
Available seat miles
(ASMs) (thousands)
|
4,771,971
|
|
4,677,622
|
|
2.0
|
Airline operating
expense per ASM (CASM) (cents)
|
12.75 ¢
|
|
11.80 ¢
|
|
8.1
|
Fuel expense per ASM
(cents)
|
3.56 ¢
|
|
4.05 ¢
|
|
(12.1)
|
Airline operating
CASM, excluding fuel (cents)
|
9.18 ¢
|
|
7.75 ¢
|
|
18.5
|
Departures
|
29,225
|
|
29,145
|
|
0.3
|
Block hours
|
72,632
|
|
71,790
|
|
1.2
|
Average stage length
(miles)
|
919
|
|
908
|
|
1.2
|
Average number of
operating aircraft during period
|
125.8
|
|
122.7
|
|
2.5
|
Average block hours
per aircraft per day
|
6.3
|
|
6.5
|
|
(3.1)
|
Full-time equivalent
employees at end of period
|
5,951
|
|
5,318
|
|
11.9
|
Fuel gallons consumed
(thousands)
|
56,224
|
|
55,434
|
|
1.4
|
ASMs per gallon of
fuel
|
84.9
|
|
84.4
|
|
0.6
|
Average fuel cost per
gallon
|
$
3.03
|
|
$
3.42
|
|
(11.4)
|
Scheduled service
statistics:
|
|
|
|
|
|
Passengers
|
4,069,519
|
|
4,122,196
|
|
(1.3)
|
Revenue passenger
miles (RPMs) (thousands)
|
3,883,810
|
|
3,925,362
|
|
(1.1)
|
Available seat miles
(ASMs) (thousands)
|
4,636,922
|
|
4,573,766
|
|
1.4
|
Load factor
|
83.8 %
|
|
85.8 %
|
|
(2.0)
|
Departures
|
28,177
|
|
28,273
|
|
(0.3)
|
Block hours
|
70,365
|
|
70,009
|
|
0.5
|
Average seats per
departure
|
177.5
|
|
176.0
|
|
0.9
|
Yield (cents)
(2)
|
7.86 ¢
|
|
8.29 ¢
|
|
(5.2)
|
Total passenger
revenue per ASM (TRASM) (cents)(3)
|
13.23 ¢
|
|
13.89 ¢
|
|
(4.8)
|
Average fare -
scheduled service(4)
|
$
74.98
|
|
$
78.93
|
|
(5.0)
|
Average fare -
air-related charges(4)
|
$
67.52
|
|
$
68.87
|
|
(2.0)
|
Average fare - third
party products
|
$
8.21
|
|
$
6.32
|
|
29.9
|
Average fare -
total
|
$
150.71
|
|
$
154.12
|
|
(2.2)
|
Average stage length
(miles)
|
926
|
|
915
|
|
1.2
|
Fuel gallons consumed
(thousands)
|
54,566
|
|
54,145
|
|
0.8
|
Average fuel cost per
gallon
|
$
3.01
|
|
$
3.42
|
|
(12.0)
|
Percent of sales
through website during period
|
96.5 %
|
|
95.6 %
|
|
0.9
|
Other
data:
|
|
|
|
|
|
Rental car days
sold
|
357,944
|
|
354,426
|
|
1.0
|
Hotel room nights
sold
|
61,294
|
|
68,939
|
|
(11.1)
|
|
|
(1)
|
Except load factor
and percent of sales through website, which is percentage point
change.
|
(2)
|
Defined as scheduled
service revenue divided by revenue passenger miles.
|
(3)
|
Various components
of this measurement do not have a direct correlation to ASMs. These
figures are provided on a per ASM basis to facilitate comparison
with airlines reporting revenues on a per ASM basis.
|
(4)
|
Reflects division of
passenger revenue between scheduled service and air-related charges
in Company's booking path.
|
Summary Balance
Sheet
|
|
Unaudited
(millions)
|
March 31,
2024
(unaudited)
|
|
December 31,
2023
|
|
Percent
Change
|
Unrestricted cash and
investments
|
|
|
|
|
|
Cash and cash
equivalents
|
$
193.4
|
|
$
143.3
|
|
35.0 %
|
Short-term
investments
|
616.5
|
|
671.4
|
|
(8.2)
|
Long-term
investments
|
43.8
|
|
56.0
|
|
(21.8)
|
Total unrestricted
cash and investments
|
853.7
|
|
870.7
|
|
(2.0)
|
Debt
|
|
|
|
|
|
Current maturities of
long-term debt and finance lease obligations, net of related
costs
|
459.2
|
|
439.9
|
|
4.4
|
Long-term debt and
finance lease obligations, net of current maturities and related
costs
|
1,789.6
|
|
1,819.7
|
|
(1.7)
|
Total debt
|
2,248.8
|
|
2,259.6
|
|
(0.5)
|
Debt, net of
unrestricted cash and investments
|
1,395.1
|
|
1,388.9
|
|
0.4
|
Total Allegiant Travel
Company shareholders' equity
|
1,322.2
|
|
1,328.6
|
|
(0.5)
|
EPS
Calculation
|
|
The following table
sets forth the computation of net income per share, on a basic and
diluted basis, for the periods indicated (share count and dollar
amounts other than per-share amounts in table are in
thousands):
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Basic:
|
|
|
|
Net income
(loss)
|
$
(919)
|
|
$
56,149
|
Less income allocated
to participating securities
|
(354)
|
|
(1,254)
|
Net income (loss)
attributable to common stock
|
$
(1,273)
|
|
$
54,895
|
Earnings (loss) per
share, basic
|
$
(0.07)
|
|
$
3.09
|
Weighted-average shares
outstanding
|
17,664
|
|
17,766
|
Diluted:
|
|
|
|
Net income
(loss)
|
$
(919)
|
|
$
56,149
|
Less income allocated
to participating securities
|
(354)
|
|
(1,254)
|
Net income (loss)
attributable to common stock
|
$
(1,273)
|
|
$
54,895
|
Earnings (loss) per
share, diluted
|
$
(0.07)
|
|
$
3.09
|
Weighted-average shares
outstanding (1)
|
17,664
|
|
17,766
|
Dilutive effect of
restricted stock
|
—
|
|
104
|
Adjusted
weighted-average shares outstanding under treasury stock
method
|
17,664
|
|
17,870
|
Participating
securities excluded under two-class method
|
—
|
|
(101)
|
Adjusted
weighted-average shares outstanding under two-class
method
|
17,664
|
|
17,769
|
|
|
(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, 2024
(Unaudited)
Airline operating expense, airline income before income taxes,
airline net income, and airline diluted earnings per share all
eliminate the effects of non-airline activity as such activity is
not reflective of airline operating performance. We also present
these airline-only metrics excluding special charges related to
aircraft accelerated depreciation on early retirement of certain
airframes. Management believes the exclusion of these special
charges enhances comparability of financial information between
periods. Airline earnings before interest, taxes, depreciation and
amortization ("Airline EBITDA") eliminates the effects of
non-airline operating activity and other items. As such, all of
these are non-GAAP financial measures. We believe the presentation
of these measures is relevant and useful for investors because it
allows them to better gauge the performance of the airline and to
compare our results to other airlines.
We also present both operating expense and CASM excluding
aircraft fuel expense as fuel price volatility impacts the
comparability of year over year financial performance. We believe
the adjustment for fuel expense allows investors to better
understand our non-fuel costs and related performance.
We present consolidated operating income (loss), EBITDA, and
diluted earnings (loss) per share excluding Sunseeker special
charges, net of recoveries, and airline special charges, to exclude
the impact of losses and insurance recoveries incurred primarily as
the result of hurricanes and other insured events at Sunseeker and
to exclude aircraft accelerated depreciation on early retirements
of certain airframes. Management believes these measures enhance
comparability of financial information between periods.
Consolidated EBITDA, Consolidated EBITDA excluding special
charges, and Airline EBITDA excluding special charges, as presented
in this press release, are supplemental measures of our performance
that are not required by, or presented in accordance with,
accounting principles generally accepted in the United States ("GAAP"). These are not
measurements of our financial performance under GAAP and should not
be considered in isolation or as an alternative to net income or
any other performance measures derived in accordance with GAAP or
as an alternative to cash flows from operating activities as a
measure of our liquidity.
We define "EBITDA" as earnings before interest, taxes,
depreciation and amortization. We also adjust EBITDA within this
release to exclude non-airline activity and special charges. We
caution investors that amounts presented in accordance with this
definition may not be comparable to similar measures disclosed by
other issuers, because not all issuers and analysts calculate
EBITDA in the same manner.
We use EBITDA and Airline EBITDA to evaluate our operating
performance and liquidity, and these are among the primary measures
used by management for planning and forecasting of future periods.
We believe these presentations of EBITDA are relevant and useful
for investors because they allow investors to view results in a
manner similar to the method used by management and make it easier
to compare our results with other companies that have different
financing and capital structures. EBITDA has important limitations
as an analytical tool. These limitations include the following:
- EBITDA does not reflect our capital expenditures, future
requirements for capital expenditures or contractual commitments to
purchase capital equipment;
- EBITDA does not reflect interest expense or the cash
requirements necessary to service principal or interest payments on
our debt;
- although depreciation and amortization are non-cash charges,
the assets that we currently depreciate and amortize will likely
have to be replaced in the future, and EBITDA does not reflect the
cash required to fund such replacements; and
- other companies in our industry may calculate EBITDA
differently than we do, limiting its usefulness as a comparative
measure.
Presented below is a quantitative reconciliation of these
adjusted numbers to the most directly comparable GAAP financial
performance measure.
The SEC has adopted rules (Regulation G) regulating the use of
non-GAAP financial measures. Because of our use of non-GAAP
financial measures in this press release to supplement our
consolidated financial statements presented on a GAAP basis,
Regulation G requires us to include in this press release a
presentation of the most directly comparable GAAP measure, which is
operating revenue, operating expenses, operating income, income
(loss) before income taxes, net income (loss), and net income
(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 expenses, income (loss) before income
taxes, net income (loss), earnings (loss) per share, or other
measures of financial performance prepared in accordance with GAAP.
Our use of these non-GAAP measures may not be comparable to
similarly titled measures employed by other companies in the
airline and travel industry. The reconciliation of each of these
measures to the most comparable GAAP measure for the periods is
indicated below.
Reconciliation of
Non-GAAP Financial Measures
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Reconciliation of
net income and earnings per share excluding special charges net of
recoveries (millions except share and per share
amounts)
|
|
|
|
Net income (loss) as
reported (GAAP)
|
$
(0.9)
|
|
$
56.1
|
Special
charges(2)
|
13.1
|
|
(1.6)
|
Income tax effect of
adjustments
|
(1.8)
|
|
0.8
|
Net income excluding
special charges net of recoveries(1)(3)
|
10.4
|
|
55.3
|
Net income allocated to
participating securities
|
(0.4)
|
|
(1.2)
|
Net income attributable
to common stock excluding special charges net of
recoveries(1)(3)
|
10.0
|
|
54.1
|
|
|
|
|
Diluted shares used for
computation (GAAP) (thousands)
|
17,664
|
|
17,769
|
Diluted shares used for
computation - excluding special charges net of recoveries
(thousands)
|
17,669
|
|
17,769
|
|
|
|
|
Diluted earnings (loss)
per share as reported (GAAP)
|
$
(0.07)
|
|
$
3.09
|
Diluted earnings per
share excluding special charges net of
recoveries(1)(3)
|
$
0.57
|
|
$
3.04
|
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Reconciliation of
airline net income excluding special charges and airline earnings
per share excluding special charges (millions except share and per
share amounts)
|
|
|
|
Net income (loss) as
reported (GAAP)
|
$
(0.9)
|
|
$
56.1
|
Non-airline loss before
taxes
|
13.9
|
|
4.4
|
Airline special
charges(2)
|
14.9
|
|
—
|
Income tax effect of
adjustments
|
(8.1)
|
|
(0.6)
|
Airline net income,
excluding special charges(1)(4)
|
19.8
|
|
59.9
|
|
|
|
|
Airline net (income)
allocated to participating securities excluding special
charges
|
(0.7)
|
|
(1.3)
|
Airline net income
attributable to common stock excluding special
charges(1)(4)
|
19.1
|
|
58.6
|
|
|
|
|
Diluted shares used for
computation (GAAP) (thousands)
|
17,664
|
|
17,769
|
Diluted shares used for
computation - airline only excluding special charges
(thousands)
|
17,669
|
|
17,769
|
|
|
|
|
Diluted earnings (loss)
per share as reported (GAAP)
|
$
(0.07)
|
|
$
3.09
|
Diluted airline
earnings per share excluding special
charges(1)(4)
|
$
1.08
|
|
$
3.30
|
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Reconciliation of
airline operating expense, operating income, and income before
income taxes excluding special charges (millions)
|
|
|
|
Operating expense as
reported (GAAP)
|
$
641.0
|
|
$
554.9
|
Non-airline operating
expense
|
32.7
|
|
2.8
|
Airline operating
expense
|
608.3
|
|
552.1
|
Airline special
charges(2)
|
14.9
|
|
—
|
Airline operating
expense, excluding special charges(1)(4)
|
$
593.4
|
|
$
552.1
|
|
|
|
|
Operating income as
reported (GAAP)
|
$
15.4
|
|
$
94.8
|
Non-airline operating
loss
|
8.8
|
|
2.8
|
Airline special
charges(2)
|
14.9
|
|
—
|
Airline operating
income, excluding special charges(1)(4)
|
$
39.1
|
|
$
97.6
|
Airline operating
margin, excluding special charges(4)
|
6.2 %
|
|
15.0 %
|
|
|
|
|
Income (loss) before
income taxes as reported (GAAP)
|
$
(1.3)
|
|
$
74.4
|
Non-airline loss before
income taxes
|
13.9
|
|
4.4
|
Airline special
charges(2)
|
14.9
|
|
—
|
Airline income before
income taxes, excluding special charges(1)(4)
|
$
27.5
|
|
$
78.8
|
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Reconciliation of
Airline net income (millions)
|
|
|
|
Net income (loss) as
reported (GAAP)
|
$
(0.9)
|
|
$
56.1
|
Non-airline loss before
taxes
|
13.9
|
|
4.4
|
Income tax effect of
adjustments
|
(1.6)
|
|
(0.6)
|
Airline net
income(1)
|
$
11.4
|
|
$
59.9
|
|
|
|
Three Months Ended March 31,
|
|
2024
|
|
2023
|
Reconciliation of
operating income excluding special charges
(millions)
|
|
Operating income as
reported (GAAP)
|
$
15.4
|
|
$
94.8
|
Sunseeker special
charges, net of recoveries(2)
|
(1.8)
|
|
(1.6)
|
Airline special
charges(2)
|
14.9
|
|
—
|
Operating income,
excluding special charges(1)(3)
|
$
28.5
|
|
$
93.2
|
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Reconciliation of
airline operating CASM excluding fuel and special charges
(millions)
|
|
|
|
Consolidated operating
expense (GAAP)
|
$
641.0
|
|
$
554.9
|
Less fuel
expense
|
170.1
|
|
189.5
|
Less non-airline
operating expense
|
32.7
|
|
2.8
|
Less airline special
charges(2)
|
14.9
|
|
—
|
Total airline operating
expense less fuel and airline special
charges(1)(4)
|
$
423.3
|
|
$
362.6
|
|
|
|
|
System available seat
miles (millions)
|
4,772.0
|
|
4,677.6
|
Cost per available seat
mile (cents)
|
13.43
|
|
11.86
|
Airline-only cost per
available seat mile (cents)
|
12.75
|
|
11.80
|
Airline-only cost per
available seat mile excluding fuel and airline special charges
(cents)(4)
|
8.87
|
|
7.75
|
|
|
|
Three Months Ended
March 31,
|
|
2024
|
|
2023
|
Consolidated EBITDA
and Consolidated EBITDA, excluding special
charges(millions)
|
|
|
|
Net income (loss) as
reported (GAAP)
|
$
(0.9)
|
|
$
56.1
|
Interest expense,
net
|
16.7
|
|
20.4
|
Income tax expense
(benefit)
|
(0.4)
|
|
18.3
|
Depreciation and
amortization
|
63.8
|
|
54.7
|
Consolidated
EBITDA(1)
|
$
79.2
|
|
$
149.5
|
Special charges, net of
recoveries(2)
|
13.1
|
|
(1.6)
|
Consolidated EBITDA,
excluding special charges(1)(3)
|
$
92.3
|
|
$
147.9
|
|
|
|
|
Airline EBITDA,
excluding special charges (millions)
|
|
|
|
Income (loss) before
taxes as reported (GAAP)
|
$
(1.3)
|
|
$
74.4
|
Non-airline loss before
taxes
|
13.9
|
|
4.4
|
Airline special
charges(2)
|
14.9
|
|
—
|
Airline income before
taxes, excluding special charges(1)(4)
|
$
27.5
|
|
$
78.8
|
Airline interest
expense, net
|
11.6
|
|
18.8
|
Airline depreciation
and amortization
|
57.9
|
|
54.6
|
Airline EBITDA,
excluding special charges(1)(4)
|
$
97.0
|
|
$
152.2
|
(1)
|
Denotes non-GAAP
figure.
|
(2)
|
In 2024 and 2023, we
recognized as special charges the full amount of estimated property
damage to Sunseeker Resort due to weather and other insured events
less the amount of recognized insurance recoveries through the end
of the applicable period. Beginning in third quarter 2023, we also
recognized aircraft accelerated depreciation as special charges
related to our revised fleet plan.
|
(3)
|
Adjusted to exclude
the impacts of property damage to Sunseeker Resort, net of
recoveries, and aircraft accelerated depreciation charges resulting
from our revised fleet plan.
|
(4)
|
Adjusted to exclude
aircraft accelerated depreciation recognized as special charges
related to our revised fleet plan.
|
*
|
Note that amounts may
not recalculate due to rounding
|
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SOURCE Allegiant Travel Company