Sun Country Airlines Holdings, Inc. (“Sun Country Airlines,” “Sun
Country,” the “Company”) (NASDAQ: SNCY) today reported financial
results for its fourth quarter and full year ended
December 31, 2023.
“We are excited that Sun Country’s uniquely
diversified business model, and the efforts of our outstanding
employees, produced another strong quarter, with record revenue(1),
a 7.0% GAAP operating income margin and a 7.4% adjusted operating
income margin(2),” said Jude Bricker, Chief Executive Officer of
Sun Country. “Additionally, we continue to maintain solid cost
control with fourth quarter adjusted CASM(3) falling by 2.2% versus
fourth quarter 2022. Results for the full year were equally
impressive. Full year 2023 revenue exceeded $1 billion for the
first time, our GAAP operating income margin was 12.1%, and our
adjusted operating income margin of 13.0%(2) was our highest on
record(1). GAAP net income for the year was $72.2 million and we
grew total year over year block hours by 9.8% and total revenue by
17.3%. We believe our unique business model produces superior
results across operating environments and 2023 again proved that
out. We could not have achieved these record results without the
hard work of our dedicated employees. We are looking forward to
another successful year in 2024.”
Overview of Fourth Quarter and Full Year
|
Three Months Ended December 31, |
|
(unaudited) (in millions, except per share
amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
% Change |
|
Total Operating Revenue |
$ |
245.5 |
|
|
$ |
227.2 |
|
|
|
8.1 |
|
Operating Income |
|
17.1 |
|
|
|
15.1 |
|
|
|
13.3 |
|
Income Before Income Tax |
|
7.7 |
|
|
|
9.5 |
|
|
|
(19.2 |
) |
Net Income |
|
5.6 |
|
|
|
7.3 |
|
|
|
(22.5 |
) |
Diluted earnings per share |
$ |
0.10 |
|
|
$ |
0.12 |
|
|
|
(17.3 |
) |
|
Three Months Ended December 31, |
|
(unaudited) (in millions, except per share
amounts) |
|
2023 |
|
|
|
2022 |
|
|
% Change |
Adjusted Operating Income (2) |
$ |
18.3 |
|
|
$ |
15.9 |
|
|
|
14.8 |
|
Adjusted Income Before Income Tax
(2) |
|
9.3 |
|
|
|
10.3 |
|
|
|
(9.6 |
) |
Adjusted Net Income (2) |
|
6.9 |
|
|
|
7.9 |
|
|
|
(12.3 |
) |
Adjusted diluted earnings per
share (2) |
$ |
0.12 |
|
|
$ |
0.13 |
|
|
|
(7.7 |
) |
|
Year Ended December 31, |
|
|
|
(unaudited) (in millions, except per share
amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
% Change |
|
Total Operating Revenue |
$ |
1,049.6 |
|
|
$ |
894.4 |
|
|
|
17.3 |
|
Operating Income |
|
127.5 |
|
|
|
55.7 |
|
|
|
128.9 |
|
Income Before Income Tax |
|
94.2 |
|
|
|
24.0 |
|
|
|
292.6 |
|
Net Income |
|
72.2 |
|
|
|
17.7 |
|
|
|
308.4 |
|
Diluted earnings per share |
$ |
1.23 |
|
|
$ |
0.29 |
|
|
|
324.1 |
|
|
Year Ended December 31, |
|
|
|
(unaudited) (in millions, except per share
amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
% Change |
|
Adjusted Operating Income(2) |
$ |
136.8 |
|
|
$ |
58.5 |
|
|
|
133.9 |
|
Adjusted Income Before Income
Tax(2) |
|
104.2 |
|
|
|
33.0 |
|
|
|
215.9 |
|
Adjusted Net Income(2) |
|
79.9 |
|
|
|
25.8 |
|
|
|
209.9 |
|
Adjusted diluted earnings per
share(2) |
$ |
1.37 |
|
|
$ |
0.42 |
|
|
|
226.2 |
|
For the quarter ended December 31, 2023,
Sun Country reported Income Before Income Tax of $7.7 million and
Net Income of $5.6 million, on $245.5 million of revenue. Adjusted
Income Before Income Tax for the quarter was $9.3 million(2). GAAP
Operating Income during the quarter was $17.1 million, producing an
Operating Income Margin of 7.0%, while Adjusted Operating Income
was $18.3 million(2), resulting in an Adjusted Operating Income
Margin of 7.4%(2).
“We had a very successful 2023,” said Dave Davis, President and
Chief Financial Officer. “Our full year GAAP pre-tax margin was
9.0% and we produced an adjusted pre-tax margin of 9.9%(2), which
we expect to be the best, or among the best in the industry. Our
cost performance improved throughout the year as our fourth quarter
adjusted CASM(3) of 7.3 cents was 2.2% lower than a year ago.
Additionally, our 2023 GAAP diluted EPS was $1.23, our adjusted
diluted EPS was $1.37(2) and we generated a record(1) 21.4%
adjusted EBITDA margin(2) for the full year. These positive results
allowed us to return cash to shareholders through share
repurchases, which in 2023 totaled 4.2 million shares for $68.6
million. Total Capex spending in 2023 was $218.2 million, of which
approximately $200 million was for additional aircraft. We expect
these aircraft to provide almost all of the passenger lift we need
through 2025, resulting in much lower capex levels in 2024.”
Notable Highlights
- Strengthened ties with our
Minnesota community by becoming the Official Airline of the
University of Minnesota Gopher Athletics
- Acquired one 737-800 which will remain on lease to Fly Dubai
until the fourth quarter 2024. Expected to acquire another 737-800
by the end of February 2024 which will also remain on lease to Fly
Dubai.
- The Company repurchased 0.9 million shares at an average price
of $14.93 during the fourth quarter. At the end of the year, $11.5
million remained under the current repurchase authorization.
Capacity
System block hours flown during the fourth
quarter of 2023 grew by 10.4% year over year, while scheduled
service ASMs increased 14.9%. Cargo block hours also grew 1.8% year
over year during this time. For full year 2023, system block hours
grew 9.8% driven by an increase in scheduled service block hours of
8.6%, an increase in cargo block hours of 5.8% and an increase of
charter block hours of 18.9%.
Fourth quarter charter block hours grew 7.8%
year over year driven by the continued growth in flying under
long-term contracts, which comprised 70% of total charter flying
versus 61% in the fourth quarter of 2022. Full year 2023 charter
block hours under long-term contracts were 80% of total charter
block hours versus 76% last year. This was mostly due to 25.7%
growth in charter flying under long-term contracts versus the full
year 2022.
Revenue
For the fourth quarter of 2023, the Company
reported total revenue of $245.5 million, which was 8.1% more
than the fourth quarter of 2022. The Company’s scheduled service
TRASM(4) of 10.7 cents in the fourth quarter of 2023 decreased 9.1%
year over year as scheduled service ASMs increased 14.9%. The
fourth quarter 2023 total fare per passenger of $156.39 was less
than fourth quarter 2022 by 11.8% while scheduled load factor of
84.7% was little changed versus last year. Full year 2023 scheduled
service TRASM(4) increased 7.6% while scheduled service ASMs
increased 7.2% for the same time period. Full year total fare per
passenger of $176.30 grew by 0.6% on a 2.8 percentage point
increase in scheduled service load factor.
Charter service revenue is primarily generated
through service provided to collegiate and professional sports
teams, the U.S. Department of Defense, and casinos. In the fourth
quarter of 2023, the Company’s charter service revenue was $46.9
million, an increase of 8.8% year over year. For the full year,
charter service revenue was $190.1 million, an increase of 17.6%
versus last year.
Cargo revenue consists of revenue earned from
flying cargo aircraft under the Air Transportation Services
Agreement (“ATSA”) with Amazon. In the fourth quarter of 2023,
cargo revenue was $25.3 million, a 3.6% increase versus the fourth
quarter of 2022. For the full year, charter service revenue was
$99.7 million, an increase of 10.4% versus last year.
Cost
For the fourth quarter of 2023, total GAAP
operating expenses increased 7.7% year-over-year versus a 10.4%
increase in total block hours, primarily due to a 6.6% increase in
salaries, wages, and benefits, a 5.0% increase in sales and
marketing expense and a 2.6% increase in ground handling expense.
This combination drove adjusted CASM(3) in the fourth quarter lower
by 2.2% versus the fourth quarter 2022. For the full year 2023,
total GAAP operating expenses increased 9.9% while total system
block hours grew 9.8% versus 2022. Salaries, wages and benefits
grew 20.2%, while maintenance expense increased 30.0% in full year
2023, which were the primary drivers of the 6.4% year over year
increase in adjusted CASM(3).
Balance Sheet and Liquidity
Total liquidity(5) was $205.2 million on
December 31, 2023, while the Company’s net debt(6) was $517.2
million.
(in millions) |
December 31, 2023 |
|
December 31, 2022 |
|
(Unaudited) |
|
|
Cash and Cash Equivalents |
$ |
46.3 |
|
|
$ |
92.1 |
|
Available-for-Sale
Securities |
|
134.2 |
|
|
|
172.6 |
|
Amount Available Under
Revolving Credit Facility |
|
24.7 |
|
|
|
24.7 |
|
Total Liquidity |
$ |
205.2 |
|
|
$ |
289.4 |
|
|
|
|
|
(in millions) |
December 31, 2023 |
|
December 31, 2022 |
|
(Unaudited) |
|
|
Total Debt, Net |
$ |
401.6 |
|
|
$ |
352.2 |
|
Finance Lease Obligations |
|
277.3 |
|
|
|
251.3 |
|
Operating Lease
Obligations |
|
18.8 |
|
|
|
26.1 |
|
Total Debt and Lease Obligations |
|
697.7 |
|
|
|
629.6 |
|
Cash and Cash Equivalents |
|
46.3 |
|
|
|
92.1 |
|
Available-for-Sale
Securities |
|
134.2 |
|
|
|
172.6 |
|
Net Debt |
$ |
517.2 |
|
|
$ |
364.8 |
|
Fleet
As of December 31, 2023, the Company had 42
aircraft in its passenger service fleet, operated 12 freighter
aircraft in its cargo operation and had six aircraft that are
currently on lease to unaffiliated airlines.
Guidance for First Quarter 2024
|
Q1 2024 |
H/(L) vs Q1 2023 |
Total revenue - millions |
$310 to $320 |
5% to 9% |
Economic fuel cost per
gallon |
$3.00 |
(13%) |
Operating income margin -
percentage |
17% to 21% |
(3pp) to 1pp |
Effective tax rate |
23% |
|
Total system block hours -
thousands |
38 to 39 |
8% to 11% |
Conference Call & Webcast Details
Sun Country Airlines will host a conference call
to discuss its fourth quarter and full year 2023 results at 8:00
a.m. Eastern Time on Thursday, February 1, 2024. A live broadcast
of the conference call will be available via the investor relations
section of Sun Country Airlines’ website at
https://ir.suncountry.com/news-events/events-and-presentations. The
online replay will be available on the same website approximately
one hour after the call. The conference call can also be listened
to live by accessing
https://register.vevent.com/register/BI21a7bc02112b43888ac28de97e8b6e16.
About Sun Country Airlines
Sun Country Airlines is a new breed of
hybrid low-cost air carrier, whose mission is to connect guests to
their favorite people and places, to create lifelong memories and
transformative experiences. Sun Country dynamically deploys shared
resources across our synergistic scheduled service, charter and
cargo businesses. Based in Minnesota, we focus on serving
leisure and visiting friends and relatives ("VFR") passengers and
charter customers and providing cargo CMI services, with flights
throughout the United States and to destinations
in Mexico, Central America, Canada, and
the Caribbean.
End Notes
1 - |
Records begin in January 2017 |
2 - |
See additional details, including reconciliations to the most
comparable GAAP measures, in the section titled “Non-GAAP financial
measures” |
3 - |
Adjusted CASM is a non-GAAP measure derived from CASM by excluding
fuel costs, non-cash management stock compensation expense, costs
arising from its cargo operations, depreciation and amortization
recognized on certain assets that generate lease income, certain
commissions, and other costs of selling its vacations product from
this measure. See table titled “Reconciliation of CASM to Adjusted
CASM” |
4 - |
Scheduled Service TRASM includes Schedule Service revenue,
Ancillary revenue, and ASM generating revenue classified within
Other Revenue on the Consolidated Statement of Operations /
Scheduled Service ASMs. Other Revenue includes rental revenue of
approximately $5.9 million and $17.7 million associated with
certain assets that generate lease income in the three months and
year ended December 31, 2023, respectively, which is not
included |
5 - |
Total liquidity = cash and cash equivalents + available-for-sale
securities + amount available under revolver |
6 - |
Net debt = current portion of long-term debt + long-term debt +
finance lease obligations + operating lease obligations – cash and
cash equivalents - available-for-sale securities |
Forward Looking Statements
This press release contains forward-looking
statements, which involve risks and uncertainties. These
forward-looking statements are generally identified by the use of
forward-looking terminology, including the terms “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intend,”
“likely,” “may,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “target,” “will,” “would” and, in each case,
their negative or other various or comparable terminology. All
statements other than statements of historical facts contained in
this press release, including statements regarding our strategy,
future operations, future financial position, future revenue,
projected costs, prospects, plans, objectives of management, and
expected market growth are forward-looking statements. The
forward-looking statements are relating to:
- our strategy, outlook and growth prospects;
- our operational and financial targets and dividend policy;
- general economic trends and trends in the industry and
markets;
- potential repurchases of our common stock; and
- the competitive environment in which we operate.
These statements involve known and unknown
risks, uncertainties and other important factors that may cause our
actual results, performance, or achievements to be materially
different from any future results, performance, or achievements
expressed or implied by the forward-looking statements.
These forward-looking statements reflect our
views with respect to future events as of the date of this press
release and are based on assumptions and subject to risks and
uncertainties. Given these uncertainties, you should not place
undue reliance on these forward-looking statements. These
forward-looking statements represent our estimates and assumptions
only as of the date of this press release and, except as required
by law, we undertake no obligation to update or review publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise after the date of this press release. We
anticipate that subsequent events and developments will cause our
views to change. You should read this press release completely and
with the understanding that our actual future results may be
materially different from what we expect. Our forward-looking
statements do not reflect the potential impact of any future
acquisitions, mergers, dispositions, joint ventures, or investments
we may undertake. We qualify all of our forward-looking statements
by these cautionary statements. Additional information concerning
certain factors is contained in the Company’s Securities and
Exchange Commission filings, including but not limited to the
Company’s Annual Reports on Form 10-K, Quarterly Reports on Form
10-Q, and Current Reports on Form 8-K.
Non-GAAP Financial
Measures
We sometimes use information that is derived
from the Consolidated Financial Statements, but that is not
presented in accordance with GAAP. We believe
these non-GAAP measures provide a meaningful comparison
of our results to others in the airline industry and our prior year
results. Investors should consider
these non-GAAP financial measures in addition to, and not
as a substitute for, our financial performance measures prepared in
accordance with GAAP. Further, our non-GAAP information
may be different from the non-GAAP information provided
by other companies. We believe certain charges included in our
operating expenses on a GAAP basis make it difficult to compare our
current period results to prior periods as well as future periods
and guidance. The tables below show a reconciliation of
non-GAAP financial measures used in this document to the most
directly comparable GAAP financial measures.
CONSOLIDATED STATEMENTS OF
OPERATIONS(Dollars in thousands, except shares and
per share amounts)(Unaudited) |
|
|
Three Months Ended December 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Operating Revenues: |
|
|
|
|
|
Scheduled Service |
$ |
93,254 |
|
|
$ |
103,629 |
|
|
|
(10.0 |
) |
Charter |
|
46,879 |
|
|
|
43,092 |
|
|
|
8.8 |
|
Ancillary |
|
70,500 |
|
|
|
52,958 |
|
|
|
33.1 |
|
Passenger |
|
210,633 |
|
|
|
199,679 |
|
|
|
5.5 |
|
Cargo |
|
25,297 |
|
|
|
24,421 |
|
|
|
3.6 |
|
Other |
|
9,613 |
|
|
|
3,054 |
|
|
|
214.8 |
|
Total Operating Revenue |
|
245,543 |
|
|
|
227,154 |
|
|
|
8.1 |
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
Aircraft Fuel |
|
60,840 |
|
|
|
62,029 |
|
|
|
(1.9 |
) |
Salaries, Wages, and Benefits |
|
71,750 |
|
|
|
67,278 |
|
|
|
6.6 |
|
Aircraft Rent |
|
— |
|
|
|
1,421 |
|
|
|
(100.0 |
) |
Maintenance |
|
16,278 |
|
|
|
10,810 |
|
|
|
50.6 |
|
Sales and Marketing |
|
8,100 |
|
|
|
7,717 |
|
|
|
5.0 |
|
Depreciation and Amortization |
|
23,575 |
|
|
|
18,277 |
|
|
|
29.0 |
|
Ground Handling |
|
9,207 |
|
|
|
8,977 |
|
|
|
2.6 |
|
Landing Fees and Airport Rent |
|
12,768 |
|
|
|
12,950 |
|
|
|
(1.4 |
) |
Other Operating, net |
|
25,901 |
|
|
|
22,578 |
|
|
|
14.7 |
|
Total Operating Expenses |
|
228,419 |
|
|
|
212,037 |
|
|
|
7.7 |
|
Operating Income |
|
17,124 |
|
|
|
15,117 |
|
|
|
13.3 |
|
|
|
|
|
|
|
Non-operating Income
(Expense), net: |
|
|
|
|
|
Interest Income |
|
2,414 |
|
|
|
2,361 |
|
|
|
2.2 |
|
Interest Expense |
|
(11,363 |
) |
|
|
(7,921 |
) |
|
|
43.5 |
|
Other, net |
|
(516 |
) |
|
|
(80 |
) |
|
|
545.0 |
|
Total Non-operating Expense, net |
|
(9,465 |
) |
|
|
(5,640 |
) |
|
|
67.8 |
|
|
|
|
|
|
|
Income before Income Tax |
|
7,659 |
|
|
|
9,477 |
|
|
|
(19.2 |
) |
Income Tax Expense |
|
2,014 |
|
|
|
2,193 |
|
|
|
(8.2 |
) |
Net Income |
$ |
5,645 |
|
|
$ |
7,284 |
|
|
|
(22.5 |
) |
|
|
|
|
|
|
Net Income per share
to common stockholders: |
|
|
Basic |
$ |
0.10 |
|
|
$ |
0.13 |
|
|
|
(17.0 |
) |
Diluted |
$ |
0.10 |
|
|
$ |
0.12 |
|
|
|
(17.3 |
) |
Shares used for computation: |
|
|
|
|
|
Basic |
|
53,892,797 |
|
|
|
57,693,064 |
|
|
|
(6.6 |
) |
Diluted |
|
56,270,891 |
|
|
|
60,071,021 |
|
|
|
(6.3 |
) |
CONSOLIDATED STATEMENTS OF
OPERATIONS(Dollars in thousands, except per share
amounts)(Unaudited) |
|
|
|
|
|
Year Ended December 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Operating Revenues: |
|
|
|
|
|
Scheduled Service |
$ |
453,862 |
|
|
$ |
438,308 |
|
|
|
3.5 |
|
Charter |
|
190,128 |
|
|
|
161,619 |
|
|
|
17.6 |
|
Ancillary |
|
276,133 |
|
|
|
192,506 |
|
|
|
43.4 |
|
Passenger |
|
920,123 |
|
|
|
792,433 |
|
|
|
16.1 |
|
Cargo |
|
99,735 |
|
|
|
90,350 |
|
|
|
10.4 |
|
Other |
|
29,762 |
|
|
|
11,661 |
|
|
|
155.2 |
|
Total Operating Revenue |
|
1,049,620 |
|
|
|
894,444 |
|
|
|
17.3 |
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
Aircraft Fuel |
|
246,669 |
|
|
|
268,363 |
|
|
|
(8.1 |
) |
Salaries, Wages, and Benefits |
|
295,640 |
|
|
|
245,855 |
|
|
|
20.2 |
|
Aircraft Rent |
|
2,281 |
|
|
|
8,768 |
|
|
|
(74.0 |
) |
Maintenance |
|
60,588 |
|
|
|
46,604 |
|
|
|
30.0 |
|
Sales and Marketing |
|
34,105 |
|
|
|
31,053 |
|
|
|
9.8 |
|
Depreciation and Amortization |
|
88,151 |
|
|
|
67,641 |
|
|
|
30.3 |
|
Ground Handling |
|
37,506 |
|
|
|
33,816 |
|
|
|
10.9 |
|
Landing Fees and Airport Rent |
|
49,615 |
|
|
|
45,658 |
|
|
|
8.7 |
|
Other Operating, net |
|
107,565 |
|
|
|
90,978 |
|
|
|
18.2 |
|
Total Operating Expenses |
|
922,120 |
|
|
|
838,736 |
|
|
|
9.9 |
|
Operating Income |
|
127,500 |
|
|
|
55,708 |
|
|
|
128.9 |
|
|
|
|
|
|
|
Non-operating Income
(Expense), net: |
|
|
|
|
|
Interest Income |
|
10,180 |
|
|
|
4,527 |
|
|
|
124.9 |
|
Interest Expense |
|
(42,634 |
) |
|
|
(31,018 |
) |
|
|
37.4 |
|
Other, net |
|
(887 |
) |
|
|
(5,235 |
) |
|
|
(83.1 |
) |
Total Non-operating Expense, net |
|
(33,341 |
) |
|
|
(31,726 |
) |
|
|
5.1 |
|
|
|
|
|
|
|
Income before Income Tax |
|
94,159 |
|
|
|
23,982 |
|
|
|
292.6 |
|
Income Tax Expense |
|
21,978 |
|
|
|
6,306 |
|
|
|
248.5 |
|
Net Income |
$ |
72,181 |
|
|
$ |
17,676 |
|
|
|
308.4 |
|
|
|
|
|
|
|
Net Income per share
to common stockholders: |
|
|
|
|
Basic |
$ |
1.30 |
|
|
$ |
0.31 |
|
|
|
319.4 |
|
Diluted |
$ |
1.23 |
|
|
$ |
0.29 |
|
|
|
324.1 |
|
Shares used for computation: |
|
|
|
|
|
Basic |
|
55,507,144 |
|
|
|
57,951,955 |
|
|
|
(4.2 |
) |
Diluted |
|
58,524,652 |
|
|
|
61,046,595 |
|
|
|
(4.1 |
) |
KEY OPERATING STATISTICS |
The following
table presents key operating statistics and metrics for the three
months and year ended December 31, 2023 and 2022. |
|
|
|
|
Three Months Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Scheduled Service Statistics: |
|
|
|
Revenue passenger miles (RPMs) – thousands |
|
1,316,877 |
|
|
|
1,141,495 |
|
|
|
15.4 |
|
Available seat miles (ASMs) –
thousands |
|
1,554,043 |
|
|
|
1,352,830 |
|
|
|
14.9 |
|
Load factor |
|
84.7 |
% |
|
|
84.4 |
% |
|
|
0.3 |
|
Revenue passengers carried |
|
1,047,127 |
|
|
|
882,877 |
|
|
|
18.6 |
|
Departures |
|
6,688 |
|
|
|
5,654 |
|
|
|
18.3 |
|
Block hours |
|
21,180 |
|
|
|
18,496 |
|
|
|
14.5 |
|
Scheduled service TRASM(1)-
cents |
|
10.73 |
|
|
|
11.80 |
|
|
|
(9.1 |
) |
Average base fare per
passenger |
$ |
89.06 |
|
|
$ |
117.38 |
|
|
|
(24.1 |
) |
Ancillary revenue per
passenger |
$ |
67.33 |
|
|
$ |
59.98 |
|
|
|
12.3 |
|
Total fare per passenger |
$ |
156.39 |
|
|
$ |
177.36 |
|
|
|
(11.8 |
) |
Fuel gallons - thousands |
|
16,404 |
|
|
|
14,282 |
|
|
|
14.9 |
|
|
|
|
|
Charter
Statistics: |
|
|
|
Departures |
|
2,571 |
|
|
|
2,402 |
|
|
|
7.0 |
|
Block hours |
|
5,160 |
|
|
|
4,788 |
|
|
|
7.8 |
|
Available seats miles (ASMs) -
thousands |
|
324,222 |
|
|
|
292,832 |
|
|
|
10.7 |
|
Fuel gallons - thousands |
|
3,237 |
|
|
|
2,970 |
|
|
|
9.0 |
|
|
|
|
|
Cargo
Statistics: |
|
|
|
Departures |
|
3,366 |
|
|
|
3,309 |
|
|
|
1.7 |
|
Block hours |
|
8,960 |
|
|
|
8,800 |
|
|
|
1.8 |
|
|
|
|
|
Total System
Statistics: |
|
|
|
Average passenger aircraft |
|
41.9 |
|
|
|
38.1 |
|
|
|
10.0 |
|
Passenger aircraft – end of
period |
|
42 |
|
|
|
42 |
|
|
|
— |
|
Leased Aircraft - end of
period |
|
6 |
|
|
|
— |
|
|
|
NM |
|
Cargo aircraft – end of
period |
|
12 |
|
|
|
12 |
|
|
|
— |
|
Available seat miles (ASMs) –
thousands |
|
1,899,363 |
|
|
|
1,657,207 |
|
|
|
14.6 |
|
Departures |
|
12,745 |
|
|
|
11,440 |
|
|
|
11.4 |
|
Block hours |
|
35,653 |
|
|
|
32,309 |
|
|
|
10.4 |
|
Daily utilization – hours |
|
6.9 |
|
|
|
6.7 |
|
|
|
3.0 |
|
Average stage length – miles |
|
1,098 |
|
|
|
1,113 |
|
|
|
(1.3 |
) |
Total revenue per ASM (TRASM) -
cents |
|
11.25 |
|
|
|
12.23 |
|
|
|
(8.0 |
) |
Cost per ASM (CASM) - cents |
|
12.03 |
|
|
|
12.79 |
|
|
|
(5.9 |
) |
Adjusted CASM(2)- cents |
|
7.28 |
|
|
|
7.44 |
|
|
|
(2.2 |
) |
Fuel gallons - thousands |
|
19,841 |
|
|
|
17,369 |
|
|
|
14.2 |
|
Fuel cost per gallon |
$ |
3.07 |
|
|
$ |
3.58 |
|
|
|
(14.2 |
) |
Employees at end of period |
|
2,783 |
|
|
|
2,510 |
|
|
|
10.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 – See note 3 in
End Notes |
2 – See note 4 in
End Notes |
“NM” stands for not
meaningful |
KEY OPERATING STATISTICS |
|
|
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Scheduled Service Statistics: |
|
|
|
Revenue passenger miles (RPMs) – thousands |
|
5,217,852 |
|
|
|
4,706,996 |
|
|
|
10.9 |
|
Available seat miles (ASMs) – thousands |
|
6,044,011 |
|
|
|
5,637,233 |
|
|
|
7.2 |
|
Load factor |
|
86.3 |
% |
|
|
83.5 |
% |
|
|
2.8 |
|
Revenue passengers carried |
|
4,140,663 |
|
|
|
3,598,584 |
|
|
|
15.1 |
|
Departures |
|
26,144 |
|
|
|
23,166 |
|
|
|
12.9 |
|
Block hours |
|
82,618 |
|
|
|
76,081 |
|
|
|
8.6 |
|
Scheduled service TRASM(1)- cents |
|
12.27 |
|
|
|
11.40 |
|
|
|
7.6 |
|
Average base fare per passenger |
$ |
109.61 |
|
|
$ |
121.80 |
|
|
|
(10.0 |
) |
Ancillary revenue per passenger |
$ |
66.69 |
|
|
$ |
53.49 |
|
|
|
24.7 |
|
Total fare per passenger |
$ |
176.30 |
|
|
$ |
175.29 |
|
|
|
0.6 |
|
Fuel gallons - thousands |
|
64,450 |
|
|
|
59,222 |
|
|
|
8.8 |
|
|
|
|
|
Charter
Statistics: |
|
|
|
Departures |
|
10,387 |
|
|
|
8,616 |
|
|
|
20.6 |
|
Block hours |
|
21,154 |
|
|
|
17,788 |
|
|
|
18.9 |
|
Available seats miles (ASMs) -
thousands |
|
1,286,175 |
|
|
|
1,093,530 |
|
|
|
17.6 |
|
Fuel gallons - thousands |
|
14,299 |
|
|
|
12,055 |
|
|
|
18.6 |
|
|
|
|
|
Cargo
Statistics: |
|
|
|
Departures |
|
13,009 |
|
|
|
11,619 |
|
|
|
12.0 |
|
Block hours |
|
34,592 |
|
|
|
32,691 |
|
|
|
5.8 |
|
|
|
|
|
Total System
Statistics: |
|
|
|
Average passenger aircraft |
|
41.8 |
|
|
|
35.9 |
|
|
|
16.4 |
|
Passenger aircraft – end of
period |
|
42 |
|
|
|
42 |
|
|
|
— |
|
Leased Aircraft - end of
period |
|
6 |
|
|
|
— |
|
|
NM |
Cargo aircraft – end of
period |
|
12 |
|
|
|
12 |
|
|
|
— |
|
Available seat miles (ASMs) –
thousands |
|
7,416,189 |
|
|
|
6,771,340 |
|
|
|
9.5 |
|
Departures |
|
50,040 |
|
|
|
43,686 |
|
|
|
14.5 |
|
Block hours |
|
139,841 |
|
|
|
127,361 |
|
|
|
9.8 |
|
Daily utilization – hours |
|
6.9 |
|
|
|
7.2 |
|
|
|
(4.2 |
) |
Average stage length – miles |
|
1,090 |
|
|
|
1,155 |
|
|
|
(5.6 |
) |
Total revenue per ASM (TRASM) -
cents |
|
12.56 |
|
|
|
11.87 |
|
|
|
5.8 |
|
Cost per ASM (CASM) - cents |
|
12.43 |
|
|
|
12.39 |
|
|
|
0.3 |
|
Adjusted CASM(2)- cents |
|
7.49 |
|
|
|
7.04 |
|
|
|
6.4 |
|
Fuel gallons - thousands |
|
79,574 |
|
|
|
71,690 |
|
|
|
11.0 |
|
Fuel cost per gallon, excluding
derivatives |
$ |
3.11 |
|
|
$ |
3.75 |
|
|
|
(17.1 |
) |
Employees at end of period |
|
2,783 |
|
|
|
2,510 |
|
|
|
10.9 |
|
|
1 – See note 3 in
End Notes |
2 – See note 4 in
End Notes |
“NM” stands for not
meaningful |
SUMMARY BALANCE SHEET(Dollars in
millions)(amounts may not recalculate due to
rounding) |
|
|
December 31, 2023 |
|
December 31, 2022 |
|
% Change |
|
(Unaudited) |
|
|
|
|
Cash & Cash Equivalents |
$ |
46.3 |
|
|
$ |
92.1 |
|
|
|
(49.7 |
) |
Other Current Assets |
|
225.1 |
|
|
|
253.4 |
|
|
|
(11.2 |
) |
Total Current Assets |
|
271.4 |
|
|
|
345.5 |
|
|
|
(21.4 |
) |
Total Property & Equipment,
net |
|
969.0 |
|
|
|
785.7 |
|
|
|
23.3 |
|
Other Assets |
|
383.3 |
|
|
|
393.3 |
|
|
|
(2.5 |
) |
Total Assets |
|
1,623.6 |
|
|
|
1,524.4 |
|
|
|
6.5 |
|
|
|
|
|
|
|
Air Traffic Liabilities |
|
158.0 |
|
|
|
158.0 |
|
|
|
— |
|
Current Finance Lease
Obligations |
|
44.8 |
|
|
|
18.0 |
|
|
|
148.9 |
|
Current Operating Lease
Obligations |
|
2.2 |
|
|
|
6.3 |
|
|
|
(65.1 |
) |
Current Maturities of Long-Term
Debt |
|
74.2 |
|
|
|
57.5 |
|
|
|
29.0 |
|
Income Tax Receivable Agreement
Liability |
|
3.3 |
|
|
|
2.3 |
|
|
|
43.5 |
|
Other Current Liabilities |
|
136.2 |
|
|
|
135.0 |
|
|
|
0.9 |
|
Total Current Liabilities |
|
418.6 |
|
|
|
377.1 |
|
|
|
11.0 |
|
Finance Lease Obligations |
|
232.5 |
|
|
|
233.3 |
|
|
|
(0.3 |
) |
Operating Lease Obligations |
|
16.6 |
|
|
|
19.8 |
|
|
|
(16.2 |
) |
Long-Term Debt |
|
327.5 |
|
|
|
294.7 |
|
|
|
11.1 |
|
Income Tax Receivable Agreement
Liability |
|
97.8 |
|
|
|
101.5 |
|
|
|
(3.6 |
) |
Other Liabilities |
|
16.2 |
|
|
|
5.2 |
|
|
|
211.5 |
|
Total Liabilities |
|
1,109.2 |
|
|
|
1,031.7 |
|
|
|
7.5 |
|
|
|
|
|
|
|
Total Stockholders’
Equity |
$ |
514.4 |
|
|
$ |
492.7 |
|
|
|
4.4 |
|
SUMMARY
CASH FLOW(Dollars in millions) |
(Unaudited - amounts may not recalculate due to
rounding) |
|
|
Year Ended December 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Net Cash Provided by Operating Activities |
$ |
174.1 |
|
|
$ |
127.4 |
|
|
|
36.7 |
|
|
|
|
|
|
|
Purchases of Property &
Equipment |
|
(218.2 |
) |
|
|
(187.9 |
) |
|
|
16.1 |
|
Other Investing Activities,
net |
|
46.9 |
|
|
|
(161.4 |
) |
|
|
(129.1 |
) |
Net Cash Used in
Investing Activities |
|
(171.2 |
) |
|
|
(349.3 |
) |
|
|
(51.0 |
) |
|
|
|
|
|
|
Common Stock Repurchases |
|
(68.6 |
) |
|
|
(25.1 |
) |
|
|
173.3 |
|
Proceeds from Borrowing |
|
119.2 |
|
|
|
188.3 |
|
|
|
(36.7 |
) |
Repayment of Finance Lease
Obligations |
|
(21.9 |
) |
|
|
(42.1 |
) |
|
|
(48.0 |
) |
Repayment of Borrowings |
|
(69.3 |
) |
|
|
(113.5 |
) |
|
|
(38.9 |
) |
Other Financing Activities,
net |
|
(1.6 |
) |
|
|
(0.6 |
) |
|
|
166.7 |
|
Net Cash (Used in) Provided by Financing
Activities |
|
(42.1 |
) |
|
|
7.0 |
|
|
NM |
|
|
|
|
|
|
Net Decrease in Cash |
|
(39.2 |
) |
|
|
(214.9 |
) |
|
|
(81.8 |
) |
Cash, Cash Equivalents and Restricted Cash – Beginning of the
Period |
|
102.9 |
|
|
|
317.8 |
|
|
|
(67.6 |
) |
Cash, Cash Equivalents and Restricted Cash – End of the Period |
$ |
63.7 |
|
|
$ |
102.9 |
|
|
|
(38.1 |
) |
|
“NM” stands for not
meaningful |
NON-GAAP FINANCIAL MEASURES
Adjusted Operating Income, Adjusted
Operating Income Margin, Adjusted Income before Income Tax,
Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted Net Income
per Share, Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted Operating Income, Adjusted Operating
Income Margin, Adjusted Income before Income Tax, Adjusted Pre-tax
Margin, Adjusted Net Income, Adjusted Net Income per share,
Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures
included as supplemental disclosure because we believe they are
useful indicators of our operating performance. Derivations of
Operating Income and Net Income are well recognized performance
measurements in the airline industry that are frequently used by
our management, as well as by investors, securities analysts and
other interested parties in comparing the operating performance of
companies in our industry.
The measures described above have limitations as
analytical tools. Some of the limitations applicable to these
measures include: they do not reflect the impact of certain cash
and non-cash charges resulting from matters we consider not to be
indicative of our ongoing operations; and other companies in our
industry may calculate these non-GAAP measures differently than we
do, limiting each measure’s usefulness as a comparative measure.
Because of these limitations, the following non-GAAP measures
should not be considered in isolation or as a substitute for
performance measures calculated in accordance with GAAP and may not
be the same as or comparable to similarly titled measures presented
by other companies due to the possible differences in the method of
calculation and in the items being adjusted.
For the aforementioned reasons, Adjusted
Operating Income, Adjusted Operating Income Margin, Adjusted Income
before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income,
Adjusted Net Income per Share, Adjusted EBITDA and Adjusted EBITDA
Margin have significant limitations which affect their use as
indicators of our profitability. Accordingly, readers are cautioned
not to place undue reliance on this information.
Reconciliation of GAAP Operating Income to Adjusted
Operating Income |
Dollars in millions - Unaudited - amounts may not
recalculate due to rounding |
The following
table presents the reconciliation of GAAP Operating Income to
Adjusted Operating Income. |
|
|
Three Months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Operating Revenue |
$ |
245.5 |
|
|
$ |
227.2 |
|
Operating Income |
|
17.1 |
|
|
|
15.1 |
|
Stock Compensation Expense |
|
1.1 |
|
|
|
0.8 |
|
Adjusted Operating Income |
$ |
18.3 |
|
|
$ |
15.9 |
|
|
|
|
|
Operating Income Margin |
|
7.0 |
% |
|
|
6.7 |
% |
Adjusted Operating Income Margin |
|
7.4 |
% |
|
|
7.0 |
% |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Operating Revenue |
$ |
1,049.6 |
|
|
$ |
894.4 |
|
Operating Income |
|
127.5 |
|
|
|
55.7 |
|
Stock Compensation Expense |
|
9.3 |
|
|
|
2.8 |
|
Adjusted Operating Income |
$ |
136.8 |
|
|
$ |
58.5 |
|
|
|
|
|
Operating Income Margin |
|
12.1 |
% |
|
|
6.2 |
% |
Adjusted Operating Income Margin |
|
13.0 |
% |
|
|
6.5 |
% |
Reconciliation of GAAP Income Before Income Tax to Adjusted
Income before Income Tax |
Dollars in millions - Unaudited - amounts may not
recalculate due to rounding |
The following
table presents the reconciliation of GAAP Income before Income Tax
to Adjusted Income before Income Tax. |
|
|
Three Months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Net Income |
$ |
5.6 |
|
|
$ |
7.3 |
|
Add: Provision for Income Tax Expense |
|
2.0 |
|
|
|
2.2 |
|
Income before Income Tax, as reported |
|
7.7 |
|
|
|
9.5 |
|
Pre-tax margin |
|
3.1 |
% |
|
|
4.2 |
% |
|
|
|
|
Stock Compensation Expense |
|
1.1 |
|
|
|
0.8 |
|
Secondary Offering Costs |
|
0.5 |
|
|
|
— |
|
Adjusted Income before Income
Tax |
$ |
9.3 |
|
|
$ |
10.3 |
|
|
|
|
|
Adjusted Pre-tax margin |
|
3.8 |
% |
|
|
4.5 |
% |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Net Income |
$ |
72.2 |
|
|
$ |
17.7 |
|
Add: Provision for Income Tax Expense |
|
22.0 |
|
|
|
6.3 |
|
Income before Income Tax, as reported |
|
94.2 |
|
|
|
24.0 |
|
Pre-tax margin |
|
9.0 |
% |
|
|
2.7 |
% |
|
|
|
|
Stock Compensation Expense |
|
9.3 |
|
|
|
2.8 |
|
Secondary Offering Costs |
|
1.1 |
|
|
|
— |
|
Gain on Asset Transactions, net(1) |
|
— |
|
|
|
(0.3 |
) |
Tax Receivable Agreement
Adjustment(2) |
|
(0.3 |
) |
|
|
5.0 |
|
Loss on Refinancing Credit
Facility |
|
— |
|
|
|
1.6 |
|
Adjusted Income before Income
Tax |
$ |
104.2 |
|
|
$ |
33.0 |
|
|
|
|
|
Adjusted Pre-tax margin |
|
9.9 |
% |
|
|
3.7 |
% |
(1 |
) |
Due to changes in the Company’s
operations, Management determined that, beginning in the fourth
quarter 2022, certain asset transactions will no longer be included
as adjustments to Adjusted Income Before Income Tax because these
transactions are part of our recurring operations. This change was
made prospectively beginning in the fourth quarter of 2022, and no
prior period amounts have been adjusted. |
(2 |
) |
This represents the adjustment
to the TRA for the period, which is recorded in Non-Operating
Income (Expense), net |
Reconciliation of GAAP Net Income and Earnings per Share to
Adjusted Net Income and Adjusted Earnings per Share |
Dollars and shares in millions, except for per share -
Unaudited - amounts may not recalculate due to
rounding |
The following
table presents the reconciliation of GAAP Net Income and Earnings
per Share to Adjusted Net Income and Adjusted Earnings per
Share. |
|
|
Three Months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
Dollars |
|
Per Share - diluted |
|
Dollars |
|
Per Share - diluted |
Net Income |
$ |
5.6 |
|
|
$ |
0.10 |
|
|
$ |
7.3 |
|
|
$ |
0.12 |
|
Stock Compensation Expense |
|
1.1 |
|
|
|
0.02 |
|
|
|
0.8 |
|
|
|
0.01 |
|
Secondary Offering Costs |
|
0.5 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
Income Tax Effect of Adjusting
Items, net(1) |
|
(0.4 |
) |
|
|
(0.01 |
) |
|
|
(0.2 |
) |
|
|
— |
|
Adjusted Net Income |
$ |
6.9 |
|
|
$ |
0.12 |
|
|
$ |
7.9 |
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
Diluted share count |
|
56.3 |
|
|
|
|
|
60.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
Dollars |
|
Per Share - diluted |
|
Dollars |
|
Per Share - diluted |
Net Income |
$ |
72.2 |
|
|
$ |
1.23 |
|
|
$ |
17.7 |
|
|
$ |
0.29 |
|
Stock Compensation Expense |
|
9.3 |
|
|
|
0.16 |
|
|
|
2.8 |
|
|
|
0.05 |
|
Secondary Offering Costs |
|
1.1 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Gain on Asset Transactions, net(2) |
|
— |
|
|
|
— |
|
|
|
(0.3 |
) |
|
|
(0.01 |
) |
Tax Receivable Agreement Adjustment(3) |
|
(0.3 |
) |
|
|
(0.01 |
) |
|
|
5.0 |
|
|
|
0.08 |
|
Loss on Refinancing Credit Facility |
|
— |
|
|
|
— |
|
|
|
1.6 |
|
|
|
0.03 |
|
Income Tax Effect of Adjusting
Items, net(1) |
|
(2.4 |
) |
|
|
(0.04 |
) |
|
|
(0.9 |
) |
|
|
(0.02 |
) |
Adjusted Net Income |
$ |
79.9 |
|
|
$ |
1.37 |
|
|
$ |
25.8 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
Diluted share count |
|
58.5 |
|
|
|
|
|
61.0 |
|
|
|
(1 |
) |
The tax effect of adjusting
items, net is calculated at the Company’s statutory rate for the
application period |
(2 |
) |
Due to changes in the Company’s
operations, Management determined that, beginning in the fourth
quarter 2022, certain asset transactions will no longer be included
as adjustments to Adjusted Net Income because these transactions
are part of our recurring operations. This change was made
prospectively beginning in the fourth quarter of 2022, and no prior
period amounts have been adjusted. |
(3 |
) |
This represents the adjustment
to the TRA for the period, which is recorded in Non-Operating
Income (Expense), net |
Reconciliation of GAAP Net Income to Adjusted
EBITDA |
Dollars in millions - Unaudited - amounts may not
recalculate due to rounding |
The following
tables present the reconciliation of GAAP Net Income to Adjusted
EBITDA for the periods presented below. |
|
|
Three Months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Net
Income |
$ |
5.6 |
|
|
$ |
7.3 |
|
Interest Income |
|
(2.4 |
) |
|
|
(2.4 |
) |
Interest Expense |
|
11.4 |
|
|
|
7.9 |
|
Stock Compensation Expense |
|
1.1 |
|
|
|
0.8 |
|
Secondary Offering Costs |
|
0.5 |
|
|
|
— |
|
Provision for Income Taxes |
|
2.0 |
|
|
|
2.2 |
|
Depreciation and
Amortization |
|
23.6 |
|
|
|
18.3 |
|
Adjusted EBITDA |
$ |
41.8 |
|
|
$ |
34.1 |
|
|
|
|
|
Net Income Margin |
|
2.3 |
% |
|
|
3.2 |
% |
Adjusted EBITDA margin |
|
17.0 |
% |
|
|
15.0 |
% |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Net
Income |
$ |
72.2 |
|
|
$ |
17.7 |
|
Interest Income |
|
(10.2 |
) |
|
|
(4.5 |
) |
Interest Expense |
|
42.6 |
|
|
|
31.0 |
|
Stock Compensation Expense |
|
9.3 |
|
|
|
2.8 |
|
Gain on Asset Transactions,
net(1) |
|
— |
|
|
|
(0.3 |
) |
Secondary Offering Costs |
|
1.1 |
|
|
|
— |
|
Tax Receivable Agreement
Adjustment(2) |
|
(0.3 |
) |
|
|
5.0 |
|
Provision for Income Taxes |
|
22.0 |
|
|
|
6.3 |
|
Depreciation and
Amortization |
|
88.2 |
|
|
|
67.6 |
|
Adjusted EBITDA |
$ |
224.8 |
|
|
$ |
125.6 |
|
|
|
|
|
Net Income Margin |
|
6.9 |
% |
|
|
2.0 |
% |
Adjusted EBITDA margin |
|
21.4 |
% |
|
|
14.0 |
% |
(1 |
) |
Due to changes in the Company’s
operations, Management determined that, beginning in the fourth
quarter 2022, certain asset transactions will no longer be included
as adjustments to Adjusted EBITDA because these transactions are
part of our recurring operations. This change was made
prospectively beginning in the fourth quarter of 2022, and no prior
period amounts have been adjusted. |
(2 |
) |
This represents the adjustment
to the TRA for the period, which is recorded in Non-Operating
Income (Expense), net |
Adjusted CASM
Adjusted CASM is a non-GAAP measure
derived from CASM by excluding fuel costs, costs related to our
cargo operations, stock based compensation, depreciation and
amortization recognized on certain assets that generate lease
income, certain commissions and other costs of selling our
vacations product from this measure as these costs are unrelated to
our airline operations and improve comparability to our peers.
Adjusted CASM is an important measure used by management and by our
board of directors in assessing quarterly and annual cost
performance. Adjusted CASM is also a measure commonly used by
industry analysts and we believe it is an important metric by which
they compare our airline to others in the industry, although other
airlines may exclude certain other costs in their calculation of
Adjusted CASM. The measure is also the subject of frequent
questions from investors.
Adjusted CASM excludes fuel costs. By excluding
volatile fuel costs that are outside of our control from our unit
metrics, we believe that we have better visibility into the results
of operations and our non-fuel cost initiatives. Our
industry is highly competitive and is characterized by high fixed
costs, so even a small reduction in non-fuel operating
costs can lead to a significant improvement in operating results.
In addition, we believe that all domestic carriers are similarly
impacted by changes in jet fuel costs over the long run, so it is
important for management and investors to understand the impact and
trends in company-specific cost drivers, such as labor rates,
aircraft and maintenance costs, and productivity, which are more
controllable by management.
We have excluded costs related to the cargo
operations, as well as depreciation and amortization recognized on
certain assets that generate lease income as these operations do
not create ASMs. During the year ended December 31, 2023, we
entered into a series of transactions where we act as a lessor. As
of December 31, 2023, we leased or subleased six aircraft.
Depreciation and Amortization on these aircraft materially began
during the three months ended June 30, 2023. Adjusted CASM further
excludes special items and other adjustments, as defined in the
relevant reporting period, that are not representative of the
ongoing costs necessary to our airline operations and may improve
comparability between periods. We also exclude stock compensation
expense when computing Adjusted CASM. The Company’s compensation
strategy includes the use of stock-based compensation to attract
and retain employees and executives and is principally aimed at
aligning their interests with those of our stockholders and
long-term employee retention, rather than to motivate or reward
operational performance for any period. Thus, stock-based
compensation expense varies for reasons that are generally
unrelated to operational decisions and performance in any
period.
As derivations of Adjusted CASM are not
determined in accordance with GAAP, such measures are susceptible
to varying calculations and not all companies calculate the
measures in the same manner. As a result, derivations of Adjusted
CASM as presented may not be directly comparable to similarly
titled measures presented by other companies. Adjusted CASM should
not be considered in isolation or as a replacement for CASM. For
the aforementioned reasons, Adjusted CASM has significant
limitations which affect its use as an indicator of our
profitability. Accordingly, readers are cautioned not to place
undue reliance on this information.
Reconciliation of CASM to Adjusted CASM |
Amounts may not recalculate due to rounding, dollar amounts
in millions unless otherwise noted |
The following
table presents the reconciliation of CASM to Adjusted CASM. |
|
|
Three Months Ended December 31, |
|
|
2023 |
|
|
2022 |
|
Operating Expenses |
|
|
Per ASM (cents) |
|
|
Operating Expenses |
|
|
Per ASM (cents) |
|
CASM |
$ |
228.4 |
|
|
|
12.03 |
|
|
$ |
212.0 |
|
|
|
12.79 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Aircraft Fuel |
|
60.8 |
|
|
|
3.20 |
|
|
|
62.0 |
|
|
|
3.74 |
|
Stock Compensation Expense |
|
1.1 |
|
|
|
0.06 |
|
|
|
0.8 |
|
|
|
0.05 |
|
Cargo Expenses, Not Already
Adjusted Above |
|
25.8 |
|
|
|
1.36 |
|
|
|
25.8 |
|
|
|
1.55 |
|
Sun Country Vacations |
|
0.2 |
|
|
|
0.01 |
|
|
|
0.2 |
|
|
|
0.01 |
|
Leased Aircraft, Depreciation
Expense |
|
2.2 |
|
|
|
0.12 |
|
|
|
— |
|
|
|
— |
|
Adjusted CASM |
$ |
138.2 |
|
|
|
7.28 |
|
|
$ |
123.2 |
|
|
|
7.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Available seat miles (ASMs) |
|
1,899.4 |
|
|
|
|
|
|
|
1,657.2 |
|
|
|
|
|
|
Year Ended December 31, |
|
|
2023 |
|
|
2022 |
|
Operating Expenses |
|
|
Per ASM (cents) |
|
|
Operating Expenses |
|
|
Per ASM (cents) |
|
CASM |
$ |
922.1 |
|
|
|
12.43 |
|
|
$ |
838.7 |
|
|
|
12.39 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Aircraft Fuel |
|
246.7 |
|
|
|
3.33 |
|
|
|
268.4 |
|
|
|
3.96 |
|
Stock Compensation Expense |
|
9.3 |
|
|
|
0.12 |
|
|
|
2.8 |
|
|
|
0.04 |
|
Cargo Expenses, Not Already
Adjusted Above |
|
103.0 |
|
|
|
1.39 |
|
|
|
89.8 |
|
|
|
1.33 |
|
Sun Country Vacations |
|
1.1 |
|
|
|
0.01 |
|
|
|
1.0 |
|
|
|
0.02 |
|
Leased Aircraft, Depreciation
Expense |
|
6.7 |
|
|
|
0.09 |
|
|
|
— |
|
|
|
— |
|
Adjusted CASM |
$ |
555.4 |
|
|
|
7.49 |
|
|
$ |
476.8 |
|
|
|
7.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Available seat miles (ASMs) |
|
7,416.2 |
|
|
|
|
|
|
|
6,771.3 |
|
|
|
|
|
Contacts
Investor Relations
Chris Allen
651-681-4810
IR@suncountry.com
Media
Wendy Burt
651-900-8400
mediarelations@suncountry.com
Grafico Azioni Sun Country Airlines (NASDAQ:SNCY)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Sun Country Airlines (NASDAQ:SNCY)
Storico
Da Giu 2023 a Giu 2024