Second quarter 2019 fully diluted earnings per share of
Second quarter 2019 airline diluted earnings per share of
66th consecutive profitable quarter
Consolidated | Three Months Ended June 30, |
Percent | Six Months Ended June 30, |
Percent | |||||||||||||||
(unaudited) | 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||
Total operating revenue (millions) | $ | 491.8 | $ | 436.8 | 12.6 | % | $ | 943.4 | $ | 862.2 | 9.4 | % | |||||||
Operating income (millions) | 108.1 | 74.2 | 45.7 | 199.2 | 154.2 | 29.2 | |||||||||||||
Net income (millions) | 70.5 | 50.0 | 41.0 | 127.7 | 105.2 | 21.3 | |||||||||||||
Diluted earnings per share | $ | 4.33 | $ | 3.10 | 39.7 | % | $ | 7.84 | $ | 6.52 | 20.2 | % |
Airline only | Three Months Ended June 30, |
Percent | Six Months Ended June 30, |
Percent | |||||||||||||||
(unaudited) | 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||
Airline operating revenue (millions) | $ | 486.8 | $ | 434.6 | 12.0 | % | $ | 935.1 | $ | 858.9 | 8.9 | % | |||||||
Airline operating income (millions) | 115.5 | 76.1 | 51.8 | 214.0 | 158.0 | 35.4 | |||||||||||||
Airline operating margin(2) | 23.7 | % | 17.5 | % | 6.2 | 22.9 | % | 18.4 | % | 4.5 | |||||||||
Airline diluted earnings per share(1) | $ | 4.81 | $ | 3.21 | 49.8 | $ | 8.80 | $ | 6.75 | 30.4 | |||||||||
Airline CASM ex fuel (cents)(1) | 5.65 | 6.02 | (6.1 | ) | 6.00 | 6.17 | (2.8 | ) |
(1) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information.
(2) Percent point change
"I’m happy to report the second quarter of 2019 was Allegiant’s 66th consecutive profitable quarter," stated
"On the revenue front, scheduled service revenue was
"Our operations continue to excel. We have solely led or tied for the industry lead in completion factor every month in 2019. One of our challenges in the past few years has been our ability to scale our operations during our peak periods in the summer months and maintain a high completion rate. In
"This combination of superior financial results and industry-leading operational performance, along with the proprietary model we have developed and continue to operate is a tribute to our excellent team members. Looking forward, we are excited about the opportunities in front of us including our ability to operate our leisure model to
Airline operational highlights
• Departures in the second quarter up 13.8 percent year over year despite seven fewer average aircraft in service
• Average number of aircraft in service decreased 7.6 percent from 92 to 85 year over year
• Spare aircraft reduced from twelve down to four spares year over year
• Block hour utilization increased by 20.5 percent to 8.8 block hours per aircraft per day
• Led industry in completion every month in 2019
• Maintenance cancellations down 87.6 percent year over year
• On time performance (A-14) for the quarter was 77.7 percent up 2.8pts year over year
• Net promoter score is up an average of 8pts year over year
• Irregular operation costs - second quarter down
Airline only second quarter 2019 results
• Diluted earnings per share were
• 23.7 percent operating margin for the quarter and 22.9 percent year to date
• TRASM decreased 1.6 percent on capacity growth of 13.6 percent
• May TRASM grew 2.4 percent on 11 percent growth in ASMs
• June TRASM grew 0.7 percent on 13.5 percent growth in ASMs
• Total fare is down only 0.5 percent despite increasing aircraft utilization by 20.5 percent
• Year-to-date average total fare has increased 1.0 percent to
• Fixed fee flying revenue increased 63.2 percent
• Fuel gallons used increased only 4.9 percent on ASM growth of 13.4 percent
• Increase in ASMs per gallon of 8.1 percent to 82.3
• Airline unit cost excluding fuel decreased by 6.1 percent
• Maintenance and operational improvements were the largest drivers
Liquidity and shareholder returns
• Total cash and investments at
• Paid off high yield bond balance of
• Currently, we have 26 unencumbered aircraft
•
• Returned
• Expect to pay dividend of
Non-airline highlights
• Non-airline businesses resulted in a combined operating loss of
• Evaluating strategic alternatives for Teesnap
• Triggered the business classification of an entity held for sale in
• SunseekerResorts FY19
• Operated two family entertainment centers (FEC's) during second quarter
• Rebranded FEC’s from G4CE to Allegiant Nonstop effective
Guidance, subject to revision | ||||||
Full year 2019 guidance | Previous | Current | ||||
Fuel cost per gallon | $ | 2.26 | $ | 2.15 | ||
Available seat miles (ASMs) / gallon | 81.0 to 83.0 | 82.0 to 83.0 | ||||
Interest expense (millions) | $70 to $80 | $75 to $80 | ||||
Tax rate | 24 to 25% | 23 to 24% | ||||
Share count (millions) | 15.9 | 15.9 | ||||
Earnings per share | $13.25 to $14.75 | $13.50 to $14.25 | ||||
System ASMs - year over year change | 7.5 to 9.5% | 8 to 9% | ||||
Scheduled service ASMs - year over year change | 7.5 to 9.5% | 8 to 9% | ||||
Depreciation expense (millions) | $150 to $160 | $155 to $160 | ||||
Airline operating CASM excluding fuel - year over year change | (3.5) to (1.5)% | (4) to (3)% | ||||
Non airline operating income (millions) | ($17) to ($12) | **** | ||||
Airline CAPEX - full year 2019 | ||||||
Capital expenditures (millions) | $400 to 410 | $385 to 390 | ||||
Capitalized Airbus deferred heavy maintenance (millions) * | $85 to 105 | $85 to 95 | ||||
Sunseeker Resorts CAPEX | ||||||
Project to date (millions) | $ | 54 | $ | 67 | ||
Expected 2019 spend (millions) | $250 to 300 | $150 to 175 | ||||
Total project spend remaining ** | $ | 416 | $ | 403 | ||
Other CAPEX - full year 2019*** | ||||||
Capital expenditures (millions) | $15 to 20 | $15 to 20 |
Previous guidance as of
* Not included in capital expenditure total
** Of the total remaining capex, expect to receive
*** Includes Allegiant Nonstop
**** With Teesnap entity being held for sale, suspending guidance
Aircraft fleet plan by end of period | |||||||||||||||
Aircraft - (seats per AC) | YE18 | 1Q19 | 2Q19 | 3Q19 | YE19 | ||||||||||
A319 (156 seats) | 32 | 37 | 37 | 37 | 38 | ||||||||||
A320 (177/186 seats) | 44 | 47 | 49 | 53 | 55 | ||||||||||
Total | 76 | 84 | 86 | 90 | 93 |
Aircraft listed in table above include only in-service aircraft and future aircraft under contract (subject to change)
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 expenses, revenues, earnings, ASM growth, fuel consumption, expected capital expenditures, number of contracted aircraft to be placed in service in the future, the development and financing of our
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
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:
Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended June 30, | Percent | ||||||||||||||||||||
2019 | 2018 | change | |||||||||||||||||||
OPERATING REVENUE: | |||||||||||||||||||||
Passenger revenue | $ | 454,779 | $ | 405,572 | 12.1 | ||||||||||||||||
Third party products | 18,208 | 17,799 | 2.3 | ||||||||||||||||||
Fixed fee contract revenue | 12,487 | 7,653 | 63.2 | ||||||||||||||||||
Other revenue | 6,285 | 5,756 | 9.2 | ||||||||||||||||||
Total operating revenue | 491,759 | 436,780 | 12.6 | ||||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||
Aircraft fuel | 119,987 | 122,454 | (2.0 | ) | |||||||||||||||||
Salary and benefits | 113,592 | 101,645 | 11.8 | ||||||||||||||||||
Station operations | 45,870 | 41,553 | 10.4 | ||||||||||||||||||
Maintenance and repairs | 20,877 | 24,611 | (15.2 | ) | |||||||||||||||||
Depreciation and amortization | 38,494 | 29,833 | 29.0 | ||||||||||||||||||
Sales and marketing | 20,540 | 18,348 | 11.9 | ||||||||||||||||||
Aircraft lease rental | — | 75 | (100.0 | ) | |||||||||||||||||
Other | 24,294 | 24,039 | 1.1 | ||||||||||||||||||
Total operating expense | 383,654 | 362,558 | 5.8 | ||||||||||||||||||
OPERATING INCOME | 108,105 | 74,222 | 45.7 | ||||||||||||||||||
OTHER (INCOME) EXPENSE: | |||||||||||||||||||||
Interest expense | 20,942 | 13,251 | 58.0 | ||||||||||||||||||
Capitalized interest | (1,038 | ) | (95 | ) | NM | ||||||||||||||||
Interest income | (3,502 | ) | (1,927 | ) | 81.7 | ||||||||||||||||
Other, net | (86 | ) | (50 | ) | 72.0 | ||||||||||||||||
Total other expense | 16,316 | 11,179 | 46.0 | ||||||||||||||||||
INCOME BEFORE INCOME TAXES | 91,789 | 63,043 | 45.6 | ||||||||||||||||||
PROVISION FOR INCOME TAXES | 21,246 | 13,027 | 63.1 | ||||||||||||||||||
NET INCOME | $ | 70,543 | $ | 50,016 | 41.0 | ||||||||||||||||
Earnings per share to common shareholders(1): | |||||||||||||||||||||
Basic | $ | 4.33 | $ | 3.10 | 39.7 | ||||||||||||||||
Diluted | $ | 4.33 | $ | 3.10 | 39.7 | ||||||||||||||||
Weighted average shares outstanding used in computing earnings per share to common shareholders(1): | |||||||||||||||||||||
Basic | 16,063 | 15,939 | 0.8 | ||||||||||||||||||
Diluted | 16,069 | 15,945 | 0.8 |
NM - Not meaningful
(1) The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share calculations for the periods presented reflect the two-class method mandated by ASC Topic 260, "Earnings Per Share." The two-class method adjusts both the net income and the shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented.
Operating Statistics
(Unaudited)
Three Months Ended June 30, | Percent | ||||||||||||||||||
2019 | 2018 | change (1) | |||||||||||||||||
OPERATING STATISTICS | |||||||||||||||||||
Total system statistics: | |||||||||||||||||||
Passengers | 4,169,536 | 3,704,113 | 12.6 | ||||||||||||||||
Revenue passenger miles (RPMs) (thousands) | 3,654,369 | 3,276,599 | 11.5 | ||||||||||||||||
Available seat miles (ASMs) (thousands) | 4,447,066 | 3,922,294 | 13.4 | ||||||||||||||||
Load factor | 82.2 | % | 83.5 | % | (1.3 | ) | |||||||||||||
Airline operating expense per ASM (CASM) (cents) | 8.35 | 9.14 | (8.6 | ) | |||||||||||||||
Fuel expense per ASM (cents) | 2.70 | 3.12 | (13.5 | ) | |||||||||||||||
Airline operating CASM, excluding fuel (cents) | 5.65 | 6.02 | (6.1 | ) | |||||||||||||||
ASMs per gallon of fuel | 82.3 | 76.1 | 8.1 | ||||||||||||||||
Departures | 30,547 | 27,063 | 12.9 | ||||||||||||||||
Block hours | 68,332 | 60,707 | 12.6 | ||||||||||||||||
Average stage length (miles) | 853 | 858 | (0.6 | ) | |||||||||||||||
Average number of operating aircraft during period | 85.0 | 92.0 | (7.6 | ) | |||||||||||||||
Average block hours per aircraft per day | 8.8 | 7.3 | 20.5 | ||||||||||||||||
Full-time equivalent employees at end of period | 4,179 | 3,840 | 8.8 | ||||||||||||||||
Fuel gallons consumed (thousands) | 54,064 | 51,516 | 4.9 | ||||||||||||||||
Average fuel cost per gallon | $ | 2.22 | $ | 2.38 | (6.7 | ) | |||||||||||||
Scheduled service statistics: | |||||||||||||||||||
Passengers | 4,131,855 | 3,681,944 | 12.2 | ||||||||||||||||
Revenue passenger miles (RPMs) (thousands) | 3,603,076 | 3,245,774 | 11.0 | ||||||||||||||||
Available seat miles (ASMs) (thousands) | 4,311,182 | 3,795,815 | 13.6 | ||||||||||||||||
Load factor | 83.6 | % | 85.5 | % | (1.9 | ) | |||||||||||||
Departures | 29,567 | 25,992 | 13.8 | ||||||||||||||||
Block hours | 66,135 | 58,536 | 13.0 | ||||||||||||||||
Total passenger revenue per ASM (TRASM) (cents)(2) | 10.97 | 11.15 | (1.6 | ) | |||||||||||||||
Average fare - scheduled service(3) | $ | 58.39 | $ | 64.62 | (9.6 | ) | |||||||||||||
Average fare - air-related charges(3) | $ | 51.68 | $ | 45.53 | 13.5 | ||||||||||||||
Average fare - third party products | $ | 4.40 | $ | 4.84 | (9.1 | ) | |||||||||||||
Average fare - total | $ | 114.47 | $ | 114.99 | (0.5 | ) | |||||||||||||
Average stage length (miles) | 853 | 864 | (1.3 | ) | |||||||||||||||
Fuel gallons consumed (thousands) | 52,327 | 49,671 | 5.3 | ||||||||||||||||
Average fuel cost per gallon | $ | 2.22 | $ | 2.37 | (6.3 | ) | |||||||||||||
Percent of sales through website during period | 93.5 | % | 93.9 | % | (0.4 | ) | |||||||||||||
Other data: | |||||||||||||||||||
Rental car days sold | 540,960 | 404,355 | 33.8 | ||||||||||||||||
Hotel room nights sold | 114,191 | 93,484 | 22.2 |
(1) Except load factor and percent of sales through website, which is percentage point change.
(2) Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis.
(3) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.
Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
Six Months Ended June 30, | Percent | ||||||||||||||||||||
2019 | 2018 | change | |||||||||||||||||||
OPERATING REVENUE: | |||||||||||||||||||||
Passenger revenue | $ | 874,755 | $ | 802,343 | 9.0 | ||||||||||||||||
Third party products | 35,350 | 28,124 | 25.7 | ||||||||||||||||||
Fixed fee contract revenue | 23,061 | 18,209 | 26.6 | ||||||||||||||||||
Other revenue | 10,215 | 13,548 | (24.6 | ) | |||||||||||||||||
Total operating revenue | 943,381 | 862,224 | 9.4 | ||||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||
Aircraft fuel | 219,670 | 228,481 | (3.9 | ) | |||||||||||||||||
Salary and benefits | 233,003 | 214,608 | 8.6 | ||||||||||||||||||
Station operations | 84,835 | 79,137 | 7.2 | ||||||||||||||||||
Maintenance and repairs | 43,701 | 43,881 | (0.4 | ) | |||||||||||||||||
Depreciation and amortization | 74,676 | 57,983 | 28.8 | ||||||||||||||||||
Sales and marketing | 41,466 | 37,426 | 10.8 | ||||||||||||||||||
Aircraft lease rentals | — | 96 | (100.0 | ) | |||||||||||||||||
Other | 46,849 | 46,422 | 0.9 | ||||||||||||||||||
Total operating expense | 744,200 | 708,034 | 5.1 | ||||||||||||||||||
OPERATING INCOME | 199,181 | 154,190 | 29.2 | ||||||||||||||||||
OTHER (INCOME) EXPENSE: | |||||||||||||||||||||
Interest expense | 39,025 | 26,158 | 49.2 | ||||||||||||||||||
Capitalized interest | (2,541 | ) | (278 | ) | NM | ||||||||||||||||
Interest income | (6,703 | ) | (3,834 | ) | 74.8 | ||||||||||||||||
Loss on extinguishment of debt | 3,677 | — | NM | ||||||||||||||||||
Other, net | 15 | (290 | ) | (105.2 | ) | ||||||||||||||||
Total other expense | 33,473 | 21,756 | 53.9 | ||||||||||||||||||
INCOME BEFORE INCOME TAXES | 165,708 | 132,434 | 25.1 | ||||||||||||||||||
PROVISION FOR INCOME TAXES | 38,041 | 27,225 | 39.7 | ||||||||||||||||||
NET INCOME | $ | 127,667 | $ | 105,209 | 21.3 | ||||||||||||||||
Earnings per share to common shareholders(1): | |||||||||||||||||||||
Basic | $ | 7.85 | $ | 6.53 | 20.2 | ||||||||||||||||
Diluted | $ | 7.84 | $ | 6.52 | 20.2 | ||||||||||||||||
Weighted average shares outstanding used in computing earnings per share to common shareholders(1): | |||||||||||||||||||||
Basic | 16,037 | 15,898 | 0.9 | ||||||||||||||||||
Diluted | 16,050 | 15,914 | 0.9 |
NM - Not meaningful
(1) The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share calculations for the periods presented reflect the two-class method mandated by ASC Topic 260, "Earnings Per Share." The two-class method adjusts both the net income and the shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented.
Operating Statistics
(Unaudited)
Six Months Ended June 30, | Percent | ||||||||||||||||||
2019 | 2018 | change (1) | |||||||||||||||||
OPERATING STATISTICS | |||||||||||||||||||
Total system statistics: | |||||||||||||||||||
Passengers | 7,619,814 | 7,007,064 | 8.7 | ||||||||||||||||
Revenue passenger miles (RPMs) (thousands) | 6,882,963 | 6,371,403 | 8.0 | ||||||||||||||||
Available seat miles (ASMs) (thousands) | 8,357,304 | 7,650,857 | 9.2 | ||||||||||||||||
Load factor | 82.4 | % | 83.3 | % | (0.9 | ) | |||||||||||||
Airline operating expense per ASM (CASM) (cents) | 8.63 | 9.16 | (5.8 | ) | |||||||||||||||
Fuel expense per ASM (cents) | 2.63 | 2.99 | (12.0 | ) | |||||||||||||||
Airline operating CASM, excluding fuel (cents) | 6.00 | 6.17 | (2.8 | ) | |||||||||||||||
ASMs per gallon of fuel | 83.1 | 76.4 | 8.8 | ||||||||||||||||
Departures | 55,747 | 51,311 | 8.6 | ||||||||||||||||
Block hours | 128,151 | 118,510 | 8.1 | ||||||||||||||||
Average stage length (miles) | 876 | 883 | (0.8 | ) | |||||||||||||||
Average number of operating aircraft during period | 82.3 | 90.8 | (9.4 | ) | |||||||||||||||
Average block hours per aircraft per day | 8.6 | 7.2 | 19.4 | ||||||||||||||||
Full-time equivalent employees at end of period | 4,179 | 3,840 | 8.8 | ||||||||||||||||
Fuel gallons consumed (thousands) | 100,537 | 100,156 | 0.4 | ||||||||||||||||
Average fuel cost per gallon | $ | 2.18 | $ | 2.28 | (4.4 | ) | |||||||||||||
Scheduled service statistics: | |||||||||||||||||||
Passengers | 7,553,393 | 6,961,312 | 8.5 | ||||||||||||||||
Revenue passenger miles (RPMs) (thousands) | 6,794,122 | 6,310,393 | 7.7 | ||||||||||||||||
Available seat miles (ASMs) (thousands) | 8,113,315 | 7,397,830 | 9.7 | ||||||||||||||||
Load factor | 83.7 | % | 85.3 | % | (1.6 | ) | |||||||||||||
Departures | 53,911 | 49,256 | 9.5 | ||||||||||||||||
Block hours | 124,098 | 114,224 | 8.6 | ||||||||||||||||
Total passenger revenue per ASM (TRASM) (cents)(2) | 11.22 | 11.23 | (0.1 | ) | |||||||||||||||
Average fare - scheduled service(3) | $ | 63.49 | $ | 68.95 | (7.9 | ) | |||||||||||||
Average fare - air-related charges(3) | $ | 52.32 | $ | 46.31 | 13.0 | ||||||||||||||
Average fare - third party products | $ | 4.68 | $ | 4.04 | 15.8 | ||||||||||||||
Average fare - total | $ | 120.49 | $ | 119.30 | 1.0 | ||||||||||||||
Average stage length (miles) | 878 | 889 | (1.2 | ) | |||||||||||||||
Fuel gallons consumed (thousands) | 97,395 | 96,542 | 0.9 | ||||||||||||||||
Average fuel cost per gallon | $ | 2.18 | $ | 2.27 | (4.0 | ) | |||||||||||||
Percent of sales through website during period | 93.5 | % | 93.9 | % | (0.4 | ) | |||||||||||||
Other data: | |||||||||||||||||||
Rental car days sold | 1,012,558 | 802,942 | 26.1 | ||||||||||||||||
Hotel room nights sold | 219,206 | 202,468 | 8.3 |
(1) Except load factor and percent of sales through website, which is percentage point change.
(2) Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis.
(3) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.
Summary Balance Sheet
Unaudited (millions) | 6/30/2019 | 12/31/2018 | Percent Change |
||||||||||||
(unaudited) | |||||||||||||||
Unrestricted cash | |||||||||||||||
Cash and cash equivalents | $ | 453.9 | $ | 81.5 | NM | ||||||||||
Short-term investments | 216.7 | 314.5 | (31.1 | ) | |||||||||||
Long-term investments | 24.7 | 51.5 | (52.0 | ) | |||||||||||
Total unrestricted cash and investments | 695.3 | 447.5 | 55.4 | ||||||||||||
Debt | |||||||||||||||
Current maturities of long-term debt and capital lease obligations, net of related costs(1) | 160.5 | 152.3 | 5.4 | ||||||||||||
Long-term debt and capital lease obligations, net of current maturities and related costs | 1,338.7 | 1,119.4 | 19.6 | ||||||||||||
Total debt | 1,499.2 | 1,271.7 | 17.9 | ||||||||||||
Total Allegiant Travel Company shareholders’ equity | 804.5 | 690.3 | 16.5 |
(1) As of
Summary Cash Flow
Six Months Ended June 30, | Percent | ||||||||||||||||||
Unaudited (millions) | 2019 | 2018 | Change | ||||||||||||||||
Cash provided by operating activities | $ | 277.5 | $ | 283.2 | (2.0 | )% | |||||||||||||
Purchase of property and equipment, including capitalized interest | 234.5 | 187.5 | 25.1 | ||||||||||||||||
Cash dividends paid to shareholders | 22.8 | 22.6 | 0.9 | ||||||||||||||||
Proceeds from the issuance of long-term debt | 770.4 | 10.8 | NM | ||||||||||||||||
Principal payments on long-term debt & capital lease obligations | 522.6 | 142.4 | 267.0 |
NM - Not meaningful
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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||||||||
Net income | $ | 70,543 | $ | 50,016 | $ | 127,667 | $ | 105,209 | |||||||||||||||||||||||
Less net income allocated to participating securities | (997 | ) | (659 | ) | (1,791 | ) | (1,427 | ) | |||||||||||||||||||||||
Net income attributable to common stock | $ | 69,546 | $ | 49,357 | $ | 125,876 | $ | 103,782 | |||||||||||||||||||||||
Earnings per share, basic | $ | 4.33 | $ | 3.10 | $ | 7.85 | $ | 6.53 | |||||||||||||||||||||||
Weighted-average shares outstanding | 16,063 | 15,939 | 16,037 | 15,898 | |||||||||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||||||||
Net income | $ | 70,543 | $ | 50,016 | $ | 127,667 | $ | 105,209 | |||||||||||||||||||||||
Less net income allocated to participating securities | (996 | ) | (658 | ) | (1,790 | ) | (1,425 | ) | |||||||||||||||||||||||
Net income attributable to common stock | $ | 69,547 | $ | 49,358 | $ | 125,877 | $ | 103,784 | |||||||||||||||||||||||
Earnings per share, diluted | $ | 4.33 | $ | 3.10 | $ | 7.84 | $ | 6.52 | |||||||||||||||||||||||
Weighted-average shares outstanding | 16,063 | 15,939 | 16,037 | 15,898 | |||||||||||||||||||||||||||
Dilutive effect of stock options and restricted stock | 39 | 44 | 39 | 63 | |||||||||||||||||||||||||||
Adjusted weighted-average shares outstanding under treasury stock method | 16,102 | 15,983 | 16,076 | 15,961 | |||||||||||||||||||||||||||
Participating securities excluded under two-class method | (33 | ) | (38 | ) | (26 | ) | (47 | ) | |||||||||||||||||||||||
Adjusted weighted-average shares outstanding under two-class method | 16,069 | 15,945 | 16,050 | 15,914 |
Appendix A
Non-GAAP Presentations
Three and Six Months Ended
(Unaudited)
Airline operating revenue, airline operating income, airline net income, airline operating expense, and airline diluted earnings per share all eliminate the effects of non-airline operating activity, which is not reflective of the airline operating performance. Airline earnings before interest, taxes, depreciation and amortization ("Airline EBITDA") eliminates the effects of non-airline operating activity and other items. As such, all of these are non-GAAP financial measures. 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.
The
Reconciliation of Non-GAAP Financial Measures
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
Reconciliation of airline operating CASM excluding fuel (millions) | |||||||||||||||||||||||||||||||
Consolidated operating expense (GAAP) | $ | 383.7 | $ | 362.6 | $ | 744.2 | $ | 708.0 | |||||||||||||||||||||||
Less aircraft fuel expense | 120.0 | 122.5 | 219.7 | 228.5 | |||||||||||||||||||||||||||
Less non-airline operating expense | 12.4 | 4.1 | 23.1 | 7.1 | |||||||||||||||||||||||||||
Total airline operating expense less fuel expense(1) | 251.3 | 236.0 | 501.4 | 472.4 | |||||||||||||||||||||||||||
System available seat miles (millions) | 4,447.1 | 3,922.3 | 8,357.3 | 7,650.9 | |||||||||||||||||||||||||||
Cost per available seat mile (cents) as reported | 8.63 | 9.24 | 8.90 | 9.25 | |||||||||||||||||||||||||||
Cost per available seat mile excluding fuel and non-airline expense (cents)(1) | 5.65 | 6.02 | 6.00 | 6.17 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
Reconciliation of airline operating revenue, operating income, net income, and EBITDA (millions) | |||||||||||||||||||||||||||||||
Operating revenue as reported (GAAP) | $ | 491.8 | $ | 436.8 | $ | 943.4 | $ | 862.2 | |||||||||||||||||||||||
Non-airline operating revenue(1) | 5.0 | 2.2 | 8.3 | 3.3 | |||||||||||||||||||||||||||
Airline operating revenue(1) | 486.8 | 434.6 | 935.1 | 858.9 | |||||||||||||||||||||||||||
Operating income as reported (GAAP) | 108.1 | 74.2 | 199.2 | 154.2 | |||||||||||||||||||||||||||
Non-airline operating loss(1) | (7.4 | ) | (1.9 | ) | (14.8 | ) | (3.8 | ) | |||||||||||||||||||||||
Airline operating income(1) | 115.5 | 76.1 | 214.0 | 158.0 | |||||||||||||||||||||||||||
Airline operating margin | 23.7 | % | 17.5 | % | 22.9 | % | 18.4 | % | |||||||||||||||||||||||
Net income as reported (GAAP) | 70.5 | 50.0 | 127.7 | 105.2 | |||||||||||||||||||||||||||
Non-airline net loss(1) | (7.9 | ) | (1.8 | ) | (15.5 | ) | (3.8 | ) | |||||||||||||||||||||||
Airline net income(1) | 78.4 | 51.8 | 143.2 | 109.0 | |||||||||||||||||||||||||||
Airline operating income(1) | 115.5 | 76.1 | 214.0 | 158.0 | |||||||||||||||||||||||||||
Add: Airline depreciation and amortization(1) | 36.9 | 29.4 | 72.1 | 57.2 | |||||||||||||||||||||||||||
Airline EBITDA(1) | 152.4 | 105.5 | 286.1 | 215.2 | |||||||||||||||||||||||||||
Average number of aircraft in service (#) | 85.0 | 92.0 | 82.3 | 90.8 | |||||||||||||||||||||||||||
Airline EBITDA per aircraft | 1.8 | 1.1 | 3.5 | 2.4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
Reconciliation of airline diluted earnings per share | |||||||||||||||||||||||||||||||
Net income as reported (GAAP) | $ | 70.5 | $ | 50.0 | $ | 127.7 | $ | 105.2 | |||||||||||||||||||||||
Airline net income(1) | 78.4 | 51.8 | 143.2 | 109.0 | |||||||||||||||||||||||||||
Diluted shares used for computation (thousands) | 16,069 | 15,945 | 16,050 | 15,914 | |||||||||||||||||||||||||||
Diluted earnings per share as reported (per share) (GAAP) | $ | 4.33 | $ | 3.10 | $ | 7.84 | $ | 6.52 | |||||||||||||||||||||||
Airline diluted earnings per share(1) | $ | 4.81 | $ | 3.21 | $ | 8.80 | $ | 6.75 |
(1) Denotes non-GAAP figure.
Source: Allegiant Travel Company