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Allegiant Travel Company Second Quarter 2021 Financial Results
Second quarter 2021 GAAP fully diluted earnings per share of $5.49
Second quarter 2021 consolidated fully diluted earnings per share, excluding COVID related special charges and net benefit from the payroll support programs of $3.46(1)(2)

LAS VEGAS, July 28, 2021 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the second quarter 2021, as well as comparisons to the prior years:

Consolidated

Three Months Ended June 30,

Percent Change

(unaudited) (in millions, except per share amounts)

2021

2020

2019

YoY

Yo2Y

Total operating revenue

$

472.4

$

133.3

$

491.8

254.3

(3.9)

Total operating expense

333.6

246.6

383.7

35.3

(13.1)

Operating income (loss)

138.9

(113.3)

108.1

222.6

28.4

Income (loss) before income taxes

122.6

(146.4)

91.8

183.7

33.5

Net income (loss)

95.0

(93.1)

70.5

202.1

34.7

Diluted earnings (loss) per share

$

5.49

$

(5.85)

$

4.33

193.8

26.8


Six Months Ended June 30,

Percent Change

(unaudited) (in millions, except per share amounts)

2021

2020

2019

YoY

Yo2Y

Total operating revenue

$

751.6

$

542.5

$

943.4

38.5

(20.3)

Total operating expense

588.1

766.8

744.2

(23.3)

(21.0)

Operating income (loss)

163.5

(224.3)

199.2

172.9

(17.9)

Income (loss) before income taxes

131.2

(277.1)

165.7

147.4

(20.8)

Net income (loss)

101.9

(126.1)

127.7

180.8

(20.2)

Diluted earnings (loss) per share

$

6.04

$

(7.93)

$

7.84

176.2

(23.0)

Consolidated - adjusted

Three Months Ended June 30,

Percent Change

(unaudited) (in millions, except per share amounts)

2021

2020

2019

YoY

Yo2Y

Adjusted operating expense (1) (2)

$

378.6

$

239.9

$

383.7

57.8

(1.3)

Adjusted operating income (loss) (1) (2)

93.9

(106.6)

108.1

188.1

(13.1)

Adjusted income (loss) before income taxes (1) (2)

77.6

(119.9)

91.8

164.7

(15.5)

Adjusted net income (loss) (1) (2)

60.0

(94.7)

70.5

163.4

(14.9)

Adjusted diluted earnings (loss) per share (1) (2)

$

3.46

$

(5.96)

$

4.33

158.1

(20.1)


Six Months Ended June 30,

Percent Change

(unaudited) (in millions, except per share amounts)

2021

2020

2019

YoY

Yo2Y

Adjusted operating expense (1) (2)

$

716.7

$

594.0

$

744.2

20.7

(3.7)

Adjusted operating income (loss) (1) (2)

34.9

(51.5)

199.2

167.8

(82.5)

Adjusted income (loss) before income taxes (1) (2)

2.6

(77.7)

165.7

103.3

(98.4)

Adjusted net income (loss) (1) (2)

2.0

(61.4)

127.7

103.3

(98.4)

Adjusted diluted earnings (loss) per share (1) (2)

$

0.12

$

(3.87)

$

7.84

103.1

(98.5)

(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs (PSPs), and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs

(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information

"The second quarter marked the return of leisure demand to pre-pandemic levels," stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. "Earnings per share came in at $5.49 on a year over two-year revenue decline of just 3.9 percent, with total revenue in June exceeding 2019 levels. We made significant progress towards achieving pre-pandemic unit revenues with TRASM of 10.36 cents (on a load factor of 70.8 percent), up 50 percent from the first quarter. The revenue team did an outstanding job optimizing loads and unit revenues during the quarter. This strong revenue performance, coupled with continued cost discipline as evidenced by our adjusted CASM, excluding fuel (3), of 5.86 cents, led to our adjusted operating margin(1) of 20 percent for the quarter.

"These results suggest we are close if not back to 'normal', where we were in the early days of 2020.  We were the first domestic carrier to grow capacity from 2019 levels. Given the reduced operations of the past year, this ramp up came with challenges - delays in infrastructure preparedness at some of our airports, labor constraints, and severe weather. Our operations team has done a great job reacting and adapting to these headwinds. During the third quarter we will continue our growth - capacity will increase nearly 20 percent, year over two-year.

"Last year at this time I stressed the importance of strengthening our liquidity to both weather the storm and position us favorably for growth post-pandemic. The team has done just that. We currently have $1.2 billion of cash on hand, up 79 percent from a year ago. Our total net debt continues to improve at under $400 million, a 52 percent reduction from a year ago. This strong liquidity leaves us well positioned for future growth. The fleet team has executed agreements to acquire 21 additional aircraft since the beginning of the year. These airplanes will all be placed into service by the end of 2022, thus supporting the remainder of this year as well as most of next year's growth plan.

"The next year will be an exciting one for the company. We are preparing the launch of our new loyalty program in the coming months, Allways Rewards. This program will enable us to further enhance the customer experience. We also recently announced a new partnership with Live Nation venues, Ticketmaster and music festivals - kicking off a multi-year, strategic relationship with the world's premier live entertainment company. This partnership will ultimately unlock another layer of leisure offerings, further enhancing a one-stop shop for our customer. Finally, we will continue to grow and expand our network, connecting more customers to world-class vacation destinations.

"I cannot thank our 4,000 team members enough for their continued efforts in supporting growth while prioritizing customer safety. Ramping up the operation the past few months has been a challenge, but our team members continue to work hard to support the operation. I could not be more proud of their efforts."

Second Quarter 2021 Results

  • GAAP earnings per share of $5.49
    • Adjusted earnings per share(1) (2) (3) of $3.46
  • Consolidated EBITDA(2) (3) of $183.3 million yielding an EBITDA margin of 38.8 percent
    • Adjusted EBITDA(1) (2) (3) of $138.3 million yielding an adjusted EBITDA margin of 29.3 percent
  • Total June revenue exceeded June of 2019
  • Total operating revenue was $472.4 million, up 69.3 percent from the first quarter and down 3.9 percent when compared to the second quarter of 2019
    • Sustained yield strength throughout the quarter with yield up 7.8 percent year over two-year on scheduled service capacity increases of 4.5 percent
  • Total average fare of $126.82, up 10.8 percent year over two-year
    • Total ancillary average fare $64.25, up 14.6 percent from 2019 driven primarily by bundled air ancillary offerings, rental car rate strength, and increased cobrand activity
  • TRASM of 10.36 cents, down 5.6 percent year over two-year, and up 50.3 percent from the first quarter 2021
  • Load factor of 70.8%, up nearly 16 percentage points from the first quarter
  • Record-breaking quarter for co-brand activity with June new cardholder acquisitions becoming the highest month in the program's history and the highest month for cardholder spend, beating the prior monthly spend record by more than 40 percent
    • May marked the third highest acquisition of new cardholders in program history
  • Adjusted operating expense(1) (2) (3) of $378.6 million, down 1.3 percent from second quarter 2019 on total system capacity increase of 3.3 percent
    • Adjusted Operating CASM, excluding fuel (3) of 5.86 cents, flat when compared to the second quarter of 2019
  • Adjusted operating margin(1) of 19.9 percent
  • Expanded the network by adding 29 new routes with four new cities and complementary service in Phoenix with the addition of Phoenix Sky Harbor International Airport, bringing total routes served to 596 and 134 cities
  • Ranked number two among US airlines within the 2021 Airline Quality Ranking

(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs
(2) Denotes a non-GAAP financial measure
(3) Refer to the Non-GAAP Presentation section within this document for further information

Balance Sheet, Cash and Liquidity

  • Total cash and investments at June 30, 2021 were $1.2 billion, up from $728 million at March 31, 2021
    • Cash from operations of $237 million, including the benefit from the payroll support program and federal income tax refund of $12 million related to prior period tax net operating losses
      • Adjusted cash from operations of $176 million, which excludes the $49.2 million net benefit from the PSPs, and $12 million federal tax refund
    • Debt principal payments of $48 million during the quarter
      • Includes prepayment of debt secured by five aircraft
    • $65 million used for cash capital expenditures
    • Raised $335 million from issuance of 1.6 million shares at a price of $219 per share during the second quarter
  • Second quarter interest expense of $17 million, down 20 percent year over two-year
  • Expect to receive $136 million in federal tax refunds during the second half of the year related to 2020 net operating losses
  • Air traffic liability at June 30, 2021 was $437 million
    • Balance related to future scheduled flights is $305 million
    • Balance related to travel vouchers issued for future use is $132 million, a 26 percent reduction from March 31, 2021

Capital Expenditures

  • Second quarter capital expenditures related to aircraft, engines and induction costs were $46 million and $19 million in other airline capital expenditures
  • Second quarter capital expenditures related to deferred heavy maintenance were $23 million
  • Executed agreements to acquire 21 incremental aircraft year-to-date

Guidance, subject to revision

Previous

Current



Third Quarter 2021 guidance






System ASMs - year over two-year change(1)

16.0 to 20.0%

Scheduled Service  ASMs - year over two-year change(1)

16.0 to 20.0%




Total operating revenue - year over two-year change (1)

Up 3.5% to 7.5%




Fuel cost per gallon

$

2.11




Full year 2021 guidance






CAPEX




Aircraft, engines and induction costs (millions)

$115 to $125

$115 to $125

Capitalized Airbus deferred heavy maintenance (millions)

$50 to $60

$50 to $60

Other capital expenditures (millions)

$40 to $50

$40 to $50




Interest expense

$65 to $70

$65 to $70

Recurring principal payments(2)

$170 to $180

$170 to $180

(1) Year over two-year percentage changes compare 2021 to 2019

(2) Excludes $111 million of principal repayments related to the maturity of our revolving credit facility and the refinancing of three A320 aircraft during the first quarter 2021

Aircraft Fleet Plan by End of Period

Aircraft - (seats per AC)

2Q21

3Q21

YE21

A319 (156 seats)

35

35

35

A320 (177 seats)

23

23

22

A320 (186 seats)

45

49

51

Total

103

107

108

The table above is provided based on the company's current plans and is subject to change

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, July 28 to discuss its second quarter 2021 financial results. A live broadcast of the conference call will be available via the Company's Investor Relations website homepage at http://ir.allegiantair.com. The webcast will also be archived in the "Events & Presentations" section of the website.

Allegiant Travel Company 

Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most. Since 1999, Allegiant Air has linked travelers in small-to-medium cities to world-class vacation destinations with all-nonstop flights and industry-low average fares. Today, Allegiant's all-Airbus fleet serves communities across the nation, with base airfares less than half the cost of the average domestic roundtrip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF 

Media Inquiries: mediarelations@allegiantair.com

Investor Inquiries: ir@allegiantair.com

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding future airline operations, revenue and expenses, available seat mile growth, expected capital expenditures, the timing of aircraft acquisitions and retirements, the number of contracted aircraft to be placed in service in the future, as well as other information concerning future results of operations, business strategies, financing plans, industry environment and potential growth opportunities. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "guidance," "anticipate," "intend," "plan," "estimate", "project", "hope" or similar expressions.

Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at www.sec.gov. These risk factors include, without limitation, the impact and duration of the COVID-19 pandemic on airline travel and the economy, liquidity issues resulting from the effect of the COVID-19 pandemic on our business, restrictions imposed on us as a result of accepting grants and loans under the payroll support programs, an accident involving, or problems with, our aircraft, public perception of our safety, our reliance on our automated systems, our reliance on third parties to deliver aircraft under contract to us on a timely basis, risk of breach of security of personal data, volatility of fuel costs, labor issues and costs, the ability to obtain regulatory approvals as needed , the effect of economic conditions on leisure travel, debt covenants and balances, the ability to finance aircraft to be acquired, terrorist attacks, risks inherent to airlines, our competitive environment, our reliance on third parties who provide facilities or services to us, the possible loss of key personnel, economic and other conditions in markets in which we operate, the ability to successfully develop and finance a resort in Southwest Florida, governmental regulation, increases in maintenance costs and cyclical and seasonal fluctuations in our operating results.

Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.

Detailed financial information follows:

Allegiant Travel Company

Consolidated Statements of Income        

(in thousands, except per share amounts)

(Unaudited)


Three Months Ended June 30,

Percent Change

2021

2020

2019

YoY

Yo2Y

OPERATING REVENUES:








Passenger

$

443,747

$

116,520

$

454,779

280.8

(2.4)

Third party products

23,001

8,443

18,208

172.4

26.3

Fixed fee contracts

5,134

3,237

12,487

58.6

(58.9)

Other

551

5,147

6,285

(89.3)

(91.2)

   Total operating revenues

472,433

133,347

491,759

254.3

(3.9)

OPERATING EXPENSES:








Salary and benefits

121,906

94,790

113,592

28.6

7.3

Aircraft fuel

109,456

27,358

119,987

300.1

(8.8)

Station operations

57,210

27,405

45,870

108.8

24.7

Maintenance and repairs

22,597

13,032

20,877

73.4

8.2

Depreciation and amortization

44,522

43,296

38,494

2.8

15.7

Sales and marketing

17,632

8,909

20,540

97.9

(14.2)

Aircraft lease rental

5,117

1,427

—

258.6

—

Other

15,501

23,752

24,294

(34.7)

(36.2)

Payroll Support Programs grant recognition

(61,213)

(74,539)

—

17.9

—

Special charges

854

81,169

—

(98.9)

—

   Total operating expenses

333,582

246,599

383,654

35.3

(13.1)

OPERATING INCOME (LOSS)

138,851

(113,252)

108,105

222.6

28.4

OTHER (INCOME) EXPENSES:








Interest income

(500)

(1,417)

(3,502)

64.7

85.7

Interest expense

16,720

14,053

20,942

19.0

(20.2)

Capitalized interest

—

—

(1,038)

—

100.0

Loss on extinguishment of debt

71

—

—

—

—

Special charges

—

19,830

—

(100.0)

—

Other, net

(11)

698

(86)

(101.6)

87.2

   Total other expenses

16,280

33,164

16,316

(50.9)

(0.2)

INCOME (LOSS) BEFORE INCOME TAXES

122,571

(146,416)

91,789

183.7

33.5

INCOME TAX PROVISION (BENEFIT)

27,544

(53,313)

21,246

151.7

29.6

NET INCOME (LOSS)

$

95,027

$

(93,103)

$

70,543

202.1

34.7

Earnings (loss) per share to common shareholders:








Basic

$5.49

($5.85)

$4.33

193.8

26.8

Diluted

$5.49

($5.85)

$4.33

193.8

26.8

Weighted average shares outstanding used in computing earnings per share attributable to common shareholders(1):








Basic

17,064

15,902

16,063

7.3

6.2

Diluted

17,073

15,902

16,069

7.4

6.2

(1) The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share calculations for the periods presented reflect the two-class method mandated by ASC Topic 260, "Earnings Per Share." The two-class method adjusts both the net income and the shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented.

 

Allegiant Travel Company

Operating Statistics

(Unaudited) 


Three Months Ended June 30,

Percent Change(1)

2021

2020

2019

YoY

Yo2Y

OPERATING STATISTICS








Total system statistics:








Passengers

3,699,217

1,273,258

4,169,536

190.5

(11.3)

Available seat miles (ASMs) (thousands)

4,594,542

2,220,755

4,447,066

106.9

3.3

Operating expense per ASM (CASM) (cents)

7.26

11.10

8.63

(34.6)

(15.9)

Adjusted operating expense per ASM (CASM) (cents)(2)

8.24

10.80

8.63

(23.7)

(4.5)

Fuel expense per ASM (cents)

2.38

1.23

2.70

93.5

(11.9)

Operating CASM, excluding fuel (cents)

4.88

9.87

5.93

(50.6)

(17.7)

Adjusted operating CASM, excluding fuel (cents)(2)

5.86

9.57

5.93

(38.8)

(1.2)

ASMs per gallon of fuel

84.8

90.0

82.3

(5.8)

3.0

Departures

31,507

15,089

30,547

108.8

3.1

Block hours

69,809

32,989

68,332

111.6

2.2

Average stage length (miles)

838

850

853

(1.4)

(1.8)

Average number of operating aircraft during period

101.8

90.7

85.0

12.2

19.8

Average block hours per aircraft per day

7.5

3.8

8.8

97.4

(14.8)

Full-time equivalent employees at end of period

4,104

4,349

4,179

(5.6)

(1.8)

Fuel gallons consumed (thousands)

54,188

24,664

54,064

119.7

0.2

Average fuel cost per gallon

$

2.02

$

1.11

$

2.22

82.0

(9.0)

Scheduled service statistics:








Passengers

3,680,254

1,266,077

4,131,855

190.7

(10.9)

Revenue passenger miles (RPMs) (thousands)

3,188,215

1,107,534

3,603,076

187.9

(11.5)

Available seat miles (ASMs) (thousands)

4,505,786

2,174,683

4,311,182

107.2

4.5

Load factor

70.8

%

50.9

%

83.6

%

19.9

(12.8)

Departures

30,763

14,683

29,567

109.5

4.0

Block hours

68,334

32,248

66,135

111.9

3.3

Yield (cents)

7.22

4.63

6.70

56.2

7.8

Total passenger revenue per ASM (TRASM) (cents)(3)

10.36

5.75

10.97

80.2

(5.6)

Average fare - scheduled service(4)

$

62.58

$

40.46

$

58.39

54.7

7.2

Average fare - air-related charges(4)

$

58.00

$

51.57

$

51.68

12.5

12.2

Average fare - third party products

$

6.25

$

6.67

$

4.40

(6.3)

42.0

Average fare - total

$

126.82

$

98.70

$

114.47

28.5

10.8

Average stage length (miles)

842

855

853

(1.5)

(1.3)

Fuel gallons consumed (thousands)

53,022

24,124

52,327

119.8

1.3

Average fuel cost per gallon

$

2.01

$

1.08

$

2.22

86.1

(9.5)

Percent of sales through website during period

94.3

%

93.8

%

93.5

%

0.5

0.8

Other data:








Rental car days sold

404,760

135,536

540,960

198.6

(25.2)

Hotel room nights sold

72,701

12,772

114,191

469.2

(36.3)

(1) Except load factor and percent of sales through website, which is percentage point change.

(2) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs

(3) Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis.

(4) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.

 

Allegiant Travel Company

Consolidated Statements of Income        

(in thousands, except per share amounts)

(Unaudited)


Six Months Ended June 30, 2021

Percent Change

2021

2020

2019

YoY

Yo2Y

OPERATING REVENUES:








Passenger

$

700,441

$

495,431

$

874,755

41.4

(19.9)

Third party products

36,622

24,419

35,350

50.0

3.6

Fixed fee contracts

12,827

12,156

23,061

5.5

(44.4)

Other

1,667

10,522

10,215

(84.2)

(83.7)

   Total operating revenues

751,557

542,528

943,381

38.5

(20.3)

OPERATING EXPENSES:








Salary and benefits

239,856

207,436

233,003

15.6

2.9

Aircraft fuel

192,305

116,171

219,670

65.5

(12.5)

Station operations

100,303

68,405

84,835

46.6

18.2

Maintenance and repairs

45,968

34,827

43,701

32.0

5.2

Depreciation and amortization

87,696

86,995

74,676

0.8

17.4

Sales and marketing

29,241

27,364

41,466

6.9

(29.5)

Aircraft lease rental

9,837

2,389

—

311.8

—

Other

33,276

50,468

46,849

(34.1)

(29.0)

Payroll Support Programs grant recognition

(152,971)

(74,539)

—

(105.2)

—

Special charges

2,592

247,267

—

(99.0)

—

   Total operating expenses

588,103

766,783

744,200

(23.3)

(21.0)

OPERATING INCOME (LOSS)

163,454

(224,255)

199,181

172.9

(17.9)

OTHER (INCOME) EXPENSES:








Interest income

(963)

(3,728)

(6,703)

74.2

85.6

Interest expense

33,508

32,206

39,025

4.0

(14.1)

Capitalized interest

—

(4,067)

(2,541)

100.0

100.0

Loss on extinguishment of debt

71

1,222

3,677

(94.2)

(98.1)

Special charges

—

26,632

—

(100.0)

—

Other, net

(404)

623

15

(164.8)

(2,793.3)

   Total other expenses

32,212

52,888

33,473

(39.1)

(3.8)

INCOME (LOSS) BEFORE INCOME TAXES

131,242

(277,143)

165,708

147.4

(20.8)

INCOME TAX PROVISION (BENEFIT)

29,346

(151,030)

38,041

119.4

(22.9)

NET INCOME (LOSS)

$

101,896

$

(126,113)

$

127,667

180.8

(20.2)

Earnings (loss) per share to common shareholders:








Basic

$6.04

($7.93)

$7.85

176.2

(23.1)

Diluted

$6.04

($7.93)

$7.84

176.2

(23.0)

Weighted average shares outstanding used in computing earnings per share attributable to common shareholders(1):








Basic

16,618

15,927

16,037

4.3

3.6

Diluted

16,632

15,927

16,050

4.4

3.6

(1) The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share calculations for the periods presented reflect the two-class method mandated by ASC Topic 260, "Earnings Per Share." The two-class method adjusts both the net income and the shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented.

 

Allegiant Travel Company

Operating Statistics

(Unaudited) 


Six Months Ended June 30, 2021

Percent Change(1)

2021

2020

2019

YoY

Yo2Y

OPERATING STATISTICS








Total system statistics:








Passengers

6,033,720

4,448,708

7,619,814

35.6

(20.8)

Available seat miles (ASMs) (thousands)

8,608,531

6,288,427

8,357,304

36.9

3.0

Operating expense per ASM (CASM) (cents)

6.83

12.19

8.90

(44.0)

(23.3)

Adjusted operating expense per ASM (CASM) (cents)(2)

8.33

9.45

8.90

(11.9)

(6.4)

Fuel expense per ASM (cents)

2.23

1.85

2.63

20.5

(15.2)

Operating CASM, excluding fuel (cents)

4.60

10.35

6.27

(55.6)

(26.6)

Adjusted operating CASM, excluding fuel (cents)(2)

6.09

7.60

6.27

(19.9)

(2.9)

ASMs per gallon of fuel

87.3

87.2

83.1

0.1

5.0

Departures

57,191

41,401

55,747

38.1

2.6

Block hours

130,183

95,112

128,151

36.9

1.6

Average stage length (miles)

865

879

876

(1.6)

(1.3)

Average number of aircraft during period

99.5

92.1

82.3

8.0

20.9

Average block hours per aircraft per day

7.2

5.5

8.6

30.9

(16.3)

Full-time equivalent employees at end of period

4,104

4,349

4,179

(5.6)

(1.8)

Fuel gallons consumed (thousands)

98,614

72,143

100,537

36.7

(1.9)

Average fuel cost per gallon

$

1.95

$

1.61

$

2.18

21.1

(10.6)










Scheduled service statistics:








Passengers

6,003,556

4,420,683

7,553,393

35.8

(20.5)

Revenue passenger miles (RPMs) (thousands)

5,354,632

4,033,017

6,794,122

32.8

(21.2)

Available seat miles (ASMs) (thousands)

8,426,876

6,138,692

8,113,315

37.3

3.9

Load factor

63.5

%

65.7

%

83.7

%

(2.2)

(24.1)

Departures

55,710

40,167

53,911

38.7

3.3

Block hours

127,185

92,594

124,098

37.4

2.5

Yield (cents)

6.83

6.28

7.06

8.8

(3.3)

Total passenger revenue per ASM (TRASM) (cents)(3)

8.75

8.47

11.22

—

(22.0)

Average fare - scheduled service(4)

$

60.95

$

57.27

$

63.49

6.4

(4.0)

Average fare - air-related charges(4)

$

55.72

$

54.80

$

52.32

1.7

6.5

Average fare - third party products

$

6.10

$

5.52

$

4.68

10.5

30.3

Average fare - total

$

122.77

$

117.59

$

120.49

4.4

1.9

Average stage length (miles)

869

883

878

(1.6)

(1.0)

Fuel gallons consumed (thousands)

96,329

70,229

97,395

37.2

(1.1)

Average fuel cost per gallon

$

1.92

$

1.60

$

2.18

20.0

(11.9)

Percent of sales through website during period

93.8

%

93.7

%

93.5

%

0.1

0.3

Other data:










Rental car days sold

680,344

616,582

1,012,558

10.3

(32.8)

Hotel room nights sold

128,909

104,776

219,206

23.0

(41.2)

(1) Except load factor and percent of sales through website, which is percentage point change.

(2) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs

(3) Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis.

(4) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.

 

Summary Balance Sheet

Unaudited (millions)

June 30, 2021
(unaudited)

December 31,
2020

Percent
Change

Unrestricted cash and investments




Cash and cash equivalents

$

418.4

$

152.8

173.8

Short-term investments

767.4

532.5

44.1

Total unrestricted cash and investments

1,185.8

685.3

73.0

Debt




Current maturities of long-term debt and finance lease obligations,
net of related costs

144.4

217.2

(33.5)

Long-term debt and finance lease obligations, net of current
maturities and related costs

1,441.1

1,441.8

—

Total debt

1,585.5

1,659.0

(4.4)

Debt, net of liquidity

399.7

973.7

(59.0)

Total Allegiant Travel Company shareholders' equity

1,147.1

699.4

64.0

 

Summary Cash Flow


Six Months Ended June 30,

Percent

Unaudited (millions)

2021

2020

Change

Cash provided by operating activities

$

405.0

$

276.7

46.4

Changes in air traffic liability

129.2

104.8

23.3

Changes in working capital, ex air traffic liability

65.4

(134.1)

148.8

Purchase of property and equipment

134.5

170.7

(21.2)

Cash dividends paid to shareholders

—

11.4

(100.0)

Proceeds from the issuance of long-term debt

106.7

175.7

(39.3)

Principal payments on long-term debt & finance lease obligations

199.6

98.2

103.3

 

EPS Calculation

The following table sets forth the computation of net income (loss) per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in table are in thousands):


Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Basic:






Net income (loss)

$

95,027

$

(93,103)

$

101,896

$

(126,113)

Less income allocated to participating securities

(1,285)

—

(1,451)

(236)

Net income (loss) attributable to common stock

$

93,742

$

(93,103)

$

100,445

$

(126,349)

Earnings (loss) per share, basic

$

5.49

$

(5.85)

$

6.04

$

(7.93)

Weighted-average shares outstanding

17,064

15,902

16,618

15,927

Diluted:






Net income (loss)

$

95,027

$

(93,103)

$

101,896

$

(126,113)

Less income allocated to participating securities

(1,284)

—

(1,449)

(236)

Net income (loss) attributable to common stock

$

93,743

$

(93,103)

$

100,447

$

(126,349)

Earnings (loss) per share, diluted

$

5.49

$

(5.85)

$

6.04

$

(7.93)

Weighted-average shares outstanding (1)

17,064

15,902

16,618

15,927

(1) Dilutive effect of common stock equivalents excluded from the diluted per share calculation is not material.

 

Appendix A
Non-GAAP Presentation
Three and Six Months Ended June 30, 2021 and 2020
(Unaudited)

Adjusted operating income (loss), adjusted income (loss) before income taxes, adjusted net income (loss) and adjusted diluted earnings (loss) per share, all eliminate the effect of special expenses related directly to COVID 19, as well as the net benefit related to the payroll support grants from the U.S. Treasury, which are not reflective of our ongoing operating performance. As such, all of these are non-GAAP financial measures.

EBITDA, as presented in this press release, and the various adjusted metrics disclosed, are supplemental measures of our performance that are not required by, or presented in accordance with, accounting principles generally accepted in the United States ("GAAP"). They are not measurements of our financial performance under GAAP and should not be considered in isolation or as an alternative to net income or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity.

We define "EBITDA" as earnings before interest, taxes, depreciation and amortization. "Adjusted EBITDA" is EBITDA adjusted to eliminate the effect of special charges and the payroll support grants. We caution investors that amounts presented in accordance with these definitions may not be comparable to similar measures disclosed by other issuers, because not all issuers and analysts calculate EBITDA and Adjusted EBITDA in the same manner.

We use EBITDA and Adjusted EBITDA to evaluate our operating performance and liquidity and these are among the primary measures used by management for planning and forecasting of future periods. We believe the presentation of these measures is relevant and useful for investors because they allow investors to view results in a manner similar to the method used by management and makes it easier to compare our results with other companies that have different financing and capital structures. EBITDA has important limitations as an analytical tool. These limitations include the following:

  • EBITDA does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments to purchase capital equipment;
  • EBITDA does not reflect interest expense or the cash requirements necessary to service principal or interest payments on our debt;
  • although depreciation and amortization are non-cash charges, the assets that we currently depreciate and amortize will likely have to be replaced in the future, and EBITDA does not reflect the cash required to fund such replacements; and
  • other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure.

Presented below is a quantitative reconciliation of EBITDA to the most directly comparable GAAP financial performance measure, which we believe is net income (loss). We believe the presentation of EBITDA and the various adjusted measures are relevant and useful for investors because they allow them to better compare our results to other airlines.

In addition to EBITDA and Adjusted EBITDA as defined above, we have included a separate EBITDA as defined by certain credit agreements. This measurement of EBITDA adjusts for losses on impairment, Sunseeker net loss, stock compensation expense, amortization of debt issuance costs, (gain)/loss on disposal of assets, tax provision - in excess of cash paid, special non-recurring items, and other items.

The SEC has adopted rules (Regulation G) regulating the use of non-GAAP financial measures. Because of our use of non-GAAP financial measures in this press release to supplement our consolidated financial statements presented on a GAAP basis, Regulation G requires us to include in this press release a presentation of the most directly comparable GAAP measure, which is operating revenue, operating income (loss), net income (loss), operating expenses, and diluted earnings (loss) per share and a reconciliation of the non-GAAP measures to the most comparable GAAP measure. Our utilization of non-GAAP measurements is not meant to be considered in isolation or as a substitute for operating income (loss), net income (loss) or other measures of financial performance prepared in accordance with GAAP. Our use of these non-GAAP measures may not be comparable to similarly titled measures employed by other companies in the airline and travel industry. The reconciliation of each of these measures to the most comparable GAAP measure for the periods is indicated below.

Reconciliation of Non-GAAP Financial Measures


Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Reconciliation of adjusted operating income (loss)
(millions)






Operating income (loss) as reported (GAAP)

$

138.9

$

(113.3)

$

163.5

$

(224.3)








Net benefit from PSPs (4)

(55.3)

(74.5)

(140.6)

(74.5)

Operating special charges

0.9

81.2

2.6

247.3

Profit sharing (5)

9.4

—

9.4

—

Adjusted operating income (loss) (1)

93.9

(106.6)

34.9

(51.5)


Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Reconciliation of adjusted income (loss) before
income taxes (millions)






Income (loss) before income taxes as reported (GAAP)

$

122.6

$

(146.4)

$

131.2

$

(277.1)








Net benefit from PSPs (4)

(55.3)

(74.5)

(140.6)

(74.5)

Special charges (operating & non-operating)

0.9

101.0

2.6

273.9

Profit sharing (5)

9.4

—

9.4

—

Adjusted income (loss) before income taxes (1)

77.6

(119.9)

2.6

(77.7)


Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Reconciliation of adjusted net income (loss)
(millions) and adjusted earnings (loss) per share
(cents)






Adjusted income (loss) before income taxes as
reported (GAAP)

$

77.6

$

(119.9)

$

2.6

$

(77.7)

Provision (benefit) for income taxes as reported
(GAAP)

27.5

(53.3)

29.3

(151.0)

Adjusted provision (benefit) for income taxes (1) (2)

17.6

(25.2)

0.6

(16.3)

Net income (loss) adjusted for special items, payroll
support, and adjustments to tax resulting from payroll
support (1)

60.0

(94.7)

2.0

(61.4)








Diluted shares as reported (GAAP)

17,073

15,902

16,632

15,927

Diluted earnings (loss) per share as reported (GAAP)

5.49

(5.85)

6.04

(7.93)

Adjusted fully diluted earnings (loss) per share (1)

3.46

(5.96)

0.12

(3.87)


Three Months Ended June 30,

Six Months Ended June 30,

2021

2020