Third quarter 2022 GAAP diluted loss per share of
Third quarter 2022 loss per share, excluding recognition bonus and Hurricane Ian special charge, of
Consolidated |
Three Months Ended |
Percent Change |
|||||||
(unaudited) (in millions, except per share amounts) |
2022 |
2021 |
2019 |
YoY |
Yo3Y |
||||
Total operating revenue |
$ 560.3 |
$ 459.5 |
$ 436.5 |
22.0 % |
28.4 % |
||||
Total operating expense |
591.2 |
393.2 |
364.4 |
50.4 |
62.3 |
||||
Operating income (loss) |
(30.9) |
66.3 |
72.1 |
(146.6) |
(142.9) |
||||
Income (loss) before income taxes |
(56.2) |
50.2 |
56.9 |
(211.8) |
(198.7) |
||||
Net income (loss) |
(46.5) |
39.3 |
43.9 |
(218.4) |
(205.8) |
||||
Diluted earnings (loss) per share |
(2.58) |
2.18 |
2.70 |
(218.3) |
(195.6) |
||||
Hurricane Ian special charge |
35.0 |
— |
— |
NM |
NM |
||||
Diluted earnings (loss) per share excluding Hurricane |
$ (0.97) |
$ 2.18 |
$ 2.70 |
(144.5) |
(135.9) |
Nine Months Ended |
Percent Change |
||||||||
(unaudited) (in millions, except per share amounts) |
2022 |
2021 |
2019 |
YoY |
Yo3Y |
||||
Total operating revenue |
$ 1,690.3 |
$ 1,211.0 |
$ 1,379.9 |
39.6 % |
22.5 % |
||||
Total operating expense |
1,687.8 |
981.3 |
1,108.6 |
72.0 |
52.2 |
||||
Operating income |
2.4 |
229.7 |
271.3 |
(98.9) |
(99.1) |
||||
Income (loss) before income taxes |
(60.9) |
181.5 |
222.6 |
(133.6) |
(127.4) |
||||
Net income (loss) |
(50.0) |
141.2 |
171.6 |
(135.4) |
(129.1) |
||||
Diluted earnings (loss) per share |
(2.78) |
8.18 |
10.54 |
(134.0) |
(126.4) |
||||
Hurricane Ian special charge |
35.0 |
— |
— |
NM |
NM |
||||
Diluted earnings (loss) per share excluding Hurricane |
$ (1.18) |
$ 8.18 |
$ 10.54 |
(114.4) |
(111.2) |
(1) |
Recognition bonus awarded despite not meeting internal profit-sharing targets |
(2) |
Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information |
(3) |
Adjusted to exclude estimated loss from property damage to |
"I am proud of the team for the strong operational performance delivered in the third quarter," stated
"Demand continues to outpace 2019. Forward bookings into the upcoming holiday season are tracking at higher loads and significantly higher yields than at this point in 2019. A new trend we are beginning to observe post-COVID is the increase in passengers combining business and leisure trips. A recent survey showed that nearly 15 percent of respondents were traveling for both business and leisure. Much of this travel happened in the traditional off-peak period of September, resulting in September TRASM1 20 percent higher than September of 2019 on 30 percent more capacity and a load factor improvement of 4.7 percentage points. As we move through the remainder of the year, this is a trend we will watch closely.
"Looking ahead to the fourth quarter, we tapered capacity a bit as a result of the impacts from Hurricane Ian. We expect scheduled capacity to increase roughly 15 percent year over three-year. Given the strong demand environment coupled with improvements in operations, we expect to expand margins, delivering a profitable fourth quarter. From a balance sheet perspective, we have total liquidity of roughly
"In closing, I would like to thank our team members for all their hard work this quarter, particularly in regards to Hurricane Ian. The team swiftly came together to reposition aircraft, secure the operation, re-accommodate customers, and secure the property at
(1) |
Total passenger revenue per available seat mile |
Third Quarter 2022 Results
- Loss before income tax of
$56.2 million - Includes a
$35 million special charge related to the estimated loss from property damage atSunseeker Resort caused by Hurricane Ian - insurance recoveries will offset the special charge in subsequent quarters when recoveries can be estimated and are approved for payment - Loss before income tax (1)(2)(3) of
$11.9 million , excluding 2022 employee recognition bonus and Hurricane Ian special charge - Operating income, excluding 2022 recognition bonus and Hurricane Ian special charge (2), of
$13.4 million , yielding an operating margin of 2.4 percent - Consolidated EBITDA, excluding recognition bonus and Hurricane Ian special charge (2), of
$63.2 million , yielding an EBITDA margin of 11.3 percent - Total operating revenue was
$560.3 million , up 28.4 percent year over three-year - Total system capacity up 14.5 percent year over three-year
- Load factor of 88.5 percent, a 2.5 percentage point increase from the third quarter of 2019, and the best third quarter load factor since 2014
- September load factor of 87.1 percent, the highest September since 2011
- TRASM up 13.5 percent for the quarter versus 2019, despite a 17.0 percent increase in scheduled service capacity
- Total average fare of
$125.95 , up 15.5 percent from the third quarter of 2019 - Total average ancillary of
$64.69 , up 17.9 percent from 2019, driven predominantly by strength in bundled ancillary and the Allways Allegiant World Mastercard - Acquired 38 thousand new Allways Allegiant World Mastercard holders during the quarter, the strongest third quarter acquisition since the program's inception
- Operating CASM, excluding fuel, recognition bonus, and Hurricane Ian special charge (1) (3), of
7.61 cents , up 13.9 percent when compared with the third quarter of 2019 - Added 1.7 million members to the Allways Rewards program during its first year
- Allegiant World Mastercard® and Allegiant Allways Rewards® were voted as the No. 1 Best Airline Credit Card and Best Frequent Flyer Program in
USA Today's 10 Best 2022 Loyalty/Rewards Readers' Choice Awards - In October, named to Newsweek's Top 100 Most Loved Workplaces® list for the second consecutive year
- Donated
$100,000 to theAmerican Red Cross for critical disaster relief to communities in the aftermath of Hurricane Ian
(1) |
Recognition bonus awarded despite not meeting internal profit-sharing targets |
(2) |
Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information |
(3) |
Adjusted to exclude estimated loss from property damage to |
Balance Sheet, Cash and Liquidity
- Total available liquidity at
September 30, 2022 of$1.2 billion , which includes$1.0 billion in cash and investments, and$225 million in undrawn revolving credit facilities - Board of directors removed suspension on existing share repurchase authority with
$54 million in authority remaining $221.8 million in cash from operations year-to-date- Total debt at
September 30, 2022 was$2.0 billion - Net debt at
September 30, 2022 was$990.7 million - Secured financing commitments for
$200 million to support 737 MAX pre-delivery deposits - facility is currently undrawn - Issued
$550 million 7.25% senior secured notes due in 2027, with proceeds used to prepay$533 million Term Loan B, previously dueFebruary 2024 - Other Debt principal payments of
$63 million during the quarter - Repaid
$25 million dollar emergency relief loan received under the Coronavirus Aid, Relief and Economic Security (CARES) Act - Scheduled debt principal payments of
$38 million - Air traffic liability at
September 30, 2022 was$429.9 million - Balance related to future scheduled flights is
$367.8 million - Balance related to travel vouchers issued for future use is
$62.1 million
Airline Capital Expenditures
- Third quarter capital expenditures of
$84 million , which includes$46 million for aircraft pre-delivery deposits, aircraft induction costs, and other related costs, and$38 million in other airline capital expenditures - Third quarter deferred heavy maintenance spend was
$12.3 million - Full-year 2022 capital expenditures expected to be roughly
$325 million , which includes$195 million for aircraft purchases and inductions, pre-delivery deposits, and other related costs, and$130 million in other airline capital expenditures - Full-year 2022 deferred heavy maintenance spend expected to be
$55 million , a slight reduction from initial expectations
- Total project spend as of
September 30, 2022 was$437 million with$249 million funded by debt and the remaining$188 million funded by Allegiant - Third quarter capital expenditures were
$88 million relating to theSunseeker Resort Charlotte Harbor and$3 million related to other Sunseeker capital expenditures - Recorded a
$35 million special charge during the quarter related to estimated property damages atSunseeker Resort resulting from Hurricane Ian, most of which was attributable to subcontractor cranes collapsing onto the buildings - Insurance recoveries to offset this charge will be recorded in subsequent quarters when recoveries can be estimated and are approved for payment
Guidance, subject to revision |
Current |
||
Fourth Quarter 2022 guidance |
|||
System ASMs - year over three-year change(1) |
~13.5% |
||
Scheduled Service ASMs - year over three-year change(1) |
~15% |
||
Total operating revenue - year over three-year change(1) |
26.5% to 28.5% |
||
Operating CASM, excluding fuel - year over three-year change(1) (4) |
13% to 15% |
||
Fuel cost per gallon |
|
||
Full year 2022 guidance |
|||
Airline CAPEX |
|||
Aircraft, engines, induction costs, and pre-delivery deposits (millions) |
|
||
Capitalized deferred heavy maintenance (millions) |
|
||
Other airline capital expenditures (millions) |
|
||
Interest expense (millions) (2) (5) |
|
||
Recurring principal payments (millions) |
|
|
|||
Total projected project spend(3) |
|
||
Allegiant contributions through |
|
||
Allegiant contributions remaining to be spent |
|
||
Project spend funded by debt through |
|
||
Remaining project spend expected to be funded by debt |
|
(1) |
Year over three-year percentage changes compare 2022 to 2019 |
(2) |
Includes capitalized interest related to pre-delivery deposits on new aircraft as well as the construction of Sunseeker Resort Charlotte Harbor |
(3) |
Amounts do not contemplate physical damage and remediation to the property resulting from Hurricane Ian |
(4) |
Excludes any hurricane damage and insurance recoveries |
(5) |
Interest expense includes loss on debt extinguishment of |
Aircraft Fleet Plan by End of Period
Aircraft - (seats per AC) |
1Q22 |
2Q22 |
3Q22 |
YE22 |
A319 (156 seats) |
35 |
35 |
35 |
35 |
A320 (177 seats) |
22 |
22 |
22 |
21 |
A320 (186 seats) |
55 |
58 |
59 |
67 |
Total |
112 |
115 |
116 |
123 |
The table above is provided based on the company's current plans and is 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 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, our ability to consummate announced aircraft transactions, the implementation of a joint alliance with Viva Aerobus, the development of our Sunseeker Resort, 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
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 |
Percent Change |
||||||||
2022 |
2021 |
2019 |
YoY |
Yo3Y |
|||||
OPERATING REVENUES: |
|||||||||
Passenger |
$ 516,476 |
$ 423,796 |
$ 391,222 |
21.9 % |
32.0 % |
||||
Third party products |
27,132 |
24,541 |
18,207 |
10.6 |
49.0 |
||||
Fixed fee contracts |
15,881 |
11,117 |
19,797 |
42.9 |
(19.8) |
||||
Other |
836 |
15 |
7,283 |
NM |
(88.5) |
||||
Total operating revenues |
560,325 |
459,469 |
436,509 |
22.0 |
28.4 |
||||
OPERATING EXPENSES: |
|||||||||
Aircraft fuel |
208,175 |
118,370 |
104,583 |
75.9 |
99.1 |
||||
Salaries and benefits |
137,336 |
125,799 |
107,586 |
9.2 |
27.7 |
||||
Station operations |
66,302 |
70,943 |
43,522 |
(6.5) |
52.3 |
||||
Depreciation and amortization |
50,092 |
46,399 |
39,436 |
8.0 |
27.0 |
||||
Maintenance and repairs |
32,177 |
30,451 |
24,768 |
5.7 |
29.9 |
||||
Sales and marketing |
25,815 |
22,047 |
17,591 |
17.1 |
46.8 |
||||
Aircraft lease rental |
5,905 |
5,670 |
— |
4.1 |
— |
||||
Other |
30,292 |
22,379 |
26,907 |
35.4 |
12.6 |
||||
Payroll Support Programs grant recognition |
— |
(49,210) |
— |
(100.0) |
— |
||||
Special charges |
35,142 |
332 |
— |
NM |
— |
||||
Total operating expenses |
591,236 |
393,180 |
364,393 |
50.4 |
62.3 |
||||
OPERATING INCOME (LOSS) |
(30,911) |
66,289 |
72,116 |
(146.6) |
(142.9) |
||||
OTHER (INCOME) EXPENSES: |
|||||||||
Interest expense |
29,230 |
16,595 |
19,506 |
76.1 |
49.9 |
||||
Interest income |
(4,918) |
(375) |
(3,335) |
NM |
47.5 |
||||
Capitalized interest |
(4,296) |
(401) |
(903) |
971.3 |
375.7 |
||||
Loss on extinguishment of debt |
5,012 |
— |
— |
— |
— |
||||
Other, net |
223 |
239 |
(57) |
(6.7) |
491.2 |
||||
Total other expenses |
25,251 |
16,058 |
15,211 |
57.2 |
66.0 |
||||
INCOME (LOSS) BEFORE INCOME TAXES |
(56,162) |
50,231 |
56,905 |
(211.8) |
(198.7) |
||||
INCOME TAX PROVISION (BENEFIT) |
(9,703) |
10,977 |
12,976 |
188.4 |
174.8 |
||||
NET INCOME (LOSS) |
$ (46,459) |
$ 39,254 |
$ 43,929 |
(218.4) |
(205.8) |
||||
Earnings (loss) per share to common shareholders: |
|||||||||
Basic |
( |
|
|
(218.3) |
(195.6) |
||||
Diluted |
( |
|
|
(218.3) |
(195.6) |
||||
Weighted average shares outstanding used in |
|||||||||
Basic |
18,014 |
17,766 |
16,037 |
1.4 |
12.3 |
||||
Diluted |
18,014 |
17,767 |
16,039 |
1.4 |
12.3 |
(1) |
The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share calculations for the periods presented reflect the two-class method mandated by ASC Topic 260, "Earnings Per Share." The two-class method adjusts both the net income and the shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented. |
NM Not meaningful |
Operating Statistics (Unaudited) |
|||||||||
Three Months Ended |
Percent Change(1) |
||||||||
2022 |
2021 |
2019 |
YoY |
Yo3Y |
|||||
OPERATING STATISTICS |
|||||||||
Total system statistics: |
|||||||||
Passengers |
4,359,417 |
3,872,651 |
3,806,369 |
12.6 % |
14.5 % |
||||
Available seat miles (ASMs) (thousands) |
4,450,595 |
4,441,201 |
3,888,400 |
0.2 |
14.5 |
||||
Operating expense per ASM (CASM) (cents)(5) |
13.28 ¢ |
8.85 ¢ |
9.37 ¢ |
50.1 |
41.7 |
||||
Fuel expense per ASM (cents) |
4.68 ¢ |
2.67 ¢ |
2.69 ¢ |
75.3 |
74.0 |
||||
Operating CASM, excluding fuel and Hurricane Ian |
7.81 ¢ |
6.18 ¢ |
6.68 ¢ |
26.4 |
16.9 |
||||
ASMs per gallon of fuel |
82.4 |
82.5 |
80.3 |
(0.1) |
2.6 |
||||
Departures |
29,432 |
30,663 |
27,707 |
(4.0) |
6.2 |
||||
Block hours |
67,277 |
67,398 |
59,678 |
(0.2) |
12.7 |
||||
Average stage length (miles) |
857 |
829 |
823 |
3.4 |
4.1 |
||||
Average number of operating aircraft during period |
115.1 |
105.6 |
87.6 |
9.0 |
31.4 |
||||
Average block hours per aircraft per day |
6.4 |
7.0 |
7.4 |
(8.6) |
(13.5) |
||||
Full-time equivalent employees at end of period |
5,294 |
4,261 |
4,267 |
24.2 |
24.1 |
||||
Fuel gallons consumed (thousands) |
54,044 |
53,850 |
48,443 |
0.4 |
11.6 |
||||
Average fuel cost per gallon |
$ 3.85 |
$ 2.20 |
$ 2.16 |
75.0 |
78.2 |
||||
Scheduled service statistics: |
|||||||||
Passengers |
4,316,163 |
3,834,956 |
3,753,611 |
12.5 |
15.0 |
||||
Revenue passenger miles (RPMs) (thousands) |
3,820,339 |
3,302,519 |
3,170,826 |
15.7 |
20.5 |
||||
Available seat miles (ASMs) (thousands) |
4,315,984 |
4,312,893 |
3,687,473 |
0.1 |
17.0 |
||||
Load factor |
88.5 % |
76.6 % |
86.0 % |
11.9 |
2.5 |
||||
Departures |
28,436 |
29,593 |
26,238 |
(3.9) |
8.4 |
||||
Block hours |
65,182 |
65,296 |
56,576 |
(0.2) |
15.2 |
||||
Average seats per departure |
175.8 |
174.3 |
170.8 |
0.9 |
2.9 |
||||
Yield (cents) (3) |
6.92 ¢ |
6.04 ¢ |
6.42 ¢ |
14.6 |
7.8 |
||||
Total passenger revenue per ASM (TRASM) |
12.60 ¢ |
10.40 ¢ |
11.10 ¢ |
21.2 |
13.5 |
||||
Average fare - scheduled service(4) |
$ 61.26 |
$ 52.05 |
$ 54.20 |
17.7 |
13.0 |
||||
Average fare - air-related charges(4) |
$ 58.40 |
$ 58.45 |
$ 50.03 |
(0.1) |
16.7 |
||||
Average fare - third party products |
$ 6.29 |
$ 6.40 |
$ 4.85 |
(1.7) |
29.7 |
||||
Average fare - total |
$ 125.95 |
$ 116.91 |
$ 109.08 |
7.7 |
15.5 |
||||
Average stage length (miles) |
860 |
834 |
824 |
3.1 |
4.4 |
||||
Fuel gallons consumed (thousands) |
52,491 |
52,249 |
46,038 |
0.5 |
14.0 |
||||
Average fuel cost per gallon |
$ 3.84 |
$ 2.19 |
$ 2.17 |
75.3 |
77.0 |
||||
Percent of sales through website during period |
96.1 % |
95.4 % |
93.1 % |
0.7 |
3.0 |
||||
Other data: |
|||||||||
Rental car days sold |
364,481 |
366,407 |
482,944 |
(0.5) |
(24.5) |
||||
Hotel room nights sold |
71,205 |
66,626 |
99,991 |
6.9 |
(28.8) |
(1) |
Except load factor and percent of sales through website, which is percentage point change |
(2) |
Defined as scheduled service revenue divided by revenue passenger miles |
(3) |
Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis |
(4) |
Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path |
(5) |
2021 operating CASM includes the benefit from the government payroll support programs |
Consolidated Statements of Income (in thousands, except per share amounts) (Unaudited) |
|||||||||
Nine Months Ended |
Percent Change |
||||||||
2022 |
2021 |
2019 |
YoY |
Yo3Y |
|||||
OPERATING REVENUES: |
|||||||||
Passenger |
$ 1,573,041 |
$ 1,124,237 |
$ 1,265,978 |
39.9 % |
24.3 % |
||||
Third party products |
77,399 |
61,164 |
53,557 |
26.5 |
44.5 |
||||
Fixed fee contracts |
38,186 |
23,943 |
42,859 |
59.5 |
(10.9) |
||||
Other |
1,654 |
1,682 |
17,498 |
(1.7) |
(90.5) |
||||
Total operating revenues |
1,690,280 |
1,211,026 |
1,379,892 |
39.6 |
22.5 |
||||
OPERATING EXPENSES: |
|||||||||
Aircraft fuel |
629,600 |
310,674 |
324,253 |
102.7 |
94.2 |
||||
Salaries and benefits |
411,027 |
365,655 |
340,589 |
12.4 |
20.7 |
||||
Station operations |
198,954 |
171,246 |
128,357 |
16.2 |
55.0 |
||||
Depreciation and amortization |
145,618 |
134,095 |
114,112 |
8.6 |
27.6 |
||||
Maintenance and repairs |
91,120 |
76,419 |
68,470 |
19.2 |
33.1 |
||||
Sales and marketing |
75,462 |
51,288 |
59,057 |
47.1 |
27.8 |
||||
Aircraft lease rental |
17,489 |
15,507 |
— |
12.8 |
— |
||||
Other |
83,137 |
55,655 |
73,756 |
49.4 |
12.7 |
||||
Payroll Support Programs grant recognition |
— |
(202,181) |
— |
(100.0) |
— |
||||
Special charges |
35,426 |
2,924 |
— |
NM |
— |
||||
Total operating expenses |
1,687,833 |
981,282 |
1,108,594 |
72.0 |
52.2 |
||||
OPERATING INCOME |
2,447 |
229,744 |
271,298 |
(98.9) |
(99.1) |
||||
OTHER (INCOME) EXPENSES: |
|||||||||
Interest expense |
73,518 |
50,103 |
58,531 |
46.7 |
25.6 |
||||
Interest income |
(7,909) |
(1,338) |
(10,038) |
491.1 |
(21.2) |
||||
Capitalized interest |
(7,594) |
(401) |
(3,444) |
NM |
120.5 |
||||
Loss on extinguishment of debt |
5,012 |
71 |
3,677 |
NM |
36.3 |
||||
Other, net |
318 |
(164) |
(41) |
293.9 |
875.6 |
||||
Total other expenses |
63,345 |
48,271 |
48,685 |
31.2 |
30.1 |
||||
INCOME (LOSS) BEFORE INCOME TAXES |
(60,898) |
181,473 |
222,613 |
(133.6) |
(127.4) |
||||
INCOME TAX PROVISION (BENEFIT) |
(10,916) |
40,323 |
51,017 |
127.1 |
121.4 |
||||
NET INCOME (LOSS) |
$ (49,982) |
$ 141,150 |
$ 171,596 |
(135.4) |
(129.1) |
||||
Earnings (loss) per share to common shareholders: |
|||||||||
Basic |
( |
|
|
(134.0) |
(126.4) |
||||
Diluted |
( |
|
|
(134.0) |
(126.4) |
||||
Weighted average shares outstanding used in |
|||||||||
Basic |
17,985 |
17,005 |
16,037 |
5.8 |
12.1 |
||||
Diluted |
17,985 |
17,015 |
16,045 |
5.7 |
12.1 |
(1) |
The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share calculations for the periods presented reflect the two-class method mandated by ASC Topic 260, "Earnings Per Share." The two-class method adjusts both the net income and the shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented. |
NM Not meaningful |
Operating Statistics (Unaudited) |
|||||||||
Nine Months Ended |
Percent Change(1) |
||||||||
2022 |
2021 |
2019 |
YoY |
Yo3Y |
|||||
OPERATING STATISTICS |
|||||||||
Total system statistics: |
|||||||||
Passengers |
12,834,078 |
9,906,371 |
11,426,183 |
29.6 % |
12.3 % |
||||
Available seat miles (ASMs) (thousands) |
14,060,825 |
13,049,732 |
12,245,704 |
7.7 |
14.8 |
||||
Operating expense per ASM (CASM) (cents)(5) |
12.00 ¢ |
7.52 ¢ |
9.05 ¢ |
59.6 |
32.6 |
||||
Fuel expense per ASM (cents) |
4.48 ¢ |
2.38 ¢ |
2.65 ¢ |
88.2 |
69.1 |
||||
Operating CASM, excluding fuel and Hurricane Ian |
7.27 ¢ |
5.14 ¢ |
6.40 ¢ |
41.4 |
13.6 |
||||
ASMs per gallon of fuel |
84.2 |
85.6 |
82.2 |
(1.6) |
2.4 |
||||
Departures |
90,064 |
87,854 |
83,454 |
2.5 |
7.9 |
||||
Block hours |
212,403 |
197,581 |
187,829 |
7.5 |
13.1 |
||||
Average stage length (miles) |
885 |
852 |
858 |
3.9 |
3.1 |
||||
Average number of aircraft during period |
112.7 |
101.6 |
84.1 |
10.9 |
34.0 |
||||
Average block hours per aircraft per day |
6.9 |
7.1 |
8.2 |
(2.8) |
(15.9) |
||||
Full-time equivalent employees at end of period |
5,294 |
4,261 |
4,267 |
24.2 |
24.1 |
||||
Fuel gallons consumed (thousands) |
167,070 |
152,464 |
148,980 |
9.6 |
12.1 |
||||
Average fuel cost per gallon |
$ 3.77 |
$ 2.04 |
$ 2.18 |
84.8 |
72.9 |
||||
Scheduled service statistics: |
|||||||||
Passengers |
12,736,268 |
9,838,512 |
11,307,004 |
29.5 |
12.6 |
||||
Revenue passenger miles (RPMs) (thousands) |
11,646,212 |
8,657,151 |
9,964,948 |
34.5 |
16.9 |
||||
Available seat miles (ASMs) (thousands) |
13,716,838 |
12,739,769 |
11,800,788 |
7.7 |
16.2 |
||||
Load factor |
84.9 % |
68.0 % |
84.4 % |
16.9 |
0.5 |
||||
Departures |
87,475 |
85,303 |
80,149 |
2.5 |
9.1 |
||||
Block hours |
206,868 |
192,481 |
180,674 |
7.5 |
14.5 |
||||
Average seats per departure |
175.7 |
173.8 |
171.0 |
1.1 |
2.7 |
||||
Yield (cents) (3) |
6.94 ¢ |
6.53 ¢ |
6.85 ¢ |
6.3 |
1.3 |
||||
Total passenger revenue per ASM (TRASM) |
12.03 ¢ |
9.30 ¢ |
11.18 ¢ |
29.4 |
7.6 |
||||
Average fare - scheduled service(4) |
$ 63.44 |
$ 57.48 |
$ 60.40 |
10.4 |
5.0 |
||||
Average fare - air-related charges(4) |
$ 60.07 |
$ 56.79 |
$ 51.56 |
5.8 |
16.5 |
||||
Average fare - third party products |
$ 6.08 |
$ 6.22 |
$ 4.74 |
(2.3) |
28.3 |
||||
Average fare - total |
$ 129.59 |
$ 120.49 |
$ 116.70 |
7.6 |
11.0 |
||||
Average stage length (miles) |
889 |
857 |
861 |
3.7 |
3.3 |
||||
Fuel gallons consumed (thousands) |
162,933 |
148,578 |
143,433 |
9.7 |
13.6 |
||||
Average fuel cost per gallon |
$ 3.77 |
$ 2.03 |
$ 2.17 |
85.7 |
73.7 |
||||
Percent of sales through website during period |
96.2 % |
94.3 % |
93.4 % |
1.9 |
2.8 |
||||
Other data: |
|||||||||
Rental car days sold |
1,161,579 |
1,046,751 |
1,495,502 |
11.0 |
(22.3) |
||||
Hotel room nights sold |
222,334 |
195,535 |
319,197 |
13.7 |
(30.3) |
(1) |
Except load factor and percent of sales through website, which is percentage point change |
(2) |
Defined as scheduled service revenue divided by revenue passenger miles |
(3) |
Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis |
(4) |
Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path |
(5) |
2021 operating CASM includes the benefit from the government payroll support programs |
Summary Balance Sheet
Unaudited (millions) |
|
|
Percent |
||
Unrestricted cash and investments |
|||||
Cash and cash equivalents |
$ 240.5 |
$ 363.4 |
(33.8) % |
||
Short-term investments |
761.4 |
819.5 |
(7.1) |
||
Total unrestricted cash and investments |
1,001.9 |
1,182.9 |
(15.3) |
||
Debt |
|||||
Current maturities of long-term debt and finance lease obligations, |
152.6 |
130.1 |
17.3 |
||
Long-term debt and finance lease obligations, net of current |
1,840.0 |
1,612.5 |
14.1 |
||
Total debt |
1,992.6 |
1,742.6 |
14.3 |
||
Debt, net of unrestricted cash and investments |
990.7 |
559.7 |
77.0 |
||
|
1,189.0 |
1,223.6 |
(2.8) |
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 |
Nine Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Basic: |
|||||||
Net income (loss) |
$ (46,459) |
$ 39,254 |
$ (49,982) |
$ 141,150 |
|||
Less income allocated to participating securities |
— |
(573) |
— |
(2,028) |
|||
Net income (loss) attributable to common stock |
$ (46,459) |
$ 38,681 |
$ (49,982) |
$ 139,122 |
|||
Earnings (loss) per share, basic |
$ (2.58) |
$ 2.18 |
$ (2.78) |
$ 8.18 |
|||
Weighted-average shares outstanding |
18,014 |
17,766 |
17,985 |
17,005 |
|||
Diluted: |
|||||||
Net income (loss) |
$ (46,459) |
$ 39,254 |
$ (49,982) |
$ 141,150 |
|||
Less income allocated to participating securities |
— |
(573) |
— |
(2,027) |
|||
Net income (loss) attributable to common stock |
$ (46,459) |
$ 38,681 |
$ (49,982) |
$ 139,123 |
|||
Earnings (loss) per share, diluted |
$ (2.58) |
$ 2.18 |
$ (2.78) |
$ 8.18 |
|||
Weighted-average shares outstanding (1) |
18,014 |
17,766 |
17,985 |
17,005 |
|||
Dilutive effect of stock options and restricted stock |
— |
103 |
— |
121 |
|||
Adjusted weighted-average shares outstanding under |
18,014 |
17,869 |
17,985 |
17,126 |
|||
Participating securities excluded under two-class method |
— |
(102) |
— |
(111) |
|||
Adjusted weighted-average shares outstanding under |
18,014 |
17,767 |
17,985 |
17,015 |
(1) |
Dilutive effect of common stock equivalents excluded from the diluted per share calculation is not material. |
Appendix A
Non-GAAP Presentation
Three and Nine Months Ended
(Unaudited)
Net income excluding the Hurricane Ian special charge and the recognition bonus, net income (loss), and earnings (loss) per share excluding the Hurricane Ian special charge and the recognition bonus, and operating income excluding the Hurricane Ian special charge and the recognition bonus all eliminate the effect of a recognition bonus awarded despite not meeting internal profit-sharing targets. As such, these are non-GAAP financial measures.
EBITDA and EBITDA, excluding recognition bonus and Hurricane Ian special charge, as presented in this press release, are supplemental measures of our performance that are not required by, or presented in accordance with, accounting principles generally accepted in
We define "EBITDA" as earnings before interest, taxes, depreciation and amortization. We also adjust EBITDA within this release to exclude the Hurricane Ian special charge and the recognition bonus. We caution investors that amounts presented in accordance with this definition may not be comparable to similar measures disclosed by other issuers, because not all issuers and analysts calculate EBITDA in the same manner.
We use EBITDA and EBITDA, excluding recognition bonus and Hurricane Ian special charge, to evaluate our operating performance and liquidity and these are among the primary measures used by management for planning and forecasting of future periods. We believe these presentations of EBITDA are relevant and useful for investors because it allows 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 these EBITDA numbers to the most directly comparable GAAP financial performance measure, which we believe is net income (loss). We believe the presentation of these EBITDA numbers is relevant and useful for investors because it allows them to better compare our results to other airlines.
In addition to EBITDA as defined above, we have included a separate EBITDA as defined by certain credit agreements. This measurement of EBITDA adjusts for 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
Reconciliation of Non-GAAP Financial Measures
Three Months Ended |
Nine Months Ended |
||
2022 |
2022 |
||
Reconciliation of net (loss) excluding Hurricane Ian special charge |
|||
Net (loss) before income taxes as reported (GAAP) |
$ (56.2) |
$ (60.9) |
|
Recognition bonus |
9.3 |
26.1 |
|
Hurricane Ian special charge |
35.0 |
35.0 |
|
Income (loss) before income taxes excluding Hurricane Ian special charge |
(21.2) |
(25.9) |
|
Income (loss) before income taxes excluding recognition bonus and |
(11.9) |
0.2 |
|
Income tax (benefit) as reported (GAAP) |
(9.7) |
(10.9) |
|
Income tax benefit excluding Hurricane Ian special charge |
(3.7) |
(4.6) |
|
Income tax benefit excluding recognition bonus and Hurricane Ian special |
(2.1) |
— |
|
Net income (loss) excluding Hurricane Ian special charge |
(17.5) |
(21.3) |
|
Net income (loss) excluding recognition bonus and Hurricane Ian special |
(9.8) |
0.2 |
|
Diluted shares as reported (GAAP) (thousands) |
18,014 |
17,985 |
|
(Loss) per share as reported (GAAP) |
(2.58) |
(2.78) |
|
Earnings (loss) per share excluding Hurricane Ian special charge |
(0.97) |
(1.18) |
|
Earnings (loss) per share excluding recognition bonus and Hurricane Ian |
(0.54) |
0.01 |
Three Months Ended |
Nine Months Ended |
||
2022 |
2022 |
||
Reconciliation of CASM and CASM excluding fuel, the Hurricane Ian |
|||
Operating expense as reported (GAAP) |
$ 591.2 |
$ 1,687.8 |
|
Recognition bonus |
(9.3) |
(26.1) |
|
Hurricane Ian special charge |
(35.0) |
(35.0) |
|
Operating expense excluding recognition bonus and Hurricane Ian special |
546.9 |
1,626.7 |
|
Fuel expense as reported |
(208.2) |
(629.6) |
|
Operating expense excluding fuel, the Hurricane Ian special charge and |
338.7 |
997.1 |
|
Available seat miles (ASMs) (thousands) |
4,450,595 |
14,060,825 |
|
Operating expense per ASM as reported (CASM) (cents) |
13.28 ¢ |
12.00 ¢ |
|
Operating expense CASM, excluding recognition bonus and Hurricane Ian |
12.29 ¢ |
11.57 ¢ |
|
Operating CASM, excluding fuel (cents) |
8.60 ¢ |
7.52 ¢ |
|
Operating CASM, excluding fuel, the Hurricane Ian special charge and |
7.61 ¢ |
7.09 ¢ |
Three Months Ended |
Nine Months Ended |
||
2022 |
2022 |
||
Reconciliation of operating income excluding the Hurricane Ian |
|||
Operating income (loss) as reported (GAAP) |
$ (30.9) |
$ 2.4 |
|
Recognition bonus |
9.3 |
26.1 |
|
Hurricane Ian special charge |
35.0 |
35.0 |
|
Operating income excluding recognition bonus and Hurricane Ian special |
$ 13.4 |
$ 63.5 |
Three Months Ended |
Nine Months Ended |
||
2022 |
2022 |
||
Reconciliation of consolidated EBITDA to EBITDA as defined by |
|||
Net (loss) |
$ (46.5) |
$ (50.0) |
|
Interest expense, net |
20.0 |
58.0 |
|
Income tax (benefit) |
(9.7) |
(10.9) |
|
Depreciation and amortization |
50.1 |
145.6 |
|
Loss on debt extinguishment |
5.0 |
5.0 |
|
Consolidated EBITDA (1) |
$ 18.9 |
147.7 |
|
Adjusting items as defined per credit agreements (2) |
88.0 |
215.2 |
|
EBITDA as defined by certain credit agreements (1) |
$ 106.9 |
$ 362.9 |
Three Months Ended |
Nine Months Ended |
||
2022 |
2022 |
||
Reconciliation of consolidated EBITDA to EBITDA, excluding |
|||
Consolidated EBITDA (1) |
$ 18.9 |
$ 147.7 |
|
Recognition bonus |
9.3 |
26.1 |
|
Hurricane Ian special charge |
35.0 |
35.0 |
|
EBITDA, excluding recognition bonus and Hurricane Ian special charge (1) |
$ 63.2 |
$ 208.8 |
(1) |
Denotes non-GAAP figure |
(2) |
Adjusting items include the following: Sunseeker net loss, including the Hurricane Ian special charge, stock compensation expense, amortization of debt issuance costs, (gain)/loss on disposal of assets, tax provision - in excess of cash paid, and other special non-recurring items |
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