Allegiant Travel Company (NASDAQ: ALGT) today
reported the following financial results for the second quarter
2019, as well as comparisons to the prior year:
Consolidated |
Three Months EndedJune 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 Maurice J. Gallagher,
Jr., chairman and CEO of Allegiant Travel Company. "We commented
last quarter about the benefits of our all Airbus fleet. These
benefits are continuing and increasing. We led the industry in Q1
with a 22 percent airline operating margin; this quarter the
airline generated a 24 percent operating margin, a six percentage
point increase from the previous year. And we accomplished these
results with seven fewer aircraft this year compared to 2018. The
fuel efficiencies of the Airbus continue to impress. We consumed
4.9 percent more fuel in Q2 compared to last year but produced 13.4
percent more ASMs. Correspondingly, our CASM ex-fuel declined 6.1
percent year over year. I’m comfortable stating we believe we will
be the only carrier this quarter who had lower unit costs this year
versus last year.
"On the revenue front, scheduled service revenue was $11 million
per aircraft during the first six months of the year, over $2
million more than last year’s per aircraft revenue during the same
period. Additionally, we generated approximately $3.5 million of
EBITDA per aircraft in the same period or about $1.1 million
greater per aircraft than the same period last year.
"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 June
2018, we were number five in completion rate; this year we were
number one. I’m happy to report we have had only ten days where we
have had a mechanical cancellation since the beginning of the
year.
"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 Mexico and the Caribbean in
the coming years."
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
$7.2 million or 57.6 percent
Airline only second quarter 2019 results
• Diluted
earnings per share were $4.81, up 49.8 percent
year over year• 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 $120.49•
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 June 30 were $695 million•
Paid off high yield bond
balance of $102 million in July •
Currently, we have 26
unencumbered aircraft•
$81 million available
under the revolving credit facility•
Returned $11 million in
dividends in the second quarter•
Expect to pay dividend
of $0.70 per share on September 27, 2019 to shareholders of record
as of September 20, 2019
Non-airline highlights
•
Non-airline businesses resulted in a combined
operating loss of $7.4 million during second quarter•
Evaluating strategic
alternatives for Teesnap•
Triggered the business
classification of an entity held for sale in July 2019•
Sunseeker Resorts FY19 CAPEX
reduced to a range between $150 and $175 million•
Operated two
family entertainment centers (FEC's) during second
quarter• Rebranded FEC’s
from G4CE to Allegiant Nonstop effective June 1, 2019
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 April 24, 2019* Not included in capital
expenditure total** Of the total remaining capex, expect to receive
$175m in third party financing from an affiliate of TPG Sixth
Street Partners as the last funds in the project, of which 2/3 will
be non-recourse to Allegiant Travel Company*** 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)
Allegiant Travel Company will host a conference call with
analysts at 4:30 p.m. ET Wednesday, July 24, 2019 to discuss its
second quarter 2019 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 premier leisure experiences - from vacations to
hometown family entertainment. 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 serves more than 450 routes across the
country, with base airfares less than half the cost of the average
domestic roundtrip ticket. Allegiant’s Sunseeker
Resorts subsidiary is currently under construction with
its inaugural resort property, Sunseeker Resort Charlotte Harbor in
Southwest Florida - a unique waterside integrated resort like no
other. And a growing group of Allegiant Nonstop family
entertainment centers offer state-of-the art indoor games and
attractions to thrill seekers of all ages. 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
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 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 Securities and Exchange
Commission at www.sec.gov. These risk factors include, without
limitation, 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 under contract, 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
CompanyConsolidated 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.
Allegiant Travel
CompanyOperating
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.
Allegiant Travel
CompanyConsolidated 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.
Allegiant Travel
CompanyOperating
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 June 30, 2019, and December 31, 2018, respectively,
$80.1 million and $428.0 million of the Company's Unsecured Senior
Notes (which matured on July 15, 2019) were classified as long-term
as management refinanced the borrowings on a long-term basis in
February 2019.
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 meaningfulEPS 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 ANon-GAAP
PresentationsThree and Six Months Ended June 30,
2019 and 2018(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 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, net income, operating
expenses, and diluted earnings 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, net income 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, |
|
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.
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