LAS VEGAS, Oct. 24, 2019 /PRNewswire/ -- Allegiant
Travel Company (NASDAQ: ALGT) today reported the following
financial results for the third quarter 2019, as well as
comparisons to the prior year:
|
Consolidated
|
Three Months
Ended
September 30,
|
Percent
Change
|
|
Nine Months
Ended
September 30,
|
Percent
Change
|
|
(unaudited)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
Total operating
revenue (millions)
|
$
|
436.5
|
|
|
$
|
393.1
|
|
11.0
|
%
|
|
$
|
1,379.9
|
|
|
$
|
1,255.3
|
|
9.9
|
%
|
|
Operating income
(millions)
|
72.1
|
|
|
26.2
|
|
175.5
|
|
|
271.3
|
|
|
180.4
|
|
50.4
|
|
|
Net income
(millions)
|
43.9
|
|
|
15.1
|
|
190.0
|
|
|
171.6
|
|
|
120.4
|
|
42.6
|
|
|
Diluted earnings per
share
|
$
|
2.70
|
|
|
$
|
0.94
|
|
187.2
|
%
|
|
$
|
10.54
|
|
|
$
|
7.45
|
|
41.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Airline
only
|
Three Months
Ended
September 30,
|
Percent
Change
|
|
Nine Months
Ended
September 30,
|
Percent
Change
|
|
(unaudited)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
Airline operating
revenue (millions)(1)
|
$
|
430.9
|
|
|
$
|
390.4
|
|
10.4
|
%
|
|
$
|
1,366.0
|
|
|
$
|
1,249.3
|
|
9.3
|
%
|
|
Airline operating
income (millions)(1)
|
77.3
|
|
|
29.7
|
|
160.3
|
%
|
|
291.4
|
|
|
187.7
|
|
55.2
|
%
|
|
Airline operating
margin
|
17.9
|
%
|
|
7.6
|
%
|
10.3
|
pts.
|
|
21.3
|
%
|
|
15.0
|
%
|
6.3
|
pts.
|
|
Airline diluted
earnings per share(1)
|
$
|
3.06
|
|
|
$
|
1.15
|
|
166.1
|
%
|
|
$
|
11.85
|
|
|
$
|
7.91
|
|
49.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Airline CASM ex fuel
(cents)(1)
|
6.40
|
|
|
6.78
|
|
(5.6)
|
%
|
|
6.13
|
|
|
6.37
|
|
(3.8)
|
%
|
|
|
(1) Denotes a
non-GAAP financial measure. Refer to the Non-GAAP Presentation
section within this document for further
information.
|
"I couldn't be happier about our post-fleet transition results
with our third consecutive quarter of airline margin expansion,"
stated Maurice J. Gallagher, Jr.,
chairman and CEO of Allegiant Travel Company. "This is our
67th consecutive profitable quarter and we've nearly
tripled EPS versus the same period a year ago, despite having eight
fewer aircraft in the current fleet. Airline operating margin
increased ten-plus points to almost 18 percent in the quarter. Even
without the year-over-year benefits from lower fuel cost per
gallon, our airline operating margins would have been greater than
15 percent, almost twice as high as last year.
"We have discussed a number of times previously how our model
post-transition will remain intact. After three full quarters, I am
comfortable stating not only is it intact, it is actually better
today than with the MD-80 fleet. Our revenue per aircraft is
greater, and we have the ability to fly profitably further down the
off-peak curve, thereby allowing us greater fleet utilization both
in our weekly cycle and in our peak months. As an example, our
average daily block hour per aircraft in the past three years,
2016-2018 averaged 6.2 hours in Q3. This year we averaged 7.4
hours, a 19.4 percent increase in utilization. We are in an
excellent place in the history of the company. We have spent the
past three-to-four years devising our current Allegiant 2.0 plan,
and we are pacing nicely in the implementation. Our team members
have been a critical component in the execution of the plan. We
continue to excel in operational performance, number one in overall
completion reported to date for the third quarter. Our product is
our people, and it keeps getting better every day. Hats off
to all who produced a tremendous quarter during a very busy
summer."
Airline only third quarter 2019 results
- Diluted earnings per share were $3.06, an increase of nearly $2.00 per share versus last year
- 17.9 percent operating margin for the quarter and 21.3
percent year to date
- TRASM increased 4.3 percent despite capacity growth of
5.8 percent
-
- Quarter negatively impacted .5 percent due to Hurricane
Dorian
- Total fare increased 1.8 percent despite increasing
aircraft utilization by 15.6 percent
- Fixed fee flying set a quarterly record of almost
$20 million in revenue
contribution
- Cobrand credit card total revenue was $2.58 per passenger during the quarter
-
- Named Best Airline Co-Branded Credit Card by the USA Today 10Best Readers Choice Awards
- Third party hotel net revenue grew 17 percent easily
exceeding growth in passengers
- Fuel gallons used increased only 3.0 percent on ASM
growth of 6.7 percent
-
- Increase in ASMs per gallon of 3.6 percent to 80.3
- Airline unit cost excluding fuel decreased by 5.6
percent
-
- Maintenance, continued improvement in operations, and lower
airport fees were the largest drivers
Airline operational highlights
- Departures in the third quarter were up 8.2 percent year over
year despite eight fewer average number of aircraft in service
- Improved industry leading completion despite an increase
in cancellations of more than 1.5x due to weather
-
- Controllable completion was 99.97 percent, up from 99.52
percent year over year
- On time performance (A-14) for the quarter was 79.2
percent up 4.7 points year over year
-
- Controllable A-14 was 88.3 percent, up 4.5 points from
last year
- Irregular operations costs - third quarter down
$5.5 million or 53 percent
-
- Year to date irregular operations costs were down
$14 million or 53 percent
Liquidity and shareholder returns
- Total cash and investments at September 30 were $442
million
- Total debt declined from the second quarter to
$1.4 billion
- We have 30 unencumbered aircraft
- $81 million available under the
revolving credit facility
- Returned $14.7 million through
share repurchases in the quarter - purchased at an average
of $141.64 per share
-
- Currently have approximately $85
million in share repurchase authority
- Returned $11 million in
dividends in the third quarter
-
- Expect to pay dividend of $0.70 per share on December 12, 2019 to shareholders of
record as of November 22,
2019
Non-airline highlights
- Non-airline businesses resulted in a combined operating
loss of $5.2 million during third
quarter
- In discussion with potential buyers for Teesnap
|
Guidance, subject
to revision
|
|
|
|
|
|
|
Full year 2019
guidance
|
|
Previous
|
Current
|
|
Fuel cost per
gallon
|
|
$2.15
|
$2.15
|
|
Available seat miles
(ASMs) / gallon
|
|
82.0 to
83.0
|
82.5 to 83
|
|
|
|
|
|
Interest expense
(millions)
|
|
$75 to $80
|
$70 to $75
|
|
Tax rate
|
|
23 to 24%
|
23 to 24%
|
|
Share count
(millions)
|
|
15.9
|
16.0
|
|
Earnings per
share
|
|
$13.50 to
$14.25
|
$14.25 to
$14.75
|
|
|
|
|
|
System ASMs - year
over year change
|
|
8 to 9%
|
8.5 to
8.9%
|
|
Scheduled service
ASMs - year over year change
|
|
8 to 9%
|
8.5 to
8.9%
|
|
|
|
|
|
Depreciation expense
(millions)
|
|
$155 to
$160
|
$155 to
$160
|
|
Airline operating
CASM excluding fuel - year over year change
|
|
(4) to
(3)%
|
(3.9) to
(3.3)%
|
|
|
|
|
|
Airline CAPEX -
full year 2019
|
|
|
|
|
Capital expenditures
(millions)
|
|
$385 to
390
|
$375 to
380
|
|
Capitalized Airbus
deferred heavy maintenance (millions) *
|
|
$85 to 95
|
$75 to 80
|
|
|
|
|
|
Sunseeker
Resorts Project - 2019 **
|
|
|
|
|
Project spend -YTD
2019 (millions)
|
|
$17
|
$33
|
|
Expected full year
2019 spend (millions)
|
|
$150 to
175
|
$90 to 100
|
|
|
|
|
|
Sunseeker
Resorts Project - Total project **
|
|
|
|
|
Project spend -
project to date (millions)
|
|
$67
|
$81
|
|
Total expected
project spend (millions) ***
|
|
$470
|
$470
|
|
|
|
|
|
Other CAPEX - full
year 2019****
|
|
|
|
|
Capital expenditures
(millions)
|
|
$15 to 20
|
$15 to 20
|
|
|
Previous guidance as
of July 24, 2019
|
|
* Not included in
capital expenditure total
|
|
** Total project
spend includes $25m of pre-operating expense
|
|
*** 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
|
|
|
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
|
|
52
|
|
55
|
|
Total
|
76
|
|
84
|
|
86
|
|
89
|
|
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 5:30 p.m. ET Thursday, October
24, 2019 to discuss its third 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
Company
|
|
Consolidated
Statements of Income
|
|
(in thousands,
except per share amounts)
|
|
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Percent
|
|
2019
|
|
2018
|
|
change
|
|
OPERATING
REVENUE:
|
|
|
|
|
|
|
Passenger
revenue
|
$
|
391,222
|
|
|
$
|
355,100
|
|
|
10.2
|
|
|
Third party
products
|
18,207
|
|
|
15,921
|
|
|
14.4
|
|
|
Fixed fee contract
revenue
|
19,797
|
|
|
14,791
|
|
|
33.8
|
|
|
Other
revenue
|
7,283
|
|
|
7,297
|
|
|
(0.2)
|
|
|
Total operating
revenue
|
436,509
|
|
|
393,109
|
|
|
11.0
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
Aircraft
fuel
|
104,583
|
|
|
113,525
|
|
|
(7.9)
|
|
|
Salary and
benefits
|
107,586
|
|
|
97,706
|
|
|
10.1
|
|
|
Station
operations
|
43,522
|
|
|
43,128
|
|
|
0.9
|
|
|
Maintenance and
repairs
|
24,768
|
|
|
31,983
|
|
|
(22.6)
|
|
|
Depreciation and
amortization
|
39,436
|
|
|
34,658
|
|
|
13.8
|
|
|
Sales and
marketing
|
17,591
|
|
|
16,798
|
|
|
4.7
|
|
|
Aircraft lease
rental
|
—
|
|
|
671
|
|
|
(100.0)
|
|
|
Other
|
26,907
|
|
|
28,459
|
|
|
(5.5)
|
|
|
Total operating
expense
|
364,393
|
|
|
366,928
|
|
|
(0.7)
|
|
|
OPERATING
INCOME
|
72,116
|
|
|
26,181
|
|
|
175.5
|
|
|
OTHER (INCOME)
EXPENSE:
|
|
|
|
|
|
|
Interest
expense
|
19,506
|
|
|
14,309
|
|
|
36.3
|
|
|
Capitalized
interest
|
(903)
|
|
|
—
|
|
|
NM
|
|
|
Interest
income
|
(3,335)
|
|
|
(2,425)
|
|
|
37.5
|
|
|
Other, net
|
(57)
|
|
|
(118)
|
|
|
(51.7)
|
|
|
Total other
expense
|
15,211
|
|
|
11,766
|
|
|
29.3
|
|
|
INCOME BEFORE INCOME
TAXES
|
56,905
|
|
|
14,415
|
|
|
294.8
|
|
|
PROVISION FOR INCOME
TAXES
|
12,976
|
|
|
(732)
|
|
|
NM
|
|
|
NET INCOME
|
$
|
43,929
|
|
|
$
|
15,147
|
|
|
190.0
|
|
|
Earnings per share
attributable to common shareholders(1):
|
|
|
|
|
|
|
Basic
|
$2.70
|
|
|
$0.94
|
|
|
187.2
|
|
|
Diluted
|
$2.70
|
|
|
$0.94
|
|
|
187.2
|
|
|
Weighted average
shares outstanding used in computing earnings per share
attributable to common shareholders(1):
|
|
|
|
|
|
|
Basic
|
16,037
|
|
|
15,957
|
|
|
0.5
|
|
|
Diluted
|
16,039
|
|
|
15,962
|
|
|
0.5
|
|
|
|
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
Company
|
|
Operating
Statistics
|
|
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Percent
|
|
2019
|
|
2018
|
|
change
(1)
|
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
|
Passengers
|
3,806,369
|
|
|
3,503,849
|
|
|
8.6
|
|
|
Available seat miles
(ASMs) (thousands)
|
3,888,400
|
|
|
3,643,948
|
|
|
6.7
|
|
|
Operating expense per
ASM (CASM) (cents)
|
9.37
|
|
|
10.07
|
|
|
(7.0)
|
|
|
Fuel expense per ASM
(cents)
|
2.69
|
|
|
3.12
|
|
|
(13.8)
|
|
|
Operating CASM,
excluding fuel (cents)
|
6.68
|
|
|
6.95
|
|
|
(3.9)
|
|
|
ASMs per gallon of
fuel
|
80.3
|
|
|
77.5
|
|
|
3.6
|
|
|
Departures
|
27,707
|
|
|
25,601
|
|
|
8.2
|
|
|
Block
hours
|
59,678
|
|
|
56,329
|
|
|
5.9
|
|
|
Average stage length
(miles)
|
823
|
|
|
838
|
|
|
(1.8)
|
|
|
Average number of
operating aircraft during period
|
87.6
|
|
|
95.6
|
|
|
(8.4)
|
|
|
Average block hours
per aircraft per day
|
7.4
|
|
|
6.4
|
|
|
15.6
|
|
|
Full-time equivalent
employees at end of period
|
4,267
|
|
|
3,835
|
|
|
11.3
|
|
|
Fuel gallons consumed
(thousands)
|
48,443
|
|
|
47,016
|
|
|
3.0
|
|
|
Average fuel cost per
gallon
|
$
|
2.16
|
|
|
$
|
2.41
|
|
|
(10.4)
|
|
|
Scheduled service
statistics:
|
|
|
|
|
|
|
Passengers
|
3,753,611
|
|
|
3,461,267
|
|
|
8.4
|
|
|
Revenue passenger
miles (RPMs) (thousands)
|
3,170,826
|
|
|
2,988,962
|
|
|
6.1
|
|
|
Available seat miles
(ASMs) (thousands)
|
3,687,473
|
|
|
3,485,800
|
|
|
5.8
|
|
|
Load
factor
|
86.0
|
%
|
|
85.7
|
%
|
|
0.3
|
|
|
Departures
|
26,238
|
|
|
24,281
|
|
|
8.1
|
|
|
Block
hours
|
56,576
|
|
|
53,723
|
|
|
5.3
|
|
|
Total passenger
revenue per ASM (TRASM) (cents)(2)
|
11.10
|
|
|
10.64
|
|
|
4.3
|
|
|
Average fare -
scheduled service(3)
|
$
|
54.20
|
|
|
$
|
59.23
|
|
|
(8.5)
|
|
|
Average fare -
air-related charges(3)
|
$
|
50.03
|
|
|
$
|
43.36
|
|
|
15.4
|
|
|
Average fare - third
party products
|
$
|
4.85
|
|
|
$
|
4.60
|
|
|
5.4
|
|
|
Average fare -
total
|
$
|
109.08
|
|
|
$
|
107.19
|
|
|
1.8
|
|
|
Average stage length
(miles)
|
824
|
|
|
845
|
|
|
(2.5)
|
|
|
Fuel gallons consumed
(thousands)
|
46,038
|
|
|
44,910
|
|
|
2.5
|
|
|
Average fuel cost per
gallon
|
$
|
2.17
|
|
|
$
|
2.41
|
|
|
(10.0)
|
|
|
Percent of sales
through website during period
|
93.1
|
%
|
|
93.7
|
%
|
|
(0.6)
|
|
|
Other
data:
|
|
|
|
|
|
|
Rental car days
sold
|
482,944
|
|
|
472,301
|
|
|
2.3
|
|
|
Hotel room nights
sold
|
99,991
|
|
|
95,690
|
|
|
4.5
|
|
|
|
(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
Company
|
|
Consolidated
Statements of Income
|
|
(in thousands,
except per share amounts)
|
|
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
Percent
|
|
2019
|
|
2018
|
|
change
|
|
OPERATING
REVENUE:
|
|
|
|
|
|
|
Passenger
revenue
|
$
|
1,265,978
|
|
|
$
|
1,157,443
|
|
|
9.4
|
|
|
Third party
products
|
53,557
|
|
|
44,045
|
|
|
21.6
|
|
|
Fixed fee contract
revenue
|
42,859
|
|
|
33,000
|
|
|
29.9
|
|
|
Other
revenue
|
17,498
|
|
|
20,845
|
|
|
(16.1)
|
|
|
Total operating
revenue
|
1,379,892
|
|
|
1,255,333
|
|
|
9.9
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
Aircraft
fuel
|
324,253
|
|
|
342,006
|
|
|
(5.2)
|
|
|
Salary and
benefits
|
340,589
|
|
|
312,314
|
|
|
9.1
|
|
|
Station
operations
|
128,357
|
|
|
122,265
|
|
|
5.0
|
|
|
Maintenance and
repairs
|
68,470
|
|
|
75,864
|
|
|
(9.7)
|
|
|
Depreciation and
amortization
|
114,112
|
|
|
92,641
|
|
|
23.2
|
|
|
Sales and
marketing
|
59,057
|
|
|
54,224
|
|
|
8.9
|
|
|
Aircraft lease
rentals
|
—
|
|
|
767
|
|
|
(100.0)
|
|
|
Other
|
73,756
|
|
|
74,881
|
|
|
(1.5)
|
|
|
Total operating
expense
|
1,108,594
|
|
|
1,074,962
|
|
|
3.1
|
|
|
OPERATING
INCOME
|
271,298
|
|
|
180,371
|
|
|
50.4
|
|
|
OTHER (INCOME)
EXPENSE:
|
|
|
|
|
|
|
Interest
expense
|
58,531
|
|
|
40,467
|
|
|
44.6
|
|
|
Capitalized
interest
|
(3,444)
|
|
|
(279)
|
|
|
NM
|
|
|
Interest
income
|
(10,038)
|
|
|
(6,259)
|
|
|
60.4
|
|
|
Loss on
extinguishment of debt
|
3,677
|
|
|
—
|
|
|
NM
|
|
|
Other, net
|
(41)
|
|
|
(408)
|
|
|
(90.0)
|
|
|
Total other
expense
|
48,685
|
|
|
33,521
|
|
|
45.2
|
|
|
INCOME BEFORE INCOME
TAXES
|
222,613
|
|
|
146,850
|
|
|
51.6
|
|
|
PROVISION FOR INCOME
TAXES
|
51,017
|
|
|
26,494
|
|
|
92.6
|
|
|
NET INCOME
|
$
|
171,596
|
|
|
$
|
120,356
|
|
|
42.6
|
|
|
Earnings per share
attributable to common shareholders(1):
|
|
|
|
|
|
|
Basic
|
$10.55
|
|
|
$7.46
|
|
|
41.4
|
|
|
Diluted
|
$10.54
|
|
|
$7.45
|
|
|
41.5
|
|
|
Weighted average
shares outstanding used in computing earnings per share
attributable to common shareholders(1):
|
|
|
|
|
|
|
Basic
|
16,037
|
|
|
15,929
|
|
|
0.7
|
|
|
Diluted
|
16,045
|
|
|
15,938
|
|
|
0.7
|
|
|
|
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
Company
|
|
Operating
Statistics
|
|
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
Percent
|
|
2019
|
|
2018
|
|
change
(1)
|
|
OPERATING
STATISTICS
|
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
|
Passengers
|
11,426,183
|
|
|
10,510,913
|
|
|
8.7
|
|
|
Available seat miles
(ASMs) (thousands)
|
12,245,704
|
|
|
11,294,805
|
|
|
8.4
|
|
|
Operating expense per
ASM (CASM) (cents)
|
9.05
|
|
|
9.52
|
|
|
(4.9)
|
|
|
Fuel expense per ASM
(cents)
|
2.65
|
|
|
3.03
|
|
|
(12.5)
|
|
|
Operating CASM,
excluding fuel (cents)
|
6.41
|
|
|
6.49
|
|
|
(1.2)
|
|
|
ASMs per gallon of
fuel
|
82.2
|
|
|
76.8
|
|
|
7.1
|
|
|
Departures
|
83,454
|
|
|
76,912
|
|
|
8.5
|
|
|
Block
hours
|
187,829
|
|
|
174,838
|
|
|
7.4
|
|
|
Average stage length
(miles)
|
858
|
|
|
868
|
|
|
(1.2)
|
|
|
Average number of
operating aircraft during period
|
84.1
|
|
|
92.4
|
|
|
(9.0)
|
|
|
Average block hours
per aircraft per day
|
8.2
|
|
|
6.9
|
|
|
18.8
|
|
|
Full-time equivalent
employees at end of period
|
4,267
|
|
|
3,835
|
|
|
11.3
|
|
|
Fuel gallons consumed
(thousands)
|
148,980
|
|
|
147,172
|
|
|
1.2
|
|
|
Average fuel cost per
gallon
|
$
|
2.18
|
|
|
$
|
2.32
|
|
|
(6.0)
|
|
|
Scheduled service
statistics:
|
|
|
|
|
|
|
Passengers
|
11,307,004
|
|
|
10,422,579
|
|
|
8.5
|
|
|
Revenue passenger
miles (RPMs) (thousands)
|
9,964,948
|
|
|
9,299,355
|
|
|
7.2
|
|
|
Available seat miles
(ASMs) (thousands)
|
11,800,788
|
|
|
10,883,630
|
|
|
8.4
|
|
|
Load
factor
|
84.4
|
%
|
|
85.4
|
%
|
|
(1.0)
|
|
|
Departures
|
80,149
|
|
|
73,537
|
|
|
9.0
|
|
|
Block
hours
|
180,674
|
|
|
167,947
|
|
|
7.6
|
|
|
Total passenger
revenue per ASM (TRASM) (cents)(2)
|
11.18
|
|
|
11.04
|
|
|
1.3
|
|
|
Average fare -
scheduled service(3)
|
$
|
60.40
|
|
|
$
|
65.72
|
|
|
(8.1)
|
|
|
Average fare -
air-related charges(3)
|
$
|
51.56
|
|
|
$
|
45.33
|
|
|
13.7
|
|
|
Average fare - third
party products
|
$
|
4.74
|
|
|
$
|
4.23
|
|
|
12.1
|
|
|
Average fare -
total
|
$
|
116.70
|
|
|
$
|
115.28
|
|
|
1.2
|
|
|
Average stage length
(miles)
|
861
|
|
|
874
|
|
|
(1.5)
|
|
|
Fuel gallons consumed
(thousands)
|
143,433
|
|
|
141,452
|
|
|
1.4
|
|
|
Average fuel cost per
gallon
|
$
|
2.17
|
|
|
$
|
2.31
|
|
|
(6.1)
|
|
|
Percent of sales
through website during period
|
93.4
|
%
|
|
93.8
|
%
|
|
(0.4)
|
|
|
Other
data:
|
|
|
|
|
|
|
Rental car days
sold
|
1,495,502
|
|
|
1,408,357
|
|
|
6.2
|
|
|
Hotel room nights
sold
|
319,197
|
|
|
313,360
|
|
|
1.9
|
|
|
|
(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)
|
9/30/2019
|
|
12/31/2018
|
|
Percent
Change
|
|
(unaudited)
|
|
|
|
|
|
Unrestricted cash and
investments
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
88.1
|
|
|
$
|
81.5
|
|
|
8.1
|
%
|
|
Short-term
investments
|
314.8
|
|
|
314.5
|
|
|
0.1
|
|
|
Long-term
investments
|
39.1
|
|
|
51.5
|
|
|
(24.1)
|
|
|
Total unrestricted
cash and investments
|
442.0
|
|
|
447.5
|
|
|
(1.2)
|
|
|
Debt
|
|
|
|
|
|
|
Current maturities of
long-term debt and finance lease obligations, net of related
costs(1)
|
138.7
|
|
|
152.3
|
|
|
(8.9)
|
|
|
Long-term debt and
finance lease obligations, net of current maturities and related
costs
|
1,213.3
|
|
|
1,119.4
|
|
|
8.4
|
|
|
Total debt
|
1,352.0
|
|
|
1,271.7
|
|
|
6.3
|
|
|
Total Allegiant
Travel Company shareholders' equity
|
826.6
|
|
|
690.3
|
|
|
19.7
|
|
|
|
(1) As of December
31, 2018, $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
|
|
|
Nine Months Ended
September 30,
|
|
Percent
|
|
Unaudited
(millions)
|
2019
|
|
2018
|
|
Change
|
|
Cash provided by
operating activities
|
$
|
321.4
|
|
|
$
|
290.1
|
|
|
10.8
|
%
|
|
Purchase of property
and equipment, including capitalized interest
|
350.2
|
|
|
274.0
|
|
|
27.8
|
|
|
Repurchase of common
stock
|
18.5
|
|
|
3.6
|
|
|
413.9
|
|
|
Cash dividends paid
to shareholders
|
34.2
|
|
|
33.9
|
|
|
0.9
|
|
|
Proceeds from the
issuance of long-term debt
|
770.4
|
|
|
191.7
|
|
|
301.9
|
|
|
Principal payments on
long-term debt & finance lease obligations
|
671.0
|
|
|
171.4
|
|
|
291.5
|
|
EPS Calculation
The following table sets forth the computation of net income per
share, on a basic and diluted basis, for the periods indicated
(share count and dollar amounts other than per-share amounts in
table are in thousands):
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Basic:
|
|
|
|
|
|
|
|
|
Net income
|
$
|
43,929
|
|
|
$
|
15,147
|
|
|
$
|
171,596
|
|
|
$
|
120,356
|
|
|
Less net income
allocated to participating securities
|
(578)
|
|
|
(194)
|
|
|
(2,441)
|
|
|
(1,602)
|
|
|
Net income
attributable to common stock
|
$
|
43,351
|
|
|
$
|
14,953
|
|
|
$
|
169,155
|
|
|
$
|
118,754
|
|
|
Earnings per share,
basic
|
$
|
2.70
|
|
|
$
|
0.94
|
|
|
$
|
10.55
|
|
|
$
|
7.46
|
|
|
Weighted-average
shares outstanding
|
16,037
|
|
|
15,957
|
|
|
16,037
|
|
|
15,929
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
Net income
|
$
|
43,929
|
|
|
$
|
15,147
|
|
|
$
|
171,596
|
|
|
$
|
120,356
|
|
|
Less net income
allocated to participating securities
|
(578)
|
|
|
(194)
|
|
|
(2,440)
|
|
|
(1,601)
|
|
|
Net income
attributable to common stock
|
$
|
43,351
|
|
|
$
|
14,953
|
|
|
$
|
169,156
|
|
|
$
|
118,755
|
|
|
Earnings per share,
diluted
|
$
|
2.70
|
|
|
$
|
0.94
|
|
|
$
|
10.54
|
|
|
$
|
7.45
|
|
|
Weighted-average
shares outstanding
|
16,037
|
|
|
15,957
|
|
|
16,037
|
|
|
15,929
|
|
|
Dilutive effect of
stock options and restricted stock
|
56
|
|
|
35
|
|
|
45
|
|
|
42
|
|
|
Adjusted
weighted-average shares outstanding under treasury stock
method
|
16,093
|
|
|
15,992
|
|
|
16,082
|
|
|
15,971
|
|
|
Participating
securities excluded under two-class method
|
(54)
|
|
|
(30)
|
|
|
(37)
|
|
|
(33)
|
|
|
Adjusted
weighted-average shares outstanding under two-class
method
|
16,039
|
|
|
15,962
|
|
|
16,045
|
|
|
15,938
|
|
Appendix A
Non-GAAP
Presentation
Three and Nine Months Ended September 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Reconciliation of
airline operating CASM excluding fuel (millions, unless otherwise
noted)
|
|
|
|
|
|
|
|
|
Consolidated
operating expense (GAAP)
|
$
|
364.4
|
|
|
$
|
366.9
|
|
|
$
|
1,108.6
|
|
|
$
|
1,075.0
|
|
|
Less aircraft fuel
expense
|
104.6
|
|
|
113.5
|
|
|
324.3
|
|
|
342.0
|
|
|
Less non-airline
operating expense(1)
|
10.9
|
|
|
6.2
|
|
|
34.0
|
|
|
13.4
|
|
|
Total airline
operating expense less fuel expense(1)
|
248.9
|
|
|
247.2
|
|
|
750.3
|
|
|
719.6
|
|
|
|
|
|
|
|
|
|
|
System available seat
miles
|
3,888.4
|
|
|
3,643.9
|
|
|
12,245.7
|
|
|
11,294.8
|
|
|
Cost per available
seat mile (cents) as reported
|
9.37
|
|
|
10.07
|
|
|
9.05
|
|
|
9.52
|
|
|
Cost per available
seat mile excluding fuel and non-airline operating expense
(cents)(1)
|
6.40
|
|
|
6.78
|
|
|
6.13
|
|
|
6.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Reconciliation of
airline operating revenue, operating income, net income, and EBITDA
(millions, unless otherwise noted)
|
|
|
|
|
|
|
|
|
Operating revenue as
reported (GAAP)
|
$
|
436.5
|
|
|
$
|
393.1
|
|
|
$
|
1,379.9
|
|
|
$
|
1,255.3
|
|
|
Non-airline operating
revenue(1)
|
5.6
|
|
|
2.7
|
|
|
13.9
|
|
|
6.0
|
|
|
Airline operating
revenue(1)
|
430.9
|
|
|
390.4
|
|
|
1,366.0
|
|
|
1,249.3
|
|
|
|
|
|
|
|
|
|
|
Operating income as
reported (GAAP)
|
72.1
|
|
|
26.2
|
|
|
271.3
|
|
|
180.4
|
|
|
Non-airline operating
loss(1)
|
(5.2)
|
|
|
(3.5)
|
|
|
(20.1)
|
|
|
(7.3)
|
|
|
Airline operating
income(1)
|
77.3
|
|
|
29.7
|
|
|
291.4
|
|
|
187.7
|
|
|
Airline operating
margin
|
17.9
|
%
|
|
7.6
|
%
|
|
21.3
|
%
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
Net income as
reported (GAAP)
|
43.9
|
|
|
15.1
|
|
|
171.6
|
|
|
120.4
|
|
|
Non-airline net
loss(1)
|
(5.7)
|
|
|
(3.5)
|
|
|
(21.2)
|
|
|
(7.4)
|
|
|
Airline net
income(1)
|
49.6
|
|
|
18.6
|
|
|
192.8
|
|
|
127.8
|
|
|
|
|
|
|
|
|
|
|
Airline operating
income(1)
|
77.3
|
|
|
29.7
|
|
|
291.4
|
|
|
187.7
|
|
|
Add: Airline
depreciation and amortization(1)
|
38.4
|
|
|
34.1
|
|
|
110.5
|
|
|
91.3
|
|
|
Airline
EBITDA(1)
|
115.7
|
|
|
63.8
|
|
|
401.9
|
|
|
279.0
|
|
|
Average number of
aircraft in service (#)
|
87.6
|
|
|
95.6
|
|
|
84.1
|
|
|
92.4
|
|
|
Airline EBITDA per
aircraft
|
1.3
|
|
|
0.7
|
|
|
4.8
|
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Reconciliation of
airline diluted earnings per share
|
|
|
|
|
|
|
|
|
Net income as
reported (GAAP) (millions)
|
$
|
43.9
|
|
|
$
|
15.1
|
|
|
$
|
171.6
|
|
|
$
|
120.4
|
|
|
Airline net income
(millions)(1)
|
49.6
|
|
|
18.6
|
|
|
192.8
|
|
|
127.8
|
|
|
|
|
|
|
|
|
|
|
Diluted shares used
for computation (thousands)
|
16,039
|
|
|
15,962
|
|
|
16,045
|
|
|
15,938
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share as reported (per share) (GAAP)
|
$
|
2.70
|
|
|
$
|
0.94
|
|
|
$
|
10.54
|
|
|
$
|
7.45
|
|
|
|
|
|
|
|
|
|
|
Airline diluted
earnings per share(1)
|
$
|
3.06
|
|
|
$
|
1.15
|
|
|
$
|
11.85
|
|
|
$
|
7.91
|
|
|
|
(1) Denotes
non-GAAP figure.
|
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SOURCE Allegiant Travel Company