LAS VEGAS, Oct. 28, 2020 /PRNewswire/ -- Allegiant Travel
Company (NASDAQ: ALGT) today reported the following financial
results for the third quarter 2020, as well as comparisons to the
prior year:
Consolidated
|
Three Months
Ended
September 30,
|
Percent
Change
|
|
Nine Months
Ended
September 30,
|
Percent
Change
|
(unaudited) (in
millions, except per
share amounts)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Total operating
revenue
|
$
|
201.0
|
|
|
$
|
436.5
|
|
(54.0)
|
%
|
|
$
|
743.5
|
|
|
$
|
1,379.9
|
|
(46.1)
|
%
|
Operating income
(loss)
|
(33.1)
|
|
|
72.1
|
|
(145.9)
|
|
|
(257.3)
|
|
|
271.3
|
|
(194.9)
|
|
Income (loss) before
income taxes
|
(44.7)
|
|
|
56.9
|
|
(178.6)
|
|
|
(321.9)
|
|
|
222.6
|
|
(244.6)
|
|
Net income
(loss)
|
(29.1)
|
|
|
43.9
|
|
(166.3)
|
|
|
(155.3)
|
|
|
171.6
|
|
(190.5)
|
|
Diluted earnings
(loss) per share
|
$
|
(1.82)
|
|
|
$
|
2.70
|
|
(167.4)
|
|
|
$
|
(9.75)
|
|
|
$
|
10.54
|
|
(192.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated -
adjusted
|
Three Months
Ended
September 30,
|
Percent
Change
|
|
Nine Months
Ended
September 30,
|
Percent
Change
|
(unaudited) (in
millions, except per share amounts)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Adjusted operating
income (loss) (1) (2)
|
$
|
(77.4)
|
|
|
$
|
72.1
|
|
(207.4)
|
%
|
|
$
|
(128.8)
|
|
|
$
|
271.3
|
|
(147.5)
|
%
|
Adjusted income
(loss) before income taxes(1) (2)
|
(89.0)
|
|
|
56.9
|
|
(256.4)
|
|
|
(166.8)
|
|
|
222.6
|
|
(174.9)
|
|
Adjusted net income
(loss)(1) (2)
|
(68.5)
|
|
|
43.9
|
|
(256.0)
|
|
|
(128.4)
|
|
|
171.6
|
|
(174.8)
|
|
Adjusted diluted
earnings (loss) per share (1) (2)
|
$
|
(4.28)
|
|
|
$
|
2.70
|
|
(258.5)
|
|
|
$
|
(8.07)
|
|
|
$
|
10.54
|
|
(176.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted to
exclude COVID related special charges, the benefit from the CARES
Act payroll support program, and the portion of the tax benefit (as
applicable) attributable to the CARES Act.
|
(2) Denotes a
non-GAAP financial measure. Refer to the Non-GAAP Presentation
section within this document for further
information.
|
"As we continue to navigate through the pandemic we have been
encouraged by the modest, yet consistent improvements during the
third quarter and into the fourth," stated Maurice J. Gallagher, Jr., chairman and CEO of
Allegiant Travel Company. "Consumer confidence towards air travel
is improving as seen in our quarterly performance. We completed the
quarter beating consensus with a loss per share of $4.28, excluding one-time, special items, and the
benefit from the CARES Act. Our scheduled capacity year-over-year
was down less than seven percent, perhaps the best showing in the
industry. Revenue is also trending in the right direction with
September totals down 43 percent versus prior year. Although we
still have a long road ahead of us, the progress we've seen is a
direct reflection of the quality of our people and the nimbleness
of the model.
"As we move into the fourth quarter, we remain focused on cash
management. Our cash preservation strategy continues to center
around maintaining a broad selling presence as well as stripping
costs from the business. Our revenue and planning teams have done
an exceptional job optimizing our schedule available for sale.
We've seen average daily gross bookings increase from just over
$2 million per day during the third
quarter to over $3 million per day
thus far in the fourth quarter. On the cost front, we successfully
reduced variable operating expenses by nearly 30 percent, excluding
the CARES Act payroll support benefit and one-time special items,
which outpaces our reduction in capacity more than threefold. These
savings are important in paving the way to cash break-even. Our
cash preservation strategies coupled with strategic capital raises
over the last several weeks have contributed to our pro forma cash
balance of $850 million.
"Even though we're pleased with recent progress, we remain
cautious. We have had to make tough decisions the past few months,
including a reduction in our workforce. Although difficult, these
steps were necessary to right size our organization to better align
with demand. This environment has been difficult for our team
members, and I cannot thank them enough for their continued hard
work and dedication during this trying time. Their efforts to
prioritize health and safety for our passengers, and our leadership
efforts to bolster the financial health of the company have laid a
solid foundation for our recovery. This has been and will continue
to be a slow climb out of this abyss known as COVID. At this point,
I believe we are leading the way out towards light ahead in the
coming months and year."
Covid-19 Responses - Update
- Ranked by Safe Travel Barometer as #1 airline among North
American carriers and among the top five worldwide for best
COVID-19 Traveler Safety Measures, with results based on an
independent audit of more than 150 airlines
- Prioritizing the health and safety of our passengers and crew
members by upholding the principles of our Going the Distance
for Health and Safety program, which include enhanced cleaning
protocols, air purity guidelines, and new service practices and
boarding procedures designed to provide additional distancing
between customers whenever possible
- Accommodating travel flexibility by waiving change and
cancellation fees for all customers with future travel through
the end of 2020, extending the expiry on credit vouchers to
two years, and offering an opt-in option within the booking path to
alert customers if their flight has reached 65 percent capacity
allowing the option to re-book or receive a refund
- Reduced management and support teams by roughly 300
positions, which includes voluntary leaves
-
- 25 percent reduction in these work groups
- Includes 220 positions previously disclosed
- Anticipated annual savings of roughly $20 million
- Furloughed roughly 130 pilots, a 13 percent
reduction
-
- 100 furloughed as of October 1,
with an additional 30 expected November
1
Third Quarter 2020 Results
- Recorded positive cash inflows for the month of September,
excluding a $5 million payment in
connection with terminating the loan agreement intended to finance
the development of Sunseeker Resorts Charlotte Harbor
- Reduced scheduled third quarter capacity by
6.5 percent
-
- Completed the quarter with load factor in the month of
September of 57.4 percent, the highest month since the onset of the
pandemic in March
- Recognized total special charges related to COVID-19 of
$33.6 million during the third
quarter
- Anticipate fourth quarter capacity to be reduced by 15
percent from prior year but will continue to adjust based on demand
trends
- Minimal close-in cancellations during the third
quarter and anticipate the fourth quarter will be similar
- Total revenue for the quarter was $201.0 million, down 54.0 percent year over
year
-
- September total revenue down 42.8 percent, the lowest monthly
reduction since the onset of the pandemic
- Average total ancillary revenue per passenger (includes
air-related charges and third party products) remains strong,
despite current yield pressure, at $55.70 per passenger, up 1.5 percent
year-over-year
- Operating expense was $234.1
million, down 35.8 percent year-over-year on reduced
system-wide capacity of 9.4 percent
-
- Variable operating expense, defined as total operating expense
excluding the benefit of the CARES Act, one-time special items,
aircraft leases, and depreciation and amortization, down 29.2
percent versus prior year
- Advertising spend down 75 percent year-over-year, yet website
visitors derived by either directly typing www.allegiant.com or by
clicking on a marketing email promotional link are up 17 percent
versus prior year
-
- Customer conversion rate is up 36 percent from pre-pandemic
levels
- Named #1 airline co-branded credit card two years in a
row by USA Today
Balance Sheet, Cash and Liquidity
- Total cash and investments at September 30th was $709.8 million
- Total sources of liquidity received during the third
quarter around $184.9
million
-
- Obtained $84 million in
financings secured by A320 aircraft and CFM engines
- Entered into a sale leaseback transaction, which
included the sale of four A320-series aircraft, three of which
closed in the third quarter generating $30
million
-
- Fourth sale closed in October, generating $10 million
- Federal income tax refund of $48.7
million related to tax net operating losses from 2018
-
- Expect a federal income tax refund in excess of $125 million related to 2020 net operating losses
to be received during the first half of 2021
- Additional payroll support related to the CARES Act of
$22.2 million
- In early October, issued $150
million of senior secured notes backed by collateral
pledged to existing Term Loan
-
- Cash balance pro forma for this financing in excess of
$850 million
- Debt, net of liquidity, as of September
30th was $840
million, down roughly $100
million from December 31,
2019
- Third quarter interest expense down 38.8 percent versus prior
year
- 3Q20 daily cash burn averaged $1.3 million
(1)
-
- Gross bookings averaged just above $2.0
million per day during the quarter
- Includes $15 million of payments
to Sixth Street Partners (formerly TSSP) to terminate loan
agreement intended to finance the development of Sunseeker Resorts
Charlotte Harbor
- As of September 30th,
have 22 unencumbered aircraft and 4 unencumbered spare engines
- Air traffic liability at September 30th was $334 million
-
- Balance related to future scheduled flights is $116 million
- Balance related to travel vouchers issued for future use is
$218 million
(1) Daily cash burn defined as cash from operations less
scheduled debt and rent payments and capital expenditure outflows
excluding aircraft and engine acquisitions as they are expected to
be financed. Excludes benefits received from CARES Act such as
Payroll Support Program funding and tax refunds from net operating
loss carry-backs.
Capital Expenditures
- Remaining 2020 spend related to capital expenditures is
roughly $130 million
-
- Includes five previously executed purchase commitments for
aircraft
- Roughly $10 million of deferred
heavy maintenance
- Full year 2021 capital expenditures, including deferred
heavy maintenance, expected to be roughly $125 million
-
- Includes two previously executed purchase commitments for
aircraft
- Expect to have 93 operating aircraft at year end
2020
-
- Does not include owned aircraft currently in storage
programs
Allegiant Travel Company will host a conference call with
analysts at 4:30 p.m. ET Wednesday,
October 28 to discuss its third quarter 2020 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's all-Airbus fleet serves communities
across the nation, with base airfares less than half the cost of
the average domestic roundtrip ticket. For more information, visit
us at Allegiant.com. Media information, including photos, is
available at http://gofly.us/iiFa303wrtF
Media Inquiries: mediarelations@allegiantair.com
Investor Inquiries: ir@allegiantair.com
Under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, statements in this press release
that are not historical facts are forward-looking statements. These
forward-looking statements are only estimates or predictions based
on our management's beliefs and assumptions and on information
currently available to our management. Forward-looking statements
include our statements regarding future airline operations and
capacity, the efficacy of cost saving measures, future
expenditures, cash burn, the timing of aircraft
acquisitions and retirements, aircraft financings,
expected capital expenditures, as well as other information
concerning future results of operations, business strategies,
financing plans, industry environment and potential growth
opportunities. Forward-looking statements include all statements
that are not historical facts and can be identified by the use of
forward-looking terminology such as the words "believe," "expect,"
"guidance," "anticipate," "intend," "plan," "estimate", "project",
"hope" or similar expressions.
Forward-looking statements involve risks, uncertainties
and assumptions. Actual results may differ materially from those
expressed in the forward-looking statements. Important risk factors
that could cause our results to differ materially from those
expressed in the forward-looking statements generally may be found
in our periodic reports filed with the Securities and Exchange
Commission at www.sec.gov. These risk factors include, without
limitation, the impact and duration of the COVID-19 pandemic on
airline travel and the economy, liquidity issues resulting from the
effect of the COVID-19 pandemic on our business, restrictions
imposed on us as a result of accepting grants and loans under the
Cares Act, an accident involving, or problems with, our aircraft,
public perception of our safety, our reliance on our automated
systems, our reliance on third parties to deliver aircraft under
contract to us on a timely basis, risk of breach of security of
personal data, volatility of fuel costs, labor issues and costs,
the ability to obtain regulatory approvals as needed , the effect
of economic conditions on leisure travel, debt covenants and
balances, the ability to finance aircraft to be acquired, terrorist
attacks, risks inherent to airlines, our competitive environment,
our reliance on third parties who provide facilities or services to
us, the possible loss of key personnel, economic and other
conditions in markets in which we operate, the ability to
successfully develop and finance a resort in Southwest Florida, governmental regulation,
increases in maintenance costs and cyclical and seasonal
fluctuations in our operating results.
Any forward-looking statements are based on information
available to us today and we undertake no obligation to update
publicly any forward-looking statements, whether as a result of
future events, new information or otherwise.
Detailed financial information follows:
Allegiant Travel
Company
|
Consolidated
Statements of Income
|
(in thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Percent
|
|
2020
|
|
2019
|
|
change
|
OPERATING
REVENUE:
|
|
|
|
|
|
Passenger
revenue
|
$
|
181,916
|
|
|
$
|
391,222
|
|
|
(53.5)
|
|
Third party
products
|
11,337
|
|
|
18,207
|
|
|
(37.7)
|
|
Fixed fee contract
revenue
|
5,284
|
|
|
19,797
|
|
|
(73.3)
|
|
Other
revenue
|
2,447
|
|
|
7,283
|
|
|
(66.4)
|
|
Total operating
revenue
|
200,984
|
|
|
436,509
|
|
|
(54.0)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Salary and
benefits
|
95,829
|
|
|
107,586
|
|
|
(10.9)
|
|
Aircraft
fuel
|
52,540
|
|
|
104,583
|
|
|
(49.8)
|
|
Depreciation and
amortization
|
45,291
|
|
|
39,436
|
|
|
14.8
|
|
Station
operations
|
39,954
|
|
|
43,522
|
|
|
(8.2)
|
|
Maintenance and
repairs
|
14,038
|
|
|
24,768
|
|
|
(43.3)
|
|
Sales and
marketing
|
7,967
|
|
|
17,591
|
|
|
(54.7)
|
|
Aircraft lease
rental
|
3,015
|
|
|
—
|
|
|
NM
|
Other
|
19,755
|
|
|
26,907
|
|
|
(26.6)
|
|
CARES Act grant
recognition
|
(77,909)
|
|
|
—
|
|
|
NM
|
Special
charges
|
33,585
|
|
|
—
|
|
|
NM
|
Total operating
expense
|
234,065
|
|
|
364,393
|
|
|
(35.8)
|
|
OPERATING INCOME
(LOSS)
|
(33,081)
|
|
|
72,116
|
|
|
(145.9)
|
|
OTHER (INCOME)
EXPENSE:
|
|
|
|
|
|
Interest
expense
|
11,943
|
|
|
19,506
|
|
|
(38.8)
|
|
Capitalized
interest
|
—
|
|
|
(903)
|
|
|
NM
|
Interest
income
|
(868)
|
|
|
(3,335)
|
|
|
(74.0)
|
|
Other, net
|
552
|
|
|
(57)
|
|
|
NM
|
Total other
expense
|
11,627
|
|
|
15,211
|
|
|
(23.6)
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
(44,708)
|
|
|
56,905
|
|
|
(178.6)
|
|
INCOME TAX PROVISION
(BENEFIT)
|
(15,565)
|
|
|
12,976
|
|
|
(220.0)
|
|
NET INCOME
(LOSS)
|
$
|
(29,143)
|
|
|
$
|
43,929
|
|
|
(166.3)
|
|
Earnings (loss) per
share attributable to common shareholders(1):
|
|
|
|
|
|
Basic
|
($1.82)
|
|
|
$2.70
|
|
|
(167.4)
|
|
Diluted
|
($1.82)
|
|
|
$2.70
|
|
|
(167.4)
|
|
Weighted average
shares outstanding used in computing earnings per share
attributable to common shareholders(1):
|
|
|
|
|
|
Basic
|
16,006
|
|
|
16,037
|
|
|
(0.2)
|
|
Diluted
|
16,006
|
|
|
16,039
|
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
|
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
|
|
2020
|
|
2019
|
|
change
(1)
|
OPERATING
STATISTICS
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
Passengers
|
2,016,241
|
|
|
3,806,369
|
|
|
(47.0)
|
|
Available seat miles
(ASMs) (thousands)
|
3,521,508
|
|
|
3,888,400
|
|
|
(9.4)
|
|
Airline
operating expense per ASM (CASM) (cents)
|
6.45
|
|
|
9.09
|
|
|
(29.0)
|
|
Adjusted airline
operating expense per ASM (CASM) (cents)
|
7.74
|
|
|
9.09
|
|
|
(14.9)
|
|
Fuel expense per ASM
(cents)
|
1.49
|
|
|
2.69
|
|
|
(44.6)
|
|
Airline operating
CASM, excluding fuel (cents)
|
4.96
|
|
|
6.40
|
|
|
(22.5)
|
|
Adjusted airline
operating CASM, excluding fuel (cents)
|
6.25
|
|
|
6.40
|
|
|
(2.3)
|
|
ASMs per gallon of
fuel
|
88.5
|
|
|
80.3
|
|
|
10.2
|
|
Departures
|
24,365
|
|
|
27,707
|
|
|
(12.1)
|
|
Block hours
|
52,238
|
|
|
59,678
|
|
|
(12.5)
|
|
Average stage length
(miles)
|
834
|
|
|
823
|
|
|
1.3
|
|
Average number of
operating aircraft during period
|
90.7
|
|
|
87.6
|
|
|
3.5
|
|
Average block hours
per aircraft per day
|
6.3
|
|
|
7.4
|
|
|
(14.9)
|
|
Full-time equivalent
employees at end of period
|
4,275
|
|
|
4,267
|
|
|
0.2
|
|
Fuel gallons consumed
(thousands)
|
39,786
|
|
|
48,443
|
|
|
(17.9)
|
|
Average fuel cost per
gallon
|
$
|
1.32
|
|
|
$
|
2.16
|
|
|
(38.9)
|
|
Scheduled service
statistics:
|
|
|
|
|
|
Passengers
|
2,003,648
|
|
|
3,753,611
|
|
|
(46.6)
|
|
Revenue passenger
miles (RPMs) (thousands)
|
1,714,622
|
|
|
3,170,826
|
|
|
(45.9)
|
|
Available seat miles
(ASMs) (thousands)
|
3,449,339
|
|
|
3,687,473
|
|
|
(6.5)
|
|
Load factor
|
49.7
|
%
|
|
86.0
|
%
|
|
(36.3)
|
|
Departures
|
23,710
|
|
|
26,238
|
|
|
(9.6)
|
|
Block hours
|
51,057
|
|
|
56,576
|
|
|
(9.8)
|
|
Total passenger
revenue per ASM (TRASM) (cents)(2)
|
5.60
|
|
|
11.10
|
|
|
(49.5)
|
|
Average fare - total
scheduled service(3)
|
$
|
40.75
|
|
|
$
|
54.20
|
|
|
(24.8)
|
|
Average fare -
air-related charges(3)
|
$
|
50.04
|
|
|
$
|
50.03
|
|
|
—
|
|
Average fare - third
party products
|
$
|
5.66
|
|
|
$
|
4.85
|
|
|
16.7
|
|
Average fare -
total
|
$
|
96.45
|
|
|
$
|
109.08
|
|
|
(11.6)
|
|
Average stage length
(miles)
|
839
|
|
|
824
|
|
|
1.8
|
|
Fuel gallons consumed
(thousands)
|
38,853
|
|
|
46,038
|
|
|
(15.6)
|
|
Average fuel cost per
gallon
|
$
|
1.32
|
|
|
$
|
2.17
|
|
|
(39.2)
|
|
Percent of sales
through website during period
|
92.3
|
%
|
|
93.1
|
%
|
|
(0.8)
|
|
Other
data:
|
|
|
|
|
|
Rental car days
sold
|
255,800
|
|
|
482,944
|
|
|
(47.0)
|
|
Hotel room nights
sold
|
44,655
|
|
|
99,991
|
|
|
(55.3)
|
|
|
|
|
|
|
|
|
|
|
(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.
|
Allegiant Travel
Company
|
Consolidated
Statements of Income
|
(in thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
Percent
|
|
2020
|
|
2019
|
|
change
|
OPERATING
REVENUE:
|
|
|
|
|
|
Passenger
revenue
|
$
|
677,347
|
|
|
$
|
1,265,978
|
|
|
(46.5)
|
|
Third party
products
|
35,756
|
|
|
53,557
|
|
|
(33.2)
|
|
Fixed fee contract
revenue
|
17,440
|
|
|
42,859
|
|
|
(59.3)
|
|
Other
revenue
|
12,969
|
|
|
17,498
|
|
|
(25.9)
|
|
Total operating
revenue
|
743,512
|
|
|
1,379,892
|
|
|
(46.1)
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Salary and
benefits
|
303,264
|
|
|
340,589
|
|
|
(11.0)
|
|
Aircraft
fuel
|
168,711
|
|
|
324,253
|
|
|
(48.0)
|
|
Depreciation and
amortization
|
132,285
|
|
|
114,112
|
|
|
15.9
|
|
Station
operations
|
108,359
|
|
|
128,357
|
|
|
(15.6)
|
|
Maintenance and
repairs
|
48,866
|
|
|
68,470
|
|
|
(28.6)
|
|
Sales and
marketing
|
35,331
|
|
|
59,057
|
|
|
(40.2)
|
|
Aircraft lease
rentals
|
5,404
|
|
|
—
|
|
|
NM
|
Other
|
70,225
|
|
|
73,756
|
|
|
(4.8)
|
|
CARES Act grant
recognition
|
(152,448)
|
|
|
—
|
|
|
NM
|
Special
charges
|
280,852
|
|
|
—
|
|
|
NM
|
Total operating
expense
|
1,000,849
|
|
|
1,108,594
|
|
|
(9.7)
|
|
OPERATING INCOME
(LOSS)
|
(257,337)
|
|
|
271,298
|
|
|
(194.9)
|
|
OTHER (INCOME)
EXPENSE:
|
|
|
|
|
|
Interest
expense
|
44,149
|
|
|
58,531
|
|
|
(24.6)
|
|
Capitalized
interest
|
(4,067)
|
|
|
(3,444)
|
|
|
18.1
|
|
Interest
income
|
(4,596)
|
|
|
(10,038)
|
|
|
(54.2)
|
|
Loss on extinguishment
of debt
|
1,222
|
|
|
3,677
|
|
|
(66.8)
|
|
Special
charges
|
26,632
|
|
|
—
|
|
|
NM
|
Other, net
|
1,173
|
|
|
(41)
|
|
|
NM
|
Total other
expense
|
64,513
|
|
|
48,685
|
|
|
32.5
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
(321,850)
|
|
|
222,613
|
|
|
(244.6)
|
|
INCOME TAX PROVISION
(BENEFIT)
|
(166,595)
|
|
|
51,017
|
|
|
(426.5)
|
|
NET INCOME
(LOSS)
|
$
|
(155,255)
|
|
|
$
|
171,596
|
|
|
(190.5)
|
|
Earnings (loss) per
share attributable to common shareholders(1):
|
|
|
|
|
|
Basic
|
($9.75)
|
|
|
$10.55
|
|
|
(192.4)
|
|
Diluted
|
($9.75)
|
|
|
$10.54
|
|
|
(192.5)
|
|
Weighted average
shares outstanding used in computing earnings per share
attributable to common shareholders(1):
|
|
|
|
|
|
Basic
|
15,953
|
|
|
16,037
|
|
|
(0.5)
|
|
Diluted
|
15,953
|
|
|
16,045
|
|
|
(0.6)
|
|
|
|
|
|
|
|
|
|
|
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
|
|
2020
|
|
2019
|
|
change(1)
|
OPERATING
STATISTICS
|
|
|
|
|
|
Total system
statistics:
|
|
|
|
|
|
Passengers
|
6,464,949
|
|
|
11,426,183
|
|
|
(43.4)
|
|
Available seat miles
(ASMs) (thousands)
|
9,809,934
|
|
|
12,245,704
|
|
|
(19.9)
|
|
Airline operating expense per ASM (CASM)
(cents)
|
8.31
|
|
|
8.78
|
|
|
(5.4)
|
|
Adjusted airline
operating expense per ASM (CASM) (cents)
|
8.66
|
|
|
8.78
|
|
|
(1.4)
|
|
Fuel expense per ASM
(cents)
|
1.72
|
|
|
2.65
|
|
|
(35.1)
|
|
Airline operating
CASM, excluding fuel (cents)
|
6.59
|
|
|
6.13
|
|
|
7.5
|
|
Adjusted airline
operating CASM, excluding fuel (cents)
|
6.94
|
|
|
6.13
|
|
|
13.2
|
|
ASMs per gallon of
fuel
|
87.6
|
|
|
82.2
|
|
|
6.6
|
|
Departures
|
65,766
|
|
|
83,454
|
|
|
(21.2)
|
|
Block hours
|
147,350
|
|
|
187,829
|
|
|
(21.6)
|
|
Average stage length
(miles)
|
862
|
|
|
858
|
|
|
0.5
|
|
Average number of
operating aircraft during period
|
92.1
|
|
|
84.1
|
|
|
9.5
|
|
Average block hours
per aircraft per day
|
5.8
|
|
|
8.2
|
|
|
(29.3)
|
|
Full-time equivalent
employees at end of period
|
4,275
|
|
|
4,267
|
|
|
0.2
|
|
Fuel gallons consumed
(thousands)
|
111,929
|
|
|
148,980
|
|
|
(24.9)
|
|
Average fuel cost per
gallon
|
$
|
1.51
|
|
|
$
|
2.18
|
|
|
(30.7)
|
|
Scheduled service
statistics:
|
|
|
|
|
|
Passengers
|
6,424,331
|
|
|
11,307,004
|
|
|
(43.2)
|
|
Revenue passenger
miles (RPMs) (thousands)
|
5,747,639
|
|
|
9,964,948
|
|
|
(42.3)
|
|
Available seat miles
(ASMs) (thousands)
|
9,588,031
|
|
|
11,800,788
|
|
|
(18.8)
|
|
Load factor
|
59.9
|
%
|
|
84.4
|
%
|
|
(24.5)
|
|
Departures
|
63,877
|
|
|
80,149
|
|
|
(20.3)
|
|
Block hours
|
143,651
|
|
|
180,674
|
|
|
(20.5)
|
|
Total passenger
revenue per ASM (TRASM) (cents)(2)
|
7.44
|
|
|
11.18
|
|
|
(33.5)
|
|
Average fare -
scheduled service(3)
|
$
|
52.12
|
|
|
$
|
60.40
|
|
|
(13.7)
|
|
Average fare -
air-related charges(3)
|
$
|
53.32
|
|
|
$
|
51.56
|
|
|
3.4
|
|
Average fare - third
party products
|
$
|
5.57
|
|
|
$
|
4.74
|
|
|
17.5
|
|
Average fare -
total
|
$
|
111.00
|
|
|
$
|
116.70
|
|
|
(4.9)
|
|
Average stage length
(miles)
|
867
|
|
|
861
|
|
|
0.7
|
|
Fuel gallons consumed
(thousands)
|
109,082
|
|
|
143,433
|
|
|
(23.9)
|
|
Average fuel cost per
gallon
|
$
|
1.50
|
|
|
$
|
2.17
|
|
|
(30.9)
|
|
Percent of sales
through website during period
|
93.2
|
%
|
|
93.4
|
%
|
|
(0.2)
|
|
Other
data:
|
|
|
|
|
|
Rental car days
sold
|
872,382
|
|
|
1,495,502
|
|
|
(41.7)
|
|
Hotel room nights
sold
|
149,431
|
|
|
319,197
|
|
|
(53.2)
|
|
|
|
|
|
|
|
|
|
|
(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.
|
Summary Balance Sheet
Unaudited
(millions)
|
September 30, 2020
(unaudited)
|
|
December 31,
2019
|
|
Percent
Change
|
Unrestricted cash and
investments
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
268.0
|
|
|
$
|
121.9
|
|
|
119.9
|
%
|
Short-term
investments
|
441.8
|
|
|
335.9
|
|
|
31.5
|
|
Long-term
investments
|
—
|
|
|
15.5
|
|
|
NM
|
Total unrestricted
cash and investments
|
709.8
|
|
|
473.3
|
|
|
50.0
|
|
Debt
|
|
|
|
|
|
Current maturities of
long-term debt and finance lease obligations, net of related
costs
|
233.7
|
|
|
173.3
|
|
|
34.9
|
|
Long-term debt and
finance lease obligations, net of current maturities and related
costs
|
1,316.2
|
|
|
1,248.6
|
|
|
5.4
|
|
Total debt
|
1,549.9
|
|
|
1,421.9
|
|
|
9.0
|
|
Debt, net of
liquidity
|
840.1
|
|
|
948.6
|
|
|
(11.4)
|
|
Total Allegiant
Travel Company shareholders' equity
|
711.7
|
|
|
883.6
|
|
|
(19.5)
|
|
Summary Cash Flow
|
Nine Months Ended
September 30,
|
|
Percent
|
Unaudited
(millions)
|
2020
|
|
2019
|
|
Change
|
Cash provided by
operating activities
|
$
|
273.8
|
|
|
$
|
321.4
|
|
|
(14.8)
|
%
|
Changes in air
traffic liability
|
84.1
|
|
|
55.4
|
|
|
51.8
|
|
Changes in working
capital, ex air traffic liability
|
(171.8)
|
|
|
(79.9)
|
|
|
115.0
|
|
Purchase of property
and equipment
|
195.4
|
|
|
350.2
|
|
|
(44.2)
|
|
Cash dividends paid
to shareholders
|
11.4
|
|
|
34.2
|
|
|
(66.7)
|
|
Proceeds from the
issuance of long-term debt
|
272.5
|
|
|
770.4
|
|
|
(64.6)
|
|
Principal payments on
long-term debt & finance lease obligations
|
146.4
|
|
|
670.1
|
|
|
(78.2)
|
|
Daily Cash Burn Reconciliation
Daily cash burn defined as cash from operations less debt and
rent payments and capital expenditure outflows, excluding aircraft
and engine acquisitions. Excludes the impact of the CARES Act
Payroll Support Program funding.
Unaudited
(millions)
|
|
Three Months
Ended
September 30, 2020
|
Cash from
operations
|
|
$
|
(3)
|
|
|
|
Adjustments:
|
|
|
Debt and rent
payments
|
|
48
|
CARES Act payroll
support
|
|
15
|
Federal tax refund received
for net operating losses
|
|
49
|
Rate differential of net
operating loss included in net loss
|
|
(5)
|
Capital expenditures,
excluding airframes and engines
|
|
10
|
Total
adjustments
|
|
117
|
|
|
|
Adjusted cash
burn
|
|
$
|
(120)
|
Days in
period
|
|
92
|
Average daily cash
burn
|
|
$
|
1.3
|
EPS Calculation
The following table sets forth the computation of net income
(loss) per share, on a basic and diluted basis, for the periods
indicated (share count and dollar amounts other than per-share
amounts in table are in thousands):
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Basic:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(29,143)
|
|
|
$
|
43,929
|
|
|
$
|
(155,255)
|
|
|
$
|
171,596
|
|
Less income allocated
to participating securities
|
—
|
|
|
(578)
|
|
|
(236)
|
|
|
(2,441)
|
|
Net income (loss)
attributable to common stock
|
$
|
(29,143)
|
|
|
$
|
43,351
|
|
|
$
|
(155,491)
|
|
|
$
|
169,155
|
|
Earnings (loss) per
share, basic
|
$
|
(1.82)
|
|
|
$
|
2.70
|
|
|
$
|
(9.75)
|
|
|
$
|
10.55
|
|
Weighted-average
shares outstanding
|
16,006
|
|
|
16,037
|
|
|
15,953
|
|
|
16,037
|
|
Diluted:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(29,143)
|
|
|
$
|
43,929
|
|
|
$
|
(155,255)
|
|
|
$
|
171,596
|
|
Less income allocated
to participating securities
|
—
|
|
|
(578)
|
|
|
(236)
|
|
|
(2,440)
|
|
Net income (loss)
attributable to common stock
|
$
|
(29,143)
|
|
|
$
|
43,351
|
|
|
$
|
(155,491)
|
|
|
$
|
169,156
|
|
Earnings (loss) per
share, diluted
|
$
|
(1.82)
|
|
|
$
|
2.70
|
|
|
$
|
(9.75)
|
|
|
$
|
10.54
|
|
Weighted-average
shares outstanding 1
|
16,006
|
|
|
16,037
|
|
|
15,953
|
|
|
16,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2020 and
2019
(Unaudited)
Adjusted operating income (loss), adjusted income (loss) before
income taxes, adjusted net income (loss) and adjusted diluted
earnings (loss) per share, all eliminate the effect of special
expenses, related directly to COVID 19, as well as the benefit
related to the payroll support grant as provided under the CARES
Act, which are not reflective of our ongoing operating performance.
The adjusted diluted earnings (loss) per share also ignores a
one-time tax benefit allowed under the CARES Act. As such,
all of these are non-GAAP financial measures.
In addition, airline operating expense and adjusted airline
operating expense eliminate the effects of non-airline operating
activity, which is not reflective of the airline operating
performance.
EBITDA, as presented in this press release, and the various
adjusted and airline only metrics disclosed, are supplemental
measures of our performance that are not required by, or presented
in accordance with, accounting principles generally accepted in
the United States ("GAAP"). They
are not measurements of our financial performance under GAAP and
should not be considered in isolation or as an alternative to net
income or any other performance measures derived in accordance with
GAAP or as an alternative to cash flows from operating activities
as a measure of our liquidity.
We define "EBITDA" as earnings before interest, taxes,
depreciation and amortization. "Adjusted EBITDA" is EBITDA adjusted
to eliminate the effect of special charges and the CARES Act grant.
We caution investors that amounts presented in accordance with
these definitions may not be comparable to similar measures
disclosed by other issuers, because not all issuers and analysts
calculate EBITDA and Adjusted EBITDA in the same manner.
We use EBITDA and Adjusted EBITDA to evaluate our operating
performance and liquidity and these are among the primary measures
used by management for planning and forecasting of future periods.
We believe the presentation of these measures is relevant and
useful for investors because they allow investors to view results
in a manner similar to the method used by management and makes it
easier to compare our results with other companies that have
different financing and capital structures. EBITDA has important
limitations as an analytical tool. These limitations include the
following:
- EBITDA does not reflect our capital expenditures, future
requirements for capital expenditures or contractual commitments to
purchase capital equipment;
- EBITDA does not reflect interest expense or the cash
requirements necessary to service principal or interest payments on
our debt;
- although depreciation and amortization are non-cash charges,
the assets that we currently depreciate and amortize will likely
have to be replaced in the future, and EBITDA does not reflect the
cash required to fund such replacements; and
- other companies in our industry may calculate EBITDA
differently than we do, limiting its usefulness as a comparative
measure.
Presented below is a quantitative reconciliation of EBITDA to
the most directly comparable GAAP financial performance measure,
which we believe is net income (loss). We believe the presentation
of EBITDA and the various adjusted and airline only measures are
relevant and useful for investors because they allow them to better
gauge the performance of the airline and to compare our results to
other airlines.
In addition to EBITDA and Adjusted EBITDA as defined above, we
have included a separate EBITDA as defined by certain credit
agreements. This measurement of EBITDA adjusts for losses on
impairment, Sunseeker net income/(loss), stock compensation
expense, amortization of debt issuance costs, (gain)/loss on
disposal of assets, tax provision - in excess of cash paid, special
non-recurring items, and other items.
The SEC has adopted rules (Regulation G) regulating the use of
non-GAAP financial measures. Because of our use of non-GAAP
financial measures in this press release to supplement our
consolidated financial statements presented on a GAAP basis,
Regulation G requires us to include in this press release a
presentation of the most directly comparable GAAP measure, which is
operating revenue, operating income (loss), net income (loss),
operating expenses, and diluted earnings (loss) per share and a
reconciliation of the non-GAAP measures to the most comparable GAAP
measure. Our utilization of non-GAAP measurements is not meant
to be considered in isolation or as a substitute for operating
income (loss), net income (loss) or other measures of financial
performance prepared in accordance with GAAP. Our use of these
non-GAAP measures may not be comparable to similarly titled
measures employed by other companies in the airline and travel
industry. The reconciliation of each of these measures to the most
comparable GAAP measure for the periods is indicated below.
Reconciliation of Non-GAAP Financial Measures
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
adjusted operating income (loss) (millions)
|
|
|
|
|
|
|
|
Operating income
(loss) as reported (GAAP)
|
$
|
(33.1)
|
|
|
$
|
72.1
|
|
|
$
|
(257.3)
|
|
|
$
|
271.3
|
|
|
|
|
|
|
|
|
|
CARES Act grant
recognition
|
(77.9)
|
|
|
—
|
|
|
(152.4)
|
|
|
—
|
|
Special
charges
|
33.6
|
|
|
—
|
|
|
280.9
|
|
|
—
|
|
Adjusted operating
income (loss) (1)
|
(77.4)
|
|
|
72.1
|
|
|
(128.8)
|
|
|
271.3
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
adjusted income (loss) before income taxes
(millions)
|
|
|
|
|
|
|
|
Income (loss) before
income taxes as reported (GAAP)
|
$
|
(44.7)
|
|
|
$
|
56.9
|
|
|
$
|
(321.9)
|
|
|
$
|
222.6
|
|
|
|
|
|
|
|
|
|
CARES Act grant
recognition
|
(77.9)
|
|
|
—
|
|
|
(152.4)
|
|
|
—
|
|
Special charges
(operating & non-operating)
|
33.6
|
|
|
—
|
|
|
307.5
|
|
|
—
|
|
Adjusted income
(loss) before income taxes (1)
|
(89.0)
|
|
|
56.9
|
|
|
(166.8)
|
|
|
222.6
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
adjusted net income (loss) (millions) and adjusted earnings (loss)
per share (cents)
|
|
|
|
|
|
|
|
Adjusted income
(loss) before income taxes (per calculation in previous table)
(1)
|
$
|
(89.0)
|
|
|
$
|
56.9
|
|
|
$
|
(166.8)
|
|
|
$
|
222.6
|
|
Provision (benefit)
for income taxes as reported (GAAP)
|
(15.6)
|
|
|
13.0
|
|
|
(166.6)
|
|
|
51.0
|
|
Adjusted provision
(benefit) for income taxes (1) (2)
|
(20.5)
|
|
|
13.0
|
|
|
(38.4)
|
|
|
51.0
|
|
Net income (loss)
adjusted for special items, CARES Act grant, and adjustment to tax
resulting from CARES Act(1)
|
(68.5)
|
|
|
43.9
|
|
|
(128.4)
|
|
|
171.6
|
|
|
|
|
|
|
|
|
|
Diluted shares as
reported (GAAP)
|
16,006
|
|
|
16,039
|
|
|
15,953
|
|
|
16,045
|
|
Diluted earnings
(loss) per share as reported (GAAP)
|
(1.82)
|
|
|
2.70
|
|
|
(9.75)
|
|
|
10.54
|
|
Adjusted fully
diluted earnings (loss) per share(1)
|
(4.28)
|
|
|
2.70
|
|
|
(8.07)
|
|
|
10.54
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
adjusted airline CASM and CASM excluding fuel (millions, unless
otherwise noted)
|
|
|
|
|
|
|
|
Operating expense as
reported (GAAP)
|
$
|
234.1
|
|
|
$
|
364.4
|
|
|
$
|
1,000.8
|
|
|
$
|
1,108.6
|
|
Non-airline operating
expense (1)
|
6.9
|
|
|
10.9
|
|
|
185.7
|
|
|
34.0
|
|
Airline operating
expense
|
227.2
|
|
|
353.5
|
|
|
815.1
|
|
|
1,074.6
|
|
|
|
|
|
|
|
|
|
CARES Act grant
recognition
|
77.9
|
|
|
—
|
|
|
152.4
|
|
|
—
|
|
Airline operating
special charges
|
(32.6)
|
|
|
—
|
|
|
(118.1)
|
|
|
—
|
|
Adjusted airline
operating expense
|
272.5
|
|
|
353.5
|
|
|
849.4
|
|
|
1,074.6
|
|
Fuel expense as
reported
|
52.5
|
|
|
104.6
|
|
|
168.7
|
|
|
324.3
|
|
Adjusted airline
operating expense excluding fuel
|
220.0
|
|
|
248.9
|
|
|
680.7
|
|
|
750.3
|
|
|
|
|
|
|
|
|
|
Available seat miles
(ASMs) (thousands)
|
3,521,508
|
|
|
3,888,400
|
|
|
9,809,934
|
|
|
12,245,704
|
|
|
|
|
|
|
|
|
|
Airline operating
expense per ASM as reported (CASM) (cents)
|
6.45
|
|
|
9.09
|
|
|
8.31
|
|
|
8.78
|
|
Adjusted airline
operating expense per ASM (CASM) (cents)
|
7.74
|
|
|
9.09
|
|
|
8.66
|
|
|
8.78
|
|
|
|
|
|
|
|
|
|
Airline operating
CASM, excluding fuel as reported (cents)
|
4.96
|
|
|
6.40
|
|
|
6.59
|
|
|
6.13
|
|
Adjusted airline
operating CASM, excluding fuel (cents)
|
6.25
|
|
|
6.40
|
|
|
6.94
|
|
|
6.13
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
consolidated EBITDA to EBITDA as defined by certain credit
agreements (millions)
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(29.1)
|
|
|
$
|
43.9
|
|
|
$
|
(155.3)
|
|
|
$
|
171.6
|
|
Interest expense,
net
|
11.1
|
|
|
15.3
|
|
|
35.5
|
|
|
45.0
|
|
Income tax provision
(benefit)
|
(15.6)
|
|
|
13.0
|
|
|
(166.6)
|
|
|
51.0
|
|
Depreciation and
amortization
|
45.3
|
|
|
39.4
|
|
|
132.3
|
|
|
114.1
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
1.2
|
|
|
3.7
|
|
Consolidated EBITDA
(1)
|
11.7
|
|
|
111.6
|
|
|
(152.9)
|
|
|
385.4
|
|
Adjusting items as
defined per credit agreements (3)
|
82.2
|
|
|
5.5
|
|
|
610.3
|
|
|
10.1
|
|
EBITDA as defined by
certain credit agreements (1)
|
93.9
|
|
|
117.1
|
|
|
457.4
|
|
|
395.5
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
consolidated EBITDA to adjusted EBITDA (millions)
|
|
|
|
|
|
|
|
Consolidated EBITDA
(per calculation in previous table)
|
$
|
11.7
|
|
|
$
|
111.6
|
|
|
$
|
(152.9)
|
|
|
$
|
385.4
|
|
|
|
|
|
|
|
|
|
CARES Act grant
recognition
|
(77.9)
|
|
|
—
|
|
|
(152.4)
|
|
|
—
|
|
Special
charges
|
33.6
|
|
|
—
|
|
|
307.5
|
|
|
—
|
|
Adjusted EBITDA
(1)
|
(32.6)
|
|
|
111.6
|
|
|
2.2
|
|
|
385.4
|
|
|
(1) Denotes
non-GAAP figure.
|
(2) Adjusted
income tax for 2020 estimates a 23.0% effective rate
|
(3) Adjusting
items includes the following: loss on impairment, Sunseeker net
income/(loss), 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.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/allegiant-travel-company-third-quarter-2020-financial-results-301162188.html
SOURCE Allegiant Travel Company