Allegiant Travel Company Third Quarter 2019 Financial Results
Third quarter 2019 fully diluted earnings per share of $2.70
Third quarter 2019 airline only diluted earnings per share of $3.06(1)
67th consecutive profitable quarter
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 | Percent | Nine Months Ended | Percent | |||||||||||||||
(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 | Percent | Nine Months Ended | Percent | |||||||||||||||
(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: [email protected]
Investor Inquiries: [email protected]
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 | |||||||
(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 | Nine Months Ended | ||||||||||||||
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. |
SOURCE Allegiant Travel Company
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