LAS VEGAS, July 28, 2021 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the second quarter 2021, as well as comparisons to the prior years:

Consolidated

Three Months Ended June 30,


Percent Change

(unaudited) (in millions, except per share amounts)

2021


2020


2019


YoY


Yo2Y

Total operating revenue

$

472.4



$

133.3



$

491.8



254.3



(3.9)


Total operating expense

333.6



246.6



383.7



35.3



(13.1)


Operating income (loss)

138.9



(113.3)



108.1



222.6



28.4


Income (loss) before income taxes

122.6



(146.4)



91.8



183.7



33.5


Net income (loss)

95.0



(93.1)



70.5



202.1



34.7


Diluted earnings (loss) per share

$

5.49



$

(5.85)



$

4.33



193.8



26.8




Six Months Ended June 30,


Percent Change

(unaudited) (in millions, except per share amounts)

2021


2020


2019


YoY


Yo2Y

Total operating revenue

$

751.6



$

542.5



$

943.4



38.5



(20.3)


Total operating expense

588.1



766.8



744.2



(23.3)



(21.0)


Operating income (loss)

163.5



(224.3)



199.2



172.9



(17.9)


Income (loss) before income taxes

131.2



(277.1)



165.7



147.4



(20.8)


Net income (loss)

101.9



(126.1)



127.7



180.8



(20.2)


Diluted earnings (loss) per share

$

6.04



$

(7.93)



$

7.84



176.2



(23.0)



Consolidated - adjusted

Three Months Ended June 30,


Percent Change

(unaudited) (in millions, except per share amounts)

2021


2020


2019


YoY


Yo2Y

Adjusted operating expense (1) (2)

$

378.6



$

239.9



$

383.7



57.8



(1.3)


Adjusted operating income (loss) (1) (2)

93.9



(106.6)



108.1



188.1



(13.1)


Adjusted income (loss) before income taxes (1) (2)

77.6



(119.9)



91.8



164.7



(15.5)


Adjusted net income (loss) (1) (2)

60.0



(94.7)



70.5



163.4



(14.9)


Adjusted diluted earnings (loss) per share (1) (2)

$

3.46



$

(5.96)



$

4.33



158.1



(20.1)




Six Months Ended June 30,


Percent Change

(unaudited) (in millions, except per share amounts)

2021


2020


2019


YoY


Yo2Y

Adjusted operating expense (1) (2)

$

716.7



$

594.0



$

744.2



20.7



(3.7)


Adjusted operating income (loss) (1) (2)

34.9



(51.5)



199.2



167.8



(82.5)


Adjusted income (loss) before income taxes (1) (2)

2.6



(77.7)



165.7



103.3



(98.4)


Adjusted net income (loss) (1) (2)

2.0



(61.4)



127.7



103.3



(98.4)


Adjusted diluted earnings (loss) per share (1) (2)

$

0.12



$

(3.87)



$

7.84



103.1



(98.5)



(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs (PSPs), and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs

(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information

"The second quarter marked the return of leisure demand to pre-pandemic levels," stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. "Earnings per share came in at $5.49 on a year over two-year revenue decline of just 3.9 percent, with total revenue in June exceeding 2019 levels. We made significant progress towards achieving pre-pandemic unit revenues with TRASM of 10.36 cents (on a load factor of 70.8 percent), up 50 percent from the first quarter. The revenue team did an outstanding job optimizing loads and unit revenues during the quarter. This strong revenue performance, coupled with continued cost discipline as evidenced by our adjusted CASM, excluding fuel (3), of 5.86 cents, led to our adjusted operating margin(1) of 20 percent for the quarter.

"These results suggest we are close if not back to 'normal', where we were in the early days of 2020.  We were the first domestic carrier to grow capacity from 2019 levels. Given the reduced operations of the past year, this ramp up came with challenges - delays in infrastructure preparedness at some of our airports, labor constraints, and severe weather. Our operations team has done a great job reacting and adapting to these headwinds. During the third quarter we will continue our growth - capacity will increase nearly 20 percent, year over two-year.

"Last year at this time I stressed the importance of strengthening our liquidity to both weather the storm and position us favorably for growth post-pandemic. The team has done just that. We currently have $1.2 billion of cash on hand, up 79 percent from a year ago. Our total net debt continues to improve at under $400 million, a 52 percent reduction from a year ago. This strong liquidity leaves us well positioned for future growth. The fleet team has executed agreements to acquire 21 additional aircraft since the beginning of the year. These airplanes will all be placed into service by the end of 2022, thus supporting the remainder of this year as well as most of next year's growth plan.

"The next year will be an exciting one for the company. We are preparing the launch of our new loyalty program in the coming months, Allways Rewards. This program will enable us to further enhance the customer experience. We also recently announced a new partnership with Live Nation venues, Ticketmaster and music festivals - kicking off a multi-year, strategic relationship with the world's premier live entertainment company. This partnership will ultimately unlock another layer of leisure offerings, further enhancing a one-stop shop for our customer. Finally, we will continue to grow and expand our network, connecting more customers to world-class vacation destinations.

"I cannot thank our 4,000 team members enough for their continued efforts in supporting growth while prioritizing customer safety. Ramping up the operation the past few months has been a challenge, but our team members continue to work hard to support the operation. I could not be more proud of their efforts."

Second Quarter 2021 Results

  • GAAP earnings per share of $5.49
    • Adjusted earnings per share(1) (2) (3) of $3.46
  • Consolidated EBITDA(2) (3) of $183.3 million yielding an EBITDA margin of 38.8 percent
    • Adjusted EBITDA(1) (2) (3) of $138.3 million yielding an adjusted EBITDA margin of 29.3 percent
  • Total June revenue exceeded June of 2019
  • Total operating revenue was $472.4 million, up 69.3 percent from the first quarter and down 3.9 percent when compared to the second quarter of 2019
    • Sustained yield strength throughout the quarter with yield up 7.8 percent year over two-year on scheduled service capacity increases of 4.5 percent
  • Total average fare of $126.82, up 10.8 percent year over two-year
    • Total ancillary average fare $64.25, up 14.6 percent from 2019 driven primarily by bundled air ancillary offerings, rental car rate strength, and increased cobrand activity
  • TRASM of 10.36 cents, down 5.6 percent year over two-year, and up 50.3 percent from the first quarter 2021
  • Load factor of 70.8%, up nearly 16 percentage points from the first quarter
  • Record-breaking quarter for co-brand activity with June new cardholder acquisitions becoming the highest month in the program's history and the highest month for cardholder spend, beating the prior monthly spend record by more than 40 percent
    • May marked the third highest acquisition of new cardholders in program history
  • Adjusted operating expense(1) (2) (3) of $378.6 million, down 1.3 percent from second quarter 2019 on total system capacity increase of 3.3 percent
    • Adjusted Operating CASM, excluding fuel (3) of 5.86 cents, flat when compared to the second quarter of 2019
  • Adjusted operating margin(1) of 19.9 percent
  • Expanded the network by adding 29 new routes with four new cities and complementary service in Phoenix with the addition of Phoenix Sky Harbor International Airport, bringing total routes served to 596 and 134 cities
  • Ranked number two among US airlines within the 2021 Airline Quality Ranking

(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs
(2) Denotes a non-GAAP financial measure
(3) Refer to the Non-GAAP Presentation section within this document for further information

Balance Sheet, Cash and Liquidity

  • Total cash and investments at June 30, 2021 were $1.2 billion, up from $728 million at March 31, 2021
    • Cash from operations of $237 million, including the benefit from the payroll support program and federal income tax refund of $12 million related to prior period tax net operating losses
      • Adjusted cash from operations of $176 million, which excludes the $49.2 million net benefit from the PSPs, and $12 million federal tax refund
    • Debt principal payments of $48 million during the quarter
      • Includes prepayment of debt secured by five aircraft
    • $65 million used for cash capital expenditures
    • Raised $335 million from issuance of 1.6 million shares at a price of $219 per share during the second quarter
  • Second quarter interest expense of $17 million, down 20 percent year over two-year
  • Expect to receive $136 million in federal tax refunds during the second half of the year related to 2020 net operating losses
  • Air traffic liability at June 30, 2021 was $437 million
    • Balance related to future scheduled flights is $305 million
    • Balance related to travel vouchers issued for future use is $132 million, a 26 percent reduction from March 31, 2021

Capital Expenditures

  • Second quarter capital expenditures related to aircraft, engines and induction costs were $46 million and $19 million in other airline capital expenditures
  • Second quarter capital expenditures related to deferred heavy maintenance were $23 million
  • Executed agreements to acquire 21 incremental aircraft year-to-date

Guidance, subject to revision

Previous

Current




Third Quarter 2021 guidance








System ASMs - year over two-year change(1)



16.0 to 20.0%

Scheduled Service  ASMs - year over two-year change(1)



16.0 to 20.0%





Total operating revenue - year over two-year change (1)



Up 3.5% to 7.5%





Fuel cost per gallon



$

2.11





Full year 2021 guidance








CAPEX




Aircraft, engines and induction costs (millions)


$115 to $125

$115 to $125

Capitalized Airbus deferred heavy maintenance (millions)


$50 to $60

$50 to $60

Other capital expenditures (millions)


$40 to $50

$40 to $50





Interest expense


$65 to $70

$65 to $70

Recurring principal payments(2)


$170 to $180

$170 to $180


(1) Year over two-year percentage changes compare 2021 to 2019

(2) Excludes $111 million of principal repayments related to the maturity of our revolving credit facility and the refinancing of three A320 aircraft during the first quarter 2021

Aircraft Fleet Plan by End of Period

Aircraft - (seats per AC)

2Q21

3Q21

YE21

A319 (156 seats)

35


35


35


A320 (177 seats)

23


23


22


A320 (186 seats)

45


49


51


Total

103


107


108



The table above is provided based on the company's current plans and is subject to change

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, July 28 to discuss its second quarter 2021 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 the people, places and experiences that matter most. 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, revenue and expenses, available seat mile growth, expected capital expenditures, the timing of aircraft acquisitions and retirements, the number of contracted aircraft to be placed in service in the future, 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 payroll support programs, 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 June 30,


Percent Change


2021


2020


2019


YoY


Yo2Y

OPERATING REVENUES:










Passenger

$

443,747



$

116,520



$

454,779



280.8



(2.4)


Third party products

23,001



8,443



18,208



172.4



26.3


Fixed fee contracts

5,134



3,237



12,487



58.6



(58.9)


Other

551



5,147



6,285



(89.3)



(91.2)


   Total operating revenues

472,433



133,347



491,759



254.3



(3.9)


OPERATING EXPENSES:










Salary and benefits

121,906



94,790



113,592



28.6



7.3


Aircraft fuel

109,456



27,358



119,987



300.1



(8.8)


Station operations

57,210



27,405



45,870



108.8



24.7


Maintenance and repairs

22,597



13,032



20,877



73.4



8.2


Depreciation and amortization

44,522



43,296



38,494



2.8



15.7


Sales and marketing

17,632



8,909



20,540



97.9



(14.2)


Aircraft lease rental

5,117



1,427



—



258.6



—


Other

15,501



23,752



24,294



(34.7)



(36.2)


Payroll Support Programs grant recognition

(61,213)



(74,539)



—



17.9



—


Special charges

854



81,169



—



(98.9)



—


   Total operating expenses

333,582



246,599



383,654



35.3



(13.1)


OPERATING INCOME (LOSS)

138,851



(113,252)



108,105



222.6



28.4


OTHER (INCOME) EXPENSES:










Interest income

(500)



(1,417)



(3,502)



64.7



85.7


Interest expense

16,720



14,053



20,942



19.0



(20.2)


Capitalized interest

—



—



(1,038)



—



100.0


Loss on extinguishment of debt

71



—



—



—



—


Special charges

—



19,830



—



(100.0)



—


Other, net

(11)



698



(86)



(101.6)



87.2


   Total other expenses

16,280



33,164



16,316



(50.9)



(0.2)


INCOME (LOSS) BEFORE INCOME TAXES

122,571



(146,416)



91,789



183.7



33.5


INCOME TAX PROVISION (BENEFIT)

27,544



(53,313)



21,246



151.7



29.6


NET INCOME (LOSS)

$

95,027



$

(93,103)



$

70,543



202.1



34.7


Earnings (loss) per share to common shareholders:










Basic

$5.49



($5.85)



$4.33



193.8



26.8


Diluted

$5.49



($5.85)



$4.33



193.8



26.8


Weighted average shares outstanding used in computing earnings per share attributable to common shareholders(1):










Basic

17,064



15,902



16,063



7.3



6.2


Diluted

17,073



15,902



16,069



7.4



6.2



(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 June 30,


Percent Change(1)


2021


2020


2019


YoY


Yo2Y

OPERATING STATISTICS










Total system statistics:










Passengers

3,699,217



1,273,258



4,169,536



190.5



(11.3)


Available seat miles (ASMs) (thousands)

4,594,542



2,220,755



4,447,066



106.9



3.3


Operating expense per ASM (CASM) (cents)

7.26



11.10



8.63



(34.6)



(15.9)


Adjusted operating expense per ASM (CASM) (cents)(2)

8.24



10.80



8.63



(23.7)



(4.5)


Fuel expense per ASM (cents)

2.38



1.23



2.70



93.5



(11.9)


Operating CASM, excluding fuel (cents)

4.88



9.87



5.93



(50.6)



(17.7)


Adjusted operating CASM, excluding fuel (cents)(2)

5.86



9.57



5.93



(38.8)



(1.2)


ASMs per gallon of fuel

84.8



90.0



82.3



(5.8)



3.0


Departures

31,507



15,089



30,547



108.8



3.1


Block hours

69,809



32,989



68,332



111.6



2.2


Average stage length (miles)

838



850



853



(1.4)



(1.8)


Average number of operating aircraft during period

101.8



90.7



85.0



12.2



19.8


Average block hours per aircraft per day

7.5



3.8



8.8



97.4



(14.8)


Full-time equivalent employees at end of period

4,104



4,349



4,179



(5.6)



(1.8)


Fuel gallons consumed (thousands)

54,188



24,664



54,064



119.7



0.2


Average fuel cost per gallon

$

2.02



$

1.11



$

2.22



82.0



(9.0)


Scheduled service statistics:










Passengers

3,680,254



1,266,077



4,131,855



190.7



(10.9)


Revenue passenger miles (RPMs) (thousands)

3,188,215



1,107,534



3,603,076



187.9



(11.5)


Available seat miles (ASMs) (thousands)

4,505,786



2,174,683



4,311,182



107.2



4.5


Load factor

70.8

%


50.9

%


83.6

%


19.9



(12.8)


Departures

30,763



14,683



29,567



109.5



4.0


Block hours

68,334



32,248



66,135



111.9



3.3


Yield (cents)

7.22



4.63



6.70



56.2



7.8


Total passenger revenue per ASM (TRASM) (cents)(3)

10.36



5.75



10.97



80.2



(5.6)


Average fare - scheduled service(4)

$

62.58



$

40.46



$

58.39



54.7



7.2


Average fare - air-related charges(4)

$

58.00



$

51.57



$

51.68



12.5



12.2


Average fare - third party products

$

6.25



$

6.67



$

4.40



(6.3)



42.0


Average fare - total

$

126.82



$

98.70



$

114.47



28.5



10.8


Average stage length (miles)

842



855



853



(1.5)



(1.3)


Fuel gallons consumed (thousands)

53,022



24,124



52,327



119.8



1.3


Average fuel cost per gallon

$

2.01



$

1.08



$

2.22



86.1



(9.5)


Percent of sales through website during period

94.3

%


93.8

%


93.5

%


0.5



0.8


Other data:










Rental car days sold

404,760



135,536



540,960



198.6



(25.2)


Hotel room nights sold

72,701



12,772



114,191



469.2



(36.3)



(1) Except load factor and percent of sales through website, which is percentage point change.

(2) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs

(3) Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis.

(4) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.

 

Allegiant Travel Company

Consolidated Statements of Income        

(in thousands, except per share amounts)

(Unaudited)



Six Months Ended June 30, 2021


Percent Change


2021


2020


2019


YoY


Yo2Y

OPERATING REVENUES:










Passenger

$

700,441



$

495,431



$

874,755



41.4



(19.9)


Third party products

36,622



24,419



35,350



50.0



3.6


Fixed fee contracts

12,827



12,156



23,061



5.5



(44.4)


Other

1,667



10,522



10,215



(84.2)



(83.7)


   Total operating revenues

751,557



542,528



943,381



38.5



(20.3)


OPERATING EXPENSES:










Salary and benefits

239,856



207,436



233,003



15.6



2.9


Aircraft fuel

192,305



116,171



219,670



65.5



(12.5)


Station operations

100,303



68,405



84,835



46.6



18.2


Maintenance and repairs

45,968



34,827



43,701



32.0



5.2


Depreciation and amortization

87,696



86,995



74,676



0.8



17.4


Sales and marketing

29,241



27,364



41,466



6.9



(29.5)


Aircraft lease rental

9,837



2,389



—



311.8



—


Other

33,276



50,468



46,849



(34.1)



(29.0)


Payroll Support Programs grant recognition

(152,971)



(74,539)



—



(105.2)



—


Special charges

2,592



247,267



—



(99.0)



—


   Total operating expenses

588,103



766,783



744,200



(23.3)



(21.0)


OPERATING INCOME (LOSS)

163,454



(224,255)



199,181



172.9



(17.9)


OTHER (INCOME) EXPENSES:










Interest income

(963)



(3,728)



(6,703)



74.2



85.6


Interest expense

33,508



32,206



39,025



4.0



(14.1)


Capitalized interest

—



(4,067)



(2,541)



100.0



100.0


Loss on extinguishment of debt

71



1,222



3,677



(94.2)



(98.1)


Special charges

—



26,632



—



(100.0)



—


Other, net

(404)



623



15



(164.8)



(2,793.3)


   Total other expenses

32,212



52,888



33,473



(39.1)



(3.8)


INCOME (LOSS) BEFORE INCOME TAXES

131,242



(277,143)



165,708



147.4



(20.8)


INCOME TAX PROVISION (BENEFIT)

29,346



(151,030)



38,041



119.4



(22.9)


NET INCOME (LOSS)

$

101,896



$

(126,113)



$

127,667



180.8



(20.2)


Earnings (loss) per share to common shareholders:










Basic

$6.04



($7.93)



$7.85



176.2



(23.1)


Diluted

$6.04



($7.93)



$7.84



176.2



(23.0)


Weighted average shares outstanding used in computing earnings per share attributable to common shareholders(1):










Basic

16,618



15,927



16,037



4.3



3.6


Diluted

16,632



15,927



16,050



4.4



3.6



(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) 



Six Months Ended June 30, 2021


Percent Change(1)


2021


2020


2019


YoY


Yo2Y

OPERATING STATISTICS










Total system statistics:










Passengers

6,033,720



4,448,708



7,619,814



35.6



(20.8)


Available seat miles (ASMs) (thousands)

8,608,531



6,288,427



8,357,304



36.9



3.0


Operating expense per ASM (CASM) (cents)

6.83



12.19



8.90



(44.0)



(23.3)


Adjusted operating expense per ASM (CASM) (cents)(2)

8.33



9.45



8.90



(11.9)



(6.4)


Fuel expense per ASM (cents)

2.23



1.85



2.63



20.5



(15.2)


Operating CASM, excluding fuel (cents)

4.60



10.35



6.27



(55.6)



(26.6)


Adjusted operating CASM, excluding fuel (cents)(2)

6.09



7.60



6.27



(19.9)



(2.9)


ASMs per gallon of fuel

87.3



87.2



83.1



0.1



5.0


Departures

57,191



41,401



55,747



38.1



2.6


Block hours

130,183



95,112



128,151



36.9



1.6


Average stage length (miles)

865



879



876



(1.6)



(1.3)


Average number of aircraft during period

99.5



92.1



82.3



8.0



20.9


Average block hours per aircraft per day

7.2



5.5



8.6



30.9



(16.3)


Full-time equivalent employees at end of period

4,104



4,349



4,179



(5.6)



(1.8)


Fuel gallons consumed (thousands)

98,614



72,143



100,537



36.7



(1.9)


Average fuel cost per gallon

$

1.95



$

1.61



$

2.18



21.1



(10.6)












Scheduled service statistics:










Passengers

6,003,556



4,420,683



7,553,393



35.8



(20.5)


Revenue passenger miles (RPMs) (thousands)

5,354,632



4,033,017



6,794,122



32.8



(21.2)


Available seat miles (ASMs) (thousands)

8,426,876



6,138,692



8,113,315



37.3



3.9


Load factor

63.5

%


65.7

%


83.7

%


(2.2)



(24.1)


Departures

55,710



40,167



53,911



38.7



3.3


Block hours

127,185



92,594



124,098



37.4



2.5


Yield (cents)

6.83



6.28



7.06



8.8



(3.3)


Total passenger revenue per ASM (TRASM) (cents)(3)

8.75



8.47



11.22



—



(22.0)


Average fare - scheduled service(4)

$

60.95



$

57.27



$

63.49



6.4



(4.0)


Average fare - air-related charges(4)

$

55.72



$

54.80



$

52.32



1.7



6.5


Average fare - third party products

$

6.10



$

5.52



$

4.68



10.5



30.3


Average fare - total

$

122.77



$

117.59



$

120.49



4.4



1.9


Average stage length (miles)

869



883



878



(1.6)



(1.0)


Fuel gallons consumed (thousands)

96,329



70,229



97,395



37.2



(1.1)


Average fuel cost per gallon

$

1.92



$

1.60



$

2.18



20.0



(11.9)


Percent of sales through website during period

93.8

%


93.7

%


93.5

%


0.1



0.3


Other data:










Rental car days sold

680,344



616,582



1,012,558



10.3



(32.8)


Hotel room nights sold

128,909



104,776



219,206



23.0



(41.2)



(1) Except load factor and percent of sales through website, which is percentage point change.

(2) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, and profit sharing bonus accruals since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs

(3) Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis.

(4) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.

 

Summary Balance Sheet


Unaudited (millions)

June 30, 2021
(unaudited)


December 31,
2020


Percent
Change

Unrestricted cash and investments






Cash and cash equivalents

$

418.4



$

152.8



173.8


Short-term investments

767.4



532.5



44.1


Total unrestricted cash and investments

1,185.8



685.3



73.0


Debt






Current maturities of long-term debt and finance lease obligations,
net of related costs

144.4



217.2



(33.5)


Long-term debt and finance lease obligations, net of current
maturities and related costs

1,441.1



1,441.8



—


Total debt

1,585.5



1,659.0



(4.4)


Debt, net of liquidity

399.7



973.7



(59.0)


Total Allegiant Travel Company shareholders' equity

1,147.1



699.4



64.0


 

Summary Cash Flow



Six Months Ended June 30,


Percent

Unaudited (millions)

2021


2020


Change

Cash provided by operating activities

$

405.0



$

276.7



46.4


Changes in air traffic liability

129.2



104.8



23.3


Changes in working capital, ex air traffic liability

65.4



(134.1)



148.8


Purchase of property and equipment

134.5



170.7



(21.2)


Cash dividends paid to shareholders

—



11.4



(100.0)


Proceeds from the issuance of long-term debt

106.7



175.7



(39.3)


Principal payments on long-term debt & finance lease obligations

199.6



98.2



103.3


 

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 June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Basic:








Net income (loss)

$

95,027



$

(93,103)



$

101,896



$

(126,113)


Less income allocated to participating securities

(1,285)



—



(1,451)



(236)


Net income (loss) attributable to common stock

$

93,742



$

(93,103)



$

100,445



$

(126,349)


Earnings (loss) per share, basic

$

5.49



$

(5.85)



$

6.04



$

(7.93)


Weighted-average shares outstanding

17,064



15,902



16,618



15,927


Diluted:








Net income (loss)

$

95,027



$

(93,103)



$

101,896



$

(126,113)


Less income allocated to participating securities

(1,284)



—



(1,449)



(236)


Net income (loss) attributable to common stock

$

93,743



$

(93,103)



$

100,447



$

(126,349)


Earnings (loss) per share, diluted

$

5.49



$

(5.85)



$

6.04



$

(7.93)


Weighted-average shares outstanding (1)

17,064



15,902



16,618



15,927



(1) Dilutive effect of common stock equivalents excluded from the diluted per share calculation is not material.

 

Appendix A
Non-GAAP Presentation
Three and Six Months Ended June 30, 2021 and 2020
(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 net benefit related to the payroll support grants from the U.S. Treasury, which are not reflective of our ongoing operating performance. As such, all of these are non-GAAP financial measures.

EBITDA, as presented in this press release, and the various adjusted 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 payroll support grants. 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 measures are relevant and useful for investors because they allow them to better 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 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 June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Reconciliation of adjusted operating income (loss)
(millions)








Operating income (loss) as reported (GAAP)

$

138.9



$

(113.3)



$

163.5



$

(224.3)










Net benefit from PSPs (4)

(55.3)



(74.5)



(140.6)



(74.5)


Operating special charges

0.9



81.2



2.6



247.3


Profit sharing (5)

9.4



—



9.4



—


Adjusted operating income (loss) (1)

93.9



(106.6)



34.9



(51.5)




Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Reconciliation of adjusted income (loss) before
income taxes (millions)








Income (loss) before income taxes as reported (GAAP)

$

122.6



$

(146.4)



$

131.2



$

(277.1)










Net benefit from PSPs (4)

(55.3)



(74.5)



(140.6)



(74.5)


Special charges (operating & non-operating)

0.9



101.0



2.6



273.9


Profit sharing (5)

9.4



—



9.4



—


Adjusted income (loss) before income taxes (1)

77.6



(119.9)



2.6



(77.7)




Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Reconciliation of adjusted net income (loss)
(millions) and adjusted earnings (loss) per share
(cents)








Adjusted income (loss) before income taxes as
reported (GAAP)

$

77.6



$

(119.9)



$

2.6



$

(77.7)


Provision (benefit) for income taxes as reported
(GAAP)

27.5



(53.3)



29.3



(151.0)


Adjusted provision (benefit) for income taxes (1) (2)

17.6



(25.2)



0.6



(16.3)


Net income (loss) adjusted for special items, payroll
support, and adjustments to tax resulting from payroll
support (1)

60.0



(94.7)



2.0



(61.4)










Diluted shares as reported (GAAP)

17,073



15,902



16,632



15,927


Diluted earnings (loss) per share as reported (GAAP)

5.49



(5.85)



6.04



(7.93)


Adjusted fully diluted earnings (loss) per share (1)

3.46



(5.96)



0.12



(3.87)




Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Reconciliation of adjusted CASM and CASM
excluding fuel (millions, unless otherwise noted)








Operating expense as reported (GAAP)

$

333.6



$

246.6



$

588.1



$

766.8










Net benefit from PSPs (4)

55.3



74.5



140.6



74.5


Operating special charges

(0.9)



(81.2)



(2.6)



(247.3)


Profit sharing (5)

(9.4)



—



(9.4)



—


Adjusted operating expense

378.6



239.9



716.7



594.0


Fuel expense as reported

109.5



27.4



192.3



116.2


Adjusted operating expense excluding fuel

269.1



212.5



524.4



477.8










Available seat miles (ASMs) (thousands)

4,594,542



2,220,755



8,608,531



6,288,427










Operating expense per ASM as reported (CASM) (cents)

7.26



11.10



6.83



12.19


Adjusted operating expense per ASM (CASM) (cents)

8.24



10.80



8.33



9.45










Operating CASM, excluding fuel as reported (cents)

4.88



9.87



4.60



10.35


Adjusted operating CASM, excluding fuel (cents)

5.86



9.57



6.09



7.60




Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Reconciliation of consolidated EBITDA to EBITDA
as defined by certain credit agreements (millions)








Net income (loss)

$

95.0



$

(93.1)



$

101.9



$

(126.1)


Interest expense, net

16.2



12.6



32.5



24.4


Income tax provision (benefit)

27.5



(53.3)



29.3



(151.0)


Depreciation and amortization

44.5



43.3



87.7



87.0


Loss on debt extinguishment

0.1



—



0.1



1.2


Consolidated EBITDA (1)

183.3



(90.5)



251.5



(164.5)


Adjusting items as defined per credit agreements (3)

18.6



222.1



41.0



525.0


EBITDA as defined by certain credit agreements (1)

201.9



131.6



292.5



360.5




Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Reconciliation of consolidated EBITDA to adjusted
EBITDA (millions)








Consolidated EBITDA (per calculation in previous table) (1)

$

183.3



$

(90.5)



$

251.5



$

(164.5)










Net Benefit from PSP (4)

(55.3)



(74.5)



(140.6)



(74.5)


Operating special charges

0.9



81.2



2.6



247.3


Non-operating special charges

—



19.8



—



26.6


Profit sharing (5)

9.4



—



9.4



—


Adjusted EBITDA (1)

138.3



(64.0)



122.9



34.9



(1) Denotes non-GAAP figure.

(2) Adjusted income tax for 2021 estimates a 23.0% effective rate

(3) Adjusting items include the following: loss on impairment, Sunseeker net 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.

(4) Net benefit from PSPs includes "PSP3" and top-off from "PSP2"

(5) Profit sharing bonus accruals included as adjustment since the operating margin threshold to accrue these bonuses would not have been met for the six months ended June 30, 2021 without the benefits of the PSPs

 

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SOURCE Allegiant Travel Company