ALLEGIANT TRAVEL COMPANY FOURTH QUARTER AND FULL YEAR 2021 FINANCIAL RESULTS
Allegiant Travel Company (NASDAQ: ALGT) reported its fourth quarter and full year 2021 financial results, showcasing a significant recovery from previous lows. Total operating revenue reached $496.9 million in Q4, a 101.5% increase year-over-year, with net income of $10.7 million. For 2021, total revenue was $1.7 billion, a 72.5% rise compared to 2020. The airline achieved adjusted earnings per share of $2.04, notably one of the few domestic carriers to post a full-year adjusted profit.
Despite challenges from the Omicron variant and operational disruptions, forward bookings remain strong, indicating a positive outlook.
- Total operating revenue increased 101.5% year-over-year in Q4 2021.
- Achieved adjusted earnings per share of $2.04 for 2021, marking profitability.
- Fourth quarter revenue grew 7.8% compared to Q4 2019.
- Scheduled capacity increased by 8.1% year-over-year against 2019 levels.
- Acquired over 100,000 new cobrand credit cardholders, a record.
- Operational challenges due to the Omicron variant led to cancellations and $23 million in irregular operations expenses.
- Total operating revenue for 2021 was 7.2% below 2019 figures.
LAS VEGAS, Feb. 2, 2022 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the fourth quarter and full year 2021, as well as comparisons to prior years:
Consolidated | Three Months Ended December 31, | Percent Change | |||||||
(unaudited) (in millions, except per share amounts) | 2021 | 2020 | 2019 | YoY | Yo2Y | ||||
Total operating revenue | 101.5 % | 7.8 % | |||||||
Total operating expense | 463.6 | 270.2 | 368.4 | 71.6 | 25.8 | ||||
Operating income (loss) | 33.3 | (23.6) | 92.7 | 241.0 | (64.0) | ||||
Income (loss) before income taxes | 15.1 | (39.2) | 78.6 | 138.6 | (80.7) | ||||
Net income (loss) | 10.7 | (28.8) | 60.5 | 137.1 | (82.3) | ||||
Diluted earnings (loss) per share | 133.0 | (84.1) | |||||||
Twelve Months Ended December 31, | Percent Change | ||||||||
(unaudited) (in millions, except per share amounts) | 2021 | 2020 | 2019 | YoY | Yo2Y | ||||
Total operating revenue | 72.5 % | (7.2) % | |||||||
Total operating expense | 1,444.8 | 1,271.1 | 1,477.0 | 13.7 | (2.2) | ||||
Operating income (loss) | 263.1 | (281.0) | 364.0 | 193.6 | (27.7) | ||||
Income (loss) before income taxes | 196.6 | (361.1) | 301.2 | 154.5 | (34.7) | ||||
Net income (loss) | 151.9 | (184.1) | 232.1 | 182.5 | (34.6) | ||||
Diluted earnings (loss) per share | 175.3 | (39.1) | |||||||
Consolidated - adjusted | Three Months Ended December 31, | Percent Change | |||||||
(unaudited) (in millions, except per share amounts) | 2021 | 2020 | 2019 | YoY | Yo2Y | ||||
Adjusted operating expense (1) (2) | 77.4 % | 22.5 % | |||||||
Adjusted operating income (loss) (1) (2) | 45.7 | (7.8) | 92.7 | 685.9 | (50.7) | ||||
Adjusted income (loss) before income taxes (1) (2) | 27.5 | (23.4) | 78.6 | 217.5 | (65.0) | ||||
Adjusted net income (loss) (1) (2) | 21.3 | (18.0) | 60.5 | 218.3 | (64.8) | ||||
Adjusted diluted earnings (loss) per share (1) (2) | 205.4 | (68.3) | |||||||
Twelve Months Ended December 31, | Percent Change | ||||||||
(unaudited) (in millions, except per share amounts) | 2021 | 2020 | 2019 | YoY | Yo2Y | ||||
Adjusted operating expense (1) (2) | 41.2 % | 8.0 % | |||||||
Adjusted operating income (loss) (1) (2) | 112.2 | (140.1) | 364.0 | 180.1 | (69.2) | ||||
Adjusted income (loss) before income taxes (1) (2) | 45.7 | (193.6) | 301.2 | 123.6 | (84.8) | ||||
Adjusted net income (loss) (1) (2) | 35.1 | (149.1) | 232.1 | 123.5 | (84.9) | ||||
Adjusted diluted earnings (loss) per share (1) (2) | 121.9 | (85.7) | |||||||
(1) | Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, when applicable, and profit sharing bonus accruals |
(2) | Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information |
"We finished the year with adjusted earnings per share(1) of
"As we exited 2021, the operation was challenged by impacts from the Omicron variant. We saw unprecedented crew shortages due to COVID, resulting in cancelled flights during the peak holiday travel season and persisting throughout January. Case counts have started to recede, thus the worst should be behind us. I expect the operation to return to a more normalized state in time for peak March travel. Given the cancellations from Covid, irregular operations expenses were
"Despite the Omicron variant, forward bookings are strong for upcoming peak leisure travel periods. Spring break bookings have been particularly strong. Over the past several months, the booking curve has normalized to its pre-COVID state, and although early, we are beginning to see positive demand trends into early summer. In addition, third-party revenues have outperformed 2019 due primarily to strength with our cobrand credit card program. We acquired more than 100 thousand new cardholders in 2021, a program record. This trend continues in 2022, with January now the program's best month for new cardholder acquisitions.
"The future of Allegiant is bright. We expect to end 2022 with 127 aircraft. All incoming aircraft will have 186 seats, increasing our seats per departure. The recently announced Boeing transaction will increase incremental route opportunities to 1,400, which represents more than ten years of growth. Additionally, progress on Sunseeker is on track to open in early 2023. This project will diversify our ecosystem of travel offerings available to our customers.
"Once again our team members have shown their mettle in the past 90 days. They have been on the front lines in one of the worst periods I have seen with regard to the uncertainty and fear we are all experiencing from Covid. I want to personally thank each and every one of them."
Fourth Quarter 2021 Results
- GAAP income before income taxes of
$15.1 million - Adjusted income before income taxes(1) (2) (3)of
$27.5 million , yielding a pre-tax margin of 5.5 percent - Consolidated EBITDA(2) (3) of
$80.0 million , yielding an EBITDA margin of 16.1 percent - Adjusted EBITDA(1) (2) (3) of
$92.4 million , yielding an adjusted EBITDA margin of 18.6 percent - Total operating revenue was
$496.9 million , up 7.8 percent when compared with the fourth quarter of 2019 - Scheduled capacity up 14.5 percent year over two-year
- Continued sequential improvement in load factor, which came in at 77.1 percent
- Peak holiday travel load factor mirrored levels observed in 2019 for the same time period
- Total average fare - third party products of
$6.90 , up 47.4 percent year over two-year driven primarily by cobrand strength - Adjusted operating CASM, excluding fuel (1) of 7.24 cents, up 7.4 percent when compared with the fourth quarter of 2019, driven primarily by costs related to increased irregular operations
- Expanded the network by adding 13 new routes with one new city, Canton, Ohio, bringing total routes served to 608 and 133 cities
- List of incremental, domestic-route opportunities in excess of 1,400
- Route profile similar to current network structure - roughly 80 percent of opportunities currently have no direct, non-stop competition
- Announced plans for a fully-integrated Commercial Alliance Agreement with Viva Aerobus to expand options for nonstop leisure air travel between the United States and Mexico
- First-of-its-kind alliance between two ultra low-cost carriers
- Partnered with Boeing to purchase 50 737 MAX aircraft, powered by CFM LEAP 1-B engines, with deliveries beginning mid-2023
Full-Year 2021 Results
- GAAP income before income taxes of
$196.6 million - Adjusted income before income taxes(1) (2) (3)of
$45.7 million , yielding a pre-tax margin of 2.7 percent - One of the only domestic carriers to achieve full-year profitability on an adjusted basis
- Consolidated EBITDA of
$444.1 million , yielding an EBITDA margin of 26.0 percent - Adjusted EBITDA of
$293.2 million , yielding an adjusted EBITDA margin of 17.2 percent - Total system capacity increased 8.1 percent when compared with 2019
- Total operating revenue was
$1.7 billion , 7.2 percent below 2019 - Total average fare of
$123.24 , up 4.2 percent from 2019 - Total ancillary average fare of
$64.73 , up 14.2 percent from 2019 driven by air ancillary bundles, website redesign, and increased cobrand activity - Available seat miles per fuel gallon of 85.4, a 3.7 percent improvement from 2019
- Record-setting year for the cobrand program with more than 100 thousand new cardholders acquired
- Ended 2021 with nearly 800 thousand active Allways Rewards members
(1) Adjusted numbers exclude COVID related special charges, the net benefit from the payroll support programs, when applicable, and profit sharing bonus accruals
(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 December 31, 2021 were
$1.2 billion - Received
$116 million in federal tax refunds in October related to 2020 net operating losses - Received
$204 million in payroll support program funds during 2021 $488.2 million in total operating cash inflow for 2021, including payroll support program funds received as well as federal tax refunds related to net operating losses- Total debt at December 31, 2021 was
$1.7 billion - Net debt at December 31, 2021 was
$559.8 million , a 42.5 percent decrease from year-end 2020 - Debt principal payments of
$62 million during the quarter - Full year Interest expense of
$68 million , down 10.9 percent year over two-year - Air traffic liability at December 31, 2021 was
$307 million - Balance related to future scheduled flights is
$240 million - Balance related to travel vouchers issued for future use is
$67 million
Airline Capital Expenditures
- Fourth quarter spend was
$56 million , which included$29 million for the acquisition of two aircraft as well as induction costs and$27 million in other airline capital expenditures - Fourth quarter deferred heavy maintenance spend was
$12 million - Full year 2021 capital expenditures were
$205 million , which included$136 million for the acquisition of seven aircraft and one engine as well as induction costs and$69 million in other airline capital expenditures - Full year deferred heavy maintenance spend was
$61 million
Sunseeker Resort
- Anticipated opening remains unchanged at first quarter 2023
- Total project spend as of December 31, 2021 was
$211 million with$23 million funded by debt and the remaining$188 million funded by Allegiant - Fourth quarter capital expenditures related to the project were
$38 million - 2021 capital expenditures were
$51 million
Guidance, subject to revision | Previous | Current | |
First Quarter 2022 guidance | |||
System ASMs - year over three-year change(1) | 19.0 to | ||
Scheduled Service ASMs - year over three-year change(1) | 19.0 to | ||
Total operating revenue - year over three-year change(1) | 5.0 to | ||
Operating CASM, excluding fuel - year over three-year change(1) | 1.0 to | ||
Fuel cost per gallon | |||
Full year 2022 guidance | |||
Airline CAPEX | |||
Aircraft, engines, induction costs, and pre-delivery deposits (millions) | |||
Capitalized deferred heavy maintenance (millions) | |||
Other airline capital expenditures (millions) | |||
Interest expense (2) | |||
Recurring principal payments | |||
Sunseeker Resorts - Charlotte Harbor Project | |||
Total projected project spend (millions) | |||
Percent of project to be financed | 60 to | ||
Percent of total project spend already funded by Allegiant contributions | 32 to | ||
Percent of project spend remaining – to be funded by Allegiant contributions | 4 to | ||
(1) | Year over three-year percentage changes compare 2022 to 2019 |
(2) | Includes capitalized interest related to pre-delivery deposits on new aircraft as well as the construction of Sunseeker Resorts - Charlotte Harbor |
Aircraft Fleet Plan by End of Period
Aircraft - (seats per AC) | 1Q22 | 2Q22 | 3Q22 | YE22 |
A319 (156 seats) | 35 | 35 | 35 | 35 |
A320 (177 seats) | 22 | 22 | 22 | 22 |
A320 (186 seats) | 56 | 58 | 65 | 70 |
Total | 113 | 115 | 122 | 127 |
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, February 2 to discuss its fourth quarter and full year 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 fleet serves communities across the nation, with base airfares less than half the cost of the average domestic round trip 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, our ability to consummate announced aircraft transactions, number of possible future markets that may be served, the implementation of a joint alliance with Viva Aerobus, 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, the ability to obtain necessary U.S. and Mexican government approvals to implement the announced alliance with Viva Aerobus and to otherwise prepare to offer international service, 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 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 December 31, | Percent Change | ||||||||
2021 | 2020 | 2019 | YoY | Yo2Y | |||||
OPERATING REVENUES: | |||||||||
Passenger | 102.0 % | 8.9 % | |||||||
Third party products | 25,323 | 10,726 | 16,456 | 136.1 | 53.9 | ||||
Fixed fee contracts | 17,241 | 9,425 | 22,199 | 82.9 | (22.3) | ||||
Other | 121 | 1,570 | 5,443 | (92.3) | (97.8) | ||||
Total operating revenues | 496,884 | 246,561 | 461,074 | 101.5 | 7.8 | ||||
OPERATING EXPENSES: | |||||||||
Salary and benefits | 118,918 | 74,561 | 109,859 | 59.5 | 8.2 | ||||
Aircraft fuel | 129,560 | 53,116 | 103,574 | 143.9 | 25.1 | ||||
Station operations | 72,100 | 36,412 | 43,063 | 98.0 | 67.4 | ||||
Depreciation and amortization | 46,941 | 43,982 | 41,740 | 6.7 | 12.5 | ||||
Maintenance and repairs | 29,524 | 15,030 | 23,243 | 96.4 | 27.0 | ||||
Sales and marketing | 21,454 | 8,187 | 19,853 | 162.0 | 8.1 | ||||
Aircraft lease rental | 5,735 | 4,424 | — | 29.6 | — | ||||
Other | 28,246 | 9,050 | 27,090 | 212.1 | 4.3 | ||||
Special charges | 11,074 | 25,447 | — | (56.5) | — | ||||
Total operating expenses | 463,552 | 270,209 | 368,422 | 71.6 | 25.8 | ||||
OPERATING INCOME (LOSS) | 33,332 | (23,648) | 92,652 | 241.0 | (64.0) | ||||
OTHER (INCOME) EXPENSES: | |||||||||
Interest expense | 18,300 | 16,344 | 18,270 | 12.0 | 0.2 | ||||
Interest income | (476) | (913) | (2,485) | 47.9 | 80.8 | ||||
Other, net | 361 | 138 | (1,768) | 161.6 | 120.4 | ||||
Total other expenses | 18,185 | 15,569 | 14,017 | 16.8 | 29.7 | ||||
INCOME (LOSS) BEFORE INCOME TAXES | 15,147 | (39,217) | 78,635 | 138.6 | (80.7) | ||||
INCOME TAX PROVISION (BENEFIT) | 4,444 | (10,379) | 18,113 | 142.8 | (75.5) | ||||
NET INCOME (LOSS) | 137.1 | (82.3) | |||||||
Earnings (loss) per share to common shareholders: | |||||||||
Basic | ( | 133.0 | (84.1) | ||||||
Diluted | ( | 133.0 | (84.1) | ||||||
Weighted average shares outstanding used in | |||||||||
Basic | 17,827 | 16,108 | 16,000 | 10.7 | 11.4 | ||||
Diluted | 17,835 | 16,108 | 16,006 | 10.7 | 11.4 | ||||
(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 December 31, | Percent Change(1) | ||||||||
2021 | 2020 | 2019 | YoY | Yo2Y | |||||
OPERATING STATISTICS | |||||||||
Total system statistics: | |||||||||
Passengers | 3,731,034 | 2,159,035 | 3,585,966 | 72.8 % | 4.0 % | ||||
Available seat miles (ASMs) (thousands) | 4,440,839 | 3,315,599 | 3,928,536 | 33.9 | 13.0 | ||||
Operating expense per ASM (CASM) (cents) | 10.44 | 8.15 | 9.38 | 28.1 | 11.3 | ||||
Adjusted operating expense per ASM (CASM) (cents)(2) | 10.16 | 7.67 | 9.38 | 32.5 | 8.3 | ||||
Fuel expense per ASM (cents) | 2.92 | 1.60 | 2.64 | 82.5 | 10.6 | ||||
Operating CASM, excluding fuel (cents) | 7.52 | 6.55 | 6.74 | 14.8 | 11.6 | ||||
Adjusted operating CASM, excluding fuel (cents)(2) | 7.24 | 6.07 | 6.74 | 19.3 | 7.4 | ||||
ASMs per gallon of fuel | 85.0 | 88.3 | 82.8 | (3.7) | 2.7 | ||||
Departures | 29,193 | 22,189 | 27,088 | 31.6 | 7.8 | ||||
Block hours | 67,047 | 49,500 | 60,684 | 35.4 | 10.5 | ||||
Average stage length (miles) | 865 | 860 | 846 | 0.6 | 2.2 | ||||
Average number of operating aircraft during period | 107.1 | 101.7 | 90.1 | 5.3 | 18.9 | ||||
Average block hours per aircraft per day | 6.8 | 5.9 | 7.3 | 15.3 | (6.8) | ||||
Full-time equivalent employees at end of period | 4,458 | 3,863 | 4,363 | 15.4 | 2.2 | ||||
Fuel gallons consumed (thousands) | 52,224 | 37,549 | 47,461 | 39.1 | 10.0 | ||||
Average fuel cost per gallon | 75.9 | 13.8 | |||||||
Scheduled service statistics: | |||||||||
Passengers | 3,671,032 | 2,129,292 | 3,516,263 | 72.4 | 4.4 | ||||
Revenue passenger miles (RPMs) (thousands) | 3,306,563 | 1,878,831 | 3,073,055 | 76.0 | 7.6 | ||||
Available seat miles (ASMs) (thousands) | 4,288,133 | 3,226,050 | 3,745,031 | 32.9 | 14.5 | ||||
Load factor | 77.1 % | 58.2 % | 82.1 % | 18.9 | (5.0) | ||||
Departures | 27,818 | 21,399 | 25,541 | 30.0 | 8.9 | ||||
Block hours | 64,510 | 48,081 | 57,687 | 34.2 | 11.8 | ||||
Average seats per departure | 175.2 | 173.3 | 171.2 | 1.1 | 2.3 | ||||
Yield (cents) | 6.80 | 6.06 | 7.48 | 12.2 | (9.1) | ||||
Total passenger revenue per ASM (TRASM) (cents)(3) | 11.18 | 7.30 | 11.57 | 53.2 | (3.4) | ||||
Average fare - scheduled service(4) | 14.6 | (6.3) | |||||||
Average fare - air-related charges(4) | 19.8 | 17.4 | |||||||
Average fare - third party products | 36.9 | 47.4 | |||||||
Average fare - total | 18.1 | 6.0 | |||||||
Average stage length (miles) | 876 | 868 | 856 | 0.9 | 2.3 | ||||
Fuel gallons consumed (thousands) | 50,313 | 36,446 | 45,163 | 38.0 | 11.4 | ||||
Average fuel cost per gallon | 77.1 | 13.8 | |||||||
Percent of sales through website during period | 95.6 % | 92.7 % | 93.1 % | 2.9 | 2.5 | ||||
Other data: | |||||||||
Rental car days sold | 314,372 | 259,791 | 426,428 | 21.0 | (26.3) | ||||
Hotel room nights sold | 65,623 | 49,628 | 96,396 | 32.2 | (31.9) | ||||
(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, when applicable, and profit sharing bonus accruals |
(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)
| |||||||||
Twelve Months Ended December 31, | Percent Change | ||||||||
2021 | 2020 | 2019 | YoY | Yo2Y | |||||
OPERATING REVENUES: | |||||||||
Passenger | 75.0 % | (6.2) % | |||||||
Third party products | 86,487 | 46,482 | 70,012 | 86.1 | 23.5 | ||||
Fixed fee contracts | 41,184 | 26,865 | 65,057 | 53.3 | (36.7) | ||||
Other | 1,803 | 14,539 | 22,941 | (87.6) | (92.1) | ||||
Total operating revenues | 1,707,910 | 990,073 | 1,840,965 | 72.5 | (7.2) | ||||
OPERATING EXPENSES: | |||||||||
Salary and benefits | 484,573 | 377,825 | 450,448 | 28.3 | 7.6 | ||||
Aircraft fuel | 440,235 | 221,827 | 427,827 | 98.5 | 2.9 | ||||
Station operations | 243,346 | 144,771 | 171,420 | 68.1 | 42.0 | ||||
Depreciation and amortization | 181,035 | 176,267 | 155,852 | 2.7 | 16.2 | ||||
Maintenance and repairs | 105,943 | 63,895 | 91,713 | 65.8 | 15.5 | ||||
Sales and marketing | 72,742 | 43,517 | 78,910 | 67.2 | (7.8) | ||||
Aircraft lease rental | 21,242 | 9,828 | — | 116.1 | — | ||||
Other | 83,902 | 79,277 | 100,845 | 5.8 | (16.8) | ||||
Payroll Support Programs grant recognition | (202,181) | (152,448) | — | (32.6) | — | ||||
Special charges | 13,998 | 306,299 | — | (95.4) | — | ||||
Total operating expenses | 1,444,835 | 1,271,058 | 1,477,015 | 13.7 | (2.2) | ||||
OPERATING INCOME (LOSS) | 263,075 | (280,985) | 363,950 | 193.6 | (27.7) | ||||
OTHER (INCOME) EXPENSES: | |||||||||
Interest expense | 68,403 | 60,493 | 76,801 | 13.1 | (10.9) | ||||
Interest income | (1,814) | (5,509) | (12,523) | 67.1 | 85.5 | ||||
Loss on extinguishment of debt | 71 | 1,222 | 3,677 | (94.2) | (98.1) | ||||
Special charges | — | 26,632 | — | (100.0) | — | ||||
Other, net | (205) | (2,756) | (5,252) | 92.6 | 96.1 | ||||
Total other expenses | 66,455 | 80,082 | 62,703 | (17.0) | 6.0 | ||||
INCOME (LOSS) BEFORE INCOME TAXES | 196,620 | (361,067) | 301,247 | 154.5 | (34.7) | ||||
INCOME TAX PROVISION (BENEFIT) | 44,767 | (176,974) | 69,130 | 125.3 | (35.2) | ||||
NET INCOME (LOSS) | 182.5 | (34.6) | |||||||
Earnings (loss) per share to common shareholders: | |||||||||
Basic | ( | 175.4 | (39.1) | ||||||
Diluted | ( | 175.3 | (39.1) | ||||||
Weighted average shares outstanding used in | |||||||||
Basic | 17,212 | 15,992 | 16,027 | 7.6 | 7.4 | ||||
Diluted | 17,231 | 15,992 | 16,041 | 7.7 | 7.4 | ||||
(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)
| |||||||||
Twelve Months Ended December 31, | Percent Change(1) | ||||||||
2021 | 2020 | 2019 | YoY | Yo2Y | |||||
OPERATING STATISTICS | |||||||||
Total system statistics: | |||||||||
Passengers | 13,637,405 | 8,623,984 | 15,012,149 | 58.1 % | (9.2) % | ||||
Available seat miles (ASMs) (thousands) | 17,490,571 | 13,125,533 | 16,174,240 | 33.3 | 8.1 | ||||
Operating expense per ASM (CASM) (cents) | 8.26 | 9.68 | 9.13 | (14.7) | (9.5) | ||||
Adjusted operating expense per ASM (CASM) (cents)(2) | 9.12 | 8.61 | 9.13 | 5.9 | (0.1) | ||||
Fuel expense per ASM (cents) | 2.52 | 1.69 | 2.65 | 49.1 | (4.9) | ||||
Operating CASM, excluding fuel (cents) | 5.74 | 7.99 | 6.48 | (28.2) | (11.4) | ||||
Adjusted operating CASM, excluding fuel (cents)(2) | 6.61 | 6.92 | 6.48 | (4.5) | 2.0 | ||||
ASMs per gallon of fuel | 85.4 | 87.8 | 82.3 | (2.7) | 3.7 | ||||
Departures | 117,047 | 87,955 | 110,542 | 33.1 | 5.9 | ||||
Block hours | 264,628 | 196,849 | 248,513 | 34.4 | 6.5 | ||||
Average stage length (miles) | 856 | 862 | 855 | (0.7) | 0.1 | ||||
Average number of aircraft during period | 103.0 | 97.4 | 85.6 | 5.7 | 20.3 | ||||
Average block hours per aircraft per day | 7.0 | 5.9 | 8.0 | 18.6 | (12.5) | ||||
Full-time equivalent employees at end of period | 4,458 | 3,863 | 4,363 | 15.4 | 2.2 | ||||
Fuel gallons consumed (thousands) | 204,689 | 149,479 | 196,442 | 36.9 | 4.2 | ||||
Average fuel cost per gallon | 45.3 | (1.4) | |||||||
Scheduled service statistics: | |||||||||
Passengers | 13,509,544 | 8,553,623 | 14,823,267 | 57.9 | (8.9) | ||||
Revenue passenger miles (RPMs) (thousands) | 11,963,715 | 7,626,470 | 13,038,003 | 56.9 | (8.2) | ||||
Available seat miles (ASMs) (thousands) | 17,027,902 | 12,814,080 | 15,545,818 | 32.9 | 9.5 | ||||
Load factor | 70.3 % | 59.5 % | 83.9 % | 10.8 | (13.6) | ||||
Departures | 113,121 | 85,276 | 105,690 | 32.7 | 7.0 | ||||
Block hours | 256,991 | 191,732 | 238,361 | 34.0 | 7.8 | ||||
Average seats per departure | 174.2 | 172.8 | 171.1 | 0.8 | 1.8 | ||||
Yield (cents) | 6.61 | 5.88 | 7.00 | 12.4 | (5.6) | ||||
Total passenger revenue per ASM (TRASM) (cents)(3) | 9.78 | 7.40 | 11.28 | 32.2 | (13.3) | ||||
Average fare - scheduled service(4) | 11.5 | (5.0) | |||||||
Average fare - air-related charges(4) | 10.0 | 12.3 | |||||||
Average fare - third party products | 17.9 | 35.6 | |||||||
Average fare - total | 11.1 | 4.2 | |||||||
Average stage length (miles) | 862 | 867 | 859 | (0.6) | 0.3 | ||||
Fuel gallons consumed (thousands) | 198,891 | 145,528 | 188,596 | 36.7 | 5.5 | ||||
Average fuel cost per gallon | 43.9 | (2.3) | |||||||
Percent of sales through website during period | 94.7 % | 93.1 % | 93.3 % | 1.6 | 1.5 | ||||
Other data: | |||||||||
Rental car days sold | 1,361,123 | 1,132,173 | 1,921,930 | 20.2 | (29.2) | ||||
Hotel room nights sold | 261,158 | 199,059 | 415,593 | 31.2 | (37.2) | ||||
(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, when applicable, and profit sharing bonus accruals |
(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) | December 31, 2021 (unaudited) | December 31, 2020 | Percent Change | ||
Unrestricted cash and investments | |||||
Cash and cash equivalents | 139.3 % | ||||
Short-term investments | 817.2 | 532.5 | 53.5 | ||
Total unrestricted cash and investments | 1,182.8 | 685.3 | 72.6 | ||
Debt | |||||
Current maturities of long-term debt and finance lease obligations, net of related costs | 130.1 | 217.2 | (40.1) | ||
Long-term debt and finance lease obligations, net of current maturities and related costs | 1,612.5 | 1,441.8 | 11.8 | ||
Total debt | 1,742.6 | 1,659.0 | 5.0 | ||
Debt, net of liquidity | 559.8 | 973.7 | (42.5) | ||
Total Allegiant Travel Company shareholders' equity | 1,223.6 | 699.4 | 74.9 | ||
Summary Cash Flow | |||||
Twelve Months Ended December 31, | Percent | ||||
Unaudited (millions) | 2021 | 2020 | Change | ||
Cash provided by operating activities | 108.1 % | ||||
Changes in air traffic liability | (0.1) | 57.6 | (100.2) | ||
Changes in working capital, ex air traffic liability | 69.7 | (213.9) | 132.6 | ||
Purchase of property and equipment | 255.5 | 281.2 | (9.1) | ||
Cash dividends paid to shareholders | — | 11.4 | (100.0) | ||
Proceeds from the issuance of long-term debt | 281.7 | 428.0 | (34.2) | ||
Principal payments on long-term debt & finance lease obligations | 301.1 | 217.8 | 38.2 | ||
Proceeds from issuance of common stock | 335.1 | — | 100.0 | ||
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 December 31, | Twelve Months Ended December 31, | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Basic: | |||||||
Net income (loss) | |||||||
Less income allocated to participating securities | (163) | — | (2,218) | (236) | |||
Net income (loss) attributable to common stock | |||||||
Earnings (loss) per share, basic | |||||||
Weighted-average shares outstanding | 17,827 | 16,108 | 17,212 | 15,992 | |||
Diluted: | |||||||
Net income (loss) | |||||||
Less income allocated to participating securities | (163) | — | (2,215) | (236) | |||
Net income (loss) attributable to common stock | |||||||
Earnings (loss) per share, diluted | |||||||
Weighted-average shares outstanding (1) | 17,827 | 16,108 | 17,212 | 15,992 | |||
(1) | Dilutive effect of common stock equivalents excluded from the diluted per share calculation is not material. |
Appendix A
Non-GAAP Presentation
Three Months and Year Ended December 31, 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, the net benefit related to the payroll support grants from the U.S. Treasury, when applicable, and profit sharing bonus accruals 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 expenses related directly to COVID 19, the net benefit related to the payroll support grants from the U.S. Treasury, when applicable, and profit sharing bonus accruals. 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;
- other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure; and
- the adjustments we make to EBITDA to determine our Adjusted EBITDA may not be the same adjustments used by other airlines.
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 December 31, | Twelve Months Ended December 31, | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Reconciliation of adjusted operating income | |||||||
Operating income (loss) as reported (GAAP) | |||||||
Net benefit from PSPs (4) | (2.2) | (9.6) | (192.0) | (165.4) | |||
Operating special charges | 11.1 | 25.4 | 14.0 | 306.3 | |||
Bonus accrual | 3.5 | — | 27.1 | — | |||
Adjusted operating income (loss) (1) | 45.7 | (7.8) | 112.2 | (140.1) | |||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Reconciliation of adjusted income (loss) before | |||||||
Income (loss) before income taxes as reported (GAAP) | |||||||
Net benefit from PSPs (4) | (2.2) | (9.6) | (192.0) | (165.4) | |||
Special charges (operating & non-operating) | 11.1 | 25.4 | 14.0 | 332.9 | |||
Bonus accrual | 3.5 | — | 27.1 | — | |||
Adjusted income (loss) before income taxes (1) | 27.5 | (23.4) | 45.7 | (193.6) | |||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Reconciliation of adjusted net income (loss) | |||||||
Adjusted income (loss) before income taxes (1) | |||||||
Provision (benefit) for income taxes as reported (GAAP) | 4.4 | (10.4) | 44.8 | (177.0) | |||
Adjusted provision (benefit) for income taxes (1) (2) | 6.2 | (5.4) | 10.6 | (44.5) | |||
Net income (loss) adjusted for special items, payroll | 21.3 | (18.0) | 35.1 | (149.1) | |||
Diluted shares as reported (GAAP) (thousands) | 17,835 | 16,108 | 17,231 | 15,992 | |||
Diluted earnings (loss) per share as reported (GAAP) | 0.59 | (1.79) | 8.68 | (11.53) | |||
Adjusted fully diluted earnings (loss) per share (1) | 1.18 | (1.12) | 2.04 | (9.33) | |||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Reconciliation of adjusted CASM and CASM | |||||||
Operating expense as reported (GAAP) | |||||||
Net benefit from PSPs (4) | 2.2 | 9.6 | 192.0 | 165.4 | |||
Operating special charges | (11.1) | (25.4) | (14.0) | (306.3) | |||
Bonus accrual | (3.5) | — | (27.1) | — | |||
Adjusted operating expense (1) | 451.2 | 254.4 | 1,595.7 | 1,130.2 | |||
Fuel expense as reported | (129.6) | (53.1) | (440.2) | (221.8) | |||
Adjusted operating expense excluding fuel (1) | 321.6 | 201.3 | 1,155.5 | 908.4 | |||
Available seat miles (ASMs) (thousands) | 4,440,839 | 3,315,599 | 17,490,571 | 13,125,533 | |||
Operating expense per ASM as reported (CASM) (cents) | 10.44 | 8.15 | 8.26 | 9.68 | |||
Adjusted operating expense per ASM (CASM) (cents) | 10.16 | 7.67 | 9.12 | 8.61 | |||
Operating CASM, excluding fuel as reported (cents) | 7.52 | 6.55 | 5.74 | 7.99 | |||
Adjusted operating CASM, excluding fuel (cents) | 7.24 | 6.07 | 6.61 | 6.92 | |||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Reconciliation of consolidated EBITDA to | |||||||
Net income (loss) | |||||||
Interest expense, net | 18.0 | 15.4 | 66.3 | 50.9 | |||
Income tax provision (benefit) | 4.4 | (10.4) | 44.8 | (177.0) | |||
Depreciation and amortization | 46.9 | 44.0 | 181.0 | 176.3 | |||
Loss on debt extinguishment | — | — | 0.1 | 1.2 | |||
Consolidated EBITDA (1) | 80.0 | 20.2 | 444.1 | (132.7) | |||
Adjusting items as defined per credit agreements (3) | 169.1 | 51.4 | 259.8 | 662.3 | |||
EBITDA as defined by certain credit agreements (1) | 249.1 | 71.6 | 703.9 | 529.6 | |||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Reconciliation of consolidated EBITDA to | |||||||
Consolidated EBITDA (per calculation in previous table) (1) | |||||||
Net Benefit from PSP (4) | (2.2) | (9.6) | (192.0) | (165.4) | |||
Operating special charges | 11.1 | 25.4 | 14.0 | 306.3 | |||
Non-operating special charges | — | — | — | 26.6 | |||
Enhanced variable compensation | 3.5 | — | 27.1 | — | |||
Adjusted EBITDA (1) | 92.4 | 36.0 | 293.2 | 34.8 | |||
(1) | Denotes non-GAAP figure |
(2) | Adjusted income tax for 2021 estimates a |
(3) | Adjusting items include the following: loss on impairment, Sunseeker net loss, stock compensation expense, |
(4) | Net benefit from PSPs includes "PSP1", "PSP2", "PSP3", and Employee Retention Credit |
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SOURCE Allegiant Travel Company
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