Sky Harbour Announces Record Q2 Results, Receives Debt Proposals for $150mm, and Updates on Business Activities and Objectives
Sky Harbour Group (NYSE American: SKYH) reported strong Q2 2024 results, with consolidated revenues increasing 109% year-over-year and 50% quarter-over-quarter. The company improved its net cash used in operating activities to $1.0 million in Q2 2024, down from $4.4 million in Q1 2024. Sky Harbour Capital (Obligated Group) achieved positive cash flow from operating activities of $1.1 million in Q2.
The company announced its 14th campus at Salt Lake City International Airport and increased its expected indoor rentable square footage to 2.4 million square feet. Sky Harbour is evaluating proposals for up to $150 million in new tax-exempt debt to support growth, with indicative fixed interest rates ranging from 4.55% to 5.80%. The company expanded its management team, adding executives in airport operations, construction, and development roles.
Sky Harbour Group (NYSE American: SKYH) ha riportato risultati solidi per il secondo trimestre del 2024, con ricavi consolidati in aumento del 109% rispetto all'anno precedente e del 50% rispetto al trimestre precedente. L'azienda ha migliorato il suo utilizzo di liquidità netta per le attività operative a 1,0 milioni di dollari nel Q2 2024, rispetto ai 4,4 milioni di dollari nel Q1 2024. Sky Harbour Capital (Obligated Group) ha ottenuto un flusso di cassa positivo dalle attività operative di 1,1 milioni di dollari nel secondo trimestre.
L'azienda ha annunciato il suo 14° campus all'aeroporto internazionale di Salt Lake City ed ha aumentato la sua superficie affittabile interna attesa a 2,4 milioni di piedi quadrati. Sky Harbour sta valutando proposte per un massimo di 150 milioni di dollari in nuovo debito esente da tasse per supportare la crescita, con tassi di interesse fissi indicativi che variano dal 4,55% al 5,80%. L'azienda ha ampliato il proprio team di gestione, aggiungendo dirigenti nei ruoli di operazioni aeroportuali, costruzione e sviluppo.
Sky Harbour Group (NYSE American: SKYH) reportó resultados fuertes para el segundo trimestre de 2024, con ingresos consolidados que aumentaron un 109% interanual y un 50% en comparación con el trimestre anterior. La compañía mejoró su efectivo neto utilizado en actividades operativas a 1,0 millones de dólares en el Q2 2024, bajando de 4,4 millones de dólares en el Q1 2024. Sky Harbour Capital (Obligated Group) logró un flujo de caja positivo de 1,1 millones de dólares en el segundo trimestre.
La empresa anunció su 14° campus en el Aeropuerto Internacional de Salt Lake City y aumentó su superficie rentable interior esperada a 2,4 millones de pies cuadrados. Sky Harbour está evaluando propuestas por hasta 150 millones de dólares en nueva deuda exenta de impuestos para apoyar el crecimiento, con tasas de interés fijas indicativas que varían del 4,55% al 5,80%. La compañía amplió su equipo de gestión, añadiendo ejecutivos en operaciones aeroportuarias, construcción y desarrollo.
Sky Harbour Group (NYSE American: SKYH)는 2024년 2분기 강력한 실적을 보고했으며, 연간 기준으로 109%, 분기 기준으로 50% 증가한 통합 수익을 기록했습니다. 이 회사는 2024년 1분기에 440만 달러에서 100만 달러로 운영 활동에 사용한 순 현금을 개선했습니다. Sky Harbour Capital (Obligated Group)는 2분기 운영 활동에서 110만 달러의 긍정적인 현금 흐름을 달성했습니다.
회사는 솔트레이크시티 국제공항의 14번째 캠퍼스를 발표하고 예상 내부 임대 면적을 240만 평방피트로 늘렸습니다. Sky Harbour는 성장을 지원하기 위해 1억 5000만 달러의 새로운 세금 면제 부채 제안을 평가하고 있으며, 고정 이자율은 4.55%에서 5.80% 사이로 예상됩니다. 이 회사는 공항 운영, 건설 및 개발 역할에 임원들을 추가하여 관리 팀을 확장했습니다.
Sky Harbour Group (NYSE American: SKYH) a annoncé des résultats solides pour le deuxième trimestre de 2024, avec des revenus consolidés en hausse de 109% par rapport à l'année précédente et de 50% par rapport au trimestre précédent. L'entreprise a amélioré son utilisation de liquidités nettes pour les activités opérationnelles à 1,0 million de dollars au Q2 2024, en baisse par rapport à 4,4 millions de dollars au Q1 2024. Sky Harbour Capital (Obligated Group) a réalisé un flux de trésorerie positif provenant des activités opérationnelles de 1,1 million de dollars au deuxième trimestre.
La société a annoncé son 14ème campus à l'aéroport international de Salt Lake City et a augmenté sa surface intérieure locative attendue à 2,4 millions de pieds carrés. Sky Harbour évalue des propositions pouvant aller jusqu'à 150 millions de dollars en nouvelle dette exonérée d'impôts pour soutenir la croissance, avec des taux d'intérêt fixes indicatifs allant de 4,55% à 5,80%. L'entreprise a élargi son équipe de direction en ajoutant des dirigeants dans les opérations aéroportuaires, la construction et le développement.
Sky Harbour Group (NYSE American: SKYH) hat starke Ergebnisse für das zweite Quartal 2024 gemeldet, mit konsolidierten Einnahmen, die im Jahresvergleich um 109% und im Quartalsvergleich um 50% gestiegen sind. Das Unternehmen verbesserte seinen Netto-Cashflow aus operativen Tätigkeiten auf 1,0 Millionen US-Dollar im Q2 2024, gesenkt von 4,4 Millionen US-Dollar im Q1 2024. Sky Harbour Capital (Obligated Group) erzielte im zweiten Quartal einen positiven Cashflow aus operativen Tätigkeiten von 1,1 Millionen US-Dollar.
Das Unternehmen kündigte seinen 14. Campus am Flughafen Salt Lake City International an und erhöhte die erwartete innere mietbare Fläche auf 2,4 Millionen Quadratfuß. Sky Harbour prüft Angebote für bis zu 150 Millionen US-Dollar an neuer steuerbefreiter Schulden, um das Wachstum zu unterstützen, mit indikativen festen Zinssätzen von 4,55% bis 5,80%. Das Unternehmen hat sein Management-Team erweitert und Führungskräfte in den Bereichen Flughafenbetriebe, Bau und Entwicklung eingestellt.
- Q2 2024 consolidated revenues increased 109% year-over-year and 50% quarter-over-quarter
- Net cash used in operating activities improved to $1.0 million in Q2 2024 from $4.4 million in Q1 2024
- Sky Harbour Capital (Obligated Group) achieved positive cash flow from operating activities of $1.1 million in Q2 2024
- Strong liquidity with consolidated cash and US Treasuries totaling $149 million as of June 30, 2024
- Increased expected indoor rentable square footage to 2.4 million square feet
- Weighted average revenue run rate at operating campuses is $39 per rentable square foot, exceeding projections by 32%
- Lease renewals and replacements showed a weighted average step-up in total revenue of approximately 20%
- Company still using net cash in operating activities, although improving
Insights
Sky Harbour's Q2 results show impressive growth, with consolidated revenues up
The company's expansion plans are ambitious, with 14 campuses announced and a projected total of 2.4 million square feet of indoor rentable space. The
Sky Harbour's business model of creating a nationwide network of Home-Basing campuses for business aircraft is tapping into a lucrative niche in aviation real estate. The company's success in securing prime locations at major airports and its ability to expand existing footprints are key strengths. The
The addition of experienced executives like Marty Kretchman, David Sherman and Steven Martinez to the management team is a strategic move that should enhance Sky Harbour's ability to scale operations and streamline development processes. This expertise will be important as the company aims to accelerate its growth from six to eight additional ground leases by December 2025. Investors should watch for the timely delivery of the APA, DVT and ADS projects in Q1 2025, as these will be critical in achieving positive operating cash flow.
Sky Harbour's focus on the high-end business aviation market is proving to be a sound strategy. The
The expansion to 14 campuses, including key locations like Salt Lake City International Airport, positions Sky Harbour to capture a significant share of the business aviation infrastructure market. However, the success of this expansion will depend on maintaining high occupancy rates and continuing to attract top-tier clients. The addition of Marty Kretchman, with his extensive experience at Signature Aviation, could be instrumental in driving non-rent revenues and optimizing campus operations. Investors should monitor the company's ability to maintain its premium pricing and high occupancy rates as it rapidly expands its footprint.
SEC 10-Q:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001823587/000143774924026368/ysac20240630_10q.htm
MSRB/EMMA:
https://emma.msrb.org/P21833646-P21405328-P21847437.pdf
Financial Highlights include:
-
2024 Q2 Consolidated Revenues increased
109% as compared to Q2 2023 and50% as compared to Q1 2024 -
Net Cash Used in Operating Activities improved to
$1.0 million $4.4 million $1.2 million -
We are reiterating our guidance of reaching positive operating cash flow on a consolidated basis by the Fall of 2025, driven by the cash flows expected to be generated from the three campuses opening in Q1 2025 in
Denver ,Phoenix andAddison (Dallas area) -
At Sky Harbour Capital (Obligated Group), positive cash flow provided by operating activities reached
$1.1 million ( cash flow used in operating activities during Q2 2023$0.3) million -
Strong liquidity and capital resources as of June 30th, 2024, with consolidated cash and US Treasuries totaling
$149 million
Update on Site Acquisition
-
Salt Lake City International Airport (SLC) is Sky Harbour’s fourteenth campus announcement. The SLC campus joins Sky Harbour campuses now operating at Houston’sSugar Land Regional Airport (SGR),Nashville International Airport (BNA), Miami Opa-Locka Executive Airport (OPF), and San Jose’s Mineta International Airport (SJC); campuses in development at Denver’s Centennial Airport (APA), Phoenix Deer Valley Airport (DVT), Dallas’s Addison Airport (ADS), Chicago Executive Airport (PWK), Sky Harbour’s first threeNew-York -service airports -Bradley International Airport (BDL), Hudson Valley Regional Airport (POU), andStewart International Airport (SWF), Orlando Executive Airport (ORL), Dulles International Airport (IAD); and additional campuses soon to be announced. - In the second quarter, Sky Harbour also succeeded in expanding its footprint at campuses currently in development, thereby increasing the expected indoor rentable square footage of the portfolio to an aggregate projected new total of 2.4 million square feet.
- Having met 2024 guidance of four new ground leases, and with additional announcements pending, Sky Harbour is raising its guidance from six additional ground leases by December 2025 to eight additional ground leases.
Update on Construction and Development Activities
- As reported on our monthly activity reports filed with MSRB/EMMA and available on our website, APA, DVT and ADS are on track for delivery and commencement of operations by Q1 2025. Please see the following link for easy access to the last monthly construction report: https://emma.msrb.org/P21828135-P21401259-P21842974.pdf
- Beyond these three projects, there are ten airport phases now in development. In anticipation of the steep ramp-up in development, the Sky Harbour Development and Construction team was expanded as detailed below.
Update on Leasing Activities
-
The weighted average revenue run rate as of today at Sky Harbour’s four operating campuses is approximately
$39 $29.50 32% . -
Lease renewals and replacements in the past twelve months have exhibited a weighted average step-up in total revenue of approximately
20% . We believe this supports Sky Harbour’s thesis on business aviation inflation rates, particularly at the highest end of the business aviation market.
Expansion of Management Team
Marty Kretchman is joining Sky Harbour as Senior Vice President, Airports, with responsibility for business partnerships, non-rent revenues, and campus operations. Marty’s experience includes more than thirteen years at Signature Aviation and its predecessor company, Landmark Aviation, most recently as a member of Signature’s Executive Leadership Team and Senior Vice President, Operations Planning.
Tal Keinan commented: “Marty’s deep experience and broad aviation network make him the right leader for this role. It is his professionalism, and his innovative, driven spirit, that make him the right fit for Sky Harbour. I am grateful and very excited to welcome Marty to the team.”
Marty Kretchman commented: "Sky Harbour is bringing the right people and approach to a model that business aviation has clearly been waiting for. The opportunity here is immense and I feel fortunate to be joining the team that is going to capture it."
David Sherman has joined Sky Harbour as Vice President of Construction. Dave’s previous experience includes eighteen years at Turner Construction. His mandate includes oversight of Pre-Engineered Metal Building manufacturing, and national construction management.
David Sherman commented: “Sky Harbour has created one of the most exciting real estate opportunities I have seen in my career. It is about people and process now, and we have the team to execute. I am excited to be leading this team and for the opportunity to apply my experience”.
Steven Martinez has joined Sky Harbour as Vice President of Development. Steve brings 23 years of development experience at the Related Companies and Turner Construction Company. His mandate includes the standardization and acceleration of Sky Harbour’s site planning, entitlements, and pre-construction processes.
Tal Keinan commented: “Dave, Steve and their growing team position Sky Harbour for the challenges and the opportunities of development at scale. We are fortunate to have them, and particularly fortunate to have them right now.”
New Loan/Bond Issuance Plans
Sky Harbour is evaluating several proposals from major US financial institutions for the issuance of up to
Sky Harbour CFO, Francisco X. Gonzalez, commented, “Sky Harbour avails itself of every opportunity to secure the lowest cost of capital to fund its aggressive growth in a way that is consistent with protecting or enhancing the credit quality of our outstanding bonds. We are grateful for the market’s continued warm reception and anticipate moving forward with a bond/loan financing in early 2025.”
Sidoti Investor Conference Invitation
We will present and host one-on-one meetings with investors at the Sidoti August Virtual Investor Conference, taking place on August 14-15, 2024. The group presentation will begin at 1:00pm ET on Thursday, August 15th and can be accessed live here: https://sidoti.zoom.us/webinar/register/WN_BwjtPWZPSFewtTuREkkBvA#/registration. Sky Harbour will also host virtual one-on-ones with investors on Wednesday and Thursday, August 14-15, 2024. To register for the presentation or one-on-ones for free, visit www.sidoti.com/events.
About Sky Harbour
Sky Harbour Group Corporation is an aviation infrastructure company developing the first nationwide network of Home-Basing campuses for business aircraft. The company develops, leases, and manages general aviation hangar campuses across
Forward Looking Statements
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, including statements about the financial condition, results of operations, earnings outlook and prospects of SHG, including statements regarding our expectations for future results, our expectations for future ground leases, our expectations on future construction and development activities and lease renewals, and our plans for future financings. When used in this press release, the words “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations of the management of Sky Harbour Group Corporation (the “Company”) as applicable and are inherently subject to uncertainties and changes in circumstances. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. For more information about risks facing the Company, see the Company’s annual report on Form 10-K for the year ended December 31, 2023 and other filings the Company makes with the SEC from time to time. The Company’s statements herein speak only as of the date hereof, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Key Performance Indicators
We use a number of metrics, including weighted average revenue run rate, to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other issuers. These metrics are estimated operating metrics and not projections, nor actual financial results, and are not indicative of current or future performance.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813799940/en/
Sky Harbour Investor Relations: investors@skyharbour.group Attn: Francisco X. Gonzalez
Source: Sky Harbour Group Corporation
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