Sun Country Airlines Reports Fourth Quarter and Full Year 2021 Results
Sun Country Airlines Holdings, Inc. (NASDAQ: SNCY) reported its Q4 2021 financial results, ending the year with significant growth. Total revenue for Q4 reached $173 million, a 60.1% increase year-over-year, while FY 2021 revenue totaled $623 million, up 55.2%. Although Q4 showed a net loss of $0.6 million, adjusted earnings per share were $0.10. The company ratified a new pilot agreement and plans to add five new aircraft in 2022. Sun Country expects to see growth in bookings and maintain a lower adjusted cost per available seat mile compared to 2019.
- Total operating revenue increased by 60.1% year-over-year in Q4 2021.
- Adjusted diluted earnings per share was $0.10, improving from a loss of $0.15 in Q4 2020.
- FY 2021 GAAP diluted EPS of $1.31 compared to a loss of $0.08 in FY 2020.
- Ratified a new four-year pilot agreement to attract talent for growth.
- Total liquidity increased by $34 million to $334 million at year-end 2021.
- Q4 2021 net loss of $0.6 million, despite strong revenue growth.
- Fourth quarter total available seat miles decreased by 6% from Q3 2021.
- Cargo revenue down 4% in Q4 2021 due to operational issues over the holiday period.
Q4 2021 GAAP diluted EPS of (
Q4 2021 Adjusted diluted EPS of
FY 2021 GAAP diluted EPS of
FY 2021 Adjusted diluted EPS of
MINNEAPOLIS, Feb. 07, 2022 (GLOBE NEWSWIRE) -- Sun Country Airlines Holdings, Inc. (“Sun Country Airlines”, “Sun Country”, the “Company”) (NASDAQ: SNCY) today reported financial results for its fourth quarter and full year ended December 31, 2021.
“We closed out 2021 in a very strong way,” said Jude Bricker, Chief Executive Officer of Sun Country. “The fourth quarter delivered our 5th consecutive quarter of greater than
Overview of Fourth Quarter and Full Year
| Three Months Ended Dec 31, | |||||||||
| (unaudited) (in millions, except per share amounts) | 2021 | 2020 | % Change | ||||||
| Total operating revenue | $ | 172.6 | $ | 107.8 | 60.1 | ||||
| Operating income (loss) | 10.9 | (4.4 | ) | NM | |||||
| Income (loss) before income tax | 0.2 | (10.3 | ) | NM | |||||
| Net income (loss) | (0.6 | ) | (8.0 | ) | NM | ||||
| Diluted earnings (loss) per share | $ | (0.01 | ) | $ | (0.17 | ) | NM | ||
“NM” stands for not meaningful
| Three Months Ended Dec 31, | |||||||||
| (unaudited) (in millions, except per share amounts) | 2021 | 2020 | % Change | ||||||
| Adjusted operating income (loss) (1) | $ | 14.8 | $ | (3.4 | ) | NM | |||
| Adjusted income (loss) before income tax (1) | 8.0 | (9.2 | ) | NM | |||||
| Adjusted net income (loss) (1) | 6.2 | (7.2 | ) | NM | |||||
| Adjusted diluted earnings (loss) per share (1) | $ | 0.10 | $ | (0.15 | ) | NM | |||
| Twelve Months Ended Dec 31, | |||||||||
| (unaudited) (in millions, except per share amounts) | 2021 | 2020 | % Change | ||||||
| Total operating revenue | $ | 623.0 | $ | 401.5 | 55.2 | ||||
| Operating income | 107.0 | 17.4 | 514.9 | ||||||
| Income (loss) before income tax | 95.4 | (4.7 | ) | NM | |||||
| Net income (loss) | 77.5 | (3.9 | ) | NM | |||||
| Diluted earnings (loss) per share | $ | 1.31 | $ | (0.08 | ) | NM | |||
| Twelve Months Ended Dec 31, | |||||||||
| (unaudited) (in millions, except per share amounts) | 2021 | 2020 | % Change | ||||||
| Adjusted operating income (loss) (1) | $ | 50.5 | $ | (40.2 | ) | NM | |||
| Adjusted income (loss) before income tax (1) | 25.4 | (61.8 | ) | NM | |||||
| Adjusted net income (loss) (1) | 19.8 | (47.9 | ) | NM | |||||
| Adjusted diluted earnings (loss) per share (1) | $ | 0.33 | $ | (1.02 | ) | NM | |||
For the quarter ended December 31, 2021, Sun Country reported a net loss of
“We are very pleased to have produced a
Notable Highlights
- Ratified a new four-year agreement with our pilots that became effective in January 2022, which will serve as a key enabler of Sun Country’s growth plans
- Announced a new five-year agreement with Caesars Entertainment to provide them with two aircraft worth of flying beginning in March 2022
- In January 2022, we entered into letters of intent (LOI) to add five 737-800 aircraft to the Sun Country fleet in 2022. In addition to the two aircraft that were acquired in 2021 with deliveries scheduled in 2022, seven of the eight planned adds for this year have already been identified
- Welcomed Marion Blakey to the Board of Directors
Capacity
The Company continues to grow sensibly through the recovery. Fourth quarter total available seat miles (“ASM”) decreased versus the third quarter of 2021 by
Revenue
For the fourth quarter of 2021, the Company reported total revenue of
Charter service revenue is primarily generated through service provided to collegiate and professional sports teams, the U.S. Department of Defense, casinos, and other customers. In the fourth quarter of 2021, the Company’s charter service revenue was
Cargo revenue consists of revenue earned from flying cargo aircraft under the Air Transportation Services Agreement (“ATSA”) with Amazon. In the fourth quarter of 2021, cargo revenue was
Cost
For the fourth quarter of 2021, total GAAP operating expenses increased only
Balance Sheet and Liquidity
The Company’s net debt(5) at year end 2021 was
Fleet
As of December 31, 2021, the Company operated 36 aircraft in its passenger service fleet, an increase of five from the beginning of 2021. Sun Country has committed to take delivery of two more aircraft in first quarter 2022 and has executed LOI’s for an additional 5 aircraft for delivery in 2022. The Company expects to add eight or more total aircraft to its passenger fleet this year. It continues to operate 12 freighter aircraft in its cargo operation.
Guidance for First Quarter 2022
| Q1 2022 | H/(L) vs Q1 2019 | |
| Total revenue - millions | ||
| Economic fuel cost per gallon | ||
| Adjusted Operating income margin - percentage | (15.5)pp to (11.5)pp | |
| Effective tax rate | ||
| Total system ASMs - millions | 1,900 to 2,000 |
Conference Call & Webcast Details
Sun Country Airlines will host a conference call to discuss its fourth quarter and full year 2021 results at 8:30 a.m. Eastern Time on Tuesday, February 8, 2022. A live broadcast of the conference call will be available via the investor relations section of Sun Country Airlines’ website at https://ir.suncountry.com/news-events/events-and-presentations. The online replay will be available on the same website approximately one hour after the call. The conference call can also be listened to live by dialing 1 (833) 458-0947 (U.S. toll free) or 1 (914) 987-7750 (U.S. toll).
About Sun Country Airlines
Sun Country Airlines is a new breed of hybrid low-cost air carrier that dynamically deploys shared resources across our synergistic scheduled service, charter and cargo businesses. Based in Minnesota, we focus on serving leisure and visiting friends and relatives ("VFR") passengers and charter customers and providing cargo CMI services, with flights throughout the United States and to destinations in Mexico, Central America, Canada, and the Caribbean.
End Notes
1 – See additional details in the tables below in the section titled “Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted EBITDAR and Adjusted EBITDAR Margin”
2 – Total system TRASM = total revenue – cargo revenue / system ASMs
3 – Scheduled service TRASM = scheduled service revenue + ancillary revenue + other revenue / scheduled service ASMs
4 – Adjusted CASM is a non-GAAP measure derived from CASM by excluding fuel costs, Special Items, non-cash management stock compensation expense, costs arising from its cargo operations (starting in 2020 when the Company launched cargo operations), certain commissions, and other costs of selling its vacations product from this measure. See table titled “Reconciliation of CASM to Adjusted CASM”
5 – Net debt = current portion of long-term debt + long-term debt + finance lease obligations + operating lease obligations – cash and cash equivalents
6 – Total liquidity = cash and cash equivalents + amount of undrawn revolver
Contacts
Investor Relations
Chris Allen
651-681-4810
IR@suncountry.com
Media
Jessica Wheeler
651-900-8400
mediarelations@suncountry.com
Forward Looking Statements
This report contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this report, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management, and expected market growth are forward-looking statements. The forward-looking statements are relating to:
- our strategy, outlook and growth prospects;
- our operational and financial targets and dividend policy;
- general economic trends and trends in the industry and markets; and
- the competitive environment in which we operate.
These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.
These forward-looking statements reflect our views with respect to future events as of the date of this report and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this report and, except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this report. We anticipate that subsequent events and developments will cause our views to change. You should read this report completely and with the understanding that our actual future results may be materially different from what we expect. Our forward-looking statements do not reflect the potential impact of any future acquisitions, merger, dispositions, joint ventures, or investments we may undertake. We qualify all of our forward-looking statements by these cautionary statements. Additional information concerning certain factors is contained in the Company’s Securities and Exchange Commission filings, including but not limited to the Company’s Prospectus included in its registration statement on Form S-1, Quarterly Report on Form 10-Q, and Current Reports on Form 8-K.
Non-GAAP Financial Measures
We sometimes use information that is derived from the consolidated financial statements, but that is not presented in accordance with GAAP. We believe these non-GAAP measures provide a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. We believe certain charges included in our operating expenses on a GAAP basis make it difficult to compare our current period results to prior periods as well as future periods and guidance. The tables below show a reconciliation of non-GAAP financial measures used in this document to the most directly comparable GAAP financial measures.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
| Three Months Ended Dec 31, | ||||||||||||
| 2021 | 2020 | % Change | ||||||||||
| Operating Revenues: | ||||||||||||
| Scheduled Service | $ | 77,472 | $ | 33,984 | 128.0 | |||||||
| Charter Service | 38,820 | 37,148 | 4.5 | |||||||||
| Ancillary | 30,611 | 15,801 | 93.7 | |||||||||
| Passenger | 146,902 | 86,932 | 69.0 | |||||||||
| Cargo | 23,344 | 19,317 | 20.8 | |||||||||
| Other | 2,305 | 1,556 | 48.1 | |||||||||
| Total Operating Revenue | 172,552 | 107,807 | 60.1 | |||||||||
| Operating Expenses: | ||||||||||||
| Aircraft Fuel | 38,480 | 14,015 | 174.6 | |||||||||
| Salaries, Wages, and Benefits | 48,392 | 34,718 | 39.4 | |||||||||
| Aircraft Rent | 4,314 | 7,613 | (43.3 | ) | ||||||||
| Maintenance | 9,925 | 12,173 | (18.5 | ) | ||||||||
| Sales and Marketing | 5,658 | 3,447 | 64.1 | |||||||||
| Depreciation and Amortization | 14,916 | 12,455 | 19.8 | |||||||||
| Ground Handling | 7,327 | 4,810 | 52.3 | |||||||||
| Landing Fees and Airport Rent | 11,119 | 8,878 | 25.2 | |||||||||
| Special Items, net | - | (229 | ) | NM | ||||||||
| Other Operating, net | 21,554 | 14,354 | 50.2 | |||||||||
| Total Operating Expenses | 161,685 | 112,234 | 44.1 | |||||||||
| Operating Income | 10,867 | (4,428 | ) | NM | ||||||||
| Non-operating Income (Expense): | ||||||||||||
| Interest Income | 33 | 37 | (10.8 | ) | ||||||||
| Interest Expense | (6,840 | ) | (5,858 | ) | 16.8 | |||||||
| Other, net | (3,881 | ) | (39 | ) | NM | |||||||
| Total Non-operating Income (Expense), net | (10,688 | ) | (5,860 | ) | 82.3 | |||||||
| Income (Loss) before Income Tax | 178 | (10,289 | ) | NM | ||||||||
| Income Tax Expense (Benefit) | 781 | (2,248 | ) | NM | ||||||||
| Net Loss | $ | (602 | ) | $ | (8,042 | ) | NM | |||||
| Net Loss per share to common stockholders: | ||||||||||||
| Basic | $ | (0.01 | ) | $ | (0.17 | ) | NM | |||||
| Diluted | $ | (0.01 | ) | $ | (0.17 | ) | NM | |||||
| Shares used for computation: | ||||||||||||
| Basic | 57,712,097 | 46,806,317 | 23.3 | |||||||||
| Diluted | 57,712,097 | 46,806,317 | 23.3 | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
| Twelve Months Ended Dec 31, | ||||||||||||
| 2021 | 2020 | % Change | ||||||||||
| Operating Revenues: | ||||||||||||
| Scheduled Service | $ | 279,377 | $ | 193,047 | 44.7 | |||||||
| Charter Service | 127,331 | 98,130 | 29.8 | |||||||||
| Ancillary | 117,237 | 68,055 | 72.3 | |||||||||
| Passenger | 523,945 | 359,232 | 45.9 | |||||||||
| Cargo | 91,428 | 36,809 | 148.4 | |||||||||
| Other | 7,642 | 5,445 | 40.3 | |||||||||
| Total Operating Revenue | 623,015 | 401,486 | 55.2 | |||||||||
| Operating Expenses: | ||||||||||||
| Aircraft Fuel | 129,110 | 83,392 | 54.8 | |||||||||
| Salaries, Wages, and Benefits | 178,207 | 141,641 | 25.8 | |||||||||
| Aircraft Rent | 17,653 | 30,989 | (43.0 | ) | ||||||||
| Maintenance | 40,095 | 27,416 | 46.2 | |||||||||
| Sales and Marketing | 22,060 | 16,570 | 33.1 | |||||||||
| Depreciation and Amortization | 55,019 | 48,086 | 14.4 | |||||||||
| Ground Handling | 26,981 | 20,596 | 31.0 | |||||||||
| Landing Fees and Airport Rent | 40,726 | 31,256 | 30.3 | |||||||||
| Special Items, net | (65,456 | ) | (64,563 | ) | 1.4 | |||||||
| Other Operating, net | 71,580 | 48,718 | 46.9 | |||||||||
| Total Operating Expenses | 515,975 | 384,101 | 34.3 | |||||||||
| Operating Income | 107,040 | 17,385 | 515.7 | |||||||||
| Non-operating Income (Expense): | ||||||||||||
| Interest Income | 85 | 377 | (77.5 | ) | ||||||||
| Interest Expense | (26,326 | ) | (22,073 | ) | 19.3 | |||||||
| Other, net | 14,624 | (371 | ) | NM | ||||||||
| Total Non-operating Income (Expense), net | (11,617 | ) | (22,067 | ) | (47.4 | ) | ||||||
| Income before Income Tax | 95,423 | (4,682 | ) | NM | ||||||||
| Income Tax Expense (Benefit) | 17,953 | (778 | ) | NM | ||||||||
| Net Income (Loss) | $ | 77,470 | $ | (3,904 | ) | NM | ||||||
| Net Income (Loss) per share to common stockholders: | ||||||||||||
| Basic | $ | 1.40 | $ | (0.08 | ) | NM | ||||||
| Diluted | $ | 1.31 | $ | (0.08 | ) | NM | ||||||
| Shares used for computation: | ||||||||||||
| Basic | 55,182,811 | 46,806,042 | 17.9 | |||||||||
| Diluted | 59,324,040 | 46,806,042 | 26.7 | |||||||||
Key Operating Statistics
The following table presents key operating statistics and metrics for the three months ended December 31, 2021.
| Three Months Ended Dec 31, | |||||||||
| 2021 | 2020 | % Change | |||||||
| Scheduled service statistics: | |||||||||
| Revenue passenger miles (RPMs) – thousands | 912,238 | 529,747 | 72.2 | ||||||
| Available seat miles (ASMs) – thousands | 1,190,868 | 876,634 | 35.8 | ||||||
| Load factor | 76.6 | % | 60.4 | % | 16.2 pts | ||||
| Revenue passengers carried | 694,965 | 405,495 | 71.4 | ||||||
| Departures | 4,929 | 3,571 | 38.0 | ||||||
| Block hours | 16,164 | 11,571 | 39.7 | ||||||
| Scheduled service TRASM(1) - cents | 9.27 | 5.86 | 58.3 | ||||||
| Average base fare per passenger | $ | 111.48 | $ | 83.81 | 33.0 | ||||
| Ancillary revenue per passenger | $ | 44.05 | $ | 38.97 | 13.0 | ||||
| Fuel gallons - thousands | 12,386 | 8,587 | 44.2 | ||||||
| Charter statistics: | |||||||||
| Departures | 2,057 | 2,101 | (2.1 | ) | |||||
| Block hours | 4,145 | 4,259 | (2.7 | ) | |||||
| Available seats miles (ASMs) - thousands | 257,250 | 279,571 | (8.0 | ) | |||||
| Fuel gallons - thousands | 2,990 | 3,076 | (2.8 | ) | |||||
| Cargo statistics: | |||||||||
| Departures | 3,066 | 2,411 | 27.2 | ||||||
| Block hours | 8,962 | 7,604 | 17.9 | ||||||
| Total system statistics: | |||||||||
| Average passenger aircraft | 34.0 | 31.0 | 9.7 | ||||||
| Passenger aircraft – end of period | 36 | 31 | 16.1 | ||||||
| Cargo aircraft – end of period | 12 | 12 | 0.0 | ||||||
| Available seat miles (ASMs) – thousands | 1,457,855 | 1,161,953 | 25.5 | ||||||
| Departures | 10,121 | 8,122 | 24.6 | ||||||
| Block hours | 29,458 | 23,542 | 25.1 | ||||||
| Daily utilization – hours | 6.6 | 5.6 | 17.3 | ||||||
| Average stage length – miles | 1,138 | 1,109 | 2.6 | ||||||
| Total revenue per ASM (TRASM)(2) - cents | 10.23 | 7.62 | 34.4 | ||||||
| Cost per ASM (CASM) - cents | 11.09 | 9.66 | 14.8 | ||||||
| Adjusted CASM - cents | 6.91 | 7.07 | (2.2 | ) | |||||
| Fuel gallons - thousands | 15,470 | 11,724 | 32.0 | ||||||
| Fuel cost per gallon, excluding derivatives | $ | 2.49 | $ | 1.49 | 67.0 | ||||
| Employees at end of period | 2,181 | 1,699 | 28.4 | ||||||
1 – Scheduled service TRASM = scheduled service revenue + ancillary revenue + other revenue / scheduled service ASMs
2 – Total system TRASM = total revenue – cargo revenue / system ASMs
The following table presents key operating statistics and metrics for the twelve months ended December 31, 2021.
| Twelve Months Ended Dec 31, | |||||||||
| 2021 | 2020 | % Change | |||||||
| Scheduled service statistics: | |||||||||
| Revenue passenger miles (RPMs) – thousands | 3,618,208 | 2,250,974 | 60.7 | ||||||
| Available seat miles (ASMs) – thousands | 4,844,203 | 3,466,240 | 39.8 | ||||||
| Load factor | 74.7 | % | 64.9 | % | 9.8 pts | ||||
| Revenue passengers carried | 2,733,364 | 1,679,242 | 62.8 | ||||||
| Departures | 19,706 | 14,117 | 39.6 | ||||||
| Block hours | 64,584 | 45,988 | 40.4 | ||||||
| Scheduled service TRASM(1) - cents | 8.35 | 7.69 | 8.5 | ||||||
| Average base fare per passenger | $ | 102.21 | $ | 114.96 | (11.1 | ) | |||
| Ancillary revenue per passenger | $ | 42.89 | $ | 40.53 | 5.8 | ||||
| Fuel gallons - thousands | 49,685 | 34,769 | 42.9 | ||||||
| Charter statistics: | |||||||||
| Departures | 7,093 | 5,581 | 27.1 | ||||||
| Block hours | 14,967 | 12,113 | 23.6 | ||||||
| Available seats miles (ASMs) - thousands | 951,086 | 819,855 | 16.0 | ||||||
| Fuel gallons - thousands | 10,729 | 8,820 | 21.6 | ||||||
| Cargo statistics: | |||||||||
| Departures | 11,295 | 4,642 | 143.3 | ||||||
| Block hours | 33,934 | 13,847 | 145.1 | ||||||
| Total system statistics: | |||||||||
| Average passenger aircraft | 32.2 | 31.3 | 3.1 | ||||||
| Passenger aircraft – end of period | 36 | 31 | 16.1 | ||||||
| Cargo aircraft – end of period | 12 | 12 | 0.0 | ||||||
| Available seat miles (ASMs) – thousands | 5,826,827 | 4,311,142 | 35.2 | ||||||
| Departures | 38,317 | 24,518 | 56.3 | ||||||
| Block hours | 114,106 | 72,424 | 57.6 | ||||||
| Daily utilization – hours | 6.8 | 5.1 | 33.1 | ||||||
| Average stage length – miles | 1,183 | 1,179 | 0.4 | ||||||
| Total revenue per ASM (TRASM)(2) - cents | 9.12 | 8.46 | 7.9 | ||||||
| Cost per ASM (CASM) - cents | 8.86 | 8.91 | (0.6 | ) | |||||
| Adjusted CASM - cents | 6.44 | 7.57 | (14.9 | ) | |||||
| Fuel gallons - thousands | 60,739 | 43,844 | 38.5 | ||||||
| Fuel cost per gallon, excluding derivatives | $ | 2.19 | $ | 1.58 | 38.0 | ||||
| Employees at end of period | 2,181 | 1,699 | 28.4 | ||||||
1 – Scheduled service TRASM = scheduled service revenue + ancillary revenue + other revenue / scheduled service ASMs
2 – Total system TRASM = total revenue – cargo revenue / system ASMs
SUMMARY BALANCE SHEET
(Dollars in millions)
(Unaudited – amounts may not recalculate due to rounding)
| 12/31/2021 | 12/31/2020 | % Change | ||||
| Cash and cash equivalents | $ | 309.3 | $ | 62.0 | 398.9 | |
| Other current assets | 66.1 | 64.7 | 2.2 | |||
| Total current assets | 375.4 | 126.7 | 196.3 | |||
| Total property & equipment, net | 573.6 | 414.5 | 38.4 | |||
| Other | 427.6 | 512.0 | (16.5 | ) | ||
| Total assets | 1,376.6 | 1,053.3 | 30.7 | |||
| Air traffic liabilities | 118.6 | 101.1 | 17.3 | |||
| Current finance lease obligations | 11.7 | 11.5 | 1.7 | |||
| Current operating lease obligations | 17.2 | 34.5 | (50.1 | ) | ||
| Current maturities of long-term debt | 29.4 | 26.1 | 12.6 | |||
| Other current liabilities | 104.8 | 80.5 | 34.7 | |||
| Total current liabilities | 281.7 | 253.7 | 12.5 | |||
| Finance lease obligations | 180.5 | 95.7 | 88.6 | |||
| Operating lease obligations | 58.8 | 112.7 | (47.8 | ) | ||
| Long-term debt | 248.0 | 256.3 | (3.2 | ) | ||
| Income tax receivable agreement | 98.8 | 0 | NM | |||
| Other | 22.0 | 51.1 | (64.4 | ) | ||
| Total liabilities | 889.8 | 769.5 | 15.6 | |||
| Total stockholders equity | $ | 486.8 | $ | 283.8 | 71.5 | |
SUMMARY CASH FLOW
(Dollars in millions)
(Unaudited - amounts may not recalculate due to rounding)
| Twelve Months Ended Dec 31, | ||||||||
| 2021 | 2020 | % Change | ||||||
| Net cash provided by operating activities | $ | 152.0 | $ | 0.4 | NM | |||
| Purchases of property & equipment | (116.3 | ) | (96.3 | ) | 20.8 | |||
| Other | (0.7 | ) | 0.3 | NM | ||||
| Net cash used in investing activities | (117.0 | ) | (96.0 | ) | 21.9 | |||
| Cash received from stock offering | 235.9 | 0.0 | NM | |||||
| Proceeds from borrowing | 80.5 | 265.3 | (69.7 | ) | ||||
| Repayment of finance lease obligations | (11.9 | ) | (89.7 | ) | (86.7 | ) | ||
| Repayment of borrowings | (85.4 | ) | (69.9 | ) | 22.2 | |||
| Other | (6.7 | ) | (4.2 | ) | 59.5 | |||
| Net cash provided by financing activities | 212.4 | 101.5 | 109.3 | |||||
| Change in cash | 247.4 | 5.9 | NM | |||||
| Cash and equivalents and restricted cash – beginning of the period | 70.4 | 64.5 | 9.1 | |||||
| Cash and equivalents and restricted cash – end of the period | $ | 317.8 | $ | 70.4 | 351.4 | |||
Calculation of Special Items
Dollars in millions – Unaudited - amounts may not recalculate due to rounding
The following tables lists the items that are included as Special Items, net.
| Three Months Ended Dec 31, | ||||||
| 2021 | 2020 | |||||
| CARES Act employee retention credit (1) | $ | - | $ | (0.2 | ) | |
| Total special items, net | $ | - | $ | (0.2 | ) | |
(1) The CARES Act Employee Retention credit relates to a refundable tax credit against certain employee taxes.
| Twelve Months Ended Dec 31, | |||||||
| 2021 | 2020 | ||||||
| CARES Act grant recognition (1) | $ | (71.6 | ) | $ | (62.3 | ) | |
| CARES Act employee retention credit (2) | (0.8 | ) | (2.3 | ) | |||
| Aircraft lease buy-out expense (3) | 7.0 | - | |||||
| Other | - | - | |||||
| Total special items, net | $ | (65.5 | ) | $ | (64.6 | ) | |
(1) The CARES Act grant recognition relates to grants received under the Payroll Support Program
(2) The CARES Act Employee Retention credit relates to a refundable tax credit against certain employment taxes.
(3) Six aircraft were purchased in 2021 that were previously under operating leases. Aircraft lease buy-out expense represents the net impact of the transactions, including the associated lease termination costs, write-off of previously capitalized maintenance deposits, and the write-off of over-market liabilities
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted EBITDAR and Adjusted EBITDAR Margin
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, and Adjusted Net Income are non-GAAP measures included as supplemental disclosure because we believe they are useful indicators of our operating performance. Derivations of operating income and net income are well recognized performance measurements in the airline industry that are frequently used by our management, as well as by investors, securities analysts and other interested parties in comparing the operating performance of companies in our industry. Adjusted EBITDAR and Adjusted EBITDAR Margin is a non-GAAP measure included as supplemental disclosure because we believe it is a valuation measure commonly used by investors, securities analysts and other interested parties in the industry to compare airline companies and derive valuation estimates without consideration of airline capital structure or aircraft ownership methodology. We believe that while items excluded from Adjusted EBITDAR and Adjusted EBITDAR Margin may be recurring in nature and should not be disregarded in evaluation of our earnings performance, Adjusted EBITDAR and Adjusted EBITDAR Margin is useful because its calculation isolates the effects of financing in general, the accounting effects of capital spending and acquisitions (primarily aircraft, which may be acquired directly, directly subject to acquisition debt, by finance lease or by operating lease, each of which is presented differently for accounting purposes), and income taxes, which may vary significantly between periods and for different companies for reasons unrelated to overall operating performance. Adjusted EBITDAR and Adjusted EBITDAR Margin should not be viewed as a measure of overall performance or considered in isolation or as an alternative to net income because it excludes aircraft rent, which is a normal, recurring cash operating expense that is necessary to operate our business. We have historically incurred substantial rent expense due to our legacy fleet of operating leased aircraft, which are currently being transitioned to owned and finance leased aircraft.
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted EBITDAR and Adjusted EBITDAR Margin have limitations as analytical tools. Some of the limitations applicable to these measures include: Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted EBITDAR and Adjusted EBITDAR Margin do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; Adjusted EBITDAR and Adjusted EBITDAR Margin does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; Adjusted EBITDAR and Adjusted EBITDAR Margin does not reflect changes in, or cash requirements for, our working capital needs; they do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt; although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDAR and Adjusted EBITDAR Margin does not reflect any cash requirements for such replacements; and other companies in our industry may calculate Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted EBITDAR and Adjusted EBITDAR Margin differently than we do, limiting each measure’s usefulness as a comparative measure. Because of these limitations, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted EBITDAR and Adjusted EBITDAR Margin should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP.
As derivations of Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted EBITDAR and Adjusted EBITDAR Margin are not determined in accordance with GAAP, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, derivations of net income, including Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted EBITDAR and Adjusted EBITDAR Margin, as presented may not be directly comparable to similarly titled measures presented by other companies. For the foregoing reasons, each of Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted EBITDAR and Adjusted EBITDAR Margin has significant limitations which affect its use as an indicator of our profitability and valuation. Accordingly, you are cautioned not to place undue reliance on this information.
Reconciliation of Adjusted Operating Income (Loss) to GAAP Operating Income (Loss)
Dollars in millions – Unaudited - amounts may not recalculate due to rounding
The following table presents the reconciliation of adjusted operating income (loss) to GAAP operating income (loss).
| Three Months Ended Dec 31, | ||||||
| 2021 | 2020 | |||||
| Operating revenue | $ | 172.6 | $ | 107.8 | ||
| Operating income (loss) | 10.9 | (4.4 | ) | |||
| Special items, net (1) | - | (0.2 | ) | |||
| Stock compensation expense | 1.0 | 0.9 | ||||
| Voluntary leave expense (2) | - | 0.5 | ||||
| Other adjustments(3) | 3.0 | - | ||||
| Adjusted operating income (loss) | $ | 14.8 | $ | (3.4 | ) | |
| Operating income (loss) margin | 6.3 | % | (4.1 | %) | ||
| Adjusted operating income (loss) margin | 8.6 | % | (3.1 | %) | ||
(1) See special items table above for more details
(2) This represents expenses related to a voluntary employee leave program in response to the COVID-19 pandemic, a portion of which is offset by the CARES Act Payroll Support Program as the benefit of this program is also adjusted as a component of Special Items, net
(3) Other adjustments include an adjustment to record the impact on pilot vacation pay resulting from the new pilot labor contract
Reconciliation of Adjusted Operating Income (Loss) to GAAP Operating Income
Dollars in millions – Unaudited - amounts may not recalculate due to rounding
The following table presents the reconciliation of adjusted operating income (loss) to GAAP operating income.
| Twelve Months Ended Dec 31, | ||||||
| 2021 | 2020 | |||||
| Operating revenue | $ | 623.0 | $ | 401.5 | ||
| Operating income | 107.0 | 17.4 | ||||
| Special items, net (1) | (65.5 | ) | (64.6 | ) | ||
| Stock compensation expense | 5.6 | 2.1 | ||||
| Voluntary leave expense (3) | - | 4.9 | ||||
| Other adjustments(4) | 3.0 | - | ||||
| Tax receivable agreement expense(2) | 0.3 | - | ||||
| Adjusted operating income (loss) | $ | 50.5 | $ | (40.2 | ) | |
| Operating income margin | 17.2 | % | 4.3 | % | ||
| Adjusted operating income (loss) margin | 8.1 | % | (10.0 | %) | ||
(1) See special items table above for more details
(2) This represents the one-time costs to establish the Tax Receivable Agreement with our pre-IPO stockholders
(3) This represents expenses related to a voluntary employee leave program in response to the COVID-19 pandemic, a portion of which is offset by the CARES Act Payroll Support Program as the benefit of this program is also adjusted as a component of Special Items, net
(4) Other adjustments include an adjustment to record the impact on pilot vacation pay resulting from the new pilot labor contract
Reconciliation of Adjusted Income Before Income (Loss)Tax to GAAP Income (Loss) Before Income Tax
Dollars in millions – Unaudited - amounts may not recalculate due to rounding
The following table presents the reconciliation of adjusted income (loss) before income tax to GAAP income (loss) before income tax.
| Three Months Ended Dec 31, | ||||||
| 2021 | 2020 | |||||
| Net loss | $ | (0.6 | ) | $ | (8.0 | ) |
| Add: Provision for income tax expense (benefit) | 0.8 | (2.2 | ) | |||
| Income (loss) before income tax, as reported | 0.2 | (10.3 | ) | |||
| Pre-tax margin | 0.1 | % | (9.5 | %) | ||
| Special items, net (1) | - | (0.2 | ) | |||
| Stock compensation expense | 1.0 | 0.9 | ||||
| Voluntary leave expense (2) | - | 0.5 | ||||
| Secondary offering related expense | 0.5 | - | ||||
| Tax receivable agreement adjustment (3) | 3.4 | - | ||||
| Other adjustments(4) | 3.0 | - | ||||
| Adjusted income (loss) before income tax | $ | 8.0 | $ | (9.2 | ) | |
| Adjusted Pre-tax margin | 4.7 | % | (8.5 | %) | ||
(1) See special items table above for more details
(2) This represents expenses related to a voluntary employee leave program in response to the COVID-19 pandemic, a portion of which is offset by the CARES Act Payroll Support Program as the benefit of this program is also adjusted as a component of Special Items, net
(3) This represents the adjustment to the TRA for the period, which is recorded in Non-operating Income (Expense)
(4) Other adjustments include an adjustment to record the impact on pilot vacation pay resulting from the new pilot labor contract
Reconciliation of Adjusted Income (Loss) Before Income Tax to GAAP Income (Loss) Before Income Tax
Dollars in millions – Unaudited - amounts may not recalculate due to rounding
The following table presents the reconciliation of adjusted income (loss) before income tax to GAAP income (loss) before income tax.
| Twelve Months Ended Dec 31, | ||||||
| 2021 | 2020 | |||||
| Net income (loss) | $ | 77.5 | $ | (3.9 | ) | |
| Add: Provision for income tax expense (benefit) | 18.0 | (0.8 | ) | |||
| Income (loss) before income tax, as reported | 95.4 | (4.7 | ) | |||
| Pre-tax margin | 15.3 | % | (1.2 | %) | ||
| Special items, net (1) | (65.5 | ) | (64.6 | ) | ||
| Stock compensation expense | 5.6 | 2.1 | ||||
| Loss on asset transactions, net | - | 0.4 | ||||
| Early pay-off of US Treasury loan | 0.8 | - | ||||
| Tax receivable agreement expense (2) | 0.3 | - | ||||
| Tax receivable agreement adjustment (3) | (16.4 | ) | - | |||
| Loss on refinancing credit facility | 0.4 | - | ||||
| Voluntary leave expense (4) | - | 4.9 | ||||
| Secondary offering related expense | 1.8 | - | ||||
| Other adjustments(5) | 3.0 | - | ||||
| Adjusted income (loss) before income tax | $ | 25.4 | $ | (61.8 | ) | |
| Adjusted Pre-tax margin | 4.1 | % | (15.4 | %) | ||
(1) See special items table above for more details
(2) This represents the one-time costs to establish the Tax Receivable Agreement (“TRA”) with our pre-IPO stockholders
(3) This represents the adjustment to the TRA for the period, which is recorded in Non-operating Income (Expense)
(4) This represents expenses related to a voluntary employee leave program in response to the COVID-19 pandemic, a portion of which is offset by the CARES Act Payroll Support Program as the benefit of this program is also adjusted as a component of Special Items, net
(5) Other adjustments include an adjustment to record the impact on pilot vacation pay resulting from the new pilot labor contract
Reconciliation of Adjusted Net Income (Loss) and Adjusted Earnings per Share to GAAP Net Loss
Dollars and shares in millions, except for per share – Unaudited - amounts may not recalculate due to rounding
The following table presents the reconciliation of adjusted net income (loss) and adjusted earnings per share to GAAP net loss.
| Three Months Ended Dec 31, | ||||||
| 2021 | 2020 | |||||
| Net loss | $ | (0.6 | ) | $ | (8.0 | ) |
| Net loss per share – diluted | $ | (0.01 | ) | $ | (0.17 | ) |
| Special items, net (1) | - | (0.2 | ) | |||
| Stock compensation expense | 1.0 | 0.9 | ||||
| Voluntary leave expense (2) | - | 0.5 | ||||
| Secondary offering costs | 0.5 | - | ||||
| Tax receivable agreement adjustment (3) | 3.4 | - | ||||
| Other adjustments(4) | 3.0 | - | ||||
| Income tax effect of adjusting items, net (5) | (1.0 | ) | (0.3 | ) | ||
| Adjusted net income (loss) | $ | 6.2 | $ | (7.2 | ) | |
| Diluted share count | 61.9 | 46.8 | ||||
| Adjusted net income (loss) per share - diluted | $ | 0.10 | $ | (0.15 | ) | |
(1) See special items table above for more details
(2) This represents expenses related to a voluntary employee leave program in response to the COVID-19 pandemic, a portion of which is offset by the CARES Act Payroll Support Program as the benefit of this program is also adjusted as a component of Special Items, net
(3) This represents the adjustment to the TRA for the period, which is recorded in Non-operating Income (Expense)
(4) Other adjustments include an adjustment to record the impact on pilot vacation pay resulting from the new pilot labor contract
(5) The tax effect of adjusting items, net is calculated at the Company’s statutory rate for the applicable period
Reconciliation of Adjusted Net Income (Loss) and Adjusted Earnings per Share to GAAP Net Income (Loss)
Dollars and shares in millions, except for per share – Unaudited - amounts may not recalculate due to rounding
The following table presents the reconciliation of adjusted net income (loss) and adjusted earnings per share to GAAP net income (loss).
| Twelve Months Ended Dec 31, | ||||||
| 2021 | 2020 | |||||
| Net income (loss) | $ | 77.5 | $ | (3.9 | ) | |
| Net income (loss) per share – diluted | $ | 1.31 | $ | (0.08 | ) | |
| Special items, net (1) | (65.5 | ) | (64.6 | ) | ||
| Stock compensation expense | 5.6 | 2.1 | ||||
| Loss on asset transactions, net | - | 0.4 | ||||
| Early pay-off of US Treasury loan | 0.8 | - | ||||
| Tax receivable agreement expense (2) | 0.3 | - | ||||
| Tax receivable agreement adjustment (3) | (16.4 | ) | - | |||
| Loss on refinancing credit facility | 0.4 | - | ||||
| Voluntary leave expense (4) | - | 4.9 | ||||
| Secondary offering costs | 1.8 | - | ||||
| Other adjustments(5) | 3.0 | - | ||||
| Income tax effect of adjusting items, net (6) | 12.3 | 13.1 | ||||
| Adjusted net income (loss) | $ | 19.8 | $ | (47.9 | ) | |
| Diluted share count | 59.3 | 46.8 | ||||
| Adjusted net income (loss) per share - diluted | $ | 0.33 | $ | (1.02 | ) | |
(1) See special items table above for more details
(2) This represents the one-time costs to establish the Tax Receivable Agreement (“TRA”) with our pre-IPO stockholders
(3) This represents the adjustment to the TRA for the period, which is recorded in Non-operating Income (Expense)
(4) This represents expenses related to a voluntary employee leave program in response to the COVID-19 pandemic, a portion of which is offset by the CARES Act Payroll Support Program as the benefit of this program is also adjusted as a component of Special Items, net
(5) Other adjustments include an adjustment to record the impact on pilot vacation pay resulting from the new pilot labor contract
(6) The tax effect of adjusting items, net is calculated at the Company’s statutory rate for the applicable period
Reconciliation of Adjusted EBITDAR to GAAP Net Loss
Dollars in millions – Unaudited - amounts may not recalculate due to rounding
The following tables present the reconciliation of net loss to Adjusted EBITDAR for the periods presented below.
| Three Months Ended Dec 31, | |||||||
| 2021 | 2020 | ||||||
| Net loss | $ | (0.6 | ) | $ | (8.0 | ) | |
| Special items, net (1) | - | (0.2 | ) | ||||
| Interest expense | 6.8 | 5.9 | |||||
| Stock compensation expense | 1.0 | 0.9 | |||||
| Voluntary leave expense (2) | - | 0.5 | |||||
| Secondary offering costs | 0.5 | - | |||||
| Tax receivable agreement adjustment (3) | 3.4 | - | |||||
| Other adjustments(4) | 3.0 | - | |||||
| Provision for income taxes | 0.8 | (2.2 | ) | ||||
| Depreciation and amortization | 14.9 | 12.5 | |||||
| Aircraft rent | 4.3 | 7.6 | |||||
| Adjusted EBITDAR | $ | 34.1 | $ | 16.7 | |||
| Adjusted EBITDAR margin | 19.7 | % | 15.5 | % | |||
(1) See special items table above for more details
(2) This represents expenses related to a voluntary employee leave program in response to the COVID-19 pandemic, a portion of which is offset by the CARES Act Payroll Support Program as the benefit of this program is also adjusted as a component of Special Items, net
(3) This represents the adjustment to the TRA for the period, which is recorded in Non-operating Income (Expense)
(4) Other adjustments include an adjustment to record the impact on pilot vacation pay resulting from the new pilot labor contract
Reconciliation of Adjusted EBITDAR to GAAP Net Income (Loss)
Dollars in millions – Unaudited - amounts may not recalculate due to rounding
The following tables present the reconciliation of net income (loss) to Adjusted EBITDAR for the periods presented below.
| Twelve Months Ended Dec 31, | ||||||
| 2021 | 2020 | |||||
| Net income (loss) | $ | 77.5 | $ | (3.9 | ) | |
| Special items, net (1) | (65.5 | ) | (64.6 | ) | ||
| Loss on asset transactions, net | - | 0.4 | ||||
| Interest expense | 26.3 | 22.1 | ||||
| Stock compensation expense | 5.6 | 2.1 | ||||
| Tax receivable agreement expense (2) | 0.3 | - | ||||
| Tax receivable agreement adjustment (3) | (16.4 | ) | - | |||
| Interest income | (0.1 | ) | (0.4 | ) | ||
| Voluntary leave expense (4) | - | 4.9 | ||||
| Secondary offering costs | 1.8 | - | ||||
| Other adjustments(5) | 3.0 | - | ||||
| Provision for income taxes | 18.0 | (0.8 | ) | |||
| Depreciation and amortization | 55.0 | 48.1 | ||||
| Aircraft rent | 17.7 | 31.0 | ||||
| Adjusted EBITDAR | $ | 123.1 | $ | 38.9 | ||
| Adjusted EBITDAR margin | 19.8 | % | 9.7 | % | ||
(1) See special items table above for more details
(2) This represents the one-time costs to establish the Tax Receivable Agreement (“TRA”) with our pre-IPO stockholders
(3) This represents the adjustment to the TRA for the period, which is recorded in Non-operating Income (Expense)
(4) This represents expenses related to a voluntary employee leave program in response to the COVID-19 pandemic, a portion of which is offset by the CARES Act Payroll Support Program as the benefit of this program is also adjusted as a component of Special Items, net
(5) Other adjustments include an adjustment to record the impact on pilot vacation pay resulting from the new pilot labor contract
Adjusted CASM is a non-GAAP measure derived from CASM by excluding fuel costs, costs related to our cargo operations (starting in 2020 when we launched our cargo operations), stock based compensation, certain commissions and other costs of selling our vacations product from this measure as these costs are unrelated to our airline operations and improve comparability to our peers. Adjusted CASM is an important measure used by management and by our board of directors in assessing quarterly and annual cost performance. Adjusted CASM is also a measure commonly used by industry analysts and we believe it is an important metric by which they compare our airline to others in the industry, although other airlines may exclude certain other costs in their calculation of Adjusted CASM. The measure is also the subject of frequent questions from investors. Adjusted CASM excludes fuel costs. By excluding volatile fuel expenses that are outside of our control from our unit metrics, we believe that we have better visibility into the results of operations and our non-fuel cost initiatives. Our industry is highly competitive and is characterized by high fixed costs, so even a small reduction in non-fuel operating costs can lead to a significant improvement in operating results. In addition, we believe that all domestic carriers are similarly impacted by changes in jet fuel costs over the long run, so it is important for management and investors to understand the impact and trends in company-specific cost drivers, such as labor rates, aircraft costs and maintenance costs, and productivity, which are more controllable by management. Adjusted CASM also excludes special items and other adjustments, as defined in the relevant reporting period, that are not representative of the ongoing costs necessary to our airline operations and may improve comparability between periods. We also exclude stock compensation expense when computing Adjusted CASM. The Company’s compensation strategy includes the use of stock-based compensation to attract and retain employees and executives and is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, stock-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period. As derivations of Adjusted CASM are not determined in accordance with GAAP, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, derivations of Adjusted CASM as presented may not be directly comparable to similarly titled measures presented by other companies. Adjusted CASM should not be considered in isolation or as a replacement for CASM. For the foregoing reasons, Adjusted CASM has significant limitations which affect its use as an indicator of our profitability. Accordingly, you are cautioned not to place undue reliance on this information.
Reconciliation of CASM to Adjusted CASM
Amounts may not recalculate due to rounding, dollar amounts in millions
The following table presents the reconciliation of CASM to Adjusted CASM.
| Three Months Ended Dec 31, | ||||||||
| 2021 | 2020 | |||||||
| Operating Expenses - mm | Per ASM (cents) | Operating Expenses - mm | Per ASM (cents) | |||||
| CASM | $ | 161.7 | 11.09 | $ | 112.2 | 9.66 | ||
| Less: | ||||||||
| Aircraft fuel | 38.5 | 2.64 | 14.0 | 1.21 | ||||
| Stock compensation expense | 1.0 | 0.07 | 0.9 | 0.07 | ||||
| Special items, net (1) | - | 0.0 | (0.2 | ) | (0.02 | ) | ||
| Voluntary leave expense (2) | - | 0.0 | 0.5 | 0.04 | ||||
| Other adjustments(3) | 3.0 | 0.21 | - | - | ||||
| Cargo expenses, not already adjusted above | 18.3 | 1.25 | 14.9 | 1.28 | ||||
| Sun Country Vacations | 0.2 | 0.01 | 0.1 | 0.01 | ||||
| Adjusted CASM | $ | 100.7 | 6.91 | $ | 82.1 | 7.07 | ||
| Available seat miles (ASMs) - mm | 1,457.9 | 1,162.0 | ||||||
(1) See special items table above for more details
(2) This represents expenses related to a voluntary employee leave program in response to the COVID-19 pandemic, a portion of which is offset by the CARES Act Payroll Support Program as the benefit of this program is also adjusted as a component of Special Items, net
(3) Other adjustments include an adjustment to record the impact on pilot vacation pay resulting from the new pilot labor contract
Reconciliation of CASM to Adjusted CASM
amounts may not recalculate due to rounding, dollar amounts in millions
The following table presents the reconciliation of CASM to Adjusted CASM.
| Twelve Months Ended Dec 31, | ||||||||||
| 2021 | 2020 | |||||||||
| Operating Expenses - mm | Per ASM (cents) | Operating Expenses - mm | Per ASM (cents) | |||||||
| CASM | $ | 516.0 | 8.86 | $ | 384.1 | 8.91 | ||||
| Less: | ||||||||||
| Aircraft fuel | 129.1 | 2.22 | 83.4 | 1.93 | ||||||
| Stock compensation expense | 5.6 | 0.10 | 2.1 | 0.05 | ||||||
| Special items, net (1) | (65.5 | ) | (1.12 | ) | (64.6 | ) | (1.50 | ) | ||
| Tax receivable agreement expense(2) | 0.3 | 0.01 | - | 0.00 | ||||||
| Voluntary leave expense (3) | - | 0.00 | 4.9 | 0.11 | ||||||
| Other adjustments(4) | 3.0 | 0.05 | - | - | ||||||
| Cargo expenses, not already adjusted above | 67.2 | 1.15 | 31.4 | 0.73 | ||||||
| Sun Country Vacations | 0.8 | 0.01 | 0.6 | 0.01 | ||||||
| Adjusted CASM | $ | 375.4 | 6.44 | $ | 326.3 | 7.57 | ||||
| Available seat miles (ASMs) - mm | 5,826.8 | 4,311.1 | ||||||||
(1) See special items table above for more details
(2) This represents the one-time costs to establish the Tax Receivable Agreement with our pre-IPO stockholders
(3) This represents expenses related to a voluntary employee leave program in response to the COVID-19 pandemic, a portion of which is offset by the CARES Act Payroll Support Program as the benefit of this program is also adjusted as a component of Special Items, net
(4) Other adjustments include an adjustment to record the impact on pilot vacation pay resulting from the new pilot labor contract
FAQ
What were Sun Country Airlines' Q4 2021 earnings results?
How did Sun Country's FY 2021 revenue compare to FY 2020?
What is the adjusted diluted earnings per share for Sun Country in Q4 2021?
What new agreements has Sun Country Airlines made recently?
How is Sun Country's liquidity position as of Q4 2021?
