ALLEGIANT TRAVEL COMPANY FOURTH QUARTER AND FULL-YEAR 2023 FINANCIAL RESULTS
Fourth quarter
2023 GAAP diluted loss per share of
Fourth quarter
2023 diluted earnings per share, excluding special charges of
Fourth quarter
2023 airline only diluted earnings per share, excluding special charges of
Full-year 2023 GAAP diluted earnings per share of
Full-year 2023 diluted earnings per share, excluding special charges of
Full-year 2023 airline only diluted earnings per share, excluding special charges of
Consolidated |
Three Months Ended |
|
Percent Change |
||
(unaudited) (in millions, except per share amounts) |
2023 |
|
2022 |
|
YoY |
Total operating revenue |
$ 611.0 |
|
$ 611.5 |
|
(0.1) % |
Total operating expense |
600.4 |
|
522.4 |
|
14.9 % |
Operating income |
10.6 |
|
89.2 |
|
(88.1) % |
Income (loss) before income taxes |
(1.8) |
|
65.9 |
|
NM |
Net income (loss) |
(2.0) |
|
52.5 |
|
NM |
Diluted earnings (loss) per share |
(0.13) |
|
2.87 |
|
NM |
Sunseeker special charges, net of recoveries (6) |
(11.0) |
|
(1.0) |
|
NM |
Airline special charges (6) |
19.9 |
|
0.1 |
|
NM |
Net income, excluding special charges net of recoveries(1)(5)(7) |
2.4 |
|
54.1 |
|
(95.6) % |
Diluted earnings per share excluding special charges net of recoveries(1)(5)(7) |
0.11 |
|
2.95 |
|
(96.3) % |
Airline only |
Three Months Ended |
|
Percent |
||
(unaudited) (in millions, except per share amounts) |
2023 |
|
2022 |
|
YoY |
Airline operating revenue |
$ 608.1 |
|
$ 611.5 |
|
(0.6) % |
Airline operating expense (1) |
587.5 |
|
519.5 |
|
13.1 % |
Airline operating income |
20.6 |
|
92.1 |
|
(77.6) % |
Airline income before income taxes (1) |
6.2 |
|
70.5 |
|
(91.2) % |
Airline net income (1)(4) |
3.2 |
|
55.6 |
|
(94.2) % |
Airline special charges (6) |
19.9 |
|
0.1 |
|
NM |
Airline net income, excluding special charges (1)(3)(8) |
15.9 |
|
55.6 |
|
(71.4) % |
Airline operating margin, excluding special charges (1)(8) |
6.6 % |
|
15.1 % |
|
(8.5) |
Airline diluted earnings per share, excluding special charges (1)(3)(8) |
0.86 |
|
3.04 |
|
(71.7) % |
Consolidated |
Twelve Months Ended |
Percent Change |
|||
(unaudited) (in millions, except per share amounts) |
2023 |
|
2022 |
|
YoY |
Total operating revenue |
$ 2,509.9 |
|
$ 2,301.8 |
|
9.0 % |
Total operating expense |
2,288.9 |
|
2,210.2 |
|
3.6 % |
Operating income |
221.0 |
|
91.6 |
|
141.3 % |
Income before income taxes |
159.1 |
|
5.0 |
|
NM |
Net income |
117.6 |
|
2.5 |
|
NM |
Diluted earnings per share |
6.29 |
|
0.14 |
|
NM |
Sunseeker special charges, net of recoveries(6) |
(6.4) |
|
34.0 |
|
NM |
Airline special charges (6) |
35.1 |
|
0.6 |
|
NM |
Net income, excluding special charges net of recoveries(1)(5)(7) |
136.6 |
|
33.2 |
|
311.4 % |
Diluted earnings per share excluding special charges net of recoveries(1)(5)(7) |
7.31 |
|
1.81 |
|
303.9 % |
Airline only |
Twelve Months Ended |
|
Percent |
||
(unaudited) (in millions, except per share amounts) |
2023 |
|
2022 |
|
YoY |
Airline operating revenue |
$ 2,507.0 |
|
$ 2,301.8 |
|
8.9 % |
Airline operating expense(1) |
2,255.5 |
|
2,164.9 |
|
4.2 % |
Airline operating income |
251.5 |
|
137.0 |
|
83.6 % |
Airline income before income taxes(1) |
188.1 |
|
58.0 |
|
224.3 % |
Airline net income (1)(4) |
140.5 |
|
44.6 |
|
215.0 % |
Airline special charges(6) |
35.1 |
|
0.6 |
|
NM |
Airline net income, excluding special charges (1)(3)(8) |
164.7 |
|
45.0 |
|
266.0 % |
Airline operating margin, excluding special charges(1)(8) |
11.4 % |
|
6.0 % |
|
5.4 |
Airline diluted earnings per share, excluding special charges (1)(3)(8) |
8.82 |
|
2.46 |
|
258.5 % |
|
|
|
(1) |
Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information and for calculation of per share figures. |
|
(2) |
Except Airline operating margin, excluding special charges, which is percentage point change. |
|
(3) |
Utilizing an annual airline-only, excluding special charge effective tax rate of 26.2% for 2023 and 23.2% for 2022 and fourth quarter effective tax rates of 39.1% for 2023 and 21.3% for 2022. |
|
(4) |
Utilizing an annual airline-only effective tax rate of 25.3% for 2023 and 23.1% for 2022 and fourth quarter effective tax rates of 48.7% for 2023 and 21.1% for 2022. |
|
(5) |
Utilizing an annual consolidated, excluding special charge effective tax rate of 27.2% for 2023 and 16.2% for 2022 and fourth quarter effective tax rates of 65.8% for 2023 and 16.9% for 2022. |
|
(6) |
In 2023 and 2022, we recognized as special charges the full amount of estimated property damage to |
|
(7) |
Adjusted to exclude the impacts of property damage to |
|
(8) |
Adjusted to exclude aircraft accelerated depreciation charges related to our revised fleet plan. |
|
NM |
Not meaningful |
|
* |
Note that amounts may not recalculate due to rounding |
|
|
|
|
"I am pleased to report 2023 diluted earnings per share, excluding special charges, of
"We have spent the past few years outlining our ambitious plans to position ourselves as an integrated travel company. We hit a major milestone in our company history by officially opening
"During 2023 we continued to distinguish ourselves by further promoting the power of our brand. The Allegiant credit card has grown to just shy of 500 thousand members. We received
"I am proud of the progress we made throughout 2023 to rightfully resume our place near the top of the industry both operationally as well as financially," stated
"Although we are proud of our performance in 2023, 2024 will continue our focus on restoring peak-period utilization, thereby bolstering our financial performance through increased margins. In the coming months we expect to induct our first Boeing MAX aircraft. We have tempered capacity growth to roughly five percent to ensure a smooth integration. The addition of this aircraft will improve operational reliability, enhance the customer experience, and deliver improved economics.
"In 2024, our focus will be on optimization. With continued focus on a number of long-term initiatives, we expect to see planned improvements throughout the business. I remain confident we will continue our operational excellence, a necessity for continued financial success. Our team members' efforts and dedication are the reasons for our 2023 industry leading performance. Team Allegiant remains the best in the industry."
Fourth Quarter 2023 Results and Highlights
-
Total operating revenue of
$611.0M , roughly flat over the prior year- Total fixed fee contracts revenue of
$24.9M , up 9.7% year-over-year
- Total fixed fee contracts revenue of
-
Operating income, excluding specials,(1)(3)(4) of
$19.5M , yielding an operating margin of 3.2%- Airline-only operating income, excluding specials,(1)(5) of
$40.5M , yielding an airline-only operating margin of 6.6%
- Airline-only operating income, excluding specials,(1)(5) of
-
Income before income tax, excluding specials,(1)(3)(4)of
$7.0M , yielding a pre-tax margin of 1.2%- Airline-only income before income tax, excluding specials,(1)(5) of
$26.1M , yielding a pre-tax margin of 4.3%
- Airline-only income before income tax, excluding specials,(1)(5) of
-
Consolidated EBITDA, excluding specials,(1)(3)(4) of
$77.8M , yielding an EBITDA margin of 12.7%- Airline-only EBITDA, excluding specials,(1)(5) of
$96.8M a 15.9% margin
- Airline-only EBITDA, excluding specials,(1)(5) of
-
Airline-only operating CASM, excluding fuel and special charges,(5)of 8.50 ¢, up 10.8% year-over-year
- Includes
$19.7M in incremental cost related to accrual of pilot retention bonuses - Excludes
$19.9M in aircraft accelerated depreciation related to the early retirement of 21 airframes to be retired between 2023 through 2025
- Includes
- Opened
Sunseeker Resort atCharlotte Harbor onDecember 15 -
Ranked number 3 amongst major US carriers in the
Wall Street Journal's "The Best and Worst Airlines of 2023" - Issued the company's second annual ESG report, which includes five company-wide targets, including an emissions intensity reduction goal
Full-Year 2023 Results and Highlights
-
Total operating revenue of
$2.5B , up 9.0% year over year, on a total system capacity increase of 1.9%- Full-year TRASM(2) was
13.38 cents , a record annual TRASM, up 7.0% year-over-year on scheduled service capacity increases of 1.7% - Average total fare was
$142.15 , up 5.6% year-over-year, including total average ancillary revenue of$72.90 , up 7.6% from 2022
- Full-year TRASM(2) was
-
Income before income tax (4) of
$187.7M , excluding special charges, yielding a 7.5% pre-tax margin- Airline-only income before income tax, excluding specials,(1)(5) of
$223.3M , yielding a pre-tax margin of 8.9%
- Airline-only income before income tax, excluding specials,(1)(5) of
-
Added 2.1 million Allegiant Allways Rewards® members throughout 2023, with more than 17 million total members at year end, a 13 percent increase over year-end 2022
-
Airline-only Operating CASM, excluding fuel and special charges,(5)of
8.12 cents , up 10.8% as compared with full-year 2022 -
$119.6 million in total cobrand credit card remuneration received from Bank of America, up 18% from the prior year- Grew cardholders by 16 percent over year-end 2022
|
|
(1) |
Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information and for calculation of per share figures. |
(2) |
TRASM represents total passenger revenue per scheduled service available seat mile. |
(3) |
In 2023 and 2022, we recognized as special charges the full amount of estimated property damage to |
(4) |
Adjusted to exclude the impacts of property damage to |
(5) |
Adjusted to exclude aircraft accelerated depreciation charges related to our revised fleet plan. |
|
|
Balance Sheet, Cash and Liquidity
-
Total available liquidity at
December 31, 2023 was$1.1B , which included$870.7M in cash and investments, and$275M in undrawn revolving credit facilities and PDP facilities -
$42.6M in cash from operations during the fourth quarter 2023 - Total debt at
December 31, 2023 was $2.3B- Net debt at
December 31, 2023 was$1.4B
- Net debt at
- Debt principal payments of
$187.9M during the fourth quarter- Includes
$150M prepayment of 8.5% senior secured notes during the quarter - Full-year principal payments of
$480.9M , including a total of$210.0M in prepayments related to 2024 maturities
- Includes
- Returned
$11.1M in dividends during the fourth quarter- Full-year dividend payments of
$22.1M - Scheduled payment of quarterly dividend in the amount of
$0.60 per share onMarch 1, 2024 to shareholders of record onFebruary 15, 2024
- Full-year dividend payments of
-
Repurchased 192 thousand shares during the fourth quarter at an average share price of
$65.27 -
Air traffic liability at
December 31, 2023 was$353.5M
Airline Capital Expenditures
- Fourth quarter capital expenditures of
$143.1M , which included$119.6M for aircraft purchases and inductions, pre-delivery deposits, and other related costs, and$23.5M in other airline capital expenditures- Fourth quarter deferred heavy maintenance spend was
$16.8M
- Fourth quarter deferred heavy maintenance spend was
-
Total Sunseeker fixed assets as of
December 31, 2023 were $614.9M- Fourth quarter capital expenditures, excluding capitalized interest(1), were
$52.7M
- Fourth quarter capital expenditures, excluding capitalized interest(1), were
- Recorded recoveries, net of special charges, of
$11.0M during fourth quarter 2023, which includes$18.9M of insurance recoveries and$7.9M of additional losses related to estimated property damages atSunseeker Resort resulting from various weather events, including Hurricane Idalia
|
|
(1) |
Fourth quarter capital expenditures are inclusive of |
Guidance, subject to revision |
|
|
|
|
|
|
|
First quarter 2024 airline-only guidance |
|
|
|
|
|
|
|
System ASMs - year over year change |
|
|
~1.0% |
Scheduled service ASMs - year over year change |
|
|
~1.0% |
|
|
|
|
Fuel cost per gallon |
|
|
$ 2.85 |
Operating margin |
|
|
8.0% to 10.0% |
Earnings per share, airline only |
|
|
|
|
|
|
|
|
|
|
|
First quarter 2024 consolidated guidance |
|
|
|
|
|
|
|
Earnings per share, consolidated |
|
|
|
|
|
|
|
Full-year 2024 airline-only guidance |
|
|
|
|
|
|
|
System ASMs - year over year change |
|
|
2.0% to 6.0% |
Scheduled service ASMs - year over year change |
|
|
2.0% to 6.0% |
|
|
|
|
Interest expense (millions) |
|
|
|
Capitalized interest(1) (millions) |
|
|
( |
Interest income (millions) |
|
|
|
|
|
|
|
Airline full-year CAPEX |
|
|
|
Aircraft, engines, induction costs, and pre-delivery deposits (millions)(2) |
|
|
|
Capitalized deferred heavy maintenance (millions) |
|
|
|
Other airline capital expenditures (millions) |
|
|
|
|
|
|
|
Recurring principal payments (millions) |
|
|
|
|
|
|
|
|
|
(1) |
Includes capitalized interest related to pre-delivery deposits on new aircraft. |
(2) |
Excludes capitalized interest related to pre-delivery deposits on new aircraft. |
Full-year 2024 Sunseeker guidance |
|
|
|
|
|
|
|
EBITDA (millions) |
|
|
Up to |
Depreciation expense (millions) |
|
|
|
Interest expense (millions) |
|
|
|
|
|
|
|
Occupancy rate |
|
|
~60% |
Average daily rate |
|
|
|
|
|
|
|
Sunseeker full-year CAPEX |
|
|
|
Sunseeker capital expenditures (millions) |
|
|
|
|
|
|
|
Aircraft Fleet Plan by End of Period |
||
|
||
Aircraft - (seats per AC) |
YE23 |
YE24 |
737-8200 (190 seats) |
— |
10 |
A319 (156 seats) |
34 |
34 |
A320 (177 seats) |
19 |
11 |
A320 (180-186 seats) |
73 |
75 |
Total |
126 |
130 |
|
The table above is provided based on the company's current plans and is subject to change. The numbers exclude aircraft expected to be delivered during 2024 but will not be placed into revenue service until 2025. |
|
The above plan is management's best estimate and differs from our contractual obligations. |
|
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 and
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
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:
|
|||||
Consolidated Statements of Income |
|||||
(in thousands, except per share amounts) |
|||||
(Unaudited) |
|||||
|
|||||
|
Three Months Ended |
|
Percent Change |
||
|
2023 |
|
2022 |
|
YoY |
OPERATING REVENUES: |
|
|
|
|
|
Passenger |
$ 556,123 |
|
$ 564,721 |
|
(1.5) % |
Third party products |
26,693 |
|
23,560 |
|
13.3 |
Fixed fee contracts |
24,949 |
|
22,751 |
|
9.7 |
Other |
3,237 |
|
517 |
|
526.1 |
Total operating revenues |
611,002 |
|
611,549 |
|
(0.1) |
OPERATING EXPENSES: |
|
|
|
|
|
Aircraft fuel |
175,853 |
|
185,203 |
|
(5.0) |
Salaries and benefits |
188,005 |
|
141,386 |
|
33.0 |
Station operations |
63,696 |
|
56,214 |
|
13.3 |
Depreciation and amortization |
58,700 |
|
51,924 |
|
13.0 |
Maintenance and repairs |
28,249 |
|
26,694 |
|
5.8 |
Sales and marketing |
29,351 |
|
25,216 |
|
16.4 |
Aircraft lease rentals |
5,976 |
|
6,132 |
|
(2.5) |
Other |
41,743 |
|
30,395 |
|
37.3 |
Special charges, net of recoveries |
8,817 |
|
(814) |
|
NM |
Total operating expenses |
600,390 |
|
522,350 |
|
14.9 |
OPERATING INCOME |
10,612 |
|
89,199 |
|
(88.1) |
OTHER (INCOME) EXPENSES: |
|
|
|
|
|
Interest expense |
40,479 |
|
37,181 |
|
8.9 |
Interest income |
(12,197) |
|
(8,560) |
|
42.5 |
Capitalized interest |
(16,183) |
|
(5,046) |
|
220.7 |
Other, net |
306 |
|
(226) |
|
NM |
Total other expenses |
12,405 |
|
23,349 |
|
(46.9) |
INCOME (LOSS) BEFORE INCOME TAXES |
(1,793) |
|
65,850 |
|
NM |
INCOME TAX PROVISION |
163 |
|
13,376 |
|
(98.8) |
NET INCOME (LOSS) |
$ (1,956) |
|
$ 52,474 |
|
NM |
Earnings (loss) per share to common shareholders: |
|
|
|
|
|
Basic |
( |
|
|
|
(104.5) |
Diluted |
( |
|
|
|
(104.5) |
Weighted average shares outstanding used in computing earnings per share attributable to common shareholders(1): |
|
|
|
|
|
Basic |
17,915 |
|
17,880 |
|
0.2 |
Diluted |
17,915 |
|
17,910 |
|
— |
|
|
|
(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. |
|
NM |
|
Not meaningful |
|
|||||
Airline Operating Statistics |
|||||
(Unaudited) |
|||||
|
|||||
|
Three Months Ended |
|
Percent |
||
|
2023 |
|
2022 |
|
YoY |
AIRLINE OPERATING STATISTICS |
|
|
|
|
|
Total system statistics: |
|
|
|
|
|
Passengers |
4,145,771 |
|
3,962,466 |
|
4.6 % |
Available seat miles (ASMs) (thousands) |
4,607,174 |
|
4,358,220 |
|
5.7 |
Airline operating expense per ASM (CASM) (cents) |
12.75 ¢ |
|
11.92 ¢ |
|
7.0 |
Fuel expense per ASM (cents) |
3.82 ¢ |
|
4.25 ¢ |
|
(10.1) |
Airline operating CASM, excluding fuel (cents) |
8.94 ¢ |
|
7.67 ¢ |
|
16.6 |
Departures |
29,733 |
|
28,005 |
|
6.2 |
Block hours |
69,737 |
|
66,389 |
|
5.0 |
Average stage length (miles) |
876 |
|
881 |
|
(0.6) |
Average number of operating aircraft during period |
126.7 |
|
118.6 |
|
6.8 |
Average block hours per aircraft per day |
6.0 |
|
6.1 |
|
(1.6) |
Full-time equivalent employees at end of period |
5,643 |
|
5,306 |
|
6.4 |
Fuel gallons consumed (thousands) |
54,726 |
|
51,536 |
|
6.2 |
ASMs per gallon of fuel |
84.2 |
|
84.6 |
|
(0.5) |
Average fuel cost per gallon |
$ 3.21 |
|
$ 3.59 |
|
(10.6) |
Scheduled service statistics: |
|
|
|
|
|
Passengers |
4,067,855 |
|
3,893,870 |
|
4.5 |
Revenue passenger miles (RPMs) (thousands) |
3,691,343 |
|
3,578,134 |
|
3.2 |
Available seat miles (ASMs) (thousands) |
4,429,826 |
|
4,192,352 |
|
5.7 |
Load factor |
83.3 % |
|
85.3 % |
|
(2.0) |
Departures |
28,244 |
|
26,591 |
|
6.2 |
Block hours |
66,845 |
|
63,648 |
|
5.0 |
Average seats per departure |
176.6 |
|
176.0 |
|
0.3 |
Yield (cents) (2) |
7.74 ¢ |
|
8.50 ¢ |
|
(8.9) |
Total passenger revenue per ASM (TRASM) (cents)(3) |
13.16 ¢ |
|
14.03 ¢ |
|
(6.2) |
Average fare - scheduled service(4) |
$ 70.22 |
|
$ 78.14 |
|
(10.1) |
Average fare - air-related charges(4) |
$ 66.50 |
|
$ 66.89 |
|
(0.6) |
Average fare - third party products |
$ 6.56 |
|
$ 6.05 |
|
8.4 |
Average fare - total |
$ 143.27 |
|
$ 151.08 |
|
(5.2) |
Average stage length (miles) |
887 |
|
893 |
|
(0.7) |
Fuel gallons consumed (thousands) |
52,530 |
|
49,533 |
|
6.1 |
Average fuel cost per gallon |
$ 3.20 |
|
$ 3.58 |
|
(10.6) |
Percent of sales through website during period |
97.5 % |
|
95.7 % |
|
1.8 |
Other data: |
|
|
|
|
|
Rental car days sold |
296,227 |
|
286,129 |
|
3.5 |
Hotel room nights sold |
56,290 |
|
60,520 |
|
(7.0) |
|
|
(1) |
Except load factor and percent of sales through website, which is percentage point change. |
(2) |
Defined as scheduled service revenue divided by revenue passenger miles. |
(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. |
|
|
|
|||||
Consolidated Statements of Income |
|||||
(in thousands, except per share amounts) |
|||||
(Unaudited) |
|||||
|
|||||
|
Twelve Months Ended |
|
Percent Change |
||
|
2023 |
|
2022 |
|
YoY |
OPERATING REVENUES: |
|
|
|
|
|
Passenger |
$ 2,324,397 |
|
$ 2,137,762 |
|
8.7 % |
Third party products |
112,579 |
|
100,959 |
|
11.5 |
Fixed fee contracts |
68,548 |
|
60,937 |
|
12.5 |
Other |
4,333 |
|
2,171 |
|
99.6 |
Total operating revenues |
2,509,857 |
|
2,301,829 |
|
9.0 |
OPERATING EXPENSES: |
|
|
|
|
|
Aircraft fuel |
695,871 |
|
814,803 |
|
(14.6) |
Salaries and benefits |
687,803 |
|
552,413 |
|
24.5 |
Station operations |
256,560 |
|
255,168 |
|
0.5 |
Depreciation and amortization |
223,130 |
|
197,542 |
|
13.0 |
Maintenance and repairs |
123,802 |
|
117,814 |
|
5.1 |
Sales and marketing |
114,616 |
|
100,678 |
|
13.8 |
Aircraft lease rentals |
24,948 |
|
23,621 |
|
5.6 |
Other |
133,501 |
|
113,532 |
|
17.6 |
Special charges, net of recoveries |
28,645 |
|
34,612 |
|
(17.2) |
Total operating expenses |
2,288,876 |
|
2,210,183 |
|
3.6 |
OPERATING INCOME |
220,981 |
|
91,646 |
|
141.1 |
OTHER (INCOME) EXPENSES: |
|
|
|
|
|
Interest expense |
153,186 |
|
115,711 |
|
32.4 |
Interest income |
(46,615) |
|
(16,469) |
|
183.0 |
Capitalized interest |
(45,132) |
|
(12,640) |
|
257.1 |
Other, net |
491 |
|
91 |
|
439.6 |
Total other expenses |
61,930 |
|
86,693 |
|
(28.6) |
INCOME BEFORE INCOME TAXES |
159,051 |
|
4,953 |
|
NM |
INCOME TAX PROVISION |
41,455 |
|
2,460 |
|
NM |
NET INCOME |
$ 117,596 |
|
$ 2,493 |
|
NM |
Earnings per share to common shareholders: |
|
|
|
|
|
Basic |
|
|
|
|
NM |
Diluted |
|
|
|
|
NM |
Weighted average shares outstanding used in computing earnings per share attributable to common shareholders(1): |
|
|
|
|
|
Basic |
17,945 |
|
17,959 |
|
(0.1) |
Diluted |
18,019 |
|
18,034 |
|
(0.1) |
|
|
|
(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. |
|
NM |
|
Not meaningful |
|
|
|
|
|||||
Airline Operating Statistics |
|||||
(Unaudited) |
|||||
|
|||||
|
Twelve Months Ended |
|
Percent |
||
|
2023 |
|
2022 |
|
YoY |
AIRLINE OPERATING STATISTICS |
|
|
|
|
|
Total system statistics: |
|
|
|
|
|
Passengers |
17,342,236 |
|
16,796,544 |
|
3.2 % |
Available seat miles (ASMs) (thousands) |
18,772,110 |
|
18,419,045 |
|
1.9 |
Airline operating expense per ASM (CASM)(cents) |
12.02 ¢ |
|
11.75 ¢ |
|
2.3 |
Fuel expense per ASM (cents) |
3.71 ¢ |
|
4.42 ¢ |
|
(16.1) |
Airline operating CASM, excluding fuel (cents) |
8.31 ¢ |
|
7.33 ¢ |
|
13.4 |
Departures |
120,525 |
|
118,069 |
|
2.1 |
Block hours |
285,453 |
|
278,792 |
|
2.4 |
Average stage length (miles) |
882 |
|
884 |
|
(0.2) |
Average number of operating aircraft during period |
125.2 |
|
114.2 |
|
9.6 |
Average block hours per aircraft per day |
6.2 |
|
6.7 |
|
(7.5) |
Full-time equivalent employees at end of period |
5,643 |
|
5,306 |
|
6.4 |
Fuel gallons consumed (thousands) |
224,996 |
|
218,606 |
|
2.9 |
ASMs per gallon of fuel |
83.4 |
|
84.3 |
|
(1.1) |
Average fuel cost per gallon |
$ 3.09 |
|
$ 3.73 |
|
(17.2) |
Scheduled service statistics: |
|
|
|
|
|
Passengers |
17,143,870 |
|
16,630,138 |
|
3.1 |
Revenue passenger miles (RPMs) (thousands) |
15,639,329 |
|
15,224,346 |
|
2.7 |
Available seat miles (ASMs) (thousands) |
18,208,820 |
|
17,909,190 |
|
1.7 |
Load factor |
85.9 % |
|
85.0 % |
|
0.9 |
Departures |
116,044 |
|
114,066 |
|
1.7 |
Block hours |
276,313 |
|
270,516 |
|
2.1 |
Average seats per departure |
176.3 |
|
175.7 |
|
0.3 |
Yield (cents) (2) |
7.59 ¢ |
|
7.31 ¢ |
|
3.8 |
Total passenger revenue per ASM (TRASM) (cents)(3) |
13.38 ¢ |
|
12.50 ¢ |
|
7.0 |
Average fare - scheduled service(4) |
$ 69.25 |
|
$ 66.88 |
|
3.5 |
Average fare - air-related charges(4) |
$ 66.33 |
|
$ 61.67 |
|
7.6 |
Average fare - third party products |
$ 6.57 |
|
$ 6.07 |
|
8.2 |
Average fare - total |
$ 142.15 |
|
$ 134.62 |
|
5.6 |
Average stage length (miles) |
888 |
|
890 |
|
(0.2) |
Fuel gallons consumed (thousands) |
218,129 |
|
212,466 |
|
2.7 |
Average fuel cost per gallon |
$ 3.09 |
|
$ 3.72 |
|
(16.9) |
Percent of sales through website during period |
95.8 % |
|
96.0 % |
|
(0.2) |
Other data: |
|
|
|
|
|
Rental car days sold |
1,377,710 |
|
1,447,708 |
|
(4.8) |
Hotel room nights sold |
249,933 |
|
282,854 |
|
(11.6) |
|
|
(1) |
Except load factor and percent of sales through website, which is percentage point change. |
(2) |
Defined as scheduled service revenue divided by revenue passenger miles. |
(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) |
(unaudited) |
|
|
|
Percent Change |
Unrestricted cash and investments |
|
|
|
|
|
Cash and cash equivalents |
$ 143.3 |
|
$ 230.0 |
|
(37.7) % |
Short-term investments |
671.4 |
|
725.1 |
|
(7.4) |
Long-term investments |
56.0 |
|
63.3 |
|
(11.5) |
Total unrestricted cash and investments |
870.7 |
|
1,018.4 |
|
(14.5) |
Debt |
|
|
|
|
|
Current maturities of long-term debt and finance lease obligations, net of related costs |
439.9 |
|
152.9 |
|
187.7 |
Long-term debt and finance lease obligations, net of current maturities and related costs |
1,819.7 |
|
1,944.1 |
|
(6.4) |
Total debt |
2,259.6 |
|
2,097.0 |
|
7.8 |
Debt, net of unrestricted cash and investments |
1,388.9 |
|
1,078.6 |
|
28.8 |
|
1,328.6 |
|
1,220.7 |
|
8.8 |
|
|
|
|
|
|
EPS Calculation
The following table sets forth the computation of net income per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in table are in thousands):
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Basic: |
|
|
|
|
|
|
|
Net income (loss) |
$ (1,956) |
|
$ 52,474 |
|
$ 117,596 |
|
$ 2,493 |
Less income allocated to participating securities |
(348) |
|
(1,125) |
|
(4,188) |
|
(32) |
Net income (loss) attributable to common stock |
$ (2,304) |
|
$ 51,349 |
|
$ 113,408 |
|
$ 2,461 |
Earnings (loss) per share, basic |
$ (0.13) |
|
$ 2.87 |
|
$ 6.32 |
|
$ 0.14 |
Weighted-average shares outstanding |
17,915 |
|
17,880 |
|
17,945 |
|
17,959 |
Diluted: |
|
|
|
|
|
|
|
Net income (loss) |
$ (1,956) |
|
$ 52,474 |
|
$ 117,596 |
|
$ 2,493 |
Less income allocated to participating securities |
(348) |
|
(1,123) |
|
(4,175) |
|
(32) |
Net income (loss) attributable to common stock |
$ (2,304) |
|
$ 51,351 |
|
$ 113,421 |
|
$ 2,461 |
Earnings (loss) per share, diluted |
$ (0.13) |
|
$ 2.87 |
|
$ 6.29 |
|
$ 0.14 |
Weighted-average shares outstanding (1) |
17,915 |
|
17,880 |
|
17,945 |
|
17,959 |
Dilutive effect of stock options and restricted stock |
— |
|
61 |
|
249 |
|
132 |
Adjusted weighted-average shares outstanding under treasury stock method |
17,915 |
|
17,941 |
|
18,194 |
|
18,091 |
Participating securities excluded under two-class method |
— |
|
(31) |
|
(175) |
|
(57) |
Adjusted weighted-average shares outstanding under two-class method |
17,915 |
|
17,910 |
|
18,019 |
|
18,034 |
|
|
(1) |
Dilutive effect of common stock equivalents excluded from the diluted per share calculation is not material. |
Appendix A
Non-GAAP Presentation
Three and Twelve Months Ended
(Unaudited)
Airline operating expense, airline income before income taxes, airline net income, and airline diluted earnings per share all eliminate the effects of non-airline activity as such activity is not reflective of airline operating performance. We also present these airline-only metrics excluding special charges related to aircraft accelerated depreciation on early retirement of certain airframes. Management believes the exclusion of these special charges enhances comparability of financial information between periods. Airline earnings before interest, taxes, depreciation and amortization ("Airline EBITDA") eliminates the effects of non-airline operating activity and other items. As such, all of these are non-GAAP financial measures. We believe the presentation of these measures is relevant and useful for investors because it allows them to better gauge the performance of the airline and to compare our results to other airlines.
We also present both operating expense and CASM excluding aircraft fuel expense as fuel price volatility impacts the comparability of year over year financial performance. We believe the adjustment for fuel expense allows investors to better understand our non-fuel costs and related performance.
We present consolidated operating income, EBITDA, and diluted earnings per share excluding Sunseeker special charges, net of recoveries, and airline special charges, to exclude the impact of losses and insurance recoveries incurred primarily as the result of hurricanes and other insured events at Sunseeker and to exclude aircraft accelerated depreciation on early retirements of certain airframes. Management believes these measures enhance comparability of financial information between periods.
Consolidated EBITDA, Consolidated EBITDA excluding special charges, and Airline EBITDA excluding special charges, as presented in this press release, are supplemental measures of our performance that are not required by, or presented in accordance with, accounting principles generally accepted in
We define "EBITDA" as earnings before interest, taxes, depreciation and amortization. We also adjust EBITDA within this release to exclude non-airline activity and special charges. We caution investors that amounts presented in accordance with this definition may not be comparable to similar measures disclosed by other issuers, because not all issuers and analysts calculate EBITDA in the same manner.
We use EBITDA and Airline 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 these presentations of EBITDA are relevant and useful for investors because they allow investors to view results in a manner similar to the method used by management and make it easier to compare our results with other companies that have different financing and capital structures. EBITDA has important limitations as an analytical tool. These limitations include the following:
- EBITDA does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments to purchase capital equipment;
- EBITDA does not reflect interest expense or the cash requirements necessary to service principal or interest payments on our debt;
- although depreciation and amortization are non-cash charges, the assets that we currently depreciate and amortize will likely have to be replaced in the future, and EBITDA does not reflect the cash required to fund such replacements; and
- other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure.
Presented below is a quantitative reconciliation of these adjusted numbers to the most directly comparable GAAP financial performance measure, which we believe is net income.
The
Reconciliation of Non-GAAP Financial Measures |
|||||||
|
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Reconciliation of net income and earnings per share excluding special charges net of recoveries (millions except share and per share amounts) |
|
|
|
|
|
|
|
Income (loss) before income taxes as reported (GAAP) |
$ (1.8) |
|
$ 65.9 |
|
$ 159.1 |
|
$ 5.0 |
Special charges, net of recoveries(5) |
8.8 |
|
(0.8) |
|
28.6 |
|
34.6 |
Income before income taxes excluding special charges net of recoveries(1) |
7.0 |
|
65.1 |
|
187.7 |
|
39.6 |
Income tax expense as reported (GAAP) |
0.2 |
|
13.4 |
|
41.5 |
|
2.5 |
Income tax expense excluding special charges net of recoveries(1)(4) |
4.6 |
|
11.0 |
|
51.1 |
|
6.4 |
Net income excluding special charges net of recoveries(1) |
2.4 |
|
54.1 |
|
136.6 |
|
33.2 |
Net (income) allocated to participating securities excluding special charges net of recoveries(1) |
(0.3) |
|
(1.2) |
|
(4.8) |
|
(0.4) |
Net income attributable to common stock excluding special charges net of recoveries(1) |
2.1 |
|
52.9 |
|
131.8 |
|
32.8 |
|
|
|
|
|
|
|
|
Diluted shares used for computation (GAAP) (thousands) |
17,915 |
|
17,910 |
|
18,019 |
|
18,034 |
Diluted shares used for computation - excluding special charges net of recoveries (thousands)(1) |
17,929 |
|
17,910 |
|
18,019 |
|
18,034 |
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share as reported (GAAP) |
$ (0.13) |
|
$ 2.87 |
|
$ 6.29 |
|
$ 0.14 |
Diluted earnings per share excluding special charges net of recoveries(1) |
$ 0.11 |
|
$ 2.95 |
|
$ 7.31 |
|
$ 1.81 |
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Reconciliation of airline operating expense, operating income, and income before income taxes excluding special charges (millions) |
|
|
|
|
|
|
|
Operating expense as reported (GAAP) |
$ 600.4 |
|
$ 522.4 |
|
$ 2,288.9 |
|
$ 2,210.2 |
Non-airline operating expense(1) |
12.8 |
|
2.9 |
|
33.4 |
|
45.3 |
Airline operating expense(1) |
587.6 |
|
519.5 |
|
2,255.5 |
|
2,164.9 |
Airline special charges(1)(5) |
19.9 |
|
0.1 |
|
35.1 |
|
0.6 |
Airline operating expense, excluding special charges(1)(7) |
$ 567.7 |
|
$ 519.4 |
|
$ 2,220.4 |
|
$ 2,164.3 |
|
|
|
|
|
|
|
|
Operating income as reported (GAAP) |
$ 10.6 |
|
$ 89.2 |
|
$ 221.0 |
|
$ 91.6 |
Non-airline operating loss |
10.0 |
|
2.9 |
|
30.5 |
|
45.3 |
Airline special charges(1)(5) |
19.9 |
|
0.1 |
|
35.1 |
|
0.6 |
Airline operating income, excluding special charges(1)(7) |
$ 40.5 |
|
$ 92.2 |
|
$ 286.6 |
|
$ 137.5 |
Airline operating margin, excluding special charges(7) |
6.6 % |
|
15.1 % |
|
11.4 % |
|
6.0 % |
|
|
|
|
|
|
|
|
Income (loss) before income taxes as reported (GAAP) |
$ (1.8) |
|
$ 65.9 |
|
$ 159.1 |
|
$ 5.0 |
Non-airline loss before income taxes(1) |
8.0 |
|
4.7 |
|
29.1 |
|
53.0 |
Airline special charges(1)(5) |
19.9 |
|
0.1 |
|
35.1 |
|
0.6 |
Airline income before income taxes, excluding special charges(1)(7) |
$ 26.1 |
|
$ 70.7 |
|
$ 223.3 |
|
$ 58.6 |
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Reconciliation of airline net income excluding special charges and airline earnings per share excluding special charges (millions except share and per share amounts) |
|
|
|
|
|
|
|
Income (loss) before income taxes as reported (GAAP) |
$ (1.8) |
|
$ 65.9 |
|
$ 159.1 |
|
$ 5.0 |
Non-airline loss before income taxes(1) |
8.0 |
|
4.6 |
|
29.0 |
|
53.0 |
Airline income before income taxes(1) |
6.2 |
|
70.5 |
|
188.1 |
|
58.0 |
Airline special charges(1)(5) |
19.9 |
|
0.1 |
|
35.1 |
|
0.6 |
Airline income before income taxes, excluding special charges(1)(7) |
26.1 |
|
70.6 |
|
223.2 |
|
58.6 |
|
|
|
|
|
|
|
|
Income tax expense (benefit) as reported (GAAP) |
0.2 |
|
13.4 |
|
41.5 |
|
2.5 |
Airline income tax expense, excluding special charges(1)(2) |
10.2 |
|
15.0 |
|
58.5 |
|
13.6 |
Airline net income, excluding special charges(1) |
15.9 |
|
55.6 |
|
164.7 |
|
45.0 |
|
|
|
|
|
|
|
|
Airline net (income) allocated to participating securities excluding special charges(1) |
(0.5) |
|
(1.2) |
|
(5.8) |
|
(0.6) |
Airline net income attributable to common stock excluding special charges(1) |
15.4 |
|
54.4 |
|
158.9 |
|
44.4 |
|
|
|
|
|
|
|
|
Diluted shares used for computation (GAAP) (thousands) |
17,915 |
|
17,910 |
|
18,019 |
|
18,034 |
Diluted shares used for computation - airline only excluding special charges (thousands)(1) |
17,929 |
|
17,910 |
|
18,019 |
|
18,034 |
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share as reported (GAAP) |
$ (0.13) |
|
$ 2.87 |
|
$ 6.29 |
|
$ 0.14 |
Diluted airline earnings per share excluding special charges(1) |
$ 0.86 |
|
$ 3.04 |
|
$ 8.82 |
|
$ 2.46 |
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Reconciliation of airline operating CASM excluding fuel and special charges (millions) |
|
|
|
|
|
|
|
Consolidated operating expense (GAAP) |
$ 600.4 |
|
$ 522.4 |
|
$ 2,288.9 |
|
$ 2,210.2 |
Less fuel expense |
175.9 |
|
185.2 |
|
695.9 |
|
814.8 |
Less non-airline operating expense(1) |
12.8 |
|
2.9 |
|
33.4 |
|
45.3 |
Less airline special charges(1)(5) |
19.9 |
|
0.1 |
|
35.1 |
|
0.6 |
Total airline operating expense less fuel and airline special charges(1)(7) |
$ 391.8 |
|
$ 334.2 |
|
$ 1,524.5 |
|
$ 1,349.5 |
|
|
|
|
|
|
|
|
System available seat miles (millions) |
4,607.2 |
|
4,358.2 |
|
18,772.1 |
|
18,419.0 |
Cost per available seat mile (cents) |
13.03 |
|
11.99 |
|
12.19 |
|
12.00 |
Cost per available seat mile excluding non-airline expense (cents) |
12.75 |
|
11.92 |
|
12.02 |
|
11.75 |
Cost per available seat mile excluding fuel, non-airline expense, and airline special charges (cents) |
8.50 |
|
7.67 |
|
8.12 |
|
7.33 |
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Reconciliation of operating income excluding special charges (millions) |
|
|
|
|
|
|
|
Operating income as reported (GAAP) |
$ 10.6 |
|
$ 89.2 |
|
$ 221.0 |
|
$ 91.6 |
Sunseeker special charges, net of recoveries(5) |
(11.0) |
|
(1.0) |
|
(6.4) |
|
34.0 |
Airline special charges(5) |
19.9 |
|
0.1 |
|
35.1 |
|
0.6 |
Operating income, excluding special charges(1)(6) |
$ 19.5 |
|
$ 88.3 |
|
$ 249.7 |
|
$ 126.2 |
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Reconciliation of Airline net income (millions) |
|
|
|
|
|
|
|
Income (loss) before income taxes as reported (GAAP) |
$ (1.8) |
|
$ 65.9 |
|
$ 159.1 |
|
$ 5.0 |
Non-airline loss before income taxes(1) |
8.0 |
|
4.6 |
|
29.0 |
|
53.0 |
Airline income before income taxes(1) |
$ 6.2 |
|
$ 70.5 |
|
$ 188.1 |
|
$ 58.0 |
Airline only income taxes(1)(3) |
3.0 |
|
14.9 |
|
47.6 |
|
13.4 |
Airline net income(1) |
$ 3.2 |
|
$ 55.6 |
|
$ 140.5 |
|
$ 44.6 |
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Consolidated EBITDA and Consolidated EBITDA, excluding special charges(millions) |
|
|
|
|
|
|
|
Net income (loss) as reported (GAAP) |
$ (2.0) |
|
$ 52.5 |
|
$ 117.6 |
|
$ 2.5 |
Interest expense, net |
12.1 |
|
23.6 |
|
61.4 |
|
86.6 |
Income tax expense |
0.2 |
|
13.4 |
|
41.5 |
|
2.5 |
Depreciation and amortization(7) |
58.7 |
|
51.9 |
|
223.1 |
|
197.5 |
Consolidated EBITDA(1) |
$ 69.0 |
|
$ 141.4 |
|
$ 443.6 |
|
$ 289.1 |
Special charges, net of recoveries(3) |
8.8 |
|
(0.8) |
|
28.6 |
|
34.6 |
Consolidated EBITDA, excluding special charges(1)(6) |
$ 77.8 |
|
$ 140.6 |
|
$ 472.2 |
|
$ 323.7 |
|
|
|
|
|
|
|
|
Airline EBITDA, excluding special charges (millions) |
|
|
|
|
|
|
|
Income (loss) before taxes as reported (GAAP) |
$ (1.8) |
|
$ 65.9 |
|
$ 159.1 |
|
$ 5.0 |
Non-airline loss before taxes(1) |
8.0 |
|
4.6 |
|
29.0 |
|
53.0 |
Airline special charges(1)(7) |
19.9 |
|
0.1 |
|
35.1 |
|
0.6 |
Airline income before taxes, excluding special charges(1)(2) |
$ 26.1 |
|
$ 70.6 |
|
$ 223.2 |
|
$ 58.6 |
Airline interest expense, net(1) |
14.0 |
|
21.8 |
|
62.8 |
|
78.9 |
Airline depreciation and amortization(1)(7) |
56.7 |
|
51.9 |
|
220.9 |
|
197.4 |
Airline EBITDA, excluding special charges(1)(7) |
$ 96.8 |
|
$ 144.3 |
|
$ 506.9 |
|
$ 334.9 |
|
|
(1) |
Denotes non-GAAP figure. |
(2) |
Utilizing an annual airline-only, excluding special charge effective tax rate of 26.2% for 2023 and 23.2% for 2022 and fourth quarter effective tax rates of 39.1% for 2023 and 21.3% for 2022. |
(3) |
Utilizing an annual airline-only effective tax rate of 25.3% for 2023 and 23.1% for 2022 and fourth quarter effective tax rates of 48.7% for 2023 and 21.1% for 2022. |
(4) |
Utilizing an annual consolidated, excluding special charge effective tax rate of 27.2% for 2023 and 16.2% for 2022 and fourth quarter effective tax rates of 65.8% for 2023 and 16.9% for 2022. |
(5) |
In 2023 and 2022, we recognized as special charges the full amount of estimated property damage to |
(6) |
Adjusted to exclude the impacts of property damage to |
(7) |
Adjusted to exclude aircraft accelerated depreciation charges related to our revised fleet plan. |
* |
Note that amounts may not recalculate due to rounding |
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