Sky Harbour Group Corporation Announces its 2023 Financial Results; Updates on New Ground Leases, Construction and Hangar Leasing; Injects Equity into Obligated Group and Files Various Registration Statements with SEC
10K:https://www.sec.gov/ix?doc=/Archives/edgar/data/0001823587/000143774924009585/ysac20231231_10k.htm
S-3 (ATM): https://www.sec.gov/Archives/edgar/data/1823587/000143774924009600/ysac20240326_s3.htm
S-3 (PIPE): https://www.sec.gov/Archives/edgar/data/1823587/000143774924009599/ysac20240325_s3.htm
Financial Highlights include:
- 2023 revenues increased 311% as compared to 2022.
- 2023 SG&A expenses increased 2.8% as compared to 2022.
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Net cash used in operating activities during 2023 improved to
$7.7 million from$27.5 million during 2022. -
Please see the link below for the Q4 2023 quarterly report as filed by
Sky Harbour Capital LLC (“SH Capital” or the “Obligated Group”) in MSRB/EMMA: https://emma.msrb.org/P21785011-P21370409-P21809128.pdf -
The Company continues to maintain strong liquidity and capital resources. As of
December 31, 2023 , cash, restricted cash, andUS Treasury investments amounted to approximately$172 million , of which$99 million resided atSH Capital .
Recent noteworthy events include:
- New ground lease at SJC, encompassing an existing hangar facility to be made operational over the coming several weeks, and land for additional future development.
- New ground lease at ORL, with expected construction commencement in Q2 2025.
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Construction of Phases 1 in
Denver ,Phoenix , and Dallas delayed by 3-4 months, with an estimated$26 -$28 million non-recurring remediation cost. Revised expected completion dates areDecember 2024 ,February 2025 , andMarch 2025 , respectively. -
Houston ,Nashville , andMiami campuses are stabilized at 95% leased, with potential full occupancy expected at over 100%. TheSan Jose facility is 58% pre-leased, with an expected operations start date ofApril 1, 2024 .
Site Acquisition Update
The Company and the
The Company and the
Exclusive ground-lease negotiations are underway at five new target airports. Formal ground lease proposals have been submitted or are pending at an additional eight new target airports.
The Company expects to have executed ground leases at three additional airports by the end of 2024 and an additional six airports by end of year 2025 representing an additional aggregate rentable square footage of more than 2 million square feet, primarily in markets with higher per-square-foot tenant rents than those in the first Obligated Group’s six airports.
Construction Update
As previously announced, in
Having completed a comprehensive review and prototype-redesign process with a leading national structural engineering firm, the Company is executing a remediation plan, including:
- Retrofitting significant elements of the DVT and APA structures currently under construction,
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Modifying the design of ADS structures in pre-construction to conform with
Sky Harbour prototype requirements, and -
Applying the amended SH34 and SH16C prototype design to future projects with the intention of:
- Delivering best-in-class 100-year structures of the highest quality and
- Standardizing and streamlining procurement, manufacturing and construction in pursuit of shorter development time frames and lower development costs.
Expected remediation costs are between
Leasing Update
Sky Harbour’s first three campus phases (SGR, BNA and OPF 1) are approximately 95% occupied. Total potential economic occupancy is expected to exceed 100% due to successes in semi-private leasing.
SJC is expected to commence operations on
Registration of prior PIPE Shares, Replacement of Stand-By Share Sale Program and New “Shelf” Registration
As required under the registration rights agreement with the PIPE common stock investors which closed in
Equity Cash Infusion into PABs Series 2021
On
CEO Remarks
“Sky Harbour’s efforts to ramp up site acquisition in 2023 are bearing fruit today and should accelerate throughout 2024 and 2025. Having established our baseline unit economics, the Site Acquisition team’s focus is shifting to the country’s tier-1 metro markets, where excess demand for business aviation hangar space most acutely manifests in higher hangar rents. With prototype design weaknesses addressed rigorously and rectified, we are structuring and growing the Sky Harbour Development Team to accommodate the anticipated scale-up in manufacturing and construction. The Airfield Operations team continues to focus on delivering the most efficient and personalized service suite in business aviation.
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About
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 may include statements for the period following the consummation of the business combination. 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 SHG as applicable and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. 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. These risks and uncertainties include, but are not limited to, those discussed and identified in the public filings made or to be made with the
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Investor Relations:
investors@skyharbour.group
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