Announces
Grew
Expect Delivery of 10-12 New Aircraft in FY 2024
First Quarter 2024 Financial Highlights
-
Total revenue was
$13.2 million -
Aircraft usage revenue was
$11.5 million -
Managed services revenue was
$1.7 million
-
Aircraft usage revenue was
-
Net loss was
$17.4 million , including the impact of a$0.2 million non-cash charge -
Adjusted EBITDA1 was a loss of
$13.1 million
[1] Adjusted EBITDA is a non-GAAP measure. Please refer to the tables and related notes in this press release for a reconciliation and definition of non-GAAP financial measures. |
Financial and Operational Highlights
- Grew flight hours 39% and blended yield 8% year-over-year in the first quarter of 2024
- Achieved demand mix of 50% owner and 50% program & ad hoc in the first quarter, reflecting strong demand and contributing to blended yield
-
Announced first cash-positive month for Vaunt in
March 2024 , Volato’s subscription platform for connecting travelers to empty leg private flights -
Subsequent to quarter end, signed a term sheet for
$14.5 million in financing including$13.0 million to unlock deposits made by the Company for Gulfstream G280 orders and a$1.5 million equity commitment - Company is evaluating additional sources of liquidity to support working capital and growth ahead of expected aircraft deliveries in 2024
-
Implemented cost-saving measures to reduce SG&A spend by approximately
$3 million per quarter, further strengthen its financial position and align resources for the next phase of company growth
Company Commentary
Key Metrics
(financial metrics in thousands, except KPIs)
|
Three Months Ended |
|
|
|
|
|
Change YoY |
Financial Metrics: |
|||
Revenue: |
|
|
|
Aircraft sales |
- |
5,710 |
(100)% |
Aircraft Usage |
11,516 |
6,704 |
72% |
Managed aircraft |
1,695 |
3,271 |
(48)% |
Total Revenue |
13,211 |
15,685 |
(16)% |
Net Loss |
(17,390) |
(7,515) |
131% |
Adjusted EBITDA |
(13,095) |
(6,683) |
96% |
|
|
|
|
Key Performance Indicators (KPIs): |
|
|
|
Total |
2,926 |
2,103 |
+39% |
Empty Percentage |
35.1% |
41.2% |
-6.1 pp |
Demand Mix |
|
|
|
Owner |
50% |
55% |
-5 pp |
Non-Owner |
50% |
45% |
+5 pp |
Blended Yield |
|
|
+8% |
Floating Fleet |
26 |
15 |
+11 |
Light Jet Market Share |
2.5% |
1.7% |
+0.8 pp |
Net Promoter Score |
82 |
86 |
-4 |
First Quarter 2024 Financial Summary
Total revenue for the first quarter decreased 16% primarily due to no aircraft deliveries in Q1 2024, offset by 72% year-over-year growth in aircraft usage. Aircraft usage revenue for the fourth quarter increased primarily due to growth in our floating fleet and improvements in our blended yield.
Net Loss for the first quarter increased 131% and Adjusted EBITDA loss for the first quarter increased to
The growth in our floating fleet contributed to an increase in first quarter 2024 flight hours of 39% over the prior year.
Demand mix continues to improve with 50% of flight hours represented by higher yielding non-owner flights, increasing the first quarter 2024 blended yield to
Balance Sheet and Liquidity
The Company ended the first quarter 2024 with
The company implemented cost-saving measures to reduce SG&A expenses by approximately
With the anticipated closing of the financing, forecasted aircraft sales, and the cost-saving measures, the Company believes that it will have sufficient cash to achieve profitability.
Conference Call
Volato will host a conference call to discuss its First Quarter 2024 results at
Interested parties can access the conference call by dialing (866) 605-1830 for toll free access or +1 (215) 268-9881. The live call will also be available via webcast on Volato’s Investor Relations website: https://ir.flyvolato.com/.
A replay of the call will be available until
About Volato
Volato (NYSE American: SOAR) is a leader in private aviation, redefining air travel through modern, efficient, and customer-designed solutions. Volato provides a fresh approach to fractional ownership, aircraft management, jet card, deposit and charter programs, all powered by advanced, proprietary mission control technology. Volato's fractional programs uniquely offer flexible hours and a revenue share for owners across the world’s largest fleet of HondaJets, which are optimized for missions of up to four passengers. For more information visit www.flyvolato.com.
All Volato Part 135 charter flights are operated by its DOT/
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management or the Board’s current expectations or predictions of future conditions, events, or results. All statements that address operating performance, events, or developments that may occur in the future are forward-looking statements, including statements regarding the challenges associated with executing our growth strategy, including expected deliveries of aircraft and related sales, and developing, marketing and consistently delivering high-quality services that meet customer expectations. All forward-looking statements speak only as of the date they are made and reflect the Company’s good faith beliefs, assumptions, and expectations, but they are not guarantees of future performance or events. Furthermore, Volato disclaims any obligation to publicly update or revise any forward-looking statement, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive, and regulatory factors, many of which are beyond Volato’s control, that are described in Volato’s periodic reports filed with the
VOLATO GROUP, INC. |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(Amounts in thousands, except par value amounts) |
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash |
$ |
6,442 |
|
|
$ |
14,486 |
|
Restricted cash |
|
1,845 |
|
|
|
— |
|
Accounts receivable, net |
|
2,446 |
|
|
|
2,990 |
|
Deposits |
|
25,200 |
|
|
|
25,125 |
|
Prepaid expenses and other current assets |
|
3,624 |
|
|
|
3,897 |
|
Total current assets |
|
39,557 |
|
|
|
46,498 |
|
|
|
|
|
||||
Property and equipment, net |
|
837 |
|
|
|
846 |
|
Operating lease, right-of-use assets |
|
1,198 |
|
|
|
1,278 |
|
Equity-method investment |
|
158 |
|
|
|
154 |
|
Deposits |
|
21,656 |
|
|
|
15,691 |
|
Forward purchase agreement |
|
2,755 |
|
|
|
2,982 |
|
Restricted cash |
|
— |
|
|
|
2,237 |
|
Intangibles, net |
|
1,376 |
|
|
|
1,391 |
|
|
|
635 |
|
|
|
635 |
|
Total assets |
$ |
68,172 |
|
|
$ |
71,712 |
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
10,898 |
|
|
$ |
8,588 |
|
Loan from related party |
|
1,000 |
|
|
|
1,000 |
|
Operating lease liability |
|
338 |
|
|
|
326 |
|
Merger transaction costs payable in shares |
|
— |
|
|
|
4,250 |
|
Credit facility and other loans |
|
20,007 |
|
|
|
20,616 |
|
Customer deposits and deferred revenue |
|
19,029 |
|
|
|
12,857 |
|
Total current liabilities |
|
51,272 |
|
|
|
47,637 |
|
|
|
|
|
||||
Deferred income tax liability |
|
305 |
|
|
|
305 |
|
Operating lease liability, non-current |
|
875 |
|
|
|
965 |
|
Credit facility, non-current |
|
14,026 |
|
|
|
8,054 |
|
Total liabilities |
$ |
66,478 |
|
|
$ |
56,961 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
||||
|
|
|
|
||||
Shareholders’ equity: |
|
|
|
||||
Common Stock Class A, |
|
3 |
|
|
|
3 |
|
Additional paid-in capital |
|
82,743 |
|
|
|
78,410 |
|
Accumulated deficit |
|
(81,052 |
) |
|
|
(63,662 |
) |
Total shareholders’ equity |
|
1,694 |
|
|
|
14,751 |
|
Total liabilities and shareholders’ equity |
$ |
68,172 |
|
|
$ |
71,712 |
|
VOLATO GROUP, INC. |
|||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(Amounts in thousands, except share and per share data) |
|||||||
(unaudited) |
|||||||
|
For the Three Months Ended
|
||||||
|
2024 |
|
2023 |
||||
Revenue |
$ |
13,211 |
|
|
$ |
15,665 |
|
|
|
|
|
||||
Costs and expenses: |
|
|
|
||||
Cost of revenue |
|
17,492 |
|
|
|
17,363 |
|
Selling, general and administrative |
|
11,742 |
|
|
|
6,215 |
|
Total costs and expenses |
|
29,234 |
|
|
|
23,578 |
|
|
|
|
|
||||
Loss from operations |
|
(16,023 |
) |
|
|
(7,913 |
) |
|
|
|
|
||||
Other income (expenses): |
|
|
|
||||
Gain from sale of consolidated entity |
|
— |
|
|
|
387 |
|
Gain from sale of equity-method investment |
|
— |
|
|
|
863 |
|
Other income |
|
4 |
|
|
|
42 |
|
Loss from change in fair value forward purchase agreement |
|
(227 |
) |
|
|
— |
|
Interest expense, net |
|
(1,138 |
) |
|
|
(894 |
) |
Other expenses |
|
(1,361 |
) |
|
|
398 |
|
|
|
|
|
||||
Loss before provision for income taxes |
|
(17,384 |
) |
|
|
(7,515 |
) |
Provision for incomes taxes |
|
6 |
|
|
|
— |
|
Net Loss |
$ |
(17,390 |
) |
|
$ |
(7,515 |
) |
|
|
|
|
||||
Basic and diluted net loss per share |
$ |
(0.60 |
) |
|
$ |
(0.67 |
) |
|
|
|
|
||||
Weighted average common share outstanding: |
|
|
|
||||
Basic and diluted |
29,116,201 |
11,268,877 |
|
Adjusted EBITDA
We calculate Adjusted EBITDA as net loss adjusted for (i) interest expense, net, (ii) provision for income taxes (benefit) (iii) depreciation and amortization, (iv) equity-based compensation expense, (v) acquisition, integration, and capital raise related expenses, and (vi) other items not indicative of our ongoing operating performance. We include Adjusted EBITDA as a supplemental measure for assessing operating performance.
The following tables reconcile Adjusted EBITDA to net loss, which is the most directly comparable GAAP measure (in thousands):
|
Three Months Ended |
||||||
Adjusted EBITDA |
2024 |
|
2023 |
||||
Net loss |
$ |
(17,390 |
) |
|
$ |
(7,512 |
) |
Interest expense, net |
|
1,138 |
|
|
|
894 |
|
Provision for income tax expense |
|
6 |
|
|
|
— |
|
Loss from change in fair value of forward purchase agreement |
|
227 |
|
|
|
— |
|
Depreciation and amortization |
|
80 |
|
|
|
45 |
|
Equity-based compensation expense |
|
83 |
|
|
|
8 |
|
Gain from sale of consolidated entity |
|
— |
|
|
|
(387 |
) |
Gain from sale of equity-method investment |
|
— |
|
|
|
(863 |
) |
Other income |
|
(4 |
) |
|
|
(42 |
) |
Other items not indicative of our ongoing operating performance(1) |
|
2,765 |
|
|
|
1,174 |
|
Adjusted EBITDA |
$ |
(13,095 |
) |
|
$ |
(6,683 |
) |
|
|
|
|
||||
|
|
|
|
||||
(1) Represents cost incurred related to the cost savings initiative and business realignment. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240514269337/en/
For Media:
media@flyvolato.com
For Investors:
investors@flyvolato.com
Source: