Allegiant Travel : Third Quarter 2024 Financial Statement

Published: 2024-10-30 21:11:06 ET ALGT

Exhibit 99.1

ALLEGIANT TRAVEL COMPANY

THIRD QUARTER 2024 FINANCIAL RESULTS

Third quarter 2024 GAAP diluted loss per share of $(2.05)

Third quarter 2024 diluted loss per share, excluding special charges, of $(2.02)(1)(3)

Third quarter 2024 airline only diluted loss per share, excluding special charges, of $(0.49)(1)(3)

LAS VEGAS. October 30, 2024 - Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the third quarter 2024, as well as comparisons to the prior year:

Consolidated

Three Months Ended September 30,

Percent Change

(unaudited) (in millions, except per share amounts)

2024

2023

YoY

Total operating revenue

562.2

565.4

(0.6)%

Total operating expense

588.5

583.2

0.9 %

Operating loss

(26.3)

(17.9)

46.9 %

Loss before income taxes

(43.4)

(29.9)

45.2 %

Net loss

(36.8)

(25.1)

46.6 %

Diluted loss per share

(2.05)

(1.44)

42.4 %

Sunseeker special charges, net of recoveries(3)

1.1

17.4

(93.7)%

Airline special charges(3)

7.7

15.2

(49.3)%

Income before income taxes, excluding special charges net of

(34.7)

2.7

recoveries(1)(3)

Net income (loss), excluding special charges net of recoveries(1)(3)

(36.1)

2.0

Diluted earnings (loss) per share excluding special charges net of

(2.02)

0.09

recoveries(1)(3)

Airline only

Three Months Ended September 30,

Percent Change(2)

(unaudited) (in millions, except per share amounts)

2024

2023

YoY

Airline operating revenue

549.1

565.4

(2.9)%

Airline operating expense

556.2

559.5

(0.6)%

Airline operating income (loss)

(7.0)

5.8

Airline loss before income taxes

(18.6)

(7.4)

Airline special charges(3)

7.7

15.2

(49.3)%

Airline net income (loss), excluding special charges(1)(3)

(8.8)

5.9

Airline operating margin, excluding special charges(1)(3)

0.1 %

3.7 %

(3.6)

Airline diluted earnings (loss) per share, excluding special

(0.49)

0.31

charges(1)(3)

Consolidated

Nine Months Ended September 30,

Percent Change

(unaudited) (in millions, except per share amounts)

2024

2023

YoY

Total operating revenue

1,884.9

1,898.9

(0.7)%

Total operating expense

1,860.9

1,688.5

10.2 %

Operating income

24.0

210.4

(88.6)%

Income (loss) before income taxes

(26.8)

160.8

Net income (loss)

(24.0)

119.6

Diluted earnings (loss) per share

(1.38)

6.43

Sunseeker special charges, net of recoveries(3)

(2.6)

4.6

Airline special charges(3)

42.6

15.2

Income before income taxes, excluding special charges net of

13.2

180.6

(92.7)%

recoveries(1)(3)

Net income, excluding special charges net of recoveries(1)(3)

6.8

134.2

(94.9)%

Diluted earnings per share excluding special charges net of

0.35

7.22

(95.2)%

recoveries(1)(3)

Airline only

Nine Months Ended September 30,

Percent Change(2)

(unaudited) (in millions, except per share amounts)

2024

2023

YoY

Airline operating revenue

1,831.1

1,898.9

(3.6)%

Airline operating expense

1,767.0

1,668.0

5.9 %

Airline operating income

64.1

230.9

(72.2)%

Airline income before income taxes

29.4

181.9

(83.8)%

Airline special charges(3)

42.6

15.2

Airline net income, excluding special charges(1)(3)

51.9

148.8

(65.1)%

Airline operating margin, excluding special charges(1)(3)

5.8 %

13.0 %

(7.2)

Airline diluted earnings per share, excluding special charges(1)(3)

2.83

8.00

(64.6)%

Not meaningful

"Our seasonally weakest quarter concluded with a diluted loss per share of $2.05," stated Gregory Anderson, president and CEO of Allegiant Travel Company. "Despite facing challenges from Crowdstrike and Hurricane Helene, the airline surpassed our initial expectations by achieving a positive operating margin for the quarter. Throughout the quarter, we observed sustained strength in demand, with unit revenues turning positive on a year-over-year basis in the final weeks. Particularly noteworthy was the ancillary revenue per passenger, which reached $74.02, reflecting a three percent increase from the previous year due in part to the success of both the Allegiant Extra product and the cobrand credit card.

"As we entered the fourth quarter, our network experienced substantial disruptions due to the severe impact of Hurricane Milton and the continuing effects of Hurricane Helene. Ensuring the safety of our customers and team members remains our top priority, and I am extremely proud of our team's response during these challenging times. The hurricanes have led to a temporary decline in demand in certain cities along the West Coast of Florida and in Asheville, North Carolina. Approximately 25 percent of the seats scheduled to be flown in the fourth quarter are to destinations currently facing this short-term demand weakness. We anticipate that demand will return to normal by the end of the year and have adjusted our capacity accordingly. Load factors in the affected areas are expected to stay lower, resulting in a four-percentage point decline in our airline-only operating margin during the fourth quarter, which we now estimate to be around seven percent.

"Despite these short-term headwinds, I am pleased with the progress the team has made towards our three key initiatives - restoring peak utilization, the integration of the Boeing MAX aircraft, and various revenue initiatives.

"Lastly we continue to work with our experienced hospitality team alongside our best-in-class advisors to help us optimize the value of the asset and appropriately navigate discussions with potential partners. Sunseeker is an amazing resort that we see meaningful asset value in and are committed to making decisions that align with the best interest of our stakeholders.

"I am incredibly proud of the progress the team is making to restore the earnings potential of our unique model. We are building the foundation to improved financial performance in 2025 and beyond."

Third Quarter 2024 Results and Highlights

Balance Sheet, Cash and Liquidity

Airline Capital Expenditures

Sunseeker Resort Charlotte Harbor

Guidance, subject to revision

Certain forward-looking financial information in the following tables is not presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Non-GAAP financial figures may be useful to stakeholders, but should not be considered a substitute for GAAP figures. In reliance on the 'unreasonable efforts' exception in Item 10(e)(1)(i)(B) of SEC Regulation S-K, a reconciliation to the most comparable GAAP financial measure is not provided for airline-only loss per share, excluding special charges, consolidated loss per share, excluding special charges, and Sunseeker EBITDA, excluding special charges. The Company is not able to reconcile these Non-GAAP financial figures without unreasonable effort because the special charge adjustments will not be known until the end of the indicated future periods and any range of projected values would be too broad to be meaningful. As a result, this information would not be significant to investors.

Fourth quarter 2024 airline-only guidance

System ASMs - year over year change

~1.5%

Scheduled service ASMs - year over year change

~1.5%

Fuel cost per gallon

2.50

Operating margin

6.0% to 8.0%

Airline-only earnings (loss) per share, excluding special charges(3)

$0.50 - 1.50

Fourth quarter 2024 consolidated guidance

Consolidated earnings (loss) per share, excluding special charges(3)

$0.00 - $1.00

Full-year 2024 airline-only guidance

System ASMs - year over year change

~0.5%

Scheduled service ASMs - year over year change

~0.5%

Interest expense (millions)

$150 to $160

Capitalized interest (1) (millions)

($40) to ($50)

Interest income (millions)

$35 to $45

Airline full-year CAPEX

Aircraft-related capital expenditures(2) (millions)

$105 to $125

Capitalized deferred heavy maintenance (millions)

$80 to $90

Other airline capital expenditures (millions)

$105 to $115

Recurring principal payments (millions) (full year)

$135 to $145

Full-year 2024 Sunseeker guidance

EBITDA, excluding special charges(3) (4)

($25) to ($30)

Business interruption insurance proceeds related to delayed open

Up to $10m

Depreciation expense (millions)

~$25

Interest expense (millions)

~$20

Occupancy rate

~35%

Average daily rate

~$300

Aircraft Fleet Plan by End of Period

Aircraft - (seats per AC)

3Q24

YE24

Boeing 737-8200 (190 seats)

Airbus A320

(180-186 seats)

Airbus A320

(177 seats)

Airbus A319

(156 seats)

Total

122

The table above is provided based on the company's current plans and is subject to change. The numbers include aircraft expected to be in service at the end of each period and exclude aircraft that we expect to take delivery of but not to be placed in service until a subsequent period.

The above plan is management's best estimate and differs from our contractual obligations.

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, October 30, 2024 to discuss its third quarter 2024 financial results. A live broadcast of the conference call will be available via the Company's Investor Relations website homepage at http://ir.allegiantair.com. The webcast will also be archived in the "Events & Presentations" section of the website.

Allegiant Travel Company

Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most. Since 1999, Allegiant Air has linked travelers in underserved cities to world-class vacation destinations with all-nonstop flights and industry-low average fares. Today, Allegiant serves communities across the nation, with base airfares less than half the cost of the average domestic round trip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF.

Media Inquiries: [email protected]

Investor Inquiries: [email protected]

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 Sunseeker Resort operations, revenue, expenses and earnings, available seat mile growth, expected capital expenditures, the cost of fuel, the timing of aircraft acquisitions and retirements, the number of contracted aircraft to be placed in service in the future, our ability to consummate announced aircraft transactions, timing of collection of insurance proceeds, as well as other information concerning future results of operations, business strategies, financing plans, industry environment and potential growth opportunities. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "guidance," "anticipate," "intend," "plan," "estimate", "project", "hope" or similar expressions.

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 Securities and Exchange Commission at www.sec.gov. These risk factors include, without limitation, the impact of regulatory reviews of Boeing and labor actions on its aircraft delivery schedule, an accident involving, or problems with, our aircraft, public perception of our safety, our reliance on our automated systems, our reliance on Boeing and other third parties to deliver aircraft under contract to us on a timely basis, risk of breach of security of personal data, volatility of fuel costs, labor issues and costs, the ability to obtain regulatory approvals as needed , the effect of economic conditions on leisure travel, debt covenants and balances, the impact of government regulations on the airline industry, the ability to finance aircraft to be acquired, the ability to obtain necessary government approvals to implement the announced alliance with Viva Aerobus and to otherwise prepare to offer international service, terrorist attacks, risks inherent to airlines, our competitive environment, our reliance on third parties who provide facilities or services to us, the impact of the possible loss of key personnel, economic and other conditions in markets in which we operate, the ability to successfully operate Sunseeker Resort, increases in maintenance costs and availability of outside maintenance contractors to perform needed work on our aircraft on a timely basis and at acceptable rates, cyclical and seasonal fluctuations in our operating results, and the perceived acceptability of our environmental, social and governance efforts.

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:

Allegiant Travel Company

Consolidated Statements of Income

(in thousands, except per share amounts)

(Unaudited)

Three Months Ended September 30,

Percent Change

2024

2023

YoY

OPERATING REVENUES:

Passenger

488,989

516,251

(5.3)%

Third party products

39,423

30,944

27.4

Fixed fee contracts

20,559

17,741

15.9

Resort and other

13,225

423

Total operating revenues

562,196

565,359

(0.6)

OPERATING EXPENSES:

Salaries and benefits

195,326

163,004

19.8

Aircraft fuel

148,241

167,861

(11.7)

Station operations

70,632

64,630

9.3

Depreciation and amortization

63,918

55,816

14.5

Maintenance and repairs

30,278

35,477

(14.7)

Sales and marketing

24,869

28,468

(12.6)

Aircraft lease rentals

5,920

5,906

0.2

Other

40,563

29,432

37.8

Special charges, net of recoveries

8,790

32,648

(73.1)

Total operating expenses

588,537

583,242

0.9

OPERATING LOSS

(26,341)

(17,883)

(47.3)

OTHER (INCOME) EXPENSES:

Interest income

(10,071)

(12,444)

(19.1)

Interest expense

39,065

39,233

(0.4)

Capitalized interest

(11,923)

(14,888)

(19.9)

Other, net

135

(77.8)

Total other expenses

17,101

12,036

42.1

LOSS BEFORE INCOME TAXES

(43,442)

(29,919)

(45.2)

INCOME TAX BENEFIT

(6,653)

(4,853)

(37.1)

NET LOSS

(36,789)

(25,066)

(46.8)

Loss per share to common shareholders:

Basic

($2.05)

($1.44)

(42.4)

Diluted

($2.05)

($1.44)

(42.4)

Shares used for computation(1):

Basic

17,913

17,721

1.1

Diluted

17,913

17,721

1.1

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.

Not meaningful

Disclaimer

Allegiant Travel Co. published this content on October 31, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 31, 2024 at 01:10:02.751.