Exhibit 99.1
Allegiant Travel Company Reports Second Quarter 2007 Financial Results
Las Vegas, Nev., August 6 /PRNewswire/ – Allegiant Travel Company (NASDAQ: ALGT), parent company of Allegiant Air and Allegiant Vacations, today reported the following second quarter 2007 results, and comparisons to prior year equivalents:
Unaudited |
| 2Q07 |
| 2Q06 |
| Change |
| ||
Total operating revenue (millions) |
| $ | 88.9 |
| $ | 59.7 |
| 49.1 | % |
Operating income (millions) |
| $ | 14.2 |
| $ | 4.9 |
| 190.5 | % |
Operating margin |
| 15.9 | % | 8.2 | % |
|
| ||
|
|
|
|
|
|
|
| ||
Net income (millions) |
| $ | 10.0 |
| $ | 4.7 |
| 112.2 | % |
Diluted earnings per share |
| $ | 0.49 |
| $ | 0.28 |
| 75.0 | % |
|
|
|
|
|
|
|
| ||
Scheduled Service: |
|
|
|
|
|
|
| ||
Ancillary revenue per passenger |
| $ | 20.94 |
| $ | 14.63 |
| 43.1 | % |
Total revenue per ASM (cents) |
| 9.76 |
| 8.48 |
| 15.1 | % | ||
Average stage length (miles) |
| 921 |
| 1,035 |
| (10.9 | )% | ||
|
|
|
|
|
|
|
| ||
Total System*: |
|
|
|
|
|
|
| ||
Operating expense per ASM (cents) |
| 8.05 |
| 7.79 |
| 3.3 | % | ||
Operating expense per ASM, excluding fuel (cents) |
| 4.24 |
| 4.02 |
| 5.5 | % | ||
Average stage length (miles) |
| 901 |
| 983 |
| (8.3 | )% | ||
*Total system includes scheduled service, fixed fee contract and non-revenue flying.
“Our results in the second quarter continue to be in line with our expectations,” said Maurice J. Gallagher, Jr., Chairman, CEO and President of Allegiant Travel Company. “Year-over-year scheduled service passengers increased 58%, while scheduled service departures and ASMs were up 53% and 37%, respectively. Our superb team members delivered an operating margin almost on par with that of the first quarter despite significantly higher fuel prices in the second quarter. Further, our average scheduled fare per passenger at $108 was virtually the same as last year despite a nearly 11% decrease in scheduled stage length. This was driven primarily by our ancillary revenue component, which increased by over $6, year-over-year, to almost $21 per passenger.”
Gallagher continued, “Both Las Vegas and Orlando were substantially stronger year-over-year, with Orlando’s improvement significantly outpacing that of Las Vegas. Our new destination of Tampa/St. Petersburg continued to be strong during its initial second quarter. However, our third quarter, historically the most challenging, will be even more so if high fuel prices persist. In light of high fuel prices, we are more focused than ever on other costs: in the second quarter, CASM ex-fuel increased only 5.5% over the prior year, despite an 8.3% reduction in system stage length. Given current high fuel prices and recent weaknesses in credit markets, we are pleased our balance sheet remains one of the best in the industry.”
Linda Marvin, Allegiant Travel Company CFO, stated, “As of June 30, 2007 cash and short-term investments were $186 million. This balance includes $22 million of net
1
proceeds generated through a secondary stock offering which we completed during the second quarter. With the completion of this secondary offering, more than 50% of Allegiant’s stock is now publicly held.”
During the second quarter, Allegiant Air initiated service to seven new small cities and on eleven new routes. We recently announced that in the fourth quarter we will add Phoenix-Mesa, Arizona and Ft. Lauderdale, Florida, to our network as our fourth and fifth “world class leisure destinations”, basing two aircraft at each city by year-end. These aircraft will serve a total of 25 new routes by December 31, all but one of which will be to an existing small city in the Allegiant Air network.
We have separately announced six other new routes and four other new small cities to be initiated by year-end 2007. We expect to make further new service announcements in the near future. The following table summarizes year-over-year and recent changes in Allegiant Air’s scheduled service network:
Network Summary* |
| July 31, 2007 |
| June 30, 2007 |
| June 30, 2006 |
|
“World-class leisure destinations” |
| 3 |
| 3 |
| 2 |
|
Small cities served |
| 48 |
| 50 |
| 40 |
|
Total cities served |
| 51 |
| 53 |
| 42 |
|
|
|
|
|
|
|
|
|
Routes to Las Vegas |
| 38 |
| 39 |
| 33 |
|
Routes to Orlando |
| 24 |
| 25 |
| 16 |
|
Routes to Tampa Bay/St. Petersburg |
| 14 |
| 14 |
| 0 |
|
Other routes |
| 2 |
| 2 |
| 0 |
|
Total routes |
| 78 |
| 80 |
| 49 |
|
* includes cities served seasonally
Allegiant also leased two additional MD-80 aircraft during the second quarter, one of which was placed in service by quarter end. The other leased MD-80 was placed into service in July, along with an owned MD-80, bringing our current operating fleet to 29 MD-80 aircraft. Additionally, in July we bought eight spare engines, currently leased to another operator, which are scheduled to be returned to us in October. We may continue to lease some of these engines to other operators until such time as we need them.
We also have committed to purchase a total of eight MD-80 aircraft for delivery to us through the first quarter of 2008. Of these eight aircraft, six would come with seller-financing. The following table summarizes year-over-year and recent changes in Allegiant Air’s fleet:
MD-80 Aircraft in Service |
| July 31, 2007 |
| June 30, 2007 |
| June 30, 2006 |
|
Owned (including capital leases) |
| 25 |
| 24 |
| 15 |
|
Leased |
| 4 |
| 3 |
| 6 |
|
Total |
| 29 |
| 27 |
| 21 |
|
At this time, Allegiant Travel Company provides the following guidance to investors, which are subject to revision:
2
· We expect third quarter Allegiant Air year-over-year ASM growth of at least 29% and departure growth of at least 32%.
· We expect fourth quarter 2007 year-over-year ASM growth of at least 40% and departure growth of at least 35%.
· We expect full-year 2008 year-over-year ASM growth of at least 30% and departure growth of at least 25%.
· By the end of the year, Allegiant Air expects to operate at least 32 MD-80 aircraft. There currently appear to be sufficient high-quality MD-80 aircraft available on the market to support Allegiant Air growth.
The current status of Allegiant Air’s fuel hedging program is summarized below:
|
| 3Q07 |
| 4Q07 |
| 1Q08 |
| 2Q08 |
| ||
Expected scheduled service jet fuel consumption hedged |
| 38 | % | 10 | % | N/M |
| 0 | % | ||
All-in cost per gallon of hedged jet fuel* |
| $ | 2.27 |
| $ | 2.34 |
| N/M |
| — |
|
* includes approximately $0.24 per gallon in expenses above the raw cost of jet fuel
We may yet enter into further fuel hedge transactions for September 2007 fuel consumption.
Allegiant Travel Company will host a conference call with analysts at 1 pm EDT tomorrow, August 7, 2007, to discuss our second quarter 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.
About the Company
Las Vegas-based Allegiant Travel Company (NASDAQ: ALGT), is focused on linking travelers in small cities to world-class leisure destinations such as Las Vegas, Nev., Orlando, Fla. and Tampa/St. Petersburg, Fla. Through its subsidiary, Allegiant Air, LLC the Company operates a low-cost, high-efficiency, all-jet passenger airline offering air travel both on a stand-alone basis and bundled with hotel rooms, rental cars and other travel related services. ALGT/G
Media Inquiries: Tyri Squyres +1-702-851-7370
mediarelations@allegiantair.com
Investor Inquiries: Robert Ashcroft +1-702-430-3275
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 revenues, future earnings per share, ASM growth, departure growth, fleet growth and expected fuel consumption and expense, as well as information concerning future results of operations,
3
business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. 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,” “anticipate,” “intend,” “plan,” “estimate” 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 and registration statements filed with the Securities and Exchange Commission at www.sec.gov. These risk factors include, without limitation, increases in fuel prices, terrorist attacks, risks inherent to airlines, demand for air services to Las Vegas, Orlando, Tampa/St. Petersburg, Phoenix and Ft. Lauderdale from the markets served by us, our ability to implement our growth strategy, our fixed obligations, our dependence on the Las Vegas, Orlando, Tampa/St. Petersburg, Phoenix and Ft. Lauderdale markets, our ability to add, renew or replace gate leases, our competitive environment, problems with our aircraft, dependence on fixed fee customers, economic and other conditions in markets in which we operate, governmental regulation, increases in maintenance costs and insurance premiums and cyclical and seasonal fluctuations in our operating results.
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:
4
Allegiant Travel Company
Consolidated Statements of Income
Quarters Ended June 30, 2007 and 2006
(in thousands, except per share amounts)
(Unaudited)
|
| Three months ended June 30, |
| Percent |
| ||||
|
| 2007 |
| 2006 |
| change |
| ||
OPERATING REVENUE: |
|
|
|
|
|
|
| ||
Scheduled service revenues |
| $ | 65,622 |
| $ | 44,816 |
| 46.4 |
|
Fixed fee contract revenues |
| 7,533 |
| 7,887 |
| (4.5 | ) | ||
Ancillary revenues |
| 15,786 |
| 6,966 |
| 126.6 |
| ||
Total operating revenue |
| 88,941 |
| 59,669 |
| 49.1 |
| ||
|
|
|
|
|
|
|
| ||
OPERATING EXPENSES: |
|
|
|
|
|
|
| ||
Aircraft fuel |
| 35,458 |
| 26,515 |
| 33.7 |
| ||
Salary and benefits |
| 12,046 |
| 8,375 |
| 43.8 |
| ||
Station operations |
| 8,198 |
| 6,169 |
| 32.9 |
| ||
Maintenance and repairs |
| 5,692 |
| 3,776 |
| 50.7 |
| ||
Sales and marketing |
| 3,033 |
| 2,324 |
| 30.5 |
| ||
Aircraft lease rentals |
| 657 |
| 1,545 |
| (57.5 | ) | ||
Depreciation and amortization |
| 3,715 |
| 2,519 |
| 47.5 |
| ||
Other |
| 5,984 |
| 3,573 |
| 67.5 |
| ||
Total operating expenses |
| 74,783 |
| 54,796 |
| 36.5 |
| ||
|
|
|
|
|
|
|
| ||
OPERATING INCOME |
| 14,158 |
| 4,873 |
| 190.5 |
| ||
As a percent of total operating revenue |
| 15.9 | % | 8.2 | % |
|
| ||
|
|
|
|
|
|
|
| ||
OTHER (INCOME) EXPENSE: |
|
|
|
|
|
|
| ||
Gain on fuel derivatives, net |
| (380 | ) | (310 | ) | 22.6 |
| ||
Earnings from joint venture, net |
| (195 | ) | — |
| N/M |
| ||
Interest income |
| (2,409 | ) | (757 | ) | 218.2 |
| ||
Interest expense |
| 1,361 |
| 1,196 |
| 13.8 |
| ||
Total other (income) expense |
| (1,623 | ) | 129 |
| N/M |
| ||
|
|
|
|
|
|
|
| ||
INCOME BEFORE INCOME TAXES |
| 15,781 |
| 4,744 |
| 232.7 |
| ||
As a percent of total operating revenue |
| 17.7 | % | 8.0 | % |
|
| ||
|
|
|
|
|
|
|
| ||
PROVISION FOR INCOME TAXES |
| 5,805 |
| 42 |
| N/M |
| ||
|
|
|
|
|
|
|
| ||
NET INCOME |
| $ | 9,976 |
| $ | 4,702 |
| 112.2 |
|
As a percent of total operating revenue |
| 11.2 | % | 7.9 | % |
|
| ||
|
|
|
|
|
|
|
| ||
Earnings per share |
|
|
|
|
|
|
| ||
Basic |
| $ | 0.50 |
| $ | 0.73 |
| (31.5 | ) |
Diluted |
| $ | 0.49 |
| $ | 0.28 |
| 75.0 |
|
|
|
|
|
|
|
|
| ||
Weighted Average Shares Outstanding |
|
|
|
|
|
|
| ||
Basic |
| 19,988 |
| 6,433 |
| 210.7 |
| ||
Diluted |
| 20,433 |
| 16,684 |
| 22.5 |
| ||
|
|
|
|
|
|
|
| ||
Unaudited pro forma data (reflecting change in tax status)(1) |
|
|
|
|
|
|
| ||
Income before income taxes |
| $ | 15,781 |
| $ | 4,744 |
| 232.7 |
|
Pro-forma provision for income taxes |
| 5,805 |
| 1,755 |
| 230.8 |
| ||
Pro-forma net income |
| $ | 9,976 |
| $ | 2,989 |
| 233.8 |
|
Unaudited net income per share data (reflecting change in tax status) |
|
|
|
|
|
|
| ||
Basic pro-forma net income per share |
| $ | 0.50 |
| $ | 0.47 |
| 6.4 |
|
Diluted pro-forma net income per share |
| $ | 0.49 |
| $ | 0.18 |
| 172.2 |
|
5
(1) Prior to its December 2006 initial public offering, the Company was organized as a limited liability company (LLC) and as such was generally not subject to income taxes, except in certain state and local jurisdictions. The pro-forma tax provision reflects income taxes as if the company were organized as a corporation effective January 1, 2006.
6
Allegiant Travel Company
Operating Statistics
Quarters Ended June 30, 2007 and 2006
(Unaudited)
|
| Three months ended June 30, |
| Percent |
| ||||
|
| 2007 |
| 2006 |
| change* |
| ||
OPERATING STATISTICS |
|
|
|
|
|
|
| ||
Total system statistics |
|
|
|
|
|
|
| ||
Passengers |
| 810,555 |
| 535,499 |
| 51.4 |
| ||
Revenue passenger miles (RPMs) (thousands) |
| 774,828 |
| 563,236 |
| 37.6 |
| ||
Available seat miles (ASMs) (thousands) |
| 928,177 |
| 703,336 |
| 32.0 |
| ||
Load factor |
| 83.5 | % | 80.1 | % | 3.4 |
| ||
Operating revenue per ASM (cents) |
| 9.58 |
| 8.48 |
| 13.0 |
| ||
Operating expense per ASM (cents) |
| 8.05 |
| 7.79 |
| 3.3 |
| ||
Operating expense per ASM, excl fuel (cents) |
| 4.24 |
| 4.02 |
| 5.5 |
| ||
Departures |
| 6,962 |
| 4,844 |
| 43.7 |
| ||
Block hours |
| 16,370 |
| 12,360 |
| 32.4 |
| ||
Average stage length (miles) |
| 901 |
| 983 |
| (8.3 | ) | ||
Avg number of operating aircraft during period |
| 26.2 |
| 21.0 |
| 24.8 |
| ||
Total aircraft in service end of period |
| 27 |
| 21 |
| 28.6 |
| ||
Full-time equivalent employees at end of period |
| 951 |
| 739 |
| 28.7 |
| ||
Fuel gallons consumed (thousands) |
| 15,864 |
| 11,671 |
| 35.9 |
| ||
Average fuel cost per gallon |
| $ | 2.23 |
| $ | 2.27 |
| (1.8 | ) |
|
|
|
|
|
|
|
| ||
Scheduled service statistics |
|
|
|
|
|
|
| ||
Passengers |
| 753,716 |
| 476,174 |
| 58.3 |
| ||
Revenue passenger miles (RPMs) (thousands) |
| 708,616 |
| 504,635 |
| 40.4 |
| ||
Available seat miles (ASMs) (thousands) |
| 833,475 |
| 610,294 |
| 36.6 |
| ||
Load factor |
| 85.0 | % | 82.7 | % | 2.3 |
| ||
Departures |
| 6,121 |
| 4,000 |
| 53.0 |
| ||
Block hours |
| 14,680 |
| 10,663 |
| 37.7 |
| ||
Yield (cents) |
| 9.26 |
| 8.88 |
| 4.3 |
| ||
Scheduled service revenue per ASM (cents) |
| 7.87 |
| 7.34 |
| 7.2 |
| ||
Ancillary revenue per ASM (cents) |
| 1.89 |
| 1.14 |
| 65.8 |
| ||
Total revenue per ASM (cents) |
| 9.76 |
| 8.48 |
| 15.1 |
| ||
Average fare - scheduled service |
| $ | 87.07 |
| $ | 94.12 |
| (7.5 | ) |
Average fare - ancillary |
| 20.94 |
| 14.63 |
| 43.1 |
| ||
Average fare - total |
| $ | 108.01 |
| $ | 108.75 |
| (0.7 | ) |
Average stage length (miles) |
| 921 |
| 1,035 |
| (10.9 | ) | ||
Percent of sales through website during period |
| 86.8 | % | 84.7 | % | 2.1 |
| ||
* except load factor and percent of sales through website, which is percentage point change
7
Allegiant Travel Company
Non-GAAP Presentations
Quarters Ended June 30, 2007 and 2006
(in thousands, except per share and per ASM amounts)
(Unaudited)
Derivation of adjusted net income (excluding non-cash mark-to-market loss on fuel derivatives) from net income:
|
| Three months ended June 30, |
| Percent |
| ||||
(in thousands, except per share amounts) |
| 2007 |
| 2006 |
| change |
| ||
Net income |
| $ | 9,976 |
| $ | 4,702 |
| 112.2 |
|
Mark-to-market non-cash loss on fuel derivatives |
| 680 |
| 102 |
| 566.7 |
| ||
Tax impact of mark-to-market non-cash gain on fuel derivatives |
| (258 | ) | — |
| N/M |
| ||
|
|
|
|
|
|
|
| ||
Net of mark-to-market non-cash loss on fuel derivatives: |
|
|
|
|
|
|
| ||
Adjusted net income |
| $ | 10,398 |
| $ | 4,804 |
| 116.4 |
|
Adjusted earnings per share: |
|
|
|
|
|
|
| ||
Basic |
| $ | 0.52 |
| $ | 0.75 |
| (30.7 | ) |
Diluted |
| $ | 0.51 |
| $ | 0.29 |
| 75.9 |
|
Derivation of operating cost per ASM including cash gain on fuel derivatives from total operating expense per ASM:
|
| Three months ended June 30, |
| Percent |
| ||
(in cents) |
| 2007 |
| 2006 |
| change |
|
Total operating expense per ASM |
| 8.05 |
| 7.79 |
| 3.3 |
|
Cash gain on fuel derivatives per ASM |
| (0.11 | ) | (0.06 | ) | 83.3 |
|
Operating cost per ASM including cash gain on fuel derivatives |
| 7.94 |
| 7.73 |
| 2.7 |
|
Split into cash-settled portion and mark-to-market non-cash portion of gain on fuel derivatives, net:
|
| Three months ended June 30, |
| Percent |
| ||||
(in thousands) |
| 2007 |
| 2006 |
| change |
| ||
Mark-to-market non-cash gain on fuel derivatives |
| $ | 680 |
| 102 |
| 566.7 |
| |
Cash gain on fuel derivatives |
| $ | (1,060 | ) | (412 | ) | 157.3 |
| |
Gain on fuel derivatives, net |
| $ | (380 | ) | $ | (310 | ) | 22.6 |
|
Note: the Company believes the non-GAAP measures above assist investors in understanding the underlying economic performance of the Company as follows:
· The Company does not qualify for fuel hedge accounting treatment under FAS 133. Management regards the adjusted net income measure shown above as
8
representative of the net income the Company would have shown if it did qualify for fuel hedge accounting treatment under FAS 133. Likewise, management regards operating cost per ASM including cash gain or loss on fuel derivatives as representative of the total operating expense per ASM the Company would have shown if it did qualify for fuel hedge accounting treatment under FAS 133.
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Allegiant Travel Company
Consolidated Statements of Income
Six Months Ended June 30, 2007 and 2006
(in thousands, except per share amounts)
(Unaudited)
|
| Six months ended June 30, |
| Percent |
| ||||
|
| 2007 |
| 2006 |
| Change |
| ||
OPERATING REVENUE: |
|
|
|
|
|
|
| ||
Scheduled service revenues |
| $ | 123,853 |
| $ | 87,509 |
| 41.5 |
|
Fixed fee contract revenues |
| 20,881 |
| 19,173 |
| 8.9 |
| ||
Ancillary revenues |
| 28,556 |
| 12,621 |
| 126.3 |
| ||
Total operating revenues |
| 173,290 |
| 119,303 |
| 45.3 |
| ||
|
|
|
|
|
|
|
| ||
OPERATING EXPENSES: |
|
|
|
|
|
|
| ||
Aircraft fuel |
| 66,637 |
| 50,882 |
| 31.0 |
| ||
Salary and benefits |
| 23,370 |
| 16,028 |
| 45.8 |
| ||
Station operations |
| 16,833 |
| 12,349 |
| 36.3 |
| ||
Maintenance and repairs |
| 12,219 |
| 7,477 |
| 63.4 |
| ||
Sales and marketing |
| 6,065 |
| 4,753 |
| 27.6 |
| ||
Aircraft lease rentals |
| 1,308 |
| 3,173 |
| (58.8 | ) | ||
Depreciation and amortization |
| 7,375 |
| 4,745 |
| 55.4 |
| ||
Other |
| 11,024 |
| 7,604 |
| 45.0 |
| ||
Total operating expenses |
| 144,831 |
| 107,011 |
| 35.3 |
| ||
|
|
|
|
|
|
|
| ||
OPERATING INCOME |
| 28,459 |
| 12,292 |
| 131.5 |
| ||
As a percent of total operating revenue |
| 16.4 | % | 10.3 | % |
|
| ||
|
|
|
|
|
|
|
| ||
OTHER (INCOME) EXPENSE: |
|
|
|
|
|
|
| ||
Gain on fuel derivatives, net |
| (1,904 | ) | (578 | ) | 229.4 |
| ||
Earnings from joint venture, net |
| (262 | ) | — |
| N/M |
| ||
Other expense |
| 63 |
| — |
| N/M |
| ||
Interest income |
| (4,293 | ) | (1,309 | ) | 228.0 |
| ||
Interest expense |
| 2,769 |
| 2,601 |
| 6.5 |
| ||
Total other expense |
| (3,627 | ) | 714 |
| N/M |
| ||
|
|
|
|
|
|
|
| ||
INCOME BEFORE INCOME TAXES |
| 32,086 |
| 11,578 |
| 177.1 |
| ||
As a percent of total operating revenue |
| 18.5 | % | 9.7 | % |
|
| ||
|
|
|
|
|
|
|
| ||
PROVISION FOR INCOME TAXES: |
| 12,363 |
| 42 |
| N/M |
| ||
|
|
|
|
|
|
|
| ||
NET INCOME |
| $ | 19,723 |
| $ | 11,536 |
| 71.0 |
|
As a percent of total operating revenue |
| 11.4 | % | 9.7 | % |
|
| ||
|
|
|
|
|
|
|
| ||
Earnings per share |
|
|
|
|
|
|
| ||
Basic |
| $ | 0.99 |
| $ | 1.79 |
| (44.7 | ) |
Diluted |
| $ | 0.97 |
| $ | 0.69 |
| 40.6 |
|
|
|
|
|
|
|
|
| ||
Weighted Average Shares Outstanding |
|
|
|
|
|
|
| ||
Basic |
| 19,843 |
| 6,433 |
| 208.5 |
| ||
Diluted |
| 20,323 |
| 16,676 |
| 21.9 |
| ||
|
|
|
|
|
|
|
| ||
Unaudited pro forma data (reflecting change in tax status)(1) |
|
|
|
|
|
|
| ||
Income before income taxes |
| $ | 32,086 |
| $ | 11,578 |
| 177.1 |
|
Pro-forma provision for income taxes |
| 12,363 |
| 4,264 |
| 189.9 |
| ||
Pro-forma net income |
| $ | 19,723 |
| $ | 7,314 |
| 169.7 |
|
Unaudited net income per share data (reflecting change in tax status) |
|
|
|
|
|
|
| ||
Basic pro-forma net income per share |
| $ | 0.99 |
| $ | 1.14 |
| (13.2 | ) |
Diluted pro-forma net income per share |
| $ | 0.97 |
| $ | 0.44 |
| 120.5 |
|
10
(1) Prior to its December 2006 initial public offering, the Company was organized as a limited liability company (LLC) and as such was generally not subject to income taxes, except in certain state and local jurisdictions. The pro-forma tax provision reflects income taxes as if the company were organized as a corporation effective January 1, 2006.
11
Allegiant Travel Company
Operating Statistics
Six Months Ended June 30, 2007 and 2006
(Unaudited)
|
| Six months ended June 30, |
| Percent |
| ||||
|
| 2007 |
| 2006 |
| change* |
| ||
OPERATING STATISTICS |
|
|
|
|
|
|
| ||
Total system statistics |
|
|
|
|
|
|
| ||
Passengers |
| 1,563,794 |
| 1,056,823 |
| 48.0 |
| ||
Revenue passenger miles (RPMs) (thousands) |
| 1,524,065 |
| 1,146,761 |
| 32.9 |
| ||
Available seat miles (ASMs) (thousands) |
| 1,860,706 |
| 1,439,964 |
| 29.2 |
| ||
Load factor |
| 81.9 | % | 79.6 | % | 2.3 |
| ||
Operating revenue per ASM (cents) |
| 9.31 |
| 8.29 |
| 12.3 |
| ||
Operating expense per ASM (cents) |
| 7.78 |
| 7.43 |
| 4.7 |
| ||
Operating expense per ASM, excl fuel (cents) |
| 4.20 |
| 3.90 |
| 7.7 |
| ||
Departures |
| 13,729 |
| 9,584 |
| 43.2 |
| ||
Block hours |
| 32,930 |
| 25,223 |
| 30.6 |
| ||
Average stage length (miles) |
| 915 |
| 1,015 |
| (9.8 | ) | ||
Avg # of operating aircraft during period |
| 26.0 |
| 20.2 |
| 28.7 |
| ||
Total aircraft in service end of period |
| 27 |
| 21 |
| 28.6 |
| ||
Full-time equivalent employees at period end |
| 951 |
| 739 |
| 28.7 |
| ||
Fuel gallons consumed (thousands) |
| 31,711 |
| 23,953 |
| 32.4 |
| ||
Average fuel cost per gallon |
| $ | 2.10 |
| $ | 2.12 |
| (0.9 | ) |
|
|
|
|
|
|
|
| ||
Scheduled service statistics |
|
|
|
|
|
|
| ||
Passengers |
| 1,426,556 |
| 929,653 |
| 53.5 |
| ||
Revenue passenger miles (RPMs) (thousands) |
| 1,350,095 |
| 1,000,708 |
| 34.9 |
| ||
Available seat miles (ASMs) (thousands) |
| 1,610,616 |
| 1,217,847 |
| 32.3 |
| ||
Load factor |
| 83.8 | % | 82.2 | % | 1.6 |
| ||
Departures |
| 11,795 |
| 7,814 |
| 50.9 |
| ||
Block hours |
| 28,527 |
| 21,246 |
| 34.3 |
| ||
Yield (cents) |
| 9.17 |
| 8.74 |
| 4.9 |
| ||
Scheduled service revenue per ASM (cents) |
| 7.69 |
| 7.19 |
| 7.0 |
| ||
Ancillary revenue per ASM (cents) |
| 1.77 |
| 1.03 |
| 71.8 |
| ||
Total revenue per ASM (cents) |
| 9.46 |
| 8.22 |
| 15.1 |
| ||
Average fare - scheduled service |
| $ | 86.82 |
| $ | 94.13 |
| (7.8 | ) |
Average fare - ancillary |
| 20.02 |
| 13.58 |
| 47.4 |
| ||
Average fare - total |
| $ | 106.84 |
| $ | 107.71 |
| (0.8 | ) |
Average stage length (miles) |
| 924 |
| 1,054 |
| (12.4 | ) | ||
Percent of sales through website during period |
| 87.2 | % | 84.7 | % | 2.5 |
| ||
* except load factor and percent of sales through website, which is percentage point change
12
Allegiant Travel Company
Non-GAAP Presentations
Six Months Ended June 30, 2007 and 2006
(in thousands, except per share and per ASM amounts)
(Unaudited)
Derivation of adjusted net income (excluding non-cash mark-to-market loss on fuel derivatives) from net income:
|
| Six months ended June 30, |
| Percent |
| ||||
(in thousands, except per share amounts) |
| 2007 |
| 2006 |
| Change |
| ||
Net income |
| $ | 19,723 |
| $ | 11,536 |
| 71.0 |
|
Mark-to-market non-cash loss on fuel derivatives |
| (2,437 | ) | (111 | ) | 2,095.5 |
| ||
Tax impact of mark-to-market non-cash gain on fuel derivatives |
| 938 |
| — |
| N/M |
| ||
|
|
|
|
|
|
|
| ||
Net of mark-to-market non-cash loss on fuel derivatives: |
|
|
|
|
|
|
| ||
Adjusted net income |
| $ | 18,224 |
| $ | 11,425 |
| 59.5 |
|
Adjusted earnings per share: |
|
|
|
|
|
|
| ||
Basic |
| $ | 0.92 |
| $ | 1.78 |
| (48.3 | ) |
Diluted |
| $ | 0.90 |
| $ | 0.69 |
| 30.4 |
|
Derivation of operating cost per ASM including cash gain/loss on fuel derivatives from total operating expense per ASM:
|
| Six months ended June 30, |
| Percent |
| ||
(in cents) |
| 2007 |
| 2006 |
| Change |
|
Total operating expense per ASM |
| 7.78 |
| 7.43 |
| 4.7 |
|
Cash (gain)/loss on fuel derivatives per ASM |
| 0.03 |
| (0.03 | ) | N/M |
|
Operating cost per ASM including cash gain/loss on fuel derivatives |
| 7.81 |
| 7.40 |
| 5.5 |
|
Split into cash-settled portion and mark-to-market non-cash portion of gain on fuel derivatives, net:
|
| Six months ended June 30, |
| Percent |
| ||||
(in thousands) |
| 2007 |
| 2006 |
| Change |
| ||
Mark-to-market non-cash gain on fuel derivatives |
| $ | (2,437 | ) | (111 | ) | 2,095.5 |
| |
Cash (gain)/loss on fuel derivatives |
| 533 |
| (467 | ) | N/M |
| ||
Gain on fuel derivatives, net |
| $ | (1,904 | ) | $ | (578 | ) | 229.4 |
|
Note: the Company believes the non-GAAP measures above assist investors in understanding the underlying economic performance of the Company as follows:
· The Company does not qualify for fuel hedge accounting treatment under FAS 133. Management regards the adjusted net income measure shown above as
13
representative of the net income the Company would have shown if it did qualify for fuel hedge accounting treatment under FAS 133. Likewise, management regards operating cost per ASM including cash gain or loss on fuel derivatives as representative of the total operating expense per ASM the Company would have shown if it did qualify for fuel hedge accounting treatment under FAS 133.
14
