ALLEGIANT TRAVEL COMPANY
THRID QUARTER 2011 FINANCIAL RESULTS
35th Consecutive Profitable Quarter
Fully Diluted Earnings per Share of $.49
Las Vegas, Nev., October 26, 2011 /GLOBE NEWSWIRE/ – Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the 3rd quarter 2011 and comparisons to prior year equivalents:
| 3Q11 | 3Q10 | Change |
| Total operating revenue (millions) | $191.5 | $163.6 | 17.0% |
| Operating income (millions) | $16.7 | $19.5 | (14.1)% |
| Operating margin | 8.7% | 11.9% | -3.2pp |
| EBITDA (millions) | $27.5 | $28.4 | (3.1)% |
| EBITDA margin | 14.4% | 17.3% | -2.9pp |
| Net income (millions) | $9.5 | $13.2 | (27.9)% |
| Diluted earnings per share | $0.49 | $0.67 | (26.9)% |
| | | | |
| Scheduled Service: | | | |
| Average fare - scheduled service | $84.94 | $69.99 | 21.4% |
| Average fare - ancillary air-related charges | $30.38 | $29.14 | 4.3% |
| Average fare - ancillary third party products | $5.31 | $4.52 | 17.5% |
| Average fare - total | $120.63 | $103.65 | 16.4% |
| Scheduled service passenger revenue per ASM (PRASM)(cents) | 8.58 | 6.89 | 24.5% |
| Total scheduled service revenue per ASM (TRASM) (cents) | 12.19 | 10.20 | 19.5% |
| Load factor | 92.2% | 89.6% | 2.6pp |
| | | | |
| Total System*: | | | |
| Operating expense per passenger | $110.71 | $92.41 | 19.8% |
| Operating expense per passenger, excluding fuel | $57.42 | $52.34 | 9.7% |
| Operating expense, excluding fuel per ASM (CASM ex fuel) (cents) | 5.69 | 4.96 | 14.7% |
*Total system includes scheduled service, fixed-fee contract and non-revenue flying
“We are very proud to report our 35th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “I’d like to thank our Team Members for their great efforts and contributions to another successful quarter.”
“Revenues continue to perform nicely. Most of the meaningful revenue metrics during the third quarter increased 15% or more year over year, another strong performance. We are continuing our focus on near term projects. We now have two 166 seat MD-80 aircraft in service on our Bellingham routes, and we are beginning to sell into the extra seats.
“Our 757 activity was successful during the quarter as well. We began operations with our initial 757 aircraft in late July and operated it on two routes to and from Las Vegas. For a nominal amount of additional fuel burn, we are generating 67 additional profit potential seats. These additional seats on our peak days, in the proper markets, are expected to contribute significant incremental profit.
“Lastly we are making good progress on the revamp of our automation platform. Current plans call for our new platform to be available in time for the January 24th DOT cutover date. It will be the first enhancement of many to come, with the ultimate objective of creating an OTA style system that will enhance our efforts to sell additional hotel overnights and associated packages,” concluded Gallagher.
Andrew C. Levy, President of Allegiant Travel Company, stated, “We are very pleased in our ability to continuously offset increases in fuel prices with higher fares. Our total fare of $120.63 is a record high for the 3rd quarter, which is our seasonally weakest time of the year. It is the fourth consecutive quarter in which we have posted record fares for the respective quarter.
“Gains in the base airfare, air-related ancillary, third party ancillary and load factor all contributed to a 19.5% increase in TRASM. The unit revenue comparables become more difficult as the year progresses, but October should be another strong month with a projected year over year gain in PRASM between 16 and 18% despite 5% capacity growth. We expect 4th quarter PRASM to increase between 11 and 13% on a year over year basis despite capacity growth of between 5 and 9%.
“Finally, we are again pleased with the growth in third party ancillary revenue. As noted below, we saw growth in both hotel room nights and rental car days which helped to account for a 17.5% increase in ancillary revenue per passenger for the quarter,” concluded Levy.
| Supplemental Ancillary Revenue Information (unaudited) | 3Q11 | 3Q10 | Change |
| Gross ancillary revenue - third party products (000) | $27,315 | $22,716 | 20.2% |
| Cost of goods sold (000) | ($18,395) | ($15,043) | 22.3% |
| Transaction costs (a) (000) | ($1,078) | ($943) | 14.3% |
| Ancillary revenue - third party products (000) | $7,842 | $6,730 | 16.5% |
| As percent of gross | 28.7% | 29.6% | -0.9pp |
| As percent of income before taxes | 52.6% | 35.0% | 17.6pp |
| Ancillary revenue - third party products/scheduled passenger | $5.31 | $4.52 | 17.5% |
| Hotel room nights | 163,000 | 136,000 | 19.9% |
| Rental car days | 146,000 | 134,000 | 9.0% |
(a) includes credit card fees and travel agency commissions
Scott Sheldon, SVP and CFO of Allegiant Travel Company, stated, “During the quarter our cost per passenger ex-fuel increased 9.7% to $57.42. The increase in ex-fuel costs was due in part to a 6.5% reduction in aircraft utilization and a 2.3% decline in average stage length. As was the case in the 2nd quarter, we once again restricted capacity in the 3rd quarter in an effort to offset higher fuel which put additional pressure on our unit costs.
“Our increase in non-fuel costs was also due to the continued execution of our engine overhaul strategy, credit card processing fees related to a substantial increase in scheduled revenue and depreciation and amortization related to our four operating 757 aircraft, three of which are leased to other carriers.
“Lastly, our unrestricted cash balance (including investments in marketable securities) decreased slightly during the 3rd quarter to $303 million, down $14 million from the end of the 2nd quarter. During the quarter we raised $7 million of debt secured by one 757 aircraft purchased during the first quarter. In addition we spent $19 million in cap ex bringing our year to date total to $69 million,” concluded Sheldon.
| Unaudited (millions) | 9/30/11 | 12/31/10 | Change |
| Unrestricted cash * | $303.4 | $150.3 | 101.9% |
| Unrestricted cash net of air traffic liability | 186.4 | 48.9 | 281.2% |
| Total debt | 147.8 | 28.1 | 426.0% |
| Total stockholders’ equity | 339.1 | 297.7 | 13.9% |
| | | | |
| | nine months ended Sept 30, | |
| Unaudited (millions) | 2011 | 2010 | Change |
| Capital expenditures – year to date | $69.0 | $82.2 | (16.1)% |
*-Unrestricted cash includes investments in marketable securities
At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.
Guidance, subject to revision | Revenue guidance | October 2011 | 4th quarter 2011 | |
| Estimated PRASM year-over-year growth | +16 to 18% | +11 to 13% | |
| Capacity guidance | | | |
| System | 4th quarter 2011 | Full year 2011 | 1st quarter 2012 |
| Departure year-over-year growth | +5 to 9% | 0 to +4% | +8 to 12% |
| ASM year-over-year growth | +6 to 10% | 0 to +4% | +13 to 17% |
| Scheduled | | | |
| Departure year-over-year growth | +2 to 6% | 0 to +4% | +10 to 14% |
| ASM year-over-year growth | +5 to 9% | 0 to +4% | +15 to 19% |
| | | | |
| Cost guidance | 4th quarter 2011 | Full year 2011 | |
| CASM ex fuel – year over year growth | +7 to 9% | +12 to 14% | |
| | | | |
| Fixed fee and other revenue guidance | 4th quarter 2011 | | |
| Fixed fee revenue and other revenue (millions) | $11 to $13 | | |
| | | | |
CASM ex fuel – cost per available seat mile excluding fuel expense
| | · | An operating fleet of 52 MD-80 and one 757 aircraft through the 4th quarter of 2011. |
| | · | 2011 capital expenditures of approximately $105 to $120 million. |
Allegiant Travel Company will host a conference call with analysts at 4:30 East Coast time today, October 26, 2011, to discuss its 3rd quarter 2011 financial results. A live broadcast of the conference call will be available via the Company’s Investor Relations website homepage at http://ir.allegiant.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 major leisure destinations such as Las Vegas, Orlando, Fla., Tampa/St. Petersburg, Fla., Phoenix-Mesa, Los Angeles and Fort Lauderdale, Fla. Through its subsidiary, Allegiant Air, 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: Brian Davis
mediarelations@allegiantair.com
Investor Inquiries: Chris Allen
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 unit revenue, future operating expense, our ability to obtain regulatory approval to operate our 757 aircraft in extended overwater operations, our expected progress on reconfiguration of our MD-80 aircraft, ASM growth, departure growth, fleet growth, fixed-fee and other revenues and expected capital expenditures, as well as other information concerning future results of operations, 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," “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 effect of the economic downturn on leisure travel, increases in fuel prices, terrorist attacks, risks inherent to airlines, demand for air services to our leisure destinations from the markets served by us, our ability to implement our growth strategy, unionization efforts, our dependence on our leisure destination markets, our ability to add, renew or replace gate leases, our competitive environment, problems with our aircraft, dependence on fixed fee customers, our reliance on our automated systems, economic and other conditions in markets in which we operate, aging aircraft and other governmental regulation, increases in maintenance costs 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:
Allegiant Travel Company
Consolidated Statements of Income
Three Months Ended September 30, 2011 and 2010
(in thousands, except per share amounts)
(Unaudited)
| | Three months ended September 30, | | Percent |
| | 2011 | | 2010 | | change |
| OPERATING REVENUE: | | | | | |
| Scheduled service revenue | $125,545 | | $104,188 | | 20.5 |
| Ancillary revenue: | | | | | |
| Air-related charges | 44,905 | | 43,372 | | 3.5 |
| Third party products | 7,842 | | 6,730 | | 16.5 |
| Total ancillary revenue | 52,747 | | 50,102 | | 5.3 |
| | | | | | |
| Fixed fee contract revenue | 9,676 | | 8,972 | | 7.8 |
| Other revenue | 3,532 | | 359 | | 883.8 |
| Total operating revenue | 191,500 | | 163,621 | | 17.0 |
| | | | | | |
| OPERATING EXPENSES: | | | | | |
| Aircraft fuel | 84,118 | | 62,495 | | 34.6 |
| Salary and benefits | 29,517 | | 28,442 | | 3.8 |
| Station operations | 17,154 | | 16,268 | | 5.4 |
| Maintenance and repairs | 21,075 | | 16,782 | | 25.6 |
| Sales and marketing | 4,919 | | 3,908 | | 25.9 |
| Aircraft lease rentals | 303 | | 489 | | (38.0) |
| Depreciation and amortization | 10,676 | | 8,779 | | 21.6 |
| Other | 7,007 | | 6,978 | | 0.4 |
| Total operating expenses | 174,769 | | 144,141 | | 21.2 |
| | | | | | |
| OPERATING INCOME | 16,731 | | 19,480 | | (14.1) |
| As a percent of total operating revenue | 8.7% | | 11.9% | | |
| OTHER (INCOME) EXPENSE: | | | | | |
| Earnings from unconsolidated affiliates, net | (78) | | (106) | | (26.4) |
| Interest income | (338) | | (241) | | 40.2 |
| Interest expense | 2,255 | | 596 | | 278.4 |
| Total other (income) expense | 1,839 | | 249 | | 638.6 |
| | | | | | |
| INCOME BEFORE INCOME TAXES | 14,892 | | 19,231 | | (22.6) |
| As a percent of total operating revenue | 7.8% | | 11.8% | | |
| | | | | | |
| PROVISION FOR INCOME TAXES | 5,406 | | 6,072 | | (11.0) |
| | | | | | |
| NET INCOME | $9,486 | | $13,159 | | (27.9) |
| As a percent of total operating revenue | 5.0% | | 8.0% | | |
| | | | | | |
| Earnings per share to common stockholders (1): | | | | | |
| Basic | $0.50 | | $0.68 | | (26.5) |
| Diluted | $0.49 | | $0.67 | | (26.9) |
| | | | | | |
Weighted average shares outstanding used in computing earnings per share to common stockholders (1): | | | | | |
| Basic | 18,940 | | 19,349 | | (2.1) |
| Diluted | 19,128 | | 19,569 | | (2.3) |
(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 for the periods presented reflect the two-class method mandated by accounting guidance for the calculation of earnings per share. The two-class method adjusts both the net income and 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.
Allegiant Travel Company
Operating Statistics
Three Months Ended September 30, 2011 and 2010
(Unaudited)
| | Three months ended September 30, | | Percent |
| | 2011 | | 2010 | | change* |
| OPERATING STATISTICS | | | | | |
| Total system statistics | | | | | |
| Passengers | 1,578,645 | | 1,559,836 | | 1.2 |
| Revenue passenger miles (RPMs) (thousands) | 1,425,002 | | 1,425,761 | | (0.1) |
| Available seat miles (ASMs) (thousands) | 1,593,766 | | 1,646,431 | | (3.2) |
| Load factor | 89.4% | | 86.6% | | 2.8 |
| Operating revenue per ASM (cents) | 12.02 | | 9.94 | | 20.9 |
| Operating expense per ASM (CASM) (cents) | 10.97 | | 8.75 | | 25.4 |
| Fuel expense per ASM (cents) | 5.28 | | 3.80 | | 38.9 |
| Operating CASM, excluding fuel (cents) | 5.69 | | 4.96 | | 14.7 |
| Operating expense per passenger | $110.71 | | $92.41 | | 19.8 |
| Fuel expense per passenger | $53.28 | | $40.07 | | 33.0 |
| Operating expense per passenger, excluding fuel | $57.42 | | $52.34 | | 9.7 |
| Departures | 12,527 | | 12,761 | | (1.8) |
| Block hours | 28,050 | | 28,748 | | (2.4) |
| Average stage length (miles) | 845 | | 865 | | (2.3) |
| Average number of operating aircraft during period | 52.3 | | 50.6 | | 3.4 |
| Total aircraft in service at period end | 53 | | 51 | | 3.9 |
| Average departures per aircraft per day | 2.6 | | 2.7 | | (3.7) |
| Average block hours per aircraft per day | 5.8 | | 6.2 | | (6.5) |
| Full-time equivalent employees at period end | 1,545 | | 1,623 | | (4.8) |
| Fuel gallons consumed (thousands) | 26,973 | | 27,832 | | (3.1) |
| Average fuel cost per gallon | $3.12 | | $2.25 | | 38.7 |
| | | | | | |
| Scheduled service statistics | | | | | |
| Passengers | 1,478,046 | | 1,488,600 | | (0.7) |
| Revenue passenger miles (RPMs) (thousands) | 1,347,896 | | 1,356,043 | | (0.6) |
| Available seat miles (ASMs) (thousands) | 1,462,636 | | 1,512,650 | | (3.3) |
| Load factor | 92.2% | | 89.6% | | 2.6 |
| Departures | 10,834 | | 11,316 | | (4.3) |
| Average passengers per departure | 136 | | 132 | | 3.0 |
| Block hours | 25,306 | | 26,258 | | (3.6) |
| Yield (cents) | 9.31 | | 7.68 | | 21.2 |
| Scheduled service revenue per ASM (PRASM) (cents) | 8.58 | | 6.89 | | 24.5 |
| Total ancillary revenue per ASM (cents) | 3.61 | | 3.31 | | 9.1 |
| Total scheduled service revenue per ASM (TRASM) (cents) | 12.19 | | 10.20 | | 19.5 |
| Average fare - scheduled service | $84.94 | | $69.99 | | 21.4 |
| Average fare - ancillary air-related charges | $30.38 | | $29.14 | | 4.3 |
| Average fare - ancillary third party products | $5.31 | | $4.52 | | 17.5 |
| Average fare - total | $120.63 | | $103.65 | | 16.4 |
| Average stage length (miles) | 892 | | 891 | | 0.1 |
| Fuel gallons consumed (thousands) | 24,435 | | 25,342 | | (3.6) |
| Average fuel cost per gallon | $3.32 | | $2.36 | | 40.7 |
| Percent of sales through website during period | 88.2% | | 88.2% | | - |
* except load factor and percent of sales through website, which is percentage point change
Allegiant Travel Company
Consolidated Statements of Income
Nine Months Ended September 30, 2011 and 2010
(in thousands, except per share amounts)
(Unaudited)
| | Nine months ended September 30, | | Percent |
| | 2011 | | 2010 | | change |
| OPERATING REVENUE: | | | | | |
| Scheduled service revenue | $387,387 | | $322,074 | | 20.3 |
| Ancillary revenue: | | | | | |
| Air-related charges | 136,212 | | 129,523 | | 5.2 |
| Third party products | 23,122 | | 18,824 | | 22.8 |
| Total ancillary revenue | 159,334 | | 148,347 | | 7.4 |
| | | | | | |
| Fixed fee contract revenue | 31,168 | | 30,142 | | 3.4 |
| Other revenue | 7,291 | | 1,045 | | 597.7 |
| Total operating revenue | 585,180 | | 501,608 | | 16.7 |
| | | | | | |
| OPERATING EXPENSES: | | | | | |
| Aircraft fuel | 249,759 | | 182,083 | | 37.2 |
| Salary and benefits | 90,266 | | 81,098 | | 11.3 |
| Station operations | 50,180 | | 47,443 | | 5.8 |
| Maintenance and repairs | 57,422 | | 44,221 | | 29.9 |
| Sales and marketing | 15,576 | | 13,109 | | 18.8 |
| Aircraft lease rentals | 948 | | 1,567 | | (39.5) |
| Depreciation and amortization | 30,722 | | 25,821 | | 19.0 |
| Other | 25,037 | | 22,460 | | 11.5 |
| Total operating expenses | 519,910 | | 417,802 | | 24.4 |
| | | | | | |
| OPERATING INCOME | 65,270 | | 83,806 | | (22.1) |
| As a percent of total operating revenue | 11.2% | | 16.7% | | |
| OTHER (INCOME) EXPENSE: | | | | | |
| (Earnings) loss from unconsolidated affiliates, net | (92) | | 3 | | (3,166.7) |
| Interest income | (1,000) | | (996) | | 0.4 |
| Interest expense | 5,286 | | 2,000 | | 164.3 |
| Total other (income) expense | 4,194 | | 1,007 | | 316.5 |
| | | | | | |
| INCOME BEFORE INCOME TAXES | 61,076 | | 82,799 | | (26.2) |
| As a percent of total operating revenue | 10.4% | | 16.5% | | |
| | | | | | |
| PROVISION FOR INCOME TAXES | 22,488 | | 29,478 | | (23.7) |
| | | | | | |
| NET INCOME | $38,588 | | $53,321 | | (27.6) |
| As a percent of total operating revenue | 6.6% | | 10.6% | | |
| | | | | | |
| Earnings per share to common stockholders (1): | | | | | |
| Basic | $2.03 | | $2.70 | | (24.8) |
| Diluted | $2.01 | | $2.67 | | (24.7) |
| | | | | | |
| Weighted average shares outstanding used in computing earnings per share to common stockholders (1): | | | | | |
| Basic | 18,927 | | 19,167 | | (1.3) |
| Diluted | 19,109 | | 19,899 | | (4.0) |
(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 for the periods presented reflect the two-class method mandated by accounting guidance for the calculation of earnings per share. The two-class method adjusts both the net income and 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.
Allegiant Travel Company
Operating Statistics
Nine Months Ended September 30, 2011 and 2010
(Unaudited)
| | Nine months ended September 30, | | Percent |
| | 2011 | | 2010 | | change* |
| OPERATING STATISTICS | | | | | |
| Total system statistics | | | | | |
| Passengers | 4,678,885 | | 4,539,405 | | 3.1 |
| Revenue passenger miles (RPMs) (thousands) | 4,276,723 | | 4,217,904 | | 1.4 |
| Available seat miles (ASMs) (thousands) | 4,788,343 | | 4,804,743 | | (0.3) |
| Load factor | 89.3% | | 87.8% | | 1.5 |
| Operating revenue per ASM (cents) | 12.22 | | 10.44 | | 17.0 |
| Operating expense per ASM (CASM) (cents) | 10.86 | | 8.70 | | 24.8 |
| Fuel expense per ASM (cents) | 5.22 | | 3.79 | | 37.7 |
| Operating CASM, excluding fuel (cents) | 5.64 | | 4.91 | | 14.9 |
| Operating expense per passenger | $111.12 | | $92.04 | | 20.7 |
| Fuel expense per passenger | $53.38 | | $40.11 | | 33.1 |
| Operating expense per passenger, excluding fuel | $57.74 | | $51.93 | | 11.2 |
| Departures | 37,194 | | 36,825 | | 1.0 |
| Block hours | 85,694 | | 85,611 | | 0.1 |
| Average stage length (miles) | 859 | | 876 | | (1.9) |
| Average number of operating aircraft during period | 51.5 | | 48.2 | | 6.8 |
| Total aircraft in service at period end | 53 | | 51 | | 3.9 |
| Average departures per aircraft per day | 2.6 | | 2.8 | | (7.1) |
| Average block hours per aircraft per day | 6.1 | | 6.5 | | (6.2) |
| Full-time equivalent employees at period end | 1,545 | | 1,623 | | (4.8) |
| Fuel gallons consumed (thousands) | 81,386 | | 81,549 | | (0.2) |
| Average fuel cost per gallon | $3.07 | | $2.23 | | 37.7 |
| | | | | | |
| Scheduled service statistics | | | | | |
| Passengers | 4,384,370 | | 4,314,149 | | 1.6 |
| Revenue passenger miles (RPMs) (thousands) | 4,031,758 | | 4,020,703 | | 0.3 |
| Available seat miles (ASMs) (thousands) | 4,366,323 | | 4,416,651 | | (1.1) |
| Load factor | 92.3% | | 91.0% | | 1.3 |
| Departures | 32,226 | | 32,221 | | - |
| Average passengers per departure | 136 | | 134 | | 1.5 |
| Block hours | 77,019 | | 77,566 | | (0.7) |
| Yield (cents) | 9.61 | | 8.01 | | 20.0 |
| Scheduled service revenue per ASM (PRASM) (cents) | 8.87 | | 7.29 | | 21.7 |
| Total ancillary revenue per ASM (cents) | 3.65 | | 3.36 | | 8.6 |
| Total scheduled service revenue per ASM (TRASM) (cents) | 12.52 | | 10.65 | | 17.6 |
| Average fare - scheduled service | $88.36 | | $74.66 | | 18.3 |
| Average fare - ancillary air-related charges | $31.07 | | $30.02 | | 3.5 |
| Average fare - ancillary third party products | $5.27 | | $4.36 | | 20.9 |
| Average fare - total | $124.70 | | $109.04 | | 14.4 |
| Average stage length (miles) | 901 | | 914 | | (1.4) |
| Fuel gallons consumed (thousands) | 73,483 | | 73,804 | | (0.4) |
| Average fuel cost per gallon | $3.30 | | $2.37 | | 39.2 |
| Percent of sales through website during period | 88.6% | | 88.3% | | 3.0 |
* except load factor and percent of sales through website, which is percentage point change
Allegiant Travel Company
Non-GAAP Presentations
Quarters Ended September 30, 2011 and 2010
(Unaudited)
"EBITDA" represents earnings before interest expense, income taxes, depreciation and amortization. EBITDA is not a calculation based on generally accepted accounting principles and should not be considered as an alternative to net income or operating income as indicators of our financial performance or to cash flow as a measure of liquidity. EBITDA is included as a supplemental disclosure because we believe it is a useful indicator of our operating performance. Further, EBITDA is a well-recognized performance measurement that is frequently used by securities analysts, investors and other interested parties in comparing the operating performance of companies. We believe EBITDA is useful in evaluating our operating performance compared to our competitors because its calculation generally eliminates the effects of financing and income taxes and the accounting effects of capital spending and acquisitions, which items may vary between periods and for different companies for reasons unrelated to overall operating performance. The following represents the reconciliation of EBITDA to net income for the periods indicated below.
The SEC has adopted rules (Regulation G) regulating the use of non-GAAP financial measures. Because of our use of the non-GAAP financial measure EBITDA to supplement our consolidated financial statements presented on a GAAP basis, Regulation G requires us to include in this press release a presentation of the most directly comparable GAAP measure, which is net income, and a reconciliation of the non-GAAP measure to the most comparable GAAP measure. Our utilization of a non-GAAP measurement is not meant to be considered in isolation or as a substitute for net income or other measures of financial performance prepared in accordance with GAAP. EBITDA is not a GAAP measurement and our use of it may not be comparable to similarly titled measures employed by other companies in the airline industry. The reconciliations to GAAP measures follow.
| | Three months ended September 30, | | Percent |
| (in thousands) | 2011 | | 2010 | | change |
| Net income | $9,486 | | $13,159 | | (27.9) |
| Plus (minus) | | | | | |
| Interest income | (338) | | (241) | | 40.2 |
| Interest expense | 2,255 | | 596 | | 278.4 |
| Provision for income taxes | 5,406 | | 6,072 | | (11.0) |
| Depreciation and amortization | 10,676 | | 8,779 | | 21.6 |
| EBITDA | $27,485 | | $28,365 | | (3.1) |
9
