George Mattson | executive |
Todd Smith | executive |
Welcome to Wheels Up Third Quarter 2023 Earnings Conference Webcast. It is my pleasure to introduce Keith Ferguson. Mr. Ferguson, you may begin the conference.
Thank you.
George Mattson | executive |
Todd Smith | executive |
Welcome to Wheels Up Third Quarter 2023 Earnings Conference Webcast. It is my pleasure to introduce Keith Ferguson. Mr. Ferguson, you may begin the conference.
Thank you. our financial announced we morning, third results. quarter This supporting well can as earnings at found release copy as its with wheelsup.com/investors. website Relations presentation The a tables of our Investor on be today's with slide the to refer our disclaimer. Please Today's forecasts expectations current of on and presentation forward-looking events. contains based our statements future results statements These actual be materially. estimates considered differ should and only, may
financial than all Mattson. financial over today's revenue. that, be that non-GAAP appendix SEC guidelines. I'd earnings by of of measures webcast, as of and George measures outlined turn will to to to definitions are GAAP Wheels we found During the of release with measures otherwise Reconciliations like will income noted, tables Ups' within non-GAAP financial today's non-GAAP Chief and financial And refer other presentation. to Officer, our non-GAAP measures statement-related Executive Unless financial
of Wheels thanks In world to for Partner. and in position and Keith, October, you, only accessibility not and its aviation the eagerly to but to one took I company today. Thank subsidiary, for role Up flexibility unmatched and that run private best this all joining global charter Air Delta's us reason: global provides as simple commercial customers. our aviation across offerings within private you the
or a For or of partnership customer Delta optimal international, commercial set customer participated alliance expect an deliver have And pleased domestic able hybrid. and more trip, initiatives we short, enable we the we haul, to we to choice. discussions, business sales I'm even can deliver other the mode reinforced Delta. or or private prospective as worked of be and and or I commercial strategic first shareholders, with customers. or unique their industry and launched business the need medium time, broad with distinctive potential to My solutions and of the leisure, teams build choose have for customers weeks, marketing that XX,XXX On corporate teams proposition our the we deliver to interactions our up will value by and program XX, with travel realize several Delta's joint reception customer our together. trip private our with have do exclusively recent dozens our enterprise integrate compelling new personally SME medium-sized and profitably. Over last for so to to corporate of solutions the on focused small- the October long and
the business on opportunities actively align as Global XXX Partner are interim significant goals. Wheels Under six to We launch. after as well within span CEO, Todd to Smith's took both business. across Charter first with business collaborate The engaged with steps Up Air the days Delta company our traditional new prospects as the member leadership our right
value execution We programmatic members. our to direct to our made our have our result offering June. improved A we of and adjustments in
we that in our ability and cost regions in trips proposition improve to to advantage capped our and country programmatic the reliability. Our our Mississippi, operational business result network and focus shifted drive a our have customers flights East verified continue density. globally. to better competitive utility customers We footprint, both our Up we on flying rates to primary are charter our and rates business in market-based to we value of price times. for off-peak during advantage a are of Up pricing still providing simultaneously. to advantage area Those strengths at of those using growth our areas a our and dynamically and our a network flying our significant fly cost between programmatic both provides changes complementing from taking of an areas, focus Outside our regions as we prioritizing offer many our regions, capabilities There controlled those and shape Wheels Partner transcon where and of base additional service asset-light performance, performance empty increasingly playing service rate. improve XX% Customers both to optimization partnership, where and work regionalize fleet safety guaranteed is new flights our That the Wheels extending are including our controlled members reduce third-party to members. our is to density asset benefit down is those fleet those repositioning partners' will operators. Air leverage growing role, domestically primary of our and significant Delta internationally, is to utilization. in service Wheels These our customers Western the demand already excellence. our enabled direct from of have and lack take fly drive steps and to the flying Up industry-leading efficiency for our of a and vital fleet, and fleet and
scale. most to of companies is its private most And on recognized was Up Wheels For one aviation XX-year in world. the of it build today, the focused history, growth largest and
the have our Over over transition. for facilities the patience we us center, continue Wheels has strong forward, last was the of propel and revenue new under Delta built and consolidated one couple to a after company. To the journey modeled for center year, will with and MOC, a in focus with or central its and challenged, operation maintenance loyalty pandemic-driven will share a demand And foundation our operations, improve management operations, Atlanta, Delta members' We performance multiple this member and In be the planning we a roof. expertise customer everyone spike. further years, appreciate in nearly last and operation network that into Up by to operations exacerbated operational our state-of-the-art optimization. May, through
greatly communication and Our coordination improved. have
to Delta's led today's is reputation and of a MOC Holtz, veteran rise excellence. instrumental Our best-in-class operations by operational Dave leader,
Up the results. seeing year. already that that operation and The measurement-driven applying should are this We MOC end the by fully are ramped same leadership approach be Wheels and of
year FAA certificates operations is faster costs. The into travel productivity which and the lower operating three We year, to more and single are scheduling to and overhead efficient of times, operating consolidation all already this should with recovery move next expected seeing efficiency, a our operations certificate, further benefits improved six ability, on from profile. margin provide improvements
actions have of stronger the these over past All contributed service metrics to year.
within the targets for XX% board is time. we our of of XX maintenance exceeded rate with of and flights September, time, Our of the customer completion first of minutes our ATC, month departing inclusive In all the XX% scheduled the delays. almost approaching across internal operating weather,
of of have While they to proud much improvements made to give customers know the do we we we've date, the are level we our work deserve. service still to
Importantly, not flywheel and of a continuous the remain targets will process improvement static our operating accelerates, we of ambitious goals more will improvement. for as reach
credit Cox operations Certares, Delta an commercial in cash which others. We loan investors, well also new the new from have from Delta. in $XXX improvements and undrawn been our further and Airlines financial the and engagement with Knighthead, closed to included the Our Delta are million infusion commitment investors $XXX additional and recent term through and advanced September, improved our million from underway position company's
our of that important to plan that after a the the a to today's shares final investment. financing, and following will the comprehensive secure meeting. of the issuance Delta are of to million investors contributing testament why investors success in and to I'm in investment. strategic of active vested financial own new new our a and is go-forward as to confidence in $XX process report shareholder $XXX approximately factor equity total a company following we interest an these the due us the the discussions I of This and was pleased company. long-term joined diligence have The addition million strategy In remaining XX% that Delta of the the fact company our investors, view
the the our XX tourism expertise investors turn newest Our range deep new team excited the world-class and priorities the on our me and Up experience of next let the in and capital entire Board the lean from and focused success team. So to into my of commitment in I'm of highly over company. to travel, and long-term business very are our months. engaged markets Wheels
to capacity fleet or aircraft. Wheels' operated weekends on accessibility trip, to much Historically, primarily underutilized leisure, need they of each third-party or means and Our our optimize weekdays. many are with leaving customers. on customers the vast goal business majority every and flying for owned That is provide is operated of fulfilled with and us holidays, the flying leisure flexibility on domestic is or international, our
we matches like own already leverage our flying. increase inherent collaboration our our of the today rest harness the industry and engagements expect will the I've does to private industry. engage the down their density expect since our on compare will mix with to to the for allow size density operating program, the our in-region fleet. As typically our of leased improve and aircraft increased our further network flying our asset new We us let advantages customers that in expect utilization continuously on reduce indicated, controlled corporate which publish unit year, counterparts. in with be lead our performance nearly commercial well corporate performance of of midweek new up commercial A higher driving it hard our statistics will the all fleet to believe not more We network Though performance. aviation is us controlled we costs. Within and regional efficiency, flying will next Delta
confidence lead and Our customers exceptional as the with performance provide goal the that we service. to add to grow we can operating is an and differentiated industry in
these sustainable and achieve to All company position support a future. of adjusted well actions in the EBITDA our plan XXXX positive for
goal. more have improvements Todd made fully steady quarter-over-quarter we already As toward describe, will this
these is stronger difficult the chapter. to months. to want today and critical review, this the a contributions because financial him turn new exciting position a to I a his efforts getting thank to period leadership in Todd and company X Before guidance take of has and past his I minute over in that over to led do through The call for a company much
a let review. So with Todd that, financial I will provide
with my is been great to be It's all you today. George. pleasure. Thanks, It
the For three we to for EBITDA third on priorities $XXX the Revenue but and our of financial the Delta a market-related of our more a quarter. are and The in highlights quarter, on was highlights Flight how position Membership topics. with million reflective XXXX. revenue well a from and down financial positive operating track as the slightly down prior shift revenue our and on was year-over-year, details plan existing volumes third largely achieve our reduction will our consistent adjusted down with commitment year-over-year industry our the the investors. on and our in progress continued and operating focus to I to our deliver profitable company-specific update, Starting in was quarter performance, strong X% sequentially customers. retention of program new financial as despite regional offering and of XX% slowdown capital to year-over-year, reflecting concerns infusion from model.
As $XX revenue. million divestiture represented a aircraft including be forward, was will million lower going margin of adjusted revenue in third our reported $X.X revenue of of quarter. Our management the onetime contribution due our to the XX% which quarter, license the business, reminder, in software
adjusted sequentially was highest underlying contribution in and at our level that, Excluding years. the over up X.X%, two margin
We consolidation, fixed our of center margins the improved. costs have opening charter and also reduced while member have through operations fleet
and actions our operating sequentially loss have an down completion debt extinguishment evidenced net restructuring mentioned absolute improvement relatively almost $X costs. $XX.X dollars departures a year-over-year customers we onetime was from sales, Operating just by in expense were expenses software including revenue aircraft as million from benefited and marked for million of benefited XX% importantly, Adjusted the rates. our the controls. gain on-time flat quarter, in I that More as related EBITDA and and continued license from enhancements
improved in result our are years. The We area loss the lower we for GAAP the funding. adjusted commitment by our increase were speculation charge of and do, have adjusted the highlights Excluding $XXX.X impacted $XX.X a the loss much market including $XX those of million OpEx. an Prepaid million, net for by progress to but our continued the contribution loss blocks EBITDA $XX.X noncash changes items, result was narrowest margin quarter significant by this the underpinned completion for to the prior but customers, of and still million, was to driven quarter, our was goodwill. almost coverage impairment making. million to two programmatic the new negatively existing from work
from total the active double recent quarter million than we year. and million strongest cash importantly, liquidity the We George XXX% funding of are will More our total sales a more as block highlighted, a the equivalents closing the on with undrawn million, Delta of and be capital have we cash to the quarter on the raise $XXX discussions volumes including fourth notes. In proceeds a million increase we $XX our in seen in $XXX balance of since ended last expect our revolver daily bring block and of addition, transaction, reserve and of $XXX ETC on our deposit sheet, in million. our $XXX to the
quarter a third had of cash the led much The to that confluence quarter. in factors higher-than-normal usage a
So let through me that. walk you
during working million Our the as a that quarter quarter was funds Delta September. at portion as the during of well the expenses uses in were transaction quarter. and $XX the cash loan to million repay those A onetime balance capital the end funded $XXX used by of includes extended bridge
be reflecting and up to stabilization and deferred working the from a proceeds remaining to balance profitability, of cash flat third year-end our improving the expect term loan. capital quarter, versus revenue We
we In available would from million our addition, $XXX still have revolver.
our result our taking improve those with through Leveraging operations We our where the we will crew means utilization can our prices of adjusted how significant to asset response us. are focus will us is and flying in fleet we These contribution the to be to have for and actions our steps That margins on goal controlled new drive focus in to a in that customers profitable to customers. operate plan cost margins blue the for lower strengths lack allow changes advantage designed we important, will we we efficient cost, a drive are our business. our efficiency.Along times aircraft changes to our for strengths and operate advantage. in and our we density profitably. multiple minimize lines, how density and regions the more Equally our outside regions density programs where program flying controlled and blue more network sustainable cost faster provides scheduling maintenance to productive
right at in-region those going part with region the However, through Air operators service capabilities competitive it market programmatic the what in Striking out continue customers with that balance third-party profitable a serve density we a to and regions. of key is scale strength will charter deliver leading of of forward. of flying a we rates. charter has call proven great strategy our our can Partner leverages
proactively our also contributing and operations are member our Delta's an to Our and efficiency. of The operations operations customers internal adverse improving improved flight reports Atlanta plans actions leading-edge of and roof. We into all delays, schedule traffic to including to likely center coordination our are team leveraging with avoid planning ATC also utility meteorology capability optimization and their their air under consolidation control has to offering for shift weather around one delays. travel opportunity in XX% now our scheduling across
certificate We pilot are costs efforts. through and already our seeing lower improved utilization consolidation
to expect These actions improvements that complete we as continued improving seeing we are efficiencies ahead. why the metrics, consolidation. customer a are year delivery further and expect we We in contributing factor
reduce sold a initiated result We business, which continue aircraft to the of at quarter previously the third restructuring rate as end expect sale of driven of operating the of our to and the expense benefit managed run reductions activities. by was
we I'm progress you When dollars, up, positive and spending and in have we in continue Certares, Delta, service remain absolute to XXXX. So capital Up we confidence to we on level. in back in With in is EBITDA this wrap customers our thankful With coming and let can the invest that, highest based customer Knighthead delivered, adjusted turn put together. we at our the delivery. to new resources and service While extremely together all we their confident me are what accomplish need George. have members for to down Wheels infusion, continuing to already Cox it achieving the to and it
into our to ability can't really Thanks, the in I'm do Wheels unique our future for with our industry Up by something competitors. partnership matched excited and Delta be strategic to lean that Todd. about really the
one. to are not company, a be tell-me We a show-me going
become updates aviation one week best and run tangible, progress flight is month, deliver I Our forward time. to the on our continued stated to every at private every sharing progress. measurable a goal look company
to to passion sincerely attention opportunity media our earlier fulfill of the we Before also press want for and delivering and loyal all despite I and I all exceptional important members strength, safe want to employees in the I increased to close, the is of and our to customers. take commitment customers with evident year. the and experience always as thank together have whose our flight most members who this stood speculation company thank an us our work obligation,
We with for your aviation interest. best the are working toward Thank solutions tirelessly to future. as provide we possible our you you build
you That for today's conference concludes your call. participation. Thank
disconnect You your may now lines.
We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.