Nevada | 001-33166 | 20-4745737 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
1201 N. Town Center Drive, Las Vegas, NV | 89144 | |
(Address of principal executive offices) | (Zip Code) |
(a) | Not applicable. |
(b) | Not applicable. |
(c) | Not applicable. |
(d) | Exhibits |
Exhibit No. | Description of Document |
99.1 | Press Release issued by Allegiant Travel Company on January 27, 2016. |
Date: January 27, 2016 | ALLEGIANT TRAVEL COMPANY | ||
By: | /s/ Scott Sheldon | ||
Name: | Scott Sheldon | ||
Title: | Chief Financial Officer |
Exhibit No. | Description of Document |
99.1 | Press Release issued by Allegiant Travel Company on January 27, 2016. |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
Unaudited | 2015 | 2014 | Change | 2015 | 2014 | Change | ||||||||||||
Total operating revenue (millions) | $310.9 | $279.0 | 11.4 | % | $1,262.2 | $1,137.0 | 11.0 | % | ||||||||||
Operating income (millions) | $93.8 | $14.8 | 534.0 | % | $371.7 | $157.3 | 136.2 | % | ||||||||||
Net income (millions) | $56.7 | $4.8 | 1,082.9 | % | $220.4 | $86.7 | 154.2 | % | ||||||||||
Diluted earnings per share | $3.38 | $0.27 | 1,151.9 | % | $12.94 | $4.86 | 166.3 | % | ||||||||||
Return on capital employed (LTM)* | 25.6 | % | 19.2 | % |
• | Network growth - Fourth quarter scheduled service ASMs grew by 25 percent; cities by nine percent, routes by 27 percent |
◦ | As of December 31, 2015 the company is selling 296 routes versus 233 routes during the same time period last year |
• | Airbus aircraft - Added seven Airbus A320 series aircraft into service during the fourth quarter |
• | Share repurchase - Returned approximately $7.6 million to shareholders through the repurchase of 37,400 shares during the fourth quarter |
• | Dividend - Declared dividends of $32.8 million during the quarter |
◦ | Paid a recurring dividend of $0.30 per share in early December 2015 |
◦ | Paid a special dividend of $1.65 per share in early January 2016 |
• | Aircraft financing - Raised $28 million in debt secured by two A319 aircraft in December |
◦ | Entered into a senior secured revolving credit facility in December with the ability to borrow up to $56 million |
• | Airbus growth - Had 24 Airbus series aircraft in service on December 31, 2015 compared to 11 as of end of 2014 |
• | Airbus network - Airbus aircraft flew over 39 percent of the fourth quarter ASMs versus 23 percent a year ago |
• | Additional bases - Added one new base in Pittsburgh, PA |
• | Medium sized cities - Serve 18 medium sized cities on December 31, 2015 versus eight a year ago |
• | 757 fleet - Retired one 757 in October 2015 |
◦ | Expect to have retired the remainder of the fleet by the end of the 2017 winter holiday period |
• | Average fare-scheduled service - Decreased by 14 percent versus last year |
◦ | Off peak flying was 24 percent of ASMs for the fourth quarter versus 20 percent a year ago |
◦ | New markets (markets operating less than one year) were 16 percent of ASMs for the fourth quarter versus six percent a year ago |
• | Average fare-total - Decreased by seven percent versus last year |
◦ | Three dollar increase in the convenience fee occurred late in the fourth quarter of 2014 |
• | Other impacts on TRASM - Accounting for credit card surcharge as a reduction of cost had a two point negative impact on fourth quarter TRASM |
• | TRASM guidance - First quarter TRASM is expected to decrease between 13 and 11 percent versus the first quarter last year |
◦ | Off peak flying is expected to be 26 percent of ASMs for the first quarter |
◦ | New markets (markets operating less than one year) are expected to be 12 percent of ASMs for the first quarter |
◦ | Accounting for credit card surcharge is expected to have a 0.6 point negative impact on first quarter TRASM |
• | CASM - Declined 34.3 percent |
◦ | ASMs per gallon improved by three percent versus last year to 71.2 |
• | CASM ex fuel - Declined 32.4 percent |
◦ | Excluding the $43 million 757 write-down in December 2014, CASM ex fuel declined 11.7 percent |
• | Salary and benefits - Total labor expense increased 23.5 percent versus the same period last year |
◦ | Full time equivalent employees increased by 18.0 percent associated with a 10.3 percent increase in average number of aircraft in service |
◦ | Pilot pay band increase in May 2015 resulted in higher pilot pay rates |
◦ | Bonus accrual increased by over 100 percent due to increased profitability |
• | Station operations - Stations expense per departure increased four percent versus the same period last year |
• | First quarter 2016 CASM ex fuel - CASM ex fuel is expected to decrease between four and two percent versus the same period last year |
• | Full year CASM ex fuel - CASM ex fuel is expected to be between zero and an increase of four percent |
• | Maintenance and repairs expense - Expected to be between $115 and $125 thousand per aircraft per month for full year 2016 |
◦ | Expect 12 more heavy maintenance events than last year |
◦ | Expect the number of events to be spread relatively equally throughout the year |
• | Total ownership expense per aircraft per month - Full year 2016 total of depreciation expense and aircraft lease rental expense per aircraft per month is expected to be between $100 and $110 thousand |
• | 2016 Capital expenditures - Expect CAPEX to be $188 million |
• | Shareholder returns - $190 million of cash was returned to shareholders in 2015 |
◦ | $62 million was returned through dividends |
▪ | The Company intends to pay a dividend of $0.30 per share on March 15, 2016 to all shareholders of record as of March 4, 2016 |
◦ | $128 million returned through share repurchases |
▪ | Share repurchase authority as of January 27, 2016 is $54 million |
• | Financing transactions - In December 2015, the Company raised $28 million in debt secured by two A319 aircraft |
◦ | In December 2015, the Company entered into a senior secured revolving credit facility under which it will be able to borrow up to $56 million |
Unaudited (millions) | 12/31/2015 | 12/31/2014 | Change | |||||||
Unrestricted cash* | $397.4 | $416.8 | (4.7 | )% | ||||||
Total debt | $641.7 | $588.8 | 9.0 | % | ||||||
Total Allegiant Travel Company stockholders’ equity | $350.0 | $292.9 | 19.5 | % |
Twelve Months Ended December 31, | ||||||
Unaudited (millions) | 2015 | 2014 | Change | |||
Capital expenditures | $252.7 | $421.4 | (40.0 | )% |
Guidance, subject to revision | |||
January 2016 | 1Q16 | ||
Estimated TRASM year-over-year change | (15) to (13)% | (13) to (11)% | |
Fixed fee and other revenue guidance | 1Q16 | ||
Fixed fee and other revenue (millions) | $11 to $13 | ||
Capacity guidance | |||
System | 1Q16 | 2Q16 | FY16 |
Departure year-over-year growth | 14 to 18% | 13 to 17% | |
ASM year-over-year growth | 15 to 19% | 12 to 16% | 12 to 16% |
Scheduled | |||
Departure year-over-year growth | 14 to 18% | 13 to 17% | |
ASM year-over-year growth | 15 to 19% | 12 to 16% | 12 to 16% |
Cost guidance | 1Q16 | FY16 | |
CASM ex fuel – year-over-year change | (4) to (2)% | 0 to 4% | |
CAPEX guidance | FY16 | ||
Capital expenditures (millions) | $188 |
Aircraft fleet plan by end of period | |||||||
Aircraft - (seats per AC) | 4Q15 | 1Q16 | YE16 | ||||
MD-80 (166 seats) | 51 | 50 | 46 | ||||
757 (215 seats) | 5 | 5 | 5 | ||||
A319 (156 seats) | 10 | 11 | 17 | ||||
A320 (177 seats) | 14 | 16 | 16 | ||||
Total | 80 | 82 | 84 |
Three Months Ended December 31, | Percent | |||||||||
2015 | 2014 | change | ||||||||
OPERATING REVENUE: | ||||||||||
Scheduled service revenue | $ | 178,720 | $ | 172,434 | 3.6 | |||||
Ancillary revenue: | ||||||||||
Air-related charges | 108,262 | 83,257 | 30.0 | |||||||
Third party products | 8,513 | 8,248 | 3.2 | |||||||
Total ancillary revenue | 116,775 | 91,505 | 27.6 | |||||||
Fixed fee contract revenue | 7,754 | 6,894 | 12.5 | |||||||
Other revenue | 7,640 | 8,117 | (5.9 | ) | ||||||
Total operating revenue | 310,889 | 278,950 | 11.4 | |||||||
OPERATING EXPENSES: | ||||||||||
Aircraft fuel | 61,409 | 79,909 | (23.2 | ) | ||||||
Salary and benefits | 58,683 | 47,500 | 23.5 | |||||||
Station operations | 27,525 | 21,214 | 29.7 | |||||||
Maintenance and repairs | 22,087 | 22,191 | (0.5 | ) | ||||||
Sales and marketing | 4,442 | 6,223 | (28.6 | ) | ||||||
Aircraft lease rentals | 234 | 3,048 | (92.3 | ) | ||||||
Depreciation and amortization | 24,499 | 23,054 | 6.3 | |||||||
Other | 18,248 | 17,741 | 2.9 | |||||||
Special charge | — | 43,280 | NM* | |||||||
Total operating expenses | 217,127 | 264,160 | (17.8 | ) | ||||||
OPERATING INCOME | 93,762 | 14,790 | 534.0 | |||||||
OTHER (INCOME) EXPENSE: | ||||||||||
Interest income | (443 | ) | (229 | ) | 93.4 | |||||
Interest expense | 5,979 | 7,388 | (19.1 | ) | ||||||
Other - net | (18 | ) | (45 | ) | (19.1 | ) | ||||
Total other (income) expense | 5,518 | 7,114 | (22.4 | ) | ||||||
INCOME BEFORE INCOME TAXES | 88,244 | 7,676 | 1,049.6 | |||||||
PROVISION FOR INCOME TAXES | 31,536 | 2,928 | 977.0 | |||||||
NET INCOME | 56,708 | 4,748 | 1,094.4 | |||||||
Net loss attributable to noncontrolling interest | — | (46 | ) | NM* | ||||||
NET INCOME ATTRIBUTABLE TO ALLEGIANT TRAVEL COMPANY | $ | 56,708 | $ | 4,794 | 1,082.9 | |||||
Earnings per share to common stockholders (1): | ||||||||||
Basic | $3.38 | $0.29 | 1,065.5 | |||||||
Diluted | $3.38 | $0.27 | 1,151.9 | |||||||
Weighted average shares outstanding used in computing earnings per share to common stockholders (1): | ||||||||||
Basic | 16,728 | 17,377 | (3.7 | ) | ||||||
Diluted | 16,789 | 17,450 | (3.8 | ) |
Three Months Ended December 31, | Percent | |||||||||
2015 | 2014 | change* | ||||||||
OPERATING STATISTICS | ||||||||||
Total system statistics: | ||||||||||
Passengers | 2,360,735 | 1,966,058 | 20.1 | |||||||
Revenue passenger miles (RPMs) (thousands) | 2,210,736 | 1,846,164 | 19.7 | |||||||
Available seat miles (ASMs) (thousands) | 2,712,464 | 2,169,062 | 25.1 | |||||||
Load factor | 81.5 | % | 85.1 | % | (3.6 | ) | ||||
Operating expense per ASM (CASM) (cents) | 8.00 | 12.18 | (34.3 | ) | ||||||
Fuel expense per ASM (cents) | 2.26 | 3.68 | (38.6 | ) | ||||||
Operating CASM, excluding fuel (cents) | 5.74 | 8.49 | (32.4 | ) | ||||||
ASMs per gallon of fuel | 71.2 | 69.0 | 3.2 | |||||||
Departures | 17,677 | 14,178 | 24.7 | |||||||
Block hours | 41,432 | 33,272 | 24.5 | |||||||
Average stage length (miles) | 900 | 898 | 0.2 | |||||||
Average number of operating aircraft during period | 76.2 | 69.1 | 10.3 | |||||||
Average block hours per aircraft per day | 5.9 | 5.2 | 13.5 | |||||||
Full-time equivalent employees at end of period | 2,846 | 2,411 | 18.0 | |||||||
Fuel gallons consumed (thousands) | 38,071 | 31,422 | 21.2 | |||||||
Average fuel cost per gallon | $ | 1.61 | $ | 2.54 | (36.6 | ) | ||||
Scheduled service statistics: | ||||||||||
Passengers | 2,320,853 | 1,921,585 | 20.8 | |||||||
Revenue passenger miles (RPMs) (thousands) | 2,173,930 | 1,810,322 | 20.1 | |||||||
Available seat miles (ASMs) (thousands) | 2,623,873 | 2,093,833 | 25.3 | |||||||
Load factor | 82.9 | % | 86.5 | % | (3.6 | ) | ||||
Departures | 16,850 | 13,423 | 25.5 | |||||||
Block hours | 39,969 | 31,983 | 25.0 | |||||||
Total scheduled service revenue per ASM (TRASM)** (cents) | 11.26 | 12.61 | (10.7 | ) | ||||||
Average fare — scheduled service | $ | 77.01 | $ | 89.74 | (14.2 | ) | ||||
Average fare — ancillary air-related charges | $ | 46.65 | $ | 43.33 | 7.7 | |||||
Average fare — ancillary third party products | $ | 3.67 | $ | 4.29 | (14.5 | ) | ||||
Average fare — total | $ | 127.33 | $ | 137.36 | (7.3 | ) | ||||
Average stage length (miles) | 914 | 916 | (0.2 | ) | ||||||
Fuel gallons consumed (thousands) | 36,817 | 30,298 | 21.5 | |||||||
Average fuel cost per gallon | $ | 1.61 | $ | 2.57 | (37.4 | ) | ||||
Percent of sales through website during period | 94.4 | % | 94.5 | % | (0.1 | ) |
Twelve Months Ended December 31, | Percent | |||||||||
2015 | 2014 | change | ||||||||
OPERATING REVENUE: | ||||||||||
Scheduled service revenue | $ | 735,563 | $ | 732,020 | 0.5 | |||||
Ancillary revenue: | ||||||||||
Air-related charges | 434,317 | 331,689 | 30.9 | |||||||
Third party products | 40,177 | 36,587 | 9.8 | |||||||
Total ancillary revenue | 474,494 | 368,276 | 28.8 | |||||||
Fixed fee contract revenue | 19,747 | 17,403 | 13.5 | |||||||
Other revenue | 32,384 | 19,347 | 67.4 | |||||||
Total operating revenue | 1,262,188 | 1,137,046 | 11.0 | |||||||
OPERATING EXPENSES: | ||||||||||
Aircraft fuel | 278,394 | 388,216 | (28.3 | ) | ||||||
Salary and benefits | 229,802 | 193,345 | 18.9 | |||||||
Station operations | 102,294 | 84,667 | 20.8 | |||||||
Maintenance and repairs | 92,575 | 86,781 | 6.7 | |||||||
Sales and marketing | 21,349 | 28,492 | (25.1 | ) | ||||||
Aircraft lease rentals | 2,326 | 15,945 | (85.4 | ) | ||||||
Depreciation and amortization | 98,097 | 83,409 | 17.6 | |||||||
Other | 65,649 | 55,566 | 18.1 | |||||||
Special charge | — | 43,280 | NM* | |||||||
Total operating expenses | 890,486 | 979,701 | (9.1 | ) | ||||||
OPERATING INCOME | 371,702 | 157,345 | 136.2 | |||||||
OTHER (INCOME) EXPENSE: | ||||||||||
Interest income | (1,391 | ) | (774 | ) | 79.7 | |||||
Interest expense | 26,510 | 21,205 | 25.0 | |||||||
Other - net | (136 | ) | (217 | ) | 25.0 | |||||
Total other (income) expense | 24,983 | 20,214 | 23.6 | |||||||
INCOME BEFORE INCOME TAXES | 346,719 | 137,131 | 152.8 | |||||||
PROVISION FOR INCOME TAXES | 126,389 | 50,828 | 148.7 | |||||||
NET INCOME | 220,330 | 86,303 | 155.3 | |||||||
Net loss attributable to noncontrolling interest | (44 | ) | (386 | ) | (88.6 | ) | ||||
NET INCOME ATTRIBUTABLE TO ALLEGIANT TRAVEL COMPANY | $ | 220,374 | $ | 86,689 | 154.2 | |||||
Earnings per share to common stockholders (1): | ||||||||||
Basic | $12.97 | $4.87 | 166.3 | |||||||
Diluted | $12.94 | $4.86 | 166.3 | |||||||
Weighted average shares outstanding used in computing earnings per share to common stockholders (1): | ||||||||||
Basic | 16,923 | 17,729 | (4.5 | ) | ||||||
Diluted | 16,962 | 17,782 | (4.6 | ) |
Twelve Months Ended December 31, | Percent | |||||||||
2015 | 2014 | change* | ||||||||
OPERATING STATISTICS | ||||||||||
Total system statistics: | ||||||||||
Passengers | 9,500,611 | 8,154,357 | 16.5 | |||||||
Revenue passenger miles (RPMs) (thousands) | 8,944,952 | 7,825,962 | 14.3 | |||||||
Available seat miles (ASMs) (thousands) | 10,526,610 | 8,945,616 | 17.7 | |||||||
Load factor | 85.0 | % | 87.5 | % | (2.5 | ) | ||||
Operating expense per ASM (CASM) (cents) | 8.45 | 10.95 | (22.8 | ) | ||||||
Fuel expense per ASM (cents) | 2.64 | 4.34 | (39.2 | ) | ||||||
Operating CASM, excluding fuel (cents) | 5.81 | 6.61 | (12.1 | ) | ||||||
ASMs per gallon of fuel | 70.2 | 69.4 | 1.2 | |||||||
Departures | 68,653 | 56,961 | 20.5 | |||||||
Block hours | 160,431 | 135,572 | 18.3 | |||||||
Average stage length (miles) | 900 | 918 | (2.0 | ) | ||||||
Average number of operating aircraft during period | 74.3 | 68.8 | 8.0 | |||||||
Average block hours per aircraft per day | 5.9 | 5.4 | 9.3 | |||||||
Full-time equivalent employees at end of period | 2,846 | 2,411 | 18.0 | |||||||
Fuel gallons consumed (thousands) | 149,951 | 128,933 | 16.3 | |||||||
Average fuel cost per gallon | $ | 1.86 | $ | 3.01 | (38.2 | ) | ||||
Scheduled service statistics: | ||||||||||
Passengers | 9,355,097 | 8,017,442 | 16.7 | |||||||
Revenue passenger miles (RPMs) (thousands) | 8,821,908 | 7,711,696 | 14.4 | |||||||
Available seat miles (ASMs) (thousands) | 10,236,075 | 8,693,631 | 17.7 | |||||||
Load factor | 86.2 | % | 88.7 | % | (2.5 | ) | ||||
Departures | 65,683 | 54,440 | 20.7 | |||||||
Block hours | 155,403 | 131,210 | 18.4 | |||||||
Total scheduled service revenue per ASM (TRASM)** (cents) | 11.82 | 12.66 | (6.6 | ) | ||||||
Average fare — scheduled service | $ | 78.63 | $ | 91.30 | (13.9 | ) | ||||
Average fare — ancillary air-related charges | $ | 46.43 | $ | 41.37 | 12.2 | |||||
Average fare — ancillary third party products | $ | 4.29 | $ | 4.56 | (5.9 | ) | ||||
Average fare — total | $ | 129.35 | $ | 137.23 | (5.7 | ) | ||||
Average stage length (miles) | 915 | 934 | (2.0 | ) | ||||||
Fuel gallons consumed (thousands) | 145,654 | 125,173 | 16.4 | |||||||
Average fuel cost per gallon | $ | 1.87 | $ | 3.05 | (38.7 | ) | ||||
Percent of sales through website during period | 95.1 | % | 93.8 | % | 1.3 |
Twelve Months Ended December 31, | |||||||
Return on capital calculation (millions) | 2015 | 2014 | |||||
Net income attributable to Allegiant Travel Company (1) | $ | 220.4 | $ | 113.3 | |||
Income tax | 126.4 | 66.8 | |||||
Interest expense | 26.5 | 21.2 | |||||
Less interest income | (1.4 | ) | (0.8 | ) | |||
371.9 | 200.5 | ||||||
Interest income | 1.4 | 0.8 | |||||
Tax rate | 36.5 | % | 37.1 | % | |||
Numerator | 237.0 | 126.6 | |||||
Total assets as of prior December 31 | 1,235.1 | 930.2 | |||||
Less current liabilities as of prior December 31 | 362.0 | 290.7 | |||||
Plus short term debt as of prior December 31 | 52.6 | 20.2 | |||||
Denominator | 925.7 | 659.7 | |||||
Return on capital employed | 25.6 | % | 19.2 | % |
Reconciliation of net income attributable to Allegiant Travel Company adjusted for special item (in thousands) | Twelve Months Ended December 31, 2014 | |||
Net income as reported | $ | 86,303 | ||
Add: provision for income taxes | 50,828 | |||
Income before income taxes, as reported | 137,131 | |||
Special item: | ||||
Write down of Boeing 757 fleet after tax | 43,280 | |||
Adjusted income before income taxes | 180,411 | |||
Provision for income taxes | 66,752 | |||
Adjusted net income | 113,659 | |||
Net loss attributable to noncontrolling interest | (386 | ) | ||
Adjusted net income attributable to Allegiant Travel Company | $ | 113,273 |
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