0001362468-18-000006.txt : 20180131 0001362468-18-000006.hdr.sgml : 20180131 20180131161856 ACCESSION NUMBER: 0001362468-18-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20180131 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180131 DATE AS OF CHANGE: 20180131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Allegiant Travel CO CENTRAL INDEX KEY: 0001362468 STANDARD INDUSTRIAL CLASSIFICATION: AIR TRANSPORTATION, SCHEDULED [4512] IRS NUMBER: 204745737 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33166 FILM NUMBER: 18562976 BUSINESS ADDRESS: STREET 1: 1201 N. TOWN CENTER DRIVE CITY: LAS VEGAS STATE: NV ZIP: 89144 BUSINESS PHONE: 702-851-7300 MAIL ADDRESS: STREET 1: 1201 N. TOWN CENTER DRIVE CITY: LAS VEGAS STATE: NV ZIP: 89144 8-K 1 earningsreleaseq420178-k.htm FORM 8-K Document


UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
 
Washington D.C. 20549
 
_____________________________________________

 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): January 31, 2018
 
Allegiant Travel Company
 
(Exact name of registrant as specified in its charter)
 
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)
Registrant’s telephone number, including area code:              (702) 851-7300
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as in Rule 405 of the Securities Act of 193 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).
 
Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]





Section 2    Financial Information

Item 2.02    Results of Operations and Financial Condition.

On January 31, 2018, Allegiant Travel Company (the “Company”) issued the press release attached as Exhibit 99.1 to this Form 8-K concerning our results of operations for the quarter and year ended December 31, 2017.

This information is being furnished under Item 2.02 of Form 8-K. This report and Exhibit 99.1 are deemed to be furnished and are not considered “filed” with the Securities and Exchange Commission. As such, this information shall not be incorporated by reference into any of our reports or other filings made with the Securities and Exchange Commission.

Non-GAAP Financial Measures: The press release contains non-GAAP financial measures as such term is defined in Regulation G under the rules of the Securities and Exchange Commission. While the Company believes these financial measures are useful in evaluating the Company’s performance, this information should be considered to be supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Further, these non-GAAP financial measures may differ from similarly titled measures presented by other companies.
 
Forward-Looking Statements: Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in the 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 expense, ASM growth, departure growth, expected capital expenditures, number of contracted aircraft to be placed in service in the future, timing of aircraft retirements, 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 and registration statements filed with the Securities and Exchange Commission at www.sec.gov. These risk factors include, without limitation, an accident involving, or problems with, our aircraft, our reliance on our automated systems, limitation on growth as we transition to a single fleet type, 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 ability to finance aircraft under contract, terrorist attacks, risks inherent to airlines, our competitive environment, our reliance on third parties who provide facilities or services to us, the possible loss of key personnel, economic and other conditions in markets in which we operate, the ability to successfully develop a hotel-condo project in Southwest Florida, 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.


Section 9    Financial Statements and Exhibits
 
Item 9.01    Financial Statements and Exhibits.
 
(a)Not applicable.
(b)Not applicable.
(c)Not applicable.
(d)Exhibits

 
 

2



SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, Allegiant Travel Company has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
Date:  January 31, 2018
ALLEGIANT TRAVEL COMPANY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
By:
/s/ Scott Sheldon
 
 
Name:
Scott Sheldon
 
 
Title:
Chief Financial Officer
 


3



EXHIBIT INDEX
 



4
EX-99.1 2 a2017q48-kex991.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1
 algtheaderq416a04.jpg
  
ALLEGIANT TRAVEL COMPANY FULL YEAR AND FOURTH QUARTER 2017
FINANCIAL RESULTS
Full year 2017 Fully Diluted Earnings per Share of $11.93
Full year 2017 Fully Diluted Earnings per Share Excluding Fourth Quarter Special Items1 was $9.55
Fourth Quarter 2017 Fully Diluted Earnings per Share of $5.13
Fourth Quarter 2017 Fully Diluted Earnings per Share Excluding Fourth Quarter Special Items1 was $2.71

LAS VEGAS. January 31, 2018 —Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the full year as well as fourth quarter 2017, as well as comparisons to the prior year:

 
Three Months Ended 
 December 31,
 
 
Twelve Months Ended 
 December 31,
 
Unaudited
2017
2016
Change
 
2017
2016
Change
Total operating revenue (millions)
$
378.6

$
335.9

12.7
 %
 
$
1,503.8

$
1,362.8

10.3
 %
Operating income (millions)
26.2

68.1

(61.6
)
 
227.2

370.6

(38.7
)
Adjusted operating income (millions)*
61.5

68.1

(9.7
)
 
262.5

370.6

(29.2
)
Net income (millions)
82.5

41.3

99.7

 
194.9

219.6

(11.2
)
Adjusted net income (millions)*
43.7

41.3

5.8

 
156.1

219.6

(28.9
)
Diluted earnings per share
$
5.13

$
2.48

106.9

 
$
11.93

$
13.21

(9.7
)
Adjusted diluted earnings per share*
$
2.71

$
2.48

9.3
 %
 
$
9.55

$
13.21

(27.7
)%
* - see appendix for reconciliation of non-GAAP financial measures

"We are proud to have produced another profitable year and our 60th consecutive profitable quarter," stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. "We have achieved this record, even as oil climbed above $145 per barrel, and during one of the worst recessions in the country’s history. Our positioning for the next 60 quarters is equally exciting. Our transition to an all-Airbus fleet by the year end is progressing on schedule. This return to a single fleet type will allow us to maintain the same corporate model and nimbleness we have shown in the past, able to react to both economic and competitive changes. These industry-leading results would not have been possible without the hard work of our professional team members across all departments during the past 15 years."


1Special items include a charge for the MD-80 impairment and the tax benefit due to the passage of the Tax Cuts and Jobs Act of 2017. See appendix for reconciliation of non-GAAP financial measures.

Allegiant FY & Q4 2017 Earnings
Page 2

Fourth quarter special items

MD-80 write down in the fourth quarter was $35 million
Impairment caused by the accelerated retirement of the MD-80 fleet
Tax benefit - Received a one time tax benefit of approximately $74 million
Remeasurement of deferred tax assets and liabilities due to the passage of the Tax Cuts and Jobs Act of 2017

Shareholder returns

2017 shareholder returns - Returned $132 million in 2017 through dividends and open market share repurchases
Will pay dividends of $0.70 per share on March 16, 2018 to shareholders of record as of March 2, 2018
Current share repurchase authority of $100 million as of January 31, 2018

Balance sheet update

Additional secured debt - Raised $191 million, net of revolver payoff, in the fourth quarter
Thirteen Airbus aircraft are unencumbered as of January 31, 2018

2018 outlook

2018 tax rate impact - 2018 effective tax rate is expected to be between 24 and 25 percent
First quarter scheduled and system ASMs are expected to grow between ten and fourteen percent vs last year

Guidance, subject to revision
 
 
 
 
 
Full year 2018 guidance
 
Previous*
Current
Fuel cost per gallon
 
$2.17
$2.17
Available seat miles (ASMs) / gallon
 
77.5 to 79.5
77.5 to 79.5
 
 
 
 
Interest expense (millions)
 
$50 to $60
$50 to $60
Tax rate
 
37 to 38%
24 to 25%
Share count (millions)
 
15.9
15.9
Earnings per share
 
$8 to $10
$10 to $12
 
 
 
 
System ASMs - year over year change
 
11 to 15%
11 to 15%
Scheduled service ASMs - year over year change
 
11 to 15%
11 to 15%
 
 
 
 
Depreciation expense / aircraft / month (thousands)
 
$120 to $130
$120 to $130
Maintenance expense / aircraft / month (thousands)
 
$95 to $105
$95 to $105
 
 
 
 
Full year 2018 CAPEX guidance
 
 
 
Capital expenditures (millions) **
 
$290
$290
Capitalized Airbus deferred heavy maintenance (millions) ***
 
$45
$45
* - Previous guidance as of November 29, 2017
** - Excludes Sunseeker Resorts
*** - Not included in capital expenditure total



Allegiant FY & Q4 2017 Earnings
Page 3

Aircraft fleet plan by end of period
 
 
 
 
 
 
 
 
 
 
 
 
 
Aircraft - (seats per AC)
 
YE17

1Q18

2Q18

3Q18

YE18

MD-80 (166 seats)
 
37

32

27

19


A319 (156 seats)
 
22

26

31

31

32

A320 (177/186 seats)
 
30

33

42

45

50

Total
 
89

91

100

95

82

Aircraft listed in table above include only in-service aircraft, planned retirements and future aircraft under contract (subject to change)

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, January 31, 2018 to discuss its full year and fourth quarter 2017 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.




Allegiant FY & Q4 2017 Earnings
Page 4

Allegiant.®
Las Vegas-based Allegiant (NASDAQ: ALGT) is focused on linking travelers in small cities to world-class leisure destinations. The airline offers industry-low fares on an all-jet fleet while also offering other travel-related products such as hotel rooms and rental cars. All can be purchased only through the company website, Allegiant.com. Beginning with one aircraft and one route in 1999, the company has grown to more than 80 aircraft and 400 routes across the country with base airfares less than half the cost of the average domestic roundtrip ticket. For downloadable press kit, including photos, visit: http://gofly.us/iiFa303wrtF.

Media Inquiries: mediarelations@allegiantair.com

Investor Inquiries: 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 expenses, ASM growth, departure growth, expected capital expenditures, number of contracted aircraft to be placed in service in the future, timing of aircraft retirements, 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, an accident involving, or problems with, our aircraft, our reliance on our automated systems, limitation on growth as we transition to a single fleet type, 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 ability to finance aircraft under contract, terrorist attacks, risks inherent to airlines, our competitive environment, our reliance on third parties who provide facilities or services to us, the possible loss of key personnel, economic and other conditions in markets in which we operate, the ability to successfully develop a hotel-condo project in Southwest Florida, 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
(in thousands, except per share amounts)
(Unaudited)
 
 
Three Months Ended December 31,
 
Percent
 
2017
 
2016
 
change
OPERATING REVENUE:
 
 
 
 
 
Scheduled service revenue
$
202,359

 
$
185,325

 
9.2

Ancillary revenue:
 
 
 
 
 
Air-related charges
138,689

 
122,598

 
13.1

Third party products
13,313

 
10,458

 
27.3

Total ancillary revenue
152,002

 
133,056

 
14.2

Fixed fee contract revenue
14,588

 
9,282

 
57.2

Other revenue
9,609

 
8,220

 
16.9

Total operating revenue
378,558

 
335,883

 
12.7

OPERATING EXPENSES:
 
 
 
 
 
Aircraft fuel
92,863

 
74,363

 
24.9

Salary and benefits
94,291

 
80,789

 
16.7

Station operations
34,602

 
27,739

 
24.7

Maintenance and repairs
25,870

 
29,054

 
(11.0
)
Depreciation and amortization
29,142

 
29,254

 
(0.4
)
Sales and marketing
15,967

 
3,753

 
325.4

Other
24,402

 
22,813

 
7.0

Special charge
35,253

 

 
NM*

Total operating expense
352,390

 
267,765

 
31.6

OPERATING INCOME
26,168

 
68,118

 
(61.6
)
OTHER (INCOME) EXPENSE:
 
 
 
 
 
Interest income
(1,616
)
 
(908
)
 
78.0

Interest expense
11,659

 
7,269

 
60.4

Other, net
(305
)
 
(254
)
 
20.1

Total other (income) expense
9,738

 
6,107

 
59.5

INCOME BEFORE INCOME TAXES
16,430

 
62,011

 
(73.5
)
PROVISION FOR INCOME TAXES
(66,072
)
 
20,699

 
NM*

NET INCOME
$
82,502

 
$
41,312

 
99.7

Earnings per share to common shareholders (1):
 
 
 

 
 
Basic

$5.13

 

$2.49

 
106.0

Diluted

$5.13

 

$2.48

 
106.9

Weighted average shares outstanding used in computing earnings per share to common shareholders (1):
 

 
 

 
 
Basic
15,868

 
16,382

 
(3.1
)
Diluted
15,879

 
16,404

 
(3.2
)

*NM - Not meaningful
(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 calculations for the 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.











Allegiant Travel Company
Operating Statistics
(Unaudited) 
 
Three Months Ended December 31,
 
Percent
 
2017
 
2016
 
change*
OPERATING STATISTICS
 
 
 
 
 
Total system statistics:
 
 
 
 
 
Passengers
3,077,039

 
2,717,769

 
13.2

Revenue passenger miles (RPMs) (thousands)
2,766,503

 
2,451,391

 
12.9

Available seat miles (ASMs) (thousands)
3,430,711

 
3,073,455

 
11.6

Load factor
80.6
%
 
79.8
%
 
0.8

Operating expense per ASM (CASM) (cents)**
10.27

 
8.71

 
17.9

Fuel expense per ASM (cents)
2.71

 
2.42

 
12.0

Operating CASM, excluding fuel (cents)**
7.56

 
6.29

 
20.2

ASMs per gallon of fuel
75.4

 
71.6

 
5.3

Departures
23,322

 
21,070

 
10.7

Block hours
53,224

 
48,191

 
10.4

Average stage length (miles)
872

 
868

 
0.5

Average number of operating aircraft during period
89.3

 
83.3

 
7.2

Average block hours per aircraft per day
6.5

 
6.3

 
3.2

Full-time equivalent employees at end of period
3,752

 
3,416

 
9.8

Fuel gallons consumed (thousands)
45,509

 
42,933

 
6.0

Average fuel cost per gallon
$
2.04

 
$
1.73

 
17.9

Scheduled service statistics:
 
 
 
 
 
Passengers
3,027,401

 
2,682,148

 
12.9

Revenue passenger miles (RPMs) (thousands)
2,717,524

 
2,416,503

 
12.5

Available seat miles (ASMs) (thousands)
3,284,429

 
2,954,118

 
11.2

Load factor
82.7
%
 
81.8
%
 
0.9

Departures
22,077

 
20,003

 
10.4

Block hours
50,764

 
46,225

 
9.8

Total scheduled service revenue per ASM (TRASM) (cents)***
10.79

 
10.78

 
0.1

Average fare - scheduled service
$
66.84

 
$
69.10

 
(3.3
)
Average fare - ancillary air-related charges
$
45.81

 
$
45.71

 
0.2

Average fare - ancillary third party products
$
4.40

 
$
3.90

 
12.8

Average fare - total
$
117.05

 
$
118.70

 
(1.4
)
Average stage length (miles)
881

 
879

 
0.2

Fuel gallons consumed (thousands)
43,392

 
41,237

 
5.2

Average fuel cost per gallon
$
2.02

 
$
1.70

 
18.8

Percent of sales through website during period
93.9
%
 
93.8
%
 
0.1


* Except load factor and percent of sales through website, which is percentage point change.
** These numbers reflect the special charge (impairment charge) in 2017. CASM without regard to the impairment charge is shown on Appendix A.
*** Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis.






Allegiant Travel Company
Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
 
 
Twelve Months Ended December 31,
 
Percent
 
2017
 
2016
 
change
OPERATING REVENUE:
 
 
 
 
 
Scheduled service revenue
$
818,136

 
$
753,414

 
8.6

Ancillary revenue:
 
 
 
 
 
Air-related charges
546,476

 
499,542

 
9.4

Third party products
52,707

 
44,940

 
17.3

Total ancillary revenue
599,183

 
544,482

 
10.0

Fixed fee contract revenue
48,708

 
31,972

 
52.3

Other revenue
37,751

 
32,963

 
14.5

Total operating revenue
1,503,778

 
1,362,831

 
10.3

OPERATING EXPENSES:
 
 
 
 
 
Aircraft fuel
343,333

 
257,332

 
33.4

Salary and benefits
371,599

 
291,974

 
27.3

Station operations
142,581

 
124,052

 
14.9

Maintenance and repairs
113,481

 
111,070

 
2.2

Depreciation and amortization
121,713

 
105,216

 
15.7

Sales and marketing
52,711

 
20,527

 
156.8

Aircraft lease rentals
3,098

 
924

 
235.3

Other
92,840

 
81,178

 
14.4

Special charge
35,253

 

 
NM*

Total operating expense
1,276,609

 
992,273

 
28.7

OPERATING INCOME
227,169

 
370,558

 
(38.7
)
OTHER (INCOME) EXPENSE:
 
 
 
 
 
Interest income
(5,808
)
 
(3,010
)
 
93.0

Interest expense
38,990

 
28,836

 
35.2

Other, net
(1,559
)
 
(1,226
)
 
27.2

Total other (income) expense
31,623

 
24,600

 
28.5

INCOME BEFORE INCOME TAXES
195,546

 
345,958

 
(43.5
)
PROVISION FOR INCOME TAXES
644

 
126,368

 
(99.5
)
NET INCOME
194,902

 
219,590

 
(11.2
)
Earnings per share to common shareholders (1):
 
 
 
 
 
Basic

$11.94

 

$13.23

 
(9.8
)
Diluted

$11.93

 

$13.21

 
(9.7
)
Weighted average shares outstanding used in computing earnings per share to common shareholders (1):
 
 
 
 
 
Basic
16,073

 
16,465

 
(2.4
)
Diluted
16,095

 
16,489

 
(2.4
)

*NM - Not meaningful
(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 calculations for the periods presented reflect the two-class method mandated ASC Topic 260, "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
(Unaudited) 
 
Twelve Months Ended December 31,
 
Percent
 
2017
 
2016
 
change*
OPERATING STATISTICS
 
 
 
 
 
Total system statistics:
 
 
 
 
 
Passengers
12,310,122

 
11,128,191

 
10.6

Revenue passenger miles (RPMs) (thousands)
11,106,772

 
10,282,827

 
8.0

Available seat miles (ASMs) (thousands)
13,612,003

 
12,375,505

 
10.0

Load factor
81.6
%
 
83.1
%
 
(1.5
)
Operating expense per ASM (CASM) (cents)**
9.38

 
8.02

 
17.0

Fuel expense per ASM (cents)**
2.52

 
2.08

 
21.2

Operating CASM, excluding fuel (cents)**
6.86

 
5.94

 
15.5

ASMs per gallon of fuel
73.0

 
71.6

 
2.0

Departures
93,061

 
82,341

 
13.0

Block hours
212,405

 
190,706

 
11.4

Average stage length (miles)
870

 
889

 
(2.1
)
Average number of operating aircraft during period
87.3

 
83.3

 
4.8

Average block hours per aircraft per day
6.7

 
6.3

 
6.3

Full-time equivalent employees at end of period
3,752

 
3,416

 
9.8

Fuel gallons consumed (thousands)
186,563

 
172,796

 
8.0

Average fuel cost per gallon**
$
1.84

 
$
1.49

 
23.5

Scheduled service statistics:
 

 
 

 
 
Passengers
12,138,146

 
11,003,864

 
10.3

Revenue passenger miles (RPMs) (thousands)
10,901,161

 
10,130,675

 
7.6

Available seat miles (ASMs) (thousands)
13,031,824

 
11,921,733

 
9.3

Load factor
83.7
%
 
85.0
%
 
(1.3
)
Departures
88,432

 
78,747

 
12.3

Block hours
202,752

 
183,290

 
10.6

Total scheduled service revenue per ASM (TRASM) (cents)***
10.88

 
10.89

 
(0.1
)
Average fare - scheduled service
$
67.41

 
$
68.47

 
(1.5
)
Average fare - ancillary air-related charges
$
45.02

 
$
45.40

 
(0.8
)
Average fare - ancillary third party products
$
4.34

 
$
4.08

 
6.4

Average fare - total
$
116.77

 
$
117.95

 
(1.0
)
Average stage length (miles)
876

 
895

 
(2.1
)
Fuel gallons consumed (thousands)
178,298

 
166,528

 
7.1

Average fuel cost per gallon**
$
1.83

 
$
1.48

 
23.6

Percent of sales through website during period
94.0
%
 
94.2
%
 
(0.2
)
 
* Except load factor and percent of sales through website, which is percentage point change.
** Includes effect of $8.3 million fuel tax refunds in the second quarter of 2016. Additionally, the CASM numbers reflect the special charge (impairment charge) in 2017. CASM without regard to the impairment charge is shown on Appendix A.
*** Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis.



Summary Balance Sheet

(millions)
12/31/2017
 
12/31/2016
 
Change
 
(unaudited)
 
 
 
 
Unrestricted cash
 
 
 
 
 
Cash and cash equivalents
$
59.4

 
$
64.7

 
(8.2
)%
Short-term investments
352.7

 
269.3

 
31.0

Long-term investments
78.6

 
124.8

 
(37.0
)
Total unrestricted cash and investments
490.7

 
458.8

 
7.0

Debt
 
 
 
 
 
Current maturities of long-term debt, net of related costs
214.8

 
86.2

 
149.2

Long-term debt, net of current maturities and related costs
950.1

 
722.0

 
31.6

Total debt
1,164.9

 
808.2

 
44.1

Total Allegiant Travel Company shareholders’ equity
$
547.9

 
$
473.6

 
15.7
 %

Summary Cash Flow

 
Twelve Months Ended December 31,
 
 
Unaudited (millions)
2017
 
2016
 
Change
Cash provided by operating activities
$
384.8

 
$
346.9

 
10.9
 %
Purchase of property and equipment, including capitalized interest*
580.2

 
325.2

 
78.4

Repurchase of common stock
90.5

 
66.4

 
36.3

Cash dividends paid to shareholders**
45.7

 
67.5

 
(32.3
)
Proceeds from the issuance of long-term debt
497.5

 
321.2

 
54.9

Principal payments on long-term debt
$
138.9

 
$
154.1

 
(9.9
)%
* Includes aircraft pre-delivery deposits.
** 2016 amount includes a special dividend declared in December 2015 and paid in January 2016.



Appendix A
Non-GAAP Presentations
Three and Twelve Months Ended December 31, 2017 and 2016
(Unaudited)

Adjusted operating income (also referred to as operating income excluding special item), adjusted net income (also referred to as net income as adjusted for special items), adjusted diluted earnings per share (also referred to as diluted earnings per share as adjusted for special items), total operating expense less special item and total operating expense less fuel and special item all eliminate the effect of the non-cash impairment charge for the accelerated retirement of the MD-80 fleet which is not reflective of our ongoing operating performance. As such, all of these are non-GAAP financial measures. The net income and earnings per share measures also eliminate the effect of the one-time adjustment to tax expense attributable to the Tax Cuts and Jobs Act of 2017.

The SEC has adopted rules (Regulation G) regulating the use of non-GAAP financial measures. Because of our use of non-GAAP financial measures in this press release 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 operating income, net income, earnings per share or operating expenses and a reconciliation of the non-GAAP measures to the most comparable GAAP measure. Our utilization of non-GAAP measurements 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. Neither adjusted operating income, adjusted net income, adjusted diluted earnings per share, total operating expenses less special item nor total operating expense less fuel and special item are GAAP measurements and our use of these measures may not be comparable to similarly titled measures employed by other companies in the airline and travel industry. The reconciliations of these measures to the most comparable GAAP measure for the periods indicated below follow.

Reconciliation of Non-GAAP Financial Measures
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2017
 
2017
Reconciliation of operating income excluding special item (millions)
 
 
 
Operating income as reported (GAAP)
$
26.2

 
$
227.2

Special item:
 
 
 
     Write down of MD-80 fleet
35.3

 
35.3

Operating income excluding special item*
61.5

 
262.5


 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2017
 
2017
Reconciliation of operating CASM, excluding special item (millions)
 
 
 
Total operating expense (GAAP)
$
352.4

 
$
1,276.6

Special item:
 
 
 
     Write down of MD-80 fleet
35.3

 
35.3

Total operating expense less special item*
317.1

 
1,241.3

System available seat miles
3,430.7

 
13,612.0

Cost per available seat mile (cents) as reported
10.27

 
9.38

Cost per available seat mile excluding special item (cents)*
9.24

 
9.12





 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2017
 
2017
Reconciliation of operating CASM, excluding fuel and special item (millions)
Total operating expense (GAAP)
$
352.4

 
$
1,276.6

Less aircraft fuel expense
92.9

 
343.3

Total operating expense less fuel*
259.5

 
933.3

Special item:
 
 
 
     Write down of MD-80 fleet
35.3

 
35.3

Total operating expense less fuel and special item*
224.2

 
898.0

System available seat miles
3,430.7

 
13,612.0

Cost per available seat mile (cents) as reported
10.27

 
9.38

Cost per available seat mile excluding fuel and special item (cents)*
6.54

 
6.60


 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2017
 
2017
Reconciliation of net income as adjusted for special items (millions)
 
 
 
Net income as reported (GAAP)
$
82.5

 
$
194.9

Special items:
 
 
 
     Write down of MD-80 fleet
35.3

 
35.3

Less benefit related to tax reform
(74.1
)
 
(74.1
)
Net income as adjusted for special items*
43.7

 
156.1


 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2017
 
2017
Reconciliation of diluted earnings per share as adjusted for special items
 
 
 
Net income as reported (GAAP)
$
82.5

 
$
194.9

Net income as adjusted for special items (in millions)*
$
43.7

 
$
156.1

 
 
 
 
Diluted shares used for computation (thousands)
15,879

 
16,095

 
 
 
 
Diluted earnings per share as reported (per share) (GAAP)
$
5.13

 
$
11.93

 
 
 
 
Diluted earnings per share as adjusted for special items (per share)*
$
2.71

 
$
9.55


* Denotes Non-GAAP figure.


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