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) |
Exhibit No. | Description of Document |
Date: January 31, 2018 | ALLEGIANT TRAVEL COMPANY | ||
By: | /s/ Scott Sheldon | ||
Name: | Scott Sheldon | ||
Title: | Chief Financial Officer |
Exhibit No. | Description of Document |
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 | )% |
• | 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 |
• | 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 |
• | 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 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 |
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 |
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 | ) |
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 |
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 | ) |
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 | ) |
(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 | % |
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 | )% |
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 |
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