EX-99.1 4 a2018q18-kex991.htm EXHIBIT 99.1 Exhibit
Allegiant Q1 2018 Earnings
Page 1

Exhibit 99.1
 algtheaderq417a01.jpg
  
ALLEGIANT TRAVEL COMPANY FIRST QUARTER 2018
FINANCIAL RESULTS
First quarter 2018 Fully Diluted Earnings per Share of $3.42

LAS VEGAS. April 25, 2018 —Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the first quarter 2018, as well as comparisons to the prior year:

 
Three Months Ended 
 March 31,
 
Unaudited
2018
2017
Change
Total operating revenue (millions)
$
425.4

$
380.0

12.0
%
Operating income (millions)
80.0

73.7

8.5

Net income (millions)
55.2

42.2

30.9

Diluted earnings per share
$
3.42

$
2.53

35.2


"We are proud to announce our 61st consecutive profitable quarter," stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. "We are in the final year of our fleet transition and are seeing impressive results. Our first quarter operating margin only declined approximately one percentage point in spite of a greater than 20 percent increase in the cost of fuel. The transition to an all-Airbus fleet has been and continues to be a substantial one-time effort. We look forward to its completion."

“In addition, we are seeing a very positive impact from the transition to our new revenue management system. The year-over- year scheduled service load factor in March rose for the first time since 2011 without a sacrifice in March yields. Last but absolutely not least, we have continued to see a material improvement in our operations. According to the latest DOT statistics, in January our cancellation rate was the second lowest in the industry, which demonstrates our operational integrity and commitment to safety and reliability. This is directly correlated with the hard work of team members and the strong safety culture embedded throughout our system."





Allegiant Q1 2018 Earnings
Page 2

Shareholder returns

•
2018 shareholder returns - $11 million in the first quarter through dividends
◦
Will pay dividends of $0.70 per share on June 1, 2018 to shareholders of record as of May 18, 2018
◦
Current share repurchase authority of $100 million as of April 25, 2018

Balance sheet update

•
Amended senior secured revolving credit facility to increase borrowing limit to $81 million, in the first quarter
◦
The revolver is currently undrawn
•
24 Airbus aircraft are unencumbered as of April 25, 2018

Changes to Accounting Standards

•
On January 1, Allegiant adopted several new accounting standards, including Accounting Standard Update ("ASU") 2014-09: Revenue from Contracts with Customers (the “New Revenue Standard”)
•
The prior periods presented here have been recast to reflect adoption of these new standards. In particular, Allegiant is no longer disaggregating passenger revenue by scheduled service and air-related ancillary revenue
◦
Including all adjustments related to the New Revenue Standard, TRASM increased 1.4 percent
◦
Excluding these items, TRASM would have increased 2.5 percent over the same period last year

2018 outlook

•
Second quarter TRASM impact - Earlier Easter in the quarter is expected to decrease TRASM by two percentage points as part of Easter travel was in the first quarter of this year
•
Second quarter scheduled and system ASMs are expected to grow between ten and fourteen percent vs last year
•
2018 fuel cost is expected to be $2.20 per gallon
•
2018 tax rate - 2018 effective tax rate is expected to decline to between 21 and 22 percent impacted by:
◦
Adjustment of deferred tax balances due to the dissolution of foreign subsidiaries which are special purpose entities that were set up for the 12 aircraft on lease to a European carrier

Guidance, subject to revision
 
 
 
 
 
Full year 2018 guidance
 
Previous*
Current
Fuel cost per gallon
 
$2.17
$2.20
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
 
24 to 25%
21 to 22%
Share count (millions)
 
15.9
15.9
Earnings per share
 
$10 to $12
$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
$300
Capitalized Airbus deferred heavy maintenance (millions) ***
 
$45
$45
* - Previous guidance as of January 31, 2018
** - Excludes Sunseeker Resorts
*** - Not included in capital expenditure total


Allegiant Q1 2018 Earnings
Page 3

Aircraft fleet plan by end of period
 
 
 
 
 
 
 
 
 
 
 
Aircraft - (seats per AC)
 
1Q18

2Q18

3Q18

YE18

MD-80 (166 seats)
 
32

27

19

—

A319 (156 seats)
 
26

31

31

32

A320 (177/186 seats)
 
30

41

45

50

Total
 
88

99

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, April 25, 2018 to discuss its first quarter 2018 financial results. A live broadcast of the conference call will be available via the Company’s Investor Relations website homepage at http://ir.allegiantair.com. The webcast will also be archived in the “Events & Presentations” section of the website.



Allegiant Q1 2018 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 approximately 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, 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, public perception of our safety, 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 March 31,
 
Percent
 
2018
 
2017
 
change
OPERATING REVENUE:
 
 
 
 
 
Passenger revenue (1)
$
396,771

 
$
347,836

 
14.1

Third party products
10,325

 
12,742

 
(19.0
)
Fixed fee contract revenue
10,556

 
11,259

 
(6.2
)
Other revenue
7,792

 
8,174

 
(4.7
)
Total operating revenue
425,444

 
380,011

 
12.0

OPERATING EXPENSES:
 
 
 
 
 
Aircraft fuel
106,027

 
84,662

 
25.2

Salary and benefits
112,963

 
96,298

 
17.3

Station operations
37,584

 
31,832

 
18.1

Maintenance and repairs
19,270

 
30,095

 
(36.0
)
Depreciation and amortization
28,149

 
30,549

 
(7.9
)
Sales and marketing
19,078

 
13,331

 
43.1

Aircraft lease rentals
21

 
164

 
(87.2
)
Other
22,384

 
19,351

 
15.7

Total operating expense
345,476

 
306,282

 
12.8

OPERATING INCOME
79,968

 
73,729

 
8.5

OTHER (INCOME) EXPENSE:
 
 
 
 
 
Interest expense
12,724

 
8,401

 
51.5

Interest income
(1,907
)
 
(1,264
)
 
50.9

Other, net
(240
)
 
(360
)
 
(33.3
)
Total other (income) expense
10,577

 
6,777

 
56.1

INCOME BEFORE INCOME TAXES
69,391

 
66,952

 
3.6

PROVISION FOR INCOME TAXES
14,198

 
24,785

 
(42.7
)
NET INCOME
$
55,193

 
$
42,167

 
30.9

Earnings per share to common shareholders (2):
 
 
 

 
 
Basic

$3.43

 

$2.53

 
35.6

Diluted

$3.42

 

$2.53

 
35.2

Weighted average shares outstanding used in computing earnings per share to common shareholders (2):
 

 
 

 
 
Basic
15,889

 
16,382

 
(3.0
)
Diluted
15,898

 
16,405

 
(3.1
)

*NM - Not meaningful
(1) Passenger revenue previously reported as Scheduled service revenue.
(2) 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 March 31,
 
Percent
 
2018
 
2017
 
change (1)
OPERATING STATISTICS
 
 
 
 
 
Total system statistics:
 
 
 
 
 
Passengers
3,302,951

 
2,881,248

 
14.6

Revenue passenger miles (RPMs) (thousands)
3,094,805

 
2,708,498

 
14.3

Available seat miles (ASMs) (thousands)
3,728,563

 
3,376,837

 
10.4

Load factor
83.0
%
 
80.2
%
 
2.8

Operating expense per ASM (CASM) (cents)
9.27

 
9.07

 
2.2

Fuel expense per ASM (cents)
2.84

 
2.51

 
13.1

Operating CASM, excluding fuel (cents)
6.43

 
6.56

 
(2.0
)
ASMs per gallon of fuel
76.7

 
72.1

 
6.4

Departures
24,248

 
22,295

 
8.8

Block hours
57,803

 
53,193

 
8.7

Average stage length (miles)
910

 
903

 
0.8

Average number of operating aircraft during period
90.7

 
84.7

 
7.1

Average block hours per aircraft per day
7.1

 
7.0

 
1.4

Full-time equivalent employees at end of period
3,776

 
3,536

 
6.8

Fuel gallons consumed (thousands)
48,640

 
46,850

 
3.8

Average fuel cost per gallon
$
2.18

 
$
1.81

 
20.4

Scheduled service statistics:
 
 
 
 
 
Passengers
3,279,368

 
2,845,480

 
15.2

Revenue passenger miles (RPMs) (thousands)
3,064,619

 
2,661,934

 
15.1

Available seat miles (ASMs) (thousands)
3,602,015

 
3,237,164

 
11.3

Load factor
85.1
%
 
82.2
%
 
2.9

Departures
23,264

 
21,248

 
9.5

Block hours
55,689

 
50,876

 
9.5

Total passenger revenue per ASM (TRASM) (cents) (2)
11.30

 
11.14

 
1.4

Average fare - scheduled service (3)
$
73.81

 
$
75.24

 
(1.9
)
Average fare - air-related charges (3)
$
47.18

 
$
47.00

 
0.4

Average fare - third party products
$
3.15

 
$
4.48

 
(29.7
)
Average fare - total
$
124.14

 
$
126.72

 
(2.0
)
Average stage length (miles)
916

 
908

 
0.9

Fuel gallons consumed (thousands)
46,872

 
44,892

 
4.4

Average fuel cost per gallon
$
2.17

 
$
1.80

 
20.6

Percent of sales through website during period
93.8
%
 
95.1
%
 
(1.3
)

(1) Except load factor and percent of sales through website, which is percentage point change.
(2) 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. The 2017 figure reflected has been adjusted from previously reported as a result of recast.
(3) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.





Summary Balance Sheet

(millions)
3/31/2018
 
12/31/2017
 
Change
 
(unaudited)
 
 
 
 
Unrestricted cash
 
 
 
 
 
Cash and cash equivalents
$
50.8

 
$
59.4

 
(14.5
)%
Short-term investments
341.3

 
352.7

 
(3.2
)
Long-term investments
85.6

 
78.6

 
8.9

Total unrestricted cash and investments
477.7

 
490.7

 
(2.6
)
Debt
 
 
 
 
 
Current maturities of long-term debt, net of related costs
150.5

 
214.8

 
(29.9
)
Long-term debt, net of current maturities and related costs
912.3

 
950.1

 
(4.0
)
Total debt
1,062.8

 
1,164.9

 
(8.8
)
Total Allegiant Travel Company shareholders’ equity
$
598.3

 
$
551.8

 
8.4
 %

Summary Cash Flow

 
Three Months Ended March 31,
 
 
Unaudited (millions)
2018
 
2017
 
Change
Cash provided by operating activities
$
176.3

 
$
146.6

 
20.3
 %
Purchase of property and equipment, including capitalized interest*
72.5

 
58.5

 
23.9

Repurchase of common stock
2.2

 
4.9

 
(55.1
)
Cash dividends paid to shareholders
11.3

 
11.7

 
(3.4
)
Proceeds from the issuance of long-term debt
—

 
22.0

 
(100.0
)
Principal payments on long-term debt & capital lease obligations
$
102.9

 
$
26.4

 
289.8
 %
* Includes aircraft pre-delivery deposits.



EPS Calculation

The following table sets forth the computation of net income per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in table are in thousands):

 
Three Months Ended March 31,
 
2018
 
2017
Basic:
 
 
 
Net income
$
55,193

 
$
42,167

Less net income allocated to participating securities
(768
)
 
(691
)
Net income attributable to common stock
$
54,425

 
$
41,476

Net income per share, basic
$
3.43

 
$
2.53

Weighted-average shares outstanding
15,889

 
16,382

Diluted:
 

 
 

Net income
$
55,193

 
$
42,167

Less net income allocated to participating securities
(768
)
 
(690
)
Net income attributable to common stock
$
54,425

 
$
41,477

Net income per share, diluted
$
3.42

 
$
2.53

Weighted-average shares outstanding
15,889

 
16,382

Dilutive effect of stock options and restricted stock
46

 
91

Adjusted weighted-average shares outstanding under treasury stock method
15,935

 
16,473

Participating securities excluded under two-class method
(37
)
 
(68
)
Adjusted weighted-average shares outstanding under two-class method
15,898

 
16,405




Appendix A
Consolidated Statements of Income
As Recast for Adoption of New Accounting Standard on January 1, 2018
Twelve Months Ended December 31, 2017
(in thousands, except per share amounts)
(Unaudited)

On January 1, 2018, the Company adopted Accounting Standard Update ("ASU") 2014-09: Revenue from Contracts with Customers (the “New Revenue Standard”). In accordance with the transition provisions of this new standard, the Company has recast certain 2017 financial information previously reported in accordance with GAAP in effect as of December 31, 2017 to reflect the expected effects of adoption. This recast financial information is labeled “As Recast” and is included for supplemental purposes only. The adoption and related disclosures required by GAAP will be reported in the Company’s report on Form 10-Q for the quarter ended March 31, 2018.

 
 
 
 
New Revenue Standard
 
 
 
 
As Reported
 
Deferred Revenue Method
 
Reclassifications
 
As Recast
OPERATING REVENUE:
 
 
 
 
 
 
 
 
Passenger revenue*
 
$
818,136

 
$
3,463

 
$
550,440

 
$
1,372,039

Ancillary revenue:
 
 
 
 
 
 
 
 
Air-related charges
 
546,476

 
 
 
(546,476
)
 
—

Third party products
 
52,707

 
 
 
 
 
52,707

Fixed fee contract revenue
 
48,708

 
 
 
 
 
48,708

Other revenue
 
37,751

 
 
 
 
 
37,751

Total operating revenue
 
1,503,778

 
3,463

 
3,964

 
1,511,205

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
Aircraft fuel
 
343,333

 
 
 
 
 
343,333

Salary and benefits
 
371,599

 
 
 
 
 
371,599

Station operations
 
142,581

 
 
 
 
 
142,581

Maintenance and repairs
 
113,481

 
 
 
 
 
113,481

Depreciation and amortization
 
121,713

 
 
 
 
 
121,713

Sales and marketing
 
52,711

 
 
 
3,964

 
56,675

Aircraft lease rentals
 
3,098

 
 
 
 
 
3,098

Other
 
92,840

 
 
 
 
 
92,840

Special charge
 
35,253

 
 
 
 
 
35,253

Total operating expense
 
1,276,609

 
—

 
3,964

 
1,280,573

OPERATING INCOME
 
227,169

 
3,463

 
—

 
230,632

OTHER (INCOME) EXPENSE:
 
 
 
 
 
 
 
 
Interest expense
 
38,990

 
 
 
 
 
38,990

Interest income
 
(5,808
)
 
 
 
 
 
(5,808
)
Other, net
 
(1,559
)
 
 
 
 
 
(1,559
)
Total other (income) expense
 
31,623

 
—

 
—

 
31,623

INCOME BEFORE INCOME TAXES
 
195,546

 
3,463

 
—

 
199,009

PROVISION FOR INCOME TAXES
 
644

 
1,178

 
 
 
1,822

NET INCOME
 
$
194,902

 
$
2,285

 
$
—

 
$
197,187

Earnings per share to common shareholders:
 
 
 
 
 
 
 
 
Basic
 
$
11.94

 
 
 
 
 
$
12.08

Diluted
 
$
11.93

 
 
 
 
 
$
12.07

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

 
 
 
 
 
16,073

Diluted
 
16,095

 
 
 
 
 
16,095

*Labeled as "Scheduled service revenue" in previous filings.



 
 
As Reported
 
As Recast
Operating Stats:
 
 
 
 
Total System ASMs
 
13,612,003

 
13,612,003

Scheduled Service ASMs
 
13,031,824

 
13,031,824

TRASM (cents)
 
10.88

 
10.93

CASM (cents)
 
9.38

 
9.41




Consolidated Statements of Income
As Recast for Adoption of New Accounting Standard on January 1, 2018
(in thousands, except per share amounts)
(Unaudited)

As previously discussed, on January 1, 2018, the Company adopted the New Revenue Standard. The following table presents the As Recast quarterly and annual 2017 Consolidated Statements of Income.

 
 
1Q17
 
2Q17
 
3Q17
 
4Q17
 
FY17
OPERATING REVENUE:
 
 
 
 
 
 
 
 
 
 
Passenger revenue*
 
$
347,836

 
$
367,250

 
$
315,308

 
$
341,645

 
$
1,372,039

Third party products
 
12,742

 
14,304

 
12,348

 
13,313

 
52,707

Fixed fee contract revenue
 
11,259

 
11,029

 
11,831

 
14,589

 
48,708

Other revenue
 
8,174

 
9,261

 
10,708

 
9,608

 
37,751

Total operating revenue
 
380,011

 
401,844

 
350,195

 
379,155

 
1,511,205

OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
Aircraft fuel
 
84,662

 
85,387

 
80,421

 
92,863

 
343,333

Salary and benefits
 
96,298

 
92,221

 
88,788

 
94,292

 
371,599

Station operations
 
31,832

 
38,998

 
37,148

 
34,603

 
142,581

Maintenance and repairs
 
30,095

 
28,645

 
28,870

 
25,871

 
113,481

Depreciation and amortization
 
30,549

 
30,129

 
31,894

 
29,141

 
121,713

Sales and marketing
 
13,331

 
13,492

 
13,884

 
15,968

 
56,675

Aircraft lease rentals
 
164

 
2,400

 
533

 
1

 
3,098

Other
 
19,351

 
24,777

 
24,315

 
24,397

 
92,840

Special charge
 
—

 
—

 
—

 
35,253

 
35,253

Total operating expense
 
306,282

 
316,049

 
305,853

 
352,389

 
1,280,573

OPERATING INCOME
 
73,729

 
85,795

 
44,342

 
26,766

 
230,632

OTHER (INCOME) EXPENSE:
 
 
 
 
 
 
 
 
 
 
Interest income
 
(1,264
)
 
(1,475
)
 
(1,454
)
 
(1,615
)
 
(5,808
)
Interest expense
 
8,401

 
8,889

 
10,041

 
11,659

 
38,990

Other, net
 
(360
)
 
(493
)
 
(400
)
 
(306
)
 
(1,559
)
Total other (income) expense
 
6,777

 
6,921

 
8,187

 
9,738

 
31,623

INCOME BEFORE INCOME TAXES
 
66,952

 
78,874

 
36,155

 
17,028

 
199,009

PROVISION FOR INCOME TAXES
 
24,785

 
30,018

 
12,955

 
(65,936
)
 
1,822

NET INCOME
 
$
42,167

 
$
48,856

 
$
23,200

 
$
82,964

 
$
197,187

Earnings per share to common shareholders:
 
 
 
 
 
 
 
 
 
 
Basic
 
$
2.53

 
$
2.97

 
$
1.44

 
$
5.16

 
$
12.08

Diluted
 
$
2.53

 
$
2.96

 
$
1.44

 
$
5.16

 
$
12.07

Weighted average shares outstanding used in computing earnings per share to common shareholders:
 
 
Basic
 
16,382

 
16,198

 
15,852

 
15,868

 
16,073

Diluted
 
16,404

 
16,220

 
15,862

 
15,879

 
16,095

*Labeled as "Scheduled service revenue" in previous filings.

 
 
1Q17
 
2Q17
 
3Q17
 
4Q17
 
FY17
Operating Stats:
 
 
 
 
 
 
 
 
 
 
Total System ASMs
 
3,376,837

 
3,584,209

 
3,220,246

 
3,430,711

 
13,612,003

Scheduled Service ASMs
 
3,237,164

 
3,436,872

 
3,073,360

 
3,284,429

 
13,031,824

TRASM (cents)
 
11.14

 
11.10

 
10.66

 
10.81

 
10.93

CASM (cents)
 
9.07

 
8.82

 
9.50

 
10.27

 
9.41




2017 Quarterly Adjustments to Statements of Income
Resulting From Adoption of New Accounting Standard on January 1, 2018
(in thousands)
(Unaudited)

As previously discussed, on January 1, 2018, the Company adopted the New Revenue Standard. The following table presents certain selected line items As Recast from the Company's quarterly and annual 2017 Consolidated Statements of Income.

 
 
FY17 As Reported
 
1Q17
 
2Q17
 
3Q17
 
4Q17
 
FY17 As Recast
Passenger revenue
 
$
1,364,612

 
$
4,174

 
$
1,230

 
$
1,426

 
$
597

 
$
1,372,039

 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and marketing
 
52,711

 
3,333

 
631

 
—

 
—

 
56,675

 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for income taxes
 
644

 
306

 
218

 
519

 
135

 
1,822




Consolidated Balance Sheets
As Recast for Adoption of New Accounting Standard on January 1, 2018
December 31, 2017
(in thousands)
(Unaudited)

As previously discussed, on January 1, 2018, the Company adopted the New Revenue Standard. The following table presents the effects of the adoption of the New Revenue Standard on the December 31, 2017 Consolidated Balance Sheet.

 
 
As Reported
 
New Revenue Standard
 
As Recast
CURRENT ASSETS:
 
 
 
 
 
 
Cash and cash equivalents
 
$
59,449

 
$
—

 
$
59,449

Restricted cash
 
11,190

 
—

 
11,190

Short-term investments
 
352,681

 
—

 
352,681

Accounts receivable
 
71,057

 
—

 
71,057

Expendable parts, supplies and fuel, net
 
17,647

 
—

 
17,647

Prepaid expenses
 
23,931

 
—

 
23,931

Other current assets
 
5,320

 
—

 
5,320

TOTAL CURRENT ASSETS
 
541,275

 
—

 
541,275

Property and equipment, net
 
1,512,415

 
—

 
1,512,415

Long-term investments
 
78,570

 
—

 
78,570

Deferred major maintenance, net
 
31,326

 
—

 
31,326

Deposits and other assets
 
16,571

 
—

 
16,571

TOTAL ASSETS
 
$
2,180,157

 
$
—

 
$
2,180,157

CURRENT LIABILITIES:
 
 
 
 
 
 
Accounts payable
 
$
20,108

 
$
—

 
$
20,108

Accrued liabilities
 
105,127

 
—

 
105,127

Air traffic liability
 
210,184

 
(5,885
)
 
204,299

Current maturities of notes payable, net of related costs
 
214,761

 
—

 
214,761

TOTAL CURRENT LIABILITIES
 
550,180

 
(5,885
)
 
544,295

Long-term debt, net of current maturities and related costs
 
950,131

 
—

 
950,131

Deferred income taxes
 
118,492

 
2,064

 
120,556

Other noncurrent liabilities
 
13,407

 
—

 
13,407

TOTAL LIABILITIES:
 
1,632,210

 
(3,821
)
 
1,628,389

SHAREHOLDERS' EQUITY:
 
 
 
 
 
 
Common stock, par value $.001
 
23

 
—

 
23

Treasury stock
 
(605,655
)
 
—

 
(605,655
)
Additional paid in capital
 
253,840

 
—

 
253,840

Accumulated other comprehensive loss, net
 
(2,840
)
 
—

 
(2,840
)
Retained earnings
 
902,579

 
3,821

 
906,400

TOTAL EQUITY
 
547,947

 
3,821

 
551,768

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
2,180,157

 
$
—

 
$
2,180,157