Le Lézard
Classified in: Tourism and vacations, Transportation, Business, Covid-19 virus
Subjects: ERN, CCA

Allegiant Travel Company Third Quarter 2020 Financial Results


LAS VEGAS, Oct. 28, 2020 /PRNewswire/ -- Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the third quarter 2020, as well as comparisons to the prior year:

Consolidated

Three Months Ended
September 30,

Percent Change


Nine Months Ended
September 30,

Percent Change

(unaudited) (in millions, except per
share amounts)

2020


2019



2020


2019


Total operating revenue

$

201.0



$

436.5


(54.0)

%


$

743.5



$

1,379.9


(46.1)

%

Operating income (loss)

(33.1)



72.1


(145.9)



(257.3)



271.3


(194.9)


Income (loss) before income taxes

(44.7)



56.9


(178.6)



(321.9)



222.6


(244.6)


Net income (loss)

(29.1)



43.9


(166.3)



(155.3)



171.6


(190.5)


Diluted earnings (loss) per share

$

(1.82)



$

2.70


(167.4)



$

(9.75)



$

10.54


(192.5)






























































Consolidated - adjusted

Three Months Ended
September 30,

Percent Change


Nine Months Ended
September 30,

Percent Change

(unaudited) (in millions, except per share amounts)

2020


2019



2020


2019


Adjusted operating income (loss) (1) (2)

$

(77.4)



$

72.1


(207.4)

%


$

(128.8)



$

271.3


(147.5)

%

Adjusted income (loss) before income taxes(1) (2)

(89.0)



56.9


(256.4)



(166.8)



222.6


(174.9)


Adjusted net income (loss)(1) (2)

(68.5)



43.9


(256.0)



(128.4)



171.6


(174.8)


Adjusted diluted earnings (loss) per share (1) (2)

$

(4.28)



$

2.70


(258.5)



$

(8.07)



$

10.54


(176.6)






















(1) Adjusted to exclude COVID related special charges, the benefit from the CARES Act payroll support program, and the portion of the tax benefit (as applicable) attributable to the CARES Act.

(2) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information.

"As we continue to navigate through the pandemic we have been encouraged by the modest, yet consistent improvements during the third quarter and into the fourth," stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. "Consumer confidence towards air travel is improving as seen in our quarterly performance. We completed the quarter beating consensus with a loss per share of $4.28, excluding one-time, special items, and the benefit from the CARES Act. Our scheduled capacity year-over-year was down less than seven percent, perhaps the best showing in the industry. Revenue is also trending in the right direction with September totals down 43 percent versus prior year. Although we still have a long road ahead of us, the progress we've seen is a direct reflection of the quality of our people and the nimbleness of the model.

"As we move into the fourth quarter, we remain focused on cash management. Our cash preservation strategy continues to center around maintaining a broad selling presence as well as stripping costs from the business. Our revenue and planning teams have done an exceptional job optimizing our schedule available for sale. We've seen average daily gross bookings increase from just over $2 million per day during the third quarter to over $3 million per day thus far in the fourth quarter. On the cost front, we successfully reduced variable operating expenses by nearly 30 percent, excluding the CARES Act payroll support benefit and one-time special items, which outpaces our reduction in capacity more than threefold. These savings are important in paving the way to cash break-even. Our cash preservation strategies coupled with strategic capital raises over the last several weeks have contributed to our pro forma cash balance of $850 million

"Even though we're pleased with recent progress, we remain cautious. We have had to make tough decisions the past few months, including a reduction in our workforce. Although difficult, these steps were necessary to right size our organization to better align with demand. This environment has been difficult for our team members, and I cannot thank them enough for their continued hard work and dedication during this trying time. Their efforts to prioritize health and safety for our passengers, and our leadership efforts to bolster the financial health of the company have laid a solid foundation for our recovery. This has been and will continue to be a slow climb out of this abyss known as COVID. At this point, I believe we are leading the way out towards light ahead in the coming months and year."  

Covid-19 Responses - Update

Third Quarter 2020 Results

Balance Sheet, Cash and Liquidity

(1) Daily cash burn defined as cash from operations less scheduled debt and rent payments and capital expenditure outflows excluding aircraft and engine acquisitions as they are expected to be financed. Excludes benefits received from CARES Act such as Payroll Support Program funding and tax refunds from net operating loss carry-backs.

Capital Expenditures

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, October 28 to discuss its third quarter 2020 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 Travel Company

Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with premier leisure experiences - from vacations to hometown family entertainment. Since 1999, Allegiant Air has linked travelers in small-to-medium cities to world-class vacation destinations with all-nonstop flights and industry-low average fares. Today, Allegiant's all-Airbus fleet serves communities across the nation, with base airfares less than half the cost of the average domestic roundtrip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at 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 airline operations and capacity, the efficacy of cost saving measures, future expenditures, cash burn, the timing of aircraft acquisitions and retirements,  aircraft financings,  expected capital expenditures, 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, the impact and duration of the COVID-19 pandemic on airline travel and the economy, liquidity issues resulting from the effect of the COVID-19 pandemic on our business, restrictions imposed on us as a result of accepting grants and loans under the Cares Act, an accident involving, or problems with, our aircraft, public perception of our safety, our reliance on our automated systems, our reliance on third parties to deliver aircraft under contract to us on a timely basis, 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 to be acquired, 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 and finance a resort 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 September 30,


Percent


2020


2019


change

OPERATING REVENUE:






Passenger revenue

$

181,916



$

391,222



(53.5)


Third party products

11,337



18,207



(37.7)


Fixed fee contract revenue

5,284



19,797



(73.3)


Other revenue

2,447



7,283



(66.4)


Total operating revenue

200,984



436,509



(54.0)


OPERATING EXPENSES:






Salary and benefits

95,829



107,586



(10.9)


Aircraft fuel

52,540



104,583



(49.8)


Depreciation and amortization

45,291



39,436



14.8


Station operations

39,954



43,522



(8.2)


Maintenance and repairs

14,038



24,768



(43.3)


Sales and marketing

7,967



17,591



(54.7)


Aircraft lease rental

3,015



?



NM

Other

19,755



26,907



(26.6)


CARES Act grant recognition

(77,909)



?



NM

Special charges

33,585



?



NM

Total operating expense

234,065



364,393



(35.8)


OPERATING INCOME (LOSS)

(33,081)



72,116



(145.9)


OTHER (INCOME) EXPENSE:






Interest expense

11,943



19,506



(38.8)


Capitalized interest

?



(903)



NM

Interest income

(868)



(3,335)



(74.0)


Other, net

552



(57)



NM

Total other expense

11,627



15,211



(23.6)


INCOME (LOSS) BEFORE INCOME TAXES

(44,708)



56,905



(178.6)


INCOME TAX PROVISION (BENEFIT)

(15,565)



12,976



(220.0)


NET INCOME (LOSS)

$

(29,143)



$

43,929



(166.3)


Earnings (loss) per share attributable to common shareholders(1):






Basic

($1.82)



$2.70



(167.4)


Diluted

($1.82)



$2.70



(167.4)


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






Basic

16,006



16,037



(0.2)


Diluted

16,006



16,039



(0.2)











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 September 30,


Percent


2020


2019


change (1)

OPERATING STATISTICS






Total system statistics:






Passengers

2,016,241



3,806,369



(47.0)


Available seat miles (ASMs) (thousands)

3,521,508



3,888,400



(9.4)


Airline operating expense per ASM (CASM) (cents)

6.45



9.09



(29.0)


Adjusted airline operating expense per ASM (CASM) (cents)

7.74



9.09



(14.9)


Fuel expense per ASM (cents)

1.49



2.69



(44.6)


Airline operating CASM, excluding fuel (cents)

4.96



6.40



(22.5)


Adjusted airline operating CASM, excluding fuel (cents)

6.25



6.40



(2.3)


ASMs per gallon of fuel

88.5



80.3



10.2


Departures

24,365



27,707



(12.1)


Block hours

52,238



59,678



(12.5)


Average stage length (miles)

834



823



1.3


Average number of operating aircraft during period

90.7



87.6



3.5


Average block hours per aircraft per day

6.3



7.4



(14.9)


Full-time equivalent employees at end of period

4,275



4,267



0.2


Fuel gallons consumed (thousands)

39,786



48,443



(17.9)


Average fuel cost per gallon

$

1.32



$

2.16



(38.9)


Scheduled service statistics:






Passengers

2,003,648



3,753,611



(46.6)


Revenue passenger miles (RPMs) (thousands)

1,714,622



3,170,826



(45.9)


Available seat miles (ASMs) (thousands)

3,449,339



3,687,473



(6.5)


Load factor

49.7

%


86.0

%


(36.3)


Departures

23,710



26,238



(9.6)


Block hours

51,057



56,576



(9.8)


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

5.60



11.10



(49.5)


Average fare - total scheduled service(3)

$

40.75



$

54.20



(24.8)


Average fare - air-related charges(3)

$

50.04



$

50.03



?


Average fare - third party products

$

5.66



$

4.85



16.7


Average fare - total

$

96.45



$

109.08



(11.6)


Average stage length (miles)

839



824



1.8


Fuel gallons consumed (thousands)

38,853



46,038



(15.6)


Average fuel cost per gallon

$

1.32



$

2.17



(39.2)


Percent of sales through website during period

92.3

%


93.1

%


(0.8)


Other data:






Rental car days sold

255,800



482,944



(47.0)


Hotel room nights sold

44,655



99,991



(55.3)











(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.

(3) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.

 

 

Allegiant Travel Company

Consolidated Statements of Income

(in thousands, except per share amounts)

(Unaudited)



Nine Months Ended September 30,


Percent


2020


2019


change

OPERATING REVENUE:






Passenger revenue

$

677,347



$

1,265,978



(46.5)


Third party products

35,756



53,557



(33.2)


Fixed fee contract revenue

17,440



42,859



(59.3)


Other revenue

12,969



17,498



(25.9)


Total operating revenue

743,512



1,379,892



(46.1)


OPERATING EXPENSES:






Salary and benefits

303,264



340,589



(11.0)


Aircraft fuel

168,711



324,253



(48.0)


Depreciation and amortization

132,285



114,112



15.9


Station operations

108,359



128,357



(15.6)


Maintenance and repairs

48,866



68,470



(28.6)


Sales and marketing

35,331



59,057



(40.2)


Aircraft lease rentals

5,404



?



NM

Other

70,225



73,756



(4.8)


CARES Act grant recognition

(152,448)



?



NM

Special charges

280,852



?



NM

Total operating expense

1,000,849



1,108,594



(9.7)


OPERATING INCOME (LOSS)

(257,337)



271,298



(194.9)


OTHER (INCOME) EXPENSE:






Interest expense

44,149



58,531



(24.6)


Capitalized interest

(4,067)



(3,444)



18.1


Interest income

(4,596)



(10,038)



(54.2)


Loss on extinguishment of debt

1,222



3,677



(66.8)


Special charges

26,632



?



NM

Other, net

1,173



(41)



NM

Total other expense

64,513



48,685



32.5


INCOME (LOSS) BEFORE INCOME TAXES

(321,850)



222,613



(244.6)


INCOME TAX PROVISION (BENEFIT)

(166,595)



51,017



(426.5)


NET INCOME (LOSS)

$

(155,255)



$

171,596



(190.5)


Earnings (loss) per share attributable to common shareholders(1):






Basic

($9.75)



$10.55



(192.4)


Diluted

($9.75)



$10.54



(192.5)


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






Basic

15,953



16,037



(0.5)


Diluted

15,953



16,045



(0.6)











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) 



Nine Months Ended September 30,


Percent


2020


2019


change(1)

OPERATING STATISTICS






Total system statistics:






Passengers

6,464,949



11,426,183



(43.4)


Available seat miles (ASMs) (thousands)

9,809,934



12,245,704



(19.9)


Airline operating expense per ASM (CASM) (cents)

8.31



8.78



(5.4)


Adjusted airline operating expense per ASM (CASM) (cents)

8.66



8.78



(1.4)


Fuel expense per ASM (cents)

1.72



2.65



(35.1)


Airline operating CASM, excluding fuel (cents)

6.59



6.13



7.5


Adjusted airline operating CASM, excluding fuel (cents)

6.94



6.13



13.2


ASMs per gallon of fuel

87.6



82.2



6.6


Departures

65,766



83,454



(21.2)


Block hours

147,350



187,829



(21.6)


Average stage length (miles)

862



858



0.5


Average number of operating aircraft during period

92.1



84.1



9.5


Average block hours per aircraft per day

5.8



8.2



(29.3)


Full-time equivalent employees at end of period

4,275



4,267



0.2


Fuel gallons consumed (thousands)

111,929



148,980



(24.9)


Average fuel cost per gallon

$

1.51



$

2.18



(30.7)


Scheduled service statistics:






Passengers

6,424,331



11,307,004



(43.2)


Revenue passenger miles (RPMs) (thousands)

5,747,639



9,964,948



(42.3)


Available seat miles (ASMs) (thousands)

9,588,031



11,800,788



(18.8)


Load factor

59.9

%


84.4

%


(24.5)


Departures

63,877



80,149



(20.3)


Block hours

143,651



180,674



(20.5)


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

7.44



11.18



(33.5)


Average fare - scheduled service(3)

$

52.12



$

60.40



(13.7)


Average fare - air-related charges(3)

$

53.32



$

51.56



3.4


Average fare - third party products

$

5.57



$

4.74



17.5


Average fare - total

$

111.00



$

116.70



(4.9)


Average stage length (miles)

867



861



0.7


Fuel gallons consumed (thousands)

109,082



143,433



(23.9)


Average fuel cost per gallon

$

1.50



$

2.17



(30.9)


Percent of sales through website during period

93.2

%


93.4

%


(0.2)


Other data:






Rental car days sold

872,382



1,495,502



(41.7)


Hotel room nights sold

149,431



319,197



(53.2)











(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.

(3) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.

 

Summary Balance Sheet

Unaudited (millions)

September 30, 2020 (unaudited)


December 31, 2019


Percent Change

Unrestricted cash and investments






Cash and cash equivalents

$

268.0



$

121.9



119.9

%

Short-term investments

441.8



335.9



31.5


Long-term investments

?



15.5



NM

Total unrestricted cash and investments

709.8



473.3



50.0


Debt






Current maturities of long-term debt and finance lease obligations, net of related costs

233.7



173.3



34.9


Long-term debt and finance lease obligations, net of current maturities and related costs

1,316.2



1,248.6



5.4


Total debt

1,549.9



1,421.9



9.0


Debt, net of liquidity

840.1



948.6



(11.4)


Total Allegiant Travel Company shareholders' equity

711.7



883.6



(19.5)


 

Summary Cash Flow


Nine Months Ended September 30,


Percent

Unaudited (millions)

2020


2019


Change

Cash provided by operating activities

$

273.8



$

321.4



(14.8)

%

Changes in air traffic liability

84.1



55.4



51.8


Changes in working capital, ex air traffic liability

(171.8)



(79.9)



115.0


Purchase of property and equipment

195.4



350.2



(44.2)


Cash dividends paid to shareholders

11.4



34.2



(66.7)


Proceeds from the issuance of long-term debt

272.5



770.4



(64.6)


Principal payments on long-term debt & finance lease obligations

146.4



670.1



(78.2)


 

Daily Cash Burn Reconciliation

Daily cash burn defined as cash from operations less debt and rent payments and capital expenditure outflows, excluding aircraft and engine acquisitions. Excludes the impact of the CARES Act Payroll Support Program funding.

Unaudited (millions)


Three Months Ended
September 30, 2020

Cash from operations


$

(3)




Adjustments:



     Debt and rent payments


48

     CARES Act payroll support


15

     Federal tax refund received for net operating losses


49

     Rate differential of net operating loss included in net loss


(5)

     Capital expenditures, excluding airframes and engines


10

Total adjustments


117




Adjusted cash burn


$

(120)

Days in period


92

Average daily cash burn


$

1.3

 

EPS Calculation

The following table sets forth the computation of net income (loss) 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 September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Basic:








Net income (loss)

$

(29,143)



$

43,929



$

(155,255)



$

171,596


Less income allocated to participating securities

?



(578)



(236)



(2,441)


Net income (loss) attributable to common stock

$

(29,143)



$

43,351



$

(155,491)



$

169,155


Earnings (loss) per share, basic

$

(1.82)



$

2.70



$

(9.75)



$

10.55


Weighted-average shares outstanding

16,006



16,037



15,953



16,037


Diluted:








Net income (loss)

$

(29,143)



$

43,929



$

(155,255)



$

171,596


Less income allocated to participating securities

?



(578)



(236)



(2,440)


Net income (loss) attributable to common stock

$

(29,143)



$

43,351



$

(155,491)



$

169,156


Earnings (loss) per share, diluted

$

(1.82)



$

2.70



$

(9.75)



$

10.54


Weighted-average shares outstanding 1

16,006



16,037



15,953



16,037














(1) Dilutive effect of common stock equivalents excluded from the diluted per share calculation is not material.

 

Appendix A
Non-GAAP Presentation
Three and Nine Months Ended September 30, 2020 and 2019
(Unaudited)

Adjusted operating income (loss), adjusted income (loss) before income taxes, adjusted net income (loss) and adjusted diluted earnings (loss) per share, all eliminate the effect of special expenses, related directly to COVID 19, as well as the benefit related to the payroll support grant as provided under the CARES Act, which are not reflective of our ongoing operating performance. The adjusted diluted earnings (loss) per share also ignores a one-time tax benefit allowed under the CARES Act.  As such, all of these are non-GAAP financial measures.

In addition, airline operating expense and adjusted airline operating expense eliminate the effects of non-airline operating activity, which is not reflective of the airline operating performance.

EBITDA, as presented in this press release, and the various adjusted and airline only metrics disclosed, are supplemental measures of our performance that are not required by, or presented in accordance with, accounting principles generally accepted in the United States ("GAAP"). They are not measurements of our financial performance under GAAP and should not be considered in isolation or as an alternative to net income or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity.

We define "EBITDA" as earnings before interest, taxes, depreciation and amortization. "Adjusted EBITDA" is EBITDA adjusted to eliminate the effect of special charges and the CARES Act grant. We caution investors that amounts presented in accordance with these definitions may not be comparable to similar measures disclosed by other issuers, because not all issuers and analysts calculate EBITDA and Adjusted EBITDA in the same manner.

We use EBITDA and Adjusted EBITDA to evaluate our operating performance and liquidity and these are among the primary measures used by management for planning and forecasting of future periods. We believe the presentation of these measures is relevant and useful for investors because they allow investors to view results in a manner similar to the method used by management and makes it easier to compare our results with other companies that have different financing and capital structures. EBITDA has important limitations as an analytical tool. These limitations include the following:

Presented below is a quantitative reconciliation of EBITDA to the most directly comparable GAAP financial performance measure, which we believe is net income (loss). We believe the presentation of EBITDA and the various adjusted and airline only measures are relevant and useful for investors because they allow them to better gauge the performance of the airline and to compare our results to other airlines.

In addition to EBITDA and Adjusted EBITDA as defined above, we have included a separate EBITDA as defined by certain credit agreements. This measurement of EBITDA adjusts for losses on impairment, Sunseeker net income/(loss), stock compensation expense, amortization of debt issuance costs, (gain)/loss on disposal of assets, tax provision - in excess of cash paid, special non-recurring items, and other items.

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 revenue, operating income (loss), net income (loss), operating expenses, and diluted earnings (loss) per share 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 operating income (loss), net income (loss) or other measures of financial performance prepared in accordance with GAAP. Our use of these non-GAAP measures may not be comparable to similarly titled measures employed by other companies in the airline and travel industry. The reconciliation of each of these measures to the most comparable GAAP measure for the periods is indicated below.

 

Reconciliation of Non-GAAP Financial Measures


Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Reconciliation of adjusted operating income (loss) (millions)








Operating income (loss) as reported (GAAP)

$

(33.1)



$

72.1



$

(257.3)



$

271.3










CARES Act grant recognition

(77.9)



?



(152.4)



?


Special charges

33.6



?



280.9



?


Adjusted operating income (loss) (1)

(77.4)



72.1



(128.8)



271.3







Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Reconciliation of adjusted income (loss) before income taxes (millions)








Income (loss) before income taxes as reported (GAAP)

$

(44.7)



$

56.9



$

(321.9)



$

222.6










CARES Act grant recognition

(77.9)



?



(152.4)



?


Special charges (operating & non-operating)

33.6



?



307.5



?


Adjusted income (loss) before income taxes (1)

(89.0)



56.9



(166.8)



222.6







Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Reconciliation of adjusted net income (loss) (millions) and adjusted earnings (loss) per share (cents)








Adjusted income (loss) before income taxes (per calculation in previous table) (1)

$

(89.0)



$

56.9



$

(166.8)



$

222.6


Provision (benefit) for income taxes as reported (GAAP)

(15.6)



13.0



(166.6)



51.0


Adjusted provision (benefit) for income taxes (1) (2)

(20.5)



13.0



(38.4)



51.0


Net income (loss) adjusted for special items, CARES Act grant, and adjustment to tax resulting from CARES Act(1)

(68.5)



43.9



(128.4)



171.6










Diluted shares as reported (GAAP)

16,006



16,039



15,953



16,045


Diluted earnings (loss) per share as reported (GAAP)

(1.82)



2.70



(9.75)



10.54


Adjusted fully diluted earnings (loss) per share(1)

(4.28)



2.70



(8.07)



10.54







Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Reconciliation of adjusted airline CASM and CASM excluding fuel (millions, unless otherwise noted)








Operating expense as reported (GAAP)

$

234.1



$

364.4



$

1,000.8



$

1,108.6


Non-airline operating expense (1)

6.9



10.9



185.7



34.0


Airline operating expense

227.2



353.5



815.1



1,074.6










CARES Act grant recognition

77.9



?



152.4



?


Airline operating special charges

(32.6)



?



(118.1)



?


Adjusted airline operating expense

272.5



353.5



849.4



1,074.6


Fuel expense as reported

52.5



104.6



168.7



324.3


Adjusted airline operating expense excluding fuel

220.0



248.9



680.7



750.3










Available seat miles (ASMs) (thousands)

3,521,508



3,888,400



9,809,934



12,245,704










Airline operating expense per ASM as reported (CASM) (cents)

6.45



9.09



8.31



8.78


Adjusted airline operating expense per ASM (CASM) (cents)

7.74



9.09



8.66



8.78










Airline operating CASM, excluding fuel as reported (cents)

4.96



6.40



6.59



6.13


Adjusted airline operating CASM, excluding fuel (cents)

6.25



6.40



6.94



6.13







Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Reconciliation of consolidated EBITDA to EBITDA as defined by certain credit agreements (millions)








Net income (loss)

$

(29.1)



$

43.9



$

(155.3)



$

171.6


Interest expense, net

11.1



15.3



35.5



45.0


Income tax provision (benefit)

(15.6)



13.0



(166.6)



51.0


Depreciation and amortization

45.3



39.4



132.3



114.1


Loss on debt extinguishment

?



?



1.2



3.7


Consolidated EBITDA (1)

11.7



111.6



(152.9)



385.4


Adjusting items as defined per credit agreements (3)

82.2



5.5



610.3



10.1


EBITDA as defined by certain credit agreements (1)

93.9



117.1



457.4



395.5







Three Months Ended September 30,


Nine Months Ended September 30,


2020


2019


2020


2019

Reconciliation of consolidated EBITDA to adjusted EBITDA (millions)








Consolidated EBITDA (per calculation in previous table)

$

11.7



$

111.6



$

(152.9)



$

385.4










CARES Act grant recognition

(77.9)



?



(152.4)



?


Special charges

33.6



?



307.5



?


Adjusted EBITDA (1)

(32.6)



111.6



2.2



385.4



(1) Denotes non-GAAP figure.

(2) Adjusted income tax for 2020 estimates a 23.0% effective rate

(3) Adjusting items includes the following: loss on impairment, Sunseeker net income/(loss), stock compensation expense, amortization of debt issuance costs, (gain)/loss on disposal of assets, tax provision - in excess of cash paid, and other special non-recurring items.

 

SOURCE Allegiant Travel Company


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