ALLEGIANT TRAVEL COMPANY FOURTH QUARTER AND FULL YEAR 2021 FINANCIAL RESULTS

LAS VEGAS, Feb. 2, 2022 /PRNewswire/ — Allegiant Journey Firm (NASDAQ: ALGT) immediately reported the next monetary outcomes for the fourth quarter and full 12 months 2021, in addition to comparisons to prior years:

“We completed the 12 months with adjusted earnings per share⁽¹⁾ of $2.04, one of many solely home carriers to report a full-year adjusted revenue,” acknowledged Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Journey Firm. “It is a exceptional feat and couldn’t have been achieved with out the help of our workforce members. 2021 was a difficult 12 months, but we remained nimble and continued to study and adapt. Regardless of impacts from a number of variants all year long, we grew scheduled capability greater than eight p.c when in comparison with 2019. Load components sequentially improved all year long with fourth quarter a great deal of 77.1 p.c, a greater than twenty-point enhance from the primary quarter. We grew fourth quarter income by 7.8 p.c in comparison with 2019, ending the 12 months with whole working income of $1.7 billion, simply seven p.c beneath 2019. 

“As we exited 2021, the operation was challenged by impacts from the Omicron variant. We noticed unprecedented crew shortages on account of COVID, leading to cancelled flights in the course of the peak vacation journey season and persisting all through January. Case counts have began to recede, thus the worst needs to be behind us. I count on the operation to return to a extra normalized state in time for peak March journey. Given the cancellations from Covid, irregular operations bills have been $23 million in the course of the fourth quarter. As famous final quarter, it’s crucial and good enterprise apply to reimburse our clients for the inconvenience now we have brought about, along with refunding the ticket value.  

“Regardless of the Omicron variant, ahead bookings are sturdy for upcoming peak leisure journey durations. Spring break bookings have been significantly sturdy. Over the previous a number of months, the reserving curve has normalized to its pre-COVID state, and though early, we’re starting to see constructive demand developments into early summer time. As well as, third-party revenues have outperformed 2019 due primarily to energy with our cobrand bank card program. We acquired greater than 100 thousand new cardholders in 2021, a program report. This development continues in 2022, with January now this system’s finest month for brand spanking new cardholder acquisitions.

“The way forward for Allegiant is shiny. We count on to finish 2022 with 127 plane. All incoming plane could have 186 seats, rising our seats per departure. The lately introduced Boeing transaction will enhance incremental route alternatives to 1,400, which represents greater than ten years of progress. Moreover, progress on Sunseeker is on observe to open in early 2023. This challenge will diversify our ecosystem of journey choices out there to our clients.

“As soon as once more our workforce members have proven their mettle up to now 90 days.  They’ve been on the entrance strains in one of many worst durations I’ve seen with regard to the uncertainty and worry we’re all experiencing from Covid.  I wish to personally thank every one in every of them.”

Fourth Quarter 2021 Outcomes

• GAAP revenue earlier than revenue taxes of $15.1 million
• Adjusted revenue earlier than revenue taxes^{(1) (2) (3)}of $27.5 million, yielding a pre-tax margin of 5.5 p.c
• Consolidated EBITDA^{(2) (3)} of $80.0 million, yielding an EBITDA margin of 16.1 p.c
• Adjusted EBITDA^{(1) (2) (3)} of $92.4 million, yielding an adjusted EBITDA margin of 18.6 p.c
• Complete working income was $496.9 million, up 7.8 p.c in comparison with the fourth quarter of 2019
• Scheduled capability up 14.5 p.c 12 months over two-year
• Continued sequential enchancment in load issue, which got here in at 77.1 p.c
• Peak vacation journey load issue mirrored ranges noticed in 2019 for a similar time interval
• Complete common fare – third celebration merchandise of $6.90, up 47.4 p.c 12 months over two-year pushed primarily by cobrand energy
• Adjusted working CASM, excluding gasoline ⁽¹⁾ of 7.24 cents, up 7.4 p.c in comparison with the fourth quarter of 2019, pushed primarily by prices associated to elevated irregular operations
• Expanded the community by including 13 new routes with one new metropolis, Canton, Ohio, bringing whole routes served to 608 and 133 cities
• Listing of incremental, domestic-route alternatives in extra of 1,400
• Route profile much like present community construction – roughly 80 p.c of alternatives at present don’t have any direct, continuous competitors
• Introduced plans for a fully-integrated Industrial Alliance Settlement with Viva Aerobus to develop choices for nonstop leisure air journey between the USA and Mexico
• First-of-its-kind alliance between two extremely low-cost carriers
• Partnered with Boeing to buy 50 737 MAX plane, powered by CFM LEAP 1-B engines, with deliveries starting mid-2023

Full-Yr 2021 Outcomes

• GAAP revenue earlier than revenue taxes of $196.6 million
• Adjusted revenue earlier than revenue taxes^{(1) (2) (3)}of $45.7 million, yielding a pre-tax margin of two.7 p.c
• One of many solely home carriers to attain full-year profitability on an adjusted foundation
• Consolidated EBITDA of $444.1 million, yielding an EBITDA margin of 26.0 p.c
• Adjusted EBITDA of $293.2 million, yielding an adjusted EBITDA margin of 17.2 p.c
• Complete system capability elevated 8.1 p.c in comparison with 2019
• Complete working income was $1.7 billion, 7.2 p.c beneath 2019
• Complete common fare of $123.24, up 4.2 p.c from 2019
• Complete ancillary common fare of $64.73, up 14.2 p.c from 2019 pushed by air ancillary bundles, web site redesign, and elevated cobrand exercise
• Obtainable seat miles per gasoline gallon of 85.4, a 3.7 p.c enchancment from 2019
• Document-setting 12 months for the cobrand program with greater than 100 thousand new cardholders acquired
• Ended 2021 with almost 800 thousand lively Allways Rewards members

(1) Adjusted numbers exclude COVID associated particular expenses, the online profit from the payroll help packages, when relevant, and revenue sharing bonus accruals

(2) Denotes a non-GAAP monetary measure

(3) Consult with the Non-GAAP Presentation part inside this doc for additional data

Stability Sheet, Money and Liquidity

• Complete money and investments at December 31, 2021 have been $1.2 billion
• Acquired $116 million in federal tax refunds in October associated to 2020 web working losses
• Acquired $204 million in payroll help program funds throughout 2021
• $488.2 million in whole working money influx for 2021, together with payroll help program funds acquired in addition to federal tax refunds associated to web working losses
• Complete debt at December 31, 2021 was $1.7 billion
• Internet debt at December 31, 2021 was $559.8 million, a 42.5 p.c lower from year-end 2020
• Debt principal funds of $62 million in the course of the quarter
• Full 12 months Curiosity expense of $68 million, down 10.9 p.c 12 months over two-year
• Air site visitors legal responsibility at December 31, 2021 was $307 million
• Stability associated to future scheduled flights is $240 million
• Stability associated to journey vouchers issued for future use is $67 million

Airline Capital Expenditures

• Fourth quarter spend was $56 million, which included $29 million for the acquisition of two plane in addition to induction prices and $27 million in different airline capital expenditures
• Fourth quarter deferred heavy upkeep spend was $12 million
• Full 12 months 2021 capital expenditures have been $205 million, which included $136 million for the acquisition of seven plane and one engine in addition to induction prices and $69 million in different airline capital expenditures
• Full 12 months deferred heavy upkeep spend was $61 million

Sunseeker Resort

• Anticipated opening stays unchanged at first quarter 2023
• Complete challenge spend as of December 31, 2021 was $211 million with $23 million funded by debt and the remaining $188 million funded by Allegiant
• Fourth quarter capital expenditures associated to the challenge have been $38 million
• 2021 capital expenditures have been $51 million

Plane Fleet Plan by Finish of Interval

Allegiant Journey Firm will host a convention name with analysts at 4:30 p.m. ET Wednesday, February 2 to debate its fourth quarter and full 12 months 2021 monetary outcomes. A dwell broadcast of the convention name can be out there by way of the Firm’s Investor Relations web site homepage at http://ir.allegiantair.com. The webcast may even be archived within the “Occasions & Displays” part of the web site.

Allegiant Journey Firm

Las Vegas-based Allegiant (NASDAQ: ALGT) is an built-in journey firm with an airline at its coronary heart, centered on connecting clients with the individuals, locations and experiences that matter most. Since 1999, Allegiant Air has linked vacationers in small-to-medium cities to world-class trip locations with all-nonstop flights and industry-low common fares. In the present day, Allegiant’s fleet serves communities throughout the nation, with base airfares lower than half the price of the common home spherical journey ticket. For extra data, go to us at Allegiant.com. Media data, together with images, is offered at http://gofly.us/iiFa303wrtF.

Media Inquiries: [email protected]

Investor Inquiries: [email protected]

Beneath the secure harbor provisions of the Non-public Securities Litigation Reform Act of 1995, statements on this press launch that aren’t historic details are forward-looking statements. These forward-looking statements are solely estimates or predictions based mostly on our administration’s beliefs and assumptions and on data at present out there to our administration. Ahead-looking statements embrace our statements concerning future airline operations, income and bills, out there seat mile progress, anticipated capital expenditures, the timing of plane acquisitions and retirements, the variety of contracted plane to be positioned in service sooner or later, our means to consummate introduced plane transactions, variety of potential future markets that could be served, the implementation of a joint alliance with Viva Aerobus, in addition to different data regarding future outcomes of operations, enterprise methods, financing plans, {industry} atmosphere and potential progress alternatives. Ahead-looking statements embrace all statements that aren’t historic details and might be recognized by way of forward-looking terminology such because the phrases “imagine,” “count on,” “steering,” “anticipate,” “intend,” “plan,” “estimate”, “challenge”, “hope” or related expressions.

Ahead-looking statements contain dangers, uncertainties and assumptions. Precise outcomes could differ materially from these expressed within the forward-looking statements. Vital threat components that might trigger our outcomes to vary materially from these expressed within the forward-looking statements typically could also be present in our periodic reviews filed with the Securities and Alternate Fee at www.sec.gov. These threat components embrace, with out limitation, the impression and period of the COVID-19 pandemic on airline journey and the economic system, liquidity points ensuing from the impact of the COVID-19 pandemic on our enterprise, restrictions imposed on us because of accepting grants and loans below the payroll help packages, an accident involving, or issues with, our plane, public notion of our security, our reliance on our automated programs, our reliance on third events to ship plane below contract to us on a well timed foundation, threat of breach of safety of private information, volatility of gasoline prices, labor points and prices, the flexibility to acquire regulatory approvals as wanted , the impact of financial situations on leisure journey, debt covenants and balances, the flexibility to finance plane to be acquired, the flexibility to acquire mandatory U.S. and Mexican authorities approvals to implement the introduced alliance with Viva Aerobus and to in any other case put together to supply worldwide service, terrorist assaults, dangers inherent to airways, our aggressive atmosphere, our reliance on third events who present amenities or companies to us, the potential lack of key personnel, financial and different situations in markets during which we function, the flexibility to efficiently develop a resort in Southwest Florida, governmental regulation, will increase in upkeep prices and cyclical and seasonal fluctuations in our working outcomes.

Any forward-looking statements are based mostly on data out there to us immediately and we undertake no obligation to replace publicly any forward-looking statements, whether or not because of future occasions, new data or in any other case.

Detailed monetary data follows:

EPS Calculation

The next desk units forth the computation of web revenue (loss) per share, on a primary and diluted foundation, for the durations indicated (share rely and greenback quantities apart from per-share quantities in desk are in hundreds):

Appendix A
Non-GAAP Presentation
Three Months and Yr Ended December 31, 2021 and 2020
(Unaudited)

Adjusted working revenue (loss), adjusted revenue (loss) earlier than revenue taxes, adjusted web revenue (loss) and adjusted diluted earnings (loss) per share, all remove the impact of particular bills associated on to COVID 19, the online profit associated to the payroll help grants from the U.S. Treasury, when relevant, and revenue sharing bonus accruals which aren’t reflective of our ongoing working efficiency. As such, all of those are non-GAAP monetary measures.

EBITDA, as introduced on this press launch, and the assorted adjusted metrics disclosed, are supplemental measures of our efficiency that aren’t required by, or introduced in accordance with, accounting rules typically accepted in the USA (“GAAP”). They aren’t measurements of our monetary efficiency below GAAP and shouldn’t be thought-about in isolation or as a substitute for web revenue or every other efficiency measures derived in accordance with GAAP or as a substitute for money flows from working actions as a measure of our liquidity.

We outline “EBITDA” as earnings earlier than curiosity, taxes, depreciation and amortization. “Adjusted EBITDA” is EBITDA adjusted to remove the impact of particular bills associated on to COVID 19, the online profit associated to the payroll help grants from the U.S. Treasury, when relevant, and revenue sharing bonus accruals. We warning traders that quantities introduced in accordance with these definitions might not be akin to related measures disclosed by different issuers, as a result of not all issuers and analysts calculate EBITDA and Adjusted EBITDA in the identical method.

We use EBITDA and Adjusted EBITDA to guage our working efficiency and liquidity and these are among the many major measures utilized by administration for planning and forecasting of future durations. We imagine the presentation of those measures is related and helpful for traders as a result of they permit traders to view ends in a fashion much like the strategy utilized by administration and makes it simpler to check our outcomes with different corporations which have completely different financing and capital buildings. EBITDA has necessary limitations as an analytical software. These limitations embrace the next:

• EBITDA doesn’t mirror our capital expenditures, future necessities for capital expenditures or contractual commitments to buy capital gear;
• EBITDA doesn’t mirror curiosity expense or the money necessities essential to service principal or curiosity funds on our debt;
• though depreciation and amortization are non-cash expenses, the property that we at present depreciate and amortize will probably have to get replaced sooner or later, and EBITDA doesn’t mirror the money required to fund such replacements;
• different corporations in our {industry} could calculate EBITDA in another way than we do, limiting its usefulness as a comparative measure; and
• the changes we make to EBITDA to find out our Adjusted EBITDA might not be the identical changes utilized by different airways.

Offered beneath is a quantitative reconciliation of EBITDA to probably the most immediately comparable GAAP monetary efficiency measure, which we imagine is web revenue (loss). We imagine the presentation of EBITDA and the assorted adjusted measures are related and helpful for traders as a result of they permit them to raised examine our outcomes to different airways.

Along with EBITDA and Adjusted EBITDA as outlined above, now we have included a separate EBITDA as outlined by sure credit score agreements. This measurement of EBITDA adjusts for losses on impairment, Sunseeker web loss, inventory compensation expense, amortization of debt issuance prices, (achieve)/loss on disposal of property, tax provision – in extra of money paid, particular non-recurring gadgets, and different gadgets.

The SEC has adopted guidelines (Regulation G) regulating using non-GAAP monetary measures. Due to our use of non-GAAP monetary measures on this press launch to complement our consolidated monetary statements introduced on a GAAP foundation, Regulation G requires us to incorporate on this press launch a presentation of probably the most immediately comparable GAAP measure, which is working income, working revenue (loss), web revenue (loss), working bills, and diluted earnings (loss) per share and a reconciliation of the non-GAAP measures to probably the most comparable GAAP measure. Our utilization of non-GAAP measurements shouldn’t be meant to be thought-about in isolation or as an alternative to working revenue (loss), web revenue (loss) or different measures of monetary efficiency ready in accordance with GAAP. Our use of those non-GAAP measures might not be akin to equally titled measures employed by different corporations within the airline and journey {industry}. The reconciliation of every of those measures to probably the most comparable GAAP measure for the durations is indicated beneath.

SOURCE Allegiant Journey Firm