Advertisement
U.S. Markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0797
    +0.0003 (+0.0324%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • Vix

    13.01
    0.00 (0.00%)
     
  • GBP/USD

    1.2625
    +0.0002 (+0.0189%)
     
  • USD/JPY

    151.3030
    -0.0690 (-0.0456%)
     
  • BTC-USD

    70,081.23
    -811.00 (-1.14%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

ALLEGIANT TRAVEL COMPANY FOURTH QUARTER AND FULL YEAR 2013 FINANCIAL RESULTS



  
ALLEGIANT TRAVEL COMPANY FOURTH QUARTER AND FULL YEAR 2013
FINANCIAL RESULTS
44th Consecutive Profitable Quarter
Fourth Quarter Fully Diluted Earnings per Share of $0.94
Full Year Fully Diluted Earnings per Share of $4.82  

LAS VEGAS. Jan. 29, 2014 - Allegiant Travel Company ( NASDAQ: ALGT ) today reported the following financial results for both the fourth quarter and full year 2013, as well as comparisons to prior year equivalents:

Unaudited

Three months
ended December 31,

Twelve months ended December 31,

2013

2012

Change

2013

2012

Change

Total operating revenue (millions)

$238.5

$222.8

7.0

%

$996.2

$908.7

9.6

%

Operating income (millions)

$30.3

$25.4

19.3

%

$154.7

$132.3

17.0

%

Operating margin

12.7

%

11.4

%

1.3pp

15.5

%

14.6

%

0.9pp

EBITDA (millions)

$47.9

$42.2

13.5

%

$224.9

$190.1

18.3

%

EBITDA margin

20.1

%

18.9

%

1.2pp

22.6

%

20.9

%

1.7pp

EBITDAR (millions)

$53.4

$42.2

26.5

%

$234.1

$190.1

23.2

%

EBITDAR margin

22.4

%

18.9

%

3.5pp

23.5

%

20.9

%

2.6pp

Net income (millions)

$17.5

$14.8

18.2

%

$92.3

$78.6

17.4

%

Diluted earnings per share

$0.94

$0.76

23.7

%

$4.82

$4.06

18.7

%

Return on capital employed

16.4

%

15.6

%

0.8pp

"We are very proud to report our 44th consecutive profitable quarter," stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. "This is the second consecutive year that we have grown both full year EBITDA and operating margin.  As we continue to add more efficient Airbus aircraft to our operating fleet, we have the opportunity to continue margin improvement going forward.  Thank you for the tireless efforts of our Team Members whose contributions were critical to our successful 2013."

Notable fourth quarter and full year 2013 company highlights

  • Added the Airbus A320 and A319 onto the Allegiant operating certificate

  • Ended 2013 with three A319 and five A320 aircraft in service.  Added two more A320 aircraft in January 2014

  • Retired five MD-80 aircraft

  • Completed the conversion of 51 MD-80 aircraft to 166 seats.  Will add two more MD-80 aircraft configured with 166 seats to the fleet in March 2014.  We expect our MD-80 fleet to remain at 53 aircraft for the foreseeable future

  • Returned $83 million to shareholders through the repurchase of 913,806 shares in 2013

  • Paid a special dividend of $2.25 per share in early January 2014

  • Added 44 new routes in 2013.  Announced five new routes and two new cities starting service first quarter 2014

  • Delivered Allegiant2Go Mobile Boarding Pass functionality in the fourth quarter

  • Broadened third-party purchase options via one-way package and hotel-only booking path

  • Executed a new agreement with a large Las Vegas gaming company for the pre-purchase of rooms at discounted rates

  • Entered into a new three year agreement with Enterprise Holdings Inc. for the sale of rental cars

  • Included on the 100 America`s Best Small Companies list by Forbes magazine

Fourth quarter and full year 2013 revenue performance

  • Full year ancillary air-related charges per passenger has increased every year for eight consecutive years

  • 16th consecutive quarter of year over year increases in total fare, four percent higher than a year ago

  • Fourth quarter Florida TRASM grew by two percent despite a 35 percent growth in ASMs

  • Same store routes, those operated in both the fourth quarter 2013 and 2012, generated a three percent increase in TRASM


4Q13

4Q12

Change

FY13

FY12

Change

Scheduled Service:

Average fare - scheduled service

$94.24

$88.59

6.4

%

$91.69

$88.90

3.1

%

Average fare - ancillary air-related charges

$40.63

$39.89

1.9

%

$40.52

$35.72

13.4

%

Average fare - ancillary third party products

$4.36

$5.19

(16.0

)%

$5.21

$5.48

(4.9

)%

Average fare - total

$139.22

$133.67

4.2

%

$137.43

$130.10

5.6

%

Scheduled service passenger revenue per ASM (PRASM) (cents)

8.32

7.99

4.1

%

8.25

8.43

(2.1

)%

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

12.29

12.06

1.9

%

12.37

12.33

0.3

%

Load factor

85.2

%

86.5

%

-1.3pp

88.9

%

89.4

%

-0.5pp

Passengers (millions)

1.7

1.6

6.1

%

7.1

6.6

7.8

%

Average passengers per departure

141

141

-

%

147

140

5.0

%

Average scheduled service stage length (miles)

940

930

1.1

%

952

918

3.7

%

ASMs = available seat miles
PRASM = scheduled passenger revenue per scheduled available seat mile
TRASM = (scheduled passenger revenue + ancillary air revenue + ancillary third party revenue) per scheduled available seat mile

Fourth quarter and full year 2013 cost performance

  • Full year 2013 fuel expense per ASM declined six percent primarily due to a two percent decrease in gallons per passenger.  This fuel savings more than offset the one percent increase in average fuel cost per gallon.  Full year system ASMs per gallon increased seven percent versus 2012

  • Full year 2013 CASM ex fuel rose five percent versus last year in part because aircraft utilization declined four percent.  CASM ex fuel was also negatively impacted by expenses due to an operational disruption in September, and the FAA shutdown and the subsequent delay in placing A320s into service in December.  The A320 delay drove higher expense in aircraft lease rentals as we contracted with other carriers for sub-service to fly scheduled flights, reduced crew productivity and increased expenses to temporarily assign flight crews to bases to support unplanned MD-80 flying in place of planned A320 flying

  • Fourth quarter salary and benefits expense increased 17 percent due to a 13 percent increase in full time equivalent employees to support fleet growth and more inflight staff to crew larger gauge MD-80 aircraft, increased bonus accrual which is tied to higher levels of profitability and higher stock compensation expense

  • Fourth quarter sales and marketing expense increased 46 percent due to advertising to support the launch of new routes

  • Fourth quarter aircraft lease rental expense was $5.5 million due to having two leased aircraft (none a year ago) and $4.2 million of sub-service expense due to the delays in planned A320 flying

  • Fourth quarter other expense increased 16 percent due to increases in flight crew training, contractor IT development resources, and losses on consignment and disposal of assets

  • Certain fourth quarter non-cash expenses totaled $5.4 million for the quarter and $19.3 million for the year.  Please see the non-cash expense table in the Non-GAAP presentation for further detail



4Q13

4Q12

Change

FY13

FY12

Change

Total System*:

Operating expense per passenger

$121.80

$118.49

2.8%

$116.20

$111.12

4.6%

Operating expense per passenger, excluding fuel

$68.68

$63.50

8.2%

$62.95

$56.99

10.5%

Operating expense per ASM (CASM) (cents)

10.61

10.50

1.0%

10.33

10.37

(0.4)%

Operating expense, excluding fuel per ASM (CASM ex fuel) (cents)

5.98

5.63

6.2%

5.60

5.32

5.3%

Average block hours per aircraft per day

5.3

5.3

-%

5.5

5.7

(3.5)%

Average system stage length (miles)

922

882

4.5%

933

872

7.0%

* - Total system includes scheduled service, fixed-fee contract and non-revenue flying.

Full year and first quarter 2014 cost trends

  • Full year CASM ex fuel is expected to increase between four and seven percent due to a more normalized maintenance and repair expense of between $100 thousand and $110 thousand per aircraft per month, start-up expenses in non-airline subsidiaries (which do not generate airline capacity or ASMs) and continued investment in operations and IT management

  • First quarter 2014 CASM ex fuel is expected to increase between 13 and 15 percent due to expenses associated with the delay in training A320 crews resulting from the FAA shutdown and its continued effects and the subsequent delay in placing the A320 on the certificate, lower than planned capacity growth due to the same issue, higher maintenance expense due to substantially more heavy maintenance events scheduled in the quarter, and start-up expenses in two new non airline initiatives which do not generate airline capacity or ASMs.  The effects of the A320 delays and non-airline activities are expected to account for 53 percent of the increase in CASM ex fuel for the quarter

Third party products performance

  • Full year transportation net revenue (revenue derived from car rentals) increased 11 percent

  • Las Vegas represented 82 percent of hotel net revenue in 2013, down from 87 percent in 2012 and 90 percent in 2011

  • Full year hotel net revenue excluding the effect of an air discount increased 25 percent versus last year.  In the fourth quarter of 2012, the company phased out offering an air discount tied to hotel sales in order to increase overall company profitability

Supplemental Ancillary Revenue Information
Unaudited (millions)

4Q13

4Q12

Change

FY13

FY12

Change

Gross ancillary revenue - third party products

$23.8

$24.9

(4.4

)%

$120.7

$119.0

1.4

%

Cost of goods sold

($16.2

)

($16.2

)

-

%

($81.9

)

($79.0

)

3.7

%

Transaction costs*

($0.2

)

($0.6

)

(66.7

)%

($1.8

)

($3.9

)

(53.8

)%

Ancillary revenue - third party products

$7.3

$8.2

(11.0

)%

$37.0

$36.1

2.5

%

As percent of gross

30.7

%

32.8

%

(2.1)pp

30.7

%

30.3

%

0.4pp

As percent of income before taxes

26.3

%

34.9

%

(8.6)pp

25.2

%

29.0

%

(3.8)pp

Ancillary revenue - third party products/scheduled passenger

$4.36

$5.19

(16.0

)%

$5.21

$5.48

(4.9

)%

Hotel room nights (thousands)

124.7

137.5

(9.3

)%

595.7

690.1

(13.7

)%

Rental car days (thousands)

160.7

169.1

(5.0

)%

844.9

763.4

10.7

%

* - Includes payment expenses and travel agency commissions.

Balance sheet highlights

  • Returned $42 million to shareholders through a special dividend of $2.25 per share

  • Repurchased 913,806 shares of common stock for $83 million in 2013.  The company has $40 million in repurchase authority remaining

  • Cumulative return of capital in the form of re-purchases of shares and special dividends totals $277 million as of January 2014

  • $178 million in capital expenditures during 2013,  83 percent for the purchase of eight Airbus series aircraft and a new headquarters building

  • Issued $106 million in debt in 2013,  $96 million secured by eight A320 series aircraft and $10 million by the new headquarters building

  • Paid down $23 million in debt including $10.5 million previously secured by four 757 aircraft.  $9 million in debt remains secured by the remaining two 757 aircraft in our fleet as well as a term loan due in 2017 of $122 million secured by MD-80 aircraft and parts

  • 2014 CAPEX is expected to be between $60 and $80 million primarily driven by two A320 purchases occurring at the end of 2014 and IT projects

Unaudited (millions)

12/31/2013

12/31/2012

Change

Unrestricted cash*

$387.1

$352.7

9.8

%

Total debt

$234.3

$150.9

55.3

%

Total Allegiant Travel Company stockholders` equity

$375.7

$400.5

(6.2

)%


For the Year
ended December 31,

Unaudited (millions)

2013

2012

Change

Capital expenditures

$177.6

$105.1

69.0%

* - Unrestricted cash includes investments in marketable securities.

At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.

Guidance, subject to revision

Revenue guidance

January 2014

1Q14

Estimated PRASM year-over-year change

6.5 to 8.5%

(2) to 0%

Estimated TRASM year-over-year change

2 to 4%

(4) to (2)%

Fixed fee and other revenue guidance

1Q14

Fixed fee and other revenue (millions)

$1 to $3

Capacity guidance

System

1Q14

2Q14

FY14

Departure year-over-year growth

8 to 12%

10 to 14%

ASM year-over-year growth

10 to 14%

8 to 12%

9 to 13%

Scheduled

Departure year-over-year growth

8 to 12%

10 to 14%

ASM year-over-year growth

10 to 14%

8 to 12%

9 to 13%

Cost guidance

1Q14

FY14

CASM ex fuel - year-over-year change

13 to 15%

4 to 7%

CASM - year-over-year change

4 to 6%

1 to 4%

Assumed fuel cost per gallon

$3.32

$3.22

CAPEX guidance

FY14

Capital expenditures (millions)

$60 to $80

CASM ex fuel - cost per available seat mile excluding fuel expense
CASM - total operating expenses / system ASMs
Fuel assumptions are modeled as of January 20, 2014

Aircraft fleet plan by end of period

Aircraft

YE13

1Q14

YE14

YE15

MD-80 (150)

1

-

-

-

MD-80 (166*)

51

53

53

53

757

6

6

6

6

A319

3

3

4

10

A320

5

7

7

9

Total

66

69

70

78

Aircraft listed in table above include only in service aircraft
* - MD-80s converted to 166 seats from 150 seats

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, January 29, 2014 to discuss its fourth quarter and full year 2013 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, Travel is our deal.®
Las Vegas-based Allegiant Travel Company® (ALGT) is focused on linking travelers in small cities to world-class leisure destinations. Through its subsidiary, Allegiant Air, the company operates a low-cost, high-efficiency, all-jet passenger airline, and offers other travel-related products such as hotel rooms, rental cars, and attraction tickets through its website, allegiant.com. The company has been named one of America`s 100 Best Small Companies by Forbes Magazine for four consecutive years. ALGT/G

Media Inquiries: Brian Davis
mediarelations@allegiantair.com

Investor Inquiries: Chris Allen
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 unit revenue, future operating expense, ASM growth, departure growth, fixed-fee and other revenues, 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 filed with the Securities and Exchange Commission at www.sec.gov . These risk factors include, without limitation, volatility of fuel costs, labor issues, the effect of the economic downturn on leisure travel, debt covenants, terrorist attacks, risks inherent to airlines, our introduction of an additional aircraft type, demand for air services to our leisure destinations from the markets served by us, our dependence on our leisure destination markets, our competitive environment, problems with our aircraft, our reliance on our automated systems, economic and other conditions in markets in which we operate, aging aircraft and other 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
Three months ended December 31, 2013 and 2012
(in thousands, except per share amounts)
(Unaudited)

Three months
ended December 31,

Percent

2013

2012

change

OPERATING REVENUE:

Scheduled service revenue

$157,619

$139,668

12.9

Ancillary revenue:

Air-related charges

67,952

62,899

8.0

Third party products

7,297

8,184

(10.8

)

Total ancillary revenue

75,249

71,083

5.9

Fixed fee contract revenue

5,194

11,375

(54.3

)

Other revenue

409

712

(42.6

)

Total operating revenue

238,471

222,838

7.0

OPERATING EXPENSES:

Aircraft fuel

90,797

91,638

(0.9

)

Salary and benefits

39,676

33,933

16.9

Station operations

19,561

20,655

(5.3

)

Maintenance and repairs

16,045

19,029

(15.7

)

Sales and marketing

5,951

4,081

45.8

Aircraft lease rentals

5,534

-

NM

Depreciation and amortization

17,374

16,667

4.2

Other

13,251

11,458

15.6

Total operating expenses

208,189

197,461

5.4

OPERATING INCOME

30,282

25,377

19.3

As a percent of total operating revenue

12.7

%

11.4

%

OTHER (INCOME) EXPENSE:

Earnings from unconsolidated affiliates, net

(9

)

(43

)

(79.1

)

Interest income

(238

)

(242

)

(1.7

)

Interest expense

2,754

2,210

24.6

Total other (income) expense

2,507

1,925

30.2

INCOME BEFORE INCOME TAXES

27,775

23,452

18.4

As a percent of total operating revenue

11.6

%

10.5

%

PROVISION FOR INCOME TAXES

10,510

8,810

19.3

NET INCOME

17,265

14,642

17.9

Net loss attributable to noncontrolling interest

(211

)

(124

)

70.2

NET INCOME ATTRIBUTABLE TO ALLEGIANT TRAVEL COMPANY

17,476

14,766

18.4

Earnings per share to common stockholders (1):

Basic

$0.96

$0.78

23.1

Diluted

$0.94

$0.76

23.7

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

Basic

18,424

19,154

(3.8

)

Diluted

18,596

19,371

(4.0

)

(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 for the periods presented reflect the two-class method mandated by accounting guidance for the calculation of 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
Three months ended December 31, 2013 and 2012
(Unaudited)

Three months
ended December 31,

Percent

2013

2012

change*

OPERATING STATISTICS

Total system statistics

Passengers

1,709,289

1,666,501

2.6

Revenue passenger miles (RPMs) (thousands)

1,646,717

1,578,841

4.3

Available seat miles (ASMs) (thousands)

1,961,632

1,879,791

4.4

Load factor

83.9

%

84.0

%

(0.1

)

Operating revenue per ASM (RASM) (cents)

12.16

11.85

2.6

Operating expense per ASM (CASM) (cents)

10.61

10.50

1.0

Fuel expense per ASM (cents)

4.63

4.87

(4.9

)

Operating CASM, excluding fuel (cents)

5.98

5.63

6.2

Operating expense per passenger

$121.80

$118.49

2.8

Fuel expense per passenger

$53.12

$54.99

(3.4

)

Operating expense per passenger, excluding fuel

$68.68

$63.50

8.2

ASMs per gallon of fuel

68.4

65.6

4.3

Departures

12,477

12,802

(2.5

)

Block hours

30,253

30,223

0.1

Average stage length (miles)

922

882

4.5

Average number of operating aircraft during period

61.9

62.1

(0.3

)

Average block hours per aircraft per day

5.3

5.3

-

Full-time equivalent employees at period end

2,065

1,821

13.4

Fuel gallons consumed (thousands)

28,680

28,668

-

Average fuel cost per gallon

$3.17

$3.20

(0.9

)

Scheduled service statistics

Passengers

1,672,604

1,576,641

6.1

Revenue passenger miles (RPMs) (thousands)

1,615,074

1,512,063

6.8

Available seat miles (ASMs) (thousands)

1,894,958

1,747,920

8.4

Load factor

85.2

%

86.5

%

(1.3

)

Departures

11,821

11,192

5.6

Average passengers per departure

141

141

-

Scheduled service seats per departure

168.3

165.4

1.8

Block hours

29,045

27,527

5.5

Yield (cents)

9.76

9.24

5.6

Scheduled service revenue per ASM (PRASM) (cents)

8.32

7.99

4.1

Total ancillary revenue per ASM (cents)

3.97

4.07

(2.5

)

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

12.29

12.06

1.9

Average fare - scheduled service

$94.24

$88.59

6.4

Average fare - ancillary air-related charges

$40.63

$39.89

1.9

Average fare - ancillary third party products

$4.36

$5.19

(16.0

)

Average fare - total

$139.22

$133.67

4.2

Average stage length (miles)

940

930

1.1

Fuel gallons consumed (thousands)

27,653

26,368

4.9

Average fuel cost per gallon

$3.21

$3.37

(4.7

)

Percent of sales through website during period

94.2

%

91.7

%

2.5

* Except load factor and percent of sales through website, which is percentage point change.

Allegiant Travel Company
Consolidated Statements of Income
Twelve months ended December 31, 2013 and 2012
(in thousands, except per share amounts)
(Unaudited)

Twelve months
ended December 31,

Percent

2013

2012

change

OPERATING REVENUE:

Scheduled service revenue

$651,318

$586,036

11.1

Ancillary revenue:

Air-related charges

287,857

235,436

22.3

Third party products

37,030

36,124

2.5

Total ancillary revenue

324,887

271,560

19.6

Fixed fee contract revenue

17,462

42,905

(59.3

)

Other revenue

2,483

8,218

(69.8

)

Total operating revenue

996,150

908,719

9.6

OPERATING EXPENSES:

Aircraft fuel

385,558

378,195

1.9

Salary and benefits

158,627

133,295

19.0

Station operations

78,231

78,357

(0.2

)

Maintenance and repairs

72,818

73,897

(1.5

)

Sales and marketing

21,678

19,222

12.8

Aircraft lease rentals

9,227

-

NM

Depreciation and amortization

69,264

57,503

20.5

Other

46,010

35,946

28.0

Total operating expenses

841,413

776,415

8.4

OPERATING INCOME

154,737

132,304

17.0

As a percent of total operating revenue

15.5

%

14.6

%

OTHER (INCOME) EXPENSE:

Earnings from unconsolidated affiliates, net

(393

)

(99

)

297.0

Interest income

(1,043

)

(983

)

6.1

Interest expense

9,493

8,739

8.6

Total other (income) expense

8,057

7,657

5.2

INCOME BEFORE INCOME TAXES

146,680

124,647

17.7

As a percent of total operating revenue

14.7

%

13.7

%

PROVISION FOR INCOME TAXES

54,900

46,233

18.7

NET INCOME

91,780

78,414

17.0

Net loss attributable to noncontrolling interest

(493

)

(183

)

169.4

NET INCOME ATTRIBUTABLE TO ALLEGIANT TRAVEL COMPANY

92,273

78,597

17.4

Earnings per share to common stockholders (1):

Basic

$4.85

$4.10

18.3

Diluted

$4.82

$4.06

18.7

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

Basic

18,936

19,079

(0.7

)

Diluted

19,050

19,276

(1.2

)

(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 for the periods presented reflect the two-class method mandated by accounting guidance for the calculation of 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
Twelve months ended December 31, 2013 and 2012
(Unaudited)

Twelve months
ended December 31,

Percent

2013

2012

change*

OPERATING STATISTICS

Total system statistics

Passengers

7,241,063

6,987,324

3.6

Revenue passenger miles (RPMs) (thousands)

7,129,416

6,514,056

9.4

Available seat miles (ASMs) (thousands)

8,146,135

7,487,276

8.8

Load factor

87.5

%

87.0

%

0.5

Operating revenue per ASM (RASM) (cents)

12.23

12.14

0.7

Operating expense per ASM (CASM) (cents)

10.33

10.37

(0.4

)

Fuel expense per ASM (cents)

4.73

5.05

(6.3

)

Operating CASM, excluding fuel (cents)

5.60

5.32

5.3

Operating expense per passenger

$116.20

$111.12

4.6

Fuel expense per passenger

$53.25

$54.13

(1.6

)

Operating expense per passenger, excluding fuel

$62.95

$56.99

10.5

ASMs per gallon of fuel

67.6

63.0

7.3

Departures

51,083

53,615

(4.7

)

Block hours

125,449

124,610

0.7

Average stage length (miles)

933

872

7.0

Average number of operating aircraft during period

62.9

60.2

4.5

Average block hours per aircraft per day

5.5

5.7

(3.5

)

Full-time equivalent employees at period end

2,065

1,821

13.4

Fuel gallons consumed (thousands)

120,476

118,839

1.4

Average fuel cost per gallon

$3.20

$3.18

0.6

Scheduled service statistics

Passengers

7,103,375

6,591,707

7.8

Revenue passenger miles (RPMs) (thousands)

7,015,108

6,220,320

12.8

Available seat miles (ASMs) (thousands)

7,892,896

6,954,408

13.5

Load factor

88.9

%

89.4

%

(0.5

)

Departures

48,389

46,995

3.0

Average passengers per departure

147

140

5.0

Scheduled service seats per departure

168.4

159.7

5.4

Block hours

120,620

113,671

6.1

Yield (cents)

9.28

9.42

(1.5

)

Scheduled service revenue per ASM (PRASM) (cents)

8.25

8.43

(2.1

)

Total ancillary revenue per ASM (cents)

4.12

3.90

5.6

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

12.37

12.33

0.3

Average fare - scheduled service

$91.69

$88.90

3.1

Average fare - ancillary air-related charges

$40.52

$35.72

13.4

Average fare - ancillary third party products

$5.21

$5.48

(4.9

)

Average fare - total

$137.43

$130.10

5.6

Average stage length (miles)

952

918

3.7

Fuel gallons consumed (thousands)

116,370

109,257

6.5

Average fuel cost per gallon

$3.25

$3.37

(3.6

)

Percent of sales through website during period

92.0

%

90.1

%

1.9

* Except load factor and percent of sales through website, which is percentage point change.

Allegiant Travel Company
Non-GAAP Presentations
Three and Twelve Months Ended December 31, 2013 and 2012
(Unaudited)

"EBITDA" represents earnings before interest expense, income taxes, depreciation and amortization. EBITDAR is EBITDA less aircraft rentals. Neither EBITDA nor EBITDAR is a calculation based on generally accepted accounting principles and should not be considered as an alternative to net income or operating income as indicators of our financial performance or to cash flow as a measure of liquidity. EBITDA and EBITDAR are included as supplemental disclosures because we believe they are useful indicators of our operating performance. Further, both EBITDA and EBITDAR are well-recognized performance measurements that are frequently used by securities analysts, investors and other interested parties in comparing the operating performance of companies. We believe EBITDA and EBITDAR are useful in evaluating our operating performance compared to our competitors because their calculation generally eliminates the effects of financing and income taxes and the accounting effects of capital spending and acquisitions and lease versus purchase decisions, which items may vary between periods and for different companies for reasons unrelated to overall operating performance. The following represents the reconciliation of EBITDA and EBITDAR to net income for the periods indicated below.

The SEC has adopted rules (Regulation G) regulating the use of non-GAAP financial measures. Because of our use of the non-GAAP financial measures EBITDA and EBITDAR 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 net income, 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 EBITDA nor EBITDAR is a GAAP measurement 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 to GAAP net income follow.

Three months
ended December 31,

Percent

(in thousands)

2013

2012

change

Net income attributable to Allegiant Travel Company

17,476

14,766

18.4

%

Plus (minus)

Interest income

(238

)

(242

)

(1.7

)%

Interest expense

2,754

2,210

24.6

%

Provision for income taxes

10,510

8,810

19.3

%

Depreciation and amortization

17,374

16,667

4.2

%

EBITDA

$47,876

$42,211

13.4

%

Aircraft lease rentals

5,534

-

NM

EBITDAR

$53,410

$42,211

26.5

%

Total revenue

$238,471

$222,838

7.0

%

EBITDA margin

20.1

%

18.9

%

1.2 pp

EBITDAR margin

22.4

%

18.9

%

3.5 pp


Twelve months
ended December 31,

Percent

(in thousands)

2013

2012

change

Net income attributable to Allegiant Travel Company

92,273

78,597

17.4

%

Plus (minus)

Interest income

(1,043

)

(983

)

6.1

%

Interest expense

9,493

8,739

8.6

%

Provision for income taxes

54,900

46,233

18.7

%

Depreciation and amortization

69,264

57,503

20.5

%

EBITDA

$224,887

$190,089

18.3

%

Aircraft lease rentals

9,227

-

NM

EBITDAR

$234,114

$190,089

23.2

%

Total revenue

$996,150

$908,719

9.6

%

EBITDA margin

22.6

%

20.9

%

1.7 pp

EBITDAR margin

23.5

%

20.9

%

2.6 pp


Twelve months
ended December 31,

Return on capital calculation (millions)

2013

2012

Net income

92.3

78.6

Income tax

54.9

46.2

Interest expense

9.5

8.7

Less interest income

(1.0

)

(1.0

)

155.7

132.5

Interest income

1.0

1.0

Tax rate

37.4

%

37.1

%

Numerator

98.1

84.0

Total assets prior year end

798.2

706.7

Less current liabilities prior year end

210.5

177.5

Short term debt prior year end

11.6

7.9

Denominator

599.3

537.1

Return on capital employed

16.4

%

15.6

%

To provide more transparency into operating expenses for the quarter and the full year, the company experienced the following non-cash expense items in 2013.

Non-cash items (millions)

4Q13

2013

Stock based compensation

$1.9

$9.8

Loss - disposed assets

$3.0

$8.0

Lease maintenance accrual

$0.5

$1.5

Total non-cash items

$5.4

$19.3

###




This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Allegiant Travel Company via GlobeNewswire

HUG#1757918

Advertisement