Form 8-K Allegiant Travel CO For: Jul 25
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
_____________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 25, 2018
Allegiant Travel Company
(Exact name of registrant as specified in its charter)
Nevada | 001-33166 | 20-4745737 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
1201 N. Town Center Drive, Las Vegas, NV | 89144 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code: (702) 851-7300
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as in Rule 405 of the Securities Act of 193 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Section 2 Financial Information
Item 2.02 Results of Operations and Financial Condition.
On July 25, 2018, Allegiant Travel Company (the "Company") issued the press release attached as Exhibit 99.1 to this Form 8-K concerning our results of operations for the quarter and six months ended June 30, 2018.
This information is being furnished under Item 2.02 of Form 8-K. This report and Exhibit 99.1 are deemed to be furnished and are not considered "filed" with the Securities and Exchange Commission. As such, this information shall not be incorporated by reference into any of our reports or other filings made with the Securities and Exchange Commission.
Forward-Looking Statements: Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in the 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 expense, 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, 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 and registration statements 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, 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 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.
Section 9 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(a)Not applicable.
(b)Not applicable.
(c)Not applicable.
(d)Exhibits
Exhibit No. | Description of Document |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Allegiant Travel Company has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 25, 2018 | ALLEGIANT TRAVEL COMPANY | ||
By: | /s/ Scott Sheldon | ||
Name: | Scott Sheldon | ||
Title: | Chief Financial Officer | ||
3
EXHIBIT INDEX
Exhibit No. | Description of Document |
4
Allegiant Q2 2018 Earnings
Page 1
Exhibit 99.1
ALLEGIANT TRAVEL COMPANY SECOND QUARTER 2018
FINANCIAL RESULTS
Second quarter 2018 Fully Diluted Earnings per Share of $3.10
LAS VEGAS. July 25, 2018 —Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the second quarter 2018, as well as comparisons to the prior year:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Unaudited | 2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||
Total operating revenue (millions) | $ | 436.8 | $ | 401.8 | 8.7 | % | $ | 862.2 | $ | 781.9 | 10.3 | % | |||||
Operating income (millions) | 74.2 | 85.8 | (13.5 | ) | 154.2 | 159.5 | (3.3 | ) | |||||||||
Net income (millions) | 50.0 | 49.0 | 2.0 | 105.2 | 91.4 | 15.1 | |||||||||||
Diluted earnings per share | $ | 3.10 | $ | 2.97 | 4.4 | $ | 6.52 | $ | 5.51 | 18.3 | |||||||
"We are proud to announce our 62nd consecutive profitable quarter," stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. "This is the second consecutive quarter of EPS growth, despite seeing our fuel cost per gallon increase by over 39 percent in the second quarter. This is a wonderful testament to the hard work of our team members as we navigate another busy summer.
"We are continuing our transition to an all-Airbus fleet. We have done an excellent job year-to-date but this summer was the critical period in this transition, including the timely delivery and induction of fifteen Airbus aircraft, and retirement of six MD-80s. Today we are on our schedule as planned, though some delayed deliveries in late May impacted our peak June period, in terms of top line and operations reliability. Looking forward, we should complete our transition at the end of November as scheduled.
"Our CASM-ex fuel results came in nicely. Our improved operational results as well as efficiencies from the Airbus fleet are beginning to pay dividends, and we are pleased with where the cost trend line is headed. Additionally, fuel efficiency continues to improve with the transition, with 76 vs. 72 ASMs per gallon this year compared to the same period last year.
“The Sunseeker resort project continues to move ahead. We are closing in on a financing plan and hope to announce the specifics in the next 60 to 90 days. We continue to be impressed with the many synergies and business alignments between Sunseeker and our air service presence on the west coast of Florida. Our Punta Gorda destination - a 15 minute drive from our Sunseeker location, grew over 30 percent in capacity on a trailing twelve month basis. We are on a pace to carry over 1.5 million passengers in and out of Punta Gorda this year."
Allegiant Q2 2018 Earnings
Page 2
Shareholder returns
• | 2018 shareholder returns - over $22 million in the first half of the year through dividends |
◦ | Will pay dividends of $0.70 per share on August 31, 2018 to shareholders of record as of August 17, 2018 |
◦ | Current share repurchase authority of $100 million as of July 25, 2018 |
2018 outlook
• | Third quarter scheduled and system ASMs are expected to grow between thirteen and fifteen percent vs last year |
• | 2018 full year ASM growth is expected to be between nine and eleven percent due to slower than expected aircraft deliveries |
• | 2018 fuel cost is expected to be $2.35 per gallon using the forward curve as of July 24, 2018 |
• | 2018 EPS is expected to be between $9 and $10 per share due to the expected higher fuel cost |
◦ | Fuel expense is expected to increase approximately $35 million from when guided in November 2017 |
Guidance, subject to revision | |||
Full year 2018 guidance | Previous* | Current | |
Fuel cost per gallon | $2.20 | $2.35 | |
Available seat miles (ASMs) / gallon | 77.5 to 79.5 | 77.5 to 78.5 | |
Interest expense (millions) | $50 to $60 | $50 to $60 | |
Tax rate | 21 to 22% | 21 to 22% | |
Share count (millions) | 15.9 | 15.9 | |
Earnings per share | $10 to $12 | $9 to $10 | |
System ASMs - year over year change | 11 to 15% | 9 to 11% | |
Scheduled service ASMs - year over year change | 11 to 15% | 9 to 11% | |
Depreciation expense / aircraft / month (thousands) | $120 to $130 | $115 to $120 | |
Maintenance expense / aircraft / month (thousands) | $95 to $105 | $80 to $85 | |
Full year 2018 CAPEX guidance | |||
Capital expenditures (millions) ** | $300 | $300 | |
Capitalized Airbus deferred heavy maintenance (millions) *** | $45 | $45 | |
* - Previous guidance as of April 25, 2018
** - Excludes Sunseeker Resorts
*** - Not included in capital expenditure total
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 | 35 | 44 | 45 | |||||
Total | 88 | 93 | 94 | 77 | |||||
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, July 25, 2018 to discuss its second 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 Q2 2018 Earnings
Page 3
Allegiant.®
Las Vegas-based Allegiant (NASDAQ: ALGT) is focused on linking travelers in small and mid-sized 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: [email protected]
Investor Inquiries: [email protected]
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, 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 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 June 30, | Percent | |||||||||
2018 | 2017 | change | ||||||||
OPERATING REVENUE: | ||||||||||
Passenger revenue (1) | $ | 405,572 | $ | 367,250 | 10.4 | |||||
Third party products | 17,799 | 14,304 | 24.4 | |||||||
Fixed fee contract revenue | 7,653 | 11,029 | (30.6 | ) | ||||||
Other revenue | 5,756 | 9,261 | (37.8 | ) | ||||||
Total operating revenue | 436,780 | 401,844 | 8.7 | |||||||
OPERATING EXPENSES: | ||||||||||
Aircraft fuel | 122,454 | 85,387 | 43.4 | |||||||
Salary and benefits | 101,645 | 92,221 | 10.2 | |||||||
Station operations | 41,553 | 38,998 | 6.6 | |||||||
Maintenance and repairs | 24,611 | 28,645 | (14.1 | ) | ||||||
Depreciation and amortization | 29,833 | 30,129 | (1.0 | ) | ||||||
Sales and marketing | 18,348 | 13,492 | 36.0 | |||||||
Aircraft lease rentals | 75 | 2,400 | (96.9 | ) | ||||||
Other | 24,039 | 24,777 | (3.0 | ) | ||||||
Total operating expense | 362,558 | 316,049 | 14.7 | |||||||
OPERATING INCOME | 74,222 | 85,795 | (13.5 | ) | ||||||
OTHER (INCOME) EXPENSE: | ||||||||||
Interest expense | 13,156 | 8,889 | 48.0 | |||||||
Interest income | (1,927 | ) | (1,475 | ) | 30.6 | |||||
Other, net | (50 | ) | (493 | ) | (89.9 | ) | ||||
Total other expense | 11,179 | 6,921 | 61.5 | |||||||
INCOME BEFORE INCOME TAXES | 63,043 | 78,874 | (20.1 | ) | ||||||
PROVISION FOR INCOME TAXES | 13,027 | 29,836 | (56.3 | ) | ||||||
NET INCOME | $ | 50,016 | $ | 49,038 | 2.0 | |||||
Earnings per share to common shareholders (2): | ||||||||||
Basic | $3.10 | $2.98 | 4.0 | |||||||
Diluted | $3.10 | $2.97 | 4.4 | |||||||
Weighted average shares outstanding used in computing earnings per share to common shareholders (2): | ||||||||||
Basic | 15,939 | 16,198 | (1.6 | ) | ||||||
Diluted | 15,945 | 16,220 | (1.7 | ) | ||||||
(1) Passenger revenue previously reported as Scheduled service revenue and Ancillary air-related 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 June 30, | Percent | |||||||||
2018 | 2017 | change (1) | ||||||||
OPERATING STATISTICS | ||||||||||
Total system statistics: | ||||||||||
Passengers | 3,704,113 | 3,306,193 | 12.0 | |||||||
Revenue passenger miles (RPMs) (thousands) | 3,276,599 | 2,958,808 | 10.7 | |||||||
Available seat miles (ASMs) (thousands) | 3,922,294 | 3,584,209 | 9.4 | |||||||
Load factor | 83.5 | % | 82.6 | % | 0.9 | |||||
Operating expense per ASM (CASM) (cents) | 9.24 | 8.82 | 4.8 | |||||||
Fuel expense per ASM (cents) | 3.12 | 2.38 | 31.1 | |||||||
Operating CASM, excluding fuel (cents) | 6.12 | 6.44 | (5.0 | ) | ||||||
ASMs per gallon of fuel | 76.1 | 71.9 | 5.8 | |||||||
Departures | 27,063 | 24,721 | 9.5 | |||||||
Block hours | 60,707 | 56,056 | 8.3 | |||||||
Average stage length (miles) | 858 | 866 | (0.9 | ) | ||||||
Average number of operating aircraft during period | 92.0 | 85.3 | 7.9 | |||||||
Average block hours per aircraft per day | 7.3 | 7.2 | 1.4 | |||||||
Full-time equivalent employees at end of period | 3,840 | 3,628 | 5.8 | |||||||
Fuel gallons consumed (thousands) | 51,516 | 49,858 | 3.3 | |||||||
Average fuel cost per gallon | $ | 2.38 | $ | 1.71 | 39.2 | |||||
Scheduled service statistics: | ||||||||||
Passengers | 3,681,944 | 3,266,789 | 12.7 | |||||||
Revenue passenger miles (RPMs) (thousands) | 3,245,774 | 2,903,257 | 11.8 | |||||||
Available seat miles (ASMs) (thousands) | 3,795,815 | 3,436,872 | 10.4 | |||||||
Load factor | 85.5 | % | 84.5 | % | 1.0 | |||||
Departures | 25,992 | 23,609 | 10.1 | |||||||
Block hours | 58,536 | 53,632 | 9.1 | |||||||
Total passenger revenue per ASM (TRASM) (cents) (2) | 11.15 | 11.10 | 0.5 | |||||||
Average fare - scheduled service (3) | $ | 64.62 | $ | 67.76 | (4.6 | ) | ||||
Average fare - air-related charges (3) | $ | 45.53 | $ | 44.66 | 1.9 | |||||
Average fare - third party products | $ | 4.84 | $ | 4.38 | 10.5 | |||||
Average fare - total | $ | 114.99 | $ | 116.80 | (1.5 | ) | ||||
Average stage length (miles) | 864 | 869 | (0.6 | ) | ||||||
Fuel gallons consumed (thousands) | 49,671 | 47,821 | 3.9 | |||||||
Average fuel cost per gallon | $ | 2.37 | $ | 1.70 | 39.4 | |||||
Percent of sales through website during period | 93.9 | % | 95.1 | % | (1.2 | ) | ||||
(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. The 2017 figure reflected has been adjusted from previously reported as a result of recast of revenue in accordance with revenue recognition accounting rules adopted by us as of January 1, 2018.
(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)
Six Months Ended June 30, | Percent | |||||||||
2018 | 2017 | change | ||||||||
OPERATING REVENUE: | ||||||||||
Passenger Revenue (1) | $ | 802,343 | $ | 715,086 | 12.2 | |||||
Third party products | 28,124 | 27,046 | 4.0 | |||||||
Fixed fee contract revenue | 18,209 | 22,289 | (18.3 | ) | ||||||
Other revenue | 13,548 | 17,434 | (22.3 | ) | ||||||
Total operating revenue | 862,224 | 781,855 | 10.3 | |||||||
OPERATING EXPENSES: | ||||||||||
Aircraft fuel | 228,481 | 170,049 | 34.4 | |||||||
Salary and benefits | 214,608 | 188,519 | 13.8 | |||||||
Station operations | 79,137 | 70,830 | 11.7 | |||||||
Maintenance and repairs | 43,881 | 58,740 | (25.3 | ) | ||||||
Depreciation and amortization | 57,983 | 60,678 | (4.4 | ) | ||||||
Sales and marketing | 37,426 | 26,822 | 39.5 | |||||||
Aircraft lease rentals | 96 | 2,564 | (96.3 | ) | ||||||
Other | 46,422 | 44,129 | 5.2 | |||||||
Total operating expense | 708,034 | 622,331 | 13.8 | |||||||
OPERATING INCOME | 154,190 | 159,524 | (3.3 | ) | ||||||
OTHER (INCOME) EXPENSE: | ||||||||||
Interest expense | 25,880 | 17,291 | 49.7 | |||||||
Interest income | (3,834 | ) | (2,739 | ) | 40.0 | |||||
Other, net | (290 | ) | (854 | ) | (66.0 | ) | ||||
Total other expense | 21,756 | 13,698 | 58.8 | |||||||
INCOME BEFORE INCOME TAXES | 132,434 | 145,826 | (9.2 | ) | ||||||
PROVISION FOR INCOME TAXES | 27,225 | 54,437 | (50.0 | ) | ||||||
NET INCOME | 105,209 | 91,389 | 15.1 | |||||||
Earnings per share to common shareholders (2): | ||||||||||
Basic | $6.53 | $5.52 | 18.3 | |||||||
Diluted | $6.52 | $5.51 | 18.3 | |||||||
Weighted average shares outstanding used in computing earnings per share to common shareholders (2): | ||||||||||
Basic | 15,898 | 16,290 | (2.4 | ) | ||||||
Diluted | 15,914 | 16,317 | (2.5 | ) | ||||||
(1) Passenger revenue previously reported as Scheduled service revenue and Ancillary air-related 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)
Six Months Ended June 30, | Percent | |||||||||
2018 | 2017 | change (1) | ||||||||
OPERATING STATISTICS | ||||||||||
Total system statistics: | ||||||||||
Passengers | 7,007,064 | 6,187,441 | 13.2 | |||||||
Revenue passenger miles (RPMs) (thousands) | 6,371,403 | 5,667,306 | 12.4 | |||||||
Available seat miles (ASMs) (thousands) | 7,650,857 | 6,961,046 | 9.9 | |||||||
Load factor | 83.3 | % | 81.4 | % | 1.9 | |||||
Operating expense per ASM (CASM) (cents) | 9.25 | 8.94 | 3.5 | |||||||
Fuel expense per ASM (cents) | 2.99 | 2.44 | 22.5 | |||||||
Operating CASM, excluding fuel (cents) | 6.26 | 6.50 | (3.7 | ) | ||||||
ASMs per gallon of fuel | 76.4 | 72.0 | 6.1 | |||||||
Departures | 51,311 | 47,016 | 9.1 | |||||||
Block hours | 118,510 | 109,249 | 8.5 | |||||||
Average stage length (miles) | 883 | 883 | — | |||||||
Average number of operating aircraft during period | 90.8 | 85.0 | 6.8 | |||||||
Average block hours per aircraft per day | 7.2 | 7.1 | 1.4 | |||||||
Full-time equivalent employees at end of period | 3,840 | 3,628 | 5.8 | |||||||
Fuel gallons consumed (thousands) | 100,156 | 96,708 | 3.6 | |||||||
Average fuel cost per gallon | $ | 2.28 | $ | 1.76 | 29.5 | |||||
Scheduled service statistics: | ||||||||||
Passengers | 6,961,312 | 6,112,269 | 13.9 | |||||||
Revenue passenger miles (RPMs) (thousands) | 6,310,393 | 5,565,191 | 13.4 | |||||||
Available seat miles (ASMs) (thousands) | 7,397,830 | 6,674,035 | 10.8 | |||||||
Load factor | 85.3 | % | 83.4 | % | 1.9 | |||||
Departures | 49,256 | 44,857 | 9.8 | |||||||
Block hours | 114,224 | 104,507 | 9.3 | |||||||
Total scheduled service revenue per ASM (TRASM) (cents) (2) | 11.23 | 11.12 | 1.0 | |||||||
Average fare - scheduled service (3) | $ | 68.95 | $ | 71.33 | (3.3 | ) | ||||
Average fare - air-related charges (3) | $ | 46.31 | $ | 45.67 | 1.4 | |||||
Average fare - third party products | $ | 4.04 | $ | 4.42 | (8.6 | ) | ||||
Average fare - total | $ | 119.30 | $ | 121.42 | (1.7 | ) | ||||
Average stage length (miles) | 889 | 887 | 0.2 | |||||||
Fuel gallons consumed (thousands) | 96,542 | 92,713 | 4.1 | |||||||
Average fuel cost per gallon | $ | 2.27 | $ | 1.75 | 29.7 | |||||
Percent of sales through website during period | 93.9 | % | 94.2 | % | (0.3 | ) | ||||
(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 of revenue in accordance with revenue recognition accounting rules adopted by us as of January 1, 2018.
(3) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.
Summary Balance Sheet
(millions) | 6/30/2018 | 12/31/2017 | Change | |||||||
(unaudited) | ||||||||||
Unrestricted cash | ||||||||||
Cash and cash equivalents | $ | 29.0 | $ | 59.4 | (51.2 | )% | ||||
Short-term investments | 343.2 | 352.7 | (2.7 | ) | ||||||
Long-term investments | 56.4 | 78.6 | (28.2 | ) | ||||||
Total unrestricted cash and investments | 428.6 | 490.7 | (12.7 | ) | ||||||
Debt | ||||||||||
Current maturities of long-term debt and capital lease obligations, net of related costs | 144.4 | 214.8 | (32.8 | ) | ||||||
Long-term debt and capital lease obligations, net of current maturities and related costs | 992.3 | 950.1 | 4.4 | |||||||
Total debt | 1,136.7 | 1,164.9 | (2.4 | ) | ||||||
Total Allegiant Travel Company shareholders’ equity | $ | 644.7 | $ | 553.3 | 16.5 | % | ||||
Summary Cash Flow
Six Months Ended June 30, | ||||||||||
Unaudited (millions) | 2018 | 2017 | Change | |||||||
Cash provided by operating activities | $ | 283.2 | $ | 262.9 | 7.7 | % | ||||
Purchase of property and equipment, including capitalized interest* | 187.5 | 182.3 | 2.9 | |||||||
Repurchase of common stock | 3.0 | 84.9 | (96.5 | ) | ||||||
Cash dividends paid to shareholders | 22.6 | 23.2 | (2.6 | ) | ||||||
Proceeds from the issuance of long-term debt | 10.8 | 134.5 | (92.0 | ) | ||||||
Principal payments on long-term debt & capital lease obligations | $ | 142.4 | $ | 64.9 | 119.4 | % | ||||
* 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 June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Basic: | |||||||||||||||
Net income | $ | 50,016 | $ | 49,038 | $ | 105,209 | $ | 91,389 | |||||||
Less net income allocated to participating securities | (659 | ) | (789 | ) | (1,427 | ) | (1,482 | ) | |||||||
Net income attributable to common stock | $ | 49,357 | $ | 48,249 | $ | 103,782 | $ | 89,907 | |||||||
Earnings per share, basic | $ | 3.10 | $ | 2.98 | $ | 6.53 | $ | 5.52 | |||||||
Weighted-average shares outstanding | 15,939 | 16,198 | 15,898 | 16,290 | |||||||||||
Diluted: | |||||||||||||||
Net income | $ | 50,016 | $ | 49,038 | $ | 105,209 | $ | 91,389 | |||||||
Less net income allocated to participating securities | (658 | ) | (789 | ) | (1,425 | ) | (1,480 | ) | |||||||
Net income attributable to common stock | $ | 49,358 | $ | 48,249 | $ | 103,784 | $ | 89,909 | |||||||
Earnings per share, diluted | $ | 3.10 | $ | 2.97 | $ | 6.52 | $ | 5.51 | |||||||
Weighted-average shares outstanding | 15,939 | 16,198 | 15,898 | 16,290 | |||||||||||
Dilutive effect of stock options and restricted stock | 44 | 71 | 63 | 92 | |||||||||||
Adjusted weighted-average shares outstanding under treasury stock method | 15,983 | 16,269 | 15,961 | 16,382 | |||||||||||
Participating securities excluded under two-class method | (38 | ) | (49 | ) | (47 | ) | (65 | ) | |||||||
Adjusted weighted-average shares outstanding under two-class method | 15,945 | 16,220 | 15,914 | 16,317 | |||||||||||