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Allegiant Travel Company Second Quarter 2019 Financial Results
Globe Newswire 24-Jul-2019 4:01 PM
Second quarter 2019 fully diluted earnings per share of $4.33 Second quarter 2019 airline diluted earnings per share of $4.81(1) 66th consecutive profitable quarter
LAS VEGAS, July 24, 2019 (GLOBE NEWSWIRE) -- Allegiant Travel Company (NASDAQ:ALGT) today reported the following financial results for the second quarter 2019, as well as comparisons to the prior year:
Consolidated
Three Months Ended June 30,
Percent
Six Months Ended June 30,
Percent
(unaudited)
2019
2018
Change
2019
2018
Change
Total operating revenue (millions)
$
491.8
$
436.8
12.6
%
$
943.4
$
862.2
9.4
%
Operating income (millions)
108.1
74.2
45.7
199.2
154.2
29.2
Net income (millions)
70.5
50.0
41.0
127.7
105.2
21.3
Diluted earnings per share
$
4.33
$
3.10
39.7
%
$
7.84
$
6.52
20.2
%
Airline only
Three Months Ended June 30,
Percent
Six Months Ended June 30,
Percent
(unaudited)
2019
2018
Change
2019
2018
Change
Airline operating revenue (millions)
$
486.8
$
434.6
12.0
%
$
935.1
$
858.9
8.9
%
Airline operating income (millions)
115.5
76.1
51.8
214.0
158.0
35.4
Airline operating margin(2)
23.7
%
17.5
%
6.2
22.9
%
18.4
%
4.5
Airline diluted earnings per share(1)
$
4.81
$
3.21
49.8
$
8.80
$
6.75
30.4
Airline CASM ex fuel (cents)(1)
5.65
6.02
(6.1
)
6.00
6.17
(2.8
)
(1) Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information. (2) Percent point change
"I'm happy to report the second quarter of 2019 was Allegiant's 66th consecutive profitable quarter," stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. "We commented last quarter about the benefits of our all Airbus fleet. These benefits are continuing and increasing. We led the industry in Q1 with a 22 percent airline operating margin; this quarter the airline generated a 24 percent operating margin, a six percentage point increase from the previous year. And we accomplished these results with seven fewer aircraft this year compared to 2018. The fuel efficiencies of the Airbus continue to impress. We consumed 4.9 percent more fuel in Q2 compared to last year but produced 13.4 percent more ASMs. Correspondingly, our CASM ex-fuel declined 6.1 percent year over year. I'm comfortable stating we believe we will be the only carrier this quarter who had lower unit costs this year versus last year.
"On the revenue front, scheduled service revenue was $11 million per aircraft during the first six months of the year, over $2 million more than last year's per aircraft revenue during the same period. Additionally, we generated approximately $3.5 million of EBITDA per aircraft in the same period or about $1.1 million greater per aircraft than the same period last year.
"Our operations continue to excel. We have solely led or tied for the industry lead in completion factor every month in 2019. One of our challenges in the past few years has been our ability to scale our operations during our peak periods in the summer months and maintain a high completion rate. In June 2018, we were number five in completion rate; this year we were number one. I'm happy to report we have had only ten days where we have had a mechanical cancellation since the beginning of the year.
"This combination of superior financial results and industry-leading operational performance, along with the proprietary model we have developed and continue to operate is a tribute to our excellent team members. Looking forward, we are excited about the opportunities in front of us including our ability to operate our leisure model to Mexico and the Caribbean in the coming years."
Airline operational highlights
• Departures in the second quarter up 13.8 percent year over year despite seven fewer average aircraft in service • Average number of aircraft in service decreased 7.6 percent from 92 to 85 year over year • Spare aircraft reduced from twelve down to four spares year over year • Block hour utilization increased by 20.5 percent to 8.8 block hours per aircraft per day • Led industry in completion every month in 2019 • Maintenance cancellations down 87.6 percent year over year • On time performance (A-14) for the quarter was 77.7 percent up 2.8pts year over year • Net promoter score is up an average of 8pts year over year • Irregular operation costs - second quarter down $7.2 million or 57.6 percent
Airline only second quarter 2019 results
• Diluted earnings per share were $4.81, up 49.8 percent year over year • 23.7 percent operating margin for the quarter and 22.9 percent year to date • TRASM decreased 1.6 percent on capacity growth of 13.6 percent • May TRASM grew 2.4 percent on 11 percent growth in ASMs • June TRASM grew 0.7 percent on 13.5 percent growth in ASMs • Total fare is down only 0.5 percent despite increasing aircraft utilization by 20.5 percent • Year-to-date average total fare has increased 1.0 percent to $120.49 • Fixed fee flying revenue increased 63.2 percent • Fuel gallons used increased only 4.9 percent on ASM growth of 13.4 percent • Increase in ASMs per gallon of 8.1 percent to 82.3 • Airline unit cost excluding fuel decreased by 6.1 percent • Maintenance and operational improvements were the largest drivers
Liquidity and shareholder returns
• Total cash and investments at June 30 were $695 million • Paid off high yield bond balance of $102 million in July • Currently, we have 26 unencumbered aircraft • $81 million available under the revolving credit facility • Returned $11 million in dividends in the second quarter • Expect to pay dividend of $0.70 per share on September 27, 2019 to shareholders of record as of September 20, 2019
Non-airline highlights
• Non-airline businesses resulted in a combined operating loss of $7.4 million during second quarter • Evaluating strategic alternatives for Teesnap • Triggered the business classification of an entity held for sale in July 2019 • SunseekerResorts FY19 CAPEX reduced to a range between $150 and $175 million • Operated two family entertainment centers (FEC's) during second quarter • Rebranded FEC's from G4CE to Allegiant Nonstop effective June 1, 2019
Guidance, subject to revision
Full year 2019 guidance
Previous
Current
Fuel cost per gallon
$
2.26
$
2.15
Available seat miles (ASMs) / gallon
81.0 to 83.0
82.0 to 83.0
Interest expense (millions)
$70 to $80
$75 to $80
Tax rate
24 to 25%
23 to 24%
Share count (millions)
15.9
15.9
Earnings per share
$13.25 to $14.75
$13.50 to $14.25
System ASMs - year over year change
7.5 to 9.5%
8 to 9%
Scheduled service ASMs - year over year change
7.5 to 9.5%
8 to 9%
Depreciation expense (millions)
$150 to $160
$155 to $160
Airline operating CASM excluding fuel - year over year change
(3.5) to (1.5)%
(4) to (3)%
Non airline operating income (millions)
($17) to ($12)
****
Airline CAPEX - full year 2019
Capital expenditures (millions)
$400 to 410
$385 to 390
Capitalized Airbus deferred heavy maintenance (millions) *
$85 to 105
$85 to 95
Sunseeker Resorts CAPEX
Project to date (millions)
$
54
$
67
Expected 2019 spend (millions)
$250 to 300
$150 to 175
Total project spend remaining **
$
416
$
403
Other CAPEX - full year 2019***
Capital expenditures (millions)
$15 to 20
$15 to 20
Previous guidance as of April 24, 2019 * Not included in capital expenditure total ** Of the total remaining capex, expect to receive $175m in third party financing from an affiliate of TPG Sixth Street Partners as the last funds in the project, of which 2/3 will be non-recourse to Allegiant Travel Company *** Includes Allegiant Nonstop **** With Teesnap entity being held for sale, suspending guidance
Aircraft fleet plan by end of period
Aircraft - (seats per AC)
YE18
1Q19
2Q19
3Q19
YE19
A319 (156 seats)
32
37
37
37
38
A320 (177/186 seats)
44
47
49
53
55
Total
76
84
86
90
93
Aircraft listed in table above include only in-service aircraft 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 24, 2019 to discuss its second quarter 2019 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 serves more than 450 routes across the country, with base airfares less than half the cost of the average domestic roundtrip ticket. Allegiant's Sunseeker Resorts subsidiary is currently under construction with its inaugural resort property, Sunseeker Resort Charlotte Harbor in Southwest Florida - a unique waterside integrated resort like no other. And a growing group of Allegiant Nonstop family entertainment centers offer state-of-the art indoor games and attractions to thrill seekers of all ages. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF
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, revenues, earnings, ASM growth, fuel consumption, expected capital expenditures, number of contracted aircraft to be placed in service in the future, the development and financing of our Sunseeker Resort, 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, 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 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 June 30,
Percent
2019
2018
change
OPERATING REVENUE:
Passenger revenue
$
454,779
$
405,572
12.1
Third party products
18,208
17,799
2.3
Fixed fee contract revenue
12,487
7,653
63.2
Other revenue
6,285
5,756
9.2
Total operating revenue
491,759
436,780
12.6
OPERATING EXPENSES:
Aircraft fuel
119,987
122,454
(2.0
)
Salary and benefits
113,592
101,645
11.8
Station operations
45,870
41,553
10.4
Maintenance and repairs
20,877
24,611
(15.2
)
Depreciation and amortization
38,494
29,833
29.0
Sales and marketing
20,540
18,348
11.9
Aircraft lease rental
—
75
(100.0
)
Other
24,294
24,039
1.1
Total operating expense
383,654
362,558
5.8
OPERATING INCOME
108,105
74,222
45.7
OTHER (INCOME) EXPENSE:
Interest expense
20,942
13,251
58.0
Capitalized interest
(1,038
)
(95
)
NM
Interest income
(3,502
)
(1,927
)
81.7
Other, net
(86
)
(50
)
72.0
Total other expense
16,316
11,179
46.0
INCOME BEFORE INCOME TAXES
91,789
63,043
45.6
PROVISION FOR INCOME TAXES
21,246
13,027
63.1
NET INCOME
$
70,543
$
50,016
41.0
Earnings per share to common shareholders(1):
Basic
$
4.33
$
3.10
39.7
Diluted
$
4.33
$
3.10
39.7
Weighted average shares outstanding used in computing earnings per share to common shareholders(1):
Basic
16,063
15,939
0.8
Diluted
16,069
15,945
0.8
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 June 30,
Percent
2019
2018
change (1)
OPERATING STATISTICS
Total system statistics:
Passengers
4,169,536
3,704,113
12.6
Revenue passenger miles (RPMs) (thousands)
3,654,369
3,276,599
11.5
Available seat miles (ASMs) (thousands)
4,447,066
3,922,294
13.4
Load factor
82.2
%
83.5
%
(1.3
)
Airline operating expense per ASM (CASM) (cents)
8.35
9.14
(8.6
)
Fuel expense per ASM (cents)
2.70
3.12
(13.5
)
Airline operating CASM, excluding fuel (cents)
5.65
6.02
(6.1
)
ASMs per gallon of fuel
82.3
76.1
8.1
Departures
30,547
27,063
12.9
Block hours
68,332
60,707
12.6
Average stage length (miles)
853
858
(0.6
)
Average number of operating aircraft during period
85.0
92.0
(7.6
)
Average block hours per aircraft per day
8.8
7.3
20.5
Full-time equivalent employees at end of period
4,179
3,840
8.8
Fuel gallons consumed (thousands)
54,064
51,516
4.9
Average fuel cost per gallon
$
2.22
$
2.38
(6.7
)
Scheduled service statistics:
Passengers
4,131,855
3,681,944
12.2
Revenue passenger miles (RPMs) (thousands)
3,603,076
3,245,774
11.0
Available seat miles (ASMs) (thousands)
4,311,182
3,795,815
13.6
Load factor
83.6
%
85.5
%
(1.9
)
Departures
29,567
25,992
13.8
Block hours
66,135
58,536
13.0
Total passenger revenue per ASM (TRASM) (cents)(2)
10.97
11.15
(1.6
)
Average fare - scheduled service(3)
$
58.39
$
64.62
(9.6
)
Average fare - air-related charges(3)
$
51.68
$
45.53
13.5
Average fare - third party products
$
4.40
$
4.84
(9.1
)
Average fare - total
$
114.47
$
114.99
(0.5
)
Average stage length (miles)
853
864
(1.3
)
Fuel gallons consumed (thousands)
52,327
49,671
5.3
Average fuel cost per gallon
$
2.22
$
2.37
(6.3
)
Percent of sales through website during period
93.5
%
93.9
%
(0.4
)
Other data:
Rental car days sold
540,960
404,355
33.8
Hotel room nights sold
114,191
93,484
22.2
(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.
Allegiant Travel Company Consolidated Statements of Income (in thousands, except per share amounts) (Unaudited)
Six Months Ended June 30,
Percent
2019
2018
change
OPERATING REVENUE:
Passenger revenue
$
874,755
$
802,343
9.0
Third party products
35,350
28,124
25.7
Fixed fee contract revenue
23,061
18,209
26.6
Other revenue
10,215
13,548
(24.6
)
Total operating revenue
943,381
862,224
9.4
OPERATING EXPENSES:
Aircraft fuel
219,670
228,481
(3.9
)
Salary and benefits
233,003
214,608
8.6
Station operations
84,835
79,137
7.2
Maintenance and repairs
43,701
43,881
(0.4
)
Depreciation and amortization
74,676
57,983
28.8
Sales and marketing
41,466
37,426
10.8
Aircraft lease rentals
—
96
(100.0
)
Other
46,849
46,422
0.9
Total operating expense
744,200
708,034
5.1
OPERATING INCOME
199,181
154,190
29.2
OTHER (INCOME) EXPENSE:
Interest expense
39,025
26,158
49.2
Capitalized interest
(2,541
)
(278
)
NM
Interest income
(6,703
)
(3,834
)
74.8
Loss on extinguishment of debt
3,677
—
NM
Other, net
15
(290
)
(105.2
)
Total other expense
33,473
21,756
53.9
INCOME BEFORE INCOME TAXES
165,708
132,434
25.1
PROVISION FOR INCOME TAXES
38,041
27,225
39.7
NET INCOME
$
127,667
$
105,209
21.3
Earnings per share to common shareholders(1):
Basic
$
7.85
$
6.53
20.2
Diluted
$
7.84
$
6.52
20.2
Weighted average shares outstanding used in computing earnings per share to common shareholders(1):
Basic
16,037
15,898
0.9
Diluted
16,050
15,914
0.9
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)
Six Months Ended June 30,
Percent
2019
2018
change (1)
OPERATING STATISTICS
Total system statistics:
Passengers
7,619,814
7,007,064
8.7
Revenue passenger miles (RPMs) (thousands)
6,882,963
6,371,403
8.0
Available seat miles (ASMs) (thousands)
8,357,304
7,650,857
9.2
Load factor
82.4
%
83.3
%
(0.9
)
Airline operating expense per ASM (CASM) (cents)
8.63
9.16
(5.8
)
Fuel expense per ASM (cents)
2.63
2.99
(12.0
)
Airline operating CASM, excluding fuel (cents)
6.00
6.17
(2.8
)
ASMs per gallon of fuel
83.1
76.4
8.8
Departures
55,747
51,311
8.6
Block hours
128,151
118,510
8.1
Average stage length (miles)
876
883
(0.8
)
Average number of operating aircraft during period
82.3
90.8
(9.4
)
Average block hours per aircraft per day
8.6
7.2
19.4
Full-time equivalent employees at end of period
4,179
3,840
8.8
Fuel gallons consumed (thousands)
100,537
100,156
0.4
Average fuel cost per gallon
$
2.18
$
2.28
(4.4
)
Scheduled service statistics:
Passengers
7,553,393
6,961,312
8.5
Revenue passenger miles (RPMs) (thousands)
6,794,122
6,310,393
7.7
Available seat miles (ASMs) (thousands)
8,113,315
7,397,830
9.7
Load factor
83.7
%
85.3
%
(1.6
)
Departures
53,911
49,256
9.5
Block hours
124,098
114,224
8.6
Total passenger revenue per ASM (TRASM) (cents)(2)
11.22
11.23
(0.1
)
Average fare - scheduled service(3)
$
63.49
$
68.95
(7.9
)
Average fare - air-related charges(3)
$
52.32
$
46.31
13.0
Average fare - third party products
$
4.68
$
4.04
15.8
Average fare - total
$
120.49
$
119.30
1.0
Average stage length (miles)
878
889
(1.2
)
Fuel gallons consumed (thousands)
97,395
96,542
0.9
Average fuel cost per gallon
$
2.18
$
2.27
(4.0
)
Percent of sales through website during period
93.5
%
93.9
%
(0.4
)
Other data:
Rental car days sold
1,012,558
802,942
26.1
Hotel room nights sold
219,206
202,468
8.3
(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.
Summary Balance Sheet
Unaudited (millions)
6/30/2019
12/31/2018
Percent Change
(unaudited)
Unrestricted cash
Cash and cash equivalents
$
453.9
$
81.5
NM
Short-term investments
216.7
314.5
(31.1
)
Long-term investments
24.7
51.5
(52.0
)
Total unrestricted cash and investments
695.3
447.5
55.4
Debt
Current maturities of long-term debt and capital lease obligations, net of related costs(1)
160.5
152.3
5.4
Long-term debt and capital lease obligations, net of current maturities and related costs
1,338.7
1,119.4
19.6
Total debt
1,499.2
1,271.7
17.9
Total Allegiant Travel Company shareholders' equity
804.5
690.3
16.5
(1) As of June 30, 2019, and December 31, 2018, respectively, $80.1 million and $428.0 million of the Company's Unsecured Senior Notes (which matured on July 15, 2019) were classified as long-term as management refinanced the borrowings on a long-term basis in February 2019.
Summary Cash Flow
Six Months Ended June 30,
Percent
Unaudited (millions)
2019
2018
Change
Cash provided by operating activities
$
277.5
$
283.2
(2.0
)%
Purchase of property and equipment, including capitalized interest
234.5
187.5
25.1
Cash dividends paid to shareholders
22.8
22.6
0.9
Proceeds from the issuance of long-term debt
770.4
10.8
NM
Principal payments on long-term debt & capital lease obligations
522.6
142.4
267.0
NM - Not meaningful 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,
2019
2018
2019
2018
Basic:
Net income
$
70,543
$
50,016
$
127,667
$
105,209
Less net income allocated to participating securities
(997
)
(659
)
(1,791
)
(1,427
)
Net income attributable to common stock
$
69,546
$
49,357
$
125,876
$
103,782
Earnings per share, basic
$
4.33
$
3.10
$
7.85
$
6.53
Weighted-average shares outstanding
16,063
15,939
16,037
15,898
Diluted:
Net income
$
70,543
$
50,016
$
127,667
$
105,209
Less net income allocated to participating securities
(996
)
(658
)
(1,790
)
(1,425
)
Net income attributable to common stock
$
69,547
$
49,358
$
125,877
$
103,784
Earnings per share, diluted
$
4.33
$
3.10
$
7.84
$
6.52
Weighted-average shares outstanding
16,063
15,939
16,037
15,898
Dilutive effect of stock options and restricted stock
39
44
39
63
Adjusted weighted-average shares outstanding under treasury stock method
16,102
15,983
16,076
15,961
Participating securities excluded under two-class method
(33
)
(38
)
(26
)
(47
)
Adjusted weighted-average shares outstanding under two-class method
16,069
15,945
16,050
15,914
Appendix A Non-GAAP Presentations Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)
Airline operating revenue, airline operating income, airline net income, airline operating expense, and airline diluted earnings per share all eliminate the effects of non-airline operating activity, which is not reflective of the airline operating performance. Airline earnings before interest, taxes, depreciation and amortization ("Airline EBITDA") eliminates the effects of non-airline operating activity and other items. As such, all of these are non-GAAP financial measures. We believe the presentation of these measures is relevant and useful for investors because it allows them to better gauge the performance of the airline and to compare our results to other airlines.
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, net income, operating expenses, and diluted earnings 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, net income 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 June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Reconciliation of airline operating CASM excluding fuel (millions)
Consolidated operating expense (GAAP)
$
383.7
$
362.6
$
744.2
$
708.0
Less aircraft fuel expense
120.0
122.5
219.7
228.5
Less non-airline operating expense
12.4
4.1
23.1
7.1
Total airline operating expense less fuel expense(1)
251.3
236.0
501.4
472.4
System available seat miles (millions)
4,447.1
3,922.3
8,357.3
7,650.9
Cost per available seat mile (cents) as reported
8.63
9.24
8.90
9.25
Cost per available seat mile excluding fuel and non-airline expense (cents)(1)
5.65
6.02
6.00
6.17
Three Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Reconciliation of airline operating revenue, operating income, net income, and EBITDA (millions)
Operating revenue as reported (GAAP)
$
491.8
$
436.8
$
943.4
$
862.2
Non-airline operating revenue(1)
5.0
2.2
8.3
3.3
Airline operating revenue(1)
486.8
434.6
935.1
858.9
Operating income as reported (GAAP)
108.1
74.2
199.2
154.2
Non-airline operating loss(1)
(7.4
)
(1.9
)
(14.8
)
(3.8
)
Airline operating income(1)
115.5
76.1
214.0
158.0
Airline operating margin
23.7
%
17.5
%
22.9
%
18.4
%
Net income as reported (GAAP)
70.5
50.0
127.7
105.2
Non-airline net loss(1)
(7.9
)
(1.8
)
(15.5
)
(3.8
)
Airline net income(1)
78.4
51.8
143.2
109.0
Airline operating income(1)
115.5
76.1
214.0
158.0
Add: Airline depreciation and amortization(1)
36.9
29.4
72.1
57.2
Airline EBITDA(1)
152.4
105.5
286.1
215.2
Average number of aircraft in service (#)
85.0
92.0
82.3
90.8
Airline EBITDA per aircraft
1.8
1.1
3.5
2.4
Three Months Ended June 30,
Six Months Ended June 30,
2019
2018
2019
2018
Reconciliation of airline diluted earnings per share
Net income as reported (GAAP)
$
70.5
$
50.0
$
127.7
$
105.2
Airline net income(1)
78.4
51.8
143.2
109.0
Diluted shares used for computation (thousands)
16,069
15,945
16,050
15,914
Diluted earnings per share as reported (per share) (GAAP)
