Allegiant Travel Company · NASDAQ:ALGT
Allegiant Travel — Q1 2023 Earnings Presentation
24 slides from Allegiant Travel's earnings presentation, May 3, 2023
Slide 1: Management Presentation
Management Presentation May 3, 2023
Slide 2: Forward looking statements
Forward looking statements This presentation as well as oral statements made by officers or directors of Allegiant Travel Company, its advisors and affiliates (collectively or separately, the "Company“) will contain forward-looking statements that are only predictions and involve risks and uncertain
Slide 3: Allegiant overview
Allegiant overview 572 124 Unique business model Routes served 1 Aircraft 2 32 leisure destinations and 89 A320 and 35 A319. ULCC operating a low-cost, low-utilization model that 93 small/medium cities expertly matches capacity to demand, focusing primarily on the leisure customer Diversified revenu
Slide 4: Optimized performance – even in high fuel environments
Optimized performance – even in high fuel environments Adjusted Pre-Tax Margin (millions) 2005 - 2022 30% $111.3 /bbl. 27% $96.9/bbl. 25% $100/bbl. 22% 20% 16% 15% 16% 14% 14% 13% 11% 12% 12% 10% 10% 15% Adjusted Pre-Tax Margin 10% 7% 14% 6% 6% 11% 10% 3% 3% 7% 8% 5% 0% 3% 2% 2% 2% 0% 1% (3%) (10%)
Slide 5: A very large niche
A very large niche 572 routes 93 small/medium cities 32 leisure destinations Routes as of December 31, 2022 5
Slide 6: Limited competition
Limited competition* Historic Level of Non-competitive Routes 2007-2023 442 448 449 425 363 314 309 294 255 221 207 168 181 161 136 124 114 98 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023* 2023* Routes with competition Routes without competition* Competitors –
Slide 7: Expertly matching capacity with demand trends
Expertly matching capacity with demand trends Average Daily Aircraft Utilization % of Seats Flown Each Day of the Week 2017 – 2022 1 FY 2022 11 20% 10 Allegiant reduces AC utilization to 9 adjust for low 15% % of total weekly seats demand Block Hours/AC/Day 8 7 10% 6 Allegiant 5 5% ULCC’s ex-Allegia
Slide 8: Added contribution of third-party product sales
Added contribution of third-party product sales Third Party Annual & Cumulative Net Revenue Summary (millions) Hotel Room Nights (thousands) 2005 - 2022 2017 - 2022 $734M 391K 409K 416K Cumulative 3rd party revenue 283K 261K 199K Asset-light revenue with 90%+ margins 2017 2018 2019 2020 2021 2022 An
Slide 9: Allways Rewards cobrand credit card
Allways Rewards cobrand credit card Quarterly New Cardholder Acquisition (thousands) 2005 - 2022 • Ended 2022 with over 400K active cardholders 45 44 • Over 150K new cardholders in 2022 37 31 33 32 • FY2022 total remuneration of over $100M 28 29 25 23 25 • Named best airline credit card in 2022 for
Slide 10: Allways Rewards benefits all
Allways Rewards® benefits all In its first year since inception, Allways Rewards provided an option for leisure travelers to get rewarded like never before, in turn allowing Allegiant to recognize higher value from the program’s engaged member base Value to the customer 20+ exclusive offers 7 bonus
Slide 11: Financial performance
Financial performance Revenue per Passenger TRASM 2022 – 1Q23 2022 – 1Q23 14.0¢ 13.9¢ $151 $154 $131 $132 $135 12.7¢ 12.6¢ 12.5¢ $126 73 75 10.8¢ Base Fare 66 68 68 65 Ancillary Air 78 79 & 3rd Party 63 66 61 67 YoY 2% 56% 23% 21% 25% 28% 1Q22 2Q22 3Q22 4Q22 2020 1Q23 1Q22 2Q22 3Q22 4Q22 2022 1Q23 A
Slide 12: Balance sheet snapshot
Balance sheet snapshot Allegiant’s Net Debt (millions) Allegiant’s Cash Position (millions) 1Q20 vs 1Q23 1Q20 vs 1Q23 $1,077 $1,024 $1,029 3.2x 2.2x $464 2.7x 1.5x 1Q20 1Q23 1Q20 1Q23 Net Debt Total unrestricted cash and investments Net Debt / EBITDA TTM Cash and investments / Air traffic liability
Slide 13: Investing in the future
Investing in the future 2023 Projected Capital Expenditures 2023 Projected EBITDA and Net Leverage¹ (EBITDA in millions) (millions) Full Year 2023 $560M 2023 Capital Expenditures 3.7x Sunseeker Resort $206 Aircraft, engines, induction costs, and 2 2.6x $560 $289M PDPs Capitalized deferred heavy mx $
Slide 14: 737 MAX joins Allegiant's fleet
737 MAX joins Allegiant’s fleet Boeing 737-7 and 737-8-200 • 50 firm aircraft • 50 options CFM International LEAP-1B • Six Spare engines • Power by the hour agreement Enhanced economics • 30% increase in ASM/gal over current fleet • Projected ~40% increase in EBITDA/AC over current fleet Boeing's fi
Slide 15: Low fixed costs maintained
Low fixed costs maintained Ownership Expense per Aircraft (Mainline + Regionals) FY2022 (millions) – ALGT excludes Sunseeker Debt $5.2 • D&A $4.9 Ownership 0.2 Expense • A/C Rent 1.5 • Interest Expense $3.8 $3.7 $3.4 0.7 Allegiant ’25E $3.0 Ownership $2.9 1.3 Expense – $2.6M $2.5 $2.6 $2.6 $2.6 0.6
Slide 16: Committed to reducing our CO2 emissions intensity
Committed to reducing our CO2 emissions intensity CO2e Metric Tons per 1K RPM – Emissions Intensity Excluding ‘20 and ‘21 due to COVID impact Added measures we are taking to reduce fuel consumption include: 0.152 (10%) • Ensuring new aircraft are retrofitted with ACRO 6 seats, which are lighter comp
Slide 17: Strategic Initiatives
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Slide 18: Allegiant 2.0, capturing larger customer spend through 1st party offerings
Allegiant 2.0, capturing larger customer spend through 1st party offerings 3 rd Party Ancillaries Fly to leisure Raiders Partnership destinations US and Mexico 3 rd Party Ancillaries Events/Concerts One OTA Booking Path 1st Party Ancillaries World class Resort & Spa www.allegiantair.com One Loyalty
Slide 19: Viva & Allegiant – providing a comprehensive US & Mexico coverage
Viva & Allegiant – providing a comprehensive US & Mexico coverage Chicago New York Las Vegas Los Angeles Tijuana Cancun Guadalajara Bogota Colombia 17+ Million 124 23.0% 20+ Million 69 28.2% Annual passengers Aircraft EBITDA Margin Annual passengers Aircraft EBITDAR Margin In numbers TTM as of Mar 3
Slide 20: Large number of potential markets without nonstop service
Large number of potential markets without nonstop service Cancun Puerto Vallarta Los Cabos Bubble size based on Bubble size based on Bubble size based on O&D PPDEW FY2019 O&D PPDEW FY2019 O&D PPDEW FY2019 76 no non-stop service 82 no non-stop service 81 no non-stop service 83 Allegiant airports 7 no
Slide 21: Resort overview
Resort overview 24-acre waterfront property acquired by Allegiant in 2018 Hotel with 500+ rooms; +55,000 square feet of meeting and event space; 20 food and beverage outlets; full-service spa and fitness center Not actual photo Two additional towers with 1-, 2-, and 3-bedroom suites (189 total
Slide 22: Appendix
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Slide 23: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures 1Q2022 2Q2022 3Q2022 4Q2022 Full Year 2022 1Q2023 Reconciliation of earnings (loss) per share excluding recognition bonus and Sunseeker special charges Net Income before income taxes as reported $ (10.6) $5.8 $ (56.2) $65.9 $5.0 $74.4 (GAAP) Recognition
Slide 24: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Full Year 2022 Consolidated EBITDA (millions) Net Income $2.5 Interest expense, net 86.6 Income tax expense 2.5 Depreciation and amortization 197.5 Consolidated EBITDA1 $289.1 24 1- Denotes non-GAAP figure
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