Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — Q2 2021 Earnings Presentation
32 slides from Wheels Up Experience's earnings presentation, Aug 12, 2021
Slide 1: Second Quarter 2021 Earnings
SECOND QUARTER 2021 E ARNINGS AUGUST 12, 2021
Slide 2: Disclaimer
DISCL AIMER The historical financial information in this press release relates to Wheels Up Partners Holdings LLC's operations prior to the business combination. Going forward, financial results will be presented on a combined company basis. F O R WA R D -LO O K I N G STAT E M EN T S This presentati
Slide 3: Business Review
BUS I N E S S REVIEW K EN NY D I CH T ER CHAI RMAN & CE O
Slide 4: Powering a marketplace with millions of consumers and thousands of aircraft
WHEELS UP CONNECTS FLYERS TO PRIVATE AIRCRAF T – AND ONE ANOTHER DELIVERING E XCEPTIONAL , PERSONALIZED E XPERIENCES POWERING A MARKETPL ACE WITH... ...MILLIONS OF ...TENS OF CONSUMERS THOUSANDS OF AIRCRAF T WHEELS UP 4
Slide 5: Quarter Highlights
QUARTER HIGHLIGHTS REVENUE (IN THOUS ANDS) Q2 2021 $285,580 Y/Y GROWTH Q2 2020 $134,331 113% ACTIVE MEMBERS Q2 2021 10,515 Y/Y GROWTH Q2 2020 7,172 47% LIVE FLIGHT LEGS Q2 2021 18,234 Y/Y GROWTH Q2 2020 7,404 146% WHEELS UP 5
Slide 6: Leading Demand Generation
LE ADING DEMAND GENERATION TOTA L AV IAT I O N SO LU T I O N D I G I TA L CO N V EN I EN CE EL E VAT ED L I FE ST YL E ACCESS TO ONE OF THE WORLD’S L ARGEST SE AMLESS CONTROL OF MEMBERSHIP WHEEL S DOWN PROGRAMMING OFFERING COMBINED FLEE TS OF OWNED, LE A SED, E XPERIENCE, INCLUDING CUT TING-EDGE E X
Slide 7: Operational Update
OPERATIONAL UPDATE I N D UST RY T R EN DS WH EELS UP E X E CU T I O N � D E M A N D R E C O V E R Y FA S T E R T H A N E X P E C T E D � IMPROVING FORECASTING TOOLS Ŋ T I G H T N E S S I N S U P P LY � G U A R A N T E E D R AT E P R O G R A M (G R P ) � SE VERAL PROVIDERS LIMITING NEW CUSTOMERS � I
Slide 8: Recent Initiatives
RECENT INITIATIVES NEW MEMBERSHIP BENEFITS A B ER CR O M B I E & K EN T S EL E CT I O N O F B EN EFI T S B EN EFI T S AT N E T W O R K O F NAT I O NWI D E E XCLUS I V E E X PER I EN CE S WI T H P O R SCH E WA L D O R F A STO R IA H OT ELS FI N E D I N I N G NEW BUSINESS INITIATIVES FOCUS ON DEI J E
Slide 9: Marketplace
MA R K E T PL ACE S V I NAYAK H E G D E CH I EF MAR K E T PL ACE O FFI CER
Slide 10: Core/Business Customer Cohort Trends
CORE/BUSINESS CUSTOMER COHORT TRENDS (1) REVENUE PER MEMBER IS MUCH HIGHER AMONG NEWER MEMBERS (2020 AND 2021 COHORTS) CU M UL AT I V E FL I G H T R E V EN UE PER M E M B ER 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Q UART ER S S I N CE J O I N I N G 20 1 8 Q 1 20 1 8 Q 2 20 1 8 Q 3 20 1 8 Q 4 20 1 9 Q 1 20 1
Slide 11: The Complete Industry Platform
THE COMPLETE INDUSTRY PL ATFORM FLIGHT TRACKING SAFE T Y VE T TING RE AL-TIME GLOBAL TRANSACTIONAL AIRCRAF T POSITIONING REGUL ATORY RISK ANALYSIS HIGH FIDELIT Y INVENTORY / FLEET FEASIBILIT Y TRIP SERVICES FLIGHT PL ANNING AVA I L A B I L I T Y CATERING, HOTEL S, RE AL-TIME FLIGHT GROUND TIMES AND
Slide 12: Quarter Results & 2021 Guidance
Q UA RT ER R E SULT S & 202 1 G UI DA N CE ER I C J ACO B S CH I E F FI N AN CI AL O FFI CER
Slide 13: Quarter Revenue Breakout & Operating Highlights
QUARTER REVENUE BRE AKOUT & OPERATING HIGHLIGHTS ( I N T H O US A N DS) THREE MONTHS ENDED JUNE 30, 2021 2020 % CHANGE Flight $ 212,660 $ 83,655 154 % Membership 16,188 13,123 23 % Aircraft management 49,955 34,226 46 % Other 6,777 3,327 104 % TOTAL $ 285,580 $ 134,331 113 % ACTIVE MEMBERS LIVE FLIG
Slide 14: Quarter Financial Highlights
QUARTER FINANCIAL HIGHLIGHTS (1) REVENUE Y/Y GROWTH 113% Q2 2021 $285,580 Q2 2020 $134,331 ADJUSTED EBITDA ADJUSTED EBITDA MARGIN Q2 2021 $(8,479) Q2 2021 (3.0)% Q2 2020 $(16,031) Q2 2020 (11.9)% CAP EX CAP EX / REVENUE Q2 2021 $5,587 Q2 2021 2.0% Q2 2020 $2,307 Q2 2020 1.7% NOTES: 1. IN THOUSANDS W
Slide 15: Pro Forma Summary Balance Sheet
PRO FORMA SUMMARY BAL ANCE SHEET (1) AS OF JUNE 30, 2021 ( I N T H O US A N DS) CASH AND CASH EQUIVALENT S $ 160,646 Gross proceeds from business combination 656,121 Transaction costs (69,760) Debt payment (2) (182,457) Release of restricted cash held for long-term debt 10,000 PRO FORMA CASH AND CAS
Slide 16: 2021 Full Year Guidance
2021 FULL YE AR GUIDANCE REVENUE ADJUSTED EBITDA $1.05 TO $1.1 BILLION $(40) TO $(50) MILLION NET LOSS CAP EX $(145) TO $(160) MILLION $25 TO $35 MILLION WHEELS UP 16
Slide 17: Appendix & Supplemental Financial Information
A PPEN D IX & SUPPL E M EN TA L FI NA N CIA L I N F O RMAT I O N
Slide 18: Reconciliations of Non-GAAP Financial Measures – Contribution and Contribution Margin
RECONCILIATIONS OF NON-GAAP FINANCIAL ME ASURES – CONTRIBUTION AND CONTRIBUTION MARGIN (1) ( I N T H O US A N DS) WE INCLUDE CONTRIBUTION AND CONTRIBUTION MARGIN A S THREE MONTHS SIX MONTHS SUPPL E M EN TA L M E A SUR E S F O R A S S E S S I N G O PER AT I N G ENDED JUNE 30, ENDED JUNE 30, PER F O R
Slide 19: Reconciliations of Non-GAAP Financial Measures – Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL ME ASURES – ADJUSTED EBITDA (1) ( I N T H O US A N DS) WE INCLUDE ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN THREE MONTHS SIX MONTHS AS SUPPLEMENTAL ME ASURES FOR ASSESSING OPERATING ENDED JUNE 30, ENDED JUNE 30, PERFORMANCE IN CONJUNCTION WITH THE REL ATED GAAP
Slide 20: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (1) THREE MONTHS ENDED JUNE 30, 2021 ( I N T H O US A N DS) ACQUISITION CORPORATE EQUITY-BASED PUBLIC COMPANY AND INTEGRATION HEADQUARTERS GAAP AS REPORTED COMPENSATION READINESS EXPENSE EXPENSE RELOCATION EXPENSE NON-GAAP Revenue: $ 285,58
Slide 21: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (1) THREE MONTHS ENDED JUNE 30, 2020 ( I N T H O US A N DS) CORPORATE EQUITY-BASED ACQUISITION AND HEADQUARTERS COMPENSATION PUBLIC COMPANY INTEGRATION RELOCATION COVID-19 RESPONSE CARES ACT GRANT GAAP AS REPORTED EXPENSE READINESS EXPENSE
Slide 22: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (1) SIX MONTHS ENDED, JUNE 30, 2021 ( I N T H O US A N DS) ACQUISITION CORPORATE EQUITY-BASED PUBLIC COMPANY AND INTEGRATION HEADQUARTERS GAAP AS REPORTED COMPENSATION READINESS EXPENSE EXPENSE RELOCATION EXPENSE NON-GAAP Revenue: $ 547,237
Slide 23: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (1) SIX MONTHS ENDED JUNE 30, 2020 ( I N T H O US A N DS) CORPORATE EQUITY-BASED ACQUISITION AND HEADQUARTERS COMPENSATION PUBLIC COMPANY INTEGRATION RELOCATION COVID-19 RESPONSE CARES ACT GRANT GAAP AS REPORTED EXPENSE READINESS EXPENSE EX
Slide 24: Income Tax Insights
INCOME TAX INSIGHTS POST-TRANSACTION: THE COMPANY IS SUBJECT TO U.S. FEDERAL AND STATE CORPORATE INCOME TAX . • The Company anticipates generating net operating losses (“NOLs”) in the near term that may be carried forward indefinitely OL carryforwards may be utilized to offset 80 percent of taxable
Slide 25: Pro Forma Equity Capitalization
PRO FORMA EQUIT Y CAPITALIZATION E Q U I T Y C A P I TA L I Z AT I O N AT C LO S I N G O N J U LY 1 3 , 2 0 2 1 (SHARES IN THOUSANDS) Wheels Up Class A common stock outstanding – basic and diluted(1) 240,625 Stock options(6) 16,267 Profits interests(5)(6) 29,111 Restricted interests(6) 4,662 Wheels
Slide 26: Q3 2020 & Q4 2020 Revenue Breakout
Q3 2020 & Q4 2020 REVENUE BRE AKOUT ( I N T H O US A N DS) THREE MONTHS THREE MONTHS ENDED ENDED SEPTEMBER 30, 2020 DECEMBER 31, 2020 Flight $ 140,280 $ 151,849 Membership 13,345 14,834 Aircraft management 38,402 39,314 Other 2,754 3,776 TOTAL $ 194,781 $ 209,773 WHEELS UP 26
Slide 27: Q3 2020 & Q4 2020 Operating and Financial Highlights
Q3 2020 & Q4 2020 OPERATING AND FINANCIAL HIGHLIGHTS (1)(2) THREE MONTHS THREE MONTHS ENDED ENDED SEPTEMBER 30, 2020 DECEMBER 31, 2020 Revenue $ 194,781 $ 209,773 Net income (loss) $ 20,548 $ (34,114) Adjusted EBITDA $ (8,026) $ (11,252) Contribution $ 23,443 $ 21,630 Active Members 7,864 9,212 Acti
Slide 28: Reconciliations of Non-GAAP Financial Measures – Contribution and Contribution Margin
RECONCILIATIONS OF NON-GAAP FINANCIAL ME ASURES – CONTRIBUTION AND CONTRIBUTION MARGIN (1) ( I N T H O US A N DS) WE INCLUDE CONTRIBUTION AND CONTRIBUTION MARGIN A S THREE MONTHS THREE MONTHS SUPPL E M EN TA L M E A SUR E S F O R A S S E S S I N G O PER AT I N G ENDED ENDED PER F O RMA N CE I N CO N
Slide 29: Reconciliations of Non-GAAP Financial Measures – Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL ME ASURES – ADJUSTED EBITDA (1) ( I N T H O US A N DS) WE INCLUDE ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN THREE MONTHS THREE MONTHS AS SUPPLEMENTAL ME ASURES FOR ASSESSING OPERATING ENDED ENDED PERFORMANCE IN CONJUNCTION WITH THE REL ATED GAAP SEPTEMBER 30, 2
Slide 30: Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA (1) THREE MONTHS ENDED SEPTEMBER 30, 2020 ( I N T H O US A N DS) CORPORATE EQUITY-BASED ACQUISITION AND HEADQUARTERS COMPENSATION PUBLIC COMPANY INTEGRATION RELOCATION COVID-19 RESPONSE CARES ACT GRANT GAAP AS REPORTED EXPENSE READINESS EXP
Slide 31: Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA (1) THREE MONTHS ENDED DECEMBER 31, 2020 ( I N T H O US A N DS) CORPORATE EQUITY-BASED PUBLIC COMPANY ACQUISITION AND HEADQUARTERS COVID-19 GAAP AS COMPENSATION READINESS INTEGRATION RELOCATION RESPONSE CARES ACT GRANT CREDIT LOSS ON REPO
Slide 32: Definitions of Key Metrics and Non-GAAP Financial Measures
DEFINITIONS OF KEY METRICS AND NON-GAAP FINANCIAL ME ASURES ACTIVE MEMBERS: We define Active Members as the number BLOCK/FUND PROGRAMS: Pre-purchased amounts of of Connect, Core, and Business membership accounts that dollar-denominated credits that can be applied to future costs generated membership