Allegiant Travel Company · NASDAQ:ALGT
Allegiant Travel — Q4 2019 Earnings Presentation
20 slides from Allegiant Travel's earnings presentation, Jan 29, 2020
Slide 1: Management Presentation
Management Presentation As of 4Q19 Earnings Call 1/29/2020
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 uncertai
Slide 3: Advantages over the typical carrier
Advantages over the typical carrier Leisure customer Built to be different • Will travel in all economic conditions • Vacations are valued – price dependent Leisure customer Small/medium cities Underserved markets • Filling a large void Little competition • Increasing opportunity - industry rest
Slide 4: A very large niche
A very large niche Based on current published schedule through Nov 17, 2020 512 routes, 97 small/medium cities, 30 leisure destinations Orange circles = destinations 4
Slide 5: Little competition
Little competition Historic level of non-competitive routes 418 363 314 309 294 255 221 207 168 181 161 136 114 98 94 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 Routes without competition Routes with competition Competitors – overlapping routes Legacy carriers 78 Bran
Slide 6: Low frequency model
Low frequency model Leisure = seasonality Small cities = low frequency(1) Avg. block hours/AC/day Weekly market frequency 90.0% 10.5 80.0% Peak Off peak 9.5 70.0% System block hours/AC/day % of total departures 60.0% 8.5 50.0% 7.5 40.0% 30.0% 6.5 20.0% 5.5 10.0% 0.0% 4.5 2x 3x 4x 5x or greater Jan F
Slide 7: Low costs even with low utilization
Low costs even with low utilization Full year 2019 CASM ex fuel vs daily aircraft 9.0 utilization 8.5 8.5 JBLU 8.0 CASM ex fuel (cents) 8.0 ALK 7.5 7.0 6.5 6.2 6.0 ALGT 5.5 5.5 SAVE 5.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 Average daily aircraft utilization – LTM (block hours per day) As of
Slide 8: Revenue growth every quarter through good times and bad…
Brent per bbl: Decline: Growth / YoY GDP Crude Price $200 $300 $400 $500 $600 $100 $0 ($mm) 0.9% $65.87 $84 '07 Q1 2.3% $70.68 $89 2.2% $81.66 $86 '07 Q3 2.5% $95.98 $101 Source: Company filings. (2.3%) $101.58 $133 '08 Q1 2.1% $140.00 $132 (2.1%) $100.64 $117 '08 Q3 ___________________________ (8.4
Slide 9: … With strong EBITDA margins
Brent per bbl: Decline: Growth / YoY GDP Crude Price $100 $120 $140 $160 $0 $20 $40 $60 $80 ($mm) 0.9% $65.87 $17 '07 Q1 2.3% $70.68 $19 2.2% $81.66 $14 '07 Q3 2.5% $95.98 $11 Source: Company filings. (2.3%) $101.58 $19 '08 Q1 2.1% $140.00 $11 (2.1%) $100.64 $14 '08 Q3 ___________________________ (8
Slide 10: Fleet plan
Fleet plan 140 Aircraft by seat count Total Total 125 120 Total 115 15 Total 105 15 100 Total 91 89 26 Total AC count EOY 80 20 76 30 72 62 10 24 60 41 22 24 40 20 20 37 37 38 38 38 32 0 2017 2018 2019 2020E 2021E 2022E MD80 (166 seats) A319 (156 seats) A320 (186 seats) A320 (177 seats) Estimated ai
Slide 11: Capex & Airbus heavy maintenance
Capex & Airbus heavy maintenance Airline capital expenditures ($ millions) $600 Total $505 Total Total $500 $395 $410 91 Total $400 $320 67 110 125 Millions USD $300 75 115 75 $200 347 75 $100 210 210 130 $0 2019 2020E 2021E 2022E Aircraft CAPEX Other CAPEX Airbus heavy maintenance Estimates are bas
Slide 12: Sunseeker Resorts
Sunseeker Resorts ■ Resort • 510 hotel rooms • 189 suites ■ Robust food and beverage ■ Large ballroom space ■ 3,000 ft. seawall w public promenade ■ 15 min drive from airport 12
Slide 13: Unique business model and results
Unique business model and results Highly resilient and profitable • Profitable last 68 quarters (1) • 2019 EBITDA $520mm (2) • 2019 Return on Equity 29%(2) Strong balance sheet • Rated BB- and Ba3(3) • Adjusted debt/ EBITDAR 2.7x(2) • $45.6mm returned to shareholders 2019 o $85 mm in share repur
Slide 14: Existing guidance - 2020
Existing guidance - 2020 2020 FY EPS $16.50 to $19.00 per share FY 20 airline CASM ex growth (2) to 0% FY 20 ASMs per gallon 82.5 to 83.5 FY 20 interest expense $75mm to $80mm FY 20 capitalized interest $16mm to $19mm FY 20 effective tax rate 23% to 24% FY 20 share count 16.0m FY 20
Slide 15: Sunseeker guidance
Sunseeker guidance Sunseeker Resorts • Project spend to date - $99mm • Total project spend remaining - $371mm • Expected 2020 spend - $325 to $350mm • Expected 2021 spend - $21 to $46mm Guidance subject to change 15
Slide 16: Appendix
Appendix g Travel is our deal,
Slide 17: GAAP reconciliation
GAAP reconciliation EBITDA calculations $mm 2019 2018 2017 2016 2015 Operating income as reported (GAAP) 364.0 243.5 227.2 370.6 371.7 +Depreciation and Amortization 155.9 129.4 121.7 105.2 98.1 =EBITDA 519.9 372.9 348.9 475.8 469.8 + Write down of MD-80 fleet 35.3 =Adjusted EBITDA 519.9 372.9 384.2
Slide 18: GAAP reconciliation
GAAP reconciliation Return on equity $mm 2019 2018 2017 2016 2015 Net Income as reported (GAAP) 232.1 161.8 198.1 220.9 Dec 2019 Dec 2018 Dec 2017 Dec 2016 Dec 2015 Total shareholders equity 883.6 690.3 553.3 473.6 350.0 Return on equity 29% 26% 36% 54% ROE = Net income / Avg shareholders equity 18
Slide 19: Revenue components
Revenue components Average fare - total Average fare - ancillary third party products $5.00 $4.72 $120 $117.96 $118.26 $117.38 $4.34 $4.27 $116.99 $4.08 $110 $3.00 2016 2017 2018 2019 2016 2017 2018 * 2019 Average fare - scheduled service Average fare - ancillary air-related charges $70 $68.47 $67.9
Slide 20: Measured, profitable growth
Measured, profitable growth Total revenue Scheduled ASMs $1,900 16.00 $1,841 15.55 $1,800 15.00 14.34 $1,700 $1,667 14.00 13.03 ASMs - billions $1,600 13.00 $1,504 11.92 USD - mm $1,500 12.00 $1,400 $1,363 11.00 10.24 $1,300 $1,262 10.00 $1,200 9.00 $1,100 8.00 $1,000 7.00 2015 2016 2017 2018 2019 2
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