Sky Harbour Group Corporation · NYSE:SKYH
Sky Harbour — Q3 2023 Earnings Presentation
22 slides from Sky Harbour's earnings presentation, Nov 14, 2023
Slide 1: 2023 Third Quarter Investor Call
AV I AT I O N INFRASTRUCTURE R E A L E S TAT E 2023 Third Quarter Investor Call November 14th, 2023
Slide 2: Disclaimer
DISCLAIMER General This presentation and information provided at a webcast or meeting at which it is presented (the “Presentation") is for informational purposes only to assist investors, prospective investors and other parties in making their own evaluation with respect to Sky Harbor Group Corporat
Slide 3: Disclaimer: Financial Information; Non-GAAP Financial Measures
DISCLAIMER Financial Information; Non-GAAP Financial Measures Certain financial information and data contained in this Presentation is unaudited and does not conform to Regulation S-X or Regulation G. Accordingly, such information and data may not be included in, may be adjusted in, or may be presen
Slide 4: Presenters
Presenters Tal Keinan Francisco Gonzalez Tim Herr Founder, Chair & CEO CFO Treasurer / VP Finance Michael Schmitt Tori Petro Chief Accounting Officer Senior Finance Associate 3 ©2023 Sky Harbour Confidential and Proprietary
Slide 5: On Track to Positive Operating Cash Flow on a Consolidated Basis in 2024
On Track to Positive Operating Cash Flow on a Consolidated Basis in 2024 Cost of Construction and Constructed Assets Quarterly Quarterly Revenues Revenues Operating Expenses (in millions) (in (inmillions) millions) (in millions) 2 2 3 140 1.8 1.8 120 2.5 1.6 1.6 1.4 100 1.4 2 1.2 1.2 80 11.5 1 60 0.
Slide 6: Scale: In pursuit of high-quality square footage
Scale: In pursuit of high-quality square footage Rentable Square Footage In Development and Under Exclusive Rentable Square Footage in Operation Ground Lease Negotiation (total square feet) (total square feet) 2,000,000 3,000,000 1,800,000 2,500,000 1,600,000 1,400,000 2,000,000 1,200,000 1,000,000
Slide 7: Business Updates
Business Updates • Site Acquisition • Development – Manufacturing and Construction • Leasing • Airfield Operations • Market Landscape • Lessons Learned • Business Strategy 6 ©2023 Sky Harbour Confidential and Proprietary
Slide 8: Site Acquisition
Site Acquisition Long Cycle Time; High Throughput • Sites in Operation • SGR, BNA, OPF • Sites in Development • DVT, APA, ADS • Sites in Permitting • PWK • New ground leases expected in Q4: 2 • New ground leases expected in H1: 3 7 ©2023 Sky Harbour Confidential and Proprietary
Slide 9: Development Manufacturing Construction
Development Manufacturing Construction Moving from EFFECTIVE to EFFICIENT RapidBuilt • Integration update • Ambition for RapidBuilt Expected Estimated Cost Rentable Facility Completion Date ($mm) Square Footage In Operation SGR Q4 2020 $10.5 66,080 BNA Q4 2022 $25.7 149,069 OPF I Q1 2023 $32 160,092
Slide 10: Leasing
Leasing From experimental concept to clear value proposition Current occupancy • SGR – 94% • BNA – 86.4% • OPF – 62.5% First member evangelists Articulation of value proposition Rising rental rates and re-ups 9 ©2023 Sky Harbour Confidential and Proprietary
Slide 11: Airfield Operations
Airfield Operations Delivering a unique, truly -differentiated offering • Safety report • Service gaps report • Tenant feedback • New services 10 ©2023 Sky Harbour Confidential and Proprietary
Slide 12: Market Landscape
Market Landscape Ta i l w i n d s p r e v a i l Demand growth • OEM deliveries + • Useful airframe life growth = • Hangar deficit growing more acute each year Competitive landscape • FBO consolidation • Airport demand for hangar versus transient services Validation and recognition of Sky Harbour Mod
Slide 13: Lessons Learned
Lessons Learned Transitioning from prototype to production Site Acquisition • Target throughput versus cycle-time • Articulation of Sky Harbour value proposition to airport sponsors • Team: Veteran edge Integration Function Development • Effective integration of manufacturing and construction requir
Slide 14: Our Cash is Earning Higher Rates than the Cost of our Debt
Our Cash is Earning Higher Rates than the Cost of our Debt Series 2021 Bond Debt Service (in millions) $130,000,000 14 U.S. Treasuries and Cash As of September 30th 12 10 8 $97,015 6 4 2 0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2054 Bond Principal Bond Interest (millio
Slide 15: New PIPE Equity Provides Growth Capital for Next Several Campuses
New PIPE Equity Provides Growth Capital for Next Several Campuses Size $42,810,000* (first close) Shares 6,586,154 Class A shares 1,141,600 Warrants Price per Share ~$6.50 (inclusive of warrant coverage) Purchaser Funds managed by Altai Capital Investors through Altai include 8VC, RAGA Partners and
Slide 16: Illustrative Scaling of Business and Unit Economics
Illustrative Scaling of Business and Unit Economics Airfields 12 20 50 Total Capital $600,000,000 $1,100,000,000 $3,000,000,000 Assumptions Total Debt $420,000,000 $792,000,000 $2,400,000,000 • Average airfield development cost projected to grow over time from current levels at CPI Leverage 70% 72%
Slide 17: SkyH Capital is Fully Funded for the "2021 PABs Project" as Amended
SkyH Capital is Fully Funded for the “2021 PABs Project” as Amended $113,500,000 U.S. Treasuries and Cash as of September 30th at Sky Harbour Capital LLC $8,417 $11,962 $80,156 $4,047 $2,459 $33,392 $86,661 Construction Capitalized Interest Debt Service Reserve Cash Treasuries Ramp Up Reserve Revenu
Slide 18: Operating Cash Flow Turned Positive at Sky Harbour Capital
Operating Cash Flow Turned Positive at Sky Harbour Capital Cost of Construction and Constructed Assets Quarterly Revenues Operating Expenses (in millions) (in millions) (in millions) 2 140 3 1.8 120 2.5 1.6 1.4 100 2 1.2 80 1 1.5 60 0.8 40 1 0.6 0.4 20 0.5 0.2 0 0 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
Slide 19: Permanent Capital: Key to Prudent Funding of Growth Capital Opportunistically
Permanent Capital: Key to Prudent Funding of Growth Capital Opportunistically Internally Generated Cash Flow SKYH Holding Company Equity • In lieu of a portion or all dividends in the • Public ATM or marketed offerings early years • PIPEs Growth Capital Project level Partnerships with Private Activi
Slide 20: Q3 in Pictures: The Sky Harbour Team in Action
Q3 in Pictures: The Sky Harbour Team in Action 19 ©2023 Sky Harbour Confidential and Proprietary
Slide 21: Business Strategy
Business Strategy Site Acquisition: Current position good Development: • Effective to Efficient • HR scale-up Member Leasing: Brand strategy roll-out including member-ambassadors Airfield Operations: • Near term: Continued focus on #1 safety and efficacy • Medium term: Roll-out third-party services
Slide 22: A Specialized Real Estate Platform – Question & Answer Period
AV I AT I O N INFRASTRUCTURE R E A L E S TAT E A Specialized Real Estate Platform ____________________________________ Question & Answer Period ©2023 Sky Harbour Confidential and Proprietary 21