Flyexclusive, Inc. · AMEX:FLYX
Flyexclusive — Investor Day (June 2023)
41 slides from Flyexclusive's investor day presentation, Jun 15, 2023
Slide 1: Analyst Day
ANALYST DAY June 15, 2023 1
Slide 2: Disclaimers and Other Important Information
D I S C L A I M E R S A N D O T H E R I M P O R T A N T I N F O R M A T I O N This presentation (this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential acquisition by EG Acquisitio
Slide 3: Financial Information
F I N A N C I A L I N F O R M A T I O N The financial and operating forecasts and projections contained in this Presentation represent certain estimates of LGM Enterprises as of the date thereof. LGM Enterprises’ independent public accountants have not examined, reviewed or compiled the forecasts or
Slide 4: Analyst Day 2023 – Agenda
ANALYST DAY 2023 – AGENDA 1:00 P.M. – WELCOME AND INTRODUCTION CASON MADDISON, SVP 1:05 P.M. – WHO WE ARE JIM SEGRAVE, FOUNDER & CEO 2:00 P.M. – BREAK 2:15 P.M. – FINANCIAL OVERVIEW BRENT SMITH, CFO 2:45 P.M. – BREAK 2:50 P.M. – HEAR FROM THOSE WHO EXECUTE PANEL DISCUSSION 3:20 P.M. – Q&A 4
Slide 5: Proposed Transaction Summary
PROPOSED TRANSACTION SUMMARY Overview flyExclusive (the “Company”) is an established operator in the private aviation sector flyExclusive entered into an equity purchase agreement with EG Acquisition Corp. (NYSE:EGGF) on October 17, 2022 EG Acquisition Corp. is a Special Purpose Acquisition Co
Slide 6: Executive Summary
explained I. EXECUTIVE SUMMARY 6
Slide 7: World-Class Aviation Partnership
WORLD-CLASS AVIATION PARTNERSHIP Decades of aviation experience and entrepreneurial excellence Experienced aviation entrepreneur and operator Jim Segrave Built Segrave Aviation and sold to Delta Private Jets CEO President of Delta Private Jets 2010 – 2013 Gregg Hymowitz CEO & Director Founde
Slide 8: SPAC Sponsorship
SPAC SPONSORSHIP Experienced sponsors with significant private-to-public / cross-over investment history, including specialized aviation knowledge 25+ year investment history with combined over ~$19 billion deployed to more than 250 investments across various industries and geographies EnTrust G
Slide 9: SPAC Transaction
SPAC TRANSACTION Key points of differentiation Sponsor’s Financial Stake 100% Initial $6.5M of SPAC IPO risk capital not syndicated and held 100% by ETG and GMF Sponsor’s Founder Share 3 YEARS Initial stockholders will not transfer, assign, or sell founder shares or warrants Lock Up Period Board Inv
Slide 10: Growing TAM with Favorable Dynamics
GROWING TAM WITH FAVORABLE DYNAMICS A large, untapped user base with potential for meaningful adoption exists Industry Drivers Private Aviation TAM by Household Net Worth (“HHNW”) Landscape Shift in Air Travel from Commercial to Private Potential TAM expected to grow to more than $43 billion drive
Slide 11: Company Timeline
COMPANY TIMELIME In seven years, flyExclusive has become the fifth largest operator YTD 2023 Top U.S. Private Jet Operators(1) Rank Company Hours Fractional 3Q 23 1 NetJets (2) 210,818 Sky Night Interiors 1Q 20 4Q 20 Paint Repair 2 Flexjet 71,812 Jet Club 2Q 21 Center MRO(2) 2Q 23 2Q 20 3Q 21 3 Whee
Slide 12: Company Size and Scope
COMPANY SIZE AND SCOPE “Floating Fleet” model with 100% operational control Operations Overview Headquartered in Kinston, North Carolina Fleet of 91 aircraft as of 4Q 2022 Currently, the Company has approximately 800 employees Operations centrally located within two flight hours of approxima
Slide 13: Financial Snapshot
FINANCIAL SNAPSHOT Positioned for growth through fleet expansion and vertical integration Core Business Metrics Total Revenue 2024E EBITDA FY ’19A-’24E Margin CAGR 39.4% 10.3% 2024E $53.8m (1) EBITDA Industry-leading revenue growth and margins driving profits Notes: (1) 2024E represents year-end est
Slide 14: Organic Growth
ORGANIC GROWTH Consistent revenue and fleet expansion since inception despite market fluctuations Annual Revenue and Fleet Size ($ in millions) Revenue ’19A – ’24E CAGR 39.4% Light Super-Mid Fleet Size ’19A – ’24E CAGR 23.1% $521 Mid Heavy $367 Revenue $320 127 $208 110 $99 $121 91 78 63 45 2019A 20
Slide 15: Company Charter Revenue Mix
COMPANY CHARTER REVENUE MIX Evolution of diversified charter revenue and committed demand 2019A 2020A 2021A 2022A 2023E 2024E 5% 4% 5% 3% 18% 11% 5% 5% 29% 24% 28% 6% 2% 39% 39% 8% 1% 8% 1% 10% 58% 24% 42% 95% 86% 7% 36% Contractually Committed Demand % of Total: 5% 9% 37% 70% 71% 61% Legend GRP Who
Slide 16: Investment Highlights
INVESTMENT HIGHLIGHTS Proven Operator 1 World-class private aviation executive who has founded, operated, and sold a previous business to Delta Air Lines Unique Business Model 2 Diversified customer channels, vertically integrated operations, and optimized asset utilization Clear Growth Trajecto
Slide 17: Proven Operator
PROVEN OPERATOR I. EXECUTIVE SUMMARY 17
Slide 18: Market Capture
MARKET CAPTURE Taking share at an accelerated pace within established growing market flyExclusive Penetration of Private Jet Charter Market ($ in millions) Market ’19A – ’24E CAGR 2.6% flyExclusive Charter Revenue (1) flyExclusive ’19A – ’24E CAGR 38.0% 2.6% Other U.S. Private Jet Charter Revenue %
Slide 19: Keys to Service and Returns
KEYS TO SERVICE AND RETURNS flyExclusive’s unique operating model positions it for continued success Key Differentiators flyExclusive’s Retail Customer to Aircraft Ratio 14.3 Vertical Integration 11.3 7.9 Significant investment to build competitive moat 5.3 1,810 723 1,239 411 2021A 2022A 2023E 20
Slide 20: Where We Are Today
WHERE WE ARE TODAY flyExclusive’s vertical integration investments yield results across the value chain INVESTMENT YIELD • Consistent branding & pilots ~800 SERVICE • Jet Club member retention of 90%+ PROFESSIONALS • 99%+ of customers flown on flyExclusive fleet • Customer / aircraft discipline mini
Slide 21: Comparison to Major Competitors
COMPARISON TO MA JOR COMPETITORS Optimal business model with key differentiators Key Competitors Asset Growth Aircraft Acquisition Operator Acquisition Customer Fulfillment (Affiliate Lift) 99%+ on flyExclusive Fleet 3rd Party Reliance EBITDA Generation Positive Inconsistent and / or Negative Aircra
Slide 22: Product Offerings
PRODUCT OFFERINGS I. EXECUTIVE SUMMARY 22
Slide 23: Jet Club
JET CLUB Direct, sustainable customer base with Y-o-Y membership growth of 85% (’21A-’22A) Overview Active and Projected Members Launched in May ‘20, Jet Club offers non-refundable, multi-tiered membership options 1,328 Daily rates subject to an annual increase 968 Hourly rates increased annua
Slide 24: Fractional Ownership
FRACTIONAL OWNERSHIP Highly profitable, capital efficient program to complete customer offerings Summary Program Benefits Fractional program targets private travelers who fly 50 - 100 hours per year Customers purchase a share of a new aircraft (up to 16 owners per plane) Company realizes a pro
Slide 25: Partnership
PARTNERSHIP Provides valuable service to owners while cost-effectively growing the fleet Winning Long-Term Partnerships flyExclusive purchases and upfits aircraft, then sells at a premium while retaining control flyExclusive assumes responsibility for maintenance and operations via a triple net
Slide 26: Wholesale and Guaranteed Revenue Program
WHOLESALE AND GUARANTEED REVENUE PROGRAM Optimize revenue and fleet positions Overview Wholesale is typically sold within 3 days of flight flyExclusive utilizes Wholesale to maximize hours and fleet utilization Wholesale serves as a resource for charter brokers and smaller fleet operators Gu
Slide 27: Product Offering Summary
PRODUCT OFFERING SUMMARY Differentiated platform with multiple growth channels CUSTOMER TYPE ANNUAL FLIGHT HOURS 2024E REVENUE MIX (1) JET CLUB 20 – 50 42% FRACTIONAL 50 – 100 11% PARTNERSHIP 100 – 150+ 6% WHOLESALE GRP VARIABLE 41% Contractual Demand Non-committed Demand Note: (1) Charter revenue e
Slide 28: Competitive Environment and Differentiators
COMPETITIVE ENVIRONMENT AND DIFFERENTIATORS I. EXECUTIVE SUMMARY 28
Slide 29: In-House Maintenance
IN-HOUSE MAINTENANCE Extensive investments in maintenance, paint, interiors, and avionics MRO Benefits On-site Infrastructure 24/7 100,000+ sq ft of in-house 24/7 operations ~3x the Operations maintenance, interior, and paint MRO output facilities Perform repairs 48,000 sq ft hangar complete
Slide 30: Pilot Training
PILOT TRAINING “Build versus buy” strategy to address the pilot training industry challenge PILOT TRAINING CENTER On-campus pilot training facilities will remove one of the ON-CAMPUS greatest bottlenecks to growth within the aviation industry FACILITIES Training in Kinston builds company culture
Slide 31: Customer Experience
CUSTOMER EXPERIENCE Hitting high expectations consistently requires experience and infrastructure 1 Top 5%: ARGUS Platinum + Wyvern Wingman Certification 1 2 Safety Fleet 2 23% 5-year Fleet Growth CAGR 5 3 3 70% of Scheduled Maintenance In-House Interiors Maintenance 4 100% of Fleet Painted Internal
Slide 32: Why flyExclusive Wins
WHY FLYEXCLUSIVE WINS Focus on executing growth with operational control Service excellence and consistency drive everything Vertical Reliable and repeatable service execution is aligned with cost and return management Integration Value is created simultaneously for customers, shareholders & f
Slide 33: Financial Overview
FINANCIAL OVERVIEW I. EXECUTIVE SUMMARY 33
Slide 34: Revenue and Adjusted EBITDA Summary
REVENUE AND ADJUSTED EBITDA SUMMARY Revenue and Adjusted EBITDA Breakout Charter rates and programs ($ in millions) matched to customer’s needs Revenue Adjusted EBITDA $521 $54 Pricing designed so that each aircraft model generates cash $367 Improvement in margin results $320 $32 from continue
Slide 35: Revenue Forecast Breakdown
REVENUE FORECAST BREAKDOWN Fleet growth with pre-committed demand and member growth ($ in millions) $521 Fleet growth 2023 and 2024 assume onboarding of jets similar to history (mid teens / year) Fleet growth will be driven $367 primarily through fractional program $320 Fleet growth deliberate
Slide 36: Deliberate Growth
DELIBERATE GROWTH Diversified charter revenue with growth tied to demand CHARTER REVENUE MIX – 2024E (1) Jet Club Program growth underwritten 60%+ Contractually Committed Demand against fleet capacity Disciplined customer per aircraft ratio managed against capacity, 39.2% with excess to serve de
Slide 37: Transaction Summary
TRANSACTION SUMMARY Highly attractive valuation for an established operator in the private aviation sector Total cash investment of up to $310 million(1) Capitalization Current owners will retain 61.7% ownership at close(1) Share Price $10.0 Transaction is expected to close in 3Q 2023 Pro Forma S
Slide 38: Summary P&L
SUMMARY P&L Continued focus on vertical integration and scaling flight offerings Historical and Projected Income Statement ($ in 000s) * Adjusted EBITDA is a non-GAAP financial measure 2019A 2020A 2021A 2022A 2023E 2024E We include Adjusted EBITDA as a supplemental measure for Revenue assessing op
Slide 39: Panel – Hear From Those Who Execute
PANEL – HEAR FROM THOSE WHO EXECUTE I. EXECUTIVE SUMMARY 39
Slide 40: Part of a Larger Cause
PART OF A LARGER CAUSE Carbon Offset Program Community Partnerships • Jet Club Members and Partners given the • One of the largest and fastest growing employers in the region ability to offset their flight emissions by • Provide volunteers to the local food pantry and animal shelter funding verified
Slide 41: Question & Answer Session
QUESTION & ANSWER SESSION I. EXECUTIVE SUMMARY 41