Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — Q4 2023 Earnings Presentation
19 slides from Wheels Up Experience's earnings presentation, Mar 7, 2024
Slide 1: Fourth quarter 2023 earnings
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation contains certain “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on current expe
Slide 3: George Mattson, Chief Executive Officer
George Mattson Chief Executive Officer
Slide 4: One of the largest diversified providers of global private aviation solutions
Charter One of the largest diversified Programmatic providers of global private aviation solutions in the industry Business Individual Other United States International Notes: 1. Total Flight Transaction Value is a non-GAAP measure. Please see appendix for definitions and reconciliations of non-GAAP
Slide 5: Liquidity and credit facilities
• $350 million credit facility • $40 million additional credit facility • $100 million undrawn revolver from Delta Cash balance up $19 million sequentially from third quarter
Slide 6: Operational highlights and Delta integration
• Added new leadership with a combined over 250+ years of operating experience • Continued strong customer service metrics • Integrated scheduling, pricing, and revenue management • Strong corporate pipeline from integration with Delta Notes: 1. Please see appendix for definition of key metrics
Slide 7: Wheels Up strategy
Wheels Up strategy Lead the industry in reliability Provide unmatched customer flexibility and accessibility Continue to deliver exceptional customer experience UP Wheels Up 7
Slide 8: Todd Smith, Chief Financial Officer
Todd Smith Chief Financial Officer
Slide 9: Three Months Ended December 31 results
Three Months Ended December 31, 2023 2022 $246 $408 $236 $324 1.2% 4.7% $(38) $(44) $384 $586 $724 $1,077 Notes: 1. Please see appendix for explanation of non-GAAP measures. 2. Aircraft Management (ACM) business was divested in September 2023. We do not expect to recognize any significant revenue or
Slide 10: Total liquidity and prepaid block sales
December 31, 2023 Prepaid Block Sales • Cash: $264 million • Increased go-to-market efforts to drive block sales • Undrawn revolver: $100 million across corporate and individual customers Total Liquidity: $364 million Improving profitability • Higher mix of charter and corporate flying • Equipment n
Slide 11: Flight revenue and Total Flight Transaction Value
• 100% of Programmatic flying • 100% of Programmatic flying • Fraction of gross charter value • 100% of charter value Notes: 1. Please see appendix for definitions and reconciliations of non-GAAP financial measures and definitions of key metrics. 2. For the year ended December 31, 2023, includes all
Slide 12: Priorities and liquidity
• Leverage network strengths through regionalization • Balance flying between programmatic & charter • Increase mix of corporate demand • Improve asset utilization & efficiency • Additional cost reductions executed • Continuing focus on streamlining operations • Total liquidity & reserve deposit: $3
Slide 13: George Mattson, Chief Executive Officer
George Mattson Chief Executive Officer
Slide 14: Appendix & supplemental financial information
gS” Appendix& supplemental financial information
Slide 15: Non-GAAP measure reconciliation
• Used to understand our ability to achieve profitability over time through scale and leveraging costs; and • Provides useful information for historical period-to- period comparisons of our business and to identify trends. Notes: 1. Consists of expenses incurred associated with acquisitions, as well
Slide 16: Adjusted EBITDA reconciliation
• Used in conjunction with bonus program target achievement determinations, strategic internal planning, annual budgeting, allocating resources and making operating decisions; and, • Provides useful information for historical period-to- period comparisons of our business, as it removes the effect of
Slide 17: Supplemental expense information
Supplemental expense information (in thousands, except percentages) COST OF REVENUE Three Months Ended December 31, 2023 TECHNOLOGY AND DEVELOPMENT SALES AND MARKETING GENERAL AND ADMINISTRATIVE Equity-based compensation expense 830 319 a7 | $ 2,851 3,983 Restructuring charges = = = 2,749 2,749 Atla
Slide 18: Flight revenue reconciliation and notes
Notes: 1. Represents the portion of Flight revenue not attributable to Programmatic Flights. 2. Please see appendix for definitions of key metrics and explanation of non-GAAP measures.
Slide 19: Definitions of key metrics
ACTIVE MEMBERS: We define Active Members as the number of Connect, Core, and INTERNATIONAL FTV: The sum of total gross spend on flight services by members and Business membership accounts that generated membership revenue in a given period and are customers for any flight that departs or arrives out