Allegiant Travel Company · NASDAQ:ALGT
Allegiant Travel — Investor Presentation (August 2021)
39 slides from Allegiant Travel's investor presentation, Aug 5, 2021
Slide 1: Sunseeker Resort Charlotte Harbor, August 2021
ai SUNSEEKER RESORT Sunseeker Resort Charldtas Harbor * Port Charlotte, FL : August 2021
Slide 2: 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 uncertainties. Forward-looking state
Slide 3: Agenda
Allegiant Resilience Airline Growth Balance Sheet Project Status Financing Development Budget Major Milestones Southwest Florida Recovery Pro Forma Projections Strategic Advantages
Slide 4: State of the Airline
STATE OF THE STATE
Slide 5: % Change in Departures vs 2019
% Change in Departures vs 2019 2020 (Actual), 2021 (Scheduled) Source: Schedules (Diio), T-100 BTS (100%) (80%) (60%) (40%) (20%) 0% 20% Jan '20 Mar '20 May '20 Jul '20 Sep '20 Nov '20 Jan '21 Mar '21 May '21 Jul '21 % C h a n g e f ro m 2 0 1 9 44% 45% 51% 56% 57% 57% 58% 61% 63% 64% 66% 82% 2020 D
Slide 6: FY2020 Revenue YoY and EBITDA Margin vs Industry
FY2020 – Revenue YoY (46%) (53%) (59%) (60%) (62%) (63%) (64%) (65%) (70%) FY2020 – EBITDA Margin1 (29%) (34%) (36%) (42%) (42%) (49%) (54%) (65%) 39B 37B 43B 43B 41B 40B 46B 46B 44B 42B 48B 48B 46B 34B 7B 12B 16B 16B 29B 21% 19% 18% 16% 15% 16% 16% 2% (43%) (76%) (36%) 35% 29% 26% 24% 22% 25% 28% 2
Slide 7: Allegiant's Cash Position and Net Debt Pre-COVID vs Post-COVID
$464M $1,322M 1Q20 2Q21 Allegiant’s Cash Position Pre-COVID vs Post-COVID $1,024M $264M 1Q20 2Q21 Allegiant’s Net Debt Pre-COVID vs Post-COVID 1Cash balance includes $136M NOL tax refunds expected to be received in 2H21 1 1
Slide 8: Allegiant's Cash, Debt and Net Debt
$473M $685M $1,278M $1,558M 2019 2020 2021E 2022E Total Cash $1,423M $1,659M $1,576M $1,824M 949M 974M 298M 266M 2019 2020 2021E 2022E Total Debt Net Debt Allegiant’s Cash Allegiant’s Debt & Net Debt Forecasted to spend all $350M of Sunseeker financing by YE 2022 1Cash balance includes $136M NOL tax
Slide 9: Allegiant's Fleet Plan by Configuration
37 38 38 38 38 38 25 41 62 72 84 93 29 26 15 15 15 15 37 34 35 35 35 35 25 36 54 66 77 92 29 25 19 26 26 26 A320 186 seats A320 177 seats A319 156 seats Allegiant’s Fleet Plan by Configuration Year End 2019-2024E 2019 2020 2021E 2022E 93 105 115 125 93 95 108 127Current Fleet Plan 2019 Fleet Plan 20
Slide 10: Construction Underway on Phase I
Construction Underway on Phase I • Expected Budget: $475M + $5M contingency • Phase I Programming • 785 Keys • Hotel Tower with 512 Keys • Two Suite Towers with 189 Suites (273 Keys) • 16 Food & Beverage Outlets • Rooftop Pool • 55,000+ Sq. Ft. of Meeting & Event Space • Full Service Spa • 7,500 Sq.
Slide 11: Financing
FINANCING
Slide 12: Sunseeker financing approach and Allegiant guarantee
• 2020 Q1 Earnings call – “We will not put any more capital into the project for at least the next 18 months as we deliver on our expectations to have the strongest balance sheet when we come out of this.” • Current state of project limits our optionality & flexibility – minimal interest in a partia
Slide 13: Budget & Timeline
BUDGET & TIMELINE
Slide 14: Development budget and sources and uses of funds
Line Item (000s) Spend-to-Date Total Budget Land $ 31,372 $ 31,417 Preconstruction 855 855 General Construction 78,257 308,058 Architects / Design / Consultants 20,747 22,287 Testing and Inspection 1,138 3,256 Permits and Fees 2,668 7,481 Signage 28 2,310 Furniture, Fixtures & Equipment (FF&E) 15 24
Slide 15: Major Milestones/Timing of Opening
Major Milestones/Timing of Opening SEPTEMBER CONSTRUCTION 4 QTR CONSTRUCTION 202) RESTARTS 2022 FINALIZED TBD SUNSEEKER 2022/23 OPENS JULY - AUGUST PREPARATION | QTR BOOKINGS 2021 2022 OPEN SUNSEEKER RESORT BUDGET & TIMELINE / MAJOR MILESTONES Charlotte Harber 15
Slide 16: Operating the Hotel
OPERATING THE HOTEL
Slide 17: TSA Throughput Florida vs National Average
(100%) (80%) (60%) (40%) (20%) 0% 20% 40% 60% 80% 100% Mar '20 May '20 Jul '20 Sep '20 Nov '20 Jan '21 Mar '21 May '21 T S A T h ro u g h p u t % C h a n g e v s . 2 0 1 9 TSA Throughput Florida vs National Average % Change vs. 2019 Southwest Florida has been Allegiant’s most resilient region since
Slide 18: RevPAR % Change by Region and Location
(45%) (27%) (14%) 7% 7% 12% Small Metro/Town Highway Resort RevPAR % Change by Region 2QTD vs 2019 RevPAR % Change by Location (June 12 – June 19) vs Same Week ‘19 Suburban Airport Urban Source: STR as of June 23, 2021 2QTD as of June 19, 2021
Slide 19: Domestic Seats % Change by Airport
148% 66% 16% 14% 14% 1% (1%) (5%) (13%) (40%) (20%) 0% 20% 40% 60% 80% 100% 120% 140% 160% SRQ RSW PGD PIE Florida Phoenix % C h a n g e 2 0 2 1 v s 2 0 1 9 Domestic Seats % Change by Airport vs Florida & US June/July ‘21 vs 2019 TPA United States Source: Schedules (DIIO) Las Vegas
Slide 20: EBITDA Projections
$35,109 $38,655 $42,487 $44,779 $47,306 Year 1 Year 2 Year 3 Year 4 Year 5 EBITDA Projections (In thousands, pro forma) •Hotel Revenue is net of complimentaries •Hotel Division Expenses include Sales & Marketing •Standard Rooms include the 512 units and the Lockoff portion of the 84 Two Bedroom Suit
Slide 21: Assumed Sunseeker ADR, Revenue and EBITDA scenarios
Assumed Sunseeker ADR Revenue EBITDA EBITDA Margin ADR Comp $252 $ 118,279,358 $ 35,109,137 30% $321 $227 $ 112,177,875 $ 29,007,655 26% $321 $202 $ 106,076,393 $ 22,906,173 22% $321 $176 $ 99,974,911 $ 16,804,691 17% $321 $151 $ 93,873,429 $ 10,703,208 11% $321 $126 $ 87,771,946 $ 4,601,726 5% $321
Slide 22: Customer segments and seasonality
Source: STR (2018), O&D-Sabre (2021), ALGT (2021) 47% 60% 72% 58% 49% 53% 66% 66% 44% 42% 48% 67% 52% 39% 26% 41% 50% 46% 32% 32% 54% 56% 50% 31% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 30% 40% 50% 60% 70% 80% 90% 100% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Group OtherTransient Comp
Slide 23: Demand stimulation and bundling potential
Demand Stimulation • Over 75% of the routes Allegiant flies have no competition, leading to creation of markets rather than increased competition within existing markets • Sunseeker will allow Allegiant to stimulate additional demand, and Allegiant will bring customers to Southwest Florida that othe
Slide 24: Origin of Allegiant passengers flying to Southwest Florida
SRQ PIE PGD Each dot represents the point of origin (POO) of Allegiant passengers flying to Southwest Florida PGD SRQ PIE Data Source: Internal, based on 2020 – 2021YTD
Slide 25: Hotels where Allegiant customers have stayed
Each dot represents a Hotel/Resort property where an Allegiant customers has stayed Data Source: Internal
Slide 26: Completion opens up opportunities
• Property worth more completed vs current state • Completion opens up opportunities • Own and operate the Resort • Sell and manage • Find a partner • Launch asset light business • Opportunity to obtain longer term financing • Divest completely • Sell suite towers as condos • Remaining site will hav
Slide 27: Restaurant and F&B brands
Already developed 19 different restaurant / F&B brands Sports Bar Additional brands to be revealed at a future date
Slide 28: Site acreage by phase
Phase I: ~ 8 Acres Phase II: ~ 3 Acres Remaining Site: ~13 Acres Total: ~24 Acres
Slide 29: Length of stay preference
Length of Stay Preference # of Registrations Avg. Length of Stay Length of Stay (Days)2 Over 65 55 - 65 46 - 55 Over 45 Retired Semi- retired Total 1-2 3-4 5 or more Winter Spring Summer Fall 1 - 3 Days 37,082 2 74,164 18% 26% 25% 69% 22% 12% 34% 65% 28% 7% 55% 51% 46% 37% 4 - 6 Days 62,322 5 311,61
Slide 30: Sunseeker Resort Appendix
NG ANS SUNSEEKER RESORT Chatlatte Plarhor
Slide 31: Competitive Set Demand Scenarios ADR Comparison
Competitive Set Demand Scenarios ADR Comparison
Slide 32: Competitive set
• Upper Upscale & Luxury large resorts between Sarasota & Marco Island • Sunseeker poised to be a market leader in room quality, food & beverage offerings, and ease of access • Competitive Set is dated – all except a single property are over a decade old – significant deferred maintenance, less opti
Slide 33: Fair Share and Take Rate demand model
Sunseeker Resort is forecasting 85% Annual Occupancy, with demand from two key segments: • Capture existing Market Demand from the Competitive Set (“Fair Share”) • Capture a certain percentage of Allegiant customers flying to PGD (“Take Rate”) Fair Share represents receiving the same percentage of 2
Slide 34: Scenario: no demand from Allegiant customers
• With no Demand coming from Allegiant customers, Sunseeker would have to capture an average of 24% of 2019 Competitive Set Occupied Room Nights (varying from 19% to 35% for individual months) to achieve 85% Occupancy each month • Competitive Set 2019 ADR is an average of $69 (27%) higher than Sunse
Slide 35: Scenario: no demand from the market
• With no Demand coming from the Market (Competitive Set Occupied Room Nights), Sunseeker would have to generate an 11.1% “Take Rate” on Round Trip Inbound Itineraries to PGD (varying from 5.6% to 36.0% for individual months) to achieve 85% Occupancy each month • Competitive Set 2019 ADR is an avera
Slide 36: Scenario: Fair Share of market demand
• If Sunseeker receives its “Fair Share” of existing Market Demand (16% of 2019 Competitive Set Occupied Room Nights), an average of a 3.7% “Take Rate” on Allegiant Inbound, Round Trip Itineraries to PGD is required on an annual basis (ranging from 0.9% to 19.6% in individual months) to achieve 85%
Slide 37: Model assumptions on cannibalization
• The “Take Rate” + “Fair Share” model for Demand assumes no cannibalization • To adjust for no assumed cannibalization, the model also assumes no Allegiant fliers to St. Petersburg (PIE), Sarasota (SRQ), or Sanford (SFB) stay at Sunseeker • Additionally, the model assumes that Allegiant only captur
Slide 38: Pricing relative to competitive set ADR
Pricing at a value relative to Competitive Set 2019 ADR to achieve higher Occupancy than the Competitive Set on an annual basis, leading to peer performance on an annual basis in RevPar Data Source: STR Trend Report; Competitive Set Data is for 2019. Sunseeker comparisons are Sunseeker Year 1 projec
Slide 39: Fair Share with 3.6% average Take Rate
With “Fair Share,” Sunseeker only needs a 3.6% average Take Rate on an annual basis (ranging from 1.8% in March to 5.2% in July) to achieve 85% Occupancy PGD Passenger Statistics are TTM through 2/29/2020; Inbound traffic to PGD only. Potential Room Nights represent days spent in PGD by customers on
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