Allegiant Travel Company · NASDAQ:ALGT
Allegiant Travel — Investor Presentation (September 2009)
17 slides from Allegiant Travel's investor presentation, Sep 14, 2009
Slide 1: Allegiant Travel Company September 2009
Allegiant Travel Company (NASDAQ: ALGT) September 2009
Slide 2: Notice on Forward Looking Statements
Notice on 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
Slide 3: Highlights
Highlights $mm Highly profitable 2Q09 25% pre-tax margin Profitable last 26 quarters(1) Profitable every quarter of 2008 achieved without fuel hedges High growth: 2Q09 capacity up by 25% y/y Very strong balance sheet More cash than debt Ample liquidity Strong free cash flow Revenue Pre-tax Profit Pr
Slide 4: A Travel Company
A Travel Company Nonstop, low-frequency service from small US cities to large leisure destinations, including significant third party sales (hotel/car/etc) Routes typically start with 2 flights/week Most routes never had service before; almost no direct competition ~60 smaller cities, ranging in pop
Slide 5: Nationwide Network
Nationwide Network Published(1) November 30, 2009 schedule: 69 cities, 133 routes, 45 operating aircraft 1) As of September 14, 2009
Slide 6: Growth
Growth Current fleet, strategy: 15% CAGR over the next five years Over 300 more potential routes in the US, Canada, Mexico & Caribbean Further growth possible with additional fleet type to access markets such as longer-haul (including Hawaii) short-runway airports ASMs (bn) Large unaddressed market
Slide 7: Best Costs
Best Costs Cost / pax vs. stage length (1) Cost / pax, ex-fuel vs. stage length (1) Cost leader among U.S. carriers Special charges and other one-time items are excluded $86 $51 (1)
Slide 8: Low Cost Drivers
Low Cost Drivers Aircraft, efficiency, distribution Single fleet type: MD-80, low acquisition costs (~$4MM per), avoid flying when we can’t make money (low utilization, 6.3 hrs/day 2009E) Simplified, highly efficient product – one class, no connections Cost-based scheduling, e.g. aircraft/crew retur
Slide 9: Industry Leading RASM
Industry Leading RASM (1) Data for LTM ended 6/30/2009 Minimal direct competition Capacity management – provide service when we can make money Focus on high loads World-class ancillary revenue Demonstrated pricing power Total system RASM (1) Source: Company filings (¢)
Slide 10: Minimal Direct Competition
Minimal Direct Competition Head-to-head competition on only five of 133 routes(1) Other airlines appear to see us as an annoyance, not a threat (1) As of September 30, 2009, according to published schedules
Slide 11: Highly Adaptable
Low fixed costs enable very flexible capacity management Highly Adaptable 2008 2007 2009 July 2008 peak fuel prices Avg. daily scheduled flights by month(1) (1) Published capacity schedules Frequency variation within months Winter 2009 weak economy, higher fuel prices
Slide 12: Pricing for Load
Pricing for Load We capacity plan (over long-term) & revenue plan (in short-term) to hit ~90% load factor Leisure customers are flexible, and we fly only when there’s sufficient leisure demand, making ~90% load factors feasible $30+/pax ancillary incents us to run high load factors High load factors
Slide 13: Ancillary Revenue
Ancillary Revenue Charging extra for the extras Source: Company financials The average exchange rate for LTM ending 6/30/2009 used to convert Ryanair figure into USD Represents 2Q09 ancillary revenue per scheduled passenger for Allegiant and quarter-ended June 30, 2009 ancillary revenue per passenge
Slide 14: Industry-Leading Margins
Industry-Leading Margins Source: Company filings 1) LTM 3/31/2009 2) Average of AMR, CAL, DAL, LCC & UAUA margins (%) LTM ended 6/30/09 pre-tax margins
Slide 15: Strong Balance Sheet
(1) All data based on reported LTM ending 6/30/2009 (2) Quarter-end adjusted debt equals total debt plus LTM aircraft rent capitalized at 7.0x; Adjusted net debt equals adjusted debt less unrestricted cash and short-term investments (3) End of the period data; includes aircraft on capital leases and
Slide 16: Ryanair
Ryanair Similarities: Cost-focused (e.g. aircraft/crews overnight at bases) Non-stop service only High ancillary revenues, high profitability, excellent balance sheets Modest aircraft utilization Differences: We largely fly passengers from small cities to large leisure destination We have very littl
Slide 17: Allegiant Travel Company September 2009
Allegiant Travel Company (NASDAQ: ALGT) September 2009
Allegiant Travel — Investor Presentation (September 2009) on 6ix