Sky Harbour Group Corporation · NYSE:SKYH
Sky Harbour — Q3 2024 Earnings Presentation
17 slides from Sky Harbour's earnings presentation, Nov 12, 2024
Slide 1: 2024 Q3 Earnings Webcast
2024 Q3 Earnings Webcast November 12th, 2024
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 FRANCISCO WILL KEINAN GONZALEZ WHITESELL Chief Chief Chief Executive Officer Financial Officer Operating Officer MICHAEL TIM MARTY SCHMITT HERR KRETCHMAN Chief Accounting Treasurer and Senior VP Officer VP Finance Airports ©2024 Sky Harbour Confidential and Proprietary 3
Slide 5: Sky Harbour Group Corp Financial Results
100 150 200 0 50 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 SG&A Q1'21 Q1'21 (In millions) (In millions) Q2'21 Q2'21 Q3'21 Q3'21 Q4'21 Q4'21 Q1'22 Q1'22 Q2'22 Q2'22 Q3'22 Q3'22 Q4'22 Q4'22 Q1'23 Q1'23 Q2'23 Q2'23 Q3'23 Q3'23 Q4'23 Q4'23 Step Function: SJC, Q2 2024 Q1'24 Q1'24 Q2'24 Q2'24 ©2024
Slide 6: Sky Harbour Capital - PABs Obligated Group
SKY HARBOUR CAPITAL - PABS OBLIGATED GROUP 1 Expected to Surpass DSCRs assumed at 2021 Issuance at Stabilization COST OF CONSTRUCTION AND CONSTRUCTED ASSETS QUARTERLY REVENUES OPERATING EXPENSES (In millions) (In millions) (In millions) 3.5 2.0 200 1.8 3.0 1.6 150 2.5 1.4 1.2 2.0 100 1.0 1.5 0.8 1.0
Slide 7: Sky Harbour Group Corp Financial Results: Example Portfolio Lease
$100,000 $120,000 $140,000 $160,000 $180,000 $0 $20,000 $40,000 $60,000 $80,000 5/1/2022 4/1/2023 3/1/2024 2/1/2025 1/1/2026 12/1/2026 EXAMPLE PORTFOLIO LEASE 11/1/2027 10/1/2028 9/1/2029 8/1/2030 7/1/2031 6/1/2032 5/1/2033 4/1/2034 ©2024 Sky Harbour Confidential and Proprietary 3/1/2035 2/1/2036 1/
Slide 8: Summary of Significant Non-cash Expenses
SKY HARBOUR GROUP CORP FINANCIAL RESULTS Summary of Significant Non-cash Expenses THREE MONTHS ENDED SEPTEMBER 30, 2024 NINE MONTHS ENDED SEPTEMBER 30, 2024 (In millions) (In millions) ©2024 Sky Harbour Confidential and Proprietary 7
Slide 9: Site Acquisition: Potential Revenue Opportunity at SHER Stabilization
SITE ACQUISITION Accelerated Acquisition Pace: Short-Term Investment Drives Long-Term Value $200mm $180mm Potential Revenue Opportunity at SHER Stabilization $160mm $140mm $120mm $100mm $80mm $60mm $40mm 1st Obligated Group $20mm $0mm Feb-24 Jan-24 Mar-24 Jun-24 Jul-24 Nov-23 Dec-23 Sep-23 Aug-24 Oc
Slide 10: Development: Site Acquisition Wins Drive Need for Growing Development Capacity
DEVELOPMENT Site Acquisition Wins Drive Need for Growing Development Capacity Fields Nearing Completion Construction Stabilization Full Operation Start End Start End DVT Phase 1 Q4-22 Q1-25 Q1-25 Q3-25 Q3-25 APA Phase 1 Q4-22 Q1-25 Q1-25 Q3-25 Q3-25 ADS Phase 1 Q4-23 Q1-25 Q1-25 Q3-25 Q3-25 Projecte
Slide 11: High Growth and Lower Cost of Capital
HIGH GROWTH AND LOWER COST OF CAPITAL U.S. TREASURIES AND CASH SERIES 2021 BOND DEBT SERVICE (In thousands) (In millions) Bond Principal Bond Interest (Millions) $200,000 ~$185.5 ~$185.5Million Million 14 $180,000 12 $160,000 $75,160* $140,000 10 $120,000 ~$110.4 Million 8 $100,000 $36,205 $80,000 6
Slide 12: Sky Harbour Capital 2021 PABs Path to Investment Grade
SKY HARBOUR CAPITAL Yield on 4.00% Bond due 2041 2021 PABS 6.40% PATH TO INVESTMENT 6.20% 6.00% GRADE 5.80% 5.60% 5.40% 5.20% ▪ Continued rally in price and spread on our bonds 5.00% 4.80% ▪ Protect Path to Exceed DSCR targets ▪ Path to IG 2023 2024 - Ramp Up on Cash Flows in 2025 Yield on 4.25% Bon
Slide 13: Permanent Capital: Key to Prudent Funding of Growth
PERMANENT CAPITAL: KEY TO PRUDENT FUNDING OF GROWTH CAPITAL OPPORTUNISTICALLY INTERNALLY GENERATED SKYH HOLDING CASH FLOW 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 ACTIVITY REA
Slide 14: Q3 Highlights
Q3 Highlights 01 SITE ACQUISITION ▪ Expansion on existing fields ▪ POU Lease amendment increased term to 40 years 02 DEVELOPMENT 03 ▪ Three projects set for delivery by Q1 2025 LEASING ▪ 2 New projects targeted for delivery in 2025 (ADS2 and OPF2) 04 ▪ Marquis residents onboarded ▪ Eleven additional
Slide 15: Next Twelve Months
NEXT TWELVE MONTHS 01 SITE ACQUISITION Maximize revenue capture ▪ Focus = Best fields in USA ▪ Revised 2024-2025 acquisitions target 02 03 04 DEVELOPMENT LEASING OPERATIONS Scaling while reducing PSF cost Capitalize on growing Sky Harbour brand Laser-focus on the Sky Harbour Resident ▪ Prototyping ▪
Slide 16: Questions
QUESTIONS ©2024 Sky Harbour Confidential and Proprietary 15
Slide 17: Aviation Infrastructure Real Estate
A V I AT I O N INFR ASTRUCTURE R E A L E S TAT E ©2024 Sky Harbour Confidential and Proprietary 16