Allegiant Travel Company · NASDAQ:ALGT
Allegiant Travel — Investor Presentation (September 2016)
21 slides from Allegiant Travel's investor presentation, Sep 7, 2016
Slide 1: Management Presentation September 2016
Management Presentation September 2016
Slide 2: Forward looking statements
Forward looking statements 2 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 uncert
Slide 3: Unique business model and results
Unique business model and results Highly resilient and profitable – Profitable last 54 quarters (1) – LTM 2Q16 EBITDA $495.5mm (2) – LTM 2Q16 Return on Capital 25.2%(2) Strong balance sheet – Rated BB and Ba3(3) – Adjusted debt/ EBITDAR 1.3x(2) – $106mm returned to shareholders YTD 2016 • $92 mm
Slide 4: Advantages over the typical carrier
Advantages over the typical carrier 4 Leisure customer – Will travel in all economic conditions – Vacations are valued – price dependent Small/medium cities – Filling a large void – Increasing opportunity - industry restructuring – Diversity of network - minimizes competition Flexibility – Adj
Slide 5: Measured, profitable growth
Measured, profitable growth 5 226 233 296 342 175 200 225 250 275 300 325 350 2013 2014 2015 2Q16 Routes 7.89 8.69 10.24 11.12 6.00 7.00 8.00 9.00 10.00 11.00 12.00 2013 2014 2015 LTM 2Q16 A S M s - b ill io n s Scheduled ASMs $996 $1,137 $1,262 $1,304 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 20
Slide 6: A very large niche
A very large niche Based on current published schedule through March 16, 2017 362 routes, 83 operating aircraft 97 small/medium cities, 20 leisure destinations 6 Stars– leisure destinations
Slide 7: Little competition
Little competition 98 114 136 161 168 181 207 221 255 297 65 2007 2008 2009 2010 2011 2012 2013 2014 2015 August 30 August 2016 Historic level of non-competitive routes Routes without competition Routes with competition 7 Based on current published schedule through March 16, 2017, announcements and
Slide 8: Low frequency model
Low frequency model 8 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec S y ste m b lock h o u rs/ A C/ d a y 2013 2014 2015 2016E Avg. block hours/AC/day 1 - Peak = peak is defined as 11/23 – 12/1, 12/21 – 1/3, 2/18 – 4/14, 6/3 – 8/18. Remaining is off peak 2 –
Slide 9: Low costs even with low utilization
Low costs even with low utilization 7.8 JBLU 5.4 SAVE 7.3 ALK 5.8 ALGT 5.000 5.500 6.000 6.500 7.000 7.500 8.000 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 CA S M e x f u e l (ce n ts ) Average daily aircraft utilization – LTM (block hours per day) CASM ex fuel vs daily aircraft utilization 9 As o
Slide 10: Current fleet plan
Current fleet plan 10 4 48 38 13 17 22 33 35 16 21 35 52 10 12 12 0 20 40 60 80 100 2016E 2017E 2018E 2019E Expected fleet End of period B757 MD-80 A319 Used A320 New A320 Total 85 Total 91 Total 93 Total 99 Future numbers include existing delivery commitments and estimate of potential future transa
Slide 11: Cumulative return to shareholders
Cumulative return to shareholders $17.4 $42.7 $96.5 $98.4 $103.4 $ 1 8 7 .0 $ 3 2 6 .1 $ 4 5 4 .1 $ 5 1 5 .8 $14.9 $53.5 $53.5 $95.3 $157.8 $ 2 0 2 .1 $0 $100 $200 $300 $400 $500 $600 $700 2008 2009 2010 2011 2012 2013 2014 2015 2016 $ m m Share repurchases Dividends 11 $718m returned to shareholder
Slide 12: Existing guidance
3Q16 TRASM (8.5) to (7.5)% vs 3Q15 3Q16 CASM ex fuel 4 to 6% vs 3Q15 FY16 CASM ex fuel 0 to 4% vs 2015 3Q16 fixed fee + other revenue $12mm to $14mm FY16 CAPEX $360mm FY16 maintenance per aircraft per month $105 to $115 thousand FY16 ownership cost* per aircraft per month $100 to $110
Slide 13: Appendix
Appendix — allegrant,
Slide 14: GAAP reconciliation: EBITDA calculations
GAAP reconciliation EBITDA calculations 14 $mm LTM 2Q16 2015 2014 2013 Net Income attributable to Allegiant Travel Co. 234.0 220.4 86.7 92.3 +Total comprehensive income (loss) 0 (.4) 1.2 .1 +Provision for Income Taxes 138.0 126.4 50.8 54.9 +Other Expenses 1 24.6 25.1 20.4 8.5 +Depreciation and Amort
Slide 15: GAAP reconciliation: Return on equity
GAAP reconciliation Return on equity 15 $mm LTM 2Q16 2015 2014 2013 2012 Net Income attributable to Allegiant Travel Co. 234.0 220.4 113.2 92.3 78.6 Jun 2016 Dec 2015 Jun 2015 Dec 2014 Dec 2013 Dec 2012 Total shareholders equity 406.7 350.0 326.2 294.1 377.3 401.7 Return on equity 64% 68% 34% 24% 21
Slide 16: GAAP reconciliation: Return on capital employed calculation
GAAP reconciliation Return on capital employed calculation $mm LTM 2Q16 2015 2014 2013 + Net income attributable to Allegiant Travel Co. 234.0 220.4 113.2 92.3 + Income tax 138.0 126.4 66.8 54.9 + Interest expense 27.3 26.5 21.2 9.5 - Interest income 2.6 1.4 0.8 1.0 396.7 371.9 200.4 155.7 + Interes
Slide 17: GAAP reconciliation: Adjustment for special item 2014
GAAP reconciliation Adjustment for special item 17 2014 $mm – except per share amounts Net income as reported 86.3 + Add provision for income taxes, as reported 50.8 Income before income taxes as reported 137.1 + Other expense 20.2 Operating income 157.3 + Boeing 757 fleet write down 43.3 Adjusted o
Slide 18: Revenue components
Revenue components 18 $91.69 $91.30 $78.63 $73.06 $50 $60 $70 $80 $90 2013 2014 2015 LTM 2Q16 Average fare - scheduled service $5.21 $4.56 $4.29 $4.11 $0.00 $2.00 $4.00 $6.00 2013 2014 2015 LTM 2Q16 Average fare - ancillary third party products $40.52 $41.37 $46.43 $45.99 $30.00 $40.00 $50.00 2013 2
Slide 19: LTM 2Q16 cost per passenger: Low cost drivers
LTM 2Q16 cost per passenger Low cost drivers $24 $21 $29 $31 $10 $15 $11 $13 $10 $4 $9 $14 $25 $21 $54 $44 $20 $23 $29 $38 ALGT SAVE LUV JBLU 19 Source: Company filings Ownership includes depreciation & amortization + aircraft rent Other excludes special items and one-time charges for other carriers
Slide 20: Credit metrics
Credit metrics 16.4% 19.2% 25.6% 25.2% 17.5% 10% 20% 30% 2013 2014 2015 LTM 2Q16 LUV LTM 2Q16 20 Return on capital employed 24.0% 34.0% 68.0% 64.0% 32.7% 10% 20% 30% 40% 50% 60% 70% 80% 2013 2014 2015 LTM 2Q16 LUV LTM 2Q16 Return on equity 23.7 x 13.5 x 17.7 x 18.2 x 42.0 x 10 15 20 25 30 35 40 45 2
Slide 21: Capitalization structure
Capitalization structure Actual 6/30/16 (MM USD) Debt to LTM EBITDAR Avg rate Year of maturity LTM EBITDAR 496.9 Secured by aircraft – floating 142.1 Libor + 3.04% 2018 Secured by aircraft – floating 31.4 Libor + 2.46% 2019 Secured by aircraft – floating 68.8 Libor + 1.72% 2020 Secured by aircraft –
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