Allegiant Travel Company Third Quarter 2018 Financial Results

Third quarter 2018 Fully Diluted Earnings per Share of $0.94

LAS VEGAS, Oct. 24, 2018 (GLOBE NEWSWIRE) -- Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the third quarter 2018, as well as comparisons to the prior year:

"We are proud to announce our 63rd consecutive profitable quarter," stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company.  "Our transition to an all-Airbus fleet is nearly complete.  Our decision to move the transition up by a year from 2019 to 2018 has proven to be an excellent one given the higher fuel cost environment.  Compared to our all-MD-80 fleet from 2010, we expect our ASMs per gallon to increase by almost 40 percent in 2019, from 59 ASMs per gallon to the low 80s.

"This has been a busy couple of years across the Company as we transitioned our fleet.  Since the end of 2016:

1. We will have purchased and inducted 43 Airbus aircraft, while retiring 47 MDs.  We will have trained more than 350 Airbus pilots and 300 maintenance technicians as well as our flight attendants, ground staff and other operations personnel by the time we fly the final MD-80 flight at the end of November.
2. We have grown the Company 20 percent in capacity (ASMs), adding 51 routes and carrying 13.6 million passengers during the last twelve months, an increase of 1.64 million passengers over 2016.
3. We have dramatically improved our operations.  Since last October, we have led the industry in monthly completion factor six times and have been among the top three except for a few months.  Our on-time performance is improving nicely as well; this September we were up ten percentage points in A14, from 72 percent to 82 percent.

"I couldn’t be more excited about where we are at this point in our history.  As we outlined in our Sunseeker Resort investor day, we are ready for Allegiant 2.0.  Stay tuned!

"Needless to say, we couldn’t have accomplished this difficult transition without our great group of team members.  They have done an amazing job this quarter - as well as over this entire past year - with the highly complex effort to transition our fleet and improve our operations.  Hats off to the entire team for their tireless professionalism in any environment."

Shareholder returns

• 2018 shareholder returns - over $33 million in the first three quarters of the year through dividends
  
  ° Will pay dividends of $0.70 per share on December 5, 2018 to shareholders of record as of November 23, 2018

2018 outlook

• Fourth quarter scheduled and system ASMs are expected to grow between four and six percent vs last year
  
  ° The remaining MD-80s will be retired immediately after the Thanksgiving travel period
• 2018 full year ASM growth is expected to be between 9.5 and 10.5 percent
• 2018 full year tax rate is expected to be between 18 and 19 percent
• 2018 full year average fuel cost is expected to be $2.38 per gallon using the forward curve as of October 23, 2018
• Due to several one-time maintenance events, 2018 maintenance per aircraft per month is expected to be between $90 and $95 thousand
• 2018 EPS is expected to be between $9 and $10 per share even with the higher than expected fuel cost

* - Previous guidance as of July 25, 2018

** - Excludes Sunseeker Resorts

*** - Not included in capital expenditure total

Aircraft listed in table above include only in-service aircraft, planned retirements and future aircraft under contract (subject to change)

Non-airline business

For greater transparency around the non-airline portion of the business, we are providing what we believe is a better measure of controllable airline costs that excludes costs driven by non-airline entities as well as their revenue contribution.

Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Wednesday, October 24, 2018 to discuss its third quarter 2018 financial results. A live broadcast of the conference call will be available via the Company’s Investor Relations website homepage at . The webcast will also be archived in the “Events & Presentations” section of the website.

Allegiant.®

Las Vegas-based Allegiant (NASDAQ: ALGT) is focused on linking travelers in small and mid-sized cities to world-class leisure destinations. The airline offers industry-low fares on an all-jet fleet while also offering other travel-related products such as hotel rooms and rental cars. All can be purchased only through the company website, . Beginning with one aircraft and one route in 1999, the company has grown to more than 80 aircraft and approximately 400 routes across the country with base airfares less than half the cost of the average domestic roundtrip ticket. For downloadable press kit, including photos, visit: 

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Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding future expenses, ASM growth, expected capital expenditures, number of contracted aircraft to be placed in service in the future, timing of aircraft retirements, as well as other information concerning future results of operations, business strategies, financing plans, industry environment and potential growth opportunities. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," “guidance,” "anticipate," "intend," "plan," "estimate", “project”, “hope” or similar expressions.

Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at . These risk factors include, without limitation, an accident involving, or problems with, our aircraft, public perception of our safety, our reliance on our automated systems, limitation on growth as we transition to a single fleet type, our reliance on third parties to deliver aircraft under contract to us on a timely basis, risk of breach of security of personal data, volatility of fuel costs, labor issues and costs, the ability to obtain regulatory approvals as needed , the effect of economic conditions on leisure travel, debt covenants and balances, the ability to finance aircraft under contract, terrorist attacks, risks inherent to airlines, our competitive environment, our reliance on third parties who provide facilities or services to us, the possible loss of key personnel, economic and other conditions in markets in which we operate, the ability to successfully develop a resort in Southwest Florida, governmental regulation, increases in maintenance costs and cyclical and seasonal fluctuations in our operating results.

Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.

Detailed financial information follows:

NM - Not meaningful

(1) Passenger revenue previously reported as Scheduled service revenue and Ancillary air-related revenue.

(2) The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share calculations for the periods presented reflect the two-class method mandated by ASC Topic 260, "Earnings Per Share." The two-class method adjusts both the net income and the shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented.

(1) Except load factor and percent of sales through website, which is percentage point change.

(2) Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis. The 2017 figure reflected has been adjusted from previously reported as a result of recast of revenue in accordance with revenue recognition accounting rules adopted by us as of January 1, 2018.

(3) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.

(1) Passenger revenue previously reported as Scheduled service revenue and Ancillary air-related revenue.

(2) The Company's unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. The Basic and Diluted earnings per share calculations for the periods presented reflect the two-class method mandated by ASC Topic 260, "Earnings Per Share." The two-class method adjusts both the net income and the shares used in the calculation. Application of the two-class method did not have a significant impact on the Basic and Diluted earnings per share for the periods presented.

(1) Except load factor and percent of sales through website, which is percentage point change.

(2) Various components of this measurement do not have a direct correlation to ASMs. These figures are provided on a per ASM basis to facilitate comparison with airlines reporting revenues on a per ASM basis. The 2017 figure reflected has been adjusted from previously reported as a result of recast of revenue in accordance with revenue recognition accounting rules adopted by us as of January 1, 2018.

(3) Reflects division of passenger revenue between scheduled service and air-related charges in Company's booking path.

Summary Balance Sheet

Summary Cash Flow

EPS Calculation

The following table sets forth the computation of net income per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in table are in thousands):