NASDAQ$ALGT

Allegiant Travel Company · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Allegiant reported a challenging first quarter due to the onset of the COVID-19 pandemic, with revenues declining and a net loss recorded, but took decisive actions to preserve liquidity and adjust to the new environment.

Allegiant Travel Company faced significant challenges in Q1 2020 due to the COVID-19 pandemic, which led to a steep decline in demand starting in late February. Despite these challenges, Allegiant managed to achieve an airline-only EPS of $1.89 and an operating margin of 12.6%. The company responded swiftly by implementing measures to enhance health and safety, reduce capacity, and preserve liquidity, including voluntary leave programs and pay reductions.

  • Demand weakness emerged in late February, with a sharp decline by mid-March due to COVID-19.
  • Finished the quarter with airline-only EPS of $1.89 and an airline-only operating margin of 12.6%.
  • Implemented health and safety measures under the 'Going the Distance for Health and Safety' initiative.
  • Reduced daily cash burn to roughly $2.1 million through liquidity preservation measures.

Headline financials

Total Revenue

$409M

Previous: $452M-9.4%
EPS (adj)

$2.05

Previous: $3.98-48.5%
Average Fuel Cost per Gallon

$1.87

Previous: $2.14-12.6%
Load Factor

73.8%

Previous: 83.9%-12.0%
Capital Expenditures

-$134M

Previous: -$123M-9.7%
Free Cash Flow

-$167M

Previous: -$65.4M-156.0%
Net Income

-$33M

Previous: $57.1M-157.8%
Operating Income

-$118M

Previous: $91.1M-229.3%
Gross Profit

$319M

Previous: $329M-3.0%
Cash & Equivalents

$138M

Previous: $243M-43.1%
Total Assets

$3.19B

Previous: $2.75B+16.0%

Revenue & EPS history

Allegiant · Revenue · Quarterly

$409M

Q1 2020-9.4%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Allegiant · $404M total across 3 segments · Q1 2020

  • Passenger Revenue
    $379M
  • Third Party Products
    $16M
  • Fixed Fee Contracts
    $8.92M

Forward guidance

Allegiant expects near term to be painful and will continue to be painful. However, Allegiant believes its model is best-suited to withstand the brutal impact from this pandemic. They anticipate shrinking their fleet by as many as 25 aircraft and they do not have meaningful aircraft purchase commitments in 2021 and beyond.

Tailwinds

  • Enhanced aircraft cleaning with advanced antimicrobial protectant.
  • Social distancing principles at check-in, boarding, and on-board.
  • VOC air filters that exceed HEPA standards.
  • Complimentary health and safety kits for customers.
  • Reduced salaries for executives and foregoing of cash compensation by Board members.

Headwinds

  • Reduced April capacity by 87.4 percent.
  • Expected significant capacity reductions based on diminished leisure demand trends in May and June.
  • Suspended all stock buybacks and dividends.
  • Enacted a hiring freeze and offering voluntary leave.
  • Suspended nearly all contractor positions, subscriptions, non-essential training and travel.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.5%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+2.2%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+18.9%

Q4 2022

Best reaction

-15.4%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.6%+5.9%+21.0%
Q4 2025-0.4%+14.5%-20.4%
Q3 2025-2.1%-7.0%+21.7%
Q1 2025+3.7%+20.1%+17.9%
Q4 2024-15.3%-10.9%-38.7%
Q3 2024+7.1%+8.7%+34.8%
Q2 2024-9.2%-23.4%-23.4%
Q1 2024-5.7%-5.0%-5.5%
Q4 2023-0.8%-0.6%-5.5%
Q3 2023-1.7%-6.8%+8.2%
Q2 2023-5.3%-9.1%-26.8%
Q1 2023+5.3%+7.2%+7.3%
Q4 2022+18.9%+12.4%+21.3%
Q3 2022-0.7%+3.4%+8.6%
Q2 2022+1.6%-1.5%-15.4%
Q1 2022-0.4%-9.0%-6.0%
Q4 2021-3.1%-4.3%-13.2%
Q3 2021-3.2%-1.2%-3.4%
Q2 2021+2.0%-1.9%-0.6%
Q1 2021-0.7%-4.6%-8.3%
Q4 2020+16.9%+13.1%+30.0%
Q3 2020+4.0%-0.7%+34.3%
Q2 2020-3.1%-3.2%+15.6%
Q1 2020+5.2%+2.3%+44.9%
Q4 2019-0.6%-2.9%-20.6%
Q3 2019+8.8%+9.8%+10.8%
Q2 2019+2.9%+3.0%-4.7%
Q1 2019+5.9%+9.1%+7.4%
Q4 2018+4.0%+11.2%+5.0%
Q3 2018-8.4%-4.9%+1.7%
Q2 2018-15.4%-10.8%-3.0%
Q1 2018+9.5%+11.6%+8.5%
Q4 2017+4.6%-0.6%+3.1%
Q3 2017+0.2%-1.9%-2.2%
Q2 2017-8.7%-10.5%-17.5%
Q1 2017-9.3%-11.9%-11.2%
Q4 2016-0.3%-6.2%-1.4%
Q3 2016-13.0%-10.4%+9.6%
Q2 2016-4.9%-9.0%+1.1%
Q1 2016-2.6%
Q4 2015-5.8%
Q3 2015-7.6%
Q2 2015+2.2%
Q1 2015-1.1%
Q4 2014-0.9%
Q3 2014+0.7%
Q2 2014-5.3%
Q1 2014+0.7%
Q4 2013-11.2%
Q3 2013-1.5%
Q2 2013-13.1%
Q1 2013-2.4%
Q3 2012+1.3%
Q2 2012-3.0%
Q1 2011+2.0%
Q1 2012-1.2%
Q4 2009+3.1%
Q4 2011+3.1%
Q4 2012+2.4%
Q3 2010-3.4%
Q3 2011-3.4%
Q4 2010+4.8%
Q2 2010+4.8%
Q2 2011+4.8%
Q1 2010+3.1%

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