NASDAQ$ALGT

Allegiant Travel Company · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported financial results with a shift in demand environment and progress in Allegiant 2.0 strategy.

Allegiant Travel Company reported a loss before income taxes of $10.6 million and a GAAP operating income of $7.2 million for the first quarter of 2022. Despite a nearly 40 percent increase in the cost per fuel gallon, the company achieved a 21 percent operating margin during March. Total operating revenue was $500.1 million, up 10.7 percent compared to 2019.

  • Loss before income taxes of $10.6 million.
  • GAAP operating income of $7.2 million, yielding an operating margin of 1.4 percent.
  • Achieved a 21 percent operating margin during the month of March, despite a more than 40 percent increase in the average fuel cost per gallon throughout the quarter.
  • Total operating revenue was $500.1 million, up 10.7 percent year over three-year.

Headline financials

Total Revenue

$500M

Previous: $279M+79.2%
EPS (adj)

-$0.12

Previous: -$3.58+96.6%
Average Fuel Cost per Gallon

$3.07

Previous: $1.86+65.1%
Load Factor

78.9%

Previous: 55.3%+42.7%
Capital Expenditures

-$71.7M

Previous: -$69.5M-3.1%
Free Cash Flow

-$79.5M

Previous: -$62.6M-27.0%
Net Income

-$7.88M

Previous: $6.87M-214.7%
Operating Income

$7.23M

Previous: $24.6M-70.6%
Gross Profit

$500M

Previous: $192M+161.1%
Cash & Equivalents

$403M

Previous: $302M+33.6%
Total Assets

$4.23B

Previous: $3.35B+26.5%

Revenue & EPS history

Allegiant · Revenue · Quarterly

$500M

Q1 2022+79.2%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Allegiant · $500M total across 3 segments · Q1 2022

  • Passenger Revenue
    $464M+80.7%
  • Third Party Products
    $22.5M+65.0%
  • Fixed Fee Contracts
    $13.4M+74.0%

Forward guidance

The company expects second quarter total revenue to be up as much as 30 percent compared to 2019 revenue. Capacity is expected to increase roughly 12 percent year-over-three year. TRASM increases of nearly 20 percent are expected during the second quarter.

Tailwinds

  • Total operating revenue - year over three-year change 28 to 32%
  • Capacity adjustments will help drive TRASM increases of nearly 20 percent during the second quarter
  • Bullish historic industry leading performances in difficult times will continue.
  • Substantial opportunities for new routes.
  • Continued growth in the coming years.

Headwinds

  • Adjusted growth rate for the second quarter to better align with the high fuel cost environment
  • Mindful of future slowdowns in the economy as the Fed begins its necessary tightening.
  • Updated budget to $618 million for Sunseeker Resort, primarily due to inflationary pressures on materials as well as supply chain delays
  • Anticipated opening second quarter 2023 for Sunseeker Resort
  • Shifting three aircraft inductions into 2023 due to labor and supply chain constraints

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 2022

Historical avgQ1 2022

-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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