NASDAQ$ALGT

Allegiant Travel Company · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Allegiant reported a significant decrease in revenue and earnings per share due to the impact of the COVID-19 pandemic.

Allegiant Travel Company experienced a turbulent second quarter due to the COVID-19 pandemic, with a substantial decrease in total operating revenue and a GAAP fully diluted loss per share. The company focused on managing capacity, cutting costs, and strengthening its liquidity position to navigate the uncertain environment. Despite the challenges, Allegiant maintained a broad network and saw progressive improvement in revenue throughout the quarter, with June bookings resulting in cash breakeven for the month.

  • Adjusted loss per share of $5.96, excluding COVID-19 related charges and CARES Act benefits.
  • Load factor in June was 56.8 percent, a significant increase from April.
  • Total revenue decreased by 72.9 percent year over year to $133.3 million.
  • Maintained a broad network and selling presence, cutting capacity when necessary and capturing demand when it returned.

Headline financials

Total Revenue

$133M

Previous: $492M-72.9%
EPS (adj)

-$5.96

Previous: $4.81-223.9%
Average Fuel Cost per Gallon

$1.11

Previous: $2.22-50.0%
Load Factor

50.9%

Previous: 83.6%-39.1%
Capital Expenditures

-$171M

Previous: -$234M+27.2%
Free Cash Flow

-$264M

Previous: -$164M-60.9%
Net Income

-$93.1M

Previous: $70.5M-232.0%
Operating Income

-$113M

Previous: $108M-204.8%
Gross Profit

$105M

Previous: $372M-71.9%
Cash & Equivalents

$272M

Previous: $454M-40.0%
Total Assets

$3.27B

Previous: $2.98B+9.8%

Revenue & EPS history

Allegiant · Revenue · Quarterly

$133M

Q2 2020-72.9%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Allegiant · $128M total across 3 segments · Q2 2020

  • Passenger Revenue
    $117M-74.4%
  • Third Party Products
    $8.44M-53.6%
  • Fixed Fee Contracts
    $3.24M-74.1%

Forward guidance

Allegiant anticipates third quarter capacity reductions to be 25 percent of planned capacity but will adjust in accordance with demand trends. 3Q20 daily cash burn is expected to be slightly above $1 million assuming gross bookings average roughly $2 million per day.

Tailwinds

  • Completed the quarter with load factor in the month of June of 56.8 percent, up 38 points from April
  • Progressive improvement in revenue throughout the quarter with April, May, and June decreases of 95 percent, 75 percent, and 52 percent, respectively
  • Despite yield pressure, average air ancillary revenue per passenger for the quarter was $51.57, remaining consistent with prior year
  • Total operating expense was $246.6 million, down 35.7 percent year over year on reduced capacity of 50.1 percent
  • Conducted minimal close-in cancellations for the months of June and July to date

Headwinds

  • Although we were able to manage through the chaos of the quarter, arguably better than most, this environment is unsustainable long-term.
  • It continues to be of utmost importance to strengthen liquidity positions.
  • Unfortunately, the strength seen in June has since weakened as case numbers have risen.
  • Reduced second quarter capacity by 50.1 percent
  • Although I believe the effects of this pandemic will linger well into 2021 and possibly beyond

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 Q2 2020

Historical avgQ2 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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