NASDAQ$ALGT

Allegiant Travel Company · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Allegiant reported strong Q4 2021 results with a revenue increase and positive earnings per share, despite challenges from the Omicron variant.

Allegiant Travel Company reported a GAAP diluted earnings per share of $0.59 for the fourth quarter of 2021. Total operating revenue increased by 7.8% compared to the fourth quarter of 2019, reaching $496.9 million. The company faced operational challenges due to the Omicron variant, resulting in flight cancellations and increased irregular operations expenses.

  • GAAP diluted earnings per share were $0.59 for Q4 2021.
  • Adjusted diluted earnings per share were $1.18 for Q4 2021.
  • Total operating revenue increased by 7.8% compared to Q4 2019, reaching $496.9 million.
  • Load factors sequentially improved throughout the year, with Q4 loads at 77.1%.

Headline financials

Total Revenue

$497M

Previous: $247M+101.5%
EPS (adj)

$1.18

Previous: -$1.12+205.4%
Load Factor

77.1%

Previous: 58.2%+32.5%
Capital Expenditures

$89M

Previous: $82.6M+7.8%
Free Cash Flow

$75.6M

Previous: -$125M+160.6%
Net Income

$10.7M

Previous: -$28.8M+137.1%
Operating Income

$33.3M

Previous: -$23.6M+241.0%
Gross Profit

$94.1M

Previous: $19M+394.4%
Cash & Equivalents

$366M

Previous: $153M+139.3%
Total Assets

$3.99B

Previous: $685M+482.4%
Stock-Based Comp

$16.1M

Previous: $19.3M-16.4%

Revenue & EPS history

Allegiant · Revenue · Quarterly

$497M

Q4 2021+101.5%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Allegiant · $497M total across 3 segments · Q4 2021

  • Passenger Revenue
    $454M+102.0%
  • Third Party Products
    $25.3M+136.1%
  • Fixed Fee Contracts
    $17.2M+82.9%

Forward guidance

Despite the Omicron variant, forward bookings are strong for upcoming peak leisure travel periods, particularly for spring break. The booking curve has normalized to its pre-COVID state, and positive demand trends are emerging into early summer. The company expects to end 2022 with 127 aircraft, all with 186 seats, increasing seats per departure. The Boeing transaction will increase incremental route opportunities to 1,400, and progress on Sunseeker is on track to open in early 2023.

Tailwinds

  • Forward bookings are strong for peak leisure travel periods.
  • Spring break bookings are particularly strong.
  • The booking curve has normalized to its pre-COVID state.
  • Positive demand trends are emerging into early summer.
  • Third-party revenues have outperformed 2019 due to strength with the cobrand credit card program.

Headwinds

  • Operation was challenged by impacts from the Omicron variant.
  • Experienced unprecedented crew shortages due to COVID.
  • Resulted in cancelled flights during the peak holiday travel season and persisting throughout January.
  • Irregular operations expenses were $23 million during the fourth quarter due to cancellations from Covid.
  • Case counts have started to recede, thus the worst should be behind us.

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 Q4 2021

Historical avgQ4 2021

-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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