ALGT Q4 2020 Earnings

Call Details

• Call Title: Allegiant Travel Company Q4 2020 Earnings Call
• Date: February 3, 2021 at 9:30 PM UTC
• Management Team:
  • Sherry Wilson (Managing Director of Investor Relations)
  • Maury Gallagher (Chairman and Chief Executive Officer)
  • John Redmond (President)
  • Greg Anderson (EVP and Chief Financial Officer)
  • Scott Sheldon (EVP and Chief Operating Officer)
  • Scott DeAngelo (EVP and Chief Marketing Officer)
  • Drew Wells (SVP of Revenue and Planning)

Call Summary

Financial Performance

• The company reported a full-year 2020 adjusted EBITDA of $35M after CARES Act benefits and special charges.
• Fourth quarter revenue performance was down 46.5% year over year versus 2019.
• Fourth quarter daily bookings averaged just under $2.5M, translating into $225M in passenger revenue for the quarter.
• Passengers increased 7% sequentially during the quarter while load factor rose 9 percentage points to 58%.
• Average fare increased 15% to $110 from $96 and TRASM improved 30% to 7.3 cents in the quarter.
• Adjusted operating expense for Q4, excluding special items, was down 30% year over year despite capacity being down 15.6%.
• Adjusted CASMx for Q4 was just over 6.07 cents versus Q4 2019 CASMx of 6.74 cents and 2019 full-year CASMx of 6.48 cents.

Guidance

• The company expects to be EPS positive in Q1 2021, assuming the current operating environment remains materially unchanged.
• First quarter 2021 ASMs are guided to be between plus 0.5% and plus 5.5% versus Q1 2019 levels.
• Excluding PSP2 benefits, the company expects Q1 2021 CASMx to be down between 4% to 5% from Q1 2019 on the midpoint of the 1Q21 capacity guide.
• The company expects capacity to be up in every quarter of 2021 versus the same quarter of 2019.
• The company expects net debt at each quarter end of 2021 to be less than year-end 2019, assuming no significant adverse changes to the operating environment.
• The company expects 2021 total CapEx to be roughly $200M, primarily driven by aircraft acquisitions.