Allegiant Travel Company (ALGT, Financial) filed Quarterly Report for the period ended 2010-03-31.
Allegiant Travel Company has a market cap of $998.3 million; its shares were traded at around $50.14 with a P/E ratio of 14.3 and P/S ratio of 1.8. ALGT is in the portfolios of Ronald Muhlenkamp of Muhlenkamp Fund, RS Investment Management, Jim Simons of Renaissance Technologies LLC, PRIMECAP Management.
We generated $68.8 million in net cash from operating activities during the quarter, and despite capital expenditures related to the expansion of our fleet, principal debt repayments, and stock repurchases, we ended the quarter with $249.2 million in unrestricted cash and short-term investments, up from $231.5 million as of December 31, 2009.
The economic problems of the past two years are still evident. During 2009, consumers substantially reduced their outlays resulting in a significant reduction in air fares and air travel demand. We are seeing improvements and experienced some recovery in the first quarter of 2010 in our scheduled service base fare, which increased year-over-year from $74.52 to $81.41. This represented the second quarter in a row with a sequential increase in scheduled service base fare. Ancillary revenue per passenger also increased sequentially by $2.30, from $32.78 for the fourth quarter of 2009 to $35.08 for the first quarter of 2010. Although these recent unit revenue trends reflect improvements in the demand for airline travel, it is uncertain whether the recovery in fares will be sustained in future quarters.
We recorded total operating revenue of $169.6 million, income from operations of $36.2 million and net income of $22.6 million for the first quarter of 2010. By comparison, for the same period in 2009, we recorded total operating revenue of $142.1 million, income from operations of $44.5 million and net income of $28.2 million. We achieved a 21.4% operating margin for the first quarter of 2010 with system growth in departures of 10.1% and available seat miles (ASMs) of 16.9%, despite a 47.6% increase in system average fuel cost per gallon from $1.47 for the first quarter of 2009 to $2.17 for the same period of 2010.
Scheduled service revenue. Scheduled service revenue increased 22.4% to $110.4 million in the first quarter of 2010, from $90.2 million in the same period of 2009. The increase was a result of a 12.1% increase in the number of scheduled service passengers and an increase in the scheduled service total average fare from $108.61 in the first quarter of 2009 to $116.49 in the same period of 2010. Passenger growth was driven primarily as a result of a 10.3% year-over-year increase in departures from 9,141 to 10,081. Significant contributors to the departure growth were the addition of 589 departures attributable to our new service to Los
Ancillary revenue. Ancillary revenue increased 15.4% to $47.6 million in the first quarter of 2010 up from $41.3 million in the same period of 2009, driven by a 12.1% increase in scheduled service passengers and a 2.9% increase in ancillary revenue per scheduled passenger from $34.09 to $35.08. The following table details ancillary revenue per scheduled service passenger from air-related charges and third party products:
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Allegiant Travel Company has a market cap of $998.3 million; its shares were traded at around $50.14 with a P/E ratio of 14.3 and P/S ratio of 1.8. ALGT is in the portfolios of Ronald Muhlenkamp of Muhlenkamp Fund, RS Investment Management, Jim Simons of Renaissance Technologies LLC, PRIMECAP Management.
Highlight of Business Operations:
During the first quarter of 2010, we earned net income of $22.6 million on operating revenues of $169.6 million and achieved a 21.4% operating margin. We achieved these results despite a 71.8% increase in fuel expense driven by an increase in our system average fuel cost per gallon from $1.47 for the first quarter of 2009 to $2.17 for the same period of 2010. Our operating revenue increased 19.4%, as a result of a 10.3% increase in scheduled service departures, a 9.2% increase in our scheduled service air fare and a 15.4% increase in ancillary revenue. Our scheduled service air fare increased from $74.52 to $81.41 year-over-year while our ancillary air fare increased from $34.09 to $35.08 in the same period.We generated $68.8 million in net cash from operating activities during the quarter, and despite capital expenditures related to the expansion of our fleet, principal debt repayments, and stock repurchases, we ended the quarter with $249.2 million in unrestricted cash and short-term investments, up from $231.5 million as of December 31, 2009.
The economic problems of the past two years are still evident. During 2009, consumers substantially reduced their outlays resulting in a significant reduction in air fares and air travel demand. We are seeing improvements and experienced some recovery in the first quarter of 2010 in our scheduled service base fare, which increased year-over-year from $74.52 to $81.41. This represented the second quarter in a row with a sequential increase in scheduled service base fare. Ancillary revenue per passenger also increased sequentially by $2.30, from $32.78 for the fourth quarter of 2009 to $35.08 for the first quarter of 2010. Although these recent unit revenue trends reflect improvements in the demand for airline travel, it is uncertain whether the recovery in fares will be sustained in future quarters.
We recorded total operating revenue of $169.6 million, income from operations of $36.2 million and net income of $22.6 million for the first quarter of 2010. By comparison, for the same period in 2009, we recorded total operating revenue of $142.1 million, income from operations of $44.5 million and net income of $28.2 million. We achieved a 21.4% operating margin for the first quarter of 2010 with system growth in departures of 10.1% and available seat miles (ASMs) of 16.9%, despite a 47.6% increase in system average fuel cost per gallon from $1.47 for the first quarter of 2009 to $2.17 for the same period of 2010.
Scheduled service revenue. Scheduled service revenue increased 22.4% to $110.4 million in the first quarter of 2010, from $90.2 million in the same period of 2009. The increase was a result of a 12.1% increase in the number of scheduled service passengers and an increase in the scheduled service total average fare from $108.61 in the first quarter of 2009 to $116.49 in the same period of 2010. Passenger growth was driven primarily as a result of a 10.3% year-over-year increase in departures from 9,141 to 10,081. Significant contributors to the departure growth were the addition of 589 departures attributable to our new service to Los
Ancillary revenue. Ancillary revenue increased 15.4% to $47.6 million in the first quarter of 2010 up from $41.3 million in the same period of 2009, driven by a 12.1% increase in scheduled service passengers and a 2.9% increase in ancillary revenue per scheduled passenger from $34.09 to $35.08. The following table details ancillary revenue per scheduled service passenger from air-related charges and third party products:
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