Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Allegiant Travel CO | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 16,148,889 | |
Amendment Flag | false | |
Entity Central Index Key | 1,362,468 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well Known Seasoned Issuer | Yes | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 50,777 | $ 59,449 |
Restricted cash | 12,370 | 11,190 |
Short-term investments | 341,262 | 352,681 |
Accounts receivable | 64,344 | 71,057 |
Expendable parts, supplies and fuel, net | 18,335 | 17,647 |
Prepaid expenses | 27,941 | 23,931 |
Other current assets | 1,776 | 5,320 |
TOTAL CURRENT ASSETS | 516,805 | 541,275 |
Property and equipment, net | 1,635,821 | 1,512,415 |
Long-term investments | 85,659 | 78,570 |
Deferred major maintenance, net | 33,321 | 31,326 |
Deposits and other assets | 17,359 | 16,571 |
TOTAL ASSETS | 2,288,965 | 2,180,157 |
CURRENT LIABILITIES: | ||
Accounts payable | 29,801 | 20,108 |
Accrued liabilities | 119,448 | 105,127 |
Air traffic liability | 256,773 | 204,299 |
Current maturities of notes payable and capital leases, net of related costs | 154,850 | 214,761 |
TOTAL CURRENT LIABILITIES | 560,872 | 544,295 |
Long-term debt and capital leases, net of current maturities and related costs | 984,926 | 950,131 |
Deferred income taxes | 131,647 | 119,013 |
Other noncurrent liabilities | 11,716 | 13,407 |
TOTAL LIABILITIES: | 1,689,161 | 1,626,846 |
SHAREHOLDERS' EQUITY: | ||
Common stock, par value $.001 | 23 | 23 |
Treasury stock | (607,888) | (605,655) |
Additional paid in capital | 259,225 | 253,840 |
Accumulated other comprehensive loss, net | (3,959) | (2,840) |
Retained earnings | 952,403 | 907,943 |
TOTAL EQUITY | 599,804 | 553,311 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,288,965 | $ 2,180,157 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash dividends declared per share: | $ 0.70 | $ 0.70 |
OPERATING REVENUE: | ||
Passenger revenue | $ 396,771 | $ 347,836 |
Third party products | 10,325 | 12,742 |
Fixed fee contract revenue | 10,556 | 11,259 |
Other revenue | 7,792 | 8,174 |
Total operating revenue | 425,444 | 380,011 |
OPERATING EXPENSES: | ||
Aircraft fuel | 106,027 | 84,662 |
Salary and benefits | 112,963 | 96,298 |
Station operations | 37,584 | 31,832 |
Maintenance and repairs | 19,270 | 30,095 |
Depreciation and amortization | 28,149 | 30,549 |
Sales and marketing | 19,078 | 13,331 |
Aircraft lease rentals | 21 | 164 |
Other | 22,384 | 19,351 |
Total operating expenses | 345,476 | 306,282 |
OPERATING INCOME | 79,968 | 73,729 |
OTHER (INCOME) EXPENSE: | ||
Interest expense | 12,724 | 8,401 |
Interest income | (1,907) | (1,264) |
Other, net | 240 | 360 |
Total other expense | 10,577 | 6,777 |
INCOME BEFORE INCOME TAXES | 69,391 | 66,952 |
PROVISION FOR INCOME TAXES | 14,198 | 24,601 |
NET INCOME | $ 55,193 | $ 42,351 |
Earnings per share to common shareholders: | ||
Basic | $ 3.43 | $ 2.54 |
Diluted | $ 3.42 | $ 2.54 |
Shares used for computation: | ||
Basic | 15,889,000 | 16,382,000 |
Diluted | 15,898,000 | 16,405,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 55,193 | $ 42,351 |
Other comprehensive (loss) income: | ||
Change in available for sale securities, net of tax | (956) | 225 |
Foreign currency translation adjustments | 101 | (83) |
Change in derivatives, net of tax | (135) | (215) |
Reclassification of derivative gains into Other revenue | (129) | (289) |
Total other comprehensive loss | (1,119) | (362) |
TOTAL COMPREHENSIVE INCOME | $ 54,074 | $ 41,989 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net income | $ 55,193 | $ 42,351 |
Depreciation and amortization | 28,149 | 30,549 |
(Gain) loss on aircraft and other equipment disposals | (132) | 2,548 |
Provision for obsolescence of expendable parts, supplies and fuel | 586 | 830 |
Amortization of deferred financing costs | 494 | 365 |
Share-based compensation expense | 3,796 | 4,349 |
Deferred income taxes | 12,735 | 2,508 |
Changes in certain assets and liabilities: | ||
Decrease in accounts receivable | 6,713 | 23,162 |
Increase in prepaid expenses | (4,439) | (8,917) |
Increase in accounts payable | 9,959 | 9,394 |
Increase (decrease) in accrued liabilities | 14,267 | (10,561) |
Increase in air traffic liability | 52,474 | 50,078 |
Change in deferred major maintenance | (4,476) | (1,504) |
Other, net | (2,392) | 1,405 |
Net cash provided by operating activities | 172,927 | 146,557 |
INVESTING ACTIVITIES: | ||
Purchase of investment securities | (93,933) | (146,625) |
Proceeds from maturities of investment securities | 97,224 | 79,381 |
Purchase of property and equipment, including capitalized interest | (69,167) | (58,536) |
Other investing activities | 521 | 382 |
Net cash used in investing activities | (65,355) | (125,398) |
FINANCING ACTIVITIES: | ||
Cash dividends paid to shareholders | (11,295) | (11,671) |
Proceeds from the issuance of debt | 0 | 22,000 |
Repurchase of common stock | (2,233) | (4,923) |
Principal payments on debt and capital lease obligations | (102,914) | (26,425) |
Other financing activities | 1,378 | (513) |
Net cash used in financing activities | (115,064) | (21,532) |
Net change in cash, cash equivalents, and restricted cash | (7,492) | (373) |
CASH PAYMENTS FOR: | ||
Interest paid, net of amount capitalized | 17,902 | 14,080 |
Income taxes paid, net of refunds | 37 | 374 |
Cash and cash equivalents | 50,777 | 64,732 |
Restricted cash | 12,370 | 11,253 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 70,639 | 76,358 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ 63,147 | $ 75,985 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Allegiant Travel Company (the “Company”) and its majority-owned operating subsidiaries. The Company has no independent assets or operations, and all guarantees of the Company's publicly held debt are full and unconditional and joint and several. Any subsidiaries of the parent company other than the subsidiary guarantors are minor. All intercompany balances and transactions have been eliminated. These unaudited consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the financial position, results of operations, and cash flows of the Company for the respective periods presented. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto included in the annual report of the Company on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02 related to leases. This standard will require leases with durations greater than twelve months to be recognized on the balance sheet as a lease liability and a corresponding right-of-use asset, and is effective for interim and annual reporting periods beginning after December 15, 2018 with early adoption permitted. The Company will adopt this standard effective January 1, 2019. The Company has not completed the assessment of this new standard. The Company believes adoption will have a significant impact on its consolidated balance sheets but is not expected to significantly change the recognition, measurement or presentation of associated expenses within the consolidated statements of income or cash flows. Recently Adopted Standards In August 2016, the FASB issued ASU 2016-15, which amends the guidance in Accounting Standards Codification ("ASC") 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistency on this topic. The Company adopted this standard effective January 1, 2018. This standard was applied retrospectively, which resulted in the inclusion of restricted cash as shown in the beginning and ending balances of cash on the Consolidated Statements of Cash Flows. A reconciliation of cash, cash equivalents, and restricted cash from our Consolidated Statement of Cash Flows to the amounts reported within our Consolidated Balance Sheet is also included in a table below our Statement of Cash Flows. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)." This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive income (loss) ("AOCI") to retained earnings. Stranded tax effects occur when a change in enacted tax rates is recorded in income from operations, even in situations in which the related income tax effects of items in accumulated other comprehensive income (loss) were originally recognized in AOCI. This standard is effective for interim and annual reporting periods beginning after December 31, 2018, and early adoption is permitted. The Company adopted this standard effective January 1, 2018. Due to the adoption of this standard, $0.6 million was reclassified from AOCI to retained earnings as of March 31, 2018. In 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), (the "New Revenue Standard"). Under this ASU and subsequently issued amendments, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. We adopted this standard using the full retrospective transition method effective January 1, 2018 and recast prior year results as shown below. Under the New Revenue Standard, revenue for all air-related ancillary fees that are directly related to ticket revenue, such as seat fees and baggage fees, are no longer considered distinct performance obligations separate from passenger travel and are reclassified into passenger revenue. These are deemed part of the single performance obligation of providing passenger transportation. While the adoption of the New Revenue Standard did not have a significant effect on earnings, $154.7 million of air-related ancillary fees for the quarter ended March 31, 2018 are now classified as passenger revenue. The adoption of the New Revenue Standard resulted in a net reduction to our air traffic liability at December 31, 2017 of $5.9 million . This change resulted from the recognition of breakage revenue on issuance for credit vouchers that are expected to expire unused. In addition, we now defer recognition of revenues for fees associated with flight changes or cancellations rather than recognizing at the time the fee is incurred. The Company already recognizes revenue from the Co-brand credit card program on the deferral method. The Company has a significant contract with Bank of America to issue The Allegiant World Mastercard® in which points are earned and awarded to cardholders in exchange for consideration received under an agreement with a seven year scheduled duration expiring in 2023. Under this arrangement, the Company identified the following deliverables: travel points to be awarded (the travel component), use of the Company’s brand and access to its member lists, and certain other advertising and marketing elements (collectively the marketing component). Consideration received from the Company’s co-brand agreement is allocated between the two components based on the relative selling price of each deliverable. The Company applies a level of management judgment and estimation in determining the best estimate of selling price for each deliverable by considering multiple inputs and methods including, but not limited to, the redemption value of points awarded, discounted cash flows, brand value, volume discounts, published selling prices, number of points to be awarded and number of points to be redeemed. See Note 2, "Revenue Recognition," for more information. Impact of Recently Adopted Standards We recast certain prior period amounts to conform with the adoption of the New Revenue Standard as shown in the tables below. Three Months Ended March 31, 2017 As Previously Current (in thousands, except per share data) Reported Adjustments Presentation Income Statement: Passenger revenue* $ 212,097 $ 135,739 $ 347,836 Air-related charges 131,565 (131,565 ) — Sales and marketing 9,998 3,333 13,331 Income tax provision 24,479 122 24,601 Net income 41,632 719 42,351 Diluted earnings per share $ 2.50 $ 0.04 $ 2.54 *Passenger revenue previously reported as Scheduled service revenue. December 31, 2017 As Previously Current (in thousands) Reported Adjustments Presentation Balance Sheet: Air traffic liability $ 210,184 $ (5,885 ) $ 204,299 Deferred income taxes 118,492 521 119,013 Retained earnings 902,579 5,364 907,943 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | Property and Equipment Property and equipment (in thousands): As of March 31, 2018 As of December 31, 2017 Flight equipment, including pre-delivery deposits $ 1,668,984 $ 1,539,433 Computer hardware and software 124,728 123,675 Other property and equipment 142,630 125,855 Total property and equipment 1,936,342 1,788,963 Less accumulated depreciation and amortization (300,521 ) (276,548 ) Property and equipment, net $ 1,635,821 $ 1,512,415 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt and capital lease obligations (in thousands): As of March 31, 2018 As of December 31, 2017 Fixed-rate notes payable and capital lease obligations due through 2029 $ 542,352 $ 465,462 Variable-rate notes payable due through 2027 597,424 699,430 Total long-term debt and capital lease obligations, net of related costs 1,139,776 1,164,892 Less current maturities, net of related costs 154,850 214,761 Long-term debt and capital lease obligations, net of current maturities and related costs $ 984,926 $ 950,131 Weighted average fixed-interest rate on debt 5.4 % 5.4 % Weighted average variable-interest rate on debt 3.8 % 3.3 % Maturities of long-term debt and capital lease obligations for the remainder of 2018 and for the next five years and thereafter, in the aggregate, are: remaining in 2018 - $129.9 million ; 2019 - $552.2 million ; 2020 - $99.8 million ; 2021 - $72.8 million ; 2022 - $45.5 million ; and $239.6 million thereafter. Secured Debt During the three months ended March 31, 2018, the Company did not enter into any new loan agreements. Senior Secured Revolving Credit Facility In 2015, the Company, through a wholly owned subsidiary, entered into a senior secured revolving credit facility under which it was entitled to borrow up to $56.0 million . As of December 31, 2017, the balance under this facility was $41.3 million , net of related costs, with five Airbus aircraft included in the collateral pool. In March 2018, the Company paid off the remaining balance under this facility. On March 30, 2018, the Company amended this facility and will now be able to borrow up to $81.0 million based on the value of Airbus A320 Series aircraft which the Company may choose to place in the collateral pool. The facility has a term of 24 months. Any notes under the facility will bear interest at a floating rate based on LIBOR plus 1.75 percent . An individual aircraft may remain in the collateral pool for up to two years. As of March 31, 2018, there was no balance on this credit facility. General Unsecured Senior Notes In June 2014, the Company completed an offering of $300.0 million aggregate principal amount of senior unsecured obligations (the "Notes") which will mature in July 2019. In December 2016, the Company completed an offering of an additional $150.0 million principal amount of these notes, which were issued at a price of 101.5 percent of the principal amount, plus accrued interest from July 15, 2016. The Notes bear interest at a rate of 5.5 percent per year, payable in cash semi-annually, on January 15 and July 15 of each year. The indenture pursuant to which the Notes were issued includes operating and financial restrictions on the Company. These restrictions limit or restrict, among other things, the Company’s ability and the ability of its restricted subsidiaries to (i) incur additional indebtedness; (ii) incur liens; (iii) make restricted payments (including paying dividends on, redeeming, repurchasing or retiring capital stock); (iv) make investments; and (v) consolidate, merge or sell all or substantially all of its assets. These covenants are subject to various exceptions and qualifications under the terms of the indenture. As of December 31, 2017 and also March 31, 2018, the Company exceeded the consolidated total leverage ratio limit, which could affect the ability to make restricted payments in future periods after exhaustion of various exceptions. However, we do not expect this to have any impact on the restricted payments we routinely make in the ordinary course of business. The calculation is made on a quarterly basis based on the trailing 12 months. Capital Leases The Company has capital lease obligations related to aircraft, which significantly impacted our recognized assets and liabilities as of March 31, 2018 , but did not result in any material cash receipts or cash payments during the quarter. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Measurement Inputs, Disclosure | Fair Value Measurements The Company measures certain financial assets and liabilities at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received by selling an asset or paid to transfer a liability in an orderly transaction between market participants. Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than Level 1 inputs that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company uses the market approach valuation technique to determine fair value for investment securities. The assets classified as Level 1 consist of money market funds for which original cost approximates fair value. The assets classified as Level 2 consist of commercial paper, municipal debt securities, federal agency debt securities, US Treasury Bonds, and corporate debt securities, which are valued using quoted market prices or alternative pricing sources including transactions involving identical or comparable assets and models utilizing market observable inputs. The Company has no investment securities classified as Level 3. For those assets classified as Level 2 that are not in active markets, the Company obtains fair value from pricing sources using quoted market prices for identical or comparable instruments, and uses pricing models which include all significant observable inputs: maturity dates, issue dates, settlement dates, benchmark yields, reported trades, broker-dealer quotes, issue spreads, benchmark securities, bids, offers and other market related data. These inputs are observable or can be derived from, or corroborated by, observable market data for substantially the full term of the asset. The fair value of the Company's derivative instrument is determined using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions and therefore have been classified as Level 2. Inputs used in these standard valuation models for derivative instruments include the applicable exchange and interest rates. Financial instruments measured at fair value on a recurring basis (in thousands): As of March 31, 2018 As of December 31, 2017 Total Level 1 Level 2 Total Level 1 Level 2 Cash equivalents Commercial paper $ 33,473 $ — $ 33,473 $ 27,910 $ — $ 27,910 Municipal debt securities 3,102 — 3,102 2,782 — 2,782 Money market funds 889 889 — 1,297 1,297 — Total cash equivalents 37,464 889 36,575 31,989 1,297 30,692 Short-term Corporate debt securities 122,875 — 122,875 107,878 — 107,878 Commercial paper 101,058 — 101,058 108,678 — 108,678 Municipal debt securities 76,381 — 76,381 101,290 — 101,290 Federal agency debt securities 39,529 — 39,529 31,428 — 31,428 US Treasury Bonds 1,419 — 1,419 3,407 — 3,407 Total short-term 341,262 — 341,262 352,681 — 352,681 Long-term Corporate debt securities 55,874 — 55,874 60,396 — 60,396 Federal agency debt securities 17,137 — 17,137 5,775 — 5,775 Municipal debt securities 9,658 — 9,658 9,405 — 9,405 US Treasury Bonds 2,990 — 2,990 2,994 — 2,994 Derivative instruments 107 — 107 282 — 282 Total long-term 85,766 — 85,766 78,852 — 78,852 Total financial instruments $ 464,492 $ 889 $ 463,603 $ 463,522 $ 1,297 $ 462,225 The fair value of the Company’s publicly held long-term debt is determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets; therefore, the Company has categorized its publicly held debt as Level 2. The remaining debt agreements are not publicly held. The Company has determined the estimated fair value of these notes to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable and, therefore, could be sensitive to changes in inputs. The Company utilizes the discounted cash flow method to estimate the fair value of Level 3 debt. Carrying value and estimated fair value of long-term debt, including current maturities and without reduction for related costs (in thousands): As of March 31, 2018 As of December 31, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Hierarchy Level Publicly held debt $ 451,107 $ 459,001 $ 451,321 $ 462,604 2 Non-publicly held debt 616,974 555,099 719,681 660,065 3 Total long-term debt $ 1,068,081 $ 1,014,100 $ 1,171,002 $ 1,122,669 Due to the short-term nature, carrying amounts of cash, cash equivalents, restricted cash, accounts receivable and accounts payable approximate fair value. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Shareholders’ Equity The Company is authorized by the Board of Directors to acquire its stock through open market purchases under its share repurchase program. As repurchase authority is used, the Board of Directors has, to date, authorized additional expenditures for share repurchases. For the three months ended March 31, 2018, the Company had no open market share repurchases. For the three months ended March 31, 2017, open market share repurchases consisted of the following: Three Months Ended March 31, 2018 2017 Shares repurchased (not in thousands) (1) None 15,440 Average price per share NA $ 161.92 Total (in thousands) None $ 2,500 (1) Share amounts shown above include only open market repurchases and do not include shares withheld from employees for tax withholding obligations related to restricted stock vestings. During the three months ended March 31, 2018 , the Company declared and paid recurring cash dividends of $0.70 per share, or $11.3 million . |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic and diluted earnings per share are computed pursuant to the two-class method. Under this method, the Company attributes net income to two classes: common stock and unvested restricted stock. Unvested restricted stock awards granted to employees under the Company’s Long-Term Incentive Plan are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock. Diluted net income per share is calculated using the more dilutive of the two methods. Under both methods, the exercise of employee stock options is assumed using the treasury stock method. The assumption of vesting of restricted stock, however, differs: 1. Assume vesting of restricted stock using the treasury stock method. 2. Assume unvested restricted stock awards are not vested, and allocate earnings to common shares and unvested restricted stock awards using the two-class method. For the three months ended March 31, 2018 , the second method, which assumes unvested awards are not vested, was used in the computation because it was more dilutive than the first method. The following table sets forth the computation of net income per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in table are in thousands): Three Months Ended March 31, 2018 2017 Basic: Net income $ 55,193 $ 42,351 Less net income allocated to participating securities (768 ) (694 ) Net income attributable to common stock $ 54,425 $ 41,657 Net income per share, basic $ 3.43 $ 2.54 Weighted-average shares outstanding 15,889 16,382 Diluted: Net income $ 55,193 $ 42,351 Less net income allocated to participating securities (768 ) (693 ) Net income attributable to common stock $ 54,425 $ 41,658 Net income per share, diluted $ 3.42 $ 2.54 Weighted-average shares outstanding 15,889 16,382 Dilutive effect of stock options and restricted stock 46 91 Adjusted weighted-average shares outstanding under treasury stock method 15,935 16,473 Participating securities excluded under two-class method (37 ) (68 ) Adjusted weighted-average shares outstanding under two-class method 15,898 16,405 For the three months ended March 31, 2018 , anti-dilutive shares excluded from the calculation of earnings per share were 1,463 shares (not in thousands). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of March 31, 2018 , the Company had firm commitments to purchase the following aircraft: Aircraft Type Number of Aircraft Under Contract Airbus A319 1 Airbus A320 13 In addition, the Company has entered into lease agreements for an additional 13 Airbus A320 aircraft, three of which have been delivered but were not in service as of March 31, 2018. The remaining 10 aircraft are expected to be delivered by the end of 2018. Future minimum fixed payments for the Company's commitments related to the acquisition of aircraft (including aircraft lease obligations), airport fees under use and lease agreements, and other operating lease obligations are as follows as of March 31, 2018 (in thousands): As of March 31, 2018 Remaining in 2018 $ 128,042 2019 124,842 2020 69,488 2021 28,582 2022 25,004 Thereafter 164,987 Total commitments $ 540,945 Contingencies The Company is subject to certain legal and administrative actions it considers routine to its business activities. The Company believes the ultimate outcome of any pending legal or administrative matters will not have a material adverse impact on its financial position, liquidity or results of operations. |
Related Party
Related Party | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions During the three months ended March 31, 2018 , the Company did not make any payments to related parties. Entities owned or controlled by the Company's Chairman and CEO have been paid for the building of corporate training content. This approach to training focuses on concept mastery, recognizing that individuals learn at varying paces, through different styles, and is designed to ensure the trainee fully understands each module before moving on to more advanced training. During the three months ended March 31, 2017 , the Company made payments to these entities of $0.2 million . No further payments are expected. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition Passenger Revenue Passenger revenue is primarily composed of passenger ticket sales, credit voucher breakage, seat fees, baggage fees, and other travel-related services performed in conjunction with a passenger’s flight. Three Months Ended March 31, 2018 2017 Scheduled service $ 238,520 $ 214,263 Air-related ancillary charges 154,717 133,223 Co-brand redemption 3,534 350 Total passenger revenue $ 396,771 $ 347,836 Scheduled service Passenger tickets. We provide scheduled air transportation on limited-frequency, nonstop flights predominantly between under-served cities and popular leisure destinations. We record sales of passenger tickets to be flown by us in air traffic liability. Passenger revenue is recognized when we provide transportation or when ticket voucher breakage occurs. We recognized $155.9 million in passenger revenue during the three months ended March 31, 2018 that was recorded in our air traffic liability balance of $204.3 million at December 31, 2017. We expect the remaining balance of the December 31, 2017 air traffic liability to be recognized during the remainder of 2018. Credit voucher breakage. We estimate the value of vouchers that will expire unused and recognize revenue at the time the credit voucher is issued. Air-related Air-related revenue is primarily composed of services performed in conjunction with a passenger's flight including baggage fees, the use of the Company’s website to purchase scheduled service transportation, advance seat assignments, and other services. We recognize revenue for these services when the related transportation service is provided. Prior to the adoption of the New Revenue Standard, the majority of these fees were classified separately as Ancillary air-related charges. Co-brand redemption In relation to the travel component of the contract with Bank of America, the Company has a performance obligation to provide cardholders with points to be used for future travel award redemptions. Therefore, consideration received from Bank of America related to the travel component is deferred based on its relative selling price and is recognized into passenger revenue when the points are redeemed and the transportation is provided. See below for a discussion of the marketing component. Points liability Balance at January 1, 2018 $ 8,903 Points awarded 3,233 Points redeemed (3,534 ) Balance at March 31, 2018 $ 8,602 As of March 31, 2018, the amount of deferred revenue allocated to the co-branded credit card program is $8.6 million and is reflected in the Company's consolidated balance sheet with the short-term component in Accrued liabilities and the remainder in Other noncurrent liabilities. This is estimated to be recognized over the next two years. Third Party Products Third party products revenue is generated from the sale of hotel rooms, rental cars, ticket attractions and co-brand marketing revenue. Revenue from the sale of hotel rooms, rental cars, and ticket attractions is recognized at the time the product is utilized, such as the time a purchased hotel room is occupied. The Company follows accounting standards for determining whether it is a principal or an agent in revenue arrangements to determine the amount of revenue to be recognized for each element of a bundled sale involving air-related charges and third party products in addition to airfare. Revenue from the sale of third party products is recorded net (treatment as an agent) of amounts paid to wholesale providers, travel agent commissions, and transaction costs. Pursuant to the co-brand agreement with Bank of America, the Company has various performance obligations collectively referred to as the marketing component. These obligations consist of use of the Company’s brand and access to its member lists, and certain other advertising and marketing elements. The marketing component is recorded as third party products revenue in the period in which points are awarded to the credit card holders. Fixed Fee Contract Revenue Fixed fee contract revenue consists of agreements to provide charter service on a year-round and ad hoc basis. Fixed fee contract revenue is recognized when the transportation is provided. Other Revenue Other revenue is generated from leased aircraft, engines, and other miscellaneous sources. Lease revenue is recognized ratably over the lease term. Accounts Receivable Accounts receivable, reflected on the accompanying Consolidated Balance Sheet, primarily consist of amounts due from credit card companies associated with passenger revenue. These receivables are short-term, generally settled within a few days of sale. Bad debt expense, which occurs in the form of credit card chargebacks, was not material in any period presented. Taxes and Fees Various taxes and fees, assessed on the sale of tickets to customers, are collected by the Company serving as an agent, and remitted to taxing authorities. These taxes and fees are not included as revenue in the Company’s consolidated statements of income and are recorded as a liability until remitted to the appropriate taxing authority. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies - (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Allegiant Travel Company (the “Company”) and its majority-owned operating subsidiaries. The Company has no independent assets or operations, and all guarantees of the Company's publicly held debt are full and unconditional and joint and several. Any subsidiaries of the parent company other than the subsidiary guarantors are minor. All intercompany balances and transactions have been eliminated. These unaudited consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly the financial position, results of operations, and cash flows of the Company for the respective periods presented. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto included in the annual report of the Company on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. |
New Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02 related to leases. This standard will require leases with durations greater than twelve months to be recognized on the balance sheet as a lease liability and a corresponding right-of-use asset, and is effective for interim and annual reporting periods beginning after December 15, 2018 with early adoption permitted. The Company will adopt this standard effective January 1, 2019. The Company has not completed the assessment of this new standard. The Company believes adoption will have a significant impact on its consolidated balance sheets but is not expected to significantly change the recognition, measurement or presentation of associated expenses within the consolidated statements of income or cash flows. Recently Adopted Standards In August 2016, the FASB issued ASU 2016-15, which amends the guidance in Accounting Standards Codification ("ASC") 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistency on this topic. The Company adopted this standard effective January 1, 2018. This standard was applied retrospectively, which resulted in the inclusion of restricted cash as shown in the beginning and ending balances of cash on the Consolidated Statements of Cash Flows. A reconciliation of cash, cash equivalents, and restricted cash from our Consolidated Statement of Cash Flows to the amounts reported within our Consolidated Balance Sheet is also included in a table below our Statement of Cash Flows. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)." This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive income (loss) ("AOCI") to retained earnings. Stranded tax effects occur when a change in enacted tax rates is recorded in income from operations, even in situations in which the related income tax effects of items in accumulated other comprehensive income (loss) were originally recognized in AOCI. This standard is effective for interim and annual reporting periods beginning after December 31, 2018, and early adoption is permitted. The Company adopted this standard effective January 1, 2018. Due to the adoption of this standard, $0.6 million was reclassified from AOCI to retained earnings as of March 31, 2018. In 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), (the "New Revenue Standard"). Under this ASU and subsequently issued amendments, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. We adopted this standard using the full retrospective transition method effective January 1, 2018 and recast prior year results as shown below. Under the New Revenue Standard, revenue for all air-related ancillary fees that are directly related to ticket revenue, such as seat fees and baggage fees, are no longer considered distinct performance obligations separate from passenger travel and are reclassified into passenger revenue. These are deemed part of the single performance obligation of providing passenger transportation. While the adoption of the New Revenue Standard did not have a significant effect on earnings, $154.7 million of air-related ancillary fees for the quarter ended March 31, 2018 are now classified as passenger revenue. The adoption of the New Revenue Standard resulted in a net reduction to our air traffic liability at December 31, 2017 of $5.9 million . This change resulted from the recognition of breakage revenue on issuance for credit vouchers that are expected to expire unused. In addition, we now defer recognition of revenues for fees associated with flight changes or cancellations rather than recognizing at the time the fee is incurred. The Company already recognizes revenue from the Co-brand credit card program on the deferral method. The Company has a significant contract with Bank of America to issue The Allegiant World Mastercard® in which points are earned and awarded to cardholders in exchange for consideration received under an agreement with a seven year scheduled duration expiring in 2023. Under this arrangement, the Company identified the following deliverables: travel points to be awarded (the travel component), use of the Company’s brand and access to its member lists, and certain other advertising and marketing elements (collectively the marketing component). Consideration received from the Company’s co-brand agreement is allocated between the two components based on the relative selling price of each deliverable. The Company applies a level of management judgment and estimation in determining the best estimate of selling price for each deliverable by considering multiple inputs and methods including, but not limited to, the redemption value of points awarded, discounted cash flows, brand value, volume discounts, published selling prices, number of points to be awarded and number of points to be redeemed. See Note 2, "Revenue Recognition," for more information. Impact of Recently Adopted Standards We recast certain prior period amounts to conform with the adoption of the New Revenue Standard as shown in the tables below. Three Months Ended March 31, 2017 As Previously Current (in thousands, except per share data) Reported Adjustments Presentation Income Statement: Passenger revenue* $ 212,097 $ 135,739 $ 347,836 Air-related charges 131,565 (131,565 ) — Sales and marketing 9,998 3,333 13,331 Income tax provision 24,479 122 24,601 Net income 41,632 719 42,351 Diluted earnings per share $ 2.50 $ 0.04 $ 2.54 *Passenger revenue previously reported as Scheduled service revenue. December 31, 2017 As Previously Current (in thousands) Reported Adjustments Presentation Balance Sheet: Air traffic liability $ 210,184 $ (5,885 ) $ 204,299 Deferred income taxes 118,492 521 119,013 Retained earnings 902,579 5,364 907,943 |
Summary of Significant Accoun16
Summary of Significant Accounting Policies Schedule Of New Accounting Pronouncements And Changes In Accounting Principles (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | We recast certain prior period amounts to conform with the adoption of the New Revenue Standard as shown in the tables below. Three Months Ended March 31, 2017 As Previously Current (in thousands, except per share data) Reported Adjustments Presentation Income Statement: Passenger revenue* $ 212,097 $ 135,739 $ 347,836 Air-related charges 131,565 (131,565 ) — Sales and marketing 9,998 3,333 13,331 Income tax provision 24,479 122 24,601 Net income 41,632 719 42,351 Diluted earnings per share $ 2.50 $ 0.04 $ 2.54 *Passenger revenue previously reported as Scheduled service revenue. December 31, 2017 As Previously Current (in thousands) Reported Adjustments Presentation Balance Sheet: Air traffic liability $ 210,184 $ (5,885 ) $ 204,299 Deferred income taxes 118,492 521 119,013 Retained earnings 902,579 5,364 907,943 |
Summary of Significant Accoun17
Summary of Significant Accounting Policies Disaggregation of Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Disaggregation of Revenue [Table Text Block] | Passenger revenue is primarily composed of passenger ticket sales, credit voucher breakage, seat fees, baggage fees, and other travel-related services performed in conjunction with a passenger’s flight. Three Months Ended March 31, 2018 2017 Scheduled service $ 238,520 $ 214,263 Air-related ancillary charges 154,717 133,223 Co-brand redemption 3,534 350 Total passenger revenue $ 396,771 $ 347,836 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment | Property and equipment (in thousands): As of March 31, 2018 As of December 31, 2017 Flight equipment, including pre-delivery deposits $ 1,668,984 $ 1,539,433 Computer hardware and software 124,728 123,675 Other property and equipment 142,630 125,855 Total property and equipment 1,936,342 1,788,963 Less accumulated depreciation and amortization (300,521 ) (276,548 ) Property and equipment, net $ 1,635,821 $ 1,512,415 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt and capital lease obligations (in thousands): As of March 31, 2018 As of December 31, 2017 Fixed-rate notes payable and capital lease obligations due through 2029 $ 542,352 $ 465,462 Variable-rate notes payable due through 2027 597,424 699,430 Total long-term debt and capital lease obligations, net of related costs 1,139,776 1,164,892 Less current maturities, net of related costs 154,850 214,761 Long-term debt and capital lease obligations, net of current maturities and related costs $ 984,926 $ 950,131 Weighted average fixed-interest rate on debt 5.4 % 5.4 % Weighted average variable-interest rate on debt 3.8 % 3.3 % |
Long-Term Debt Schedule of Matu
Long-Term Debt Schedule of Maturities of Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Maturities of Long-Term Debt [Abstract] | |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt and capital lease obligations for the remainder of 2018 and for the next five years and thereafter, in the aggregate, are: remaining in 2018 - $129.9 million ; 2019 - $552.2 million ; 2020 - $99.8 million ; 2021 - $72.8 million ; 2022 - $45.5 million ; and $239.6 million thereafter. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value On a Recurring Basis | Financial instruments measured at fair value on a recurring basis (in thousands): As of March 31, 2018 As of December 31, 2017 Total Level 1 Level 2 Total Level 1 Level 2 Cash equivalents Commercial paper $ 33,473 $ — $ 33,473 $ 27,910 $ — $ 27,910 Municipal debt securities 3,102 — 3,102 2,782 — 2,782 Money market funds 889 889 — 1,297 1,297 — Total cash equivalents 37,464 889 36,575 31,989 1,297 30,692 Short-term Corporate debt securities 122,875 — 122,875 107,878 — 107,878 Commercial paper 101,058 — 101,058 108,678 — 108,678 Municipal debt securities 76,381 — 76,381 101,290 — 101,290 Federal agency debt securities 39,529 — 39,529 31,428 — 31,428 US Treasury Bonds 1,419 — 1,419 3,407 — 3,407 Total short-term 341,262 — 341,262 352,681 — 352,681 Long-term Corporate debt securities 55,874 — 55,874 60,396 — 60,396 Federal agency debt securities 17,137 — 17,137 5,775 — 5,775 Municipal debt securities 9,658 — 9,658 9,405 — 9,405 US Treasury Bonds 2,990 — 2,990 2,994 — 2,994 Derivative instruments 107 — 107 282 — 282 Total long-term 85,766 — 85,766 78,852 — 78,852 Total financial instruments $ 464,492 $ 889 $ 463,603 $ 463,522 $ 1,297 $ 462,225 |
Fair Value, Liabilities Measured on Recurring Basis | Carrying value and estimated fair value of long-term debt, including current maturities and without reduction for related costs (in thousands): As of March 31, 2018 As of December 31, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Hierarchy Level Publicly held debt $ 451,107 $ 459,001 $ 451,321 $ 462,604 2 Non-publicly held debt 616,974 555,099 719,681 660,065 3 Total long-term debt $ 1,068,081 $ 1,014,100 $ 1,171,002 $ 1,122,669 |
Stockholders' Equity Repurchase
Stockholders' Equity Repurchases (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |
Treasury Stock [Text Block] | For the three months ended March 31, 2018, the Company had no open market share repurchases. For the three months ended March 31, 2017, open market share repurchases consisted of the following: Three Months Ended March 31, 2018 2017 Shares repurchased (not in thousands) (1) None 15,440 Average price per share NA $ 161.92 Total (in thousands) None $ 2,500 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Net Income Per Share, Basic and Diluted | The following table sets forth the computation of net income per share, on a basic and diluted basis, for the periods indicated (share count and dollar amounts other than per-share amounts in table are in thousands): Three Months Ended March 31, 2018 2017 Basic: Net income $ 55,193 $ 42,351 Less net income allocated to participating securities (768 ) (694 ) Net income attributable to common stock $ 54,425 $ 41,657 Net income per share, basic $ 3.43 $ 2.54 Weighted-average shares outstanding 15,889 16,382 Diluted: Net income $ 55,193 $ 42,351 Less net income allocated to participating securities (768 ) (693 ) Net income attributable to common stock $ 54,425 $ 41,658 Net income per share, diluted $ 3.42 $ 2.54 Weighted-average shares outstanding 15,889 16,382 Dilutive effect of stock options and restricted stock 46 91 Adjusted weighted-average shares outstanding under treasury stock method 15,935 16,473 Participating securities excluded under two-class method (37 ) (68 ) Adjusted weighted-average shares outstanding under two-class method 15,898 16,405 |
Commitments and Contingencies C
Commitments and Contingencies Commitments to Purchase (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments to Purchase Aircraft [Abstract] | |
Long-term Purchase Commitment | As of March 31, 2018 , the Company had firm commitments to purchase the following aircraft: Aircraft Type Number of Aircraft Under Contract Airbus A319 1 Airbus A320 13 |
Commitments and Contingencies P
Commitments and Contingencies Payments Related to Commitments to Purchase (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payments Related to Commitments to Purchase [Abstract] | |
Long-term Purchase Commitment [Table Text Block] | Future minimum fixed payments for the Company's commitments related to the acquisition of aircraft (including aircraft lease obligations), airport fees under use and lease agreements, and other operating lease obligations are as follows as of March 31, 2018 (in thousands): As of March 31, 2018 Remaining in 2018 $ 128,042 2019 124,842 2020 69,488 2021 28,582 2022 25,004 Thereafter 164,987 Total commitments $ 540,945 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | In relation to the travel component of the contract with Bank of America, the Company has a performance obligation to provide cardholders with points to be used for future travel award redemptions. Therefore, consideration received from Bank of America related to the travel component is deferred based on its relative selling price and is recognized into passenger revenue when the points are redeemed and the transportation is provided. See below for a discussion of the marketing component. Points liability Balance at January 1, 2018 $ 8,903 Points awarded 3,233 Points redeemed (3,534 ) Balance at March 31, 2018 $ 8,602 As of March 31, 2018, the amount of deferred revenue allocated to the co-branded credit card program is $8.6 million and is reflected in the Company's consolidated balance sheet with the short-term component in Accrued liabilities and the remainder in Other noncurrent liabilities. This is estimated to be recognized over the next two years. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Adjustments for New Accounting Pronouncements [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 600 | ||
Passenger revenue | 396,771 | $ 347,836 | |
Air-related charges | 0 | ||
Sales and marketing | 19,078 | 13,331 | |
Income tax provision | 14,198 | 24,601 | |
Net income | $ 55,193 | $ 42,351 | |
Diluted earnings per share | $ 3.42 | $ 2.54 | |
Air traffic liability | $ 256,773 | $ 204,299 | |
Deferred income taxes | 131,647 | 119,013 | |
Retained earnings | 952,403 | 907,943 | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Adjustments for New Accounting Pronouncements [Line Items] | |||
Passenger revenue | $ 212,097 | ||
Air-related charges | $ 154,700 | 131,565 | |
Sales and marketing | 9,998 | ||
Income tax provision | 24,479 | ||
Net income | $ 41,632 | ||
Diluted earnings per share | $ 2.50 | ||
Air traffic liability | 210,184 | ||
Deferred income taxes | 118,492 | ||
Retained earnings | 902,579 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Adjustments for New Accounting Pronouncements [Line Items] | |||
Passenger revenue | $ 135,739 | ||
Air-related charges | (131,565) | ||
Sales and marketing | 3,333 | ||
Income tax provision | 122 | ||
Net income | $ 719 | ||
Diluted earnings per share | $ 0.04 | ||
Air traffic liability | 5,885 | ||
Deferred income taxes | 521 | ||
Retained earnings | $ 5,364 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Flight equipment, including pre-delivery deposits | $ 1,668,984 | $ 1,539,433 |
Computer Hardware and Software | 124,728 | 123,675 |
Other Property and Equipment | 142,630 | 125,855 |
Total property and equipment | 1,936,342 | 1,788,963 |
Less accumulated depreciation and amortization | 300,521 | 276,548 |
Property and equipment, net | $ 1,635,821 | $ 1,512,415 |
Long-Term Debt Long-Term Debt -
Long-Term Debt Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Notes Payable | $ 1,068,081 | $ 1,171,002 |
Secured Long-term Debt, Noncurrent | 1,139,776 | 1,164,892 |
Less current maturities | 154,850 | 214,761 |
Long-term debt and capital leases, net of current maturities and related costs | 984,926 | 950,131 |
Fixed-rate notes payable and capital lease obligations due through 2029 | ||
Debt Instrument [Line Items] | ||
Notes Payable | 542,352 | 465,462 |
Variable-rate notes payable due through 2027 | ||
Debt Instrument [Line Items] | ||
Notes Payable | $ 597,424 | $ 699,430 |
Weighted average fixed-interest rate on debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.40% | 5.40% |
Weighted average variable-interest rate on debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 3.80% | 3.30% |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 01, 2016 | Dec. 31, 2015 | Jun. 01, 2014 | |
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 129,900 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 552,200 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 99,800 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 72,800 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 45,500 | ||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 239,600 | ||||
Secured Long-term Debt, Noncurrent | 1,139,776 | $ 1,164,892 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 81,000 | $ 56,000 | |||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 41,300 | ||||
Line of Credit Facility, Interest Rate During Period | 1.75% | ||||
Unsecured Long-term Debt, Noncurrent | $ 150,000 | $ 300,000 | |||
Debt Instrument, Redemption Price, Percentage | 101.50% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||||
Airbus A320 Aircraft Series [Member] | |||||
Debt Instrument, Collateral | 5 |
Long-Term Debt Schedule of Ma31
Long-Term Debt Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Interest Rate During Period | 1.75% | |
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 129,900 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 552,200 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 99,800 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 72,800 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 45,500 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 239,600 | |
Long-term Debt, Fair Value | $ 1,139,776 | $ 1,164,892 |
Fair Value Measurements (Detail
Fair Value Measurements (Detail) - Fair Value Measurements at Reporting Date Using - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Measurements, Recurring | ||
Available-for-sale Securities | $ 464,492 | $ 463,522 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 889 | 1,297 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 463,603 | 462,225 |
Short-term Investments | Fair Value, Measurements, Recurring | ||
Available-for-sale Securities | 341,262 | 352,681 |
Short-term Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 0 | 0 |
Short-term Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 341,262 | 352,681 |
Short-term Investments | Fair Value, Measurements, Recurring | Commercial paper | ||
Available-for-sale Securities | 101,058 | 108,678 |
Short-term Investments | Fair Value, Measurements, Recurring | Commercial paper | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 0 | 0 |
Short-term Investments | Fair Value, Measurements, Recurring | Commercial paper | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 101,058 | 108,678 |
Short-term Investments | Fair Value, Measurements, Recurring | Federal agency debt securities | ||
Available-for-sale Securities | 39,529 | 31,428 |
Short-term Investments | Fair Value, Measurements, Recurring | Federal agency debt securities | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 0 | 0 |
Short-term Investments | Fair Value, Measurements, Recurring | Federal agency debt securities | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 39,529 | 31,428 |
Short-term Investments | Fair Value, Measurements, Recurring | Municipal debt securities | ||
Available-for-sale Securities | 76,381 | 101,290 |
Short-term Investments | Fair Value, Measurements, Recurring | Municipal debt securities | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 0 | 0 |
Short-term Investments | Fair Value, Measurements, Recurring | Municipal debt securities | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 76,381 | 101,290 |
Short-term Investments | Fair Value, Measurements, Recurring | Corporate debt securities | ||
Available-for-sale Securities | 122,875 | 107,878 |
Short-term Investments | Fair Value, Measurements, Recurring | Corporate debt securities | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 0 | 0 |
Short-term Investments | Fair Value, Measurements, Recurring | Corporate debt securities | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 122,875 | 107,878 |
Short-term Investments | Fair Value, Measurements, Recurring | US Treasury Securities | ||
Available-for-sale Securities | 1,419 | 3,407 |
Short-term Investments | Fair Value, Measurements, Recurring | US Treasury Securities | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 0 | 0 |
Short-term Investments | Fair Value, Measurements, Recurring | US Treasury Securities | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 1,419 | 3,407 |
Long Term Investments | Municipal debt securities | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 0 | 0 |
Long Term Investments | Municipal debt securities | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 9,658 | 9,405 |
Long Term Investments | Fair Value, Measurements, Recurring | ||
Available-for-sale Securities | 85,766 | 78,852 |
Long Term Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 0 | 0 |
Long Term Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 85,766 | 78,852 |
Long Term Investments | Fair Value, Measurements, Recurring | Federal agency debt securities | ||
Available-for-sale Securities | 17,137 | 5,775 |
Long Term Investments | Fair Value, Measurements, Recurring | Federal agency debt securities | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 0 | 0 |
Long Term Investments | Fair Value, Measurements, Recurring | Federal agency debt securities | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 17,137 | 5,775 |
Long Term Investments | Fair Value, Measurements, Recurring | Municipal debt securities | ||
Available-for-sale Securities | 9,658 | 9,405 |
Long Term Investments | Fair Value, Measurements, Recurring | Corporate debt securities | ||
Available-for-sale Securities | 55,874 | 60,396 |
Long Term Investments | Fair Value, Measurements, Recurring | Corporate debt securities | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 0 | 0 |
Long Term Investments | Fair Value, Measurements, Recurring | Corporate debt securities | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 55,874 | 60,396 |
Long Term Investments | Fair Value, Measurements, Recurring | US Treasury Securities | ||
Available-for-sale Securities | 2,990 | 2,994 |
Long Term Investments | Fair Value, Measurements, Recurring | US Treasury Securities | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 0 | 0 |
Long Term Investments | Fair Value, Measurements, Recurring | US Treasury Securities | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 2,990 | 2,994 |
Long Term Investments | Fair Value, Measurements, Recurring | Derivative Financial Instruments, Assets | ||
Available-for-sale Securities | 107 | 282 |
Long Term Investments | Fair Value, Measurements, Recurring | Derivative Financial Instruments, Assets | Fair Value, Inputs, Level 1 | ||
Available-for-sale Securities | 0 | 0 |
Long Term Investments | Fair Value, Measurements, Recurring | Derivative Financial Instruments, Assets | Fair Value, Inputs, Level 2 | ||
Available-for-sale Securities | 107 | 282 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | ||
Cash Equivalents | 37,464 | 31,989 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Cash Equivalents | 889 | 1,297 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Cash Equivalents | 36,575 | 30,692 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | US Treasury Bonds | ||
Cash Equivalents | 889 | 1,297 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | US Treasury Bonds | Fair Value, Inputs, Level 1 | ||
Cash Equivalents | 889 | 1,297 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | US Treasury Bonds | Fair Value, Inputs, Level 2 | ||
Cash Equivalents | 0 | 0 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Commercial paper | ||
Cash Equivalents | 33,473 | 27,910 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Commercial paper | Fair Value, Inputs, Level 1 | ||
Cash Equivalents | 0 | 0 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Commercial paper | Fair Value, Inputs, Level 2 | ||
Cash Equivalents | 33,473 | 27,910 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Municipal debt securities | ||
Cash Equivalents | 3,102 | 2,782 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Municipal debt securities | Fair Value, Inputs, Level 1 | ||
Cash Equivalents | 0 | 0 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring | Municipal debt securities | Fair Value, Inputs, Level 2 | ||
Cash Equivalents | $ 3,102 | $ 2,782 |
Fair Value Measurements Estimat
Fair Value Measurements Estimated Fair Value of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured Long-term Debt, Noncurrent | $ 1,139,776 | $ 1,164,892 |
Notes Payable | 1,068,081 | 1,171,002 |
Fair Value, Measurements, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured Long-term Debt, Noncurrent | 1,014,100 | 1,122,669 |
Publicly Held Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured Long-term Debt, Noncurrent | 451,107 | 451,321 |
Publicly Held Debt | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured Long-term Debt, Noncurrent | 459,001 | 462,604 |
Non-Publicly Held Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured Long-term Debt, Noncurrent | 616,974 | 719,681 |
Non-Publicly Held Debt | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Secured Long-term Debt, Noncurrent | $ 555,099 | $ 660,065 |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Dividends Payable, Amount Per Share | $ 0.70 | |
Stock Repurchased During Period, Shares | 0 | 15,440 |
Treasury Stock Acquired, Average Cost Per Share | $ 161.92 | |
Stock Repurchased During Period, Value | $ 0 | $ 2,500 |
Dividends | $ 11,300 |
Earnings per Share (Detail) - E
Earnings per Share (Detail) - Earnings Per Share - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,463 | |
Basic: | ||
Net income attributable to Allegiant Travel Company (in Dollars) | $ 55,193 | $ 42,351 |
Less: Net income allocated to participating securities (in Dollars) | (768) | (694) |
Net income attributable to common stock (in Dollars) | $ 54,425 | $ 41,657 |
Net income per share, basic (in Dollars per share) | $ 3.43 | $ 2.54 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Diluted | $ (768) | $ (693) |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 54,425 | $ 41,658 |
Diluted earnings per share | $ 3.42 | $ 2.54 |
Weighted-average shares outstanding | 15,889,000 | 16,382,000 |
Dilutive effect of stock options, restricted stock and stock-settled stock appreciation rights | 46,000 | 91,000 |
Adjusted weighted-average shares outstanding under treasury stock method | 15,935,000 | 16,473,000 |
Participating securities excluded under two-class method | (37,000) | (68,000) |
Two-Class Method, Weighted Average Number of Shares Outstanding, Diluted | 15,898,000 | 16,405,000 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)aircraft | |
Long-term Purchase Commitment [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | $ 128,042 |
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 124,842 |
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 69,488 |
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 28,582 |
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 25,004 |
Unrecorded Unconditional Purchase Obligation, Due after Five Years | 164,987 |
Unrecorded Unconditional Purchase Obligation | $ 540,945 |
Airbus A320 Aircraft Series [Member] | |
Long-term Purchase Commitment [Line Items] | |
Number of Aircraft Committed to be Leased | aircraft | 13 |
Aircraft acquired | aircraft | 3 |
Aircraft scheduled to be acquired | aircraft | 10 |
Airbus A319 | |
Long-term Purchase Commitment [Line Items] | |
Number Of Aircraft Committed To Purchase | aircraft | 1 |
Airbus A320 | |
Long-term Purchase Commitment [Line Items] | |
Number Of Aircraft Committed To Purchase | aircraft | 13 |
Commitments and Contingencies37
Commitments and Contingencies Payments Related to Commitments to Purchase (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Payments Related to Commitments to Purchase [Abstract] | |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | $ 128,042 |
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 124,842 |
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 69,488 |
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 28,582 |
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 25,004 |
Unrecorded Unconditional Purchase Obligation, Due after Five Years | 164,987 |
Unrecorded Unconditional Purchase Obligation | $ 540,945 |
Related Party (Details)
Related Party (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Amounts of Transaction | $ 0.2 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Passenger revenue | $ 396,771 | $ 347,836 |
Scheduled Service Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Passenger revenue | 238,520 | 214,263 |
Co-brand Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Passenger revenue | 3,534 | 350 |
Air-related revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Passenger revenue | $ 154,717 | $ 133,223 |
Revenue Recognition Points Liab
Revenue Recognition Points Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Points Liability [Abstract] | ||
Points Liability | $ 8,602 | $ 8,903 |
Points awarded | 3,233 | |
Points redeemed | $ (3,534) |
Revenue Recognition Passenger R
Revenue Recognition Passenger Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Revenue Recognition [Abstract] | ||
Increase (Decrease) in Deferred Air Traffic Revenue | $ 155,900 | |
Air traffic liability | $ 256,773 | $ 204,299 |