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Item 5. Market for Registrant’s Common Equity

2021-03-01 compared with 2020-02-27 · 47 added, 29 removed, 83 unchanged (48% of the section changed)

4 unchanged sentences

The following table sets forth the range of high and low sale prices for our common stock for the periods indicated.

Period High Low

1st Quarter $ 180.20 $ 60.06

2nd Quarter 139.68 63.50

3rd Quarter 144.87 100.10

4th Quarter 190.51 112.71

1st Quarter $ 142.97 $ 98.18

2nd Quarter 148.80 128.64

3rd Quarter 157.50 136.87

4th Quarter 183.26 143.61

As of February 12, 2021, there were 189 holders of record of our common stock.

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Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights (2)

Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights

Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (3)

Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (3)

Equity compensation plans approved by security holders (1)

— N/A 467,904

(1) There are no securities to be issued under any equity compensation plans not approved by our security holders.

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Dividend Policy

In 2019 , we continued the payment of a regular quarterly dividend.

The current dividend is set at $0.70 per share for each quarter, bringing total regular cash dividends declared, and paid, in each of 2019, 2018 and 2017 to $2.80 per share.

In addition to our regular cash dividends, our Board of Directors may periodically consider the payment of special cash dividends based on our results of operations, cash flow generation, liquidity, capital commitments, loan covenant compliance and other relevant factors.

The Credit and Guaranty Agreement we entered into in February 2019 in connection with the Term Loan provides that absent an event of default, regularly scheduled dividends in any four-quarter period may be paid up to the lesser of $75.0 million or 20

percent of our consolidated EBITDA (as defined in the Credit and Guaranty Agreement) for the previous four-quarter period.

Absent an event of default, this restriction does not constrain the continued payment of a quarterly dividend at the current level.

We have paid a quarterly dividend since 2015, but we suspended all cash dividends upon the onset of the pandemic.

In addition, in connection with the Payroll Support Program Agreements we entered into with the Treasury, we are required to comply with the relevant provisions of the CARES Act and PSP Extension Act, including those prohibiting the repurchase of common stock and the payment of cash dividends until March 31, 2022.

As a result, we have not paid any dividend since the quarterly dividend which was declared and paid in first quarter of 2020.

Our Repurchases of Equity Securities

The following table reflects repurchases of our common stock during the fourth quarter 2019 :

Total Number of Shares Purchased (1)

Average Price Paid per Share

Total Number of

Shares Purchased as Part of our Publicly

Announced Plan

Approximate Dollar Value of Shares that

May Yet be Purchased

Under the Plans or

Programs (in thousands) (2)

Reflects shares repurchased from employees who vested a portion of their restricted stock grants.

These share repurchases were made at the election of each employee pursuant to an offer to repurchase by us.

In each case, the shares repurchased constituted a portion of vested shares necessary to satisfy income tax withholding requirements.

Represents the remaining dollar amount of open market purchases of our common stock which has been authorized by the Board under a share repurchase program.

We agreed not to repurchase shares through March 31, 2022 in connection with receipt of financial support under the Payroll Support Program Agreements.

Stock Price Performance Graph

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Stock price performance presented for the historical periods presented is not necessarily indicative of future results.

12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020

ALGT $ 100.00 $ 100.58 $ 95.30 $ 64.48 $ 110.14 $ 119.61

Nasdaq Composite Index 100.00 107.50 137.86 132.51 179.19 257.38

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FINANCIAL DATA (in thousands except per share amounts) :

2019 2018 2017 (3)

Total operating revenue $ 990,073 $ 1,840,965 $ 1,667,447 $ 1,511,203 $ 1,378,942

Total operating expenses 1,271,058 1,477,015 1,423,988 1,280,573 1,006,375

Operating income

Operating income (loss) (280,985) 363,950 243,459 230,630 372,567

Total other expense (1)

Income before income taxes

Earnings per share to common shareholders:

80,082 62,703 44,141 31,623 24,600

Income (loss) before income taxes (361,067) 301,247 199,318 199,007 347,967

Net income (loss) $ (184,093) $ 232,117 $ 161,802 $ 198,148 $ 220,866

Earnings (loss) per share to common shareholders:

Basic $ (11.53) $ 14.27 $ 10.02 $ 12.14 $ 13.31

Diluted (11.53) 14.26 10.00 12.13 13.29

Cash dividends declared per share 0.70 2.80 2.80 2.80 2.40

Total assets $ 3,258,925 $ 3,010,803 $ 2,498,668 $ 2,180,157 $ 1,671,576

Total long-term debt and finance leases, net of related costs 1,659,011 1,421,853 1,271,733 1,164,892 808,274

Shareholders' equity 699,363 883,551 690,321 553,311 475,740

Net of capitalized interest for 2019 , 2018 , 2017 , and 2016 in the amounts of $4.5 million , $2.4 million , $3.2 million , and $1.8 million , respectively (no capitalized interest was recorded in 2015).

(1) Net of capitalized interest for 2020, 2019, 2018, 2017, and 2016 in the amounts of $4.1 million, $4.5 million, $2.4 million, $3.2 million, and $1.8 million, respectively.

(2) Our unvested restricted stock awards are considered participating securities as they receive non-forfeitable rights to cash dividends at the same rate as common stock.

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Application of the two-class method did not have a significant impact on the basic or diluted earnings per share for the periods presented.

Operating expenses, operating income, net income and earnings per share in 2017 was impacted by special items:

(3) Operating expenses, operating income, net income and earnings per share in 2017 were impacted by special items:

(a) a non-cash impairment charge of $35.3 million to our MD-80 fleet and related assets in the fourth quarter of 2017;

and (b) a $74.7 million income tax benefit from the remeasurement of deferred taxes due to the passage of the Tax Cuts and Jobs Act of 2017.

(4) Operating expenses, operating income, net income and earnings per share in 2020 were impacted by non-recurring items resulting from the COVID-19 Pandemic.

Refer to Note 2 - Impact of the COVID-19 Pandemic, Note 11 - Income Taxes, and Note 17 - Impairment for additional detail.

For the Year Ended December 31,

OPERATING DATA:

2020 2019 2018 2017 2016

Total system statistics:

Passengers 8,623,984 15,012,149 13,750,199 12,310,122 11,128,191

Available seat miles (ASMs) (thousands) 13,125,533 16,174,240 14,899,874 13,612,003 12,375,505

Operating expense per ASM (CASM) (cents) (1)(2)(3)

9.68 9.13 9.56 9.41 8.13

Fuel expense per ASM (cents) (2)

1.69 2.65 2.99 2.52 2.08

Operating CASM, excluding fuel (cents) (1)(3)

7.99 6.48 6.57 6.89 6.05

ASMs per gallon of fuel 87.80 82.34 77.82 72.96 71.62

Departures 87,955 110,542 101,212 93,061 82,341

Block hours 196,849 248,513 230,123 212,405 190,706

Average stage length (miles) 862 855 868 870 889

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Average fuel cost per gallon (2)

$ 1.48 $ 2.18 $ 2.33 $ 1.84 $ 1.49

Scheduled service statistics:

Passengers 8,553,623 14,823,267 13,606,103 12,138,146 11,003,864

Revenue passenger miles (RPMs) (thousands) 7,626,470 13,038,003 12,145,601 10,901,161 10,130,675

Available seat miles (ASMs) (thousands) 12,814,080 15,545,818 14,340,674 13,031,824 11,921,733

Load factor 59.5 % 83.9 % 84.7 % 83.7 % 85.0 %

Departures 85,276 105,690 96,554 88,432 78,747

Block hours 191,732 238,361 220,760 202,752 183,290

Total passenger revenue per ASM (TRASM) (cents) (3)

7.40 11.28 11.10 10.93 11.02

Average fare - scheduled service (4)

$ 52.45 $ 61.58 $ 67.01 $ 67.90 $ 69.86

Average fare - ancillary air-related charges (4)

$ 53.03 $ 51.96 $ 45.71 $ 45.14 $ 45.47

Average fare - third party products $ 5.43 $ 4.72 $ 4.27 $ 4.34 $ 4.08

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Rental car days 1,132,173 1,921,930 1,823,451 1,415,901 1,502,326

Includes effect of special items in 2017.

(1) Includes effect of special items in the years 2017 and 2020.

(2) Includes effect of fuel tax refund of $8.3 million (approximately $0.05 per gallon) in 2016.

1 unchanged sentence

These figures are provided on a per ASM basis so as to facilitate comparisons with airlines reporting costs and revenues on a per ASM basis.

Reflects division of passenger revenue between scheduled service and air-related charges in the Company's booking path.

(4) Reflects division of passenger revenue between scheduled service and air-related charges in our booking path.

The following terms used in this section and elsewhere in this annual report have the meanings indicated below:

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity