Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
Market for our common stock
Our common stock is quoted on the Nasdaq Global Select Market (symbol: ALGT). On February 12, 2021, the last sale price of our common stock was $214.76 per share. The following table sets forth the range of high and low sale prices for our common stock for the periods indicated.
Period High Low
2020
1st Quarter $ 180.20 $ 60.06
2nd Quarter 139.68 63.50
3rd Quarter 144.87 100.10
4th Quarter 190.51 112.71
2019
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. Because many of our shares are held by brokers and other institutions on behalf of shareholders, we are unable to estimate the total number of beneficial holders.
Securities Authorized for Issuance under Equity Compensation Plans
The following table provides information regarding options, warrants and other rights to acquire equity securities under our equity compensation plans as of December 31, 2020:
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)
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.
(2) The shares shown as being issuable under equity compensation plans exclude unvested restricted stock awards of 265,527 as all restricted stock awards are deemed to have been issued, and exclude all outstanding stock appreciation rights ("SARs") which are settled in cash.
(3) Our 2016 Long-Term Incentive Plan applies a fungible ratio such that a full-value award, such as a restricted stock grant or restricted stock unit grant, will be counted at two times its number for purposes of the plan limit. As a result, a maximum of 233,952 shares of restricted stock are remaining for future issuance under the 2016 Long-Term Incentive Plan.
Dividend Policy
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
We agreed not to repurchase shares through March 31, 2022 in connection with receipt of financial support under the Payroll Support Program Agreements.
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Stock Price Performance Graph
The following graph compares the cumulative total shareholder return on our common stock with the cumulative total return on the Nasdaq Composite Index and the AMEX Airline Index since December 31, 2015. The graph assumes that the value of the investment in our common stock and each index was $100 on December 31, 2015 and that all dividends are reinvested. 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
AMEX Airline Index 100.00 127.52 134.19 104.20 126.37 95.48
The stock price performance graph shall not be deemed incorporated by reference by any general statement incorporating by reference this annual report on Form 10-K into any filing under the Securities Act of 1933 or under the Securities Exchange Act of 1934, except to the extent that we specifically incorporate this information by reference, and shall not otherwise be deemed filed under such Acts.
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Item 6. Selected Financial Data
The following financial information for each of the five years ended December 31, has been derived from our audited consolidated financial statements. Readers should consider the selected consolidated financial data set forth below along with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes.
For the Year Ended December 31,
FINANCIAL DATA (in thousands except per share amounts) :
2020 (4)
2019 2018 2017 (3)
2016
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 (loss) (280,985) 363,950 243,459 230,630 372,567
Total other expense (1)
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: (2)
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
(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. The basic and diluted earnings per share for the periods presented reflect the two-class method mandated by accounting guidance for the calculation of earnings per share. Application of the two-class method did not have a significant impact on the basic or diluted earnings per share for the periods presented.
(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.
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For the Year Ended December 31,
OPERATING DATA: (unaudited)
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
Average number of operating aircraft during period 97.4 85.6 91.0 87.3 83.3
Average block hours per aircraft per day 5.9 8.0 6.9 6.7 6.3
Full-time equivalent employees at end of period 3,863 4,363 3,901 3,752 3,416
Fuel gallons consumed (thousands) 149,479 196,442 191,471 186,563 172,796
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
Average fare - total $ 110.91 $ 118.26 $ 116.99 $ 117.38 $ 119.41
Average stage length (miles) 867 859 875 876 895
Fuel gallons consumed (thousands) 145,528 188,596 183,798 178,298 166,528
Percent of sales through website during period 93.1 % 93.3 % 93.8 % 94.0 % 94.2 %
OTHER DATA: (unaudited)
Hotel room nights 199,059 415,593 409,164 390,986 439,942
Rental car days 1,132,173 1,921,930 1,823,451 1,415,901 1,502,326
(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.
(3) Various components of this measure do not have a direct correlation to ASMs. 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.
(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:
“ Available seat miles ” or “ ASMs ” represents the number of seats available for passengers multiplied by the number of miles the seats are flown.
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“ Average fuel cost per gallon ” represents total aircraft fuel expense for our total system divided by the total number of fuel gallons consumed in our total system.
“ Average stage length ” represents the average number of miles flown per flight.
“Block hours” represents the number of hours during which the aircraft is in revenue service, measured from the time of gate departure until the time of gate arrival at the destination.
“ Load factor ” represents the percentage of aircraft seating capacity utilized (revenue passenger miles divided by available seat miles).
“ Operating expense per ASM ” or “ CASM ” represents operating expenses divided by total system available seat miles.
“ Operating CASM, excluding fuel ” represents operating expenses, less aircraft fuel, divided by total system available seat miles. Although Operating CASM, excluding fuel, is not a calculation based on generally accepted accounting principles and should not be considered as an alternative to Operating Expenses as an indicator of our financial performance, this statistic provides management and investors the ability to measure and monitor our cost performance absent fuel price volatility. Both the cost and availability of fuel are subject to many economic and political factors and therefore are beyond our control.
“ Passengers ” represents the total number of passengers flown on all flight segments.
“ Revenue passenger miles ” or “RPMs” represents the number of miles flown by revenue passengers.
“Total passenger revenue per ASM” or “TRASM” represents passenger revenue divided by scheduled service available seat miles.