ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2016
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Or
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Nevada
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20-4745737
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(State or Other Jurisdiction of Incorporation or Organization)
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(IRS Employer Identification No.)
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1201 North Town Center Drive
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Las Vegas, Nevada
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89144
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, $0.001 Par Value
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Nasdaq Global Select Market
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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PART I
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ITEM 1.
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ITEM 1A.
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ITEM 1B.
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ITEM 2.
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ITEM 3.
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ITEM 4.
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PART II
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ITEM 5.
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ITEM 6.
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ITEM 7.
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ITEM 7A.
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ITEM 8.
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ITEM 9.
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ITEM 9A.
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ITEM 9B.
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PART III
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ITEM 10.
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ITEM 11.
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ITEM 12.
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ITEM 13.
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ITEM 14.
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PART IV
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ITEM 15.
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Traditional Airline Approach
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Allegiant Approach
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•
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Focus on business and leisure travelers
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•
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Focus on leisure travelers
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•
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Provide high frequency service from big cities
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•
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Provide low frequency service from small and medium-sized cities
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•
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Use smaller aircraft to provide connecting service from smaller markets through hubs
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•
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Use larger jet aircraft to provide nonstop service from under-served cities direct to leisure destinations
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•
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Utilize bundled pricing
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•
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Utilize unbundled pricing of air-related services and products
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•
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Sell through various intermediaries
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•
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Sell only directly to travelers
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•
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Offer flight connections
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•
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Do not offer connecting flights
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•
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Use code-share arrangements to increase passenger traffic
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•
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Do not use code-share arrangements
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Routes to Orlando
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68
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Routes to Las Vegas
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56
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Routes to Tampa/St. Petersburg
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51
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Routes to Phoenix
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35
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Routes to Punta Gorda
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32
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Routes to Los Angeles
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23
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Other routes
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88
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Total routes
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353
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Employee Group
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Representative
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Status of Agreement
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Pilots
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International Brotherhood of Teamsters, Airline Division
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Elected representation in August 2012. Five year collective bargaining agreement ratified in July 2016 and became effective August 1, 2016.
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Flight Attendants
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Transport Workers Union
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Elected representation in December 2010. Tentative agreement reached for a collective bargaining agreement in August 2016 which was not approved. Negotiations are ongoing.
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Flight Dispatchers
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International Brotherhood of Teamsters, Airline Division, Local 986
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Elected representation in October 2016. Negotiations have recently begun.
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•
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incur additional indebtedness;
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•
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incur liens;
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•
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make restricted payments (including paying dividends on, redeeming, repurchasing, or retiring our capital stock);
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•
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make investments; and
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•
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consolidate, merge, or sell all or substantially all of our assets.
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•
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make it more difficult for us to satisfy our obligations with respect to our indebtedness, and any failure to comply with the obligations of any of our debt instruments, including financial and other restrictive covenants, could result in an event of default under agreements governing our indebtedness;
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•
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make it more difficult to satisfy our other future obligations, including our obligations to pay the purchase price and pre-delivery deposits in respect of current and future aircraft purchase contracts;
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•
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require us to dedicate a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available to fund internal growth through working capital, capital expenditures, and for other purposes;
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•
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limit our flexibility in planning for, or reacting to, changes in our business, the competitive environment, legislation and our industry;
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•
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make us more vulnerable to adverse changes in our business, economic, industry, market or competitive conditions and adverse changes in government regulation;
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•
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expose us to interest rate and pricing increases on indebtedness and financing arrangements;
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•
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restrict us from pursuing strategic acquisitions or exploiting certain business opportunities;
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•
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subject us to a greater risk of non-compliance with financial and other restrictive covenants in financing arrangements;
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•
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limit, among other things, our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, execution of our business strategy and other purposes or raise equity capital in the future and increasing the costs of such additional financings; and
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•
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place us at a competitive disadvantage compared to our competitors who are not as highly leveraged or who have less debt in relation to cash flow.
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•
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fuel price volatility, and the effect of economic and geopolitical factors and worldwide oil supply and consumption on fuel availability
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•
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announcements concerning our competitors, the airline industry, or the economy in general
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•
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strategic actions by us or our competitors, such as acquisitions or restructurings
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•
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media reports and publications about the safety of our aircraft or the aircraft types we operate
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•
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new regulatory pronouncements and changes in regulatory guidelines
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•
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announcements concerning our business strategy
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•
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our ability to grow service in the future as rapidly as the market anticipates as we continue to add more under-served cities to our network
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•
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general and industry-specific economic conditions
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•
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changes in financial estimates or recommendations by securities analysts
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•
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substantial sales of our common stock or other actions by investors with significant shareholdings
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•
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additional issuances of our common stock
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•
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labor work actions
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•
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general market conditions
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•
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advance notification procedures for matters to be brought before stockholder meetings
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•
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a limitation on who may call stockholder meetings
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•
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the ability of our board of directors to issue up to 5,000,000 shares of preferred stock without a stockholder vote
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Aircraft Type
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Owned (1)
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Seating Capacity
(per aircraft) |
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Age Range (years)
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Average Age
in Years |
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MD-83/88
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47
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166
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21-31
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26.9
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Airbus A319 (2)
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17
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156
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11-13
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11.5
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Airbus A320
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16
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177
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14-20
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16.9
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Boeing 757-200
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4
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215
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23-25
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23.6
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Total aircraft
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84
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(1)
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Refer to Item 8 – Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 5 – Long-Term Debt for discussion of notes payable collateralized by our aircraft.
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(2)
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Does not include 12 owned aircraft currently on lease to a European carrier until 2018 or two aircraft being prepared for revenue service as of the date indicated.
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MD-83/88
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47
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A319
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19
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A320
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17
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B757-200
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2
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Total
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85
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Airport
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Location
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Asheville Regional Airport
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Fletcher, North Carolina
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Bellingham International Airport
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Bellingham, Washington
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Cincinnati/Northern Kentucky International Airport
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Hebron, Kentucky
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Ft. Lauderdale-Hollywood International Airport
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Ft. Lauderdale, Florida
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Los Angeles International Airport
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Los Angeles, California
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McCarran International Airport
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Las Vegas, Nevada
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Myrtle Beach International Airport
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Myrtle Beach, South Carolina
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Oakland International Airport
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Oakland, California
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Orlando Sanford International Airport
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Sanford, Florida
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Phoenix-Mesa Gateway Airport
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Mesa, Arizona
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Pittsburgh International Airport
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Pittsburgh, Pennsylvania
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Punta Gorda Airport
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Punta Gorda, Florida
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St. Petersburg-Clearwater International Airport
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St. Petersburg, Florida
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Period
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High
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Low
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2016
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1st Quarter
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$
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182.50
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$
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134.64
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2nd Quarter
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$
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183.91
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$
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135.57
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3rd Quarter
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$
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152.81
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$
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127.70
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4th Quarter
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$
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173.82
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$
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131.45
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2015
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1st Quarter
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$
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199.20
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$
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144.51
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2nd Quarter
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$
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191.40
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$
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151.04
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3rd Quarter
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$
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238.13
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$
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175.00
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4th Quarter
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$
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228.79
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$
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166.59
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Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights (b)
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Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
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Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (c)
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Equity compensation plans approved by security holders (a)
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43,589
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$
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84.04
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1,662,104
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(a)
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There are no securities to be issued under any equity compensation plans not approved by our security holders.
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(b)
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The shares shown as being issuable under equity compensation plans approved by our security holders excludes unvested restricted stock awards of
253,658
as all restricted stock awards are deemed to have been issued, and excludes all outstanding stock appreciation rights ("SARs") which are settled in cash.
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(c)
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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 2 times its number for purposes of the plan limit. As a result, only a maximum of 831,052 shares of restricted stock are remaining for future issuance under the 2016 Long-Term Incentive Plan.
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Period
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Total Number of Shares Purchased (1)
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Average Price Paid per Share
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Total Number of
Shares Purchased as Part of our Publicly Announced Plan |
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Approximate Dollar Value of Shares that
May Yet be Purchased Under the Plans or Programs (in thousands) (2) |
||||||
October
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22,024
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$
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136.28
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21,975
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November
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46
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147.60
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None
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December
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None
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N/A
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None
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Total
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22,070
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$
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136.30
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|
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21,975
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$
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89,336
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(1)
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Includes 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.
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(2)
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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.
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12/31/2011
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12/31/2012
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12/31/2013
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12/31/2014
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12/31/2015
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12/31/2016
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||||||||||||
ALGT
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$
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100.00
|
|
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$
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141.38
|
|
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$
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205.64
|
|
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$
|
294.49
|
|
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$
|
332.45
|
|
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$
|
334.27
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Nasdaq Composite Index
|
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$
|
100.00
|
|
|
$
|
115.91
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|
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$
|
160.32
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|
|
$
|
181.80
|
|
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$
|
192.21
|
|
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$
|
206.63
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AMEX Airline Index
|
|
$
|
100.00
|
|
|
$
|
136.41
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|
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$
|
215.01
|
|
|
$
|
321.15
|
|
|
$
|
268.13
|
|
|
$
|
341.92
|
|
|
|
For the Year Ended December 31,
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||||||||||||||||||
FINANCIAL DATA
(in thousands except per share amounts)
:
|
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2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Total operating revenue
|
|
$
|
1,362,831
|
|
|
$
|
1,262,188
|
|
|
$
|
1,137,046
|
|
|
$
|
996,150
|
|
|
$
|
908,719
|
|
Total operating expenses
|
|
992,273
|
|
|
890,486
|
|
|
979,701
|
|
|
841,413
|
|
|
776,415
|
|
|||||
Operating income
|
|
370,558
|
|
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371,702
|
|
|
157,345
|
|
|
154,737
|
|
|
132,304
|
|
|||||
Total other expense
(1)
|
|
24,600
|
|
|
24,983
|
|
|
20,214
|
|
|
8,057
|
|
|
7,657
|
|
|||||
Income before income taxes
|
|
345,958
|
|
|
346,719
|
|
|
137,131
|
|
|
146,680
|
|
|
124,647
|
|
|||||
Net income attributable to Allegiant Travel Company
|
|
$
|
219,590
|
|
|
$
|
220,374
|
|
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$
|
86,689
|
|
|
$
|
92,273
|
|
|
$
|
78,597
|
|
Earnings per share to common shareholders
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic
|
|
$
|
13.23
|
|
|
$
|
12.97
|
|
|
$
|
4.87
|
|
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$
|
4.85
|
|
|
$
|
4.10
|
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Diluted
|
|
$
|
13.21
|
|
|
$
|
12.94
|
|
|
$
|
4.86
|
|
|
$
|
4.82
|
|
|
$
|
4.06
|
|
Cash dividends declared per share
|
|
$
|
2.40
|
|
|
$
|
2.75
|
|
|
$
|
2.50
|
|
|
$
|
2.25
|
|
|
$
|
2.00
|
|
Total assets
|
|
$
|
1,671,576
|
|
|
$
|
1,358,331
|
|
|
$
|
1,240,986
|
|
|
$
|
935,889
|
|
|
$
|
803,980
|
|
Total long-term debt, net of related costs
|
|
808,274
|
|
|
641,678
|
|
|
588,794
|
|
|
236,574
|
|
|
152,566
|
|
|||||
Shareholders' equity
|
|
473,622
|
|
|
350,005
|
|
|
294,065
|
|
|
377,317
|
|
|
401,724
|
|
(1)
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Net of capitalized interest of $1.8 million in 2016.
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(2)
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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. The two-class method adjusts both the net income and shares used in the calculation. Application of the two-class method did not have a significant impact on the basic or diluted earnings per share for the periods presented.
|
|
For the Year Ended December 31,
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||||||||||||||||||
OPERATING DATA:
(unaudited)
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Total system statistics:
|
|
|
|
|
|
|
|
|
|
||||||||||
Passengers
|
11,128,191
|
|
|
9,500,611
|
|
|
8,154,357
|
|
|
7,241,063
|
|
|
6,987,324
|
|
|||||
Revenue passenger miles (RPMs) (thousands)
|
10,282,827
|
|
|
8,944,952
|
|
|
7,825,962
|
|
|
7,129,416
|
|
|
6,514,056
|
|
|||||
Available seat miles (ASMs) (thousands)
|
12,375,505
|
|
|
10,526,610
|
|
|
8,945,616
|
|
|
8,146,135
|
|
|
7,487,276
|
|
|||||
Load factor
|
83.1
|
%
|
|
85.0
|
%
|
|
87.5
|
%
|
|
87.5
|
%
|
|
87.0
|
%
|
|||||
Operating expense per ASM (CASM) (cents)**
|
8.02
|
|
|
8.45
|
|
|
10.95
|
|
|
10.33
|
|
|
10.37
|
|
|||||
Fuel expense per ASM (cents)**
|
2.08
|
|
|
2.64
|
|
|
4.34
|
|
|
4.73
|
|
|
5.05
|
|
|||||
Operating CASM, excluding fuel (cents)
|
5.94
|
|
|
5.81
|
|
|
6.61
|
|
|
5.60
|
|
|
5.32
|
|
|||||
ASMs per gallon of fuel
|
71.62
|
|
|
70.20
|
|
|
69.38
|
|
|
67.62
|
|
|
63.00
|
|
|||||
Departures
|
82,341
|
|
|
68,653
|
|
|
56,961
|
|
|
51,083
|
|
|
53,615
|
|
|||||
Block hours
|
190,706
|
|
|
160,431
|
|
|
135,572
|
|
|
125,449
|
|
|
124,610
|
|
|||||
Average stage length (miles)
|
889
|
|
|
900
|
|
|
918
|
|
|
933
|
|
|
872
|
|
|||||
Average number of operating aircraft during period
|
83.3
|
|
|
74.3
|
|
|
68.8
|
|
|
62.9
|
|
|
60.2
|
|
|||||
Average block hours per aircraft per day
|
6.3
|
|
|
5.9
|
|
|
5.4
|
|
|
5.5
|
|
|
5.7
|
|
|||||
Full-time equivalent employees at end of period
|
3,416
|
|
|
2,846
|
|
|
2,411
|
|
|
2,065
|
|
|
1,821
|
|
|||||
Fuel gallons consumed (thousands)
|
172,796
|
|
|
149,951
|
|
|
128,933
|
|
|
120,476
|
|
|
118,839
|
|
|||||
Average fuel cost per gallon**
|
$
|
1.49
|
|
|
$
|
1.86
|
|
|
$
|
3.01
|
|
|
$
|
3.20
|
|
|
$
|
3.18
|
|
Scheduled service statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Passengers
|
11,003,864
|
|
|
9,355,097
|
|
|
8,017,442
|
|
|
7,103,375
|
|
|
6,591,707
|
|
|||||
Revenue passenger miles (RPMs) (thousands)
|
10,130,675
|
|
|
8,821,908
|
|
|
7,711,696
|
|
|
7,015,108
|
|
|
6,220,320
|
|
|||||
Available seat miles (ASMs) (thousands)
|
11,921,733
|
|
|
10,236,075
|
|
|
8,693,631
|
|
|
7,892,896
|
|
|
6,954,408
|
|
|||||
Load factor
|
85.0
|
%
|
|
86.2
|
%
|
|
88.7
|
%
|
|
88.9
|
%
|
|
89.4
|
%
|
|||||
Departures
|
78,747
|
|
|
65,683
|
|
|
54,440
|
|
|
48,389
|
|
|
46,995
|
|
|||||
Block hours
|
183,290
|
|
|
155,403
|
|
|
131,210
|
|
|
120,620
|
|
|
113,671
|
|
|||||
Total scheduled service revenue per ASM (TRASM)* (cents)
|
10.89
|
|
|
11.82
|
|
|
12.66
|
|
|
12.37
|
|
|
12.33
|
|
|||||
Average fare - scheduled service
|
$
|
68.47
|
|
|
$
|
78.63
|
|
|
$
|
91.30
|
|
|
$
|
91.69
|
|
|
$
|
88.90
|
|
Average fare - ancillary air-related charges
|
$
|
45.40
|
|
|
$
|
46.43
|
|
|
$
|
41.37
|
|
|
$
|
40.52
|
|
|
$
|
35.72
|
|
Average fare - ancillary third party products
|
$
|
4.08
|
|
|
$
|
4.29
|
|
|
$
|
4.56
|
|
|
$
|
5.21
|
|
|
$
|
5.48
|
|
Average fare - total
|
$
|
117.95
|
|
|
$
|
129.35
|
|
|
$
|
137.23
|
|
|
$
|
137.42
|
|
|
$
|
130.10
|
|
Average stage length (miles)
|
895
|
|
|
915
|
|
|
934
|
|
|
952
|
|
|
918
|
|
|||||
Fuel gallons consumed (thousands)
|
166,528
|
|
|
145,654
|
|
|
125,173
|
|
|
116,370
|
|
|
109,257
|
|
|||||
Percent of sales through website during period
|
94.2
|
%
|
|
95.1
|
%
|
|
93.8
|
%
|
|
92.0
|
%
|
|
90.1
|
%
|
*
|
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 revenues on a per ASM basis.
|
**
|
Includes effect of fuel tax refund of $8.3 million in 2016.
|
•
|
Solidified timing to begin operating a single fleet type in conjunction with fully retiring our MD-80 aircraft by the end of 2019;
|
•
|
appointed John Redmond as President of our company;
|
•
|
reached a collective bargaining agreement for our pilots (which became effective August 1, 2016);
|
•
|
launched the Allegiant World MasterCard® issued by Bank of America;
|
•
|
added 9 Airbus A320 series aircraft into revenue service and signed contracts (including for the purchase of 12 newly manufactured aircraft) which will increase the number of owned Airbus aircraft to 78;
|
•
|
returned
$66.4 million
to shareholders through stock repurchases, paid a special cash dividend of $27.7 million in January 2016, as well as
$39.8 million
as 2016 recurring cash dividends;
|
•
|
added $150.0 million to our existing senior unsecured notes;
|
•
|
produced operating margin of
27.2 percent
and
$13.21
earnings per share (fully diluted); and
|
•
|
operated 360 routes at
December 31, 2016
versus 296 at the end of
2015
.
|
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2014
|
|||
MD83/88
|
47
|
|
|
51
|
|
|
53
|
|
B757-200
|
4
|
|
|
5
|
|
|
6
|
|
A319 (1)
|
17
|
|
|
10
|
|
|
4
|
|
A320
|
16
|
|
|
14
|
|
|
7
|
|
Total
|
84
|
|
|
80
|
|
|
70
|
|
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2014
|
|||
Leisure destinations
|
21
|
|
|
17
|
|
|
13
|
|
Under-served cities
|
97
|
|
|
88
|
|
|
83
|
|
Total cities
|
118
|
|
|
105
|
|
|
96
|
|
Total routes
|
360
|
|
|
296
|
|
|
233
|
|
|
|
For the Year Ended December 31,
|
|
Percentage
|
|||||||
(dollars in thousands)
|
|
2016
|
|
2015
|
|
Change
|
|||||
Gross ancillary revenue - third party products
|
|
$
|
144,608
|
|
|
$
|
132,441
|
|
|
9.2
|
%
|
Cost of goods sold
|
|
(98,552
|
)
|
|
(90,827
|
)
|
|
8.5
|
|
||
Transaction costs (1)
|
|
(1,116
|
)
|
|
(1,437
|
)
|
|
(22.3
|
)
|
||
Ancillary revenue - third party products
|
|
$
|
44,940
|
|
|
$
|
40,177
|
|
|
11.9
|
|
As percent of gross ancillary revenue - third party
|
|
31.1
|
%
|
|
30.3
|
%
|
|
0.8 pp
|
|
||
Hotel room nights
|
|
439,942
|
|
|
452,272
|
|
|
(2.7
|
)%
|
||
Rental car days
|
|
1,502,326
|
|
|
1,204,982
|
|
|
24.7
|
%
|
|
For the Year Ended December 31,
|
|
Percent
|
|||||||
|
2016
|
|
2015
|
|
Change
|
|||||
Aircraft fuel*
|
$
|
23.12
|
|
|
$
|
29.30
|
|
|
(21.1
|
)%
|
Salaries and benefits
|
26.24
|
|
|
24.19
|
|
|
8.5
|
|
||
Station operations
|
11.15
|
|
|
10.77
|
|
|
3.5
|
|
||
Maintenance and repairs
|
9.98
|
|
|
9.74
|
|
|
2.5
|
|
||
Depreciation and amortization
|
9.45
|
|
|
10.33
|
|
|
(8.5
|
)
|
||
Sales and marketing
|
1.84
|
|
|
2.25
|
|
|
(18.2
|
)
|
||
Aircraft lease rentals
|
0.08
|
|
|
0.24
|
|
|
(66.7
|
)
|
||
Other
|
7.29
|
|
|
6.91
|
|
|
5.5
|
|
||
Operating expense per passenger*
|
$
|
89.15
|
|
|
$
|
93.73
|
|
|
(4.9
|
)%
|
Operating expense per passenger, excluding fuel
|
$
|
66.03
|
|
|
$
|
64.43
|
|
|
2.5
|
%
|
|
For the Year Ended December 31,
|
|
|
Percent
|
||||||
|
2016
|
|
|
2015
|
|
|
Change
|
|||
Aircraft fuel*
|
2.08
|
|
|
|
2.64
|
|
|
|
(21.2
|
)%
|
Salaries and benefits
|
2.36
|
|
|
|
2.18
|
|
|
|
8.3
|
|
Station operations
|
1.00
|
|
|
|
0.97
|
|
|
|
3.1
|
|
Maintenance and repairs
|
0.90
|
|
|
|
0.88
|
|
|
|
2.3
|
|
Depreciation and amortization
|
0.85
|
|
|
|
0.93
|
|
|
|
(8.6
|
)
|
Sales and marketing
|
0.17
|
|
|
|
0.20
|
|
|
|
(15.0
|
)
|
Aircraft lease rentals
|
0.01
|
|
|
|
0.02
|
|
|
|
(50.0
|
)
|
Other
|
0.66
|
|
|
|
0.63
|
|
|
|
4.8
|
|
CASM*
|
8.03
|
|
|
|
8.45
|
|
|
|
(5.0
|
)%
|
Operating CASM, excluding fuel
|
5.95
|
|
|
|
5.81
|
|
|
|
2.4
|
%
|
|
|
For the Year Ended December 31,
|
|
Percentage
|
|||||||
(dollars in thousands)
|
|
2015
|
|
2014
|
|
Change
|
|||||
Gross ancillary revenue - third party products
|
|
$
|
132,441
|
|
|
$
|
121,444
|
|
|
9.1
|
%
|
Cost of goods sold
|
|
(90,827
|
)
|
|
(83,053
|
)
|
|
9.4
|
|
||
Transaction costs (a)
|
|
(1,437
|
)
|
|
(1,804
|
)
|
|
(20.3
|
)
|
||
Ancillary revenue - third party products
|
|
$
|
40,177
|
|
|
$
|
36,587
|
|
|
9.8
|
|
As percent of gross ancillary revenue - third party
|
|
30.3
|
%
|
|
30.1
|
%
|
|
0.2 pp
|
|
||
Hotel room nights
|
|
452,272
|
|
|
528,329
|
|
|
(14.4
|
)%
|
||
Rental car days
|
|
1,204,982
|
|
|
916,640
|
|
|
31.5
|
%
|
|
For the Year Ended December 31,
|
|
Percentage
|
|||||||
|
2015
|
|
2014
|
|
Change
|
|||||
Aircraft fuel
|
$
|
29.30
|
|
|
$
|
47.61
|
|
|
(38.5
|
)%
|
Salary and benefits
|
24.19
|
|
|
23.71
|
|
|
2.0
|
|
||
Station operations
|
10.77
|
|
|
10.38
|
|
|
3.8
|
|
||
Maintenance and repairs
|
9.74
|
|
|
10.64
|
|
|
(8.5
|
)
|
||
Sales and marketing
|
2.25
|
|
|
3.49
|
|
|
(35.5
|
)
|
||
Aircraft lease rentals
|
0.24
|
|
|
1.96
|
|
|
(87.8
|
)
|
||
Depreciation and amortization
|
10.33
|
|
|
10.23
|
|
|
1.0
|
|
||
Other
|
6.91
|
|
|
6.81
|
|
|
1.5
|
|
||
Special charge
|
—
|
|
|
5.32
|
|
|
NM
|
|
||
Operating expense per passenger
|
$
|
93.73
|
|
|
$
|
120.15
|
|
|
(22.0
|
)%
|
Operating expense per passenger, excluding fuel
|
$
|
64.43
|
|
|
$
|
72.54
|
|
|
(11.2
|
)%
|
|
For the Year Ended December 31,
|
|
|
Percentage
|
||||||
|
2015
|
|
|
2014
|
|
|
Change
|
|||
Aircraft fuel
|
2.64
|
|
¢
|
|
4.34
|
|
¢
|
|
(39.2
|
)%
|
Salary and benefits
|
2.18
|
|
|
|
2.16
|
|
|
|
0.9
|
|
Station operations
|
0.97
|
|
|
|
0.95
|
|
|
|
2.1
|
|
Maintenance and repairs
|
0.88
|
|
|
|
0.97
|
|
|
|
(9.3
|
)
|
Sales and marketing
|
0.20
|
|
|
|
0.32
|
|
|
|
(37.5
|
)
|
Aircraft lease rentals
|
0.02
|
|
|
|
0.18
|
|
|
|
(88.9
|
)
|
Depreciation and amortization
|
0.93
|
|
|
|
0.93
|
|
|
|
—
|
|
Other
|
0.63
|
|
|
|
0.62
|
|
|
|
1.6
|
|
Special charge
|
—
|
|
|
|
0.48
|
|
|
|
NM
|
|
Operating expense per ASM (CASM)
|
8.45
|
|
¢
|
|
10.95
|
|
¢
|
|
(22.8
|
)%
|
CASM, excluding fuel
|
5.81
|
|
¢
|
|
6.61
|
|
¢
|
|
(12.1
|
)%
|
|
|
Total
|
|
Less than 1 year
|
|
2-3 years
|
|
4-5 years
|
|
More than 5 years
|
||||||||||
Long-term debt obligations (1)
|
|
$
|
908,606
|
|
|
$
|
123,342
|
|
|
$
|
720,036
|
|
|
$
|
65,228
|
|
|
$
|
—
|
|
Operating lease obligations (2) (5)
|
|
20,604
|
|
|
5,461
|
|
|
9,023
|
|
|
3,132
|
|
|
2,988
|
|
|||||
Aircraft purchase obligations (3) (5)
|
|
578,686
|
|
|
379,152
|
|
|
165,734
|
|
|
33,800
|
|
|
—
|
|
|||||
Airport fees under use and lease agreements (4) (5)
|
|
37,866
|
|
|
11,115
|
|
|
21,473
|
|
|
5,278
|
|
|
—
|
|
|||||
Total future payments under contractual obligations
|
|
$
|
1,545,762
|
|
|
$
|
519,070
|
|
|
$
|
916,266
|
|
|
$
|
107,438
|
|
|
$
|
2,988
|
|
(1)
|
Long-term debt obligations include scheduled interest payments (using LIBOR rates as of December 31, 2016) and excludes debt issuance costs.
|
(2)
|
Operating lease obligations include the lease and use of gate space and areas surrounding gates, operating support areas in airport terminals under use and lease agreements, and leases of office, warehouse and other space.
|
(3)
|
Aircraft purchase obligations under existing aircraft purchase agreements.
|
(4)
|
Obligations for common and joint use space in the airport terminal facilities under use and lease agreements.
|
(5)
|
Not reflected on our balance sheet.
|
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
2016
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
$
|
348,615
|
|
|
$
|
344,851
|
|
|
$
|
333,481
|
|
|
$
|
335,883
|
|
Operating income
|
121,126
|
|
|
104,476
|
|
|
76,840
|
|
|
68,115
|
|
||||
Net income attributable to Allegiant Travel Company
|
71,980
|
|
|
60,847
|
|
|
45,453
|
|
|
41,310
|
|
||||
Earnings per share to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
4.29
|
|
|
3.69
|
|
|
2.76
|
|
|
2.49
|
|
||||
Diluted
|
4.29
|
|
|
3.68
|
|
|
2.75
|
|
|
2.48
|
|
||||
2015
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
$
|
329,241
|
|
|
$
|
322,102
|
|
|
$
|
299,956
|
|
|
$
|
310,889
|
|
Operating income
|
108,099
|
|
|
92,756
|
|
|
77,082
|
|
|
93,765
|
|
||||
Net income attributable to Allegiant Travel Company
|
64,867
|
|
|
54,339
|
|
|
44,458
|
|
|
56,710
|
|
||||
Earnings per share to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
3.75
|
|
|
3.19
|
|
|
2.63
|
|
|
3.38
|
|
||||
Diluted
|
3.74
|
|
|
3.18
|
|
|
2.62
|
|
|
3.38
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||
CURRENT ASSETS:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
64,711
|
|
|
$
|
87,112
|
|
Restricted cash
|
11,647
|
|
|
10,358
|
|
||
Short-term investments
|
269,269
|
|
|
245,583
|
|
||
Accounts receivable
|
40,667
|
|
|
21,815
|
|
||
Expendable parts, supplies and fuel, net
|
16,797
|
|
|
15,583
|
|
||
Prepaid expenses
|
16,277
|
|
|
18,276
|
|
||
Other current assets
|
2,686
|
|
|
3,185
|
|
||
TOTAL CURRENT ASSETS
|
422,054
|
|
|
401,912
|
|
||
Property and equipment, net
|
1,095,314
|
|
|
885,942
|
|
||
Long-term investments
|
124,834
|
|
|
64,752
|
|
||
Deferred major maintenance, net
|
17,347
|
|
|
—
|
|
||
Deposits and other assets
|
12,027
|
|
|
5,725
|
|
||
TOTAL ASSETS
|
$
|
1,671,576
|
|
|
$
|
1,358,331
|
|
CURRENT LIABILITIES:
|
|
|
|
||||
Accounts payable
|
$
|
16,010
|
|
|
$
|
6,801
|
|
Accrued liabilities
|
96,661
|
|
|
116,131
|
|
||
Air traffic liability
|
194,001
|
|
|
198,136
|
|
||
Current maturities of notes payable, net of related costs
|
86,226
|
|
|
74,069
|
|
||
TOTAL CURRENT LIABILITIES
|
392,898
|
|
|
395,137
|
|
||
LONG-TERM DEBT AND OTHER LONG-TERM LIABILITIES:
|
|
|
|
||||
Long-term debt, net of current maturities and related costs
|
722,048
|
|
|
567,609
|
|
||
Deferred income taxes
|
75,338
|
|
|
45,580
|
|
||
Other noncurrent liabilities
|
7,670
|
|
|
—
|
|
||
TOTAL LIABILITIES:
|
1,197,954
|
|
|
1,008,326
|
|
||
SHAREHOLDERS' EQUITY:
|
|
|
|
||||
Common stock, par value $.001, 100,000,000 shares authorized; 22,469,413 and 22,250,210 shares issued; 16,633,425 and 16,802,897 shares outstanding, as of December 31, 2016 and 2015, respectively
|
22
|
|
|
22
|
|
||
Treasury stock, at cost, 5,835,988 and 5,447,313 shares at December 31, 2016 and 2015, respectively
|
(517,803
|
)
|
|
(453,415
|
)
|
||
Additional paid in capital
|
238,236
|
|
|
228,945
|
|
||
Accumulated other comprehensive income, net
|
(230
|
)
|
|
834
|
|
||
Retained earnings
|
753,397
|
|
|
573,619
|
|
||
TOTAL EQUITY
|
473,622
|
|
|
350,005
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
1,671,576
|
|
|
$
|
1,358,331
|
|
|
Year ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
OPERATING REVENUE:
|
|
|
|
|
|
||||||
Scheduled service revenue
|
$
|
753,414
|
|
|
$
|
735,563
|
|
|
$
|
732,020
|
|
Ancillary revenue:
|
|
|
|
|
|
||||||
Air-related charges
|
499,542
|
|
|
434,317
|
|
|
331,689
|
|
|||
Third party products
|
44,940
|
|
|
40,177
|
|
|
36,587
|
|
|||
Total ancillary revenue
|
544,482
|
|
|
474,494
|
|
|
368,276
|
|
|||
Fixed fee contract revenue
|
31,972
|
|
|
19,747
|
|
|
17,403
|
|
|||
Other revenue
|
32,963
|
|
|
32,384
|
|
|
19,347
|
|
|||
Total operating revenue
|
1,362,831
|
|
|
1,262,188
|
|
|
1,137,046
|
|
|||
OPERATING EXPENSES:
|
|
|
|
|
|
||||||
Aircraft fuel
|
257,332
|
|
|
278,394
|
|
|
388,216
|
|
|||
Salary and benefits
|
291,974
|
|
|
229,802
|
|
|
193,345
|
|
|||
Station operations
|
124,052
|
|
|
102,294
|
|
|
84,667
|
|
|||
Maintenance and repairs
|
111,070
|
|
|
92,575
|
|
|
86,781
|
|
|||
Depreciation and amortization
|
105,216
|
|
|
98,097
|
|
|
83,409
|
|
|||
Sales and marketing
|
20,527
|
|
|
21,349
|
|
|
28,492
|
|
|||
Aircraft lease rentals
|
924
|
|
|
2,326
|
|
|
15,945
|
|
|||
Other
|
81,178
|
|
|
65,649
|
|
|
55,566
|
|
|||
Special charge
|
—
|
|
|
—
|
|
|
43,280
|
|
|||
Total operating expenses
|
992,273
|
|
|
890,486
|
|
|
979,701
|
|
|||
OPERATING INCOME
|
370,558
|
|
|
371,702
|
|
|
157,345
|
|
|||
OTHER (INCOME) EXPENSE:
|
|
|
|
|
|
||||||
Interest income
|
(3,010
|
)
|
|
(1,452
|
)
|
|
(901
|
)
|
|||
Interest expense
|
28,836
|
|
|
26,510
|
|
|
21,205
|
|
|||
Other, net
|
(1,226
|
)
|
|
(75
|
)
|
|
(90
|
)
|
|||
Total other expense
|
24,600
|
|
|
24,983
|
|
|
20,214
|
|
|||
INCOME BEFORE INCOME TAXES
|
345,958
|
|
|
346,719
|
|
|
137,131
|
|
|||
PROVISION FOR INCOME TAXES
|
126,368
|
|
|
126,389
|
|
|
50,828
|
|
|||
NET INCOME
|
219,590
|
|
|
220,330
|
|
|
86,303
|
|
|||
Net loss attributable to noncontrolling interest
|
—
|
|
|
(44
|
)
|
|
(386
|
)
|
|||
NET INCOME ATTRIBUTABLE TO ALLEGIANT TRAVEL COMPANY
|
$
|
219,590
|
|
|
$
|
220,374
|
|
|
$
|
86,689
|
|
Earnings per share to common stockholders:
|
|
|
|
|
|
||||||
Basic
|
$
|
13.23
|
|
|
$
|
12.97
|
|
|
$
|
4.87
|
|
Diluted
|
$
|
13.21
|
|
|
$
|
12.94
|
|
|
$
|
4.86
|
|
Shares used for computation:
|
|
|
|
|
|
||||||
Basic
|
16,465
|
|
|
16,923
|
|
|
17,729
|
|
|||
Diluted
|
16,489
|
|
|
16,962
|
|
|
17,782
|
|
|||
|
|
|
|
|
|
||||||
Cash dividends declared per share:
|
$
|
2.40
|
|
|
$
|
2.75
|
|
|
$
|
2.50
|
|
|
Year ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Net income
|
$
|
219,590
|
|
|
$
|
220,330
|
|
|
$
|
86,303
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
||||||
Change in available for sale securities, net of tax
|
318
|
|
|
(185
|
)
|
|
(124
|
)
|
|||
Foreign currency translation adjustments
|
88
|
|
|
226
|
|
|
176
|
|
|||
Change in derivatives, net of tax
|
(424
|
)
|
|
874
|
|
|
1,171
|
|
|||
Reclassification of derivative gains into Other revenue
|
(1,046
|
)
|
|
(1,292
|
)
|
|
—
|
|
|||
Total other comprehensive (loss) income
|
(1,064
|
)
|
|
(377
|
)
|
|
1,223
|
|
|||
TOTAL COMPREHENSIVE INCOME
|
218,526
|
|
|
219,953
|
|
|
87,526
|
|
|||
Comprehensive loss attributable to noncontrolling interest
|
—
|
|
|
(44
|
)
|
|
(386
|
)
|
|||
COMPREHENSIVE INCOME ATTRIBUTABLE TO ALLEGIANT TRAVEL COMPANY
|
$
|
218,526
|
|
|
$
|
219,997
|
|
|
$
|
87,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegiant
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
Travel
|
|
|
|
|
|||||||||||||||||
|
Common
|
|
|
|
Additional
|
|
other
|
|
|
|
|
|
Company
|
|
|
|
Total
|
|||||||||||||||||
|
stock
|
|
Par
|
|
paid-in
|
|
comprehensive
|
|
Retained
|
|
Treasury
|
|
shareholders'
|
|
Noncontrolling
|
|
shareholders'
|
|||||||||||||||||
|
outstanding
|
|
value
|
|
capital
|
|
income (loss)
|
|
earnings
|
|
shares
|
|
equity
|
|
interest
|
|
equity
|
|||||||||||||||||
Balance at December 31, 2013
|
18,544
|
|
|
$
|
22
|
|
|
$
|
209,213
|
|
|
$
|
(12
|
)
|
|
$
|
352,811
|
|
|
$
|
(186,291
|
)
|
|
$
|
375,743
|
|
|
$
|
1,574
|
|
|
$
|
377,317
|
|
Share-based compensation
|
93
|
|
|
—
|
|
|
8,602
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,602
|
|
|
—
|
|
|
8,602
|
|
||||||||
Issuance of common stock, net of forfeitures
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Tax benefit from share-based compensation
|
—
|
|
|
—
|
|
|
3,442
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,442
|
|
|
—
|
|
|
3,442
|
|
||||||||
Shares repurchased by the Company and held as treasury shares
|
(1,268
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(139,105
|
)
|
|
(139,105
|
)
|
|
—
|
|
|
(139,105
|
)
|
||||||||
Cash dividends declared, $2.50 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43,717
|
)
|
|
—
|
|
|
(43,717
|
)
|
|
—
|
|
|
(43,717
|
)
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,223
|
|
|
—
|
|
|
—
|
|
|
1,223
|
|
|
—
|
|
|
1,223
|
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86,689
|
|
|
—
|
|
|
86,689
|
|
|
(386
|
)
|
|
86,303
|
|
||||||||
Balance at December 31, 2014
|
17,413
|
|
|
$
|
22
|
|
|
$
|
221,257
|
|
|
$
|
1,211
|
|
|
$
|
395,783
|
|
|
$
|
(325,396
|
)
|
|
$
|
292,877
|
|
|
$
|
1,188
|
|
|
$
|
294,065
|
|
Share-based compensation
|
37
|
|
|
—
|
|
|
7,307
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,307
|
|
|
—
|
|
|
7,307
|
|
||||||||
Issuance of common stock, net of forfeitures
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Tax benefit from share-based compensation
|
—
|
|
|
—
|
|
|
3,865
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,865
|
|
|
—
|
|
|
3,865
|
|
||||||||
Liquidation of ownership interest in subsidiary
|
—
|
|
|
—
|
|
|
(3,484
|
)
|
|
—
|
|
|
3,926
|
|
|
—
|
|
|
442
|
|
|
(1,144
|
)
|
|
(702
|
)
|
||||||||
Shares repurchased by the Company and held as treasury shares
|
(695
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(129,455
|
)
|
|
(129,455
|
)
|
|
—
|
|
|
(129,455
|
)
|
||||||||
Stock issued under employee stock purchase plan
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,436
|
|
|
1,436
|
|
|
—
|
|
|
1,436
|
|
||||||||
Cash dividends declared, $2.75 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46,464
|
)
|
|
—
|
|
|
(46,464
|
)
|
|
—
|
|
|
(46,464
|
)
|
||||||||
Other comprehensive (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(377
|
)
|
|
—
|
|
|
—
|
|
|
(377
|
)
|
|
—
|
|
|
(377
|
)
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
220,374
|
|
|
—
|
|
|
220,374
|
|
|
(44
|
)
|
|
220,330
|
|
||||||||
Balance at December 31, 2015
|
16,803
|
|
|
$
|
22
|
|
|
$
|
228,945
|
|
|
$
|
834
|
|
|
$
|
573,619
|
|
|
$
|
(453,415
|
)
|
|
$
|
350,005
|
|
|
$
|
—
|
|
|
$
|
350,005
|
|
Share-based compensation
|
5
|
|
|
—
|
|
|
9,291
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,291
|
|
|
—
|
|
|
9,291
|
|
||||||||
Issuance of common stock, net of forfeitures
|
214
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Shares repurchased by the Company and held as treasury shares
|
(402
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(66,371
|
)
|
|
(66,371
|
)
|
|
—
|
|
|
(66,371
|
)
|
||||||||
Stock issued under employee stock purchase plan
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,983
|
|
|
1,983
|
|
|
—
|
|
|
1,983
|
|
||||||||
Cash dividends declared, $2.40 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39,812
|
)
|
|
—
|
|
|
(39,812
|
)
|
|
—
|
|
|
(39,812
|
)
|
||||||||
Other comprehensive (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,064
|
)
|
|
—
|
|
|
—
|
|
|
(1,064
|
)
|
|
—
|
|
|
(1,064
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
219,590
|
|
|
—
|
|
|
219,590
|
|
|
—
|
|
|
219,590
|
|
||||||||
Balance at December 31, 2016
|
16,633
|
|
|
$
|
22
|
|
|
$
|
238,236
|
|
|
$
|
(230
|
)
|
|
$
|
753,397
|
|
|
$
|
(517,803
|
)
|
|
$
|
473,622
|
|
|
$
|
—
|
|
|
$
|
473,622
|
|
|
Year ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net income
|
$
|
219,590
|
|
|
$
|
220,330
|
|
|
$
|
86,303
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
105,216
|
|
|
98,097
|
|
|
83,409
|
|
|||
Loss on aircraft and other equipment disposals
|
4,981
|
|
|
4,630
|
|
|
7,100
|
|
|||
Special charge
|
—
|
|
|
—
|
|
|
43,280
|
|
|||
Provision for obsolescence of expendable parts, supplies and fuel
|
2,598
|
|
|
1,604
|
|
|
1,301
|
|
|||
Amortization of deferred financing costs
|
1,688
|
|
|
1,099
|
|
|
2,215
|
|
|||
Share-based compensation expense
|
9,389
|
|
|
10,474
|
|
|
16,723
|
|
|||
Deferred income taxes
|
29,846
|
|
|
8,979
|
|
|
(7,353
|
)
|
|||
Excess tax benefits from share-based compensation
|
—
|
|
|
(3,865
|
)
|
|
(3,442
|
)
|
|||
Changes in certain assets and liabilities:
|
|
|
|
|
|
||||||
(Increase) decrease in accounts receivable
|
(18,201
|
)
|
|
(1,693
|
)
|
|
4,707
|
|
|||
(Increase) decrease in prepaid expenses
|
1,999
|
|
|
6,030
|
|
|
8,591
|
|
|||
Increase (decrease) in accounts payable
|
9,209
|
|
|
(6,431
|
)
|
|
851
|
|
|||
Increase (decrease) in accrued liabilities
|
7,596
|
|
|
14,673
|
|
|
9,243
|
|
|||
Increase (decrease) in air traffic liability
|
(4,135
|
)
|
|
12,821
|
|
|
17,927
|
|
|||
Deferred major maintenance
|
(18,857
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
(4,058
|
)
|
|
(1,381
|
)
|
|
(1,074
|
)
|
|||
Net cash provided by operating activities
|
346,861
|
|
|
365,367
|
|
|
269,781
|
|
|||
INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Purchase of investment securities
|
(444,532
|
)
|
|
(357,546
|
)
|
|
(334,538
|
)
|
|||
Proceeds from maturities of investment securities
|
361,082
|
|
|
373,816
|
|
|
297,968
|
|
|||
Aircraft pre-delivery deposits
|
(125,434
|
)
|
|
—
|
|
|
—
|
|
|||
Purchase of property and equipment, including capitalized interest
|
(199,743
|
)
|
|
(252,686
|
)
|
|
(279,418
|
)
|
|||
Other investing activities
|
6,790
|
|
|
2,198
|
|
|
740
|
|
|||
Net cash used in investing activities
|
(401,837
|
)
|
|
(234,218
|
)
|
|
(315,248
|
)
|
|||
FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Cash dividends paid to shareholders
|
(67,540
|
)
|
|
(62,439
|
)
|
|
(41,787
|
)
|
|||
Excess tax benefits from share-based compensation
|
—
|
|
|
3,865
|
|
|
3,442
|
|
|||
Proceeds from the issuance of long-term debt
|
321,160
|
|
|
121,000
|
|
|
385,300
|
|
|||
Repurchase of common stock
|
(66,371
|
)
|
|
(129,455
|
)
|
|
(139,105
|
)
|
|||
Principal payments on long-term debt
|
(154,080
|
)
|
|
(67,930
|
)
|
|
(168,794
|
)
|
|||
Other financing activities
|
(594
|
)
|
|
1,312
|
|
|
(1,690
|
)
|
|||
Net cash provided by (used in) financing activities
|
32,575
|
|
|
(133,647
|
)
|
|
37,366
|
|
|||
Net change in cash and cash equivalents
|
(22,401
|
)
|
|
(2,498
|
)
|
|
(8,101
|
)
|
|||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
87,112
|
|
|
89,610
|
|
|
97,711
|
|
|||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
64,711
|
|
|
$
|
87,112
|
|
|
$
|
89,610
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
|
|
|
|
|
|
||||||
Cash payments for:
|
|
|
|
|
|
||||||
Interest paid, net of amount capitalized
|
$
|
21,758
|
|
|
$
|
23,574
|
|
|
$
|
19,270
|
|
Income taxes, net of refunds
|
$
|
110,612
|
|
|
$
|
111,399
|
|
|
$
|
55,501
|
|
Non-cash transactions:
|
|
|
|
|
|
||||||
Long-term debt assumed for aircraft
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
141,960
|
|
|
As of December 31, 2016
|
|
As of December 31, 2015
|
||||||||||||||||||||||||||||
|
|
|
Unrealized
|
|
|
|
|
|
Unrealized
|
|
|
||||||||||||||||||||
|
Cost
|
|
Gains
|
|
(Losses)
|
|
Market Value
|
|
Cost
|
|
Gains
|
|
(Losses)
|
|
Market Value
|
||||||||||||||||
Municipal debt securities
|
$
|
153,506
|
|
|
$
|
2
|
|
|
$
|
(216
|
)
|
|
$
|
153,292
|
|
|
$
|
52,669
|
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
52,670
|
|
Commercial paper
|
108,421
|
|
|
14
|
|
|
(63
|
)
|
|
108,372
|
|
|
83,155
|
|
|
—
|
|
|
(1
|
)
|
|
83,154
|
|
||||||||
Corporate debt securities
|
101,739
|
|
|
3
|
|
|
(124
|
)
|
|
101,618
|
|
|
108,485
|
|
|
50
|
|
|
(154
|
)
|
|
108,381
|
|
||||||||
Federal agency debt securities
|
47,524
|
|
|
1
|
|
|
(71
|
)
|
|
47,454
|
|
|
73,783
|
|
|
—
|
|
|
(80
|
)
|
|
73,703
|
|
||||||||
US Treasury Bonds
|
4,615
|
|
|
—
|
|
|
(6
|
)
|
|
4,609
|
|
|
1,607
|
|
|
—
|
|
|
(1
|
)
|
|
1,606
|
|
||||||||
Money market funds
|
123
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|
781
|
|
|
—
|
|
|
—
|
|
|
781
|
|
||||||||
Total
|
$
|
415,928
|
|
|
$
|
20
|
|
|
$
|
(480
|
)
|
|
$
|
415,468
|
|
|
$
|
320,480
|
|
|
$
|
52
|
|
|
$
|
(237
|
)
|
|
$
|
320,295
|
|
Aircraft and related flight equipment:
|
|
MD83/88 (remaining depreciable lives)
|
3 years
|
Boeing 757-200 (remaining depreciable lives)
|
1 year
|
Airbus A320 Series
|
10-15 years
|
Rotable parts
|
1-7 years
|
Buildings
|
25 years
|
Equipment and leasehold improvements
|
3-7 years
|
Computer hardware and software
|
3-5 years
|
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.
|
|
Year ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Basic:
|
|
|
|
|
|
||||||
Net income attributable to Allegiant Travel Company
|
$
|
219,590
|
|
|
$
|
220,374
|
|
|
$
|
86,689
|
|
Less net income allocated to participating securities
|
(1,748
|
)
|
|
(961
|
)
|
|
(293
|
)
|
|||
Net income attributable to common stock
|
$
|
217,842
|
|
|
$
|
219,413
|
|
|
$
|
86,396
|
|
Net income per share, basic
|
$
|
13.23
|
|
|
$
|
12.97
|
|
|
$
|
4.87
|
|
Weighted-average shares outstanding
|
16,465
|
|
|
16,923
|
|
|
17,729
|
|
|||
Diluted:
|
|
|
|
|
|
|
|
||||
Net income attributable to Allegiant Travel Company
|
$
|
219,590
|
|
|
$
|
220,374
|
|
|
$
|
86,689
|
|
Less net income allocated to participating securities
|
(1,746
|
)
|
|
(958
|
)
|
|
(292
|
)
|
|||
Net income attributable to common stock
|
$
|
217,844
|
|
|
$
|
219,416
|
|
|
$
|
86,397
|
|
Net income per share, diluted
|
$
|
13.21
|
|
|
$
|
12.94
|
|
|
$
|
4.86
|
|
Weighted-average shares outstanding
|
16,465
|
|
|
16,923
|
|
|
17,729
|
|
|||
Dilutive effect of stock options and restricted stock
|
42
|
|
|
69
|
|
|
88
|
|
|||
Adjusted weighted-average shares outstanding under treasury stock method
|
16,507
|
|
|
16,992
|
|
|
17,817
|
|
|||
Participating securities excluded under two-class method
|
(18
|
)
|
|
(30
|
)
|
|
(35
|
)
|
|||
Adjusted weighted-average shares outstanding under two-class method
|
16,489
|
|
|
16,962
|
|
|
17,782
|
|
|
As of December 31, 2016
|
|
As of December 31, 2015
|
||||
Flight equipment
|
$
|
1,377,829
|
|
|
$
|
1,123,115
|
|
Computer hardware and software
|
101,850
|
|
|
78,200
|
|
||
Ground property and equipment
|
81,786
|
|
|
72,078
|
|
||
Total property and equipment
|
1,561,465
|
|
|
1,273,393
|
|
||
Less accumulated depreciation and amortization
|
(466,151
|
)
|
|
(387,451
|
)
|
||
Property and equipment, net
|
$
|
1,095,314
|
|
|
$
|
885,942
|
|
|
As of December 31, 2016
|
|
As of December 31, 2015
|
||||
Salaries, wages and benefits
|
$
|
38,860
|
|
|
$
|
37,545
|
|
Station expenses
|
14,799
|
|
|
11,668
|
|
||
Interest
|
11,891
|
|
|
7,900
|
|
||
Passenger fees
|
11,200
|
|
|
9,007
|
|
||
Maintenance and repairs
|
4,953
|
|
|
7,287
|
|
||
Passenger taxes
|
394
|
|
|
1,415
|
|
||
Dividends
|
—
|
|
|
27,728
|
|
||
Other accruals
|
14,564
|
|
|
13,581
|
|
||
Total accrued liabilities
|
$
|
96,661
|
|
|
$
|
116,131
|
|
|
As of December 31, 2016
|
|
As of December 31, 2015
|
||||
Fixed-rate notes payable due through 2020
|
$
|
465,748
|
|
|
$
|
341,738
|
|
Variable-rate notes payable due through 2021
|
342,526
|
|
|
299,940
|
|
||
Total long-term debt, net of related costs
|
808,274
|
|
|
641,678
|
|
||
Less current maturities, net of related costs
|
86,226
|
|
|
74,069
|
|
||
Long-term debt, net of current maturities and related costs
|
$
|
722,048
|
|
|
$
|
567,609
|
|
|
|
|
|
||||
Weighted average fixed-interest rate
|
5.41
|
%
|
|
5.25
|
%
|
||
Weighted-average variable-interest rate
|
3.16
|
%
|
|
2.98
|
%
|
|
Twelve Months Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Shares repurchased (1)
|
391,972
|
|
|
682,003
|
|
|
1,245,447
|
|
|||
Average price per share
|
$
|
164.99
|
|
|
$
|
186.43
|
|
|
$
|
109.64
|
|
Total (in thousands)
|
$
|
64,673
|
|
|
$
|
127,147
|
|
|
$
|
136,554
|
|
|
|
As of
December 31, 2016 |
|
As of
December 31, 2015 |
||||||||||||||||||||
Description
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Total
|
|
Level 1
|
|
Level 2
|
||||||||||||
Cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agency debt securities
|
|
$
|
19,399
|
|
|
$
|
—
|
|
|
$
|
19,399
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Municipal debt securities
|
|
1,843
|
|
|
—
|
|
|
1,843
|
|
|
754
|
|
|
—
|
|
|
754
|
|
||||||
Money market funds
|
|
123
|
|
|
123
|
|
|
—
|
|
|
781
|
|
|
781
|
|
|
—
|
|
||||||
Commercial paper
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,426
|
|
|
—
|
|
|
8,426
|
|
||||||
Total cash equivalents
|
|
21,365
|
|
|
123
|
|
|
21,242
|
|
|
9,961
|
|
|
781
|
|
|
9,180
|
|
||||||
Short-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial paper
|
|
108,372
|
|
|
—
|
|
|
108,372
|
|
|
74,728
|
|
|
—
|
|
|
74,728
|
|
||||||
Municipal debt securities
|
|
78,826
|
|
|
—
|
|
|
78,826
|
|
|
47,073
|
|
|
—
|
|
|
47,073
|
|
||||||
Corporate debt securities
|
|
76,570
|
|
|
—
|
|
|
76,570
|
|
|
80,957
|
|
|
—
|
|
|
80,957
|
|
||||||
Federal agency debt securities
|
|
3,895
|
|
|
—
|
|
|
3,895
|
|
|
42,825
|
|
|
—
|
|
|
42,825
|
|
||||||
US Treasury Bonds
|
|
1,606
|
|
|
—
|
|
|
1,606
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total short-term
|
|
269,269
|
|
|
—
|
|
|
269,269
|
|
|
245,583
|
|
|
—
|
|
|
245,583
|
|
||||||
Long-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Municipal debt securities
|
|
72,623
|
|
|
—
|
|
|
72,623
|
|
|
4,843
|
|
|
—
|
|
|
4,843
|
|
||||||
Corporate debt securities
|
|
25,048
|
|
|
—
|
|
|
25,048
|
|
|
27,425
|
|
|
—
|
|
|
27,425
|
|
||||||
Federal agency debt securities
|
|
24,160
|
|
|
—
|
|
|
24,160
|
|
|
30,878
|
|
|
—
|
|
|
30,878
|
|
||||||
US Treasury Bonds
|
|
3,003
|
|
|
—
|
|
|
3,003
|
|
|
1,606
|
|
|
—
|
|
|
1,606
|
|
||||||
Derivative instruments
|
|
1,660
|
|
|
—
|
|
|
1,660
|
|
|
2,480
|
|
|
—
|
|
|
2,480
|
|
||||||
Total long-term
|
|
126,494
|
|
|
—
|
|
|
126,494
|
|
|
67,232
|
|
|
—
|
|
|
67,232
|
|
||||||
Total financial instruments
|
|
$
|
417,128
|
|
|
$
|
123
|
|
|
$
|
417,005
|
|
|
$
|
322,776
|
|
|
$
|
781
|
|
|
$
|
321,995
|
|
|
|
As of December 31, 2016
|
|
As of December 31, 2015
|
|
|
||||||||||||
|
|
Carrying Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
|
Estimated Fair Value
|
|
Level
|
||||||||
Publicly held debt
|
|
$
|
452,179
|
|
|
$
|
468,005
|
|
|
$
|
300,000
|
|
|
$
|
299,250
|
|
|
2
|
Non-publicly held debt
|
|
360,999
|
|
|
340,866
|
|
|
346,179
|
|
|
327,321
|
|
|
3
|
||||
Total long-term debt
|
|
$
|
813,178
|
|
|
$
|
808,871
|
|
|
$
|
646,179
|
|
|
$
|
626,571
|
|
|
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
89,014
|
|
|
$
|
108,119
|
|
|
$
|
53,156
|
|
State
|
5,204
|
|
|
6,501
|
|
|
4,645
|
|
|||
Foreign
|
1,262
|
|
|
996
|
|
|
854
|
|
|||
Total current
|
95,480
|
|
|
115,616
|
|
|
58,655
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
27,950
|
|
|
9,458
|
|
|
(8,557
|
)
|
|||
State
|
1,673
|
|
|
125
|
|
|
(247
|
)
|
|||
Foreign
|
1,265
|
|
|
1,190
|
|
|
977
|
|
|||
Total deferred
|
30,888
|
|
|
10,773
|
|
|
(7,827
|
)
|
|||
Total income tax provision
|
$
|
126,368
|
|
|
$
|
126,389
|
|
|
$
|
50,828
|
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Income tax expense at federal statutory rate
|
$
|
121,085
|
|
|
$
|
121,352
|
|
|
$
|
47,996
|
|
State income taxes, net of federal income tax benefit
|
5,487
|
|
|
4,293
|
|
|
2,587
|
|
|||
Other
|
(204
|
)
|
|
744
|
|
|
245
|
|
|||
Total income tax expense
|
$
|
126,368
|
|
|
$
|
126,389
|
|
|
$
|
50,828
|
|
|
As of December 31,
|
||||||
|
2016
|
|
2015
|
||||
Deferred tax assets:
|
|
|
|
||||
Accrued vacation
|
$
|
1,183
|
|
|
$
|
1,339
|
|
Accrued bonus
|
9,340
|
|
|
8,189
|
|
||
State taxes
|
2,187
|
|
|
2,396
|
|
||
Accrued property taxes
|
2,077
|
|
|
1,149
|
|
||
Other
|
1,910
|
|
|
6,940
|
|
||
Stock-based compensation expense
|
3,126
|
|
|
2,923
|
|
||
Total deferred tax assets
|
19,823
|
|
|
22,936
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Prepaid expenses
|
5,049
|
|
|
5,314
|
|
||
Depreciation
|
86,981
|
|
|
60,979
|
|
||
Foreign deferred
|
3,131
|
|
|
2,223
|
|
||
Total deferred tax liabilities
|
95,161
|
|
|
68,516
|
|
||
Net deferred tax liabilities
|
$
|
75,338
|
|
|
$
|
45,580
|
|
|
Unrecognized Compensation Cost (thousands)
|
|
Weighted Average Period (years)
|
||
Restricted stock
|
$
|
27,518
|
|
|
2.48
|
Cash-settled SARs
|
897
|
|
|
2.14
|
|
Stock options
|
50
|
|
|
0.18
|
|
Total
|
$
|
28,465
|
|
|
2.47
|
|
Options
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Contractual Life (years)
|
|
Aggregate Intrinsic Value (thousands)
|
|||||
Outstanding at December 31, 2013
|
283,631
|
|
|
$
|
49.48
|
|
|
|
|
|
||
Granted
|
50,630
|
|
|
108.59
|
|
|
|
|
|
|||
Exercised (1)
|
(237,912
|
)
|
|
38.39
|
|
|
|
|
|
|||
Forfeited
|
(7,600
|
)
|
|
20.42
|
|
|
|
|
|
|||
Outstanding at December 31, 2014
|
88,749
|
|
|
69.43
|
|
|
3.29
|
|
$
|
7,180
|
|
|
Exercised
|
(36,968
|
)
|
|
52.06
|
|
|
|
|
|
|||
Forfeited
|
(3,000
|
)
|
|
3.50
|
|
|
|
|
|
|||
Outstanding at December 31, 2015
|
48,781
|
|
|
86.65
|
|
|
2.62
|
|
$
|
3,960
|
|
|
Exercised
|
(5,192
|
)
|
|
108.59
|
|
|
|
|
|
|||
Outstanding at December 31, 2016
|
43,589
|
|
|
$
|
84.04
|
|
|
1.55
|
|
$
|
3,590
|
|
Fully vested and expected to vest at December 31, 2016
|
43,256
|
|
|
$
|
83.85
|
|
|
1.55
|
|
$
|
3,571
|
|
Exercisable at December 31, 2016
|
32,552
|
|
|
$
|
75.71
|
|
|
1.34
|
|
$
|
2,952
|
|
|
||||||||
|
2016
|
|
2015
|
|
2014
|
|||
Weighted-average volatility
|
33.2
|
%
|
|
30.2
|
%
|
|
29.3
|
%
|
Expected term (in years)
|
0.3 - 3.1
|
|
|
0.3 - 2.5
|
|
|
1.4 - 2.5
|
|
Risk-free interest rate
|
0.4% - 1.5%
|
|
|
0.3% - 1.2%
|
|
|
0.4% - 0.9%
|
|
Dividend yield
|
1.51
|
%
|
|
1.47
|
%
|
|
1.80
|
%
|
|
|
# of SARs
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Contractual Term (years)
|
|
Aggregate Intrinsic Value (thousands)
|
|||||
Balance at December 31, 2013
|
|
138,516
|
|
|
$
|
64.21
|
|
|
|
|
|
||
Granted
|
|
54,528
|
|
|
108.59
|
|
|
|
|
|
|||
Forfeited
|
|
(14,220
|
)
|
|
94.19
|
|
|
|
|
|
|||
Exercised
|
|
(59,311
|
)
|
|
53.46
|
|
|
|
|
|
|||
Balance at December 31, 2014
|
|
119,513
|
|
|
$
|
86.23
|
|
|
|
|
|
||
Granted
|
|
77,396
|
|
|
181.47
|
|
|
|
|
|
|||
Forfeited
|
|
(21,722
|
)
|
|
135.16
|
|
|
|
|
|
|||
Exercised
|
|
(43,446
|
)
|
|
80.10
|
|
|
|
|
|
|||
Balance at December 31, 2015
|
|
131,741
|
|
|
$
|
136.13
|
|
|
|
|
|
||
Granted
|
|
15,000
|
|
|
146.03
|
|
|
|
|
|
|||
Forfeited
|
|
(10,083
|
)
|
|
170.21
|
|
|
|
|
|
|||
Exercised
|
|
(32,050
|
)
|
|
89.19
|
|
|
|
|
|
|||
Balance at December 31, 2016
|
|
104,608
|
|
|
$
|
153.86
|
|
|
3.03
|
|
$
|
1,312
|
|
Vested or expected at December 31, 2016
|
|
96,093
|
|
|
$
|
153.79
|
|
|
3.04
|
|
$
|
1,212
|
|
Exercisable at December 31, 2016
|
|
39,852
|
|
|
$
|
142.29
|
|
|
2.51
|
|
$
|
961
|
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022 - Thereafter
|
||||||||||||
Operating lease obligations
|
$
|
5,461
|
|
|
$
|
4,849
|
|
|
$
|
4,174
|
|
|
$
|
2,522
|
|
|
$
|
610
|
|
|
$
|
2,988
|
|
Aircraft purchase obligations
|
379,152
|
|
|
101,184
|
|
|
64,550
|
|
|
33,800
|
|
|
—
|
|
|
—
|
|
||||||
Airport fees under use and lease agreements
|
11,115
|
|
|
11,115
|
|
|
10,358
|
|
|
5,215
|
|
|
63
|
|
|
—
|
|
||||||
Total future payments
|
$
|
395,728
|
|
|
$
|
117,148
|
|
|
$
|
79,082
|
|
|
$
|
41,537
|
|
|
$
|
673
|
|
|
$
|
2,988
|
|
|
Balance at Beginning of Year
|
|
Changes Charged to Statement of Income Account
|
|
Balance at End of Year
|
||||||
Allowance for expendable parts and supplies
|
|
|
|
|
|
||||||
For the Year Ended December 31, 2016
|
$
|
4,607
|
|
|
$
|
2,598
|
|
|
$
|
7,205
|
|
For the Year Ended December 31, 2015
|
3,003
|
|
|
1,604
|
|
|
4,607
|
|
|||
For the Year Ended December 31, 2014
|
1,702
|
|
|
1,301
|
|
|
3,003
|
|
—
|
Financial Statements and Supplementary Data. The financial statements included in Item 8 - Financial Statements and Supplementary Data above are filed as part of this annual report.
|
—
|
Financial Statement Schedules. Schedules are not submitted because they are not required or are not applicable, or the required information is shown in the consolidated financial statements or notes thereto.
|
—
|
Exhibits. The Exhibits listed below are filed or incorporated by reference as part of this Form 10-K. Where so indicated, exhibits which were previously filed are incorporated by reference.
|
Exhibit
Number
|
|
|
Description
|
3.1
|
|
|
Articles of Incorporation of Allegiant Travel Company. (Incorporated by reference to Exhibit 3.1 to Registration Statement No. 333-134145 filed with the Commission on July 6, 2006).
|
3.2
|
|
|
Bylaws of Allegiant Travel Company as amended on February 17, 2015. (Incorporated by reference to Exhibit 3.2 to the Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Commission on November 1, 2016).
|
3.3
|
|
|
Specimen Stock Certificate (incorporated by reference to Exhibit 3.3 to the Form 8-A filed with the Commission on November 22, 2006).
|
4.1
|
|
|
Indenture dated as of June 13, 2014, between Allegiant Travel Company and Wells Fargo Bank, National Association, as trustee. (Incorporated by reference to Exhibit 4.1 to Registration Statement on Form S-3 (Reg. No. 333-196738) filed with the Commission on June 13, 2014.)
|
4.2
|
|
|
First Supplemental Indenture dated as of June 25, 2014, among the Company, the guarantors named therein and Wells Fargo Bank, National Association, as trustee (including the Form of Note). (Incorporated by reference to Exhibit 4.2 to Form 8-K filed with the Commission on June 25, 2014.)
|
4.3
|
|
|
Second Supplemental Indenture dated as of December 5, 2016, among the Company, the guarantors named therein and Wells Fargo Bank, National Association, as trustee (including the form of New Note). (Incorporated by reference to Exhibit 4.3 to Form 8-K filed with the Commission on December 5, 2016.)
|
4.4
|
|
|
Form of 5.50% Notes due 2019 (included as Exhibit A in Exhibit 4.2 incorporated by reference).
|
4.5
|
|
|
Form of Additional 5.50% Notes due 2019 (included as Exhibit A in Exhibit 4.3 incorporated by reference.)
|
10.1
|
|
|
2006 Long-Term Incentive Plan, as amended on July 19, 2009. (Incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended September 30, 2009, filed with the Commission on November 9, 2009-SEC File No. 001-33166). (1)
|
10.2
|
|
|
Form of Indemnification Agreement. (Incorporated by reference to Exhibit 10.4 to the Annual Report on Form 10-K for the year ended December 31, 2012, filed with the Commission on February 26, 2013).
|
10.3
|
|
|
Lease dated June 23, 2008 between Windmill Durango Office II, LLC and Allegiant Air, LLC. (Incorporated by reference to Exhibit 10.18 to the Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Commission on March 3, 2009-SEC File No. 001-33166.)
|
10.4
|
|
|
Addendum to Lease between Windmill Durango Office II, LLC and Allegiant Air, LLC signed on June 17, 2009. (Incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2009 filed with the Commission on August 7, 2009-SEC File No. 001-33166).
|
10.5
|
|
|
Airport Use and Lease Agreement signed on March 17, 2011 between the Company and Clark County Department of Aviation. (Incorporated by reference to Exhibit 10.20 to the Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Commission on February 27, 2012.)
|
10.6
|
|
|
Purchase Agreement dated July 26, 2016 between Allegiant Air, LLC and Airbus S.A.S. and related Letter Agreements. (Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Commission on November 1, 2016.) (2)
|
10.7
|
|
|
Amendment No. 1 dated October 25, 2016, to Purchase Agreement between Allegiant Air, LLC and Airbus S.A.S. (3)
|
10.8
|
|
|
General Terms Agreement dated July 26, 2016, among CFM International, Inc., Allegiant Air, LLC and Sunrise Asset Management, LLC and related Letter Agreement No. 3. (Incorporated by reference to Exhibit 10.2 to Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Commission on November 1, 2016.) (2)
|
Exhibit
Number |
|
|
Description
|
10.9
|
|
|
Employment Agreement dated as of September 9, 2016, between the Company and John Redmond. (Incorporated by reference to Exhibit 10.3 to Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Commission on November 1, 2016.) (1)
|
10.10
|
|
|
Stock Appreciation Rights Agreement dated September 9, 2016, between the Company and John Redmond. (Incorporated by reference to Exhibit 10.4 to Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Commission on November 1, 2016.) (1)
|
10.11
|
|
|
Restricted Stock Agreement dated September 9, 2016, between the Company and John Redmond. (Incorporated by reference to Exhibit 10.5 to Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Commission on November 1, 2016.) (1)
|
10.12
|
|
|
2016 Long-Term Incentive Plan. (Incorporated by reference to Exhibit 10.6 to Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Commission on November 1, 2016.) (1)
|
10.13
|
|
|
Form of Restricted Stock Agreement used for Directors of the Company. (Incorporated by reference to Exhibit 10.7 to Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Commission on November 1, 2016.) (1)
|
10.14
|
|
|
Form of Stock Option Agreement used for Employees of the Company. (Incorporated by reference to Exhibit 10.8 to Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Commission on November 1, 2016.) (1)
|
10.15
|
|
|
Form of Restricted Stock Agreement used for Employees of the Company. (Incorporated by reference to Exhibit 10.9 to Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Commission on November 1, 2016.) (1)
|
10.16
|
|
|
Form of Stock Appreciation Rights Agreement used for Employees of the Company. (Incorporated by reference to Exhibit 10.10 to Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Commission on November 1, 2016.) (1)
|
12
|
|
|
Calculation of Ratio of Earnings to Fixed Charges of Allegiant Travel Company.
|
21
|
|
|
List of Subsidiaries
|
23.1
|
|
|
Consent of KPMG LLP, independent registered public accounting firm
|
23.2
|
|
|
Consent of Ernst & Young LLP, independent registered public accounting firm
|
31.1
|
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
|
31.2
|
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
|
32
|
|
|
Section 1350 Certifications
|
101
|
|
|
The following financial information from the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on February 24, 2017, formatted in XBRL includes (i) Consolidated Balance Sheets as of December 31, 2016 and December 31, 2015 (ii) Consolidated Statements of Income for the years ended December 31, 2016, 2015and 2014 (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2016, 2015 and 2014 (iv) Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2016, 2015 and 2014 (v) Consolidated Cash Flow Statements for the years ended December 31, 2016, 2015 and 2014 (vi) the Notes to the Consolidated Financial Statements. (4)
|
(1)
|
Management contract or compensation plan or agreement required to be filed as an Exhibit to this Report on Form 10-K pursuant to Item 15(b) of Form 10-K.
|
(2)
|
Portions of the indicated document have been omitted pursuant to a grant of confidential treatment and the document indicated has been filed separately with the Commission as required by Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
|
(3)
|
Portions of the indicated document have been omitted pursuant to a request for confidential treatment and the document indicated has been filed separately with the Commission as required by Rule 24b-2 of the Securities Exchange Act of 1934, as amended.
|
(4)
|
Pursuant to Rule 406 of Regulation S-T, the XBRL related information in Exhibit 101 to this annual report on Form 10-K shall be deemed to be not filed for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed part of a registration statement, prospectus or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
|
|
Allegiant Travel Company
|
|
|
|
|
|
By:
|
/s/ Scott Sheldon
|
|
|
Scott Sheldon
|
|
|
Chief Financial Officer
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Maurice J. Gallagher, Jr.
|
|
Chief Executive Officer and Director
|
|
February 24, 2017
|
Maurice J. Gallagher, Jr.
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ John Redmond
|
|
President and Director
|
|
February 24, 2017
|
John Redmond
|
|
|
|
|
|
|
|
|
|
/s/ Scott Sheldon
|
|
Chief Financial Officer
|
|
February 24, 2017
|
Scott Sheldon
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ Gregory Anderson
|
|
Principal Accounting Officer
|
|
February 24, 2017
|
Gregory Anderson
|
|
|
|
|
|
|
|
|
|
|
|
Director
|
|
February 24, 2017
|
Montie Brewer
|
|
|
|
|
|
|
|
|
|
/s/ Gary Ellmer
|
|
Director
|
|
February 24, 2017
|
Gary Ellmer
|
|
|
|
|
|
|
|
|
|
/s/ Linda Marvin
|
|
Director
|
|
February 24, 2017
|
Linda Marvin
|
|
|
|
|
|
|
|
|
|
|
|
Director
|
|
February 24, 2017
|
Charles W. Pollard
|
|
|
|
|
|
|
|
|
|
1.
|
A320 AIRCRAFT RESCHEDULING
|
1.1
|
The Seller and the Buyer agree to revise the Scheduled Delivery Month for each of the following Aircraft as follows:
|
Aircraft Rank
|
Original Schedule Delivery Month/Year
|
Revised Scheduled Delivery Month/Year
|
Type
|
4
|
[…***…]
|
[…***…]
|
A320 Aircraft
|
5
|
[…***…]
|
[…***…]
|
A320 Aircraft
|
1.2
|
Clause 9.1 of the Agreement is hereby amended by deleting the table contained therein and replacing it with the following table:
|
Aircraft Rank
|
Schedule Delivery Month/Year
|
Type
|
1
|
[…***…]
|
A320 Aircraft
|
2
|
[…***…]
|
A320 Aircraft
|
3
|
[…***…]
|
A320 Aircraft
|
4
|
[…***…]
|
A320 Aircraft
|
5
|
[…***…]
|
A320 Aircraft
|
6
|
[…***…]
|
A320 Aircraft
|
7
|
[…***…]
|
A320 Aircraft
|
8
|
[…***…]
|
A320 Aircraft
|
9
|
[…***…]
|
A320 Aircraft
|
10
|
[…***…]
|
A320 Aircraft
|
11
|
[…***…]
|
A320 Aircraft
|
12
|
[…***…]
|
A320 Aircraft
|
2.
|
MISCELLANEOUS
|
2.1
|
The Parties hereby agree that the present Amendment No.1 shall enter into full force and effect from the date mentioned above.
|
2.2
|
Except as otherwise provided by the terms and conditions hereof, this Amendment No.1 contains the entire agreement of the Parties with respect to the subject matter hereof and supersedes all other prior understandings, commitments, agreements, representations and negotiations whatsoever, oral and written, and may not be varied except by an instrument in writing of even date herewith or subsequent hereto executed by the duly authorized representatives of both Parties.
|
2.3
|
In the event of any inconsistency between the terms and conditions of the Agreement and those of the present Amendment No.1, the latter shall prevail to the extent of such inconsistency, whereas the part not concerned by such inconsistency shall remain in full force and effect.
|
2.4
|
This Amendment No.1 is subject to the confidentiality provisions set forth in Clause 22.9 of the Agreement.
|
2.5
|
The Parties agree that this Amendment No.1, upon execution hereof, shall constitute an integral and non-severable part of the Agreement and shall be governed by all of its provisions, as such provisions have been specifically amended pursuant to this Amendment No.1. Except as otherwise expressly modified herein, all other terms and conditions of the Agreement shall continue to be in full force and effect.
|
2.6
|
This Amendment No.1 may be executed by the Parties hereto in separate counterparts, each of which when so signed and delivered will be an original, but all such counterparts will together constitute but one and the same instrument.
|
2.7
|
This Amendment No.1 shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to its conflicts of laws provisions that would result in the application of the law of any other jurisdiction.
|
|
For the Year Ended December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before income taxes
|
$
|
345,958
|
|
|
$
|
346,719
|
|
|
$
|
137,131
|
|
|
$
|
146,680
|
|
|
$
|
124,647
|
|
Add: Fixed Charges
|
33,058
|
|
|
28,843
|
|
|
24,027
|
|
|
13,625
|
|
|
11,294
|
|
|||||
Add: Amortization of capitalized interest
|
130
|
|
|
127
|
|
|
141
|
|
|
139
|
|
|
83
|
|
|||||
Less: Interest capitalized
|
1,763
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|
498
|
|
|||||
Less: Earnings from joint venture, net
|
164
|
|
|
136
|
|
|
217
|
|
|
393
|
|
|
99
|
|
|||||
Plus: pre-tax net loss attributable to noncontrolling interest
|
—
|
|
|
(44
|
)
|
|
(386
|
)
|
|
(494
|
)
|
|
(183
|
)
|
|||||
Total earnings
|
$
|
377,219
|
|
|
$
|
375,597
|
|
|
$
|
161,468
|
|
|
$
|
160,422
|
|
|
$
|
135,610
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest costs (1)
|
$
|
30,599
|
|
|
$
|
26,510
|
|
|
$
|
21,205
|
|
|
$
|
9,493
|
|
|
$
|
8,739
|
|
Interest factor of operating lease expense (2)
|
2,459
|
|
|
2,333
|
|
|
2,822
|
|
|
4,132
|
|
|
2,555
|
|
|||||
Total fixed charges
|
$
|
33,058
|
|
|
$
|
28,843
|
|
|
$
|
24,027
|
|
|
$
|
13,625
|
|
|
$
|
11,294
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges (3)
|
11.41
|
|
|
13.02
|
|
|
6.72
|
|
|
11.77
|
|
|
12.01
|
|
(1)
|
Interest costs include both interest expensed and capitalized, including amortization of deferred financing costs and original issue discount on debt.
|
(2)
|
Interest factor of operating lease expense is based on an estimate which the Company considers to be a reasonable approximation.
|
(3)
|
The ratio of earnings to fixed charges was computed by dividing earnings by fixed charges.
|
List of Subsidiaries
|
||
Name of Subsidiary
|
|
Jurisdiction of Incorporation or Organization
|
Allegiant Air, LLC
|
|
Nevada, USA
|
Allegiant Vacations, LLC
|
|
Nevada, USA
|
AFH, Inc.
|
|
Nevada, USA
|
Allegiant Information Systems, Inc.
|
|
Nevada, USA
|
SFB Fueling, LLC*
|
|
Delaware, USA
|
Sunrise Asset Management, LLC
|
|
Nevada, USA
|
G4 Properties, LLC
|
|
Nevada, USA
|
Tee Snap, LLC
|
|
Nevada, USA
|
MR Brightside LLC
|
|
Nevada, USA
|
GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 34 KG
|
|
Germany
|
GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 43 KG
|
|
Germany
|
GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 48 KG
|
|
Germany
|
GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 49 KG
|
|
Germany
|
GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 50 KG
|
|
Germany
|
GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 51 KG
|
|
Germany
|
GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 55 KG
|
|
Germany
|
GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 56 KG
|
|
Germany
|
GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 57 KG
|
|
Germany
|
GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 58 KG
|
|
Germany
|
GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 59 KG
|
|
Germany
|
GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 60 KG
|
|
Germany
|
Date:
|
February 24, 2017
|
/s/ Maurice J. Gallagher, Jr.
|
|
|
Title: Principal Executive Officer
|
Date:
|
February 24, 2017
|
/s/ Scott Sheldon
|
|
|
Title: Principal Financial Officer
|
/s/ Maurice J. Gallagher, Jr.
|
|
/s/ Scott Sheldon
|
Maurice J. Gallagher, Jr.
|
|
Scott Sheldon
|
Principal Executive Officer
|
|
Principal Financial Officer
|
February 24, 2017
|
|
February 24, 2017
|