FATFlyer
Topic Author
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Allegiant Going Public - $100 Million IPO

Tue May 16, 2006 11:14 am

Save your money now if you want to own some stock.

This has been rumored in various circles for a few months now and I've mentioned something big might be in the works, so here it is.

Allegiant Travel, which includes Allegiant Air, is going public. The filing is for up to $100 million. Merrill Lynch & Co., Bear Stearns & Co. Inc. and Raymond James are the underwriters.

I'm still reading the filing but a few points:
* They had "On December 31, 2005, we had $53.3 million of unrestricted cash and investments. "

* 2005 Net Income was $7,292,000 on revenue of $90,664,000

* "We have identified at least 65 additional small cities in the U.S. and Canada where we can offer our low fare nonstop service to Las Vegas or Orlando."

* "We also believe there are several other world-class leisure destinations we could serve that share many of the same characteristics as Las Vegas and Orlando. These potential markets include several popular vacation destinations in the U.S., Mexico and the Caribbean."

The SEC filing
http://www.sec.gov/Archives/edgar/da...00104746906007241/a2170224zs-1.htm
"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
 
FATFlyer
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RE: Allegiant Going Public - $100 Million IPO

Tue May 16, 2006 11:25 am

For those not familiar with the organizational structure and the name Allegiant Travel:
"On May 4, 2005, Allegiant Travel Company, LLC and Allegiant Vacations, LLC were formed as Nevada limited liability companies. Allegiant Travel Company, LLC was designated to serve as the holding company for Allegiant Air, LLC and Allegiant Vacations, LLC. To effectuate this, all outstanding shares of Allegiant Air, LLC were exchanged for shares of Allegiant Travel Company, LLC and thereafter Allegiant Air, LLC and Allegiant Vacations, LLC became wholly owned subsidiaries of Allegiant Travel Company, LLC (hereafter collectively referred to as "Allegiant" or the "Company").

I'm going through the financials now. Some of you will probably see things there I'm missing because I can't give it much attention for close analysis until Wed or Thurs because of my work schedule.

edit- I like this route map with different images for each city. It should be on the website.
http://www.sec.gov/Archives/edgar/da...468/000104746906007241/g951761.jpg

[Edited 2006-05-16 04:32:08]
"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
 
FATFlyer
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RE: Allegiant Going Public - $100 Million IPO

Tue May 16, 2006 11:57 am

A few financial comments from the prospectus:

* "Our cost per available seat mile, or "CASM," was 6.82¢ and 7.41¢ for the years ended December 31, 2004 and 2005, respectively."

* "Excluding the cost of fuel, our CASM for the year ended December 31, 2005, was 4.27¢."

* 81.0% of sales were through the website.

* 14.7% were from travel agents

* I was off on the revenue number above, including charters and other income like hotels, etc. 2005 revenue was $132,500,000 with operating expenses at $123,999,000.

*Avg fare in 2005 - $105.07

*They are hedged on 6.4% of their project fuel for 2006.

* There is a MD87 and a MD83 aircraft currently in short-term storage. Also one MD83 is leased out on a short-term basis until September. The prospectus says these aircraft will enter service in Q4 2006.

I have to get back to some other work so I can't play with the numbers. But I'm sure someone else can give us some good analysis.
"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
 
jeb94
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RE: Allegiant Going Public - $100 Million IPO

Tue May 16, 2006 6:38 pm

Nothing is official just yet. The letter filed to Nasdaq today was just a first required step. The head could change his mind. I doubt he will since a lot of effort has been put into this and if any of the rumors that have been floating around are true and being pursued, an IPO will have to happen. Don't be surprised if there is an announcement concerning the fleet shortly after this thing is a done deal.
 
sunking737
Posts: 1116
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RE: Allegiant Going Public - $100 Million IPO

Tue May 16, 2006 7:48 pm

Oh I will have to break my piggy bank and buy some stock.

Great news for G4 !!!!!!!
Just an MSPAVGEEK
 
iowaman
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RE: Allegiant Going Public - $100 Million IPO

Tue May 16, 2006 11:58 pm

I will definitely be interested in buying Allegiant stock. I wonder how much per share it will go public for?
 
FATFlyer
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RE: Allegiant Going Public - $100 Million IPO

Wed May 17, 2006 2:07 am

Jeb94, you never know what or when Maury has in mind. But I think it will be a matter of timing.

There is a press release and media coverage that makes it appear it will happen though.
http://biz.yahoo.com/prnews/060516/latu102.html?.v=50
http://today.reuters.com/investing/f...LEISURE-ALLEGIANTTRAVEL-URGENT.XML

The IPO has been rumored for a while. I even saw the rumor mentioned on a blog back in February so it hasn't been unsuspected.

Jeb, also as I said above I really like that route map. It might be something to pass on to someone that it would look nice on the website.

Iowaman, no price is set yet.
"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
 
Humberside
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RE: Allegiant Going Public - $100 Million IPO

Wed May 17, 2006 2:33 am

Good luck to Allegiant for their floatation. Hopefully they will be able to expand their services from the small regional airports even further
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FLAIRPORT
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RE: Allegiant Going Public - $100 Million IPO

Wed May 17, 2006 3:10 am

yes I would buy allegiant...if the price is good
NEXT FLIGHT: FLL-ATL-HPN on FL
 
mtnwest1979
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RE: Allegiant Going Public - $100 Million IPO

Wed May 17, 2006 4:16 am

Quoting FATFlyer (Reply 1):
edit- I like this route map with different images for each city. It should be on the website.
http://www.sec.gov/Archives/edgar/da...1.jpg

Shouldn't they have a raisin for Fresno, as that is a bit closer than a Sequoia tree?  Wink
But, I am happy they DO NOT have a potato for Idaho Falls!!!!!!

I hope this (going public) somehow doesn't come back to bite them in the rear when some stockholders get unhappy or too impatient!
"If it ain't broke, don't fix it!"
 
stirling
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RE: Allegiant Going Public - $100 Million IPO

Wed May 17, 2006 4:32 am

Is there a larger version of the route map available somewhere?
I really like it!
But what is the icon for Stockton? It's too small for me to figure out....and Ft Collins?
Delete this User
 
LVPlanefan
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Joined: Sat May 07, 2005 9:07 am

RE: Allegiant Going Public - $100 Million IPO

Wed May 17, 2006 7:13 am

Could there be some 737NG's in Allegiant's future with longer range than the MD-80's? I'd love to see ABE get that ABE-LAS route.
 
sunking737
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RE: Allegiant Going Public - $100 Million IPO

Wed May 17, 2006 7:23 am

Jeb94 send me an email its on my profile, I have a question for you. Thanks.....Rob
Just an MSPAVGEEK
 
jeb94
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RE: Allegiant Going Public - $100 Million IPO

Wed May 17, 2006 9:19 am

I'm just saying what's been officially said. In my opinion the IPO will happen but that's my opinion, not the official word.
 
jeb94
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RE: Allegiant Going Public - $100 Million IPO

Wed May 17, 2006 9:28 am

I'll see what I can do about the route map. All I can do is make suggestions.
 
mtnwest1979
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RE: Allegiant Going Public - $100 Million IPO

Wed May 17, 2006 10:54 am

Quoting Stirling (Reply 10):
But what is the icon for Stockton? It's too small for me to figure out....and Ft Collins?

FNL is a skiier.
SCK looks like a cherry in front of something. I know they grow or grew a lot of cherries there at one time. I got sick after eating a pound of cherries from Waterloo just NE of there many years ago (27).
"If it ain't broke, don't fix it!"
 
g4resagent
Posts: 182
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RE: Allegiant Going Public - $100 Million IPO

Wed May 17, 2006 2:09 pm

I will see if I can get my hands on the route map to pass on to all the a.netters.