WASHINGTON, D.C. - Senator Tom Harkin (D-IA) today issued the following statement after the U.S. Senate voted 74-26 to approve the debt-ceiling deal.  Last night, Harkin delivered a floor speech in opposition to the measure. To view his video, click here.

"To say that this is the wrong policy at the wrong time is a gross understatement.  This deal will destroy millions of jobs in both the public and private sectors.  And by shutting off Federal funding and investment - a critical engine sustaining our sputtering economy - it could easily plunge America back into recession.

"I have advocated a balanced approach to deficit reduction, including both spending cuts and revenue increases.  But this deal expressly rejects a balanced approach.  It offends people's basic sense of fairness that Congress would slash funding for things like student loans and cancer research, essential funding for seniors, people with disabilities, and the most vulnerable people in our society but ask not one dollar of shared sacrifice from millionaires and billionaires, who have received huge tax breaks over the last decade.  

"Since the 1930s, Congress has routinely raised the debt ceiling 89 times, including seven times during the presidency of George W. Bush, and 18 times under President Reagan.  Yet, this time, Congressional Republicans held the economy hostage, threatening to default on our national debt and plunge America back into recession unless their demands were met.


"This deal was not about reducing the deficit; first and foremost, this deal was about preserving hundreds of billions of dollars in tax breaks for corporations and for the wealthiest people in our society."

 

###

New Law Helps Protect Homeowners from Fraud After Natural Disasters

JOLIET - August 2, 2011. Governor Pat Quinn today signed legislation that helps protect Illinois homeowners who are trying to recover following a natural disaster. He also signed a new law that ensures landlords are able to evict tenants who commit serious crimes on the rental property.

House Bill 3034 was sponsored by Rep. Ann Williams (D-Chicago) and Sen. A.J. Wilhelmi (D-Joliet) to help protect homeowners from contractors who prey upon individuals following natural disasters. Contractors known as "storm chasers" travel to towns after natural disasters and target homeowners, especially elderly citizens, through home repair scams. These contractors misrepresent themselves in order to persuade homeowners to sign contracts for home repairs. If the work is done at all, it oftentimes must be redone due to its poor quality.

"When disasters such as storms or flooding hit, the recovery process can be overwhelming, and some individuals use that as an opportunity to take advantage of vulnerable homeowners," Governor Quinn said. "It is important that we do everything we can to stop dishonest contractors so that residents can focus their energy on rebuilding their homes and communities."

"These "stormchasers" victimize consumers at the most vulnerable times," said Rep. Williams. "This bill will help to prevent unscrupulous contractors from taking advantage of homeowners desperate to pick up the pieces after a natural disaster."

The new law prohibits roofing contractors from allowing out of state roofing contractors to lease their license numbers for compensation. It also requires roofing contractors to include their license number on all contracts, bids and advertisements. Additionally, the law enables residents to cancel a contract and requires contractors to refund any payments within 10 days of the cancellation.

"When people are the victims of a natural disaster, the last thing they need to worry about is someone trying to take advantage of them in their time of need," said Sen. Wilhelmi. "This law will prevent contractors from using unscrupulous practices to take advantage of victims and win contracts over more honest competitors."

The Illinois Department of Financial and Professional Regulation (IDFPR) issues licenses to roofing contractors and recommends that local governments require a roofing contractor to provide proof of an active state license prior to issuing a local building permit or business license. Individuals can also visit www.idfpr.com to look up roofing contractor licenses to determine whether they are active and in good standing. HB 3034 goes into effect Jan. 1.

Governor Quinn also signed Senate Bill 1766, sponsored by Sen. Wilhelmi and Rep. Anthony DeLuca (D-Chicago Heights). The law will help fight crime by requiring rental contracts to include an provision stating  that tenants can be evicted for committing a felony or a Class A misdemeanor on the property. The new law goes into effect immediately.

###

Michael Gelder Appointed Acting Director of the Department on Aging

CHICAGO - August 2, 2011. Governor Pat Quinn today announced the appointment of Michael Gelder as acting director of the Illinois Department on Aging. He replaces Charles Johnson, who recently retired.

"Michael Gelder has shown time and again that he is able to bring people together to solve important and often-complex issues," Governor Quinn said. "His experience and commitment to public service will be valuable in this transition. I also thank Charles Johnson for his years of leadership at the Department on Aging."

Gelder had been serving as Governor Quinn's senior health policy advisor since 2009. In that role he led efforts to modernize and reform Illinois' healthcare and long-term care systems. His efforts have resulted in landmark Medicaid reform legislation that is expected to save the state hundreds of millions of dollars over the coming years. Additionally, he was chair of the Governor's Nursing Home Safety Task Force that produced historic reform legislation signed into law in 2010. He holds a master's degree in health administration from the Washington University School of Medicine in St. Louis, and a bachelor's degree with honors from Michigan State University.

Charles Johnson led efforts to strengthen state and federally-supported client services, protect elder rights, and streamline operations. The department has also worked to rebalance the state's long term care system to enhance in-home and community-based services for older persons. Other service enhancements include adding flexible senior services, emergency home response service, comprehensive care coordination, and new demonstration projects to improve community supportive services that seniors need and prove more affordable than institutional care.

The Illinois Department on Aging serves and advocates for older Illinoisans and their caregivers by administering quality and culturally appropriate programs that promote partnerships and encourage independence, dignity and quality of life.

###

Red Cross Blood Donations at Seriously Low Level; Blood Donors Needed

Blood donations nationally have been declining this summer and supplies are at seriously low levels. Though the American Red Cross issued a national appeal for blood donors on July 11, blood products are going out to area hospitals just as quickly as donations are coming in.

All blood types are needed - especially type O negative, B negative and A negative - to ensure blood supplies do not drop to emergency levels.

"Summer blood donors can mean the difference between an adequate blood supply and a shortage," said Shelly Heiden, CEO of the Heart of America Red Cross Blood Services region. "We are asking eligible donors to make appointments in the coming days to reverse the downward trend in donations that we have seen this summer."

With many donors busy or traveling and school out of session, donations have dropped dramatically. In fact, during May and June 2011, while the need for blood products remained steady, donations were at the lowest level during this time frame in 12 years. More recently extreme heat experienced throughout the region may be contributing to fewer donations.

The Red Cross needs blood donors - now more than ever - to roll up a sleeve and give as soon as possible.

To show appreciation to those who help save lives near the upcoming Labor Day holiday (August 29 to September 7), all presenting donors at Red Cross blood drives and blood donation centers in the Heart of America region will automatically be entered for a chance to win a $500 gas card. This is a part of the Red Cross' summer-long Good to Give. Good to Go. promotion that features holiday-themed raffles and a chance for one lucky donor (21 and older) in the Mid-America Blood Services Division to win a trip for four (4) to Orlando, Florida.

 

How to Donate Blood

Simply call 1-800-RED CROSS (1-800-733-2767) or visit redcrossblood.org to make an appointment or for more information.

A blood donor card or driver's license, or two other forms of identification are required at check-in. Individuals who are 17 years of age (16 with parental permission in some states), weigh at least 110 pounds and are generally in good health may be eligible to donate blood. High school students and other donors 18 years of age and younger also have to meet certain height and weight requirements.

About the American Red Cross

Governed by volunteers and supported by giving individuals and communities, the American Red Cross is the single largest supplier of blood products to hospitals throughout the United States. While local hospital needs are always met first, the Red Cross also helps ensure no patient goes without blood no matter where or when they need it. In addition to providing nearly half of the nation's blood supply, the Red Cross provides relief to victims of disaster, trains millions in lifesaving skills, serves as a communication link between U.S. military members and their families, and assists victims of international disasters or conflicts. 

 

Blood Donation Opportunities

 

CARROLL COUNTY

8/18/2011, 1:30 pm- 6:30 pm, American Legion Hall, 221 Calvert St., Chadwick,

8/19/2011, 12:00 pm- 6:00 pm, St. Wendelin's Catholic Church, 102 S. Linn, Shannon

8/22/2011, 12:00 pm- 5:00 pm, First Presbyterian Church, 502 3rd Street, Savanna

8/26/2011, 1:00 pm- 6:00 pm, Church of God, 816 S. Clay, Mount Carroll

8/30/2011, 8:00 am-11:30 am, Elkay Manufacturing, 105 N. Rochester St, Lanark

CLINTON COUNTY

8/18/2011, 10:00 am- 4:00 pm, Lyondell Chemical Company, 3400 Anamosa Road, Clinton 

 

SCOTT COUNTY

8/26/2011, 10:00 am- 1:00 pm, Hy-Vee, 2200 W. Kimberly Rd., Davenport

WHITESIDE COUNTY

8/16/2011, 1:00 pm- 5:15 pm, Old Fulton Fire Station, 912 4th Street, Fulton

8/17/2011, 2:00 pm- 6:00 pm, Rock Falls Blood Donation Center, 112 W. Second St., Rock Falls

8/23/2011, 1:00 pm- 5:15 pm, Old Fulton Fire Station, 912 4th Street, Fulton

8/24/2011, 3:00 pm- 7:00 pm, Abiding Word Church, 806 E Lynn Blvd., Sterling

8/24/2011, 10:00 am- 2:00 pm, Rock Falls Blood Donation Center, 112 W. Second St., Rock Falls

8/25/2011, 4:00 pm- 7:00 pm, Rock Falls Blood Donation Center, 112 W. Second St., Rock Falls

8/31/2011, 2:00 pm- 6:00 pm, Rock Falls Blood Donation Center, 112 W. Second St., Rock Falls

 

MILAN, IL (08/02/2011)(readMedia)-- Approximately 440 Illinois Army National Guard Soldiers with 2nd Battalion, 123rd Field Artillery Regiment in Milan will be recognized Aug. 6 and 7 by the National Guard Bureau Freedom Salute Campaign for their sacrifice and service while they deployed to Sinai, Egypt. Three separate ceremonies will take place to honor the Soldiers with the battalion.

The Soldiers mobilized in May 2010 as part of the Multinational Force and Observers (MFO), and returned home to their families May 14, 2011. The international peacekeeping force oversees the terms of the 1979 peace treaty between Egypt and Israel.

"Our Soldiers did an outstanding job accomplishing their mission," said Lt. Col. Maurice Rochelle of Flossmoor, 2nd Battalion, 123rd Field Artillery commander. "There were no major accidents, incidents or casualties during our deployment and we succeeded in every facet of our mission. I am proud of the work these Soldiers have done representing Illinois and their families should be proud of them as well."

The Milan-based 2nd Battalion, 123rd Field Artillery Regiment includes the Forward Support Company, 2nd Battalion, 123rd Field Artillery in Milan; Headquarters, 2nd Battalion, 123rd Field Artillery in Milan; Battery A, 2nd Battalion, 123rd Field Artillery in Milan; Battery B, 2nd Battalion, 123rd Field Artillery in Macomb and Battery C, 2nd Battalion, 123rd Field Artillery in Galesburg.

While the mobilization included units from northwest Illinois, Soldiers are from all areas of Illinois.

The Freedom Salute Campaign is one of the largest Army National Guard recognition endeavors in history. It is designed to publicly acknowledge Army National Guard Soldiers and those who supported them while deployed.

Date Unit Location Time Approx. # of Soldiers

Aug. 6 Battery B Macomb Armory, 135 W. Grant St.; Macomb 10 a.m. 90

Aug. 6 Battery C Galesburg Armory, 362 N. Linwood Road; Galesburg 2 p.m. 90

Aug. 7 Headquarters, Battery A, Forward Support Company Augustana College, 3703 7th Ave.; Rock Island (Centennial Hall) 10 a.m. 250

Become our Facebook Fan!

www.facebook.com/illinoisnationalguard

Q.  What are tax expenditures, and why are they in the news?

A.  Tax expenditures are defined in the Congressional Budget Act of 1974 as lost federal income due to provisions in the tax code that exempt or reduce taxes for certain groups, products or activities.  Tax expenditures were intentionally passed by Congress for certain policy goals, such as encouraging employer-provided health insurance or home ownership, so they are also called tax incentives.  Since they help achieve goals set by Congress, they are not loopholes. The debate in Washington over reducing the federal debt has invoked whether certain tax expenditures should be ended.  Stopping these tax expenditures would raise money for the federal Treasury but also would take away tax incentives that are used by tens of millions of middle-income taxpayers.  There's also controversy over whether the amount of revenue raised by ending some of the tax expenditures is overstated and whether the revenue gained would be worth ending policies that support widely desirable behavior, like pension plan contributions.  

Q.  What are the biggest tax expenditures?

A.  An analysis by Senator Orrin Hatch of Utah, who serves as Ranking Member of the Senate Committee on Finance, which is responsible for tax legislation, determined these top 10 largest tax expenditures.  The analysis was based on data from the nonpartisan Joint Committee on Taxation, Congress' official estimator for the cost of tax legislation.

Exclusion for Employer-Provided Health Insurance.
Representing 13 percent of tax expenditures, it's the single largest tax expenditure.  To do away with this would threaten access to health care for families and individuals that have health insurance through their employers.

Home Mortgage Interest Deduction.
Having helped millions of Americans achieve home ownership, this expenditure accounts for nine percent of all tax expenditures.

Preferential Rates for Dividends & Capital Gains.
Take away this tax expenditure which accounts for eight percent of tax expenditures, and the rate on dividends will almost triple in less than 18 months, and the rate on capital gains will go up 59 percent, also in less than 18 months.  This will discourage investment in stocks and bonds.

Exclusion of Medicare Benefits.
Accounting for seven percent of tax expenditures, its elimination would increase taxes seniors' Medicare benefits.

Pre-Tax Treatment of Defined Benefit Pension Plan Contributions.
This is a tax benefit that reduces the cost for those workers who save for retirement.  It represents six percent of tax expenditures.

Earned Income Tax Credit. 
Designed for low-income people, the Earned Income Tax Credit accounts for five percent of all tax expenditures.

Deduction for State and Local Taxes. 
This deduction would hit high-tax states hardest, driving up the marginal rate of taxpayers who take this deduction by as much as 35 percent.  It represents five percent of all tax expenditures.

Pre-Tax Treatment for Contributions to a 401(k).  
At four percent of tax expenditures, this is a significant incentive to families and individuals to save for retirement.

Exclusion of Capital Gains at Death.  
If this one goes, death would be taxed twice.  First, the decedent's estate might get hit with the death tax.  Then the decedent's heirs would be subject to tax again on the gain embedded in any inherited asset, should they decide to sell it.  This accounts for four percent of tax expenditures.

Deductions for Charitable Contributions. 
This is the tax benefit for donations to charities other than education and health care institutions, including donations to religious institutions.  This charitable deduction represents four percent of tax expenditures.

Source: Joint Committee on Taxation, "Estimates Of Federal Tax Expenditures For Fiscal Years 2010-2014," December 21, 2010. http://www.jct.gov/publications  

 

Q.  Are tax expenditures the same as tax loopholes?

A.  Despite some political arguments to the contrary, tax expenditures are neither spending nor tax loopholes for millionaires, yachts or corporate jets.  Less than one-tenth of one percent of all tax expenditures benefit corporate jet owners.  Tax expenditures are used by many families and individuals.  Consideration of them by Congress should be done in a comprehensive tax reform debate to make sure the tax code is made more efficient and no more burdensome than it is today.

Sunday, August 14, 2011   2:00 p.m.

 

The German American Heritage Center presents local educator Bruce Bufe in the first of a series on personal family immigration histories called "My German Story." This program features the life and times of Franz Gustav Bufe, a German immigrant cigar maker in Moline in the 1880's. He was also an artist, a poet, and a keen social critic of his time. Come experience his poems in translation and explore the themes and views of a common man with an uncommon talent for self- expression. This program is re-scheduled from a spring emergency cancellation.

 

Members free; public welcome with $5.00 admission; includes museum exhibits.

DES MOINES, IA (08/02/2011)(readMedia)-- State Treasurer Michael L. Fitzgerald announced today that once again the state of Iowa has maintained the highest credit rating possible. "Fitch Ratings affirmed that Iowa is a Triple A state," Fitzgerald said. "Additionally, they upgraded Iowa's school infrastructure and Vision Iowa fund bonds to AA from AA-."

According to Fitch's report, "The state has a careful and conservative approach to financial operations and has consistently achieved budgetary balance and maintenance of sizeable reserves despite revenue declines associated with the recent downturn."

"The experts say that Iowa is among the elite states," Fitzgerald stated. "They continue to recognize the first-rate fiscal management and strong economy of our state and we can stand out as a model to other states."

###

Following is Senator Grassley's schedule this week in Washington, D.C.  The Senate is in session.

  • Grassley will meet in Washington with Iowans from the Fort Des Moines Museum and Education Center and the United Nations Refugee Agency.

Grassley will also meet with Iowans from Ames, Ankeny, Bettendorf, Johnston, Lawton, Mason City, Mount Vernon, Pella, Robins, Rock Valley, Strawberry Point, West Des Moines and Winterset.

  • On Monday, August 1, at 3:15 p.m. (CT), Grassley will meet with Congressman Steve King, Senator Tom Harkin and Postmaster General Patrick Donahoe, to discuss the Sioux City mail processing facility consolidation to Sioux Falls. 
  • On Wednesday, August 3, at 9:00 a.m. (CT), Grassley will attend a Judiciary Committee hearing entitled, "Cybercrime: Updating the Computer Fraud and Abuse Act to Protect Cyberspace and Combat Emerging Threats."
  • On Wednesday, August 3, at 9:00 a.m. (CT), there is a Finance Committee hearing entitled, "Dually-Eligible (Medicare and Medicaid) Beneficiaries: Improving Care While Lowering Costs." 
  • On Thursday, August 4, at 9:00 a.m. (CT), Grassley will attend a Judiciary Committee executive business meeting. 
  • On Friday, August 5, at 9:00 a.m. (CT), Grassley will attend a Finance Committee hearing on the nominations of: Mr. Michael Punke, of Montana, to be Deputy United States Trade Representative with Rank of Ambassador, Executive Office of the President; Mr. Paul Piquado, of the District of Columbia, to be an Assistant Secretary of Commerce, United States Department of Commerce; and Mr. David S. Johanson, of Texas, to be a Member of the United States International Trade Commission.

-30-

ALLEGIANT TRAVEL COMPANY

SECOND QUARTER 2011 FINANCIAL RESULTS

34th Consecutive Profitable Quarter

Fully Diluted Earnings per Share of $.62

 

Las Vegas, Nev., August 1, 2011 /GLOBE NEWSWIRE/ - Allegiant Travel Company (NASDAQ: ALGT) today reported the following financial results for the 2nd quarter 2011 and comparisons to prior year equivalents:

 

 

Unaudited

2Q11

2Q10

Change

Total operating revenue (millions)

$200.4

$168.4

19.1%

Operating income (millions)

$20.7

$28.1

(26.2)%

Operating margin

10.3%

16.7%

-6.4pp

EBITDA (millions)

$30.9

$36.5

(15.3)%

EBITDA margin

15.4%

21.7%

-6.3pp

Net income (millions)

$11.9

$17.6

(32.0)%

Diluted earnings per share

$0.62

$0.87

(28.7)%

 

 

 

 

Scheduled Service:

 

 

 

Average fare - scheduled service

$91.17

$73.15

24.6%

Average fare - ancillary air-related charges

$31.45

$29.61

6.2%

Average fare - ancillary third party products

$5.68

$4.87

16.6%

Average fare - total

$128.30

$107.63

19.2%

Scheduled service passenger revenue per ASM (PRASM)(cents)

9.27

7.27

27.5%

Total scheduled service revenue per ASM (TRASM) (cents)

13.04

10.70

21.9%

Load factor

92.0%

91.8%

0.2pp

 

 

 

 

Total System*:

 

 

 

Operating expense per passenger

$115.24

$90.96

26.7%

Operating expense per passenger, excluding fuel

$59.81

$50.61

18.2%

Operating expense, excluding fuel per ASM (CASM ex fuel) (cents)

5.92

4.87

21.6%

*Total system includes scheduled service, fixed-fee contract and non-revenue flying

"We are very proud to report our 34th consecutive profitable quarter," stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company.  "I'd like to thank our Team Members for their great efforts and contributions to another successful quarter.

"Revenues have been very strong.  Scheduled service revenues were up almost 24% versus 2nd quarter 2010 despite a reduction in capacity.  The $19 increase in revenue per passenger more than offset the $15 per passenger increase in fuel cost during the quarter.

"We are also very excited about the addition of the first 757 to our operating certificate, which occurred on July 1.  We recently began operating this 217 seat aircraft on two of our Las Vegas routes, McAllen, Texas and Rockford, Illinois and have been receiving excellent feedback from our customers.  Having the additional seats during the peak summer travel period is proving to be quite valuable.  We are now working on preparing our application to the FAA for obtaining the requisite ETOPS approvals we need in order to commence Hawaii flights which we hope to be able to begin next summer.

"The introduction of the 757, our Hawaii expansion and the previously announced MD-80 seat expansion projects are all important to the company and we are excited to see progress on all fronts.  Our Team Members have been working diligently to complete these product additions as well as continue to provide our customers with low cost access to our world class destinations," concluded Gallagher.

Andrew C. Levy, President of Allegiant Travel Company, stated, "We are very pleased with our revenue performance during the 2nd quarter.  We produced the highest total fare in our company's history, driven by increases in the base air fare, and both air-related and third party ancillary revenues.  A 2.6% reduction in capacity was a key factor enabling this strong revenue performance.  We have again proven we can thrive during periods of high fuel price volatility if we are prudent in how we allocate our capacity.

"Strength in revenue has continued as we enter this 3rd quarter, again aided by a tight capacity plan.  Capacity this quarter will be lower as compared with the 3rd quarter of 2010 and we again expect to post substantial increases in unit revenues as more fully described in the guidance section later in the release.

"Our current plan for the 4th quarter shows slight growth in capacity, mostly attributable to having a full quarter flying our first 757 as well as a small contribution from the presence of some re-configured MD-80 aircraft with 166 seats in the operating fleet.

"Finally, we again experienced strong growth in our third party ancillary revenue primarily resulting from greater volume and yield in hotel room sales.  Room nights grew over 12% versus the 2nd quarter last year, with almost half of the increase generated away from our traditionally strong Las Vegas market.  Growth in the third party segment is a high priority and we continue to make investments in management and technology to further that goal," concluded Levy.

 

Supplemental Ancillary Revenue Information (unaudited)

2Q11

2Q10

Change

Gross ancillary revenue - third party products (000)

$29,547

$25,859

14.3%

Cost of goods sold (000)

($20,046)

($17,609)

13.8%

Transaction costs (a) (000)

($1,210)

($1,098)

10.2%

Ancillary revenue - third party products (000)

$8,291

$7,152

15.9%

As percent of gross

28.1%

27.7%

0.4pp

As percent of income before taxes

43.9%

25.7%

18.2pp

Ancillary revenue - third party products/scheduled passenger

$5.68

$4.87

16.6%

(a) includes credit card fees and travel agency commissions

Scott Sheldon, SVP and CFO of Allegiant Travel Company, stated, "During the 2nd quarter, we experienced a 27% increase in unit costs - cost per passenger was $115.24 compared with $90.96 in the 2nd quarter 2010 - but the results were as projected.  Fuel costs per passenger were 37% higher, and non-fuel per passenger costs were up by 18% or slightly more than $9.

"The increase in non-fuel unit costs was mostly due to reduced fleet utilization and $4.8 million of special items or $3.08 per passenger.  These expenses included 757 pre-operating costs, manual integrations, the retirement of one MD-87 and the write down and impairment charges related to our engine consignment program.  The increase in non-fuel per passenger costs would have been only $3.30 or 6.5% excluding these special items and if fleet utilization had remained unchanged on a year over year basis.

"Apart from fuel, we experienced the most unit cost pressure in the maintenance area due to the execution of our engine overhaul and repair strategy as we have described in the past.  We continue to project expenses between $20 and $25 million in 2011 for the overhaul of 30 to 35 engines, but the majority of these expenditures will occur in the 3rd and 4th quarters of this year.

"While our full year 2011 engine operating expense projection remains unchanged, we have increased our projection for total cash outlays.  We now expect to increase our capital expenditures to take advantage of current opportunities in the secondary engine market which will replenish our engine sparing levels and enable us to better manage the timing and costs associated with major engine overhaul events in the future.  Please see the table below for more detailed information on this area.

 

Time period

Total engine cash outlay (millions) Cap ex + Op ex

Maintenance expense per aircraft per month (thousands) Op ex only

2009

$11.9

$103

2010

$11.0

$103

Q3 2011 est

$20 - $25

$120 - $130

Q4 2011est

$10 - $15

$125 - $135

FY 2011 est.

$45 - $55

$120 - $125

FY 2012 est.

$15 - $25

$95 - $105

"Lastly, our unrestricted cash balance (including short term investments) grew slightly during the 2nd quarter to $317 million, up $11 million from the end of the 1st quarter.  During the quarter, we repurchased approximately 34,300 shares for $1.6 million and we currently have $44.9 million in remaining board authorized authority," concluded Sheldon.

 

Unaudited (millions)

6/30/11

12/31/10

Change

Unrestricted cash (including short term investments)

$317.3

$150.3

111.1%

Unrestricted cash net of air traffic liability

175.4

48.9

258.7%

Total debt

142.3

28.1

406.4%

Total shareholders equity

328.3

297.7

10.3%

 

 

 

 

 

Six months ended June 30,

 

Unaudited (millions)

2011

2010

Change

Capital expenditures - year to date

$51.2

$63.3

(19.1)%

At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.

 

Guidance, subject to revision

 

 

 

Revenue guidance

July 2011

3rd quarter 2011

 

Estimated PRASM year-over-growth

+22 to 24%

+19 to 21%

 

Capacity guidance

 

 

 

System

3rd quarter 2011

4th quarter 2011

Full year 2011

Departure year-over-year growth

(5) to (1)%

+4 to 8%

0 to +4%

ASM year-over-year growth

(5) to (1)%

+5 to 9%

0 to +4%

Scheduled

 

 

 

Departure year-over-year growth

(8) to (4)%

+1 to 5%

0 to +4%

ASM year-over-year growth

(5) to (1)%

+4 to 8%

0 to +4%

 

 

 

 

Cost guidance

3rd quarter 2011

 

Full year 2011

CASM ex fuel - year over year growth

+14 to 16%

 

+10 to 12%

 

 

 

 

Fixed fee and other revenue guidance

3rd quarter 2011

 

 

Fixed fee revenue and other revenue (millions)

$11 to $13

 

 

 

 

 

 

CASM ex fuel - cost per available seat mile excluding fuel expense

  • An operating fleet of 51 MD-80 and one 757 aircraft through the 3rd quarter of 2011.
  • 2011 capital expenditures of approximately $140 million.

Allegiant Travel Company will host a conference call with analysts at 4:30 East Coast time today, August 1st, 2011, to discuss its 2nd quarter 2011 financial results. A live broadcast of the conference call will be available via the Company's Investor Relations website homepage at http://ir.allegiant.com. The webcast will also be archived in the "Events & Presentations" section of the website.

About the Company

Las Vegas-based Allegiant Travel Company (NASDAQ: ALGT) is focused on linking travelers in small cities to major leisure destinations such as Las Vegas, Orlando, Fla., Tampa/St. Petersburg, Fla., Phoenix-Mesa, Los Angeles and Fort Lauderdale, Fla. Through its subsidiary, Allegiant Air, the Company operates a low-cost, high-efficiency, all-jet passenger airline offering air travel both on a stand-alone basis and bundled with hotel rooms, rental cars and other travel related services.  ALGT/G

Media Inquiries: Jordan McGee +1-702-589-7260
mediarelations@allegiantair.com
Investor Inquiries: Chris Allen +1-702-851-7365
ir@allegiantair.com

Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding future unit revenue, future maintenance expenses, future operating expense, our ability to obtain regulatory approval to operate our 757 aircraft in extended overwater operations, our expected progress on reconfiguration of our MD-80 aircraft, ASM growth, departure growth, fleet growth,  fixed-fee and other revenues and expected capital expenditures, as well as other information concerning future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "guidance," "anticipate," "intend," "plan," "estimate", "project", "hope"  or similar expressions.

Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at www.sec.gov. These risk factors include, without limitation, the effect of the economic downturn on leisure travel, increases in fuel prices, terrorist attacks, risks inherent to airlines, demand for air services to our leisure destinations from the markets served by us, our ability to implement our growth strategy, unionization efforts, our dependence on our leisure destination markets, our ability to add, renew or replace gate leases, our competitive environment, problems with our aircraft, dependence on fixed fee customers, our reliance on our automated systems, economic and other conditions in markets in which we operate, aging aircraft and other governmental regulation, increases in maintenance costs and cyclical and seasonal fluctuations in our operating results.

Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.

Detailed financial information follows:

Allegiant Travel Company

Consolidated Statements of Income

Three Months Ended June 30, 2011 and 2010

(in thousands, except per share amounts)

(Unaudited)

 

 

Three months ended June 30,

 

Percent

 

2011

 

2010

 

change

OPERATING REVENUE:

 

 

 

 

 

Scheduled service revenue

$133,309

 

$107,452

 

24.1

Ancillary revenue:

 

 

 

 

 

Air-related charges

45,991

 

43,501

 

5.7

Third party products

8,291

 

7,152

 

15.9

Total ancillary revenue

54,282

 

50,653

 

7.2

 

 

 

 

 

 

Fixed fee contract revenue

9,470

 

9,903

 

(4.4)

Other revenue

3,388

 

342

 

890.6

Total operating revenue

200,449

 

168,350

 

19.1

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

Aircraft fuel

86,454

 

62,222

 

38.9

Salary and benefits

29,884

 

26,764

 

11.7

Station operations

16,553

 

15,493

 

6.8

Maintenance and repairs

20,132

 

14,669

 

37.2

Sales and marketing

5,407

 

4,118

 

31.3

Aircraft lease rentals

330

 

571

 

(42.2)

Depreciation and amortization

10,156

 

8,351

 

21.6

Other

10,821

 

8,081

 

33.9

Total operating expenses

179,737

 

140,269

 

28.1

 

 

 

 

 

 

OPERATING INCOME

20,712

 

28,081

 

(26.2)

As a percent of total operating revenue

10.3%

 

16.7%

 

 

OTHER (INCOME) EXPENSE:

 

 

 

 

 

Earnings from unconsolidated affiliates, net

(20)

 

(33)

 

(39.4)

Interest income

(386)

 

(344)

 

12.2

Interest expense

2,235

 

655

 

241.2

Total other (income) expense

1,829

 

278

 

557.9

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

18,883

 

27,803

 

(32.1)

As a percent of total operating revenue

9.4%

 

16.5%

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

6,934

 

10,241

 

(32.3)

 

 

 

 

 

 

NET INCOME

$11,949

 

$17,562

 

(32.0)

As a percent of total operating revenue

6.0%

 

10.4%

 

 

 

 

 

 

 

 

Earnings per share to common stockholders (1):

 

 

 

 

 

Basic

$0.63

 

$0.88

 

(28.4)

Diluted

$0.62

 

$0.87

 

(28.7)

 

 

 

 

 

 

Weighted average shares outstanding used in computing earnings per share to common stockholders (1):

 

 

 

 

 

Basic

18,931

 

19,805

 

(4.4)

Diluted

19,131

 

20,170

 

(5.2)

(1) The Company's 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 and Diluted earnings per share for the periods presented.

 

Allegiant Travel Company

Operating Statistics

Three Months Ended June 30, 2011 and 2010

(Unaudited)

 

 

Three months ended June 30,

 

Percent

 

2011

 

2010

 

change*

OPERATING STATISTICS

 

 

 

 

 

Total system statistics

 

 

 

 

 

Passengers

1,559,619

 

1,542,110

 

1.1

Revenue passenger miles (RPMs) (thousands)

1,401,610

 

1,418,387

 

(1.2)

Available seat miles (ASMs) (thousands)

1,576,791

 

1,601,126

 

(1.5)

Load factor

88.9%

 

88.6%

 

0.3

Operating revenue per ASM (cents)

12.71

 

10.51

 

20.9

Operating expense per ASM (CASM) (cents)

11.40

 

8.76

 

30.1

Fuel expense per ASM (cents)

5.48

 

3.89

 

40.9

Operating CASM, excluding fuel (cents)

5.92

 

4.87

 

21.6

Operating expense per passenger

$115.24

 

$90.96

 

26.7

Fuel expense per passenger

$55.43

 

$40.35

 

37.4

Operating expense per passenger, excluding fuel

$59.81

 

$50.61

 

18.2

Departures

12,430

 

12,364

 

0.5

Block hours

28,277

 

28,619

 

(1.2)

Average stage length (miles)

848

 

869

 

(2.4)

Average number of operating aircraft during period

51.0

 

47.9

 

6.5

Total aircraft in service at period end

51

 

50

 

2.0

Average departures per aircraft per day

2.7

 

2.8

 

(3.6)

Average block hours per aircraft per day

6.1

 

6.6

 

(7.6)

Full-time equivalent employees at period end

1,559

 

1,639

 

(4.9)

Fuel gallons consumed (thousands)

26,868

 

27,315

 

(1.6)

Average fuel cost per gallon

$3.22

 

$2.28

 

41.2

 

 

 

 

 

 

Scheduled service statistics

 

 

 

 

 

Passengers

1,462,126

 

1,468,939

 

(0.5)

Revenue passenger miles (RPMs) (thousands)

1,323,051

 

1,356,693

 

(2.5)

Available seat miles (ASMs) (thousands)

1,438,659

 

1,477,455

 

(2.6)

Load factor

92.0%

 

91.8%

 

0.2

Departures

10,789

 

10,824

 

(0.3)

Average passengers per departure

136

 

136

 

-

Block hours

25,470

 

25,953

 

(1.9)

Yield (cents)

10.08

 

7.92

 

27.3

Scheduled service revenue per ASM (PRASM) (cents)

9.27

 

7.27

 

27.5

Total ancillary revenue per ASM (cents)

3.77

 

3.43

 

9.9

Total scheduled service revenue per ASM (TRASM) (cents)

13.04

 

10.70

 

21.9

Average fare - scheduled service

$91.17

 

$73.15

 

24.6

Average fare - ancillary air-related charges

$31.45

 

$29.61

 

6.2

Average fare - ancillary third party products

$5.68

 

$4.87

 

16.6

Average fare - total

$128.30

 

$107.63

 

19.2

Average stage length (miles)

889

 

910

 

(2.3)

Fuel gallons consumed (thousands)

24,329

 

24,756

 

(1.7)

Average fuel cost per gallon

$3.47

 

$2.42

 

43.4

Percent of sales through website during period

87.9%

 

88.3%

 

(0.4)

* except load factor and percent of sales through website, which is percentage point change

 

Allegiant Travel Company

Consolidated Statements of Income

Six Months Ended June 30, 2011 and 2010

(in thousands, except per share amounts)

(Unaudited)

 

 

Six months ended June 30,

 

Percent

 

2011

 

2010

 

change

OPERATING REVENUE:

 

 

 

 

 

Scheduled service revenue

$261,842

 

$217,886

 

20.2

Ancillary revenue:

 

 

 

 

 

Air-related charges

91,307

 

86,151

 

6.0

Third party products

15,280

 

12,094

 

26.3

Total ancillary revenue

106,587

 

98,245

 

8.5

 

 

 

 

 

 

Fixed fee contract revenue

21,492

 

21,170

 

1.5

Other revenue

3,759

 

686

 

448.0

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