Sky Harbour Announces Record Q2 Results, Receives Debt Proposals for $150mm, and Updates on Business Activities and Objectives
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001823587/000143774924026368/ysac20240630_10q.htm
MSRB/EMMA:
https://emma.msrb.org/P21833646-P21405328-P21847437.pdf
Financial Highlights include:
- 2024 Q2 Consolidated Revenues increased 109% as compared to Q2 2023 and 50% as compared to Q1 2024
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Net Cash Used in Operating Activities improved to$1.0 million in Q2 2024, from$4.4 million in Q1 2024 and$1.2 million in Q2 2023 -
We are reiterating our guidance of reaching positive operating cash flow on a consolidated basis by the Fall of 2025, driven by the cash flows expected to be generated from the three campuses opening in Q1 2025 in
Denver ,Phoenix andAddison (Dallas area) -
At
Sky Harbour Capital (Obligated Group ), positive cash flow provided by operating activities reached$1.1 million in Q2, a significant improvement from($0.3) million cash flow used in operating activities during Q2 2023 -
Strong liquidity and capital resources as of
June 30 th, 2024, with consolidated cash and US Treasuries totaling$149 million
Update on Site Acquisition
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Salt Lake City International Airport (SLC) is Sky Harbour’s fourteenth campus announcement. The SLC campus joinsSky Harbour campuses now operating at Houston’sSugar Land Regional Airport (SGR),Nashville International Airport (BNA),Miami Opa-Locka Executive Airport (OPF), and San Jose’sMineta International Airport (SJC); campuses in development at Denver’sCentennial Airport (APA),Phoenix Deer Valley Airport (DVT), Dallas’sAddison Airport (ADS),Chicago Executive Airport (PWK), Sky Harbour’s first threeNew-York -service airports -Bradley International Airport (BDL),Hudson Valley Regional Airport (POU), andStewart International Airport (SWF),Orlando Executive Airport (ORL),Dulles International Airport (IAD); and additional campuses soon to be announced. -
In the second quarter,
Sky Harbour also succeeded in expanding its footprint at campuses currently in development, thereby increasing the expected indoor rentable square footage of the portfolio to an aggregate projected new total of 2.4 million square feet. -
Having met 2024 guidance of four new ground leases, and with additional announcements pending,
Sky Harbour is raising its guidance from six additional ground leases byDecember 2025 to eight additional ground leases.
Update on Construction and Development Activities
- As reported on our monthly activity reports filed with MSRB/EMMA and available on our website, APA, DVT and ADS are on track for delivery and commencement of operations by Q1 2025. Please see the following link for easy access to the last monthly construction report: https://emma.msrb.org/P21828135-P21401259-P21842974.pdf
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Beyond these three projects, there are ten airport phases now in development. In anticipation of the steep ramp-up in development, the
Sky Harbour Development and Construction team was expanded as detailed below.
Update on Leasing Activities
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The weighted average revenue run rate as of today at Sky Harbour’s four operating campuses is approximately
$39 per rentable square foot, exceeding original portfolio projections of$29.50 per sq feet by approximately 32%. - Lease renewals and replacements in the past twelve months have exhibited a weighted average step-up in total revenue of approximately 20%. We believe this supports Sky Harbour’s thesis on business aviation inflation rates, particularly at the highest end of the business aviation market.
Expansion of Management Team
New Loan/Bond Issuance Plans
Sky Harbour CFO,
Sidoti Investor Conference Invitation
We will present and host one-on-one meetings with investors at the
About
Forward Looking Statements
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, including statements about the financial condition, results of operations, earnings outlook and prospects of SHG, including statements regarding our expectations for future results, our expectations for future ground leases, our expectations on future construction and development activities and lease renewals, and our plans for future financings. When used in this press release, the words “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations of the management of
Key Performance Indicators
We use a number of metrics, including weighted average revenue run rate, to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other issuers. These metrics are estimated operating metrics and not projections, nor actual financial results, and are not indicative of current or future performance.
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Sky Harbour Investor Relations: investors@skyharbour.group Attn:
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