Sky Harbour Group Corporation (SKYH) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, SKYH's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross." A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving av ...

Stonegate Capital Partners Updates Coverage on Sky Harbour Group Corporation (SKYH) Q4 2024 March 31, 2025 9:47 AM EDT | Source: Reportable, Inc. Dallas, Texas--(Newsfile Corp. - March 31, 2025) - Sky Harbour Group Corp. (NYSE: SKYH): Stonegate Capital Partners updates their coverage on Sky Harbour Group Corp. (NYSE: SKYH). Sky Harbour demonstrated robust growth and resilience throughout FY24, successfully navigating economic conditions such as inflation and elevated interest rates while significantly expan ...

Sky Harbour Group (SKYH) Q4 2024 Earnings Call March 28, 2025 03:56 AM ET Company Participants Francisco Gonzalez - Chief Financial OfficerMichael Schmitt - Chief Accounting OfficerTal Keinan - Chief Executive Officer Operator Ladies and gentlemen, good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sky Harbor twenty twenty four Year End Earnings Call and Webinar. All lines have been placed on mute to prevent any background noi ...

分组1 - Sky Harbour Group Corporation reported a quarterly loss of $0.10 per share, which was better than the Zacks Consensus Estimate of a loss of $0.11, and an improvement from a loss of $0.61 per share a year ago, resulting in an earnings surprise of 9.09% [1] - The company posted revenues of $4.64 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 7.13%, and showing significant growth from year-ago revenues of $2.24 million [2] - Sky Harbour Group shares have increased approximately 9.3% since the beginning of the year, contrasting with a decline of -2.9% in the S&P 500 [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $5.87 million, and for the current fiscal year, it is -$0.26 on revenues of $32.03 million [7] - The Aerospace - Defense Equipment industry, to which Sky Harbour Group belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Financial Data and Key Metrics Changes - In Q4, consolidated revenues increased by 13% sequentially over Q3, with full-year revenues doubling compared to 2023 [8] - Operating expenses in Q4 rose due to hiring for new campuses and non-cash accruals for ground lease expenses, which amounted to over $1.4 million [9][11] - The company expects to reach cash flow break-even on a consolidated basis in Q4 of this year [12] Business Line Data and Key Metrics Changes - The wholly-owned Scarborough Capital subsidiary's revenues were flat from Q3 to Q4, but a significant increase in revenues is expected in Q2, Q3, and Q4 of this year as new campuses ramp up [15] - Adjusted EBITDA is now being reported as a key business metric, providing insights into operating performance and debt service capabilities [19][20] Market Data and Key Metrics Changes - The company reported strong liquidity with approximately $127 million in cash and U.S. Treasury bills, excluding $32 million used for acquisitions [27] - The long bond trading has shown positive trends, with ongoing interest from bondholders [28] Company Strategy and Development Direction - The company aims to secure investment-grade ratings for existing bonds and expects future debt service coverage ratios to exceed previous forecasts [29] - The focus for 2025 is on acquiring the best revenue-producing airfields in the country, with a strong emphasis on quality and speed in construction [62][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential for significant acceleration in ground lease signings, with the pace of site acquisitions growing exponentially [70] - The company is not rushing to implement additional revenue streams, focusing instead on securing marquee airport sites and optimizing offerings for residents [74] Other Important Information - The company has begun the process of seeking investment-grade ratings for its existing bonds, which is expected to positively impact future financing [29][92] - The introduction of RapidBuilt is aimed at increasing the quality and speed of development, with potential opportunities to expand to clients outside of Sky Harbor in the future [95][96] Q&A Session Summary Question: Potential for 50 campuses in three to five years - Management indicated that if guidance is met, they would be halfway to this goal by the end of the year, with an exponential growth in site acquisition wins [70] Question: Expectations on price per square foot for new locations - Most new locations are expected to be greenfields, with additional revenue streams not prioritized at this time [75] Question: Campus development progress in 2026 - Management anticipates continuing at least the same pace as 2025, with a potential range of six or more airports [78] Question: Step-up in rents and existing tenant leases - Management noted that the step-up from the second lease to the third is expected to be less dramatic, with inflation being a guiding factor for future leases [80][82] Question: Funding gap for square footage in development - The company is deliberate in its capital raising plan, aiming to maintain a 12 to 18-month capital cushion ahead of deployment [86] Question: Update on raising $150 million - The company is in the process of a feasibility study and has received interest from institutional investors regarding potential debt financing [92] Question: Interest rate expectations for upcoming bond issuance - Current market conditions suggest new issuances may come at a slightly higher yield than existing bonds, with efforts to secure investment-grade ratings expected to positively influence this [102] Question: Impact of tariffs on procurement - Management confirmed that while there have been increases in steel prices due to tariffs, they had preemptively placed large orders to mitigate impacts [120]

Financial Performance - Full-year consolidated revenues increased by 95% in 2024 compared to 2023[4] - Full-year Obligated Group revenues increased by 51% in 2024 compared to 2023[4] - Net cash provided by operating activities reached positive $6.5 million in 2024, up from a net cash used of $1.4 million in 2023[4] Assets and Acquisitions - Constructed assets or in-construction exceeded $250 million at year-end 2024[4] - Cash and US Treasuries totaled $127 million as of December 31, 2024, after using $32 million for the Camarillo Acquisition[4] - The company completed the acquisition of CloudNine and Sky 805, with occupancy currently at 68%[8] Future Plans and Developments - The company expects to reach run rate breakeven operating cash flow/adjusted EBITDA by year-end 2025, driven by new campuses opening in Phoenix, Denver, and Addison[4] - A new ground lease was executed at Seattle's King County International Airport, with approximately 90,000 rentable square feet[8] - The company plans to support phase 1 development projects at approximately 6-7 new airport campuses, aiming for around 800,000 additional rentable square feet[11] Financing Activities - The company executed a PIPE issuance of 7,911,580 shares for net proceeds of approximately $75 million at a net purchase price of $9.50 per share[10]

Business Aviation Market Trends - The U.S. business aviation fleet's physical footprint has increased by nearly 36 million square feet over the past 14 years, with a 61% rise in cumulative square footage from 2010 to 2023[27]. - Demand for hangar space is high due to new aircraft deliveries exceeding retirements, with a forecast of 8,500 new business jet deliveries valued at over $285 billion expected between 2025 and 2034[27]. - The current order backlog for new business aviation aircraft is over $52 billion as of December 31, 2024, reflecting a 6% increase from the previous year[27]. - The cumulative square footage of the U.S. business aircraft fleet increased by 61% from 2010 to 2023, indicating a growing demand for hangar space[200]. - A forecast predicts up to 8,500 new business jet deliveries worth over $285 billion between 2025 and 2034, with a significant portion being larger private jets[200]. Company Operations and Strategy - The company’s home basing hangar campuses are designed to provide exclusive or semi-exclusive access, enhancing security and convenience for tenants[32]. - The occupancy rate across the company's properties in operation is 92.6% as of December 31, 2024, with some facilities achieving 100% occupancy[38]. - The company is developing multiple projects with a total estimated construction cost ranging from $619 million to $686 million, aiming to add 2,160,491 rentable square feet[40]. - The company expects to realize economies of scale through a standardized prototype hangar design, which will streamline construction and reduce costs[30]. - The properties are strategically located at major U.S. airports, with ground leases extending into the 2070s and 2080s, ensuring long-term operational stability[35]. - The company aims to achieve economic occupancy greater than 100% at most hangar campuses, maximizing rental charges and ramp space utilization[44]. - The company plans to diversify its tenant portfolio across various geographies and types, reducing reliance on any single tenant[45]. - The company aims to capitalize on existing hangar supply constraints at major U.S. airports by targeting high-end tenants in markets with a shortage of hangar space[202]. Financial Performance and Risks - The company faces competition from national, regional, and local FBOs, which may have greater financial resources and lower cost structures[46]. - The company has a substantial amount of outstanding indebtedness, primarily secured under the Series 2021 Bonds, which may expose it to default risks[74]. - The company faces risks related to economic downturns, which could negatively impact its ability to lease vacant sites and collect rental revenue[82]. - The company’s growth will depend on its access to external sources of capital, which may be limited by various market conditions[79]. - Tenant credit risk is significant, as certain tenants contribute a material percentage of the company's revenues, and defaults could lead to substantial cash flow reductions[107]. - The company may face difficulties in collecting lease payments if tenants default, which could materially impact its financial condition[108]. - The company does not intend to pay cash dividends in the foreseeable future, opting to retain earnings for business development and expansion[177]. Regulatory and Compliance Issues - Compliance with FAA regulations and environmental laws is critical, with no current material negative impacts expected from compliance efforts[50]. - Regulatory compliance costs could increase due to extensive governmental regulations, potentially affecting overall revenue[119]. - The company is subject to health and safety regulations, and failures in compliance could result in significant liabilities and reputational damage[126]. - The company is exposed to potential liabilities under various environmental statutes, which could adversely affect its business and operations[132]. - Climate change risks may lead to increased operational costs and impact the demand for hangar space, particularly in regions prone to severe weather events[134]. - Compliance with new climate-related regulations could result in increased operating costs that may not be passed on to tenants, affecting their financial condition[135]. Capital and Investment Activities - The company anticipates issuing private activity bonds for future projects, and changes in tax-exemption status could increase debt costs[122]. - The cumulative business plan for 20 airport sites is estimated to cost approximately $1.2 billion, with 65% to 75% expected from private activity bonds[223]. - Each future airport campus is anticipated to cost approximately $60 million, with 65% to 75% funded through additional private activity bonds or other indebtedness[222]. - The company has previously funded over $200 million for two phases at initial airport locations and has the ability to include up to $50 million in new projects[221]. - In September 2024, the company entered into a Securities Purchase Agreement to sell an aggregate of 3,352,106 shares of Class A Common Stock for approximately $31.8 million[205]. - In October 2024, the company issued 3,955,790 First Closing 2024 PIPE Shares for an aggregate purchase price of $37.6 million[207]. - By December 2024, the total shares issued and sold amounted to 7,911,580 for approximately $75.2 million[208]. Employee and Community Engagement - The company has implemented the Sky Harbour Academy training program to recruit and train individuals from disadvantaged communities for careers in aviation[61]. - As of December 31, 2024, the company had 84 employees, with no collective bargaining agreements in place[58]. Cybersecurity and Technology Risks - Cybersecurity risks pose a significant threat to the company's operations, potentially leading to disruptions and financial losses[139]. - The company is continuously working to enhance its cybersecurity measures, but risks remain due to reliance on third-party vendors and employee-related threats[141]. Market and Stock Performance - The market price of Class A Common Stock has experienced volatility, trading between $2.50 and $43.41 since the closing of the Yellowstone Transaction[168]. - Trading volume of Class A Common Stock has varied significantly, with a low of 4,200 shares and a high of 1,524,200 shares on different trading days[168]. - The dual class structure may impact the market price of Class A Common Stock and could exclude the company from certain indices, affecting valuations[173]. - As of December 31, 2024, there were 15,798,155 outstanding Warrants to purchase shares of Class A Common Stock at an exercise price of $11.50 per share, which may lead to dilution for existing stockholders[175]. - There were 42,046,356 outstanding Sky Common Units that can be redeemed for shares of Class A Common Stock on a one-for-one basis, potentially affecting the market price of Class A Common Stock[176].

Core Insights - Stonegate Capital Partners has initiated coverage on Sky Harbour Group Corporation (NYSE: SKYH), highlighting the company's resilience and growth during FY24 [1] - Sky Harbour successfully navigated economic challenges such as inflation and rising interest rates while focusing on expanding its aviation infrastructure portfolio [1] - The company achieved significant milestones, including the completion of major construction projects, securing new leases, and maintaining high occupancy rates [1] Financial Performance - Lease revenue increased by 64% year-over-year, indicating strong financial performance [5] - The company expects to begin Phase-1 development projects at 6-7 new airport campuses, signaling future growth opportunities [5] - Sky Harbour anticipates securing seven new ground leases by the end of FY25, further enhancing its operational capacity [5]

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.I have been covering Sky Harbour Group Corporation (NYSE: SKYH ) since May 2023. I mark it as an investment opportunity to capitalize on the ultrarich who need hangar spaces to store their private jets, which is precisely the businessDhierin runs t ...

Sky Harbour Group Corporation (NYSE:SKYH) Q3 2024 Results Conference Call November 12, 2024 5:00 PM ET Company Participants Francisco Gonzalez - Chief Financial Officer Michael Schmitt - Chief Accounting Officer Tal Keinan - Chairman & Chief Executive Officer Will Whitesell - Chief Operating Officer Tim Herr - Vice President Finance, Treasurer Operator Good afternoon. My name is Sarah, and I'll be your conference operator today. At this time, I would like to welcome everyone to Sky Harbour 2024 Third Quarte ...