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]

Group 1 - The article highlights Sky Harbour Group Corporation (NYSE: SKYH) as an investment opportunity targeting the ultrarich who require hangar spaces for their private jets [1] - The investing group, The Aerospace Forum, focuses on identifying investment opportunities within the aerospace, defense, and airline sectors, emphasizing significant growth prospects in these industries [1] - The analysis provided is data-driven, aiming to contextualize industry developments and their potential impact on investment strategies [1]

Financial Data and Key Metrics Changes - The company reported a significant increase in revenues due to the San Jose campus opening in Q2 and optimization of other campuses, with expectations for continued revenue growth even without new campus openings [7][10] - Operating expenses increased primarily due to higher ground lease payments in San Jose and the recognition of operating expenses ahead of cash payments for new ground leases [8][9] - The company aims to achieve breakeven on a consolidated basis by the same time next year, supported by the opening of three campuses and leasing activities [10][12] Business Line Data and Key Metrics Changes - Sky Harbour Capital, which includes all campuses except San Jose, showed positive operating results and cash flow, with incremental revenues from lease renewals at significantly higher rates [11][12] - The company continues to optimize its existing campuses, achieving occupancy rates above 100% and higher rental rates on renewals [11][12] Market Data and Key Metrics Changes - The company is revising its guidance to include an additional 9 airports by the end of 2025, bringing the total to 23 airports [23][49] - The demand for hangar space remains strong, particularly in markets like Miami, where the waiting list for aircraft is significantly higher than current occupancy [100] Company Strategy and Development Direction - The company is focused on site acquisition, development of existing airports, and enhancing operational efficiency through vertical integration and standardized hangar designs [40][45][52] - The strategy includes a shift towards semi-private hangars to accommodate a broader market, which has proven to be more profitable than fully private options [72][76] - The company is also looking to enhance services for pilots and maintenance professionals, aiming to provide a comprehensive experience for aircraft owners [55][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic cycles, emphasizing that the demand for hangar space is driven by the growing fleet of aircraft [66] - The company anticipates continued hangar price inflation, which is expected to outpace construction cost inflation, supporting revenue growth [100][102] Other Important Information - The company has a strong cash position, with $110 million in cash and investments, which will support upcoming construction projects and operational needs [27][28] - Management is optimistic about achieving investment-grade ratings for their bonds as construction projects are completed and cash flows stabilize [30][32] Q&A Session All Questions and Answers Question: Do you plan on contributing to Sky Harbour Capital again to help close the funding gap for the remaining construction? - The company has sufficient cash at the trustee to complete the remaining projects and is more than halfway through its equity raises for the 20 airports [62][63] Question: How do you foresee the Trump administration's policies will affect your business? - The company views itself as relatively insensitive to economic cycles, with potential benefits from policies like reinstating bonus depreciation for aircraft [66][68] Question: Can you talk about the shift to the semi-private hangars versus the original thesis of fully private? - The semi-private model has proven to be more profitable, with significant demand and occupancy exceeding 100% [72][76] Question: How is visibility on pricing looking for the 3 new fields expected to commence operations in Q1 of 2025? - The new fields are expected to compare favorably to existing locations, with provisions for significant semi-private occupancy to enhance total revenue [77][78] Question: What is the average weighted-average lease term on your hangar tenant leases? - The weighted-average lease term is 3.2 years, with a mix of shorter and longer-term leases to manage risk and maximize revenue [81][82] Question: Can you please walk us through the BSCR calculation and where you are as of the third quarter on a run rate basis? - The company expects to achieve more than 3x debt service coverage once stabilized, with current run rates being too early to assess accurately [97][98]

Company Overview - Sky Harbour Group Corporation specializes in providing home basing solutions for private jets, engaging in ground leases at various airports in the United States and constructing hangars using pre-engineered metal buildings [2][3] - The company has a 51% ownership in RapidBuilt, which supplies the pre-engineered buildings for hangars [2] Financial Performance - In the second quarter, Sky Harbour Group's revenues more than doubled to $3.6 million, driven by higher occupancy rates and operational hangars, particularly in San Jose [3] - Operating expenses increased by $2.6 million, primarily due to more ground leases signed and associated costs, with a headcount increase contributing to higher costs as well [3] - Despite the operating loss widening, the company reported positive net income due to unrealized gains on warrants and interest income [3] Growth Potential - The company has added one hangar to its operational portfolio, maintaining a stable occupancy rate of 93.7%, with plans for six more hangars totaling over 260,000 square feet in development [4] - Revenue growth is anticipated as lease terms improve, allowing for higher prices per square foot upon renewal [4] Valuation and Risks - The company aims for $22.9 million in EBITDA for 2024, with the latest quarterly EBITDA reported at $4.99 million, suggesting a potential run rate of $20 million annually [5] - Valuation using the EV/EBITDA method indicates a modest upside of around 3%, with potential for 18% upside if EBITDA reaches $99 million [5][6] - Dilution risk exists, with a potential 70% pressure on shareholders if fully diluted, which could limit upside potential [6]

Financial Data and Key Metrics Changes - The company reported an increase in revenues for Q2 2024, driven by new tenant leases and renewals at higher rental rates [4][5] - Operating expenses rose due to ground lease payments and non-cash employee stock-based compensation, totaling approximately $1.1 million each [6][10] - The company achieved positive cash flow from operations and expects this trend to continue as new campuses open [4][10] Business Line Data and Key Metrics Changes - The San Jose International Airport campus was approximately 58% leased during Q2, with expectations for further revenue increases as occupancy rises [5] - The company anticipates significant revenue growth from lease renewals, with an average markup of over 20% on renewed leases [17][29] Market Data and Key Metrics Changes - The company is focusing on high-demand markets, particularly in New York, where there is a significant deficit of hangar space [47] - The company plans to increase its ground leases from four to eight by the end of 2025, expanding its market presence [21] Company Strategy and Development Direction - The company is pursuing an accelerated growth plan with 33 projects planned between 2025 and 2026 [9] - The focus is on maximizing economies of scale and standardizing construction processes to enhance efficiency [21][39] - The company aims to achieve investment-grade ratings by increasing cash flow generation from new campuses [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the profitability of the San Jose lease and highlighted the potential for revenue growth through lease renewals [29] - The company is aware of the competitive landscape with FBOs and emphasizes its unique offering of homebasing solutions [30][32] - Management is optimistic about the future, citing strong demand and the potential for additional revenue streams from services [25][48] Other Important Information - The company has $150 million in cash and treasury bills, allowing for strong liquidity and cash management strategies [10] - The company is exploring additional revenue streams, including partnerships for aircraft detailing services [49][50] Q&A Session Summary Question: Thoughts on broadening the float to mitigate potential selling from Boston Omaha and Altai - The company plans to address the low float through organized equity offerings over time, aiming to increase trading float [26][27] Question: Is the SJC lease profitable today? - The San Jose lease is profitable, with significant upside potential and a strategy to stagger lease terms for revenue growth [29] Question: How does Sky Harbour plan to compete with FBOs offering fuel discounts? - Sky Harbour provides fuel and focuses on base tenants, differentiating itself from transient-focused FBOs [30][32] Question: How will raising an additional $150 million be possible? - The company intends to protect existing bondholders by issuing new debt outside the current obligated group [33][34] Question: Should we expect less equity capital needs going forward? - The company maintains a target of 70/30 debt-to-equity split, with potential for higher leverage in the future [35] Question: Do ground leases have deadlines for improvements? - Typically, there are no strict deadlines for ground leases, allowing flexibility in development timelines [41] Question: How does the company view the trade-off between short leases and revenue visibility? - The company staggers lease terms to balance revenue visibility and the potential for higher renewals [43][45] Question: Rationale for New York and Connecticut area airports? - The company targets high-revenue locations, particularly in New York, where there is a significant demand for hangar space [46][47] Question: Potential for ancillary revenue from airport services? - The company is exploring various ancillary revenue opportunities, including partnerships for services like aircraft detailing [48][50]

Sky Harbour Group Corporation (NYSE:SKYH) Q1 2024 Results Conference Call May 14, 2024 5:00 PM ET Company Participants Francisco Gonzalez - Chief Financial Officer Tal Keinan - CEO and Chairman Will Whitesell - COO Operator Good afternoon. My name is John, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Sky Harbour 2024 First Quarter Earnings Call and Webinar. All lines have been placed on mute to prevent any background noise. After the speaker's remar ...