Wheels Up Experience Inc. (NYSE:UP) Q3 2023 Earnings Conference Call November 9, 2023 10:00 AM ET Company Participants Keith Ferguson - Investor Relations George Mattson - Chief Executive Officer Todd Smith - Chief Financial Officer & Interim Chief Executive Officer Conference Call Participants Operator Welcome to Wheels Up Third Quarter 2023 Earnings Conference Webcast. It is my pleasure to introduce Keith Ferguson. Mr. Ferguson, you may begin the conference. Keith Ferguson Thank you. This morning we annou ...

WHEELS UP Third quarter 2023 earnings November 9, 2023 Disclaimer Cautionary statement regarding forward-looking statements This presentation contains certain "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q ________________ [Mark One] þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number: 001-04321 WHEELS UP EXPERIENCE INC. (Exact Name of Registrant as Specifi ...

Wheels Up Experience Inc. (NYSE:UP) Q1 2023 Earnings Conference Call May 9, 2023 10:00 AM ET Company Participants Keith Ferguson – Investor Relations Ravi Thakran – Executive Chairman Kenny Dichter – Founder Todd Smith – Chief Financial Officer and Interim Chief Executive Officer Conference Call Participants Sheila Kahyaoglu – Jefferies Josiah Choy – Baird Marvin Fong – BTIG Operator Ladies and gentlemen, welcome to the Wheels Up First Quarter 2023 Earnings Call. My name is Glen and I’ll be the operator for ...

| --- | --- | --- | --- | |-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | Disclaimer Cautionary statement regarding forward-looking statements This presentation contains certain "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to known and unknown risks, uncertainties, ass ...

PART I. Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Wheels Up reported Q1 2023 revenue of $351.8 million (up 8%) and a net loss of $100.9 million, with cash decreasing to $363.2 million [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $1.71 billion due to reduced cash, while liabilities fell to $1.55 billion and equity declined to $163.2 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | March 31, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $363,177 | $585,881 | | Total current assets | $603,129 | $819,619 | | Total assets | $1,710,463 | $1,923,225 | | **Liabilities & Equity** | | | | Deferred revenue, current | $975,735 | $1,075,133 | | Total current liabilities | $1,231,648 | $1,344,220 | | Total liabilities | $1,547,276 | $1,671,305 | | Total equity | $163,187 | $251,920 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2023 revenue grew 8.0% to $351.8 million, but increased costs led to an operating loss of $96.7 million and a net loss of $100.9 million Q1 2023 vs Q1 2022 Statement of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Revenue | $351,812 | $325,635 | | Cost of revenue | $353,791 | $332,758 | | Loss from operations | $(96,650) | $(92,718) | | Net loss attributable to Wheels Up | $(100,866) | $(88,653) | | Net loss per share (Basic and diluted) | $(0.40) | $(0.36) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to $202.5 million, with a net cash decrease of $220.4 million for the quarter Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(202,482) | $(121,216) | | Net cash used in investing activities | $(11,035) | $(119,552) | | Net cash used in financing activities | $(6,752) | $(6,107) | | **Net decrease in cash** | **$(220,355)** | **$(246,875)** | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue by service, $270 million Equipment Notes financing, and a March 2023 restructuring plan with $10.5 million in charges Disaggregation of Revenue (in thousands) | Service Type | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Flights, net | $231,762 | $236,363 | | Aircraft management | $63,694 | $60,506 | | Memberships | $21,680 | $20,647 | | Other | $34,676 | $8,119 | | **Total** | **$351,812** | **$325,635** | - In October 2022, the company issued **$270.0 million** in Equipment Notes with a **12%** fixed interest rate, secured by **134** of the company's owned aircraft. The notes include a covenant to maintain minimum liquidity of **$125 million**[63](index=63&type=chunk)[64](index=64&type=chunk) - In March 2023, the company announced a restructuring plan involving headcount reductions. This resulted in **$10.5 million** of expenses recorded in Q1 2023, with total charges estimated at approximately **$17.7 million**[125](index=125&type=chunk)[126](index=126&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 revenue growth, operational efficiency initiatives, and a goal of positive Adjusted EBITDA in 2024 - The company is implementing key initiatives for efficiency and cost reduction, including member program changes, FAA certificate consolidation, strategic review, and a March 2023 restructuring plan to reduce headcount[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) Key Operating Metrics | Metric | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Active Members | 12,285 | 12,424 | (1)% | | Live Flight Legs | 15,389 | 17,626 | (13)% | | Flight revenue per Live Flight Leg | $15,060 | $13,410 | 12% | Non-GAAP Reconciliations (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net loss | $(100,866) | $(89,040) | | **Adjusted EBITDA** | **$(48,915)** | **$(49,428)** | | Gross profit (loss) | $(16,424) | $(21,351) | | **Adjusted Contribution** | **$6,355** | **$(2,691)** | | **Adjusted Contribution Margin** | **1.8%** | **(0.8)%** | - The company's principal sources of liquidity are financing activities and cash from operations, primarily from the sale of Prepaid Blocks. As of March 31, 2023, cash and cash equivalents were **$363.2 million**[203](index=203&type=chunk)[204](index=204&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to principal market risks (interest rates, aircraft fuel, foreign currency) since the 2022 Form 10-K - There has been no material change to the market risk disclosures from the company's 2022 Form 10-K. Key risks remain related to interest rates, aircraft fuel, and foreign currency exchange[215](index=215&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of March 31, 2023, due to ongoing remediation of material weaknesses - The CEO and CFO concluded that disclosure controls and procedures were not effective as of March 31, 2023[218](index=218&type=chunk) - The ineffectiveness is due to ongoing remediation of material weaknesses in internal control over financial reporting first described in the 2022 Form 10-K[218](index=218&type=chunk) - Remediation plans are underway, including implementing preventative controls for segregation of duties, improving journal entry controls, ensuring IT general controls are operating effectively, and formalizing accounting policies[220](index=220&type=chunk)[221](index=221&type=chunk) PART II. Other Information [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company does not expect pending legal proceedings to materially affect its financial condition, results of operations, or cash flows - The company does not expect that the ultimate resolution of any pending legal actions will have a material effect on its consolidated results of operations, financial position, or cash flows[225](index=225&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) No material changes to significant risk factors previously disclosed in the 2022 Form 10-K have occurred - No material changes to the significant risk factors disclosed in the 2022 Form 10-K have occurred[226](index=226&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds occurred during the period - There were no unregistered sales of equity securities during the period[227](index=227&type=chunk) [Defaults Upon Senior Securities](index=51&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the period - There were no defaults upon senior securities during the period[228](index=228&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - This section is not applicable to the company[229](index=229&type=chunk) [Other Information](index=51&type=section&id=Item%205.%20Other%20Information) No other material information to report for the period - There is no other information to report for the period[230](index=230&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report, including CEO and CFO certifications

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-K ________________ [Mark One] ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number: 001-04321 WHEELS UP EXPERIENCE INC. (Exact Name of Registrant as Specified i ...

Wheels Up Experience Inc. (NYSE:UP) Q4 2022 Earnings Call Transcript March 9, 2023 10:00 AM ET Company Participants Keith Ferguson - Investor Relations Kenny Dichter - Chairman & Chief Executive Officer Todd Smith - Chief Financial Officer Conference Call Participants Ellen Page - Jefferies Michael Bellisario - Baird Marvin Fong - BTIG Operator Hello, everyone. Welcome to Wheels Up’s 4Q 2022 Earnings Conference Call. My name is Charlie and I'll be coordinating the call today. All lines have been placed on l ...

| --- | --- | --- | --- | |-------|-------|-------|-------| | | | | | | | | | | | | | | | Disclaimer Cautionary statement regarding forward-looking statements This presentation contains certain "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to known and unknown risks, uncertainties, assumptions a ...

| --- | --- | --- | |------------------------------------------------------|-------|-------| | | | | | | | | | | | | | Raymond James 2022 Technology Investors Conference | | | | New York, NY December 7, 2022 | | | Disclaimer Cautionary statement regarding forward-looking statements This presentation contains certain "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on ...