Financial Data and Key Metrics Changes - As of the end of the first quarter, assets under construction and completed construction reached over $275 million, driven by construction activities in Phoenix, Dallas, and Denver [7] - Revenues increased by 133% year-over-year and 20% sequentially, attributed to the acquisition of the Camarillo Campus [7] - Operating expenses increased moderately, with a notable rise in fuel expenses and startup costs due to increased headcount and operations at the Camarillo Hangar Campus [9][11] - Cash flow from operating activities improved, with expectations to reach cash flow breakeven by the end of the year [8][9] Business Line Data and Key Metrics Changes - The financial results of the wholly owned subsidiary Sky Harbor Capital showed flat revenues in recent quarters, but a significant increase is expected in Q2, Q3, and Q4 as new campuses are leased [11] - Operating expenses rose due to onboarding personnel in anticipation of new campus operations [12] Market Data and Key Metrics Changes - The company is expanding its ground lease pipeline, with new leases in Seattle and Portland, indicating growth in the Pacific Northwest [13] - The average rent per square foot has increased to $35.75, which is 23% higher than previous estimates, reflecting strong demand and inflation in airport land [16][18] Company Strategy and Development Direction - The company is focusing on vertical integration in construction to manage costs, improve build quality, and speed up project timelines [21][23] - The strategy includes enhancing the service offering and building strong self-sufficient teams at each campus to improve operational efficiency [51][52] - The company aims to maintain its competitive advantage through effective site acquisition, construction, leasing, and operations integration [59][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for business aviation services, noting that macroeconomic uncertainties have not impacted their operations [88] - The company is prepared for potential construction slowdowns and is focused on maximizing the benefits of its operational scale [88] - Management acknowledged the concern of new competition but believes their established skills in site acquisition and integrated operations provide a sustainable competitive edge [59][65] Other Important Information - The company has approximately $97.5 million in cash, focusing on short-term investments for future construction [27] - The next debt issuance is being prepared, with expectations of raising between $150 million to $175 million [55][56] Q&A Session All Questions and Answers Question: Can you provide more color on your plans to raise debt this year? - The company is preparing for a financing of $150 million to $175 million for new projects, monitoring market conditions closely [55][56] Question: Could you speak to the prospect for increased competition over time from operators that would seek to replicate your model versus FBOs? - Management expressed concern about new competition but believes their lead is increasingly sustainable due to their unique skills in site acquisition and integrated operations [59][65] Question: What is the expected interest rate and timing on the expected term financing and or bond issuance in 2025? - The company anticipates a bond deal with an average yield of approximately 5.50% and is exploring bank facilities with proposals in the SOFR plus 200 area [96][98] Question: Are you seeing any impacts to lease term negotiations given the uncertainty in the markets? - Management indicated that there have been no significant impacts on lease term negotiations due to market uncertainties [89] Question: Can you provide details on Nashville occupancy? - Nashville occupancy is reported at 92%, with actual occupancy exceeding 100% in leased areas due to the nature of semi-private hangars [90][92]

Financial Data and Key Metrics Changes - Consolidated revenues increased by 133% year-over-year and 20% sequentially, driven by the acquisition of the Camarillo Campus [7] - Cash flow from operating activities improved, with expectations to reach cash flow breakeven by the end of the year [8][9] - Operating expenses increased moderately, with a notable rise in fuel expenses and startup costs related to new operations [9][10] Business Line Data and Key Metrics Changes - The financial results of Sky Harbor Capital, including Houston, Miami, and Nashville campuses, showed flat revenues in recent quarters, with expectations for significant increases in Q2, Q3, and Q4 as new campuses lease up [10][11] - The company is ramping up operations at three new campuses in Phoenix, Addison, and Denver, with leasing activities already underway [35][36] Market Data and Key Metrics Changes - The company is expanding its ground lease pipeline, with new leases in Seattle and Portland, indicating growth in the Pacific Northwest [12][31] - The average rent per square foot has increased significantly, with current rates at $35.75, which is 23% higher than previous estimates [15][16] Company Strategy and Development Direction - The company is focusing on vertical integration in construction to manage costs, improve build quality, and speed up project timelines [20][21] - There is a strong emphasis on site acquisition as a competitive advantage, with a pipeline of over 100 airports being targeted [58][60] - The company aims to differentiate itself through a bundled real estate and service offering, enhancing its competitive moat [25][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for business aviation services, noting that macroeconomic uncertainties have not impacted their operations [88][89] - The company is prepared to navigate potential construction slowdowns and remains focused on accelerating site acquisitions [82][88] Other Important Information - The company has approximately $97.5 million in cash, with a strategy focused on short-term U.S. Treasury investments [26] - There are ongoing preparations for a debt issuance, with potential amounts increasing from $150 million to $175 million [54][56] Q&A Session Summary Question: Plans to raise debt this year - The company is preparing for a financing of $150 million to $175 million for upcoming projects, monitoring market conditions closely [54][56] Question: Competition from operators replicating the model - Management expressed concern about new competition but believes their lead is sustainable due to unique site acquisition skills and integrated operations [58][60] Question: Expected interest rates and timing on financing - Interest rates for bond deals are projected around 5.50%, with bank facilities expected to be in the SOFR plus 200 area [97][99] Question: Nashville occupancy - Nashville occupancy is reported at 92%, with actual occupancy exceeding 100% due to the nature of semi-private hangars [90][92]