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]