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 noncash accrual of ground lease expenses, which amounted to over $1.4 million [9][10] - The company expects to reach cash flow breakeven on a consolidated basis in Q4 of this year [11] Business Line Data and Key Metrics Changes - Assets under construction and completed construction reached over $250 million by year-end, driven by activities in Phoenix, Dallas, and Denver [8] - Revenues from the wholly owned Sky Harbour Capital subsidiary were flat from Q3 to Q4, but a significant increase in revenues is expected in Q2, Q3, and Q4 of this year as campuses are leased up [14][15] 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 the acquisition of CloudNine and Skyro 5 [27] - The long bond trading has rallied over the past year, and the company is in discussions with rating agencies to secure investment-grade ratings for existing bonds [28][29] Company Strategy and Development Direction - The company aims to accelerate the pace of ground lease signings, with a potential to exceed 50 campuses in the next 3 to 5 years [72][73] - Focus on site acquisition, development, leasing, and operations is increasingly integrated, with a strong emphasis on quality and speed in construction [45][65] - The company is exploring additional revenue streams but prioritizes establishing a strong brand and operational excellence [66][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential, citing a robust pipeline of opportunities and the ability to capitalize on past investments [73][80] - The company anticipates that inflation at airports will outstrip CPI significantly, impacting future lease rates positively [90] - Management is cautious about macroeconomic factors but believes they are well-positioned to navigate challenges [140] Other Important Information - The introduction of adjusted EBITDA as a key performance metric aims to provide a clearer view of operating performance [17][19] - The company is focused on maintaining a strong cash management strategy while preparing for future debt financing [29][30] Q&A Session Summary Question: Potential for 50 campuses in 3 to 5 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 acquisitions expected [72][73] Question: Expectations on price per square foot for new leases - Management clarified that additional revenue streams are not a priority at the moment, focusing instead on securing marquee airport sites [77][78] Question: Campus development progress in 2026 - Management did not provide specific guidance for 2026 but suggested that development would continue at least at the pace of 2025 [82] Question: Step-up in rents and market rates - Management noted that while significant step-ups in rents are expected, the third lease may not see as dramatic an increase as the second [85][88] Question: Funding gap for square footage in development - Management emphasized a deliberate capital raising plan, with a focus on maintaining liquidity and exploring partnerships with real estate infrastructure funds [92][96] Question: Update on raising $150 million - Management reported positive interest from institutional investors and is conducting feasibility studies for upcoming bond financing [99][101] Question: Expansion opportunities for RapidBuilt - Management confirmed interest from third parties for manufacturing opportunities but emphasized that the primary focus remains on Sky Harbour's needs [106][110] Question: Impact of tariffs on procurement - Management acknowledged recent hikes in steel prices due to tariffs but noted that preemptive measures were taken to mitigate impacts [140]