SkyHarbour(US:SKYH)2025-05-13 22:02Financial 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]