Allegiant Travel Company filed SEC Form 8-K: Material Impairments
$ALGT
Air Freight/Delivery Services
Consumer Discretionary
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 28, 2025
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Registrant’s telephone number, including area code: (702 ) 851-7300
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Common stock, par value $0.001 | ALGT | NASDAQ Stock Market | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as in Rule 405 of the Securities Act of 1933 (Section 17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 17 CFR §240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 Financial Information
Item 2.06 Material Impairments.
As of January 28, 2025, and after a periodic review of the value of its assets, management of Allegiant Travel Company (“the Company”) concluded that the carrying value of Sunseeker Resort ("the Resort"), including the Aileron golf course and related real estate, is no longer fully recoverable based on a detailed analysis of the estimated future cash flows and an independent third party valuation of the Resort and these other assets. As a result, the Company will record a non-cash impairment charge in the estimated amount of $322 million during the fourth quarter of fiscal year 2024.
The Company expects this impairment charge to be recorded as a special charge within the fourth quarter 2024 financial statements. This non-cash accounting charge will not impact the Company’s cash flow, nor will it affect the Company’s plans to continue operating the Resort.
Within the coming weeks, the Company will have prepaid the outstanding debt, in its entirety, secured by the Resort.
The repayment of debt and the impairment charge are part of the Company's ongoing process of exploring strategic alternatives for the Resort, including a potential sale or stake sale.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Allegiant Travel Company has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: January 31, 2025 | ALLEGIANT TRAVEL COMPANY | ||||||||||
| By: | /s/ Robert Neal | ||||||||||
| Name: | Robert Neal | ||||||||||
| Title: | Chief Financial Officer | ||||||||||