WEST HARRISON, N.Y.–(BUSINESS WIRE)–Sky Harbour Group Corporation (NYSE American: SKYH, SKYH WS) (“SHG” or the “Company”), an aviation infrastructure company building the first nationwide network of Home-Basing Solutions for business aircraft, announced the release of its 2023 1st quarter Financial Results in Form 10-Q. Please see the following link to access the filing:
Highlights of the results and other recent events are:
- Q1 2023 Revenues increased 179% as compared to Q1 2022 and 82% compared to Q4 2022
- S,G&A expenses decreased 23% compared to Q1 2022
- Strong liquidity and capital resources as of March 31, 2023, including cash, restricted cash, and US Treasury investments of over $165 million
- Closed the Project Modification and recapitalization of wholly owned Sky Harbour Capital, with a significant increase in the already robust projected debt service coverage of the Series 2021 Bonds1
- New executed hangar tenant lease rents reach record mid-$40s per square foot
- Houston, Nashville and Miami facilities are 94%, 64% and 67% leased, respectively, as of May 12, 2023. Full occupancy projected to be reached by end of Q3 2023.
On May 12, 2023, the Company exercised its option to acquire a controlling stake in Overflow LP, owner of Rapidbuilt Inc. (“RapidBuilt”), a Texas based manufacturer of pre-engineered metal buildings (PEMB). The Company previously executed a strategic supply agreement with RapidBuilt in July 2022 to guarantee production capacity and achieve optimum manufacturing margin for its hangar construction projects. With the closing of this acquisition, the Company believes that the vertical integration will enable it to deliver hangar buildings to each of the Company’s development sites in shorter timeframes, reducing the overall construction cost and duration of each of its projects. The Company paid nominal consideration for its initial 51% equity stake and agreed to assume its senior loan obligations of approximately $10 million. This acquisition is intended to be accretive to SKYH through immediate projected construction and operational savings. The 8-K filing related to this closing may be found on the link below:
Tal Keinan, Chairman and Chief Executive Officer, commented on the Q1 results and other recent events: “After operating its pilot campus in Houston for more than a year, Sky Harbour quickly grew to conducting full flight operations on three campuses, Nashville having opened in November 2022 and Miami in February 2023. As leasing nears completion, tenant feedback has been outstanding. Sky Harbour has taken a meaningful step forward in establishing its Home Basing Solution as the solution of choice for the country’s top aircraft owners.”
“The company’s attention is now increasingly focused on expanding Sky Harbour’s national footprint, continuing to refine Sky Harbour’s already unmatched service offering, and maximizing the economies of scale afforded by the Sky Harbour model.”
“As part of this effort, we are happy to welcome the RapidBuilt team into the Sky Harbour family. Vertical integration will produce considerable development cost advantages. More importantly, RapidBuilt brings the best engineering talent we have ever encountered in the Aviation PEMB and hangar-door spaces into the Sky Harbour prototyping process, yielding a constantly improving hangar, with outstanding quality consistency and a more efficient construction cycle.”
Sky Harbour campuses are open and operating at Houston’s Sugar Land Regional Airport (“SGR”), Nashville International Airport (“BNA”) and Miami Opa-Locka Executive Airport (“OPF”). Sky Harbour is developing new campuses at Denver Centennial Airport (“APA”) and Phoenix Deer Valley Airport (“DVT”), both of which are in construction, and Dallas Addison Airport (“ADS”), which is in permitting.
About Sky Harbour Group Corporation
Sky Harbour Group Corporation is an aviation infrastructure company developing the first nationwide network of Home-Basing Solutions for business aircraft. The company develops, leases and manages general aviation hangars across the United States. Sky Harbour’s Home-Basing Solution aims to provide private and corporate customers with the best physical infrastructure in business aviation, coupled with dedicated service tailored to based aircraft, offering the shortest time to wheels-up in business aviation. To learn more, visit www.skyharbour.group.
Forward Looking Statements
Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, including statements about the financial condition, results of operations, earnings outlook and prospects of SHG may include statements for the period following the consummation of the business combination. When used in this press release, the words “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations of the management of SHG as applicable and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in the public filings made or to be made with the SEC by SHG, including the filings described above, regarding the following: expectations regarding SHG’s strategies and future financial performance, including its future business plans, expansion plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and SHG’s ability to invest in growth initiatives; SHG’s ability to scale and build the hangars currently under development or planned in a timely and cost-effective manner; the implementation, market acceptance and success of SHG’s business model and growth strategy; the success or profitability of SHG’s hangar facilities; SHG’s future capital requirements and sources and uses of cash; SHG’s ability to obtain funding for its operations and future growth; developments and projections relating to SHG’s competitors and industry; the ability to recognize the anticipated benefits of the business combination; geopolitical risk and changes in applicable laws or regulations; the possibility that SHG may be adversely affected by other economic, business, and/or competitive factors; operational risk; risk that the COVID-19 pandemic, and local, state, and federal responses to addressing the pandemic may have an adverse effect on SHG’s business operations, as well as SHG’s financial condition and results of operations. Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of SHG prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. SHG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
1 Please see press release dated March 28, 2023 and related SEC filing.
Attn: Francisco X. Gonzalez, CFO