Volato Begins Turnaround with Positive Third
Quarter Momentum
Achieved Positive Adjusted EBITDA of $3.2
million on Revenue of $40.3 million as Initial Strategic Changes
Take Effect
Confirms Acceptance of Compliance Plan by
NYSE American
Volato Group, Inc. (NYSE American: SOAR) (“Volato” or the
“Company”), today announced results for the third quarter ended
September 30, 2024, reflecting early progress in a recently
launched turnaround strategy aimed at building a stronger
foundation and positioning the Company for sustainable growth.
Third Quarter 2024 Financial
Highlights
- Total revenue was $40.3 million
- Aircraft sales revenue was $38.2 million
- Managed services revenue was $1.8 million
- Software subscription revenue was $0.3 million
- Net loss from continuing operations was $1.3 million
- Adjusted EBITDA1 was $3.2 million
- Vaunt Annual Recurring Revenue(2) was $1.5 million
[1] Adjusted EBITDA is a non-GAAP measure.
Please refer to the tables and related notes in this press release
for a reconciliation and definition of non-GAAP financial
measures.
(2) Annual Recurring Revenue (ARR)
represents the annualized recurring value at the time of the
initial subscription. ARR should be viewed independently of
revenue, and is not intended to be a substitute for, or combined
with this item.
Early Progress on Strategic
Goals
Volato began implementing its turnaround plan in the third
quarter of 2024, focusing on operational efficiencies and cost
savings to strengthen its core business. Key developments in this
early phase include:
- Aircraft Sales: Volato delivered two HondaJets and its
first Gulfstream G280 during the quarter.
- Strategic Partnership with flyExclusive for Fleet
Operations: Volato entered into an agreement with flyExclusive
to take over its fleet operations, allowing Volato to concentrate
resources on high-growth segments like aircraft sales and software
development. The transition is expected to be completed in the
fourth quarter of 2024, with a resulting reduction in overhead
costs.
- SG&A Reduction: Through a cost-reduction process,
Volato lowered its SG&A by 75% sequentially, achieving a
quarterly run rate of $0.7 million. This cost-saving milestone
reflects disciplined operational changes aimed at improving
long-term financial health of the Company.
- Vaunt Subscription Platform Growth: Volato’s digital
platform, Vaunt, has reached $1.5 million in annual recurring
revenue, reflecting early growth in its subscription model that
connects travelers to available private flights. Subsequent to
quarter end, the Company announced the first flyExclusive flights
had been added to the Vaunt subscription platform.
Path Forward
In the third quarter of 2024, Volato initiated the transition of
its Fleet Operations to flyExclusive, with the transition
anticipated to conclude in the fourth quarter of 2024. As part of
this process, customer relationships have been transferred from
Volato to flyExclusive to ensure continuity and quality of service.
This resulted in the reduction of Insider Card deposit liability of
$4.1 million in the third quarter of 2024 and is expected to be
even greater in the fourth quarter of 2024.
As part of its turnaround, Volato is broadening the reach of its
proprietary software, Mission Control, originally built
specifically to support Volato’s operations as a large-scale
operator. Now chosen by one of the industry’s largest operators,
Mission Control has proven its flexibility and effectiveness in
addressing varied operational needs. This choice over existing
commercial software underscores a significant gap in the
market—most available software doesn’t meet the specialized
requirements of large operators, leaving only a few with the
capacity to create custom solutions.
This adoption by a top-tier operator not only confirms Mission
Control’s adaptability but also serves as a proof of concept for
broader industry use. Volato aims to extend Mission Control to
other operators who need a strong, adaptable management solution,
positioning it as a leading choice in aviation software.
Company Commentary
Matt Liotta, Co-Founder and Chief Executive Officer of Volato,
commented, “The third quarter marks the first phase of our
turnaround plan. By transitioning operational responsibilities to
flyExclusive, we’re able to focus on our strengths in aircraft
sales and software development, areas that we believe offer
significant growth potential. While we are encouraged by these
early steps, we remain committed to our long-term goals as we work
toward a stronger financial foundation.”
Mark Heinen, Chief Financial Officer, commented, “We achieved an
Adjusted EBITDA positive quarter ahead of our previous forecast as
a result of strong aircraft sales, including our first Gulfstream
G280 delivery, additional cost savings initiatives and the transfer
of flight operations to flyExclusive.”
Conclusion
With the third quarter serving as the launch point for Volato’s
turnaround, the Company is building positive momentum through
disciplined cost reductions, targeted operational adjustments, and
early growth in core revenue areas. Looking ahead, Volato remains
focused on its turnaround objectives, balancing steady progress
with ongoing efforts to strengthen its core business model.
Key Metrics
(financial metrics in thousands, except KPIs)
Three Months Ended
September 30, 2024
September 30, 2023
Change YoY
Financial Metrics:
Revenue:
Aircraft Sales
$ 38,150
$ -
$38,150
Managed Aircraft
1,803
3,646
(1,843)
Subscription
316
8
308
Total Revenue
40,269
3,654
36,616
Net Loss from Continuing
Operations
(1,337)
(2,562)
1,225
Adjusted EBITDA
3,169
(1,695)
4,864
Vaunt Annual Recurring Revenue
1,452
32
1,420
Third Quarter 2024 Financial Summary
Total revenue for the third quarter increased $36.6 million
year-over-year, primarily from an increase in aircraft sales of
$38.2 million and subscription revenue of $308 thousand. The
increase in revenue from aircraft sales was the result of the
delivery and sale of two HondaJet Elite IIs and one Gulfstream G280
during the third quarter of 2024. We have orders for three
additional Gulfstream G280 jets and expect delivery in 2025.
Net loss from continuing operations for the third quarter
improved to $1.3 million compared to a net loss from continuing
operations of $2.6 million in the prior year period. Adjusted
EBITDA in the third quarter was $3.2 million compared to negative
Adjusted EBITDA in the prior year period. This improvement in
Adjusted EBITDA was primarily due to an improvement in aircraft
sales and subscription revenue and additional cost savings
measures.
Balance Sheet and Liquidity
The Company ended the third quarter 2024 with $3.8 million of
cash, and cash equivalents.
About Volato
Volato (NYSE American: SOAR) is an aviation company advancing
the industry with innovative solutions in aviation software and
on-demand flight access. Volato’s proprietary Mission Control
software drives efficiency across operations and supports operators
in managing fractional ownership, charter, and other services.
Volato’s Vaunt platform connects travelers with available private
flights, offering a flexible option for on-demand travel. With a
commitment to advanced technology and customer-focused solutions,
Volato is building scalable tools to elevate service quality and
operational effectiveness in private aviation. For more information
visit www.flyvolato.com.
All Volato Part 135 charter flights are operated by its
DOT/FAA-authorized air carrier subsidiary (G C Aviation, Inc. d/b/a
Volato) or by an approved vendor air carrier.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the securities laws. Forward-looking statements can
be identified by the fact that they do not relate strictly to
historical or current facts. They often include words or variation
of words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "projects," "forecasts,"
"targets," "would," "will," "should," "goal," "could" or "may" or
other similar expressions. Forward-looking statements provide
management or the Board’s current expectations or predictions of
future conditions, events, or results. All statements that address
operating performance, events, or developments that may occur in
the future are forward-looking statements, including statements
regarding the challenges associated with executing our growth
strategy, including expected deliveries of aircraft and related
sales, and developing, marketing and consistently delivering
high-quality services that meet customer expectations. All
forward-looking statements speak only as of the date they are made
and reflect the Company’s good faith beliefs, assumptions, and
expectations, but they are not guarantees of future performance or
events. Furthermore, Volato disclaims any obligation to publicly
update or revise any forward-looking statement, except as required
by law. By their nature, forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those suggested by the forward-looking statements.
Factors that might cause such differences include, but are not
limited to, a variety of economic, competitive, and regulatory
factors, many of which are beyond Volato’s control, that are
described in Volato’s periodic reports filed with the SEC including
its Annual Report on Form 10-K for the fiscal year ended Dec. 31,
2023, and other factors that Volato may describe from time to time
in other filings with the SEC. You should understand that it is not
possible to predict or identify all such factors and, consequently,
you should not consider any such list to be a complete set of all
potential risks or uncertainties.
VOLATO GROUP, INC.
CONSOLIDATED BALANCE
SHEETS
(Amounts in thousands, except
par value amounts)
(unaudited)
September 30, 2024
December 31,
2023
ASSETS
Current assets:
Cash
$
3,759
$
14,486
Restricted cash
1,840
—
Accounts receivable, net
118
442
Deposits
36,020
25,125
Prepaid expenses and other current
assets
1,184
2,238
Current assets - discontinued
operations
901
4,207
Total current assets
43,822
46,498
Property and equipment, net
796
846
Operating lease, right-of-use assets
176
—
Deposits
99
15,691
Forward purchase agreement
—
2,982
Restricted cash
—
2,237
Intangibles, net
1,345
1,391
Goodwill
635
635
Non-current assets - discontinued
operations
1,061
1,432
Total assets
$
47,934
$
71,712
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities:
Accounts payable and accrued
liabilities
$
7,646
$
5,229
Loan from related party
—
1,000
Operating lease liability
37
—
Merger transaction costs payable in
shares
—
4,250
Credit facility and other loans
30,594
20,616
Customer deposits and deferred revenue
11,774
2,830
Current liabilities - discontinued
operations
16,354
13,712
Total current liabilities
66,405
47,637
Deferred income tax liability
305
305
Operating lease liability, non-current
139
—
Credit facility, non-current
—
8,054
Non-current liabilities - discontinued
operations
719
965
Total liabilities
$
67,568
$
56,961
COMMITMENTS AND CONTINGENCIES
Shareholders’ equity:
Common Stock Class A, $0.0001 par value;
80,000,000 authorized; 29,534,339 and 28,043,449 shares issued and
outstanding as of September 30, 2024 and December 31, 2023,
respectively
3
3
Additional paid-in capital
82,768
78,410
Accumulated deficit
(102,405
)
(63,662
)
Total shareholders’ equity
(19,634
)
14,751
Total liabilities and shareholders’
equity
47,934
$
71,712
VOLATO GROUP, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Amounts in thousands, except
share and per share data)
(unaudited)
For the Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Revenue
$
40,269
$
3,654
$
44,866
$
15,933
Costs and expenses:
Cost of revenue
33,768
3,335
37,812
14,633
Selling, general and administrative
4,649
2,152
13,484
5,782
Total costs and expenses
38,417
5,487
51,296
20,415
Operating income (loss)
1,852
(1,833
)
(6,430
)
(4,482
)
Other income (expenses):
Gain from sale of consolidated entity
—
—
—
387
Other income
56
76
214
243
Loss from change in fair value forward
purchase agreement
—
—
(2,982
)
—
Interest expense, net
(3,234
)
(805
)
(5,603
)
(2,427
)
Other income (expenses)
(3,178
)
(729
)
(8,371
)
(1,797
)
Loss before provision for income taxes
and discontinued operations
(1,326
)
(2,562
)
(14,801
)
(6,279
)
Provision for incomes taxes
11
—
26
—
Net loss from continuing operations
(1,337
)
(2,562
)
(14,827
)
(6,279
)
Net loss from discontinued operations
(3,098
)
(9,263
)
(23,917
)
(22,924
)
Net loss
$
(4,435
)
$
(11,825
)
$
(38,744
)
$
(29,203
)
Basic and diluted net loss per
share:
Net loss per share from continuing
operations, basic and diluted
$
(0.05
)
$
(0.15
)
$
(0.50
)
$
(0.48
)
Net loss per share from discontinued
operations, basic and diluted
(0.10
)
(0.55
)
(0.81
)
(1.74
)
Net loss per share, basic and diluted
(0.15
)
(0.71
)
(1.32
)
(2.22
)
Weighted average common shares
outstanding:
Basic and diluted
29,514,044
16,747,063
29,446,332
13,165,308
ADJUSTED EBITDA
We calculate Adjusted EBITDA as net loss adjusted for (i)
interest expense, net, (ii) provision for income taxes (benefit)
(iii) depreciation and amortization, (iv) equity-based compensation
expense, and other non-operating items. We include Adjusted EBITDA
as a supplemental measure for assessing operating performance.
The following table reconciles Adjusted EBITDA to net loss,
which is the most directly comparable GAAP measure (in
thousands):
Three Months Ended September
30,
Nine Months Ended September
30,
Adjusted EBITDA
2024
2023
2024
2023
Net loss
(4,435
)
(11,825
)
(38,744
)
(29,203
)
Net loss from discontinued operations
3,098
9,263
23,917
22,924
Interest expense, net
3,234
805
5,603
2,427
Provision for income tax expense
11
—
26
—
Loss from change in fair value of forward
purchase agreement
—
—
2,982
—
Depreciation and amortization
80
98
241
207
Equity-based compensation expense
(199
)
40
69
63
Gain from sale of consolidated entity
—
—
—
(387
)
Other income
(56
)
(76
)
(214
)
(243
)
Other items not indicative of ongoing
operations
1,436
—
1,436
—
Adjusted EBITDA
$
3,169
$
(1,695
)
$
(4,685
)
$
(4,212
)
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