The following is a summary of the Sky Harbour Group Corporation (SKYH) Q4 2023 Earnings Call Transcript:
Financial Performance:
Sky Harbour's revenues for Q4 2023 remained stable in comparison to the previous quarter.
There is a dedicated focus towards achieving a breakeven point in consolidated cash flow from operations, projected to occur at the beginning of 2025.
Additional cash equity of $27 million was injected from the holding company to Sky Harbour Capital to support construction ventures.
The company is anticipating achieving EBITDA positivity soon with projected positivity at Sky Harbour Capital throughout 2024.
Around 250,000 warrants were exercised recently, bringing in close to $3 million of proceeds.
Business Progress:
Progress is noted in securing new ground leases at the San Jose Mineta International Airport and Orlando Executive Airport, expecting to sign six new leases in 2025.
Launching operations at the first Tier 1 airport, the San Jose Mineta International Airport, with pre-leased operations starting shortly.
There has been a ramp-up in development activities for cost and execution efficiency which includes standardizing hangar designs, increasing internal manufacturing capacity, and seamless process integration.
Remediation plan details have been shared to resolve prototype hangar's structural design issues affecting cost and schedule of construction projects.
Sky Harbour is aggressively focusing on scaling at Tier 1 airports and planning to expand operations and headcount with the opening of more campuses.
Financing options are under consideration as part of the expansion plan, targeting a capital structure that maximizes the use of permanent bond transactions at the lowest possible rate.
There is a plan to achieve investment grade by mid-2025 through debt, bank debt, and equity financing with a plan for a possible bond issue by 2025.
Sky Harbour is considering increasing occupancy beyond 100% through their new flagship hangar, the Sky Harbour 34.
More details: Sky Harbour Group IR
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