Results
Allegiant Travel Co.
01/31/2025 | Press release | Distributed by Public on 01/31/2025 08:22
Material Impairments (Form 8-K)
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.