Sky Harbour Posts 117% Revenue Surge

Sky Harbour Group Corporation has announced its unaudited financial results for the first quarter ended March 31, 2024. The company has reported a significant increase in revenues, with a 117% surge compared to the same period in 2023. However, it also saw a 38% increase in Selling, General, and Administrative (SG&A) expenses during the same period.

Despite the rise in SG&A expenses, the company managed to improve its net cash used in operating activities on a consolidated basis, decreasing from $4.5 million to $4.4 million in the first quarter of 2024. Particularly noteworthy is the achievement of cash flow break-even at Sky Harbour Capital, where cash flow provided by operating activities reached $1.2 million, an improvement over the $1.0 million used in operating activities during the first quarter of 2023.

The company's liquidity and capital resources remained robust, with approximately $160 million in cash, restricted cash, and US Treasury investments as of March 31, 2024. Moreover, all operating campuses are fully leased, and the company has initiatives in place to surpass 100% occupancy.

In terms of construction activity, the company has made progress, with the new campus at San Jose Mineta already operational and 58% leased. Furthermore, construction at phases 1 in Denver, Phoenix, and Dallas is back on track after previously announced delays.

Looking ahead, the company expects to have executed ground leases at four additional airports by the end of 2024 and an additional six airports by the end of 2025. It has also onboarded new construction managers and is focused on standardizing processes to expand capacity and pursue economies of scale.

The CEO, Tal Keinan, expressed confidence in the company's 2024 business plan and emphasized the efforts of the site acquisition, development, and airfield operations teams in driving future results.

The market has reacted to these announcements by moving the company's shares -10.1% to a price of $12.11. For the full picture, make sure to review Sky Harbour's 8-K report.

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