Surf Air Mobility Files Its Second Quarter Results via Quarterly Report on Form 10-Q and Current Report on Form 8-K
30 August 2023 - 6:55AM
Business Wire
Company Reiterates its Prior Financial
Outlook
Surf Air Mobility Inc. (NYSE: SRFM) (“Surf Air Mobility”), a
regional air mobility platform aiming to sustainably connect the
world’s communities, filed its regular Quarterly Report on Form
10-Q along with Current Report on Form 8-K. Surf Air Mobility has
also provided pro forma financial results for the periods ending
June 30, 2023 and June 30, 2022, which are available on its
investor relations website at https://investors.surfair.com.
Second quarter operating results for Surf Air Mobility were
filed today in its regular Quarterly Report on Form 10-Q. The
acquisition of Southern Airways (“Southern”) by Surf Air Mobility
closed during the third quarter, on July 27, 2023. As such, the
Quarterly Report on Form 10-Q for Surf Air Mobility only reflects
the results of Surf Air. Surf Air Mobility today also filed a
Current Report on Form 8-K with Southern’s second quarter operating
results. In addition to Southern’s standalone results, in the
Current Report on Form 8-K, Surf Air Mobility has provided pro
forma financial results for the period ending June 30, 2023, on a
quarter and year-to-date basis, which combines the results of Surf
Air and results of Southern, for those same periods, as if the
acquisition of Southern occurred on January 1, 2022, which is
available below and on its investor relations website at
https://investors.surfair.com.
As previously reported on August 16,
2023, Surf Air Mobility’s 2Q23 Quarter Financial
Highlights:
- Revenue
- GAAP Revenue of $6.2 million for Surf Air and $22.4 million for
Southern, in line with Flash Expectations
- Pro Forma Revenue of $28.3 million for 2Q23, up 17.5% YoY,
recurring revenue from Government Contracts was 39.6%, in line with
Flash Expectations
- Gross Profit
- Pro Forma Gross Profit of $3.6 million, up 44.3% YoY
- Operating Income (Loss)
- GAAP Operating loss of $(13.2) million for Surf Air and $(1.3)
million for Southern
- Pro Forma Operating loss of $(15.1) million, which is inclusive
of $3.9 million of one-time transaction-related expenses and $1.7
million in stock based compensation, and is approximately flat with
the prior year
- Non-GAAP Adjusted EBITDA
- Non-GAAP Adjusted EBITDA of $(7.8) million for Surf Air and
$0.0 million for Southern
- Pro Forma Non-GAAP Adjusted EBITDA of $(7.8) million, compared
to $(3.7) million for the same period of the prior year. See the
Pro Forma Non-GAAP Adjusted EBITDA table for the reconciliation
from Net loss to Non-GAAP Adjusted EBITDA
As previously reported on August 16,
2023, Surf Air Mobility’s 1H23 Financial Highlights:
- Revenue
- GAAP Revenue of $11.7 million for Surf Air and $45.1 million
for Southern
- Pro Forma Revenue of $56.3 million, up 23.4% YoY, recurring
revenue from Government Contracts was 43.5%
- Gross Profit
- Pro Forma Gross Profit of $6.6 million, up 20.1% YoY
- Operating Income (Loss)
- GAAP Operating Loss of $(25.2) million for Surf Air and $(3.2)
million for Southern
- Pro Forma Operating Loss of $(29.6) million, which is inclusive
of $5.2 million one-time transaction-related expenses and $2.8
million in stock based compensation, and is approximately flat with
the prior year
- Adjusted EBITDA
- Non-GAAP Adjusted EBITDA of $(17.4) million for Surf Air and
$(0.8) million for Southern
- Non-GAAP Adjusted EBITDA of $(18.2) million compared to $(7.7)
million for the same period of the prior year. See the Pro Forma
Non-GAAP Adjusted EBITDA table for the reconciliation from Net loss
to Non-GAAP Adjusted EBITDA
FINANCIAL OUTLOOK
Full year of 2023:
Surf Air Mobility acquired Southern on July 27, 2023 and will be
reporting GAAP results that reflect operating results for Surf Air
for the twelve months ended December 31, 2023 and Southern for the
period beginning July 28, 2023 through December 31, 2023. The
Company is providing guidance for GAAP Revenue, as well as Non-GAAP
Revenue and Non-GAAP Adjusted EBITDA, which represents operating
results for Surf Air and Southern on a pro forma basis for the full
year 2023.
- GAAP Revenue, which assumes operating results for Surf
Air for the full year 2023 period and Southern for the period July
28, 2023 through December 31, 2023, in the range of $54.5 million
to $59.5 million
- Non-GAAP Revenue, which assumes pro forma operating
results for Surf Air and Southern, for the full year 2023 period,
in the range of $107.5 million to $112.5 million, as compared to
$100.6 million for the full year 2022, up 6.9% - 11.8%. Slower YoY
growth in 2H23 attributable to supply chain-related constraint of
aircraft parts delivery, closure of Marianas Joint Venture in Guam
effective March 31, 2023, and limited fleet expansion due to
aircraft availability. We expect these concerns to be resolved as
part of the Textron Aviation, Inc. fleet order.
- Non-GAAP Adjusted EBITDA, which assumes pro forma
operating results for Surf Air and Southern, for the full year 2023
period, in the range of $(46.3) million to $(56.3) million, which
excludes the expected impact of stock-based compensation, and
one-time direct listing related expenses, as compared to $(28.8)
million for period year of 2022. The expected decrease in Non-GAAP
Adjusted EBITDA in 2023, as compared to 2022, is driven by
incremental investments in Technology and Electrification R&D,
Sales and Marketing, and G&A expenses primarily associated with
expenses related to public company readiness and the company’s
Southern transaction.
ABOUT SURF AIR MOBILITY
Surf Air Mobility is a Los Angeles-based regional air mobility
platform expanding the category of regional air travel to reinvent
flying through the power of electrification. In an effort to
substantially reduce the cost and environmental impact of flying
and as the operator of the largest commuter airline in the US, Surf
Air Mobility intends to develop powertrain technology with its
commercial partners to electrify existing fleets and bring
electrified aircraft to market at scale. The management team has
deep experience and expertise across aviation, electrification, and
consumer technology.
Forward-Looking Statements
The information in this press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements include, among
other things, statements about: Surf Air Mobility’s ability to
anticipate the future needs of the air mobility market; future
trends in the aviation industry, generally; Surf Air Mobility’s
future growth strategy and growth rate and its ability to access
its financings, grow its fleet. In some cases, you can identify
forward-looking statements by terminology such as “may,” “should,”
“could,” “might,” “plan,” “possible,” “project,” “strive,”
“budget,” “forecast,” “expect,” “intend,” “will,” “estimate,”
“anticipate,” “believe,” “predict,” “potential” or “continue,” or
the negatives of these terms or variations of them or similar
terminology. These forward-looking statements include, without
limitation, statements regarding the satisfaction of required
conditions for the listing of the Surf Air Mobility common stock.
Factors that may cause actual results to differ materially from
current expectations include, but are not limited to: Surf Air
Mobility’s future ability to pay contractual obligations and
liquidity will depend on operating performance, cash flow and
ability to secure adequate financing; Surf Air Mobility’s limited
operating history and that Surf Air Mobility has not yet
manufactured any hybrid-electric or fully-electric aircraft; the
powertrain technology Surf Air Mobility plans to develop does not
yet exist; the inability to maintain and strengthen Surf Air’s
brand and its reputation as a regional airline; any accidents or
incidents involving hybrid-electric or fully-electric aircraft; the
inability to accurately forecast demand for products and manage
product inventory in an effective and efficient manner; the
dependence on third-party partners and suppliers for the components
and collaboration in Surf Air Mobility’s development of
hybrid-electric and fully-electric powertrains, and any
interruptions, disagreements or delays with those partners and
suppliers; the inability to execute business objectives and growth
strategies successfully or sustain Surf Air Mobility’s growth; the
inability of Surf Air Mobility’s customers to pay for Surf Air
Mobility’s services; the inability of Surf Air Mobility to obtain
additional financing or access the capital markets to fund its
ongoing operations on acceptable terms and conditions; the outcome
of any legal proceedings that might be instituted against Surf Air,
Southern or Surf Air Mobility; changes in applicable laws or
regulations, and the impact of the regulatory environment and
complexities with compliance related to such environment; and other
risks and uncertainties indicated in the prospectus.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those anticipated in the forward-looking statements. Although Surf
Air Mobility believes that the expectations reflected in the
forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. Surf Air
Mobility cannot guarantee future results, level of activity,
performance or achievements and there is no representation that the
actual results achieved will be the same, in whole or in part, as
those set out in the forward-looking statements and financial
projections. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and Surf Air Mobility does not
undertake any 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. Additional information
regarding these and other factors that could affect SAM’s results
is included in SAM’s SEC filings, which may be obtained by visiting
the SEC’s website at www.sec.gov or the investor relations page on
SAM’s website at https://investors.surfair.com under the
“Financials—SEC Filings” section. Information contained on, or that
is referenced or can be accessed through, our website does not
constitute part of this document and inclusions of any website
addresses herein are inactive textual references only.
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