Financial Data and Key Metrics Changes - The company reported a significant increase in revenues due to the San Jose campus opening in Q2 and optimization of other campuses, with expectations for continued revenue growth even without new campus openings [7][10] - Operating expenses increased primarily due to higher ground lease payments in San Jose and the recognition of operating expenses ahead of cash payments for new ground leases [8][9] - The company aims to achieve breakeven on a consolidated basis by the same time next year, supported by the opening of three campuses and leasing activities [10][12] Business Line Data and Key Metrics Changes - Sky Harbour Capital, which includes all campuses except San Jose, showed positive operating results and cash flow, with incremental revenues from lease renewals at significantly higher rates [11][12] - The company continues to optimize its existing campuses, achieving occupancy rates above 100% and higher rental rates on renewals [11][12] Market Data and Key Metrics Changes - The company is revising its guidance to include an additional 9 airports by the end of 2025, bringing the total to 23 airports [23][49] - The demand for hangar space remains strong, particularly in markets like Miami, where the waiting list for aircraft is significantly higher than current occupancy [100] Company Strategy and Development Direction - The company is focused on site acquisition, development of existing airports, and enhancing operational efficiency through vertical integration and standardized hangar designs [40][45][52] - The strategy includes a shift towards semi-private hangars to accommodate a broader market, which has proven to be more profitable than fully private options [72][76] - The company is also looking to enhance services for pilots and maintenance professionals, aiming to provide a comprehensive experience for aircraft owners [55][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic cycles, emphasizing that the demand for hangar space is driven by the growing fleet of aircraft [66] - The company anticipates continued hangar price inflation, which is expected to outpace construction cost inflation, supporting revenue growth [100][102] Other Important Information - The company has a strong cash position, with $110 million in cash and investments, which will support upcoming construction projects and operational needs [27][28] - Management is optimistic about achieving investment-grade ratings for their bonds as construction projects are completed and cash flows stabilize [30][32] Q&A Session All Questions and Answers Question: Do you plan on contributing to Sky Harbour Capital again to help close the funding gap for the remaining construction? - The company has sufficient cash at the trustee to complete the remaining projects and is more than halfway through its equity raises for the 20 airports [62][63] Question: How do you foresee the Trump administration's policies will affect your business? - The company views itself as relatively insensitive to economic cycles, with potential benefits from policies like reinstating bonus depreciation for aircraft [66][68] Question: Can you talk about the shift to the semi-private hangars versus the original thesis of fully private? - The semi-private model has proven to be more profitable, with significant demand and occupancy exceeding 100% [72][76] Question: How is visibility on pricing looking for the 3 new fields expected to commence operations in Q1 of 2025? - The new fields are expected to compare favorably to existing locations, with provisions for significant semi-private occupancy to enhance total revenue [77][78] Question: What is the average weighted-average lease term on your hangar tenant leases? - The weighted-average lease term is 3.2 years, with a mix of shorter and longer-term leases to manage risk and maximize revenue [81][82] Question: Can you please walk us through the BSCR calculation and where you are as of the third quarter on a run rate basis? - The company expects to achieve more than 3x debt service coverage once stabilized, with current run rates being too early to assess accurately [97][98]

Financial Performance - Sky Harbour Group Corporation reported financial results for the three and nine months ended September 30, 2024, with a focus on revenue growth and operational performance[3]. - The financial results and strategic outlook are subject to the risks outlined in the company's Annual Report on Form 10-K for the year ended December 31, 2023[7]. - The company has not disclosed specific numerical performance metrics or guidance in the provided documents[5]. Investor Communication - The company provided an investor presentation detailing key metrics and strategic initiatives during the scheduled investor meeting[4]. - The press release and investor presentation are intended to supplement the company's filings with the SEC and provide a comprehensive overview of its financial condition[5]. - The press release and investor presentation are not considered "filed" under the Exchange Act or the Securities Act[6]. Forward-Looking Statements - Forward-looking statements were included, highlighting expectations and potential risks that may affect future performance[7]. - The company has no obligation to update or revise the information contained in the report unless deemed appropriate by management[5]. Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[3]. Management Signature - The report was signed by Tal Keinan, the Chief Executive Officer of Sky Harbour Group Corporation[9].

Business Operations and Market Demand - The company operates a nationwide network of home basing hangar campuses for business aircraft, targeting markets with high hangar demand [130]. - The U.S. business aviation fleet's cumulative square footage increased by 50% from 2010 to 2021, with an 81% increase in larger private jets [131]. - The company aims to develop hangar campuses on long-term ground leases at airports serving metropolitan centers across the U.S. [134]. - The projected total project cost for properties in development is estimated between $561 million and $626.8 million, with a total of 60 hangars planned [140]. - The company actively monitors key factors such as fuel prices and hangar rental rates that may impact demand for new leases [144]. Financial Performance - Rental revenue for the three months ended September 30, 2024, was approximately $4.1 million, a 64% increase from approximately $2.5 million in the same period of 2023, primarily due to new operations at SJC and increased occupancy at BNA and OPF campuses [167]. - Total revenue for the nine months ended September 30, 2024, was approximately $10.1 million, a $4.8 million, or 90%, increase compared to the same period in 2023, attributed to the commencement of operations at the SJC hangar campus [174]. - Total expenses for the three months ended September 30, 2024, were $8.96 million, compared to $5.90 million in 2023, reflecting an increase of $3.06 million [166]. - Operating expenses for the nine months ended September 30, 2024, increased by approximately $3.9 million, or 76%, primarily due to increased ground lease expenses [175]. - General and administrative expenses for the three months ended September 30, 2024, were $4.63 million, an increase from $3.56 million in 2023 [166]. Capital and Financing Activities - In October 2024, the company completed a private placement, raising approximately $37.6 million through the sale of 3,955,790 shares [143]. - The company entered into a 2024 Private Placement Purchase Agreement, raising an aggregate of $31.8 million from the initial closing [183]. - The company has access to a $100 million ATM Facility to fund long-term liquidity requirements [181]. - The company completed an issuance of $166.3 million in Senior Special Facility Revenue Bonds, with maturities ranging from 2036 to 2054, to finance various aviation facilities [191]. - The company plans to access the bond market opportunistically and may hedge against rising interest rates through strategies with high-quality counterparties [146]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2024, were $3.5 million, a significant decrease from $60.3 million as of December 31, 2023 [186]. - Restricted cash increased to $70.6 million as of September 30, 2024, compared to $12.0 million as of December 31, 2023 [186]. - Cash and restricted cash increased to $74.2 million as of September 30, 2024, compared to $36.8 million at the same time in 2023 [196]. - Net cash used in operating activities was approximately $6.6 million for the nine months ended September 30, 2024, an increase of $0.4 million compared to the same period in 2023 [198]. - Net cash provided by investing activities was approximately $8.4 million for the nine months ended September 30, 2024, compared to $2.1 million for the same period in 2023, driven by a significant increase in proceeds from available-for-sale investments [200]. Expenses and Cost Management - Ground lease expenses for the nine months ended September 30, 2024, were $6.0 million, up from $2.8 million in 2023, indicating a significant increase in operating lease expenses [145]. - The company expects to incur additional costs of $26 to $28 million for retrofitting hangar buildings due to significant design defects identified in independent peer reviews [151]. - General and administrative expenses for the nine months ended September 30, 2024, were approximately $14.1 million, reflecting a $3.3 million, or 30%, increase compared to the same period in 2023 [177]. - Operating expenses increased by approximately $2.0 million, or 120%, for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to increased ground lease expenses [168]. - General and administrative expenses rose by approximately $1.0 million, or 30%, for the three months ended September 30, 2024, driven by increased salaries and corporate headcount [169]. Debt and Compliance - As of September 30, 2024, the company maintained a debt service coverage ratio of at least 1.25, in compliance with all debt covenants [193]. - Total lease payments due from 2024 to thereafter amount to $444.4 million for operating leases and $49,000 for finance leases [194]. - The company does not maintain any off-balance sheet arrangements, ensuring transparency in its financial obligations [196]. Growth Strategy - The company has funded SHC with over $200 million for initial phases at five airport locations and has the ability to include up to $50 million in new projects [153]. - The company plans to continue investing in its hangar campus development projects as part of its growth strategy [199].

Company Overview - Sky Harbour Group Corporation specializes in providing home basing solutions for private jets, engaging in ground leases at various airports in the United States and constructing hangars using pre-engineered metal buildings [2][3] - The company has a 51% ownership in RapidBuilt, which supplies the pre-engineered buildings for hangars [2] Financial Performance - In the second quarter, Sky Harbour Group's revenues more than doubled to $3.6 million, driven by higher occupancy rates and operational hangars, particularly in San Jose [3] - Operating expenses increased by $2.6 million, primarily due to more ground leases signed and associated costs, with a headcount increase contributing to higher costs as well [3] - Despite the operating loss widening, the company reported positive net income due to unrealized gains on warrants and interest income [3] Growth Potential - The company has added one hangar to its operational portfolio, maintaining a stable occupancy rate of 93.7%, with plans for six more hangars totaling over 260,000 square feet in development [4] - Revenue growth is anticipated as lease terms improve, allowing for higher prices per square foot upon renewal [4] Valuation and Risks - The company aims for $22.9 million in EBITDA for 2024, with the latest quarterly EBITDA reported at $4.99 million, suggesting a potential run rate of $20 million annually [5] - Valuation using the EV/EBITDA method indicates a modest upside of around 3%, with potential for 18% upside if EBITDA reaches $99 million [5][6] - Dilution risk exists, with a potential 70% pressure on shareholders if fully diluted, which could limit upside potential [6]

Financial Data and Key Metrics Changes - The company reported an increase in revenues for Q2 2024, driven by new tenant leases and renewals at higher rental rates [4][5] - Operating expenses rose due to ground lease payments and non-cash employee stock-based compensation, totaling approximately $1.1 million each [6][10] - The company achieved positive cash flow from operations and expects this trend to continue as new campuses open [4][10] Business Line Data and Key Metrics Changes - The San Jose International Airport campus was approximately 58% leased during Q2, with expectations for further revenue increases as occupancy rises [5] - The company anticipates significant revenue growth from lease renewals, with an average markup of over 20% on renewed leases [17][29] Market Data and Key Metrics Changes - The company is focusing on high-demand markets, particularly in New York, where there is a significant deficit of hangar space [47] - The company plans to increase its ground leases from four to eight by the end of 2025, expanding its market presence [21] Company Strategy and Development Direction - The company is pursuing an accelerated growth plan with 33 projects planned between 2025 and 2026 [9] - The focus is on maximizing economies of scale and standardizing construction processes to enhance efficiency [21][39] - The company aims to achieve investment-grade ratings by increasing cash flow generation from new campuses [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the profitability of the San Jose lease and highlighted the potential for revenue growth through lease renewals [29] - The company is aware of the competitive landscape with FBOs and emphasizes its unique offering of homebasing solutions [30][32] - Management is optimistic about the future, citing strong demand and the potential for additional revenue streams from services [25][48] Other Important Information - The company has $150 million in cash and treasury bills, allowing for strong liquidity and cash management strategies [10] - The company is exploring additional revenue streams, including partnerships for aircraft detailing services [49][50] Q&A Session Summary Question: Thoughts on broadening the float to mitigate potential selling from Boston Omaha and Altai - The company plans to address the low float through organized equity offerings over time, aiming to increase trading float [26][27] Question: Is the SJC lease profitable today? - The San Jose lease is profitable, with significant upside potential and a strategy to stagger lease terms for revenue growth [29] Question: How does Sky Harbour plan to compete with FBOs offering fuel discounts? - Sky Harbour provides fuel and focuses on base tenants, differentiating itself from transient-focused FBOs [30][32] Question: How will raising an additional $150 million be possible? - The company intends to protect existing bondholders by issuing new debt outside the current obligated group [33][34] Question: Should we expect less equity capital needs going forward? - The company maintains a target of 70/30 debt-to-equity split, with potential for higher leverage in the future [35] Question: Do ground leases have deadlines for improvements? - Typically, there are no strict deadlines for ground leases, allowing flexibility in development timelines [41] Question: How does the company view the trade-off between short leases and revenue visibility? - The company staggers lease terms to balance revenue visibility and the potential for higher renewals [43][45] Question: Rationale for New York and Connecticut area airports? - The company targets high-revenue locations, particularly in New York, where there is a significant demand for hangar space [46][47] Question: Potential for ancillary revenue from airport services? - The company is exploring various ancillary revenue opportunities, including partnerships for services like aircraft detailing [48][50]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) August 13, 2024 Sky Harbour Group Corporation (Exact name of registrant as specified in its charter) | --- | --- | |------------------------------------------------------------------|-------------------------| | Delaware 001-39648 | 85-2732947 | | (State or other jurisdiction (Commission | (IRS ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 001-39648 Sky Harbour Group Corporation (Exact name of registrant as specified in its Charter) Delaware 85-2732947 ...

Sky Harbour Group Corporation (NYSE:SKYH) Q1 2024 Results Conference Call May 14, 2024 5:00 PM ET Company Participants Francisco Gonzalez - Chief Financial Officer Tal Keinan - CEO and Chairman Will Whitesell - COO Operator Good afternoon. My name is John, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Sky Harbour 2024 First Quarter Earnings Call and Webinar. All lines have been placed on mute to prevent any background noise. After the speaker's remar ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) May 14, 2024 Sky Harbour Group Corporation (Exact name of registrant as specified in its charter) | Delaware | 001-39648 | 85-2732947 | | --- | --- | --- | | (State or other jurisdiction | (Commission | (IRS Employer | | of incorporation) | File Number) | Identification No.) | 136 Tower Road, Su ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 001-39648 Sky Harbour Group Corporation (Exact name of registrant as specified in its Charter) Delaware 85-273294 ...