Welcome back. We have an update from Sky Harbour Group Corporation, trades on the New York Stock Exchange American under the symbol SKYH. It's an aviation infrastructure company developing the first nationwide network of home basing campuses for business aircraft. Please welcome founder and CEO Tal Keinan.
Tal, thank you very much. So I'll give you guys a quick update from the last time we spoke.
The screen went blank here. We can hear you and see you okay.
Fantastic. So a lot's gone on. We're talking about as of end of the third quarter. So you know we'd like to think of ourselves in terms of four buckets: site acquisition, development, revenue, and operations. On the site acquisition side, as people may have followed, we've been really kind of exceeding our estimates on new airfield wins. Most recently we announced a new lease at Trenton, New Jersey, a strategic field, that New York market is quite key to us. And our first brownfield acquisition in Camarillo, California, and just ask people to stay tuned for more in the coming months. On the development side, we're about to complete construction at three new campuses in Denver, Phoenix, and Dallas. So we'll be starting operations at all three of those this quarter. A lot more in the pipeline, but we'll go through all of that right now. Revenue, you know you can kind of look at revenue growth as a sort of a step function as we open new campuses. So you know it always looks quite steep, it is steep. But as of, I take back to September of 2024, because we are talking about the third quarter, we're at a little bit about 110% year-on-year rise in revenues, from about six million to about 12 and a half million dollars. And again, as you watch new campuses open and come online and start cash flowing, that revenue behaves as a step function. And hopefully as we open more of these, right, we're now at five campuses, at the end of this quarter we'll be at eight campuses, there'll be hopefully higher visibility, predictability as to what those step functions look like even before they actually happen. On the operations side, we've got those three new campuses, campus six, seven, and eight, staffed and equipped. We're ready to go. Our service model, I think that you know some of your viewers follow quite closely, continues to develop. We're adding new features to it all the time. If we have time at the end, happy to talk about our new security features which have been quite important to a lot of the Sky Harbour residents. And we've had a leadership change. We brought in Marty Ketcham as our senior VP of airports, who's really responsible for everything that goes on on Sky Harbour fields. You know Marty's a 20-year veteran of the FBO space, exactly the person for the role. And then lastly, just higher level on the finance side, we completed a PIPE last year. As we know, we try to be very judicious about our capital formation strategy. Raise what you need a little bit before you need it, and that's kind of our point of view. Never want to be doing this under the gun. We targeted a $75 million PIPE. We came in a little bit above that, but pretty close. But more importantly, we were able to really add to our roster of strategic investors, and people are really pulling for Sky Harbour in all sorts of ways on the airports, with our residents. That was very gratifying, we're very happy with that close. And then lastly, also on the finance side, you know people may have noted we recently uplisted to the New York Stock Exchange, and we'll I think announce that with a little bit of fanfare and a bell ringing at the end of this month. I think that's the 28th of January. That's in a nutshell the Q3 update for Sky Harbour.
Fantastic. And talk a little bit about how the Camarillo purchase fits into Sky Harbour's site acquisition framework, please.
Yeah, so the Los Angeles basin is definitely a tier-one market for Sky Harbour. And even within Los Angeles, you know we have kind of two themes that we're tracking. One is the concentric circles of occupancy. If you take Van Nuys as sort of the epicenter of Los Angeles business aviation, you know that airport's been tapped out for a long time in terms of capacity. It's landlocked, there's real constraints to growth, and we're seeing a lot of spillover into surrounding airports. So you're seeing kind of the concentric circles around Van Nuys become more populated. As Santa Monica is set to close, to shut down at some point soon, we're going to see a lot of migration of aircraft. And Santa Monica is primarily light jets and you know turboprops and pistons, but that's hangar capacity, right? And so that will get eaten up, and we'll see a lot more pressure on these outlying airports. The second is a westward migration from Los Angeles. And this is all obviously pre-fire, but you're seeing a lot of aircraft ownership migrate out to the corridor that you know, say, in the east would be Calabasas, in the west would be Malibu. Camarillo is really the best airport for serving that particular segment of the population, so really great target airport for us. We ended up, and we were opportunistic about this, this is our first brownfield acquisition, but we were able to acquire it at below what it would have cost to develop it. So that was a win for us, and of course it cash flows immediately, you know, rather than taking two years to develop. And lastly, I'd say it's just a great asset, great team. You know, if you get a chance to visit it, it's beautiful. It is absolutely a Sky Harbour property, and it's run like that. So the stars aligned for us there.
A viewer wants to congratulate you on the New York Stock Exchange listing and asks, is the symbol going to remain the same?
Yes, symbol remains the same. Thank you for the congratulations.
And do you see additional acquisitions, like you mentioned, in the near future?
