Attached files
| file | filename |
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| 8-K - FORM 8K INVESTOR UPDATE 10.31.12 - Spirit Airlines, Inc. | form8-kinvestorupdate103112.htm |
EXHIBIT 99.1
Investor Update
October 31, 2012
This investor update provides Spirit's investor guidance for the fourth quarter ending December 31, 2012 and full year 2012. All data is based on preliminary estimates.
Capacity - Available Seat Miles (ASMs) | 1Q12A | 2Q12A | 3Q12A | 4Q12E | FY2012E | ||||||||||
ASMs Year-over-Year % Change | 17.7 | % | 16.5 | % | 22.0 | % | 29.2 | % | 21.5 | % | |||||
4Q12E | |||||||||
Passenger segments Year-over-Year % Change | 20 | % | - | 21% | |||||
Operating Expense per ASM (CASM) (cents) | |||||||||
CASM* | 9.95 | - | 10.00 | ||||||
Less: Fuel expense per ASM | 4.05 | ||||||||
CASM ex-fuel* | 5.90 | - | 5.95 | ||||||
Average Stage Length (miles) | 934 | ||||||||
Fuel Expense per Gallon ($) | |||||||||
Fuel cost* | $3.28 | ||||||||
Less: Unrealized mark-to-market (gains) and losses (1) | n/a | ||||||||
Economic fuel cost | $3.28 | ||||||||
Fuel gallons (thousands) | 36,718 | ||||||||
*Includes fuel taxes, and into-plane fuel cost. Based on the jet fuel curve as of October 30, 2012 and includes fuel hedge (gains) and losses currently expected to be realized during the fourth quarter 2012. | |||||||||
4Q12E | FY2012E | ||||||||
Effective Tax Rate | 38% | 38% | |||||||
4Q12E | FY2012E | ||||||||
Wtd. Average Share Count (thousands) | |||||||||
Basic | 72,439 | 72,385 | |||||||
Diluted | 72,634 | 72,594 | |||||||
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Capital Expenditures & Other Working Capital Requirements | Full Year 2012E | ||
(millions) | |||
Capital expenditures* | $26 | ||
Pre-delivery deposits for flight equipment, net of refunds | $8 | ||
Pre-paid maintenance reserves, net | $27 | ||
Pre-IPO Tax Receivable Agreement distribution | $27 | ||
*Includes the purchase of two spare engines that were financed under a sale/leaseback transaction upon delivery.
Fuel Hedges | % of Est. | Average price | |||||||||||
Period | Volume | Instrument | Call/bbl | Put /bbl | |||||||||
4Q12 | 20 | % | WTI collars | $ | 93.70 | $ | 86.33 | ||||||
Refining Margin | |||||||
Hedges | % of Est. | Average price | |||||
Period | Volume | Instrument | per gallon | ||||
4Q12 | 24 | % | Basis swaps | $0.0395 | |||
Footnotes
(1) | Unrealized mark-to-market (gains) and losses are comprised of estimated non-cash adjustments to aircraft fuel expense. The Company may have unrealized mark-to-market (gains) or losses in the fourth quarter 2012, but is not yet able to estimate the amount. |
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Spirit Airlines, Inc. | |||||||||||||
Aircraft Delivery Schedule - as of October 31, 2012 | |||||||||||||
Aircraft Type | |||||||||||||
A319 | A320 | A321 | Total | ||||||||||
Total Aircraft Year-end 2011 | 26 | 9 | 2 | 37 | |||||||||
1Q12 | - | 3 | - | 3 | |||||||||
2Q12 | - | 2 | - | 2 | |||||||||
3Q12 | - | - | - | 0 | |||||||||
4Q12 | 1 | 2 | - | 3 | |||||||||
Total Aircraft Year-end 2012 | 27 | 16 | 2 | 45 | |||||||||
1Q13 | 2 | 2 | - | 4 | |||||||||
2Q13 | - | 1 | - | 1 | |||||||||
3Q13 | - | 1 | - | 1 | |||||||||
4Q13 | - | 3 | - | 3 | |||||||||
Total Aircraft Year-end 2013 | 29 | 23 | 2 | 54 | |||||||||
2014 | - | 7 | - | 7 | |||||||||
2015 | - | 10 | - | 10 | |||||||||
Total Aircraft Year-end 2015 | 29 | 40 | 2 | 71 | |||||||||
The Company has 75 aircraft (30 classic A320s and 45 A320neos) on firm order for delivery between 2016 and 2021. In addition, Spirit has signed a Letter of Intent with ILFC to lease five A320neo aircraft, subject to final documentation. | |||||||||||||
Seat Configurations | |||||||||||||
Aircraft Type | Seats | ||||||||||||
A319 | 145 | ||||||||||||
A320 | 178 | ||||||||||||
A321 | 218 | ||||||||||||
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Forward-Looking Statements
Statements in this release contain various forward-looking statements within the meaning Section 21E of the Securities Exchange Act of 1934, as amended, which represent the Company's expectations or beliefs concerning future events. When used in this release, the words “expects,” “estimates,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook,” “may,” “will,” “should,” “seeks,” “targets” and similar expressions are intended to identify forward-looking statements. Similarly, statements that describe the Company's objectives, plans or goals, or actions the Company may take in the future, are forward-looking statements. Forward-looking statements include, without limitation, statements regarding the Company's intentions and expectations regarding the management of future maintenance costs related to the Company's seat maintenance program, the delivery schedule of aircraft on order and announced new service routes and customer savings programs, guidance and estimates for the fourth quarter and full year 2012, including expectations regarding capacity, CASM, CASM ex-fuel, fuel expense, economic fuel cost, expected unrealized mark-to-market gains or losses, and tax rates. All forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements are subject to a number of factors that could cause the Company's actual results to differ materially from the Company's expectations, including the competitive environment in the airline industry; the Company's ability to keep costs low; changes in fuel costs; the impact of worldwide economic conditions on customer travel behavior; the Company's ability to generate non-ticket revenues; and government regulation. Additional information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2011.
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