Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Spirit Airlines, Inc. | form8-kinvestorupdate103013.htm |
Investor Update
October 30, 2013
This investor update provides Spirit's investor guidance for the fourth quarter ending December 31, 2013, full year 2013, and full year 2014. All data is based on preliminary estimates.
Capacity - Available Seat Miles (ASMs) | 1Q13A | 2Q13A | 3Q13A | 4Q13E | FY2013E | ||||||||||
ASMs Year-over-Year % Change | 20.8 | % | 21.0 | % | 22.4 | % | 23.8 | % | 22.0 | % | |||||
4Q13E | |||||||
Passenger segments Year-over-Year % Change | 18 | % | - | 19% | |||
Operating Expense per ASM (CASM) (cents) | |||||||
Adjusted CASM(1) | 10.09 | - | 10.15 | ||||
Less: Fuel expense per ASM | 3.92 | ||||||
Adjusted CASM ex-fuel(1) | 6.17 | - | 6.23 | ||||
On October 15, 2013, the Company had an aircraft experience an engine failure that resulted in damage to the engine and aircraft. The cost estimates above include $10 million of estimated expenses related to the repair of the engine and aircraft. | |||||||
Average Stage Length (miles) | 998 | ||||||
Fuel Expense per Gallon ($) | |||||||
Fuel cost* | $3.17 | ||||||
Less: Unrealized mark-to-market (gains) and losses(2) | n/a | ||||||
Economic fuel cost | $3.17 | ||||||
Fuel gallons (thousands) | 45,300 | ||||||
*Includes fuel taxes, and into-plane fuel cost. Based on the jet fuel curve as of October 22, 2013 and includes fuel hedge (gains) and losses currently expected to be realized during the fourth quarter 2013. | |||||||
Select Operating Expenses ($Millions) | 4Q13E | FY2013E | |||||
Aircraft rent | $46 | $171 | |||||
Depreciation and amortization | $13 | $35 | |||||
Effective Tax Rate | 37.5% | 37.5% | |||||
Wtd. Average Share Count (thousands) | |||||||
Basic | 72,649 | 72,590 | |||||
Diluted | 73,065 | 72,966 | |||||
Capital Expenditures & Other Working Capital Requirements | Full Year 2013E | ||
(millions) | |||
Capital expenditures (3) | $21 | ||
Payments for heavy maintenance events(4) | $71 | ||
Pre-delivery deposits for flight equipment, net of refunds | $53 | ||
Pre-paid maintenance deposits, net of reimbursements | $11 | ||
Refining Margin Hedges | % of Est. | Average price | |||||
Period | Volume | Instrument | per barrel | ||||
4Q13 | 21 | % | Jet Fuel Swaps | $32.39 | |||
Select 2014 Guidance
Select Operating Expenses | Full Year 2014E |
(millions) | |
Aircraft rent | $195 |
Depreciation and amortization | $50 |
Capacity - Available Seat Miles (ASMs) | Full Year 2014E |
ASMs Year-over-Year % Change | Approx. 15% |
Footnotes
(1) | Excludes special items and unrealized mark-to-market (gains) and losses. |
(2) | 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 2013, but is not yet able to estimate the amount. |
(3) | Includes the purchase of a spare engine that was financed under a sale/leaseback transaction after it was delivered. |
(4) | Payments for heavy maintenance events are recorded as Long-term deposits and other assets within "Changes in operating assets and liabilities," on the Company's cash flow statement. |
Spirit Airlines, Inc. | ||||||||||||||||||||
Aircraft Delivery Schedule (net of Scheduled Retirements) as of October 30, 2013 | ||||||||||||||||||||
A319 | A320 CEO | A320 NEO | A321 CEO | A321 NEO | Total | |||||||||||||||
Total Year-end 2012 | 27 | 16 | — | 2 | — | 45 | ||||||||||||||
1Q13 | 2 | 2 | — | — | — | 4 | ||||||||||||||
2Q13 | — | 1 | — | — | — | 1 | ||||||||||||||
3Q13 | — | 1 | — | — | — | 1 | ||||||||||||||
4Q13 | — | 3 | — | — | — | 3 | ||||||||||||||
Total Year-end 2013 | 29 | 23 | — | 2 | — | 54 | ||||||||||||||
2014 | — | 7 | — | — | — | 7 | ||||||||||||||
2015 | — | 15 | 1 | 2 | — | 18 | ||||||||||||||
2016 | (3 | ) | 5 | 4 | 8 | — | 14 | |||||||||||||
2017 | (4 | ) | 8 | — | 8 | — | 12 | |||||||||||||
2018 | (5 | ) | — | 6 | 5 | — | 6 | |||||||||||||
2019 | (1 | ) | — | 8 | — | 5 | 12 | |||||||||||||
2020 | (7 | ) | — | 13 | — | — | 6 | |||||||||||||
2021 | (4 | ) | — | 18 | — | — | 14 | |||||||||||||
Total Year-end 2021 | 5 | 58 | 50 | 25 | 5 | 143 | ||||||||||||||
Future deliveries includes aircraft on firm order as well as 5 leased A320neo aircraft. 2017 reflects scheduled deliveries of 10 A320ceo and 10 A321ceo aircraft, net of 2 A320 and 2 A321 lease expirations. | ||||||||||||||||||||
Seat Configurations | ||||||||||||||||||||
A319 | 145 | |||||||||||||||||||
A320 | 178 | |||||||||||||||||||
A321 | 218* | |||||||||||||||||||
*A321s delivering in 2015 and beyond are expected to be configured with 219 seats. | ||||||||||||||||||||
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 delivery schedule of aircraft on order, guidance and estimates for the fourth quarter and full year 2013, including expectations regarding capacity, CASM, CASM ex-fuel, fuel expense, economic fuel cost, expected unrealized mark-to-market gains or losses, capital expenditures and other working capital requirements, aircraft rent, depreciation and amortization, fuel hedges 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 has no intent, nor undertakes any obligation to, publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law. 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, 2012 and subsequent Quarterly Reports on Form 10-Q.